Full text of Commercial and Financial Chronicle : August 19, 1954, Vol. 180, No. 5352

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ESTABLISHED 1S39

Commercial
Reg. V. 8. Pat. Office

Number 5352

Volume 180

New York 7,

editorial
1

.

'J

i,

Hi*

'inrrr

■

'>4

i*

Ji'iil* M-Wi ■?

*

•

SeeWe

AsMore than

ordinary interest attaches to Presi¬
dent Eisenhower's recent apologia pro vita sua
in the realm of business cycles; To a great many,
doubtless, it will appear

as

one

on

Senators

and

Bank

★

*

Trust Company

military
pretense

in

the

resolution
the

Boosts."

Rate
release

20

that

Incorporated

the

was

day

legislators

text

introduced by
in Senate
and

ON

the

Federal Reserve System should sup¬

exceeding
the

securities
par,

so-called

serve

at

as

done

Treasury-Federal

March 4, 1951." The
"warlike enterprise."

CALL

a

dictionary defines

Underwriters,

—

picture of issues

System

in the wheat

to

now

'

Bridgeport'

t-

perth amboy

and say so,

out

of

the

is1

of which

All

fire.

The French public is more interested <

price, in pensions, jobs and subsidies, than

34.

on

page

183

State and

1856

Municipal
Bonds

Exchange

Stock

Exchange

Stock

Exchange

Cotton

York

Exchange,
of

Board

Inc.
Trade

•

•

'

I

-

Bond Deportment

Exchange

•

Detroit •

Miami Beach
'

Bond Dept.

BIdg.
N. Y.

N. Y. Cotton Exchange

Pittsburgh

Coral Gables

•

.

Hollywood, Pla.

Teletype: NY 1-708

•

Beverly Hills, Cal.

CHASE

THE

BANK

NATIONAL
OF THE CITY

OF NEW YORK

Geneva, Switzerland

Amsterdam, Holland

Active

To

Markets

Dealers,

Banks

Maintained

and

Brokers

CANADIAN

CANADIAN
BONDS & STOCKS

Orders

Executed

On

Chattanooga
Gas

Company
COMMON

All

Exchanges At Regular Rates

Analysis
CANADIAN

DIRECT

WIRES TO

Domdoox Securities

MONTREAL AND TORONTO

Goodbody
MEMBERS

NEW

&

Co.

NEW YORK STOCK EXCHANGE

115 BROADWAY
YORK

upon

request

DEPARTMENT

Teletype NY 1-2270

Exchange

BROADWAY, N.

York

Chicago

OF NEW YORK

^

T.L.Watson&Co.

50

The French feel,

i

NEW YORK 4,

SECURITIES

Exchange

en-'

resounding victory

and other Exchanges

Our Customers

Members N. Y. Stock

a

investors in cor¬
registered with the SEC

Commodity

★★★★★★★

122 Years of Service

be

to

Continued

Chicago

THE NATIONAL CITY BANK

RE 2-2820

appears

chestnuts

escapism.

New Orleans Cotton

Teletype NY 1-2152

leadership,*

Europe's, satisfaction is greatly

20

New

^

^

Broadway, N. Y. 6

what

unnecessarily by indecision,**

Members

^

Exports—Imports—Futures




page

all

that his

dealers and

& Foreign Bonds

American Stock

DIgby 4-2727

on

American

MABON & CO.

war

H. Hentz & Co.

Commission

Liquid

as a

New

Preferred and Common Stocks

a

United States.

America's

Established

Canadian

—

"crusade"

a

Municipal,

NEW YORK 5, N. Y.

Refined

Bratter

The warlike enterprise of May 11,

complete

Net

—

M.

sheer

*

^

Bell

Raw

Herbert

Re-,

announced

was

Continued

—

to

fighting in Indo-China they were merely pulling

that by

before

as

by

over—the

but not

par,

was

which

accord

State and Revenue Bonds

115

sugar

hanced

MARKETS

All Corporate

*

STREET

France's,

port the price of United States Gov¬
ernment

liquidate

to

predecessors let fritter away

Open Market Committee of the

securities are afforded

U. S. Government
^

but

inefficiency, corruption, and lack of military

20

ONE

honorable,

as

the fact that he did what his country

the Federal Reserve Board and

I

WALL

consider

few

that

Sixty Years of Brokerage Service

99

this

to

wanted:

Members N. Y. and Amer. Stock Exchs.

LAMB0RN & CO., Inc.

of being a Great Power.
popularity is not due, of course,
"peace with honor," which

His

the

House, reading:
"Resolved
by
the
Senate
(the
House of Represenatives concurring)

*

Correspondents

of

Complete Brokerage Service

Founded 1824

Complete corporate and
personal trust facilities

by declaring, in effect, its
bankruptcy: giving up the

country

★★★★★★*

ALL

& ;

the

and potential undertakings in our "Securities in Registration" Section, starting on page

Chemical

come

of the French expedi¬

force, and the British who
offer.)
He became the Strong Man of his

Congressmen.
title, "Crusade

bore the

rescue

tionary

of the aforementioned and 18 other Demo¬

names

SECURITIES NOW IN REGISTRATION

porate

a

vetoed

the the

Interest

GNP is
page

resounding
single handclap

right gave

applause, but not a
at the mention of the U. S.
Which
is the more remarkable since it was

Launched in Both Houses Against

whole.. Turning, then, to more comprehensive

Continued

the extreme

(April 18, 1954) on "Full Employment and
Its Dangers."

The release

indicators of the state of business, the President
as

left to

all Parties from the extreme

the Americans who offered to

cratic

running something
more than 8% below last year, but quickly notes
that this index covers but a part of the economy

become known

no

in the

dex of Industrial Production is

has

as

May 11, 1953, the offices of Senator James E. Mur¬
(D., Mont.) and Representative Wright Patman (D.,
Tex.) simultaneously issued a three-page press statement

matter of satisfaction to the Presi¬

that what

ovation

On

story: His argument

Munich.

the assemblee nationale gave him an
premier! has received since De Gaulle,
the Liberator. (Incidentally, at his mentioning of Britain,

Back from Geneva,

ray

dent. He first notes that the Federal Reserve In¬

notes

Mendes-France
He is the national hero—as Daladier was after

controlled

a

France will lose all' Indo- .

psychological, political and economic foundations. Con¬
cludes our position in the Far East has been weakened
while that of Red China has been strengthened.

Notes authors of "The

advocates of

are

of exports, and hints

Says U. S. foreign policy has a "new look," and
holds collective security plans for Southeast Asia lack

and refers to Prof. Wiegand's article in the

"Chronicle"

period in which the Democratic party was in full
control in Washington. Additionally the current

as a

antagonistic classes.

Money Crusade"

economy,

largely on the degree of economic activity
{including employment and unemployment) now
obtaining as compared with last year, the most
active year, economically speaking, we have ever
had, and with 1952, the last calendar 12-month

a

into

Hard

turns

trend is also

China.

ers

President has to say.
own

ume

Treasury, under which interest rates were permitted to
rise and government bonds go below par value, reviews
the publication entitled, "The Hard Money Crusade," in
which a cheap money policy is advocated. Offers refu¬
tation of a number of charges against bankers made in
this book. Says statements made are calculated to set
off big and small banks, as well as borrowers and lend¬

side, it seems to
us that there is a deep-seated infirmity in the type
of reasoning here employed by the President—or
perhaps we should say a serious lack of complete¬
ness.
Such shortcomings are, moreover, all too
often overlooked. It is well, accordingly, that we
study rather closely and thoughtfully what the
First, let him tell his

to

from the accord of the Federal Reserve Board and the

great effect in the forthcoming election cam¬
paigns. Such, as a matter of fact, it is without
question intended to be. His success, or lack of it,
will in all probability have a good deal to do with
the outcome of the voting this fall. .

political questions to

Palyi discusses French domestic and foreign politi¬
problems. Finds France must hold on
her African possessions in order to maintain her vol¬

cal and economic

Congress to combat the "tight money" policy resulting

political scene one of the issues which
opposition had been planning to use with

But

Dr.

Mr. Bratter* after giving the history of the movement in

from the

the

By MELCHIOR PALYI

By HERBERT M. BRATTER

his bid to eliminate

Copy

a

After Geneva

The Crusade Against
Sound Money

\ \r r

Cents

40

Price

N. Y., Thursday, August 19, 1954

Grporatioh
40 Exchange Place,

New York SJ, N.Y,

Members New
and

Teletype NY 1-702-3

WHitehall 4-8181

111

Boston

York Stock Exchangm

other Principal

Exchanges

Broadway, N. Y. 6

WOrth 4-6000

1 NORTH LA SALLE ST.
CHICAGO

IRA HAUPT & CO.

Teletype NY 1-2706

Telephone:

Enterprise

1820

1

•*

2

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Secui'ifty1 LikeBest

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A continuous forum in which, each week, a different group of experts
in the investment and advisory field from all sections of the
country

Central Illinois Electric & Gas

participate and give their

Central Indiana Gas

for favoring

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(The articles contained in this forum

Utility

they to be regarded,

are

Citizens Utilities Gas Service

BRADBURY

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offer

as an

THURLOW

Members

Puget Sound Power & Light

New York

Associate

Member

Brook Water
.

.

•—

Stock

American

Associate

ing..

American

current

Member

Stock

Exchange

ings.

its

WOrth 4-2300
BOSTON

Lincoln

Boston,

State

84

is

Wires

Portland,

enjoys

Me.

mantic

as

been

has

to develop and

become

evident,

(six months earnings this
are

management

signs that the

some

is

1953)

finally

trying

to

profits
it would not be surprising to see

in

the stock rise to

in¬

consistent

(and
K.

B.

solid

ard

the

improving)

Thurlow

level

new

a

with

P.

Steiner. Rouse & Co!
Members

more

improved

earnings

New

Members

American

19

required.

are

There-

Rights & Scrip

the

".

of

essential
of

ume

do

not

The

rigid

but it

Direct wires

business

company's

manufacture of

is

and opti-

cameras

cal devices used in aerial

Since 1917,

raphy and other military

photogpurposes

'

1

of

•

classified

a

enjoys

position well-entrenched
lp.
At one time
is
military business had to be regarded as an uncer am 1 em,
u

York

American
120

Stock

Stock

Exchange
Exchange

it

BROADWAY, NEW YORK 5
TEI. REctor

a

leaders

in

Members

New

com-

is the oldest in the field and

pany

ffipONNELL&fO.

The

nature.

now

is

of the most reliable

one

2-7815

comeeni^
any co
pa y
cou a
] y
come

and

Trading Markets

will

The

probably continue to be

glamour

in

the

Last

the

Fairchild

December

has

recently

through

was

"S^d to fhfs^same rfnrk3 '
J.
?.e *b's ?a™e annroximatelv
Drfce

50% i„

and

TouS

some

f * "J P"of
recommendationsmade
,evels

In

mav

rth%

ft

at

these

opini(m®

my

rjge

television

SECURITIES

has lost almost

may

precision

investors

film, Eastman

of

doing

active

tronics
The

research

well

as

in

as

l

reasons

in

Call

Eastman

particular

follows:'

111

,

aware-

the

stock

33'/2 <adiusted ' for
stock

sold

at

subsequent

Now the future

-

.

(c)

very

Fnancially the
strong and has

company

Mines

(d) It ranks high

,

I,

is

Unilever NV

debt.

no

for

quality

products.

Philips Gloeilampen

printer to
52"SHaiI1IS3"S'"m'.T"wcrla
^
Pr°frt
enables

vice

a

Company

piepare

photo-

a

ODGrations

heM

Thp

and

in

stork

is

comm^d

cou

d

quickly

skilled

labor

Price-earninSs ratio to which it is

$250

month

mlc+ln

Scott, Hortier &
Mason, Inc.

a

Places

an

itinnnnnin

.

LD 33

produce
inn

and

skilled

entitled, in line with other

com-

pa"ies etl«aged in similar

pur-

-to

suits. Early developments of

investment

one

of

UD

timo

several

hours

to

hiehlv naid

more

^"operators

gyP

6

rec°gnition of this company's

,,^1S spring, the company exblbdf a Pj;ocess whereby Scan-a-

Insurance Company

fn
!t

Bought—Sold—Quoted

color

ahd

Scan-a-sizer,
.original

Special Report Available

shortly aftemanfe

announced

new" product

a

refinement of the

a

machine,

permitting diinstantaneous
enlargement

rect,

un-

Zntts^TWs^ck .is listed on
k"listedf7
™on™s- -This stock
Current price

.

American Mercury

cer-

is

30.

44 Wall

Exchange

Stock Exchange

In

of

terms

potential

earnings
;these projections produce fantas-

,

,

Street, New York 5, N. Y.

tic

Beacral Partner, W. E. Burnet
N(=w York. City

& Co.,

Members, New York Stock Exchange
Eastman Kodak

Company
r

1

after
at

crease

greater

I. G. FARBEN

1,000
ent

than

$1

Plastic

high

profit

At

pres-

at
well

are

as

basis.

Production

as

of

overall

the

Scan-a-

sizer is scheduled to begin
shortly,
and
I understand
that revenues

Bom -these
been rising
date
Members

New

may

oTioorl
ahead

York

Stock

Exchange

25 Broad St., New York
4, N. Y.

Phone: HA 2-9766

Tele. NY 1-3222




items, which have
somewhat slowly to
soon

mnro

more

begin

rapidly

to

move-

T r-i

in

nrx

response

to insistent demand.

To compare Fairchild to IBM at

this

state

of

its' development

is
with

obviously
premature,
but
only 458,000 shares outstanding it

Kodak

other

Burnham

Eastman
No

owns

15 Broad

are

so

Company

Street, New York 5

Telephone

Teletype

Dlgby 4-1400

NY 1-2262

one

Tames- °f
American

other

commerce

and

Members New York Stock Exchange

Cable Address: COBURNHAM

well

f be .thos® o£ the Singer ManuCo^CompaT/3^ M °f ^ C°C8

Specialists in

jn

selling a world-consumed
article, Eastman is more fortunate
Sin^r

in

that

'

LOW-PRICED

itc

I

of

eiec-

.

in-

R.

P.

Windisch

.

.

? .i?. b®ir!g

earning
O
-

number

lo Eastman's strength and
P0wer
PUW"!

the

their

once

because
UCCdUSc

0f
OI

the
IllG

of

employees engaged in
producing a large volume of pre,

to the nature of photography
degree

of

WELLINGTON HUNTER

developed

which

cannot

be
.

With

a

It

would,

by

more

to

us,

15

the

Its

quality

and

HEnderson 5-6005

performance.

-

a

de-

N. Q. B.

seem

OVER-THE-COUNTER
:

products

n

INDUSTRIAL STOCK INDEX
14-Year Performance

of

35 Industrial Stocks

.

*

,

•

FOLDER

ON

REQUEST

and reliable

It takes a highly
organization
which
is
disciplined for-product purity and

Continued

WOrth 2-4578-9

are

their1 emv^ U \
—

Teletype J Cy 698

use

demand not so
' mii
though their originality
Vn,lclueness as do most commPrP.IQl
TWCIAM
1

•

Direct N. Y. Phones:

Sai"®d world-wide

k

Exchange PI., Jersey City 2, N. J.

recrea¬

therefore,

imitate.

ASSOCIATES

peace-

again before

and

!.i

are

CISe,y standardized products. Due trained
high

Inquiries Invited

Coca

manufactur¬

highly

a

one

arts

ficult

'"Sd? tt'flSte^
Lbulor

and

world

tion.

wage
,

requires

&

"know

that the demand for
photographic
products will rise in all
countries.
Eastman possesses
a
peculiar
"know how" which is
most dif¬

try.

.

in

sales

the

Rising standards of living
always followed by a greater

indus¬

dividend

unit
and

opportunities for world-wide sale
of- American
technological prod¬
ucts
have seldom
been
greater.

.jr.0'a
?J: ®. ^ p.

The

its

used

iui

understanding,

?

that

substantial

easily substituted.

^

.

•

tronics

in

skill

Pallcy
an^ iac koI:

ma-

an

"Kod

In

ing

e,n ?

}

per ma¬

..

™ a ^ ,e

°

highs
on

^toripstion

these,

on

new

In

how"

ack.. 0±

®

.

in

'

chines)

and

J? other than- the photographic

more

J;0

seem^

(the

are

dividend

wage

industrial ' relations policies, it
has Excellent employee relations,

pi

sales

machines

item

in-

additional

per

materials

chine
Firm Markets

should

a

substantially

rented.

1,200

over

and

rate

machines

use.

Successor Companies

taxes
a

•

Kshed

Cola

This

Price-

aD0Ut

share

names.

(g) Because of its long estab-

than

jarSely duetto.-

in

approximate $1.30

Royal Dutch Co.

URANIUM STOCKS

figures. With 1,500 machines
production, earnings from rentals and sales of plastic materials

Tele.—NY 1-1817

A

pro-

known around the world, unless

RICHARD P. WINDISCH

alone should

Tel. DI 4-7140

by valuable trade

articles of

eter P. McDermoit & Co.
—^u,d approach 10-000
American

are

■

a rare "k"°w how" and

af, ^
all
times.

★

Members New York Stock

tected by

tain projects now under discus*Ah) .it is. aggressive in adapting
sion should contribute to further its-skill in chemistry and plastics

nWn

or

premium

fe-

device

plate suitable for print-

a

the

WovS

This

envrfvinJ
qufrement o"

Lynchburg, Va.

inexpensive

uses

margins

rlnsrlv

opinion

mv

f a^chin°PnlywahlehW ™mrc,Wino

Dan River Mills

Tele. LY 62

a

high quality cut from

Broadway, N.Y.6 COrtlandt 7-5680

De Beers Consolidated

■

i.'1

Gas Company

Branches

.

,

still in the "bread

were

stage,

10

a

( }
!s on.e °f Americas
tremendous potenSrea^est international companies,
tial earning
ower thi
company
Kodak manufactures in five councould show' In 1951 when present tries and seUs in a hundredboard";

1897

—

Investment Bankers

ag

pro(}uct£

Tokyo

&

-Ieader in the field
°f C0'0r Photo§raPhy. which is
young technologically.
Further
industrial aPPIications> Partic"y
field 0f duPlicatinS
and publishing, are very promis'

Alabama-Tennessee Natural

Commonwealth Natural Gas

Office

Brokers

•.

(a) 11 is

write

Established

at

briefly

are

or

Securities Co., Ltd.
Home

time

knowledge

Yamaichi

elec-

polyesters,

Uke

with

Japanese potential.

man-

agement is keenly aware of developments in. the magnetic tape
and
polyester film line and
is

as

"Ct

fi

have unUsual appeal

investors with vision-

to

other company in the manufacture

prjce reflects merely

beginning of investor

nesg

dividends).

American Furniture Company

1

■'i

JAPANESE

market for motion-*

new

■m

one

this

when

branch offices

our

*

an equivathrough the shrinkage of
the motion-picture industry. Having more experience than any

0f

to

specifications,

company

picture -film
lent

NY 1-1557

Mobile, Ala.
,

in

meet

Exchange
Exchange

Birmingham, Ala.

minimizing the volrejected materials which

gained.a

out-

•

1

Stock

Stock

St., New York 6, N. Y,

New Orleans, La. -

•

backbone

Rector

York

HAnover 2-0700

pendability

fore> an interest in the company's
profits by all of its employees is

from

waiting

convert ideas into tangible

dustry.
The

apparently

have

power

growth

and there

any

American

fair amount

a

-year $1.65 against $0.63 in

ro¬

company

so

however

|

out¬

as

it

growth

discouraged that it had
long to appear. Now that

are

the

and

an

look

Specialists in

who

to

who

earning

taken

share

a

this year,

Philadelphia,

Houston,

Providence,

$3.50
Dallas,

Cleveland,

for

i

than*

close

earn

to

this

to be

coming

holders

should

30,

Bought—Sold—Quoted

earn-

share,

a

that

■

seems

prices,

r-

selling

less

Y ■■ 19]

Thurlow,
Co., New

K.

Bradbury

many

of stock available around current

Camera

still

for

Street

OFFICE:

Liberty Building
Private

Chicago,

Hartford,

child

Teletype NY 1-40

OFFICE:

PHILADELPHIA

Direct

5

i

a

for

$3.50

at

appear

There

earn¬

F

growth

potential is not being reflected in
the price of the stock. -

'

120 Broadway, New York

Louisiana Securities

Instrument

&

Company—RichWindisch, General Part¬
ner, W. E. Burnet & Co., New
York City. (Page 2)

*

of consistent

promise

power

would

and General Electric for less than

times

—1

to come. With present

years

ft

ten

Camera

—

Partner, Talmage &
York City. (Page 2)

from

revenues

-1

sizable

and

rarely these days that one
is able to buy a stock which has

Established 1920

'

■L-1

chines, hold

Stock

the kind of glamour found in IBM

/

Co.

rentals and sales of plastic
Exchange materials to go with these^ ma-

It is

Corporation

nor

a-sizer

Fairchiid Camera and Instrument Co.

New York Hanseatic

that

>1

potential Scan-a-graver and Scan--' Eastman -Kodak

Exchange

Upper Peninsula Power

clear

Alabama &

it,

sell the securities discussed.)

to

seems

Partner, Talmage & Co.,
New York City

Otter Tail Power

Scranton Spring

K.

be,

to

1954^ }

19

Week's

Participants and

particular security.

a

intended

not

are

Thursday August

.

Their Selections

■

Fairchild

Central Public

.

on

page 38

National Quotation Bureau
Incorporated

46 Front Street

1

New York

4, N. Y.

Number 5352

Volume 180

.

.

The Commercial and Financial Chronicle

.

What's Wrong With
The Stock Market?

INDEX

After

Geneva—Melchoir

llCHTEIMI

B. S.

Articles and News

By L. B. SCHWINN*

Pages

;

and company

-Cover

Palyi

L. B.

Schwinn & Co., Cleveland, Ohio
Members, Midwest Stock Exchange

*

^

The

Midwestern securities

dealer reviews recent developments in
stock investment, among which are the increase in
common stock holdings of trust and pension
funds and the
liberalization of state laws regarding institutional holdings of

,

common

common

...

stock.

What's Wrong With the

Tools

general market.

Stresses confidence

as

Though under false pretenses, I
accepted this opportunity to

'!

Our Foreign

A Plan for
* "i

*

there

discuss the stock market for sev¬

vestor in the

eral

begin

To

reasons.

with,

stocks

have

become

im¬

ican

participate
but

if

tually

may

every

i

z e n

capi¬
lowly

or

laborer.

a

You

not

may

own

single share,

but

you

deed
do

if

investments

these

be

may

sup¬

ported by common stocks, as my
subsequent remarks will reveal.
For one's own personal benefit,
all

of

should

us

with

quainted

become

of individual investment
It also

today

me

to

finally,

come

here

the importance of
stocks in maintaining the

enterprise system and in turn

and

wither

own

properly
there

vocates

intelligently

and
will

be

of

freedom

in industry and politics.
The size
of an investment does not limit
the pride of an investor.

pation

ordinarily

hension.

When the

and rewards of

of

life

and

are

compre¬

opportunities

American way

our

properly

evaluated,

Partici¬

means

understood

American

an

triot has either been born

or

pa¬
re¬

activated.
re¬

distributions

stock

of

Sears, Roebuck pension plan
have
created
any
Communists
among
the fund's
beneficiaries.
Employees who earned $50 to $100
week

service

vision

\

have

retired

on

estates

of its merits.
Nor is there any desire on my
part to compare free enterprise to
a lottery or
game of roulette. Be¬
cause the Sears, Roebuck employ¬
conception

Consolidated Uranium
Federal Uranium

12
•

•

Controls!—Gordon

Lisbon Uranium

Cummings

13

Housing Act—Norman P. Ma.son

15

*

y

In Praise of the New

Standard Uranium
'

More Emphasis

Retailing—Wendell B. Barnesl-

on

——

L

Bought—Sold—Quoted

16

13

I

\

.

Henry Heimann Says Fall Business Will Be Good__

Frank Pearson Sees Dairy Industry Victim of Bad Publicity--

In
,

••

*

For the

this

Gearhart & Otis, Inc.

]

Eisenhower Optimistic

"

'

.

Business Outlook___

on

<$>

Unlisted

search
route

incessantly
to

v

As We

Bank

See It

(Editorial)

Telephone

on,

investors

for

29

;

Business

Bookshelf

Man's

—

8

Investment Recommendations

Dealer-Broker

GIVEN

8

MANUFACTURING*

'

HYCON*

easy

an

A tip, a hunch,

success.

formula, anything is preferable
to sound judgment and informed

There is
in

a

Einzig: "The Rise in the British Note Circulation-------18

business,

my

illus¬

to

J. RAY McDERMOTT

through

walking

district in

the

New York

finan¬
with a

more credulous associ¬
who firmly believed trends
the exchange could be fore¬

younger,

cast

7

^

DAN RIVER MILLS

•.

Current Business Activity

Indications of

—_

PAN

\

31

AMERICAN

-

SULPHUR

hardened, sophisticated broker

cial

Washington Ahead of the News—Carlisle Bargeron___-

From

/

,

.

well

story,

trate that point.

was

NY 1-576

-i

a

A

Teletype

WHitehall 3-2900

Cover

-

Stocks.

Insurance

and

Dept.

❖

tele¬

insists

many

so

Trading

Regular Features

saying.

that

F. Reilly, Manager

John

sea¬

to adhere

us

of

Trinity Place, New York 6

14

and

romance

in

13

74
k

facts, mam."

Instead,

Mutual

28

Funds

Notes

NSTA

-—

-

ULTRASONIC

GIANT PORTLAND

10

...

CEMENT
/■••

...

•

'.

•

I

■ ;

News About Banks and Bankers.

—

*

29

price action and volume of trad¬
The skeptical broker pointed
out a man across the street and

on

t' 4

Request.
7

depicting

by keeping charts

Literature

p
We

Observations—A.

Wilfred

May

Reporter

Governments

27

Our

Reporter's Report

than

5

Our

maintain

trading

over-the-counter

250

'

viarkets in mo?

on

remarked, "There is a chart reader

profoundly admire.
He's quit¬
ting Wall Street with a small for¬

securitie1^

Singer, Bean !

38 "

—

This aroused the immediate in¬

who
excitedly asked, "How did he do
it?
What system did he use?"
terest

of

the

younger

The reply was,

Public Utility

Securities

"He started with

Securities

Securities Now in
'

Y..'j]

Stock Market
events

during

have not
made the task of rationalizing the
stock market any easier.
Most
businessmen will tell you their

27

___

!_

Registration

34

Gulf Sulphur

Security

Corporatioi
Sulphur Cc

37

Offerings

i

'

Securities Salesman's Corner

32;

>

.

'

•'

The Market.

.

and You—By

.

' '

•

.

■

'

.

•'

•.

' i

•

Wallace Streete

Tidelands Qils

16

j.j

■

The

grown

Security I Like Best

2

Jack & Heintz, Inc.
The State of Trade and Industry

4

'

'

-\

,-

Washington

and

■

■

.

.

■

Reeves-Ely Lab. Inc.

40

You

Common

I

Preferred

&

..

Published Twice

COMMERCIAL

The

PREFERRED STOCKS

WILLIAM

B.

Park

DANA

Place,

REctor

Members New

BROAD ST.,

York Stock

•




Boston
•

TELETYPE N. Y. 1-5

#

Chicago

•

Nashville

•

HERBERT D. SEIBERT,

WILLIAM

DANA

•<

Schenectady

N.

corporation

and

Other

city

news,

Offices:

Chicago 3, 111.

135

news,

President

(Telephone STate

Salle

West End Chemicals Co.

second-class matter Febru¬

Union,

Dominion

Canada,

of

Countries,

$55.00

States,

U.

S.

Members

and

$48.<Jb

Pan-American

W« V. FRANKEL &,

Rates

United

in

Territories

year;

in

per

$51.00
per

CO.1

of

per

year.

INCORPORATED

39 BROADWAY, NEW
WHitehall

YORK 6

3-3960

year.

Teletype NY 1-4040 & 4041

etc.).
La

Possessions,

Other

bank clearings,

South

{:

Eng¬

Smith.

Subscription

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

as

Subscriptions

Editor & Publisher

SEIBERT,

C„

ary
25, 1942, at the post office at New
York, N. Y„ under the Act of March 8,1879.

Y.

9576

Thursday, August 19, 1954

state

Worcester

to

&

B.

Copyright 1954 by William B. Dana
Company

k

N. Y.

Glens Falls

Manchester, N. H.

New'York 7,

2-9570

c/o Edwards

Reentered

COMPANY, Publishers

Exchange

NEW YORK 4,

TELEPHONE HAnover 2-4300
Albany

and

London,

Gardens,

Drapers'

land,

Reg. U. S. Patent Office

25

25

1

Weekly

FINANCIAL CHRONICLE

Spencer Trask- & Co.

I

,

Corporation

land, Ohio.

have specialized in

!

,

,

the first half of this year

has

Exchange PL, N.

Pan American

I

Prospective

business

40

Teletype NY 1-1825 & NY 1-1826
'

"Railroad

.

Unfortunately,

■

————————

•

Rationalizing the

26

—

man

large fortune!"

a

mack1e, Inc. "

&

HA 2-0270

tune."

steadily
ees hit the Jack Pot is no assur¬
worse.
In the face of this, the
ance others will be so fortunate.
stock
market has continually
moved higher.
On Feb. 24 the
*An address by Mr. Schwinn before
The Cleveland Engineering Society, Cleve¬
Continued on page 26

For many years we

j'

h,

ing.

need not be that dramatic to con¬
a

11

our

saying,

a

which

program

"Just the

during several decades of

ranging from $90,000 to $180,000.
Rewards of the 'capitalistic system
vey

on

admonitions

the

on

^

Amuranium

'

welcome

is

be better for most of

ate,

Whitehall 4-6551

was

frequently there is a ten¬
dency to exaggerate the romance
and ignore the statistics.
It might

the

a

''

•

I

It is difficult to believe the
markable

Goodbye to

because

merchandise.

there

wisdom

much

to

STREET, NEW YORK

9
.k:

;

-

•

But too

stocks, the more ad¬

common

•

A National Problem

..s.«.

y*

econ¬

invitation

statistics."

on

known

who

■

Mills, Jr

soned, experienced operator there
is

i

i;

enjoy two

dealers

thrive

often.

people there are

L.
v

appreci¬

alacrity

its

Street

opinion.

more

your

investment

democracy cannot be stressed too
The

to

dynamic

a

with

"Stocks

activity.

because

common

free

pleased

ac¬

regardless

stocks,

And.

accepted

business

a

< •1

■

bid!

a

Obsolete Securities Dept.
WALL

Telephone:

*

for

us

and equality of opportunity.

omy

Wall

all of

or

—A.

The

success.

learns

Americans

we

you

some

v

.

•

to

misunderstandings about

-

insurance

Any

forbearance

and

n

•

8

Fighting Depressions—Richard E. Deems-

•>-.

.

systematically, he

blessings:

have

policy of

pension fund.

the

degree,

chance to dispel the illusions

savings account or a participation
a

great

4

The Federal Reserve Has Stood the Test of Time

.

only

any

description,
in

has

investor

ate that

all

modest

a

achieve fantastic

small

-

to

cannot

i

not

a n

he

He

are

indigent

Leslie B. Schwinn

he

be

,

wealthy
talist

cit-

LL

-

6

—Hon. William S. Hill—-

ownership of Amer¬

and invest

save

4

Cobleigh

place for the small in¬

a

business.

portant to vir¬
American

is

U.

Policy—Roger W. Babson

Better Food Marketing:

The moral to be derived is that

have

for Investment—Ira

common

..

to investment.

nines and Felines

3

Stock Market—Leslie B. Schwinn_„

99

prerequisite

a

M. Bratter__Cover

How Good Are Our Communications—J. Edward Trainer

stocks by women, and holds broadening of the field of common
stock investment constitutes an indemnity bond against a drop
in the

TS and dogs

Crusade Against Sound Money—Herbert

'

Says institutionalization of the stock market

in sight.? Refers to increasing purchase of

is not yet

3

(679)

St.,

2-0613);

Other

Publication

Bank and Quotation Record — Monthly,
$33.00 per year. (Foreign postage extra.)
Note—On

account

of the

fluctuations In

the rate of exchange, remittances for for¬
eign subscriptions and advertisements must
be

made

In

New

York

funds.

Direct

Wire

to

PLEDGER & COMPANY, INC.,
LOS ANGELES

j
\

4

*(680)

The Commercial and Financial Chronicle

chine

Tools foi Investment f

not

Enterprise Economist

)

;

-

will

be

in

demand—

peak

wartime

levels,: of

course, but somewhere above $900
million for this year and not less

By IRA U. COBLEIGH

.

tools

at

than $700 million next year; And
that kind of volume the en-

:

on

trenched leaders

A brief inquiry into the present position of the machine''tool
industry, boring into the question of whether or not tool shares
are now selling on too high a plane.

and

make money

can

fat dividends, especially

pay

that E. P. T. is

now

dead duck,

a

^

"

Imports and Unions
The machine tool industry is, by
tradition, trundled out of the eco-

shares rise from 21 to 50, their
dividend increase from $z to

nomic textbooks

and

ample of

the classic

as

ex-

cyclical industry.

In
fact, it has

a

oftenbeen
cited

the

as

type

of

secu-

rity to get out
°f

first, at the
signs
-of a fading
-bull market,
earliest

the

on

rather

simple
that

perform

their

Ira

U.

production

in

Cobleigh

function

expanders

as

of

the

earlier

stages

of;

oro

Pretty
the

/

financial

So

that

what

in

has

cycle has for

run

freak?

issues
™

of

th*™

First

of

machine

since 1940 and

$200 million.

figure

times

to

about

Within three years

to

multiplied 6%
bulge in 1942

in

was

the

were

war

above $1.3 billion.

Then when the

postwar years 1949 and 1950 averaged 'around"the"$300 million level
the

classicists

"See,

should

long-term

back

you

told

we

and famine.
—

sat

this

and
was

said

feast

Nobody—but nobody

consider

field

for

permanent equity in-

or

vestment."

this

Since

1950,

however,

the

there is

no

looks

a

like

field day for all the

rs'

at

fhat

one

—

:

-

^^Age

cmnes.

ine

which

Request

we

Age

now

much

jn

tool

ma-

hopped J

Half of
years

lion

AND

115

OTHER

STOCK

AND

COMMODITY

EXCHANGES

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

BArclay 7-7500

our

old,

a

of

our

or

jq

stable

that

excellent,

issues selling

at

times

earnings,
overpricing

market

Iast

states

evident.

seems

year

more

tools

no

of

Van

th*

and paid $2> plu3
Acme at 48 yields

for

If

I

had

siles, which

infancy?

in

their

10

to

tools surely.

motor

car, airplane,
and
electric

appliance

trades

mis-

relative

Big market in this

for machine
our

are

guided

area

Unless

jet

but

to

one

inin-

shown remarkable

•

?!

>

pick, how-

pro-

machinery
fade, ma-

years, build-

ing its net sales from

1949, to

1953.

It

entire

now

does

machine

business.

$33.2 million
$150 million in

over

12%%

tool

It serves

customers in the

tive, aircraft
industries.

It

Price Index

Food Price
Index
Auto

Production

.^ Business
Failures

noted in total

was

An announcement
by the

Secretary of Commerce

Industrial

output

in

July

dropped

about

6%

below

June
due to plant-wide
shutdowns for vacations and
"other purposes"
the Federal Reserve Board
reported this week. Its
production
index dipped to 117% of the
1947-49 average, down 7
points
from June.
The board stated that
after
allowing for seasonal
vacation close-downs
by many industries in the
June-July period,
its index
was
unchanged from June levels.
The July

however,
to

index]

12 points, or 10%, below the
year-ago figure.

was

claims

for

unemployment compensation
dropped 12,900
ended Aug. 7, the United
States Depart¬
reported/ The total number of

272,000 in the

ment

of

jobless

Labor

pay,

week

of July

as

31,

workers claiming
1,792,000, down 62,000 from the

was

preceding week, it said.
The nation's

output of goods and services in the
second quar¬
increase after a nine-month
decline, the
United States Department of
Commerce disclosed. Gross national
ter

showed

its

first

product reached

000

from

the

annual

rate

quarter

this

an

first

$369,900,000,000

mark

the

of

of

$356,000,000,000,

ment

added.

Growing confidence

up

$200,GOQr

year, but 4% below the record
1953 second period. The
latest gain

was
due to rising consumer
spending
outlays which offset reduced Federal

that

the

and

private

construction

expenditures, the depart¬

steel

market

will

soon

metal

and

v

;

-

•'

•

a
of fact steelmaking operations are currently
scheduled* at only 62.0% of rated capacity, a decline of two
1ocf

last

points
Steel ingot production
index is estimated at
100),; It adds, despite some
improvement in the
orders," total tonnage on the books does not
yet in¬
substantial improvement in

week.

(1947-49

dicate

any

August

^

=

production.

order

books

are

closed, although;you

get
quick delivery of moderate
tonnages of most items by shopping
around a bit. Mills can
often give
delivery quicker than indicated
by their production cycles.?
They can do this by making short
over-runs on
production orders, or
by holding small tonnages of
semifinished
steel which

Also,

cancellations

mo,rn
mnire

<=net

or

.

be

can

processed

,euues[s
requests

e, spot tonnages available,

IO
to

as

still

can

emergency

nPmv

delay
aeiay

orders.

shipment som
snipment sometimes
.g £ra(je
notes this trade authority.

I

-a-

-om

A,

of the

Continued

on

page

working

grinding,

W,

centerless

It

also

are

pleased

to announce

pro-

cutting

and

expanding

England

and

relations
_r~

it's

„

It

presses.

In

in

.

„

production due

to

,

.

a

a

Branch Office in

,,

PA.

Lincoln Liberty
Building
Telephone: LOcust 7-6773

70
.

a single day s

strike!

opening of

PHILADELPHIA,

labor

truly unique—in

years ^ s never lost

the

has

plants

Holland.

Direct Telephone Wire

-

The balance sheet
of Cincinnati

to

New York

Newton H.
Parkes, Jr. and William R. Raditzky

will be associated with

us

in

our

STATE AND MUNICIPAL
BONDS

CORPORATE BONDS

Philadelphia office

New York Hanseatig

LOCAL STOCKS

STOCK

Corporation
i

MORELAND & CO.
Members:
Midwest
Detroit

Stock

Stock

Associate Member American Stock
Exchange
.

Exchange

Building

DETROIT 26, MICH.
Office—Bay

Established. 1920

Robinson-Humphretj Gompanijjnc.

Exchange

1051 Penobscot
Branch

4

The

City,

RHODES-HAVERTY BLDG.
WALNUT 0316

1, GEORGIA

LONG DISTANCE 421

120

Broadway

WOrth 4-23Q0

New York
5, New York

Direct Private

Wires

'U
to

Teletype: NY 1-40-1-2

Boston, Chicago, Cleveland, Dallas,

Hartford, Houston, Philadelphia,
Providence, Portland, Me.

Mich.




ATLANTA

n,

ilWvVAm

Fitfai U V

show

improvement is not yet reflected in
current production rates or
order books, states "The
Iron Age," national
metalworking weekly

ESTABLISHED 18941?

L. A. DARLING GO.

Carloadings
Commodity

stated that
the government will
speed some Federal expenditures
by placing
many orders in the near future which would
ordinarily be made
six months from now.
This will result in an
increase in
ship¬
building, road and airport construction.

fluids, grinding
wheels, lathes, drilling machines
large

th

:■Retail Trade

wide list of

turns out

hydraulic

i

Production

milling, automo¬

and

getr

Perhans

Electric Output

industry

a

milling, broaching
lapping machines.

and

be

uUSj
sa

investment.

Steel

;

Industry

change

"number of

,

in 1884, has
growth—espe-

cially in the past five
in

to

reconsider

tools for

as

buzz

industrial production
in the
period ended on Wednesday of last
week, but it was about
9%
below the level of a
year ago at this time.
-•

92.2

Milling
distinguished

This

enterprise, founded
-

about the demands
industries like atomic
and

each
eacn

The Big One

Machine. Co.

$300-$500 milyears

in
m

ever, I'd wind up with the
top
one in size,
prestige and diversity
of operation — Cincinnati

Replace¬
might thus

several

rockets

with

and

tools.
should

the

are

J)
Little

from

so.

alone

solvenev
solvency,

01

'

•

a vast

are

and

this week.-

{

buue!s

tax bill with

SOLD

QUOTED

COMMON

the

aEfrtaW S reveaf high

what
new

energy,

and

—

that

more

appears

many

shares

$7 05

enter-

perhaps

machine

year

Then

oulsion

BOUGHT

our

comment

view

*t

up

III

EXCHANOC

capsuled

power

0

duces

STOCK

than

secon'd

come*

MEMBERS NEW' YORK

Besides,
growing

stock. National

to be

new

account for sales of

I

as

cylinder

export could burgeon.

ment-demand

EtTAILISHED

rate

the

cellars

machine

Vestors

.

New

at

with

gaudy

AutomatTon
Automation,

of
ot

the world, and

into

State of Trade

,

in

long

appropriate

an

faster

this

arrive

these

depreciation formula for equipment and
machinery, should mean not
only big
orders for new
tools, but a vast
replacement
of
obsolete
units.

J. R. WlLLISTON & CO.

get

force

so

Norman at 145/3 earned
$2.41 last
year and pays .j
currently. Excell_0
largest ln
field
,ooks substantial
It earned'

l30

seem

Fourthly, the

■

and

accept the result.
total population is

from

American subsidy to
friendly Asiatic countries in the
offing, ma-

its

on

labor

secure

us

and fi¬

before,

ing, is where the machines will
operate themselves
machine
tools, that is.

chine

Dealer Circular

landed

selling

over

& TRUST

have

the most prosperous

history;

and#

Thirdly, with backward countries becoming
industrialized all

TRADE BANK

productivity,

home

un-

fjrs^ P°wer ^°oms.

men

—

Hidden Values in

seem

But The
record^has shown that
machines, with their vast increase

earning

hoSSSL5«AJ£

18Cmo°nnthsto they "havtseen^'Ur

outstanding)

of

j

can

h
Aboat the. unions, th
the^nave
intermittently opposed every advanee of the machine from the

in

Gambit

and

when evervhn/
to "do
it vn

yen

lathes, drills,
everybody seems

The

major threat,

machine tools trade is
than
at
any
time

processes

maTh'of.rt

—

ands

?-?
!

business

f/,!"

several

protiuce

can

lands

the

.

g0

For example, the motor
a huge machine tool

once.

shares

mon

are

•

the

era

a

with

raised, and perhaps even a
stock split may, in due
course, be
vouchsafed, t Why
not
compare
Cincinnati Milling (850,000 com-

•
.

we

industry has

zero, or where

of

prove a

an

self/? and thousands
upon

labor force,

spent.
Secondly, you ve heard a great
deal about automation—machines
where the labor factor is reduced

for

in

getting

Gen

mon, $80, and give plausibility to
notions that the $4 dividend
may

and.

:

edges, they
to

our
at a

price of labor, by increasing the
productivity of each hourly unit

chine performs

So
is

o n e

at

foreign

some

the

same ran
your opinion

of

slice of the expanded productivity
which machines create, unions

textiles, motors, coal mining, etc.). Hence, there is, quite
logically, an unremitting demand
for machine tools to offset the

lion mark

this year

from

at

aroun(j

will

reason

certain

almost to

and

gjjjpg

nancially

expect a down trend (except
isolated instances of distress—

industry has showed quite surprisingly
sturdy
characteristics,
building sales again over the bil1953

inroads

in

will, ;in,

It is true that

specialized

union

all, the price of labor
steadily in each year

risen

labor

progress

the

stocks

19

be

require
technical and engineering service
to Joe always at hand.
So while

with

here?
here?

from

highly

world

has

this

fmm

them

Promising Future, Too

the

union

of

brake

our machine tools.

days
short

look.

a

past 15 years have loused up the
In 1939 total
sales

a

Are not representative
now too high?
What

here

improve

can

this

was

many

lot.

a

in theory,

facts

argument somewhat.
tool

been

0f them flattened out

ask,

$12.76 per share amply support
today's market price for the com-

.

pleasing Tact

0f 'em have gone up. This is the
best sort of practical proof that

we

home will

inptallaticns of machine tools
,

the

machine tools should have
off, they have in instances
outperformed the market, and all

Now

optimstic;

other

semi-

sold

business

0pp0sjti0n

ve-

tagged as
a
recession in the past 15 to 18
months—in a period when, by. the

the

too

are

Thursday,August

.

Which

^at competition from abroad and

mention

the

notes

-'

that the forego-

.

ferred stock) of over $40 a share.;. 150
first? • This
Nineteen fifty-three earnings of Foods
or Procter

witlEuropean, especially German,
atPfr^rmJ^e competition is at hand, but the big
least

or

face

we

-ng

looKea

never

investment stock.
v.

Let's take

all this is

as

actual

investment

an

a

boom; and when slackening output occurs in the ensuing recesi^ic
fircf
nnH
sion, machine tools are first and
hardest hit.

company

theory / book,

machine

-tools

the

better than right now. 1
this as an example of
locity, and also
a?
equity heretofiore
jigged
cyclical biemisii can

gome wm carp

Milling is a banker's dream, with
net working capital (after pre-

;

30

'

Number 5352

180

Volume

A.

The Commercial

.. .

and Financial Chronicle

knocked

askew

by

•

The

•

absence

quantitative

of

Exit

following letter to this column Mr. Myrick raises two
interesting market questions:—(1) What is the nature of the

(2)

Is selling

held

from

that

week

to

is

being

the

on

Stock

which
of

amount

tial

largely

offset

But it is also clear that

other.

a

accumulation

the

were

newly

were

in

decimated

CHICAGO, 111.—Henry J. Shir¬

ley, Jr., is now with Central Rer

un¬

an

public

acting rationally (a state just as inexplicable

arrived

at); while during the latter
were

*

again

pro¬

.

,./u„

another

tidal

wave

of

unreasoning

been

has

Fairman,

Inc.,

of holders of redeemable mutual fund shares

part therein?
Midwest

In any

event, the

answer

supply-and-demand elements constitute

May

of

been

price only

over

the

relatively closed 'eco¬
nomic system in which the over-all supply is quite unre¬
sponsive to demand, contrary to most business operations in
which supply tends to rise and fall with demand. Persistent
a

an

staff

of

Salle

La

the

Street,V

York

New

and/

Exchanges.

Stock

quantitative

Joins Hornblower & Weeks

important determinant

i

the long-term; and that, as further stimulated

price level of the

the

to the concluding question raised by

Mr. Myrick seems to be that in the stock market, the
Wilfred

to

Harris & »Company,

South

209

members
a

added

extra-value

pessimism engulf that demand-supply equation?

Will the army

play

*

CHICAGO, 111.—Frank B. Nich¬

of

substan¬

constitutes

members of the Mid*

(Special to The Financial Chronicle))

,

ols

will
or

by its growing atmosphere

Exchange

South, La

209

Company,

/Fairman, Harris Adds

stages of

*'""

When

each

has

buyers

was

optimism

going on for a long time.
Now

prices

1932,

pelled by manic-depressivism.

of

transactions

1929-June,

vanishing prices/ the suppliers-and-demanders

study of the
light on the subject.

some

Adds

Chronicle)

(Special to The Financial

c

Ex¬

apparent that a very large propor¬
the volume represents trading

is

and

it

transactions

recent

Exchange threw
tion

Central Republic

west Stock Exchange.

as

This it seems to me is an impor¬
tant point.
In buying I often wonder who
it
is
that
is selling and
whether
his
reasons for selling are sounder than mine
for buying.
;

It

Demand

Salle Street,

ers

bought

change.

The

Bassett Building.

Fenner & Beane,

recall the 1928-1929 pre-crash credo—

the

Pierce,

Lynch,

Merrill

Mary

to

During the first interval of that cataclysmic bear market the sell¬

the question of where all the

week

from

of'

staff

added

been

panicky exit of the former supposedly unsatisfiable demand-ers.

Reading your column in the Chronicle
recall that you have ever com¬

do not

on

us

has

Paul

F.

expected avalanche of selling occurring in a vacuum left by the

May:

comes

PALM BEACH, Fla.—Mrs.

price movements with
as
changes in

economy,

alike

November,

mented

the

by investment expert and golf caddy—that "good"
stocks, despite 200-1 price-earnings ratios and 2% yields, were
cheap because of their growing "scarcity value." Thereafter, from

logical than

more

buying?
Dear Mr.

market

Supply, Then

Non-statistically, let

In the

and

in

elements

technical tools
attempting to appraise the volume and "quality" of buyers at a
given time; have been demonstrated in this column previously.

Supply and Demand—And Market Psychology

supply of common stocks?;

correlation of

demand

■

Chronicle)

(Special to The Financial

personal savings; as well as the failure of various

By A. WILFRED MAY

stock

With Merrill Lynch

the

the behavior and decisions of both buyers and
•

I

data, excepting over the 'longer-term, is
unique psychological factors controlling
sellers.

supply-and-demand

'J

■>-v

of "respectability"

common

stock should

here and abroad,

secularly

move

,,

up¬

Chronicle)1 ';

vie, Jr., is now with Hornblower
&

ward.

(Special to The Financial

CHICAGO, III.—Allan P. Ogil-'

Weeks,

134 South La Salle St.

accumulation in such

a system obviously has a strong influ-.'
prices and makes-the inflexibility of the basic sources
of supply a prime considerations To the extent that new
ence on

are not available to satisfy the demand, it would
that higher prices must absorb funds that continue to
employment within the confines of the Exchange.
Of

listings
seek

course

but

sections

other

outlets

raises

the

securities

market

popularity of listed

interesting .questions

some

of the

of

the growing

do

UNCING...

ANNO

appear

.

provide
stocks

common

A

•

relative to the other

side

-,

change of name from Blair, Rollins & Co. Incorporated

demand-supply equation.
Yours very truly,

-

,

.

,

V
"

*

<

;

•

/-V-

:;v

myrick

"r

-

' v'

:
»•

312 East Pedregosa Street,
Santa Barbara, California

V

-

r

V

donald

In

.

the

:

'

•

'

to
•

Blair
.'<•

Long-Term Diminution of Supply

..

•

'

"ft;

\

I

: : ■

-

&> Co.

inco rp orat ed

/

of

supply,: let us first take a look at the com¬
new issues to absorb the expanding sources
Capital flotations by way of common stock issues, as

area

parative paucity of
of demand.

The investment

tabulated by "The Commercial and Financial Chronicle," in 1953
totaled only $1,095,957,49?—against over $5 billion back in 1929,

$3.6 billion in 1928, $1.7 billion in 1927, and $1.6 billion in
And

recent

totals

years'

the 1950 and

1949

have

been

smaller

even

1919.
1953's—

than

total of all new issues, as calculated by
the Department' of Commerce, has totaled
only $11.4 billion,
against a total price rise of $56 billion.

Today that name identifies

vigorous, growing organization with

a

figures having been barely half of last year's.

Since 1948 the grand

banking business of Blair & Co.

has continued since 1890.

•

facilities for

nation-wide

serving issuers, dealers and investors.

It is calculated that since the end of World War II our corpo¬

rations have used the capital market for

requirements—less liberal
of

depreciation
The

reserves

dividend

contributing

rising proportion of

stitutional

buyers

via

the

only 7% of their capital

pay-outs
to

well

as

the use

as

such independence.

Underwriters, Distributors, Dealers and Brokers:

issues being channeled to in¬

new

placement

private

technique,

com¬

bined with the rising

dried

of stock

State and

institutional demand for equities, has also

the supply

up

total for all issues

floated

so

individual

for

was

1953

The

buyers.

Municipal Bonds; Public Utility, Industrial

and Railroad Issues; Equipment

$2.7 billion, contrasted with $458

Trust Certificates

million in 1937 and $680 million in 1938.
.

Also contributing to the diminution of

the tax

on

stock supply has been

capital gains—a cumulatively effective force as

rise (inclusion of the mathematical tax calculation in

prices

/

whether to liquidate being warranted).
v,

Perhaps

worth

offsetting potential addition to the

an

mentioning, is

constituted

psychologically, in providing
device

which

'they go."

.

.

also

becomes

!

the stock split

Philadelphia-Baltimore Stock Exchanges

if only

—

And this is
increasingly important "the higher

more

pieces of paper.

Demand

44 WALL STREET,

Factor

)

NEW YORK 5, N. Y.

Considering the demand side also from a quantitative view¬

point,

we

pressure.

to $30

note

savings have since 1929 risen

upward price
from $4 billion

population has grown by 33%;

pension funds

apparently

Personal

billion;

our

additional support to

equity investment stands at $250 million annually; and
mon stock

is

Members: Midwest and

supply of stocks

.;.ri
The

;

by

on

purchases by life insurance

the strong upswing.

common

The business of Ames,

1953 com¬

companies, at $126 million,

The mutual funds,

acquisitions during the first half, are

fillip to the

having been acquired, will be continued and hereafter con¬

with $641 million of

ducted under the

another comparatively new
'

assumptions

/■; t

about the boosting

of market prices auto¬

supply-and-demand factors
reservations—at least over the
short-term.
Drastically to a much greater-extent than, is true of
the economy in general, correlation of price with quantitative
be

ensue

accepted




dually from these

with

•

of this firm

Blair

Co.

INCORPORATED

! 5
t
.

must

name

'

Invalid in Market
.

matically to

Emerich 85 Co., Inc., Chicago, Illinois,

stock.

Usual Interaction

But

'I

Trading Markets in equity and senior securities

the decision

.

r *

■

.

S

4

.

August 17, 1954

strong

..

..

*,

>

4- *•*

*

Jk-

l

•

-Jr.

»

§

..

t-.'

r

f

.

.t

.

<
6

We

How Good Are Our

might not

read

Communications?
By J. EDWARD

recently,
to

point that under our system of
free, competitive enterprise a job
two-way -aspects.
It
sugthat
while
management

gested

continuing to build good will

was

jobs, higher incomes and rising standards of living,
prominent rubber manufacturing executive discusses what can

among its

be done to aid communications with

their

more

them the

upon

considers

source

problem

of

improving

with

communications

'

expansion.. Refers to plant close-downs because of high

manufacturing costs,
stand

this

and

business

communications

convince)

to

should

communities

says

problem.

fringe and other benefits —
such as greater penalties for un-

under¬

warranted

abroad

economic

our

doing

system is the best.

talk

get together

about

points that

sion

be

that

Much has been said and written

employees,

provides

benefits

and

greater

in

of

the

business, its

portance,

does

ness

J.

enough

Trainer

E.

realize

responsibilities

its

to

That is the sub¬

said.

products

people

it

one

no

of

best

knows what

why,

or

hings
~ost

hat

credit

this

we

are

trying

problem

busy doing

so

ask

to

ake clear in

our

the

ourselves

uestion: "How good
unications?"
And

ost

the

for

or are

know

need

hat

doing

are

neglect the telling.

we

We

if

plans for the future.

us

xists, but

But

find that others

taking

our

of

we

have ddne

we

block

0

soon

we

either

re

abilities.

our

are our com-

to

minds just

own

information

need

we

needs

telling

urgently.

At the root of

need for bet-

our

communications

perhaps

munications
oeen

tem

of

free

the

is

because
other

stronger than
of

fact

the

com¬

forces

ours,

enterprise

have

our

is

ened, and along with it,

sys¬

threat¬

In

the

struggle

going

be¬

on

communistic ways of life in many
)f the remaining free nations of
.he world, you would think that
he example of our economic
cess

would

easily

our

these

too

this

is

obvious
that

points

that

these

not
that

we

not

neces-

abroad.

or

because

many

the

have

we

of

us

I

I

Hourly

order

to

an

hourly basis this
hour

an

over

plant

to

$1,000

of

more

jobs,

afford

such

com-

communications

the
we

problems

might try

clarify them and then lay out
simple, easily understood

few

'An address by Mr. Trainer before
the
Cotary Club, Akron, Ohio, July 27, 1954.




employee

benefits

in

year

addition

to

regular wages.
But

do not

we

employees

seem

with

to

impress

these

facts.

I believe that if
you went out and

asked

the

benefits

average

were von

he would say that
50 cents a day.

We

be

can

have

done

effort

they

were

about

what

of

should

we

make

show

the

source

of

the

money

which

provides this security.
do

this

principle

there

that

home

one

be

should

with

basic

ham¬

every

possible

That is that business must

be successful. Business must make
a

profit

must

to

make

stay
a

in business.
profit to fulfill

It
its

responsibilities of providing jobs,
payrolls and extra benefits. When
there is no
profit, there can be
business.

business,
ployees.
Yet

how

th^t.
make

It

is

many

How

pleased

When

there

to

can

as

see

simple

is

no

no

em¬

as

that.

employees realize

many

profits?

there
be

are

their

genuinely
companies

.7

.

could

have

been

communications
had

been

not

that

the

perhaps
if

the

industries
Perhaps it was

communications of
faulty in them¬

were

selves, but that the communica¬
tions of forces adverse to

business
stronger. Whatever the rea¬
it is clear that to avoid such
situations, we must work hard to
were

son,

the

public,

who

business
If

including

.

work

in

our

the

busi¬

realize the need for

nesses,

a

good

climate.
could

we

gain public under¬
standing of our problems in a
business way, the problems of
the

community

as

whole would be¬

a

much easier.

For

excessively

of

they

lack of

a

avoided
the

of

better.

business

by

which

example,

if

everyone

un¬

°Jer *ar&e comPames
the same area moved

>av^y*.L.
The Firestone Company had
,

_

,

easier.

For

had

we

a

such

example,

if

understanding

citizens, the

among our

,

,

another

adequate

cooperative

success of

enterprises

as

1 s^m^ar .fxp^ie?Cj *nAT an°Jker our annual United Fund cam¬
employer community. We had in New Bed- paigns would be assured. Every¬
grievance'
Massachusetts, one of the one knows that business is de¬
minimum finest .textile mills in all New pended upon for a very large por¬

wonders

also

work-production
the

law

what

charged

or

employee with being

an

Another

put

stress

more

rewards.

"man

does

alone."
•

j

the nonmate-

on

We

recognize

not

,.

,

£

live

by

,•

r

that

bread

1

spiritual satisfactions. I

st

u

r

y

budget, but also'
tend to its relationships with
peopie Management will find that i,
get

employees
for

work

more

if

them

makes

they

are more a

tion

of

the

how

to

tomer

the

needs

help

can

they become

more

iake

/

doing.

are

*it

,

have

plant.

Before

,

fl

When

at¬

more

of

the

cus¬

what they
•

.

have

we

ployees,

we
or

adequate
within

With

the Public "

r

done

communications

our

with

job
em-'

our

should then consider
not

job

the

we

of

are

doing

our

that, howemployees
idea

^ouM ^happen

choice b

t

to

that

Because

^ecZomics?nvoWed ^
of

part

the

close the

o

had

no

lant and

to

machinery

success

of

one

later

was

plants

our

in

South America.
the

shipped the
and

papers

machinery

we

of the

companies in a community determines the security of the encommunity and each person

stories

news

the

public

unbelievable.

were

much

was

in the

discussion

There

was

rejoicing about the fact that

the machinery was shipped out in

mention

portant

fact

made

was

that

of

the

im-

the

equipment

was

being shipped out

equipment

*n

know

industry
of

has

Akron.

what

what

remembered is the

place.

to

meant

But

rubber

the

City

should

reason

here

grew

the

in

be

why the
the

first

Business does not locate

stay in
Such

or

community by accident.

a

decisions

much study and

scientific,

reached

are

by

consideration—by

sound

planning.
In
making such decisions, a company
first

markets

determine

will

be

distribution facilities
determine
a

that

what

and

what

the

It must

are.

there

its

is available

sufficiently large force of good,

competent
termine
carried
All

workers.

that
on

these

It

at

can

grow

be

in

things

add

climate

be

the

favorable
business

established, develop
community.

and

a

Chambers

new

communities.
new

de-

costs.

to

up
a

before

of

Commerce

much time and effort in

attract

can

reasonable

fact that there must be

business

must

production

Problems

of

businesses

trying to
to

their

They convince these

businesses

that

favorable

contributions

And

to

business

its

such

gladly

responsibility in a free society
help make
community life

to

better.

If everyone in the com¬
munity understood this, all people
outside business would be glad to
give
their
proportionate
share,

taking up their portion of com¬
munity responsibility.
Along
this
line,
the
Public
Opinion Index for Industry, or¬
ganized in 1943 as a market re¬
search operation to aid the

telling
story on industry's leader¬
ship, has given an eouation to
simplify the problem. This equa¬
of

the

tion

is:

public

"X

equation
is

the

Both

plus

Y

attitudes."
is

the

equals

The

deed

Manufacturing

this month I have

several

companies

read

closing

of

down

operations jn various cities be°t

eause

Lehigh Coal & Navigation CornPany similarly shocked .nine com^unities jn the Panther Valley of
Pennsylvania by announcing its
decision to close all anthracite
mines permanently. In Milwaukee> the Phoenix Hosiery CornPany announced plans to stop
knitting women's hosiery, in a
local mill, knocking out 250 jobs,
*n Newark, New Jersey, the
Ronson Corporation closed a
cigarette lighter plant, idling 550
employees. In St. Louis, the Un on
Biscuit Company closed a cracker

and cookie plan,, transferrin
duclion elsewhere
400 jobless.
These

and

needed

are

equation.

We

equation

and

acqprding

to

Y

to

complete the

must

not

cculd

be

only do
must

we

Y.

This

very

a

good

Problem of Keeping Our
Freedom

The

third, and last, problem of
communications is more compli¬
cated

and

thus

difficult

more

solve than the others.

problem

of

helping

to

That is our

to

keep

our

economic freedom and other free¬

doms

in

the

face

of

great pres¬

sures

from the proponents

ways

of life.

ion

that

if

nomic

we

able

are

also

be

of

reach

the

our

able

other freedoms

rest

opin¬

to

con¬

free eco¬

is the best system,

system

will

we
our

of other

It is my firm

vince the world that

world

similar

to

preserve

help the
ultimately to
and

freedoms.

We must

recognize that our free
enterprise system is more than a
system.

Tt

is

life—a

of

wav

a

life that has its rules and
conditions.

way of

•

While it is

man-made system,

a

it is in accord with the basic

ities of human

doms that
No

life

and

make

life

system

other

has

real¬

the free¬

worthwhile.

attri¬

these

butes.
Our

difficulty is npt in our lack

of belief

Very

situations,

the

the

guide to us in gaining good com¬
munity attitudes toward business.

pro-

leaving

good

in

X

interpretation of tse deed.

Economic

High

Costs
Just

and

few

faith

of

States want

us

to

in

our

system.

the

United

in

change it and the

"Business Week," indicate widespread economic trouble, the management problem of operating

with

profitably in

system to others who have never

live

spend

the

weak, but also because it realizes

New Bedford.

inability to meet the
Problem of high manufacturing
in
that community should
give costsAccording to "Business
enthusiastic support to those busi- Week" the carpet mill of Alexnesses
just as the business sup- ander Smith, Incorporated, in
ports the co-operative enterprises Yonkers> New York, prepared to
of the
community.
> "• /
close down, wiping out 2 400 jobs.
all

of

campaigns.

that had provided jobs for people

tire

You

tion

an oceangoing vessel, reviving in-, good deeds, or X, but
terest in the city as a seaport. But interpret those deeds,

communications

The

doing

our

situation and thev actu_

an

community where

live and work.

we

down

the

no

of

the

We thought

close

to

talked to

we

When

more

Communications

v

ourselves

would

-

Improving

in

duce 11 ourselves- we ™ougnx we

work

and

in

where

point

fabric

our

they

all
concerned,
interested and

pride

greater

opera¬

quality

operations and

tention

feel

When

costs

its

the

buy

market at prices lower than
price at which we could pro-

the

shipped

part of the

lower

efficient

by

wages

/concern

them

business.

understand

manship,

shows

it

and

done

in

open

ever,

,

d

n

reached

could

balance its

must

can

finally

is to

do

can

People look not only for
satisfactions, but also for

material
•

we

unwarranted

increases

for

an(! continual reduction in the gives, not only because it believes
workloads of employees, our costs that the strong should help the
we

thing

Through

England.
demands

eco

nomic royalist
because the employee kept asking for more without giving more in return.

must

is

com-

*

article

industry

we

to

his

would find th»t

proud

and

what

man

employees
what is being done for them. We
should
also
impress upon them

no

solve

a

generous-things the

does.

whether

average approximately $20 a week
for each
employee. This amounts

means.

record

no
longer
olacency.

On

Firestone Company alone
spends $33 million a year to pro¬
vide these extra benefits for
plant
employees in the United States.

our

success.

-an

,0

1951.

amounts to 35.6 cents
and above regular

mered

ligher incomes and rising stand¬
ards of living speak for itself.
We

In

in

am

We have been content to let the

f

annual average cost is
$739 for each employee, an in¬
crease of $95 since the last
report

To

have

smugly satisfied with

economic

add¬

are

The

ness.

more

selling job that is

convinced

own

swing

either at home

make

>een

is

conclude

tone the
'ary

it

and

as

ing nearly $25 billion a year to the
employers' cost of doing busi¬

suc¬

side.

Unfortunately,
case,
nust

such

shows that these benefits

our

the free enterprise and the

jeople to

things

pensions,
insurance, hospitalization and paid
vacations.
In its latest report for
1953, the Chamber of Commerce

other

our

freedoms.

tween

for

ers

The

Threatened

hat,

payments that go to work¬

pay.

Our Free Enterprise System

er

fringe benefits in industry—those
extra

-

caused

,

understanding,

•

rial

far

For example, it provides
and greater security, but

ject of communications with the greater
people from whom business needs somehow fails in telling employ¬
support—the employees and the ees just where the added benefits
public.
come from and how i.t is
possible
We are not just business and to
provide them.
professional men. We are human
Fringe Benefits
beings and we realize oilr re¬
sponsibilities to our employees, our
The Chamber of Commerce of
community and the nation, and the United States makes a study
we
meet these responsibilities to
every two years of the cost of
he

the

The

tremendous

the

But management does not go

enough.

of

pany

committee and sought a

employs.

has been done,

great value of their company's sons ^w?
products and speaking about some i located m

pro¬

being done quite well since busi¬

about which

was

where

;high taxation and a lack of un- derstood and backed community
the
children
praise of its employees the em- derstandmg about what a com - industries,
would
gain
ployees
should
understanding from
voluntarily
im- Pany needed to stay m business,
their
prove the security of their own
B & W went where it was ap- parents and economic education
jobs by telling friends about the preciated. And lor the same rea- in our schools would be much

would
happen' if the
organized himself into a

and services and future prospects.
All this should be dene and is

is of vital im-

worked

come

PanY.
mc£e out
Jersey,
because

•

a

involving the people

companies

And in return for management's

to

addition

vides information about the prog¬
ress

0 n e

or

"employee rela¬
which
manage¬
good will among its

through
builds

greater

subject which

written

called

so

higher and higher wages and

endless.

not

we

consider

us

segments of their indus ry.

/aS°& saw the C0^Pa^ *
with, the Babcock & Wilcox

business
Company

the

and

people

the
and

on

unhealthy atmosphere in
these'

communities

_

our

ment

would

is

our

how

tions,"

so

However,
there

help tell

aid communications with

about

recjta 1 of

them

to

use

employees.
,>

discus-

numerous

First,, let

;

can

sub¬

are

can

story, as businessmen to
employees and the public.

jects for business.

we

our

The

possible

of Company
other business

no,

the

Thursday, August 19, 1954

.

make

p

tar-

and

tj;me

When businessmen

it is natural that their
major topic
of conversation is
business, so I
assume that you invited me here

business.

absenteeism

diness,! shorter k breaks,' and

.

.

,

with

tw°
of
which did not meet the
fje
industry and thus lost nnportant

for

Urges improving world-wide
peoples

do their expanding w.h
J; £
think it can best be don .
try will .continue to expand
di¬
mg the years ahead and tne field
is wide open for the areas fou
best for the purposes of e pa
.
'We in Akron must be sure that
°ur community is in a g
d p
"tion to provide a good c 1

turn for what management has already given employees, the article V""? expansion
proposed thai employees consider |
I can speak
some
requests from management
oi

the

aid to busi-

an

as

employees, the employ-

might also seek to improve
employer relations.
In re-

ees

employees, and impress
which provides their security. Also

community in which plants arfc located
ne&s

a

em-

the

had

to

our

The article I read made

ployers.

TRAINER*

complacency with the economic record of

cur

might
people

they

to

up

conditions do exist.
They
should do everything
aid and promote the existing businesses in their communi les.■
In our nation s economy,
~
tries must keep growing, and must

the

as

publication I

but

point

far

as

a

their responsibilities to their

Executive Vice-President, The Firestone Tire & Rubber Company

Condemning

go

ideas contained in

serve

-

Financial Chronicle

The Commercial and

(682)

Cases
such
that

they

a

high-cost, competi-

market.

it

is

to

these
so

represented

many

people

important to study why

occurred.

be sound

in

our

our

known

like
loss

a

majority

I

think

reasoning to

it

would

assume

that

new

of

us

lives.

ability
such

would

defend it
lies

The difficulty

interpret

to

freedoms

generation in

our

and
own

this

to the
coun¬

try.
Much has been said and written

about

the

what it

is

free
and

enterprise system,
it works.
In

how

1

Number 5352

.

....

The Commercial and
Financial Chronicle

(683)
literature

the

the

on

subject

encounter such words

/'private

as

you

It surprises

"capital,"
"savings,"1

property,"

"competition"
and
others.
In my opinion you have
to go further than words.
You
get

back

rules that really make
enterprise system work.

to

the

ii

free

our

the principles of
free enterprise system can be
stated in four simple rules.

After

They

are:

(1) There must be
with

ence

interfer¬
limitation on the

nor

legitimate

free

no

choices

of

is

sanctity

of

judgment

property must be preserved.
(3) Free and impartial compe¬

the

just

would

I

about

to

as

ideas

to

how

on

give

you

three

have

we

dis¬

com¬

munications, the three publics
must

be

concerned

proving

with

in

relations—our

our

we

im¬
em¬

ployees, the community and the
general public.
We have men¬
tioned just a few of the
things
which
cate

important to communi¬

are

to

these publics.

The final question is:
to

do

we

,

cations of

our

own

of business in
It

What

businesses and

this

what

the

most

answer

lies with

and

us

know about the free en¬

terprise system.

We should there¬

fore know everything there is to
be known.
And in possession of
these facts, we should broadcast
we

currently doing or plan to do.
Our employees are perhaps the
most important factors at the end
lines

our

of

communi ation.

with

Flanders

produced

of

some

Flanders

admitted

that

his

list

was?

thinkers, which during the Senate

an

bf

hearings.
back

The Army after t

reported it is convinced

now

was

no

to

caution when

a

The Army's attorney,

from

the

the

document

the

matter

came

the Pickwickian

to touch

set

up

offices

across

persons."

have heard most and considered to be the
most

important in the great battle against
McCarthyism and its alleged

document

would

the Attorney General

McCarthy

by the National
organization of liberal

the

didn't

realize

refusing this authorization,

the

significance of the
ehemies were
making as they kept emphasizing his
possession, illegally, of secret,- classified information,

story

and

and the
general
this medium.

speak

at

ing out that in the event the Democrats captured control of
the-;
Senate next November, McClellan would be Chairman
of? the
Committee, he urged him to join in assuring Government em- 5
ployees that they would be protected in giving Congressional *
Committees

information

peated that he would
the law.

on

never

>

evil-doing.
ask

McClellan

solemnly

in

McCarthy is just a wild
action, if he is,

speech and
heaven knows

we

and

woolly Senator, intemperate
indeed, just a demagogue, well
have had the type before.
You may not like

it, but if it is what the people of Wisconsin want
they are en¬
titled to have it. There is
certainly nothing new about the type

that would

the

cause

emotions

I have considered that it

persons"

that

extent

have
down

tried
his

was

that

to

I

was

the

charge he "smeared innocent

have

given study to the matter, this is what I

about.

I

critics to give one
or

have

sought

have

as

single satisfactory

others

name

of

to

a

pin

person

abused.

McCarthy

out-witted

was

in this play for the grandstand. *
nothing of "aid to the enemy" in the
had; it was an example of the Army's ;

information

McCarthy

dragging its feet
got

it,

the

best

the

FBI,

passes

to

It is

often

loyalty

a

in

McCarthy

this

absurd.

oaths

to

as

where

circles

is

This

announcement

is under

any

no

circumstances to he construed

of these securities.

by the

to

and

Only

appeal

turn

the

lack

over

most

action

of

members

proper

to

him

should take

us

offer

sell

to

higher

active

an

or as a

solicitation of

an

offer

.

I

1,()()(),()()() Shares
♦—
.

Capital Fund of Canada, Ltd.

part in the co-operative activities
of the community, as mf»rv of us
do.

We

port
and

should

of

active

be

in

educational

our

sup¬

Common Shares

efforts,

should

co-operate whole¬

heartedly with

the schools in their

requests

information.

we

should

for
to

see

teaching jobs
that

we

teachers.

it

that

we

(par value $1

share)

i

make
so

the

right kind of
We should not only pay

our

teachers good salaries, but we
should improve their status in the

Price $25 per
♦Prices for

community.
■.

per

We

attractive enough

obtain

We should be extremely selec¬

down

for

Share*

single transactions of less than 1,000 shares/Prices
single

transactions

involving

greater

numbers

are

of

scaled

shares.

tive in our choice of candidates
for public
office, and our opinions
of government
problems ought to
be made known to our
represent¬

atives in Columbus and in Wash¬

ington.

Copies of the Prospectus

These

the

are

ments in

our

tions.

we

If

important

line of

ele¬

the

communica¬

may

be obtained in

undersigned,

responsibilities, the forces oppos¬
ing free enterprise will win the
fight through our defauH.
If, on

are

we

necessary

Carl M.

to com¬
Ours is

bat it, we will
triumph.
the best system.
For the nation's
good and the welfare of the Amer¬

ican

people,
Quite clear. *

any

State only from such of the several Underwriters, including

lawfully offer the securities in such State.

\

clearly realize
danger and take the

steps which

as may

do not carry out our

the other
hand,
the present

our



I

to

1

New York

responsibility is

i

Loeb, Rhoades

j

& Co.

reports,

I

•

As T
to

.

information, r'
officials

buy

August 16, 1954

-'

j

came

employees

The offering is made only by the Prospectus.

should

system,

it

Congress.

security

and

its

on

of

Government

to

trusted

to

what it is, how it works, and the
benefits it brings to everyone.

AJ1 of

as an

McCarthyv

that

fairly well known in official Washington that,

frustrated

intending

their

And

case.

well-informed

the information to the

violate
is

on

guess

supposed to receive such information in the first place.

,

opportunity to talk
enterprise

;
*

.

In the first place there was

from the FBI.

McCarthy has aroused.

responsible for the fire he has lighted, and to

learn

unjustly accused

which

feel not only the
obligation to do
so, but we should look upon the
occasion as an
about the free

re-

Government employees to violate

through

we-

*

inj

said he was always receiving information from'
employees on evil-doing in Government and he f
employees to continue to cooperate with him. Point- *

the

NEW ISSUE

gathering

being

attendant evils.

community

invited

are

m

his

McCarthy

get

public

we

a

do

to

power

to the

over

Whenever

shouM

we

our

case

Government
urged

Our relations with the press are

in

|

put them in violation

Through personal contact if pos¬
sible, and if not, through our pub¬
and bulletins, we
should tell our story to them.

our

Welch, 1

They wouldn't dare look at it unless authorized by t
Attorney General to do so and in due time there came a«.

lications, letters

important,
everything

during

up

Mr.

if

as

law.

Bargeron

-

I

Army intelligence officer.

young

information

message from

Carlisle

Office Building and bombarded mem¬
Congress with demands that McCarthy must
go.
What interests me
more, however, is that in
all those 46
charges there is not one that he has "smeared innocent
one

a

jWell sir, it

the

bers of

This is the

the

horror, that

the street from the Senate

-

was

it were a rattlesnake; his '
did likewise, and the Democratic
Senators, McClellan,
Symington- and Jackson, < followed suit, all repeating in holy

46;

debate

received

associate

prepared

Congress,

by play of the Army-McCarthy hearings.
a
secret, classified document when he

he

investigation has

drew

our

Effective

an

that

The

the

specific
Senators

result,

coals—to

"smeared

has

document in question was a FBI report
giving derogatory
loyalty information on an Army employee at Fort Monmouth.
Someone, fed up with no action being taken against the em^
ployee, turned an abridged version of it over to McCarthy. He

V

demanded

was

up

a

the

over

charge that he

a

Army officer ;
McCarthy and has so informed the
Department of Justice for any action it may want to take—
;
possible perjury prosecution against McCarthy.

well-known gossip
columnists, which
certainly be in the nature of an
accomplishment rather
something for
which
the
Senate
should
censure
him.

Committee for

the

them in connection with what
are

of

than

If

that

me

question

we

"smeared"
would

general?

to

seems

important element in the
to

can

improve the communi¬

As

down, so to speak-^

are

raked

unauthorized to do so and that further he called upon
Government employees, under the
eyes
of the Arperican TV
to violate their security oaths and turn over secret
documents to him.
•'

gave

Senator

on

be

audience,

an

They make amazing reading as to the
hysterical opposition
which
McCarthy, has
aroused.
They include a charge that he has
,

have in

Senate

come

Fulbright and
Flanders 33 of them.

major problems

businessmen

as

we

the

resolution, it

Morse,

tell

permit it.

the

censure

is

claims it

made

his
tormentors
formalized
charges.

you

can

Apparently there

seemingly every charge that has

•that

detail

story but time

To? recapitulate:

cussed

in

This

six Senators, three Re¬
Democrats, are to sit in

of the recent debate in

efficient

talk

points

the free enterprise
does not

the

Flanders'

like

these

some

of

chips

to

was

against
the
Wisconsin
Senator, every possible grievance that could
:be held against him
anywhere in the country
or,
for that matter, abroad.
In
the course

successful.

reward

on

been

;ever

tition

and

of the News

end.

an

Committee of
publicans and three

private

must be maintained.
(4) Profits must be regarded

to be

A

indi¬

viduals.

(2) The

never

hearings.

the

Instead, it is rather an open secret in Washington political
circles- that his enemies
hope to get him on one of the 46 charges
that came up as a

the

Army-McCarthy

when

now

—one

adjournment of Congress,
possibly at week's end,
we
are
to have, after a brief
spell in which the participating
Senators will try to
get their breath, another
McCarthy show,
which although without
TV, should be as drama packed as the

our

me

McCarthy's public life is
a
single suggestion of

not

innocent persons."

By CARLISLE BARGERON

believe that

I

find

Washington

Ahead

have to reduce words to their real

and

when

From

"freedom,"

meanings

1

.

Volume 180

are
•

•

v *'

8

(684)

4

The Commercial and Financial Chronicle

Merck

&*Co., Inc.—Analysis—H.
Street, New York 4, N. Y.

Dealer-Broker Investment

Metal

J.

understood

that

the

firms

send interested parties

to

mentioned

will

be

the following literature:

Trade

West

Coast

Life

Insurance

&

115

Co.,

Bissell

Broad

have

&

to

Street, New York 5, N. Y.

Today's Market—Bulletin—Sutro Bros.
Co., 120 Broadway, New York 5, N. Y.

&

Sound

FF-84,

Celotex. Corporation,

Street, Chicago 3, 111.
"Thinkubator of
The Art

Toll

'

•

120

Souths La

•

.

:

Describing

Ideas"—Descriptive literature

;

of

Pikes—Memorandum—A.
Street, Chicago 3, 111.

C.

Sale

*

more

disturbed

am -•

trend

in

Despite

by

and

economic

aid,

we

ing much

Our foreign
relief

Mercury Insurance Company —
Special report
Peter P. McDermott &
Co., 44 Wall Street, New York

—

5, N. Y.

Argus Corp., Ltd.—Discussion in
current issue of
"Gleanings"
—Francis I. du Pont &
Co., 1 Wall Street New York 5, N. Y.
Also in the same issue is
a
list of 40 companies
which are
candidates for Stock Dividends or
Splits.

Foods—Circular—Thomson

Boeing

&

5, N. Y.

Airplane

McKinnon, 11 Wall Street,

Co.—Bulletin—Cohu

New York 5. N. Y.

&

Co.,

1

Wall

including
t h e
great Marshall
programs,

Plan

Productions

Insulated

Corp.—Memorandum—John

Co.

Ill

R

Boland

De

Beers

25

Company and

S. Morgan Smith

Consolidated
Mines—Memorandum—Hirsch
Street, New York 4, N. Y.

&

Broad

Co

Douglas Aircraft Company, Inc.
and the Aircraft
Manufactur¬
ing Industry—Detailed

analytical study—Kuhn, Loeb
5, N. Y.

52 Wliliam Street, New
York

&

Heintz,

West

We make
•

Public

in

Europe

and

they

Asia.

and

But

they

served
also to antagonize some
people abroad and to create mis¬

Rice and

Company

so

much

security it¬

balance

more

get
ma¬

and

de¬

friendly allies.

Depart¬
reorganized and op¬
carefully as the Army,
Air Force Departments.
become

can

a
recognized
by making a
monetary contribution to a polit¬
ical party.
Some day, I forecast,
the State Department will cease
being used to pay off political

Meanwhile, the
has provided

or

to

admiral

large party contributors,

to

help support lame-duck
politicians.
:

or

Department

utors

to

political

party

"war

chests."

trust.

much

money

on

time,

effort,
and
big
promotional
that almost
fizzled.

official

failed

we

personnel

salesmen, if you will—did not
exactly
what they were
selling and did not trouble to
the

real

needs

foreign countries which
"customers."

diplomacy,

That
or

good business.

mighty
such

for the

its

in the State Department,
particularly in the conduct of

overseas

recent

hard

following

afford

been

of

very

years.

They

sledding,

with

crisis.

They

upon

Next year,

could provide for

recruiting Foreign Service personnel by estab-

lishing

scholarship

grams

somewhat

like

which has worked

Navy's
Corps.

Reserve

An alternate

the

training

Training
would be

Foreign Service

a

Academy to train

one

well for the

so

measure

founding of

pro-

the

Officer

men

and

Its standards would be

success

in

or

had great
their respective fields.

are

morale

and

and

this

tensions

tions

strength
at

are

among

uncommon.

doin§

a

a

rep-

in

time

very

tional

Association

Manufacturers.

better job

Street, Boston 10, Mass. (cloth).
Fringe Benefits 1953
Research

Economic

—

Department, Chamber

Commerce

of

States,

of

United

the

Washington

paper—$1

6,

D.

(quantity

C.—

prices on

request).
Guide

to

the

New

—Research

1954 Tax

Law

Amer¬

of

Institute

17, N. Y.

Money

Credit:

&

premises of the
and

of

the

New

(paper).

for

its

Fallacious

The

Gold

Credit

Standard

Expedients

Management—Vol.

Marinos

E.

"Hestia."

13

1—

Constantacatos—

Hippocratous

St.,

Athens, Greece.

world

are

too

incentives

for

men

are

offered to

the
as

Federal

Promo-

Men have served in the
for

Cotton

of

80

years—

when"

high.

these
Few

five

them.
Service

Fibre

Textile Association and Na¬

ern

per-

now

interests abroad. I am
told that the Foreign Service Officer Corps is at the lowest nuour

merical

England

waiting for Con¬

gress to decide how best to recruit

the

New

Man-Made

Textile Industry Today—North¬

York

and train Foreign Service
officers,
something should be done about

improving

the

and

ica. Inc., 589 Fifth Avenue,

Incentives Are Lacking
we

About

Cotton

com¬

Money will not secure promotion
in either of these institutions.

While

Facts

women

especially for overseas service in
the diplomatic field.
This
new
academy would be supervised
carefully by the government it¬

resent

I do not blame them
fact that it has backfired
in

operations.

Congress should give careful study
to
effecting
It
improvements.

formance of those who

has

number

a

and

good

"sales performance."

by

had

crisis

cannot

policy

*■

efficiency

more

their

not

men.

often

have

we

foreign

capable

the

good politics,
or
Although we are a

nation,

poor

Our

of

were

was

need

•

,'V

ability
and

because
abroad—

our

ascertain

Foreign

Annapolis, which have

a

campaign
Why? I think
I

We

Efficient

Service Needed

.

parable to those of West Point

In other words, our government

our

More
•

self.

long

as

Foreign

20

art coop
'a

years

coeufdele
oUdeUMCs"

in

285

Jtomura Securities

Utility
•

DEPENDABLE MMKETS

Co., £td..

Natural

Gas and
•

your

F.

Chicago 4, 111.

dependable markets

home

at

aided countless millions of people

so

Inc.—Analysis—Daniel

Jackson Boulevard,

here

directed

Machinery & Chemical
Corporation—Analysis—Sutro &
Co., 407 Montgomery Street. San Francisco
4, Calif.
141

Point

They stimulated economic

activity

& Co

Food

Jack

with

_

1

know

Investing Cor¬
poration 40 Exchange Place, New
York 5, N. Y.
Also avail¬
able are
Hoe &

ideas.

Street

Wire—Analysis—Standard

analyses of R.
Company.

,

Four,
did so much to put Western Eu¬
rope back on its feet, were good

spent
&

Co., 30 Broad Street, New York
4, N. Y.

Collyer

which,

together

Roger W. Babson

ouctri,

Chesapeake Industries,
Inc.—Analysis—Baruch Brothers & Co
Inc., 44 Wall Street, New York
5, N. Y.
&

re-

Poor Sales Work

Chattanooga Gas Company—Analysis—Ira
Haupt
Broadway. New York 6, N. Y.

Cinerama

and

habilitation

on

American

raw

good berths for generous eontrib-

suc¬

ideals to other

'

Mo.

they could.

State

and

American

•

1,

or

one

general

improvised, and perhaps did the

selling

other people.

Investment Company of
Illinois—Semi-annual rePort—American Investment
Company of Illinois, 1112 Am¬
bassador Building, St. Louis

York

in

cess

American

New

have

America

V

•

No

men.

best

the

pre¬

not been havr

Gardner Denver
Company, Mount Vernon-Woodberry Mills, Inc., Robertshaw Fulton Controls
Co.
and Detroit Steel
Corp.

Best

recent

foreign- relations,
expenditure of bil-

the

Gas Equipment
Inc.—Bulletin—Gartley & Associ¬
ates, Inc., 68 William Street, New York
5, N. Y.
Also avail¬

bulletins

the

lions of dollars abroad in
military

Affiliated

are

efficient

our

Allyn & Co., 122 South La

*

Navy,

debts
I

as

w

"poor sales performance,'

as

to

and

I forecast that the State

incentives for foreign service personnel to attract

proposes

services—

.

able

foreign policy

our

We must

are

stand

we

in

way
work

ment will be

Babson says we need a more efficient foreign service.
Advocates something be done to improve the morale and
per¬
formance of those who represent our interests abroad, and

,

Coop, Dept. G, 52 Wall Street, New York
5, N. Y.

Policy

Mr.

Salle

•

.

we

freedom

own

a

to

men

Our national

lies

erated

Conditioning Survey Chart—Analyzing noise
problems

—Dept.

if

way

our

pends upon

By ROGER W. BABSON

©ver-the-Counter Index—Folder
showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35
over-the-counter industrial stock*
used in the National
Quotation Bureau Averages, both as to
yield and market performance over a
13-year period —
National Quotation
Bureau, Inc., 48 Front Street, New
York 4, N. Y.

Reasonable Values in

best

share of the world's

our

policy.
beyond

There must be
our

that

serve

foreign

interests abroad.

our

find

Corporation—Analysis—Newburger, Loeb & Co.,

Our Foreign

dynamic

lie well

self

Offerings—In current issue of "Weekly
Stock Bulletin"—The Nikko Securities
Co., Ltd., 4,' 1-chome,
Marunouchi, Chiyoda-ku, Tokyo, Japan.
Oil Industry in
Canada—Analysis—Calvin Bullock, 1 Wall
Street, New York 5, N. Y.

a

We should also

in need.

Share

19, Pa.

attract

for

now

terials, of which

New York.

Pittsburgh Bank Stocks—Comparative
analysis—Moore, Leon¬
ard &
Lynch, Union Trust Building, Pittsburgh

shores.

our

Do It"—2nd
printing of "Highlights" on automa¬
tion—'Troster, Singer & Co., 75 Trinity Place, New York
6,

Japanese

a

Our frontiers

"Let Robot

New

Reality

developed

challenges.
dynamic

many

Co.—Bulletin—Laird,

Face

have

domestic economy which has
met

;

15

of

they to obtain really
knowledge of the needs
shape our national

Let's
We

Central Railroad Company 1st Mortgage 4% Bonds
2004, income 4M>s of 2029, and common stock—Analysis
.giving status—S. Weinberg & Co., 60 Wall Street, New York
5, N. Y. ' '
v

'

ex¬

way

policy?
Williston

R.

of

Worthington

policy.

effective

should

which

Wisconsin

"Monthly
Chome, Ni61 Broadway,

con¬

are

first-hand

Meeds, 120 Broadway, New York 5, N. Y.

Securities Co., Ltd., 1-1

poor

of the American

How else

Lerner & Co., 10 Post Office

Trust—Circular—J.

&

is

the

a

they are given frequent
opportunities to come back home.

Broadway, New York 6, N. Y.

Co., Ltd., Ill Broadway, New York 7, N. Y.
Japanese Plastics Industry—Analysis in June issue of

New York 6, N. Y.

—

Such

cannot be

than

in

life unless

Upson Company—Analysis—Aetna Securities Corporation, 111

rities

Japan and

Bank

—

men

Broadway, New York 6, N. Y.

Investment Opportunities In
Japan—Circular—Yamaichi Secu¬

Tokyo,

Cement

Analysis
Square, Boston 9, Mass.

Company, Ltd., 132 St. James Street, West, Montreal,
Que., Canada.

Chuo-ku,

Co.,

&

States itself.
exile

more

service

of

ponents

& Meeds,

Inc.—Circular—Laird, Bissell
120 Broadway, New York 5, N. Y.

Riverside

&

honbashi-Tori.

Morgan

that

of

These

AJS0

Quebec Metallurgical Industries Ltd.

on

having passed

years

dition

Conklin Or¬

& Gas Company—Bulletin—The Hughes Organi¬
zation, 326 Sutter Street, San Francisco 8, Calif.

Stocks—89th consecutive quarterly
comparison of lead¬
ing banks and trust companies of New York—New York
Hanseatic Corporation, 120
Broadway, New York 5, N. Y.
Beneficiaries of Seaway
Construction—Circular—L. S. Jack¬

Stock Digest"—Nomura

two

United

Reserve Oil

pleased

Bank

son

P.

bulletin

a

Thursday, August 19, 1954

•

without

Beaver

60

ganization, 100 Broadway, New York 5, N. Y.

Recommendations & Literature
is

Co.,

&

Incorporated—Bulletin—DeWitt

Hydrides

able is

It

Hentz

•

.

Member

NJLS.D.

Broker end Dealer

Industrial Stocks

orders & inquiries invited

Material and Consultation
on

Troster, Singer
HA

2-

2400

Members:

,Y.

Y.

Security Dealers

& Co.

Trinity Place, New




JTjJLLJI

without obligation

Association.

yy
74

"TiMatatu of ide*"

Japanese Stocks and Bonds

York 6, N. Y.

j

376

61

Broadway, New York 6, N. Y.
BOwiimg Green 9-0187

Tel.:

Head

Office

Tokyo

DEMPSEY-TEGELER & CO

ASK FO« YOU* COTT

TOO**

jg

Number 5352

180

Volume

A Plan for

Fighting Depressions

when

credible

the

against
toned in

Vice-President and General Advertising Manager,

some

match it up profit reports for the first six
pessimism in¬ months of this year.
quarters only a few'
General Motors recorded $883

million,

of delivering persuasive messages to the public, reviews the
much-predicted "Recesssion of 1954," and tells of the results
of a short survey by the Advertising Council of what the big¬

to

organization has
enthusiastic part of this
own

because my

been an

munity

com

and

ments.

of

New

past
man

these

short

in

a

can

few

Reuther

was

a

good

a

years.

many

concerned about the

companies reported that in 1954
possibility of "a depression which
they were banking on America's
would directly affect the welfare
future prosperity to the tune of
future.
of every American."
$4.1 billion, the greatest expendi¬
But the worry started in earn¬
vertising developed a massive and tures in their history!
effective
est around Labor Day.
system
for delivering
Senator
Fourteen of
these
firms
also
Douglas was one of many who
persuasive messages to our cit¬
projected their plans five years
izens
became alarmed and by February
^bout what heeds to be
ahead, through 1958. This group,
was saying that, "the present sit¬
done.
alone, will invest $3.2 billion
uation
This is a potent new force in
is now admitted to be
or an
average of $640 million a
a
recession even by
American society whose impor¬
those who
year
again the greatest capi¬
tance
is hard
to
over-estimate. tal
formerly shied away from that
expenditures in their history.
term
."
Martin Gainsbrugh,
The good it has already accom|
I am not trying to stagger you
chief economist for the National
plished is very great, and the
with figures, but to simply point
Industrial Conference Board, said,
good it can accomplish is untold.
up in dollars and cents language "The
business
downtrend
war¬
that the forward-looking business
The "Future of America"
rants the label of recession and
leaders not only see a bright fu¬
Campaign
i
not rolling adjustment."
ture, but they feel it.
Today I want to illustrate this
British economist, Colin Clark,
Let's see what a few of these
point with a case history. I am
touched off a king-size explosion
foresighted industrialists are go¬
going to concentrate on the story
by predicting a serious depression
of one Advertising Council cam¬ ing to do:
in the United States.
And one of
...

.

.

second,

And,

I

because

am

happy to help
you
celebrate
Advertising

,

Council

Day,

and

pay

trib¬

ute

to

;

what

President
Eisenhower
has called one
of

most

the

.

.

paign—the 1954 campaign called

Continental

The

Can

Company

will spend $25 million a year on
important The Future of America.
If this talk had a title that title expansion and modernization of
private
or¬
ganizations in might
be
"Who
Killed
Cock production facilities for the next
an
organization Robin?" Cock Robin being in this five years.
the
country
Over the next five1 years, the
which has become famous for its case the much-predicted Reces¬
Southern
Pacific
Railway
will
pioneering in the mass communi¬ sion of 1954. But we won't take
Richard E. Deems

.

title

cation of ideas.

this

called the
conscience of advertising. Today,

Cock

The Council has been

the

almost be called
conscience of America.
might

it

Americans
—the voice of the national con¬
to

reminders

helped to

science— have

accom¬

(1) It helped out forest fires by
Despite one of the most

in recent history,
36,117 fewer forest

hazardous years

there

were

fires last year
fore.

As

Eller

Russ

know,
the

is

of

ordinator
the

than the year be¬

you

volunteer

this

force

task

co¬

and
Foote,

campaign;

is

agency

Cone & Belding in this

(2) It

own

your

strengthened

city.
our

coun¬

try's defense against surprise at¬
tack

by recruiting 173,000 volun¬

teer
our

skywatchers

to

supplement

really

even

stone-dead,

if he is dead, no

spend $60 million a year for ex¬

pansion and development, includ¬
ing modernization of its passenger

such

equipment,

revolu¬

the

as

T.

will

T.

&

spend

point, however, is becom¬

000,000

on

If

part

The giant General M^t.orc

in

advertising

an

idea

helped

public confidence, then it

restore

the usual

eco¬

indices, there was nothing
too unusual about these forecasts.

have

soothsayers

economic

The

reading their crystal balls
labeled inventories, car loadings,
been

bank
tions

time

the

deposits and basing predic¬
them for years.
But this
a
new
note had crept into

on

prophecies: there was

a

rec¬

ognition that state of mind
something to do with dips.

had
Re¬

Shakespeare?:—"There's

member

nothing either good or
thinking makes it so."

Eugene Meyer of the
Board said that

Years ago

Reserve

Federal
the

bad but

state of mind of large groups

in itself an important eco¬
nomic fact.
Nobody paid much
Los Angeles businessmen hit attention then. But last February
a new low in pessimism when he
found the present chairman of the
said, "The trend is now toward a Federal Reserve Board, William
very serious readjustment.
That
means trouble.
I expect it to last McChesney Martin, Jr., warning
the Senate-House Economic Com¬
as long as it did in the 30's, about
was

your

six

years."

Soon
ment
was

how

there

mittee
was

so

much argu¬

raging about whether there
was not a
recession, and

the

"Americans can turn

that

mild

present

recession

serious

into

decline

a

simply by wor-

or

serious

it

was

going

to

Continued

be

offer to sell

This advertisement is neither an

on

page

33

nor a

solicitation of offers to buy any of these

offering is made only by the Prospectus.

securities. The

August 19,1954

NEW ISSUE

$30,000,000

Southern California Edison

Company

$30 million.
Armour

has

Co.

and

million

$70

the

for

budgeted
period

3% First

same

helped save the American econ¬ for new plants and equipment.
arjd women omy billions of dollars. Jobs were
Out here on the Coast, the Pa¬
to give millions of pints of their saved that might have been lost.
cific Gas and Electric Company
blood.
And millions of tragic heartaches
is continuing its long-range pro¬
(4) It helped sell $4,368,000,000 didn't happen.
gram to extend and enlarge its
worth of small denomination U. S.
Hence, the
subject is worth facilities for public service and in
Savings
Bonds,
climaxing
the more than casual examination.
1954 and 1955, the company will
greatest mass movement toward
As early as June 27, a New spend $340 million for capital im¬

(3) It persuaded

basis of

the

un-

Now if advertising

radar network.

On
nomic

a

stopping the
helped dertaking a new program calling
for capital expenditures of $1,restore
this
confidence; then a
discovery has been made that is 000,000,000 all in two years.
Since World War II, the East¬
of very great importance indeed.
man Kodak Corppany has carried
Since
depressions
threaten not
on a program to replace, improve,
only America but the whole free
and expand company plants and
world, it is important to our very
equipment and in 1954 alone, they
existence^. Anything which can will spend $52 million with simi¬
help in any way to halt a down¬
lar
amounts
scheduled for the
swing should make everyone con¬
next five years.
nected with advertising, the social
The National Cash Register Co.
sciences or economics stop, look
in the next five years will spend
and listen.
biggest

of

Importance of the State
Mind of Businessmen

The

$1,400,-

huge construction
ing more and more evident; the program to meet the public's tele¬
restoration of confidence played phone wants.
One

.

of unemploy¬
recession."

tionary new Dome car.
A.

of the recession.

slide.

18%.

until

because wd
fall whether

thing was the sole executioner

the

plish during the past year:

know

Robin is

and because
one

of the things its

Here are some

constant

won't

seriously

talk

hearing

ment and another

Walter

year ago,

...

for

one

out

over

'slowdown,'
'dip,'
'readjustment,'
'unem¬

are heard
on every
Only by wearing ear-muffs
walk a block today with¬

side.

months!

A little

United

the

in

ployment'

turnaround

a

woman

'slump,'

few.

a

and

publicity during the
has reached every

'recession,'

Standard

depression here, is there?

What

peak

and

months

on

States, and most of the peoples of
the world.
As a result, the words

Jersey all broke records,

mention
No

V.'-v';

:■

Although 1953 was the
year for capital spending,

companies are thinking about the future of America.
Stresses importance of the state of mind of business groups,
and lists a number of facts^and trends that support optimism
delighted to be here in Los
for two reasons. First,

expansion, new equip¬
other capital improve¬

plant

ment

RCA, Inland Steel

put

"Depression

a

new record, breaking the previous
high of $803 million, in 1950, for
the same period.
Westinghouse,

gest

I am

is

This

taxes.

for

extolling the activities of the National Advertising

Angeles

before

Merle
it

as

Service

of the

some

you

in

Council in its development of a massive and effective system

Thorpe of Cities
March 17 in a
wonderfully ironic speech called
"How to Promote a Recession":
that,

Reports

look at

a

Thirty companies were covered
this survey.
What they think
is
very
important because they
are all leaders.
They were asked
how much they intend to spend

Director, Advertising Council

for the

Now take

dire

months ago!

Hearst Magazines, Inc.

Mr. Deems,

Profit

"growth" industries is both bright
encouraging. In fact, it's in¬

and

By RICHARD E. DEEMS*

9

(685)

The Commercial and Financial Chronicle

.. .

and, Refunding Mortgage Bonds

men

Series F, Due
Dated August

1979
Due

15, 1954

August 15,1979

thrift in history.

t
York
paper
was
saying, "The provements.
Every year for the next five
of pessimistic chorus which greeted
friends and relatives to write to 1954 is now tuned to a new key. years, the DuPont Company will
lonely GI's overseas.
The outlook today is one of cheer¬ spend $100 million for expansion.
Back
in New York,
Consoli¬
"Pessimists turn opti¬
(6) It induced new thousands fulness."
dated Edison is engaged in a con¬
pf youngsters to choose engineer¬ mists," said another, reporting on struction program which will
ing as a profession. It sent fresh¬ a poll of 100 business leaders. And
men
July
17, "Business
Week" eventually involve expenditures
engineering enrollment up by
of $400
million from the years
*18%, while overall college en¬ could report that the confidence

(5)

It

millions

persuaded

rollment declined 5%, and there¬

by helped to correct a dangerous
shortage of scientists.

(7) It helped raise $280 million
Community Chest and $85

for the

million for the Red Cross.

(8) It helped maintain the Cru¬
sade

for

Freedom,
the

broadcast

of

news

business

leaders

consumer

average

was

seems

now

willing (1) to save a little less out
of current income, and (2) to bor¬
row

little more on future pay¬

a

checks.

free

explain

the

This is the only
more

spending

way

on

people

same

income."

behind the Iron Curtain.

(9) It
nurses

50,000 student
nation's hospitals.

recruited

for

the

(10) It helped

drop

rate for all accidents to

-figure

on

record.

of What Big Companies
Think of the Future

A Survey

Council has
the death
the lowest just completed a spot survey by
telegraph to find out how some
The

AH these accomplishments

.

in

our

are
American

way of life which would

happened

had

not

not have

American

ad-

address by Mr. Deems before the
Advertising Club of Los Angeles, Los
Angeles, Cal., Aug. 17, 1954.
.




Advertising

(bellwether) com¬
panies are thinking about the fu¬
ture
of America
.
.
short and
long range.
I am happy to an¬
nounce for the first time, here in
Los Angeles, the exciting results
of

improvements

RCA in the next

the

biggest

.

of this survey.
The

corporate outlook of

five years ex¬

budget $120 million for

to

pects
B.

F.

Goodrich will spend $100

million in the next five years

the

year

Electric

General

and

Company

is spending $175

alone

modernized
laboratories, factories, and equip¬
ment.
This is a record for the
company and expansion expendi¬
tures through 1955 are expected

million

to

for

continue

new

at

a

and

high

rate.

Mr.

Ralph J, Cordiner, GE President,
estimates his company can expect
to do an annual business of be¬
$4 and $5 billion until 1961,
though it does no more than

Eastman, Dillon & Co.
Merrill Lynch, Pierce, Fenner

its

share

of

the

electrical

these facturing business.

Lehman Brothers

Goldman, Sachs & Co.

& Beane

Blair & Co.

Central Republic Company
(Incorporated)

Incorporated

W. C.

Langley & Co.

McLeod, Young, Weir,

Weeden & Co.
Incorporated

Schwabacher & Co.

Elworthy & Co.

Irving Lundborg & Co.
Crowell, Weedon & Co.

tween
even

Dean Witter & Co.

The First Boston Corporation

the same purpose.

to

the

dealers in securities and in which the

buildings.

and

this

world to the truth-starved

Copies of th( Prospectus may be obtained from any of the several under¬
writers only in States in which such underwriters are gualijied to act as
Prospectus may legally be distributed.

shared 1954 to 1958.
This year alone Swift and Com¬
by consumers. "Confidence in
the future seems to be guiding pany estimates that it will spend
consumers,"
it
reported.
"The $300 million for new machinery
of

hence,

and,

Price 100.526% and accrued interest

manu¬

F

J. Barth & Co.

Incorporated^

Brush, Slocumb & Co. Inc.

Hill Richards & Co.

Mason-Hagan, Inc.
Stone & Youngberg

Lester, Ryons & Co.

Sutro & Co.
Wagenseller & Durst, Inc.

~

10

The Commercial and

(686)

Name

.

Finn

Financial Chronicle

.....

_

Joseph McManus A Co.

♦Doerr, William rL

American Securities Corp.

Bridgeport, Conn.
Philadelphia. Fa.

Wm. J. Frankd A Co. Inc.

Notes

Eider, George J.

Wm. J. Frankd A Co. Inc.

New York. N. Y.

announcement of the

William iff. Edwards A Company

Tort Worth. Texas

Blair &

New York, N. Y.

Freeland. H. T.
jonn

S.

A. C.

Corp.

Sept. 22-25, 1954

W. L. Grudison A Co.

The Bankers BoRd Co.

•Gray. Wiiliaai S.

11:00 A.M.

Pledger A Co.

Greene. Irving A.

Bonner A

K^bin

Solarium.

The First

New York. N. Y.

Breakfast.

Golf
Bus

G. A. Saxion A Co..Inc.

New York

Johnson A Johnson

Pittsburgh, Pa.

Johnson A John'sOn
.

The Bankers Bond Co.
Drexel A Co.

Philadelphia. Pa.

Lee. Alonzo H.

Sterne.

Birmingham. Ala.

The First Cleveland Corporation

McDonald-Moore A Co.

Detroit. Mich.

Hat

Ernest R.

RETURNING

TO

NEW

Sept. 26—

City

"

THE

12:07

3:55 p.m. Lv. Atlantic
Lv.

a.m.

8:50 a.m. Lv.

10:20

Pittsburgh
Philadelphia

Ar. Atlantic

a.m.

Sept.

City.

8:20 a.m. Ar.

8:30

a.m.

>,;V

Two in
From

Each

Chicago

Cincinnati

Cincinnati. Ohio
New York. N. Y.

came

New York. N. Y.
New York, N. Y.

C.

S128.56

$124.82

^
-

102.32

96.97

77.30

79.62

77.14

99.41

96.36

59.70

New York. N. Y.

H. M.

Byllesby A Co.
Lilley A Co.

65.14

63.44

York

the

additional

cost

will

be

S8.35

Two in

Two in

Bedroom

Cincinnati

Two in

JS217.52

172.36

165.66

Philadelphia, Pa.

day—in

ics, minerals and transportation—

bert

H.

ment

Herbert H,

Blizzard

to mention

123.75

160.93

SJ

176.70

100.10

110.98

107.53

returning

through

New

York

the

additional

Blizzard

deserving

cost

Atlantic
Rooms
The

been

leaving

City.

at

panies

&

Co., Philadelphia

invest¬

cost

will

be

Herbert
$15 75

for

ture

are

-

and

hearty in Japan where he has

City

cf

Individuals

Dance
For

at

those

reserved

the
who

for

our

UTAH

Waldorf
wish

Baggage

of

New

York

will

Astoria-Starlight Roof

Hotel

reservations

Hotel

at

group

and

to

Hotel

Claridge.

included.

not

are

in

be

host at

Sunday evening Sept

York

a

a

for

time.

some

Col.

Blizzard's

M.

Hudson,

Walter

Thayer Eaker & Co.,
Philadelphia, Penna,

of

rooms

PRELIMINARY

Following is
Convention

as

of

New

Saunders,
Securities Corp.,

**Bodie. Jr,.Chari»s A.

york. N. Y.

Bradley, Walter V.

City

A Mackie
Stein Bros. A
Boyce
pni A

Garten and

Brown, William P.
Bruck, H. Mitchell

"

—

Tlllam H.

•Clark, Phillip J.
Coiweii, Samuel F.

•Conary. Wilfred G.

Cunningham, George W.
•Carrie, Trevor
•Dean, James B.

-

Co.;

-

A.

.

officers

Securities

and

Dealers

Inc.,

Chicago

17. that firm

A.s of Aug.

operating

is

head¬

the Midwest

as

member

a

Blair.

di¬

ated,

Asso¬

affiliate of the National
Security

Rollins

was

Co!, Inc. The
t^e

of

merger

&

formed

offices

Midwest

Co.,
in

Incorpor¬
1950 as a

of Blair & Co. and E.

Rollins & Sons,

L.

Burton

P.

Gaddis,

H.

Incorporated.

York, N. Y.
Buffalo, N. Y.

-

Detroit, Mich.

Sterling

(Special

R.

Larson,

Coombs,

Coombs

Havenor-Cayias.

Pressprich <4 Co.
Amos C. Sndier A Co
G. H. Walker A Co.
W. E. Hntton <4 Co.

George W. Cunningham A Cor.

P. Kibbe, A.

P. Kibbe

&

Co.

York. N. Y.

-

'

(Special to The Financial ChsonicleI

Mass.

—

Robert

M.

A.

*

Denver, Colo.

with

with

Providence. R. I.

Paine, Webber, Jackson & Curtis,

Westfield. N.

24 Federal

J.

New York, N. Y.

Atlanta, Ga.

i

New

Street, members of the

York and

changes.

Boston

Stock Ex¬

has

become

associated

Joins Bache Staff

Harri¬

(Special to The Financial

Chronicle)

J

Edw.

N.

Bagley

to The

Financial Chronicle!

N. C.¬
joined trie
Co.
He was

WINSTON-SALEM,
John

E.

of

formerly
Co. and

Setzer

Bache

has

&

Harris, Upham &
Thomson & McKinnon.
with

WATERVILLE, Maine—William
H.

associated

Chronicle)

&

With Maine In v. Service

,have

become

Frye

Inc.;

(Special

Financial

with Courts & Co.

staff

«

to The

LEXINGTON, N. C.—Theodore

Co., and
(Past Pres.).

Hewlett and Albert S. HutchinsOn

Atlanta, Ga.

Denver, Colo.

Company

Reed, James E. Reed & Co.;
S. Brothers, Harris S. Brothers
&

BOSTON,

Baltimore. Md.

Baltimore, Md.
'

R. W.

Trevor Currie

;

Dallas, Texas

Baumgartner. Downing <4 Co.
■.

With Courts & Co.

Ed¬

& Co.

Two With Paine, Webber

New
-

company

W. Tindall A

son

Baltimore. Md.

Baker Watts A Co.
T. W. Tindall <4 Co.




Co.,

and Philadelphia-Baltimore stock
exchanges.

New York, N. Y.

Baker Simonds A Co.

T.

new

elected

Utah

San Francisco. Cal.

Co., Inc.

Doolittle A Co.'

•Brown. Fdmonrf L.*

•Butler, J. W.
Chestnut, J. D.

the

Directors—Jack

1

New York. N. Y.

Jotynzon <4 Higgins

Singer. Bean
W

for
Emerich
investment

latter has 27 other branch

ASSOCIATION

James E.

*Bradt, John A.

Christ.—

Chicago. HL

Goldman, Sachs A Co.

p

Bryant also

negotiations

quarters of Blair &

Secretary—F. M. Whitney, Whitney & Co.
Treasurer—Wendell
Smoot,
Jr.,
J.
A.
Hogle & Co.

Company,

list of those who had registered to
attend the

Wilson

recently

of

DEALERS

Vice-President—Calvin
ward

Edward H. Welch,
Sincere Sc

Firm

Bailey, William J.
•Bean, Jules

Mr.

that

& Co.

Aug.12:

Name

'Arnold. Hs»trv L.

population

President—Edward N. Bagley, J. A. Hogle

has

REGISTRATIONS
a

SECURITIES

ciation,

Statler.

F.

Dominion

and

Davis and

pleted.

Hdqrs. FEALOGFOR APO-323 e/o P. M.,

Traders Association:

26

For Reservations and Additional
Information Communicate With
John

industrial

Mr.

&

ad-

San Francisco. Calif.

Blizzard

Just

post convention

block

H.

rectors

Hotel

on

New

and

and

announced

been

and

Trip Rail and Pullman including Federal
Breakfast Sept. 22 and Luncheon
upon
arrival

Chicago,

Transfer

Atlantic

hope

our

growth."

is

includes Round

Security Traders Association

Dinner
1954.

of each Tour

Dinner

is

progressive com¬
municipalities will
need to meet the demands of fu¬

(formerly Her¬

dress is Col. Herbert H. Blizzard, USAF, Box
431

f

What the Tour Includes
The

Taxes,

It

contemporaries in

organization can partici¬
pate in supplying the capital that

117.58

wife.

few.

house since 1911. have been com¬

142.61

167.03

those

a

our

ent Blair

'

firm) reports that he and his family

stationed

182.70

134.71

151.63

and

to

New Orleans. La.

Col.

S229.18

155.86

For

likened

Atlante. Ga.

ing Room

122.05

man

be

potentials of to¬
atomic energy, electron¬

that, with

Two in Draw-

$210.04

Detroit
;

could

each.

Cleveland

Pittsburgh

fields

economic growth

Philadelphia. Pa.

t'~e acquisition of Ames,

Duplex Suite Compartment

$197.72

him in

upon

Scharff A Jones, Inc.

Family Plan for Man and Wife
From

waited

Schmidt, Poole. Roberts A Parke

hale

Chicago

that

J. W. Tindail A Co.
J.

68.44

New

60

an¬

industrial, railroad and petro¬

leum

Philadelphia. Pa.

104.25

62.94

through

organ¬
over

rgo." they said in their

lenges
the

New York. N. Y.

83.57

96.33

returning

and

nouncement statement. "The chal¬

Chicago. HI.

Joseph McManus A Co.

107.49

99.02

73.29

those

Street

first Blair & Co.

New Brunswick. N. J.

San Francisco. Cal.

SI 34.39

91.74

For

Wall

to

today as
I. Blair

John

years

National Quotation Bureau

Each

SI 24.60

*

when

Philadelphia. Pa.

Aliyn A Co~, Inc.

ing Room

Each

abundant

as

were

ized the

Two Draw¬

94.07

-

Pittsburgh

.

New Haven. Conn.

investment

prosperous

are

the investment business, the pres¬

Detroit

.

they

•Mr. and Mrs.

Cleveland

,

Lynchburg. Va.

Co. Incorporated
Turnpike Commission

and

business

"

Compartment

Each

"

"

Two in

Duplex Suite

Roomette

SI 18.66

_™.

sound

GREETINGS FROM COL. BLIZZARD

Two in
One in

New York. N. Y.

A.

The A11 Expense Tour Cost
Bedroom

and

ing with Reynolds & Co. 20 years.
"Opportunities for building a

Blyth A Co. Inc.

Zollinger, Jr., John

"

Ar. Cincinnati

8:10 a.m. Ar. Detroit

investors."

New York. N. Y.

Harrrman Ripley A

•Wallrngford. Charles L.
•Welsh. Jr., Henry C.
Williamson, E. Goit

"

•-

Pittsburgh
Chicago

Bryant joined Blair,
January, 1953, after be¬

and

Chicago. IP.

New Jersey

•Willis. Eugene F.
Ar.

a.m.

Davis

Rollins in

Fitzgerald A Co. Inc.

•Wakely, Thompson M.

27—

12:59

securities

issuers

Greene A Co.

,

♦Vicino. Walter J.

*

_

favorably

firms,

New York. N. Y.

Strader, Taylor A Co. Inc.

•Walker. Graham

Penna. RR.

been

long by

Philadelphia. Pa.

,

Chas. W. Scranton A Co.

•Topol. Robert Lf."
Torrens. Robert A.

WEST

City

has

so

Wm. J. Frankel A Co. Inc.

•Tisch. Alfred F.

Sept, 26—r

for

George Eustis A Co.

Walker. Louis E.

RETURNING TO

"

that

name

Singer, Bean A Mackie

Strader, Ludweil A.

"

"we are natu¬
able to con¬

be

to

V/ayne Hummer A Co.

•Swan. Leslie B.

Penna. RR.

said,

in

"How¬

Investment Dealers Digest

»

•Stein, John R.

....

.

City__

York

title.

new

New York. N. Y.

Corporation

Hemphill, Noyes <4 Co.

•Troast. Paul L.

-

..

1:20 p.m. Lv. Atlantic
4:45 p.m. Ar. New

New York. N. Y.

-

-

they
proud

known

New York. N. Y.

Carl M. Loeb. Rhoades <4 Co.

•Staib, Lee

YORK

Corporation

consideration

tinue this growing business under
a

New York. N. Y.

Baltimore, Md.

New York Hanseatic

Irwin

•Schoettier. F. G.

>

-

Roggenburg A Co.

Sharp, Eliot H.
•Singer, Herbert

attending

W. Pizzini A Co.

C. T. Williams and Co. Inc.

•Runyan. Wrallace H.

•Schloss.

Announcement is made of the Train Schedules for
those
21st Annual Convention as
follows:

Sept. 22—

Seattle. Wash.

B.

Ronan. Frank J.

Rosse,

SECURITY TRADERS ASSOCIATION
CONVENTION
September 22-25, 1954, at Atlantic
City, N. J,

i.

Pacific Northwest Co.
New York Hanseatic

•Roggenburg. Stanley

NATIONAL

5:15 p.m. Lv. Detroit

rally

Roberts, Jr., William C.

Reservations should be

"

ever,"

New York, N. Y.
New Yo:k. N. Y.

Plumridge, Theodore E.

forwarded at once to John M.
Hudson,
Secretary, Commercial Trust Bldg., Philadelphia 2, Penna.

Penna. RR.

Boston. Mass.

Wm. J. Frankd A Co. Inc.

•Phillips. Josef C.

Internationally Known Humorist.

Bept. 21—

New York. N. Y.

simplification

corporate

primary
adoption of the
a

American Securities Corp.

Sidney

•Pizzini. B. Wlathrop

Guest Speaker:

for

was

Boston. Mass.

Carl Marks A Co. Inc.

•Ornsul.

Lounge.

GOING

Commercial A Financial Chronicle

firms

Blair &

sire

PhiDdel-dria. Pa.

Allyn A Co., Inc.

corporate

Bryant, President of the
Co., Inc., said a de¬

new

Niemaii. Barney

Show.

Guest Speaker: Hon. Ralph H,

{

Emmons

New York, N. Y.

-

A. C.

invest¬

sir.ee.

Newman, Leo F.

Meeting, Election iof Officers.

and

Party, Park

7:10 p.m. Lv. Cleveland

Janney A Co.

Murpuy. Hal

Luncheon.

5:15 p.m. Lv. Cincinnati

National Quotation Bureau

several

Joshua A. Davis. Chairman, and

Detroit. Mich.

•

has

the

banking and securities busi¬

„

Detroit, Mich.

«Mui»er, Geo.ge J.

Co.

It

with

-

New York. N. Y.

Mor eland A Co.

&

1890.

in

ever

Gordon Grares A Co.

Co., Incor¬

Blair

in

ment

Fla.

Don W. Miller A Co.

j.

&

first

ness

Lynchburg, Va¬
st. Petersburg.

Murpny. Arthur C.

Luncheon

—

Philadelphia. Pa.

Scott, Horner A Mason. Inc.

The

identified

.

•Moreiacd. Paul L

Dammler, Chairman SEC.
Round Table Discussion.

Chicago

Cleveland. Ohio

Stroud A Co. Inc.

McDonald, Jr.. Harry A.

Emmons Bryant

Rollins

established

been

McCleary A Co. Inc.

•Meyers. Jr.. Jonn

8:00 P.M. Dinner, Informal.

3:00 p.m. Lv.

A'gee A Leach

Blair.

was

Boston, Mass.

•Maguire. F. E.

SEC

;

porated.

Louisville. Ky.

•Miller. Don W.

9:30 A.M. National Committee

.

P. Kibbe A Co.**

National Quotation Bureau

Moss. William r.,

Cocktail

Philadelphia, Pa.
Salt Lake City, Utah

A

,

A. Davis

ceed

•Mason, Walter G.

Registration.

Joshua

New York. N. Y.

Yamall, Btddle A Co.

•McCieary. G. M.

Dinner, Captain S-arn's Restaurant.

6:30 P.M.

Philadelphia. Pa.

.

Loeb. Rhoades A Co.

cart M.

•Knob. John E.

SATURDAY, SEPTEMBER 25TH—

,

t

.

Baltimore. Md.

•Kibbe. A. Payne

Phila¬

2:30 P.M.

Chirago. 111.

Alex. Brown A Sons

•King. Charles C.

Cour¬

Ladies'

';C

-

Long. Martin J.

Tournament, Tennis, Boating, etc.
for Atlantic City Race Track.

1:00 P.M. Men's

*-!

National Quotation Bureau

Kennedy, fcamuel M.

N. Y.

Pittsburgh. Pa.
'

'

•

American Securities Corp.

•Kelly, Edward J.

*

tesy, Investment Traders Association of

12:45 P.M.

J'

Kellermann. Howard L.

delphia.

8:30 A.M.

Pailadriphia, PsC.
New York. N. Y.

Greensboro. N. C.

Leahy. Cranoon

leaves

7:30 P.M. Shore

a.

McDaniel Lewis A Co.

Collins. Pnilip

Registration.

1:30 P.M.

Thayer. Baker A Co.

K cart on, John G.

;

*

*

Boston. Mass.

McLaughlin. Reuss A Co.

Keams, Hugh or

Luncheon.

,

New York. N. Y.

.

•Johnson. Walter it.

FRIDAY, SEPTEMBER 24TH—
9:30 A.M.

Corporation

•uoonson. Sr., Whour d.

Municipal Forum-Guest Speak¬
ers:
Hon. Paul Trost, Chairman, New Jersey
Turnpike Comm.; Mr. Sumter Kelley, Attorney,
Atlanta, Georgia.
6:30 P.M. Cocktail Party, Park Lounge.
8:00 P.M. Dinner, Informal.

8:00 A.M.

Philadelphia, I

du Pont, Homsey A Co.

•Johnson. Jr.. Wilbur E.

National Committee Meeting.
12:15 P.M. Ladies' Luncheon.

„

New York. N. Y.

•limit. George V.

8:30 A.M. Past Officers'

Men's

Los Angeles. Cal.

* ;

,

•Johnson. Marshall H..

9:30 A.M.

12:30 P.M.

'

.

New York Hanseatic

^•Hudson. John M.

Registration.

nf

to sue

Cleveland. Ohio

-

Gregory
Boston Corp.

hoinaey. An .on E.

8:00 A.M.

Incorporated,

Louir.iile, Ky.

.

Hart, Maurice

THURSDAY, SEPTEMBER 23RD—

Co.,

formation

Cal.

Cincinnati, Ohio '

*..

Greene A Co.

Gregory, Jr.. Vrnnam H.

Registration.

7:00 P.M. Reception,

'

Wm. J. Mericka A Co. Inc. '

•Green. Samuel

WEDNESDAY, SEPTEMBER 22ND—

banking

being restored with
thp

Los Angeles. Cal.
Los Angeles.

Graham. Tnomas

•

.

Lester Ryons A Co.

William R. Stoats A Co.

Glenn. Paul W.

Hotel Claridge, Atlantic City, N. J.

is

name

New YOik. N. Y.

AJyn A Co.. Inc.

Gallegos. Joseph F.
Glass. Jr..Chester M.

21ST ANNUAL CONTENTION

investment

New York. N. Y.

uc

"Freear, L. A.

PROGRAM FOR

old

An

Philadelphia. Pa.

Joseph McManus A Co.

American Securities

Fuzpatnc*.

Freccii.

Detroit. Mich.

Stroud A Co.

•Ergood. Jr., Russell M.
•FrauofceL William J.

TENTATIVE

Changed To BEair& Co.

Fhiladelpi ia. Pa.

Straus. Bloiser <4 McDowell

>

New York, N. Y.

Blyth A Co.

•DocacKi. Josepa

NSTA

Blair, Mrs Name

New York. N. Y.

Hi neks Bros. A Co. Inc.

••Donovan. Robert F.

Thursday, August
19, 1954

.

City-

-

Dedrick. George E.
"Dockfcam. George A.
.

.

.

Porter

has

Maine

become

Main Street.

Mr. Porter was for¬

merly with Bowers
In the

&

Company;-

past he conducted his

investment

With Ohio Company

associated

Investors Service. 76

business

in

own

Portland.

(Special to The Financial

COLUMBUS,

Ohio

Chronicle)
—

Ned K.

Barthelmas has been added to tn
staff

North
the

of

the

Ohio

Company,

High Street, members
Midwest Stock Exchange.

»

oi

Number £352

180

Volume

.

.

The Commercial and Financial

.

Chronicle

(687)

With the improvement in trans¬

Better Food

Marketing

portation
fruits

—A National Problem
By HON. WILLIAM

;

U. S.

S. IIILL*

■:

>

'

•

$

■;*>

ment

Says, though

consumer.

:

cost

have huge commodity

we

pluses today, our rapidly growing population will in

sur-

v

few

a

higher than in past

are

also
spe¬

ment

methods

demands

new

as

against

(d)
cost of

the

mated that the

in¬

steadily
creasing

pop¬

and

ulation of the

in

least 5,000 new

but

super-market

unrelenting

nity.

stores

n

invest¬

equ

William

30%

is

great

a

the

is

farmer's

terrific

a

This gigan¬

business in America.

industry is an absolute neces¬
If there is such a thing as
"critical material," as classified in

tomatoes

production

be

that

loss

greatly

could

reduced.

harvested

reached the

in

that

consumer

State

in any

Farmer

Defense, certainly food distri¬
a critical industry if our

our

bution is

people are to be supplied with a
proper
type and kind of food.
Only with a proper system of food
distribution will
our
people be
able to follow the

general pursuits

of their activities

standard
that

life

to

earn

and continue to

lihood

living and

of

can

a

live¬

develop a
a

only exist

way

of

under a

free Government.

Keep in mind that our popula¬
is increasing at the rate of
2,500,000 people per year.
Actu¬
ally, this means that every year
tion

adding to our population
the size of Los Angeles,
Calif., plus a Louisville, Ky. Five

we

are

city

a

years from

now

additional farm
alent

to

the

we

will 'need

an

production equiv¬

entire

annual

crop

output of Illinois and Iowa com¬
bined.
And I am only including
the actual

necessities.

food

No Likelihood

,

I.

Surpluses

Continue

Will

True, today

Food

have huge com¬
modity surpluses. But, our rate of
soon catch up with
we

population will
our

total

agricultural production,
the tiines
correctly, we could in a short

and if I read the signs of

period

of

supplying
of

years

be

deficient in
and kinds

proper types

food for

our

domestic market.

•

You

cently

are

familiar

developed

with

the

lettuce




;„y'"

-

office

in the Lincoln

•

Library

Depreciation, the write-off
new equipment.
The tax¬

Building in
Philadelphia,

which curtails at least 20% of the

transportation

losses

of

wire

to

York.

provement in

care

and handling.

Many additional dairy products

s.

New

Newton

H. Parkes,

orrVr

Jr.,

i

that

Arthur L. Wright & Co., Inc., in
the corporate trading department,

-

government as it concerns- individual taxpayers
operation
of
the- $3 billion annually.

your

total

a

of

Paul V. Miller With

detailed

the

,;i

retail

and

food

Two

indus-

in

'V'.-

y

./.Y

The farmers must produce food
abundance.

must prepare

distributors

The

the food for sale in

billion

dollars

tax

methods

sales

and the

consumer

developed

not

are

lacks

a

saved

by elimination of the
profits tax.
•
The

excise

are

Bache in

excess

reduction

tax

taxpayers

saves

sanitary and appealing manner;
The producer suffers when proper

a

an

law

additional $1
act

will

balanced

A

tax

total

of

relief is

save

$827,000,000 of this!
individuals.' The*

for

that this re-':

The
will

overall

tax-cut

department in the Seattle office of
& Co.
•v

;

Of

this,

individuals receive an.
tax
saving of $4.7\

lationship is remote—but we find
this is not true upon closer ex¬

amount,
overall

amination.

billion.

These tax savings surpass;

are

buy

in

abundance the food offered by

and

consumers

So, if the farmer re¬

distributors.
ceives

fair share of the national

a

'

'

'

•

y

(Special to The Financial Chronicle)

any

ST. LOUIS,

Mo.—Charles De F.

Evans has become associated with

Other Legislation

(2)

■

Wilh G. H. Walker Co.

previous total in the history
of Congress.

the

heavy

.

Charles D. Evans Is

total

The farmer and his family

y

program-

billion.

$7.4

save

Reynolds & Co. and prior thereto
was
Manager of the municipal
J. R. Williston, Bruce

interest

keen

Co., 135 South La Salle Street.
Miller
was
formerly with

Mri

So, the farmers have a remainder, $536,000,000, is tax re¬
in our system of lief for business.

of reach.

i

has become associated with Bache
&

revision

tax

Chicago

CHICAGO, 111.—Paul V. Miller

billion.

The

;

(Special to The Financial Chronicle)

taxpayers $1.4 billion.

diet and finds the cost of food out

lettuce.

Other vegetables can be marketed
with approximately the same im¬

direct

with 'a

In summation, the .10% reducis closely associated with,in
Federal
income
certainly interested in the ac¬ tion
taxes;
tion of the legislative branch of which took effect last Jan, 1 saves

times it may appear
re¬

crate

H. Walker & Co., 503 Locust

Overhauling and moderniz-7

ing of our nation's highway sys-; ^r-ee^W1em^Jersr,?^ the New York
income and if he attains equality
tem—a $50 billion program.
an(^ Midwest Stock Exchanges.
nutrition if they were properly
as
the laboring man, a greater
(3) The 1954 Agricultural Act. fyMr. Evans was formerly an officer
marketed with new and up-towith other economic groups, such
(4) Revision of Social Security
Redden and Company,
the-minute cartons and modern
stability and a higher standard legislation.
methods of preserving the fresh¬
of living are results of this com¬
With Goodbody & Cou
(5) Balancing of the budget now
ness.
plete and total cooperation of the within 75% of accomplishment.
(Special to The Financial Chronicle)
Your
Federal
Government
is
producer, the distributor and the
Many,
many
more
legislative
BRADENTON, Fla. — Paul 17,
spending more than $100 million consumer.
In no sense can they acts could be discussed, but just"
a
!,
ni„
Coloney is now associated with
year in marketing research on
be considered separate economic
Goodbody & Co., 512 Tenth Street,
this very importance item.
entities.
West. He was formerly local manThere are problems your organ¬
We continually hear about the as it is
usually called was created
ager for A. M. Kidder and Co.
ization must face and
assist in high price of food, but the truth
to give financial, managerial, and
solving if we are to keep abreast of the matter is, we are buying technical assistance to business—
of the increasing population.
Two With F. I. du Pont
cheaper food in relation to the men like yourselves. It is the first
We
owe
a
(Special to The Financial Chronicle)
great deal to our average family income than at peacetime
legislatibn
designed
food industry for its most histori¬ any time in our history. And the specifically for small business. It
MIAMI, Fla. —I. Perry Bieh /
cal achievement—a land of plenty, food, remember, is better, cleaner is becoming increasingly apparent and
Lynn B. Spiers have becom}
where the food shelves are always and more appetizing, and affords to
Americans
everywhere
that% affiliated with Francis I. du Pout
a
better diet than ever before in when the opportunity for business. &
bulging with a varied and tempt¬
Co., 121 Southeast Second A J.
to begin small and grow big is
ing supply of nutritious food. The the history of the human race.
There must be on hand at all
entire food industry is justly and
eliminated, the American econ-,
Joins du Pont Staff
rightly proud of this achievement. times sufficient food and fibre omy and the system of free, com¬
(Special to The Financial Chronicle)
for our growing population.
In petitive enterprise will have been',
New Marketing Methods Needed case of drought, floods, pests, or
MIAMI BEACH, Flai—Ceryl B.
effectively destroyed. The oppor-,
The days of the old marketing in the event of war, food produc-r tunity
must continue for small Black has been added to the sta, 7
methods are over.
The frontier tion must be held at a high level business to grow strong and pros-'. of Francis I. du Pont & Co., 23c )
trading posts that handled every¬ and an abundance of food in the

could

be

channelled

into

human

,

,

.

.

„

^

*

Collins Avenue.

per.

thing from a toothpick to
ture
and farm equipment

furni¬

We

in my
revolution in

have—certainly

market place is

food

same

23.8%

report to the House on

its

farm

new

that in 1933-39
of his income.

the
cost

We maintain

Committee on Agriculture,

Our

in

could buy

of his annual income

for 18%

him

essential.

1953 the consumer

In

have

long since disappeared. The IGA
stores have replaced these posts.

life¬
food
ficiency of our food marketing time—seen a
systems has delayed the full im¬ distribution—and the end is not in
pact of our population growth on sight.
The old "cracker barrel" days—
the increasing use of farm prod¬
the poorly kept, unlighted, filthy
ucts.
,The spread between the price grocery store—have departed, and
the farmer receives for his com¬ a good riddance indeed.
With the departure of the old
modities and the cost to the con¬
frontier trading post, a revolution
sumer will be narrowed and re¬
duced as properly developed mar¬ in transportation and food distri¬
bution
developed side by side.
kets become more efficient.
Marketing efficiency is of para¬ With the development of national
brands of goods and brand adver¬
mount importance and should in¬
crease the consumption of agri¬ tising. the local retailer threw off
cultural products in considerable his old character and began the
quantities.
The per capita con¬ slow and uphill drive to become
sumption of meats, fruits, vege¬ a modern merchant.
Millions of farm families who
tables, milk, and eggs must be in¬
creased from year to year, and the used to be self-sufficient, as far
records show that as yet one-third as their food supplies were con¬
°f our
city families are not con¬ cerned, now purchase food at the
suming enough of these items ac¬ super-markets.
If my figures are correct, the
cording to the best nutritional
standards. By improving the pres- number of grocery stores has^ al¬
most doubled every 10 years since
*An address
by Congressman Hill be1850.
In 1870 there were 7.000
ore
the Annual Convention of the In¬
wholesalers in the United States,
dependent Grocers Alliance. Chicago, 111.,
but by 1900 there were 93,000.
Aug. 9, 1954.

Undoubtedly the increasing ef¬

in

food handling and distribution. At

form.

tic

sity.

v

> /

,,

an(i*
loss carryback to two years;
R. Raditzky
(g) Lessening of the penalty tax
be
pn certain accumulated earnings c,la„.e d with

and

.

vegetables—are lost be¬

should

ever

branch

equal to 4% of the

*

that

it is opening a

chants

—

fresh

all

study in South Carolina
disclosed that only 57%
of the

distribution

Food

that
of

A recent

dollars.

billion

indicate

and

one-half

tax

a

er-

credit

a

business, especially"I™ inv ,
small businesses, may have great-;
PhiladelN. H. Parkes, Jr.
Business, I should like to discuss er freedom ; in
retaining
their. S
°"ice'
with you for a brief moment how funds for legitimate business pur-i * e announcement stated.
,
your great organization of mer¬ poses;
'
Mr. Parkes was. formerly with

wholesale

This

alone will run

of $50

i

one-third

tween

ip m ent

over

'

-

point and the consumer's kitchen.

and

g s

v

fruits and

ment in build-

i

Food

;

direction the last decade,
today is the day of opportu¬

almost

next decade.
The

vigor.

this

Records

the

within

■

stores have accomplished wonders

will require at

food

days ahead.

against waste of fruit
vegetables must be carried on

with

States

United

immediate

The battle

credit

nounces

now allowed;
Ce) Tax accounting rules
brought into harmony with busi¬
ness
accounting;
" ; "
(f) Extension of net operating

.

opportunity and responsibility in

PHILADELPHIA,
Pa. — New
Hanseatic Corporation an¬

York

twice the amount

our

-

esti¬

is

and

would .be able to write-off;

payer

has ent daily diet of this one-third of
As a member of the Committee
been and must continue to be the our urban population, we would on Agriculture in the House of
basic fundamental in the develop¬ create a new market for roughly Representatives, and as Chairman
ment of business units in America. five million; people. r This is. your of the Select Committee on SmallIt

Dividend

balance;

years.

Help the

pensions

cluded from taxation and

shifts

Must

of

Opens

Philadelphia Branch

to 6%;

up

Taxation

(c)

are

fast-growing suburbs.
We

N. Y. Hanseatic

instal¬

on

annuities reduced;.?

directly1 from
a
rural population to cities and their

cooperation

by

Progress

purchases

(b)

store.

grocery

These

years.

(a) Credit deductions

fluid

a

country

proved, food

marketing and denies food costs

the

operation to

f

absorb this and, unless agricultural efficiency is im¬
may have to be imported. Decries wastes in food

years

of

75

in

should interest your

state—shifting, chang¬
ing, expanding. These are everchanging conditions that up-andcoming business firms of any type
and
kind
must
appreciate, and
they must be able to adapt their

of economical food distribution, calls for narrowing of

the

to

and

Yes,j distribution

spread between the price the farmer receives and the

legislation

fresh

of

cialty in itself, v and one that is
fast becoming a principal depart¬

Congressman from Colorado

Member of House Agricultural Committee, stressing importance

storage

vegetables came
the frozen food industry, a

in

the

and

11

by

prepared
to

omists

bill,

more

show

that

Company

consumers

and

In 1914 the average

First

factory em¬

six

and

four-tenths pounds;
could buy ten and
bread with

Mortgage 4s, due 2004

Income.4% s, due 2029

ployee could buy three and onepounds of bread with an
hour's earnings; in 1929 he could

half

buy

active trading market in

Wisconsin Central Railroad

the

presented figures
government econ¬

better food at a
less percent of their wages at the
grocery today than ever before.
get

an

i

and

•

i

Common Stock

and in 1953 he

seven-tenths pounds of
an

r

A

sion

recent

further discus¬
of this phase of food produc¬

distribution

tion,
tion.

and consump¬
.

Some

! '

.

which
Time

keenly interested.
prohibits detailed analysis.
you

are

The

tax

MEMBERS
MEMBERS

In

>

60

NEW

revision bill, the
overhaul of our tax

YORK

NATIONAL

WALL

SECURITY

ASSN.

STREET,

TELEPHONE
BELL

(1)

first complete

of this

reorganized road, may be had upon request.

S. Weinberg & Co.

;

Recent Legislation

closing, just a few brief re¬
marks
on
recent legislation in

analysis, giving past and present status

complete

hour's earnings,

Time nermits no

OF

DEALERS

SECURITY

NEW YORK

WHITEHALL

TELETYPE

NY

ASS'N

DEALERS

5,

3-7830

1-2763

N. Y.

12

The Commercial and Financial Chronicle

(688)

that the Federal Reserve Act

ness

The Federal Reserve Has

directed

be

snouid

toward

more

Reserve

Federal

the

that

size,

System has really grown with the

;

Stood the Test of Time

through, but helped to bring this

Congress

States, in
completed

an

banking

sys¬

tem
-

assembled,
the

examination of

The

in

The

Wilson
1913.

L.

A.

ties

Mills, Jr.

concept of banking was
established—"central bank-

jng,"

or
"reserve
for

its

perhaps more accurately,
banking" - which dreW

origins

First

the

on

and

Second Banks of the United States
and
on
the
long
European nations.

experience

of
'

"

the

appropriate to

is

value to

the

assess

the United States of

concept of banking that

was

thus formulated—the Federal Re¬

System. Searching questions

serve

asked:'

must be
/

s

*

tt

v

-

il

Has

(1)

the

System,
banking

j

,

r>

Federal

Reserve

decentralized

a

a

that

central

keeps
of

the

'ts ra.nks> wh!'e a\ tha sa.me tlma
drawing
of

look

ences..

the

on

their

freshening

individual

out¬

experi¬

The Federal Reserve Sys¬

tem has

been fortunate in having

official

personnel devoted
service-one that,

public

aqsociation with

f/^zens

to

in

the nublic-snirit-

who

have

served

on

the boards of directors of the Fed¬
eral

Reserve

Federal

Banks

and

the

on

Advisory

Council,
has
provided a blend of public and
prjvate direction that has been of
immeasurable value.

It is safe' to

system, served the pursay thigt there is general agreeposes for which it was created.ment
that
the
Federal Reserve

(2)' Has the

|

Federal

Reserve

System grown with the times?

bilities9

rather than specific answers.
the

decentralized

by its founders.
then, it

During the 40
ence

a

ing system.s that

'

Primarily, the answers to these
questions lend themselves to gen¬
eral

System has satisfied
of

.

(3) Has the Federal Reserve
System lived up to its responsi-

of its exist¬

years

Federal Reserve

System
not only come through, but
helped bring this country through

has

the

concept
bank-

central

Was

envisioned

"•

»

be agreed

can

that

tte-reteal „Reslr,v!, Sys'cm >?
structurally
acceptable,

wars,
nant

pant
calm
and

of

unparalleled

the

social and

bulence of
For

x-

any

have

which it

the

x

dence-as I

in

A

in

to

with
these

the process to

public

believe

the

System has

has

a

testi-

ing Fathers of the Constitution of
the United States of America sup-

bbed. *} document whose stated

framework

a

into

*An

•
'

address

interests

of

possible

principles,

but,

rather,
firmly

with those principles more

established

with

the

passage

of

time.

Within
span

claim

a

lesser

sphere
Qf years, somewhat the
can

be

made

for

and
same

the

Fed-

Mr.

to

serve

tbe outset undertaken

the requirements of

com-

?f % commercial banks in meeting the credit needs of their
It

was

cus¬

originally planned
econ-

Preventing Financial Disturbances

^?wjSh Pr°8ress;i was

made

direction, the exDerience
of .tw.° wars. ramoant sneeulation,
spiraling
»

deDression, and

an armed

Mills




through

of discretion

area

an

supervi¬

bank

adequate

sion sufficient to forestall improv¬

banking, practices that, if
checked, would lead to the

not

accumulation of paper that could
not

qualify

security for Federal

as

Bank

Reserve

there came to be

a

gradual

aware¬

its

19

1954

loans.

Of Open Market Operations
In

much

the

same

that

way

these lessons of adversity strength¬
ened
the
Federal
Reserve Sys¬
tem's

capacity for public service,

the accumulation
in depression

of Federal debt

and

for

quirements
of

ments

a

eco¬

Changes in the
in

and

rate

use

as

fostering

nomic conditions.

discount

effective

operations
stable

market

open

means

has led to

war

flexible and

more

of

reserve

re¬

familiar instru¬

were

Federal

Reserve

mone¬

tary and credit policy before the
full

import of the usefulness
open market operations came
be understood.

techniques of
tions

market

open

States

of
to

however, the

As,

mastered

were

United

opera¬

in

both

the

and

abroad, there
came
central bank
appreciation
that the ability to increase or re¬
duce the cash

mercial
to

Most

creators.

people ap¬

of the

reserves

banking

com¬

in

system

this

also embodied the

encourage

ability
discourage the

or

of bank credit.

use

has, at the least, made a
conscientious effort to discharge
duties

its

impersonally

nation's

that

terest of the

public

of

use

(4)

credit,

on

it

transactions

through the
follows
that

policy,' by
within

fixing

which

the
bank

expand

contract,

or

powerful

influence

business conditions.

The

Reserve- System's

monetary
policy in recent times
the

uses

to

which

market

policy can be put,
first, in acting to restrain the use
open

of credit

threat

so

bat

damp down the
inflation, and then in

of

acting to

to

as

ease

credit

so

as

to

com¬

record, like that of other
institutions, is by no means
Hindsight delineates the
faults in even sharper / perspec¬
tive.
Certainly no friend of the
System would like to claim that
human

flawless.

it

has

Yet

been

it

or

and valuable

appraise its

of useful, necessary,

one

as

the

to

question,

"Has the Federal Reserve
System
grown
with the
times?"
would

assuredly

seem
to
be
yes.
Its
growth has been by way of adap¬
tation to changing economic cir¬

cumstances in ways that have
put
to
constructive
use
the
lessons
learned

from

experience, to the
end that monetary
policy can .be
used
to
anticipate and forestall
the

recurrence

are

inherently destructive

of

maintenance of

conditions

stable, yet

a

that

to

the

gressive, economy.
To be sure, the Federal Reserve
System has also grown physically

with

the

growth

times.

of

the

Considering the

national

economy,

it

could not be
otherwise, but this
physical growth has been limited
strictly to functional necessities

has

not

been

ambitious

power or

stature,

the

desire

authority.

rather

product
for

of

added

It is in moral
than in physical

of

institutional

influence

some

caprice

avoided.

of

the

of

moment

k

*

.

(5)

The Federal Reserve
Svs

tern must
its

unremittingly dischar^I

duties

solely

in

general

the!

6 neraI

public interest.
Federal

Reserve

System

has, I believe, met the test
lic

service

40

years

and

responsibility

by holding

principles

of pub¬

for which

fast
it

for

to

the

was

cre¬

ated, while at the same time
larging the horizon of its
tions

to

meet

'

the

changing conditions.
of

its

en¬

opera

past,

it

challenge

of

On the
roots
grow in the

will

future.

public service.

That the Federal
tem has

women

who

Reserve Sys¬

a

good name redounds, to
the lasting credit of the men and
service.

If

System

enlisted

are

has

the

Federal

lived

With Cruttenden & Co.

its

in

Reserve

its

to

up

Richard J. Wallace

re¬

sponsibilities, and I believe it has,
is because of the high morale
of its personnel, which has meant
it

the

subordination
and

cause

tribute

of

to

person

willingness

a

to

con¬

to objectives
debate, trial, er¬
and accomplishment.
as

a

group

decided upon by

Over the years a national insti¬
tution develops a character of its
own whose strength is the product
of its

accomplishments and the

re¬

flection of the individual person¬
alities who go to make up its col¬

lective

whole.

Respect for char¬

acter is in itself

reward and

a

be shown in diverse ways.

Federal

actions

Reserve

Richard

can

In

my

opinion, the Federal Reserve Sys¬
tem's reward for public service is
to be found in the willingness of
the public to accept its indepen¬
dent judgments even though they
may at times be vexatious to large
groups.
This is not to say that
should

J.

Wallace

(Special to The Financial Chronicle)

CHICAGO, 111.—Richard J. Wal¬
lace is

now

touden

& Co., 209 South

associated with Crut-

La Salle

Street, members of the New York
and Midwest Stock

Wallace
Salle

Exchanges. Mr.

formerly

was

Securities

with

La

Co., Paine, Web¬

not be

ber, Jackson & Curtis and Demp-

its

sey-Tegeler & Co.

challenged or to claim for
judgments more than a high
average of correctness. It is only
to

that the public

say

have

been

actions

convinced

to

seems

that

andr judgments

these

were

Teden Offers

honestly and, when and
where they have been found to
be in error, corrective steps have
been taken promptly.
Keep

an

Independent Federal

v

,

.

If,

however,

serve

the

System

merit public

pendence
served.

is

Federal

to

Re¬

continue

Gas & Uranium Stock

must

be

pre¬

a

and

as

over-all

such must be

tional

attentive to

policies

of

the

But, being
delegated authority by the Con¬
gress in the specialized field of
monetary policy, it is essential for
Federal

Reserve

System
exercise that authority so as
discharge
the
responsibility
bear

alone.

That

other things,

among

be

able to

views

share "as

a

The net proceeds are to be
to

pay

opment

expenses.

sound

A.

the

composite

of

fit¬

dently to decide and carry out
policy judgments manifestly de¬
signed to serve the best interests
public.

conclusion,

that the

it

Federal

cannot

continue

public

confidence

must

Reserve
to

it

be

said

System

justify
now

the

enjoys

unless it adheres firmly to certain
cardinal principles that have

Chronicle) '

Colo. —Kathleen

DENVER,

F.

May has joined the staff of Stone,
and Company, U. S. Na¬

Moore

tional Bank Building.

Lawson Staff

Joins

current

governmental policy. The essence
of effective Federal Reserve
pol¬
icy lies in this authority indepen¬

of the general

1355

Brokerage,

(Special to The Financial

ting and proper, and thus assure
monetary
policy
a
harmonious
in

Krakover

With Stone, Mdore

it

they

as

S.

Hooker.

to

its profes¬
opinions with

that

Chronicle)

DENVER, Colo.—Israel Zuckerman
has become connected with

System

accepted

Joins A. S. Krakover
(Special to The Financial

means,

the

reasoning

7 :

to

voice

and

will be generally

part

speculation."
used
for exploration and devel¬

cents per

na¬

government.

such

Co., - Inc., New York
offering publicly ani is¬
sue of 1,190,000 shares of common
stock (par five cents) of Repub¬
lic Gas & Uranium Corp. at 25

governmental institution

the

must

&

are

The Federal Reserve Sys¬

tem is

the

Teden

.

City,

to

confidence, its inde¬

of action

Republic

ar¬

rived at

In
pro¬

kind

"

sional
answer

infallible.

be

can

fair to

seems

record

must

recession.

The

7

The

on

Fed¬

The

conservatism that resists
warrant
ed change must be
shunned at thI
same
time that the

The
The Record Is Not Flawless

.

business

boundaries

anv

whole.

as a

volume of

enormous

carried

are

monetary

and

im¬

and

partially and to work in the in¬

Reserve

Given the
a

and justified by their
lotf-i
reasonableness, and' never u
other considerations.

Reserve

ror,

a

over

to recognize that the Federal

pear

More Flexible and Effective Use

The adminis¬

before the
d UnS*able OCace showed that
While V\eira cBanke" Association, these expectations exceeded the
X!,i;e954Sulphur Sprmgs' w- Va- Ju,y PJ?wer
attainment. Therefore,

by

Banks

serve

damental

{he '(
the

consequence

credit

would Provide the national

made

a

illustrated

•

has

of bank
At the same
time, it allowed the Federal Re¬
as

and

nocf

economic

self

liquidity problems.

has

•

the

tion of bank credit feeding on it¬

eral

ernment without sacrifice of fun-

j.

district,

vided insurance against a contrac¬

whic|>,can be fitted a democratic
people s evolving theories of gov-

a decentralized omy with an elastic currency
Amerfna"1 1S m rr?" whose stabilizing influence would
The OTfianizat?on
n?
greatly miti^ate the wide
Reserve Bankl enrh lnLt ^
nomic Actuations which had
A7® ±5anKS, each located in a been exnerieneeH in thn
distinct
geograohical district ofexperienced in the past.
the

Of

of such

the satisfaction

to

se¬

Federal Reserve Banks." This pro¬

on

ing with the

continental United
States, and

notes

businessmen's decisions and hence

become

overrtoef ntt TlT™1
nf

cured

"on

banks

member

self

tomers.

conrlnt

eral Reserve Banks to make loans
to

a

through the medium

rentrli^^ concept of

of

Act

cap

meFCe' industry' and agriculture
as expressed

Central Banking
System

Banking

authority to the Fed¬

exerts

st.eadf+ast has from

resolve that this institu-

"the

came

credit

Hn!!llpnf

tration of the Federal Reserve Act

Decentralized

that the

;

And yet that document W of ithas

°reaI eral Reservs
and

men

thenpubliUc1nte?eSerVln
A

of

"banker

of this experi¬

From the lesson

1935 and its

it

progressed with the
The genius of the Found¬

times?

confiFederal

is

nf

then

x.

institution

t
a
ters and to the dedicated

in

f

confronted

was

-maintained

Reserve

•

problems

four decades and

have

economic tur-

,

national

met

depression,

present age.

our

tt

of

mission

bank

ence

and

grown

Thursday, August

.

upon

example, when it learned the

manner

the fire of two

devastating world
the battering storm of ramsMf»r»nici+ion
nnrrncivn
speculation,
the corrosive

?*

purposes

institution

the

clearly in the vision of those who
are more temporarily recruited to

the

time

the coordinating
continuing expert per¬

functions

and

an

the

of

sonnel

States

new

then

hopes

ident

of course, possess

23,

For the

United
a

prog¬
been far less in

stimulus of outside opinion must,

into

Dec.

on

economic

over-all

Any national institution that
looks beyond its own official cir¬
cle for guidance and the critical

Act and

President

law

branches.

their absence.

Re¬

its signature

by

The Federal

their

and

would have

ress

the

passage of

the standards and

last resort."
„

System's contribution to the

nation's

the

.Federal
serve

policies.

serve-Banks

Congress
thereupon re-

.

.

of directors of the 12 Federal Re¬

the

suited

has met
of

vented fulfillment of its true cen-

of

liberations

years

utral

de¬

'

found it want¬

i

credit

and

organized and
ing.

the

practical lesson that the too rigid
•definition of eligible paper pre¬

(Reserve System is deeply indebt¬
ed
to
the private citizens who
have given freely of their time
and energy to serve on the boards

then

as

System

for

kind of interdistrict exchange of
opinions and merging of judgments that has led to the development of truly national monetary

the representspeople of the United

years ago

the

Reserve

>

■>

,

Forty

to

history, experience has been the
Federal Reserve's best teacher, as,

battering storm of rampant speculation, the corrosive calm of
unparalleled depression, and the social and economic turbu¬
lence of onr present age." Says System has grown with the
times and has lived up to its responsibilities. Urges independ- >
ence of Federal Reserve be preserved
tives of

led

original legislation,
that have
kept Federal Reserve policies and
.practices closely attuned to the
needs of the day.
Throughout its

country through the fire of two devastating world wars, the

i

This

cure.

dures, all within the spirit of the

history of the Federal Reserve System, and contends the Sys¬

'

to

adoption of administrative proce¬

Federal Reserve Board member reviews the four decades of

come

times, if we may judge from the
apparent public acceptance that
the performance of the Federal

kind

the

amendments of the Act and to the

By A. L. MILLS, JR.*

"not only

of financial

uisturbances it had been designed

originally

Member, Board of Governors, Federal Reserve System

has

preventing

:

tem

..

Hi)

•

•

(Special

to Ttie Financial

CORAL
L.

GABLES,

Chronicle)

Fla.—Albert

Albright has joined the

staff of

Victor J. Lawson & Co.

Form Estates In v. Co.
WASHINGTON, D. C. —
Investment
Company
has
formed

with

Building to
business.

offices

engage

Roy

II.

in the

in a

Estate
been
Wyat

securities

Woodside is a

Principal of the firm.

characterized its past history:

(1)

Its actions must always be

understandable.

(2)

Public

scrutiny

MICA Fund Distributors,

and

criti¬

cism of its policies must always be
invited.
I
•
<

(3)

MICA Fund Dist. Opens

Its policies must be based

engaging

in

a

Inc. is

securities business

from offices at 32 Broadway,

York City.

Principal.

John G. Haslam

New
is 3

Number 5352

180

Volume

...

The Commercial

and Financial Chronicle

Fall Business Will Be food: Hainan
I

H

H

Kvprnhvo

Pima nn

Vuul.Pm.U..i

and

Goodbye to Controls!

Henry H. Heimann, Executive Vice-President of National
Association of Credit Men, lists several favorable
signs which
indicate stimulation of business.
should

business

Fall

be

bit

a

fact very good in terms
of the more normal competitive
conditions of today, Henry H. Hei¬
better, in

from

than

comments,

said

and

Review.
"Those
who

sumer

work hard and

debt.

to

50%

his

be

doing better

in

confidence

of

is indicated

The
has

the

con¬

by

to

a return of
increase
his

decline

in' instalment

willingness

debt

old

years

been

slightly

reversed.

pleasure of
winning in a

"Unemployment seems
stabilized, the
textile

competitive

should

heard

be

not

Henry

complaining,";

H.

Heimann

business

est

A

The business

economist, weigh¬
number of favorable indices

against the unfavorable, concludes
that
the
"present readjustment
will be mild," and

and

we

Europe

experi¬

ever

enced."

<

he adds.

ing a

least

look up," and the tourist
trade "will probably be the
great¬

will

economy

at

notes that

high rate" of
spending for defense

government

also

purposes

cuts

is

Mr.

foundation"

economic
is

artificial

some

for

"there

stimulation

and

propping" by the government "to
hold it up."

the favorable signs he
lists the following:
Among

Heimann

"Our
been

inventory adjustment has
sound development. Com¬

a

mercial

inventories

trimmed
will

to

in

be

where
order

have

been

replacements

in

the

not

too

distant future."
He

calls

tax bill

as

to

the

help to business

a

and

business

in

individual, to the increase (though
slight)

executive

biles,

tothe

strikes,

to

outlook

the

fact

v

for

that

fewer
"com¬

good

of

ess

ly

the

its

past

measuring

the

overall

these

been

fact,

or

year,

far

,

in

average

a

better

than

competitive

since

is, in

Gordon Cummings

„

matorial

Government from

the

ain s international commodity

early

markets,

reduction

the

trols

over

instruments

Both

for

Graduate Bank¬
Seminar

at

petitive

fitted

were

in

dealings, capi-

currency

.

be

can

be afforded

given

by

Prof.

would need

main

Economics at
Cornell
Uni¬

versity,

ond

gloom

ally all

There have also

does

advertise

other

that

it

is

who
fluid

would
milk

in

the

have
has

us

been

This

is

not

support
out

his
that

contention
in

-

the

sumption

of

milk

relative

he

highly

competitive food market the
Dr. F. A. Pearson

con¬

to

all

foods

shopper, the housewife, knows
drink

during the fifties was 17%
greater than during the prewar
days. This striking increase was
due to an equally striking 21%
decrease in the retail price of a

with distinction!
She may crab
about the high price
of milk but she
knows it is inex¬
pensive
compared
with
other

quart of milk relative to all foods.

foods and she
buys more and more
it; and he added: "A favorable

this

decrease

Pnce is the most

milk

was

°f

important factor

increased

milk."

f
ot

purchases

fluid

milk

at

this bad

all,"

gloom

business

a reflection
and has no

Prof.

Pearson

"Furthermore,

most

of

publicity has been gener¬
by the dairy interests. These

apostles

that

price

*

1

_

_

trial

J

_

and

work,

for

largely

the

by

establishment of world conditions
of freer

trade

and

payments.

Investment Women of

Liverpool

Phila. Dinner

Meeting

PHILADELPHIA, Pa.—The Investment Women's Club of Philadeiphia will hold its first dinner
meeting of the
thp

Rp£?pnrv

£.1

t

1954-55

Room

^tel yon

on

become

as

more

relaxations of

been

build-

For example, indusagricultural building
1 i...

many

The

Monday,

Bar-

20,

gept.

'

1

years

most

se¬

for the Investment
>

isj

I

I Tnion

in

1

m«iia

v^rcun wnurn LiC&gu

sugar and

any

way,

Avenue.

bacon.

As trade has been
so

decontrolled,
import licensing has been re-

duced

to

mipiraum

only

the

guard

minimum

a

and

retained

balance

of

,

to

position has

retention

quantitative restrictions
goods,
But

especially
these

even

of
on

dollar
are

some

to

straints
V\

/A F*

4 +4

rw-%

position
ports

cut

these

far

as
nl I

allows.

has

been

as

now

many

Utah Uranium Brokers
'

LAKE

SALT
Utah

Uranium

formed

to

business.

CITY,

Brokers

Utah
has

1

Control

engage in a securities
Verne

,

H.

Eliason

.

.

is

the part of the dairy¬

the

in

price

for-whole

a

de¬

dairymen

re¬

milk

for

fluid

consumption, increased sales have
kept his income substantially un¬
changed.
"The
be

milk distributor may also

proud of his record," asserted

Pearson.

"Of

all

the

products

examined, meat was the only one
that

matched

the

of

marketing

a

decreased costs

quart of milk."

vacancies

cated at 2680 South 20th East,

of

Air

ex-

reduced

Cady, Roberts Admits
Cady, Roberts & Company, 488
Madison Avenue, New York City,

members of the New York Stock
I?ir aV\

A V*

lirlll

rf A

A/4

*Y11

4*

C

T<T* 1 a4 T

Exchange, will admit Serge Klotz
to limited partnership on Sept. 1,

New Issue

1,190,000 Shares

to,

and

engage

workers

through, Employment
Exchanges. This is to ensure that
the more important jobs do not
remain

unfilled

seeking

people
not told

The

GAS AND URANIUM CORPORATION

simply because
employment are

Common Stock

about them.

utility

schemes,

closely linked price

which

control

with

the maintenance of definite qual¬

Offering Price 25 Cents Per Share

ity standards for necessary cloth¬
ing, household textiles, furniture
and footwear, were ended more

Copies of the Offering Circular may be obtained from

than
of

two

years

ago.' In

the field

the

undersigned.

materials, the only controls

raw

in effect apply to raw jute,
jute goods
and
manila
hemp,
newsprint and certain paper; the
buying and selling of tinplate and

still

iron

and

steel

scrap

(excluding

TEDEN & COMPANY, INC.
t

Established in 1931

tungsten steel scrap).
A

large number of the agricul¬

tural price controls and allocation

schemes have been ended, and the
,1
1
T
1 1
'.it.
.

.

«

.

149 Broadway

a

.

Principal^ of the firm which is lo-

The only remaining

labor control is that employers in
most
industries are required to

result of increased ef¬

Although there has been
ceive

censing for construction of houses
to 1,500 square feet in area

—

been

much

remaining rethe monetary

greatly

1

imports.

slighter than they were two years
ago
and every
effort is being
made

the

of

firm.

safe-

payments,

importers have been given
the greatest possible freedom to
import from
any
source.
The
the

Whitehead

Principal

a

this

Private

of payments

William

is

Houghton

up

notify

■

=

up

is automatic.

in

season

of

restricted, is now license
to the value of £25,000
($70,000) per project, while li¬

of

a

»




retail

in

and distributor.

cline

of

gloom' should learn
oat
continued pessimism and a
negative outlook
h|kve no place in
selling a product."
An
example in the highly com¬

believes

Pearson

on

ficiency

lot of pessimism sur¬

butter

charged.
ated

Professor

man

?? toot is merely
the

oasis

of

governed

degree of international coopera¬
tion
that. is forthcoming in the

verely

To

world's sharp¬

a

ing controls.
A

free

out-that.

true,"
declared the Cornell professor.

•

rounding the

controls have been ended

considerable

pessimists

are

that

pointed

There is

production side, virtumaterials, price and

raw

plentiful.

adver¬

causing

the

and

bad

inade¬

a

On

lost

out-sold, out-maneuvered, out-this

pro¬

is

fact

tied

demanded

have

believe

Pearson de¬
clared that the

oulk

the

the

on

re-

Plentiful

materials

dairy world

tising.

est

now

be

balance
More

has

car

gaining position.

cause

quate

advertise

freedoms

many

user

/"There

laid the

milk

the

Ford,

thus

and

position relative to the Ford and

and

ducers to

controls

stored.

not

hand,

business

of

controls

Chevrolet.

sur¬

rounding the
fluid milk

the

the

that

cried the
pes-r

of

the

The Chrysler Corpora¬

Plymouth

these

list

to

the

government's

ad¬

does

^Ajjtoer Pr°Sress towards this goal
will be

and
ELIZABETH, N. J.—The New
among foodstuffs the only impor-: Jersey Credit Union League, Inc.
tant items likely to be still imis engaging in a securities busiported by the government will ness from offices at 421 Morris
be

book

over the last two
however, give an indiwide scope of the

of

to

tion

de¬

simism

was

vertising.

"

of

range

a

changes

their

in

in the difficult

and postwar years.

of

Pearson

Ithaca, N. Y., on Aug. 10, F. A.
dairymen to follow
Pearson, Professor of Agricultural

on,

and restrictions. An outline of the

world

the

as

bought and sold freely in
By end-1954 few items

could

full

The

is, of course, complete free¬
dom
to
produce; buy and sell.

added to those commodities which

will

all designed to
prevent
the
public
of
Britain
spending and buying more than

the

controls.

from

aim

London.

so

years can,

automobile

freed

be,

Britain's

ways

has been, and continues

among them lead, copper, fertll-Decor
izers and softwoods, have
been Woman.

and

One

and

projects,

The guest speaker will be Miss
have
been completely
or
June McAdams, owner and direcpartially restored to private trading, including tea, rice and, par- tor of the June McAdams Model
tially, coffee and sugar.
In the
Finishing School, Philadelsame
period 14 • raw materials, Phla. who will speak Ton
raw,
Dress
phia'
w,
sp^ak on Presf

tal investment, import and export

war

a

stuffs

system of financial con-

a

manufacturing

on

.sound, promising investment propitions have been encouraged.

for

spending,

personal

mam

second.

with

reopened

been

u

of

the

were

cation

Agricultural

such

May 18,
full or limited trading. Since
1952, 14 important groups of food¬

quantitative or monetary,
combination of both. Ration¬

a

.

.

„nn

ing, licensing, quotas and bulk
buying came mostly within the
first category.
Price control and
taxation, as a means of indirect

Dairy Industry Victim of Bad Publicity

Addressing the

That

lower,

..

trade

ers'

year.

much

now

food

.

"

econ¬

of fluid milk could

40%

The freeing of production and
consumption has, as its counter-

either
or

omy."

able price to the
consumer, the purchase
be increased.

about

Cotton Futures Market

the

Prof, F, A, Pearson, of Cornell
University, tells the Graduate
Bankers Agricultural Seminar more and
better advertising
by dairying interests is needed, and, by
maintaining a favor¬

is

to

Par> the restoration of private
TTnfteH Kins" fading and the reopening of Brit-

,

,

hZ
dom

has

fixed.

matter of time.

a

1951

rationing has come to
an
end, for in this big and im¬
portant group only the prices of'
bread, milk and potatoes are

sub¬

only

are

beginning of this

in

proportion

part

now

Market

to

outlays dropped from

70%

at the

United

T,

"a

as

price

incentives

all

only

ject to any kind of restriction.
Further relaxations are scheduled

balance

1954

to

other

about

exten¬

so

economy

business, the economistevaluates

restricled''bash?and'tovestment
Thus, in manifold

of consumer

has

range

currencies has
concessions have

Union

resumed;

haZf' tG°v"

the industry is

rationing and price
controls on personal consumption
have disappeared.
Price control

accelerated

in

arbitrage

important European

more

bfocked^lerling^fhe Londo^Gold

feeding

Restoring Private Trade
Almost

to

out¬

being

is

area,

deal in dollars;

now

the

Payments

home production of

encourage

decon¬

trol has great¬

reflecting the lower

Nevertheless,
elements

and

sterling

economy

ingdom

10.000
discount houses with $8
billions sales, and the world situ¬

in

1939. The proc¬

K

farm income, the
increasing busi¬
ness failures
as expected
after a
defense era, a low backlog of ma¬
chine tool orders, the estimated

sheet of

in retail sales of automo¬

to

the

emphasizes
"measured over

can

foodstuffs.

small

On the debit
side, he cites the
continuing
decline
in
business
loans, the sharp drop of mail or¬

new

econ-

the

only

countries

with

stearily relaxed. Authorized banks

have

limited

mainly

guarantees

a..

ation, "anything but comforting."

attention

touay

sive that

also

side

exchange

been

cereals,

t0

since

y

of

other items

and

eii,„.eni concern m

e,d

year

retail sales,
period of years, are holding up
at a very good rate,"

der

British
o m

tne

stuffs

Freedom

applies

which

transactions

been

importation

last

have

g o y e f.p

with

fiscal

a

fall improvement "will
wholly rest upon a natural

which

Britain

in

^ 'tnf itf T
of
controls

scraDDins
strapping
scrapping

predicted,

that

not

the
Uhe

the

for

1955."

expected

rationing

of

"fewer

the

LONDON, Eng.—The ending of
meat

two years, and

"reasonably

control,

being steadily relaxed.

years old.

supply and dollar re-exports.

On the financial side,

on personal con¬
Describes exchange control as

sumption have disappeared.

housing
dwellings

20

of de¬

process

to

mainly

of

Aim Is Complete

that almost all
rationing and price controls

may

the

our

over

30

over

"The

the

enjoy

that

Cnmmings maintains greatly accelerated

materials, only
controls still in effect
apply to jute and manila hemp, news¬
print and papers, and tinplate and iron and steel
scrap; and

govern¬

boom

short

control has left only small
part of the U. K. economy subject
to any kind of restriction.
Reports that in raw

peak," the an¬
"but it is well

two-thirds of

predicts in his
Monthly Busi¬
,

its

remember

field
are

other

construction

reached

to

By GORDON CUMMINGS

Mr.

confined

now

strategic importance,
home-produced capital goods in

»

anticipated."

have

National

1

distinguished

as

are

alyst

Association of
Credit Men,

M»-

and

exports,

The

tive VicePresident of

ness

exports,

defense

mental

Execu¬

mann,

the

mercial

C

_

is

goods

Dlgby 9-1348

New York 6, N. Y.

II

The Commercial and Financial Chronicle

(690)

Thursday, August 19, 1954

...

t

Eisenhower

the principal expressions of the
progressiveness of the American

Opiimisiic on Business Outlook

Average
moved

"numerous signs

are

have

.

+9.1

+

+

9.2

+

1.8

+

hower,

Dwight

Eisen¬

D.

3.8

brief

.—

+0.4
+ 0.9

first

*Froui

.

in¬

cluded

half

half

of

first

to

1953

dicated, shows

facts that the recent economic de¬

nation's

cline,
been

on

basis,

overall

an

has been in

tion.

prosper -

condition

"than

during

earlier
Pres.

time."

.

Eiseauowcr

while

Thus,

1953

the

text

of

confronted

would

these,

times

a

period

And

if

as

prosperity.

cocktail

our

Willard

miracles

economic

being wrought.

of the American economy
rxi.iv.rrwc.il

activity has

come

six

months

Reserve

index

to

halt.

a

industrial

of

duction has moved within

back.

pro-

an

if

tive

T£f
The

first half of 1952 was

(2)

125

view

In

dustrial

past

six

take

an

months

of

this

months,

of

average
as

we

justly
the past six
may

indicative of the recent

this

interest

of

with

level

to

that

,

PER

CENT

decline

attained

oy

national

Gross

product-

income-

Personal

since

judgment about the state of the
We must bear in mind

a

1952

this

before

economy.

office,

that the widely used Federal Reserve index of production Corel's

activity
than

+8.8
+5.3
City + 10.2

it

at

(12)
greater

any

that

economic

higher
time before this Adhas

on

an

affected
com-

in

our

suffered,
while
prices and incomes

been

markbts

export

and

production.

Korean War, as the following

indicators of economic activity.

Stable

Price

Major

The

these

Indices

most

measures

of

CIVILIAN

AS

CENT

PER

LABOR

•iicators used above
alx>

significant

of

in

a

physical

are

unit,

f xi

1

5.0

t.2

Apr-Jane

5.4

a-y

6.4

one

in

a

the

r

.,

of

..

toe

.

.

nations

commodities and

(B)
men!

A

of

output

Non-agricultural

employ-

(as estimated by the Bureau

of Labor statistics)

—

which

ex-

presses the number of wage and
salarv workers in business estab-

lishments outside of agriculture.

of

K,dlvldual

say,

con-

we

can

and

debits

outside

New

This conclusion also holds if

we

City—which express debits carry comparisons one year furindividual and business bank ther back—that is, if we compare

accounts,

and

thus

measure

toe

flow

of money payments in industrial. commercial, and to some

toe first half of 1954 with the find

half of 1952.

On

this

basis,

by

because

thev

aro

rfmr*maf#>c!

^

,

fte&SLSr-"
economic activity

hftr

half

of

iowmg

19-93.

we

obtain

results:




Vle
the

fol-

dollar
crease

has

has been at
stable,

the

was

Reed, Inc.

(14)

The

our

very

than 20 sjch compa¬
nies which have formed a syndi¬
cate
known
as
American
Syn¬
thetic Rubber Corporation to

among more

necticut

firms

Manhattan

Raybestos-

are

in

Stratford; Seamless
Company of New Haven,

-

Products

Rubber

of

Derby;

and

Com¬

Goodyear

8.2

in-

in wages—which is one of

age
departments.
The company
specializes in production of long-

fiber

opened

sales

rising again.
on

capital

improvement

are

$200,000 plant for

new

a

production of

new fines oi

footwear

plastics products.

and
*

Flexible

*

rubber

standards
to

started

that

work

*

on

additional

*

were

plant in

will enable the company to pro¬
duce its entire casting require-^
ments.

Wallace

*

&

different from those that
that

will

we

«

s

commenced

mill

tube

new

Bridge¬

of

port Brass Company. The company
also

in

line

new

the

Eastern

in¬

will

market a

fea¬

utensil

kitchen

of

it

that

announced

troduce

turing both copper and stainless
steel.

The

produce
*

new

compo¬

new

paper

of 6%

convertible

mulative

at S10.50 plus
payable at the

York.

Irving Trust Company, New
Prior

to

cu¬

preferred

for redemption on

1954

17,

accrued dividends,

16, the stock was

Aug.

convertible into 1.5 shares of com¬
mon.
*

s

«

New
arrangements

Company of

made

Haven

has

for the

long-term lease of a new

warehouse under

plan.

The

a

sale-leaseback

company

also an¬
meet¬

nounced at the stockholders

ing on July 20 that some 15 new
agencies have been added to those
*

*

*

Company
developed a new
has
called Phon Audograph HI. The
machine
which
is
in
the low
I Gray

has

Manufacturing

recently

dictation

priced

*

$1,000,000 plant

instrument which it

field

utilizes

w

ill be

maxmg

ma¬

which
to

12

ments

can

a

single

recorder, to

centrally-located

constructed in Windsor Locks for
C. H. Dexter & Sons. Inc. It will
a

issue

entire

its

has

Inc.

Industries.

Eastern

called

Walling-

jet aircraft engines.
*

new

house

of

5,000

entire

selling its electrical' appliances.

*

Sons of

Corporation.

our

an economic sjstem

those

Aviation

A

stock

price

a

have

Operations

A. C. Gilbert

Bridgeport is currently being ex¬
panded by the addition of a S6.000,000 foundry addition.
This

R.

at

subscribed for.
«

the

Machine

offered

The

share.

shares

*

The Bollard Company's

is

per-

employees
a

at

*

recently

materials-handling devices.

nents for

the

its

August

warehousing and shipping facili¬
ties at its Guilford plant.
The
new
plant will include modern

♦

future

t

Britain

New

stock series A

*

Tubing Corporation

eco¬

Retail

papers.

$24.98

The last named firm has recently

5.1

has

equipment from

as

Company of Middletown.

2.4

signs of

well

as

rewinding, shipping and stor¬

to

are

2.3

apply

from

the

products

related

and

3.0

fathers applied and even dif¬

ferent

chine

Company

2.1

be connected from

individual

one

dictating instru¬

resembling

standard tele¬

phone handsets.

our¬

selves

applied only a few years
It is a good thing that our

ago.

standards

nomic

are

and

will not

be

insitive

higher. Great

social

to

^

^

made
^

unless

we

are

ma"m'

aem
-

I

-\j~

eco¬

achievements

,

.

g

■

-

f

Primary Markets

m

milestone m contractive

f

legislation. It will help to reduce

directions.

In

the

months

and

years ahead, we must continue to
bring knowledge, cool judgment.
and

a

concern

for

people to the

CH AS. W. SCRANTON &
Member! .War

CONNECTICUT
SECURITIES

\

New York

Hartford

—

CO.

Sioei Excb&tge

New Haven

pr^ser

SSSMAJkSM
a

3=1 ^ value oE (he
been

previously with Waddell

&

producers of

-.8

the

index of wholesale prices is down
degree, financial transactions 13tSr and the index of consumer
(New York City debits are omit- prices is
up 1.95c.
ted

Connecticut

rubber

pany

lnventories have
and
now

generation
are

York
to

ag0

...

surely

Bank

Four

2.9

and

significant feature of recent formance of
"iTow hi/thw
If
these
wp

the staff of

He

$

company

family incomes tradiction, that the value of the
minus personal income tax paypeople's money has remained enmerits.
tirely intact
(E)

in

but our measures of deuce in the economic
pnee movements fail to take ac- high and improving.

^ simply the sum of all without the slightest fear of

mdividual

completed

be

to

5.0

cr?ases

markets.

has joined

Vila, 7618 Raleigh Street.

The

Rubber

4

a

Smith

Louis A.

August.

ford, manufacturers of silverware,
has recently formed a new subsi¬
diary under the name of W allace

(Dl Disposable personal income developments
j

$300,000 plant

5.2

expenditures

expansion

,dlsc0,utlf'

-

expected

The

5.5

numerous

Business

19p,

(C) Personal income—which is 5°unt.
concessions.
; SrwSJbargam sales, etc., that have been

a

prod¬

division.

find
*-*e.
^
adjustment to current sales. The
.P^ees *s UP »■»* an?
financial markets have been disconsumer prices is playing great strength. The level
UP
*
or"-v are Laese in- 0j business and consumer confi-

jtim-tL

STd family ^Somes
fanSv incomes.

Danbury for its aircraft

2.8

bav? rec<!ntl>'

I^en we comjmre toe first half

of 19>J witn toe urst haU of

services.

plant

a

3.2

^

^

total

Moore,

&

new

ucts
is

Maxwell

constructing

Sponge

/

following: monetary unit. It is well, therecontinuing at a high rate. New
(A) Gross national product— fore, to say a word afcmt the construction
contracts
are
runwhich expresses the dollar value price level.
ning well above the level* of a
are

in

is

3.8

improvement.

in-

ressed

others

been
Up¬

137 El Camino Drive.

Manning,
Inc.

OF

FORCE

1949 1950 1951 1952 1953 1954
Jan-Mar.

is

Level

the economic

Calif.—

has

WESTMINSTER. Colo. —James
A.

Rubber

CNEMPIOYMENT

nomic

(8) Some

HILLS,

(Special to The Financial Cheonicle)

Connecticut Brevities

•

manufacturing and

(4)

Joins Louis A. Vila

purchase a synthetic rubber plant
Unemployment
is
now
than during the time of from the government. The Con¬

took

late

has

has

hgures indicate.

year

Administration

foUows

of

the

small

it

and

shrinking

best

was

been

^en larf" tha"

or

Main Street.

the

to

the staff of Harris.

ham & Co.,

with

Jr., 518 4 North

Fitzgerald & Co.,

Roosevelt

E.

to

Burton

—

affiliated

William E. Conly,

(Special to The Financial Chsonicle)

past.

our

It is clear, however, that Em¬
mining; ministraUon assumed responsSbil„i!.ls clear'. nowever, that unthat itomits constructionagr.culit
And since 1953 was a suu empioj-mentm recent months has
ture, transportation, and the great better
year than 1954 is turning "ot
personal services, and out to be, it follows that the over- ®)ar
months m 1949 and 19o0.
that the omitted parts are much ad
performance of the American
Retail Sales Rising
more
important sources of em£Conomy thus far during this Ad(13) Moreover, the rate of un¬
ployment than the included parts. ministration has been better than
It is desirable, therefore, to look
employment
has
shown
some
during any earlier time.
at more comprehensive measures
tendency to diminish of late. This

only

added

Colo.

become

has

Ray

Inc., 232 North Canon Drive.

has

have shown the adverse effects of

(3) Making that comparison, we
Every one of these indicators
that
industrial
production $hows a rise, and some of the inhas been running 8.1% lower
jn creases are not small.
But in forming

been

Conly, Jr.

than

that, while the

groups

income

debits outside X. T.

Bank

has

unbalanced

personal

decline

industries,

disposable income—

capita

js ajso

agricultural

jtind

1S54 than in 1953

has

staff of Cantor,

added

society. Factory employment, particularly in the durable goods in¬

—

Per

we

With William E.

thp

advertised

munities,

+3.3
+4.4
+1.1

Non-agricultural employment.—
Disposable

joying the greatest prosperity
have yet known.

Fitzgerald

PLVERLY HILLS, Calif.—Julius

is partlv that

reason

over-all
basis,
seriously some

compare

the economy during the first half
of 1953, when our nation was en¬

that

major declines of

-pbe reason

dustries,

,

1953

previously with

was

Eichler & Co.

Bateman,

(Special to The Financial Chsonicle)

(Special to The Financial Chsonicle)

Reitkopf

staff

people is geared

mtoor

better

many

CHANGE

production

The

progress

been

(From 1st half 1952 to 1st half 1954)
Industrial

July

and

T

many

^Tather

lows:

level of economic activity. It then

becomes

emDl0vment

(7) If we now compare the first
half of 1954 with the first half of
1952, the showing of the rather
broad
indicators
to
which we
have already referred is as fol-

narrow

after

South

LONGMONT,

With Cantor,

the

Securities, Inc.,
Spring Street.
Miss,

Christensen

' •'

'

joined

Eo "he gCoLept ^rZinterfupted

-

fluctuation in total inproduction
during
the

of

range

Beane,

has

of Pacific Western

contem- Joins Harris,
Upham & Co,

our

in economic activity particularly
-.

At the be-

range.

the year the index
(average 1947-'49=

of

occurred

thinking of

tensity of activity but it was the
best yeai we had experienced
prior to 1953. Therefore, while
100). In March and April, the 1952 does not provide us with as
index registered 123; in May and high a standard as 1953, it still
June, 124.
, constitutes
a very high standard.
narrow

ginning

Merrill

&

Fenner

;

George
cline

not characterized by the same in-

ex-

Johnson,

BEVERLY

of the economy in better perspec-

For

Federal

the

eve¬

LOS ANGELES, Calif.—Elsie H,

.

(11) -Not all of

during

z ss rsu? s
the'last

town

chairman of the event for this

year.

a tlma ,when

1954.

A.

Lynch, Pierce,
is

srnment expenditure on national
security dropping nearly one-fifth
ln ?.
he might well have descl',bed tbe last year or two as

of

out

ning, Sept. 22.

of

.

for

party

guests to be held Wednesday

t5ssjsss«(«»sss

tremelv

Bankers

In judging the performance

(6)

the President's statement follows:

flood ft

(Special to The Financial Chsonicle)

take account of the difficulties
sifting from a war to a more
nearly peace economy, with gov-

total

the first half of

and

if

as

hesitation in describ¬

.

were

The

With Pacific Western

Association

imaginary historian had stopped

very

disposable personal income increased
1.4%, the disposable personal income
per capita declined merely
0.3% between the first half of

a

such

no

recent

great

has

ministration

dur¬

ing his Ad¬

any

Realty Fund. Inc.

634

generation,

facts

ing

small. This conclusion
will not be changed if we take
account of the increase in popula-

ous

been added to the staff Of Inves¬

Christensen

have felt

Calif.—William

C. Black and James M. Lavin have

OMAHA, Neb. —The Nebraska
Investment

a

with

Small Overall Decline

It is fair to conclude from these

more

|

The above statistics sug¬ of Omaha and Lincoln have
high—or even an improv¬ scheduled their 1954 annual bond
ing—state of economic welfare. party for Thursday, Sept. 23 at
An
economic
historian
of
an
the Omaha Countiy Club with a

which, he in¬
the

4.3

gest

1354.

of

of statistics,

economy

_

Annual Bsnd Parly

5.3

+

J

.

LOS ANGELES,

(10)

+1.4

set

a

+

+10.8

construct.

trade

look forward

may

Realty

(Special to The Financial Chsonicle)

earlier

the

t,

President

income

+13.3

Retail

♦»

—-

Disposable personal Income.^.—
Bank debits outside N. V. C.ty

Personal

state-

m en

Building

—3."!

product

Non-agricultural employment—

setting forth the mid¬
economic conditions. In this

year

national

Gross

Aug. 12th, made public

on

statement

a

With Investors

do

tors

2.2

+

Non-durable

% Change*

we

.

2.9

Durable

President

we

Nebraska fnv« Bankers

1953-1954

1954-1954

BKfg. total

prob¬

that

measure

.,

I % Chge. from 1st half

decline in economic activity has come to a

recent

earnings

economic

of

the

In

with
great confidence to the future.
M

improvement," together -with indications that wthe
halt."

of economic

hourly

follows:

as

lems.

this,

economy—has continued.

In statement issued from the White House, President recites
series of statistical data in which there

consideration

REetor 2-9377

JAckson 7-2669

Teletype NH 194

Volume 180

-Number 5352

..

The Commercial and Financial
Chronicle

.

men.if

In Praise of the

state

Housing Act

'

.'

I ' ■

FHA

administrator, asserting for the first time we have a
coordinated housing law, describes
recently enacted housing
Lists liberalization features of the

act.

act and

tion and rehabilitation of homes threatened

the

first

have

now

time

in

denied

The otner

adequate

and

new

been added to encourage the
pro¬
duction of low-cost homes. V

It

housing.:

provisions have )

new

will help them

Tne first makes 95%

mortgage

keep their
in up-

insurance available to

homes

occupant, regardless of his credit

to-date condi¬

standing, if

It ..will

tion.

tion with

help them re¬
habilitate the

standing

fine
which,
through
past
neglect, are a
blight upon
communi¬

.* government

ties.

of

families

may

-

that

will

the

of

in the

homes

new

rehabilitation

sale

and

permits

of

under
Thic
rms

{net

tim

™/iii
will

been

wf

,„Kof

and

needs

to

?

cf

mt

housing

h

Association,

and

mortgages

an

•

for Federal investment.

The period for paying back the
has
been
extended
to
30

A New

the

that

u.,,,.,,).

mpnt

In ctuuiuun, 11 esiciuiisiies a
111 addition, it establishes a

-n

J.

fm 1Sj $.
erest and mortgage

'

new
new

m-,be

mucj1

likely

m0re

to

it—

get

mortfrncJ? enf\lum*
the ^ame wherever he may live! Not only
tbp mn!LUn
a +°~year\ J61*111 will this channel money into the
been $67
payment would have smallmake mortgage moneyitavail¬
communities, but"
will
also
Limits

individual

homes

have

been

increased—from $16,000 to
$20,000. This will help our families to have better homes.
New

program is just what its
implies. It comes into Being
at the suggestion of

"

to

insure

make

this

those

to

mortgages
of

I've

authority

to

lacking in

some

owner

home

of the

been
munj^es where local capital may
insure
-n short suppiy.

old

Now

it

hofr.es

and

where

it

in
is

small

•

Hcusi

requirements

tary

surance
iri

of mortgages

built-up

urban

buyer

of

may do

or

the

to

in-

housing

on

areas.

The

of

cne

lay his

his

these
own

low-cost

landscao-

nf

those

desirable

servic

uniforms

*An

address
the

Lake

Utah

Commissioner Mason
Housing Administration,

by

City, Aug; 12, 1954.




to
of

"fringe

'government-,
tbat

a

is

be_

decent

a

fringe

..

seems

benefit.^
trained
.

l

added

benefit
home

Salt

.

^

men

And

we

^tract

essential

and

new

liberal provisions
exist¬

mortgage insurance on

from

Government

wrecking

business

in

before

the open end mortgage—so
because

the

based

is

estimated

of

in

the

urban

They must have

project which

completed

Loans

is

talk

habilitation

homes

the

about

and

the

and

of

sale
new

re¬

older

to

program

property values in older

preserve

may

meal

and

neighborhoods.

ables
up
or

- wide
in
that piece¬

ineffective

thrusts

know,

We've
show

the

how

much

they

cost—they

from

people

I

to

paint

use a

carpenter's hammer
than to wait for a wrecking crane
do

a

different

a

terms

of

dollar

be to

•

is

done

to

Administration
clean

ing built in the postwar years.
I'm

job

tne

upon

They

cause

hope.

They

Americans

offer

to

choice

lose

We
sure

doing something to be

are

that the will of the Congress

Continued

targets

on

page

for

buying' older homes as
provided for buying new
On a $6,000 older home,
for example, the down payment
under the FHA now i$ only $600

Notice

Third

To Holders of

the
modernization

will
and

encourage

German Dollar Bonds

"like

home for reconditioned

old

new" homes.

another

There's

which

thing

Validation is the essential

you

under the

terms

of the

prerequisite for benefits
London Agreement on,

German External Debts.

Mormon faith as well as the other

people of Utah are noted for this
in

all parts

of the country.
Allan Brockbank, of Salt Lake

during

City,

the

of

dent

a

lot of

Fed¬

programs.

Form and

Explanatory Pamphlet, may be

obtained

from the

Validation Board for German Dollar
in New

York,

or

Bonds

from banks, brokers or security

Commit¬

the President's Advisory

involved, with Registration

and he

sense

lot of converts. And when

a

A list of the 92 issues

this

preached

clearance

slum

on

Presi¬

as

Association

National

He made
made

term

connection with

doctrine in
eral

his

Builders

Home

of

Government Housing Poli¬

dealers throughout

the United States.

and Programs

made its rec¬
ommendations to President Eisen¬
cies

last

hower

the

winter,

recom¬

we

Brockbank

tvpe

of

period of registration for
validation of the 92 issues involved

NOTICE: The

approach to the problem of slums.
We

good

if

we

it

slums

clear

to

areas

ever

that

reasoned

were

did

in
we

little

certain

creating

than

faster

them

has keen extended to August 31,1955.

could

hope to clear them.

retain

in the military
must have the trainee!

We doubted the wisdom, too, of
Federal money into
communities which showed little
,

directing

or

no

inclination

halt the spread

of their own to

VALIDATION BOARD FOR GERMAN

of blight.

30 Broad Street

A great new program of urban
renewal in the Housing Act of

1954 is based upon

H- i?

restricted

these concepts.

Douglas W. Hartman

communities

United States Member

to

I

which

are

their own

doing something
to fight slums.

For the first

-

all honest businessmen

sure

applaud the action of Congress in

marks

abject poverty and human misery.

homes.

isting homes
enlargement

has

the unfor¬
tunate system which developed in
the FHA in the rush to get hous¬
up

prooerty.
Well, the new1'Act provides
substantially the same FHA bene¬
fits

U

save

existing housing.
you also would rather

to

in

The effect will

risk.

Eisenhower

But their costs cannot be meas¬

ured

his

writing safeguards into the new
good alone. They spawn juvenile de¬ housing law which indicates the
V believe that linquency.
They breed disease, course FHA must follow.

wanting

and

I'm

think

we

repair

One of the healthful things the

know

Utah,

of

believe that

to

in

alike

what

to $2,500 to enlarge, modernize

Safeguards Against Abuses

reduce the property values, which
are
the tax base; they drain off

that the

But

program
which en¬
home owner to obtain

improve the program. *

which

statistics

the

of the

which feed
seen

provi¬

property. Lending
making loans for
home improvements
and repairs
for the first time share a portion

that slums are
upon neglect.

too,

a

institutions

at

slum pockets will not do the job.
We

such

There's also the FHA home im¬

provement

program.

all

know

contain

now

sion.

workable plan

a

or

mortgage to
pay for repairs,
additions to the

property. Where state laws per¬
mit,
FHA - insured
mortgages

community

We

scope.

cancers

let's

renewal

called

outstand¬

the

to

improvements

per

amount

of

increased

be

*

the

allows

its

balance

ing

a

w^o wear toe umiorms ^

lieve,

before

tbat

d

m

rec-

their couni; y.

walk,

front

1954

The

pear.

for

the

to

percentage
of

elsewhere

make mili-

for instance. What
he saves may
make it possible for him and his

own

to
to

Bill of Rights.

„

homes

ing

$1,800

mortgage
a

Now,

obtain
nmnprahip
comparable

2

ogmzes,

hpln

available to veterans
j

practical to demand
conformity with all o?the
essential

2

p

terms

^ G

1

The

communities

not

on

will

arm

made

those

V

new

the

men in

of^great t
outlying

with

room
has
Cities are required to have and
$2,250. In the to exercise appropriate codes and
of soundness, the insur¬ ordinances in order to
participate

mended

Aft'other

is
f

partners

more

advantage

increased

^

Ple-

mu.

*

d of the pe0-

the

ernm

$6 650
u
This program will be
help in suburban and

example of industry
d in hand with gov-

h

S

wo

later

maximum

$5,700.

was

".

low-cost-

the

program

areas

of

enables

Rehabilitation

tee

amenities

add

may

Under the

mortgage

resi-

for

funds

cf

flow

to 95% of the value

up

which

himself.

wm fadu_

ciefttial mortgage loans into com-

semi-completed homes—homes
the

nders and reai

the

tg

subcom-

"gl°nf'd"nginThgy

work

program

themselves,

new

regional

P

.

help

JJd

stituu

for the benefit of
those who want

given

tation
been

thejpr vate

lender.sA
committee

mortgages on

lower cost homes to
help
whose needs are greatest.
To

credit

name

authority has been given

the FHA

increased

people have in common with
the
people of my native New
able to minority group families. England and that is your reliance
The voluntary home mortgage upon self-help. You people of the

the amounts of mort¬

on

for

gages

become

voluntary home mortgage credit of homes and the
purchase of
program now the average citizen
larger older homes.
They will
who wants to borrow money for
Pr!n~' a home from his local lender will permit people to trade in their

nn

Hnni

amounts

Voluntary Home Mortgage —just half the former amount.
The more liberal terms for ex¬
Credit Program

5^1
W
<MnInn mof1thly payqn.vMa ?' ' ? "i*??tgagc under
smaiipr

com¬

those

Provides it ofthe gradual substitufor private investment
tion in

big

pro¬

help

to

symptoms of
apparent.
It is equally important to stop
slums before their symptoms ap¬

fami¬ saving all properties which are
of" the worth saving and upon preserv¬
economies possible with this type
ing the properties in our older
of financing.
The previous limi¬ neighborhoods.

brush

families.

Mortgage

f

loan

a

farm

our

recognition
the

c1111^ tor n®17le mortgages,

have

JV

means

given

FHA: to

tse

and

the Federal secondary market fa¬

S

This

Congress

have

the

National

j

who

savini„

bp

take

inclined

,rrZ, needed. It rechahters the Federal

accumulate

own

years.

Act

to

public high-" about' you

a

ne™ Aet-,WM
T-"
gaga aredlt available !?hebe
"?

newly-formed

others

unable

the

within

now

;

i

rmr-

our

to

—

President

legislation

previous

horn

help

families,

part or

construction

way.

smaller

$12,000 home, for example,
*1900

adjacent

acres

down payments and longer terms.
The minimum down payment on
i<5

net

of

The employer

the

encourage

Thus,

law

new

the

know.

and

Provisions of the New Law
The

back

pay

renewal

urban

new

undertakes

slums already are

of

existing homes.

a

stand

government.

borhoods where the

land

or

I have a feeling
municipal revenues, far out of
Housing Act of 1954 talks
proportion
to
what
they
con¬
low-cost homes makes 95%.
your language in this field, just as
tribute; they demand greater ex¬
mortgage insurance available to it talks mine.
penditures for fire, health and
finance the construction of farm
I'm
a
New
Englander,
you
police protection.
homes on'sites of five or more

will

it

records both

new

construction
in

will

the down-payment,
The other new provision which

permit
America's
great
home
building and. lending industry to
establish

been

lies

matter—the

be permitted to

buy homes because of4 will
confident

am

mortgage

good

all of

American

be able to

I

Mason

p.

Norman

ad-

ditional
it.

that

the mortgage also,

Many thou¬
sands

of

officials

.

...employees,,,for

The
gram

The other major multi-family which are too far gone to respond
housing program provides mort¬ to rehabilitation medicine. - But
gage
insurance to cooperatives: the emphasis now will be upon

corpora-* interest

employer

neighborhoods
slums.
A
com¬

of

undermine

would

who

form

ing homes will help to do this.
the It will encourage repairs and im¬
they provements to up-date the ex¬
$7,200 to $7,500.
The increases may receive help in their efforts isting inventory of good homes.
simply admit that costs have gone to fight blight. Surgery will be
The Housing Act of 1954 adds
up*
required upon those properties another new tool in the form of

value

an

in

by

entirely different governmental action—such as the
rehabilitation closing of
dwellings by public

Federal

satisfactory credit able
payment of on

if

homes

those

to
our

the

instead of a percentage of esti¬
credit standing is willing to stand mated
replacement cost as here¬
back.of the mortgage for:one of.
tofore.
his employees—or for a group of

.

of

must

guarantees

Thus,

.

homes

our

or

the mortgage.

:

many

person

a

owner-

an

insure mortgages for
and renabilita-

acquisition by a
public body for highways or other
housing have been in- public use.
Gone is the dogma that cities

rental

kas

them,

to

tion

unit for projects of less than four

by encroachment

to have that new home
which otherwise would have been

ing law. It will help the homefolk of America to have desirable

to

construction

JJe.ansed room. $2,000 a room per
from The maximum to
a

history, family

coordinated hous-

a

an

of

$2,400

safeguards against these abuses.
For

now

re:sale of listing housing.

*/r

of slums.y Lauds what Eisenhower Administration has done to
clean up abuses in FHA
housing projects and

points out

tnat

Maximum
lor

time, it authorizes FHA to insure mortgages for the construc¬

we

conditions

FHA

threatened

switch to

we

field,

for first

says

the

15

We've
been
program
authorizes
the: munities which are doing some¬
discussing
new panion
sales-type
housing.
Let s
talk FHA to insure mortgages upon thing about their slum problems.
briefly
now
about
the
multi- moderately-priced homes to house It
will
encourage
the rehabili¬
family housing programs before the families displaced because of tation of homes in older neigh¬

Commissioner, Federal Housing Administration
'
•

world

that

preparedness the

military

require.

New
•

maintain

to

are

we

of

wnich

By NORMAN P. MASON*
•

(691)

on

time, it authorizes

August 18, 1954.

DOLLAR BONDS

New York 4r N.Y.
Dr. Walther Reusch

German Member

27

16

Financial Chronicle

The Commercial and

(692)

More

Emphasis

Retailing!

on

Business Administration

Small

Administrator,

By WALLACE

'

1

STBEETE

Some

Head of Small Business Administration reveals his organiza¬

and

wholesaler

their

business

Evaluation

Customer

Petroleum shares

improve their marketing techniques and
Describes project known as "The

to

Program."

Foresees vast

from recent downward movement.
business potentials ahead.

recovery

carved

vances

thin

thought-out

especially glad to speak to

am

at this

techniques

period,

ers

because,

our

policies in the Small Business

very

the

the

on

dealt

Evaluation

Customer

Another project which the Small
Administration

Business

is

interest to you, as retailers.

manage-

what

m e n

t

something
which should spread all over the

aids

problems
the manufacturer.

mind

and
in

ance

of

and

Just

.

'

from

have always had

we

wholesaler

rendered ? them

lending

our

tried

been

successfully in my own state
of Oklahoma, by the University
which we reg¬
of Oklahoma, under the title of
ularly publish
—w i t h
the "Hi, Customer!"

Barnes

retailer

is

out

brochures

:the

It

after having

country,

—pamphlets

"Of course,

Program.

businessmen

in

the :countryr in
the National Board
Consultants, in particular, it

general,

assist¬

program,;

Agency seeks advice
potential cusomers—the

as our

our

of

;

be well for individual busi¬

may

seek

nesses

to

whom

We have also had them in mind

of

and

they

advice from

those

have been

tangibles guaranteed to stir the market.

some

for

with

rather

that Iranian

production could
be resumed without upsetting

split plan. It not only posted
an all-time high on the news
but

to 25-year highs.
quality items as Allied

averages
Such

also succeeded in reach¬

Chemical, General Foods,
petroleum balance ing a level equivalent to more
Corn
Products, Eastman
than doubling in price in a
unduly. The market response
Kodak, and Procter & Gamble
of some of the leaders, how¬ few
years.
Its last capital
made something of a habit
of
ever, was positive and spir¬ change was a 2-for-l split in
dipping into the minus side,
ited. And it has been some 1951.
*
*
*
occasionally with sizable
time since this was the case.
the world

It is

call the Customer Evalu¬

we

ation

and

technical

f

just

launching, should certainly be of

almost

our

B.

small

for

exclusively in

-Wendell

and

waste-motion

Program

have

we

we

sales

as

record-keeping

productivity

re¬

tailer. Hereto¬

fore,

least

The

empha¬

new

sis

and

most

ening out with
a

how

business.

broad¬

are

the

with

Administra¬

tion

views—on

approach subjects such

can

of

Blue chips had their
share
spotty price in¬ Thompson Products was one
of troubles after their
sterling
gasoline, along issue that moved well on a
performance in carrying the
nebulous hints

included
creases

I

this distinguished group of retail¬

market

transactions

least so far, without
excessive
vigorous ad¬ fluence recently, stock splits price fluctuations.
dividends were almost
out of rather and
*
*
*

The

evidence.

Apart from mergers, which
a major market in¬

the

were

stock

the

week with

this

Holds business conditions

improving, and lists statistical data indicating trend of

are

of

wonder

methods.

sizable

15,000 and 10,000 shares at
a
clip were negotiated but, at

intensify its activities to help the retailer

tion will broaden and

•'1

Service, Packard, Graham
Paige, Electrical &
Musical
Industries, American
Cable
and White
Sewing Machineall in the under-$10
bracket

THE MARKET... AND YOU

By WENDELL B. BARNES*

Thursday, August 19,1954

.. .

*

*

Standard

Oil

The

*

i

Jer¬

of New

in particular, forged into

sey,

record

high territory by
reaching a price that repre¬

sented double the best of 1929

prime

*

*

I:

ity issues that make

Youngstown Sheet, had
its

market

both stocks

of

and

course

market

reflected in the

inclined to

were

the

up most

averages was

disappointing

action of the

averages, includ¬
guessing over
the terms of any union and ing one failure to penetrate
the old high of early this
the possibilities of plans run¬
month to confirm the continu¬
split in 1951. The only ques¬ ning into a snag kept the is-,
tion in the case of Jersey is sues jumping around on both ing bull swing.; But because
of the shift in interest lately,
:
whether rumors of a split- sides of the fence.
the turndown idid: little to
'-V--"
denied by the company — in¬
•"
*
*
♦
1
.'
chill enthusiasm.
'
spired th£ runup or vice
In fact, all the so-called
j-.\
>" *
*
versa
In any event, Jersey
"favorable"news ■ was
fol¬
on several days was able
Rails continue their laggard
to io wed
by nervous movements,
show gains running to a hand¬
even, in
stocks
headed
for ways > without any decisive
and twice the

going level, ex¬
• cept for a brief time, of the
* old stock
up to its last 2-for-l

be erratic

the

as

i

The heaviness in the
qual¬

that between Bethlehem Steel

run

:T

*

consideration at the moment,

and

,1

losses.

under

merger

1

frj

.

and did all
>

could to

we

in another, of

our

help them

programs—get¬

ting Government and private
■

tracts

for

small

be

?must

business.

confessed

fore, when

that,; hereto-

published

we

our man¬

agement and technical aids, writ¬
ten by experts to impart better
.

know-how for executives,

we were

thinking almost entirely in

terms

of the manufacturer and his
prob¬

lems.
is

going to be changed
now.
We are going into the prob¬
lems of selling, the problems com¬
to

mon

retailers and wholesalers.

This is the result of
received from

ple whom
a

These

Board

of

successful

from

all

the

over

Consultants.

businessmen,
country,

giving of their time
cause

the

country,

bulwark

recognize

a

and

enterprise

are

and effort be¬

they
business is

pression

advice

some

a

group of peo¬
asked to serve as

we

National

that

small

backbone

of

the

against

op¬

tyranny in

system

now

our free
being so

rigorously tested in the world.

very

taking it
seriously—that the real prob¬

lem

of

business

is

not

the

prob¬

lem of production—it is
the prob¬
lem
of distribution
and

selling.

With

no

trouble, at all,

ductive
could

system

turn
all

were

out

the

this

goods

pro¬

country
until

we

knee-deep in them.

trick

duction

of

is to

needed—at

price

a

The

channel that pro¬
it is wanted and

where

to

return

a

profit.
We

to

the

ove^

do what

we

intelligence

help

the

next

as

we

can

retailer

improve

few

can, with

their

our¬

months

much

as

muster,

to

wholesaler

and

marketing

tech-

nioues and their business methods.
For

one

thing,

hope to

we

use

the vast amount of data, the
great
volume of statistics which the De¬
partment

of

Commerce

available,

and

analyze it

germs
on

of jHoas for

the subiect.

new

With

the Department of

hope

makes

to

find

approaches
the

help of

Commerce,

we

to

sharpen it and make it
increasingly usuable and readily
available

for

scores

of

different

tomers

would

appreciate

vice—your reasoned
*An

address

American

and

by Mr. Barnes

National

from

out

their

cus¬

directly, what things the
like, don't like and

customers

would like from their stores.

That

of

sort

available

thing

through

is

the

a

Customer

city-wide level, or—in the case
metropolitan centers — on a

neighborhood

l^vel.

Basically, the program is a de¬
vice, operated on the secret-ballot

principle,

for

developing better
business
customer
relationships
and increasing sales.
-

It
and

explores

customer

reactions

analyzes the results.

For

week, in a city or neigh¬
borhood, customers are invited to
their

impression

sponsoring stores
It

is

not

praise

all

invited

evaluations

of

co-

on secret ballots.

criticism.

There

your

ad¬

carefully
before

the

are

scale with other similar stores lo¬

Printed

the

on

ballots

searching

questions

what

customer

the

the

salespeople,

are

find

to

out

thinks

to their

as

about
cour¬

tesy, interest, knowledge of stock;
about the
merchandise, window
displays, layout of stock

as

to

venience, prices, handling of
plaints,

general

con¬

com¬

atmosphere

of

cordiality, advertising, confidence
in claims made in

advertising and
selling, and anything else
which may be deemed important.
in actual

customer

remarks

is

invited

anything

on

to

he

make

would

like

to

way

of physical appurtenances

done

see

services.

or

added

in

the
or

Very frequently the cus¬
parking facil¬

tomer wants better

ities

cleaner restrooms.

or

When

the

of results

which

tion,

such

parking

hood,
with

benefit

would

street

for

evaluation

arrives, the suggestions

community,

open

time

are

as

the

whole

more

off-

in

the neighbor¬
discussed publicly in

ful of

As

a

commerce, and the people who put
on
the project.
The confidential

individual

on

out

and

stores

presented ' pri¬

to
the managers of the
stores. Bar-charts show the stand¬
one

store

as

Continued

against other
on

matter of

caution.

fact, the

en¬

too

The

numerous

signs were all
that

ket has reached

out stock from its Jersey hold¬
ings. The payment basis was

whittled

a

bit in the latest de¬

page

the

mar¬

could

that

moves

indicate

a

changed investment attitude
either

Occasionally'

way.

a

I

as

a

!>:

"overpriced," which char¬

acterized the market in
months

this

year

early

seems

Utilities

*

$
-3

-"a

4

*

continue

to show

at superior action. Some

of the

improvements have
decidedlyminor, even

daily

over.

for this year

*
*
*
been
against l-for-50
These
Another of the groups that including an unchanged day
now and then. But their per¬
payments now continue the
recently was far from distin¬
formance
in
string at seven years since the
rolling up a
guished, but managed this
l-for-100 inaugurated in 1948.
week to put on a somewhat string of as many as half a
Indiana Standard's market
better appearance were the dozen sessions without a set¬
standing, however, is a bit automotive shares.
back is distinctly better than
High
less jubilant than that of Jer¬
that of other divisions.
hopes over the Studebakersey. The best recently is con¬
❖
*
*
Packard merger helped con¬
siderably below last year's tribute to a better
feeling for
An Optimistic Technical
peak price which, in turn, was the auto
makers.
For
a
Indication
some
10 points short of the
change, aircrafts failed to
1952 top.
The
day-by-day compari¬
dominate the most active is¬
*
*
*
sons have had plenty of dour
sues
and several automotive
Aircrafts Descend
notes with 300 to 500 issues

for the last two years.

■1
if. y

I

,

issues

Aircrafts

ran

out

of

favor

were

able to take their

places. An illustration of the

somewhat

abruptly which previous aircraft dominance
was
entirely logical after was last week's
showing when
their recent sharp gains to
the plane makers not
only
climax a long and steep uphill
copped the top three activity
climb. The
profit-taking didn't slots but also took half of the
result in anything too drastic
15 most active
listings.
although the unanimity with
*
*
*
which they sought lower
Shift to Low-Priced Issues
ground was a far more con¬
certed

movement

of other
or

major

issues

two

be counted

trend for

one

on

a

group

which

was

was

a

stock

normally

category

seems

show
on a

in¬

plan

appearing in the minus col¬
umn out of the normal 1,200

lows
Standard
Railway Equipment has had
something of an uncontested
monopoly in this departmen
that appear.

But for new

for the entire year,

It has run

ary

new-lows
accompanied by
preferred issues. On the otne
side of the ledger, new hig
-j
continue to run past the
j

mark

so

them such

Callahan

low-priced items

as

Zinc, General Public

!?': i'5
£

i':'

El

I -f'

1
ft

in the

L'-$

that

technically

a
op¬

timistic.
[The
article

among

u

lists, usually

bypassed the second¬ weight of the evidence
group and settled among kept the majority opinion

of the week included

|c:

several successive

appearances

to have

the outright
speculative
Northrop items. The more active stocks

able to

split.

other.

venturesome

divergence in

dependent strength

32 for

those
The shift
away from the
where blue chips to issues in a more

to buck the

reason or

The nearest to

this

than

groups,

are

vately

ing of

*

"Standard"

one

written

splits, which bred plenty of
*

#

~

stage where good earnings comparison
group stood
will harden an issue briefly,
out a bit in the return of the many investors are willing to
but it isn't long before it is
take profits on any good show
oils
to
popularity, not the
back swaying with the rest in
least being Standard of Indi¬ of strength. The buying-withtune with the general market.
ana
which continues to pay abandon, even in issues listed

tire

can

the

points.
.

merchants

of

the

K

,

,

co-sponsoring organiza¬
like the local chamber of

meetings

Retail Jewelers' Assn.

Convention, New York City, Aug. 9, 1954.




is

well, since the
on
a comparative

as

"

-

claration, coming to l-for-60 least temporarily

a

write

•

..

made

Evaluation Program, organized on

reports

types of businesses.
We

find

to

The

going to dedicate

are

selves

seem

cally and in nearby cities.

Our National Board of Consult¬
ants told us—and we are

real

*

serve^-their

That would

natural, normal thing to do—to

try

of

That

we

a

con-

But, it

'

'

to

seek

customers.

own

time

views
do

not

coincide

Chronicle.

expressed *n

thtS

any
of I

necessarily at
with

They are

those

presented

k

1
•3

954
Volume 180
1 m

cal

ble

.

.

.

The Commercial

and Financial Chronicle

IE

M

e—

Number 5352

Is

.V -H

(693)

^et.

of
t

a
SX+W-XW-X-:.;^;

at

.

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$

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it-Vr

are

;

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|

the

mm

hs.

•IVXva;!

v

:.1

led

u

Wf

m
v

v

.■■

/

The first half of 1954

continuing

I

progress

Company. Earnings
and the

Company

,r

The

set new

fitted

to

credit. The
.

,

and financial

providing
future

Net

a

on

^..

\

■,,

i

Earnings

a. manage-

per

firm basis for

s

•.

Sjiii'jS ..C>

&

PUBLIC LOAN

$ 16,895,057

$ 10,325,877

$

2,900,161

$

$

169,633

$

2,804,883

$

2,715,232

312,282

$

CORPORATION

217,517

$

.

$

3,636,401

A

257,989

2,070,805

2,064,786

$1.20

$1.19

$ .80

$ .80

LOAN SERVICE

$m,806,623

$112,036,212

CORPORATION

362,035

346,791

$309

"

.

$323

Common Share
Common Share

Number of Loans Made.

Average Loan Made

growth.

iS-SSii

x\xs\

i

June 30.1953

$ 17,632,743

Tota] ^ Ma<)c

standpoint

+

..

s

|

....,

per

••

..

.....$ It,758,066

Earnings

Dividends

v>\

-

•J * v ^v-v^s •»% vN-v.V'v. '^v.Sv.s'W.''

from the Semi-Annual Report

Number of Common Shares.

sound

M
*•
%v.

.

v...©- j.\\

s v.v..v.

Preferred Dividends..

.

strengthened from both
ment

"'

""

_A_

Minority Interest in Earning,

Company has been
1r

vs\v«^','>ssw'x<.

''

Income Taxes
year.

are

emphasis

s

,

vtr*"

s

_

1

Operating Expenses

present economic

conditions with

\.,^.

\

■.

Gross Earnings

records

r,.

Company's policies

.......

M.S
mJr

June 30,1951

-

ji

^

>

u

expects a satis-

factory second half of th.s

s

-

Highlights

represented

for the

-

Notes Receivable Outstanding

IL

$145,123,297_ $110,815,667

Number of Branch Offices

311

292

GENERAL
'

PUBLIC LOAN

;v1

ASSETS

CORPORATION

June 30, 1954

Cash

PnnHnnOQrl
OU I IU t/1 I vfc/U

$

Installment Notes Receivable—Net

$

13,384,599

139,360,741

Accrued Interest Receivable

135,630,461

1,100,817

1,046,478

$ 155,508,730

{ 150,061,538

$

Total Current Assets

$

FINANCE

0nn^nl irlPltPrl
UUIIOUIIUUll/U

Property—net book value
Qther Agsetg and Deferred

Charges............

1,514,019

1,355,751

4,170,486

$ 155,610,603

June 30, 1954

B3I3FIC6

.i

•I

.

;

June 30, 1953

FINANCE

CORPORATION

LIABILITIES

'M
1

DOMESTIC

4,193,314

$ 161,193,235

4

f'

15,047,172

June 30, 1953

Notes and Debentures

_

Qhppt
OIIC CI

Payable

$

Accounts and Taxes Payable

46,770,500

$

52,887,000

5,850,064

Total Current Liabilities

7,154,522

$

52,620,564

$

60,041,522

$

51,050,000

$

44,800,000

OHIO FINANCE

Long Term Senior Debt.

fi

Long Term Subordinated Debt

15,450,000

Minority Interest

i 'is-i
f.

#jT'

I ivp

12,150,000

3,772,218

3,980,473

38,300,453

Capital Stock and Surplus

i- -r M

COMPANY

34,638,608

FINANCING

50,769,081

THE

Total

Capital Funds

$

57,522,671

$

©a

,

161,193,235

-I

$ 155,610,603

CONSUMER

THROUGH

I1"1, •sfe

COMMON STOCK LISTED ON NEW YORK AND MIDWEST STOCK EXCHANGES (AMT)
PRIOR PREFERRED STOCK LISTED ON NEW

NATIONWIDE

YORK STOCK EXCHANGE

SUBSIDIARIES

'i?
mm

A

management organization chart, brief sketches of

the executive

Report

are

officers and the detailed Semi-Annual

available upon request.

i
•

Ameriean Investment

Company

\
SCMI-ANNUAI
HBPONT
1954

Executive Offices:

1112 Ambassador Bldg.^ St. Louis t, Mo.

Ji
(

i

LAI

K«j

"!'{

1/




.

1

1

i

17

18

(694)

The Commercial and Financial Chronicle

the

The Rise in the
PAUL

the

of

result

a

hoarding

if this

even

means

The
•

tion

can

is

the

gold

amount

by

same

standard.
of

credit

decline

a

it

A

is

in

cut in

the

demand

fional,

and

countries

the

prices

and

of

the

crease

indicates nothing of the

kind.

is

income.

note

The

issue

•

what the

rise

to increase.

d,

man

<ie-

•

has

passed

peak,

its

But the

level to which
the
Dr. Paul Einzif

note

cir-

culation will

drop is likely
remain

well

above

the

corre-

sponding figure for last year, and
above

the

level

before

the

beginning of the

at which

it

holiday demand. The fundamental
trend, after allowing for seasonal
ups and

downs, has been upward,
likely to remain so.

Twenty-five

during
the days of the gold
standard, this
rising trend of the note issue
years

ago,

would have caused much

concern

among experts and laymen alike,
For each increase would have re-

duced the Bank of England's note
reserve
the unissued portion of
—

authorized

amount

of

note

which

issue,

latter

the
de-

was

termined

by the size of the gold
reserve and by the
figure of the
"fiduciary issue," that is, the legally fixed amount with which
note

issue

the

allowed

was

gold

to

When-

reserve.

'h! "ot° fnea"vI

market rates of interest tended to
rise in
anticipation of an increase

of the bank rate.
All this is

now

past history. The

longer

no

part in Britain in deterthe note issue. It is true

the amount is still limited
by the
authorized figure of the
"fiduciary
issue." But the

Treasury is in

position

to

whenever

that

raise

figure,
by

necessary,

a

simple

administrative action, so that for
practical
purposes
there
is
no
limit

to

the

increase of

circulation.

the

note

Its

increase
leaves
market and the dis-

the

money
count market

entirely unaffected,

Very little attention is paid to it
either
the

in

expert discussion

public.

Experts

t

m6re

concerned

trend

of

bank

or

by

the

cannot

gether

be

as

and

de-

of the

note

of

the

is-

alto-

indices
It

as
Britain,
important item in

principal instrument

flation, in Britain
in tsruain
un,
x
operate

press.

whirh

of

crude

inflation
inflation
"

Even

in-

does
*

*

through the printing
if

the

government

xP°].icy °.f in~
t•1 C 1
fl^ancin£—'
rtainiy not the

•

case

present—it

by

would

much

be

more

carried

sophisticated

methods, through the creation
bank credits,

providing the

for the Treasury
i

cut

u

•

*

having to

JT
bid

to

at

out

borrow

of

means
with

b°rrow with-

up interest rates,




whether

merely

at

area

North

politically

even

but also on
thP
the "absolute"
Bev
of Tunisia and
the pashas
of the
Moroccan backwoods.
The latter t
power,

which

the

British

alliance

is

round

increase

During

the

cost

tween

" -V

-

with

ty.

increase

or
of

of

anall-

an

last

year

or

living remained

international

or

let's

hurry

threatening to

slowly.

affairs, to say nothing of such and Italians take
lofty things as national honor, tude.)
And,

(The

I

the

British

would retain export

ing

port restrictions, etc., just

morale

of

Western

Eu-

rope, or what was left of it after
the 1930's.

Monnet

France

America

was,
supposedly, the
obstacle that had to be over-

one

to

come

atti-

same

"temporarily,"

Welfarism has succeeded in ruin-

the

.

make

Plan

into

he

subsidies, im-

did,

that

inflation

as

the

carried

and

virtual

stagnation.
The age of politician-economists
has produced no more ideal speci-

peace.
In reality,
reasonably stable in Britain, so what
brought the "peace-loving" men of a compromiser. But
that higher
how
prices account for
Communist powers to the degree else can one swim in
the economic
only a small part of the higher
0f moderation
they showed (they and political mire which is France
demand for notes. Larger
output could have
conquered the whole today?
And swim one must, if
accounts for a great deal more.
0f Indo-China) was the
overhang- only, as the Premier himself inBut the main item is
probably the jng threat of U. S.
intervention; dicated, because of the $500 milincrease of wage rates, and, to a ancj
the
expectation that
their lion cut in American aid—to
Indomuch less extent, of - other per"moderation" in the Far East
may China.1
Even so, by
sonal incomes.
January, he
help to strengthen French resist- is likely to run into
To the extent to which the exparliamentary
ance against the E. D. C.
deep waters which may force him

pansion of

the

note

issue

is

due

to the cure-all favored

by French
higher output, and to higher
T"e Economic Program.
politicians: franc-devaluation,
wage
rates justified
by I higher
But more about Mendes-France.
productivity, it does not indicate He is an economist of
high repute
Can
French Hold
inflation. After all, if more goods in his
country. To put the French
North Africa?
are
produced, and if those who house in order was his Number!
The
.

to

_

a

produce them

North

benefit

by the in-

of

their productivity, it is
natural that there should be more
crease

notes

in

circulation, in order

to

meet increased

ments.

It

legitimate requireonly if the increase

is

in personal incomes

of

the extent

productivity

is in

justified

that

constitute

a

form

of

increased

ideas

Far

Eastern

mere

published
well

are

yet,

as

known.

but his

He

Aer

,

trade liberalization in
tq

break

freeze"

the

to

ud
up

rigidity
o

__

its

products
world

competitive

The size of the note issue
should
be regarded as a mere baro-

"modernize"

tionary trend.
for

goods

mined

After

only

by

is

our

deter-

incomes

is

true

in

particular

in the
income groups.

Many

millions

of

wage-earners

usually live right
of

such
to

as

come

their

Any

up to

incomes,

balances

low.

very

are

extra

the cost of

a

and

generally
expense,

holiday, has

out of their cash balance,

Their decision whether to have

a

more

expensive holiday, for instance, or indeed whether to take
a holiday at all, depends on the
size of their cash balances. Given
amount

deplorable

but

are.,,r«f, the result

vacillation

between

sabotage

of

French

will

enforce

the

guarantee?

The modern Welfare
in Africa at that, has a
thousand, perfectly legal
ways to
ruin a group of well-to-do
citi¬

State,

landlords in particular, un¬
disguise of democratic
equality.
Besides, how will the
loyalty of the colonial troops, so
zens,

der

the

essential

to French
military pre¬
paredness, be affected?
Despite his very narrow margin

in

the

is

able

assemblee, Mendes-France
to

put

the Tunisian

over

autonomy, if somewhat diluted.
Going back on the promise may
mean

open revolt.

lonial situation rapidly approaches
a critical stage.
In Tunisia as fh
and

lives
be guaran¬

to

are

who

In any case, he
parliamentary diffi¬

cope

violence

—

Tunisia, their

properties

teed;

hold

economic program had
been put on its
way. But the co-

with

as

the preced¬

ing Laniel-Bidault regime had: to
the

Gaullists

most

are

any

likely

in

to

that

measure

line.

vote

wipe out the results of
of

(in

repressions

They

against

threatens
a

to

century

commend¬

many ways very

and concessions. The local na- able) French colonization. He will
have to rely on the Socialists and
tmnalists are being incited by
Communist votes, though he has
Egypt and by Spain; General
made it amply clear that he does
Franco exploits the weakness of
if FSIICC S

QCIGSt

encouraging

tionalists.
of

And

America's

fact> it
employment of all promise

resources by pubworks, "directed" investments, and "balanced expantion" by the
government;

t"6

111

FsT

wish to govern with the sup¬
port of Moscow's fellow-travellers.

greatcolonial na-

the

A

they

are

Roosevelt's

was

of

aware

anti-colonialism;

in

reckless

Moroccan

ence that started the

ball rolling,

Repression

independrevolutionary

may work if

applied

crucial

problem

in

French-

North African relations cannot be
solved

by

compromise.

political

Two-thirds

France's

of

exports

colonies, mostly to North
against , one-third before

go to the

Africa,
the

The

war.

pensive

and

have no

colonials

choice but to buy the

often

overly ex¬

low

quality

continuously and ruthlessly, which French products. To a large sec¬
*s w^at Malan's apertheid promises tor of the metropolitan country s.
South Africa. That does not industry, these sheltered markets
are a matter of life and death, on
tures, justified by his claim SU1^ the French political
temperathat the Soviets "now concen- ment of
today and might drive the the other hand, an autonomous
trate their efforts on economic entire Islam into
Russia's arms, Tunisia will not tolerate for long
and social
problems";
^ Sive Tunisians and Moroccans being exploited by French mo¬
to
nopolists and will insist on tne
enhance mass consumption
(as Ah freedom to buy in cheaper mar¬
and living standards
by lowI hw
"i
j3?
kets.
The French
monopoly W
ering indirect taxes (which
of colored depuconstitute 70% of the
investing canital, and doing busi¬
public r^P?,ffily in a l,ia"ce
.w,t4h the ness generally, will not last eitn
revermp<;V
Communists—would dominate the
*
ta
t'i +
r
French Parliament. That leaves if the Neo-Destours boys can help
to
find outlets
for
the
oyer- compromise a la Mendes-France it. France may lose those outle
subsidized farm and
distillery as the only
unless
the
mother
to

reduce "unproductive"
meaning defense
expendi-

—

of

the

national

in-

,C,!'!Z,TsWpt

4u

products;

volume of consumer
no slight degree,

to

demand

to

a

country such as Britain,
banking habit is very
prevalent, there is very little the
where the

government
or

and

to

so

point of view. In

own

autonomous

an

opposed

autonomy; rightly

regime's

ly

productive

to

ducing,

violently

from their

East destroyed her prestige,
a

are

same

vwt.

lie

come, the size of loose cash available to consumers influences the

In

reasons.

They

African

—

and others

limit

state;

to create full

holdings,

of the lower

case

f

housing construe-

tion, which is in
.

but also by our cash
balances,
whether they assume the form
of
bank ^ deposits or note
This

stimulate

was

accom¬

The white settlers have
a great
deal of backing in
Paris due to
financial
and
patriotic

new

country's

equipment,
to

all, demand

and ^services

not

infla-

"mess"

only after the

economic

progress

not

the

eouinment-

not

the

on

markets;

bal-

j

indicates

"de-

of the

^

French economy and to make
the
to

which

or-

African

tackled

nationalism

annul the

plished by French colonization.

culty to

be

Neo-Destours Par¬

cultural

has the

to

Morocco,

some

ances.

meter

pro-

poses:

of

bank

a

not

flationary financing. Even then a
large part of the inflation assumes
the

the

preliminary. What,
then, is his program? The details
are

additional

means

promise;

truce

excess

by higher

the

One

nationalists

But the treqd goes in
the di¬

and

-

and

wages

the

of

due to

,

indo-China

moderate

rection of
xenophobic

After Geneva
jn

is be¬

the

and the radical

is

whether it is

or

reriection
reflection

a

prices.
two

the

income is

higher output,

a

an

the total volume of
money. Moreover, while in less
advanced
countries
the note
issue
is
the

not

indicate

are

national

the

disregarded

one

more

the

their cash

advanced country such
much

in

is

much

showing the monetary trend.
is true, bank
deposits are, in
a

question

rising

advances

amount

does

in direct proportion to the national income. The

the

inflation.

sue

story in

a

thirl

,•

For in the absence of

requirements

are

with

posits.
It
is
the
latter
figure
which is generally
regarded as the
true barometer of
Yet

rate

income continues

drastic change in the methods
and
practices of payment, note

notes

size of the gold reserve

mining

different

a

Africa, and with

note circulation is increasing from
to year is far from negligible,

in-

Gold Coast-

white settlers in
that

no

is

would

i^onzinuea jrom jirsz page
firstxmae

any

;v

a

The

but

advanced

banking habit is not
generally developed, such as

so

to ..be

...holiday

plays

inflation assumed largely

year

^" cline after the

exceed

for

in

^substhptial de-<

the

It

the

notes, owing to a decline in busiactivity and also to a decline

where

Circulation

4; certain

the

necessary,

occupation

!?"
r£~

excessive note issue, more
self-conscious and
more un
only effective way of ruly population.
So
far, FreJh
dealing with the situation was to rule has been
based not onlv
on
mop up the excess.
physical
and

the

L

settled

the form of

ness

in

even

-../'followed by ? that the national

is

*

accompanied

,

and

are

measures.

considered

was

currency

under

was

between

indigenous

small

This

drastic

because under German

as

a

withdrawn, through the exchange or stamping of the notes.

reduce the note circula-

the

pie and

even

By varidevices part of the note issue

ous

in which the govern-

way

adopted

*

Kenya: the conflict
huge majority of

war

was

the total note issue.

ment

the

195^

but most
ential
minority of white
Britain may be
successful in
perimenting with a "black"
minion on the

more

increase of

an

after

governments

So while in backward countries—

^ c a ir r s e sea-r Britain it

n

was

the

countries

18

equally far from hemg are backed
by Berber
tribesmen
alarming. Even the combined fig- who accept the
new, French-im
have to assume much more alarm- ure of the increase of notes and posed
Sultan;2 between them
to new records
France for instance—a rise in the ing dimensions than it has reached
and
deposits does not exceed the limits the
Istiqlal, the followers of
V;
for1 all
time,; note circulation- is
the
generally- re- in Britain at present, before the of a moderate and well-controlled previous
Sultan (deposed
'"The present garded as an indication of an in- authorities would resort
by the
to such "creeping* inflation.
French), virtual civil war is
V'Vincrease is of flationary
loom¬
monetary
policy,1 in
:v:-..
ing. In Tunisia, the contest
-.r-r-.-~

j

increase in ther note

even

tinental

of

habit

In several coii-

drastic action.

a

in-

and

LONDON1, Eng. — Week after
during
the summer
the
Bank of England's returns show
week

to

the

public, those who need more
notes can always draw on their
deposits, and the authorities have
to
provide the additional notes

EINZIG

Einzig, in calling attention to rise in British bank note cir¬
culation to an all-time high, points out this does not
necessarily
mean an inflationary
trend, since the size of the Bank of England's gold reserve no longer plays a
part in determining the
limit on the note issue. Says increase in note issue indicates a
continuing higher national income.
v

as

the

Dr.

an

disappears from active

of

crease

British Note Circnlation
By

notes

circulation

Thursday, August

...

could

do

about

re-

keeping

eliminate (how?) the
budget
deficit nearing $2.8
billion;
raise wages and
and

so

on,

lower costs,'

mostly by

a

"psyco-

logical" approach.
The novel feature in this
hodgepodge of free and managed econ-

down,
the omy policies is the idea to
give
volume of note holdings in the tax incentives to
enterprises which
hands of the public, in the inter- invest their liquid funds in more
est of
checking inflation. Holders important
businesses than their
of bank
deposits—and of course
own; the criteria of "importance"
also of
savings certificates-are to be
determined by the bureaualways in a position to frustrate
crats.

any official action aiming at the
As to the
convertibility of the
rec*uction of the note issue, by franc, he is for it; but, says he in
drawing on their holdings. Like- the best
wise, if too large

tradition

a

proportion of

Europe, batons

apparent solution: to
both colonies with
full

provide

nous

of

postwar

lentement—

c0"Iv

—

_

and be*
competitive not only wi
European
industries,

mends its economic ways

internal autonomy,
leaving military and monetary matters

comes

f°rejgn relations

also

Paris-

colonial

and

in the hands of
Patently, this is not "final."

*n both colonies, the French
are
faced
basically Wlin tJle same
with
u.cii,1Ldliy

h0J?e*ess]y tangled
the

1 Here is

problem with

British

struggle

how cash military aid

French Government deposits

s Jn

the centra' hank

and

^UUdk^r.i"
colonies,
in

due

course,

i„'Yh"
reserves of

to-

its chief

the

Frances

American.

resolves n
ah# economic problem, a

into

sooner

tary

problem

or

later, the French m°n which
serves

system,

whole union

francaise, may be

fected, too.
the

doU

dollars

Future

Europe's

of

Indio-China

apparent

enthusiasm

about Geneva and Trunggia is

genuine.

Despite

are

ddTi)
supplier. Britain

The

do-

(""ds> in

d£-?.
the

with

wnri,..

receives

Sin.'."''™"5' <count"i>ar'

in

other

all

"appeasement" and behind al'
tempts

to

blame

the

Yank

As

th%uAmAucan Ti,itary hard goods
iTshed.
' f,gures are never pub*

we

not

denials

2 Morocco

from

a

was

nominal

srradually

protectorate into

>

-v

<k;$

IS

Number 5352

180

Volume

The Commercial and Financial

....

Chronicle

too well remembered long her financial agony; In fact,
comfort. It is assumed that given the trade blockade of the
"free" world, Japan's commercial
the Reds will carry out the literal
terms
of the truce.
But what salvation rests on trade with

Munich > is

•

parallel weakening of Our po¬
sition in the Far East;

a

lor

$0

Soviet Asia.

after?

real shock to the Brit¬

It was a

Do-

the true architects of the
truce, that its text was not even
ish,

here
irea.

yet when one of

orth

published

iven

their airliners was

shot down in a

view,

brought

was

on

Short of

state

peating that it will conquer For¬
mosa, having converted the island
of Hainan into a first-rate bas¬
■•$1

i
i

:'

m

'

has

result

sion of

of

become

and

of

our

relief

an

incurable

raises

to

obses¬

productivity

living standards in the jun¬

gles; and (b) thereby reduces the

^

stopped.

was

dollar

bureaucracy, that dol¬

(a)

Arthur

"free"

It is a matter of em¬
phasis only, not a definite change
of outlook, based on the idea that

the Philippines

tion, threatening
well.

multi-billion

written into

was

policy the day General Mac-

policy-shift in the
ample. Take the Na¬
Council's refusal
(at Admiral Radford's instigation)

print stage.

lar

China;

A

the

purely defensive—defeatist

—t-approach that
our

New Deal for Asia is in the blue¬

economic

strengthening

enormous

Red

y-diplomatic

our

Signs
making
tional

of

a

are

Security

commit

us

Cambodia.

guaranteeing

to

Depleting progressive¬

ly the American forces in Korea

chapter. Most

belongs in the

same

significant

the President's

shocking
entrance

is

hint
into

that
the

China's

Red

U.

N.

be

may

if she "behaves" her¬

considered

self. And Mr. Eisenhower not only

the

appeasement

screw,

the

Vietnam,

In

thesis

of

with

co-existence"

"peaceful

the

Even

Soviets.

trying

to

pearance

of

them has

to be avoided

to break up

But

what

up

defense

strong
Western

They go into hiding, as
custom;
in Laos, they

it

a

respect;!

to

though they
have very
valuable plantations to lose in the
substantial

Their

indus¬

trial investments in the North are

lost, in effect, already.
Within two
to be held

years, elections are
throughout Vietnam. In

the northern half, Viet Minh will

get 95%

of the vote or more, to

be sure.

South of the 17th paral¬

lel, there will be an appreciable
minority on their side, if only be¬
cause of their prestige.
Given 11
million

people

the

each side,

on

Bolshevists for the first time have
a

chance to win

lots.

And

they

rump-Vietnam

spending on
supposed to do

is

French will
shoulder

trick; and the
there only if

stay

influence.

their

American

Generous

the

unless

win

will

counteract

we

country by bal¬

a

we

most of their costs.

Whether dol¬

lars (an annual $800

million budg¬

eted

far)

so

can

offset the impact

of

propaganda,
infiltration and
intimidation, is very questionable.

■

,\<

<[\

i>«

g$$|.

on.

;<

The "New Look" of Foreign

Policy
Dulles

has

refused

write the

division

in

we

effect,

bodia

to

under¬

Indo-China;

The first coast-to-coast

accepted it. Cam¬
in putting into

succeeded

the

armistice

she

may

case

of

of

call

acute

the

for

outside

that

condition

aid

in

radio network broadcast

But paper

danger.

I

arrangements have little meaning
as

•

3

long

deter¬
mined by the
European Allies.
They will no more permit us to
fight

a

our

as

war

policy

China

with

count of Cambodia
'3

is

ac¬

on

than they

•

It

was
sent over

f

•

> i

*

•

,

*

"

■

the Bell System's transcontinental network thirty years ago

did

for the whole of Indo-China.
In

fact, we drove a "bargain":
exchange for our consent to
(and to finance) the Ge¬

In

support
neva

deal, Mendes-France prom¬
ised to put the E. D. C.—German
the current ses¬

armaments—on

sion's agenda in the French

Par¬
liament. He keeps his word—ty¬
ing it to another parlez-vous avec
Moscow.

Presently, Dulles tries to mend
the broken threads of

a

Southeast

Asian alliance. After endless bick¬

ering,

some more or less ineffec¬
tual counterpart to NATO may be
concocted. But there is no desire
in London
to
seriously defend

that

area

until and unless Malaya

and Indonesia

are in acute danger.
Nor is much local co-operation to
be expected.
India, Burma and

Ceylon
fake
the

want

maintain

their

neutrality. Indonesia is
grips of multiple crises;

fact, it is
than

to

a

a

in
in

a

Just a little over thirty years ago
man's voice was heard on radio

sets

in New York and

at one

and the

That

was

early in

first coast-to-coast

broadcast took

serve

of radio and television programs to

1924,

when the

across

radio network

And

He had
helped direct the building of the
Bell System's transcontinental tele¬
phone network, and he was working
phone man—J. J. Carty.

Mr.

day.

Carty spoke from Chicago's

station WMAQ.

His voice was

carried by telephone

wires to New

the nation

are

grown!

vision

pictures—in both black and

city
The

radio

on

telephone

state.

wires, coaxial cables and

relay towers, put

vide the nation with

up to pro¬

Long Distance

telephone communication, also

rather
Japan rebuked Dul¬

She is in desper¬
payments strains;
moderate American, aid and a few
reductions will merely pro¬




city

equipment.

turbulent mess

les' approaches.
ate balance of

serve

broadcasting. Tele¬

white and color—are sent from
to

BELL TELEPHONE

SYSTEM

When

realize

think about it, you

you

how

a

tions

network

unite

regularly linked

today telephone lines

another kind of

an

millions of homes.

<

together by telephone lines.

place. The voice,

make it more useful every

•

Today hundreds of radio stations

fittingly enough, was that of a tele¬

to

stations in California.

How that first network has

instant.

same

endless selection

York, Providence and Washington,
D.C., in the East and westward to
two

California—

bring

to

us

It

great
like

communica¬

this

serves

to

all.

.speeds the vital messages of

government and

business. Carries

your

words to distant

own

warm

relatives and friends.
many

Brings

many,

people together in radio and

television audiences to hear and

see

historic words and great events.

The

truly

Long Distance network is

an

Even that

">(

.

fight,

South.

sides

into?* very.-serious

runs

the advantage, includ¬

no

a

the

attempt
snags.-

is their

they do not care enough

not

empire.

ing all French-American installa-!
tions in the Hanoi-Haiphong area;
and

on-

Southwestern

and

negligible. Strategically, the Viet

The French command

as

of the Russian

"legal" foothold which will permit
new action.
Internal resistance in
the whole area is bound to be
Minh has

so

considers 1

system

out

have

ap¬

Washington tries to

at least,

build

the

challenge

the Atlantic Alliance.

17th parallel.

the

south of

from

per¬

No question about it: we have
accepted, or are on the way defi¬
nitely
to
accept
the European

Communist

be forced

cannot

guerrillas

he

Hemisphere oil to the Russians.

as

W

•1
S

an

Geneva consists in—
an

a r

support among

nations.

outright breach of
by the Reds, effec¬
tive collective security plans for
Southeast Asia lack the psycho¬

,

i 1 i t

m

one

imous

'

And pronto, a clan¬
destine radio announced a Com¬ logical,
political
and
munist pretender to the "throne"
foundation.
Thus, the
of Siam, while Peiping keeps re¬

the

mitted the British to sell Western

and

thing, the emphasis of
our Far Eastern
policy is shifting
from military to economic sup¬
port. This, of course, finds unan¬

the armistice

subversion.

■I

public.)

tighten

to

even

or

with

relations

break

to

East

of

For

port of early June; it still has not
made

the

blockade, but at the latest turn of

thinking.

out

been

refuses

Formosa, Korea, etc., will con¬
tinue, too; that is part and parcel

consequent,

ton's

in General Van Fleet's special re¬

Peiping, which is symbolic — to
that he will unite Vietnam
before long. In other words, he
will carry on, if only by way of

inch

military aid

course,

shift in the drift of Washing¬

near-hopelessness of the Nippon¬
ese
situation, from the defense
of

But of

to

a

declared

That is what Moscow

Peiping offer Tokyo—in ex¬
change for no armaments.
(The

point

attractiveness of Bolshevist ideol¬

ogies.

though un¬
very
gradual

and

and

dastardly manner. Next day, Ho
Chi Minh went on the air — in

un~

1

as

T9

(695)

instrument of democracy*

V

20

(696)

The Commercial and Financial Chronicle

the rate of

It

We See

to

only about 2.7% from 1953, and nonagricultural
employment somewhat less than that. Personal income,
disposable income, and bank debits outside New York City
are all somewhat higher than they were in 1953.
asserts,

to conclude

that the "recent economic decline,

on an

restored

a

over-all basis, has

banks

further back. The first half of 1952

by the

the current state of

if

was

go

we

one

year

not characterized

have

we

showing of the rather broad indica¬
already referred is as follows:

production

Up

ever

Up

not

are

particularly vocal

Up

1.1

Personal income

Up
Up

8.8

Up
Up

10.2

Disposable personal income
Per capita disposable income
Bank debits outside New York

"Every

one

of the increases
"Since 1952

City

of these indicators shows
are

a

recent economic

*

some

1

*

activity has been at

a

namely, that while
high level and the
progres-

siveness of the American

economy—has continued.

"The above statistics suggest a

as

recent

high—or

even an

im-

state of economic welfare. An economic his-

an

earlier

generation, if confronted with facts
these, would have felt no hesitation in describing

times

period of great prosperity. And if our
imaginary historian had stopped to take account of the
as

easily conceive of

can

Continued

a

curity dropping nearly one-fifth in

a year,

he might well

have described the last year or two as a time when
nomic miracles were being wrought."

«

1953,

aimed at the monetary
credit policy; the - so-called
was

and

"sound

money"- program,

of the
Eisenhower Administration. From
Administrations

viewpoint

the announcement with its

partisan

backing must

the appearance of
crusade

have

had

best that the country has ever known, the
general rate
business activity in this country is but very

of

moderately
Compared with the best of which his predecessor is
at this moment "out in front." As

~

to whatever mild recession
and earlier this year,

actually did

the tide

seems

occur

late last

year

to have turned, and

the rate of

activity appears to be headed upward again.
So far, so good. The record, so considered, would appear
to support the
charge often attributed to some of the President's advisers that we were in
danger of becoming
tion of economic hypochondriacs.

a na-

But is this the full story? Is the rate of activity in
industry, trade and finance

the

only fact which merits

] consideration of the examining physician? From all that
I is being sai,d by most observers, politicians and economists

I alike, one would suppose that it is. In fact,
*

to wonder at times, if it

mentators, and

ever occurs to some

one

is

suppressed.

That

should
if

not

.

farm

be

price

•

drastically

ended

altogether.
That social security for
our'aged
and incapacitated should be
cut
In

brief,

advocates

aid

to

grams

hard money
minimize
pro¬

the

citizens

our

the

would

great

masses

as

inflationary.
."
Mr. Patman" rec.

com-

return to

virture
bond
est

it

of

.

for

easy

rates

money

had

some

launched,

was

rise

by
long-term

in

prices and retreat of inter¬
which

facilitated

were

by Open Market Committee
chases.

reduction

of

pur¬

those

as

well

reserve

as

re¬

subsequent

subsequent developments

have

isfaction

been

a

for

cause

sat¬

the part of those who

on

easier

money

indeed,

—

Congressman
Patman
in
the
"Congressional Record" of May
10, 1954, fixes the initiation of
those

1953

Open

Market

mittee purchases as
the
very
day the

launched—the
cism
of

was

the

and

May 11, 1953,
crusade was

Democratic

criti¬

not dropped.1 The
pages
'"Congressional
Record"

other

crusade

Com¬

publications

track

s

present.
On
April

trace

the

right down to the

9.

1954.

the

money crusade received

softim¬

new

speech he
"assists"
from
other
Democratic legislators,

monetary
well

as

Certainly
United

and

volume
the

was

of

Hubert

1 CbAirroac
Km

well

day

very

Senator

Wilfred

Board

Martin

ku

Lumer.

The

launched.

its

On

publication

Humphrey
of

(D.,

the Federal

testified

Market C—w—ittee decided

that
to

the

Re-

Open

reverse

its

policy

during its meeting on May 6,
printed hearings before the
House Banking and Currency Committee.
1953.

See

""Federal Reserve Act Amendments"
May
and 27, 19S4, p. 15.

26

is

a

economic

this

is

States.

political as
problem."

true

The

in

the

historic

role

of money as a
political

indicated

by

last

in

year

the

issue

was

writer

present

article

an

in this magazine.

published
(See "What Are

They

Our

Doing

to

Monev

in

Washington?" by

Herbert M.
Bratter, "Commercial and Finan¬
cial Chronicle " Oct.
8. 1953. p. 1.)
The
present-day counterparts of
the Nineteenth
Century populists
will doubtless find a
"bible" in
"The
will

Hard
be

Money Crusade."

very

surprising

Democrats do not find
during the coming

if

It

the

for it

use

In

this

article

cerned with

book

is

we

politics
bitter

a

are
as

not

con¬

such.

attack

the

on

his

and

debt-management

osophy; but
It

is

has

an

much

attack

phil¬

broader

on

a

at

banking

have known it for
at free
--markets, and

as we

generations,
the

capitalistic system as it
has developed here
down to date
The book predicates
its argument
on
"full

employment"

the

as

chosen

American goal, full
ployment guaranteed bv the
to

be

not

G°vefnment.

with

em¬

Fed-

inflation

handled by direct
controls

general

instruments

the interest rate.

such

as

examination-and

our

accompanying comments thereon
grouped under eight headings.

(I)

Charges

to

as

the

Supposed

Stake Bankers Have in Tight
Credit.

High

"Hard

tion

with

forth

Lumer

other

Interest

Rates,

Money."
start

us

see

and

by

that

lenders

the

proposi¬

Messrs.
the

have

Gross
and

banks
vested

a

terest in deflation and

in¬

depression.

They charge the banks with
seeking deflation and depression.
In

stating

the

what they regard as
reasoning, the authors

banks'

of

the book say (p. 38): "A good
thing that might happen is a fall

in

prices.

that

If this

it means

occurs

loan advanced in 100-cents

a

dollars

will

worth

be

much

dollars

repaid in

deflation

If

more.

holds

the possibility of defaults,
bankruptcies, and foreclosures, it
also

holds

forth

the

promise

the

banks

of

'bargains.' "
„

To

that

assert

seek

"defaults, bankruptcies and fore¬
closures" is not only a calumny,
but

absurdity.
During
the
depression
of
the
1930s

an

the

themselves

bankruptcies
more

among

were

victims

worst

The

defaults,

of

foreclosures.

and

the econ¬
business

prosperous

omy and the more sound

activity that takes place, the bet¬
ter for the banking business.
If

bank¬

business, especially
bigbanks.
It aims its shaft

city

at

it

dealing

particularly
The points se¬

are

The

Treasury chiefs of today,
espe¬
cially Mr. W. Randolph
Burgess

book

and

banks.2

for

great
banks

campaigns.

targets.

page book called
The Hard
Money Crusade." by Bertram

issue
an

I

Lumer

the

Let

"The

America

setting, let us now
the main charges in the

and

lected

want
-

lenders

Inde¬

by

."

.

with

a

the Public Affairs
Institute, states:
"To be properly
understood, the

ing as

178-

speech

and

Hard Money Crusade," Mr.
Dewey
Anderson, Executive Director of

petus with the publication by the

Gross

including
Neely, Johnston,

pendent Senator Morse.
'In a foreword to the book.

Public Affairs Institute of

a*

Gross

.

times, and those

not

with

received

Messrs. Lehman.

do

this

examine

the

separate

the

rates

of

course

whole

interest

after

soon

the

With

„

a
long speech captioned
"Tight Money: One Year After."

In

hard

who

us

sold short.

during

Mansfield, Douglas

of the wind taken out of its sails

obliged

of these

certainly the special pleaders, that there is
anything else worthy of consideration. As a general rule.
| the first thing and about the only thing one hears when




be

supports
lowered,

of

the Senate floor

on

Long,

crusade

low

Minn.) used it

"soft money"

a

campaign calculated to ap¬
peal to the electorate.

wanted

story. It is essentially that, compared with the

even

the

viewpoint,

policy.;. That demands of
improved wages should

*

easy-money, easy-

an

—

strictly

credit

must

eco¬

few details here and there omitted this is the

able to boast it is

nomic

of

The Crusade Against
Sound Money

Treasury abstention from further
long-term bond offerings. While

shifting from a war to a more nearly peace
with government expenditure on national se¬

s

backing

v

big

commends the book to those who
want
to
understand
"the
basic

economy,

President

of

labor for

than

page

quirements,

a

Clearing House

composed

Concluding.

from first

un¬

eco¬

back.

1

'

and

think full employment
should'not
be the principal goal of our

high rate of activity

very

'stability'

poverty.

banks,
Humphrey-Burgess

study of this sort.

thoughtful to uneasiness rather

difficulties of

With

a

false

a

economic stagnation

unemployment,

Association

of

are,

or

"The New York

a

and

—

which need

,

The

torian of

economy' is in order. There

areas

.

employment

goal,

commercial

most

complacency.

value of the dollar has been stable, the increase in
wages
—which is one of the
principal expressions of the

proving

the

recession
.

whether

.

means

necessary
.

.

conflict between the advocates of

take note of another fact,

us

of

its

extra in¬

immediate
a

our
nation
a
dynamic,
expanding
with full
.

have

growing

needling that is constantly being applied

which could lead the

the

*

to

Beyond
continuing, basic policy

.

economy
as

than
the

.

depression.

a

a

which

the best year

*

"Let

facet

We

5.3

rise, and

the

also other

7.2

not small.

was

this

to

course,

before this Administra¬
tion took office it follows that economic
activity of late has
been higher than at any time before this Administration
assumed responsibility. And since 1953 was a still better
year than 1954 is turning out to be, it follows that the
over-all performance of the American
economy thus far
during this Administration has been better than during
any earlier time.

I

shall

country can not afford to follow the President's

duction in

is

.

its threat of

was

struggle

articulate.

or

costs

even

this

certainly be
well advised to ask themselves
earnestly- whether, for
example, the rate of house construction may not call for a
reappraisal which would lead to the conclusion that a re¬

4.4

Nonagricultural employment

*

issue
or

example in this particular. They would

3.3

Gross national product

t

Burgess

more

The

to First Half of 1954

;

Randolph

.

are

of this

Industrial

*

TV.

terest

who

Per Cent Change

-

uty,

purchase the products in ques¬
tion are already sated. But the lessons
being slowly and
hesitantly learned in the field of agriculture are not being
applied in other spheres, or applied rarely and by a few

From First Half of 1952

1

5
of

enthrone

with the wherewithal to

same

tors to which

*

enoueh

quote:

Secretary of the
Treasury Humphrey and his
dep¬

President, one may say, may be excused for not
coming to grips with such questions as these, or for not
raising them at this time in a statement obviously issued
for political purposes. Yet the rank and file of the
people

down.

fore"
Congress'

special

by

Wright Pitman long

"The effort

in

now

first half of 1952, the

1

the

written

involves far

frequently held

more

intensity of activity, but it was the best year
we had experienced
prior to 1953. Therefore, while 1952
does not provide us with as high a standard as 1953, it still
constitutes a very high standard.
*
"If we now compare the first half of 1954 with the

^

at

it

to

man

agriculture where even many of
coming to realize that it is not wise to
greater production when the wants of those

politicians

contrive

judging the performance of the American econ¬
during 1954, we have taken the first half of 1953 as

the standard. It may help us to see
the economy in better
perspective

*

word

to

standi

its

glance

may

^

going
itself, from the
charges against the
and lenders
generally \v«

of

point

Before

view of the situation in

between the first half of 1953 and the first half of

"In

such

probably most
Employment

the

book

1946."

'hard
money'
as' the
guide of all Administration
policy

ideas of this sort would be

1954.

»

one

for

the

0.3%

*

of

the

economic
production in any such depart¬
ment of the
economy, or whether, perhaps, we should not
all be much better served if the
output in this or that
line were permitted to decline — well the matter
ap¬
parently occurs to very few. It might be supposed that

small. This conclusion will not be changed if
we take account of the increase in
population. Thus, while
the total disposable personal income increased 1.40%, the
disposable personal income per capita declined merely

*

Act

Activity and Economic Health

from these facts

"the

as

responsible

As to whether in all instances there is
any
health in an upturn of

been very

omy

a

Mr.

Harris

activity will be maintained in¬
definitely without interruption in the future!

down

"It is fair.1" he

that

assure

principal author of
tha
Gross, is described in
preface by Professor
Sevmonr

book,

or

As

Thursday, August 19,
1954

.

The

activity begins to decline in almost any branch
department of business is a query as to what is the
best way to stimulate a quick revival—and often, indeed,

Continued from first page

.

.

deflation

leads

disastrous

to

depression,

conversely, an even
dollar leads ultimately

cheaper
to

drastic

inflation

of, the money.
2 The

financial

writer

and

he

has

as

hanking.

contributed

magazine

"Banking,**

azine

of

tion.

and

the

American

has

in

lance

free

a

economic

cial interest in

collapse

and

True, extreme de-

fields

has

the
spe¬

a

For many >'eafs
articles
to
the

the

monthly

Bankers

contributed

mag¬

Associa¬

articles

to

other

financial publications including the
"Commercial and Financial Chronicle !

•'Bankers Monthly** j "Savings Bank J®01""
nal**j the "Financial Times" t London I,
and

"The

many

Banker *

non-financial

t

London);

as

publications.

well «

-

Number 5352

180

Volume

The Commercial and/ Financial

.. .

Chronicle

V-

j >■;v

gsf fuTourincredi?nsys- ation^gT
fem

cset

in either direction,
anci operated to avoid

up

SUJust

of 1954

as

f,pen

the

the populists of the last
a
sharp line beinterests of "the peonfp'' and "Wall Street," modern
noDulism draws the same line to
the nation into
conflictclasses and direct
their ap-

oitnrv

!Sl
peal
|

,

Treasury

politics,
good economics.

not

"The

book,

the

How

In

"At

Hard

Crusade," serves political
illustrated when Senator James E. Murray (D., Mont.),
addressed the Democratic leaders
at their two-day meeting at the
$ Mayflower- Hotel in Washington
on ®ay 5, 1954. See the report in
''•the Evening Star" of that date,
Senator Murray's son, Charles E.
Murgay, who works in the SenaMoney

listed

is

office,

Crusade."

Money

Hard

On the

page of

same

back to the

~

times

the

Re¬

read

we

the

(p.

48):
Reserve

Federal

served mainly
as a service agency for the banking system, helping dominant
bankers achieve higher rates of
return on their lending activities
and a decisive voice in hational
economic policies." Also (p. 49),
quoting Mjarriner Eccles: "So far
as I know, there is no other major
governmental power entrusted to
a Federal agency composed in
part of representatives of the organizations which are the subject
of regulation by that agency."
\
The reader of the quoted statements is asked to believe, it
would

v™

nriHrv

tl- Jjf

m

shown

iu.

that

bankers

in

.•

the
the

ing of the SVa% bonds

„

proportion
Eisenhower

of

called

Ti-m

in

certain

throughout

drawn

3 "Bankers

Herbert

from

\

was

,

an

an advisory
sailors, rather than
farming or farm-products repre¬

b,

of

interests of all
population, all
economic groups, must

Certainly

as¬

elements

would be in

be. ln

of

elements

the

the

interests of the nation, social and economic group

so

udin& labor, business, farmers, be considered in anything
portant as Treasury financing

years

is

unwarranted.

For

the Treasury has been

con-

erations; but if
free

$*"}« COn.Ce™-

the

W1C

lnS the market Situation prior to
undertaking large financings and

DecembeV

"Banking,"

rather than to

what

implication

in Government Service "by

Bratter,

cision should consult

_

homeowners, etc. This gratuitous

criticism

a

or-

sentatives.

groups,

f?rtai? ™nat policy
poilcy

,

effect

.

.

look after the interests of the in¬

history of the United States. -nc
statement

.

.

group

vestor

appropriate

service

government

...

to

farm

or

give? One might as well argue
that the Commerce Department's
Business Advisory Council should
be composed of farmers, brick-

preface implies that the
purpose of the conference was to

preceding
administrations;
bankers,
like
others,
been

such occasions con*
unions

ganizations, what help could they

The

Ad¬

that

have

on

labor

_

(Burgess:., I might add that a layers, GI's or just "taxpayers"
Bomber °* conferences were held rather than businessmen or that
™lth le?dlnsf ^vestor groups in the Agricultural Department
Pe of the 314% bonds the ,offer~ ™hen necessary for a policy dePe"od Pr®c®dinS
lllg
V"
risinn sbnnld pnnsnlt.
advisorv

ministration is smaller than in the
and

suited

»

this
previous governments were
set forth in an article by this
writer last year.3 It was then

two

Treasury

1953.

^

free

and

economy

interest

rate

markets

individual

On

Continued

op-

to have a

are

we

lm-

on page

22

that any increase of
rates or tightening of

seem,

interest

the book

like

paid from

5

to

5%%

.

when Treasury bonds brought

..

book

these groups are not confined to
commercial
bankers.
If the

v

bankers

cial loans

■

n2S

21

'Ar.'
credit 4s-designed to help "domito -'hark nant bank«rs" and any oppositedays when commer-' ?°ursf. ls ln
a general interest,

(p. 38) we read:
'"Some

of

one

which published

Affairs Institute,
"The

as

.

of the Public

the original sponsors

the

System has

ends was

tor's

on

Federal

Board ! Resulting
in
Official Policies Beneficial to
the Banks.

but it is

Century

tieth

Rmlrt.

Banks

and

serve

doubtless effective Twen-

This is

nf
of

fluence

In effect "You
shall not press down upon the
brow of labor this crown
of
thorns; you shall not crucify man¬
kind on a cross of hard money!"
homeowner.

(697)

•

X
89 o£ bar*ers which ^ «PPeared
AdminfstraUon it S" ? th* Con§ressional Record" a

The facts about bankers in

(n) Charges as to the Supposedly
Dominant and Wrongful Inflnpnn»

that recent innovation, the

anH to

GI

hower'

and

4-u^

—

•:

wia•on S doml; fT days before'
r? 1S a s°urce ,°I
In the book's preface (p. xiv)
t?1
ln.,the financial we read: "Is debt policy a matter
d%n
^urther 11 states that: of concern only for financial in}l. he fore9oing are what the stitutions, or are the interests* of
cs cal1 big bankers> and used abor' business> farmers, homesyrion2/mousl^ with big business." owners, taxpayers involved?

'

may have had in mind.

and farmers

the workers

Ml

but it should be emnha

sized that as presently operating
Federal Reserve influence is used
to prevent the development of
such a situation as Mr Mellon

drew

to

only is

there no basis for charging such
views to the banking profession

disasters

h

V:/:,A■ :S

«Vin^2*

incorporating central bank- something since then. Not

^'influence

•c

■■?■■■<, >/■; "•

■■

}Vas " ™rong far Banker Eccles
J? accept a post on the Fedeial

yields close to 4% and were ex- Reserve Board,
empt from taxes-.
'
•
'The fact that banking is rep; "Early in 1953
the President resented in the policy-making of
of the Bankers Trust Company the Federal Reserve System is
(said): '.
These rates are still; not so unique as those we have
low, both in historical perspective just quoted think nor unfitting
and in terms of What is desirable
in a country that believes in rep-...
.

.

.

.

for sound

.

.

.

.

banking.' "

,

.

.

V resentative government in which

This point "boils down to
the all elements concerned particiquestion whether cheap money—v pate in the formulation of policy.:

pegged, low interest rates—make. It would be indeed strange if
for sound banking. One need
only no one with shipping experience
ask oneself what the
soundness4 were named to
the Maritime
of

interestBoard, no one with communicain- ! tions experience to the FCC, no
terest rate is the price one must
one with business experience to
pay for borrowing. The price acts
the Federal Trade Commission,
ijr part as a deterrent to unwise I no businessman to the Commerce
borrowing. - A too-low interest Department's Business Advisory
rate tends to fostbr harmful in-'Council, or to emergency control
flation.
agencies, etc. It would be strange
There are times when the econto set as qualification for membanking

would

Irates approached

omy needs

if

be

The

zero.

the stimulus

interest rates

to

of lower

v

borrowing and stimulate production
and employment.
Also, there are
times

of

should

boom,

be

encourage

when

made

less

to avoid inflation.

ciple widely

borrowing
easy

This is

recognized

so

a

as

prin-

by

stu-

dents of money and
banking here
and abroad.

But,

has been par-

as

ticularly evident in other countries, principle is often shoved
politics; and in this re-:,

Harris

sPue this u- S. A. is

You—like thousands—know the need for sound-condi¬

tioning.

no exception,
Humphrey's view,"
p. 35, "that interest
still low, expressed in

Secretary

we

read

rates
the

on

are

Spring of 1953

serve to
the

^

to

only

bankers

reassure

campaign

can

that

...

restore

interest

rates to the
pre-depression levels

wtuch they
be

carried

consider normal will

Secretary
does

Humphrey's
v

not

quoted

-

-a.—

necessarily imply

Jh intention

on his part to work
their increase.

It is

one

thing to

compare pres¬

ent rates with historical experi®nce; and

obviously, if we are to
history we Cannot help

bok

at

°°k

at

bur

pre-1930,

since

most

of

history occurred""before'1930"

But it is
another thing to impute
an

intpntwT

xning 10 impute

+

f!n.tl0.n to restore rates to

The^^harH^ money
highs.
hard
Ane

views

Andrew Mellon as related
Herbert Hoover
subsequently
(P- 40)

as

of
by
are

representing a
busi¬

urrent school of
thought in
ness circles.
,

^ube Andrew

formula

Mellon

^. ai?dlinS booms:

.

.

.

Tdqui-

undoubtedly

of

banker

associated

been

with

a

a

long, long
You take

find

own

As

indicated above,
emphasis of this question
the
word
"banker," the

we

if

the
on

answer

have

is

"AVho

is

"ertU8'

better quali-

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The implication
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If bankers should not be chosen
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-22

The

(698)

KContinued from page 21

•

concerned with immediate
gain. By late Septem¬
with a decline already under

groups

-

fommercpl andt Financial Chronicle

is

what

Criticisms of Banker-Backed

(III)

Campaigns

Sound Money

money

1946

served as the first
of
the
interest

...

trust

brain

organizations
tiave
participated in American
public discussions of money questions over many decades;
They
•did not originate in 1946, the year
of
the
Employment
Act
with

e*c
Telephone & telegraph. __

"crusade," the

Association
book

The

the

of

pages

to official

profits^after

such public edu-

cation at the time was

evident

in

mercjai

members

of

the

banks,"

jrrom

on

Congress

note on

we

76

p.

snsDect

this

sentence

the Treasury and Federal ReBoard for their public debt
credit
policies,
launched
then*
crusade.
Small wonder,
tng

-n

cbne tn

J953

Charges Relating to Banking
Banks

the

-

to "Subsidy" of

Profits and

the Govern-

by

mejl*
•

t

r*

+„

had

bank

Qn p

tnoney*

we

0pened

^11 t

to

1936

report

Wani^0K,tir.d,C;ilr>n'leS.t'St
gains. On p. 5
,

America™ bankers

after taxes rose

socialize
Badical3propoSlsrto1 sociaIke
Itadical

proposals to

the
Ure

feankmg system eliminate the interest rate subsidy on government

iMjrrowing, or subject the ba keis
to stronger control made no headway," the authors regretfully add.
like

statement

A

that

just

de-

a

f^nd: ".
with a

.

the year
significant
.

despite

a

.

in

investments, bank
" The statement in

rose
,

drop

.

d

newsoaDer

^member banks'tlrnersV"on
their capital' as percentage with
comPared durexactiy the same
^ f. t half *of 1952. Meas-

ting!

do]lars

percentage

p

hi|her

tha«

1953

but

—

than

in

ratio bank profits
in the first half of

in the first
shown

as

rather

by

,^alf of i952
the

National

may

places

one

increase

an

Corporation
ks

Did

rose

more

excluding
than that.

more

money"

"hard

line

1953

of

unduly?

pockets

In

700%»

than

earnings
even

so-called

the

policy

of

widely respected

monthly

of

letter

National

the

City Bank of New York appears
iabulation of 1952 and 1953
in

a

tn

a

profits

this capitalistic country.

long list of fields of activity
...

?

and

1952
oet

,

Joel
1953

income

..

,

,

a

VeuWeiGnf

taxes

increased

by 11%. But here is a list of other
activities as reported in the same

table,

showings how

much

their

profits increased iir 1953; as com-

pared

with 1952:

:




-.

and

7fiF

'

'

This statement interestingly re-

the book. Not

Xf

*-he slightest attempt is made to
document the statement that certal" banks are demanding high
and quick profits Are we to conelude that profits have no Pjace
in

,

commencal banks'

after

quick profits the hard
money advocates always talk of
current problems . . ;
we read
high

banks'
April,

the
the

1954 issue of the

The passage

mixture

the

is characteristic of
and

of demagoguery

By what study has it

most

vigorous critics of such
or even critics at. all?
evidence is presented in the

subsidies,
No

The

book.

the other
abundant evidence

latter,

gives

hand,
that

its

authors

on

"the

are

most

critics"

of subsidies to
banking and most firm believers
vigorous
in

an

favorable

economy

inflationary

ever-upward

such

as

are

based

are

higher

Government

on

se¬

subsidy to banking

a

fallacious

on

contain

and

tions

that

assump¬

unwarranted

implications:

(1) that Treasury
interest rate policy is formulated
for the sake of banks'
that "certain

earn

their

on

ment

securities

undeserved

is

unearned,
for which
services of equiva¬
an

"rakeoff,"

they render

no

lent value to the nation.

None of

banking, that banks should be

eleemosynary
A1

i

institutions
..

.,

°.n^4U

* • •

or

to the state?

should bel

?

same

.

1S ^hvs

the book (p. 69):
S°fe °* * e *?ard

money- coalition is composed-of
4ApHI ^

19S4/press

release H-462.

these

assumptions

implications

or

community
to

only

is

it

Here

is

"The

light

"another

it

The bank states:

"One

sidy theme
acquire
cost

no

(p. 81):

.

.

of their funds, and
affords supporting in¬

more

—

alive'

as

put it.

'worth

Since 1939

given

or

"In

view

central

banking and commercial
banking systems; nor in the pres¬

analyst

than 500

have

either

their ident¬

up

generally low

and liabilities, there
public interest involved in a

earnings which will

close the gap between the market
and book value of bank shares
and enable banks to build and
attract capital."

Big

Also

and

Small

Borrowers and Lenders

—in Antagonistic
The

Banks—

theory

that

Classes.

bigness

is

present central banking sys¬
tem.
This is linked to the
Shylock

prejudice against all money
lenders, a prejudice as old as civ¬
Thus (pp. 83-9):

"Interest

rate

1953

asking for easing of cred¬
subsidy to banks, then

is

a

Reserve Board, "The Fed¬

Reserve

System — Purposes
and
Functions", 3rd edition, 1954, especially
Chapter IX, "Influence of Reserve Bank¬
ing on Economic Stability."
6 For

such

Mr.

thing

Gross

at

least

there

is

no

"free market," nor per¬
haps ever was. In his book, "The Legis¬
lative Struggle," he writes (p. 28): "The
so-called days of laissez faire were
days
when

flict
cial

group
were

a

organization and

also

essential

structure.

mythical

For

beauties

constituted

campaign
tions

as

of

valuable

for

private

group

of

parts

Adam

the

Smith,
free

propaganda

business

against state-fostered

the

con¬
so¬

the

market

in

the

organiza¬

monopolies."

Admittedly, tight money policy
the

in

dictated

Reserve

Federal

by national needs would tend to
make bond portfolios less liquid

thereby tending
willingness of banks

than theretofore,
to reduce the

extend credit, but

cisely

that is pre¬

central-

of the aims of

one

tightening at a time

boom.
Now

we

come

class-

a

upon

against-class argument (p. 70):
"An increase in interest rates
from the pockets
the pockets of
lenders. How valuable this trans¬
transfers money
of

to

borrowers

operation
is

This

of

one

many

where the book caters to

Note

.

places
the his¬

against

prejudice

Street."

"Wall

bank

profits

the

reported by the Federal
8, 1954.

1953

for

the

to

been

has

larger banking institutions.

Reserve Board on Feb.

Net

1953

Taxes

Profits of

Banks After

Total

Percentage of

as

Capital Accounts:
York

City

member

banks

position of small banks and small

Chicago member banks--

investors

Reserve

at

.

.

.

Book

small

losses of

to

consequence

small

investors

their

.

.

ma¬

They

government

bonds

that

tacitly un¬
they could always

sell them at par
for 1953" disclose
.

.

Bank reports
"how the large
.

recov¬

of bond prices
if the bonds
they bought were held to matur¬
ery

ity

...

Country member banks—
All member banks
Thus

.

that

quote elsewhere

profitwise

small)

the

banks did

New York and

profits

which

herein

show

country

(i.e.,

better than the

Chicago (i.e.,large)

banks. The book's authors are in¬
consistent.
They argue that the
book losses that attended the
rise
in long-term interest
rates

ing

the first half of 1953

for small

were

dur¬

bad

banks, but by the time
was published, those

their volume

book losses had turned into
book

profits, concerning which
they are
silent.
The authors point to book

see

that

,

1953, a

in

of
tighter,
then easier;
money,
country banks eara®£

proportionately to tne
than the big New Yo
banks. Moreover, in the very year
when the "dire and consp1™10 "
ial" events alluded to in the bo

more,

capital,

supposed

to

be

0CCUI11

,

big centia^
reserve cities, New York and
y
cago, were earping at a sma
ratio to their capital than in H
»
whereas the country banks ea
the

1953

we

8.1

year

were
.

Figures for

7.8

city member

banks

banks
.

time when it was

a

derstood

we
5 Cf. Federal

eral

ble 2.

impair

prices, and the subsequent

it?)

ma¬

(43.8%), according to "Treasury
Bulletin," March 1954, p. 31, Ta¬

New

increases

duction

in

short

our

banks gained from the initial rise
in interest rates and fall in
bond

in reserve requirements
(and weren't the opponents of the
Treasury's sound money policies

in

are

or market price.7 A
larger part of' the -portfolios of
government; securities
held by
country banks (44.8%) matured
within a year than in the case of
New
York
and
Chicago banks

toric
an

evil in the economic world is cat¬
ered to in an effort to break down

to

as

"book value"

fer

(V) Statements Calculated to Set
Off

maturity,

turities, which fluctuate little in

of

accounts

level of bank

par.

.

securities

tal
a

the

allow

:
holdings of govern¬

Most banks'
ment

bank money

system of American capital¬
ism, free markets, etc.e If a re¬

ent

vestor.;.'';'

to

the

of

of

FDIC

assured price of par at all times

capital ratios between bank capi¬

bought

existing

than

ity by merger.

and

our

mar¬

dead

stock
more

liquidated

the

redemption value before maturity
have been savings bonds espec¬
ially designed- for;/ the small in¬

liquidating

more

bank

one

banks

jor

that the book's auth¬

the result that banks

commercial

Reserve

do not believe in

.

frequently valued in the

require¬

'

It appears
ors

at

.

.

ket for less than their

'reserve

in

ments.'"

banks

.

securities

:

earnings.
"The height of the
(reserve)
requirements, in combination with
prevailing cheap money policies
and rising
costs and taxes, has
repelled investor interest in bank

by Federal

.

reduction

.

.

government

:

;

quirements is that it allows banks

value

Comptroller

and

The only bonds guaranteed

by lowering reserve re¬

to invest

the

from date of issuance to

aspect."

-

country
New York

tion,-but -^certainly, no guaranty
bonds of the U. S. would have

an

aspect of providing bank

reserves

for

for

that

Crusade"

Money

tighter money is in the inter¬
est of the banks, it is worth noting
that there is as the National City
calls

1.52%

market

that

Bank

on

for whom
Gross losses
securities in

There may have been an
expecta¬

contentions

the

of

Hard

on

the

True, some small investors may
have sold bonds at the bottom
ot
the 1953 dip in the bond

discusses the meaning

probable effects of the latest
requirements.

the

did

banks

1.33%

were

and

showing

than

being shed.

and

Gross

market

reduction in reserve

of

1953

prices, if bought at

July 1954 "Monthly Bank

In

and

miZ

banks to carry government secur¬
ities at par, regardless of

Letter" the National City Bank of
and

by

a poorer

in

charge-offs

Both

are an

New York

losses

on

Currency

themselves any good.
In its

dh

shm*

banks.

ren¬

are

not

statistics

securities

country

1953

implied that large corpora¬
evil doing no one but

tions

variation of the sub¬

a

and

big corporations
else's benefit; and

and for no one

ilization.

is demonstrated.

small

banks

dered

will

total

on

indicted

securities

services the banks render free to

or

holdings of Govern¬

on

tears are

profits; (2)

influence

banks"

1953

Lumer, made

showed what can

the national

S

market

assurance' thit

no

profits

securities and prof
securities sold were

statement and reiterate it
again and again and again.
We
are supposed to
believe that the

is

years.

claim

book's

wage

for

banks

this technique: make

be done with

an

experienced

we

during the postwar
The

to

.

ur|d

would

your

cisions; (3) that the interest banks

(Oc-

you

but cannot, just as¬

Hitler

it.

sert

control Treasury interest-rate de¬

Bulletin"

sound impressive, city Bank of New York tabula¬
it in its proper tjon which we quoted above
setting.
Is banking an inordi- —the 1953 increase was not as
nately
profitable
business?
In great as for many other lines of
1935, corporate profits after taxes, activity.
hanks included
were $2.3 billion.
„In rati0nalizing the demand of
They lose to $18.6 billion in 1952, certain
banking institutions for
•quoted

dize the commercial banks."

For the first half of 1953, the
Reserve

something

If there is

like to prove,

banu

atT

country member banks, 0 96% Z
average total capital; and for
New
York City banks, 1.18%.
In other
words, the big, slick New York

large

therefore

subsi¬

newspaper

«jrec|erai

for

fluence to bank

curities

.

so

...

which

payments

spiral

profits,

^ticle

«well the banks

they

rediscount

profRs

en¬

its

1954

later.

recoveries

corporations."

interest

interest rates

they get the authorities in

means

sys¬

an

services

banking

book

that

subsidizing

bank stockholders and

they now seek higher government

rates which
enabled commercial banks to furtjier increase profits. In the first

jhe book is that banks ma e too
large profits, that by insidious

banking

bankers have
different attitude

Federal Reserve Board action
raising

half of 1953,
deposits and

+•

with

1941

charge-offs

free

1953

Federal Reserve

that they may be
On p. 82:
.
.
this

are

the authors instead

jja(j

have

woujd

then, that bankers saw a need to
inform
the
public on sound

(IV)

1941 r

heard.
payment [of
interest to banks] may be unduly
swelling bank profits, enriching

so

the

jogs

compared

appear

shares with

j^q mjuion in 1934
and ne^ profjts of $454.6 million

.serve

the

itself,

tirely

so, it is strange that the sup¬
posedly - so - influential
"certain
banks" do not at such times howl

been determined that bankers are

rates and financing policy.
earning handsomely
s decision was taken
^in
-^34
and
should
have been
conv^"tion in May, 1953. satisfied to let well
enough alone.
It was on May
11 that the 20
Actually, the $800 million repreOemocratic
Senators
and
Consents the
difference between
a
ne^.

subsidizing

tem

the

though there is

If

in the book.

its

who had been criticiz-

to

of

those

banks

sreedv

the

that

The NYSBA

pressmen

critics of subsidies whenever

bottom

re¬

Is it the singling out of
special punishment?

might

one

money

at

s

unsupported charges that abound

0f the book.

of

speeches

recording

taxes rose by nearly

^qq mpiion for ap insured com-

"Congressional

the

Record"

or an easing situation^
Subsidy of Banking is another
(p. 80):
;
"Bankers are the most vigorous

ening

target of the book

released by
the Comptroller of the Currency.

for

need

country's economy
science, but an
that requires the central in¬
a

has

times

at

19

of big New York
bought governments

which

the Federal

as

the banks for

exact

an

stitution to feel its way, whether
it. is seeking to counteract a tight¬

appropriating
an
"educational"
"sound
™oney "
for

$250,000
for
campaign
on

not

art

a^aSe fcaPital
^hereas *n
?952 they earned 8.17%, accord-

is

32)

(pp.

steadying

is

Bankers
criticized in the
State

York

New

The

in

15
11
17

activity

central-bank

that

ment

group

soft-money crusade.
.

want

not

through the

go

they
than themselves,
are used to
maintain farm prodIf dearer money is so good for
the banks, why don't their 1953 tion, to provide low-rent hous¬
profits reflect it? National banks ing, schools, or low-cost school
lunch programs.
When it comes
in 1953 earned 7.92% on their

However, as we noted at the
outset of this article, it is rather
the book itself which is identified
self-styled

that he did

was

back window
either. Students and practitioners
of central banking are in agree¬
to

in the interests of a much broader

tion.

a

go

,

1953, they certainly were working

pins the name "crusade" on the
of opponents of infla-

activities

to

want

not

windshield.
What
President presumably

If the banks really engineered
the tighter money conditions of

Crusade" is concerned.

with

/0 P°^e^> gas>

Restaurant & hotel
Investment trusts
Sales finance —

Hard
Money
The book

"The

meant

did

Board

quired?

financing

the

ABA

the

29
JJ
21

St

it

that

but

through

32
39

Sound-money

the

31

F°0CJ .chain stores.

boosters."

which

13

Aircraft & parts
Shipbuilding

employment."

"full

higher interest rates in the
Spring of 1953 a business maga¬
zine editorialized that it was glad
to know that the brakes worked,

„

.

..

Debt Policy

book

at

products. 11

wood

the

When the Treasury was

Paint and varnish___r—__23
Cement
Glass products
12
Iron and steel
37

42): • "The' hard
crusade got under way in
The Committee on Public
40,

(pp.

in

pression

12

Furniture,

book

Lumer

and

Gross

The

states

products

rubber

are not spelled
beyond the ex-

coalition

money

out

36

Tires,

in
the
"Wall
Street
'expressed fear
that
Federal monetary and fiscal au¬
thorities might act too quickly to
try to offset 'readjustments' in
some phases of the economy.' "
The
objectives
of
the
soft-

Journal"]

Other textile products
Clothing and apparel
Shoes, leather, etc

discussed below.

are

...

reported

"Tobacco products
16
Cotton goods ____19
Hosiery, knitted goods
12
Carpets, floor coverings__25

petually low for social purposes
:

Bankers Association

can

11%
97
14

Dairy products
Meat packing
Other food products

securities has
to be determined ad hoc, and it
is this duty which the Congress
has delegated to the Treasury Department. The dangers incurred
in attempting to
fix rates perof Treasury

the President of the Ameri¬
[as

way,

Against
Sound Money

-issues

Reserve

such

quirements

ber

The Crusade

profits

raising of reserve re¬

a

economic

Thmrsday,August

. ►.

banks of the two

ings ratio did not

decline.

preliminary FRB data sho^
that country banks earned o.
in both
1952 and 1953, whereas
the ratio for New York banks ae
clined from 7.1 to 6.3 and that
The

7 Records show that

durin?

run

to

the first call

195a

by cwnerc ^
25 y
f
datfr and 3.75

ernment
securities
held
banks on the average had

1954

Volume 180 -Number 5352

..

The Commercial and Financial Chronicle

.

(699)
anka
the

Chicago banks from 8.6 to 7.8.
The figures do not support this

al,

dig.

.

mu3

)

of

J

V

Y»'

>1

ther

fork
on

thp

lIie

of those

86%

1953

annual

polled

in

nom

following
appeared in

the

But

ssea

which

in

survey

annual

similar

a

finances

sumer

fully

should ;i be

"Income in 1950 from

units; the
indicated

As

this should

same

in

he

of

general

been

a

It is

...

estimate

that

con¬

$6,000,000,000, and possibly
That
is^ in excess of the
amount
now

which

the

a

to

"Even

if

in

remote

years,

is

that

terion,
ment

the

when

small."

are

"Furthermore,

very

based

cost

(Italics supplied.)
A large part of the
population
holds savings bonds, on which the

is

States,"
by Lewis A. Kimmel,
1952, p. 119) : shows that some
43,000,000 individuals owned Ebonds.

Federal

of

Treasury

Reserve

Which

Are

Private

-

and

Policies

Fundamental

to

Enterprise Banking

We Know It Today.

as

in

9,

pp.

29

and

passim:

for

key to the interest-boosting spiral
of 1953

lay in the Federal Reserve
Board raising the rediscount rat®

tightening the
continuing

credit from

all

demand

sectors of

for

an

ex¬

panding economy."
Apparently, the
believe, whenever there

authors

\>i

demand

for

credit

it

should

metf The monetary authorities

have been equipped
by law with
powers

too

to

credit when

ease

it

is

tight and to tighten it when it

is too

easy; powers to

in al¬

move

ternate directions. The book evi¬
dences a strong bias in favor of a
monetary and credit system which
moves

only

in

the

direction

of

expansion.

such

to recognize
or infla¬

appears

thing

boom

as

tion, preferring instead the
phrase

"full

operates

employment."
It
the
theory
that,,

on

whenever there is

demand

a

for

from
consumers, business¬
men, municipalities and
others,
that demand should
be met, and
a

interest.

fixed predictable rate of
The dangers of inflation

it would tackle
by non-monetary
controls over materials and
prices.
Its thesis
amounts to an argument
in favor
of a State-directed econ¬
omy
of

using direct controls in place
general controls.

Appendix tables
book give
cost of
and
m

5

estimates

interest

others

interest

as

and
of

of the

9

the

culations

a

result of

rates in

the

rise

mid-1953,

were

They

the effects
of the

cline in interest
of

the

Quotations

increase

just
do

when

about

not

at

reveal

.

to be

in

if

"Patman

report

in
the

evidence

in

its

Sub¬

into

ac¬

to

of the past two
years, sees no rea¬
son to
alter the recommendation

subcommittee

the

following

of the views of Senator

Paul

Douglas
of
Illinois,
^Douglas Gommittee" and
■Patman Committee"




speak

the
the

for

is

not

to

that

there

is

shortage
Thus they are
le^

of real

a

savings.
into
the
launching more capital
into

error,

the earlier

than

error

of

projects
let

them

are

the
book
observes
(p. 33): "Apart from this belated

response by the Treasury to pre¬
vailing market rates there was no

When

it

Treasury's defla¬
managed philoso¬
the

book's

pur¬

here, it describes the
Treasury as responding in its in¬
terest
rate
policy
to
market
forces, whereas elsewhere, as in
pose,

the

ever

cheap

-

-

money

school advocates must make Ben¬
turn

in

over

his

It's theory is that all wants
legitimate and should be fi¬

nanced

by credit,

if

even

money

has to be printed for the
purpose,
one must conclude from this book.
Gross and Lumer write (p. 106):

"As

the

of

part

effort

to

'sell'

the

suits

as

-

the discussion of the 30-year 3 Vis

high interest rate policy, Sec¬
retary of the Treasury Humphrey
asserted that
would

higher interest rates

induce people to save and
more
of their income in

invest

Treasury securities, thereby re¬
ducing the demand for goods and
and
easing inflationary

(on pages 19-20), it describes the

services

Treasury

pressures.

making

as

the

market

rate of interest.

can

"Korea: Hard Money Wins

portant

Battles,"

"Between
of

we

mid-1950

Im¬
told.

are

and

the

end

1952,
unlike the World
War,II period, this wartime in¬
.

crease

stead

lower

various

at

places

rates."

the

in

to

such
be

one

which

to

Obviously

"victories"

pre-1953

pinned

nuoted.

the

assumed

cannot

Administration

office

in

1953

or

to the former banker held respon¬

sible elsewhere in

"As

an

the volume.

alternative

to

a

8 Joint

Committee

1950.

pp.

9 Joint

Report,

agement,

the

hard

Economic

Subcommittee

and

Fiscal

1953]

provide

Credit

1952,

of

the

Control
p.

36.

the

on

Policies,
Economic

Subcommittee
and

Debt

a

strong

incentive

to savers."

more

From

have

of

been felt

rowings.

from

a

1953, and that
But

to

the

was

The

book

the

Home

Loan

Bank

in

the

book's discussion of the 3%%
issue on page 19, where it states

that the announcement of the is¬
sue

was

preceded

by

Treasury

with

representatives
banks — among

commercial

others—and

quotes,

with

italics,

the "Journal of Commerce" to the
effect that the 3 lk % coupon had
been

•

We have

already commented on
the Treasury's
pre-financing con¬
ferences

with

bankers

and

other

bond-buying groups.
As for the
"anticipated 3^4% coupon," there
is

nothing mysterious
being able to

about

market

the

with

guess

fair accuracy what interest would
have to be paid to float a

large

long-term issue.
The

quoted

May

8,

n a n c

i

1 institutions

a

with investments in

S. savings
life insurance reserves

bonds and
—rose

in

by

1953.

on

Man¬

together

—

more

U.

than

That

is

$12

billion

the

highest
gain of record except for the 194345
period,
when
the
wartime
.

sumers'

.

.

the

goods

shortages of
produced

of

figures
savings
in

mutual savings
loan

include

much

a

higher volume of savings.

.

con¬

.

.

backlogs

commercial

and

banks, savings and
associations,
cooperative

Indeed, that

of

is the ob¬

central-bank

money-

tightening policies.
When

the

volume diminishes;
bank profits tend to be
restrained.
were possible for the
govern¬

If it

to

the

cause

price of auto¬

mobiles, for instance,
it

to be raised;
perhaps be claimed thai

could

this

would

the

add

to

automobile

but

it

would

increase

in

not

atk

ac¬

undiminished

car

by

same

applies to bank

Credit

commodity
"price."

that

would

be

sales.

lending.

profits ©if

follow

price

companied
The

the

manufacturers;

is

in

is

that

"sold"

effect

a

at

»

Concerning the flexible policies

statement

"Journal of Commerce"

of

was

the

pub¬

lished after weeks of
guessing by
the market as to what sort of a

utilized

in

Reserve

anticipated.

Board, the following di¬

1953

by

the

Federal

gest of remarks made by Dr. O.
Emminger, German Executive Di¬
rector of the International

Mone¬

tary Fund, is timely.
Dr. Em¬
minger drew attention to the in¬
disputable success achieved by
the

U.

S.

credit

called that
the

policy.
He re¬
early as in May 1953*

as

Federal

Reserve

System had

systematically and energeticaly setabout the task of
widening the
credit basis of the U. S.
banking:
system and depressing short ami
long-term interest rates by

long-term
bond
the
Treasury
might offer in starting its ex¬
pected funding of the public debt.

serve

means

and the

Thus
nal

Jan.

on

of

20, 1953, the "Jour¬

Commerce"

in

its

"News¬

"In the current

mar¬

necessary

of

diminish.

jective

ment

various

"Savings accounts of American
people in the major types of fi-

release

press

ing rises, fewer loans are incurred
banks; the volume of borrow¬
ing by bank customers tends to

near-demand

"insiders"

cost of borrow¬

at

inten¬

places re¬
being able to
profit from Treasury financings.
This seems to be implicit also in
to

for

.

economic

against longterm issues in general is to
argue
for continuance of a
huge out¬

fers

.

affairs, when the

of

argue

or

profits-

higher

tightened money in the first half
of

asser¬

on
their loan?*
when interest rates rise is undeni¬
able.
But, as in other

debt management.
Any long-term
U. S. bond
offering would have

tion.

unsupported

percentage return

se¬

matter

a

policy1*

an

a
corrective recessicm
it says (p. 36).
That the raising of
rates, as it fc*
here called, was the result
of eco¬
nomic
forces, not of diabolical
plotting, we have already pointed1
out.
That banks make a
.

Treasury bor¬

But this is

re¬

They were even,
during the wartimewhen the-2%%
long^

simply

stage

long-term rates than

short-term

a

Treasury

conjunction with the tighten¬
ing of credit, raising rates set the*

di¬

more

been

the

In

already pres¬
Treasury went into

much

have

tion of the authors of
the book,
i-"
"The decision to raise
rates did
serve to increase
lenders'

were

a

for

was pegged.
The "bigbanker oriented
Treasury

is

pay for long-term govern¬
ments that sets the
pace for money
rates. The conditions for a rise in

had

demand

problem

term rate

which the money market is
will¬

on

riders"

problem to

financing

fungible than

ket, a 25-year government bond
would have to carry a 3% coupon
as a minimum to attract material

Board

a

ing to

when the

less

for many years.

securities; and it is the price

letter" said:

"The
on

opposite effect
It is a popu¬

...

fallacy that high interest rates
[such as those of the spring of

1-2.
Committee

report

General

on

the

An

.

.

lar

boom, and
Report, report of
Monetary,
Credit

.

[sic] result.

book

"victories"

Mhard-money proponents" sim¬
the

other

are

1954:

higher in¬

interest

references

appear

of

.

handled

was

of

At

.

and" they

of

Treasury,

What

"Free
current

mark of the
money market in the
sense that their
market is broader

conferences

complete."

chair¬

will

consumers

grave.

-

of

borrowers
for
the
available for investment.
Government bonds are the bench¬

ries

willing

are

newly-created money, prevent the
interest rate from rising to warn
investors

jamin Franklin

tionary debt
phy. ..."

rate

other

would

to

release for production of
capi¬

tion in interest rates made by the

the

with

and

permitted

manship of Senator Douglas."9
Alluding to the mid-November
1953 financing as the first reduc¬

of

that the

say

are

it is but logical
for banks to
pay greater attention
to securities.

to

When the
Treasury goes
into the market it has to
compete

money and

function,

consumers

there is
business credit,

interest.

rect effect

to perform
which is to
tell would-be investors how
many

the

under

to

we

.

Where

mittedly added to the tightness of

Rogge:
"Cyclical fluctuations (depres¬
sions) come because the interest
proper

not

was*

needed

policy (p. 21)."
a development is
perfectly
during a period of busi¬
and
inventory adjustment.

ness

of

public debt indefinitely.

submitted

this point made by

Sickle

is

"Increases
in
the
supply
of
loanable funds during the expan¬
sion phase, coming from stocks of

it and the changed circumstances

on

Van

this

rate of¬

which

Such

the market for
30-year money.
The funds which
the 30-year
issue took out of the market ad¬

monetary

"Introduction

by

admit

that

natural

It is true that the
prices of gov¬
bonds
are.
generally
viewed as the best

ent

Congress

ment

ernment

Treasury sets the general

exceeded

advised, this was "a 'big banker*
Treasury debt manage¬

par¬

But

banks-"

oriented

private

long-term interest rates.

several

necessary to attract the
funds (p. 20),"
In short,

a

criterion

in

lion, "suggesting that the
fered

..

standing demand

"The

taking

from

..

tal goods.

Committee"

after

the

long-term

interest rates

following pertinent passage

quote

its

ratos,

ticularly for
borrowing."

signifi¬
charges

a

service

1952 stated:

committee,

to

for

time

commercial

scription totalled

grounds.

issue

resources

Endorsing the foregoing views,
the

restoring

several

the

even

.

consistent

of its powers over

we

stabili¬

subsequent de¬

rates. On the sub¬

tables

.

securities

Economics,"

rec¬

the Federal Debt."9

on

ilar to

early 1953.

end their tables and cal¬
in

money rates
their peak.

ject.

purposes

goal?

a

on

first

1953

offered in October
1953, sub¬
over $12
bil¬

were

money

all

the

rate

cost should prove
cant

extra

to the government

It will be
noted that the authors

carefully

zation

establishing

The

.

general

at

our

policy. The desirability
of setting rates below the
ceiling
should
be
fully
recognized."
(p. 130)

to restrict credit and raise

.

interest rates for

catch-

credit

met at

.

reversal

The book
no

".

employment"

Should that be

some

vital¬

am

"Douglas Committee"

count

This sentence goes to the heart
of the subject.

be

I

"full

thus

institu¬

or

housewives

and credit

interested

people

em¬

long-term rate ceiling.
Such ceilings
would, of course, be
subject to statutory adjustments,

to

up

and

is

the fallacy that
working
object in itself. In the USSR

with

ommended:

posi¬

reserve

tion of member banks in the face
of
the

a

him

not

am

tions for the fun of it.

The

rapidly forcing interest
in early 1953. Thus: "The

rates up

is

I

defense

or

force

on

short-term

ly concerned, however, as to what
will happen to this
country if this
policy is not changed.
."

the

book criticizes both the Treasury
the Federal Reserve author¬

and

holding

castigating

and

ities

and

war

the, labor

If

might be given
2Vz% ceiling for
long-term bonds and a pattern of
rate ceilings on intermediate and
to

so¬

serve, but ultimately and really
with the Treasury.
1 am not in¬
terested in putting anyone in the
scorn.

overfull.

"Consideration

The responsibility for
this lies proximately and im¬
mediately with the Federal Re¬

.

On

has

all

public

be

Major Purpose

Official Decisions.

paved the way
general rise in interest

not
by
By their cri¬
conclude, employ¬

overtime

times.

lies ahead.

pillory

|

(VI) Criticisms

an

"the

least

never

action

the

in

investments expanded faster thaw*
their
loans," it is pointed out;
When $2.2 billion
8-year bon<£«

Of special interest to
the financial
community is the statement that

in¬

everybody works; women doing
heavy manual labor. The USSR

ciety has been greatly disturbed
and convulsed
by the increase in
the cost of living which has taken
place; and no one knows what

interest accumulate and is paid as

part of the redemption value. A
study by the Brookings Institution
("Share Ownership in the United

whole

our

be

"For
years

emphatically condemns the Treas¬
ury's

believe

never

take outside jobs for
patriotic rea¬
sons, after the emergency no such
jobs should be given up. This is

considered

amounts

at

period of

a

to

seem

should not be available as well
to
banks is not made clear.

small

Describing the 30-year 3V4%
loan announced
by the Treasury
April 8, 1953, the book (pp.
19-21)

this

measures.

may

ployed

understatement

*

the

that

assurance

with,

activity

were

possibility, the added

no

we may

during

total

a

state

boom should

a

monetary

more.

rates

best

at

of the

residen¬

we*i>

Just why any
oppor¬
available to big
banks*

tunities

Enrich Banks,
Implication That
a

23

larger lending in¬

stitutions."

to

the

This Was

of

page 5.

authors

terfered

government

interest

and

With

1939.

The

pays in interest.

doubled, which

level

Worked

a

opportunities

created for the

(VII) Contentions That Treasury
Financing Policies Have

"ideal" policy would work. It
did
not work in the
period from 1933

there

increase

on

There is

a sub¬ of
meeting the interest on the
of \ the public debt would not equal the
frequency
of such receipts.
A cost to the government because of
great many people forget or dis¬ the rise in prices that has
already
regard
these
items,
especially taken place. [Italics supplied.]

stantial

sustainable

construction,"

authors

inflation; so that this inflationary
price increase, then is already
costing the government at least

1949.

previous

rate

year.

prices of commodities and services
of roughly 10% as a result
of the

care¬

in

approximate

a

has

dividends,

as

the

profitable

.

help promote

can

tial

at

conservative

interest, trust funds and royalties
was reported by 12% of all spend-,

ing

and

.

business investment

roughly $5,800,000,000.

the

noted:'A•

k

high

probably already

"The cost of
meeting the inter¬
est on
the public debt is
now

Federal

of

interest rates

costs

reported.
statement

survey

.

from a lower in¬
The increase in prices

six billion

Bulletin of August 1951
(reprint* p. 13) on the occasion of

iTork

excessive supply
of
money and credit.
By elim¬
inating uncertainty and by keep¬
ing production and capital costs
low, a policy of permanently low

made

are

not

adding to the Federal Government

Reserve

ntry

have

banks and similar
organizations,
plus postal
savings, accumulations
of savings bonds
and cash values
of life insurance
policies."

ample,

The

.

terest rate.

so

the

money program, we advocate a
policy of low and generally stable
interest
rates,
and
an

Record,"

though

since Korea

•

>■■■-*

(Congressional

.

we

re¬

no

that

floor

gains which

the

sampling.
It is true, as reported
in the Federal Reserve Bulletin,

and

Senate

costs to the govern¬
ment and to the
people have been
far greater than the

interest, dividend or
trust fund income in 1952."
The survey mentioned was not
a
census or poll of all families
and
individuals, but a limited
ceived

New

,

".

families and individuals in
United States reported they

the

1474):

p.

"According to the '1953 Survey
of Consumer Finances' 86% of all

and

for

stated

cized on p. 86:

hovv

On

Feb. 22, 1951, Senator
Douglas

on

attack on the banks.
A similar "class" item is itali¬

that

>rof.

themselves.

buying.

A rate of 3y4% would be
to bring in any large

volume of
ury

bond

say."

On

*.

.

.

lowering of minimum re¬
requirements and the dis¬
rate.

There

in

was

fact

a

possibility that this economically
far-sighted credit policy would
not

only

appreciably reduce

the

extent of the business decline but

also,'

by

encouraging

investment,

make

an

long-term
important

contribution to the overcoming of
forces of stagnation, Dr. Em¬

offerings,

minger concluded.

March

is safe

it

24,

to

shortly be-

stated:

"The

true

interest

today is somewhere between
3 and 3%% for long-term
money,"
The authors claim

(p. 20): "Al¬

though the accompanying decline
in the prices of
outstanding gov¬
bonds

caused

smaller, banks and,
ual

count

purchases

the

rate

ernment

open-market

subscriptions to Treas¬

fpre the Treasury offered its 30year bonds, the "Journal of Com¬
merce"

of

investors, at

some

the

losses

to

individ¬

same

time

In
alternately tightening and
easing credit the Federal Reserve-

is
it

carrying out the functions givei*
by law.
"When interest rates

raised, it
was

were

first

explained that thia
necessary to encourage nonwas

bank investors to

securities.

But

buy government
reserve

require¬

ments were later reduced

Continued

on

to

per-

page

24b

1

24

Financial Chronicle

The Commercial and

(700)

Continued from page

policy of 'full employment' he
'Full
employment
pro¬

a

23

added:

ul¬
unemployment . . .
'Full employment' at any price
might be good politics for a short
time, but
if successful, it may
also turn American into a regi^
similar dislocation and thus

a

this

"

loaded with inflation¬
ary dangers. To deny that would
be folly.
It is not enough that we are
grams

The Crusade

Against
Sound Money

hanks

the

mit

This

,

in the book is an
garbled
reasoning.

passage

of

example

assertion

The

that

"raised" suggests a

executed

icy

which
tion

were

deliberate pol¬
rates,

money

and Functions"

tion,

commitment

Employment

Also,
the

the

[was]

securities"

ernment

views

only long-term securities; otherwise the passage has no basis in

1953, encourage private nonbank
investors

to

ernment

bonds.

buy long-term

govthe

situation

economic

over-all

when

Yet

called

ket

eral

for

and

Reserve

quirements
they were
V

reserve

re¬

lowered.
But
lowered in order

banks

to

buy

authors

the

and

bankers

est

of

views

1946

Act

of

ray

referred

govern¬

long-term bonds.
Com¬
mercial
banks,
which lend on

full

the

to

of

text

I

A'
!4

Reference

Bulletin"

of

that

shows

the

to

March

"Treasury

1954

(p.

securities
surveyed,
$41,118,000,000
matured
within
five years and thus were not of
the long-term type which, when
money rates hardened in 1953, the
authorities hoped nonbank invest¬
of government

000,000

<

the book quotes him on

.

.

.

prise

.

Act

of

hope

.

.

in

was

no

condition

to

stand

the

regular hammering of a series of
weekly bill offerings. The alter¬
native methods, it stated, would
have

created

market

additional

Eccles' reference to bank earn¬

ings has to do with the fact that
banks
could buy the issue

the

their

ac¬

cash, the proceeds of the

need for

issue

tax-and-loan

Because of the Treasury's

counts.

were

drawn down within

couple of months.

a

Therefore, the

banks could not have earned very
much

from

the

certificate

Issue

Posed by the Book: A Free

Economy

or

Full

State

Control.

.

.

.

It

.

.

Soviet Constitution
Professor
can

.

."

.

such

but

a

policy does not necessarily result
substantial

in

in

increases

em¬

ployment as the advocates of 'full
employment' often imply
The
.

.

The book states (p. 124):

Treasury

"In June 1953—seven years af¬

can

and

Federal

in

This

the

adoption of the

ment Act's

and

six

money

Employ¬

objectives by Congress

months

after

the

hard

ideology had returned to

power—an
New York

important
bankers

group
launched

of
a

highly significant campaign to




make it easy for

consumers

to

obtain

.

Reserve

business and
credit, but

they cannot force business
sumers

to borrow

.

.

.

can

hardly be regarded

actionary,' yet

while

will

.

effort

to

na¬

not

be

As labor be¬

Also

having its gains lim¬
the middle class de¬

as

in

which

booms.

the

made

to

his

[Theodore] White

recent

"Fire

in

as

a

're¬

advocating

1953 we note:

warns

the Ashes"

?•-

flexible

of

evidence

tary policy on the part of certain
banks

in

tabulates

BIS

the

in

rates

discount

countries, including the U. S. A.,
starting with changes made in
July
of

countries

these

were

the-out¬

of

the-date

1950,

break of the Korean

rates

discount

raised in 1950

1951. As of

or

the time of

preparation of the BIS
report, which bears the date June

in

1953,

8,

countries

but

was

the

one
rate

the

of

19

low

as

as

it

in

was

the

Canada.
per

The

U.

S.

namely

A.,

list

full

shows,

in

ly,

genera¬

Bolivia

6

tion, it slowly changes the habits

Canada

2

morals

all

...

a

the

that

become

with

go

stupidity

do what is

.

solid

.

it

best for the

has

World
of

credit

control

of

the

dirigism.

to

limit the

Sweden, also, realizes

dangers of

some

recommended

of the poli¬
"The Hard

in

Money Crusade."

Again to draw

the BIS report:

on

"It has been
Swedish

of the aims of

one

credit

policy to prevent

the

yield of loans needed in order
funds for house con¬
struction from rising above a cer¬
to

provide

tain

percentage

first

fixed

which

—

changed

to

3V£%

quently

it

has

commun¬

considered

that, in general, the
long-term government

this

ceed

allowed to ex¬

percentage.

maximum

The authorities realized, however,

dangerous sim¬

8

that

5

5%

ply to continue to allow the cen¬
tral
bank to support the quota¬

4

tions of government

4

issue of

Iceland

V-k.

Ireland

3V2

Japan

5.84

it

would

he

bonds by the
newly-created funds, and
consequently
agreements
were
concluded in 1951-52 with banks,

7

India

'
!

Netherlands

by

latter undertook to

the

funds

struction

employment" philosophy, whose
ideal * has always been one

Turkey

.rates, varying between
3.6%. [Italics supplied.]

form

United States

social

level¬

ing, but it should give food for
thought to the Eisenhower Ad¬
ministration

As

we

aproach
full
employment, bottlenecks de¬
velop which tend to drive
.

.

,

up

prices and

wages

As

...

Lord

Beveridge warned in "Full Em¬
ployment in a Free Society": "If
trade

unions

ment

press

under

full

sonably, maintenance
price

ble;

level

wage

In

will

of

become

unrea¬
a

stable

impossi^

determination will

^become
the

employ¬

claims

wage

a function

per¬

of the

preface

to

"The

Hard

makes the statement:
"This Trea¬
sury official [Burgess] now is re¬

puted to have attacked the mod¬
ern
theory of debt management
as being
Keynesian
."
this

point

note Professor

.

we

may

again

Wiegand's view:

"Ther^ is obviously something
with this popularization of
Keynesian economics, on which

wrong

the whole

tine

is

Commenting
the

Federal

rates

in

stated
fect

of

"

the increase of

on

Reserve

-

1953,

discount

BIS

the

step "had the ef¬

bringing the official

into

more

"In

2

January

that the

4

____

line

with

those

the money market.
"The increase in interest

rate

ruling

on

'full employment' doc-

based

...

tional rise in wages

A
..

dispropor.

may cause

at

consequence

liquid

the com¬
rathe

...

become

mercial banks had
short of

3.5%, ana

funds—and it wa
policy not

part of the official
allow

their

liquidity
again.

become too easy

.

■

.I"31

supplied.]
"In

its report

submitted to the
the spring

Swedish Parliament in

brake

board of the RiksbanK
emphasized that the result ot
Riksbank's
transactions in. w™

financing)

tory and reflected the ditficu
to
which a- further increasei -

has

not,

however,

acted

rates
as

a

on economic expansion (al¬
though it should have led to the
adoption of sounder methods of

compatible

and

has

with

in

fact

been

rise

a

in

stock

exchange quotations ...," the BIS

Money Crusade," Seymour Harris

On

3

United Kingdom

mqke

house con¬
certain
maximum
for

available

3

very

where¬

insurance companies, etc.,

4

have worried

of

at

later

and conse¬

—

been

Sweden

another

was

but

3%

at

South Africa

or

supply.
for this:

;

the "liberal" sponsors of the "full

may not

debt to

name

a

"

Socialist

cies

its

money

The French have

the

of

and, finally, as
defense, on quali¬

Western Germany

Europe since
I, partly as a result

inflation,

funds

France

plagued

War

year

Finland

money

ity—who save, who plan, who put
aside—are wiped out; those who
grab, thrive."
A social
upheaval,
as

a

Chile

Those who

.

started

Denmark

patterns

thrift, planning, decency, good

taste

expressed

the peak of the tim¬

yield on
( loans
should not be

5

of

as

bank

central

desirable

cent:
3

and

of

fellow-countrymen?

which

expansion

In most

war.

taking advantage

second line of

tative

changes
different

19

a

-

.

mone¬

Austria

over

the

situa¬

requires."

As

at

or

boom

counterpart

favor

be raised or lowered as the

tion

are

later; instead the government re¬
lied on forced savings obtained
by
means of budget
surpluses, on the
repayment out of foreign - aid

of a
flexibility which permits rates to
in

Belgium

in France,

ber

is that the

Wiegand reminds us
—"When inflation happens slow¬
as

Korea

rigidity which characterized credit
and interest policies during the
immediate
postwar
period
has
abandoned

yield of long-term

socialist government. In
Norway
states the BIS, "interest-rate
pol¬
icy was not changed either upon
the outbreak of the conflict
in

safely be said that the
authorities have
no
intention of allowing interest
rates to become fixed again at a

,

from

Can it be that the
Danish

Closer to the ideal

can

been

increased

by; the authors of "The Hard
Money Crusade," it would seem
is Norway, which has an
outright

the annual

the truth

dis

was

their socialist

British monetary

level;

of

balance in its
interna
Since the official

rate

bankers

of the Bank for Interna¬
Basle, devotes
chapter to money, interest rates
and credit.
In the BIS report for

new

restore

5y4%.

a

year

instruments

f?/VSr nm5nt honds averaged about

report

"It

the

and in 1952 the

tional Settlements,

the fiscal

.i

4V2% to 5% in November
1950 H
has been maintained at
that level

a

year

of

use

count

tight money was brought
back as part of a banker's scheme
to benefit money leaders;
It is
therefore
interesting to take a
look at interest rates in foreign
Each

whe?

nowf.rf

"Denmark^

economy.

States,

countries.

very

monetary policy (including th
raising of interest rates) in
order

Money

after

are

BIS

at th. •

reports,
addition [to budget
surpluses 1

in

Crusade"
long period
of low interest rates in the United
"Hard

The

contends that,

socialists

The

Money" Abroad

"Hard

of

case

today."

us

worry

justify.!

lending the money
interesting to look
Denmark, a country

It is

.

.

or con¬

This brings

to

the hidden inflationary dy¬
namite.
Professor Alvin Hansen
us

.

will

.

,

ter

.

be

The

.

richer and stronger, it
may

tolerate

Wiegand

credit,

class

.

its real share of the

income.

force

continues:
increase the supply of

and

will

excesses

buy with borrows

not, ipso facto,

tion for

perpetuate these
not
cure
the ills

To

advances.

—Professor

probable that it

.

.

money

Fundamental

.

.

.

in

so¬

...

middle

As Mr.

...

"We

(VIII) The

less

or

off.

wealth, it will decline
political power.
Social
changes are to be expected."

.

schemes

compo¬

middle class will

worse

in

[full
employment] 'was sold to him
[FDR]
as a back door to a
planned economy
Senator
Taft pointed out that the
[fullemployment] doctrine
.
had a
strong family resemblance with
the 'right-to-work' section of the
seems

opera¬

tion.

more

welfare

men,

rentiers,

other

to accomplish.

ited.

and the proponents of soft money

various

squeezed

an

clines

of well-known New Deal 'liberals'

of

the

legislation

comes

chief sponsors of the 'full employ¬
ment' philosophy .
.
.
consisted

and

uncom¬

(really anti-

not

.

cialistic

disturbance.

through

.

"the

workers

all

of the

easy

be

.

and

tional

nearly $6 billion of 8- act were convinced that in case
month tax-anticipation—certifi¬ of a conflict 'full employment' was
cates financing enabled the banks to be regarded by the government
to
substantialy
increase
their as its primary objective, and there
earnings. There were two altern¬ can equally be no doubt that po¬
ative methods of financing which litical pressure groups
are in
would not have done that, Eccles favor of 'full employment' if nec¬
maintains.
essary at the cost of inflation.
The Treasury had several rea¬ No safeguards are provided in the
sons
for financing as it did on Act for the stability of the dollar
Almost without exception the
July 6, 1953.
The market then
.

-

in¬

for

professional

office

preserve

the authors of the

doubt that

no

debt,

wage)

as

can

off

pay

depreciated

encourage anti-labor

unem¬

But there

to

in

farm

Teachers,

.

squeezed

implies the
such a conflict

that

The

relatively

1946

be avoided.

can

.

nents

how will the gov¬
decide?
The Employ¬

ment

able

are

writing about

crats,

free-enter¬

a

who

obligations

business and government bureau¬

economy,

ernment

point (as
pp. 16-17)

of

vast

salaried

.

maintenance

the

"They are joined
army
of mortgage

dle class will tend to be

the

that
v

.

to

Wie-

Prof.

(Robert L. Heilbronner, issue of
April 1947) warned that "the mid¬

an

.

for

or

...

In

fortable paradise of full employ¬
ment"
a
writer
in
"Harper's"

ployment.'
And it is sheer demto say that 'Congress [or
banking]
wants unemployment.'
If
'full employment'
should conflict with the require¬
ments of a stable currency and

pious

Mr. Eccles makes the

.

debt.

the

In

is

true,

bet¬

a

stance, declined almost 25% dur¬
ing the war years."

agoguery

.

would buy.

ors

Murray

ment program,

nearly

held by the banks there

not

in

phrase:

dollars.

claimed
.,
that
'one is either for a full-employ¬

31)

half of the
Treasury securities held by com¬
mercial banks have a maturity of
less than one year.
Of $55,795,•

Sen.

is

It

than

such

their

of

exploitation.

the Federal Reserve Board.

new

formerly

position

debtors

short-term, cannot safely tie up
their investment portfolios in too sity of Mississippi, published in
the
"Commercial and Financial
many
long-term
government
Chronicle," April 8, 1954.
From
bonds.
Doubtless many
banks,
that article we quote:
small and large, took the oppor¬
"To discuss the dangers of the
tunity to make switches in their
holdings.
But to assert that the 'full employment' doctrine does
reserve
requirements were low¬ not imply the advocacy of unem¬
ered for this purpose is to malign
ployment, deflation, depression or

I

mort¬

when

are

by

by Dr. Carl Wiegand,
Economics, Univer¬

Dangers,"
Professor

increase

debt

incurred, home and farm

gand's

article, "Full Employment and Its

ment

is

to

farm

handle

sought.

The reader

Montana.

and

ter

the

rate, natural in a free
economy, is inconsistent with
a
controlled economy such as the
the

tend

rates

debt

interest

of

.

mortgage borrowers

con-

book, "The Hard
Crusade."
A fluctuating

Money

rates

interest

gage

the

of

interest

while it is true that higher inter¬

the

act, incidentally, was a con¬
siderably watered-down version
of the original bill introduced by
Mr. Gross' then chief, Sen. Mur¬

were

not

enable

to

policy,

."

.

.

quotation from

That

in Fed¬

change

a

of

authors

outlook including the money mar-

Mr. Gross

.

trolled-economy

reality. Of course higher interest
rates would, it was believed in

^

.

above

"higher

vi
in

publi?"

Keenness to

.

point of dif¬
ference between the free-economy

mean

can

.

The

inflationary

S'

reS"

money is

problems which we face to¬

The

credit,

to the

in

creased

Cyclical troughs —the peaks and
valleys in business and employ¬
ment—can best be eliminated by

.preventing

consumer

partly due

1954

reflected an
keenness to buv nn
part of the American

.,

may

substantially increased an¬
payments on
.
.
mortgage debt, farm debt,
.
."
(p. 36). But Professor Wiegand
calls
attention
to
the
gains in
wages
and in farm commodity
since
the
prices
beginning
of
World War II.
In other words,

text touches the vital

Money
the
passage
just
it mentions "gov¬

that

nual

etc.

Crusade," in
quoted, when

years.

have

have already noted;

as we

postwar

logical conclusion,

policy

a

fact

Act

.'"

.

.

its

19

the spring, of the
tions
applying to this kind
credit but it also

be political. day were created during the post¬
"wisdom," but it may also prove war
years
of
credit inflation,
long-range economic suicide . . . over-employment and often ex¬
Gross and Lumer deplore the
cessive wage demands and price

preface records that ". . . the
probably most responsible for
Employment
Act
of
1946

one

the in¬

such

the

to

inflationary

the

of

of

excesses

Pursued

mandate" of
of
1946

"employment

Employment

we

adjustment

it is desirable that the so-

.

terplay of market forces.
The book,
"The Hard

•

Act.

primary recommenda¬

amended

be

(third edi¬

for credit and result from

the

called

142), are the prices paid

p.

.

the

as

explained in Chapter X of "The
Federal Reserve System — Pur¬
poses

must have no diminu¬
tion of the inflationary boom, no

levels,

was:

'.

authority,

high

by

fact

in

whereas

rates

the

weaken

of

ease

was

ation,

society, and may seriously
our
economic
system.

mented

and

that production, sales
employment are near record

.

.

prosperous,

Representatives of 18 of the larg¬
est
New York
City commercial
banks issued a report ["The Fed¬
eral
Reserve
Re-examined"]
in

prices and new ones at
higher rates)," Gross and Lumer
bargain

point out.

in

made

the

down

water

purchase gov¬
(old ones at

to

securities

ernment

are

Thursday, August

.

the

in

timately

.

.

wrote

in

June

1953.

For its bearing on the need for
tighter money policies in the USA
the following observation of the
BIS

report

is

worth

"The figures for

emphasis:

lending by the

commercial banks indicate the

istence
1952

of

the

boom

increase

ex¬

conditions.

In

in

of

the

total

the loans and investments of these

banks

amounted

i.e., 50%
there

more

was

milliard.

an

to

$9.0 milliard,

than in 1951, when

expansion

of

$0

...

"The largest expansion occurred

of 1953, the

could not be

government
The

Board

nancing

regarded as satis1

'

borrowing could 1
that tne

■

stressed

State

of

expenditure

Riksbank—other
merely temporarily
cuts
,
ground from under the Riks^ fhe
credit policy and prejudice
possibility of maintaining and.hflt
through the

proving the degree of

balance

has been achieved.'"
In

be

a

all this there
lesson

that nothing

for

would seem

pho
allowe
bountiful suPP

those

should be

interfere with

a

of cheap money.

The BIS report

.

quotes from

Number 5352

Volume 180

...

The Commercial and Financial
Chronicle

(701)
London '^Economist"
1954, this paragraph:

credit;
relaxrestric.

<ind|

of

,on the
>

)rrowed
istifica.
at the

where
>werful
'

has|
I

of

the

final

A

f

from

excerpt

the

BIS

short-term credit is

as

horn
1950 it

enced not only the

but

-term

tutions

about

themselves.

wages

businessmen

would

It

is

perhaps

tion

also

Danish
tage of

worth pointing out that, whereas
the years of cheap money up to

rymen?

1951

characterized, for the
most part, by rising prices, the
price rise was halted once inter¬

3

Hard

4

other

M

lor

"Nowadays,

$

Thus

lly,

1

as

end

of the

order

at

later

has

been

take

the

More

to

ment

rnment

'!

to ex-

with

be accomplished

can

effective

an

monetary
been ideo¬

must

is

ywever,

he

cen-

■4

based

of

vhere-1

and

1

living than

con-

efficient

production than

ism

by

development

is more likely to
broader work opportunities

more

understand
there is more

% and

a

methods

of

policy of infla¬
of investment.
beginning

now

this.

That

is

for

reason

why
optim¬

the payments problem than
at any time since
the end of the

British

Stating

that

nobody

financial

and

monetary

expert continues: "But it is
to realize the need

neces¬

sary

elastic

more

application

for

of

a

that

principle
to avoid its infla¬
tionary effects and to obviate the

bolstering up of unsound indus¬
trial positions to the detriment of
the national
is

as

economy." His advice
applicable to the U. S. A. as

3

[Italics supplied.]

ii:

In

his

Money

book,
"How
Is Managed: The Ends and

Means of Monetary
Policy," Dr.
Paul Einzig, a veteran observer of
the

world

vides

financial
with

us

scene,

pro¬

food

some

for

thought.1**

Under Britain's social¬
ist government
"full employment"
was the official

promise. The ex¬
perience was not a
happy one. At
time when the

a

engineering and

shipbuilding

industries

lost

or¬

ders because
they lacked the nec¬
essary manpower,
elsewhere in

Britain

there

Workers

who

unaccustomed

unemployed

were

refused
work

to

even

shift
in

to

their

own

localities, preferring to await
re-employment fn their own dis¬
trict

and

industry because the
government was committed to assuring full employment.

m?

™

"How Money is
Managed: The End#
nd Means
of Monetary
Policy," by Paul
inzig,
368
pp.
Penguin
Books,
Ltd.,

6d1°n^SWOr

Middlesex,

the




the

too,

are

inclined to believe that all that is
needed is to adopt the
and

and

over-full

mankind

forever

things
life.

employment,
live happily
Unfortunately
simple in real

could

after.

not

are

so

A great deal more is needed

than

the dogmatic application of
over-simplified formula.

an

"There

is

the

in

ger

indeed

a

grave

dan¬

dogmatism.

new

.

.

.

.

learn,

heed for
of

use

economically

and

likely

to

"money question"
another

Andrew

has

second

the

in mind in

determining the needs
policy.
They
have to avoid adopting courses
which would eventually defeat the
their

ends

monetary

of

their

full

employment
policy.
The policy is still in
an
experimental stage, and its
principles will have to be estab¬
.

would

be

error.

.

clearly going too far

of

1856

War.

sacrificed

Dr.

in

all

another

market,
cated

circumstances."

some

useful

official

the

securities

as

in

com¬

support

in

the

of

open

has been lately advo¬

this

country with much
As for the argument

that higher interest on the public
debt

causes

an

unnecessary

ex¬

penditure of public money, Ein¬
holds that the authorities in
any country "have to think twice
before
embarking on a policy
zig

which, while it assists them in
keeping down the cost of the pub¬
lic debt, increases their difficulty

performing their broader
nomic functions satisfactorily
in

For

example,

even

though

eco¬
.

.

.

the

proportion of the floating debt is
not uncomfortably high the Treas¬
ury may decide to fund some of it
in pursuit of objectives of mone¬
tary policy. Although debt fund¬
ing must mean an increase in the
burden
of the
interest
service,
circumstances
may
justify the sacrifice if as a result
the monetary situation is adjusted
prevailing

in

accordance

ments

with

of monetary

the

require¬

of

Economic

which

Mr.

Gross

Officer.

Advisors,

became

After

Mr.

Gross
the

leaving
served

the

for

Democratic

a

Na¬

Director

as

of

Execu¬

of

farmers, veterans, small busi¬

supposedly different interests of
large money lenders. That appeal
carries out the advice Gross gives
in his "The

Legislative Struggle,"

wit:

to

"A

for

banks

1

powerful organization calls
variety of leadership skills.

a

Leaders

must be perceptive
enough to gauge accurately the
community of interest upon

dur¬

There

noted the appeal
Money Crusade" to
supposedly common interests
we

was

Greenback

'credenda and miranda' of power,
as
one
writer puts it—that can

Commission of 1908 and the Fed¬
eral

in

Reserve

our

own

Act of 1913; while
generation we have

the renewal of silver purchase

see

programs, the devaluation of the
dollar and the cheap-money ap¬

have

been

criticizing

leaders, states the
of the soft-money

truster

"know

how

to

arouse

keeps

aroused similar emo¬
their followers."
Again

in

Clausewitz: "Be auda¬

von

cious and

cunning in your plans."
And Gross again: "The horizontal
organization

friendly
sistent

of

groups

effort.

must

support
among
also calls for per¬

Common

be

discovered,
exploited."

and

culminated

nessmen, small banks,
"individ¬
uals" and the like as against the

the

Along
writes:

the

propaganda
character

.

the

major

a

carefully
large variety

a

There is

.

.

of

contain

slanted appeals to

dilemma:

Gross

successful

every

effort

will

of groups

line

same

"Almost

interest*

nourished

more

obvious

an

appeals-

one

directly to different groups, the
greater is the danger that one's
language is meaningless or of¬
fensive to
favored

other groups. The
for
escaping,

some

device

through the horns of this dilemma
is

to

emphasize a broadly desir¬
objective, such as Recovery
or National Security
Or Full
Employment?
able

.

.

Further along in his book, "The
Legislative Struggle," Gross flsV
ports that many crucial legisla^
tive debates are fought out at thelevel of conflicting conceptions of
public welfare, each party be¬
lieving that the opposition "really

'narrow

serves

a

'vested

interest'

ments

such

terlarded

.

these

as

interest'

»■'. When

i»r-

are

...

or

argu¬

with

quotations

copious statistics;
from authority, and

statements

of

experi¬

-personal

ence, they can be impressive in¬
deed."
Certainly "The Hard

inspire enthusiasm and loyalty.
Money Crusade" is well inter¬
They must define the objectives larded with
copious statistics and
of group action, chose the weap¬
quotations from authority.
ons, and develop staff services in
"Occasionally," Gross, the po¬
the
field
of
intelligence, plan¬
litical scientist, tells us, "books
ning and public relations.. They
,

peal to voting masses.
Against
this
historical" back¬
ground the agitation of the in¬

must

nurture

every

of

source

will

be

written

for

the

express

purpose of serving as legislative
extend their group's power
question in the Con¬
^campaign propaganda
In ad¬
through combinations of various
gress by opponents of the Eisen¬
dition to having the appearance
sorts, and negotiate the compro¬
hower Administration falls into
of
objectivity
(from the view¬
mises that spell victory or defeat
its natural niche.
It serves not
point of the authors, presumably,
in individual engagements." (op.
only an immediate partisan po¬
this is much more than appear—
cit., p. 146.)
litical purpose, but it carries for¬
ance), they provide valuable am¬

terest

rate

poWer,

...

ward

it

as

were

historical

a

In

con¬

test,

catering to the fact that
hardly anyone ever feels that he
has
to

all

the

money he needs and
belief
that
a
bountiful

the

supply of money (including
credit) for the country as a whole
will

greater

mean

individual.

every

prosperity for

ting

for

the

the light of

the anti-banket-

stance of "The Hard Money Cru¬

sade," it is interesting to note in
Gross'
book,
"The
Legislative
Struggle," that David does not
regard Goliath as invulnerable.
Quoting from another author,
Maclver, Gross writes:

Robert

"Yet

should

launched
with

on

the

fanfare

of

mimeo¬

munition

for

in other propa¬

use

ganda efforts."

Mr. Gross cites

as

exhibit A of clever propaganda
before a
Congressional commit¬
an

tee

industry's
presentation
by "that degree of
incomprehensibility which is best
calculated to impress a not-tooan

characterized

overemphasize, as most Marx¬
ians do, the potential power of

sophisticated listener." All this is
unquestionably true; and we can¬
not help but feel that it apples*

wealth.

to

This is the set¬

soft-money crusade
Capitol Hill last year

graphed

releases
both
houses.

and

press

speeches

care

taken

be

not

to

'The

economic

strength

in

The

of any group or class is no

it

as

tended

"The

Hard

Money Crusade."

litical strength.
with

that

historic

Mr. Bertram

heads

the

ume

issue.

Gross, whose

name

authorship of the vol¬
have

we

been

discussing,

has spent most or all of his adult
life in

the political

nation.

To

approach
it

is

as

he

fully

helpful

another

book

money

to

them

set

understand

the

to

capital of the

read
forth

his
in

of which

his

question
views

1953

he

in

is sole

author, "The Legislative Struggle
A
Study in Social Combat."

—

That

book

draws

Mr.

on

Gross'

extensive experience in the
lative

executive

and

legis¬

branches

of

the government.

The book, more¬
scholarly contribution
which will undoubtedly be used
by students of and participants

is

over,

in

well

others.

by

as

Government

In

as

scholarli-

and

method, however, "The
Legislative Struggle" and "The
Hard Money Crusade" provide a
ness

sharp

contrast.

Gross

steps

scholar

To

and

In

the latter Mr.

of

out
dons

his

the

role

arms

as

and

of the crusader.

armor

Mr.

Gross,

everything that
Capitol Hill is the re¬

the

on

struggle and contest for
"The Legislative Strug¬

power.

gle,"

therefore,

is

studded

political

The relative

powerful

have

been

arena,

croachments

with

feudal

of its

measure

po¬

in

the

many

en¬

by
the

taxation and
regulation, on
prerogatives of wealth, the prog¬
ress of 'social legislation' all along
the

line, and the

in which
various governments, without any
proletarian revolution, have taken
over

such

HARRISBURG,

Pa.—The third
Pennsylvania Bankers Association
Summer School will begin Sun¬
day, Aug. 22, at The Pennsylvania
State University.

The

manner

important

capitalistic

Summer School

economic

government,

of

Penn. Bankers Ass'n

ease

defeated

sectors

of

morning

vided

into

sessions

di¬

are

sections—one

two

Bank

Lending and one
Operations, each with a

on

Bank

on

separate
have an

rail¬

curriculum.

public utilities, demon¬
strate
the
inadequacy
of
the
Marxian thesis to comprehend the
complex relationship between

opportunity

topics

economic and political power.' "

presented to the combined studenl

enterprise

as

roads and

Moscow

please

papers

an

inescapable

element

in

any

conflict,"

Gross
records
("The
Legislative Struggle," p. 216), a
point which is applicable to po¬
litical
in

money

love

between

quoting
military

and

groups

"one

In

of

a

Gross
the

" 'Pursue

decisive

with

aim

termination.'

"

attend

sessions

of

An

interest

has

also

afternoon

will

be

economics

devoted

and

agricultural
the

to

been

will

to

be

program

entire

arranged

School

for

one

session.

To date, more

than 200 registra¬

tions for the Summer School have
been

struggle
advises—

non-officer personnel and a num¬

greatest

strategists,"

select and

of these sections. Three after¬

noon

of

Registrants
to

All's fair

crusades.
war.

one

body.

copy.

"Deliberate intent to deceive is

Clausewitz—

is done

of

interests
the

a

American

the

which

longer,

under

be

to

conditions, the

book, "The Hard Money Crusade,"
simply the latest manifestation

is

sult

policy."

Those Americans who in all sin¬

England. cerity

which

Party. Later which
people can be brought to
came
the silver agitation of
the. act in concert.
They must be
'70s, '80s and '90s and the Popu¬
list movement; bimetallism and imaginative enough to create and
use
the ideals and symbols—the
Bryan; the National Monetary

chapter of his book

Einzig gives
on

events

Employment Act of 1946.
That Act gave birth to the Coun¬

of

Demo¬

national

exclusively

no means

of

ployment all other ends must be

ment

in

brain

and

The-

successful

.

.

to lay down as an obsolute prin¬
ciple that for the sake of full em¬

In

high
the
Senate,
personally participated
"the legislative struggle," no¬
he

Previously

of greenbacks

Civil

a

various

in

confusfoFi*

of "emotional drive."

use

tions

.

lished through trial and
It

even

Gross held

positions

where

the

a

erate

citing

in "The Hard

one

crusade

Bank

the

the

ing

Bertram
staff

of

frequently, for delib¬
bluffing." It calls, too, for

the

is

times for the?

creation

more

the

was

he

Research.

in

and,

crusade,

doctoral

warrior, the fighter, the crusader.
During and after World War II

Committee

surrounding the

of

his

scholar; but otherwise

and

war

Gross

tional

cratic platform plank
opposing "a
concentrated money power" and
the hurly-burly

issuance

For
Mr.

with

become

Jackson's

States,

creation

dissertation

while

period.
There was
the "Continental
currency," Pres¬

and

front.

learn

issue in American poli¬
tics from time to time ever
since
the colonial

the

generals, infighting,

battle

Council

political

against
United

islative battleground, foot soldiers
and

tive

The Book in Its
Setting

It also calls at

.

more

sooner.

this lesson rather later than

.

group

cil

particularly
history the

.

deliberate

the

the

history

ident

such

the

American financial
United States is

or

terms

contestants, weapons,
generalship, strategy,
tensions, engagements, leg¬

in

for

even

reading of finan¬

form

in

combat,

in

and

productive purposes."
From our own

The

struggle*' of
legisaltive

the

beachhead,

expansion

some

credit

of

find

described

process
as

We

tably but by

socially useful

cial

vocabulary

at its cost, the
self-restraint in the

.

monetary authorities have to bear
of

the

warfare.

.

.

Full employment
must not be
the only consideration which the

forcefulness.

newest

enthusiasts* of

employment policy,

Treasury

British Experience With Monetary
Policy and Full Employment

To quote him further:

"Uncritical

on

World War."

com-

rather

n

dundant."

.

to

cimum

policy

a

bolstered

credit

Economic

tionary financing
Governments are

myke

Eco¬

with

stability

create

were

development

stability
likely to result in high
of employment and rising

unlimited

with

,

mis¬

employ-

inflation.

on

adjustment

controls.

1

and |
f
banks, I

economic

standards of

quota'

that full

a

more

levels

sim- f

assume

and

nomic

entage,

ipply

inflationary

monetary
policy
which
would
minimize local and
temporary un¬
employment even in industries
which have become
largely re¬

full

done

policy has probably
logical in character. It is

sidered

ed to

ernment to pursue an

policy of
non-stop inflation for the sake of

barrier to

conse-

to
think

the gov¬

on

full

by a vigorous use of monetary
policy in the future. The greatest

a cer-

Italics

brought to bear

to Britain.

years.
con-

to

Fund, Mr. Bernstein

monetary policy [among members
of the Fund]
in the past three

irevent

on,

sure

.

...

quotation from

a

a,

"Much
of

it was

employment."
Under a full employment
policy
as
the prime aim,, Einzig
states,
"there is indeed-the utmost
pres¬

lication, "The Revival of Mone¬
tary Policy*" Mr. Bernstein states:

Hard

not to

over-full

been identified with
banking. At
the conclusion of the Fund's
pub¬

draw

by the

preven¬

mbmber of the Treasury
Department's staff. He has never
was

/

poli-

,li

.

with

tary Fund., Prior to the establish¬
ment

?alizes

was

word

M. Bernstein, Director of Re¬
search of the International Mone¬

this:

aims

a

E.

supply,
'

,

We

quali-

v:

BIS; and not

par.

lit the
or

the

for pegging government bonds at

ebt to

policy

a

ployment policy in principle, the

<

aid

at

who remembers the
experience of
the 1930s can object to a full em¬

changing circumstances."

by

-

govern¬

their

1

the

on

the

great share in

a

of

monetary
aim

to

investment
policies suffi¬
ciently flexible to take account of

tim-

led

when

spiral
have

the economy, they, too, must make
their methods pf financing and

in

re-

of credit restraint

ments have such

upon

ait

been increased and

measures

had been introduced.

way,
ite pol-

year

were

rates had

est

seem,,

ct

...

lending insti¬

also

taking advantage of their

scarcity value.
To avoid slid¬
ing into
non-stop
inflation
through
the
operation
of
the

other measures taken have influ¬

level,

being what it is, it is difficult
employees to resist the temp¬

tation of

concerned, it may be noted that
the changes in interest rates and

dis¬

pressed

and

departing from
wartime practice of support¬
ing long-term government bonds
the

ture

for

far

"As

mternal

>utright

Administration

its predecessor for

monetary

report:

I

order
ial

Eisenhower

.

luses],
nts

significant

of the past year's expe¬ management Dr. Einzig points out
rience is that a 4% Bank rate has that "full employment"
goal is, at par might do well to heed Ein¬
been more effective in checking for, some, really an "over-full em¬
zig when he warns:
inflation, despite the mildness of ployment" goal. While some
per¬
"The largest number of
the budget itself, than even the sons favor "a high level of em¬
people
who hope to gain if
monetary pol¬
advocates
of
monetary
policy ployment" and are prepared to
icy pursues exclusively social ends
generally dared to hope, it has not accept a certain amount of unem¬
will discover sooner or later
that
only helped to check stock-build¬ ployment, he says,
"many people they have to
pay the price in the
ing [inventories]; it has induced favor a state of affairs in which
form of an
the unfilled vacancies far
ever-increasing cost
a wholly healthy caution in both
exceeds of
living, the absence of monetary
business and personal spending." the number of those looking for
and
economic stability,
And this from the country of employment.
and, in
This latter state of
given curcumstances, a reduction
Keynes, who is mentioned ap¬ affairs may be described as 'over¬
in
productivity
provingly in ''The Hard Money full employment.' It is distinctly
"Sooner or later the
public is
Crusade." (p. xiv)!
inflationary because, human na¬ bound to

>lic."

'g

most

In his discussion of
the possible
conflict between the economic
and
social
objectives
of

Jessons

in.

k

the

of

"One

of April 4,

25

Carl
one

force

Moreover,

ber of

women

of

von

great

and

received,

de¬

Gross

continues, "keep opponents from
seeing the whole picture.
This
calls for surprise and diversion

also

pleased

registrants

including

employees.
to

note

represent

banks, indicating the
ing interest
in this

tunity.

many

We arje

that
all

these

sizes

throughout the

type of educational

of

grow¬

ever

state

oppor¬

The Commercial and

26

Financial Chronicle

«

.

Thursday, August 19, 1954

.

(702)
Thrift

Continued from page

Public

Utility Securities

while

4.9%,

the average yield

carried

now

the

following at

the utility list.

cy'-'-.':

•'

■

Power

Utilities

Haverhill Electric

2.40

6.5

2.00

6.1

51

3.00

5.9

45

f2.50

t5.6

24

1.40

5.8

at

22

—

—

.—

..

1.20

5.5

States

Utilities

Iowa

Southern

Lake

Superior District Power

Light

5.6

f6.1

It

37

1.35

*6.6

is

:

25

1.40

5.6

0.90

5.6

1.00

5.9

1.60

5.7

0.90

5.6

Telephone

Western Light &
3%

annual

and
being continued by the Repub"

1.60

5.5

halt

Mr.

it is possible

Yields on transit stocks

extremely high, ranging between 8% and 18% for a number
of issues. In the foreign field there is Brazilian Traction yielding
12%. Eastern Gas & Fuel—about two-thirds coal, one-third utility
are

those

who

investors

primarily

interested

not

are

in

cheaply in rela¬
(usually with a low dividend payout), the follow¬
ing electric utility list might be of interest:
income, but wish to buy utilities which are selling

tion to earnings

,

with

boom,

24

and

expensive

and

reced-

of inflation appeared to be

everything

and

just

was

all

too

1.79

12.3

0.92

12.0

their ugly

unemploy-

and

deflation

But

to

began

soon

rear

heads and concern over
de-

26

2.11

12.3

the future of business began <to

39

3.13

12.5

velop.

11.2

the Treasury

12.3

itself and

1.31

15

Power

1.79

16

Diego Gas & Electric...—.

San

Southern Colorado

2.24

1.23

/■

policy.

12.2

and

became

15

Power

1.39

10.8

2.46

9.3

credit

sive

proceeded, to

reverse
money

easy

an

Now the supply of money

12.2

.

23

Southern Nevada

Before much time elapsed
adopted

difficult

borrow

to

and

expanded

was

less

and

it

expen-

Of

mentioned in this column are

not all of the stocks

course

buying stocks of some of the smaller utiltes. Formerly there was
a much wider spread between yields on large and small utilities;

investors have come to realize that
there is not much basic difference in operations, and that the
smaller utilities sometimes get a better regulatory deal on rates.

this has gradually

narrowed

as

policy
served

Thi«?

N. Y.

Capital Fund

is

no

Com. Shares Offered
™

uv

•

rr

£

^

1

aaa

Fund

be

Capital

of

Canada, Ltd., a new 111company
organized in
Anrt
1 A Ktt
Canada, was made on Aug 16 by
a
nation-wide group of 104 un¬
derwriters
headed
by
Carl M.
rw L"ni8
Loeb, Rhoades & Co. at $25 per

vestment
f'n

A

sh?,re-

fund

The

16

under

/

.

the

incorporated on
is
registered

was

1954

United

States

ment

Company Act of

non-diversified

Invest-

tivity

been

as

Creation

this investment

of

a

man

investment

opportunities which

vestment

at

Xr

company.

trust

both

the

American
the

Canadian

Government

international

Differing
funds

from

reeentlv

flow

other

and
to
of

in

The

tion.

mortgage

1954 business

residential construereplenishment of our
dry

to

,

.

Confidence

Fmnir«?Trust

... ,

.

Cn

of Chicago, and Carl M. Loetk

substantial

substantial
be

for

portion

offered

by

of

portion

01

will

partners

bp

of

the

tne

stock

slock

subscribed

and

persons

closely identified with the invest-

close/y ,aenune
me
managers,

of

Canada




and

the

Joins Forbes & Co.

.,

w-% aiia

D.ENVER» Colo.

—

non-

field1 &SCo

^°.

previously

excluded

ample, many other States have
adopted the Prudent Man Rule
still further expanding the list of
new common stock investors,
Supplementing these new buyers was the emergence of pension
in

all

important

industrial

centers.

this

financial

a

There is nothing in my
-experience to indicate

acumen

and aptitude for

ren¬

dering monetary decisions are the
exclusive possessions of the
male,

provided
versed

the

female

the

in

problem.

is

equally

When

the layman strays into
laboratory
of
the
atomic
physicist he is certain to be con¬

the

of the stock market,

more

vital than any
«

multitude of petty marginal

ac-

'has been promptly greeted as an
opportunity
with cash,
.

specific

1'

not

good

acquire

to

being made

pay

c

The C end to thiS; 'J'i'1 1 •
iristitutionalizail_1
J
J
j

-

^

-

_

tion of the stock

hiirket is not yet
__

^

_

benefit derived from easy money, in sight. Thrift Plans are now
e Republican Administration becoming the vq|ue'and are sephad moved Pr°mptly to avoid at arate and distinct ifrom Pension
a11 costs a drastic decline in our Funds. Typicai
one adopted
Oil
economy.

A recession would not

this

year

Co., of

by t

interests

of

be aIlowed to develop into a de- Findlay, Ohio
nr<3ccjnn
vmnrAne nnncci_
Pression without vigorous opRosi- the participants Jare so carefully
tion from the Federal Govern- guarded there isja prospectus covRepublican Party, ering every minute detail, but
the traditional

a

dollar

basically the plait enables employees to in vest-6%
of their
monthly salaries^ the program
and receive a matching 3% from
the employer.
TIi^ employee is

level

of the

free to choose whether his funds

champion

the

fierce

of

the

antagonist

uary

radical, had come the obitof laissez-faire. The conclu-

sion

was

the

value

the

of

It

the

is

solemn

husbands to
not

are

as

obligation; of

that their widows

see

naive

as

is

who

the

as

woman

to have written

reported

follows to Mr. Parker Williams,
Cleveland

our

ternal
"I

but

Collector

of

In¬

Revenue:

got

clubs

application

your

I

as

already

societies

and

blank,

belong to more
I

than

really

should, I must reluctantly decline
at
this
particular time to join
income tax."

your

is

It

sincere' hone

my

widow

will

be like

not

your
the lady

who fervently declared:
"I

>■

going to live within my

am

income if I have to borrow money
to

it."

do

You

begin

might

education

wife's

your

by pointing out the sa¬

of Shakespeare's Antonio

gacity

when he commented that his ven¬
tures

one

confined

not

were

vessel,

What a contrast these solid institutional
buyers
are
to
the
flimsy speculators of the roaring
20's! Then a decline dislodged a

.

might go down,
t

who is

woman

business

Following New York's ex-

values with

the contribution 4-1-. confidence has
to
Kn

orthodox,

(Special to The Financial Chronicle)

capital.

is

the

111

of the

Canadian

it

.

,

„

Factor

A

In the eyes
,,

been

New Ymk' Stei^ Rne i FaPn
ha," oTchfcaeoaid Carl M Tneh

i

outside

been

has

up,

Stock Market

to

one

place or even one year.

He concluded. "Therefore my mer¬

not

sad."

might continue your

wife's

chandise
You

makes

education

me

suggesting she con-

by

banker, economist
The broker will
her the present level of the

suR her broker,
and
tell

sociologist.

stock market was

attained by cash

purchases for investment purposes,
not by margin accounts honing for
quick profits.
Her banker will
exp'ain the enormous gam in our
monev
supplv since 19?9.
The
economist will point out that re¬
duction in industrial and mercan¬
tile

inventories has

into

a

existed

since

brought them
than has

balance

better

Korea

surprised us

by demonstrating we can suppiy>
at
least in a limited war, both

for our peop e.
will stress the
growth in our population and the
inevitable increase in the demam

guns

and butter

And the sociologist

for.goods and services.

or

constitute an in¬
against a drop
general market, a decline i

These facts do

demnity
the

bond

the stocks of £
even

a

particular industr ,
in y°u*" P

sell-off

Robert S. stock market would probably go shall be placed fefUnited States •holding. They do auger well tor
the future of American prosperi

lorn}ed>. tlLe New Layton has become associated up.
Delving deeper
7f°fk Capital Fund of Canada, with Forbes >& Company, First
vS' up to one-thirrf of its Qccoto National Bank Building. He was tery of business
.S*Iter,' ™ay in" Z v
vest
7i
e
as tery ot business
v™?

which

supply,

money

begun

had

which
them.

stock market,

surprising

the

in 1830 that "Do what you will
the capital is at risk" was accepted as justification for including common stocks in portf )lios

ac-

least
of

One

the governing factor in selecting
investments
for
fiduciary
accounts. By this ruling the pro¬
nouncement of Justice Putnam

of n0 little importance to building counts whose liouidation in turn
?nd exemplifies the effect mone- forced another flock to sell and
»ary policy can have upon an in- s" -n „d
The fire fed
dustry.
/
i
t
recent markets a decline

an

Thp investment managers of the

.

foster

fnrmori

are

most attractive,

gives expression to the objectives
of

has

strength

two

flexibility as it will enable concentration of commitments in in-

to

1940

open-end

agement

cushion.
our

features will give the fund greater

and

„

.

These

company.

one

any

r\v\

■

June
_

itrrtn

the percent-

a

at

_

r\r\f\

of 1,000,000 com-

shares of New York

mon

upon

tw

of the fund's assets which may
invested in the securities of

age

Public offering

limitation

means

as

it

business,

bulwarks of

had
riivprqified

in

as

the

not have reversed the

may

decline

promulgated

was

It has been estimated the
pension funds now aggregate $17
billion, a vast amount of money,
much of it finding its way to the

Although the reversal in money

bargains, but the list indicates that there is still a fairly good
range of choice, particularly if the investor does not object to

Rule

funds

banks.

the

at

New York common stocks
made legal for life insurcompanies and the Prudent

Man

projects were not so lightly
undertaken. Before long the wave
ing

were

comfort-

so

expanded,

or

In
ance

a

new

11

22

gal¬

the Trust Officer is using.

eligible.

result,

As

not

were

carried

ably

difficult to

more

banks.

borrow at the

ment

25

are

from

depart

first, only to leave behind
a

illiterate.

that

to

a very un-

and credit. It became more

money

22

Mississippi Valley Public Service

enough

them

been impressive,

subjects9
spend their lives slav-

saving,, usually

and

world

fiscal

on

ac-

ceeeded to contract the supply of

11.7%

$2.06

the

dandy.

Ratio

Earnings

Price

Black Hills Power & Electric...—

Price-Earnings

Share

Recent

are

In
New
Hampshire,
another fused with the nomenclature no
matter what his I. Q.. rating may
conservative State, a similar debe.
The jargon of the securities
pleasant aftermath. The new Ad- velopment was the approval of
business is no less bewildering.
ministration
bravely adopted a investment trust shares for purtight money policy. Utilizing the chase by savings banks.
Again Bequeathing your estate in trust
various techniques and devices at there were restrictions, with only is no solution unless your wife
at least understands the language
his command, Mr. Humphrey pro- the
best
of
the
funds being

inventories

similar high return.

to be an

what threatened

in

wives;
men

lant

assumed

Humphrey

companying menace of

sion, Texas Eastern Transmission, National Gas & Oil, West Ohio
Gas and others. Some of the telephone stocks—both Bell and inde¬

For

ing

invest in bank stocks which met
specified
requirements. Approbation was thus given by a con-

5.6

•

get very high yields. Some of the pipe-line and gas stocks offer
attractive income rates—Columbia Gas, Tennessee Gas Transmis¬

a

not.

or

6.7

pendent—offer yields of 6%-7% or more.

Motors

American
feminine.

educating

their
Most

:

1.00

further afield,

For the customer who wants to go

General

like that would it not be wise for
husbands ..to begin

In Massachusetts savings banks
had been granted permission to

began with the Democrats

When

to

—affords

it

like

we

investments rather than speculations. Some of these developments were as follows:

manage-

money

licans.
-

fEstimated.

dividend.

stock

With

has

uncontrolled
♦Includes

"

Of all

stockholders 43%

2.00

-

of

•

S. Steel.

U.

and

29

1
_

nearly-.50%

■

15

16'

Hampshire

Southern Utah Power.

<

36

17
28

Gas.^—

Buyers of Common

as

Stocks

servative State to the theory that
his
duties
as
Secretary of the some types of equities deserve inTreasury we were still in an investment consideration comparflationary cycle.
The voters de- able to that given bonds. The efmanded a cut in the cost of living feet of this ruling on the prices
and sound economy called for a of some of our bank stocks has

16

Electric

Sierra Pacific Power

,

we

whether

ment

2.00

_

the Stock
might take a look
market. The United

the money
now

industry

our

Wrong

Market?",

Service

Public Service Electric &
Public Service of New

"What's

1*3.50

_

type

There is still another

The historical background referred to a number of aevelopments going on at that time which
had considerable bearing on the
into acceptance of common- stocks as

why

launch

To

57

_

Michigan Gas & Electric
Mississippi Valley Public
New England Electric
New England Gas &

-

36

...

new

our

5.5

Housatonic Public Service

be lightly
importance to

fighting him so truculently.

5.6%

0.48

Fitchburg Gas & Electric.

not

The

New if American women are
to
hold title to property on a scale

*5.7

Associates.

Eastern Utilities

will

Mr. White didn't
thank Mr. Young for craving the
New
York
Central
instead
of

1.20

18

assur¬

is obvious.

Women

New Developments Regarding
Common Stocks

seeing

wonders

$1.80

___

Concord Electric

Electric

Yield

32

—

__

have

must

the light.
With
railroad earnings down 45%' one

33

Maine

"With all this historical back-

quarter,

first

the

in

37

Hydro-Electric...

Central

Lowell

The

22

Bangor

intel¬

is

inducement like the

an

relatively
ground it is not surprising comnew buyer of common
stocks and
mon stocks have ceased to be tne
that is the American women.
The
playtoy of Wall Street and have
gentle sex now owns over 50% of
taken up residence in the less American
Tel. and Tel. and of
stand.
Even the steel or mining glamorous but steadier environAtchison, Topeka, Santa Fe and
people, with only a 20% decline ment of Main Street."

Approximate

Rate

Price

whose

industry,

50% in
the first quarter of 1954 as against
1953, this enhancement in stock
prices must be difficult to under-

trouble

Dividend

:Recent

■

Commercial and Financial
Chronicle in April, 1951:
.

textile

or

for

the stock market of this

earnings were down over

recent date still yielded 5.5% or better:

a

Citizens

ment

become

personnel

Plan

of buyer

the

For members

for the careful investor to obtain

It is still possible, however,

Thrift

of the farm equip-

they hit 345.

the Mqody Average
of 24 electric utilities, the yield has dropped to 4.59% and the
price-earnings ratio (estimated) is probably close to 17. The drop
in stock yields has paralleled, but somewhat exceeded, the decline
in bond yields since the Administration changed its monetary
policy in June, 1953.
;
much better than average yields by combing

that

ance

of mine entitled "The New Look
in Common Stocks," published by

averages

months later

stood at 289.54. Five

to

ratio has advanced

price-earnings

average

Industrial

Jones

Dow

135 issues down to

for some

corporations

loyal

disregarded.

For the high-grade issues contained in

15.4%.

between

ligent,

The Stock Market?

advance in the prices of electric utility stocks

The continued

soon

equipment among all
large employers seems a reason¬
able assumption. The
competition

With

What's Wrong

Utility Stocks

Good Yields Still Obtainable in

Plans. will

standard

ELY

By OWEN

has

3

into
and

and

this

mys-

securities

Savings Bonds,
stock, or one oi

ip Oil

bur

common

investment

trusts.

securities trusts.

Garrett-Brom- I wish to quote from a directions,- been
traveling in opposite discussion -The

and

responsefe the plan
pnttmsiastin

most

lusiastic.

has

That

income

and aPPr

opportunities

in comm

also

ciation
stocks.

for

They

promise tna
investment cm

give

stocks will enjoy

Number 5352

Volume 180

.

.

.

The Commercial and
Financial Chronicle

acteristics to a far greater degree
than in the past.

the

continent

mada
and

Confidence Is a Prerequisite to
Investment

There is

stock prices not

in common

gen¬

of

Europe the

regarded

Ar¬

tunity

invincible

as

army was ready to
Britain once the channel

invade

cleared

her

of

little

fleet.

England appeared
hopelessly out¬
numbered and doomed to over¬

A prerequisite whelming defeat. '
to an investment
is confidence.
Queen Elizabeth rode bareheaded
Almost as important is pride. Profit among her
troops and said "I am
is not the only satisfaction of the come
among you at this time to
successful investor. Who has not lay down for my God and
my peo¬
heard an
investor boast about ple my honour and blood
even in
some company in which he owns
the dust."
stock? In fact, who has not boasted
When the great Armada at
last
of his own selections?
The stock
arrived in the channel
England
market rise in the face of dwin¬ had
miraculously assembled a fleet
dling business volume is evidence of 197 vessels.
confidence and pride Amer¬
have in their industrial

of the

system.
should

Americans

be

proud

of

for it is the chief

their industry,

Though

to

the

enemy's

latest

one.

thing in

They

this.

being made in the various issues have kept the market in what is
termed "the fairly active
side," especially for this time of the year.
The downtrend in loans,
particularly among some of the smaller
deposit banks, is one of the important reasons for the current

behind

interest in Treasury issues.

me

The leading obligation at this time

19-30, because it

is the 2Vs%

due Nov. 15,

portfolios.
Switches from the outstanding securities into the new 2V8% bond
continue at a good pace. There is also a good demand around for
the

longer-term

continues in

2V2S

high

fit

to

appears

because

into

well

so

the

so

many

lengthening process

maturity

New

2% % Bond in

The Government market is still in the process of finding per¬
manent homes for the 2%s of 1960, but the floating supply of this

shipyards had been equal to the

issue is being cut down with each trading session. It is reported
that a sizable amount of new money commitments are being made
in the 2%% bond, with the bulk of this buying coming from com¬

nations

free

cannot

exceed

countries in population.

They can excel in production be¬
cause of
the vast industrial po¬
tential America has in readiness.
Production is acknowledged to be

decisive

the

in

weapon

modern

warfare.

moth machine of

mam¬

be kept in¬

ours

It must not be imperiled by

tact.

Let

hope

us

whatever their label,

politicians,

America,
so, our

hostile

a

pared

to repel the enemy.

have

us

equally

economy Remains
from
political

pre¬

If

our

probabilities

excellent

are

arming

allies.

For many

months

now,

saying that in view of

industrial

ish

and

England in 1588. The Span¬
numbered 130 ships,
British Royal Navy 34.
On

Armada

the

stock

future

market

achievements

capacity, America
with

in

our

skill

are

Pension

funds

have

in the longer-term
doing most of this buy¬
ing. New moiiey is responsible for the bulk of the new commit¬
ments in the longer Governments, silthough it is indicated that
some sizable switches have also been made by these same funds.
again

It is reported

active

been

Treasury obligations, with the public

that the 3y4S of 1978/83 have in

some

been

cases

buyers of the 2Vss of 1960.

Maturity rearrangement is having an influence upon the vol¬
ume and activity in the market, with commercial banks the leaders
in

"Door-to-Door Piggy-Back" Service, Though

Commerce

Interstate

Commission

to

sus¬

pend

approval
of
tariffs
for
"door-to-door piggy-back" serv¬
ice

until

Jan.

15,

1955,

unless

it

—the

No.

1

freight

lengthening them.,The new 2%% bond
those that want to move into the intermediate-term
range an excellent opportunity to do just that.
On the other hand, there are certain deposit banks that are
attracted to the longer-term obligations and these institutions have

car¬

rier—they are: Baltimore & Ohio,
Erie, Nickel Plate, Lackawanna,
Lehigh Valley, Wabash, Reading,
and Great Northern.
The

then,

came

as

the

blow to

a

lines

which had prepared to embark on
this type
of freight

However,

delivery.
railroads that al¬

the

ready operate truck trailer
ices

As to the

statement

effect of the order, a

issued

was

Pennsylvania
out

serv¬

unaffected.

are

the
pointing

by

Railroad

it

"veterans"

the

business of hauling

Motive

cided

eration, and

equipment will
stand idle
pending the final Inter¬
state Commerce Commission de¬
cision
new

regarding

tariffs

for

the

service.

Moreover, the com¬
pany is holding up order for 200
flat cars,
especially designed to
hold

the

trucks

hack" service.

trucks, to be
can Car and
is

to

be

in

The

When

"piggyof

cost

these

built by the Ameri¬

Foundry Company,
neighborhood of

the

$2 million.

lor

the

for

,

,

the

ICC

had

the

tariffs

the

der

the rail

oly of

lines

were

seeking

monop¬

transporation. The "piggy¬

back' plan

fail-motor

was

called

device.

"hybrid"

a

But the device

1

/ no. m9ans

hauling
Phgun

new.

trailers

on

The business
flat

cars was

in

the mid-1930s by the
Haven and the Chicago Great
western; the Chicago & Eastern
hPois has been at it about six

New

nfars*. But the big
the

move toward
rail-trailer service idates back
°hly a few months.
?
lo July
alone, 10
began piggy-back
tween
tnes.

trailers.

selected

big railroads
operation be¬

cities

on

their

Including the Pennsylvania




than

not

1

has

manufacturers

Motors

into the longer

issue of its

to

built

It has

loading.

type

to

sure

clear low

concerned

with the "Yield Curve," its construction and

Continued

from

15

page

requirement that, before the sale
is made, you give the buyer of
a
new
home a certificate show¬

1

tunnels.

has

pany

Car

produced

Com¬

elevator, if there's a clear¬

an

Its hold-down de¬

problem.

ance

vices

can

be

raised

or

either

accommodate

lowered to

side

or

end

loading.

Despite
merce

the

Interstate

Com¬

Commission's delaying

it

is

carried

is

effect

out

refer

placing

transportation.
and

enues.

of

develop¬

the nature of progress

the rail

means

This

lines look to it as a

improving
#

FHA

The

their

entirely

operates

through private industry. It does
not lend money and it does not
build homes.
Your government
looks

members of the
Council and to the
others
like
you
who
operate
under the private enterprise sys¬
tem
to
perform these services.
Heaven
help us if the govern¬
to

you

Utah Housing

ment

from

this

role in

sup¬

deviates

ever

.Hp-

concept!
vital

the

is

Yours

plying the homes which the peo¬
ple need and in raising the hous¬
ing standards of America.
The
FHA as never before stands ready
help

you.

Moors & Cabot To Admit
R.

Sept.

Mass. —On

BOSTON,
Alden

Wells will be

1

admitted

to

partnership in Moors & Cabot,
111
Devonshire Street, members

of

the

New

Boston

and

York

Stock

Exchanges. Mr. Wells was
the past an officer
of J. H.

in

Goddard &

Co., Inc.

Joins Fewel Staff
(Special to The Financial Chronicle)

SAN

DIEGO, Calif.

—

Doris E.

Cole has joined the staff of Fewel
&

Co., San Diego Trust & Savings
Building, members of the Los
Angeles
Cole

was

Stock
Exchange.
Miss
formerly with R. E.
Cashier.

as

On

ber

Sept. 1, Paul V. Hall, mem¬

of

the

New

Stock

York

Ex¬

change, will become a Partner in
F. J. Connelly & Co., 15 Broad
Street, New York City, members
of the New York Stock Exchange.^*
Mr.

Hall

has

been

active

as

an

U. S. TREASURE
STATE

FHA

such

build

no

that

things

the

as

the

leasehold

longer may be used to

costly

rental accom¬
modations than the law intends.
more

I refer to the fact that

has

builder

the

said

of

Congress

housing

has

project

been

the

should

rental

a

case

not

in, the

past—

when builders have had loans in¬
sured for

One

rev¬

be

of

as

much

the

troubling

as

$20 million.

things which
you

builders

I

talked

have

that

we

can

the

with

and I

make

without

SECURITIES

com¬

this

am

sure

provision

undue
hardships upon the builders.
If
you
do not have the FHA ap¬
praisal when your customer ap¬
pears,
you .may
give the pros¬
pective purchaser the opportunity
to make a final decision—yes or
no—when you do have the FHA
appraisal.
I
am
confident this
work

will

be

imposing

according

the

to

and the wishes of the

inteni

Congress.

The length of time to study the
safeguards has not been sufficient
to

measure

may

be.

is

ahead,

a

the

mittees which worked on the leg¬

islation, however,

looking program.

to

of

appraisal

This directive from the
a little difficult of

MUNICIPAL

Congress was
interpretation.

into
new

requirement
device

in

Administration's

the

and forward
I

Housing Act

have
a
mortgage of more than $5 mil¬
ering transportation costs will be
lion for any one project.
We are
taken up by the railroads, to pro¬
tect
them
against
the
serious going to see to it that this amount
is not exceeded by subterfuge as
competition
of other forms of
ment is in

the

ing

property.

New

or¬

expected that "piggy¬
back" and other devices for low¬

der,

In Praise of the

"general

a

purpose" flat car that can be used
either to haul trailers, or to haul
the
steel
or
other freight
that

like

additional families.

and

will

bridges and

Pullman-Standard

now

depressed

a

center floor so the trailer top
be

its

is

a very

place in aiding investors in making decisions and selections of the
various Treasury issues. It seems as though a copy of this bulletin
should be of value to followers of the money markets.

"circus"

call

where impass¬
prepared to ex¬
benefits to thousands of

previously
It

the August

interesting and informative article
Interest Rates and Maturity of Issues."
This

bulletin, has

"Market

article is

railroaders

to
the

where

localities

into

move

prepared

is

Interesting Study Issued

solely for side rather than end or
what

now

individual floor broker.

Government issues.

The Federal Reserve Bank of Kansas City, Mo., in

to

entitled

is

model

moving

keep earnings on an even keel, many of these banks are

de¬

but

cars,

Therefore, in order

to have also slowed down quite a bit.

appears
to

blueprints.

General

passing amount of attention from some of the smaller

a

locomotive

build

to

other

its

use

No.

Electro-Motive

builder.

according to advices, is getting

deposit banks, because the commercial loan trend is down sharply
in many cases.
There have been some instances in which real
estate loans have taken up part of the slack, but this demand now

Mo¬

General

"piggy-back" service un¬ normally travels by flat car. Its
consideration, the trucking deck can be raised or lowered

interests protested vigorously that

f

Corp.,

of

FHA

linings.

of brake

set

new

The

F. J. Connelly Admits

Loan Downtrend Market Factor
The need to maintain income,

leading

two

Division

license

this

tors

a

horsepower which has
into the FHA, I also

Evans & Co.

in

railway
equipment makers contributed
new
designs for 75-foot flats
especially for trailer service.
They were Pullman-Standard Car
Manufacturing Co. and Electrofall,

the 2y2S due

purchases of the eligible 2y2S, with
9/15/67-72, reportedly still the favorite issue.
making

more

Last

has
already spent more
$1,270,000 in acquiring
equipment for "piggy-back" op¬

than

months

several

of

given

been

Katy,

inquiry and termi¬ Southern Pacific. Union Pacific,
delaying order before and Chicago & North Western are

its

have

to continue the program of

nation's

completes its
nates

built

It is reported that not a few of these institu¬
decided

this operation.

has

the

of

in

been

tions which have been rather near-term in maturities have

Deferred, Will Come
decision

to

crease

ones

sold, with the proceeds going into the later maturities of the
Private pension funds have been among the reportedly important

The

ignition keys and told
It is comforting to
know that with all the in¬
off.

shove

to

Pension Funds Active in Market

confidence.

supreme

a

and

new

a

automobile,

handed the

to

face the

can

indications that

fairly important amount of buy¬
ing is being done in the shorter-term Treasuries by certain instititional investors from profits in the equity market. It is reported
that these investors have been sellers of high grade common stocks
and, not wanting to put the fun,ds ibto either the corporate-or
municipal markets, have gone into neai;-term Government issues.

defending ourselves

our

are among the reasons given for a good many of the
of the older marketable obligations into the new 2y8s.

There

will

we

premiums,

swops out

the

has been

that of

of

untrammeled

interference,

and

predicament is not unlike

However, the exchange method continues to supply a very
large amount of the buying which is being done in the refunding
2%s, with switches, from most of the outstanding issues, being
reported. The taking do\yn of profits, as well as the cutting down

doing

•

factories, mills and labora¬

be capable of

of reform.

mercial banks in the southwest and far west.

heads for

will

who, in their zeal for votes, would

the

if

ever

contemplates

or

hamper its operation in the guise
Our

that

fleet of jet planes

tories

imperative that this

It is

occasion.

Strong Demand

of

wheel

powerful

very

tend

plishment. About one-half of the

if I have been placed

as

the

able.

Spanish fleet survived and reached
home.
England was saved.
Her

The

feel

roads

gear.

periphery of the Iron Curtain.

the slave

I

accom¬

hope of the free world to escape
the

and

hower

far as volume and
activity is concerned. There are reports to
the effect that the ne\y money commitments and switches that are

were

Both

sound.

is

as

smaller

naval

principle behind them
President Eisen¬
the
Congress
have
told me to make the FHA work
for the benefit of the people of
America.
I'm going to try to do
the

But

It is evident that the Government market, although still under
the influence of the "vacation
period," is not making out too badly

than the Spanish
galleons, these
ships drew less water, maneuvered
more rapidly and fired
three times
the

Governments

on

By JOHN T. CHIPPENDALE, JR.

erally appreciated.

icans

Reporter

that some

modified.

be

Our

them and it ^
of them will

evaluate

to

be

may

I

huge

a

was

aspect of the rise

one

was

27

(703)

In

the
we

what their effect will
months

will

immediately

have

an

oppor-

Aubbet G. Lanston
& Co.
INCORPORATED

15 BROAD

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

and Financial Chronicle

The Commercial
28

v.

(704)

1953,

or

34%

FUNDS

r MUTUAL INVESTMENT

for

investment
objectives,currently in¬
varying

vested in

350

over

secu¬

rities of American cor¬

For FREE

porations.

information folder and

resulted

Jl.

1

and address.

SECURITIES &
RESEARCH CORPORATION

«°I= $30,000,000 since

Established 1930

5, New York

3Ssi,ares- moi the

payab,e

were

effect to the possible e
of Pembina and Sturgeon
Lake, Canada could reach a production potential over the
giving

by Calvin Bullock, concentrates its investments largely in

aged
=7?

"blue

the

stock.
of

different

100

some

largest

of

year

barrels

a

1953 mark, or a

total

of 500,000 barrels a day.

senting the largest for any month
this

INVESTORS
fund

mutual

At the present time
the company has more than 68,-

wi tli

by over 65,000 investors.

Scotia refineries.

for

selected

long-term growth

THE VIEW that the stock market

of

Prospectus

earnings
have

from investment dealers or
The
200

of

rector

the

of

However, the report points out,

opening up for Canadian crude
and by the end of 1955 a demand

on

that

out

V

the

stimulating

Keystone

of

BOND, PREFERRED AND

it

"is

vields.

full

your
ten

and

reserves are

protected

demand

security

careful

—
term

mission

Organization and the shares of your

with

D-9«

those

which

still

are

to

the

of

Northwest

grant

per-

Trans-

from

gas

the

to

area

dimmed

has

outlook

mediate

to

Federal

Westcoast

carry

River

peace

lag-

the

to

mission

contrasted

as

ample for prospective

refusal

Commission

Power

in

standpoint,

'

«The

valued optimistically from a short-

describing

the basis of
it appears that

,be discovery rate,

discriminating
becompanies which may be

Boston 9, Mess.

in the order of 16 tril-

are

lion cubic feet, and on

earnings,

price

well

for

play

Keystone Company

Funds.

serves

This," he noted, "provides

analysis

prospectuses

by lack of adequate outlets. Re-

u

the

Pacific

im-

the
this

for

.

ThP Wellington executive

ferred to the business situation
Address

"reassuring."
State..

Cry—.—..

this
tion

Mr.

that

while

frZ'tf n.'n

;

.

,

e

J

the

observa-

area

that the

will not be utilized by the
hungry Pacific Coast area."

gas

a
These, and other problems are,
qu,ar,^r' however, soluble according to the

+

.

in

third

quarter

is

now

Canadian

the

future

And he added: "Overall business

of

Canada

quarters.
:

with

in

viewing the

oil

firm

industry

in

confidence."

activity has remained steady and

Fund?

SOVEREIGN INVESTORS report-

if

ing

anything,

expected

is

than

better

earlier

in

continues to look

as

the

was

record

It

year.

though busi¬

of

as

July

high

31,

figures

1954
in

shows

total

net

assets, number of stockholders and

Fund

company

is

a

mutual

ness

investment

forming

a

normal seasonal

offering a diversified, managed

base from which
improvement

can

shares

outstanding.-

Assets

pared

develop in the fall."

investment in common stocks of corpora¬

tions selected on the

is

were

with

-

-

-

$1,005,549.90,

$748,813.38

oasis of possible

The facts

your copy,

on

31,

American

0f

Business Shares

oelow to

calvin

A Balanced Investment Fund
supervises a portfolio bal¬
anced between bonds and preferred stocks
selected
for
stability, and common stocks
The

£s«iU*.W 1S<H

One Wall St-, New Ym k

Company

selected

for

growth.

me a

free booklet-prospectus

Prospectus

►

upon request

CisAfcM F«ti

New York

Address.

nf

S'n°i°?

—

Chicago

—

4

i

,




reports that its net asset value
per share on June 30,-1954, was
$44.50, as compared with $34.63
on June 30, 1953 and $43.26 on
March 31, 1954. A distribution of
$2.77 per share from ■ long-term
capital gains was. paid in April,
1954, and dividends from net investment income amounting to 30
cents and 57 cents per share were
paid in October, 1953, and April,

1954, respectively,
Shares outstanding of de Vegh
Mutual Fund, Inc., on June 30,
1954, were 78,354, as compared
with 56,365 on June 30, 1953, and
61,147 on March 31, 1954. Total
net 'assets of de Vegh Mutual
Fund, Inc., on June 30, 1954, were

^™JfP°na
inr^i^
$3,487,051.04, as compared with
®IL ^
" ° "m law nvei 51,952,003.10 on June 30, 1953, and
Th?Fund's latest previous July 53,645,424.82 on March 31, 1954.
™ r^und s largest Previous July
V
Y 9?
F Fund, Inc.,
,h£°Ltbe
rep°rls that 'Is neLas?®'value
tn

w

Atlanta

—

t

^

F

year, sales were 20% higher per share on June 30, 19d4, was
than for same period in 1953'
$476,641.38, as compared with
MASSACHUSETTS Life Fund in $30°»413.03 on Dec. 31, 1953. The
its semi-annual report for the six net asset value per share on June
ended June SO* 1954? reftwas 51' 67' as c.°™par

h $10.03 on Dec. 31, 1953.

ports total net assets of $18 543,-

w

038

FUTURES

equal to $3174 a share on
584,225 shares outstanding, new

because it

"to

INC.

announces

that
each

is short coffee, and

shareSandDcurrent
share ana ciir
f^UreS P,nCeS»HerMed
net
assets® have increased 14$ free tradlng ValUCS'
sjnce the vear-end
for shareholders protection not to
On June 30, 1954, common accePl new purchase orders for
stocks represented 61% of the shares until free trading in cof-

as^ts ^"$16448.335,'
S28 61

share

a

outstanding

on

equal

564 370

on

31

Dec

shares

1953

oainDer

«

I.

Total

,

and

resumes

1% In
-

stocks, 43% in bonds and
preferred stocks, and 1% in cash
common

and receivables at the end of 1953.

du^g^^d"'quartet' were?
bonds, Northern. Natural Gas Co.

3V4S,

1973;

American

preferred

stocks,

Airlines,

Inc.,

common

stock

and

31^%
In¬

of

Harvester Co.

Eliminated

were:

Gas

Natural

bonds, North¬

Co.

4V>s, 1973;
preferred stocks, Connecticut

ern

&

Corp.

Co. $2.20; and
stocks in Johns-Manville
Power

and

Montgomery

W

a r

d

& Co.
NET

ASSET

value

p^r,

of

the

Somerset

share

& Towne Stock

Inc., has increased 23%

of

rent
Los Angeles

according

year,

*

Mutual Fund,

designed to provide a man¬

aged investment in a

variety of

Securities

asset

was

value

$7.78

Corporation,

per

of

as

per

Dec.

31,

share, and

share. The

value of the portfolio

on

cur¬

is ap¬

*

4

.

-

a

.

t

i

u

ties

resulting from Atomic

activi¬

Science.

fill THE FACTS MO fRtt

PRKKCNS

to

proximately $3,701,000.
*

Inc. is

Fund

since the

principal underwriter of the fund.

last,

Atomic Development

companies participating in

Van Strum

»

n«.

F,inH

putman

pfarpf

Tnp

July 27, $9.58

Lord, Aimirrr & Co.

Name.

fund's

DE VEGH MUTUAL Fund, Inc.,

the 12
months ended June 30, last, with
total resources of the Fund at
$5,057,092 compared with $4,085,499 on June 30, 1953.
The Fund's largest single common stock holding
by industry,
according to the report, was in
natural gas utilities and accounted
for 15.9% of net assets. Other
common stock industry groups ineluded: electric utilities, 12.0% of
net assets; chemicals and drugs,
7.8%; manufacturing and miscellaneous 7.8%; merchandising,
5.7%; metals and mining, 5.5%;
railroads, 5.2%; and oil, 5.0%.
net assets in

increase, in

Net
Please send
on

the

also
offer
better-than-average
heretoforeappreciation possibilities.

as

HUDSON FUND recorded a 23.7%

first

BULLOCK

fully

more

fiscai year rather than in

our

October,

ask any investment deaier x

mati the coupon

re¬

rearrangement of

sound investment principles. The
management also believes that,
through constant research, securities can be found which not
only provide a high return, but

company

common

this mutual fund are con

free oooklet-prospectus. For

a

out

ing

are

year

^e

Light

participation in Canada s growth
tained in

com¬

disbursement
a

known.
Therefore, if
should have net
reanZed security profits for the
curTent fiscal year, they will be
distributed shortly after the close

our

ternational

Dec.

increased

primary investment objective of
maximum income consistent with

conv.;

Caiadian

distribu-

cash. These compared with 56% in

justified

of $0 06

ago

until the exact results of
security transactions for the

and preferred stocks,

be

year

Cal year for the purpose of carry-

concludes: fund's assets, with 38% in bonds fee

relatively tew years mat one

may

f

portfolio during the past fis-

the

declara-

in

a

a

capital
gains
fleets in part

«So much has been accomplished

being

pushed into the second and fourth

What is

of this

reserves

hieLit ? used tosome done the Bullock study which
exist be of
business that
the

East,

it is ineon-

area

shut-

summer

•

to "the

Over the longer term,

ceivable

brmgi^K- Jab0Ut

♦

as

prefaced

with

comment

transportation

from

re-

Kulp

» •»

substantially*:'

This

gards.'"

Name..

•

declared

alsQ

share

per

tions

Uon, the production of natural gas

longer cheap, nor
excessively, as meas-

by historical

transportation

gas

a

in Canada has been held in check

ob-

he

appears

areas.

aiso

ex-

,

market,"

crude

is
major problem, states the
article. "Except for local distribu-

more

been

s.

Natural

easy

a

Canadian

possible from Canadian and

be

\j
.

no

valued

dividends

me

to

to

readjustment

had

,

,

stock

served,
ured

COMMON STOCK FUNDS

than

business

Pe.^idThe
is

Please send

able

of

and

moderate downward

Custodian Funds

50 Con|reu Street,

was

influence

conditions

money

The

market

close up this lag by the combined

believed

are

daily rate of 340,000 bar-

of

reis

pointed

outlook,

market

outlets

new

the

at

the business situation and the se-

curity

out-

various

memorandum

a

output

Canada."

sjde

*

Kulp, in

sub-

Any

crude

Committee

million

Fund.
Mr.

in

Wellington

Investment

$350

crude.

increase

therefore be marketed

must

Executive Di-

Vice-President and

Berkeley St., Boston, Mass.

stantial

years

be

can

cheaply with foreign

more

Canadian

than

which

dividends

and

prevailed for several

For the present,

refineries

these

least,

served

business

expressed by A. Moyer Kulp,

was

Corporation

Parker

at

coming into
levels,

finally

the

with

line

be obtained

may

be

to

seems

capital and income
'

1953.

000,000 shares outstanding, owned

a

of

portfolio

securities

for

those

double

and

year

July,

year

same

ti0n of any capital gain

savings in foreign exchange, but
it cannot be attained by matching
production with consumption. In
1953, Canadian refineries ran
220,000 barrels daily of foreign
crude of which 175,000 barrels
were run in Quebec and Nova

$10,000,000, with July sales repre-

INCORPORATE!)

the

receive

still

it enables us to defer the

"Self-sufficiency would enable
Canada to effect a tremendous

exceeded

1954

of

£und

the

tax
benefits as if we had distributed
them before the end of the year,
This ig a desirable change since

few years," the study observes.

a

shares in the first

new

months

seven

A

/»A

until capital gains distribution

we
might realize
^he end of our fiscal

a£^er
and

day

150,000

the

above

common

Standard Oil of

fornia and General Motors.

Sales of

such profits to

on

profits

Thus it
New Jersey, International Paper, appears that Canada could achieve
E. I duPont, Standard Oil of Cali- theoretical self-sufficiency within

diversified

? 11.

n

Au" WS^Trom^fongTerm

serves

chip" type of common,

Currently the five

stock holdings are

;

just

income distributions " totaling $0.79 per share were made 7
ended,

The most serious problemfacing

$300,000,000 group of funds man-

9H i

with

1

^.11 v.

M

$16.59

was

SjfS

NATIONAL

120 Broadway, New York

1

X»i

.

year,

compared

capital gain distribution in Octo^4.'
-f»cirin

investInc., exceeded $150,000,000 at the ment management department of

assets
at the

fiscal

$13.90 on July 31, 1953.
During
the
fiscal
year

make a

been our policy to

has

it

share

STneMS -SSSffifSuSS CaSda"^ust°issued'by\he

prospectus, clip this ad
and mail with your name

years
in which our
portfolio securities have
in net realized profits,

of

previous

its

The number of shares outstanding increased almost 76% to 113-

those

"In
sales

0f

700 fr0m 64,671 a year ago. As of
Prankard 2nd: juiy 31^ 1954, net asset value per

by President H. I.

CANADA'S

prices for

1954

gain distributions

spect to capital

OIL INDUSTRY al"blue
chip"
common
stocks in though facing the type of probrecent months, together with in- lems caused by "growing pains,"
creased volume of investor pur- shows a record of "constant prochases of mutual funds, is indi- gress and a strong rate of growth"
EFFECT of rising

THE

Mutual Funds with

SI,887,069 from $898,998

end

report
to
shareholders contains
the following comment with re-

By ROBERT R. RICH

SERIES

increase of 110% in net

an
to

quarterly

FUND's

AFFILIATED

SECURITIES

7

the

of 1954.

Mutual Funds

NATIONAL

Thursday, August 19,

PURITAN FUND, INC. reports for
its fiscal year ended July 31, 1954

net gain of more than
first seven months

a

. . -

i

ATOMIC

DEVELOPMENT

SECURITIES CO.

•

1033

30th

Street,

N.

Washington 7, D.

C.

W.

Volume 180

Number 5352

.

..

The Commercial and
Financial Chronicle

.

(705)

❖

and

revised

Francisco,

Calif,

Committee

to

bility

Trust

Irving

Company, New
on Aug. 13 the

announced
election of three

Assistant

only
-This
the

—.

retanes..:

of

National

Burton B. Brown, a member of
the staff of the Brainch Office Di-

elected

Vice-President.

ving in 1Q53
1953.
William
Assistant-

formerly

Secretary,

^Yas

uujm

o

,nan?^
in the

Starting with, the-Irving in

Assistant
the

officer

of

Vice-President,

the

1953.

Charles W.

Assistant

rapidly

commercial

is

Mortgage

A

Irving's

Loan

of

the

staff

of

Manufacturers

Company,

New

nounced

York

today

by

of

Mr.

Romig
in

National

Bank

in

through

*

banks. In

Mr.

United
in

nf

mprrrnr

Assistant

an

Romig,

thp

is

he

was

to

.

%

y

,

*

*

•„

®

_

pIpp+^h

urh«

Director of The New York Trust

Company,
it

was

—a

New York

announced

on

by

Massie, Chairman

of

the

Election of Edward A. Nash
of

the

Lafayette

as

will

continue in active management of
bank.
The newly elected

Savings Bank

Ohio

effective

Madison, Ind., with

it

was

announced

has been

Aug. 12 by
J. Bertram
Kelly, President. Mr.
Friend is thp third f>Pnf>rat.ion of
is the third" generation of
bis family to become
on

trustee

a

the

bank, the

announcement

*»f

title

of

Trust

*

*

*

by the Office of the

Comptrqller

Currency effective Aug. 2.
The bank has a capital of $150,000
and a surplus of $395,931. Mr. E.
W. Oredson is its President and

^r- T- C. Jackson is the
This is

Jr.,

C^^er,

a conversion of First Edma

State Bank, Ldina,

Pre.si-

dent of the
Long Island Trust Co.,
City,
New
York,
an-

Garden

of

Bank

Bank,

Dallas.

stock

common

of

Dallas,
stock

Tcx^.

J1)1.(?ei
torv

the

shares

new

under

the

$2,500,000

con-

oossession

sha^eholders

Jhly

on

20,

1954, has been heavily
oversubscribed.
The
period for

subscriotions

to

expired

p.m.

at

at

3

the

new

Aug.

which time the total

12,

shares

1954,

subscnp-

lions amounted to
18,761.
Because of the large percentage
of
subscrintiors bv present stork-

holders

with

basic

rights, which
than 92% of

amounted to more
the 11 500 shares offered

storkholders

additional

who

shaS

those

enbecribrd

to

will be allotted




u"der

the

National

"First

At

charter

the

and

solidation

the

will

canital

title

in

Bank

effective

Such
be
Ut:

While

of

consolidated

slightly below

ch

'

_

divided

'

f rnmmon

of

$To

$18 00o 000; and
Qf not ]ess than

stated

that

on

arrangements
with

a

dealers

a

Aug.

have

the

rpQ

Also,
easing and loan

^UV7Ut

enough

earn

shares

of current

pav

about

to

$18.-

stock of the

surnlus

par

of

17

on

prevent

million after taxes
tvv'l,VcJv
4r>

equal to

o

a

stock

effertive

Aug.. 2 The Valley National Bank
of Phoenix, Ariz., increased its

the

„

substan-

are

books consider-

,,

™

79

and

I

sizable

establish

any

amount

pay

tc-

branches in

locations.
is

that

much

By

taking-

esa

evidently will-

something for the
value

of

go-

Corn

Ex-

Whether the

much

will

is

premium is
difficult

a

depend

question-

to

some

extent

subsequent developments.

Of course, there

still

are

many

problems to be solved before themerger can be accomplished.
An¬
deed, the problems in many sitfiilar instances have been so corp-

plicated

and

mergers

were

present

involved

that

called

discount

at

the

off.

The-

which

Com.

Exchange sells, 85 as against; 3
potential of close to 100, indicates
that there are uncertain elements
in the present situation.

'

]

With J. G. Kinnard

nf

rate

would

!

MINNEAPOLIS, Minn.—Arthur

lJCiU!H.

earnings nf
of

of

(Special to Thh; Financial Chronicle)

or

before

llll^L11.

rofn

k

*raneK

^tablished b usin
Bank

and
upon

fact

k

undoubtedly cost

very

concern

dividend

'axes at existing rates. This

ourchase

srrmHon period Nov.
the
the

for

from

the

j.

nt

be_^aus^_®

26,

1954.

„

by

,

fractions
„

TOfVY) c*

n+

.

,

which

.

rhn

In

arrangement propurchase of shares

,

A1_

„

U

taa

x

Act. cannot now be offered.
The grouo, beaded by

on

,

(r

BanK

A.^ F..

wPir\ rnmnjfnv nS

vm,nff

analysts
stock

price to be determined,

addition,

these

thing

any of the new shares not subscribed for at the end of the sub-

rn

Ti^r

wH)

investment

'

Bohlig is now with John C.
& Co., 733 South Sev-

Kinnard

oorninrte

11

m

i

erRh Street.

the

In

other

City

bank

been

,

Mass.

added

present

Ttji

Joseph

for

im-

capital
possible

words,

the

to

-

cash

Richter

-

a

with

merger

the other New York banks.
action would give the

one

of

Such

surviving

End

Blu-

Company,

With Slayton & Co.
ST. LOUIS, Mo. — Claude
F..
Malin has been added to the staff
of

Slayton & Company, Inc., 408

Olive Street.

.

26,

Morgan & Go.

Incorporated

Bishopsgate,
2.

Circular

(London)

on

Request

Tanganyika,

Zanzibar,

and

Somali-

Protectorate.

Authorized Capital

£4,562,500
Paid-up Capital
£2,851,562
Reserve Fund
£3,104,687
The Bank conducts
every description of
banking and exchange business.
Trusteeships and Executorships
I

L-

Scherck,
320
North-

(Special to The Financial Chronicle)

Branch:
13, St. James's Square, S. W. 1.
Branches in
India, Pakistan, Ceylon,
Burma, Aden, Kenya,

Uganda.

Alvin

—

with

& Co.

NATIONAL BANK
of INDIA. LIMITED
Office:

Mo.
now

Street, members of the;
Midwest Stock Exchange. He wast
previously with Edward D. Jones

funds
funds

.

a

ST.
LOUIS,
Barton, Jr. is

National
th*
the

n«>
use

which H is raising next month
.v.
effect

^

engaging in a secubusiness from offices at 79
Milk Street.
rities

to

London, E. C.

Blumenthal Opens
».

desire

of

being mentioned.

nnnid
could

land

Mocc

sale

provide

bank mergers are

Head

Building.

is

bank's

and

some-

the

Adds

(Special to The Financial
Chhonicle)

to the Government in
Kenya Colony and Uganda

to the staff of Walter &
Company,
First National Bank

menthal

behind

future growth.
It is in this connection that other New York
City

West

Coughenour, Jr. has

JOS.

believe

Scherck, Richter

•

bank

Bankers

Colo.

01

many
there is

than just the

prove

c

DENVER,

reasons,

more

position

Jo;ns Wa!ter Co.

profits

$5,700,000.

_Ctt

hidden.

earnings,

current

twice

to

ing

tbe additional shares will

.

be

been

bank

1.800,000

undivided

nrw

City to

additional

dilution

of investment

grouo

to

Bank, at

B

of

one.

showing no particular
bounce, it will be almost impos-

For

made

RncTn>T

By

to

support the present payment..

expiration date, Nov.

1954.
Mr.
Ball,

con-

into

each:

ten

a

too

volume

26,

unilt?p<?

of

this

4;5,8\a"er taxfs and a <=°"siderably higher rate before taxes to

of

stock

Corn,

value

certain

are

on

would

out

mg

on

ratio compares faThe additional capital to
raised will lower the ratio to

________

have

000 000

and-

book

ta^dufon^here'fs'1the
?

funds ' change.

interesting to speculate

subscription rights are
transferable, they must be exer¬

Dallas."

date

properties

Chemical

augmented by
total of $200 mil-

a

vorably.

not

will
lIcriOiQcla
of LUUlOC,
course
Will,
OI
a.bi* to sell their
rights.

of

deposit-capital

ag-

1

Exchange. The
30, 1954 of

$47.85

of

there

course

desirable

much capital at the present
time.
In
comparison
with
the
other large city banks its
present

Secu-

thereof

for

^ "yrt a 37% prento.
for the Corn Exchange stock.

so

x^Lntp^pplrriTarate on
state^nr in terri re<Iuire
^

n

was

of

S.

terms

bank

why the National City is raising

$2,-

are

U.

In

It

by

would be

^a^an+ce

It is

sible for

Jn0V^r^n!:hiSd^T
SeVn™ ChPital to stock- SOl^ated' efrfiVe aS °f KUgt
11,500 shares fstoek"
-S »e to
The consolidation
effected
hplders of the
Trust Company
at the close of business

present

to

stock

its

Exchange $69.75.

go

the^
would be added to surplus.

a

or

with

lenng of

record

Guaranty Trust

$50 million to

rities Act of
1933, no subscriotion

k/inhiiPA

in

common

$15,000,000 and the Dallas Na-

tional

a

the-

willing

offices,

NahonalCity being

appro-

aoproximately

of

Ex-

June

on

was

r

nnTnun6 ^
°'°°0'0°9 wlth capital

capi-

400,000,000.

,

National

to

nf

represented
First

"altogether

$1,435,000,000
gregat.e

vjdes

Minn.

of

said.

of

The number of shares

thp

additional

was

shares

k
,ExCha"ge haS

nearest rival

cised Hv the

Madison,

The First Edina National
Bank,
Edina, Minn, was issued a charter

»!•

Hain^eld,

Madison

Co.,

Dallas, Texas, with

Frederick

The

of the

elected a trustee of the City Savings Bank of
Brooklyn, New York,

was

effect

Chemical

will

million

with interest rates

stock

common

$150,000, was merged with and
into uic Madison o<nc
iiitu the mauisuH
Safe Deposit ftiiu
and
Trust Co., Madison,
Ind., under
tl-in nhoi'ton nf tVio
the charter of the lottop hnnlr and
latter bank onrf

In<L> effective Aug. 2.

,

*

of

of

and

Jr.

Shi-

Bank

17/

be

Since

Branch

of

Corn

To

bo°k value

ab0ut $115 million and
the

sue 0f B 0£ ^ stock
25 years ago
the total assets had risen
by some

by First
Mansfield, Ohio,

National

Bank

Bank.

stock

registered
The

IlGW
new

America, its

s^ze>

those

the

prjate at this time, having
regard
f0 ^e continued
growth of our
business in all departments." He

Aug. 2.

President,
who has been in
banking for 36
years, resigned recently as President of the
Long Island Trust Co.,
Garden. City, N. Y., to join the

Walter W. Friend

Co.,

of

$135 000 00(1

issue

the

Bank

each share of Corn

largest private bank

pointed out that since the last is-

absorbed

was

Bank,

the

ii:

an-

iu
Ohio.

Toledo,

under

si:

tal

President,

jn

acquainting shareholders
wjth the new
financing, Mr. Ball
the

acquire

two

give

M

Bank of

In

said

to

merger Chemical

profit's' Such'totaT'would ue'/

plrppf,

by

of

oring

as-

approximately $570 mil-

contingency'

$18,000,000 to a
$90,000,000, making an

of

week was the
announcement
that Chemical Bank
was endeav-

Governments,

country,

...

completion

nfT capital. This

development
banking field

York

?ssets in the Corn Exchange pic,National1 City ture.
the greatest Lf1^of capital funds U. S. Secuiity profits, principally
total

$72,000,000 in relapaid-up capital 01

its

New

J™1im51Ca,n
1

trainsferred

'its

from
to

the

last

...

f ^

highest figure in Canadian banking history.
■

„

Vv
effective

,fs, 5
Bank of

Shiloh

ah*r£,

when

will

<.

in

National City program
The sale of 2>500'000

ls 1,ts size*

its rest
account, which

account

total

Sept. 1, TTie
Commerce National Bank,
Toledo,
National

(for- Pec.t of .the

1954

'be increasedabvaMao'oO()00
totM o?$45%0000 and its

a

nounced that effective

the

Lafayette National

v

Na¬

Board, Colonel Carlin

to

iiad

.

financing

place the bank in
favorable position to consider
such propositions as
may develop.
^
The other major

against

°ne Particularly significant

Af the'bank

president

banlc

to

rest

McKees-

Pa.,

Knight,

$2;?0,

of

wouM

.

Milton

basis

a

four shares

g17()

*

loh,

tional Bank, Brooklyn, New
York,
has been announced
by Walter
Jeffreys Carlin, Chairman of the
Board of Directors. As Chairman
of the

.

Jeannctte,

on

e'ach

the

a

Ifncrea!|d tha q,llar'erly dividend
ho.'lv from 55 cents to -o0 cents or an
as

—A

—-—

existing stockholdthe end of
September,
the same time as the
financing

$2-40

of

amount

L

to

ot>

proposed
National
City

Whether such action is
actually
in prospect is of
course not known.

to 900 000

$36,000,000.

2.

National

President

lion

_,ts

"T"1

?a

M.

Board.

the

reserve

Officer

Aug. 17,

Adrain

Bnll

Upon

2 J? W1,1

n

currencv

brought it

port, Pa., has absorbed Glass
,'ltlRa' Ima
City

the

A^

.

business*

its

i/wuinvuu.

around

rate

$12,000,000

the
was

*

Peoples Union Bank,

—AuS-

a.

assigned

TVynoinc

Bestor!

$450,000

TT

.

position

and

support a fair
M^v,,..vA
additional business.

„

was announced, the National City change

toSubscribe

share for

affffrp^afp

two
°

Secretarv.

R

Jul3^

1928

Bank's office in the
Empire State
Building at 350 Fifth Avenue,
New York.
•;
ppr„v r

stock

to

came

Trust

December, 1941

appointed

j

capital stock from $350,by sale of new
effective Aug. 2.

to

m

long had the largest paid-up capital of any Canadian bank.

11

n3hef-Rja8:e[ield. increased
Ridgefield, N. J.,National ^ank,
000

i

petuate the traditional
position of
Bank of Montreal which
has

an¬

C.

vv„v,

With

could

otherwise

*

stock

new

on Aug. 17
First since
1929, this issue of stock will per-

elected

Trust

*

proposed

announced

charge of the trust division.

^

thp

and

*

held of record Aim16
do

5

Jersey dity

Vice-President

banking

the

and

Manufacturers

jcrscy

Aug.

was

common

his

with

Canadian

stock

Chairman of
Executive Board. Mr. Clifton

Trust

Horace

began

1916

^ow

ph

the
on

capital

additional

an

....

°n Tuesday' AuS- 10> the de_ However,
i tails of the National City Bank completed

shLetol^

one new

page 504.

Mr. Clifton succeeds
Paul
who
becomes

Flanigan, President.
career

announced

At

l!?' ri

of

earning assets

immediately.

duij period in the market for these
investments

subfect thould

n*

»aaiti™ii

*

that Charles E. Clifton

the

was

wan

*

<?

feredrights

30-year

the

on

"Chronicle,,"
'

aLthS

not

talk

mergers and enliven

of

attend

bank

City banks
interest in bank

—

Bank Stocks

—

last

news

York

new

shares, revive

analysis

of1 Garden capUa^

than

item

i

Canada

serve

given in the Aug.

was

*

It

Appointment
of
Theodore
F.
Romig as an Assistant Vice-Presiof

d

industrial

area

more

previous

cus¬

Administration Division.

dent

the

issue of the

Mcintosh was also
Assistant Secretary. He

an

in

offering

P.

member

a

growing

con-

New

on

stimulate

ers

nipw-

stone

Middle Atlantic and
Central States.
named

ine

has

*+^15 conferences otner
wiui
tne

epresentatives

be terminated,

history of the Long Island Trust
Company.

an

tomers in the

James

uutinns oi

to

plenty of

was

JOHNSON

„

to-

came

Haggerty was elected
Secretary. He is ac-

tive in work with the

to

issue

week

An-

careful

E.

financing were made
mittee members from eaeh
memoers trom eacn hank public- As had been rumored for
bank oK„„t
it
was
accord in Pi V
a creed
that
about a week, the plan involves
discussions on the
the offering of 2,500,000 shares of

valua-

is

He

Irving's

stock

and

•.

onnfWpnnp

City East indicates another
mile-

and Real Estate Division.

an

uiuijustu

and

Wilson, also elected

Irving in

and

There

Los

Committee

after

stitutinnVh!

capital

amounted

The
•

the

A.,

of

II.

This Week

Crocker

^with

N.

Bank

By

a

possi¬

hnsi*fnrImWnKL S^

$2,322,-

the

contingencies,
reserves

the

v

an

to

i

of the

Avenue in the
early fall to

work.

to

amount to over

addition

out-

...

art Ave. East
office at 839 Stewart

1945, he has had experience in a
number of phases of the Division's
D.

shares
—

gether with the
announcement of

*

uic

Edward

of

—

The additional

jjo«"
-

-

California

»

the

Bank

California,

eluded,

increases

$474,692.76.

an

"*

sion

in

funds,
tion>

Assistant Vice-President

an

j

now

590.

He joined the Ir-

Scott,

issue

number

-i *—.

bank

<

E.

the

their

plus, and undivided profits

Assistant

an

of

combining

of

geles.

additional

total

_j.—

was

fraction

oversubscriptions.

Vice—

Presidents and two Assistant Sec-

vision,

small

a

Bank and Insurance Stocks

San

authorized

explore the

First
Bank

York,

$5,-

•

*

of

Bankers

capitalizations

*-

At its
April, 1954 meeting the
Board of Directors of the
Crocker
First
National
Bank

branches

officers, etc.

from

»•"

consolidations

new

stock

000,000 to $6,000,000.

News About Banks
new

capital

2&

".)tr

.

common

also

undertaken

Laird, Bissell & Meeds
Members New York Stock
Exchange
Members American Stock
120

Exchange

BROADWAY, NEW

YORK

R, N. T.

Telephone: BArclay 7-8500.
Bell Teletype—NY
1-1248-49
.(L. A. Glbbs. Manager
Trading Dept.)
Specialists in Bank Stocks

-

The Commercial and
30

Financial Chronicle

^ Continued
from page
*

:

-

Overall business in August will

•

as

Industry

decreased 15,977

ing to the Association of American Railroads.
Loadings totaled 667,592 cars, a decrease

turn out to be about the same

as

114,056

orders from small manu¬
facturers and parts makers are keeping production from sagging
still lower. Some new business is being turned up by hard sell¬

by

Edged Lower the Past: Week
The amount of electric energy distributed by the electric light
power industry for the week ended Saturday, Aug. 14, 1954,
estimated at 8,996,000,000 kwh., according to the. Edison Elec¬

was

tric Institute.

efforts

\

;

decrease of 63,000,000 kwh.
but an increase of 482,0d0j000 kwh., or
the comparable 1953 week and l,369,000|g00. kwh. over

over

1952.

fef v.'

*

1

least

at

livered

considered

a

of

form

Output Last Week Affected by Shortened Work
Periods and Blacked-Out Operations Again "Registered

of material de¬

U. S. Auto

than was specified on the order. This is
price cutting, since the material was sup¬

higher

were

where specifications

instance

one

Lowest Volume of Year

actually received, "The Iron

posed to sell for more than the mill
Age" points out.

19

maternal

or

industry for the latest week, ended Aug. 13,
"Ward's Automotive Reports," assembled an
estimated 99,390 cars, compared with 105,421
(revised), in the
previous week.
The past week's production total of cars and
trucks amounted to 115,504 units, a moderate decline below last
week's output of 120,937 units, states "Ward's." y
As a result of shortened work periods and blocked-out opera¬
tions vehicle production was at the year's lowest five-day level

by

reported
week

as

a

without.

go

operations were
eight United States car and truck manufacturers
vehicle production hit the year's lowest five-day
periods

work

Shortened

last

steady for

holding

blacked-out

and

Reports"

Automotive

115,504

counted

cars

Last

States car

of

accounted for 1.6% of the weekly
count as only Packard and Hudson were in operation; General
Motors garnered 58.6%, Chrysler Corp. 7.5%
and Ford Motor
Co. 32.3%.
Thus far in 1954 their respective shares of produc¬
The

tion

Independent

group

and 31.2%.

4.1%, 52.2%, 12.5%

are

Last week's truck erecting showed

approxi¬
mately 16,114 jobs were built, compared to 15,516 the previous
week.
Minor gains were posted by most truck builders, hut an
18% boost at Chevrolet helped offset Studebaker's shutdown.
Cumulative

United

counts

States

in

date

to

as

1954

show

Business Failures Rose

ended

week
to

&

Dun

week.

Steel Output Sheds 1.9

long time to come, says "Steel,"
metalworking, the current week.

the weekly magazine

a

casualties

authorities

say.
Even if
backlog it will represent
rates of

of

a

$75,000,000,000 back¬
construction industry

creasing

every

year

postwar

years

move

This

into

school

A

school.

projects

year,

dollar volume.

are

Highway awards also

are

expected to be

up

dozen

old on the average, is wearing out rapidly
under the heavy traffic.
Out of every dollar spent in highway
years

construction nearly 9c goes for steel.
A decline in Federal public works
the

projects has offset some

in construction, but total dollars spent throughout
the nation this year are expected to approach, and maybe equal,
record

high set by construction last year, declares this trade

paper.

The

American

and

Iron

Steel

Institute

announced

that the

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 62.1% of
capacity

for

the

week

beginning

Aug.

16,

equivalent to
against 1,525,000

1954,

1,481,000 tons of ingots and steel for castings,

as

tons and

64.0% (actual) a week ago.
The industry's ingot production rate for the weeks in 1954 is
based

on

For the

duction

annual

like

capacity of 124,330,410 tons

week

1,557,000 tons.

a

A

month ago the rate
year

was placed at 2,162,000 tons
comparable because capacity

percentage figures for last
117,547,470 tons

as




ago

or

year

of Jan. 1, 1954.

65.3% and pro¬
the actual weekly production

95.9%.

was

as

was

The operating rate is not

lower than capacity in 1954.
are

of Jan, 1, 1953.

based

on

annual

The

capacity of

for

rec

apparel

household items

in the period ended
Wednesday of last week The

on

°/ the
<?leS fel1 slightly

of

preceding

below

week

and

the comparable

1953 period.
total dollar volume of retail
in

the

week

below to 1 %

above that of

Regional

from

trade

was

estimated bv
Bradstreet, Inc., to be 3%

&

ago.

The

the

a

estimates

comparable

year

varied

1953

levels

the

by

following - percentagesEngland and East —5 to
l*

New

Midwest —4 to 0; Northwest
and
Pacific Coast —2 to
—1

to

+3,

+2; South
Southwest 0 to

and

The

jubilance of apparel

facturers

last

long-term
dimmed

week

prospects

by

manu¬

their

over

not

was

wprries for the

some

immediate future.
A

furor

precipitated

was

by

re¬

Paris fashion showings

feminine silhou¬

new

a

"new

the

introduction

look"

seven

have

women

ment

of

have

been

of

years

the
ago,

a

wide assort¬

and

while there

worn

styles,

few

basic

below the prewar toll of 252 in

The

apparel industry has suffered

.

"

fashion

innovations,
changes have occurred.

therefrom, and

boost to business

a

Liabilities in excess of $100,000 were involved in 14 of the
week's failures, as against 16 last week.

changes

Food Price Index Holds

Wholesale

street

touching

wholesale

food

and

steers

raisins,

hogs.

Declines

in

appeared

rye,

oats, sugar, coffee, cottonseed oil, cocoa, rice and currants.
The index represents the sum total of the pri^e per pound of
31 raw foodstuffs and meats in general use and ifS*fehief function

introduced
greatly im¬
depressed sectors of tne ap¬
designers

prove

which

general trend of food prices at the ?-\v7i(Jlesale level-.

Commodity Price Index Boosted the Past Week

industry;
they
featured
for. fur and drastically

Fur,

coats

tions

certain

foodstuffs.

other
a

week

Grain markets

by

a

and

272^S*

'to

rose

with

compared

on

Aug.

280.44

10,
the

on

year ago.
unsettled and continued to be dominated

were

developments.

weather

index

The

earlier,

Wheat

advanced

qufte^sharply, in¬

Spring wheat&'crop due to
stem rust damage during July and the wide
spreadbetween cur¬

fluenced

by poorer prospects for the
values

market

rent

and

the

government

pricq|'

loan

A private forecast placed the

bushels,

substantial

a

230,000,000
Corn

drop

Spring wheat yield |t 204,000,000
from the official July estimate of

bushels.

and

)'•$

soybean futures showed strength

of the period but were under considerbale

ing cooler weather and rains
Oats

and

rye

were

over many

also under

pressure

at|t|e

beginning

pressure later follow¬

sections
and

cff the

declirfe# moderately

trading in grain and soybean futures
on
the Chicago Board of Trade averaged
52,000,000 bushels per'
day, against 55,000,000 the previous week, and 40^000,000 a year

not

are

American

thing

while

Coffee

thej market

prices

moved

was

have

in

a

narrow

range

and'showed

the

securities

markets.

Demand

was

for

prompted by weakness
lard

improved

and

in

prices

advanced

moderately. Hog values scored further gains, particu¬
larly in the latter part of the week, when market receipts fell to
the

lowest

levels since Spring.

After trending upward most of the
turned sharply downward at the close.
The

decline

week, spot cotton prices

Summer.

or

sales

store

Federal

dex

from

Board's in¬

ended Aug.

J,

the

change from,

no

preceding week. In
previous week July 31, 1954,
the

of

increase

an

Reserve

week

showed

1954
level

the

the

for

a

on

country-wide basis as taken

1%

of

was

that of the similar

from

1953,

reported
week in

the four weeks

For

ended

increase of 2%
was
For the period Jan.
1 to Aug. 7, 1954, department store
sales registered a decrease of J a»
below
the
corresponding period
Aug.

7, 1954,
reported.

an

1953.

of

Retail

volume

trade

promotions

strong

5%

and coo

like

the

above

ago.

New

to show a

weather managed
of

for

week aided oy

York City the past

week a

i

According

the

Federal He-

index

departme

to

Board's
sales in

New York

of

the

12,680,000

City

period ended Aug. j
1954, registered an increase ot /0
above the like period of last; y
•
In the preceding week, July
»
1954 a decrease of 3% was
,

the

weeklv

ported

of the sun

that

from

1953, while for the i
weeks ended Aug. 7, 1954, art
week

crease

in

of

1%

was

the period Jan.

mainly influenced by thB issuance
August report of the Census Bureau indicating a crop of
was

their out¬
probaoly oy

replace

wardrobes,

Spring

store

little

Some liQuidation developed in late
dealings
that the Brazilian Finance Minister had re¬

a report
signed, while some trade selling

or

to

.

change for the week.

following

will do the rest,
later, most women

Department

serve

advancing.

Normal

and different.

sooner

the

of

will want some¬

pro¬
con¬

Criti¬

processes

will

year

cessions

i

sufficient number

a

women

new

social

ago.

Bookings of Spring wheat bakery flours reached sizable
portions at mid-week when mills accorded substantial price

fashions,

new

heard that the styles
flattering to the female

figure, but

dry area.

The volume of

promo¬

cism may be

general

271.37

extensive

plan
the

of

and

manufacturers

American
retailers

next

commodity ptice level, as measured by the
daily wholesale commodity prilerlndex, turned
upward last week, aided by higher prices for ^tae' grains and

have been

suits

and

hard hit in the past few years.

moded

By Higher Grain and Foodstuff Prices

from

can

uses

and

Wholesale

usually mod¬

altered the cut of coats and suits.

changed at the previous level of $7.10.
This marks a drop of
4.8% from the year's high of $7.46 recorded on May 25, but it is
still 7.1% above the $6.63 of a year ago.
eggs,

Paris

many

six-month low last week, the Dun & Bradprice index for Aug. 10,^remained un¬

a

American producers

parel

Steady at

$7.10 Level of Week Ago

for the week.

gains

more

personal serv

year ago
Despite this

ago.

14%

system, built to carry 35,000,000 autos, is
handling about 53,000,000, and because the surface of the roads,
a

and

for

ify the styles, they draw heavily
from European sources.
Recently

the present road

cause

and less

comparable week of 1953. Most of the week's increases
in small casualties, those with liabilitief'-'under $5,000,
which climbed to 48 from 23 in the previous weekend 18 a year

a

this year, largely because of toll road and turnpike projects. The
highway building program is expected to continue growing be¬

now

tharB*a

heavier

in 1952 when there were 141.

the

corresponding date
to

large extent responsible
for a 4% rise in non-residential public building construction.
Commercial building for this year is expected to reach a new
high of more than $1,000,000,000, up 15% from last year, it adds.
Bridge construction, this trade weekly states, is up 14% in

the

considerably

were

centered

The

children from the heavy birthrate of the

as

ices

Dun & Bradstreet

deficiency of 340,000
classrooms in this country is reported, and the deficiency is in¬
schoolrooms.

Mid-Summer

Latest Week

Consumers spent

has been widely needed. Although

185

five-year building program at present

are

Hits
in

S
u

-

involving liabilities of $5,000 or more edged up to
from 184 last week but exceeded sharply the 132 of this size

there are no further additions to this
a

construction, continues this trade publication.

Among the needs

of

in the

Failures

is to show the

Not only is that industry booming but
of needed construction is piling up,

now

233

Aug. 12, from 207 in the preceding week, according
Bradstreet, Inc.
Reaching the highest,, level in 12

upturn, mortality remained 8%
the similar week of 1939.

lard,

Points This Week

Volume

Doidiums

comn™

earli"

-

Trade

-J
in

ette—a radical style change.

Higher in wholesale cost last week were flour, wheat, corn,

Look to the construction industry as a good source of business

frtRfin67'800 3 ago.
Week
a year

featuring

Sharply in Retail Trade

industrial failures increased to

and

150 occurred or

when

After

production for the week followed the United States
pattern as cars showed a slight drop and trucks recorded a
minor rise.
Approximately 2,430 cars and 470 trucks rolled off
assembly lines during Aug. 9-14, against 2,937 and 294 the prior

Aug. 5,

63,800

Since

Commericial

i

parable 1953 marks of 4,096,382 and 793,415 units.

'

in the comparable

The Last Week

approximately 3,604,756 cars and 667,257 trucks have been pro¬
The tallies are 12% and 16%, respectively, under com¬

log

and 294 trucks in the

cars

that

Canadian

markets

bales t

the week ended

cently

duced.

for

2,430 cars and

week.

1953

in

3.9% bulge

a

against 2,937

preceding week and 2,152 cars and 260 trucks

weeks,

dip below the 100,000 mark.

1954 to

as

week,

last

trucks

470

week at Studebaker,

setbacks, it states, held the week's United

These

reported there were 16,114 trucks
against 15,516 (revised) in the previous
like 1953 week.

agency

"Ward's" estimated Canadian plants turned out

than a week earlier. The trade
publication noted that the Aug. 9-14 tally should fall some 35%
under the same 1953 period (154,114) and a full 22% below the
1954 high of 148,645 vehicles reached in the week ending May 22.

output to approximately 99,390 units—the first five-day total

the

week,

week and 25,168 in the

trucks, or 5.5% fewer completions

Car and truck lines were down the past

according to

made in this country,

and

Willys, Kaiser, Federal and Nash factories. Hudson and DeSoto,
meanwhile, put in only four days and Plymouth was idle Tuesday
and Wednesday for inventory.
'

spot

last week.

level.
"Ward's

in

com^Z

Produced

creased with sales in
the ten
kets reported at
83,900

Dun

The automobile

1954,

week, steelmaking scrap prices
are moving upward again.
Increases this week raised "The Iron
Age" Steel Scrap Composite Price 84c a ton to $28.67 per gross
ton.
Chief strength is now in eastern markets where higher
export prices are forcing domestic consumers to pay more for
After

Activity

that

noted.
been

16'465'000 'Jales

1953.

reation, travel, and

figure represents a

like week in

the

*

.

the preceding week

5.7%

several auto companies to breach the price line have been
So far they have not been successful. However, there has

-

current

The
from

prices are generally considered firm,

While steel base

and

they had

efforts of steel salesmen who are visiting plants
never called on before, declares this trade magazine.
ing

cars

Electric Output

"The Iron Age."
paradox that while national atten¬

has been predicted, reports

Still, it is something of a
is focused on the auto industry

tion

of 117,757 cars or
the corresponding 1953 week, and a^. decrease of
or 14.6% below the corresponding week in 1952.

below

15%

increase in miscellaneous

ing,

7, 1954,
accord¬

for the week ended Aug.
2.3% below the preceding week,

cars or

had expected and

trade

Loadings of revenue freight

orders from small users. Eventually,
automotive orders will undoubtedly pace an upturn in steel buy¬

I

Thursday, August

.

Week

In the Latest

.

automotive steel orders is offset by

A sharp decline in

July.

an

Register Broader Declines

Calr Loadings

4

.

The State oi Tiade and

^

.

.

(706)

no

change

was

reported..

7,
'
registered tiv

1 to Aug.

to.
Number 5352

180

rolume

.

.

The Commercial and
Financial Chronicle

.

pan the

(707)

31

Wared

fueed
ets
en

in

Indications of Current
Business Activity

in.

mar¬

bles in

•mpared
!er

and

Equivalent to—
ingots and castings

(net tons)

summer
teek

week

Aug

_

2■>

Aug. 22

___

*1,525,000

PETROLEUM INSTITUTE:

AMERICAN

on

al sprv-

Ifor recd

The

Residual

ASSOCIATION OF

by

Steel

1,557,000

Revenue

freight loaded
freight received

l°

ENGINEERING

CIVIL

2,162,000

S.

U.

Total

construction—

158,402,000
31,368,000
100,439,000
54,651,000

32,539,000

Aug

105,077,000
55,238,000

7,063,000
2,034,000
9,664,000

8,576,000

163,712,000
29,078,000

141,479,000

90,719,000

106,460,000

31,220,000

52,330,000

(U.

DEPARTMENT
'

*

STORE

569,562

568,153

478,396

650,623

$368,623,000
241,014,000
127,609,000
105,469,000
22,140,000

$431,055,000
254,577,000
176,478,000

=

$311,332,000

112,844,000

116,636,000

63,634,000

27,003,000

7,500,000

5,340.000

9,359,000

511,000

347,000

552,000

77

92

Electric

(in

output

133,893,000

BRADSTREET,
IRON AGE

Aug.
Aug.

7

7

Aug.

DUN

—

steel

Pig iron

(per gross

Aug. 12

the
ago,

Export
Straits

there

•

Lead

:urred,

U.

isiness

(St.

S.

Aaa

M.

J.

__,

——,

1

and

York)

•

All

472,000

"

92

87

8,996,000

9,059,000

8,514,000

233

207

226

150

4.801c

4.801c
$56.59

$56.76

$27.83

$26.58

etc.

29.700c

29.700c

of

July

29.550c

28.850c

95.625c

96.500c

14.000c

14.000c

14.000c

13.800c

14.000c

13.800c

13.800c

13.800c

11.000c

11.000c

11.000c

11.000c

Railroad

iduced

Public

(in

Group
Group

MOODY'S

BOND

.

YIELD

DAILY

Industrial

—

100.34

100.71

93.08

110.52

110.34

104.14

115.82

98.41

109.24

109.24

108.88

102.30

110.88

110.70

111.81

,

111.62

111.44

106.56

2.87

2.89

3.23

3.03

3.04

3.38

NATIONAL

PAPERBOARD
Orders received (tons)

Production

of

of

Unfilled

3.17
3.50

3.85

3.21

3.23

3.61

Oven

3.11

3.12

'3.13

3.54

Beehive

3.08

3.09

3.36

424.4

429^1

432.3

421.2

277.574

256.223

180.775

346.228

126,542

(tons)

end

at

of period

98

7

245,341

237,843

7

91

90

-Aug.

r

7

416,806

390,265

417,331

608,519

-Aug. 13

106.85

107.03

106.80

106.05

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

AVERAGE

100

=

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

DEALERS

EXCHANGE

AND

SPECIALISTS

SECURITIES

—

Odd-lot sales by

dealers

ON

EXCHANGE

Y.

N.

STOCK

1,162,832

1,160,703

1,038,593

626,405

July 31

$52,515,998

$53,097,672

$51,125,583

$28,221,869

July 31

1,150,209

1,156,234

1,014,840

547,472

July 31

,

8,633

3,700

Odd-lot purchases by dealers (customers' sales)—
Number of shares—Total sales

Customers'

short

Customers'

other

Dollar

sales

_______

!

sales

of

shares—Total

1,141,576

1,147,534

1,005,800

542,894

$48,237,271

$49,334,769

$45,735,376

348,260

358,590

314,280

178,530

sales

-July 31

—.—

.

348,260

358,590

314~280

178~530

—July 31

—

367,620

358,150

329,250

253,700

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR

ACCOUNT

MEMBERS

OF

(SHARES):

Total Round-lot sales—

Short sales
Other sales

!—July 24
;—-—July 24
July 24

—_____!
___

—

—

Total sales

ROUND-LOT

—

TRANSACTIONS

ACCOUNT

FOR

485,520

499,180

496,990

189,020

12,927,560

12,922,800

10,323,190

4,373,610

13,413,080

13,421,980

10,820,180

4,562,630

MEM¬

OF

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registeredTotal

purchases
Short sales
Other

;

I__
I

.

Other

sales

1 Re-

transactions

initiated

f°J

year,

Other

31,

LABOR

—

Farm

products___

Processed
Meats
All

of

foods;

of

orders




2,000

S.

73,755
107,095

As

of

(tons

S.

of

97,436

2,000 pounds)
of

CROP

—

(in

i

77,100

389.386

345.860

thousands):
2,824,078

Sorghum grain (bushels)
(bales)

Cotton

1,168,536
877,511

229,881

291,025

18,654

211,227

12,967
278,058

1,529,283

1,544,674

1,216,416

372,648

372,519

241,015

23,293

23,102

17,998

46,244
61,360

bags)

3,176,615

758,440

189,201

spring (bushels)
Durum (bushels)
Other spring (bushels)
Oats (bushels)
Barley (bushels)
Rye (bushels)
Flaxseed (bushels)

988,321

12,436

All

3,311,493

775,900

—

—

977,537

201,637

(bushels)

lb.

104,481

69,181

REPORTING

(bushels)

(100

106,252

period (tons

(bushels)

all

122,036

DEPT. OF AGRICULTURE—

August

all

88,063

112,121

fabricators—

PRODUCTION

Wheat,

•85,329

A.—

pounds)

2,000 pounds)

BOARD U.

$429,000

July:

COTTON GINNING (DEPT. OF
COMMERCE)—
To Aug. 1
(running bales)

50,359

36,813

60,159

52,529
109,022

135,726
!

;

12,680

Hay, all (tons)
Hay, wild (tons)
Hay, alfalfa (tons)

16,465

—

101,216

107,494

105,300

—

10,812

11,752

12,216

45,955
26,131

48,336

44,374

27,232

29,851

—

Hay, clover and timothy (tons)
Hay, lespedeza (tons)
Beans, dry edible (100 lb. bags)
Peas, dry field (100-lb, bags)

3,915
19,337

5,079

4,129

18,690

18,114

3,909

3,798

3,350

454,260

404,010

303,340

78,280

413,340

326,640

93,880

30,939
2,105,021

33,974

476,380

Sweetpotatoes (bushels)
Tobacco (pounds) —;
Sugarcane for sugar and seed
Sugar beets (tons)

32,669

July 24

2,021,923

2,057,221

6,844

6,706

7,661

13,019

12,084

-

-

-

.July 24
July 24

400,602

477,890

339,425

47,220

77,570

102,810

54,300

476,200

532,355

404,080

218,478

523,420

609.925

506,890

272,778

Jujyzz

2,370.532

2,221,130

1,797,855

710,875

191,395

—

U.

n*

.

DEPT.

359,920

371,870

352,950

131,160

2.192,070

2,060,215

1,596,010

682,418

2,551,990

2,432,085

1,948,960

813,578

—

—

foods

since

beans

(12

Apricots
Pecans

(3

24

-2-ug- J-J:

*ug'}°
Aug. 10

introduction of

*110.1

110.2

110.5

95.6

*95.3

95.9

96.3

105.2

88.6
114.3

*104.8
|

105.6

87.2

94.3

93.1

*114.4

114.2

—

States) (tons)
States) (tens)

as

30

43,475

41,803

101,999

92,877

62,721

29,151

28,831

64,473
29,081

2,702

2,696

192

187

160

167

1130,628

224

243

211,660

,

INSTITUTE:

sales

May

from

104.8

124,330,410 tons

r.

to

ultimate

(000's

consumers—

omitted)—

Number

of

ultimate

ultimate

customers—month

customers

INTERSTATE COMMERCE

Index

July

of

Railway

(1953-39

32,482,546

at

May

32,885,050

31,165,244

379,131,000

Revenue

114.8

§Based on new annual capacity of

Monthly Investment Plan.

of

i

2,652

—

ELECTRIC

Month

-

43,362
101,521

(bushels)

(pounds)

Kilowatt-hour

110.2

w--

262,341
1,588,415
373,711

62,103

crop

(tons)

Cherries

^tn-tn-rrrirn

13,195
—-—

(bushels)

(bushels)

Grapes

(tpns)——_

(tons)

Hops (pounds)
Apples, commercial
Peaches

(bushels)

OF

-?ug'
farm and

for

Broomcorn

Pears

—

S.

Soybeans

EDISON

reported

U.

of

Lr————..—-?—---July24

"?ug-

not

month

2,000 pounds)—_1
of

$656,000

YORK—

345,622

♦Revised figure. ^Includes 673.000 barrels of foreign crude runs
Jan. l, 1954, as against the Jan. 1, 1953 basis of 117,547,470 tons.
tNumber

to

in

NEW

344,581

100):

than

of

(tons

2,129,468

303,577
1,267,950

;

other

(tons

3,011,996

15,600

_

commodities

production

Refined

OF

omitted)

INSTITUTE—For

Copper

504,100

2,973,037

OUTSTANDING—FED¬

BANK

(000's

31

6,658,600
6,154,500

68,921

PAPER

July

(net tons)

*29,857

$749,000

stock at end of month

*4,802.245

*4,772,388

31,105

tons)

23,300

_

_

4,639,979

4,608,874

tons)

9,330

'^ujv ^

—

tons)

(net

22,120

Ju^ 24
(1947-49

10

(bushels)

sales

commodities—

77

15

(pounds)

Commodity Group—
All

20

15

Peanuts

—-—

SERIES

77

20
67

Potatoes

tU,

NEW

86

69

81,120

*

PRICES,

90
22

—

service enterprisesdevelopment

446,920

Total sales

WHOLESALE

382

326,720

—.—•——

———

385

1,115,430

Total round-lot transactions for account of members—
purchases
Short sales

415

28

371,130

July 24
July 24

Total

122

1,408,820

July 24

Total sales

l<

81

456,350

__

_

45

90

July 24
July 24

•———~-

the floor—

off

:

57

385,660

—

Short sales ——1
Other sales

65

888,590

—

,■

34

1,123,850

—

,■

147

34

1,261,610
1,552,190

-I—,

—.

Total purchases

tment

438,360

153

175

61,260

July 24
July 24

-

Total sales

1,131,710

the floor—

.

Short sales

Other

1,372,110

373

133

226,840

_—

on

1.513,580

399

284,970

—

I

COPPER

Rice

46

1290,580

!

Other transactions initiated
Total purchases
_
♦

——July 24

-—

sales

Total sales

,

of

Winter

dealers—

Number of shares—

As

Corn,

sales—

July 31

Round-lot purchases by

coke

$21,535,810

Short sales
Other

4,578

July 31
.—July 31

—

Round-lot sales by dealers—
Number

9,040

July 31

value

(net

COMMERCIAL

CROP

13

1,107

29

177

»-

11

1,082

26
409

——

:

Refined copper stocks at end

July 31

Dollar \alue

Oven

of

55
314

public

coke^ (net

In U. S. A.

COMMISSION:

39

54

309

public

coke

Deliveries

(customers' purchases)—

Number of shares

oy

Production

Crude

!

182
408

35

261,943

46

Aug.

Aug.

30

1,136
—;

——'

and

ERAL RESERVE

7

27

(BUREAU OF MINES)—Month of
June:

3.16
3.49

Aug.

-

activity

orders

COKE

other

3.14

ASSOCIATION:

(tons)

Percentage

All

3.21

Aug. 17

INDEX

28
34

55

_____

Miscellaneous

Aug. 17

COMMODITY

15

29

12

water

Conservation

3.49

3.07

36

157

——*

Aug. 17

Aug. 17

40

47
20

398

and institutional
nonresidential building
Military facilities
Highways

Aug. 17

Group
Group

46

51

36

Other

Aug. 17

Utilities

60

410

Hospital

103.47

3.55

148

133

Educational

111.07

105

175

164

—

Industrial

103.30

3.02

L

165

76
112

319

building
Nonresidential building

106.21

2.86

,__

188

81

—

—

private

104.14

Aug. 17

I

170

112

35

i.—

construction

109.97

Aug. 17

MOODY'S

other

Public

112.37

2.99

—

164

51

Residential

104.31

3.50

.

489

21

—.,

utilities

112.56

3.15

Public

public

110.15

2.43

Group

24

527

187

—

104.31

2.47

A

29

122

Miscellaneous

110.52

3.14

___.

990

114

buildings-

garages

Farm construction
Public utilities

112.75

2.47

Industrials

loft

building

recreational

108.88

3.13

:

and

115.24

Aug. 17

Railroad

and

nonresidential

115.63

Aug. 17

Baa

office

restaurants, and

Religious
Educational

Other

Average

,

Stores,
Other

Telephone and telegraph

U. S. Government Bonds__

Aa

1,126

1,040

113

—

____

Sewer*'and

corporate

$3,325
2,218

1,183

—

AVERAGES:

Aaa

2,276

203

—

—:.

Nonhousekeeping

Aug. 17

Utilities

$3,358

2,377

29

—

building (nonfarm)
dwelling units

Aug. 17
Aug. 17

,

116,375

DEPT. OF

millions):

Residential

Railroad

100.31

Aug. 17

Group

Industrials

78.500c

110.70

Aug. 17

cently

484,384
318,845

112,716

554

S.

new
construction
Private construction
—

29.700c

29.675c

93.250c

Aug. 17

^

______!

$919,605

531,990
305,242

1,095

:

—

Hospital and institutional

29.400c

Aug. 17

A

ap-

29.700c

Aug. 17

Baa

im-

$27.83

Aug. 17

;

•

$949,948

296,351

Total

All

corporate

$893,656
495,032

1,237

—-—

CONSTRUCTION—U.

LABOR—Month

$44.42

Aug. 11

Government Bonds

$434,959,000

$3,513

—

____

Additions, alterations,

4.634c

$56.59

DAILY AVERAGES:

—

$588,626,000

107,273

building construction

Warehouses,

4.801c

Aug. 11

PRICES

35,034,000

$589,357,000

S.

Nonresidential building (nonfarm)

Aug. 11
at

43,396,000

of May:

\

*

Additions and alterations

8,951,000

Aug. 11

at

39,990,000

45,581,000

164

omitt&d):

residential

Aug. 11

at

59,715,000

15,362,000

—

—

Louis)

80,970,000

$212,686,000
115,327,000
10,696,000
21,226,000

142,919,000

shipped between

countries

Social

at

$225,154,000
135,809,000
18,072,000
72,777,000
91,964,000

BUILDING CONSTRUCTION PERMIT
VALUA¬

QUOTATIONS):

Aa

mod-

eavily

re-

Dollar exchange
Based on goods stored

foreign

—

——

credits

non-resiedntial

$56.59

Aug. 10

at

$246,264,000

July 31:

-

BUILDING

7,400,000

Aug. 11

York)

Louis)

BOND

Average

hough

(New

(East St.

MOODY'S

iffered

&

refinery

tin

(New

Lead

Zinc

(E.

6,950,059

,

shipments
warehouse

New

Aug. 10

refinery at!

9,275,673

5,423,168

BANK

——

Domestic

copper—

Domestic

*7,363,634

OUT-

RESERVE

_

1

New

Aug. 10

ton)

6,635,000

5,887,488^

Commercial

(per.lb.)

PRICES

Electrolytic

,1

ations,

s

of

Ago

—

143,639,000

PRICES:

Scrap steel (per gross ton)__

assort-

y[

YORK—As

Year

Month

tons)—

ACCEPTANCES

167,693,000

&

"

METAL

Ug.

(net

—

FEDERAL

—

Domestic

New

INDUSTRIAL)

products

———i—

Finished

f

silhou-

af

NEW

(000's

'

INC

COMPOSITE

16,631,000

7

Aug. 14

AND

of

castings produced
July

—_—

RESERVE

kwh.)

000

(COMMERCIAL

for

Previous

Month

IN URBAN * ARE AS
OF THE*„U.
(U. S. DEPT. OF
LABOR)—Month

150,524,000

109

of that date:

are as

TION

$419,221,000

1

INDEX—FEDERAL

AVERAGE

either for the

are

INSTITUTE:

785,349

268,697,000

.__.

ELECTRIC INSTITUTE:

FAILURES

re-f;

SALES

SYSTEM—1947-49

EDISON

for the

ty

OF

Imports
Exports

Total

683,569

Aug. 12

S. BUREAU OF MINES):

of quotations,

cases

STEEL

steel

DOLLAR

STANDING

49,488,000

573,645

Aug. 12
;

AND

tons)—Month

BANKERS'

23,959,000

667,592

__Aug. 12

_

___

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)

|vas not

ae

156,808,000

Aug. 12

COAL OUTPUT

their

of

7,419,000

Aug. 12

Federal

t

'

■

Aug.

2,061,000
10,294,000

6,538,250

ENGINEERING

and municipal

State

manu-

"

CONSTRUCTION

construction

Public

'

owings

1,975,000

;
_Aug.
cars)_-Aug.

of

(no.

construction

Private

fest and
r
South L
|st 0 to jj

y

(number of cars)
from connections

IRON

ingots and

(net

NEWS-RECORD:

-i;

2d

7,121,000
23,762,000
2,422,000
9,253,000
8,117,000

9,619,000

Aug!

year

pntages:

i

I

;
___

6,827,000

23,326,000

7,485,000

~~Aug

at

Revenue

■

116,744,000

6,280,700

23,756,000

I__~~lAug
~I~Aug

at

6,254,950

AMERICAN RAILROADS:

"

P levels

2.

(bbls.)
(bbls.)

oil

fuel

AMERICAN

of
steel
Month of June

6,153,450

Aug'
~Aug

at_

oil

fuel

Distillate

varied

.

(bbls.)

Kerosene

be 3%
a

(bbls.)
(bbls.)

in

or,

Shipments
Aug
Aug

Ill

(bbls.)

that date,

Latest

95.9

of

]

Stocks at refineries, bulk terminals, in transit, in
pipe lines—
Finished and unfinished gasoline (bbls.) at

trade

ited

output

Residual fuel oil output

and

il

fuel oil

Distillate

,

....

below

d.

(bbls.
.

_

The

;ek

output—daily average

Crude runs to stills—daily average
Gasoline output (bbls.)
Kerosene output (bbls.) —:

.'■■■I

ended

k.
1

condensate

gallons each)

42

,

items

and

oil

Crude
V

Dates shown in first column

Ago

65.3

"

•

production and other figures for the

cover

Year

Ago

*64.0

1,431,000

month available.

Month

Week

§62.1

or

month ended

or

Previous

Week

Vi

following statistical tabulations

latest week

Latest

AMERICAN IRON AND STEEL INSTITUTE:
Indicated steel operations (percent of capacity)
Steel

The

$585,598,000

50,351,847

50,200,577

$547,618,000
48,936.156

103.4

103.8

118.9

of

31—

COMMISSION^—

Employment at middle of
average=100)

0
JM't

The Commercial and

Financial Chronicle

as the leading economists of this
a joking way but before I
Administration have been saying.
through, she gave me the
Employment for June increased
names of five of her friends who
by nearly a million persons, ab¬
were thinking about investing, and
she said that it would certainly be sorbing the graduates of schools

In

was

got

Securities Salesman's Corner
By JOHN

alright with her if I wrote them
a
letter and invited them to call

DUTTON

to

Can You Create

see

the

Opportunity?

anytime they were in

me

neighborhood.
it

mentioned

I

If

hadn't

lie

about

asked

was

..owns

man

and
Continued

-calling on."

and he

shop to have his hair cut
from

+5&s

invest

to

step farther than the first
^lesman" who
turned the lead
4>ack as N. G.
He reasoned that
if he could obtain a small order
he might secure

-quite

a

few prospects as a result.
had

He also knew that this barber

high type clientele, and he
by a number
-of substantial business and proSessional men who had long been

the

tomers

act

do

report they are

by having their cus¬
rate them.
They say they
upon

try to remove the source of
criticism, with good results. They

is very important
to any retailer—that the salespeopie take much more seriously the
written
criticism of the public
this

than they do the oral remarks of
their immediate superiors.
The

also well liked

the annual rate

decided turn for the bet¬

So,

you

heat

higher, in

many

year's record.
So, there is nothing really
wrong with the general level of
income and prosperity.
Once that level is taken as the
point we find two figures
which are highly important to a
datum

luxury trade, like retail
One

see,

personal income—that
is, the income people have left
after paying taxes.

goine

g

*
rivals

your

and

the-

—

light—are not going to
the

only real rival

you

have in the luxury market is
the
automobile.
Automobiles
have
tended to soak up a huge amount
of disposable income and discre¬

tionary
there

spending

country

has

market

even

need

dollars.

indications

are

reached

point

price

disposable

only

of

reference

ury."

Well, there is going to be more
left, after taxes this year
and next year than any year in
the last several;
This is because

this!

buyers'

a

automobiles.

on

to

the

I

intense
the low

field.

car

Some

But

that

jewelry. rivalry being exhibited in

figure representing

the

is

of

stage any upsurge.
About

receipts are
cases, than last

store

Department

prospect

year.

prior claimants for the consumer
dollar, like food, housing, clothes

ter.

what

can

This is an example

to climb!
a

do for

criticism

little honest

merchants, even when

the fault is really on a

community

level.

you

to

resent

may

jewelry

Jewelry is

cessity, in

an

some cases,

my

a "lux¬
absolute ne¬

as

that I know.

taxes have

just been reduced, both

business

for

and

for

individuals.

Rate of Family Formation

Probably the biggest single trig¬
to the general economy is therate of family formation.
How

act passed

by Congress
sets the capstone upon a series of
reductions totaling $7,400,000,000
since last January. As an incident

The

new

ger

far

the

way

Business

Small

Administration comes into the
Customer Evaluation Program is
that we are a national sponsor,
cultivating area sponsors like state
chambers of commerce, which, in
turn, cooperate with local chambers of commerce, to put on the

Why, it isn't

reduction, your own busi¬
the weight of taxes
somewhat less heavily—both from

project.

We

will

soon

Or

is

This

rings

accord

with

even

modern

fully

as

So, in

legal without

miss

regards her
important as the-

as

a sense, you

basic

to

Please

Presi¬

speaking of

in the State of the Union
when he asked for a tax
law to "remove the more glaring

jewelers

my

apologies for

dealers in lux¬

uries!

pose,

are-

industry!

accept

dent Eisenhower's expressed pur¬

you as

•

The immediate future is bright

message,

This Program is ideal for ,a
community of 75,000 inhabitants

gel

preacher.
basic

in

formation

maybe, two rings!

The

excise tax from

to 10%.

20%

pamphlet out on the subject.

and salespeople out of their
complacency and the lax selling
habits of the wartime- and post-

of the

reduction

have a

critique serves to jolt both man-

of income tax and

the standpoint

family

ring!

a

feel

nesses

would

without you retail jewelers?

to that

The

the criticisms made

and

say—and

gan
of

Store managers

very

was

in

class

same

benefited

one

.dfrom this barber,

the

of

have

than $5 billion.
Sales of new and used cars are
a

real

no

money

community.

But he went

salesman was right.

3«st

stores

did have
the first

who

man

a

funds

limited

inquiry

the

since

that

^realized

been decreasing at

takirig

clothing, while steadv
is 13% down from last year

now,

with

of more

Emphasis ion Retailing!

More

this
He always went to this
knew

salesman

Another
ibarber.

from page 16

barber

textiles and

higher this

Manufacturers inventories

he wouldn't be worth

and

shop

The other day a

customers.

prospect.

no

small

a

vyiii

name

one

he's

"Oh,

said,

The

a

Thursday, August 19, 195^

.

erally, pushed downward by rec¬
ord housing starts.
The price of

colleges.

and

opportunity

the

small would have passed by. The time
was right.
be helpful in building a clientele client of mine who is very friend¬
I have sold presidents of great
it is that certain quality which ly said, "A friend of mine asked
companies, doctors, lawyers, den¬
me about a certain stock and she
-some
men
^oSSess that enables
them to fjrn an ordinary set of named it..
What do you think?" tists, housewives, school teachers,
Then I business executives, college pro¬
ci!>^histances to their advantage, I told her my opinion.
friends,
acquaintances,
"How about sending this fessors,
'•this takes creative imagination said,
friend in to me the next time she and people I have never known
and some thinking ahead.
has a question about stocks? Don't before in my life. You don't know
Here's
an
example — I once
where you are going to find busi¬
knew
of a salesman who took you think it's about time you sent
me
a
few
customers?"
She ness; but you have to be on the
«ome ordinary prospect cards and
and said, "Why that's lookout for it, morning, noon and
«nade the round of calls. He came laughed,
I never night. It is all around us—but
-fcack to the office and turned in right, I ought to do that.
the man who doesn't look won't
about 90% of the names as worth¬ thought you needed any, that's
All of this find it.
less.
In going over the list he why I didn't do it!"
is one ability that

If there

.

.

.

(708)

S2

for the general economy.

And if the immediate future is
particularly
on
small tax-payers; reduce restraints bright, the middle future of the
getting their hair cuts from him
next five to ten years is positively
for many years.
So he made a
j 0r under.
Soon it is to be given on the growth of small business;
and make other changes that will brilliant!
«ail on the barber.
As a result war periods.
It was said by more a trial in a city of just under half
When you consider that changes
encourage
initiative,
enterprise
"tie obtained
a
small order for than one manager that their a million.
are
going on, with greater speed
some
stock in a local company
and production "
younger employees—whose busi¬
It might have some meaning for
than ever before, in our whole
ihat was held in high regard in ness life goes back no further than
According to preliminary gov¬
you.
It might help you chart
the community. There was a divi- the Second World War—had little
ernment estimates, disposable per¬ physical and economic set-up, and
some of the unknown recesses of
that these changes will inevitably
-dend or two and the stock had a concept of what it meant to sell,
sonal income declined somewhat
your customers' minds, telling you
translate themselves into needs of
agers

He kept his

rise in market value.

with

the

was

leading

concerning
barber had

bankers

the

stock

same

town's

the

of

one

commercial

then

stock.

same

r o u

g

h

the

schools
survey

bank

for

some

Before he got

3,000
nice profit to his

traded

he

ballot

the

box

ap¬

proach is supplemented by teams
of trained students from collegiate
of

of

who

business,
a

run

in person, and

elicit, much wider responses
the ballot-box
A
A

a

rflW
Case

May I tell you a story of what
happened in one small town in
the Mid-West where such a team

over

turned loose. The stores of
iirm ^and" himself ^ Besides^- he that town, almost without excep*»ew has
several substantial'new J*01}' had suffered a falling off in
■customers.
The first man only
their 6eneral annual receipts. Yet
saw a small possibility of the one
there ™as no drou8ht, n0 factory
Shares at

a

««,

vv-x
very

xxxo

1U1U

resistance

than to

fight

against

ignorant and in the dark.
In
case
of getting the straight
information on your business and
the

may

customers rate it, you
find that knowledge' is —

your

was

good reason

diamonds,

inequities,

.

in the second

quarter of 1954, as

titanic order, one

against the first quarter, but re¬
mained close to its all-time peak.
For those who choose to measure

a

everything by 1953, it should be
pointed out that disnosable per¬

births

4,O0Q,000

sonal income for the first and sec¬

corded.

of 1954, exceeded
personal income of
first and second quarters of
quarters

ond

act with

watches,

silverware,

karat-gold jewelry and filled nov-

babies

elty jewelry, but reliability. You
are people who are reliable—and
trustworthy.

Trust and confidence have a
certain capitalized value. People
are willing to pay a bit more, to
feej better in their own minds that
they are getting a fair money's

vide

-

come

with

needs

tax reductions

lation

the

new

1953

— the highest
ever re¬
Every day nearly 11,000
born.
The net increase

are

Our economy

7,000

personal in¬
picture* continues
bright,
yet more sunshine over the

hill when

only re¬

population.
Total
were
just under

our

in

think!

So, the disposable

can

and wonder.

Just

population is 7,000 a day.

of

the

1953.

awe

Take

the disposable

1

Your stock in trade is not only

Pnint
o

in
in

sales

It is easier to remove

it,

than profits.

system.

of

areas
are.

irritant

an

They inter- h0w

town.

view the customers,

the

same

customers

became

-of the
tli

of

officers

mother

of

Several

banker.

the

what

there

completed

eventually

he

which

meaning of the

pre-war

Sometimes

bought. He did so and obtained an
-order for several hundred shares
for

the

term.

surprised to get
a telephone call from him telling
liim that he should get in touch
he

One day

in

posted.

barber friend

tax

has to pro¬

of the ordinary
day than it did the

more

every

day before, on a

progressive basis.

Each month we add to our popu¬
more

than

the people liv¬

of Omaha,
Each year
we are adding the populations of
a Los Angeles plus a New Orleans
trades, is the figures for discre¬
tionary spending — the dollars with all their wants and needs.
By 1960, our population will beabove the bare necessity level.

go

into effect.

important figure,
from the standpoint of the luxury
The

second

ing in a city the size
Nebr., or Toledo, Ohio.

by dealing with a repuSome wag has said that people close to 180,000,000.
established merchant—but
first have to pay taxes and then
The second big change is that
The store-owners in this town there are limits beyond which this
was a
good man to have on
they have to live.
The living we have more new families. Over
had racked their brains and capitalized value should not be
bis team.
which
embraces
discretionary half the couples living together
As jewelers it might
Finally stretched.
There are always methods .of couldn't find the answer.
spending is for such things as food, today were married within the
creating business that can be used they called in the University Busi- be worth your while to really shelter, clothing, heat and light. last 13 years.
A larger portion*
toy the salesman who is alert to nes's School team.
And that team learn from your customers what It does not comprise any luxuries, of our adult population is married
opportunity. Many times the of- had not been in the town two days they think about you and if you whatever.
than ever before and they marry
iKcers and directors of companies before the answer to the mystery are actually providing those most
The most important fact to re¬ younger.
...
Uiat are doing business with an- was uncovered.
...
precious ingredients of your busi- member is that discretionary
Which leads to the third big.
sale—the

initial
tcnew

that

second

talk

barbers

salesman
and

this

unemployment

—

no

discernible.

worth

table,

.

other firm, are very interested in

looking into the investment possifcilities offered under
such cir-cumstances.
I remember that

steel

fabricating

a

certain small

company

that

purchased large amounts of sheet
*teel from

panies
fered

in
an

counts

one

of the largest com-

the steel industry, ofopportunity to open ac-

with

the

officers

of

the

This town had

chant who had

a

a

produce mer-

practical monop-

ness—trust and confidence-—and if
they think you are exacting the

right price for it.
As proprietors of jewelry stores,
wives brought in.
It was discov- which are luxury trade stores of
ered that this produce-buyer was the highest degree, you are re¬
paying prices a shade under the turally interested that the faith
level current in other nearby and confidence of your customers
towns. He was getting the name should be kept high. You are also

oly of buying the butter, eggs and
chickens which farmers and their

of "skin-flint" and presently, the
whole town with its merchants

interested in the general economic
level of your customers,

spending power is now more than
twice as great as it was in 1940,
even
allowing for the fact of in¬
flation of the dollar, since then.
And what about the outlook for
it

the

to

be

strict

large or
necessities

substracted?

—

are

raising bigger

In 1953,

greater and
71% greater.

fourttt

86%

were

children

been

increase

have

we

births of second
children were 91% greater than
in 1940; births of third children

families.

dollar?
small, after

the discretionary spending
Is

change

,

Jobs

-

,

,1

keeping up with the
in population. More than

are

working to¬
non-agricultural pursuits.
people working this
And what are the month than in any month at this
time of year in the nation's his¬
the cost of food?
the Department of tory, except for the same time 1

item in the
budget of the housewife for neces¬
By far the biggest

60,000,000 persons are
day

in

That is more

given a bad name. The farmsities is food.
Business Is Improving
tended to boycott the town
Your
business
prosperity de¬ prospects for
into their offices and
offer the in buying their own necessities,
Just last week
stock.
He just wrote on his card,
When this fact of life was pends directly upon the general Agriculture released a report in 1953, when — incidentally —J.®'
"Would like to see you about the brought to the attention of the level of prosperity. And that genwhich it said that, whereas food same Administration was in office.
XYZ Company."
He started with merchants
of
the
town,
they eral level of prosperity is still
prices are still high, the outlook
the sales manager and he got an quickly had a talk with the pro- high.
Changes for the Good
It is under that of 1953— for retail prices in the remainder
order from him, then he sold the
duce-buyer, told him 'he would the all-time record high, but as of 1954 is that
A change for the good is that we
they should de¬
secretary, the treasurer, and two have to mend his ways, then con- good or better than 1952—which cline "a little more than usual." are
earning more money-y-on bot
vice-presidents.
Not only that— ducted a short advertising cam- was a year generally regarded as
This is due to heavy farm mar¬ a positive and a comparative seal
!L°?.ened reached in
accoun^s that he could paign to convince the farmers that something of a wonder until 1953 ketings which should push food In 1941, the average middle-in"not
nave
any
other they would get as good or better came along.
$1.4-30.
h*
supplies above last year's level.
treatment than in adjoining comWe have every cause to believe
Rents and prices of real estate
An nrtnnil
lS u-ntmP°rtant. munities.
that the present leveling out is
ah people iITier
know people.
Ask for
Store receipts immediately be- just a prelude to another upturn, "are in a period of decline, gen¬

latter company to a
was

enterprising

salesman who
enough to go




.

were

ers

bolnme 180

Number 5352

...

The Commercial and Financial
Chronicle
l

had climbed to $3,981. ning mathematical calculators

«Jhis figure

|

vine times more Americans are
fj n the $5,000-and-over income
jracket as against 1941.

,!j Another item of change is that
jer education. We have 80%

more

J)igh school graduates and

55%

Snore people in college than
-

in

in the age of

are

biochemistry and
are

itself, at the

medicine,

anti-biotics and

approaching the
same

secrets of

deal wholesale death.
No one knows what

change is that
ilAmerica is going suburban. For a

Jvvhile all the movement

was from

the country to the city.
Now the
! trend is reversing itself, partly.

cities

decentralizing

are

so

rapidly that, in the 12 largest met¬
ropolitan
areas,
72%
of
their

growth

in the suburban

was

areas

between 1940 and 1950.
Our

people

better

Food has be¬

billion market since

$60

a

come

the end of the

We also have

war.

leisure time and more time

more

the

as

next

we

ap¬

algebraic progression in

an

free

can

system

only

the sciences and control
ture.

over

na¬

from

of

have

ject their vision beyond the

pres¬

ent to behold the future.

spells

portunity if only

shall

we

amazing

op¬

we can keep our

year

dedicated

a

enterprise.

has

unmistakable

it;

on

terms;

he

believes

presentation of the proposed
Future of America program.
So a
a

has

he
it

presentation of the program was
made by the Joint Committee's

and

lives it.

He is
of

his

cardinal

business,

shall

which

Chairman,

friend of small business.

a

have

far

in

area

to

expand, untrammelled
Government restrictions and

by

With

faith

mism of

our

in

more

and

economy

tem of Government,
along the road to a

our sys¬

which

mand

cannot

secure,

the

A Plan foi

The experts tell us:
school

facilities will have

to be almost doubled

few years.
and better

Also,,

in the nexi

need-more

we

highways, with traffic
becoming 72% heavier

them

over

than in 1942.
We must

rebuild many of

they

our

are un¬

sightly.
We must build more new
homes
and remodel or rebuild

the

our

old

ma¬

dwellings. >-fialf

of all

the homes in America
now 30 years old or
older.
We must modernize much

are

of in¬
A continuous need exists

dustry.
lor

plant modernization—not only
because existing
plants wear out
but
because of technological
change which is stepping up the
tempo every year.

Better, faster,
ooing things

are

newer

ways

of

making existing

e*e by *be hour and

day

JPZ *Jee? !° increase
cal
output
by 250%'

our electri-

I have

to

up

~

$500

witho^ including

^uses in electrical

in-

servln total

of goods and
prodWt ~~f
A 1S' gross national
ucti°nr the United States in
thfJ r aS $ ?6,7 billion- For 1960,
»t
i
+Ule. ls exPected to rise to
least
in

terms

of

Most economists
flgure of $550 friMion on
eyni^°?.national P^duct to be
expected
1960.
out

?riCes-

th

ihl

could

„

in

gros!1UfyOU1
gross national

lead

9

hence

declines

in

in

production

employment."

conference

Feb.

on

10

a

news

said

consider for
that the
product

1953—

-waseS^y6e7ar^f.haVe ever known

•«?« fr^hon, and compare
trnwl
I16
billion which is

thic

thought "it would be possible
to mislead, and to a certain ex¬
tent, frighten the country not into
a
major depression but a reces¬

in

n1960,

one can Place

nfr+i?erSpective the

epens31 |remendous
up*

Prospects it

terhiIf«le -ha?

been such
the Whole
sepn •
rjf.C0rded time as has been
venrc
t1S country in the past 50
rnenL We are entering new dihavo SnS °f speed — who could
of
Area7led' even 10 years ago,
130ft
! traveling at the rate of
MU0 miles

*
1

I
1

never

l°glcal change in

a

per

hour!

And

•

.

known

to

0f a double handful of

UranTT

uninn^ T.a

P°wer

absolutely

it"^

as wel1 as deSree»
sun
ltdoes not derive from the
pv0«?S
other sources of power
Jendually derive. In fact, it is
leacvAn' ^self, which we are unin that

,

*

ashing here

with
-

on

earth.

«3ire *n the age of electronics
y at the beginning of it—
guided

missiles, radar, light¬


|


vertising Agencies.

just

you

Let

give

me

sample of the exciting

a

presentation:
Our Population Is Increasing
and

at

Astounding

an

Total birtns in 1953

.

.

Pace

/approx¬

the

business brains of America, had a

deal to say about the peo¬
ple's state of mind in its thought¬
ful report called "Defense Against
good

We're
Not

only

recessions

factor

and

that

deepens

said

depressions,"

the C.E.D. report,

"is psychologi¬
The onset of a recession na¬

people get¬

more

are

ting married, they've been having
more children.
In 1953, births of
second children

91% greater

were

than in

1940; births of third chil¬
dren 86% greater; fourth children,
61%

"Another

Families

Raising Bigger

greater,

more

than

Our

fifth

and

children

15% greater.

new

Are

People

Living

Longer

old will number 15 V2 mil¬
turally
gives
rise
to
fears
of
lion people. That's a million more
further declines in sales,
prices
the
entire
population
of
and incomes.
This causes indi¬ than
Canada.
Today, old people are
viduals and businesses, and even

their
exnenditures.
they
will have greater need for the
money later, or that prices will be
lower, or that investments will
not pay off.
"If
people
see
no
adequate
to hold back
They think

forces

to put an end to a

likely

decline, if they view even a mild
recession as the beginning of a
descent into

bottomless pit, the

a

psychological reaction can be dis¬
astrous."
there

had it—the psy¬
chological reaction simply could
not be permitted to become dis¬
So

you

The auestion was:

could

advertising help prevent it?
It was obvious that nothing

by psychological

would be gained

tricks.

Whatever

would work.
this

had

time

to
It

facts.

known

abracadabra

mental

No

done

based

be

had

was

to

be

on

com¬

It had to be simon

pletely true.

active,

more

have

more

Have

We

money

than

to spend.

of

the

facts

year,

10 day annual

a

Some 11 mil¬

get paid vacations.
lion

of

us

have home

with

Compared
140%

workshops.

more

we
spend
equipment

1940,
for sports

129%

and

toys;

and

seeds; 263% more for radios,

an^

TV

There

about

more

for flowers

are

many

more

statistics
thrill¬

as

I won't continue with them
you have very likely al¬
ready heard them, so widely have
ing.

because

material

out

Here
of

was

which

for

Optimism

America,

conclusion

toward

the

baring

war—face

future.
The

squarely

pointing

all

a

that

brave,

we—

new

research
was

which

supplied

done mostly by J.

brilliant Dr.
Arno Johnson, and the facts were
Walter

Thompson's

shaped into

a

reach

try

—

presentation by the

admitting
what
bring, nevertheless,
pessimist is a rarity. The

Fall may

today

a

same

man

months

six

who

ago

saying "I don't like the look
things" to his luncheon com¬

of

serenely

panion,

is now going
about his business.
A

In

Summary
us step baetlr
moment at the

conclusion, let

and

look

broad

for

a

picture.

Based

on

the record

to

date, In.
unhappfev

contrast to earlier and

for

well

night

live up to

doorstep.

;

This

etc.

announced bold plans to expand
telling instead of retract.
was also ready for cir¬
But I leave it
to
you
as to
culation by the Joint Committee. whether there was not also an¬
t

Soon

slide film

sound

a

the story

Many of you have probably seen

other

it, and I think

appearance

you

it is difficult to

stay

will agree that
this film and

see

pessimist. To date 500 cop¬

a

ies of

this film

lating

up

have been

circu¬

and down these United

Hundreds of sales

meet¬

in enthu¬
I wish it were possi¬

ings have been roused
ble

to

has

produce.

case

to

multimillion

a

it

new

went

business

more

on,

leaders

additions

method, through
basic fact?
growing economy, help-

advertising

about

our

to calm the waves of fear?

In short, I leave

to

of

plants;

new

to think that things

began

going to be all right.
Finally, The Advertising Coun¬
cil material, created with skill by
McCann-Erickson,
began
pene¬
were

consciousness

the public
hand.

over

Future

of

from

the

nine million lines of

America

You will find

tisements

of 10 weeks time,

ordered

newspapers

Bankers Offer So.

one

today

advertising.

of these adver¬

in

First

The

the "Los An¬

Boston

Corp. .and

Dean Witter & Co.,

jointly head a
group offering public today (Aug.
19) $30,000,000 first and refund¬
ing mortgage bonds, series F, due>
1979, of Southern California Edi¬
son Co.
The bonds are priced at
100.526
to
yield
approximately
2.97%

to

awarded
100.0199

interest

every

Council

whether

an¬

plants; of new
machinery and
complete retooling.
And, reading
this good news, the man on the

trating

the

the quick projection of

and

made

nouncements of courageous plans;

on

thcr

like it.

cases

time

street

and

quick ballooning of confidence.
Did not the intelligent use of

ahead

go

dollar

plant,—and there must be dozens

of

the prompt dis¬

anxiety

I

decide

Directors

with

of

it to you as to
something new has not
know of been added to the battle plan of
where it helped a Board
fighting depressions.
confidence

the

measure

helped

one

of

by it.

for

reason

maturity

and

were

Aug. 18 on a bid of
for a 3% coupon.
Net
on

cost

to

the

company

was

2.9987%.
Other

bids, also for a 3% inter¬
99.93% by a syndi¬
cate headed by Blyth & Co. Inc.;
99.7099% by Halsey, Stuart & Co.
Inc. and 99.6991% by Kuhn, Loeb
est rate, were

& Co.

1

Proceeds will be used for

con¬

struction, expected to cost approx¬

the posted in the streetcars and buses

imately $128,282,000 for 1954 and

sane

optimism

The first step was,

of

America.

obviously, to

policymakers of indus¬
those
corporate
officers

the

On

radio

1955.

and

Of

this

amount,

expendi¬

television, the
combined circulation since April 1

tures of

through network programs alone

plants,) and $62,551,000 for electric

reached 122 million radio and tel¬

distribution

evision home impressions.

If

you

for

$39,628,000 will be madesteam
electric
generating-

The

lines and

substations:

listen to such radio and television

provides electric
service in portions of central and

shows

southern California with

as

Jack Benny,

Lux Radio

company

a

popu¬

Theater, Godfrey's Talent Scouts, lation of approximately 3,400,000.
Comedy
Hour,
Philco Areas served include 82 incorpo¬
whether" plants are closed or ex¬ Colgate
Theater or many others, you rated
cities or portions thereof
panded.
Their "yes" means jobs,
and their "no" is echoed and re¬ probably heard them.
and more than 150 unincorporated
echoed by lesser businessmen all
A booklet called "The Future of communities and outlying rural
over
the nation. 1 Fortunately, a America" is being offered free, territories.
whose!

I

these facts

sensible

the

While

plateau.

a

Over 90,000 car cards have been

could be
The advertising industry
Fortunately,
the facts w e r e made.
there in profusion — wonderful, was now ready for its newest and
stimulating, optimistic facts about boldest experiment!
and

The de¬

Well, that's the story.
on

credit.

Here, then, was our confidenceraw

heavy

geles Examiner."

they been distributed.

carry
the advertisements,
confidence-building facts.

the

our

In the space

country just

others
or

ing future was quickly picked up
Partly because,
as
the poITsr
by many magazines, too. Not only
some of the large circulation mag¬
show, a majority of the people
azines but grass roots publications have faith in our government.
like the "Elks Magazine," "Chris¬
Partly because, at the very out¬
tian Herald," "American Legion," set of the
decline, some companies

sets.

our

have

Mixer,"

reprinted the booklet in full, and

time, it was less than sf*
tended the Washington
m^etinq months from worry to confidence:
soon began using the statistics in
Why?
speeches of their own.
Others
Partly, of course, because e*
passed them on to other speechsound moves made in Washington
makers in their companies.
such
as
the
prompt easing ©*
The story of America's promis¬

instruments, phonographs

musical

continued

Many of the executives who at¬

As

families

fea¬

Sunday

weeks.

"

Facts

special

Other pa¬

Requests for the talk containing

■1

more

trips.
million of us went
abroad, not including servicemen.
Approximately 40 million of us
Last

building campaign.

-

our

"Hercules

the

stillborn.
It did not
its advance billing. It
huffed and puffed, but it never
really sat down for a long stay on,

of other

Time

Travel

half

take at1 least

and

more,

like

slumps, the recession of 1954 wa»

Leisure Time

More

More

and

More

travel

U3&. installment pur¬
"company magazine^

chase. Many

And millions upon

siasm
years

governments,

process

day, when

Editorials,

States.

By 1960 our population over 65

for

line

ted

millions of people must have read
them.

and
Ad¬

V-

much-respected Com¬
mittee
for
Economic
Develop¬
ment, including as it does the top

pure.

Vem-c° C°Uld have imagined, 25
S/htiAf'power release of the
the ever
ughtiest

Advertisers

Association of

National

take root."

could

astrous.

SDPn

of

American

the

imately four million, the highest
annual figure ever recorded.
By
Harlow Curtice, the President 1960 our population will be close
of General Motors, warned that to 180 million.
Every day nearly
"if those who persist in taking a 11,000
babies are bop.
Each
pessimistic view of the future suc¬ month we add to our poDulation
an
ceed in planting fear in the minds more than
Omaha, Nebr., a
of the public, those seeds of fear Norfolk, Va., or a Toledo, Ohio.
;■

•

■

j

trend of
general
the nex't five years.

tion

that

he

sion ..."

was

carried the story
program from coast to

made

pers

facts from the Future of America

President Eisenhower at

next

very

about America in full.

Anxiety Joint Committee of the Associa¬

Unless exposed

severe

distribution

the

tures of them.

daylight of facts, it

to

buying and

cal.

energy

$416 billion

broad

house

mostly favor¬
idea, appeared by the
score.
Many papers carried the
optimistic
facts
and
statistics

Recession."

iJthe COS.t of these ^ngs
just mentioned
add
evil™

be overdone.

the

to

the

able to the

Fighting Depressions

rying too much about it.
can

and

cities and get rid of slums
which
the as uneconomic as

jority of

page

it

whether

newspapers

of the

long be de¬

nied?

Our

from

in

mass

coast.

Continued

House magazines, or Company
magazines, are also telling thestory directly to the people who
either sign or don't sign the dot¬

was

The

to travel.

So, what does all this add up to
in terms of needs, of dynamic de¬

leaders

hand

started

America!

prosperous

their

that nobody knows for sure

business

raised.

shall go

we

more

are

to

cline has stopped and we are now

every

innate dyna¬

the

tion

Bill

should proceed to mass distribute
the facts they
had just heard,

controls.

decisions

determine

<

buying it for distribu¬
employees; General
Motors alone ordered 300,000.
panies

the

as pos¬

free

a

keystone of the cam¬

McKeehan, and
for 40 minutes you could have
heard a pin drop.
At the end of
the talk, when the Council asked

principles is
so

of this meeting pro¬
the perfect opportunity for

vided

it

expressed

session

eon

champion

liberty and of free

He

To this meeting each
nearly 200 corporate

come

heads, representing the blue book
of American industry. The lunch¬

know that President 'Eis¬

individual

sible,

these spell amazing op¬
portunity for those who will but
open their eyes and look about
of

opportunity was The Ad¬
vertising Council's White House
meeting on Jan. 12 in Washing¬

through all perils, especially

One

this

that

we

that small

bilities!

Program
This

managed-econ¬

faith

enhower is
of

Advertising Council's

world

since

gigantic

needs, titanic demands,
potentials, unimagined possi¬

The

the

is the

arch.
Requests for this
are pouring in from every
state in the Union, and from for¬
eign countries as well.
Big com¬

up.

booklet

ton, D. C.

We

vast

of

from

and

scholastic

paign

coming

was

we

omy.

acted

But we do know that this is
an
America of change—swift
change,

All

if

and

leaders

safeguard them
predators of privilege

the

and

them

golden opportunity to reach these

enter¬

economy;

imperialistic

Communism

in

Vast Potentials Ahead

All

of

protect
of

menace

Government

of

competitive

come

them in the present, who can
pro¬

eating

are

living better.

and

proach

hold

system

our

prise

being developed to

will

years

great

Another

Our

few

are

life,

time when im¬

We are making tremendous
technological progress. Just think

| machines!

rea¬

champion.

We

plements

■j of this one statistic alone: 95% of
H all the industrial work done in
J the United States is performed by

and

soned answers and lick the
stuff¬
ing out of any chess

1940.

J

present

can

electronic brains which
solve problems in
logic, give

people are getting more and bet-

:

and

even

\«w/

.-v-

34

The Commercial and Financial Chronicle

(710)

Thursday, August

..

.

★ INDICATES

Securities

Now

★ Allen Discount Corp., Boulder, Colo.
Aug. 13 (letter of notification) 900,000 shares of class
B non-voting common stock.
Price—At par (25 cents
per share).
Proceeds—For loans (mainly promissory
notes). Office—1334 Pearl Street, Boulder, Colo. Un¬
derwriter—Allen Investment Co., Boulder, Colo.
American Buyers Credit Co., Phoenix, Ariz.
Aug. 6 filed 5,000,000 shares of common stock to be is¬
sued to policyholders of American Buyers Insurance Co.
and American
Buyers Casualty Co., and employees.
Price—To so-called "Expansion Policyholders" (various
policyholders of both insurance companies), and em¬
ployees, at par ($1 per share); and to all other policy¬
holders in the insurance companies, $1.25 per share.
Proceeds—To expand in the small loan field.
Under¬

writer—None.

American-Canadian Oil & Drilling Corp.
May 12 filed 1,500,000 shares of common stock.
Price—
At par ($1 per share). Proceeds—For drilling expenses
and acquisition of additional properties for development
and exploration, and related activities.
Office—Dallas,
Tex. Underwriter—None.

States Oil Co.
(letter of notification)

Aug. 10

approximately 1,000,000
(par 10 cents). Price—At mar¬
ket
(currently quoted at 3c bid—5c asked). Office—
Pauls Valley, Okla. Underwriter—None.

Apollo Oil & Uranium Co., Denver, Colo.
May 27 (letter of notification) 12,500,000 shares of
stock.

mon

Price—At

par

(one cent

share).

per

com¬

Pro¬

ceeds—For mining activities. Office—602 First National
Bank Building,
Denver, Colo.
Underwriters — M. A.

Cleek and J. Russell

Natural

Tindell, both of Spokane, Wash.

Gas

Corp.,

itock

stock

Bldg., Santa Fe, N. M.
Corp., New York.

affiliate)

Underwriter—Hunter Secuxitiei

it Big Bend Uranium Co., Salt Lake City, Utah

—For

Salt

mining

Lake

(three cents

share). Proceeds
Office—510 Newhouse Building,
Underwriter — Call-Smoot Co.,

expenses.

Utah.

City,

Phillips Building,

per

city.

same

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
—For mining operations. Address—Box 77, Provo, Utah.
Underwriter—Weber

Investment

Co., 242 N. University

Ave., Provo, Utah.

it Black Bear Consolidated Mining Co.
Aug. 6 (letter of notification) 635,434 shares of
stock, of which 400,000 shares

235,434 shares

issued

to be

are

Price—Three

common

to be publicly offered

are

cents

cancellation

in

of

Proceeds
—To drive a tunnel and acquire properties.
Office—
139 N. Virginia St., Reno, Nev.
Underwriter—None.
share.

per

it Black Hawk Uranium & Metals Co.,
Salt Lake City, Utah
Aug. 9 (letter of notification) 5,000,000 shares of capital
stock. Price—At par (two cents per share). Proceeds—
For mining operations. Office—136 S. State Street, Salt
Lake City, Utah.
Underwriter—P. G. Christopulos &
Co., same city.
■■
v"
Buffalo

Co., Los Angeles, Calif.
June 11 filed 32,669 shares of $3 cumulative and par¬
ticipating preferred stock (no par value) and 52,876

Forge Co., Buffalo, N. Y.
July 7 filed 85,000 shares of common stock (par $1).
Price—To be related to current market price at time of

shares of

offering.

Arden Farms

common stock
(par $1), the preferred shares
being offered for subscription to holders of outstanding
preferred stock of record July 7 on l-for-10 basis, and

the

common

the

new common

pire

stockholders to have

Sept. 24.

on

and for

common

bank loans.

stock

on a l-for-10 basis; rights to ex¬
Price—For preferred, $48 per share;
$12.50 per share. Proceeds—To reduce

Underwriter—None.

Arkansas Natural
June

right to subscribe for

Proceeds—To 11 selling stockholders.

writer—Hornblower

&

Weeks,

York.

New

Under¬

Offering-

Postponed indefinitely.
California

22

stock

(par $50).

Proceeds

filed

105,000

shares

cumulative

of

preferred

Price—To be supplied by amendment
costs, etc.
Underwriter —

construction

For

—

11

(letter of notification) 299,500 shares of com¬
Price—$1 per share. Proceeds
drilling for magnetic iron ore.
Office—Rison, Ark.
Underwriter—Eaton & Co., Inc.,
New York, N. Y.

stock (par 25 cents).
—-For expenses incident to
mon

Stock Exchange).

Proceeds

To Mono Power Co

—

Electric Power Co. (8/31)
(filed 170,000 shares of common stock (par i
Proceeds—To retire 37,600 shares of $2.50

Aug. 9

sinking

Securities

Union

bidders:

Corp.

and

Underwriter—To

be

determined

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; The First Boston
Corp.; Lehman Brothers,
Stone & Webster Securities Corp. and
White, Weld & Co.
(jointly); Blyth & Co., Inc., Equitable Securities Corp.
and Central Republic
Co., Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Union Securities Corp.
(jointly). Bids—Expected to be received up to noon
(EDT)
•
i

on

Aug. 24 at Two Rector Street, New York, N. Y.

Atomic

July 29

of

Co., Cambridge, Mass.
notification) 31,657 shares of

ISSUE

EW
August 24

(Tuesday)

received

Aug. 31.

on

★ Cessna Aircraft Co.
(Kansas)
Aug. 9 (letter of notification) 1,700 shares of comiw
stock (par $1). Price—$14 per share. Proceeds—To
Gett
McDonald, a director. Underwriter—Harris, Upham
Co., New York.
Cherokee

Inc., Oklahoma City, Okli

Industries,

May 10 filed 5,000,000 shares of class B non-voting com
mon stock (par 1 cent).
Price—$1 per share. ProceedsFor

construction, operating

tal.

Underwriter—None.

t-

expenses

,

.

.

.

and working capi
-

_

,

Cherokee Utah Uranium Corp.
June 24

(letter of notification) 6,000,000 shares of capita

stock (par one cent). Price—Three cents per share. Pro
ceeds—For mining expenses. Office—65 East 4th Soutl
Salt Lake

Underwriter—Cromer Brokerag

City, Utah.

Co., Salt Lake City, Utah.

,/

Proceeds —For

Massachusetts Avenue,

Mining Co.
June 24 filed 1,252,408 shares of preferred stock (pa
50 cents) and 626,204 preferred stock purchase war
rants

being offered for subscriotion by common stock
of record Aug. 2 on the basis of one shared

preferred and an option to purchase one additional shart
of preferred stock (at 50 cents per share) for each twt
common shares held (with an oversubscription privilege
rights to expire on Sept. 30. Price—55 cents per unit
development program and working capita

and

general corporate purposes. Office—Salt Lake City
Underwriter—None. Statement effective July 2£

CALENDAR
September 14 (Tuesday)

(Bids

Automatic Remote
(Mitchell

$7,500,000

EDT)

noon

Common

Systems, Inc.

Webber,

Jackson

(Bids

11

EDT)

a.m.

10:30

Equitable Securities Corp.)

Preferred

September

$20,000,000

CDT)

a.m.

—Chace, Whiteside, West & Winslow, Inc. and Draper,
& Co., both of
Boston, Mass.; Fahnestock & Co.
and Amott, Baker &
Co., Inc., both of New York; and
Nauman, McFawn & Co., Detroit, Mich.
Sears

(Bids

1

Food Fair Stores,

(8/24)
620,000 shares of common
which 540,000 shares are to

filed

cents), of
public and

80,000 shares to be issued
Price—$3.75 per share.
Proceeds—For

be

to

(par

50

offered

to

capital.

$5,700,000

Morgan

Co.)

&

$299,000

General
Offering

American

-

■

shares

100,000

Lehman

by

Brothers)

shares

Tampa Electric Co

timore, Md.

to

invited)

be

Common

170,000

(Offering

to

Co.

W.

E.

Hutton

&

Co.)

11:30

by

Stanley

Morgan

&

about $5,000,000

(Bids

per share.
Proceeds—For working capital. Under¬
writer—J. A. Hogle & Co., Salt Lake
City, Utah. Offer¬
ing—Expected in about two weeks.

11

a.m.

EDT)

September 1

to

stockholders—no

by

National City Bank of New York-—
(Offering to stockholders—underwritten by

underwriting)

Corp.)

October

Common

4

(Bids

to

be

(Wednesday)

Indiana & Michigan

$12,000,000

Indiana

Supermarket Merchandisers of America Inc...Com.
(Milton D. Blauner & Co.,

Western

Maryland Ry
(Bids

to

be

(Bids

Bonds

invited)

Inc.)

.

.

New York

Boston

Philadelphia




Pittsburgh

San Francisco

Chicago

Thompson-Starrett
(Blair

&

Co.,

Inc.

&

-(Bids

(Bids

Bonds

11

to

all

offices

Preferred
Deetjen

&

Co.)

to

Co.)

$1,250,000

&

Webster
&

Savannah

Common
&

**on s
$18,000,000

-

6

(Wednesday)

Co

—

Securities

Co.)

Corp. and
shares

Dean

,

.

Commo
Witter

34,807

October 26 ,<Tuesday)

(Friday)

Loma Uranium Corp
Morgan

invited)

be

$1,450,000

Cleveland

(Peter

$4,000,000

EDT)

a.m.

Pacific Power

(Stone

September 10
Private IVires

Sierra

(Thursday)

Emanuel

_.Preferred

Michigan Electric Co

•

Electric &

Power

|

Bonds |

$16,500,000

"EDT)

a.m.

$16,000,000

Co., Inc

and

;

'

(Tuesday)

Electric Co

11

October

September 9

5

Wisconsin Power & Light Co

$299,550

i

invited)

Bonds

$20,000,000

$817,080

Montana-Dakota Utilities Co
(Bids

(Monday)

invited)

be

to

October

September 8

The First

$131,250,030

Public Service Co. of Colorado

Common

company—no

Bonds
$30,350,000

invited)

be

to

Boston

underwriting)

(Thursday)

& Nashville RR_,._

(Wednesday)

Peoples Securities Corp.
(Offering

Debs.

$55,000,000

Pacific Telephone & Telegraph Co.
(Offering

Co— .Bonds

$10,000,000

EDT)

a.m.

September 30
Louisville

(Bids

Southern Bell Telephone & Telegraph Co

—$5

invited)

be

& Southern Ohio Electric
(Bids

Debentures

stockholders—underwritten
and

Columbus

Common
to

shares

Grand Union Co

Lordsburg, N. M.

June 30 (letter of
notification) 25,000 shares of common
stock (par $1) to be offered first to
stockholders. Price

(Tuesday)-

(Wednesday)

September 29

(Tuesday)

California Electric Power Co
(Bids

^

$5,000,000

EDT)

a.m.

;

—Preferred

——r

11

New England Electric System
(Offering to stockholders—bids

underwriter.

August 31

$250,000,000

September 28

Common

32,933

|

Bonds

(Wednesday)

September 22

(Monday)

stockholders—underwritten

(Tuesday)

21

Telephone & Telegraph Co.

(Bids

Bronze, Corp.
to

"

'

..Common

Dillon & Co.)

(Eastman,

Bonds
$52,000,000

invited)

be

(Bids to be invited)
'

'

Suburban Propane Gas Corp

Underwriter—Mitchell Securities. Inc.. Bal¬

Banner Mining Co.,

Electric Co.—Common
shares

Ohio Company) 200,000

..Common

Rocky Mountain Uranium Corp
(Peter

to

September
Debentures

$20,000,000" '

Dillon & Co.)

August 30
stock

manufacture of
Telebet units and Teleac systems and
additions to work¬
ing

EDT)

noon

Inc

(Eastman,

Baltimore, Md.
4

(Bids

Equip. Trust Ctfs.

RR

$43,386,900

20. (Monday)

Northern Pacific Ry.---—-—

Delaware, Lackawanna & Western

-Automatic Remote Systems,
Inc.,

Aug.

>

(Dillon, Read & Co. Inc. and The

|j

(Wednesday)

August 25

•/'

The

$25,000,000

Northern States Power Co
(Bids

by

Bonds

Niagara Mohawk Power Corp

offer to preferred stockholders—underwritten
First Boston Corp.; Merrill Lynch, Pierce
Fenner & Beane; Union Securities Corp.;
and

(Exchange

$2,400,000

Curtis)

Preferred

Georgia Power Co—

Common

&

(Wednesday)

15

September

.

$7,500,000

$2,025,000

Securities, Inc.)

Electronics Corp. of America
(Paine,

.....Preferred

Oklahoma Gas & Electric Co
(Bids may be invited)

Bonds

Columbus & Southern Ohio

Aug. 25. Price—$6 per
working capital.
Office —84
Cambridge, Mass. Underwriters

,

,

Chief Consolidated

-

Arkansas Power & Light Co

mon

share.

Hoglej

Utah.

shares of common stock in these columns.)

com¬

stock (par $1) being first offered to stockholders at
the rate of one new share for each four
shares held as
of Aug. 11; rights to expire on

A.

(jointly); Lehman Brothers; Kidder, Peabody &
Merrill Lynch, Pierce, Fenner & Beane and Dean
\ii
ter & Co. (jointly).
Bids—Tentatively expected to

of 107,000

Instrument

(letter

J.

Co.

—

program.

fjl

(par $50) shortly after Oct. 1, 1954 ,
$51.50 per share and accrued dividends. Underwrite
To
be
determined by competitive bidding.
Probata
preferred stock

Proceeds—For

Arkansas Power & LlgTit Co. (8/24)
July 23 filed $7,500,000 of first mortgage bonds due 1984.
Proceeds
To repay $4,900,000 of bank loans and for

construction

(•

retire indebtedness.
Underwriter—Wage!
seller & Durst, Inc., Los Angeles, Calif.
to

Lynch, Pierce, Fenner & Beane, New York. Of¬
fering—Temporarily deferred. (See also proposed issue

Merrill

Resources Corp.

(par

holders

Electric Power Co.

April

*

California

Aug. 6 (letter of notification) 7,000,000 shares of common
Price—At par

REVISED

(letter of notification) 8,000 shares of commr
$1). Price — At market (on the
Americ-

July 21

(par five cents). Price—40 cents pdr share. Pro¬
ceeds—To acquire properties and leases. Office — Blati

stock.

PREVIOUS Issur

ITEMS

•

California Electric Power Co.

N. Mex.

Santa Fe,

(letter of notification) 748,000 shares of commoi

indebtedness.

stock

common

Basin

ADDITION*

SINCE

Registration

Dec. 23

and

it American
shares of

in

19 ^

Co.

Bonds, Debs. &

A

Preferred

Number 5352

180

lume

.

.

The Commercial and Financial Chronicle

.

Uranium Co.

>ute Canyon

26 (letter of notification) 1,500,000 shares of common
ck. Price—At par (10 cents per share).
Proceeds—
drilling and exploration. Office—334 Judge Bldg.,
t Lake City, Utah. Underwriter—James E. Reed Co.,
it' Lake City, Utah.
y

Vending Service Inc.

jffee

9 (letter of notification) $250,000 of 6% sinking
debentures due Sept. 1, 1964. Price—At par. Pro¬

g.

d

debt and for expansion and working
ital. Office — .59-05 56th St., Maspeth, L. I., N. Y.
derwriter—None.
To

ds

repay

$50,000,000 of first and refunding morte bonds, series K, due May 1, 1984.
Proceeds—To be
lied towards cost of redeeming $27,982,000 New York
am Corp. first mortgage bonds and $25,000,000 Westster Lighting Co. general mortgage bonds.
Underter—'To be determined by competitive bidding. Probe bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
Co.; The First Boston Corp. Offering—Originally set
May 11, but has been postponed because of market
filed

7

No

ditions.

of common

debentures and 30 shares of stock. Price
Unit. Proceeds—For additions and improve-

'ts of $50 of
100

per

nts.

Underwriter—None.

Houston, Texas
shares of common stock

Danaho Refining Co.,

110,000

filed

14

e

and

Office—4705 Queensbury

Un-

Road, Riverdale, Md.

rwriter—None.

Chemical

Co.

g.-5 filed 200,000 shares of common stock (par $5) to
offered for subscription by employees. Price—To be

plied by amendment. Proceeds—For general corpopurposes. Underwriter—None.

e

Electronics

(8/24)

of America

Corp.

Price—To

4 filed 200,000 shares of common stock.

g.

supplied by amendment (probably around $12 per
Proceeds—To reduce bank loans and for work-

are).

capital and other general corporate purposes. Office
Cambridge,
Mass.
Underwriter — Paine,
Webber,
&

ckson

Price

—

Underwriter—None.

(par $5).
Proceeds — To
Underwriter—Kidder, Peabody &

Grand

Union Co.

filed approximately $5,000,000
subordinated

debentures

of

15-year

due

con¬

of¬
subscription by common
on the
basis of $100 of debentures for each 12 to 15 shares held
be

about Aug. 31,

or

on

1969, to
stockholders

for

1954; rights to expire on Sept. 15.
Price—To be supplied by amendment.
Proceeds—For
equipping new stores and remodeling and modernization
of existing stores and other general corporate purposes.

Underwriters—Morgan Stanley & Co. and W. E. Hutton
& Co., both of New York.
Gray Manufacturing Co., Hartford, Conn.
10 filed 58,119 shares of common stock (par $5)
being offered for subscription by common stockholders
of record July 29 on the basis of one new share for each
four shares held; rights to expire on Aug. 20. Price—$10
per
share. Proceeds—For general corporate purposes.
Underwriter—None. Statement effective July 22.

July 22 (letter of notification) $299,000 of 6% converti¬
ble

secured

Curtis, of Boston and New York.

debentures.

Price—At

par.

Proceeds—To

present debt and for working capital.

Bldg.,

Oklahoma

City,

Okla.

Office—916
Underwriter—

Harrison & Co., Philadelphia, Pa.
Gulf States

—

Gulf States

Utilities Co.

Elgin National Watch Co., Elgin,

May

14

g. 5

June

1, 1984.

ck

first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬

III.
(letter of notification) 12,470 shares of common
(par $5) to be offered to officers, salesmen and

Mpervisory employees under
|

Price—$12.07

Plan.

ase

Employee's Stock Pur-

an

per

share.

Proceeds—To re¬

company for cost of acquisition of such shares
open market.
Office—107 National Street, Elgin, 111.

imburse

derwriter—None.
Eureka Uranium

Corp., Cheyenne, Wyo.
ly 12 (letter of notification) 30,000,000 shares of comstock.

Price—At

par (one cent per share).
Promining expenses. Office—2215 Duff Ave.,
eyenne, Wyo.
Underwrite r—Underwriters, Inc.,
n

eds

For

—

arks, Nev.
Financial Credit Corp., New York
29 filed 250,000 shares of 7% cumulative

n.

sinking

d preferred stock. Price—At par

ds—For

working

& Co.. Inc.,

n

($2 per share). Pro¬
Underwriter—E. J. Foun-

capital.

New York.

San

10

g.
nd

Francisco,

filed

Calif,
$2,500,000 of interests

in

the

Fireman's

Sayings and Supplemental Retirement Plan, to

offered to employees; also 36,765 shares
)ck

which may be

of
purchased by the Fund.

common

First Railroad &
Banking Co. of Georgia
fy 30 filed 42,000 units, each consisting of one share
common
stock, one warrant to subscribe at $4.10 per
I

to 13 shares of common
stock, and one $250 5%
Uateral trust bond due
Aug. 1, 1988, to be offered for
cn of the
42,000 shares of

are

outstanding

1

irsuant.

common

stock

to

plan of readjustment; also 756,000 shares
stock, which includes 546,000 shares subject
subscription upon exercise of warrants and 210,000
wares to be offered to
public at $4.50 per share through
nnson
Lane, Space & Co., Savannah, Ga., who will
common

so

purchase such of the 546,000 shares of common stock

i>t sold upon exercise of

^°°dfiled
fa'r
g- 3

warrants.

Stores, Inc., Philadelphia, Pa. (8/25)

$20,000,000 of 20-year sinking fund deben-

^es due Sept. 1, 1974.
lendment.

Proceeds—To

ntures
ns

due

and for

Feb.

1,

Price

—

redeem

1973,

to

To be 1 supplied
$12,500,000

repay

$4,200,000

general corporate purposes.

stman, Dillon

&

4%

by
de¬

bank

Underwriter—

n )tf>

(to

*

a

Corp., Denver, Colo.
500,000 shares of common stock (par $1):
per share* Proceeds—To repay bank loans,

perties;
tonp r °n and for otherpurchase of certain claims and
contracts for general corporate purposes,

erwnter—Campbell, McCarty & Co., Detroit, Mich.
Bronze Corp.

t§

h

ch

&
I

(8/30)

'ec* 32,933 shares of common stock (p&r $5)
JeAec* *or subscripli°n by common stockholders
Aug. 37 on the basis of one new share for each

«

are,s.

rights to expire

Sept. 13.

Price—To

PPhcd by amendment. Proceeds — For
sram.

expansion

~

on

n0p

m

Underwriter—To be determined by com¬
bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
& Beane and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been postponed.
petitive

if Hart (E. K.) Confections, Inc. (N. Y.)
Aug. 13 (letter of notification) 16,650 shares of common
stock

pand

Underwriter—Lehman




(no par). Price—$3 per share. Proceeds—To ex¬
manufacturing and sales activities. Office — 540

drilling equipment and working capital. Address—Bar¬
ber & Barber, First National Bank Building, Spring¬
field, 111. Underwriter—None.

^ Justheim Petroleum Co., Salt Lake City, Utah
Aug. 7 (letter of notification) 200,000 shares of capital
stock (par five cents). Price—At market (estimated at
15 cents per share). Proceeds—To Clarence I. Justheim,
President. Office—212 Phillips Petroleum Building, Salt
City, Utah.

Underwriter—Hunter Securities Corp.,

tion and development costs, purchase of equipment, and
reserve for acquisition of additional properties.
Under¬
writer—Peter Morgan &

if Kern Front Oil & Gas Corp.
Aug. 10 (letter of notification) 300,000 shares of com¬
mon
stock (par one^cent).
Price—$1 per share. Pf0ceeds—For expenses incident to oil and gas activities.
Office—825 S. Serrano Avenue, Los Angeles, Calif. Un¬
derwriter—Farrell Securities Co., New York.
Keystone Fund of Canada, Ltd., Montreal,

Canada

1,250,000 shares of capital stock. Price—
To be supplied by amendment. Proceeds—For invest¬
ment. Underwriter—The Keystone Co. of Boston, Boston,
2 filed

June 14 (letter of notification) 300,000
stock (par 10 cents).
Price—$1 per
For

development
Houston, Tex.

mon

Brothers,

New

York.

—At

are to be reserved for holders
172,000 shares for issuance at 10 cents
share pursuant to stock options given to certain key

stock, 320,000 shares

of class A stock;
per

reserved for issuance
1955-1957 upon the
exercise of a like number of warrants granted to certain
dealers in connection with public offering by F. W. Ste¬
phens Co., New York, of 199,000 class A shares.
The
registration statement may be amended to change the
designation of the 121,000 shares of class A stock to
class B stock. Price—Of common, may be $2.50 per share
employees; and 100,000 shares
at $1.50 per share during the

market.

Proceeds—For

investment.

if Ladoric Mines Ltd., Montreal, Canada
July 30 (regulation "D") 600,000 shares of common
stock (par five cents).
Price—50 cents per share. Pro¬
ceeds—For exploration, etc.
Underwriter—Daggett Se¬
curities, Inc., Newark, N. J.
Lake Lauzon Mines,

Ltd., Toronto, Can.
Aug. 2 filed 660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,OQO shares for account
of Percy E. Rivett. Price—40 cents per share, U. S. funds.

are

years

offered.

McCluskey Wire Co., Inc., New Haven, Conn.
June 21 (letter of notification) $95,000 of 5% debentures,
series A, due July 1, 1962, and $95,000 of 6% debentures,
series B, due July 1, 1970. Proceeds—To acquire assets
and business of H. & T. McCluskey & Sons, Inc. Office
—527 Grand Avenue, New Haven, Conn. Underwriter—
Barnes, Bodell & Goodwin, Inc., New Haven; Conn.
Mid-Atlantic Corp.
July 26 (letter of notification) 120,000 shares of common
stock.
Price—At par (50 cents per
For investments in other businesses.

share).

Proceeds—

Office—2 Main St.,

Underwriter—William T. Bowler & Co.,

Bradford, Pa.
Bradford, Pa.

if Mohawk Silica Co., Cincinnati, Ohio
Aug. 12 (letter of notification) 1,232 shares of common
stock (no par).
Price—$100 per share. Proceeds—For
expenses incident to mining, refining and selling silica
sand.
Office
2508 Auburn Ave., Cincinnati, Ohio.
—

Underwriter—None.

if Montana-Dakota Utilities Co. (9/8)
11 filed $5,000,000 of first mortgage bonds due
Sept. 1, 1979, and $7,000,000 of first mortgage serial
bonds due March 1, 1956-1975, inclusive.
Proceeds—To
redeem $2,550,000 4.50% serial bonds; and toward pre¬
payment of $10,000,000 of notes payable to banks. Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., White, Weld & Co. and Merrill Lynch, Pierce,
Fenner & Beane
(jointly); Blair, Rollins & Co. Inc.
Bids—Expected to be received on Sept. 8.
Aug.

if Monterey Uranium Corp., Salt Lake City, Utah
Aug. 13 (letter of notification) 1,500,000 shares of com¬
mon
stock
(par 10 cents).
Price—20 cents per share.
Proceeds—For mining operations.
Underwriter—Muir,

Co., Salt Lake City, Utah.

Mountain States

Uranium, Inc.

May 19 (letter of notification) 30,000,000 shares of com¬
mon stock.
Price—At par (1 cent per share). Proceeds—
For

mining

Office—1117 Miner St., Idaho
Underwriter—Underwriters, Inc., Sparks,

expenses.

Springs, Colo.
Nevada.

if Nancy Hanks Mines, Inc., Spokane, Wash.
Aug. 9 (letter of notification) 100,000 shares of preferred
stock.
Price—At par $1 per share). Proceeds—For de¬
and

exploratory

Avenue,

Spokane

velopment

Spofford

expenses.

Wash.

17,

Office — 618
Underwriter —

None.

Natick, Mass.
58,800 shares of com¬
mon stock (par $1).
Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
Natick Industries, Inc.,
10

(letter of notification)

Boston, Mass.

if Neo-Line Products Corp.
Aug. 11 (letter of notification) 132,700 shares of com¬
mon stock. Price—At par
($1 per share). Proceeds—For
working capital, etc.
molds and

is

a

Business—Manufactures^ dies and

custom molder of plastics.

Rockaway Blvd., Woodhaven, L. I., N.

Office—75-10

Y. Underwriter—

None.

June

Price

expenses.

shares of common
share. Proceeds—
Underwriter—Crerie & Co.,

Mars Metal Corp., San Francisco, Calif.
July 23 filed 121,000 shares of class A stock (par 10 cents)
and 3,000,000 shares of common stock. It is planned to
sell at $2.50 per share 75,000 class A shares privately,
the remaining 46,000 shares to be issued to provide
working capital or funds for investment. Of the com¬

Corp., Carrizozo, N. M.

Mexico Copper

New

if Knickerbocker Fund, New York
Aug. 13 filed 250,000 shares of beneficial interest.

Co., New York.

Marion River Uranium Co.

March

New York.

Aug.

Corp., Denver, Colo. (9/10)
1,000,000 shares of common stock (par 10
Price—$1.25 per share. Proceeds—For explora¬

Dumke &

St., Union City, N. J. Underwriter—None.

if Hose-Austin Drilling Corp., Springfield, III.
Aug. 10 (letter of notification) $150,000 of 6% deben¬
tures and warrants to purchase 3,000 shares of class A
common stock
(par $1) at $5 per share. Proceeds—For

Lake

Loma Uranium

June 18 filed

Mass.

Co., New York.

?1orners Uranium
I'W

$24,000,000 of first mortgage bonds due
Proceeds—To redeem $10,000,000 of 3%%

rate purposes.

39th

Fireman's Fund Insurance Co.

filed

development and exploration expenses.

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock
(par one cent).
Price—Three cents per share.
Proceeds—For mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.

when

Utilities Co.

May 14 filed 160,000 shares of preferred stock (par $100).
Proceeds
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of
$105, $105, and $105.75, respectively.
Underwriter—To
be determined by cqmpetitive bidding.
Probable bid¬
ders:
Stone
&
Webster
Securities
Corp.;
Lehman
Brothers and Equitable Securities Corp. (jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C. Langley &
Co. (jointly). Bids—Had tentatively been expected to be
received up to 11:30 a.m.
(EDT) on June 15 at The
Hanover Bank, 70 Broadway, New York, N. Y., but of¬
fering has been postponed. Meeting—Stockholders will
vote Aug. 17 on new issue.

For

—

35

Underwriter—To be named by amendment.

cents).

(8/31)

vertible
fered

Proceeds

To be supplied by amendment.

selling stockholders.
Co., New York. Offering—Expected in September.

Republic

Laboratories, Inc., Riverdale, Md.

tures.

Dow

Wheeling, W. Va.

Corp., Baton Rouge, La.

March 19 filed 100,000 shares of common stock

pay

6 (letter of notification) 38,000 shares of common
(par $1) and $75,900 of 6% five-year deferred dePrice—At par. Proceeds—For working capi-

g.

ck

General Gas

Gulf Coast Western Oil Co.

(par 10

ts). Price—$2 per share. Proceeds—For additions
rovements. Underwriter—None.
I
Dav.es

735 Main Street,

June

$625,000 of 6% debentures and 375,000
stock (par 10 cents) to be offered in

filed

14

e

$25).
Price—$37 per share (em¬
ployees will receive a 10% discount on their purchases).
Proceeds—For expansion and working capital.
Office—
(par

date set.

new

Danaho Refining Co., Houston, Texas
res

stock

common

Aug. 11

onsol. Edison Co. of New York, Inc.
il

^General Electronics Distributors, Inc.
Aug. 9 (letter of notification) 1,750 shares of non-voting

•

(N. Y.)

(711)

14

(letter of notification)

198,000 shares of capital

cents). Price—50 cents per share. Proceeds
acquisition of power plant, improvement of mill,
development of properties and general corporate pur¬

stock (par 25
—For

Underwriter—Mitchell Securities, Inc., Baltimore,

poses.

Md.

Niagara Mohawk Power Corp.
1,

Aug.
new

1984.

construction.

competitive
&

Co.

(8/24)

of general mortgage bonds
Proceeds—To repay bank loans and

Aug. 3 filed $25,000,000

due
for

Underwriter—To be determined by

bidding.

Probable bidders: Halsey, Stuart
Corp.; Kuhn, Loeb & Co.
Continued on page 36

Inc.; The First Boston

I

~"3<5

(712)

rht*

^Continued from

.and Union Securities

Corp. (jointly); Morgan Stanley &
up to 11 a.m. (EDT) on Aug.

Co. Bids—To be received

&

.24, at Room 1840, 15 Broad St., New York, N. Y.

3,000 shares of common
stock being offered for subscription by stockholders.
I»rice—At par ($50 per share).
Proceeds—For capital
improvements.
Office—119 Monona Ave., Madison, Wis.
Underwriters—Harley, Haydon & Co. and Bell & FarTell, Inc., both of Madison, Wis.
(letter of notification)

Northern

Power Co.

States

July

29

stock

(par $100).

filed

(Minn.)

Co.

and

ers

shares of cumulative preferred
Proceeds—To refund a like amount of

Salle

La

and

Street,

Bids

(CDT)

on

Chicago 4, 111. "

'

.

Expected to be

—

So.

Aug. 24 at 231
:

•., /

;

J

30,000 shares to underwriter., Price—$1

Products, Inc.
(letter of notification) not exceeding 12,000
•shares of capital stock (par $5) to be offered for sub¬
scription by employees. Price—$11.88 per share in cash,
-or $10.63 per share in installments. Proceeds—For work¬

Ail§.

H
"ft

{•"

capital.

ing

Office—19 Rector

St.,

York

New

N.

6,

-

Louis C. McClure &

!-<t(

working capital.
Co., Tampa, Fla;

Underwriter—

^Oklahoma Gas & Electric Co;

(9/14)
Aug. 16 filed 75,000 shares of cumulative preferred stock
(par $100). Proceeds—To repay bank loans and for new

II

i?

construction.

.

i

Aug.

)

6

Underwriter—To

(letter

05%

of

by com¬
First Boston

Ore.

of notification)

undetermined

an

num-

competitive bidding.

Kuhn, Loeb & Co.
11

lime

Shares

to

the New York Stock

on

fered

Oil

Corp.
100,000 shares of

market.

to

sales.

offered

from

Exchange, and

specific persons, firms

1he-floor

stock

common

be

Proceeds—To

or

J.

may

(estimated

at $11.75

per

share).

Proceeds—To

tain

selling stockholders.—Underwriter—Fairman,
& Co., Inc.,
Chicago, 111.

ris

^Peoples Securities Corp., New York
Aug.
\

I

per

57th

filed

11

share.

Inc. and

investment.

Street, New York, N. Y.

preference

stock

stock

shares and
ceeds—To

^tock, for

one

to

and

con¬

common

cer¬

share.

of

10-cent

of two

Price—$3

per

machinery, exploration

both of

Allyn & Co.,

Memphis, Tenn.

r

if Van Dusen Aircraft Supplies, Inc.,
Minneapolis, Minn.
Aug. 9 (letter of notification) 58,100 shares of common
stock.
Price—At par
($5 per share).
Proceeds—For
working capital.
Underwriter—None.

-

.

Voss Oil

July

*

one

Price

par

—

repay

To

be

working capital.
—Eastman, Dillon & Co., New York.

Wash.;

are

"B"

St., Philadelphia, Pa.

on

>

ii,l

Salt

common

*1

*

given).

>

:

.

vt.

Lake

City, Utah.

ital and remodel store.

vard,
.,
*

..

Middlebrook, Inc. and Glidden,
The registration stafe"

(H. S.) & Co., Glendale, Calif.
Aug. 9 (letter of notification) 6,000 shares of 7% cym "*
lative preferred stock.
Price—At par ($25 per sbar h
Proceeds—To retire funded
increase working c p

1

>i

&

it Webb

Underwriter—Milton D.

>

Coburn

covers

Price—7^2 cents per share. Proceeds—To pur~
mining claims and exploratory equipment, and to
exploration costs. Underwriter—Weber Investment CO.,

Inc., New York.

1

„

and

se4a!5

Seattle,

chase

if Sylvan Life Insurance Co. (Utah)
Aug. 9 (letter of notification) 20-year debenture notes
(in denominations of $20-each)1 and cdfhmorr stock'
(par

5pb.y

stock (par SI).

Proceeds-—To 40

cent).

(par 10 cents). Price—$1.50 per share. Proceeds—
working capital and business expansion. Office—

Blauner & Co.,

common

Mining Co., Inc.,
Denver, Colo.
Aug. 6 filed 65,000,000 shares of common stock (par one

stock

3219

shares of

Warren Oil & Uranium

Underwriter

Supermarket Merchandisers of America,
Inc.
(9/8-9)
July 15 (letter of notification) 199,700 shares of

subordinated

336,800

2,413,200 shares of common stock whicn
may be offered from time to time (but no definite plans

•

working

Co., Newcastle, Wyo.

Morris & Co., both of New York.
ment also

(par $1).
Proceeds — To

and for

filed

stockholders. Underwriters—John R. Lewis, Inc.;

share of each class of stock. Price

supplied by amendment.

bank loan

1

Price—To be related to market.

Suburban Propane Gas
Corp. (8/25)
Aug. 6 filed 100,000 shares of common stock

Aug. 1, 1974, being offered for
subscripcommon stockholders at the rate of $100 of
d bentures for each
25 shares of
common stock held




(par $1).

Proceeds—To

C.

Compress & Warehouse Co.

(letter of notification) 30,000 shares of common
stock (par $1).
Price—$10 per share. Proceeds—To 3a
selling stockholders. Office — Memphis, Tenn. Under¬
writers—Leftwich & Ross and Mid-South Securities Co.,

construct and equip a luxury hotel. Underwriter—None.

& Co., Inc., New

? r^oo5^1"?51 Metallurgical Co., Inc.
$2)J23'500 °f 4% convertible
due

Union

—$10.01 per unit. Proceeds—For purchase of land and to

For

\J ok! ^
•debentures

Inc.. Reno, Nev.

offered in units of

East

preference
unit. Pro¬

and

'

June 25

July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock
(par one cent) to be

shares of outstanding preferred
extensions and electric transform¬

1 nderwriter~~Barrett Herrick

if Uncompahgre Uranium, Inc. (Idaho)
Aug. 6 (letter of notification) 3,032,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For mining expenses.
Office—Salisbury Build¬
ing, Idaho Falls, Idaho. Underwriter — William Lewis
Clark, 917 Vk Main Street, Boise, Idaho.

Dempsey & Co., both of Chicago, 111.

Stardust,

Har¬

retire 40,526
power line

ers, equipment and

Work

shares

in units

Underwriters—A.

<

—

mar¬

Underwriter—None.

300,000

be offered

stock

common

amendment.

•

amendment.

Corp., Salt Lake City, Utah
(letter of notification) 6 000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds
For
exploration and development costs.
Underwriter—Ned J. Bowman Co., Salt Lake City, Utah.

Mining Corp., Santa Fe, N. Mex.
filed 600,000 shares of cumulative
sinking fund

-common

by

>

—

by

stock

mon

Petaca

June 9

supplied

t

Petro-Chemical

Corp;, Montreal, Canada.
April 30 filed 500,000 shares of common stock (par $1).
Price
To be related to the market price at time of
offering. Proceeds—For development costs and general
corporate purposes.
Underwriter — To be named by

Star Uranium

Price—$11

Office—136

Trican

Aug. 2

(9/1)

74,280 shares of capital stock.

Proceeds—For

Co., Boston, Mass.

Probable bidders: Halsey, Stuart &

189,655 shares of

be

(letter of notification) 299,000. shares of com¬
Price—$1 per share. Proceeds
Underwriter—A. L. Albee &

stock (par one cent).
—For mining expenses.
mon

Bids—Expected to be received up to
Aug. 31, at Room 2315, 195 Broadway,

selling stockholders.

Getty, President.

Peabody Coal Co., Chicago, III.
July 14 (letter of notification) 17,300 shares of 5%
vertible prior preferred stock (par
$25). Price—At

on

17 filed

Price—To

be of¬

Underwriter—None. Statement effective Aug. 11.

ket

Titan Manganese Mining Corp.

July 12

York, N. Y.

Aug.

to

corporations in off-

Paul

determined

share). .Proceeds—
Office—Orleans, Hum¬

per

(letter of notification) 1,800,000 shares of com¬
(par 10 cents). Price — 15 cents per share.
Proceeds—For mining activities. Office—206 N. Virginia
St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.

if Standard Coil Products Co., Inc.

(par $4).
time

be

($1

Underwriter—None.

stock

mon

.

Office—1405 So. Main Street, Salt Lake
City,

Price—At

To

par

and equipment.

Thunderbird Uranium Co., Reno, Nev.

Southwestern Urawum Trading Corp.
Aug. 2 (letter of notification) 1,500,000 shares of com¬
mon
stock (par 17 cents).
Price—20 cents per share.
Proceeds—For mining activities.
Office—Silver State
Bldg., Denver, Colo. Underwriter—Muir, Dumke & Co.,
Salt Lake City, Utah.

Utah** Underwriter—None.
June 25 filed

(EDT)

a.m.

New

Aug. 9 (letter of notification) 17,500 shares of common
stock (par $10) to be offered initially to members
(pol¬
icyholders).
Price—$15 per share. ' Proceeds—For in¬

Western

—

Price-^-At

Aug. 3

Co. Inc.; The First Boston
Corp.; Morgan Stanley & Co.;

Under¬

Pacific Western Insurance Co.,
Salt Lake City, Utah

Pacific

Underwriter

stock.

boldt County, Calif.

Price—At par ($5 per share).

porate purposes.

preferred stock held;
Price—At par
($100 per

bank loans

.Underwriters—

Co., Inc. and Emanuel, Deetjen & Co., both of

For pilot plant

11

and/or

purposes.

York.

mon

—

and preferred stock¬
one share for each

corporate

if Thunder Mountain Mining Co., Orleans, Calif.
Aug. 13 (letter of notification) 300,000 shares of com¬

Southern Bell Telephone & Telegraph Co. (8/31)
July 30 filed $55,000,000 30-year debentures due Sept. 1,
1989.
Proceeds
To repay advances from American
Telephone & Telegraph Co., parent, and for general cor¬

common

Proceeds—To repay $1,000,000

general

&

New

Telephone Co., Norridgewock, Me.
(letter of notification) 2,200 shares of capital
Proceeds—For ex¬
pansion and new equipment. Underwriters—E. H. Stan¬
ley & Co., Waterville, Me.; and Clifford J. Murphy Co.,

writer—None.

«

Blair

Underwriter—Coombs & Co., Salt Lake City, Utah.

stock.

for

and

Somerset

(9/1)

Tights to expire Sept. 30.
-share). Proceeds—To reduce bank borrowings.

vestments.

if Thiokol Chemical Corp., Trenton, N. J.
Aug. 16 filed 35,570 shares of common stock to be offered
to officers and employees under the corporation's Of¬
ficers' and Employees' Stock Option Plan,
-

Co., New York.

in ratio of

subscription by

Under¬

amendment.

June

stock to be of¬

common

B.

Pollock, Chairman of the Board.
writer—Coleman, Fagan & Co., New York.

.

rW*.

•4
A!

Franklin

if Shasta Copper & Uranium Co., Inc.
Aug. 6 (letter of notification) 1,000,000 shares of com¬
mon stock
(par five cents). Price—25 cents per share.
Proceeds—For mining
operations.
Office—612 Dooly
Building, Salt Lake City, Utah. Underwriter — To be
named by amendment.

Underwriter—None.

holders of record Aug. 31
.seven
shares of common
r

time in Sep¬

if Thatcher Glass Mfg. Co., Inc.
Aug. 10 (letter of notification) 2,500 shares of common
stock
(par $5). Price — At market. Proceeds
To

Portland, Me.

May 7 filed 1,004,603 shares of

l

same

Thompson-Starrett Co. Inc., New York (9/9) July 29 filed 145,000 shares of cumulative convertible
preferred stock (par $10). Price — To be supplied by

ties.

weekly bid prices in month prior to
Proceeds — For additions and improve¬
Office—920 S. W. Sixth Avenue, Portland 4,

Pacific Telephone & Telegraph Co.

hi

Offering—May be made

tember.

Co., Salt Lake City, Utah
Aug. 5 (letter of notification) 1,500,000 shares of com¬
mon stock
(par five cents).
Price—20 cents per share.
Proceeds—For exploration and development of proper¬

average

fered for

4y2

and drilling, and payment of bank loans and
advances.
Underwriter—Vickers & Co., New York, on a "best ef¬

Santa Fe Uranium

subscription.
-

common

for each

Marache &

determined

be

fcer,of shares of common stock (par $6.50) to be offered
to employees pursuant to Stock Purchase Plan. Price—

ments.

11

(J. O.) Engineering Corp.
(letter of notification)- 3,500 shares of common
(par $1). Price—$25 per share. Proceeds—To Ryan
Sadwith, Vice-President. Underwriter — Granbery,

iV Pacific Power & Light Co.

;t-

to

convertible

forts" basis.

stock

Salt Lake City, Utah
Aug. 5 (letter of notification) 1,750,000 shares of common
-stock (par one cent). Price—15 cents per share. Pro¬
ceeds—For mining operations. .Office—114 Atlas Bldg.,
Salt Lake City, Utah. Underwriter — Rocky Mountain
Securities, the same city.
*

1

up

Street, Boston

stockholders at the rate of one
shares held; and 70,000 shares
are for account of certain
selling stockholders. Price—To
be supplied by amendment.
Proceeds—For exploration
share

new

Aug. 12

Ol Jato Uranium Co.,

I-

received

if Ross

petitive bidding. Probable bidders: The
Corp.; Smith, Barney & Co.; Merrill Lynch, Pierce, Fen¬
cer & Beane;
Lehman Brothers and Blyth & Co., Inc.
(jointly). Bids—Tentatively expected to be received on
.Sept. 14.

t.'i

(jointly); Goldman

be

Federal

—

lire bank loans and for

'■It

to

49

'

subscription by

(8/25)
Aug. 9 (letter of notification) 260,000 shares of com¬
mon stock
(par 10 cents). Price—$1.15 per share. Pro¬
ceeds—For mining operations. Office—Mercantile Com¬
merce
Building,
Dallas, Texas.
Underwriter — Peter
Morgan & Co., New York.

Products, Inc., Tampa, Fla.
Aug. 5 (letter of notification) 50,000 shares of common
.stock (par $5).
Price—$6 per share. Proceeds—To re-

(I

at

Texas International Sulphur Co.,
Houston, Texas
21 filed 455,000 shares of common stock
(par 10
cents), of which 385,000 shares are to be offered for

if Rocky Mountain Uranium Corp.

Ocean

[I
H

22

June

both of New York.

.Underwriter—None.

ij

Sept.

on

burgh, Pa.

Airlines, Inc., Miami, Fla.
(letter of notification) 1,361,972 shares of com¬

Productions, Inc.
July 15 (letter of notification) warrants to purchase
23,029 shares of common stock. Price — $2 per share.
Proceeds—To two selling stockholders. Underwriters—
Mortimer B. Burnside & Co., Inc. and Batkin & Co.,

Y.

Pressprich & Co.

Bids—Scheduled

shares of 67
preferred stock, of which 100-'
public and 50,000 shares to
creditors. Price—At par ($2 per share).
Proceeds—For
working capital.
Underwriter—Graham & Co., Pitts¬

Rockhill

6

W.

bidding. Probable bid
Securities Corp.;
White, Weld

000 shares will be offered to

None.

Oakite

4r

Co.

cumulative

mon
stock (par 10 cents) to be first offered to stock¬
holders; then to public. Price—20 cents per share. Pro¬
ceeds—For maintenance of equipment, to reduce ac¬
counts payable and for working capital.
Address—Box
242, International Airport, Miami, Fla. Underwriter—

per

Webster

&

bank

Underwriter—To

competitive

Taylorcraft, Inc., Conway, Pa.
April 30 (letter of notification) 150,000

stock

Aug. 5

&

by

program.

Mass.

Resort

ties, | Inc., Baltimore, Md.

['

!>

(jointlly).
a.m.

share.
Proceeds—For
mining operations. Office—2101 S St.,
N. W., Washington, D. C. Underwriter—Mitchell Securi¬

!

'•k

Co.

10:30

construction

R.

(EDT)

a.m.

of com¬
(par 10 cents). Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th Street,
New York 36, N. Y.
Underwriter—Jerome Rosenberg,
Future Estate Planning, 630 McLean Ave., Yonkers, N. Y.

4x Northwest Defense Minerals, inc.
Aug. 12 (letter of notification) 300.000 shares of common
stock, of which 270,000 shares are to be offered to public

[i.
>

&

to

up

and

Sachs

Rapid Film Technique, Inc., N. Y. City
July 30 (letter of notification) 60,000 shares
mon

Stone

Co.

preferred

repay

for

and

ders:
&

Colo.

ver,

Underwriter—None.

determined

be

Underwriters—Peters, Writer & Christensen, Inc. and Garrett, Bromfield & Co., both of Den¬

200,000

Riter

loans

Montrose, Colo.

$4.80 cumulative preferred stock, presently outstanding.

^received

(New Jersey).

Inc., Montrose, Colo.
Aug. 3 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining operations. Office—Bryant Bldg.,

Underwriter—To be determined by competitive bidding.
Probable bidders: Smith, Barney & Co.; Lehman Broths

i v,

the Quinby Plan

Radium Hill Uranium,

(8/24)

Thursday, August 19, 1954

if Tampa Electric Co. (9/22)
Aug. 16 filed 50,000 shares of cumulative
stock, series B (par $100). Proceeds—To

stock of Standard Oil

common

.

in units of one $20 .note and one share of
stock"
Price—$30 per unit. Proceeds—For working capital
etc
Office—Utah Savings and Trust
Building, Salt i ata

City, Utah.

for the Accumulation of

.

.

$10)

Co., New York.

Quinby & Co., Rochester, N. Y.
Aug. 16 filed $1,250,000 of shares in

North-West Telephone Co.

July 30

The Commercial and Financial Chronicle

Aug. 12; rights to expire on Aug. 25. Price—$100 per
$100 principal amount. Proceeds—For working capital.
Office—Niagara Falls, N. Y. Underwriter—Kuhn, Loeb

35

page

I

-•

Glendale,

Ojg|(feF

Calif.

Durst, Inc., 'Los Angeles, C't
:

i

" North Brand

Bou

Wagenselier

-

180,

Volume

Number 5352

>

The Commercial and Financial Chronicle

;..

(713)

Pipe Line Co., Dallas, Tex. ,
.
California Water Service Co.
filed $29,000,000 12-year 6% debenture! -Aug. 10 company sought authority from the California
due Dec. >15, 1964, and 580,000 shares of common stock
P. U. Commission to issue and sell 60,000 shares of pre(par 50 cents) to be offered in units of one $50 debenferred stock, series I (par $25). Price—To be named
tore and one share of stock.
Price—To be supplied by
later.
Proceeds—For construction program.
Underamendment/ Proceeds—From sale of units and 1,125,000
writer—Dean Witter & Co., San Francisco, Calif. Offeradditional shares of common stock and private sales oi
ing—Expected late in September.
~
West Coast

cumulative preferred stock
(par $100)
Underwriter—
To be determined
by competitive bidding Probable bid' tiers: ' (1) For
bonds—Halsey Stuart & Co Inc* Union,

^

20, >1952

Nov/

IkrhoooOO

first mortgage bonds to be used to build

Jjjje

crude oil pipeline.

1,030
Weld & Co.

.

TTninn

Underwriters

Sernritip«?

Corn

and
^cmties Corp.,
Offering—Postponed indefinitely.

York.

—

hoth

a

White,

of

New

both of New

Corp., both of New York.

Offering—Post¬

Oil & Gas Co. /v.;.,;;::,,"'/:

Western Plains

filed 100,000 shares of common stock

(par $1).
Proceeds—To redeem 1,250 out¬
standing" preferred shares ($125,000), to repay bank
loan etc
($2,500); for purchase or acquisition of addi¬
tional mineral interests, leases and royalties in the
United States and Canada and for other corporate pur¬
poses
Office—Glendive, Mont. Underwriter—Irving J.
Rice & Co., St. Paul, Minn.
Price—$4 75 per share.

Uranium Co.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses. Office—351 S. State St.,
Salt Lake City, Utah. Underwriter—Arlin Davidson, 39
Exchange Place, Salt Lake City, Utah.
White Eagle

July 12

Telephone

Park

Winter

Co.

(letter of notification) 3,000 shares of 5% cu¬
mulative preferred stock.
Price —At par ($100 per
share).
Proceeds — For additional facilities.
Office —
132 E. New England Avenue, Winter Park, Fla. Under¬
July 29

writer—None.

July 21 (letter of notification) 9,996,000 shares of com¬
mon
stock
(par one cent).
Price —Three cents per
share. Proceeds—For exploration and development ex¬

Office—323

penses.

Newhouse bldg.,

Salt Lake City,

Underwriter—P. G. Christopulos & Co., same city.

Yankee

Uranium Co., Salt Lake City,

Utah

July 14 (letter of notification) 12,400,000 shares of com¬
stock

mon

Proceeds

(par one cent). Price—Two cents per share.
For mining expenses.
Office — 721 Judge

—

Bldg., Salt Lake City, Utah. Underwriter
Reed Co., Salt Lake City, Utah.

—

James D.

Zenith Uranium & Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,

Boston, Mass.

Prospective Offerings
the authorized

common

a

proposal to increase

stock from 4,000,000 to 5,000,000

present stockholders. Proceeds—To subsidiaries for their
construction

programs.

Underwriter—None.

issue to be dated Sept. 15,1954 and mature Sept. 15, 1984.

Proceeds—For additions
telephone
be

.

Proceeds-To repay bank

.

loaAs

.

and for

Underwriters—To be determined b£

service

and

for

improvements to Bell Sys¬
the nation.
Underwriter—

by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc. and The First Boston
Corp. (jointly); Morgan Stanley & Co. RegistrationPlanned for Sept. 1. Bids—Expected to be opened Sep¬
.

Arkansas
Feb. 22 it

\

,

Louisiana

was

To be named

the

issuance

and

first

sale

bonds

(8/25)

Roman

300,000
per

to

reported

400,000

share.

Bros.

company

shares

Underwriter

holdings of 1,900,000 shares of this company's stock. If
sold at competitive
bidding, bidders may include Smith,
Barney & Co. and Blyth & Co., Inc. (jointly).

50,000

was

shares

$25).

of
—

&

|\| 11M PI I

.

YV/>

a

JllVI I

O

p\\

Aa

UJ

■

r]

cepting

I

LI

]|

LI

$6

.

.

......

mently located

in

,

.

w

,.

the heart of New York

»

s

c

.

-i

great financial

district, Pandick Press, Inc is "open for business" 24 hours
y

o

day,

ays a week.

bearing

a

share

held

or

dividend

complete printing service available.

the

call

bonds.

Establiibcd 1923

4-3900

TOM 6

71 CLINTON ST.,

NY 1-3167




NEWARK, N. J.

price

of

$110 per
15 to Oct. 4,

Equitable

June

Securities

Corp.

was
reported company is planning to issue
$2,000,000 of 15-year first mortgage convertible

Underwriter—Equitable Securities Corp., Nash¬

Hudson

some

ST., NEW

ac-

on Aug. 26.

ville, Tenn.

^MAIHES
WOrtS

(between

choice of

it

9
and sell

\andic/npress. Inc.

a

exchange period will be Sept.
according to present plans and the exchange offer will
maiiecj on Sept.
15.
Unexchanged stock will be
redeemed on Nov. 16.
Price — Of new stock expected to be $105 per share. Underwriters—The First
Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane;

NIGHT&iOTServ,ce;soneofll>ereaSo/«"Pnnle</byPond;cl(" Registration-Expected

.

lower

The

Un^on Securities Corp. and

9uarantees the finest and most

common
an

Webber, Jackson & Curtis
Corp., both of New York.

Holders will be given

28

it

new

...

,

reported
company may be considering
financing. Underwriter—Lee Higginson Corp.,
was

New York.

Indiana &

000 first

was

Michigan Electric Co.

Underwriter

(10/5)

announced company plans to sell

a

proposal to increase the-

The

—

First

.

Boston

...

Corp. will

:

L. A. Brown, President, announced that
plans to offer additional common stock te»
stockholders this Fall on a l-for-10 basis
(wit!:*

oversubscription privilege).

tion program.

Underwriter

$16,500,mortgage bonds due 1984 and 40,000 shares of

—

Proceeds—For construc¬
None.

Registration—Ex—

pected in October, 1954.
New

England Electric System (9/28)
April 29 it was announced company plans to offer to
its

common

stock

on

9,108,824

a

stockholders
l-for-10

common

next

basis.

shares.

Fall

There

additional

are

Proceeds

—

program of subsidiaries.

commoix

outstanding
For

construction*

Underwriters
To be deter¬
mined by competitive bidding. Probable
bidders: Blyth*
& Co., Inc., Lehman Brothers and
Bear, Stearns & Cc^
—

(jointly); Carl M. Loeb, Rhoades &
Thalmann & Co. and Wertheim & Co.

Co.,

Ladenburg;

(jointly); MerriBl
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Cc.
and White,
Weld & Co. (jointly).
Bids—Tentativelyexpected to be received
Northern

July 28 it

on

Sept. 28.

Pacific

was

Ry. (9/20-24)
reported that company

is contemplating
$52,000,000 in new bonds. Pro¬
refunding. Underwriter—To be determine*!
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan
Stanley & Co.; Blyth & Co., Inc^
Bids—Expected to be received late in September-

the issuance and sale of

ceeds—For

Northern

July 2 it
ance

was

States

Power

Co.

(Minn.)

(9/28)

announced company is planning the issu¬

and sale of

approximately $20,000,000 of first

gage bonds due 1964 on

Pulp & Paper Co.

MArkcl 3-4994

July 8 it

25,

company
<

one new preferred share and $5 in cash for each

preferred

share.

(V,nw

shares

$4.50 and $4.70).

30.

June

and Stone & Webster Securities

preferred

-

on

(9/30)
! 1
meeting of stockholders to

National Fuel Gas Co.

•

,

a

and surplus of the company by
$131,250,000"
through the sale of 2,500,000 additional shares of capital
stock (par $20) to stockholders
early this fall for sub¬
scription on the basis of one new share for each three
shares held as of Sept. 24; with rights to expire on Oct.
22.
Subscription warrants will be mailed on or about

Sept.

stock.
Price—$1
Co., Chattanooga,
•

Bids—Expected Sept. 30.

Sept. 20 to vote

on

head group.

-

fj| y/

(jointly).

.

;

Georgia Power Co. (9/15)
Aug. 3 company applied to Georgia P. S. Commission for
authority to refinance its outstanding 433,869 shares of
$6 preferred stock by issuance of an equal number of

ipiJT

Hutzler

capital

reported company plans to issue and sell
of 5%
cumulative preferred stock' (par "

Underwriters—Paine,

$24,Knoxville & Cincinnati Division 4%
May 1, 1955, and for general corporate pur¬

Aug. 10 directors authorized

plans to sell around

common

Elder

Underwriter—To be de¬

Atlanta,

&

be held

•

ftl

October.

National City Bank of New York

:

v

.;

July 2 it

Brothers;
(jointly).*

Co.

Underwriters—May be determined by competitive*
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomons

General Telephone Co. of Upstate New York

Co.

reported Cities Service Co. may sell Its

&

poses.

<

and

Beverage Canning Co. of Tennessee
was

Lehman

Drexel

was

bonds due

Johnson, Fort Lauderdale,
Fla., and possibly Aetna Securities Corp., New York.
it

Corp.;

and

stockholders.

610,000

it

15

in

Inc.

Nashville RR. (9/30)
reported that the company may issue and
sell late in 1954
$30,350,000 of new first and refunding?"
mortgage bonds due 2003.
Proceeds—To retire

Beverage Canning Co. of Florida
was reported
company plans to issue and
300,000 shares of common stock. Price—$1 per share.

June

Securities

Co.

Louisville &

General

General

to

July 7 it

certificates, series M, to

—

&

Barney & Co.

Un¬

received

Underwriters

Webster

bidding.
Probable bidders::
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blytl*
Co., Inc. and The First Boston Corp.
(jointly); Smith,,

be dated Aug.: 15,
1954 and to mature in 30 semi-annual
instalments up to
and including Aug, 15, 1969.
Probable bidders: Halsey,
Stuart. & Co. Inc.; Salomort Bros. &
Hutzler; Kidder,
Peabody & Co.; Blair & Co., Inc.
15

Underwriter—To-

&

by the company at Room 2008,
Street, New York 6, N. Y., up to noon (EDT)
Aug. 25 for the purchase from it of $5,700,000 equip¬

sell

&

Rollins

finance construction
program.
termined by competitive

derwriters—May be determined b.y competitive bidding.
Probable bidders: Morgan
Stanley'& Co., and W. E. Hutton & Co. (jointly);
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Blyth & Co., Inc. and The First Boston Corp.
(jointly).

June

construction.

—

To repay bank loans and for construction
program.

trust

new

Long Island Lighting Co.
April 20 it was announced company plans later in 195^>
to
issue $20,000,000
mortgage bonds.
Proceeds
To

Dayton Power & Light Co.
Aug. 7, Kenneth C. Long, President, announced that the
company plans to
issue and sell $15,000,000 of first
mortgage bonds due 1984 in late September. Proceeds—

ment

offering, in Aprils

Proceeds—About $1,250,000, for
working capital, etc. Underwriters—Lehman Brothers of.
New York, and
Farwell, Chapman & Co,, of Chicago.
1

Co., Jersey City, N. J.

on

At

Lindsay Chemical Co.
Aug. 2 it was reported that this company is said to beconsidering
the
sale
of
additional
common
stock

—

be

for

Bids—Expected

in connection with the acquisition of Uranium
Mines of
America, Inc. stock. Underwriter
May be Tellier &

will

stock

basis.

2,286,784 shares-

by competitive bidding. Probable bid-((I
Halsey, Stuart & Co. Inc.; The First Boston
Corp.;

Stone

Mines, Inc.

authorized

l-for-10

a

loans and

Blair,

Loeb, Rhoades & Co. and Lee Higginson Corp. (jointly).
up to 11:30 a.m. (EDT)
on
Sept. 29 at City Bank Farmer Trust Co., 22 Wil¬
liam Street, New York
15, Nj Y.
Registration—Planned
to be filed on or about
Aug. 31.
*

$6,000,000 convertible debenture

an

common

determined

ders:

Company (jointly); Salo¬
Hutzler; Union Securities Corp. and Glore,
Forgan & Co. (jointly); White, Weld & Co.; Carl M.

stockholders

or

were outstanding

be

Bros. &

of not to exceed

l-for-9

a

30,^ 1954, there

bank

Read & Co. Inc. and The Ohio

July 23

reported company plans to issue and sett
stockholders some additional common

on

* Laclede Gas Co.
Aug. 6 it was reported company plans to issue and selt
$20,000,000 first mortgage bonds. Proceeds—To repay

company

Consolidated Uranium

re¬

.

1953, was underwritten by Blyth & Co., Inc. and J. J. JL.
Hilliard & Sons and associates.

sell

mon

either

Underwriters—Previous

(9/29)
plans to issue and
$10,000,000 of first mortgage bonds due 1984. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Dillon,
announced

was

common

stock,
April

Columbus & Southern Ohio Electric Co.
was

its

to

Registration—Expected about Aug. 31.

Aug. 9 it

Expected to be

—

Kentucky Utilities Co.
June 21 it

Proceeds—To repay bank loans and
for new construction.
Underwriters—Dillon, Read &
Co. Inc., New York, and The Ohio
Company, Columbus,
Ohio.

(jointly);

Equitable Securities Corp. Bids
ceived in October or November.

later.

Tenn.

_

Gas

Inc.; The First Boston Corp. and Lehman Brother®
(jointly); Union Securities Corp. and Merrill
Lynch,
Pierce, Fenner & Beane (jointly); Blyth &
Co., Inc.;
Kidder, Peabody & Co. and White, Weld & Co.

Columbus & Southern Ohio Electric Co.
(9/20)
9 it was announced company plans to issue and
sell 200,000 additional shares of common
stock.
Price-

determined

tember 21.

Co.

Aug.

•

American Telephone & Telegraph Co. (9/21)
Aug. 18 directors authorized a new $250,000,000 bond

tem

--

Delaware, Lackawanna & Western RR.

shares to enable the company to sell additional shares
when necessary.
Offering will probably be made to

To

-

140 Cedar

April 28 stockholders approved

I

> —

„

Colorado-Western Pipeline Co.
Aug. 3 the Colorado P. U. Commission authorized com¬
pany to build a $21,500,000 natural, gas
pipe line, in
Colorado, to be financed through sale of about 70% of
bonds and 30% of equity capital. John R.
Fell, a partner
of Lehman
Brothers, is a Vice-President. 1

Bids

American Natural Gas Co.

-

_

Bids—Expected to be received

Mining Corp.

Uranium

World

Utah.

.

.

construction.

new

indefinitely.-*:" J';v.;

Mav 24

.

t

Underwriters—White, Weld & Co. and Union

{Securities

poned

.

Securities Corp.,
Goldman, Sachs & Co and'White Weld
&
Co.
(jointly); The First Boston Corp.* Harrimau
«*-■»— & Co. Inc.; — •
•
Ripley « Kuhn, Loeb & Co.; (2) for » preferredThe First Boston
Corp.; Smith, Barney & Co.; Lehman
Brothers;
Union
Securities
Corp.
Registration —Plann'ed for Sept. 3.
Bids—Tetnatively expected to bereceived up to 11 a.m.
(EDT) on Oct. 5

,l'ln0,s E,ec*ric & Gas Co. r
Dec* 9 u was announced company intends to offer and
rell around ^ middle o{ ]g54 an >
?4joqp,000 first
a

mortgage bonds.

West Coast

Junpline

~

31

or

mort¬

about Sept. 28. Underwriters-—

To be determined

by competitive biddings. Probable bid¬
Halsey, Stuart & Co. Inc.; Lehman Brothers an*!
& Co.
(jointly); Smith, Barney & Co.; Glare;
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane;
Kidder, Peabbdy & Co. and White, Weld & Co. (jointly);
ders:

Riter

Continued

on

page

3&

,'l{
'M

38

(714)

The Commercial and Financial Chronicle

.

.

Thursday, August

.

19 19
>

Continued

from

v
1

^ Savannah Electric & Power Co. (10/26)
Aug. 10 it was announced company plans to sell $5,000,000 of first mortgage bonds,
$3,000,000 of debentures and
30,000 shares of $100 preferred stock. Underwriters—
May be determined by competitive bidding. Probable

37

page

Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and
Wertheim & Co. (jointly).

iI

Pacific National

bidders:

Bank, San Francisco, Calif.

The

Aug. 6 it was announced stockholders were to vote Aug.
16 on approving a proposal to increase the authorized
common stock (par $20) by 47,685 shares.
The common
stockholders are to be given the right to subscribe on or

I t

before
held.

for one new share

Sept. 9

Price—$28.50

share.

per

tire

outstanding preferred stock and the
be added to capital and surplus.
Pembina Pipe

Line Co.
announced

if t

Corp.

April

5

in

to

Alberta

i|
>

•>'(

(Canada)
company has been granted

1

<(

*'

A

Public Service Co. of Colorado

*>))
*

1(

Aug. 1 it

if

To

K

be

and

for

determined

A

■

li'l

.11
a

&

by

additional

(first

to

stock.

common

shares

Savage Industries, Inc., Phoenix, Ariz.
Aug. 9 it was announced company plans later this
1•rt'

'•;v
■\1

issue

lative

and

sell

additional

an

convertible

preferred

block

of

&

Pacific

of

Co.

that

June

14

stock to

be

may

there

still

is

demand,

mate in

a

A

the

to

issue

an

is

the

business

is

Goes

•1
■

J t
IV*-

ment

the mid-summer cross-roads with

those

of

seems

destined

standstill
of

efforts

tribute
cent

of

at

a

portions

which remnants

of

re-

Boston

available

Edison

and

this

week's

small New Jersey Power
Light offering. Another such
issue dropped from the list when

&

u

'■!

books
&

A

closed

on

is

not

the

Missouri

immediate

especially

writers

Power

calendar

heavy,

under-

not concerned by the
tieup of their capital
in such offerings. Yet it is evident
are

temporary
that

investors

around

for

are

places

scratching

to

to

run

put

their

its

is

mirrored

in

out

The

the

that

so

indicated
per

the

to

spread

bid

price

a

there

of

was

only

of
an

$3.10

The

the

lines.

100.526

for

for

repriced

group

public

offering

at
yield of

indicated

an

2.97%. Buyers have been showing
renewed reluctance to go through
a

3%

basis and,

servers

were

closely for

a

accordingly, obwatching this one

clue to

change,

any

Next Week's Issues
With
men

of

reason

slim

a

for

new

great

many

institutions

portfolio
by

absent

vacation, the currently
issue

1

g
1 0
one the
seeks when,
\

market.

calendar

is

not

too disturbing. In fact in a way
it is helpful since it turns the inab~ terest of buyers toward material
and already available.

But feeling in some
quarters Is
that the market
has arrived at
the point
where, unless

moving

something

could go lower
before

higher.




These

interests

-vr

.

WeCk °"ly tW°
opened
of

in

may

sell

,SSUes °f
are on the roster> the
which

bids

will

be

Tuesday, taking the form

$25,000,000

Brothers, Bear, Siearns & Co., Reynolds &C
L7F. Rothschild & Co:
(jointly); Union Securiti
Corp.; The First Boston Corp.; White, Weld & Co. &
Kidder, Peabody & Co. (jointly); Smith,, Barney & C
and Robert W. Baird & Co.
(jointly); Blyth & Co., In
Bids—Expected about Oct. 5 with registration on
about Sept. 9.
and

July 28 it

The

Mohawk

following

have

of

offered

for

Power
Corp.
investors will

day

chance

a

to

look

$20,-

over

debentures
Food

due

Fair

to

be

Stores.

The

following week will bring
to market only one large
offering,
$55,000,000 of Southern Bell Tele¬
phone & Telegraph Co. deben¬

Continued

from

bonds

of

Public

Service

Co.

against

which
70

the

kind

cannot

ever

Corp. (jointly); White, Weld
Co.; Kidder, Peabody & Co.; Kuhn, Loeb & Co.; De
Co.; The First Boston Corp. Previous coramo
stock

has

built

up

over

easily duplicated
dollar

in¬

are

with

under

required to manu¬
large scale machin¬
exacting
conditions.

Expensive raw materials
quired and high priced
tories

to

must

be

are

carried.

re¬

inven¬
It

also

must be
such

equipped to distribute in
way that customers in all

a

parts of the world

uniform

can

expect to

and

dependable re¬
sults. Many opportunities to
snap
a
picture occur only once in a
life

time

fail

to. perform

repeat

so

for

film

a

as

must

never

prescribed.

emphasis:

that

I

East¬

man's infallible standards of
qual¬

ity

require

policy
er's

the

which

interest

assures

in

dividend
the work¬

wage

the

company's

the

A competitive
wage divi¬

success.

dend

on

the

other

hand

could

only

be

pany

which has already obtained

a

fair

paid

degree

by

of

a

similar

success

com¬

or

the

underwritten

was

would

be

-not

worth¬

Eastman's

seems

conclude1

recreation

that

foundation

of

by

portography

made

of

sales

to¬

sidiaries

as

these

industry.

to have

to

my money in¬
organization1 which

duplicate

and

in

a

which " cannot be driven

poverty by

q^^jj^sive

competi¬

In the free world that

seems

be

com¬

un¬

bridled sway.
is fine and as
it should be, because only under
such
conditions does
the
con¬

T^is

the .most

sumer

receive

money
ducer

and only:* the efficient
reaps

a/

for

his

books at

Jan.

1

exchange

equivalent c
$11,297,783 but only paid $4,961754 in dividends to the parent
In my opinion Eastman's foreif
prospects
"a

lot

Although

has

it

since

years

built

the
still

guiding spirit w
its manage¬

in his lifetime.

in

their production and distribu¬
tion will be the: most certain of

leader.

producing

peared

profits.

time-tested
for

Eastman

delivering

uct

the

The

world

rich fruit in

a

rugged,

reputation

dependable prod¬
over

should

the/coming

bear

make
In

remains

company

In

century,

the

successfi
advertising tc

it

so

outstandiri
^
"Kodak" af

an

early part of

the

name

first

the

on

operatirj

principles whic

great

to

be

to

seems

the

used

2

Georj

company,

requiring

he

been over
of

death

the

Eastman, the
ment

technological

up«

gain but little to lose
(about 30 cents per share in boo
value or annual income).

under

most

summed

be

can

to

articles crudely .made will earn a
minimum
profit- Those articles

the

tot!

a

million \
rates. This in
$80

vestment earned the

pro¬

integrated management

have

assets

almost

Simple

profit.

(Whii

equity in foreign sul
only carried on tl
$5,250,720, on their ow

of

an

accoui

is

value

in

own

the parent's

or jq

and

Bost

million.

$140

books

skill

First

their

on

almost

day the greater parhof the photo¬
graphic material? made are used

hard

The

the world.
Last year Eastman
foreign subsidiaries purchase
$28 million in goods from tl
American company and beside

the

is

dawning; -cb'rhmercial
petition is going
to have

the

on

offer

Corp.; Merrill Lynch, Pierce, Fenner & Beane; Robe
W. Baird & Co.,
Inc.; and William Blair & Co.

position in a growing
to offer an in¬
vestor both security and growth
prospects.
Investors should not

to

confidence

multi-million

facture

construction. Underwrite

new

bonds, to be determined by competitive biddin
bidders: Halsey, Stuart & Co.
Inc.; Merr
Lynch, Pierce, Fenner & Beane, Salomon Bros. & Hut

For this reason,

company

contamination

be

outstanding first mortgage 4%

for

Witter &

industry

tion.

An organization of this

because

ery

is

customer

Kodak

years.

and

unequaled

to

I

produce

$8,000,000
1983

Probable

dividend
while.

vested

I Like Best
and

refund

—For

I prefer

2

page

Security

uniformity

reported company is considering the i
about $12,500,000 new securities.
Proceeds
was

bonds due

common

is

The

of

suance

To

September

additional

,

a.ny Slze
^rst» on

Lehman

Co., Wilmington,

vestments

successful

issue

Snvtht«rtVe-DlrluestoA? t(? re.ach for
}ue kuyin? has

happens, it

issue

Niagara

the

bond, indicating that bidders
thinking pretty much along

same

planning issu
sale of $18,000,000 first
mortgage bonds d
Proceeds—To redeem $8,000,000 4% first
mortga
bonds sold last year and
$10,000,000 for new constru
tion. ■--Underwriter—'To be determined
by competitii
bidding. Probable bidders: Halsey, Stuart & Co. In
Equitable Securities Corp.; Salomon Bros. & Hutzle

Underwriter—If underwritten, it
Del. Two previous
stockholders were not underwritten.
&

were

be-

buying side, though withany tendency on the part of

f
11, it comes into

and

alert

runners-up

99.7099

the

sorbirif?

to

plans

get

havior of the
secondary corporate
market where
emphasis has been
on

out

(10/5)

ler and Union Securities

company

investors

$30,000,000 of first and
bonds to carry a 3%

funds.

This

invest-

coupon.

Light Co.'s recent offering.
Since

institutional

Light Co.

1984.

Wisconsin

yield and

refunding

those of Consolidated Natural

are

of

Power &

was announced management is

and

ance

Inc.

reported

bankers paid Southern California
Edison
Co.
a
price of 100.0199

flotations

are

Services,

was

finish. This became evident when

dis-

for

recent

ideas

was

Wisconsin

July 26 it

professionally

to

syndicates

among

bankers'

it

announced company plans
perman
Proceeds—To retire bank loans.
Underw
er—Previous bond financing, ih 1922
was handled
Dillon, Read & Co. Inc. '*

Co.

On

largely

emissions.

new

Gas,

A

of

much

consisting

left-over

Listed
-1

pretty
and

Single

between

at

operations

\

i'

i

investment

RR.

tures.

struggle

The

The

buyer

rated

Struggle

1

for

ulti¬

Triple A.

or

"if

'irt

is

say,

for

quality and that it makes

difference

whether

:a

they

than

28

finnacing.

000,000

rather

little

June

stockholders.

disposi¬

a

(jointly); Blyth & Co., Inc.; Lei
Bear, Stearns & Co. (jointly).

Wheeling Electric Co.

and

announced

Laird

3% basis.
The

Corp.

be

Jet

it

announce

Se¬

Co.

was

Welex

year

"back away" from yields below

yield

Securities

&

Pro¬

construction.

$20,000,000

the part of institutions to

on

Webster

new

determined by competitive bidding.
Halsey, Stuart & Co. Inc.; White, Weld
Drexel & Co.
(jointly); Morgan Stanley &

and

offerings to

note

for

and

and Gin

Forgan

Brothers and

Halsey,
Stuart & Co. Inc.; Stone & Webster Securities
Corp. and
White, Weld & Co. (jointly).

cumu¬

Coast

m

improvements. Underwriters
May be
by competitive bidding. Probable
bidders- *
Stuart & Co. Inc.; Union Securities Corp

sey,

total of 34,807

a

reported company plans issuance and sale
of debentures later in 1954 (in addition
to $25,000,000 bonds filed
May 26 with SEC). Proceeds—
For new construction.
Underwiters—To be determined
by
competitive
bidding.
Probable
bidders:

Co., San Francisco, Calif.

tion

-3

(10/6)

Tennessee Gas Transmission Co.

stock

gross around $250,000.
acquisitions. Underwriter—Probably

curities

75-cent

already

and for future

Co.; Kuhn, Loeb & Co.

(par $1), expected
Proceeds—For expansion and

to

&

Pacific

was

derwriter—To

Blyth & Co.,

—

a

proposal to allow m
to sell first and refunding bonds
without obtain'
approval of preferred stockholders. It is
planned to
sue&nd sell $6,500,000 of these bonds.
Proceeds:—To
imburse company for capital
expenditures
pany

Probable bidders:

of

Underwriter

Junfe 30 stockholders approved

company has applied to the
authority to issue and sell $21,091,000 first mort¬
gage bonds due Jan. 1, 1996.
Proceeds—To reimburse
treasury for capital expenditures previously made. Un¬

May 24 it

800,000

m!

Western Pacific RR. Co.

of

ICC for

Inc., San Francisco and New York.

to

indebtedness

Inc.; Stone & Webster Securities Corp. and Dean
& Co. (jointly); Kidder,
Peabody & Co. Regis¬

Southern

competitive

stockholders)

bank loans

repay

July 28 it

Underwriters—

announced company plans to offer early

was

October

in¬

tration—Planned for Oct. 8.

San Diego Gas & Electric Co.
in

'k

Co.

Witter

(10/4-8)

construction.

new

which

5,000,000 to

ir Sierra Pacific Power Co.
Aug. 16 it was reported company plans to issue and
sell $4,000,000 first mortgage bonds.
Proceeds—For con¬
struction program. Underwriters—To be determined
by
competitive bidding.
Probable bidders: Halsey, Stuart

first week in October.

Aug. 3 it

authorized

Power Co.

Underwriters—Stone

bidding.
Probable
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
The First Boston Corp.; Dean Witter &
Co.; Harri-,
man
Ripley & Co., Inc. and Union Securities Corp.
(jointly); Lehman Brothers; Kidder, Peabody & Co.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly).
Registration—Expected in September. Bids—Expected

it

the

from

Dean Witter & Co.

bidders:

'■'*1

and

proposals

stock

expire Oct. 22.

was

loans

approved
common

bid?

Stanley & Co. Meeting—Stockholders wiil
vote Sent8
on
Approving issuance of new bonds.
Bids—Expect
Sept.' 8.

reported company plans to offer to com¬

was

ceeds—To

announced company plans to issue $20,000,000 first mortgage bonds, due 1984. Proceeds—To
repay
bank

improve™*

Underwriter—To be determined
by competitive
Probable bidders: Halsey, Stuart &
Co. Inc •

Bids—Ex¬

22.

stockholders of record about Oct. 6
shares of common stock; rights to

—

t

Sept.

mon

—

...

for

bonds only);
Securities

(for

Webster

from

Sierra Pacific

,

i

shares

company

Aug. 16 it

Progas of Canada, Inc.
July 13 it was announced company plans to issue and
sell to its stockholders an additional 1,200,000 shares of
capital stock on the basis of slightly less than one new
share for each four shares held (with an oversubscrip¬
tion privilege). Price—At par (2,5 cents per share). Pro¬
ceeds
For capital improvements and working capital.
Underwriters
Consolidated Coppermines Corp. and
Burnham & Co., New York, have agreed to purchase, in
proportions of two-thirds and one-third respectively,
any of the unsubscribed shares.

1;

&

—

termined

& Co. of New York.

K'f '

Inc.

company plans to

series B, due 1976, and the remainder used
to reimh
company
for expenditures for capital

$25,000,000 to $50,000,000.
The
company has no specific financing program.
Under¬
writers—Previous..offering of $24,952,800 3% convertible
debentures, in September, 1953, was underwritten by
Drexel & Co., Smith, Barney & Co. and Merrill
Lynch,
Pierce, Fenner & Beane.

Edmonton.

to

stockholders

the authorized

10,000,000
the

Financing will be handled
jointly by Mannix Ltd. of Calgary, Dome Exploration
(Western) Ltd. of Toronto, and Carl M. Loeb, Rhoades

n

Co.

Stone

(9/8)

announced

was

$16,000,000 of first mortgage bonds due
197Q V
To redeem
$12,632,000 of first mortgage h

ceeds

Paper Co.

27

creased

April 14 it was
the right to obtain a permit to build a 72-mne pipe
line to transport crude oil from the Pembina Oil Field

J

&

Corp.;

Registration—Planned

Scott

re¬

remainder

Stuart

Boston

sell

pected Oct. 26.

for each two shares

Proceeds—$340,000 to

Halsey,

First

Western Maryland Ry.

July 13 it

electric ac

vertising
sign
to
be
used «
Trafalgar Square in London, arj
Kodak originated the first
placaij

great international trade. Eastman

which appeared on a Paris
bus. Today the company's

Kodak

for

Company

conceived
company

capital

as

and

was

was

literally

international

an

at

epoch of

time

one

expressed in

£

its

ster¬

ling.

tion

in

colar,

New

York

City.

Kodachrome,

Kodj

Tentfj

Recordak, ar;
trade naflj
rapidly gaining v-'ic

Chromspun,

One

trines

of its
was

founder's great doc¬
"the development of

foreign trade will
eggs

its

omitf
genit
advertising is well revealed.J
display at Grand Central jS#

and

same

pad

time."

the
So

distribute

our

basket
it

is

not

sur¬

England, France, Germany, Aus¬
and

that

Canada

besides

a

string of processing plants around

are

are

new

public acceptance.

the

at

prising that today Eastman has
large manufacturing plants in
tralia,

Ektachrome

George
as

1880,

American

Eastman,
was

one

as

of

far hac
the hr-

manufacturers

to

dj

employ a chemist
improve his product. Today tf
company employs over 600 tecj
nically trained people—plus supi

liberately

I

Number 5352

ime

180

ing

staff

..

The Commercial and Financial Chronicle

.

vegetable fats and is contained in

in its research

—

half of the lard sold in the United

and last year spent

ratories

States.

research and $9
product development,
lastman has built its sales up
(most three-quarters of a bildollars a year, yet its capital
consists of nothing but cornmillion
ion for

on

except for

stock

larly
of

In

may

new

the

has

example, so that the country

the

produce a steady stream of
ntists and v engineers for all

the

ht

from

the

This technically-minded
asorship has caused the com-

gumming,

one-third of its
s are other than photographic,
ut Eastman's
diversifications
e
not been inconsistent and
w
a
true relationship to its
over

chemical

tral

Its

processes.

products

-photographic

its film,

high

explored
Besides

vacuums.

developed

which

has

to

Eastman's

experience

niques

are

other

many

Products

and

Industries

and

these

division

operations

a

Distillation

called

Products Industries has been

cre¬

yl alcohol and acetic acid. In
er to get cheap and
abundant

chemical

which

to

open

plant

new

petro-chemical

king

in

ials

a

raw

northeastern

Its

ngview.

for
ma-

Texas,

plastics

at

find

now

[e in making such widespread
oducts

automobile

as

telephone

eels,

steering

instruments,

d toys.

[Eastman probably has had

to

cellulose

generally for
research.

for

25tf

chemical
broad
It

some

also

313

of

stock

record

the

the

at

business

company

The

MIAMI COPPER COMPANY
61

Secretary

WOMAN

NEW

4,

YORK

predict

to

Eastman's

DIVIDEND

it

flict

20

a

hylene
ost

million

plant
This

-xas.

is

at

Longview,

interest

and

of

Directors

of

Board

newest

all

of

and

plastics.

company

ie

company has an established
sition in the
plastics field, and

ere

are

already

anufacturers

uyethylene
One

of

10

August

on

1954.

30,

Directors

of

Board

The

of record at the close of

to stockholders

of

this

company

on

of one
Stock
payable September 21, 1954 to

August 18, 1954, declaved a stock dividend
per cent on the $5.00 par value Common
of
of

the

company,

August 30,

on

EDWARD

nthetic

for
.

superior

resins

its
' /

brands

In

of

one

A dividend of twenty-five cents

in*

astic

gation.

'of

Directors

has

declared

($.25)

Sept.

.

(35c). per

share,

August

1954.

27,

will

of

record

L.

G.

REGNES, Secretary-Treasurer.

pipe

and

oi

fibers.

experience

photography,

le

m

beat

the

Eastman
field

/romspun acetate, a
t
0,r dyed before it is
made

was

with

synthetic
spun

and

fadeproof.

Another branch of fine
organic
emicals into which it is
digres8
stems
from. the
ge

compapy's

organic
from

coal

tar

and

used as a Photographic
eloper. Today a large share of
production is

used

to make

a

H°Und for synthetic rubber,
iJ-nif 6r *s a fertilizer for citrus
a"da
constituent of poultry

!

iaj^* Others
5

an

are used in making
Still another

aP-d ^ricks-

antioxidant for animal and




dividend

interim

Ar second

New

the

on

dividend

outstand¬

ing shares of the Company's 3V2 %
Cumulative Preferred Stock, Series

quarterly

dividend of
thrde-quarter
share on the
of

the

on

Cyanamid

Company

today

quarterly dividend of
(50?) per share on the
outstanding shares
of the Com¬
mon

a

cents

Stock

of

the Company,

pay¬

to the
holders
of
such stock of record
at the close of business September

able

1,

September

24,

1954,

1954.
f

New

R. S. KYLE, Secretary

York. August 17,

dividend

December
Directors

Secretary

quarterly

payments

1904.
has also

assam

de¬

of

dividends

the Preferred Stock

on

—$4.50 Series and 87'/2< a share on
the Preferred Stock—$3.50 Series, both
payable

October

holders of

25,

1954,

to

stock¬

record at the close of business

1954.

October 8,

>

L. dup. COPELAND,

Secretary

California

the

Dividend Number 11

September, 1954.

102 must be deposited
National Provincial Bank Lim¬
No.

Court, Strand,
London.
W.C.2., for examination five clear busi¬
ness

Savoy

(excluding Saturday) before

days

A.

D.

for the quarter

Secretary.

1954.

"

mav

of Article XIII

be entitled by

(1) of the Double

the United
Kingdom, to a tax
under Section 131 of the United
between

States and the United
credit

States

Internal

15, 1954, payable

September 15, 1954, to hold¬
ers of 4.40% Cumulative Pre¬
ferred Stock of record August

who

Treaty

tember

share
ending Sep¬

Revenue

Code

can

by

application to Guaranty Trust Company
of New York obtain certificates giving
particulars of rates of United Kingdom
Income Tax appropriate to

mentioned dividends.

all the above

23, 1954, and

a

regular

quar¬

terly dividend of 37Mj cents
per share, payable September
5, 1954, to holders of Com¬
mon Capital Stock of record
August 23,1954.

of

Board

The

Diamond

Company have on

dividend of $1.10 per

Westminster House

Taxation

Common Stock

The Directors of

August 13, 1954, declared a

By Order
McCORMICK,

SERIES

DIVIDEND NO. 30

Regular Quarterly
on

STOCK

181

CUMULATIVE PREFERRED STOCK
4.32%

Dividend

NO.

4.40%

on

Cumulative Preferred Stock

Alkali

payment is made.
DATED 10th August, 1954.

virtue

ORIGINAL PREFERRED
DIVIDEND

payable

also be

will

next

Company

DIVIDENDS

the 5% Preference Stock (less
for the year ending 30th

Stockholders

The Board of Directors of Amer¬

declared

B. H. wlniiarff

August 18, 1954

of

7, Millbank

1954.

common dividend

fifty

September 10, 1954.

DIAMOND

dividend

half-yearly

London, S.W. 1

ican

to stock¬
the close of busi¬

of the

first

Tax)

Com¬

pany's 3%% Cumulative Preferred
Stock, Series C, payable October 1,
1954, to the holders of such stock
of record at the close of business
September 1,

the

of

share

a

on

Corporation,

1954,

century without

to

regular

$1.12'A

a

of

series

back

made.

usual

ited,

a

a

clared

half

payments,

Board

I,

Edison

the 30th

Company
today
quarterly dividend of
eighty-seven
and one-half
cents
Cyanamid

and

in

October

holders of record at
ness

share on

(37per

cents

the Common Stock of the

payable

Southern

Coupon
with

ninety-three
and
cents
(93J/4(I)
per
outstanding shares

The

on

obtain this

1954.

this date

dividend of thirty-seven and

Company's 200th consec¬

marking

break

one-half

a

London,

September

Amer¬

B,

Stock

declared

examination five clear busi¬
days (excluding Saturday) before

Income

COMPANY

(8IViO Per share on the

Dividend Notice
Board of Directors has

The

E.C.3., for

2l/z%

ican

Stock,

the

deposit Coupon No. 221
Guaranty Trust Comoany of

LOUISIANA

must

York, 32, Lombard Street,

The

declared

on

30th September, 1954.

on

payment is

preferred

August 23,

on

unbroken

September 1954 of five pence for each
Shillings of Ordinary Stock, free of
United Kingdom
Income Tax will be

ness

The Board of Directors of

this

quarterly dividend on the Common

dating

ending 30th

Ordinary Stock for the year

with

AMERICAN

molecule

du«i

SHREVEPQRT,

quarterly interim

the third

utive

a

PREFERENCE
TO BEARER.

Holders of Bearer Stock to

production of hydroquinone,

anufactured

WARRANTS

dividend

but

Having
outin dyes for

AND

ORDINARY

payable

of

raw materials which
beautifully into its line
P°lymeric structural materials,

a

HOLDERS

TO

Ten

Wis.

August 17, 1954

probably

CORPORATION

☆

business

LIMITED

GAS

UNITED

Common Dividend

on

holders

fit

anding

Consecutive

and Secretary

DIVIDENDS

OF

NOTICE

STOCK

r.

•n
m

200 1I1

Vice President

Detroit, Mich.

of thirtythe capital
stock (without par value) of the' Corpora¬
tion, payable September 15, 1954, to stock¬
extra dividend

and an

has

finished

Beachley,

upon

This is the

oil fields nine

Eastman

make

E.

Secretary-T reasurer

F. Hall,

TOBACCO COMPANY,

tonnage
ospects in handling salt water
1
ships and for agricultural ir-ver

to shareholders of
business
on
August

1954,

Charles

dividend
for 1954, payable September 14, 1954,
to stockholders of record at the close of

experitransportation,

liquid
pipe
also

10,

the close of

1954. Checks will be mailed.

shareholders

payable Oct. 20, 1954 to

OF

Milwaukee,

quar¬

the
Corporation,

Burroughs

of

stock

declared

been

has

share

quarterly dividend of twenty-five cents (25c)
cents

a

August 16, 1954.

day $1.00 a share on the Common

DIVIDEND

des of three inch welded
pipeie have been
laid as an
ent

September

27,

CASH

219th CONSECUTIVE

COMPANY

meeting held today, declared

record at

President

Burroughs

a

terly dividend of 75 cents per share on the
Common Stock of the Company, payable on

MAX HOFFMAN

as

is

our

COAL
at

E. I. DU PONT DE NEMOURS & COMPANY

leading the
nd in the
development of plastic
pe.1

PITTSBURGH

CONSOLIDATION

Corporation has paid
quarterly dividends without
interruption since its first
public offering.

Secretary

FRAIIER,

The Board of Directors of

Ludman

record at the close
1954.

Scock 01

of Common

business

Treasurer.

,

Corporation has declared
the usual quarterly dividend of
10c per share to stockholders
of record Sept. 15, 1954, payable Sept. 30, 1954.

18, 1954, declared a special dividend of
cents per share on the outstanding Common
of the company payable September 21,

BRITISH-AMERICAN

share

GREENBURGH,

G.

JOHN
*

Stock

fBRlCGS&STRATTON)

other

many

waiting

output.

its

the close of business September 8,

Wilmington, Delaware, August 16, 1954

five

22,

1954.

on

CORPORATION

per

September

1954, to stockholders of record at

The Board of Directors of Lud-

August

August 13, 1954

Board

fifty

man

this

of record at the close of business

NOTICES

BRIGCS & STRATTON

The

of

has been

share

per

payable

declared,

Florida

Series Cumulative Preferred Stock of the
payable October 1, 1954, to stock¬
of record at the close of business on
September 15, 1954.

Sheldon

con¬

poly-

pound

the

glamorous

would

it

announced

dividend

company,

24, 1954.

plastics for its own use
spools, reels, camera boxes/
ays, display sheeting, etc. Last

cents

51/2%

a

pro-

Broadway, New York 6, N. Y.

quarterly

(5(ty)

North Miami,

of this company on
declared the regular quarterly
per share on the cutstandmg

pes of

sar

A

CORPORATION

Y,

N.

Directors

1954.

18,

dividend of $1,375

Secretary

July 7, 1954.

STREET,

of

Board

August

a

specialized knowledge in chemis¬
try will carry them. They could,

many

ROBERT C. SULLIVAN,

Sep'

CITY INVESTING COMPANY
BROAD

1954, to

28,

September 1, 1954.

on

1954.

ROGER HACKNEY. Treasurer

The Board of Directors has declared

fabricates

of business

DIVIDEND

impossible

where

Copper Corporation,pay¬
September

on

stockholders of record at the close

Company, payable

close of

H. B. Pierce,

25

a

today by

able
dividend

a

per share on the Common Stock
payable September 10, 1954, to holders of
record August 31,

($1.25)

Cents

Kennecott

tember 10, 1954.

of

such

on

distribution of One Dollar

Twenty-five

share has been declared

on

DIVIDEND

a

of

and

7{5y

special

fruits

technology

York, N.Y.

August 14, 1954

NOTICES

September 30, 1954, to stockholders of

scale.

is

CORPORATION
161 East 42d Street, New

Corpo rati

quarterly dividend of
share was declared on the coup

per

mon

Probably
the world

company in
the I advanced

offers

price

The Board of Directors declared

meeting of the Board of Directors,

a

nitrate

Today the
and

At

offered

and

other

no

sitized
gelatin, the base for
olographic' emulsions, is, after
1, nothing but a water-soluble
ices

of

the

as

film, firsi
de in 1889, provided the germ
the company's evolution, and

astic.

is

compounds

stocked

are

and

uses

with plastics as
other American company be-

use

organic

industry

eh experience
y,

sale

and

KENNECOTT COPPER

Stock

Johns-Man ville

m

1954

COMMON DIVIDEND No.

held this day,

holders

[desirable to build a large plant

jjective has recently compelled

notable

achievements

fine

3,500

same

Eastman's

manufacture

oplies of these, Eastman found
This

August 11,

J

business

of

stock

York

.60 Mi.

DIVIDEND

NOTICES

"7

*' •*

■

■

1954,

ated.

Tennessee.

-

■

The

'

was.

NOTICES

corporations.

closing

the

DIVIDEND

an¬

great

common

New

and

PRODUCTS

division

organic

segregate

One

the

on

Aug. 18

tech¬

monoglycerides,

turing film. Key chemical raw
terials
besides
cellulose
are

eastern

on

holders

new

Kodak

Exchange

Packing Company
■m

to

knowledge acquired in manu-

is listed

The Garlock

compounds
in
the drug and food field. In order

jcellulosic plastics which stem
jm its basic raw materials and

trading

Eastman

fields.

to the production of vitamin con¬

various

con-

world-wide

becoming

America's

A cash

applied by its Distilla¬

tion

and
of

one

39

JOHNSMANVlLLt

been

applicable

centrates,

of such things as acetate rayon

m

DIVIDEND

so

results

was

the point

to branch out to

of

other

keeping

being very successful
in producing a better film, a new
general high vacuum technique

ustry.

now

quality of
use

photography

and

developed

for

product

fuel

belief and that in the field of gasoline gum
fidence
in chemistry and inhibitors Eastman has become a
mology which
led George leader, although it has had to go
tman
to employ his first beyond hydroquinone derivatives
to attain this leadership.
mist that later insired him to
ate over $20 million to Massa- \ During the war Eastman lab¬
setts Institute of Technology, oratories, in an effort to improve

y

easily

new

the same firm

was

t

lead them into
promising fields
as
has been cuPont by branch¬
ing out from its original central
theme of smokeless powder. I can
in a similar way see Eastman be¬
coming a major chemical giant
rising from its central theme of
many

surplus.
for hydro-

uses

Eastman

valuable

airplane

broaden

however,

agricultural

pursuing

a

to

serve

this

quinone,

except for the fact that

non-callable.

;

product because
overproduction in

great

of

use

of $6 million preferred
which would not be out-

ding

particu¬

a

opportune

the

cidity

unt
k

is

latter

animal and vegetable fats and oils
and so a stabilizer deferring ran¬

modest

a

The

(715)

authorized the

quarterly

following
50

Directors
payment

cents

dividends:

share

per

has

of the

on

Orig¬

inal Preferred Stock;
27

cents

lative

per

share on Cumu¬
Stock, 4.32%

Preferred

Series.
The above dividends are pay¬

September 30, 1954 to
stockholders of record Septem¬

able

ber

5,

mailed

1954.

from

office in Los
ber 30, 1954.

Checks will he
the Company's

Angeles, Septem¬

donald s. carmichael,

P. C. Hale,

Secretary

Cleveland, Ohio, August 14, 1954

August

DIAMOND ALKALI COMPANY
is.

18,

1954

Treasurer

40

The Commercial and Financial Chronicle

(716)

Thursday, August

...

income

BUSINESS BUZZ

*

/f

of

f|/7

private

\ g\E I

the

to

in

success

the Eisenhower

is

gram

going

there

cause

a

if

subject, be¬
much

so

the

viewer

TV
to

matches

back

and

beer.

credible

it

to

can

.switched
the

a

begin to give
analysis until long

detailed

It

the

•

has

wrestling

earnestly to
that

may

where

lie

may

some

One of the remarkable things
that

ceived

t

so

subjects

many

action

of

re¬

of

kind

one

another, in view of the ampli¬
tude of legislative requests and
the
hairline
majority of the
'Republicans in Congress.

i

Eisenhower's
advisers—if

Congres¬
of

members

wins.

use

advisers in view of the

L.
f

disregard

r;

were

i:

gram of
subjects.

told

for

their

of

a

d

v

i

strictly limited pro¬
few or several basic
Mr. Eisenhower was

a

a

that

the

GOP

legislative

volunteer fire department, so to
speak, shouldn't undertake to put

Lake

ports

—

approved
Herbert
able

been

no

to

make

i.

the

was

tax

sion bill, supposedly "the first
major overhaul of the tax laws
1875."

hand, conserva¬
Congress have
aiming for this project for

the

big

the

Eisenhower

defi¬

this just three

ago, 10 or 11 months be¬
Mr Eisenhower became a

fore

have passed. In the final round
in the Senate, the expert foot¬

Advice

Eisenhower

nominee

for

President.

Eisenhower

team,

work of Chairman

disregarded

Never¬

theless, without the aggressive
selling of this project by the

likin

(R., Colo.)

it

wouldn't

Eugene Mil-

of the Senate

this advice. The Annual Message
•on the State of the Union
given

Finance Committee, in probable
covert concert with the Senate

last

Democratic

January sounded like a mail
catalog of all the good
things of life. There was some¬
thing in it for everybody, ex¬

order

•

-w' <"/»

cept maybe

the

underfed

jack

Lyndon
(D., Tex.) was prob¬
ably responsible for saving most
of this bill against the forays of
the

Tabbits of Colorado.
So

if

4s the

the

mail

point of

reference

order

catalog, then
Many
of the things advocated in that
Annual
Message were
never
actively pressed before Con¬

tb

gress, even by the White House.
For instance, Federal aid for

\

school
been
'

until

construction.

postponed
1956.

V

That

Eisenhower

this

revision

a

victory

on

the

ernment-sponsored lobby has
been provided for to beat the

1953

he

probably meant to lose—
largely because the Treasury

Dept. didn't know how to play
with
the
GOP
Congressional
team.
on

three

Eisenhower

and

ment economy.

won

in

by

govern¬

Disregarding all

Olin Industries

in

billion

a

probably

1954

for

two

difficult
White

is

a

And in

On

to

A

for

more

is

Stop

here

scope

and

as

This;

was

host

nal

of
now

is¬

suing

mention

them,
some

class

1

failures.
the

No.

ill-fated

of

the

merely

Mr.

It

—

Sold

Member Midwest

Stock




One

of his

a

blow

worst

blows

was.

which

all

Democrats

enthusiastic

except

McCarthy

haters will tell you privately is.
wonderful. They figure that in
the farm

belt and the pro-Mc¬
Carthy belt, much the same ter¬
ritory, many GOP voters, white
not voting Democratic, will stay
home on election day and allow
Democrats to come in on light

votes.

(This column is intended to

re*

fleet the "behind the scene" inter*
and may or may not coincide with'
the "Chronicle's" own views.)

the

is

LONG

BEACH, Calif.—Gordon

L. Koth is
&

now

with Hill Richards

Co., Farmers & Merchants Bank

Buiding.

He

was

formerly

with

Investors Realty Fund, Inc.

-

program

We have available copies

doubtful, however,

lower

1

With Hill Richards
(Special to The Financial Chronicle)

price

an

of

Analysis of

in ap¬

support

RIVERSIDE CEMENT

believe

CLASS

B

COMMON

STOCK

ready registered decline in farm

The Ecuadorian Corp. Ltd.

This analysis
stock

offers

portunity

BOUGHT

•

SOLD

•

this
excellent op*
capital gains.

shows why

an

for

SERVICE

QUOTED
A

Carl Marks
FOREIGN

;

Exchange
*

1

Louis 2,

with

sprained

a

copy

will be sent on

request,

Quoted

320 N. 4th St.
St.

away

and

being maneuvered into fighting.
Senator McCarthy on the side,

Sulphur

—

got

eye

SPECIAL SITUATIONS

SCHERCK, RICHTER COMPANY
SL 456

of

the Democrats jubi¬
it
will
cause
farmer-voters to blame the al¬

lantly

to

bloody
two cut
jaw, while

swollen

a

a

eyes,

recently prepared by

Wagner Electric

Teletype

nomi¬

costs, and

these

with

up

black

THE OVER-THE-COUNTER

Tenn. Production

Bell

a

extension

farm

preciably

first-

attempt

He got

that this bill will result

the

lists

two

whole

so

sions.
some

a

the
President got a great victory in
the newspaper headlines with
the allegedly "flexible" provi¬

he

on

of

On

Failures

puff

instance, the
policy program.

this round probably will
be given by the referee to the
challenger.

December

what

for

trade

one-year

act,

He

decision

a

finger.

foreign trade moves,
including extension of the re¬
ciprocal
trade
act
for
three
years with power to cut tariffs

amounts

about

program

Mr. Eisenhower wanted

about of

though

was,

further.

last

That
the

of

Mallinckrodt Chemical

Bought

stand

pretation from the nation's Capital

There

economies

this

Some

balance

of them.

on

could do.

was

state¬

the opponents making the most

and character which
seasoned Congres¬

don't

was

Administration making light of
the legislative short falls and

high¬

success

and
of

leaders

Ike

failure

strictly a
this-and-that
outcome, with partisans of the

sagest,

sional

to

was

serious.

record

proposal

(Neither of the above listings
an attempt to be complete.)

The

spending,
the
appropriations

boost

not

about

ended

lips, and

insurance.

the

was

fourth

Some

the

money

popular

as

where,

no

bring

hood for Hawaii.

foreign aid, Mir. Eisen¬
coming out pretty well.

to

to

help dimin¬
ish the postal deficit.

persuade Con¬

military

drive

told

third

foreign

hower is

a

scheme

A

ways.

got

black

government health

remarkably

undertaking

to spend

were

opponent

one

a

highways,

for

not

House

gress

his

foot-in-the-

the

was

to

Transmission

Pan American

could

points, winning maybe 12 of the
20 rounds by a slight decision.

Valley Gas

Eastern

him.

completely.

with

He

amendments

more or

years

it

if

even

management

and

rounds

out

came

raise postal rates to

Eisenhower also had

National Oats

i

several

nose,

getting

door

was

quite

—

labor

Another

half billion in annual outlays

Even

Anheuser Busch

Miss.

performance

Republican

Olin Oil & Gas

Texas

one

less what
he wants in social security, in¬
cluding broadening of unem¬
ployment compensation.
He scored a clean victory in
getting Congress to boost almost

the

clearly

was

he

sure

in Congress advised this course.

1955.

Finally, Mr. Eisenhower is
getting about what he wants in
aid
for
hospital construction,

the

Economy

for

chunk of real money.

to

Round

see

to the fighting

new

the

by

government

another

$6

Had Big

I'd

was

occasions when

on

couldn't

Taft-Hartley Act. Hardly any¬
body in a responsible position

the

in

cut

to

around

bill, however, Mr.

Eisenhower lost $900 to $1 bil¬
lion in excise taxes—more than

Wins

in

with

1954

estimate

actual

something

has

vote lure
Meanwhile a gov¬
as

left-wing wolves.

Against

the program is a failure.

leader,

Johnson

please

Administration

fiscal

for

years

started

on

by

by comparing the Truman esti¬

years.

Congress

claimed

economies

spending from

Mr.

J

J.—this is absolutely the last time I'm
going to speak to my Secretary about this!"

been

nitely to work

throwing punches below

rounds, and stand he did, al¬
though he lost as well as won

"Believe me, P.

mate

On the other

ability

referee

game

the

revi¬

re¬

young

20

the

Disregarded

at

One of Mr. Eisenhower's other
rounds

a

was

The pug

on

remote.

v

;i

the

Pres¬

Hoover

of

pug>
fighting game, with
faith in his

the wasteline

Eisen¬

Mr.

people

to the

ness

is

able
chance
of
passing, and
picking up maybe a few other
-projects as a reserve stock of
campaign merchandise even
though chances of passage were

i;

hous¬

punishment. His oppon¬
about evenly matched
in weight, but a
seasoned
puncher with an especial adeptent

iundamentals that had

J

the

over

to take

tive members of

a reason¬

sore

unfounded
i

they being very short handed.
They advised sticking to a few

\

/

St.

the

got

approved, for

permit seagoing vessels;

from

since

of the most avid back¬
GOP in 1952, are

'J

new

•out all the fires in the country,

I i
\

some

grade.

sure

re¬

hand,

T

if

even

Great

Seaway

c e—

other

.

case

happily postponed and forgotten
until a later date. In getting the

ident

President

the

the

downright

deepening the Great Lakes har¬
to

hous*

ing scandals, and probably will
sit on their hands in the
forth¬
coming campaign.

the ultimate
cost of this project—the cost of
bors to

again

Mr. Eisenhower's
program

scored

He

Lawrence Seaway

had

Congress could actually be con¬
sidered

of

minds
Eisenhower

Mr.

Here,

the

as

On

one

Wins

Clean

Some

hower succeeded where

Mr.

sional

the

as

vastly

Pug Punishment

instance,

in between.

failure,

or

by

housing construction indus¬

ers

be.

clean
answer

credit.

far

as

try,

conclusion

demonstrate his

a

ure.

is

That is where every¬
have a happy time,
pro or con, in dissecting this
subject. He can take the list
according to his partisan bent

is

it

the

will

success

opposite,

ease

program.

of

housing

government -aided

quested.

and

the

popping of the alleged

half

body

of

ing scandals forced Congress
to
housing credit perhaps
only

so

beautiful ideas were for¬
it is pretty difficult to
tell just what is the- legislative

a

big success, and there is equally
good material to support the
charge that it is a dismal fail¬
The

that

fact

the

many

to

itself

lends

analysis

the

of

view

In

do

the

What Is Program

field

bill which appeared1

a

loosening
mortgage

gotten,

quite

be

to

is

nobody

after

K

of

legislative pro¬

conversation piece.
It is a beautiful

that

thereof

lack

or

up

election,

November

yonder

the

is called

the roll

until

now

in

upon government"
and

proposed

propaganda drums for this pro¬
ject, starting next year.

power into this

dependence

industry

WASHINGTON, D. C.—From

act

but with i great
permit some entrv

housing, the President
for legislation to
"lessen

asked

M. "f/v

energy

may,

restrictions,
On

xlI Hv,

Capital

(row the Nation'*

atomic

final form

Washington... j

1951

Administra-

tion.
The

Behind-the-Scene Interpretations

the

upon

19

Mo.

SECURITIES

50 BROAD STREET

Garfield 0225

L.D.123

TEL:

HANOVER 2-0050

•

&

Co. Inc.,

SPECIALISTS

NEW YORK 4.

LERNER & CO.
Investment Securities

>

N. Y.

TELETYPE NY 1-971

10 Post Office Square,
Telephone
HUbbard 2-1(990

Boston 9, Mass.
TeletyP*
BS 69