Full text of Commercial and Financial Chronicle : August 20, 1953, Vol. 178, No. 5248

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/fs®sssr

I

ESTABLISHED 1839

*Ue

2

*

The Commercial

Chronicle

Reg. U. 8. Pat. Office

Volume

New York

Number 5248

178

Price 40

7, N. Y., Thursday, August 20, 1953

EDITORIAL

We See At

As
rective—from
ment

appeal—or should

Denver

last

week

we

all

to

And Investment

Standard!
di¬

say

By

govern¬

ROBERT T. PATTERSON,

By HARRY D. COMER*

PH. D.

New York

Paine,

Partner,

Lecturer in Financial History,

departments and agencies in behalf of fur¬

Copy

a

Outlook for Business

What Abont the Gold
The President's

Cents

University

**

Curtis

Jackson &

Webber,

Members of the New York Stock Exchange

ther and

more
vigorous effort to reduce Federal
outlays not only during the current fiscal year
but in the next (and by implication in the next
and the next and the next) has been well pub¬

licized.

Somewhat the

Dr. Patterson points out there is

regarding

thing can be said of
the Dodge communication in the same vein, al¬
though probably this document has not had the
attention it really deserves in view of its greater
particularity in certain directions and the fact
that it obviously has full Presidential approval.
It was Mr. Dodge, Director of the Budget, who
pointedly asserted that the time had come not
only for the utmost endeavor to do what is being
done with the minimum of cost, but also—and
even more
important—to reconsider what among

much

it

as

pleases.

and what it should discontinue forthwith.

also

this

It

We

have

.

two

money

documents

they

year.

on

4*!\

T.

Patterson

a

•.

-■*<

of

.

f

confidence in

loss of

value

billion

$63

the

dollar

to

Correspondents in all
parts of the world

In

City

India,

Continued

REGISTRATION

IN

NOW

Government

Pakistan,

—

on

page

Reserve

that

moderate recession

yet
still
Harry D. Comer

ured

the bottom

at
be

having

The Bank conducts every description

by past standards.

to business.

These factors

still out of gear—with the

are

Continued
i-

OF NEW YORK

of

BROADWAY

20

Bond

||

1915

""x- J

Dept. Teletype: NY 1-708

Active

Markets

Dealers,

Banks

Brokers

NATIONAL BANK
OP THI CTTY OF NEW

BONDS & STOCKS

Executed

On

Public Service Co.
of New

All

Analysis
v-

DIRECT

WIRES TO

1-2270-X

Domeuox Securities

MONTREAL AND TORONTO

(orporatioti

Goodbody & Co.
Established 1832

Hampshire

COMMON

MEMBERS
115

NEW

BROADWAY

NEW

YORK

upon

request

YORK

STOCK

1 NORTH

EXCHANGE

40

Exchange Place, New York 3, N. Y«

CHICAGO

Members
and

111

New

'WHitehall 4-8161

Boston

York

Stock

Exchange

other Principal Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

£

IRA HAUPT& CO.

\

LA SALLE ST.

5.
>

«*

DEPARTMENT

Teletype N Y

YORK

Western Cities

CANADIAN

Company, Ltd.

Orders

Denver
Spokane

Maintained

and

Canadian Chemical

Commission

Co.

CHASE

THE

Y.

Exchange

Tele. NY 1-733

50

and 10 other

Members N. Y. Stock Exchange

New York 4

Municipal

Principal Exchanges
BROADWAY • NEW YORK CITY

Salt Lake City
Los Angeles

CANADIAN

Mempers American^ Stock Exchange

22

State and

Canadian Exchanges at Regular Rates

N.

page

by Mr. Comer before the executive group of the
J. Henry Helser Organization, San Francisco, Calif., Aug. 17, 1953.
address

ESTABLISHED

business.

& Cellulose

4,

on

,

Members of All

T.l.WATSON & CO.

YORK

(2) Most of

the time since 1939 the stock market has swung opposite

3. a. h0gle & co.

THE NATIONAL CITY BANK

To

50

would

we

boom, meas-

Bond Department

Trusteeships and Executorships
also undertaken

NEW

it,

of

real

a

Coast to Coast

Common Stock
Request

so

Ceylon,

£3,675,000

and exchange

a

Business is

Bonds

£2,281,250

Fund

they overlook

(1)

in/total production could occur, and

Direct Private Wires

£4,562,500

Capital-

is

facts.

basic
now

happen

can

,

The conclusions

,"i

Net

Corporation

that

you

Underwriters, dealers and investors in cor¬

in

Protectorate.

Authorised Capital

Paid-up

,

in good health

that

to get sick.

reasonable intervals. In the past

Uganda,

land

telling

fallacious because

good

'J

due to the failure of the government

Aden, Kenya, Tanganyika,
Zanzibar, and Somali-

Burma,

like

thing

only

two

♦An

Alleghany




are

increase

Office:

Branches

banking

DIgby 4-7800

much

for you

the future

26, Bishopsgate,
London, E. C. 2

Head

Tel.

the

$167

i

•

Kenya Colony and Uganda

Complete corporate and
personal trust facilities

19 Offices in New York

the

is

notion

In sum, the first assump¬

porate securities are afforded a complete picture of issues now registered with the SEC
and potential undertakings in our "Securities in Registration" Section, starting on page 30.

Bankers

1

demonstrate why I think

widely- advertised
is

is.-,

down."

market must go

WESTERH

Founded 1824

30 Broad St.

to

"Business

change for the

because you are now

the budget has been balanced only three times.

22 years

Trust Company

Yo^l| Stock

try

tion

flight from our irredeemable paper money
uncontrollable.

The inflation is

of INDIA. LIMITED

Weinberg Hew

shall

I

people's desire to hold goods and
property in preference to money. This

to balance its budget at

NATIONAL BANK

Hardy ;&

talk

this

that could become all but

&

on

this

In

Since

to

would

Bank

Circular

"Therefore, the stock

holas
only

can

erroneous.

19

SECURITIES

that

fallacy

worse."

currency

billioh.

the

page

.popular

a

it can't get better; it

*

~

creased .'from

It is true as Senator Bridges and the others
saying that the Administration—some-

Chemical

•

is

good

in circulation has in¬
billion,
and bank deposits—which are simply
another form of currency—have in¬

turn of the

Continued

There
so

a

market situation.

present conservative

The purchasing

half.

1940

have been

1

Says

key to stock market, and points to

creased from $8 billion to $29

go

and

Congress

in 1940.

were

off an explosive rise in prices.

could start

which

influence coming business trends.

can

The money supply is now so enor¬
that a mere incident could set

They point to what is probably the

assignment

which

confidence factor is

mous

still faces.

toughest

position

a

present high yields on good industrials as evidence of

of the dollar has been cut in

was

Robert

Administration must face after the

tors
.

power

A

really

in

are

if general business activity falls off toward

■

.

which

even

rise,

year's end. 'Discusses business outlook, and cities fac¬
,

gold standard. Since then the inflation of our currency
has progressed, gradually at first and later more rapidly,
pushing prices further and further
upward. Prices are now twice what

to
the heart of the task the Federal Government
are

relatively low market, stocks

to

a

gentleman who called attention
to the widespread use of the highly doubtful pro¬
cedure of the continuing appropriations which
so^ effectively hampers efforts of Congress to
make prompt reduction in outlays even when
convinced that certain programs should not have
Here

current

pump

long way down;the path of poor
since 1933 when the United States abandoned the1
gone

same

been started.

so

-

undertakes it should continue to do

now

"business is

good it can't get better," and contends that, with the

Standard, and holds our gold reserve is sufficient to sus¬
tain this standard. Says gold is the people's money and
"there is no valid argument for further delay in returning to the gold standard."

the almost infinitude of tasks the Federal Gov¬
ernment

Stock market analyst condemns theory

concern

a

into circulation as
Describes requirements of the Gold

opportunity to government to

same

for

reason

require¬
something valuable, gives

that it be redeemed into

ment

real

since the absence of

our currency,

Teletype NY 1-2708

Telephone:

Enterprise

1820

,n.

2

The Commercial and Financial Chronicle

(622)

.

.

Thursday, August 20, 1953

.

C

WE

The

POSITION and
TRADE

This
Forum

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

IN

Arkansas Missouri Power

participate and give their

Central Public Utility

reasons

for favoring

(The articles contained in this forum

Central Telephone

they

are

be regarded,

to

offer

as an

to

particular security.

a

intended

not

JOHN P. MURRAY

Gulf Interstate Gas, Units

Light & Power

New Jersey

Metal & Thermit

Zinc

Close to 30

Monterey Oil

to

Stated,

one
increasingly orthodox
approaching investment prob¬

One

has

buy

and

stocks close to
d

New York Hanseatic
1920

American

dividend

strikes

In

suit¬

a

rity

I

Best

Forum."

going back

Specialists in

P.

John

company
the second largest

Murray

York

1*0

Stock
Stock

$4.50

1947
in

share. In 1949,

rolled

current

$3.00

Mar., 1938—

ment

1952

in

was

sible

American Furniture Company

ilmenite

of tons of the

Alabama-Tennessee Natural

with

ore,

millions

the

surface,

meaning simple low cost

excava¬

ore

on

tion.

Gas Company

Company
Dan River Mills

demand

for

as

a

for

manufacture

of

dioxide
of

paints.

In

accounted

white

pigment

for 49.5% of such total white
ment

production in this

pig¬

country.

In

addition, and more important
from a longer range standpoint,
experiments
to

underway point
large-scale produc¬

now

successful

tion of titanium in metal form.

From

An Attractive

iron

aluminum.

and

only

60%

In

Canadian

strong

as

its interest—sizable

Gas and Oil

an

excellent

Speculation

4

bearing

ALLEN

per

vehicle

in

in

mind

Shober, New Orleans

on

When

thing,

I

hucksters
25

why I like

of

years

some¬

conditioning

or

less,

'I

Like

because
'V*

;

r

f

|

that

Kennecott has outstanding 10,821,653 shares of stock. In

During the

years.
★
excess
i

That

Morgan & Co.

taxation

.

for

approximating $3.00

each

share

was

year.

In

1952,

a

I

believe

do

give

make

reported but out of net

earnings of $15,660,000 before
31 Nassau St.

New York 5

Dlgby 9-3430

Teletype NY 1-2078




pro-

vison for Federal
taxes, $5,239,000

represented proceeds from sale of
patents and profit on sales of se¬
curities. After taxes, consolidated
net

over

the

rate

of

Steiner

contribute

should

$2

stands at

outstanding

1944,
to

annual

and

It

that

paid.

could,

If

the

conservative

$1.20
annually,
a
yield of 6% would place the share
be

This stock dividend

close of

the

n

y

stock

oustanding

March

31.

year,

national birthrate,

future

outlook

things

we

she
and

MQRELAND & GO.
Members:

Midwest
Detroit

1051

Stock
Stock

■

Exchange
Excuov>oe

Penobscot

Building

DETROIT 26, MICH.
Branch

Office—Bay City, Mich.

company's
1954.

point to two
like—minimum risk and

started

had

•-saving*

Edward

E.

Chase, President of
Company, Port¬

Securiries

Me.,
and
William
Tudor
Gardiner, Chairman of Incorpo¬
rated

Investors,
Aug.

2

in

Boston,
the

were

crash

of

a

plane.

capital
risk.

With Akin Lambert Co.
(Special

Gerber:

can

'/

Edward E. Chase

private

substan¬

v

'

William Tudor Gardiner

killed

a

W

OUR

leadership, and

to

The

Financial

Inc.,

after

Information

Request

all

■

■

inv estment

canning industry; to
baby foods, when

prepare

&

on

capital gains.

lor

canned

own

Market

conclude, excellent manage¬
ment, distribution, advertising, re¬
search, financial condition, earn¬
ings, past record, present record,

in

band

COMMON

reasonably accomplished

in

industry

stock

should be
shares paid a

1901

their

reasonable
200 %<

and

new

BUY

l a. darling

dividend

•

dividend

TO

paid in 1942,

is
a

1928

Gerber

WANT

Authorized

were

1948.

calculate

before

WE

653,393 shares.

bert Ackerman has

Dan

Telephone
WHitehall 3-2840

in¬

2,000,000 shares,

are

is,
always
has been, the largest baby foods
company.
The firm dates back- to

Mrs.

30 Broad Street, New York 4

earn¬

are

share

share.

a

Stock dividends

land,

ma

and

the

to

of net earnings

excess

current

common

and

Com

gain with min¬

reported and in 1950, $5.11

share.

25

Gerber

imum
M.

earnings amounted to $12,060,000.
In 1951, $5.06 a share was
a

also

long in the

Main

tial

Allen

Gordon Graves & Co.

Sales (as usual)
over
last year, and

stockholders

Products

n.n

re¬

a

•

—

for

other

I

that

common

share

$6.15

will

★

.

can't be
here, buI

reasons

restricted

XXX

done

could

when

earnings, the company showed
sults

Peter

profits

war years,

by

bring to mind, "Sav in

words

—

To

Company

say

of Kennecott
Copper.
Earnings of this company have
been
quite consistent over
the

request

up

fiscal

Louisiana
Gerber Products

not

Jan. 1, 1954, they

come

30%

are

this

could

share

Prospectus

belongs,

about the

Woolfolk &

it

were

Net

profits tax of the past

price at $20.

JVL STEINER

effect, one
share of New Jersey Zinc carries
2% times as large an interest in
this titanium development as one

★

a

usually profitable operations.

stock,

common

which to participate in this devel¬

opment,

on

share
basis—in the development of ti¬
tanium along with Kennecott Cop¬
per, in addition to its normgl and

heavier

aluminum.

1,960,000 shares of

to hold promise of
development through

cold-worked

New Jersey Zinc, with its small
capitalization, consisting solely of
seems

Exchange,

It

form, it is more than twice as
strong as iron and almost six times
as

seem

substantial

lighter

than

over

a

the American Stock

.would

combines the best qualities of steel
and aluminum, being 40%
than

stock, or

share

a

longer range standpoint,
this stock, now selling below 50
on

Bought—Sold—Quoted

same

Major
plant
expansions 'and
(capital expenditures have
been completed, so it appears that

exploration,
mine develop¬
research and experiments
totaled $5,220,000, or $2.66 a share
common

advance

excess

ings.
Overseas markets
creasing rapidly.

evidenced

as

similar expenditures made in 1951.

production but for 1945 accounted

LD 33

and

new prop¬

substantially displacing white lead
the

Company

Common Stock

past fiscal year.

is aggressive

increase of $1.25

Oil

should increase by about $1.50 per
share over the net $4.69 for the

..

developing

have soared.
show the

would

it

__

49

processes

Commonwealth

combined.

49

by the fact that last year expenses

an

Inci¬

45V2

in terms of the

1925, titanium
for only 0.6%

Lynchburg, Va.

steady
the

pigment has grown extremely
rapid in recent years and it is
in

Scott, Horner &
Mason, Inc.

titanium

with

nutrition.

three years. Even so, net earnings
have
been
excellent, and when
the EPT goes to the grave where

83%

company

erties and

concerned

world

earnings

gross

ment,

The

Commonwealth Natural Gas

The

interested in

in the

earnings

•

—

81%

1951

offices

years, without ex¬
sales,, number of share¬
holders, shareholders' equity, and

Lows

June, 1950

Oct.,

branch

Through the

the

1939— 76

Feb., 194-3

of $44 million.

and

dentally, Gerber packs more pears
the output of all other pear

always

May, 1940

invest¬

This is the largest known de¬
posit in the world of easily acces¬

Trading Markets

Tele. LY 62

the close of

at

excess

not

—

94%

Oct.,

total

health

canners

in

show

Highs

thirds of the stock of Quebec Iron
& Titanium Corp. and New Jersey
The

child

1937.

Mar., 1937

our

ception,

will

fluctuations

bec, Canada. Kennecott holds two-

Zinc one-third.

to the med¬

men

organizations

to,

the

changes

to

plants; constant research for new
products;
Gerber
Baby
Foods
Fund, a foundation contributing

traceable to earnings—seen in this

Exchange

Tel. REctor 2-7815

Liaison

than

following

stock since

o£, the seed that

profession; largest baby foods
plant in the world, in Oakland;
filtered
air
in
all
processing

rate.

frequently, reflecting
price of zinc.

wires

ical

the

broad

growing

include:

The stock has fluctuated widely

The

The company is also engaged, in
partnership with Kennecott Cop¬
per, in the development of a sub¬
stantial titanium-iron ore deposit
in the Allard Lake region of Que¬

share, which is

a

Mobile, Ala.

'v..
Direct

step

every

the produce that eventually
up
in
Junior's
tummy.
Other leaderships in the industry-

divdends amounted

taled

NY 1-1557

Orleans, La. - Birmingham, Ala.

*

winds

a

zinc sulphide pigments, slab zinc,

supervises

grows

to

Exchange

BROADWAY, NEW YORK 5

$4.25

1948,

the

is

payments to¬

and

St., New York 4, N. Y.

along the road, from soil chemis¬
try to consumer. Even supervised

paid in each

was

only $2.75 a share, but in each
of the past three years have to¬

zinc, zinc alloys, etc., which

Gerber

New

Exchange
Exchange

l930's.

the early

contest in

1946

in the country. Its
principal products are zinc oxide,

volatile and cyclical heavy indus¬

Members

New

while in

taled

tries.

McpONNELL&fO.
American

producer of

year,

1943 to

From

the
winningHope Smith,
company
in a

the

to

submitted

year

zinc products

go into consumer type in¬
dustries-— rather than the more

Since 1917

share.

a

seen

labels,
is
Dorothy

of

sketch

far as 1915, the low¬
paid was equal to

as

inclusive, $3.00

Like

largely

Rights & Scrip

each

dividend

*2.09

This
is

in

Baby,"

Stock

Stock

HAnover 2-0700

Busi¬

Only

Our

—

"Gerber

The

all

on

since 1883.
terms of the present stock, and

est

"Secu¬

the

of

Teletype NY 1-583

BArclay 7-5660

Jersey

as

ness!"

excellent

an

New

able candidate

York 5

has

company

dividend record, having paid some

me

Stock Exchange

The

on

that basis that

Zinc

Associate Member

120 Broadway, New

sion

p r e s

prices. It is

Corporation
Established

e

Business

our

York

American

25 Broad

well-known

was

New

Members

baby foods and adopted the
slogan, "Babies are

than

$8,351,000.
capital

Treasury and other market¬
able securities, carried separately,
were
equal to another $13.55 a
share, making a total of $28.67 a
share in effect representing work¬
ing capital.

making

try

of

working

U. S.

purchases to

Taylor Oil & Gas

Members

other

products

all

discontinued

total

times

four

$15.12 a share on > the
stock, while in addition

to

common

been

Steiner, Rouse & Co.

while

of $37,985,000

liabilities
net

equal

re-

desire when¬

ever

Steiner, Woolfolk & Shober,
New Orleans, La. (Page 2)

excess

liabilities,

assets

than

more

were

current

a

United Utilities

tends

current

current

in

suit

Southern Production

adviser

total

make

lems.

Polaroid Corporation

years' experience as

investment

an

Michigan Gas & Electric

of

total

Bought—Sold—Quoted

Products Company—Allen

M.

1952, showed cash and U. S. Gov¬

Investment Counsel, Boston, Mass.

ernment securities alone in

Iowa Electric

Louisiana Securities

(Page 2)

Boston, Mass.

The balance sheet, as of Dec. 31,

Alabama &

Murray, Investment Counsel,

P.

to

and

Selections

Zinc Company—John

New Jersey

be, nor
sell the securities discussed.)
are

Week's

Participants

Their

Gerber

Central Vermont Public Service
.

Security I Like Best

a

her
foods

new

hus¬
for

baby; to 1942, when it

LOS

ciated

ANGELES,
with

639

become

Akin-Lambert

Al¬

asso¬

Francisco

In the

14-Year Performance of
35 Industrial Stocks

Co.,
POLDER

South

Spring

Stock

j

OVER-THE-COUNTER 7!
INDUSTRIAL STOCK INDEX

Chronicle)

Calif.—S.

ON

REQUEST

Street,

members of the Los Angeles and
San

N. Q. B.

Exchanges.

1

National Quotation Bureau
~

Incorporated

past he

was

ment business in

in the invest¬

Chicago.

46 Front Street

New York 4, N. Y.

Number 5248

Volume 178

The Commercial and Financial Chronicle

..

.

(623)

Further Reactions to Robertson's

INDEX

"Inside View oi United Nations"
able to accommodate in today's issue some more oj

are

What About the

Profits,

by William A. Robertson, Member of the New York

Bar, in the article "An Inside View of the United Nations" which

appeared in the "Chronicle" of July 2.
peared in

Other commentaries

In the article Mr. Robertson described the

that

have

which

prevailed

currently,

are

of the

ernors

or

World

Council of the

prevail)

(and' still

within the past six

by' virtue of

United Nations.

countries

—Harry

have been, Gov¬

years

holding seats in the Security.

Red

for each country and contended that in view of the record, it is
than futile to expect them to make any

worse

contribution to the

Below

PREFER

4

Groups—August Huber

Unfavorable

Factors

in

BLONDES

4

Business

Bullis

A.

the

on

'

-

.

•

"Beware

of

Can

Present

the

Life

of the remaining unpublished comments that

some

are

and

.

N.

Obsolete Securities
B9

6

'

<

■

WALL

Telephone: WHitehali

Baruch

i

9

!

Babson...

Copeland Refrig.

11

Empire State Oil

'
•

have been received relative to the article.
next

week's

JOSEPH

issue—EDITOR.

Program for Excise Tax Reduction—Beardsley Ruml

Others will be given in

i

The

ing the Security Council is

HARRISON

tell¬
ing argument and should convince
i Overseas
News Editor
"The Christian Science Monitor," anyone that the United Nations
organization will bring little good
Boston, Mass.
Robertson
the

men

gather
of

his

ends

Biblical

figs

of

grapes

thistles?"

thorns,

May

I

or

begin

Scriptural

a

'

quotation
(Isaiah 28:10):
"F

be

upon pre-

c e

t;

here
there

little";
is

it

that

put

restrictions

Mr.

national

a

plication
States

an

date.-

a

organization at so
World cooperation
and

more

if

to

could,

the

plant

fruit tree

single

a

and as faulty as the Se¬
Council may have shown
itself
to
be,
nonetheless, they
constitute, in our opinion, one of
it may be

curity

great
we

derelict

be

-

to

the

United

Na¬

Bank

REESE

Pensacola,

of

Fla.

Inside View of The United

Nations"

by

A.

William

most

Robert¬

is

and

its issuance timely!

Time

summary

the

of

Bank

to

kind

of

Bank and

/

Dr.

Henry H. Hill

being

in

ever

very

long his¬
have some

to

among

may

be

start,

that

of

and

the

robust

very

Bookshelf

23

1

;

our

children's children
see

possible

36,

some

Einzig—"Gold

Coin

orderly

the
for

Merchandise"

as

who

chil¬

world de¬

=

i

Boston

•

Manchester, N. H.

•

•

of

Continued

ij Private Wire to CROWELL,




•

on

page

Worcester

WEEDON & CO.

CALIFORNIA

Exchange PL, N.Y. 3

J

*

3£

...

Securities

GIVE

27
23

Corner.

TO

.

.

.

CONQUER

!

8

CANCER

39

_i___

and You—By Wallace Streete

13

The Security I Like Best

and

2

_

of

5

Washington and You..

INVESTMENT IN

36

:

individuals

Glens Falls

•

Schenectady

40

Teletype NY 1-1825 & NY 1-1826

18

Securities Now in Registration

CANADA
"Column not available this. week.

34

Canada

The

Twice

i

Gardens,

Drapers'

1

CHRONICLE

Reg. U. S. Patent Office

-

-

Weekly

COMMERCIAL and

FINANCIAL

B.

DANA

COMPANY,

Park Place, New York 7,
REctor

land,

2-9570

London,

E.

C.,

Eng¬

much

to

offer in

tho

We shall bo

of investments.

c/o Edwards & Smith.

glad to send

Copyright 1953 by William B. Dana
Company

|

field

has

you a

list of

sugges¬

tions, including Canadian western

i

*

Publishers
N. Y.

♦

second-class matter

as

Febru¬

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

to 9576

oil and mining stocks.

cuted

on

Orders

exe¬

all Canadian Exchanges.

ENQUIRIES INVITED

Subscription Rates
!

Subscriptions
HERBERT D.

SEIBERT, Editor & Publisher
DANA SEIBERT,

Thursday,

TELETYPE N. Y. 1-5

Chicago

•

LOS ANGELES,

HA 2-0270

5

^ex¬

conscious

is

Stock Exchange

•

Nashville

.

Report....

Salesman's

The Market

WILLIAM

Albany

Singer, Bean
& MACKIE, Inc.

25

Securities

Securities

ST., NEW YORK 4, N. Y.

TELEPHONE IIAnover 24300

Corp.

•

8

The State of Trade and Industry

Spencer Trask & Go.
York

Sonic

*

24

Utility

Railroad

might

PDCCPPPCn CTflPK?'
»
El L il IIEU 0 I UUflO

New

Ultra

Sulphur

I

25

Members

Standard

29

.

Reentered

BROAD

Bargeron

Funds

Prospective Security Offerings
Public

WILLTAM

25

Puget Sound P & L

16

Our Reporter on Governments

not

tremendous
armaments

weaknesses

•

Chlorophyll

8>

Notes

Our Reporter's

•

one

National

the day when there is

war.

As

Mines, Inc.

8

;

Recommendations

*

velopment which will render un¬

penditures

Getchell

Securities

Observations—A. Wilfred May

start

but

hope that some of

or

Philadelphia

r

News About Banks and Bankers

na¬

well governed adolescent.

would

to

two-year-old

a

idealistic

and

Wire

Cover

Investment

NSTA

learning to walk and later that of
a

6

1-3370

36

,

to

Teletype NY

7

Indications of Current Business Activity

the

cooperation

got

9-5133

Cinerama, Inc.

■

Dealer-Broker

govern¬

specialized in

'

From Washington Ahead of the News—Carlisle

quite

be

may

Reilly & Co.

Broadway, New York

21

Insurance Stocks_^_____i_^l

Published

have

(Boxed)

Coming Events in Investment Field

somewhat similar to that
now
practiced among States in
the United States, then surely we

ments of the nations now compos¬

For many years we

61

17

(Editorial)

Man's

Canadian

tions,

have

J. F.

16

Reconsider!

Business

mankind

of

Forecast

Reports Profit Gain...

As We See It

Mutual

tory

Conditioning Industry

Regular Features

without

are

we

Air

Finance Executives See Lower Profits in Second Half of 1953

arguments

convincing

human

'

This

United

helpful.

informative article

son

a

the

Uni¬

nations.

If

<s>

15

Direct

im¬

good

necessary

"An

that

the

of

and

the

13

Frederick Shull Answers Donald McLaughlin's Arguments for
Higher Gold Price
21-

of

of

live to

President, The Citizens & Peoples
National

Is

World

an

achieve¬

tions

Unlisted Trading

and

of

summary

dren

.

WRIGHT

G.

world

of" the

hopes
should

abandon.

^

kind

lateral

has

human

sup¬

all, if I may be permitted
in the Biblical vein,

which his livelihood de¬
pends, and if the fruit tree shows
signs of wilt or blight, he does
not
therefore
chop1 down
the
tree but rather prunes and tends
it. I feel that it is the same with
the United Nations; imperfect as

which

I

ments

Gulf Interstate Gas

BO

ainstaking

the

rather

upon

the

p

on

by Ned Cole

make the

same

Line With

Na-

points of other

man

produced

Residential

Mr.

permit it to perish.

continue
a

Col¬

Million

Robertson

pose,

More in

12

'

nurture

reason

strengthen

After
to

$750

the

s?

o n

Level

Supply

Henry H. Heimann Holds Economic Readjustment Has Been
Deferred, Not Checked
;
16/

of

Delhi Oil

3-

Carl I. Wood Heads George "Junior Republic" Fund
Campaign

should

United
t i

tender

very

During
the
past eight
years it has been exposed to some
very hot rays and we should not
be surprised if it has not wilted a
little." But we believe that this is
the

then

William A. Rob¬

on

•

of United Na¬

HILL

Peabody

recital

Sees Price

SEC Adopts Amended Rule

effect

affairs.

weaknesses.

from

new

very

than to

Gold

withdraw

plant.

and

the

upon

Robertson has

a

feel¬

young

all

aware

legislators will

our

George

impressive

In

our

early
is, a

Professor F. A. Pearson

lege for Teachers, Nashville, Tenn.

Joseph G. Harrison
ing that it is
illogical and
unhelpful to expect too much of
so

internal

President,

words,

-

soon

HENRY H.

upon

little,

more

View

are

dangers

and

line,

upon

other

citizens

and

more

Three State Natural
18

Canadian Delhi

inherent in the
philosophy of the United Nations

our

line

line

the

the

that

Tax

•

(Letters to Editor commenting
ertson's article)

p r e-

cept

line;

becoming
of

upon

precept,
p

believe

Inequitable

tions"

that this organization can have on

precept

o r

must

1

"Do

Tax—An

McCormick

Further Reactions to Robertson's "Inside

article

quotation:

reply with

my

Gains
T.

14

a

States.

the United

to

Mr.
with

Capital

—Edward

G.

4-6551

<

10

W.

Dept.

STREET, NEW YORK

Deliver?

Turrell, Jr

Insurance—Roger

obsoletes !

your

7
■

.

M.

Administration

prefer

Picture
6

Wane!—George
Kennan
'

we

5

^

Icebergs"—Bernard

"—Herbert

objective of the United Nations.

peace

Peril

.

revolutions and revolts

ivars,

Cobleigh

The Business Man and the Constitution—Arthur A. Ballantine

Mr. Robertson detailed the record "•

of political instability, featured by

U.

But

political conditions

those

Stock"

Gauze—Ira

GENTLEMEN

Cover

Intra-Allied Dissension by the East River—A. Wilfred
May

Favorable

among

Without

Not

"Defensive

Gold Standard!—Robert T. Patterson

ap¬

issues of July 23, July 30, Aug. 6, and Aug.~13.

our

Investment—Harry D. Comer...Cover

the'

communications received in connection with the views and opin¬
ions expressed

page

AND COMPANY

Outlook for Business and

We

llCHTflMflll

-

Articles and News

3

Every
vertising

August 20,

President»

Chicago

Union,

Dominion

Canada,

1953

city

news,

Offices:

3,

111.

135

etc.).
La

STate

Salle

per

$51.00

Bank

and

Quotation

$33.00 per year.
Note—On

Record

year;

per

of

in

KIPPEN & COMPANY Inc.

year.

Established

St.,

2-0613);

Investment
607

—

Monthly,

(Foreign postage extra.)

account

of

the fluctuations in

the

South

(Telephone

$48.00

S.

Other Publications

Thursday (general news and ad¬
issue) and every Monday (com¬

and

Other

Territories

Fan-American
of

States,
U.
and Members

United

Other Countries, $55.00 per year.

plete statistical issue — market quotation
records, corporation news,1 bank clearings,
state

Possessions,

in

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

be

made in New York funds.

1922

Securities

ST. JAMES STREET WEST,

I

MONTREAL
Tel.

UNiversity

•

6-2463

of The Investment Dealers'
Association of Canada

Members

iii

The

4

(624)

Commercial and Financial Chronicle

.

..

Thursday, August 20,1953

ished goods such as curtain mate¬

By IRA U.

COBLEIGH
Wall Street"

Author of "Winning in

largest bandage

few current items about the two

a

The

Hornbill
his

pause

co-maker!)

a

Wall

over

short

to

suggest

tive

Just

treatment if you
glance in your medi¬

cine cabinet at home and observe

of tapes, cottons, gauzes,
aid kits, plasters and tissues, such
as are produced and distributed on
a
world-wide basis, by Johnson

been

tax

most

conserva¬

companies, has gone in
As

result Kendall

a

synthetically

hair cloth, "Webril," a
non-woven fabric, "Clex," a
new
produced

interlining,

"Curad,"

bandage

plastic

the

and

already

men¬

expansion

equipment

program.

Roughly 10% of this will be spent
in

1953, financed entirely out of
earnings and deprecia¬

retained

allowances.

it has in the past,

51.40

the

is

dend

1948,

and

and

5%

1951.

1949 and
cash

divi¬

common

sells

is

preceded only
by $5V2 million in loans and $2,320,000 par amount of $4 preferred.
around

A
11

distinguished

e r

JNJ

with
management

company

progressive

t,

offers

common

vestment

value, and

a

a

sturdy in¬

48-year un¬

broken record of payment of some

dividend.

Johnson & Johnson

Kendall

Of the two,

Johnson & Johnson
in addition to
being the biggest producer and
distributor of surgical dressings,
it turns out some
1,225 related
and,

JNJ

to

Company,

in

the 1952 year-end the

Ken¬

Company balance sheet
showed
net
working capital of

volume

'

while
of

next

mon

outstanding.

Preferred stock

($3,684,000) and $3,300,000 funded
debt lie ahead of this equity. For
the

past five years, cash dividends
ranged from $2.15 to $2.60,

have

with
net

$2.25

paid last year.
With
$3.13 earned per share for

of

the

24

weeks

(against $1.86,

ended

6/13-53

period, 1952)

same

adhesive

to

tape,

the

J &

time-honored

J

also make

Bondex tape for mending, Texcel
and

'

Permacel

been

a

little

more

about 40% of its gross
from this source, and is more gen¬
erally classified as a textile com¬
pany.
Viewed as a textile, its

II

correctly be described as
dynamic.
Since 1945, sales have
doubled; and followers of Kendall
have been especially pleased at
may

uneven

land, supply gray goods and fin-

ESTABLISHED

CORPORATE BONDS
LOCAL STOCKS

during

maintained, the shares, nevertheless, have ex¬
August Huber
perienced wide price declines in sympathy with
a
general market trend and a changed investment environment.

and

kick yourself for not having
bought some, you may then have

you

1, GEORGIA

LONG DISTANCE 421

to

that these "defensive" issues may not be
If the general market trend remains
continued demand for such issues, on a yield basis,
say

a

could be reflected in still

higher market levels or they should dis¬
play good resistance during interim market reactions.
The points to be

made,

(1)

market

Should

the

them,

as we see
move

higher,

these:

are

issues now cur¬

many

rently depressed and in disfavor, could also do better marketwise
a period.

for

(2) The majority of the "defensive" type issues are currently
high historical levels and many investors are acquir¬
ing these issues on the broad theory that both the economy and
at relatively

the market
the basic

the record

some degree of later slump.
If this is
buying these shares, it may be well to consider
during past periods of major market declines:

Standard

Utility

8

headed for

are

reason

for

Poor's Index of Stock Groups

&

(1935-39=100)

15)37

1938

1940

1942

1946

1947

High

Low

High

Low

High

Low

Operating___ 136.4

69.3

110.9

54.2

132.6

94.9

115.6

73.3

100.7

45.2

105.1

76.0

120.0

47.5

120.8

77.2

248.6

160.1

124.6

-38.4

101.1

62.4

163.0

120.6

131.0

70.4

90.3

52.8

156.9

113.3

_

_

Chain

Store

Chain

■

)

}>\t.

i

t

r i

•

% Decline
t.'

J

From 15)37

% Decline
Frem 15)40

High

to 15)38 Low

Utilities

_

_

Tobaccos

Food Chains

_

Food Companies
Variety Chains

51%

36

55

27

60

35

35

28%

45

39

26

46

41

28

a

forecast of any

chiefly, for those who

High

to 1947 Low

49%

This brief memorandum is not

under the guise
for Thought."

% Decline
From 15)46

High

to 1942 Low

kind. It comes

be interested, as "Food

may

plaster

—another Kendall product!
Whereas
today's piece drifted
off into a rather specialized and
almost morbid

field, depending as
importantly on illness, ac¬
cident
or
injury for its major

it does

Edwin Bird Wilson Dies
Wall

Street

Advertising Agency

Executive Was 75 Years of Age
One

of

the

"Street's"

honorary life member of the Fi¬
nancial Public Relations Associa¬

tion, and a member of the Down¬
town Association, Princeton Club
and the Pilgrims.

most

sales, these gauze and bandage
makers do provide vital products;
they make them and sell them

highly regarded financial adver¬
tising experts, Edwin Bird Wilson,
LLSVILLE, N. Y.—David A.
passed away at Lime Rock, Conn.,
well, and profitably. They have age 75, at the home of his daugh¬ Doebler, Jr. is engaging in a se¬
curities business from offices at
not only solaced the ill and in¬
ter, Mrs. Edwynna Labouchere.
165 Madison Avenue.
jured, but also have afforded con¬ Mr. Wilson was born in Dunbar,
siderable

comfort

their

to

stock¬

holders through the years.

Merrill Lynch Adds
(Special

to

The

OMAHA,

Financial

Neb.

Pa., and while

a student at Prince¬
University, was college cor¬
respondent for several Philadel¬

phia,

Pittsburgh

Patter¬

Building.

With Paine, Webber Co.
Financial

now

with

Chronicle)

—

Bank

& Curtis, Huntington
Building.
i '

(Special

to

The

Financial

MARIETTA, Ohio

Chronicle)

—

>

Wylie has become affiliated with
F.

Bank

&

a

W.

securities

business from offices at

410

24th

City.

Street, New York

University Press Club and,
graduation in 1901, he be¬
came Advertising Manager of the
Estate

burgh.
Wilson

Trust

Co.

of

BOND

Pitts¬

1909 to 1916, Mr.
Advertising Manager

From
was

West

Trust Co. of New

120

Wall

which

$500,000
CLABK

Including

$10,000,000.00
Actual

cial

Corps.

of the New

Advertisers'

He

Association,

an

Valuation. $500,000,000.00

"..Write to:

,r

LAUREN W. GIBBS

was

York-Finan¬

.

Fur sale notice and brochure

a

Artillery

$100,000,000.00

Approximately

Onion Pacific & Utilities

specialized

facial resemblance to exPresident Woodrow Wilson, and
served in World War I in the 9th
Coast

OBLIGATION

GENERAL

COUNTY, NEVADA, HOSPITAL

Assessed Valuation

Street, New York City,

in distinctive
bank advertising. Mr. Wilson bore

SALE

August 26, 1953

York, later establishing the Edwin
Bird Wilson Advertising Agency,

Company, Peoples President

Building. ■='

Samuel

and

engaging in

are

after

quite

Robert B.

Craig Formed

Nell

ton

of the Bankers

Lenox H.

Paine, Webber,

Nell &
Renee

Chicago Craig

Mr. Wilson founded the Prince¬

Real

to The

and

newspapers.

Chronicle)

Timothy L.
Merrill Lynch,

—

Beane,

gavid Doebler Opens

ton

Joins Carl Mead Staff
ATLANTA

is not

satisfactory,

revealing solid
sol¬
And, if some day Kendall

Jackson

RHODES-HAVERTY BLDG.

these "defen¬

price diminution. While earn¬
ings and dividends may be comparatively well

sheet

COLUMBUS, Ohio

Robinsori-Humphretj Company,Inc.

major market declines,

Variety

If Kendall

corn

earn¬

sive" stocks have not been impervious to con¬

Food

Blue Jay

steel, heavy machinery, automo¬

siderable market

28

a

which

year,

to a markedly
degree.
However, judging from past
performance, it may be well to recognize that

Tobacco

for

next

ings, and dividends fluctuate

Food

need

under

lesser

6

smartly,

eliminated

biles, building, etc.—and thus their sales,

2-for-l

Rand is




characterize

5

advances

qualities

cyclical economic influences—which normally

inflated. There \yas
split in 1948; and the

common

be

to

particularly

(Special

WALNUT 0316

scheduled

19

vency.

(1) Their defensive
business conditions;

should result in higher net earnings.
These industries are less subject to broad

seem

ance

largely by:
general

(2) Sales and pre-tax earnings' should be well
sustained, while (3) Excess Profits Taxes are

of the common,

Slattery is with
Pierce, Fenner &

1894fc

prompted
favorable

COMPANIES—

son

4

be

price

STATE AND MUNICIPAL BONDS

The

to

less

the current over-the-counter

surgical shares today sell at about six times
current earnings.

pressure-sensitive
tapes, competitors of Scotch tape the 17% sales increase for the
(and, as an interesting coinci¬ first 24 weeks of 1953, since the
dence, note that J & J, and Min¬ last half of the year is tradition¬
nesota Mining, creator of Scotch ally productive of better volume.
Best known
tape, are both expected to cross
to
the public
is
the $200 million sales milestone probably the Bauer and Black di¬
this year).
vision, which, from plants in Chi¬
Thus you see here again, a com¬ cago and Rockford, 111., and in
pany diversifying its output well South Bend,
Ind., produces and
beyond its traditional field, and distributes surgical dressings, ban¬
applying research and plant ex¬ dages and gauze, elastic stockings
pansion toward a sustained growth and supporters, "Curity" adhesive
in
profitability and net assets. tapes, "Curad" (a plastic bandage
Net sales have shown a
steady that stays on under ,water) and
march from $33 million in 1938 to "Polyken,"
a
pressure
tape for
$191.7 in 1952; and only one year office and industry.1
In the textile end,
(1949) failed to produce a larger
10 plants,
sales total than the year that pre¬ seven
in
the
North
and
South
ceded it. Increases in net earnings Carolinas, and three in New Eng¬
have

performance of such relatively stable and "defen¬
groups as Utilities, Tobaccos, Food Stores, etc., reflects a
persistent investment demand for such issues. This demand appears

Iressing production and sales, de¬
rives only

at least, to

or,

The market

optimistic viewpoint about this
year's dividends is justified, and

a

higher levels

downward trend.

a

sive"

an

40, does not

cy¬

per¬

attractive at the present time.

Company were only
a
pharmaceutical instead of, ba¬
sically, a textile, then a much
more exalted price-earnings ratio
products including "Yes" tissues,
"Tek" toothbrushes, elastic ban¬ record
during the 50 years of its would, no doubt, prevail. Even as
dages and supporters, floss and jorporate existence is way above it is, some rather solid qualities
dental supplies, baby and other
average, and in particular its prog¬ appear in its favor—management,
type powders, creams, and lotions. ress since the end of World War research, sales moxie, and a bal¬
addition

good resistance in

via the stock $25 V2 million and a book value of
was a 100%
$43.25 a share on the 800,000 com¬

1947

indicated
The

rate.

57

in

Kendall Company

In

for such issues could lead to still

There

dividend

dividends In

come,

At

Value at $43.25

those less subject to broad

a
persistent demand for such issues. Says if
general market trend remains satisfactory, a continued demand

This
Share Book

as

influences, Mr. Huber points out market

formance reflects

arrangements,

offers "Perx," a

now

dall

a

dividend route.

Johnson, and its nearest com¬
petitor, Kendall Company.

larger

pension

research.

sponding build-up in book value.

(less than

stock

&

the

and

industrial
for

tion

the array

is

fare

third of net, on
the buyer here
should consider the heavy annual
earnings plow-back, with corre¬

as

surgical

emergency

clical economic

approach to labor economics. Wel¬

type

view¬

the

where

His extra reward may well

their wide repute

dressings and many standard items
protecting your person, and

Defining "defensive stocks"

industry,

the average). Thus

B (for
surgi¬

for

stockholders'

occurs

have

dends

reference, let's move on
consider our two curative cor¬
of

Possible

Dividend

wealthy holders influ¬
dividend policy, cash divi¬

ences

topical

manufacture

at

bracket of

labored

So, with i this somewhat

often

as

cal subsidiary).

don't.

textile

point, it is important to know that tioned.
large blocks of the 2,093,308
By the end of this year, Kendall
common shares (listed NYSE) are
Company will have laid out $21
reported to be closely-held and, million in a postwar plant and

sterilized with double letter dress¬

the

the

of

very

For,
you see, if one of Rufus's wouldbe retrievers, had fallen on his
puss during the pursuit, and sus¬
tained injury, he would doubtless
have been soothed, swathed, and
ings by J and J, or B and
Bauer' and Black, Kendall

(1952 year end)

the

From

Siamese

selections.

company

sheet

Stock

turkey almost
provided ad¬
vertising for

Ira U. Cobleigh

porations with

held down,

$5,236,000 but could easily be val¬
ued at $15 million today. Foreign
sales are now over 20% of total.

that this soar¬

ing

Spencer Trask & Co.
Members, New York Stock Exchange

was

balance

I

cor¬

omission

and to

for

teristic

profit-wise, by price ceilings dur¬
come

rect this feath¬

ered

Market Analyst,

up¬

To illustrate, net in¬ plus a satisfactory wage scale,
$3 million in 1945, but have apparently operated here to
in
the
next
year, 1946, rose to over maintain productivity, and to keep
Loan Winaow
The best year was a labor force of some 8,000 on the
of
the Chase $8 million.
National Bank, 1950 with a net of $13,280,000.
job, with no strike stoppage for
were
Important in the progress of more than two years.
missed
Kendall has not contented itself
by this column J & J has been its overseas sub¬
due to absence sidiaries.
Company has plants in with turning out just a standard
on
Cape Cod seven foreign countries, including line of surgicals and textiles, but,
(mine, not the Canada. These are carried on the in common with other progressive
hasten

to

great labor

ing the war.

(he couldn't get
at
the
Personal

hornbill's).

today's

the

particularly in the past 15 years,
it is important to note the Kendall

since the company was

Rufus
Street, and
of

flight

recent

of

heavals and bitter strikes charac¬

& Johnson

makers, and their dividend coverage — Johnson
and the Kendall Company.

view

Groups

By AUGUST HUBER

pers.

In

Unrolling

"Defensive Stock"

rials, sheetings, poplins, interlinings, print cloth, "tobacco" cloth
(used to make surgical dressings)
and
"Curity" (trade name) dia-,

Profits, Not Without Gauze

Zion's
"

Savings Bank BMg.
City* Utah
!

Salt Lake

Number 5248

Volume 178

...

The Commercial and Financial

Infra-Allied Dissension
The

Retail

State of Trade

Food
Auto

and Industry

Price

Failures

tne

the higher level political and

prepare

in

lines, total claims for un¬
continued to be down discernibly

in mid-June than a month

May

Wilfred

A.

industry in the week ended

at 8,513,782,000
kwh. was reg¬

cess

climb back into the drivers seat, states
"The Iron Age," national metalworking weekly, this week. They
are convinced, this trade weekly declares, that a buyers'
market,
if not already here, is just around the corner.

publication, the shift in rela¬
going on all sum¬
weeks before the
extra push. The
Within days you'll hear a lot
business—as if the plague had

An "Iron

Age" survey of steel buyers in major

and

Security Com-

tinuing

mittee

with

room

few weeks ago:

(1)

Feeling

ness

and

sion,

and

the dissension

in turn

sat-

will darken the outlook for a

Delegate

Soviet

Thus,

Vishinsky at the outset of the pro-

ceedings here, just before his pro-

promptly turned down,
invitation to the
China
and North Korea would assure the
later
Conference's - success,
and

posal

was

declared that an

Communist governments of

manufacturing

big change in their thinking from

vire
vice

versa
'
versa.

a

material are taboo, ex¬

plants are up to snuff, or nearly
inventory correction is taking place now.

still, concludes this trade

authority.

automotive industry car output

:Svelb^L1DSonnded

112,491 in the preceding week, accord¬
Automotive Reports." In the like 1952 week only
22,776 were made, due to the steel strike. Last week's rise re¬
sulted for the return to production of Detroit area Chrysler plants,
which had shut down for one week for inventory.
The current week car production is expected to turn sharply
downward due to the destruction by fire a week ago of the Gen¬
eral Motors transmission plant at Livonia, Mich.
12% to 125,959 units from

So far this year

according to "Wards," the industry has built

4,093.533 new cars, up 69% over the 2,416,445 in the like period
of 1952.
In all of last year the industry made about 4,300,000
new cars.

upon

farm expenditures the United States De¬

partment of Commerce currently reports that farmers spent
least 10% less for new plant and equipment in the first half

said.

than they did in the like 1952 period. The main reason
was a 10% decrease in farm income, the department
Farmers' income in the first half of 1953 was at an annual

rate of

dip

$17,800,000,000, compared with $20,200,000,000

in the 1952

period.

1953 will hit a new high of
revised estimate of the United
States Departments of Commerce and Labor.
The new total was
$1,000,000,000 higher than a forecast made earlier this year.
A
little more than half
of this prospective increase has
already been achieved, the agencies reported.
Construction in
the first half was valued at $16,000,000,000, compared with $14,800,000,000 in the 1952 months. In the second half of this year,
outlays are expected to rise to $18,600,000,000, against $17,800,000,000 in the last six months of 1952.
New

-

construction

$34,600,000,000,

and

outlays

according

Soviets

the

settlement

the

force

own

only puzzle is why
people in this country
in with it."

anxious to fall

And today»s observer at the
United Nations is likewise puzzled .f
t actually horrified!

have held themselves out as "neutrals.' In fact, following an amaznew concept in history, pracW. H. Hltzelberger
Really all the major powers in
w H Hitzelberger, 59, a Vicethis Cold and Hot Wartorn world president of the Republic National
aie more and more considering ganh of Dallas, and former Execthemselves neutral. Accordingly, utive vice-President and Genwe see the British actually be- eral Manager of the State Fair of
seeching the United States not Texas died Aug 15 1953,
to offend the Russians by ventur- - ■
' . .
,.
'„
,
.

An outstanding Dallas business

in

to a

charge _of

bv

"thS what?"-that of course ttie Soviet floors above four below ground)
was supplying munitions to Com- ™ being bu.lt in downtown
wi d
munist China, whom the UN had Dallas,
in all °"lclal!y
pronounced • an 'ag"
Forms Calif. Investors
-

ening anti-American feeling
'

.

deni^tpd

Kppn

Irqc

oc

orpac

abroad,

these

"halls

the

monolithic intransigeance, and in-

absurd

broad-

issuing from the Kremlin's

,

...
fSjwial

to

Chronicle)

The 'Financial

BEVERLY HILLS, Calif.—Stan-

that

i

t Formerly Vin

*

Too bad for the United States
when the . United Nations

^during our recent visit
^
!

this space

sides

6*v55Qiv

tin

met at President Truman's hasty ley L. Ross has opened offices at
call at the .outbreak <of war in 450 North Camden Drive to enJune, 1950, its members did not gage in a securities business. He
4hen, as now, declare their neu- was formerly a representative of

tGer yha°d 'uie ^effect « trality and refuse to "stand up to midenberg-Ross & Co.
Western
lonely

ifying
t h e'
against ^ the

bloc.

five- member

members
.Soviet
But

now

following
the
technique of his boss Mr. MalenVishinsky,

Mr.

FRANK
THE

and

the

Kremlin's

Foreign

carrying on the lethal

Office

States

for

its

a

to

the

forced

of

tion

a

issue;

labor

current

repeating

release

the

problematical.

Attitude

MEMBERS NEW

the

public debate on the matter. But
whether
many
of our
fellowdemocracies will go along even to
this extent in irritating Moscow,
is

coggeshall &

via the
circula¬

and findings and asking
General Assembly's full

charges
for

an

mild retaliating ges¬

Mission's

S.

U.

Kumm

associated with us to conduct
Unlisted Securities Department

has become

re-needle the Russians on

ture

that

in announcing

Mr. J. William
i

part, has not neglected the oppor¬

tunity for

take pleasure

We

sores.

United

1953.

peace-mir¬

offensive; is exploiting every
possible opportunity to aggravate
the rapidly emerging intra-Allied
the

OF JULY 31.

in

age

And

ANNOUNCE
COPARTNERSHIP OF

WILLIAM KUMM

OF THE

DUNNE 8c CO. AS

fellow strategists of

his

kov

DUNNE AND J.

TERMINATION

MEMBERS

111

THE

DUNNE, AS

New York 6, N.

SOLE PROPRIETOR,

CONTINUANCE OF HIS

Y.

ANNOUNCES

BUSINESS UNDER THE)

NAME OF

Issue

question of issuing an in¬
vitation
for India
to the later

EXCHANGE
EXCHANGE

Teletype NY 1-3608

2-7180

FRANK

Toward India a Basic

AMERICAN STOCK

Broadway

REctor

hlcks

YORK STOCK

The

Steel Output This Week Set at 96.3%

r

of Capacity

...;One of the worst bottlenecks in the supply of steel is be¬
ginning to crack and it well may herald the return soon of a
ready availability of most forms of steel, says "Steel," the weekly
magazine of metalworking the current week.
•'
'!
The bottlenhcik now yielding is hot-rolled carbon steel bars,
whicteare the most universally used form of steel, it states, adding

is already revealed
intra-Allied wedge, partic¬

Conference,
as

an

alarmingly, be¬
Britain, France, and Can¬

*




sre

Continued

on page

28

DUNNE
MEMEERS

NEW YORK

ularly,, and most
tween

ada*

the

on

one

-

w/kL

a

terms.

and intel¬

obvious

the

many

seem

to

their

on

tactic is

ligent;
so

best
their

possible on their friends',
that
this
will
eventually

enable

The

on
and

intentions

enemies'
worst

their

putting

of

construction

possible

ing to imply that in the Korean

members—reflect in eth

o wa

at
of

this year
for the

habit

ous

mountingHfts^Xeen^thd West's

discriminate. and

last week rose about

ing to "Ward's

Commenting

us—

"compro-

-

Some purchasing agents are

In the

moved

p

.

become

of immediate fear re¬
from them, the democ¬
racies will revert to their curi¬

pressure

mu.

held in check by top man¬
agement decision to review their steel position in relation to.
business prospects.
Buying policy * is generally , under careful
scrutiny,,and some changes are being made.
To Steel producers handwriting on the walls has been signal¬
ling an easier market since May, though none could name the time:,
it would arrive.
Some customers were still beating - on their.
doors for more tonnage, while it was scarcely noticed others had
(4)

made

was

War they were "on the other side"
threat
to the wnriH's
stn- and
not neutral. Surely this is headed the Bank s Industrial De
hilitv
from
dissension
in
the
quintessence
of absurdity, in Partment,
andleasing
was in
bility
from,
dissension
in
the the lif?ht
of Mr Vishinskv's frank
construction,
and manageUnited Nations, which in the past ':l.m ssinn to the Assembly eariier
mcnt of the Bank's new 40-story
was bad
enough on an East-verwith
a
nroud
'so bank and office building (36

buying.

Conversion and premium priced

few instances

hope

Disintegration of the Democracies

general that they can now take a

(3) Inventories in a lot of
In

a

plain in Malenkov's speech.
It is that with
the solidifying

,

is almost

than

peace

secure

"Moscow's

llkf the Russians,

£eace'

to

and strong one.

very

the organization's stultification. In
the words of Prime Minister
Nehru "anxious to perform some
useful^ function m the interest of

isfactory definitive Asiatic agree-

js

likely
firm

the intra-U.N. rift, as well as

over-

Our friends' war-wearikowtowing before the
Russians are feeding the dissen-

cept in special cases.

so:

,

antics

present

incredible that so soon
after the 1930s, there
are
so
many people who
believe that
a
concessive diplomacy is more

sue-

r-

breather in their steel

(2)

sabotaging

the

depicts

«it

mise" resolutions at crucial mosubse- ments (still another one being' ex-

of

the

of

to

embarrassment

their

representations

Washington, and the "Eteon-

Gf its fellow-Britishers thus:

- beaver
beneficiaries of
grain, etc., etc., etc.)
has
been nothing but a source of con-

%

a

torial

Far

ment.

•

the nation shows a

versus

only the two sides con-

war

solidarity is in

of

making

omist" in this week's leadins edi-

our

lapping.

fourth quarter decline was
expected. Mills are booked solid through October. A few are
booked solid for the rest of the year on most major products.
Others are having some trouble filling November and December,
still a good many rolling days away, it states.
areas across

is

of the Ko-

eager

this

in

All of these elements are

A

really be that bad.

won't

Lodge,

Mr.

Eastern Conference; pected here momentarily),
they are highlighting the broadening schisms between the Allied
Phony Neutrality
democracies; and they are demonThe present position of India
strating the rising tide of the and the West's divergent attitudes
democracies' appeasement spirit,
thereto typify both the essentials

tionship between supply and demand has been
mer.
It was gaining momentum the past two
Detroit Transmission fire disaster gave it an

It

by

settlement

goings- performance here by the Indians
com(while
still
behaving
as
the

degree

failure

or

quent

turn, are getting ready to

the

indicate

will

long time for the worm to

just struck, it adds.

a

London

the

of

words

the

their

Mother Hubbard garment, "covering everything, touching nothing."
Also, of course, the past

r e c-

"Political

period ended Aug. 1, last.

pendulum will swing faster now.
of talk about the decline in steel

for

position,

States

at the

sions

added.

Actually, continues this trade

United

the

explained

rean

ing days' ses-

shifts to a labor short¬
"in spite of continued
employment gains in most of the surveyed areas," the agency

buyers, who have waited a

ag¬

an

"Economist," the only current in-

.

The
on

earlier, it stated. Only five areas indicated
age. The easing of labor supplies occurred

Steel

is

tions.

plentiful in some of the nation's employment centers
in a year and a half. In a survey of 182 areas,

istered in the

as

that

signifid i

cant

for the first time

Aug. 15, a further all-time high record was set
kwh.
The previous high record of 8,511,622,000

for

the Korean

three

respect to the labor situation the United States Depart¬
of Labor announced this week that the supply of labor has

With

power

China

Red

Appeasement in Reverse
in

revealing t h e cerned should be represented. The
wide scope of Soviet
Union, he maintains, on
its importance the other hand wants the deliberain
at
least tions to
be like the
venerable

Despite scattered lay-offs in some

the electirc light and

call

to

conferences; stance of Allied

appeasement

while

nference

armistice

from the level of a year ago.

In

o

provided

week a year earlier.

nine showed more available manpower

displaying

gressor!

This

—

appreciable change in over-all industrial

become more

tude

NATIONS, NEW fight to keep India out. The Britspecial session of ish here, as at every opportunity,
General Assembly called to are pushing for general discussion

YORK

production was
reported for the period ended on Wednesday of last week. How¬
ever, it is worthy of note that output continued to be moderately

ment

later

UNITED
f

c

employment insurance benefits

again

By A. WILFRED MAY

J
above the level of the like

and
the forti¬

Koreans as aggressors,

Index

Production

Business

the

branding

North

By the East River

Trade

Commodity Price Index

forthCommunist

to fight for them by

us

rightly

Electric Output

Carloadings

No

ing

Production

3

counted"; instead of encourag¬

be

Steel

5

(625)

Chronicle

United

States

the U. S.

on

side, , and, the
the other. . For

practically alone among

the great powers

will conduct the

&

CO.

SECURITY DEALERS
25

WHITEHALL 3-0272
TELETYPE NY

1-956

ASS'N

BROAD

NEW YORK

STREET
4, N.

Y.

The Commercial and Financial Chronicle

€

.

.

1953

Thursday, August 20,

.

(626)

factors in competi¬

become greater
tion.

Favorable and Unfavorable

(10) The political situation is
uncertain, particularly in the field

Picture

Factors in Business

of

foreign policy as it affects
foreign countries.

By

BULLIS*
Board, General Mills, Inc.

business

be

may

It

.

to

seems

able

factors

ture

are:

only
in

in

business

the

pic¬

world

As

continues

constructive

need for public con¬

to come. The

development

struction,

industry.

principally
highways
is increasing.

•

and schools,

trend

a

resources

be utilized

income taxes scheduled for Jan. 1,

ment

1954, will ease the burden on busi¬

models to increase sales.

Harry A. Bullis

the

for

wealth

of

for

less

and

unproductive, destructive material
war. In addition, production for

entails better earning

use

and give

ness

outlook

the

and

relaxed

been

is

of

lead

decision

of the govern¬

the

to

with

strong

dynamic

a

U

.

A. Ballantine

Arthur

view.

in all lines.

cumulated

ment.

Only 2%%

the

of

civilian

labor force is unemployed.

The weekly index of whole¬
sale commodity prices turned up
(4)

There
not

are

Factors
factors

some

are

which

favorable:

so

(1) For
tihe past two years
prices of basic commodities have
been declining, principally in farm

higher
1952.

than

The

ments

signs

of

for the first

half

of

recent

earnings state¬
corporations show no

of

much-heralded

a

reces¬

trols

not

last

For

the

first

half

construction

new

by

year

about

of

this

exceeded

8%.

Business

expenditures for plant and equip¬
ment in all major industry groups
are

above

pected

last

and

year

maintain

to

are

their

be

acreage

in

the

of money rates which

ly has affected

undoubted¬

lines of busi¬

some

ness.

Installment debt is great. It
reached a total of over $20 billion
(3)

in

May. This is largely the result

pace

of

an

upsurge

in demand for,

con- :

through the third quarter. The ad¬

sumers' durables. Some decline in

ditional facilities planned by cer¬
tain industries such as electrical

the demand for

goods

equipment, public utilities and the

ability
*A

to sell increased output.

statement

by Mr. Bullis at the An¬
Meeting of common stockholders of
General
Mills,
Inc.,
Wilmington,
Del.,
Aug. 18, 1953.
nual

(4)

may

in

tailment

New

York

American

New

York

Chicago
New

Exchange
Exchange

Exchange,
Board

Orleans
And

Exchange

Cotton

Commodity

of

Cotton

other

residential

upward

production

and

(6)

Inc.
Trade

Exchange

Exchanges

effect

Exchange Bldg.

NEW YORK 4, N. Y.
PHICAGO
,

DETROIT

has

in¬

stopped

expenditures

for

plant

The high production rate in

on

steel

a

resultant

output.

Inventories have been rising
during the past few months while
sales do not show

a

commensurate

increase. It is possible that accum¬
ulated inventories will have to be
decreased.

Frank Dunne

_

Kumm

have

aid

will

the

business¬

exercise

of

for

opinions
these

the Court

the

announced

ter¬

that

,

vio¬

any

Power

decisions of
special tax upon
child

producedn by
invalid

was

child

by

a

(Bailey

labor

Drexel

v.

Furniture

Dunne

&

Dunne

will

Co.

as

business

ment

the

under

Offices

July 31.
his

sole

as

name

of

New York

Mr.

invest¬

proprietor

Dunne

located

are

Street,

of

continue

at

25

&

Co.

Broad

Co., 259 U. S. (1922))
—likewise the prohibition of com¬

being

goods,
themselves

in

(Hammer

.

they not
harmful

251

Dagenhart, 247 U. S.
(1918)). The latter decision

has

been

ruled.
312

City.

in.. such

merce

v.

since

(United

U.

S.

expenditures
defense

necessitate

and
con¬

tinued adjustment in the economy.

terstate

States

J. William Kumm With

cided
all

Coggeshall & Hicks
J.

William

geshall
New

has

become

the firm of CogHicks, 111 Broadway,
City, members of the

with

&

York

New

Kumm

York

Stock

Ex¬

change,

an

unlisted

se¬

curities

de¬

partment.

Mr.

Kumm

for

in

public interest to substitute
hodge-podge of the rule

the

Smyth v. Ames—169 U. S. 466,
encouragement
of
conscious

an

obscurity

ing

years

as

harmless

the

minor matter
exercise

years

been
ner

&

in

Co.

a

depending

has

taxes

An

apply if the corporation retains
earnings beyond what is regarded
as
the reasonable needs of
the
In addition any amounts

business.

corporation
in the
return of the stockholder to in¬
dividual income tax rates running
dividends

as

the

from

withdrawn

subject

are

from the minimum rate of
beginning
at the $1,000
to the maximum of 92%...

up

22.2%

bracket

been

the

to

has

substance

No

much

shown

been

declaration

quoted

of Justice Holmes that "the power

is

Co.

v.

tax

the

not

U.

the

The

14th

the

due

U.

S.

619

clause

process

Amendment applying

states

held

was

restrain

the

tensive

regulation

in

states

not

most

of

power

to

far

Hotel

Southern

Co.

de¬

to

Co.,

man

301

U.

S.

on

taxing

The

businessman

of

for

but

power

count

on

business¬

tution's
would

assuring

the

yield

what

him

Consti¬

he

rates

would

that
re¬

The:

of his

should

con¬

Federal Government

upon

own

no

is

protection from extremes

he

power

must

constitutional guar-,
public acceptance

doings and needs.

businessman of today

hind

tax

providing the frame-,

as

our

governmental

rely not

to

thankful for the Con¬

antees but upon,

days when the

power.

to destroy remains true.

to be

work

of

the

that

the power

stitution

public utility field, gone

could

shall

(Nebbia

(1937)).

the

Federal

tinue

(1937); Carmichael

Coal

limitation

no

223 (1928))..
go, there
the extent of

p.

decisions

the

declaration of Chief Justice Mar¬

ex¬

Parrish,

v.

as

business

New York. 291 U. S. 502 (1934);
Coast

218, dissent,

S.

the

301

power

the Indians
businessman

himself.
must

The

operates be¬

and

stockade

J. William Kumm

active

the fruits

of

what does regulation matter?

way,

de¬

to

part

greater

taken

is

are*

an

of

application

the

on

complicated

corporate enterprise are to be
by the
government any¬

Machine

Davis.

v.

In the

taken

on

provisions.
additional high penal tax may

vering

495

Dunne

and

power.

corporations now aggregate 52%
and on top of that comes the ex¬
cess profits tax, the exact amount

Davis, 301 U. S. 548 (1937); Hel-

a

pait-

taxing
income

the

of

is a
the

As

(Stewart

West

nine
he has

compared to

as

Federal

The

regulation

of

power

levies

300/U. S. 379

the

be said that any exercise

It may
of

to

v.

securi¬
For

reach¬

stroy while this Court sits." (Pan¬
handle Oil Co. v. Mississippi, 277

v.

sugar

in

assumption

the

on

long as the result appears
its basis is irrevelant."

so

Opp Cotton Mills
v.
Administrator, 312 U. S. 126
(1941)) and the social security

specialist, in
ties.

confusion

or

result,

a

the

supra;

under their police

many

businessman.

Darby,

to

has

ray

a

wages and hours (United States v.

of

known

the

to

and

case

afford

If

support
regulation as of

of

Hope

some day

of

has

sufficient

be

(1937)).

to

conduct

to

manner

be

over¬

v.

100, 116-117

commerce

the

to

Darby,
(1941)).

expressly
'

the

in

may

comfort

of

that

frustrated

was

back

said

be

unjust and unreasonable."
Three
of the
Justices filed
dissenting

rather

years

William goods

and! J.

mination of the co-partnership of

past

government

foreign

Dunne

effect of

total

cannot

the

SEC, 329 U. S.-90

v.

"the

for

(American

Congress

some

Frank

been

(7)

by

Liqht Co.

just

all that the Court found necessary

builds

In its efforts to stamp out

associated

of

equipment.

(8) Reduction
N. Y. Cotton

construc¬

trend

ably be reduced, with

Stock

no

the automobile industry will prob¬

f

Stock

been

begun to decline.

The

law.

de¬
fixed
compensation;
any

phrase that "it will little advance

great

of

for

standard

S. 591)

for

is

it

rely on
for. protection

conduct

own

(320 U.

necessity

late

against extremes of the
of governmental power.

labor

tion. Construction contract awards
have

business

Members

has

and leveled out. Some decline may
be expected from the high level of

H. Hentz & Co.

his

Co.

Justice Frankfurter used the witty

must

he

Supreme Court in Federal
Commission v. Hope Nat¬

of

of

around

standard

act

Constitution

that

and

man

The

decisions

The power of Congress over in¬

there

ing, tighter credits and higher in¬
terest rates may lead to some cur-;

dustrial

1856

stockade

no

occur.

While

substantial decline in home build¬

(5)

Established

durable

consumer

the

that

the

Power

order

(1946).)

1

tightening

a

Court

Supreme

clear

&

in

ex¬

chemical and petroleum industries,
are evidence of confidence in their

the

private
without

use

compensation was left
misty
in
Smyth
v.
but in i.941 the decision

Ames,
of

con¬

declines

There has been

Under

Congress.

of

compensation.

just

that

made

of

public

for

rate

in absence of authorization by

lation

offing.
prices has

wholesale prices.

be

not

standing the absence of

the

consumer

yet reflected

(2)

(6)

and

to

appear

The index of

sion.

year

troublesome

be

somewhat

are

could

seizure

the

to

somewhat

was

public utility hold¬
ing companies were in general
lawfully built up, yet the Court
had no hesitation in deciding that
Congress, believing their existence
against public interest, could re¬
quire their dissolution notwith¬

during July. Prices of farm prod¬
products and basic metals. While
ucts showed improvement.
farm prices will receive continued
(5) Preliminary
estimates
of
support next year, surpluses will
corporate profits by and large for
the first half of 1953

that

in

decision

effect

just

that

the Federal Gov¬

That

.taking

for

property

con¬

ernment, but simply to the effect

The

Unfavorable

We still have full employ¬

(3)

rather

(169

Ames

landmark

law.

the

bidding

the

bound

Su¬

1898 in the

v.
a

broad

very

Gas

Actually the steel decision
not that the industry could

was

gave

nied

-

long

had

the

clause of the 5th Amendment for¬

ural

industry

Smyth

constitutional

not

firmed

not be seized by

Proprietor

7 9

of

466),

the

strike

will

Our

343
5

,

v.

S.

rates

of

Court back in

seize
steel

prosperous,

economy.

S

.

&

o.

U.

eroding

conclusion

the

could

.

Prosperity, with satis¬ for an adequate supply of credit
citizens, as in the past, will press
profits and
satisfactory in the future, according to the de¬
forward with optimism and faith
real wages is more feasible under mands of the economy.
a peace economy than under a war
in the future. General Mills will
(10) In some areas of business,
economy. In
any event, pending
such as textiles and liquors, ad¬ share in that progress.
the
outcome
of
political
con¬
justments have been going on for
ferences, it appears unlikely that the
past two years. There has been
the truce will affect business to
pressure in many areas for im¬
any material degree.
proved management methods, and
(2) Consumer
disposable
in¬ improved machinery and equip¬
come is continuing at a very high
ment to increase productivity. De¬
rate/. Likewise savings are at a clines will not come all at once

the future.

C

(1952) that the
President

margins.

high level. High savings mean ac¬
purchasing power for

Sheet

Tube

factory,

Sole

Court

Youngs-

town

new

States

and

Su¬

preme

in

re¬

decision

the

of

develop¬
and

point of view,

United

the

believe

continue

The

cent

production

products

new

From the business
I

have

controls

Monetary

(9)

will

it

and

people more money

spend.

to

of

civilian

extremes of the exercise of powers

Sawyer,

in

return

preme

thing for everyone. It will require

efficiency

against

protected the businessman against

ment.

accept¬

upon

doings and needs.

been

Increasing competition is a good
greater

own

supposed that

•

our

more

It was sometimes

citizens.

their

for

seek

of his

the Federal Constitution helpfully

and services.

can

(8)

peace

creation

constitutional guarantees, but rather

on

ance

there are great markets in
the world awaiting an exchange of
goods

providing framework of Federal Government, he must

as

rely not

more,

The removal of excess prof¬
its taxes and reduction of personal

toward

businessman should continue to be thankful for the Constitu¬
tion

We do have in our country ag¬
quarter, but
other
government
expenditures gressive business leadership, high
leveled off. We may expect mod¬ managerial morale, great natural
erate reduction in defense expen¬ resources, and that high rate of
ditures, but government spending capital
expenditure which pro¬
in various forms will be a large duces a rising standard of living
factor in production for some time —something
which
all
nations

transition

With

reviewing Supreme Court decisions
relating to the Constitutional powers of the Federal Govern¬
ment to tax, control and regulate business, points out, although

second

the

during

direction

•orderly, it
should permit

in

increased

security

national

for

in

peace.

high point

a

receded slightly and
leveled off for April,
May and
June.
Government
expenditures

may

tend slowly

The

index of industrial

March,

in

Korea, the

joi

the

is production reached

there

present

at

truce

a

the

Gross national product for
second quarter of 1953 was

(7)

favor¬

still rising. The

While

(1)

that the

me

Prominent attorney, after

of economic activity, but
there do not appear to
be any signs of a drastic slump.
There are any number of shockabsorbers, such as social security,
unemployment insurance, pension
funds, and especially the backlog
of
public projects. The present
high consumer income warrants
the
thought of
continued high
domestic
expenditures. Further¬
plateau

reduction from the present high plateau of economic
do not appear to be any signs of
a drastic slump."

a

Formerly Under Secretary of the Treasury

.

at present

activity, but at present there

BALLANTINE

Root, Ballantine, Harlan, Bushby and Palmer, Attorneys

possible that there may be

It is

ARTHUR A.

reduction from the present high

a

favorable and unfavorable factors
outlook and concludes "it is possible that there

Drastic Slump

Signs of

No

Prominent industrialist lists
in

And the Constitution

trade

with

By HARRY A.
Chairman of the

The Business Man

v

must

face

For help the
turn

to- the

PITTSBURGH

GENEVA, SWITZERLAND




(9)
than

Competition will be keener
ever.

Prices will undoubtedly

part in the Security Traders As¬
sociation of New

York.

,

gard

as

a

vestment.

fair return
That he

was

on

his in¬

so

assured

counsel

rather

public

relations

than

the constitutional lawyer.

to

Volume 178

Number 5248

<

The Commercial and Financial Chronicle

..

Red Peril

ths Wane!

on

splendor of the court, the squalor
and
degradation of the people,
the monotony of the landscape,

.'.

and

By GEORGE KENNAN*

authority on Russia, predicting that revolution will
eventually break out in Russia, cautions, however, against offi¬
American interference in

Soviet internal affairs.

Holds

Soviet satellite empire has
exposed real nature of Soviet power,
and that Soviet ideas
to the

Western World.

Sees

Wo

We

much
cent

^

have

discuss

i

come
together today
subject that has been

a

talked

about

these

in

re-

of battle in Asia

of

'.

0

.

•

tt

Soviet

spective,

the

and

world

in

-

xi

.

Union

munist

+

historical
is

be

can

called)

per-

of

is,

?The answer
that it is, provided

course,

discussion

honest

is

i or

enuous.

nucai--realities,
'

?

world

at

of

leasts

po-

we

stand

this

times, and betrying to under-

our

are-

conflict in

history.

expresr

the

;

,

•

Without it, /thought

thing.

and

urge

groped

largely irrele-

a

its political

be

cannot

indeed

were

Russian

in any

old
Muscovy
oia
iviuscovy
later to play

Russian
Kussian

outlook

prophetic

the

these

old
not

pronounced

sia

of

contact;
deviousness

r

a' seeming

inability

that
tnat

observant
ooservant

patterns

Soviet

of

absent

heavy,

our

tender

Custine,
reign

time

when

shining

these

lationship as we know it today.
This
relationship is mainly the
product of certain developments
the

of

which

features

present

incidental

century,

to be

were,

nature,

which represented

ing

of

together

of

some

of

sure,

co¬

a

but most of
the final com¬

historical

great

movements, bound sooner or later
to meet> to impinge on one another and to reduire mutual ac¬
commodation. Let us see what

were

of Nicolas I,

of these

things might be.

The first of these developments

certainly the rounding out of
the expansion of the Russian state

was

to

a

point where further

sion

chill

except at the price of conflict with,

prophetic vision
of the eventual impact of Russia's
massive despotism on the fragile

some other great power. Hand in
hand with this went the develop-

with

terror

a

his

at

practically

expan-

par-

through

ticular clarity, experienced

to

and

But all these things, while faint¬
ly prophetic, were not yet really
expressive of the East-West re¬

some

ones,

during those
visiting Rus-

the

under
a

of

understand anything in the nature

than

the pattern
True: certain
of

future.

wholly

at

rather

sense

Moscovite

-

were

diplomatic

of

of

sort

peculiarities/reminiscent of

centuries.

Rus-

secretiveness

a

this

state

people began to

messianic concept of Russia's
in history; an intolerance of
foreign outlooks and values; a
xenophobia

of

peculiarities of the official

to

and

and misleading:.There is probably

the

of

be-

officialdom; an insistence on
isolating the Russian people from

Ptrnaps this way of looking at

in

East-West Relationships Today

less

was

of

foreign

..

crunch

paws?"i

habits

During this period it was
primarily in the physical growth

sjan

light of
,

—there

important part in the psychological
composition
of
Soviet
power.
There was a tendency

h/n'thinS3 is itself somewhat inexact practice;-

yn<?u.£m-

.

and.-consci-

the

m

ing the life of
cause

observations

Traits

have
time,

a
roie

tension

really^to
be-derived from its and conflict, something darkendiscussion.

further

these

our

significance

an

because

of

one

as

to

and
and

coming..
visib_e
in
ou.uuug
visiu_e
in
that were- destined

^

non-Com-

this

surely

tinge

importance

denied.

♦

«t to wonder whether profit

was

impossible

ment of Russia into one of the
world's major military and indus-

lS^ertamfy tonotwhat
mseful^
and; R is
extent it

n° such thing as a "non-Commun-Vof

decadence

1st world" in the

be

"The

tyranny," trial powers. It is sometimes for-*
a-tendency to view every treaty he wrote, "menaces us incessantly, gotten that this was a process well
of; .peace, as being in the nature and we shall be subjected to it on the way to completion before
to
warrant
treating them^as-,'a of - a provisional armistice, a ten- if our extravagances and our in- the Revolution. In the 40 years
group. And large parts of the non- dency. to ;think of conflict as the iquities render
us
deserving of prior to World War I, Russia had!
Communist ' world;, would- not-.,be■■ normal,Vpeace as: the provisional such chastisement.'"
'■*
been the scene of a fairly stormy
subjectively aware of- any com- and abnormal.
It is further true that as the industrial development. It seems

can

said

to

exist

at

all

of

,„Yet-,

one fis; still
conscious of
another danger* involved in
the
sort 'of. thing
,

doing here:

we;are

danger flowing from the arti¬
ficial-forms into which we have
a

to

reflections,

compress our

Sh

K

be tagged.

permit

I say this with no dis-

whnl
whose

DeoDlp
people

Where
therp

ence

and

I

bow

•Yet

unavoidable

is

to

thil nppp^itv
is

It suggests

to

well-

from

the

speak—of

our

microscope.

But

is

it

that?

imperialism"

thousand
it

things:

and
ana

rthought;

the
tne

it

.a

his-

means
and

tra-

folklore
folklore

of
of

the combinaproportions, of
chance; it means

means

unknown

natuTal law

the

It

means

laiwuaee

means

tion, in

and

mystery

free. will

that' stands between

and

predestination; it
God knows, not only:?'4he

means,.

motiya,Uon^ol/.|^ppte
bqt-alsa the'

appeared
,tbe .ages;

im Moscow

the

way

t6

West

has

Moscow^ and influ-

enced Moscow

oyer

tbe

it;means

not

strength

pf

course

thex

only

Soviet.

an

:put.-alsq1 .the .elemenisAef

W^al^ness
among

,in

ipu^ qwii; lL means,

other,

,

>

things,

ourselves,

gathered here this morning

?.
* .,°"r lnad6Quac<ies7
limitations
of
our

with

:

Vision,

,with the dangerous gap that exists

^veen the unreality of our
?t?
iTCS-an
reality
•

misery prevailing

niiffU^inS1

with the abstruseness

andS ^actN

P?I1l1Cl1'h0,Ug,ht
and peaceful
so¬

ciety.

'

No

one

view

disseitation.
than

more

face

things

of

this

to

vast,

substance,

which

reach^back

tations
entire

of

life

suca

-

No

50-

a

one

the

can

hundreds

-

which
of

flicking

a
-

face that I

permeate
time.

our

am

of

It

the

is

of the

in

sur-•

about to engage.

Russia in Retrospect

If

we

set .to

find

it

useful

discuss the

♦Opening

address

at

the

subject
of

Mr.

of

out¬

the

Kennan

at

Ltiet Tmpe3i™"'
School

of

of

Johns

the

BEKf1
in

Advanced

International

Hopkins

book fo.m

should

that

take.

po-

look

And

own

impulses
impulses

Studies

University,

by the Johns




1

have

the^to^ographv1^ Their political
fhese'facts,

world

least,

at

and

can

per- the

conflict, goodness

they did
few

on

tlTli-L

natural, barriers

or

enemjes

the Russian

nati0nal

rtt-i/l

Cf

Y*\

nineteenth centuries, there

their

return,,

place than

particularly

Slavophil
>

of

combined with

in

and

of

sortL

a
"

the
his-

romantic
xwiiamiv,

Western
a

was a

among

philosophers

torians, to
tv/
—
repudiation

climax.
is

What

not

so

is

much

seemed to many Russian thinkers

—its

really

that

the

dreary

bourgeois

thought

of

ness

narrow-

behavior—

and

de-

the

fifteenth

turies,
tunes,
regi

but
out
f

to

seventeenth

rather
ratner
th

that
tnat

political

twentieth

eenturv

Is it our fault, asked
Blok rhetorically
of

poet

cen-

a

Western
western friends
inenas in
in
the

at

time

of

the

some

so power-

the

"your

day

4-U-J

/I

industrial
tional

Ka/\**

rt

strength in the tradi¬
territory roughly

Russian

comparable to what
fore

The
torical

have be¬

we

today.

us

second

of

these

developments

great his¬
was

sia and the West.

is concerned,
fect

was

power
t,UYVV1

of

So far

if

skeleton

will

as

Russia

the outstanding ef¬

course

the capture

of

throughout most of tracli-

tional Russia by a group of mon
tha

]ed by Lenin and inspired by

his

revolution

World

War I and its effects both in Rus¬

Continued

on

a puem
poem written
written

r^§ime 01 tne twentieth centuiy at ine mm; 01 tne revolution, i
sh°uld have manifested

+V»r»4

values,

messianic belief

Russia's own destiny. What

have shown the traits it did in tion.

people have

experience

t

with

Grand Duchy °t Muscovy should stimulated this sense of repudia-

exposed plain

an

fenses, ,wx"1
with "V
no older tradition of
"UUV1U".";
political legitimacy,
polltlcal legitimacy, faced
faced with
with
fierce
and
implacable
nomadic
a

new

i

had not yet reached to be the decadence of the West

West

strange

h^Try. ^ Begirmfng Tatfonal^lffe

had

in

common

:

was onlV just disappearing
when the religious wars of

their

External

with

more

context of time and

pire

spective'

were

•

"I

_

they are today. The tendency to
universality
umvtJJ. ScUliy of
ui political
pUllULdl aspiration,
disJJIIdllUIl.
transmitted
from
"
11
J
J1'
transmitted from .for
example,
was less
startling
in
become important
a time when the Byzantine Em-

page

2<>

i Aleksandr Blok. Polnoe SochinenSya.
Publishing House Sovetski Pisatei. 19^
poem: Sk.fy (The Scythisms).

punc-

tuated at every

of

point with rivalry,..
violence." The wars •
Russia,, like those of

and

conixict,

Tsarist

,

continental

other

most

Tbis

is neither

offer to sell nor a solicitation of an offer to buy any
offer is made only by the Prospectus.

an

In

it

NEW ISSUE

long> pair]fUi pr0-.:
personal qualities of

this

cess

certain

the

Great

Russians

Brunnef

(not 'all' of '

Manufacturing Comp any

attractive ones) combined
geographical circumstances
the impact of external

them
wttb
and

of these securities.

The

with her imme- '
neighbors.
The issue was
normaiiy the control of land area •
ancj
the human beings resident
primarily

were
djate

on

announcement

powers

■

100,000 Shares

developments to enable

the Great Russians to make them-

the

seive3

center

of

a

Common Stock

national

(Par Value

sfcate
t0 take. into that state a
number of other peoples of different national character, and to

the

cal

entity

to

this
where

point

a

e
tom
embrace
ac*P
the
Hentire

Price

#1

$6.75

per

Share)

per

Share

it

great

Plain running from the Baltic Sea,
Carpathians and

the slopes of the

mouths of the Danube, in the
West, to the Altai mountains, and,

.

furfur north, to the shores of the
_

^

Fifteen-Year 6%

Pacific, in the East,
Continuous

$1,500,000

Subordinated Convertible Debentures
Due

Conflict

Naturally, in a process as vast
as
conflict was always pres¬
ent- But this conflict was usually

Balti-

July 31, 1968

'

ol;

Price

100% -and accrued interest
V

nature normal to the habits
the locale and the life of the

a

times.

Russia

s

dissimilar,

wars

were

at

no

Copies of the Prospectus may be obtained from the undersigned only in
where the undersigned may_ legally offer these Securities in

in

early centur¬
ies, to wars occurring simultane-r
ously
among
other rulers and
political entities. For her neigh^
bors, Russia was a problem, as
indeed

the

neighbors

often

compliance with the securities laws

she

Allen &

were

hardly more than a fab^
remote
principality, from

Company

Was

ulOUS

bh.%PurM"hei vbjeh travellers returned with
Hopkins Press, lurid
tales
Of
the
barbaric.

such States

thereof.

t

r
her.
°
For
fthe
',
remaining
htworld,

.he

1_

_

peoples outside of the
community:
for . uivoi
most of
*.vii±iiiuiixi<<y • IVX
wi

Western

time

'

i

'

sur¬

into the past, and the rami-

years

the

multi - dimenthe origins of

sional

just

into

flick

.

t1-"1

compress a rounded

fHese

of

minute
do

can

realities

for

naV,S° wlf"
sheltered

any

"

shape

the

to

as

litical

with^.ti)e^jjjjstoricai

own

th

erally
as

as

"Soviet

dition
araon

v

- All
these things are of course
striking, when measured against
the' habits of thought prevalent
^e; today, in Moscow. Yet we must

4

^obiee- be e.xamined in historical

with

detachment,

end—so

learned

torv*

with'

Russian intelligentsia reacted to me there is reason to suppose
increasing
sharpness and that had this process not been
skepticism to the powerful West- interrupted by wars and revolutween the wip 0f ^e men
em influence under which much tion, the normal workings of the
Kremlin and the wills of Western
remember
that many
of
these of Russian cultural life had de- free enterprise system would have
g°vernments and peoples gen- features of the early Russian out- veloped in the eighteenth and produced by this time a level of

Moscow

a

Europe,

Oriental

characteristics

munity. with other parts of it in re-,

them,
them,

external

of

Western

of

eternal

.

example

an

examine

and

further

Cllhifr't-

n

phenomenon

liberty

aca¬

con¬

confer-

a

hp

subject

danger.

defined

tivity

there

must

tn

our

of this

a permanently peaceful anu
equal relationship between states:

group-

endowed

generic

*-v

duty it is to select titles for
demic conferences, rather the
trary.

units

a

: lationship to the Soviet problem,
tf
na;". But there is at least a conflict betnem to

it

cnoice-

the^
the

.national

sufficient

of

sense

.

try to

Tftioc
'nSivfT
out to

.

The

year^so much talked about, we see the relationship between
5ne 1Su iometim^ these tw0 entities (if such they

KrAiirfkt

is

in tide

turn

vant past for
and outlook.

rigors of the climate.

presaged the conflict of

•

from communism.

away

to

a

atavistic

an

far back into

so

trjue

prophetic
.

longer have former strong attraction

no

is

ful

that in these earlier
; In
the intervening Petersburg
times, * particularly in the days era—the period of the eighteenth
of the Grand Duchy of Muscovy, and
nineteenth
centuries
when
many things were noted by for- Russia began for the first time to
eign observers that seem now, in emerge into the affairs of
Europe
retrospect, to have had a certain in the- capacity of a great power

A foremost

cial

the

It

Former U. S. Ambassador to Russia

7

(627)

■

August 19, 1953

Mohawk Valley Investing Company, Inc.

,

8

Pennsylvania

Resort

Dealer-Broker Investment

&

Co., 50

Copper & Brass, Inc.—Analysis—Van

York 4, N.

New

Ill

Report on leading ex¬
hibitor—Ross, Knowles & Co., 330 Bay Street, Toronto, Ont.,
Exhibitor

Picture

Motion

—

body &

issues

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

'

analyze

.

Alleghany Corporation

•

••

>

•

Circular

—

Hardy & Co., 30 Broad

Phenolic

American

Company

Seating

—

Analysis

—

♦John

issue of
New
list of 40 selected

in

Analysis

—

current

5, N. Y. Also in the same issue is a
popular priced stocks.
Wall

Corp.

Oil

Fuel

Arkansas

—

Memorandum

randum

Co.—Memorandum—Emanuel,

Chemical

Blockson

•John

East Tennessee Natural Gas Co.

on

Deetjen

&

Co., 44 King Street West, Toronto 1, Ont., Can. Also avail¬
a memorandum on Standard Paving & Materials, Ltd.
Company, Inc., 37 Wall Street, New York 5, N.

Hunter

Robinson

The

Robinson Humphrey

Olga Kocurek

Rauscher,

S.

McLaughlin

W.
C.

Jersey—Analysis—Eastman, Dillon &

burgh & Lake Erie Raidroad, and Wisconsin Central

A.

-

Railway, v

Detroit 26,

Data

—

Mich.

General

Ltd.—Memorandum—G. E. Leslie & Co.,

Building,

Bank

memorandum

on

Aniline

Can.

Montreal,
Lead

Anacon

Also available is

Mines, Ltd.

a

1

Corp., 44 Wall Street, New York 4, N. Y.
Circuit

I-T-E

Breaker

stein & Co.,

Company

—

—

Steel

Inc.

Company,

Cincinnati,

-

and

Mrs.

—

of

the

31

still

affiliates, from whom

some

of

have not

we

is

.

pleasure to hear from Dave Wallace of Henry B.

Sid Sanders

of

Foster

Analysis

—

efforts—you have always been
committee, Sid.
|

a

successful worker

Confectionery—Brief

analysis

in

current

Chiyoda-ku, Tokyo,

Marumouchi,

1-chome,
same

asked

had

he

questions he might even
a

few

with

he

If

-

Dutton, I'd

people who sell
only said, "Mr.
like to know you. • I
had

circular
have
read it, let's have a talk,'.' I think
I would have said, "Sure thing,
going to send you

am

on

these

bonds.

do

that."

Chances

have done

against

him

have

are

a

you

would

we

business together.

some

is—he

it

As

After

has

closed

time

and

door
just

my

permanently.

the

I
the

pa¬

tience any more to listen to some¬
HAROLD B.

harangue

one

SMITH, Chairman
Advertising Committee
Pershing & Company
120 Broadway, New York 5, N. Y.

me

about anything.

That's all there is—simple isn't

NSTA

South

issue

it?

COMING

of

issue

are

Japan.

In

EVENTS

the

also brief analyses of Meiji Biscuit and Con¬

fectionery and Canon Camera.

Securities Salesman's Corner

Vernon-Woodberry Mills, Inc. — Bulletin — Gartley &
Associates, Inc., 68 William Street, New York 5, N. Y. Also

Mount

available

York,

bulletins

are

Detroit Steel

Pfeiffer

on

Brewing

Company

Chicago

&

Louis Railroad

St.

vs.

State

Electric

&

Gas

Gas.'&

Electric

Co.-Pacific

randum—David A, Noyes &

Chicago 4, 111.

-

The other day I received a telephone call from a securities salesman
who was trying to sell me
some municipal bonds. J. had answered

daily

•

paper

because

-

-

385

•

it.

Industrial

is

the

thousand

orders & inquiries invited

it,"

he

maturity,

Stocks

hardly

this

Members: N.

74

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.




Hotel

..

anything^^S^

times -1 "tried

Several

to inter-

Country; Club. A cocktail
rupthim and give him some idea will precede Sept. 14;
- •

■

"hello,

say

was

party
-

<

0f why j had inquired

concerning ;

the

advertised, Sept. 16-19,1953 (Sun Valle*, Ha.)

bonds

that

were

in mind)

the

• National Security Traders AssoCiation 20th Annual Convention,

(as to what I might have
was

never

conversation

at

brought into

all.

.

...

.

Sept. 17, 1953 (Des Moines, Iowa)

Finally

jowa investment Bankers Asso-

at he talked himself out.
I kept ciation Field Day at the Wakonda
quiet. Then he said, "how many Club,

fact
were

their

attractive
that

still

short of these bonds had you intended

<

~

yield, to buy?"
I waited again.r„ He Sept. 17, 1953 (Rockford, 111.)
a
few went on, "did you say you wantedRockford Securities Dealers An-

only
available.

I

I couldn't have

to

buy

some

Dutton?"

of

these bonds

Mr., nual

I told him I didn't have

Outing at
Country Club

the

Forest

Hills

...

Re- any idea of buying them as yet .<•
"
■
him To his great surprise, he told met Sept. 22, 1953 (San Antonio, Tex.)
before—although I had heard of that he couldn't understand fyow
Investment Woolen of San Anhis firm. As for me it was a good I could pass up such an opportu- tonio annual dinner meeting1 in
stopped him if I had tried.
member, I had never met

Troster, Singer & Co.
2400

offer-

an

fellow

mentioned

their

let him roll it out.

HA 2«

Albany

He went into the merits of the

and
your

(sin-

figuratively and literally.

bonds,
•

at

cause the more * he pushed and Clutjv(Aug. 21)
the more he talked.- It could not Sept 15 1953 (Omaha Neb ) M '
help but see just ,why this felN' a. jnvectment Bankers
low would never sell mg
^ Qmaha and LinColn

situation

what

Natural Gas and

frolic

(Aug. 20) and Park Hill Country

hW
but £e was so interested in telling
feeb-When he ls^n the other
me how good they were that my
of the line—and I mean
lme

both

Utility

Group-

in; the no- matter how:good >it was *

was

ing that looked attractive to me.

\.

(Denver, Colo.)

Mountain

.

Before I could

Public

I

certain facts concerning

end
We make good markets in

advertisement

an

Lighting; Corp.—Memo-•

Co., 208 South La Salle Street,

,

YOU!

■;

Rocky

Field

Bond Club of Denver annual sum¬

,

mer

Illinois Central

Corp.-^Analysis in current
issue of "Report from Investors Service Department"—J; A.
Hogle & Co., Attention Kenneth Howa'rd, 50 Broadway, New'
York 4, N. Y.

Pacific

IBA

No.

Investment

Aug. 20-21, 1953

Don't Push Me Away From

140—Smith, Barney & Co., 14 Wall
Street, New York 5, N. Y.
York

By JOHN DUTTON

In

and

Corporation.

Railroad—Bulletin

'

in¬

try to find out

If

talking about securities and in¬

"Weekly Stock Bulletin"—The Nikko Securities Co., Ltd., 4,

New

me

my

Salle Street, Chicago 4, 111.

Morinaga

New

show

to

serve

spots myself—one of them

don't

I. M.

G. A. Saxton

Company—Analysis—Weinress & Co., 231

& Marshall, Seattle, who deserves a

reward for his

K.

wanted.

few

a

them.

Co.* Inc., Philadelphia, that he may show results from
his efforts. I want to acknowledge receipt of material and letters

my

I

vestments

our

Warner &

Sun-

Gerstley,

real

a

He didn't

weak

,

Why not, then, give your Advertising Committee some aid
by sending in a completed contract for a commercial ad? \ \
; 1
My letter to the membership brought response from many and
was

terests.

out to

have found out that I have

Chairmen

50-odd

try

was

me

are

name

short

something else.

on

didn't

that he

what

.

deadline fast approaching and after

our

Then if he had

polite

a

possibly
he

But

Ohio

New York

'

the

me

circular with his

a

and

issue

Baltimore, Md.

*

Co.

&

for

me

note, I
might have done business with
him.
If not on
that particular

San Francisco

Merrill Lynch, Pierce, Fenner <6 Beane

Co., Inc., 70 Pine Street, New York 5, N. Y.

Inland
La

;

Eustis

;r

thanked

interest in seeing that I

an

it

on

New York

>'

Inc.

Incorporated

Williams &

T.

12 South Broad Street, Philadelphia 7, Pa.

Independent Telephone Companies
&

C.

Geo.

Co

"Commercial and Financial Chronicle" there

on

Analysis

Roberts, Jr.

&

would

just out to

was

talk with him.

received

Philadelphia

Co.,

talking.

so

bonds.'

he had

taken

New York

Co.

else.'He

some

If

to

Atlanta, Ga.

LIBBING

from

Film Corp.—Memorandum—Blair Holdings

&

Atlanta, Ga.

San Antonio

Co.

carefully planning a real campaign for advertising, with the marvelous co¬
operation of Mr. Herbert D. Seibert, Editor and Publisher of the

it

Dominion Textile Co.,

Royal

& Co., Penobscot Building,

Moreland

—

&

heard.

100 Broadway, New York 5, N. Y.

Darling

Marks

Carl

Staib

With

Circle Wire & Cable Corp.—Bulletin—de Witt Conklin Organ¬

L.

Weld &

McAndrew

Price

Stanley M. Waidron

AD

bulletin

ization,

White,

Pierce

Janney & Co.

Muller

J.

New York

.

Company, Inc.

started

it and

politely if
he
could answer any questions,
I believe I would have been glad

Y.

15 Broad Street, New York 5, N. Y. Also in the same
are analyses of Florida East Coast Railway, Pitts¬

Co.,

Corporation

Humphrey Company, Inc.

The

William

,

Securities

Jolley

he

as

inquiry and asked

Philadelphia

Malinda Jolley

♦Lee R.

York 5, N. Y.

Central Railroad of New

sell

Cincinnati, Ohio

Co.

idea

no

s

would know

anyone

New-York

Corporation

soon

as

YOu

Dallas, Texas

Co.

didn't

man

had

He

me.

.

Peabody & Co.,

Carpenter Paper Co.—Memorandum—Kidder,
Wall Street, New

v

New York V

.

Municipal Bond Corporation

Thayer, Baker &

♦Lex

'Mr.

17

Boston

First

•Cincinnati

Hudson

Thomas

able is

&

The

Channell

it

Dallas, Texas

Company

Corporation

Pierce &

Rauscher,

Barney Nieman

Company Limited—Analysis—R. A. Daly

report—J. G. White

K.

M.

•George

Brockton Taunton Gas Company—Progress

Canavan

Boston

First

♦Wellington Hunter

John

&

Co., 120 Broadway, New York 5, N. Y.
British American Oil

The

•

Also available is a memo¬

Street, New York 6, N. Y.

;

Bulkley

T. Grady

George

Grimm & Co., 44

—

L.

Clifford

"Gleanings"—Francis I. du Pont & Co., 1 Wall Street,
York

R.

Lewis

Securities

Southwestern

♦Hugh Bradford

May & Gannon,

Boston 10, Mass.

Devonshire Street,

161

Inc.,

Corporation

.V

ADDITIONAL REGISTRATIONS—1953 CONVENTION

Street, New York 4, N. Y.
American

TRADERS ASSOCIATION

NATIONAL SECURITY

—

■

needs, my buy¬
ing capacity, my experience as an
investor,/ my age, nor my vani¬
ties. He just barged in and tried
to high pressure me into buying
something he had to sell. -1 knew

performance over a 13-year period-—
National
Quotation Bureau, Inc., -46 Front 'Street, \ New
York 4, New York.
"
••

minute. This

a

know

even

of my investment

market

and

yield

What He Should Have Done

I thought this kind of high presr
sure
selling went out ' of style
years
ago.
Thank the Lord it
doesn't seem to be the way most
of- us sell securities today.- Just

;

showing an up-to-date com¬

Over-the-Counter Index—Folder

sure,

desire to do so.

,

Stocks—Comparison and analysis of 17
of June 30, 1953—Laird, Bissell & Meeds, 120 Broad¬

as

am

141 West Jackson Boulevard, Chicago 4, 111.

New York 5, N. Y.

way,

some

You will agree with me,
that by this time I had

phone.
I

no

Bank

City

York

New

had

also

have

selling securities. In fact, I didn't
get an opportunity to even be¬
come
acquainted over the tele¬

(and subsidiary companies)

Productions—Analysis—Daniel F. Rice & Com¬

Disney

pany,

memorandum on Bettinger Corp.

a

I

that

experience myself in buying and

Water Co.—Analysis—Ira Haupt & Co.,

Broadway, New York 6, N. Y.

Wait

had

I

that

him

few ideas myself concern¬

a

investments—nor did I men¬

ing

Arcade, New Orleans 12, La.

Stocks—Analysis—GoodCo., 115 Broadway, New York 6, N. Y. Also available (

didn't l tell

quite

—Analysis—T. J. Feibleman & Company, Richard Building

Common

Company

Utility

opportunity

gone.

I

tion

Standard Fruit & Steamship Corp.

Canada.
Electric

be

(Report C-20)—

Y.

Scranton Spring Brook

Canadian

Alstyne, Noel &

Corp.—Memorandum—Dreyfus & Co., 50 Broadway,

San Dieeo

to

missing
if' I
didn't buy some of the bonds that
very day—tomorrow they might
wonderful

a

Co., 10 Post Office Square, Boston 9, Mass.

Lerner &

and

edly that I was certainly

N. Y.
analysis

Company—New

Cement

Riverside

everything he had said
emphasized repeat¬

before

Stout

Inc.—Report—Eisele & King, Libaire,
Broadway, New York 4, N. Y.

Thursday, August 20,1953

...

almost

Company—Analysis—R. M.
York 4, N. Y.

Co., 52 Wall Street, New York 5,

understood that the firms mentioned will he pleased
send interested parties the following literature:

is

Gas

Chronicle

Broadway, New

Co., 52

Airlines,

Revere

Recommendations & Literature
It

Southern

and

&

Horner

is

and. Financial

The Commercial

(628)

1-

376

opportunity

to

gather some

terial for this week's

ma-

column, be-

nity and into the second chapter the Tapestry Room, St. Anthony
he went. This time he repeated Hotel.

Number 5248... The Commercial and Financial Chronicle

Volume 178

Beware of

the terms of any treaty always re¬
flect the relative military power

Icebergs!"

hold

T

"elder statesman,"

Prominent

negotiations warfare, it may prove more diffi¬
with the Soviets. It is wprth em¬ cult
to
enforce
limitations
on
phasizing because some who have trade. Yet, we will be furthering

Production Board

stressing need for continued

;

In Korea, in Eastern Germany,

tiing to

appear

the xfrtd y/ar

are beginin the ice-jam of

which has gripped

the Fworld

so

tightly for

so
-

long.

These

cracks

may

quickly freeze
again.

-over

Still, they stir
hopes
that
genuine peace
may be on its
way.
Despite
these {■ hopes

truce

most

tary

forces.

with

the

I

mili¬

our

sympathize
to r£ut

need

government spending.

fully

taxes

and

But let

us

the

destruction

of

all

we

that

a

Offer to

Soviets

ourselves

that

contributes

to

peace

which contributes to

and

trade

war.

Eastern

then—and

I

cannot

stress

too

could

spell

breathing

the opportunity for

a

new

at peace.

open

comes

it could also bring hasty re-

war,

the

cement

evident

of

danger, !t will be much more dif'

the urge to let up spreads.

as

Our

our miliuntil the issue of
js settled. This means rati-

strength

peace

fying the European Army Treaty,

witj,

army,

stretchouts

in

the

and maintaining

a

vigilant guard in relation to RusThere

sia

reductions

should
in

our

be

further

no

armed

unless Russia's is reduced

strength
signifi¬

not.

These

businessmen

(3) Holding together our ecoPerhaps^ that^ ^Jiow^we should nomjc strength until the issue of
think of the new testing which
peace is settled, making certain
alone

States

us

no

our

We

the

that

trade

contributes

to

whole

soon

may

Even if
with

task

could

we

set for

peace

nof to aggression. No long-term
be credits should be made to the Iron

difficult

us

istence
armed

This is

not an

to

Will

firm?
pay

the

be

we

price

choice will require?

to

Unless

NATO
that

to

should

a.

xt

sense

benefit

to

of

utilize;

our

own

and other peaceful peoples, rather
than ship them to potential ag¬
gressors.
However, I do not see
why our choice need be one of
unemployment or trade with an
enemy.

H

Another

depression,

that

like

which followed 1929, is not inevi¬
table. I have never believed that
men

were

their

own

powerless- ; to
economic

affect

destinies

or

that

they had to lie down dumbly
the
fluctuations of* our
economic system.

before

No

Painless
not
can

Dentistry
mean, however,
be
any
simple,

quick,

painless solution to our
domestic economic problems. The
inflation which has ravaged our
is the accumulation of
mistakes over the years. It

economy
many

has

left
numerous
distortions
which must be corrected. But ad¬

justments cannot—and need not—
be

allowed to go too

yes.

Bust

far.

Adjust

no.

The important thing, in making

Continued

on

page

offering of these Debenturesfor sale, or an offer to buy, or a solicitation of an

buy,

any

35

offer

of such Debentures. The offering is made only by the Prospectus.

$20,000,000

completion.

is done there

can

be

effective

ho

the

many—

peace

in

settlement

most

crucial

Ger¬

of

all

Pacific Finance Corporation

issues. If Germany were to

reunited, she would still be in
her in¬

be

constant danger of having

4% Debentures due 1959

pre-

as

in

Korea.

running

Copies of the Prospectus may be obtained from any of the several under¬
writers only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

No Peace Without Arms

Such

v

Flexibility Not Looseness

a

August 1,1959

Price 997A% and accrued interest

If
inGermany remains divided,
resources and the same dangers would exist. In
commitments,
keeping them
in short, whether we succeed or fail
balance so we can grow steadily in reaching agreement over Ger¬
stronger economically and mili- many, NATO will be needed.
tarily, avoiding another depres"Operation Fat"
sion and preserving the National
Credit,
Here, at home, we must also re¬
examine what an enduring de¬
a

Due

Dated August 1,1953

To

fense requires. One defect to be
would mean remedied is the lack of a stand¬
working with our allies to fofmu- by mobilization law to J>e invoked
Flexibility should not be con- late a clear set of peace aims be- immediately in case of another
fused with looseness. We cannot hind which we could marshal our war,
saving priceless time.
We
......

will have the

them for the

now,

police any possible agreement.
Abroad, that means ratifying
the European Army Treaty and

invasion

pr<)ve

(5) Maintaining
that each ventory of all our

Much will depend on the reappraisal of our peace strategy now
tmderway.
With events moving
jso rapidly, some may feel we cannot do much advance planning. It
would be tragic if that became the
prevailing view.
to

we

the minimum
establishment required to
right

guard
their living standards,, not
but dear. If negotiations with the
against these dangers — to make
their war-making capacity.
Soviets are resumed, we will have
certain they
will not happen—
^4^ Dealing with the problems
br make conscious choices, often
0£ domestic economic adjustment there must be an adequate force
between
alternatives
none
of
in terms of what is best for the in Western Europe capable of act¬
wfod* we like.
Will we know
wh0le
country, not the selfish ing instantly, tp prevent Germany
where it is safe to yield and where
from being overrun.
interests of pressure groups,
to stand

terms

to terms

come

Soviets, the settlement
only be a guarded one.
Nothing should be permitted to
distract us from bringing into ex¬

the

was

credit

the

become

on

liberal

on

could

our own taskCurtain countries; nor should they dependence destroyed, perhaps by
job of making be gjven aCcess to Western tech- subversion from within, perhaps
As long as the Soviets gave n0i0gy unless — and until — we by fomented civil war as in pre¬
choice but to hold the line,
perhaps by satellite
have assurances that this will im- war Spain,

to

masters
peace.

for

but

peaceful world.
forced

te
United

ahead—not for the

looms

its

,,

,

,

«

.

pushing

cantly.

Taskmasters

Own

more

no

even disintegration. NATO

u

Without

Holding together

effort tary

But, if the cold war bethe cool war or the hidden

Russia

NATO—Or Peace Lost

aggressive, terrorizing designs.

A

can

many

As

ahead does not bring they can profit if they trade with
That does
significant cut in Soviet arma¬ the enemy while other nations do that there

this

even

lock.

debtor
out
of

some

If the year
ment

Peace

that
a
concessions

squeeze

creditors, the Soviet leaders have
understanding is been anxious to establish a debt¬
reached—and
observed—drawing or's position in relation to the
a distinction between trade which
West.
They hope to draw into

dear unless

strongly—then we must realize that no profits from traf¬
To organize the free world so it reverse ourselves and step up our fic with
more perilous.
aggression can be worth
Bernard M. Baruch
can
respond effectively to what¬ arming, even if it means increas¬ the
If the dead¬
price in morality or future
ever the future may bring—good ing rather than reducing taxes.
lock
of
cold
security. They should also realize
war
breaks, the sea will indeed or bad—requires:
Whatever the Soviet propagan¬
that, such an attitude only invites
be open to movement again, but
(l) Thinking through all the da line may be, if the men in the
It will be a sea thick with ice- problems of peacemaking so we Kremlin do not curb their mobili¬ others to go after the same trade,
bergs of all the unresolved issues can make the Soviets a peace zation soon, w% will be inviting which eventually will go to the
of the peacemaking. Picking our offer which draws a sharp distincaggression if we do not "restore most efficient nations economi¬
way safely through these icebergs tion between their legitimate as- the arms cuts just made—and do
cally. The net%ffect would be to
could prove far more hazardous pirations
for security and con- more.
than
enable the Soviets and their satel¬
remaining frozen in dead- structive development and their
become

Unemployment and Trade

Believing

,

lusion

the other hand.

actually could

;

things which Russia cannot
large
long as any country is en¬
produce,
particularly
if
unem¬
reductions can be made in our gaged in aggression, trade with
ployment causes surplus produc¬
armed forces without weakening that nation should be either cut
tion in the West.
;
our position in peace negotiations.
off entirely or limited to a barter
If surpluses do develop, I trust
Nor should we be under the de¬ basis. ■.
deceive

not

hand what is done with

one

nation off against

one

hold

No long-term credits should be
Germany or
any other
satellite land can be extended to ' any
Iron Curtain
liberated while the Red Army is country unless — and until — the
out, global strategy which fits the in occupation and no other mili¬ Soviets give the world effective
assurance that
many aspects of the peacemaking tary power is nearby.
such credits will
better the living, conditions of the
into one unified whole,
Will Russia Relax?
people and not the destructive
The more uncertain and changFor this year's military pro¬ capacities of these governments.
ing the conditions we face, the
more
important such an overall gram, the die is cast. President Until that is done, strict controls
strategy becomes. Without it, we Eisenhower has a vast experience should also be maintained on the
cannot-know what is expected of in these matters and I am willing export of machinery, particularly
us or what our Allies must, do as
to follow his judgment. However, those
incorporating
the: latest
their share.
Without it, we are in the next year or two, above all technological
advances, and which
likely to fling; our energies and else, we must watch what the So¬ are bought by the Soviets to be
resources into actions, which may viet leaders do, whether they re¬
copied.. •
■■
' • '■
seem dramatic, but which fail to
duce their arms program appre¬
Some businessmen, particularly
grip the basic problems which ciably, hold it at the present level, in Britain, our most dependable
must be resolved, or which undo or increase it.
war
ally, seem to believe that

with

situation

cur

Korean

in the clamor to reduce

military and economic strength; (3) dealing with domestic
problems in interest of whole country; and (4) keeping our
resources and commitments in balance to avoid depression and
to preserve national credit.

In Russia itself—cracks

the

strongly are among those loudest

our

,

future

any

criticized

strong national defense, lays down as requisites for organizing
free world so it can respond effectively to whatever the future
may bring: (1) making a peace offer to Soviets which distin¬
guishes sharply between their legitimate aspirations for secur¬
ity and their aggressive terrorizing designs; (2) keeping up

j
|

in

strategic items to Red China dur¬ lites to play

9

ing the Korean War were only the others.
That will partially successful. Without open

of the nations involved.

By BERNARD M. BARUCH*
Former Head, War

(629)

program

,

really have flexibility unless we
have thought through how
all the many problems of peaceinterrelated.
Only
making are
then can we act quickly, as opportunities arise, with the assurfirst

ance

that what is done in

will

not trouble

us

one area

elsewhere.

What each ally must do
be set forth specifically,

strength.
would

find

must

ever

effective

more

of cutting waste in defense
expenditures. This should be or¬
would be
balanced by what is ganized as a continuous operation
done at home. Those fundamental —"Operation Fat"—and be press¬
interrelationships, ' which
can ed with unrelenting vigor.
never be forgotten except at tragic
Nor can we continue to evade
cost, would be kept im constant the need of universal military
Whatever

we

undertook

training. Whatever the settlement,
Foreign
policy
is not
just focus,
speeches and official statements.
Most important among these our armed forces will remain at
If the words are to have meaning, interrelationships
is that peace a permanently higher level than
they must be backed by the re- cannot be made without military iq the past. Six months training
sources
of the free world.
The power.
We tried it after World is not enough. A youth would no
experience of the last few years War II when, jinstead of maintain- sooner get the feel of things than
has shown that you cannot effect- ing our strength until peace was he would be on his way out.

made sure, we demobilized with
military, economic, political and frantic haste.
Again, in Korea,
moral—without a fully worked- we had to accept a truce none of
ively

organize

those

resources—

likes.

us
♦an

address

Medal* veterans
waukee,

Wise.,

by

Mr.

Baruch

on

the

°'( ptaif. w^mAug.

4,

1953.




X

cite

Trade

to

for

the

question

able

peace,

Corporation

llarriman Ripley & Co.

we

Glore, Forgan & Co.

Goldman, Sachs & Co.

Kidder, Peabody & Co.

Lazard Freres & Co.

Incorporated

Lehman Brothers

F. S.

Moscley & Co.

Dean Witter & Co.

Merrill Lynch, Pierce, Fenner & Beane

Paine, Webber, Jackson & Curtis
Harris, Hall & Company
(Incorporated)

Lester, Ryons & Co.

Shields & Company
peaceful nations ;are to f •
to
negotiate a1* decent '•<
,

must
hold together
whether the course pursued there economically as well as militarily.
was wise but to emphasize that The efforts to prevent the flow of
not

The First Boston

Peace

.

If
be

Korea

Hornblower & Weeks

BIyth & Co., Inc.

ways

abroad

,

_

<><fuZust 20> 7953-

The Milwaukee Company
William R. Staats & Co.

Smith, Biirney & Co.

Salomon Bros. & Hutzler
Central Republic Company
(Incorporated)

Schwabacher & Co.

Paul H. Davis & Ct.

10

The Commercial and Financial Chronicle

(630)

^maryd in housing, plant capacity, in

Can the Present

■

and

durable goods.

consumers

is difficult to visualize
tion of circumstances,

Administration Deliver?

cumulated

Hunter, Turreil & Dahl, Estate Management,
San Francisco, Calif.

1

deficits.

a

-of

undertaking

the

and

lar decline in pre-tax earnings,

money

hand,

if

pre-tax

constant

next

actu-

may

the longest and most sus- pre-tax earnings can decline
tained boom on record. And, as a 37]/2% without reducing net earnclimax to all the above, at about ings.
Under this reduction net
gave

the
to

us

time

Korean

any

sustaining forces, the

War

was

thrust

the

upon

In this

to

necessary

maximum

under

profits

excess

largely in the
political field,

whether the Reserve Board itself,

0f

1940

possible business adjusthad this time at-

to

spjrai

national

both

interna-

One

sensing
ment

a

(1)

Let

us

that

assume

1954,

in

business decline since experience
shows that reducing reserve re-

has a delayed effect
months) in bringing

quirements
break out,' (about six

major war

no

will

the

that

but

long-term ob-

of

jective
world

only wonder

can

commu-

about

a

business reversal.

business recession is indicated, it is unlikely
Although

a

Social

depression.

into

nism, namely

rather than reverse
trend

remains

tion.

unaltered.

p0rts,
savings

a

and the huge volume of
should maintain national

income at

(2) Differing from the Truman mess cycle has not been abolished
Administration, President Eisen- but only suspended for longer or
Lower's defense program
is not shorter periods by powerful out-

The adbe

pro-

'

J^ild.

be

secret

moderate recession and

t

deSSi ls^uSorof
he
Tf

in

highest taxes
I'ivps

are

nvT^nHifllT.,,c

P
•

,

as

Federal

the

a«nmn-

reduced
c.„h-iHe

wnrrnntPa

that

combined

overtime

and

carrying

with

and

inefficient

down

the

in

v

shutting

older plants

production

on

in

modern units should make for bet¬
ter cost control.

Th^ evidence points to a slowly
declining business trend over pos¬
sibly two years, rather than a

is

far

better

than

able

to

control

business

where,

The conclusion

(3)

costs

suddenly

seems

war¬

that earnings may be bet¬
ter sustained in the next business
ranted

downturn than is

dividends.

in earnings through elimination of
the excess profits tax will be more

(4) Thus, with both earnings
and dividends well sustained, it is

moderate, ranging irom the 60
advance, shown in line I, down

logical to expect that stock prices
will

be

not

vulnerable

as

they

as

10 zero as the companies' pre-tax ordinarily are. Present yields on
earnings decline to the exemption the Dow Jones Industrial Average
base- From there on net earnings of approximately 6%, are already
wdl decline 48 cents for every one substantial. Price earnings ratios
dollar decline in pre-tax per share are moderate, and the price to

serious

no

ic.

H

history,

our

tighten

to

careless expenditures.
As
declines, elimination of

in

up

profits taxes, the increase

excess

Administration's

long

,

high level, thus assur-

but, on the whole, should

ionged

downward

after it has gathered
momentum.
Only time will tell,
On the assumption that the bus-

a

jng good retail business.
justment *may possibly

We may be witnessing a new
type of money management designed to stabilize our business

world domina-

management

courage

usually the case.
ings decline by only 18 cents If
earnings are well sustained,
(Column 5).
dividends should be well main¬
On the other hand, at a given
tained. Further factors in sustain¬
level of pre-tax earnings, the
elimination of the excess profits ing dividends are:
(a) The relatively low rate of
tax will result in an increase in
corporate pay out, and,
net income of as much as 60% for
(b) For those companies oper¬
a company paying maximum exating
under
accelerated
cess profits taxes. (Illustrated by
amortization the large cash
horizontal line I.) For companies
flow will tend to maintain
now paying 'less than maximum

Conditions today are the reverse

tempted to forestall or cushion the, security payments, farm price sup-

tiorial.

Turreil, Jr.

buying. Capacity, inventories,- every dollar per share pre-tax
credit and loans all skyrocketed earnings decline while the excess
once more,
profits tax is in effect, net earn-

past has only been taken after
business has declined substan-

tially.

number of plus

a

Western world, causing a virtual taxes (first figure in Column 5).
plunges downward.
stampede of public and business
The table also shows that for

make certain
assumptions,

and

H. N.

This type of action in the

peak.

regard

factors should be cited. The excess

•

pects over the next few years, it is
first

key

the

corporate profits.

short sharp decline.
Under this
earnings per share amount to $1.50,
type of readjustment, management
the same as per share earnings

expected

be

might

we

out of

run

to

holds

business

declining

business

ally advance with the lapsing of
the excess profits tax.
From this table it is clear that

loans,

bank

other

remain

then net earnings

year,

of inventories,
low level of

and

credit

the

On

earnings

extremely

consumer

is in

net

the rate of 48 cents for every dol-

seven

ample

an

low level

supply,

study serve requirements at a time w/hen
business and stock market pros- business itself was virtually at a

Before

with

combined

be profoundly bullish."

Concludes "peace could

last

earnings,

profits tax

Thursday, August 20, 1953

.

.

After pre-tax earnings have de- profits tax itself has been notori¬
clined to the excess profits tax ous for producing wasteful spend¬
exemption base, then from there ing. Its elimination should en¬
on, net earnings will decline at

The huge deferred demand
of both the consumer and business
carried over from World War II,

business decline.
Analyzes effects of excess profit tax elimination, and contends
"the highest taxes in corporate history provide a considerable
cushion against a decline in net income." Says evidence points
to slowly declining business trend during next two years, and
points out lower business profits may mean renewal of budget
offset

depress business and factors that may

barring new

the

over

share

per

excess

actual

earnings will
only be reduced 18 cents per share,

years.

analyst lists both factors tending to

West Coast investment

effect,

by Russia, which would
bring together to bear on the
economy the enormous stimulating
and sustaining factors which ac-

Investment Partner,

pre-tax

while the

moves

TERRELL, Jr.

By HERBERT N.

It

combina-

a

.

side forces, we can come to some Amprifian pmnnmv
whole
rather interesting exclusions by American economy as a wnoie.
earnings ,
dividend
ratios
are
low
rather
rather for a continuing program setting down the opposing factors
.
The one overlooked tact appears
The cushioning effect of the than high.- With over half/the
which will at all times keep the which may act to depress business to be this: in any decline in busielimination of the excess profit stock market
selling below its 1946
country
prepared
to
meet any or cushion a decline over the next ness over the next lev/ years tax tax deciines rapidly as the total peaks, with many stocks histori¬
crisis.
two years.
revenue itself will decline, and if ^ax
recedes from the 70%
cally low already, the conclusion
In addition to this, the Republitaxes are to be reduced as well, ieveb por instance, if a company seems inescapable, in all but the
can Administration is committed:
Factors Tending to Depress
substantial deficits appear inevi- payS 61% of its pre-tax earnings
aimed at any one year for attainment of maximum strength,, but

„

Business

(1) To stop further inflation,
(2) To balance the budget
'
(!) The huge and sustained in(3) To gradually reduce tax crease in capital expenditures go-

in§ into Plant and equipment over

rates,
(4) To extend maturities

government debt,

the

on

'

(5) To take the government out

immediately ahead.

■of business.
In short

the

Administration

trLbilize Se

tends

the last seven years has probably
borrowed from the future. Some
decline in this category may lie

in

at

economy

The most

re-

Excess Profits Tax through accel-

TWstax
has

stated

that

the

full

government will be used to
bat

depression.

a

Mr.' Hum¬

As

It is

yes,

obvious that

Since most of

years,

eminent
some

econ-

business

likely over the next two
w
our
objective here is to

™

study how government policy
affect and
ness

moderate

such

a

may

busi¬

decline.

new

Major Difficulties Loom

9tnnnin«

infihiinn

in^ p^npnHi111hninnpfnZ

uLf

.lancing

•

^ne

budget, and firming interest rates.

Suited
.andCorporate

bond market

fore-

ing the Federal Reserve not only
purchase over $500 million in

to

bills, but to unlimber their really
heavy artillery, namely to reduce
reserve

requirements 2% for New

York and

Chicago, and 1% for the

balance of the country.
this

change

ments; the
that

icy

no

was

in

'

,

Reserve

Board

stated

change in long-term polbeing made.

inflation,

government

icit

that

runs

but

such

necessitates

borrowing, they

rate

hnmp

ot

home

would cause
,

enirnl

are

while
a

the

huge def-

new

more

money
or

less

y

Further-

'

u

f

hnwmvnh

m

Thn«

yfa

pr

direct outcome

of events this




re-

i.-,

hnQinP««

pnt

iP9h

ran

nvpr

Often

profits,

and

dividends,

stock P^ces are'more vulnerable
than business activity. However,

UonsfBuiWtagToneofthe
in

our

are

main

u

..

,

Qnly

abQut

profits.

2Q% q£ g
Thus, for

-

rapid increase in consumer credit,
(4) Inventories continue to rise

reaching $78 billion last month!
0Ver $20 billion hiSher than three
•

.

y

de"

ta* ft. act"al net
clined 80 cents.

are

inonmn
Tn addition,
ormnirM-i should
onrvniri busiKm;.
income.
In

somewhat different .than usually ness enter a pronounced recession.

Ptev*n at thettoe of an impend-, tax rates will probably be reduced
in^ business aeclme.
^
further.
„

above

,

f^
tki 'a^business
prompting a business

Rearmament

Excess Profits Tax exemption base

down

Capitalization (common only)

(3) Tax reduction.

Excess Profits

.

.

What happens to

the

has

gradually

large

backlogs

downturn,/ re¬

not

be

dissipated

quickly.

Selectivity remains the
ment

manager's secret

invest¬

weapon.

The above outline should be ac¬

cepted only as a pattern to guide
our thinking as events unfold.

billions

reducing

by

reserve

re^-

quirements; when events in Rus¬
sia (such as the recent disrhissal
of

Beria)

portend

may

Russian

Empire,

tinually

guard

conclusions.

if temporary,

the

of

must

con¬

against dogmatic
that recent
eventual,

an

even

accommodation with

which

Russia

one

It may be

forecast

events

political

a

breakdown

economic

and

could lead

to

a

pe¬

riod of better feeling between East
and West.-

'

\

—

elimide-

pays

Peace could be

ish.
more

tax of

sent

Upon lapsing of

profoundly bull¬

decline

Any

based

with

investors

upon

world would

peaceful

the

a

pre¬

outstand¬

ing buying opportunity since 1942.

52%.

capital

of

company

$400,000
200,000 shs.

Starting with pre-tax earnings of $1,000,000, the table shows
earnings with and without the Excess Profits Tax as pre-tax earnings
decline by $200,000 in successive stages to the exemption base of
$400,000, at which no excess profits tax is incurred.

tion of double taxation of divi-

the

.

Excess Profits Tax normal and surtax becomes

(4) Tax reform (possible reduc-

of

Tax

just 70% of pre-tax earnings.

or' defense

ing to above 2,500,000 yearly.

prosperity

,

,

82% excess profits tax. To this lower profits.

down

(2) Population growth amount¬

reduction

business

should

,

spending.

nated

,,

extentv for ev?ry dollar decline profit margins during a period of

Under

oniniini

dends,

.

.

majority of our investments are has been fairly common to see a
made, are currently subject to the company report higher sales but

trena*

(1)

£

The foll°wing table brings out the cushioning effect of high tax
^i rates on corporate net.
thrp^Ar
Assume Company A has the following characteristics:
7,^

+•

^

its^pfgM^the
i

.

thin'

q

not be entirely able to con¬
the

serves

dollar decline in the pre-

overy

(!) A substantial portion of the
(2) Profit margins in many cases
durable goods seems to be borrow- earnings of many of our larger have recently been shrinking m
inS from the future because of the companies, the type in which the spite of boom time business. It
(3) The production of consumer

may

trol

are near the threshold of
The highest taxes in corporate
When
the
Administration
can
history provide a considerable
arbitrarily create vast potential
certain factors today bearing cushion against a decline in net

some downtrend in business, there

"

business boom.

tQok

government acts wisely the

recession should be moderate even

percent- if
prolonged. To guard against the
instead o£ possibility that the government

a

if we

it

fnrmn

to

amounts

U,u,..

1no„

T

corporation's

nros-

famiiv

nwu

tax

($2.40-$i.95),

Inrl937; oh the othdr hand, the

taxeg

riarcuy seems lixeiy
inai new nome 0n the stock
Hinni. market
morimi which
maintain it?
ponctriiptinn

pro±its

excess

down-'' Jast
time we had a cyclical downtrend in business, normal and sur-

continuing

Stock Market

gains tax, shortening the holdingperiod, or even permitting taxury (although reluctantly-) in its free. switching from one security
periodic financing.
Alf of this to another, etc.).
adds up to more
inflation, not less.
The long sustained period of
Jspring caused the reduction of

a

is probably
the future since

...

*L

of

45 cents

commodities?

ward spiral in business.

«?pvpral

.

in

decline
""

1,100,000

forced to support the
government
bond market and help the Treas-

J ne

drastic

In making Factors Thai Tend to Prevent or
requireCushion a Decline in Business

They plan

stop

present

c

.

ol this situa-

ion may not lorce pnees higher, b advance o£ 23%
they at least should prevent any|6fl%
■

Reserve

The Administration is caught on
the horns of a dilemma.
to

of

ratp

llLfforme^tekvcar^
tbp

the

Althougn

decline

homes this year,

props

Several

nrpsont

,

decline is
^

Thp
Ihe

ex-

-

building, approximating

this, platform

our

'
C2)
(2)

conflicting objectives.

omists concede that

business

generally, the kind of route which|.

borrowing from

depression."

contains

p

com¬

phrey puts it, "Adjustments,
but not

of

force

^Q ^ government, then using the stock market will surprise the
exampie in tbe first horizontal Bears rather than the Bulls.
line ^ in the above tabie jts per
In
conclusion, if business deghare earnings> column 5, line I, blines, the stock market should
ir°rn reaching undesirable levels. wRb excess profits tax, amount to decline. Reserves for future buy¬
D^lclt *inaneing appears inevi- - ^ 95 jnstead of >50 in this case ing are essential. However, pro¬
table under the assumption of a > the advance in earnings with lapse vided

cent caPital expenditures appar- inflationary aspects

ently have been stimulated by the

collapse of business itself, that the

table. Thus, budget balancing may
be postponed and the government
iorced into a public works pro|ram to ^prevent unmployment

Pretax-

Earnings

I.

JL

•

III.

IV.
V.

a

7

%

in Pretax

Earns. After

No Excess

Under

in Earns.

Earnings

Normal and

Profit

Excess

With

in

Tas:

Earnings

From I

Surtax
,

Per Share Earnings

Financial

has

become

60.0%

South Grand Avenue.

1.32

0.60

45.5

was

300,000

1.50

—

Carl

associated

Shearson, Hammill & Co., 520

0.90

37V2

Chronicle)

Calif.

No EPT

625,000

'

The

$1.50

1.92

40

Becker

with

to

ANGELES,

Profit Tax

384,000

60

(Special

LOS

$2.40

Only

20%

600,000

Advance

Shearson, Hammill Co.

$480,000

800,000

400.000

5

Advance

8

Dollar

$1,000,000
.

4

2

%DecUne

Carl Becker Joins

formerly

Mr. Becker

associated

with

Walston, Hoffman & Goodwin as

288,000

1.44

1.14

0.30

192,000

0.96

0.96

Equal

-

26.3

Manager

partment.

of

the

Brokerage

De¬

Number 5248

Volume 178

The Commercial and, Financial Chronicle

...

(631)/ii
be

Life Insurance

Missouri Bxevities
reached

1953

1953 reached

months of

six

record $175,278,971,
up approximately 39%
over the
corresponding period in 1952,
the year to a

Charles Allen

Earnings

quarter

The

*

*

*

Corp.

Investment

Midland

1

(Mid-

land Theater and Office Building)

$31,522,809,

City, will
be
advised
shortly that the stock will be redeemed Oct. 21, by an exchange
for general mortgage income
bonds in face amount equal to the
par value of the preferred stock,
Thus for each share of preferred
there will be issued $100 principal amount of bonds. The 5,572.3
shares of preferred will be converted into $557,230 of income

for

,m£s'

of however, the amount of fire

stockholders

preferred

the

taxes

before

Income

third

the

all

months

47%

up

and

the!

over

Net

year..

was

period last

same

after

income

income

profits taxes amounts

excess

to

$13,503,974, which, after provision for preference dividends, is
equal to $2.51 a share on the
shares

5,270,051

common

standing.

Earnings for the

sponding

out-

corre-

period in
1952
which equaled

were

$11,100,852,
a

$2.05

#

*

Stix, Baer

&

*

*

Fuller,

for the six months

St.

ended

Louis,
Aug. 1,

1953, reports that net sales at $21,-

371,819 represents
2%

the

over

period in
taxes

and

year

the

of

same

profit before

to

$897,978

net

ftRR^vp^n^'
aS
$417,088
a year ago.

against

After deducting preferred dividend

requirements,

both

years,

after

equivalent to
53

cents

stock

per

earnings

taxes,

in

were

slightly more than
share of common

outstanding.
♦

30, 1953, net
were
$581,940 or $3.34 per share
on
174,213 outstanding shares of
with

compared

for the first half year

959487 in 1953 and
1352..,

the

in

common

com-

g

e

,

^^t0"v^nt"° sh?.1d bea mady

^Cl0r4f Payments shoum oe ma
Jn the ficsal year, George Reu-

Judge,

frames

President,

stated
com-

At

up

the

the time

castings for railroad freight
equipment
are still in sub-

stential

volume

but

ishmg scale because
in freight car
of

the

company's

buying

the

the

Emerson

Ing

Co.,

a

decline

the

dividend

;

designed

others

to

growing

freight

Electric

St.

Louis,
of

through

its

upon

the

trend

the

dollar.

in

Jn

to

Life

Buy

Insurance

husband

is

bringing

now

sufficient

life

home.

insurance

The primary bought now, the increased buying
to war and power of this insurance when paid
...in
preparation for war we did not will partly offset the loss in* the
balance our national budget but family income in case of his death,
issued billions of paper money to
Hence, this is the time to buy
ma^e up the deficit. Any banker life insurance. In addition to getyears.

j-hat

was

owing

ii..

accept your note at par if
have all your bills paid, a

yGu

ting full
pay

good job, and money in the bank,
however, you can't pay your
bills
and
are
constantly giving
otd

more

are

acCepted

only

at

this

means

that

jn

order

have

to

you

must give

them

accepted,

education for

businessmen

your

it

in

100-cent

For parents
also

now

aild the more notes you issue, the time for spending
bigger the discount

•

insurance the day you
first premium, you are

family may be paid
dollars when you die.

discount,

a

i

paying your premium with 52cent dollars while your wife and

then these notes

notes,

your

1.1__

i

^

was

.

the

first

did

year

seven

when you

months

wholesale

the

than

$1,166,000

was

a

year

$8,189,000

ago.

of this

divis

on

,

Retail

uucuon, less
™

air rental lor tne

J'

union<?

Gm'olovers

P

.

means

now

for

the

first
year,

t

George A. Rogers, senior part-

ner of George A. Rogers & Co.,
Inc., 120 Broadway, New York

•

In the long run, City, announces that his son, First

ing out

case, you are pay-

dollars

poor

as

premiums

tbe hope your wife will get
•

"something for
nothing." What labor gets in unproductive wages, it loses through
higher prices, higher rents, and a

declining dollar value.

.

°o1^ 1y0Qu ^e
.

,

.

To

why the Dollar Is Declining
In

■

■

view

the

of

fairer

Lieutenant George A. Rogers, Jr.,
will be associated with the firm
as

soon

he

as

charge

from

Army.

Lt.

receives

the

his

United

Rogers

For tbe

seven

fail raleg

were

recently re-

attitude

with Metal Pendant while serving
in

Korea where he has been since

change * the,Value,l°" which the Eisenhower Adminis- January, 1952 as Assistant Battaldollar was 100 cents in 1939; 11 tration Is taklng to balance the J™ Motor Officer of Headquarters,
lauK Battalion,

declined to 52 cents in 1952 and spending, borrowing and producConsidering that the people of the

tion budgets, the value of the dollar should

go up

now

again. This

United States hold life insurance means many things:

(1) The

policies totaling over $275 billion,

have

money

which

you

now

in

P°11Cles t0taling 0ver *275 bllllon' money wtUCtl yOU n°W nave m
thls decline in the value of our life insurance,, bank deposits, and

sales of billions of dollars.

elsewhere

will

value.

Your real wages will

(2)

be

growing

With S. R.
(Special

to

The

DETROIT,

Mich.

Pietrzvkowski

Livingstone,

Livingstone

Financial

is

—

now

Crouse

Chronicle)

Walter
with

& Co.,

0( 13.6%
^

over a

Detroit Stock Exchange,

volume

•

whole$53,972,000 was

year ago;

0f

AH of these securities

'

_

having been sold, this advertisement

appears as a matter

153%

of record only.

.

NEW ISSUE

ahead of the $90,344,000 for the
same

period last year.
♦

*

*

Gas Co. reported net

Laclede

income of $2,872,799 or 95 cents
common

30, compared with net

income

$3,131,633,

of

common

share

amounted

to

TEXAS INTERNATIONAL SULPHUR CO.

share for 12 months

ended June

a

year

or

$1.03

ago.

$31,871,868,

reported

a

Gross

against
1

•

$29,627,585.

400,000 Shares Common Stock
Oiin Industries

,

Ely Walker Dry Goods Com. & Pfds.
Anheuser Busch

National Oats
Miss.
Texas

Offered

Valley Gas

at

$1.00 Per Share

Eastern Transmission

Scruggs-Vandervoort-Barney Com. & Pfd.
Tenn. Production
Natural Gas & Oil

Wagner Electric

:

Bought

—

Sold

—

Quoted
This issue has been

XCHfFCK, RICHTEH COMPANY
Member Midwest Stock

Landreth
Bell Teletype
SL 456




St.

i

*

underwritten

placed by:

Exchange

Building

Louis

V. t

and

o

Garfield 0225

2,

Mo.

L. D. 123

VICKERS
52 Wall Street

BROTHERS
New York 5, N. Y.

DIgby 4-8040
wMb.r

S

J.
R

pen:

in obscot Building, members of the

a

m0nth period, re$49,467,000, a gain

dis-

States

ceived the Commendation Ribbon

.

..

■

June,

the

more production in return,
this results in an unbalanced na-

ago.

year

per

fiscal

is

Join Geo. Rogers Go.

to

Lh

none of us can get

.

g

greater dollar has cost Americans many

$565,000 above

were

dje—aithough she then

$103,000,000 then started climbing back again,

$17,890*000 total volume

\"ly

In

would be much better off than if tional budget.

_

.

than

more

years.

y°Ur W*fe m3y get P°°r dollars giving

it

Western Auto Supply Co. (Mo.)
in

need

Manufactur-

the

iicAt

value during the next 20

if business had improved.

re-

to aug-

cars

is

money on an
children. For

situation

participation

or

°ut

e

Partly

{

In the second

stated

company

,

the part.

on

*

months

October

of

present supply."
*

nine

dimin-

program

nation's

for additional
ment

a

This

average

by the railroads
lieve

j

Total sales of $103,439,000 for
changed quickly by this the seven months were 14.5%

railroads.

could be

any

buying

on

you

should depend

the payment by the end of the

year

miscellaneous

and

steel
r

ta

;

laud, President announced.

amount

pany's regular products—bolsters,
side

which

i

higher

present1 hiSf w^es1 Vhich^vour

why

—.,,,4 5—

the the first case, you are paying out
fiscal good dollars as premiums, while

centage of the year s ea n

-

F.

insurance

Time

dollar declined in value dur- With

one

on

current

$13,699,956 in accounted for
$9,701,000, which

that "Unfilled orders for the

in

already has paid $1

pany

$15,-

were

^

E.

lite

ask for

now

more

sevice,

wages.

Dollar

reasons

producing

are

rendering better

or

should not

we

•

pay envelope.
unless we can

Rogers, Jr. to

the

$2*57 per share on Gf business, the largest amount

u°r

of

amount

Ordinarily,

period^ast vear^The^i^^sales forOfany
Slmllar period*
the

ing

so

the

*

*

of the fact

"In view

earnin/s

ended June

stock

placement,

hoped it would be able to make

Steel Co., St. Louis, rethat for the six months

common

the cost of re-

j

^

passed
♦

*

Scullin
ported

j-

Declining

various

are

we

goods

your

that

even

number

same

rilS
Another reason for a declining time to spend money on instituRo^er W. Babson
The directors of Gleaner Hardollar
is
when
anyone
accepts tional advertising and on other
vester Corp. on Aug. 12, took no
action on the common dividend cline in yalue for the ne t 20 waSes> interest, or profits for more
long-term" investments.
usually due in September. The years, you would not buy so much than, he deserves. Wageworkers
June quarterly dividend of 50 2o Payment Life Insurance as if are en5
d to wage increases in
G. A.
cents was omitted.
they agreed it would increase in Pr°P°rtion to their inci eased pro-

this

$893,188 last year,
profit after in-

was

Consolidated

for

Net

amounted

increase

an

sales

1952.

pend partly on

j,

for

ing the past 20

OUt should
Should deout

Kansas

There

^S'
the
in-

taken

surance

bonds, due in 25 years.

share.

common

individual should carry

Reasons

in

:•

six

first

an

reasons

I believe in life insurance at
amounted to 69 cents per share,
against 95 cents,
times, the same as I believe

Thomas, President,

reported.

for

amount of life insurance

depends in part, on the value of the dollar, Mr. Babson gives
why value of dollar is declining. Says now is the time
to buy life insurance.

quarter of or $2.03 a year ago. Net sales for
the latest period amounted to
the company's $42,953,572, against $35*525,487.

first

the

for

sales

Holding

in

means

prove

$2.53 per common share, cornpared with net profit of $982,960,

high of $89,—

new

This

month

every

get the

you

dollars

of

By ROGER W. BABSON

profit of $1,235,938, equal to

net

second

a

bringing

760,049,

subsidi-

Australian

the

for

aries,

high of $89,-

new

a

and

British

Company's

Chemical

Monsanto

increasing

though

The Commercial and Financial Chronicle

(632)

has not

likewise

Prof. Pearson Sees Price Level

explained.

Cornell

supported doctrine gold

economist, who

University

Supply

supply regulates prices, foresees no world depression and
maintains "gold is still common denominator by which com¬
modities are priced in world market."

who

the

Torrington
Manufacturing
Co.
of
the
early Thirties.
has begun construction of a plant
Every indication of such Virtuous
addition with 46,125 square feet
hoarding' during the next few

be

should

scrutinized

tie-

hoarders, public of private,

cause

their

surround

activities

with

secrecy," he warned.
Prof.

A.

F.

Continuing

Cornell

of

Pearson

the influence of gold sup-

rig to

j-ily

prices
in the

on

cepted

ac-

of

explanation in one or more of the
following three world-wide forces.

days

Administra¬

tion,

told
i

m

is

•with

the

of

our

economy.

that the
is

not descend

on

«(2)

He also pointed out
whereas

normal

Twenties

the

it

0£ paper money and

in

,e

financing

market

drug"

Prof.

"Gold

Pearson.

is

denominator

common

commodities

world's
ard

challenged

was

The

market.

has

in

gold

stand-

been
abandoned
on
the
street," Prof. Pearson maintained.
'

three
not

out that fox

decades

Played

economists

gold

little

while

he added,

the

thst

increasing

numbers

low

deflation

a

agreed

of

of

sources

thp

but

1953

expansion

of

tVar

0f 1943;

(c)

II

different,

were

uost-Wnrlrl

^orj,j

only

was

capital for world-

w„eprivate

functhat al-

saying

Wsr

I

and

post-

sources

were

taxes

by the American public;

(d)

economists have deserted the gold

the
War

II

was

prolonged in World War I;

couple of billion peo-

^

cu,rrencies are
gold, Vh1°Se
have not.
Many
have

hazy

been

"the

income,

sacred

went

prices
that

are

to

based

relative
.

still

„

on

.,

for

gold

control

the

supplies and demands
uuring the Twenties,

than

.

,

to hoard

,

commodities

price

level."

•

hoarding

is

'

,

..

a

p.r 1 Y

,

fiation

scarce

and

Y

dividuals

v

gold, producing de-

reprehensive

like

and

you

for

in¬

to

me

■■

'

8

COLORADO
Delaware

of

34

patented

claims

located

County,
After

in

owner

its

to

debts

by

mining
Routt

PER

SHARE

im¬

fifteenth

ment

been

*

ac¬

The

production

was

from

claims

these

moved

Officers of the
sist

new

if

ber

ore

Brunner

plants

Dealers invited

metals

the

in

Mfg. Go.

Securities Offered

in

through
note

sale

to

(par

Co.,

shares

$1)

Inc.
of

and

of such

ore

are

subordinated

are

stock

$1,500,000

of

convertible

6%

deben¬

Light
shares

of

rights.

indicated

is

stock

priced

at

$6.75

share, and the debentures
and

accrued

The
until

per

at 100%

interest.

debentures

are

maturity into

convertible

stock

common

at conversion

prices ranging from
$7 to $8.75.
They are callable at
prices ranging from 106 to 100 V2,
except for the sinking fund, for
which

$103

the

call

prices range from
$10014 plus accrued in¬

to

terest in each

on

from

proceeds

the

financ¬

ing will be used by the company
purchase of equipment for

for the
its

number of authorized

would

be

first

the

by

the

sale

of

new

its

current

tional

working capital for its
panded operations.

ex¬

Vickers

since

company

if

29,

Bank

the

New

Bank.

the

London

City

one-half

tional

shares

The

owned.

share

of

of

Hart¬

air

cial

conditioning and

refrigeration.

It

commer¬

also

sells

'

"Brunner" package air condition¬

ing

units

for

commercial

in

sizes from 2-10

manufactured
Coils

Co.

of

use.

for

it

and

J.,

and

contain Brunner compressors, and
manufactures air compressors.

ments

have

branch

Joins
(Special

three months, ship¬
running over

been

shipments.

Merkel

has

become

open

at

A

registration

a

Company
of

of

record

Aug.

has

end

of

being

12

days.

The

on

shares

waive

subscription

67,187 shares of
*

John

—

affiliated

New

has

received

tained

from

i

the

miles

Felipe,

recently announced

The

Financial

Chronicle)

Braun,
Water

Monroe
Street.

&
He

Co.,

735

merly with Blair, Rollins &

Co.,

Barcus, Kindred & Co. in
Chicago.
1

Lcewi Adds
to

The

Staff

to

Financial

Chronicle)

a

RACINE. Wis.—Orville B. Newcomb

rights 'on

has

Loewi &

become

affiliated

with

Co., 818 Lathrop Avenue.

Alexander J. Burns
Watch Co.

&

approval

Alexander J. Burns, member of
the New York Stock
Exchange,

the

from

$360,000

and

the Defense Production Act.

a

heimer

loan under provisions of

CONNECTICUT

passed

Pro¬

a

long

partner
&

Co.,

away at

in

Carl

New

H.

Pforz-

York

City,
the age of 60 after

illness.

1

SECURITIES

*

'•

,

^

f

BRAINARD, JUDD & CO.

participate

75 Pearl Street

cv"

'

'

\

'

•

v

v'd

\

>

\

:

J

>

1

"j*

may

be ob¬

Members New York Stock

CO.

Exchange

New Haven

HARTFORD, CONN.

-

PHONE

NEW

YORK

"SECURITIES

PHONE
5

7-5291

HAnover 3-7923

.

\

(

BELL

TELETYPE

HF

VT
/

1

New York

—

REctor 2-9377

Hartford 7-2669

Teletype NH 194

:

i

Telephone: HA 2-2244

&

CONNECTICUT

undesigned

& CO.. Inc.

■

CHAS.W. scranton

Primary Markets in

197

,/fW-'Member Natl. Assoc. of Securities
Dealers, Inc.




23

San

for¬

are

and

with

HARTFORD

Wall St., New York
5, N. Y.

of

Inc. and

a

Reconstruction Finance Corp. of a

Securities Company.

State

was

if

Clock

Haven

the

stock.

new
%

in

some

town

was

to

(Special

underwritten

The Navarro Con¬

located

situated

the

of

North

one-for-one basis at $3.50 a share,
with the rights expiring at the

not

locate, if
sulphur de¬

immediately.

with

shares

12

the

to

MILWAUKEE, Wis. — Overton
A. Myers has become associated

stock, to be offered to

common

holders

and

on

Mexico, and
arnroximately 2,471 acres

(Special

by Silex

covering 201,563

exploration

With Braun, Monroe

new

statement
SEC

$1

an¬

Goodbody & Co., 218 Beach
Drive, North. He was formerly
Florida

start

large shop¬

a

been filed with the

Chronicle)

PETERSBURG, Fla.

1

at

that operations at these mines will

group of stockholders have agreed

Goodlbody Staff
to The Financial

Oct.

on

has

com¬

California,

Mexico. It

ping center jn West Hartford.

are

by American

N.

bank

are

are

south

tons

which

Newark,

Recently 1 the
nounced
plans to

Baja

contain

on

ger.

York

Co.

test wells

commercial

cessions

June 30 will be increased by
Gainesville, Ga., is one of the
leading manufacturers of com¬ about $20,000,000 through the mer¬
use

the
core

posits thereon.

Na¬

presently

shares

new

Sulphur

Concessions

present,

and

one

New

•

of

Navarro

New

of

by Vickers

(par 10 cents) of Texas

drilling of

receive

Manufacturing Co., ford National, totaling 105,000 will
present plants and prin¬ increase the outstanding capitali¬
cipal offices in Utica, N. Y., and zation to 705,000 shares. Hartford
plant
under
construction
in National's deposits of $247,000 000

for

stock

penses

National

will

Sulphur

are primarily to provide funds
required to pay costs and ex¬

its

units

com¬

The net nroceeds of this financ¬

Brunner

with

Con¬

to

ing

and

Hartford

of

each

for

expected

share,

per

National

of

Commerce

of

provide

building.

Brothers,

International

Trust

&

the proposed
National Bank

Stockholders

Bank

of

approved

with

to

ten¬

issue of 400.000 shares of

if

stockholders

National

Company

but

various

razed
new

not

its

build¬

City, has underwritten and placed
mon

Hartford

be

is

Two

Travelers
to

Stock Sold
an

if

July

by

Texas Int.

1929.

On

offices.

new

to

until next year.

mence

shares. This

plant, to pay off 10 shares and holders
bank loans, to- retire London
City will receive

its, preferred stock, and for addi¬

will

for the

a

one-for-eight basis

a

southern

new

ants,

build

to

adjacent

leased

space

probably take place in the
fall, "after first obtaining stock¬
holders permission to increase the

common

if

plans

owned'

struction

stock

common

of Commerce of New London

Net

to

105,500

would

merger

case.

ings,

through
Sale of the stock which is

tures

mon

voted
of

9,000
of

proceeds

company.
if

main

presently

sale

by

net

building

present

Electric

have

the

num¬

In

the

to

announced

office

*

Hartford

Company

recommend

ner

due July 31, 1968, of Brun¬
Manufacturing Co. The com¬

*

of

to

The Travelers Insurance Co. has

insurance company.

life

a

Directors

hereinbefore

Offering Circular

discovered.

ItAHI'CIl

the present

on

provided

$216,000

15-year 4.75%

a

!*'

Valley
offering

common

of

weeks

oversubscribed

shares,

Kensington,

Allen & Co. and Mohawk

re¬

was

i

bodies

Atwood

&

28

a

shares.

was

of

develop the claims
commercial

shows

in

of

the

obtained

that

to

*

April the com-'
offered 13,500 shares cf stock
through rights.
The issue, which

Conn., and
Chicago, 111., has obtained $900,000

greater in cop-,
per content than any of the
other

re¬
con¬

pany

if

if

18

share, based

company con¬

largely of former officers

was

claims for Molybdenum,
Copper, Gold and Silver
where

*

report of Plume

ment

American Paper Goods Co., with

do

'

new

business to 7 to 8 months.

Manufac¬

have

purpose

The

amounting to about $900,bring the backlog of govern¬

000.

Company

special

devices.

tracts,

Jacobs.

substantial

n o

mentioned.

44

that

not

mediately dehoard."

C.

claims, the Company
proposes to explore the

to

did

with

past, the

preliminary

the

and

revaluation

private hoarders

ST.

Although

rehabilitation work is done
on

turing

for

cording

*

Jacobs

of

assets

contracts

sbarp improve¬
earnings to $1.65 per

1

10c)

$1.00

Colorado.

certain

private

to

STOCK

Value

PRICE

Company is the

ering

July

Corporation)

COMMON

This

of

pany

MINING CORPORATION

OFFERING

central

the

is

*

received

the

for

several months'

(Par

*

has

for

Corps,

for increased production of
air impellers as a result of the
rapid growth in the use of cool¬
ing, heating and ventilating ap¬
pliances.
The present major ex¬

pansion program
with since 1900.

$1,100,000 per month and com¬
has unfilled orders equal to

299,000 SHARES

(A

for

Sound-

weeks

Signal
Navy and Air Force cov¬
dictating
and
recording
equipment of the company's reg¬
ular lines as well as development

provide

to

recent

Corporation

defense. contracts

Company

in

,

a

|

11

required

During
scriber

completed before
year.
The new

which far exceeds any quired by Chicago Pneumatic Tool
Operations will con¬
disadvantages its opponents Company.
can
present. This, said Dr. Pear¬ tinue in the present plant, located
A New Jersey
son, is "that, it accelerates the in¬ in West Hartford.
evitable. There is on case in mod¬ corporation, which is a subsidiary
ern
history where a nation wro|te of Chicago Pneumatic Tool, has
been
set
up
to operate Jacobs.
up the value of its assets relative

For the past

|J* NEW ISSUE

of

merit

one

pressor-condensing

boarding is wrong. Just why it
Is virtuous tor persons collectively

de-

and

in

more

.e

the simnle fact

and

with

"Commodity

supplies

*

rmands

say,

it

Having established his idea that
fj.
supplies determine commod] ^ prJCe±u Dr. Pearson than chal-

officials. Dr. Pear-

are

on

while

price

is

now

TT

surplus and deficit financing,
"the sacred heifer" of government

son

post-World

lived

our

cow,"

and

economists

of

short

was

line

level

to explain
including na-

prices

disarmament

(e) but most important,
averred,

presented

commodity
tional

he

ideas,

demands

simultaneously

sources

capUal

standard,

a

is

working

if

of the

in

in

not

Pearson

the

wjde

longer

no

v,

the world
Washington."

made

below the peak

15%
the

that

wonder

concluded

standardI

tioned,
though

the last

gold, supplies have
usual role in

is

.

Pointed out _that (a) the urban
an<* rutal depression
o_
™YVeV?o?n
^48; below
(b) the■the1930peak
prices
were
-43%
of
1920

their

It

prices.

'

e-xpecting

Dr-

ties

the

necessarily
by the man

The

malarkev

is

d

World War were Panted wrth
a comparison of the two postwar
f.erIods- T,M there "e
?

the

not

He pointed

building

be

*

hoarding

similar to that following the First

which

by

and

Those

by

still

nrieed

are

fhis

'oy'

,h

m

Treasury
may favor hard money
but

fall

theory that inflation and deflation
are
a
result of surplus and deficit

There

100,000

*

prices are

"wonder

Keynesian

the

The

Investing

(3). J

,

commodity values.
The

works

credit in the

'

tt-

accompanied

spectacular

the

of

bank's."

urdted States relative to its trade

banks for gold

central

by

j.nd

world-wide

in the amount

A decrease

fcy the expanding world-wide demand

Pearson,

Dr.

during ,nee(js>

abnormally

was

low. The low supply

precipitated

said

country,

"(1) An increase in the amount
of monetary metal in the United

present demand for gold

about

in

of States dollar,

magnitude

the
will

Thirties

deflation

no

to

end

for

used

if

^

a

depression

be

due to:
Dr. F. A. Pearson

i ndustrial

and

only important if it is world-wide

the

this

and

the

metal

monetary

the

will

There

•during the
therefore,

*.

world

in the

relative to commodities."

case

Twenties,

for

demand

gold

than

supply
was

§

line

the

metal.

increase

An

"(3)

relative

commodities

the monetary

to

world

the

in

decrease
for

demand

now

in

more

A

•'(2)

Ithaca, N. Y.,
on
Aug. 14,
that our price
level

"The

unit rel¬

to trade needs.

ative

at

world

the

in

decrease

supply of the monetary

a

n a r

A

"(1)

Grad uate

S.e

causes

Roosevelt

early
the

largely

were

into the

on

000

be
*

of floor space to cost about $500,-

the

will

capital.

-space

of inflation and deflation Pro- gold and the activities of Far
fessor Pearson stated that those Eastern hoarders are minor. West¬
expecting deflation in the not too ern hoarding
hy individuals is
distant future should look for an

University, whose theories relat-

ceeds

deflation

years

Thursday, August 20, 1953

.

Connecticut Brevities

central

hoarding gold,
the true culprits of the

were

.

adequately been

was

banks of the world,

More in Line Wifh Gold

.

It

.

I

Number 5248

Volume 178

..

.

The Commercial and Financial Chronicle

The Forecasters

Fifty-Fifty

generally far below the formation filed by the issuer is in
boom levels since attained.
a Public Me available to investors.

-

were

It is axiomatic in the stock
.

THE MARKET... AND YOU
By WALLACE

gloom this week

deeper in

sistent

strength in
bellwethers, such

of

somewhat

wnv

way.

the

much

seldom

[The

ine payoii ques-

market

evenly

clouded

Consequently, it

.

list

tion ot which way is

couple of basis

a

,.

tile

of

sort

oracles

divided.

-J—

decisive

action.

could

for

about

There

talk

end

something
the

that
leth¬

summer

and boost volume to the

argy

break-even point.
*

%

%

Majority sentiment still fa¬
vored

for

least

at

the

last

one

traditional

gasp

"summer

rally" but all the surface in¬

Iligh-and-Low Regulars

Adopts Amended

Rule

on

Rules

a

exchange will still have to notify

Trad'g

securities

which

upon

mation with the Commission. The

Commission

the

Unlisted
national

a

change

if

the

security

of

is

such

changes
listed and

not

registered on any national securi¬
exchange. No changes are

ex¬

ties

security has

made in paragraph (b)

of the rule.

been admitted to unlisted trading

throughout the
have trimmed their

summer

listed trading privileges of the
necessity of filing similar infor-

SEG

isn't

optimistic
The

considered

was

this to be appropriate to amend Rule

in

—

as

Brokers all but gave up their
search

expressed

those of the author only.]

due finds

any more of the
General highs-vs.-lows, at least as far <<summer
rally" by them since
Electric and DuPont, failed to as
they can be a barometer to ,+ is
only a couple of weeks- to
spark the stock market into overall market action.
Labor Day. Some of the more
some

views

to

standing still article do not necessarily at any X-12F-2(a) to relieve national selong before it erupts iime coincide with those of the curities exchanges upon, which the
Thn r^xrnff
Chronicle. They are presented- as security has been admitted to un-

for very

repetition here, too. This the
the per¬ duplication on a day-to-day

as

,

that

close

comes

pifhpr
einer

Wall Street sank

,,

,

market

STREETE

13

(633)

privileges

Bankers Offer Pacific

longer need notify

no

SEC of certain changes with

re¬

Finance Oebesifyres
Regulars, more or less, on sights down to a 280-85 target spect to such security if it is also
registered on another exchange.
high
side were
First for the last effort of the sum"
Public
offering of $20,000,000
National
The
Securities
and
Exchange principal amount of 4% debenStores, American mer upturn. Even this estiStofes, Briggs & Stratton, Na- mate> allowing orily a five to Commission on Aug. 12 announced tures, due 1959, of Pacific Finance
tional Dairy and American ten Point leeway, doesn't ofColoration is being made toady
the

T-)

xx

j

t

j

4.-U

Home Products. In the
the latter issue, it

.e

of

case

for

mnrh

brought to traders

three the number of Bi<? Board

tr>

hulk

the

of

er mucn to tne duik oi

the

X-12F-2 under the Seeu-

.

tnu

nties

Exchange Act of 1934. Under

because it could be the amendment

achieved in

very

a

a national securiupon which a secu-

selective ties exchange

(Aug. 20) by a syndicate headed
jointly bv-Blyth & Co., Inc. and
Hornblower & Weeks.' The debentures are priced at 997/8% plus

divi- market and leave many issues »ty has been admitted to unlisted accrued interest from Aug. 1,1953.
highs, unaffected. And it would still: notify^e Commissfon of rertSfa
yT be'inftHllv an!
path downward was an easier Clinton Foods and
Wrigley go down in the books as a changes with respect to such secu- plied to the reduction of shortone to
negotiate. A sharp
attaining this eminence some- rather limp summer rally.
Y if' ®JS°
term bank loans.- The company is
mid-week selling drive that
*
*
*
what earlier
*
*
*
nationaj one of the larger companies ensecurities exchange.
dications

indicated

that

the

monthly

stocks that pay

dends that reached

new

...

.

.

zoomed in

on

of the

some

cent favorites undid in

a

re¬

*

Lows
-ows with
witn

up,

notably

in DuPont which had
well
all

over

the

par

way

forged
only to be cut
back in a few

sales.

General Electric fared

a

bit

better, showing the earmarks
of pension fund interest, or
such, since the

some

farm

equip-

ments

and
one

along with Twin Coach
Ruppert, which was just
indication that the

more

better

acting issues

mialitv

$

some aetermma
determina-

included

tion

build

to

Instead,

*

cou¬

ple of trades what had taken
sessions

*

ones

that

the

are

would

at-

the

chore^ of the . Paragraph (a) of Rule X-12F-2
analysts these days is again Provides that whenever any-secuki
t th° {
rity admitted to unlisted trading
.

me -on® 01 vexing out tneub

privileges-on

a

national securities

ates 196 °Mces located in 19 states,

security

A companion work is culling leges

cjnnd

comnarative

previously6

ad-

For the year ended Dec. 3, 1952,
such exchange: the title loans and discounts acquired to-

on

earnings

dividend rate, number of shares

:•<

,

of

❖

influence

an

to

•

spur

spirited rally.

*

a
>

,

I he

a

matter of

The

fact, the sud¬

tions

more

individual

an

on

convincing

ac-

basis

^ey

.

taled$431517n2 compared with
for the year 1951.
months ended June

$317,295,125

For the six

30, 1953, loans and discounts acquired totaled $205,831,424. Gross
insurance premiums written for
the year 1952 totaled $11,567,000,
compared with $8,606,854 in 1951
and $4,927,213 for the first six
months of 1953. Net income for
the 12 months ended Dec. 31, 1952

the, market
changes occurred with respect to totaled $3,558,440 compared with
anticipatingthe the security, irrespective of $2,294,008An 1951 and $2,088,387
EPT, almost to a man whether the security was listed f°r the first six months of 1953.

students
end of

As

last

v

,,

,.

,

time

were

rTiflmptripnllv

fuD,.

Mystery Rises

the

insurance

be

markets of recent days. Sup- g0°a comparative earruiigb
authorized> Qr
outstanding
panying rumors of a stock
port of this nature admittedly largely because 01 the release number of shares of a stock. Prior
split in this issue weren't
is an important nroo for the Irom EPT liability.
to the amendment the rule regiven too much credence, at
*
*
quired the exchange to notify the
market but is something short
least as far as such action be¬
Commission whenever any such

ing imminent.

antf

mitted to unlisted trading privi-

.

^

automobile

and

when the Excess Profits Tax

aT

\

of

property,

expires at the turn of the year.

buvins
buying. out the issues, depressed at Of the security or the name of the
hpoansp of an un- lssuer! the maturity, interest rate,
buying is conceded to be tne moment because 01 an un Qr 0UtstandiiTg aggregate princia prime—if not the sole—incertain future, that could pai amount of an issue of bonds,
flnpnpp at work in thp licrht maintain payments and show debentures or notes; the par value,
.

writin^

automobiles

on

in connection with these financing activities. The company oper-

Such

.

consumers

other personal

su.^s that would show th<~ exchange is changed in one or
Wlde*t improvement in net more
respects it

toctiinstitutional
ns t hu tion
tract

accom¬

saies financing, direct lending to

Straneelv
away lupm me uu&. oudugwjf,
fmm the nils

den surges

and

ana

registered
registered

another
anotner

on
on

ex-

Change' However' whenever
such
change

occurs

The

new

debentures

are

re-

any deemable prior to Feb. 1. 1957, at

with respect to

103%; to Aug. 1, 1957, at 102y4%;

of these two qual¬ continue to' stem from divimoment the oi s are re- a secur^y iisted and registered on prior to Feb. 1, 1958, at 101 Yk%\
ity issues were something of a dend action. But here
again it garded somewhat favorably an exchange, the issuer of the se- ^^thprpnftp?' inni^Thp1'
mystery
that nobody has isn't
entirely satisfying to the both because
curity must file reports contain. interest requi;ements of the new
solved to any unanimous sat¬
professionals. Apparently the increases ana pecause aemana jng suck information; and this in- debentures will aggregate $800,000.
isfaction. The talk on DuPont
list
has
been
well enough has held UP surprisingly well.
was a repetition of the
age-old
combed,
starting with the
*
*
This advertisement appears as a matter of record only and
belief that someday the com¬
earnings statements,1 for those
Equally perverse are the
is neither an offer to sell nor a solicitation of offers to buy
pany will find it feasible to that are
any of these securities. The offering is made only by the
logical suspects for new signs of weakness in the
pass along its important hold¬ better dividend treatment be- tobacco shares which, because
Offering Circular.
ings of General Motors to the cause once the confirmation of their defensive nature, have
NEW ISSUE
stockholders. The only official
comes along there is little fol- been showing superior market
298,000 Shares
action was declaration of the
low-through left. The old mar- performance all year. Lately
regular dividend early in the ket
adage of selling'"on the they have taken to wavering
EDGAR L.

.-of^centprice

week.

DuPont's action

bit

out

Such

of

the

the a bit and on Tuesday's sellmomentary runup isn't much ing
they retreated rather
of a success these days
unanimously. They had been
sjs
if
thought to have more life left
good

if.

t'fi

was

normal

also

a

line.

news"

to

issue

normally could
While the daily action has *n
them, particularly since
be expected to sway in tune
ones
like American Tobacco
been somewhat erratic, on a
with the company in which it
are
still short by more than
has an important interest. But weekly basis the better per
20 points of the peak reached
spective points to a constant
when
fire
destroyed
GM's
Where *n 1946. Phillip Morris, anmammoth
automatic
trans¬ ly narrowing market.
the higher-versus-lower stock °ther given to faltering re¬
mission plant, disrupting pro¬
price ratio was 835 up, to 329 cently, has plenty of room on
duction
schedules, and the
stock started to slide, DuPont down, a couple of weeks ago, the top, too, since it is still
and 820-to-355 the following sehmg below the best prices
•'went just the other way. And
1951 and 1950 and also
when DuPont reacted, Gen¬ week, last week it was down of
to
a
near-balance
of
572 something like 20 points short
eral Motors had turned over
an

to the

stronger side of the list.
*

*

*

higher

to

611

This

lower.

week's action has been simi-

of the 1946

*

strong ones went their op- general market has been vir- the rampant

posite

way

with




a

fair share tually all

year.

*

(A

New

versary

next

gineering,

New York City

Corporation—Celebrating

York

year,

research

this

enterprise

development

and

its

50th

Anni¬

in
manufacturing

has

pioneered

en¬
con¬

nected with the electro-mechanical and electronic fields.
has
in

now

entered,

and

the newest of all

is

increasing

its research

It

activities

fields, microwaves.)

Common Stock

Price $1.00 per

Share

Copies of the Offering Circular may be

obtained from

Gersten & Frenkel
1J>0 Broadway, New York 5, N. Y.
Telephone: DIgby 9-1550

«

..

•

10-15 Spruce Street,

peak,

*

larly balanced so far. WednesThese issues, as well as any
Elsewhere, it was mostly a
day s late assault, which inmonotonous pattern of down
cidentally. gave the industrial others. show the st"kingly
one day, up the next, net re¬
and rail averages their widest different effects when there
sult
nothing.
The chronic
joint moves since a late July is widespread caution, as
weaklings have been repeat¬
rally, was as selective as the there is today, in contrast to
ers on the list of new lows and
the

SCILUTOE, INC.

cream

.

,

optimism of 1946

when earnings and payments

GERSTEN & FRENKEL
Please

send

me

a

copy

the Common Stock of

-

150 Broadway, New York 5, N. Y.

of the Offering Circular relating to

Edgar L. Scillitoe, Inc.

TEL

NAME

ADDRESS____

—CITY.

STATE-

The Commercial and Financial Chronicle

"(634)

14

Program for Excise Tax Reduction

ties;

expense

consumers,

local government the revenues

entire

selective

are

directed toward

of

discriminatory,

list

excise

exception

those

of

on

imposed

The

place.

or

need

tax

in

the

stated

billion dollars

gasoline.

annually.

I

these

cises to

cate¬

in fiscal

are

selective

the

.

a

now

in

cause

Billion

there

special

possible by
efficiency and economy. $2

Reductions

(1)

each
are

con¬

trolling situa¬
tions,

in

and

each

case

a

good argument
be

Beardsiey

made

able rate.
As for

(3)

Investments that could
be organized as self-fi¬
nancing "authorities"—

(4)

Result

Ruml

for continuing an excise at a suit¬

the

going

of

on

4

Furthermore,
as
I
shall show in this testimony, the
repeal of these taxes does not re¬
quire the adoption of a Federal
tax, nor does it require the

Overstated

Is

I shall discuss each of these four

items

in

detail, but briefly.

First.

have

I

for efficiency

included

item

and economy to in¬

increase of any existing taxes, nor
the continuance of present rates

dicate

which

consistent with the national inter¬

have

reduction

been

in

the

scheduled

various

for

Acts

in

which they were increased.
In fiscal

collected

1953, the gross amount

from the taxes to which

that

est.

I

low

as

(a)

have

one

sented

before

February,
the

selective

at

not

gross.

let

us

25%

the

50%

of

which

too

think

I

few

will

high, and which I am
will think too low.

shrinkage of 25% from

a

the

gross,

net

receipts

selective

excises

in

1953

fiscal

from

here

in

the

considered

round

numbers

$3,400,000,000.

Speakers
eral

representing the sev¬
subject to excise

industries

taxation

have

the

the unfairness
absurdities of the selec¬

and

shown

abundantly

n-wisdom,

u

the

tive

excises.

how

they

They

bear

have

down

by

shown

with

dis¬

figure

(b)

and

measures,

figure

a

so

as

reasons:

be

can

sensible

little

can

be

economy

that if any¬

should feel that my estimates
under the other three headings are

a

little too high, then a little more

be assigned to "efficiency and
economy."
can

Second.

Capital

erly included
items

of

are

as

assets.

The

these

of which

there

improp¬
These

producing
conspicuous of

revenue

most

the

FNMA

mortgages,

Federal government

holds

now

expense.

kinds: /(a) those
that result in the

the

are

items

two

by only disbursements
receipts,, acquisition of

net

many

Taking

was

figured

gross

estimate the

figure

sure

returp of

was

than

more

in

But to be conservative,

reduce

to

think

Committee

excises

much

the

a

this

1950, the net

there

dispute that such

certainly less, how much less
is a matter of opinion. In testi¬
mony supported by statistics pre¬
was

the

placed

that

so

attained

was

favor-efficiency and

$2 billion for two

$4,600,000,000. The net
amount flowing into the Treasury

I refer

I

to the maximum extent

economy

$2,250,000,000.

And

class

of

assets
to

be

purchases

are

re-sold

ap¬

ments for

the

stockpiling of stra¬

tegic materials
sure,

the1•

of this class. To

are

expense

of

storage,

acquisition

Lending and
spending for the holding of agri¬

adopted, that they

cultural surpluses should be simil¬

for

wartime
and

measures

sion
has
true

of

dustries

can

or

consump¬

their

caused

since
of

is

true

of

there

is

need

adoption
What

passed.

each

whole, and
I

of

primarily revenue
such, that the occa¬

as

that

long

control

not

the

affected
them

is
in¬

as

a

nothing that

to add

to

the

over¬

whelming indictment of discrimi¬
natory, selective excise taxes. Ex¬
cept for the special consideration
of alcoholic
beverages, tobacco and

gasoline,

they

should

out of the Federal

be

thrown

system of tax¬

ation, promptly and completely.
No

thrown
*A

selective
out

excises

and

no

can

new

rent expense

so

forth

are

cur¬

items; but the cost of

is

not.

taxes

year

to year, but

would

think

capital
cluded

that

items
as

I feel that few
an

are

expense

estimate for

improperly in¬
a figure of $2

billion is excessive.
I

am

well

aware

that the treat¬

just specified.
Third. Investments that could be
organized as self-financing "Au¬

made

"Authorities," but it has been
meaningful and respectable

by the conspicuous

success

of self-

cities, for example New

York




of

in

the

na-

C.,

and

Pittsburgh.

in

m a n

(Detail

y

is

will

arguments

But

though
just as

even

be

them

on

will be far less.

Finally,

there

standable

the

of

is

the

hesitation

under¬
the

on

Government

to

part

solve

our

for

the

to

to

years

want to

balance

fact that these

come.

figure

billion
Pillion

higher than

even

the

budget

and

for

the

various

come

from

the

money

from the

same

sources

from

The difference would be that

ic.

«balanced„

columns

We

technical, variations

the

in

fiscal

addi

will

shifting

sands

nothfng.

t

see

same,

We

preSent
cash

capital

tax

need

signify
budget re-

a

that

wiI1

system

of

with

repiace
financial
consoli-

a

budget, and that will

items

items

that

(rom

financed

by

clearly

are

a„

the
as

items

expense

taxation.

Then

shan know what the
"budget"
is and what "balance"
means, and

we

powerful

instrument

of

policy requires explicit

co-

aspiration for a "balanced
budget"
will
be
supported
by
clarity and purpose,
our

ordination of the financial operations of Federal Authorities, and

The

I

believe

instrument

that

under

such

an

the

of

policy it would be
possible to jadhere rigidly to the
rule

"set

taxes

to

balance

in

the

the

perhaps fortu¬
nately, the Administration will be

that would

then

considered

expense.

would

The

result

reduce

of

cash

by

$4

going

on

budget

billion

the

apparent Federal requirements for
tax
revenue.
This
change
has
been

0f

appropriations.
to

seems
.

consolidated

a

reform

that

if

program

is

eased, and Congress will become irresponsible in the
making

current

as

ouaget

is

be

exist

the

tax

twelve

still

not put

ernment

ture

criticism

burden

is

Even

reduced

Committee for Economic De-

velopment,

the

Council

of

Eco-

Sub-Committee

if

dollars, taxes will
dangerously heavy, arid

sound

of

measure

reduction

will

still

quired to get the burden

be

re-

of taxes

wants his

barrassed

son

to

drive

the

support of persons in both
parties. It is unfortunate that the

son

that

The

son

change

doped

made

with

the

to

because!

it

be

be

em¬

lacked

the

rassed.

Since

embarrassment

is

in

the

of

cause

than in the

wisdom

rather

of tradition.

cause

purposely have not introduced
charts

of

particular

any

classified

as

into

this

will

to whether

as

asset

should

capital item

a

testi¬

there

course

be

set

or

authority. The logic of
budget reform is more important
than detail.
My studies of the
budget convince me that your ex¬
as

an

the

present

that

this

on

system

of

logic,

financial

record

keeping overstates tax re¬
quirements by twelve billion dol¬
lars

annually

In

—

perhaps

more,

any

program

perhaps

a

little

little less.

a

case, this budget reform
will make it possible to

eliminate

the

unfair

and

foolish

discriminatory excise taxes

and to

eliminate them promptly, without

imposing

taxes

new

to take their

place.

With budget reform it is
apparent that other taxes can also

be

reduced; and all this within the
framework of a balanced Federal

budget, and

a sound Federal fiscal

policy.

Edwin A. Seasongood
Edwin

Au

Seasongood

at the age of

away

songood
New

was

York

tween

founder

1929

and

Seasongood

formed in 1910.

Sea¬

of

the

Exchange

and

of

passed

Mr.

Governor

a

Stock

1922

78.

&

be¬
was

Haas

He retired in 1948.

Now Alvis & Co.
JACKSON,
Miss. — The
firm,
name of
Kingsbury & Alvis, La¬
mar
Life
Building,
has
been
changed to Alvis and Company.

J. A. Hogle Adds to Staff
(Special to The

LOS

speeding
will

up

soon

is

dangerous,

learn

speedometer

Financial

ANGELES,

Chronicle)

Calif. —John

W. Donnan has become
with J. A.

Sixth

affiliated

Hogle & Co., 507 West

Street.

auto-

the

not

it-will

sure

probably unavoidable in either
case, it might be better suffered

With William R. Staats

mobile only 45 miles an hour, and
dopes up the speedometer so that

it reads 65 miles when it is only
going 45. This father would spend
his time better is persuading the

was

because

courage to do the right thing lest
in doing so it would be embar¬

expendi-

Monetary
Policy,
headed
by
Senator Douglas. The change has
on

Fiscal

only

embarrassed, it is

by

for years by down. Furthermore, Congress will
organizations, and gov- not be deceived forever by faulty
agencies, among them, accounting. It is like a father who

nomic Advisors, and the 1949 Sen-

through the budget reform

program

billion

be

every

This

superficial.

me

recommended

students,

or

embarrassed either way. If it does

by twelve billion dollars, the pressure for cutting expenditures will

financing of capital items

longer

no

criticism

adopted, showing that tax requirements
are
presently overstated

budget at high levels of employment," just because of the great

flexibility

first

*

budget be made.

Unfortunately,

on

will

that should be treated
and

reform

constructed

and

keeping

separate

policy.

fiscal policy ques¬
these reforms

that

perts will find

reform

the

be

program

dated

sources

our

requires

our

up

to

the

are

bud

a

otherwise

reeord

from which the funds are derived
could be a powerful instrument of

This

b

figures

totals

program

our

tal investments. And to be slightly

fiscal

t

e

of

the

need

form

borrowings would be associin general and in many cases
specifically, with recognized capi-

in

be much discussion

the

ated

solution of

tions

nan£iai J^c?£dfkeeping. 1Certainly

gram

commercial

of cynical
Administration
is attempting to balance the bud¬

the

And

A budget reform program is
indispensable to a tax reform pro-

banks,
savings institutions and'the pubrowings

have

amount

that

and

gram.

it

inevitable

an

I

Budget Reform Program Needed

bor-

tradition

mony.

of ^

as

of

tables

whether

will

inertia

^ertiamwants to ba}-

up

The

from today, that is, as

comes

and

,

budget

needs

Authorities?

that

is

the

the

a ce a * aditional system of fi-

be

investment

the

answer

"balance"

for the capital items

pay

be .excluded

to

budget
make

»

word

na
? 1S a b°dge podge
of caPltal and current items can

suggested
suggested.

to

reasons,

fnc^d bud£et> makes it imperative
the

The question will occur to many
—where
will
the
money
come
from

good

are

and the fact that the public earnestly wants the security of a bal-

the $4

only

will

to be overcome, but there will be

get by definition.
On the other
hand, the first step toward a firm

spending beyond

There

costs.

istration to recommend these long
overdue changes in the statement
of the Federal budget. Not

budget is an objective of AdminOration policy. There are two
reas0*s that support convincingly
a balanced budget policy. First

discipline that will keep us from

rate structure

a

is

it

JFJ order to protect the value of
the d(?ilar' and second> to. "lak®
sure 1toat we have, a firm test of

on

a
conscientious study of the opportunities for reclassification of
expense would result in time in

and

categories of assets which I have

keeping.

that

confess

comment

Yl/e

be

that

our means,
is no logic in forcing this year's
These are understandable and
taxpayer to pay for benefits to good reasons for wanting to
go
without cost to future tax- achieve a balance budget. And the

ate

states and

D.

should

consumed.

are

necessitate

course

limit it strictly to the two obvious

Ways and Means Committee of the
House
of

Washington,

assets

they

as

financing of Authorities
self-financing basis will

a

ing of capital items separately is
subject to abuse, and I would

Aug. 12, 1953.

Representatives,

these

for

The

the

Authorities

by Mr. Ruml before the

dispute the busithat revenue

principle

from

Fourth.

financing

statement

ized

to

The total under this second gen¬
eral heading varies greatly from

term
be

would

producing assets should be capitalized, and that the benefits real-

arly considered.

thorities." Some may not like the

Substitute Taxes Required

The

Few

in¬

under

propriate circumstances. Disburse¬

communities. They have reminded
you
of
why these taxes were

tion

their

present system

our

record

sound, the urgency to act

are

deterioration and

measures

must

as

tended

be

I

under

are

financial

tional interest to balance the
budget. The goal of a balanced

other similar holdings) it would be well at the same time
What are the obstacles to this
RFC, small business and to bring about informed collabobudget reform program?
I have
rural electrification loans.
(Detail ration among the fiscal monetary been able to think of
only three,
is
presented in Appendix II to and lending agencies of the Fedalthough there may be more,
this testimony.)
(b) A different eral government.
such

criminatory inequity on consum¬
ers,
employees, businesses and

were

proposition

on

basis; why shouldn't it

buy plutonium?

a

an

oil

buys

^ official cash consolidated

,

The people generally accept the

organize to atbut having ant
kzfi+ctro
fivof
alyzed the budget, I brieve that

Need For Revenue

Why

the

The

a
year, or two to
tain this figure,
Li.
^
4i,„

re¬

pealed completely and at the first

Authorities.

My estimate for authorities is
$4 billion annually. It would take

$12

opportunity.

in

included

be

of

Department

contract

payers

4

a

discrimi¬

natory excisgs^they should be

2

consolidated cash budget

'

the rest of

budget.

could

class

appropriate

Capital
items, improp¬
erly included as expense

(2)

energy

'n

paid

taxed, but be¬

atomic

plants for the production of plu-

ness-like

is composed of four princi¬

year

in

investment

tonium

receipts of only

pal parts as follows:

correctly

Real estate purchases, con-

Defense

ex¬

of

by changing the rules. It will re¬
quire real courage in the Admin¬

a

refer produced

we

The overstatement of $12 billion

I believe

they

And

1953 net

they

'strative convenience it is only
a .sting of numbers with no overall financial meaning. It is misfd'ng as a guide to appraising
the ™pac' °f the Federal Governm<pt's intake and outgo on the

are just
reform as

budget

system of financial record keepth® miscalied'budget unders^tes hy at least $4 billion the net
receipts winch are clearly shown

latter

twelve

($12,000,000,000)

ever historical interest or admin

with

charges for interests and amorti-

and

the

sound

economic significance. The present

struction of government buildings,

over¬

taxation, their arguments
as

Prlvate economy and on the
soundness of money. It has no

op-

false base of tax requirements. As
for those who want new forms of

financial

annual

and

zation.

$3^00,000,000.

gories, not be¬
cause

is

of

costs

cover

accrued

Federal financial problem merely

eration

and

this:

by

budget

which

exclude
three

clear
is

revenue

beverages,
and,

is

reason

for

to

necessary

their

take

to

reason

The

definite.

with the
alcoholic

taxes,

be

need

tobacco

sales

that

those

by contract from the appropriate department of the Federal or

My remarks

can

other,

the

and

might receive currently by lease

of these levies and their discriminatory inequity on
employees, businesses and communities. Denies
new taxes will be required to replace wartime excises, as need
for Federal tax revenue is over-stated. Says "we need a budget
reform program."

case

from

income

their

derive

hodge

a

and

"

of one kind or another
from the public using the facili-

Stressing "the un-wisdom, unfairness and the absurdities of
excises," Mr. Ruml points to the heavy collection

current

"ems. of exclusions and inclu¬

charges

selected

of

may

that

Corporation
of New York

Formerly, Chairman, Federal Reserve Bank

the

podge

general classes of Author!be distinguished, those

Two

des

By BEARDSLEY RUML*

President, Jewelers Acceptance

nancial record keeping,

III to this

provided in Appendix
testimony)

Thursday, August 20,1953

...

that

the

can

be

(Special to The Financial Chronicle)

JLiOS

ANGELES,

Calif. —Wil-

ford B. Turner has been added to
the

staff

Co.,

members
Los

William

of

640

South
of

Angeles

the

R.

Staats

Spring
New

Stock

Street^

York

arid

Exchanges.

beginning of the new fiscal year safely ignored,
which has just started; but I see
Another type of reservation
no
insuperable difficulties about comes from those who find the

With Standard Inv. Co.

making the change-over
time, say Jan. 1, 1954.

PASADENA, Calif.—Francis L.

As

is

well

so-called

ing

more

at

any

known, the present
budget is noth-

Federal

than

a

system

of

fi-

present

accounting

venient

to

taxes

high,

forms

of

keep

their
or

to

taxation.

taxes

high

system

desires

keep

impose

new

desire

springs

(Special

con-

to

The

i

from

to
a

L.

Niles

Standard

to

is

The

Financial

now

Chronicle)

connected

Investment

Co.

with

of Cali¬

fornia, 87 South Lake Avenue.

Number 5248

Volume 178

The Commercial and Financial Chronicle

.

.

.

(635)

Forest W.

Shipley With
Morgan & Go., L. A.

LOS
W.

Calif.—Forest

ANGELES,

Shipley has become associated

with

Spring

Co.,

&

Morgan

-334' South

of the
Los Angeles

members

Street,

Heads

be

may

George "Jr. Republic" Fund Campaign

come

Carl L

Wood, Executive Vice-President of Thomas J. Lipton,
Inc., accepts general chairmanship of 1953 campaign for funds
totaling $411,732.
Wood, Executive Vice-

President

Thomas

and

Director

a

J.

Lipton,

the

general

of

Chairman

eral

for this

of

the

fund

in

from

all

The

from

age

citizens,

13

to

the

over

19,

United

States but mostly from the Greater
New York metropolitan area..
,

The
58

CarlT I.

increased.

ranging

drive

schools

unique youth community.

"Junior

young

Republic" has

served

years

all

as

over

world.

Stock

E

x-

cepted

3
|

Co.

charge
the trading

of

d

in

e

part ment

and

prior

vestment

bankers

of

New

York

small

City. Mr. Wood is serving for the

is

second

tion

consecutive

year

as

gen¬

homes,

bank

and

store.

for

their work

of

125

boys

and

girls

They
in

every

paid

are

of

area

other

A. M. Kidder & Co.
(Special

FT.

E.

The

to

Financial

Chronicle)

LAUDERDALE, Fla.—Earl

Bond

has

become

with A. M. Kidder &

associated

Co., 207 East

Las Olas Boulevard. Mr. Bond

was

formerly with Schirmer, Atherton.
&

Co.

and

Goodwin

Walston,

in

business

in

Hoffman

&

Hartford, and in the

for past conducted his

com¬

munity life—including effort and

soon

their

or

Earl E. Bond With

citizens write and enforce

community.

It

hoped that the present popula¬

for

school

they must pay in
own
room, board,

clothing and snack bar purchases
out of their
earnings.

The

Inc., has ac¬
The George "Junior
Republic," their own constitution and laws;
Chairmanship founded in 1895 near
Ithaca, N. Y.,- enact legislation at monthly Town
change, as
of the 1953 campaign for main¬
first established the principle of Meetings and enforce thei laws at
Manager of
tenance
funds
totalling $411,732 giving- teen-aged
the Trading
boys and girls weekly court sessions. In realistic
for the George "Junior Republic,"
the
Department.
responsibility
of
complete preparation for later life, all citi¬
it was announced by Donald
S. self-government.
Mr.
The
600-acre zens must apply for jobs and earn
Shipley
Stralem, Chairman of the organi¬ community
was
formerly
resembles
a
small wages in specially coined Repub¬
with Edger- zation's Board of Directors, and New England village, with its own lic currency with which all trans¬
ton, Wykoff & a partner in Hallgarten & Co., in¬
chapel, school, farm, newspaper,- actions are conducted within the

1

in

for

model

a

the

achievement

training areas;
turn

15

own

Hartford

investment
for

many

years.

thereto served
in
Forest

W.

similar

a

capacity with

Shipley

Marache
&

Co.

the

In

officer of

past

he

Sims
an

was

Quincy Cass Associates.

Rockford Dealers to
Hold Annual
ROCKFORD,
ford
be

Securities

host
the

of

State

Rock-

Dealers will

the

to

Outing

111. —The

of

again

Securities

Dealers

Illinois

the

at

an¬

nual

Fling-Ding which will be
event
of Thursday, Sept:
17,

an

at
i

the beautiful Forest Hills Country
Club in Rockford. This event usu¬

ally attracts
who

ers

large

a

to

seem

group of deal¬

have

the time of

their lives. The Forest Hills Coun¬

try Club has recently had

ing

which

build¬

a

their
facilities among the most modern
in the Middle West.
program

Sam

makes

Young, Chief Clerk in the

Securities

Division

in

the

Secre¬

tary of State's office, has accepted
invitation to

an

be

at the

present

Fling-Ding and will give the deal¬
ers

exposition of the

an

Illi¬

new

nois Securities Law and

an

oppor¬

tunity for the dealers to ask him
questions on its various aspects.
The outing will begin at 12 noon,'
Golf, swimming and other enter¬

tainment

will

features

be

Tariff $12 per

day.

ervations
Robert

should

G.

of

be

the

Res¬

person.

with

made

Lewis, Trust Building,

Rockford.

Lloyd B. Hatcher to Be
White, Weld Partner
On
will

1,' Lloyd

Sept.
be

admitted

B.

to

Hatcher

Mantanuska Glacier, capped

with

snow even in

partnership

the brief Alaskan

summer,

forms the background for part of the

new

telephone line

in

White, Weld & Co., 40 Wall
Street, New York City, members
of the New York Stock

Mr.

Hatcher

Trust

is

an

Exchange.

officer

of

the

Company
of

manager

of Georgia,
the investment

and

New

de¬

partment.

WpP''*

Telephone line is latest link in vital defense

'§M&
(Special

The

to

QUINCY,
has

been

Hess
nois
Earls
&

Financial

to

network. Built through

Chronicle)

111.—Wayne L.

added

VOICEWAY

m

With Hess In v. Co.

the

Earls

staff

for Alaska

of

Investment

Company, Illi¬
State
Bank
Building.
Mr.
was
formerly with Slayton

Co.

For three

pushed
Professional Service Plan
(Special

to

The

Financial

formed

with

offices

at

650

Grand Avenue to engage in

curities
Dr.

business.

Maurice

Daniel Wells,

Officers

South
a

Secretary-Treasurer,

and Howard Neal, Vice-President.

Main St. Securities Dealer
(Special

to

The

Financial

telephone line

now spans

the 337-mile route from

Anchorage

se¬
are:

Smith, President; H.

Chronicle)

PEORIA, 111.—Donald J.

A"

Risser

to

new

Tok

the U. S.

the line

System co-operated with

Army in designing, build¬

forests, always in

a race

dynamited before the poles could

the way

in-sub-zero cold. Tons of

The weather, terrain and

problems ruled out the

use

f

But

Alaskan

wasn't suitable for telephone

Meeting the telephone needs of
one

other

of all

types of facilities except pole

.

by rail and truck to

job. Frozen ground had to be

be set.

big trucks cleared

construction.

,

the

Bulldozers and

ing and equipping this-newest link

long distance network

12,500 poles had to be shipped

so

in and hauled

against time and winter weather.

in America's

for national defense.

was

rugged mountains

telephone equipment followed.

Junction, Alaska.

The Bell

summers

across

and dense

Chronicle)

LOS ANGELES, Calif.—Profes¬
sional
Service
Plan
has
been

wild, rugged country.

line

timber

poles,

of America's

another

example of the

First

work

Mr. Risser
ed

with

Bank Building to
the securities business.
was

formerly connect¬

Waddell

&

Reed, Inc.




BELL

the

of

Bell

System people are

helping to speed the nation's de¬
fense program.

National

in

way

is

unique skills, experience and team¬

has formed the Main Street Secu¬
rities Dealer with offices in the

engage

last frontiers

TELEPHONE

SYSTEM

•

The Commercial and Financial Chronicle

..

.

Thursday, August 20, 1953

(636)

16

of

Gold Coin

By PAUL

EINZIG

Italy and

denying this

Court

longer circulate in their countries
of origin a currency or a mer-

restore

h

Writing in the "Monthly Busi¬
And it is difficult to get ness Review," issued by the Na¬
away from the fact that sover¬ tional Association of Credit Men,
eigns have long ceased
to be Henry H. Heimann, Executive
Presi¬
"money current with the mer¬ Vice

not

relieve

participants. In any case, in order
to make the ban on unauthorized

e?

eigns

than

one

will

to

These

pro-

on

this

in

circles

decisions caused

legal

considerable

It

in

concern

London.

production of sovereigns water¬
tight, it would be necessary to
obtain the approval of practically
all countries. Otherwise it would

possible to mint
of the dissent¬

remain

always

sovereigns in

that

ing countries.

idea

The

appeal to the majority of other

official

one

now

by the Royal Mint, the
Bank of England or the Treasury.
cepted

sovereigns

syndicate

We

safely

may

have

Italy. The coins they produce
of full weight and fineness.

assume

the

heard

not

that

this

of

last

we

matter.

of this it is profitable to

In spite

is

anybody

counterfeiting

are

by governmen¬

have long ceased to play
the part of money in Great Britain,
and that, since the unauthorized
specimens are of full weight and
fineness, there is no ground for
criminal prosecution.

equipment

the

There remains the possibility of
legally entitled,
has arisen in at any rate in Switzerland and in taking action on the ground that
unauthorized
connection Italy, to mint sovereigns and put the
production
of
with the them in
circulation, is not ac¬ sovereigns is an offense under the

in

and

Court, it took the line that sover¬

question.

a

circumvented

are

rea¬

s

long the

by

,

.expect

d i

very

,of

n

re¬

during the second half-year there
were
straws
in
the
wind
that

nounceajudg¬

Einzig

that

prognos¬

time

any

natural factors

respect, too, there is the risk that
the British point of view might

country

Dr. Paul

ganiza tio
warns

at

when the

gold serving for the minting
of sovereigns. Like the Swiss Law

them

to

and

Law Courts of

ment

the

redefine

to

a

business
so

more

indication

before

have

Convention

new

for

much to be said

is

There

difficult to

It is

levels.
ticate

or-

during

active

the

that

more

-

dent of the

the last
though, as
previously suggested, it may not
be
maintained
at
existing high
generally

six months of the year

cent

is

to

son

any that has been put for¬
during the last four thousand

meaning of currency, but in this

a n

There

individuals

arrested

the

Henry H. Heimann, Executive Vice-President of National Asso¬
Men, holds current monetary policies defer,
but do not solve readjustment problem that eventually will come.

years.

release
and to

to

Readjustment Deferred, Not Checked!

ciation of Credit

current with
good a defini¬

chants."

decided

Economic

as

ward

define what is

which

LONDON, Eng.—Are sovereigns
and
other
gold coins which no

c

tion

take to resist unauthorized issue of sover¬

Suggests international convention to
meant by currency.

eigns.

the merchants" is as

of British sovereigns
the legal decisions both in Italy and Switzerland
is counterfeiting. Outlines four courses British

authorities could

shekels money

dred

relates history of the coining

Dr. Einzig
in

16) according to which
Abraham paid for the purchase of
the cave of Machpelah "four hun¬

Merchandise

as

Genesis

in

contained

money

(XXIII,

Four

produce them, for coins are at a
premium of between 25 and 35%
over the value of their gold con¬
tents. This is because coins are
much more suitable for hoarding

are

courses

for the

open

British authorities if they want to

the

resist

issue

unauthorized

of

sovereigns. They could themselves
large scale
and reduce the premium to a level
at which it ceases to be profit¬
issue

than gold bars, and be¬
the official Mints have

purposes

sovereigns

on

a

Merchandise

Practi¬

Acts.

Marks

cally all countries have outlawed
the false
application of trade
marks

the

or

of

sale

trade

Law

Courts

goods with

If the foreign

marks.

false

accept the view that

sovereigns, not being a currency,
are a merchandise, they could not

reasonably

refuse

against

their

duction.

And

to admit that

action

take

to

unauthorized

pro¬

if the judges refuse

sovereigns

are a cur¬

tal

of

moves

monetary
authorities to

tight

the

market defers,
will

but

a

and the

porarily deferred the heavier re¬
adjustment.
As stated earlier,

eventually
"The

action

the

mone¬

certainly

has

interest

stabilized

H. Heimann

Henry

authorities

tary

the

for

rates

being and eased the stringent
structure
of the nation,"

time

credit

"To

Mr. Heimann states.

maintenance

tivity.

to

a

of high business ac¬

will

people

Many

say,

policy must
good policy. But they do not

therefore, that such
be

degree

contributed

and

markets

a

bolstered the financial

it has also

a

a

reckon with settlement day.

Such

policies merely prolong the day
of meeting the issue.
They defer
than

rather

present economic and po¬
may have tem¬

litical conditions,

will

come."

of

decline

present, which was inescapable in
view of the government's needs

re-

d j u stment

"'that

there was no

serious

a

The

not

a

of

pointed to a business slowdown.
monetary policy pursued at

money

prevent

While

policies.

solve

readjust¬

any

however, it has not prevented it.
Economic trends, like human be¬

resting periods
producing in
quantities and expand¬
ing so rapidly in all directions
that a readjustment is inevitable.
No one can predict exactly when
it will come, and we have had a
planned economy so long that no
their

have

ings,
and

been

have

we

such large

tell in advance what the

can

one

of

architects

it.

to cushion

or

planned economy

a

do to either defer the trend

may

extension

"The

Tax

Profits

ministration

Excess

the

of

enabled the

has

Ad¬

refute the opposi¬

to

tion charge that business was be¬
rency they could not escape the ment problem that will eventually
able
for
unauthorized mints to
A credit inflationary pol¬
conclusion that sovereigns are a come.
ing favored over the individual in
to produce coin them. Or they could try to
merchandise the value of which is icy may be justified under exist¬ tax relief," Mr. Heimann points
them. There is a strong demand appeal to higher Courts in Swit¬
guaranteed by their "merchandise ing conditions if held strictly to a out.
"That, and not its revenue
for gold coins in the East, and zerland
and
Italy against
the
mark." It would not be surprising short-range practice. It is totally
producing character, was the pri¬
also
in
countries nearer home. judgments. Or they could try to
if the British authorities decided unjustified if continued for any
mary reason for its extension.
It
Some
enterprising Italians have arrange another International
to
resort to this line of action great length of time. Certainly it is a type of tax that can be justi¬
taken advantage of this and have Convention
on
Counterfeiting,
rather
than
allow
unauthorized would appear that, committed as fied neither for the revenue it
been
producing sovereigns and with the object of revising the
the Administration is to a sound
produces nor on any basis of sound
other gold coins on a large scale. definition of the meaning of "cur¬ persons to coin sovereigns with
dollar, they have no intention to economics.
impunity.
Had
individual
tax
Last year the British authorities rency" so that it should be quite
further depreciate the purchasing rates expired on June 30 the ex¬
intervened.
They requested the clearly unlawful to coin sover¬
value
of the dollar by perma¬ cess profits tax levy would have
Italian Government to initiate eigns. Finally they could initiate
nently resuming inflationary mon¬ been out. It is, therefore, a price
criminal proceedings against the legal proceedings under the Mer¬
etary practices.
to be paid for poor synchroniza¬
unauthorized manufacturers of chandise Marks Acts of the coun¬
"Business, no doubt, will remain tion of tax law expiration dates."
sovereigns, on the basis of the tries concerned.
cause

practically

ceased

Gersten & Frenkel

Offer Scilliloe Stock

Convention

International

The solution

of

competing wi£h
producers of
Counterfeiting. The Italian Gov¬ the unauthorized
ernment
complied with the re¬ sovereigns is not expected to be
quest. Warrants of arrest were is¬ adopted. It would mean that a
sued

on

against the individuals con¬

cerned,

large part of the British gold re¬

their equipment and
(some 20 kilos of

and

would

serve

disappear

in

hoards

"raw material"

in various parts of the world. The

gold bars)

International

seized. Two of the

was

succeeded

accused

Government

the Swiss authorities for their

refused, however, to order the ex¬
the

of

two

individuals,

the

eigns

ground

are

no

that,

longer

since

a

Scillitoe, Inc. at $1

Of the net

first-rate

country.

Britain has

In

gold to

no

any

spare

facturing
the

would

against

the

facilities;

equipment;

and

remainder

added

to

risky to appeal
two judgments, be¬

sover¬

250 Million Movie Tickets!
last

year,

an

than 250

increase of 20

9,

Its activities

1951.

into

two

chief

are

Aug.
divided
First,

mittee of the National Association

categories.

its

of

mechanical

conditioning
industry is in

sion

vilian
The

and

Department has prepared a
report on the leading Canadian motion pic¬
ture exhibitor, discussing new developments
in this important industry.
of this

report

is available

upon request

governmental

laboratory's

contribution

is

an

its

recent

"Tube-Life-

electronic analyzer

patents have

been

ap¬

plied.

1

&

Co.

Members: The Toronto Stock

Exchange
and The Investment Dealers' Association of Canada
330

BAY

STREET, TORONTO, CANADA




or

data.

years

—

that it deserves.
need

The New York Stock

Commit¬

tee

in

York

City, Mr.

ing
Ned

give

Cole

Barbara

Parsons

Exchange

partnership

Stanley & Co.
William

P.

on

in

will

retire

Jacquin,

Aug. 31.

Banning will with¬

draw from partnership

the

three-quar¬

us

the

FHA

adequate

in Shear-

Hammill & Co. Aug. 31.

field

of

to

present conditions

and

VA

do

not

information and

have
assur¬

give the air conditioning

the

go

order

this—if

What

by.

to

we

reach

The FHA

the
can

give them the

support,

installations,

in

that

financing

the pooling

to all elements of the

their
the good of the
consumer, to get together."
own

good

Home

of

and

Hughes, Vice-Presi¬

National

Association

Builders, and

builder

from

stressed

that

housing

P

a m

present

agency

building

of reasearch

is

data

by~ manufacturers, so that a

of

prominent

p a,

Texas,

government

practice

which
costs.

sharply
He

achieving this design adjustments

goal

a

on

the

local level does not permit design

it deserves changes

and needs.

"The first step in

up

air conditioning industry, for

Richard G.

"We must have this solid front

ance

J.

reach

under

in

to

streamlined financ¬

home market.

"It' is

industry must consolidate it¬
and
"present a solid front"
if it is to score this ten-fold ad¬

the

because

a

tools.

Cole said that

and

is

plan

mass

New

The FHA and VA

standard

a

need

dent

changes:

son,

we

ter-billion-dollar figure.

Weekly Firm Changes

from

why the FHA and VA
give the air
conditioning field the full support

two-

the

to

in Washington cannot

a

dustry.
a

able

"That is

right

$75,000,000 in¬
At

are

heat losses and other pertinent

on

three

it's

builders

and

gain. But in the air condi¬
tioning industry each manufac¬
turer has his own set of figures

four

now

design

overall

for

heat

next

vance

New York Stock Exch.

tractors

attained in the

whereas

base

requirements can be worked out.
"In the heating industry con¬
systems based on standard
measurements
of
heat loss
and

making
may
be

and

standard

install

self

has announced the following firm

Ross, Knowles

the

$750,000,000

a

air

day meeting of

uses.

most

Builders,

residential

electro-mechanical devices for ci¬

for which

Our Research

Home

laboratory does research en¬
gineering in electronic, electro¬

Predictor,"

million since 1940.

A copy

government housing restrictions.

According to Ned Cole, Chair¬
man of the Air Conditioning Com¬

on

the manufacture of electronic and

times

Says FHA and VA do not give air

conditioning support it deserves and needs. Richard B. Hughes
criticizes

corporated in New York

the company's operations involves

million

the next few years.

in

and

working

equipment and preci¬
instruments, not only for the
company, but for the government
of
silver
Maria Theresa
dollars legal tender until their monetary and
large industrial firms as well.
which served as a trade coin in use is discontinued by the issue of
The company has now entered,
Africa.
a Royal Warrant is not
likely to be and is increasing its research ac¬
Quite recently this decision was accepted by foreign judges. They
tivities, in the newest field of all,
confirmed
by the Italian Law may feel that the first definition microwaves. The second
phase of

more

Cole, Chairman of Air Conditioning Committee of the
ten-fold growth

National Association of Home Builders, sees a

The Scillitoe corporation was in¬

be

currency

Canadians went to the movies

Ned

for

$102,000

capital.

for the purpose.

It

Industry Predicted Within Four Years

proceeds, $75,000 will

machinery

a

$750 Million Residential Air Conditioning

per

share.

Fund

cause
the result
of
the
appeal
in would depend on the view the
Great Britain their production by higher Courts would take about
unauthorized persons
could not the definition of "currency." The
be regarded as counterfeiting, any official British view that under
more
than could the production British law sovereigns remain
on

Edgar L.

being in keeping with the dignity
case,

The Federal Tribunal of Geneva

Frenkel, investment

be used to acquire plant for manu¬

of

ex¬

tradition.

tradition

Monetary

&

brokers, of New York City, are
offering publicly 298,000 shares of
common
stock (par one cent)' of

raise objections, and the
practice would be regarded as not

would

escaping to

whereupon the
approached

Switzerland,
Italian

in

Gersten

are

efficient

installation

tion

air

of

said

reduce
these

needed for

and

conditioning

opera¬

units,

Volume 178

Number 5248

particularly

for

small

The Commercial and Financial Chronicle

...

in

houses

World Bank Reports

the lower price brackets.
Mr.
Hughes
praised

ing

the ad¬
by the air condition¬

made

vances

industry

the

in

equipment

for

market

urged that the trend

and

$18,485,411 compared with $15,872,883 for

residential

the

be continued.
At

the

Reveals

ago.

no

time, Cole and
loan applica-

construction

and

same

ing

Development,

The Bank's total

the

placed at

period

ing
tive

year

reserves

were

the
disbursements

the

to

June

30

$1,103,261,115.

All repayments of

during

year

explained,

on

August 11, reported net income

in

Washington.

losses

In order to reach desired stand-

ards

in

test

the field,

Cole suggested,

villages could be constructed

and

on

raised

loans

the

and

guarantees,

Reserve

to

$76,-

issue

ranged in June another issue of
Sw. fr. 50,000,000 to be dated July

principal due

were

1, 1953. Total issues of the Bank
received, outstanding on June 30 amounted

end of the fiscal year were

and some borrowers made payments in advance. Of the total of
conditioning is of $18,485,411 for the fiscal year
$2,328,028 received, $245,000 was
involved
are
being handled by ended June 30, 1953, compared commissions, was $42,839,207, com- prepaid by the Banco Nacional of
FHA field offices because of the with $15,872,883 for the preceding
pared with $35,188,744 in the pre- Nicaragua and $302,000 by Denneed for knowledge of local con- fiscal
year.
ceding fiscal year. Expenses mark. Borrowers also repaid $17,ditions, whereas ordinarily buildThjs income was placed in the totaled
$24,353,796, including 837,948 on loans sold by the Bank
ing loan applications are handled Supplemental Reserve against $5,724,270 of administrative ex- to investors. This sum included
Hughes

tions in which air

an

$226,756,982, 000,000

with

amounted to

at the

and

17

amounting to 50,Swiss
francs
(approxi$184,777,004 dur- mately $11.6 million) was sold in
preceding year. Cumula- Switzerland. The Bank also aryear

compared

delinquencies in loan repayments.

The International Bank for Re-

present

$1,590,766,464. Disbursements dur-

Profit Gain

For fiscal year ended June 30, 1953, net income is

of

design

(637)

$113,749,988.
Gross income,-exclusive of loan

to

$556,374,002.
During the

year, the Bank sold
$13,637,966 of securities from its
loan portfolio, including $5,333,821
without the Bank's guarantee. The
cumulative total of portfolio sales

June 30 was $70,014,654, of
which $20,211,508 had been sold
penses and $18,629,526 of bond $6,000,000 of prepayments by ship- without guarantee.
•
•
interest and other financial ex- PinS companies in the Netherlands
Germany, Japan and Jordan ber

Loan
commissions penses.
am0unted to $9,551,822 and were
The Bank made ten loans total513^511.

and $500,000 by Belgium.
Bonds of the Bank sold

at

came

to in-

members of the Bank during

the year. On June 30, 54 countries

op^ativ^undertaWng^/^i^con-

credited to the Bank's Special ing the equivalent of $178,633,464 vestors during the year amounted were members of the Bank, and

ditioning manufacturers and the
building industry. Data from these

Reserve, increasing that Reserve

during the year, bringing total to $71,600,000. An issue of $60,000,- the total of subscribed capital

to

loan commitments at June 30 to 000

tests

would

set

a

builders

nucleus

the

form

uniform

of

requirements

air

$37,236,477.

which

~

~~~~~

all

of

government-financed
housing could comply.

|
f

John Baas V.-P. of

Edw, G. Taylor & Go.
CINCINNATI, Ohio—John Baas
has

become

G.

Taylor

Building,
and

associated

&

Co.,

for

the

bonds,

and

11

past

ager

of

the

partment.
'he

has

Mr. Baas

years

Westheimer

&

the

has

been

as

man¬

Co.

municipal

For

Vice-

as

Director.

with

Edw.

St. Paul
in municipal

Inc.,

specialists

revenue

President

with

bond

past

de¬

34 years

been

actively engaged in
underwriting
and
distributing
municipal
and
revenue
bonds,

specializing in the States of West
Virginia, Ohio and Kentucky.
'

i

Smith, Hague to Admit
S.R. Noble & R.Delaney
DETROIT, Mich.—On Sept. 1,
Smith, Hague & Co., Penobscot
Building, members of the New
York

Detroit

and

changes,
Noble

will

and

Roy

partnership.

Stock

admit

F.

Ex¬

Sheldon

R.

Delaney

to

Mr. Noble is

part¬

a

in

White, Noble & Co., resi¬
Detroit.
Mr. Delaney has
been associated with Smith, Hague

ner

dent

&

in

Co.

ment

as

of the

manager

invest¬

department.

New Officers
CHICAGO,
is

111.—Martin

Simon

President and Treasurer of

now

Ladue

&

Street.

Co., 11

Norman

South

La Salle
is

Karlin

Sec¬

retary.

R. L. Coleman
(Special

to

The

Opens
Chronicle)

Financial

SAN FRANCISCO,

L.

ert
in

a

fices

Calif.—Rob¬
III, is engaging

Coleman,

securities
at

41

business

Sutter

!

to

The

Bache

is
&

now

Chronicle)
—

Donal M.

with

connected

National

Co.

of¬

Staff

to

Financial

CLEVELAND, Ohio

[ O'Neil

from

Street.

Bache Adds
(Special

City, East

Sixth Building.

Westheimer Adds
(Special

The

to

Financial

Chronicle)

COLUMBUS, Ohio—William C.
Gay has been added to the staff
Westheimer

of

and

Company, 30
\

East Broad Street.

With Frank Edenfield
(Special

The Financial

to

MIAMI,
Cologne
Frank

L.

Fla.

has

—

Chronicle)

Mrs.

joined

Edenfield

the
&

Ruth M.
staff of
Co.j 8340

Northeast Second Avenue.

With Eldredge Tallman
j

|

».

.

(Special to The Financial Chronicle)

MIAMI, Fla.

—

«

Mrs. Nelda T.

Dunne is connected with Eldredge,

Tallman

&

Co. of Chicago.




was

sold in the United States, $9,036,500,000.

for

conditioning

with

was

Nature's

Schenley's

The best-tasting

unhurried goodness

unmatched skill

whiskies in ages

~

"

'

18

The Commercial and Financial Chronicle

.(638)

The

Capital Gains Tax
—An Inequitable Tax

Our

Reporter

The

Exchange

President, The American Stock

and

inequitable
extraordinary, and points out, because capital gains are

not

income,

Capital Gains Tax

recommend

specifically that
the long-term capital gains period
I

be

months,

months

six

from

reduced

three

to

less, and, in ad¬
dition,
that

or

the rate of the

e r e

low-

be

tax

by

d,

re-

during

the

26%

present
maximum

tax

to

13%,

by

reducing

the

includable

and

gains

from

50%

25%.

to

In my

opin¬
adoption

ion,

of such

a

pro-

would

1

posa

be

beneficial

not

only

T. McCormick

E.

to

States

Treasury, by
resulting increased
volume of long-term transactions,
United

the

the

of

reason

but beneficial as well to investors,

securities

the

business

and

there
and

measure

that

I

so

am

its

for

reason

present form,

bit surprised

a

It

long

as

that it

is

it has.

as

extraordinary

tax, to
For capital gains are
income, and no other impor¬
an

begin with.
not

nation

tant

imposes

tax

a

upon

them,

recognizing such gains for
what they are as purely increases
in capital.
In this light, neither
•Great Britain nor Canada, as sore¬
ly in need of income tax revenue
have
been,
has
ever
deemed it appropriate to impose
they

as

its people

upon

tax

a

£ains.

capital

on

revenue,

that

on

none

unless

transaction

the

term

and will
particular
individual

the September

is

still

tax

than 2.9%

more

1942

has

receipts.

of

4%

exceeded

never

since

and

receipts

such

period

that

In

factor.

exceeded

total

would seem to
of the simplest means
It

me

that

for

increasing the amount of such

one

would be to reduce the
capital gains period and the rate
revenue,

the

of

tax

with

line

in

with

tax, the volume of

consequent increase in the amount
of tax received
by the govern¬
ment.
It

is

entirely logical to

a

reduced

persuasive

afford

capital

And

incentive

selling

with

in

gains.
reduced

concomitant

a

to

sub¬

term, lessening the period of risk
these days of national and in¬

in

ternational

uncertainty, should re¬
equity invest¬
ments generally.
In this connec¬
tion, it may be noted that the
present six months' period is a
wholly arbitrary line of demarca¬
increased

in

and

has

example,

I

logical

no

investment

experience.

were

c|sked

of

position for

more

reasonably

a

here and

the

in

moreover,

$4,000,
in

a

the

Imaximum

imposition
tax. upon

has

26%

a

of

the

invested

increased

not

and,
■after taxes, the individual would
have

incurred

tiplied.
I

sincerely hope that

amendment
the not

will

some

such

be

adopted in
too distant future, not only

in the interest of investors but

in

.

substantial

a

volume of such transactions mul¬

the

$2,000
And yet, the pur¬

long-term gain.
chasing power
dollars

of

re¬

loss

the

general

public

interest,

Agreement

the

The old
ment
is

important refunding

an

is the focal point

quite

likely to

maturing 2%

feeling that

be in the

absence

ity in the capital gain

of

real¬

far

so

as

certain real estate transactions are

concerned, it has failed to take
cognizance
of
the
comparable
problem
confronting those who
invest
As

in

a

the

industrial

enterprises.

of Federal revenue,
its
present form
is

source

tax

in

this idea is not

investment

ages

and

the

Assuming the existence of
per

profit

after

a

pa¬

six

months, the
in
a
position

to 1 refrain

sequently,

f^

Con¬

government

re-

Statement of Mr. McCormick before

the

•>.

the

selling.

$

.

.

from

Ways

use

and

Means

Committee

of Representatives,

July 28, 1953.

of

the

Washington,




re¬

used.

As

maturity

the

to

of

considerable opinion that it
would

mean

not have

On the other

hand, there

rate, for

a

being made

small amounts

or

note.

a

or

funding

concern

6/15/78-83.

quite

are

reopening of this issue

fered to the
some

He is

past

a

Investment

Committee

National

on

:

bers

of

troit

Stock

the

New

admit

of

York

Exchanges,
Richard

the

New

and

on

A.

Der-

Sept. 1
Adrian,

York

Stock

been

active

as

individual

an

(Special

to

The

Financial

MINNEAPOLIS,

Chronicle)

Minn;—Robert

jS. Sinkey has joined the staff of
"John G. Kinnard & Company, 133
South Seventh Street. / '

1

<

?

few who believe that

a

With Minneapolis Assoc.:

3%

a

(Special
-

whole.

1961

The

guesses

that "/a ret

the maturity years for

as

falling due.

;
-

as

the

34/4 s

(Special

due

Financial-cnnenicte)

.

Slayton & Co. Adds/

! /-■)■

such

The

Tower.

a

are very

might be used in the coming re¬

to

MINNEAPOLIS, Minn. — Clarence. S.Johnson
is with Min^
neapolis
Associates,: Inc., .Rand

to

The

Chronicle)

Financial

„

•

-.ST/ LOUIS,

Mo.

—

Robert

B.

Brown has been added to the staff
•

of

Slayton & Company,

Olive

Inc., 408

Street.

part of the "basket" that will be of¬

as

of the

owners

responsibility
research /de¬

investment

/With John G. Kinnard

be

to

appears

few, who believe that there might be

a

the

in¬

an

in which the Treasury does

obligation,

long-term

a

There

a

bonds at all

no

of

most likely to be

one

Again in 1960 and 1961 there

The other guesses as to what

that

not

as

favor 1960

appear

security longer than

a

though

short bond, might not have a favorable effect

a

since 1929 and

had

has

•

a year

are

the government market

upon

the

following, with

rate might be used by the Treasury, but they admit that

coupon

such

as

a

large amount of securities coming due.

a

\

broker, will make his head¬
quarters in New York City.

four-year obligation.//This

a

I

Exchange, and Henry G. Gildner
to partnership.
Mr. Adrian, who

matter of consid¬

a

issue, . there

2%%

a

might be

maturity in 1957,

a

the

Analysts

floor

/considerable of
as

of

has

However, it seems

rate of 2%% being heard

coupon

Investment

company

the

will

....

a

the

.member

A

maturing 2s of Sept. 15.v They point out

holders of the 2s would be inclined to take the 3%s.-'"

(Special

to

The

Financial

To be sure,

A.

Lembeck is with Pierce-Carri-

Corporation, Barnett National
Bank Building.

;son

L.

Scheinman &

Co., 40 Ex¬

27.
i

!

.

yet, but it does

Thomson &

MINNEAPOLIS, Minn.

—

Wil¬

a

maturity

one-year

very

prominent place

term

obligation, the market

possibility and it
such

in the

pend

a

of the

care

refunding.

As to

or

as

from the
an

a

MUNICIPAL

issue
a

SECURITIES

indications of

reopening of the 3Vis will de¬

coming conferences.

of

prospects

the

3%s.

At

of the 3%%
too

If there

should

be

good,

would most

likely make

Qn the other hand, if there should be

in¬

the

them
very

2s, then there will probably be

present

time, it

seems

as

no

though the

being reopened in the coming refunding

according

to

followers

some

market.

of

the

money

Atxbkey G. Lanston

15 BROAD

in the coming refunding,
2s

are

concerned with this

/

& Co.
INCORPORATED

_

The yield after taxes is going to be
,

an

and

important amount of the 3V4S would be taken in

exchange then the Treasury

not

?

time goes along.

few takers of the 3V4S for the

are

more

STATE

a

intermediate-

A short bond is also

be that there will be

not there will be

part of the package.

offer

an

to be expecting such

seems

k

of the

owners

thereabouts will have

or

0. S. TREASURY.

great deal upon what the Treasury gets in the way of in¬

formation

the

may

obligation

an

Whether

With Keenan & Clarey
Chronicle)

from the composition of the

seem

maturing 2s that

dications that

Thomson-McKinnon Admit

(Special to The Financial

in taking

use

from the way in which it has been acting.

R. L. Scheinman Admits
R.

Maturity Likely

what the Treasury will

large September maturity is something that cannot be indicated

Chronicle)

JACKSONVILLE, Fla.—Edward

McKinnon, 11 Wall
investor
is
then
Street, New York City, members
%*here any sale will reduce his of the New
York Stock Exchange,
capital position. Since the tax is on Sept. 1 will admit Barbara G.
a voluntary
one, in the sense that Teichgraeber to limited partner¬
tunless he sells and realizes a
gain, ship.
*io tax is
imposed, his natural in¬
clination, all things being equal,
is

reopening of the

might be in the "basket" is

the

of

DETROIT, Mich.—Manley, Ben¬
& Co., Buhl Building, mem¬

offer that the Treas¬

a

decade

a

nett

Some Other Possibilities

A One-Year

Aug.

growth

free economy.

combination refunding

than

more

business. He is the Treas¬

own

of the

owners

issue will be one of the securities

2%%

for

and

has had

To Admit Partners

being taken too seriously at this time.

As to what else

counsel service. He

Chicago investment experi¬

Manley, Bennett Co.

cently offered 2%s of Aug. 15, 1954 is not being overlooked, but

as

change Place, New York City,
aeif-defeating, reducing rather members of the New York Stock
than increasing potential income.
Exchange,
will
admit
Annette
And, contrary to sound policy, it Scheinman to
limited partnership
discourages rather than encour¬ on
O'- our

the

to

However, the possibility of

will make.

ment

Corporate Inforrriation.

First of all, there seems

"basket offering"

a

to

invest¬

President
Analysts .jSociety of Chicago arid is a member

Secondly, there seems to be a very general

one-year

a

which will
ury

be

bonds.

1947

Division's

being

conjectures that are

of the

in

Company

Trust

partment.

.

agreement such as the opinion that there

of

areas

the

wide

for

^

This time it is the Sept. 15 refund¬

by followers of the money market.

be definite

to

is

Trust

since- 1945

operation about to be

money

new

or

appointments
by Holman D.

Mr. Trumbo has been associated

unusual development when there

an

by the Treasury.

which

ing

"Basket Offering"

in

The

announced

urer

guessing game is again being played by the govern¬

market, and this is not

undertaken

Pierce Carrison Adds

Congress apparently
the

division.

Division,

Vice-President

a

well.

capital as compared with this
purchasing power position in 1939.
While

this

with

on

Investment

-Society of Chicago.

reopening of this obligation

a

the

elected

his

September refunding.

in

appreciated

in

was

ence

well even though

-

an-

present sale would

that there could be

Glenn

the Trust Division.

Trumbo, Assistant Vice-Presi¬

head

temporary cloud over this issue because of the opinions
there

termediate-term obligation gets

an

Vice-Presi¬

in

a

Mr. Emrich joined Chicago Title

does bring in buying when quotations

yield

where

deemed

Vice-Presi¬

and

for the moment, despite the fact that the

erable difference of opinion.

than 30 days

be

tax

there is

'

is,

sult

glamor

after

If, for

investor both in a practical and
inequitable a literal sense. Those who go into
the
market
purely for trading
tax, for in inflationary periods
such as we have had in the past purposes are customarily in and
out
within
a
period of a week,
several years, it has the paradoxi¬
cal effect of taxing away a sig¬ and, certainly in less than 30 days.
To
the
extent
that the period is
nificant portion of *a gain which
shortened and the rate reduced, to
may not in fact exist. For exam¬
ple, if an individual purchased that extent will investment risk
stocks for $2,000 in 1939, which be reduced, the liquidity of equity
now
had a i value on the market investment be magnified, and the
It

their

The 3V4S due 6/15/78-83 continue to act

support

trading ended and investment be¬
gan, I should say that a period of
30 days would be more realistic.
In my mind any person who holds

Assistant

elected

Pettibone, President.

lost

issues have

intermediate-term

recede.

assume

would

tax

locked

now

stantial

may

of

made

that

a

investing.

pro¬

my

capital
gains tax transactions would be
magnified
considerably,
with
a

in

of

some

I firmly believe that,
shorter period and a re-

a

-duced

tion

The

type

attractive

granted

announced

was

dent

important let-down is looked for in

no

the

and

operation, the demand for near-term securities

sizable and

For

posal.

sult

this

very

—

was

dent,
M.

some

Advancement
position of
by

111.
to

Chicago Title and Trust Company.
George 1^.. Emrich, Jr., Trust Of¬

were

short-term obligation is taken largely for

a

in

never

option deal has had

an

men

ficer

dent

long-

a

classifications.

1948 through

important
it

of

...

outstanding marketable securities that fall in these

the Federal revenue from
capital gains tax was not an

During the years

intermediate-term issue as well as

an

might be part of

obligation

effect upon the

Although

1951,
the

each day

the guesses as to what the Treas¬

attitude of investors in their current operations.

opinions that

his lifetime.

sells in

a

bas lasted in the Internal Revenue
Code

receive

those

valid

many

little

so

in

retention

its

are

tax

no

ceives

for amendment of this tax

reasons

The

our

corporate enterprises generally.
Indeed

fluence upon the

two

Vice-President

might do in the coming refunding is having an important in¬

ury

specific recommendations for revising the tax.

Offers

them.

as

other important nation imposes a tax upon

no

of

market is paying more attention

government

to the Sept. 15 financing because

Mr. McCormick brands the

CHICAGO,

By JOHN T. CHIPPENDALE, JR.

T. McCORMICK*

By EDWARD

Thursday, August 20, 1953

Chicago Title & Trust
Appoints Two V.-Ps. -

Governments

on

...

.

because

a

many

point of real importance
owners

of the maturing

phase of the situation.

The outstand¬

liam L, Kennedy has become affi¬
liated with Keenan & Clarey, Inc.,

ing discount issues have considerable attraction from that stand¬

McKnight Building.

point.

ST., NEW YORK 5

WHitehall 3-1200
t31 So. La Salle St.

Chicago 4
ST 2-9490

45 Milk St.

Boston

9

HA 6-6463

Volume 178

Number 5248

.>

.

The Commercial unci Financial Chronicle

(639)

Continued from first page

ministration

:

r

firmly set

.

on

fiscal renovation, far from de¬

D. W. Chambers With

termined to reduce this drain
upon

ft

We See

As

ally

times with

good support at the other end of Pennsylvania

Avenue and

sometimes

pruning outlays.

without

It has,

it—has made

the protests of

over

start

a

a

in

number

of entrenched advocates of

:

;

spending, succeeded in cutting
fat—although we suspect not
nearly all of it—from the defense program. At various
other points it has made observable
headway in reducing
expenditures. The trimming of various executive depart¬
considerable

a

ments has

of

amount

been drastic

as

measured by any standards of

recent years.

This, too, probably leaves something further
to be desired, but, all in all, it is
highly probable that a
point of diminishing returns has been reached in this type
of

economizing.

Associates Inv. Co.
SOUTH BEND, Ind.—Associates

Investment

by this complex of transactions

its

concealed

so

from

similarly all the multiplicity of semi-social¬
governmental operations like the TVA and the inter¬

istic

list

minable

costing

of

regulatory activities like

and all still

money

the

of

common

SEC—all

and

the

the

L.

Street, New York
Oare, Chairman

board,

announced.

tion,

a

Government undertakes—aftd it; is here that
of vested interests in the

fJ

fvi.

a

is

one

of the nation's major auto¬

mobile

its

reaping?

finance firms

business

billion

in

and

volume

\;

dollars.

■"}

multitude

\.y

;

Here it is that.;the mettle of the Administration will

"y be? tested. Failure to
;;t6uld hardly. be

u-' rr-f

:

•>

.

to

grips with it at that

pthep than a definite
disinclination to do what 'isobviously necessary to > get
our financial house in order.
Against this background the
developments in the case of wheat last week call sharp
attention to

'.

come

Cr'eg^Med;

is

as:

situation which the present Administration

a

finding exceedingly troublesome.

FULL-TIME ROWER STEERING

To the politicians who,
incidentally, have regularly
encouraged the notion, it ;has long been clear that the
farmer has grown to
regard himself as having some sort
of "natural
right" to largesse from the rest of us, and,
what is

more

A

to the

point with the professional politician,
else. Jhe farmer, of course, has
long been regarded with favor and fear by the politicians.
intends

'

have

to

it

superior feature available only from Chrysler Corporation

Guided by one finger on the steering wheel, a Chrysler-built

or,

He has been coddled almost from time immemorial.

car

His

any car to

demands upon and his receipts from a

slashes

through hub-deep

be in—except ivith full-time

ocean

power

surf—a tough spot for

steering.

friendly and fawn¬
ing government have been growing for a long time.
,

During

World

:

War

Ispecial. subsidies,

y; amounted to such, professedly in

/

r

i
"

y.
•

or

what

the interest of needed

5 thing like disaster should they be suddenly withdrawn.
•

.;j.; Some

such, result

this

.usually be counted upon
politicians tamper with the ^natural course of eco-

when

ation Ts

as

When
ner,

sand,

",

high explosives—a, fact which the

Administration is finding out.

Yet

we

can

hardly go

on

Now

for

"

But'-this farm

situation

is

only

which

'

These former
a

come

at

comes

one

of several that

is

political force (or should

following

now

has
;

to

mind

the

veteran.

upon

we

pro¬

substantially reduced, it is still true that
many

con-

of them

way

related to military service—simply beggar the

pension system which they presumably replace and which
was for
many decades regarded as one oiUhe major scan¬
dals of national

public finance. Few

stomach for this
shown
.

interest

benefits and

which

politicians have much

problem. They almost unanimously have

only when

some

proposal^for broadening

adding to the fiscal burden

Then, of course, there

-

at

is

car

look,

a

together make

up

come

forward.

se-

curity. The cost of these is partly evidenced in the budget.
Elsewhere it takes the

form of assumed obligations, the

exact

dimensions of which remain

close.

Here is another




for thg future to dis¬

political untouchable. Even

an

turn,

a

What

Ad-

the

are

of this cxcluiwc

ease,

even

straightening-

a

superior features

gine. And it stays

unlike other

has
of

your

So

now

been

available

the

require

on

the job

engine runs!

or more

pounds

rotations of the
to turn

only system that

en¬

This

three.

means

steering than
any

up

doctors

willing to allow

persons

before could not

stand the exertion.

to five

arc.

The

faster, safer
get with

Chrysler system also soaks

road shocks. Its hydraulic

on

You will

cars.

drive

over

your

course—even

ruts

or

suffer

car

se¬

if

you

an

un¬

in 1951—

passenger cars

again proof that here

you

get the

good things first. This Chrysler
"first"

is

another

example of

engineering leadership that

con¬

tinually,

puts

more

year

value

after

and

year,

worth

Chrysler Corporation

into

all

cars.

developed and

introduced full-time power steer-

enjoy Medallion Theatre-dramatic entertainment for the whole family

CORPORATION
PLYMOUTH, DODGE, DE SOTO;
CHRYSLER & IMPERIAL CARS

Industrial

Chrysler scientists, engineers,
technicians

CHRYSLER

Dodge Trucks, Chrysler Marine &

expected blowout.

and

ing for

other available system.

renely

many

full

you can

steering-wheel weariness.

steering that

up

steering wheel
a

helps hold

who

De Soto

surf of Daytona Beach, Florida. It demonstrates

Imperial, Chrysler and DeSoto

Chrysler system requires only

The

pressure.

through

action

to drive

on

steering ratio has

drive hour after hour

are

the good things first. A Chrysler-built

ocean

greatly reduced. Other

mechanisms

relaxing is Chrysler's all-the-

time

you

in the sand and

and positive safety control of full-time power steering, another Chrysler Cor¬

now

your en¬

devices, which do

applied four

steering

poration "first,"

Even

to work until the driver

This is the

ease

power

responds instantaneously—

not go

Engineering that brings

handling

Chrysler system?

the moment you start

minute

Creative

the

steering system reports for duty

It

mm

cuts effortless capers

Chrysler's revolutionary

ables you to

the multifarious programs

what is loosely termed social

wheel with

and you're in!

up,

without
are

is absolutely

now

complete standstill. Parking

a

every
no

to do 80% of the steering

you!

your

demobilization after World War II

completed, with the result that this type of outlay

been

fatigue out of driving.

effortless! Your finger tip turns

be blunt and say

Although the educational

tinuing expenditures in this area—all too
in

is

soldiers, sailors and marines, too, have be¬

lobby) of great vitality.
gram

once

Chrysler engineers have

Steering

Other Situations

V present ,corresponding
difficulty for the Administration.
Another

muscular

up

They've harnessed hydraulic
power

ture going which has no economic justification.

:

a cor¬

The result is tension and

taken the

's.

1 '

burn

you

turn

or

through skittery

driving fatigue.

7, indefinitely taxing ourselves heavily to keep an agnail¬

.

drive

energy.

attempt to remedy this situ-

loaded with

park,

you

or

can

^

nomic. events,

;

IN ENGINEERING

,

These subsidies themselves have, of course, created
conditions; which would expose many farmers to some-

/

NEW WORLDS

the. New Deal and the Fair Deal have managed to think
up./

'

EXPLORING

en¬

largement of production, created absurdly unsound conditions throughout American; agriculture.
A basis was
then laid for a decade or more of
rural.distress, and ultimately for the various subsidies which President Hoover,

on

CBS-TV.

Engines, Oilite Metal Powder

Products, Mopar Parts & Accessories,

Airtemp Heating, Air Conditioning,

Refrigeration, ond Cycleweld
Cement Products.

1952

exceeded >ft

public trough really rise in wrath.

'To Test Its Mettle

Mr.

formerly with Kid¬

was

ments will in all

•

as

paper

Associates Investment Company

.

to proceed

courage

ap¬

der, Peabody & Co.

more

sense

Robert

Chambers

expensive by reason of
their interference with the normal
operations of private
enterprise. The field is ripe unto harvest—but can we
the

has

Chambers

commercial

at 250 West 57th

City,

There is

.

eastern

representative, with headquarters

the

by bookkeeping folderol.

unwary eye

Company

pointed Douglas W.

strengthened

with the

really significant accomplish¬
probability have to come from a reduc¬
substantial reduction, in the functions the Federal

no

"contributions" and "reserve funds" in
any
way eliminates the fact that the basic financial position
of the Federal Government is weakened not

summon

Further

•

Let

about

sense
•

the taxpayers, is actu¬
scope and liability for the
one
suppose that all the non¬

demanding broadened

Federal Government.

19

The Commercial and Financial
20

»

.

.

.

Thursday, August 20, 1953

Continued from

first page

the balance.

appraise

convenient

into

about gold that makes it a good
money-material. It has no mystical properties. It is simply the
best .all-round commodity for

proved remedy—a
redeemable in gold. We
should take to heart the lessons
of the past and act upon them

enormous
national debt: from

The result has been an

currency

-$43 billion in 1940 to $260 billion
today. A considerable part of the
securities sold by the government

wheat

quality and is perishable; and pigs are awkward to
handle.
There is nothing sacred

and

known

units;

before our currency has
been money purposes, and has proved
to be so for thousands of years,
Federal Re¬ completely damaged.
Although there are several
serve
commercial
What Kind of Money standard
variations of the gold standard,
banks which issued newly printed
Have We Now.
£be best, the most practicable, and
currency and created
new bank
Gold has been the money stand- the most democratic, is the gold
deposits to pay for them. Govern¬
ard of the United States during coin standard. Under it any citiment debt has been simply trans¬
the greater
part of its history, zen can exchange whatever curformed into an excessive quantity
Early coinage legislation provided rency he has for gold coins in
of money.
acquired by the
banks and the

were

A

for

,

was

convenient denominations.

both gold and silver were

No

of

it

money's quality is whether
remain free from the In¬

a

In 1879 the currency again
redeemable in gold.
From then until 1933 gold remained the standard money of the

used by countries poor in gold to
maintain their currencies at an
established ratio to it, although
most of the gold is kept in for-

of do-

eign countries and serves to balance
foreign exchange transac-

country; every other form

to

the

increase

without

progressively

limit,

mestic

would like
quantity of
it

who

those

of

only one ele¬

Money is, of course,

and even the

ment in an economy;

circulation

wouldn't be the
problems.

it

of

form

But

bad

a

very

that need never

situation

serious

creates a

money

have

people have
the weight
of opinion grows that the only
certain way
to prevent further
depreciation of the dollar is to
return to the gold standard.
Many thinking

arise.

Standard

Money
Our

lars.

of

not.

and

silver

and

currency

paper

governments and central banks are allowed to obtain

and foreign

m j-

consists

today

money

At the Treasury

base-metal coins.

reserve

®T*V. gold bullion in exchange for doL

Sound

Why We Need a

i

minirequires a
a miniof 25% for the
currency and for the deposits held
by the Federal Reserve banks;

The
gold

mum

rprmirps

law
law

Thp

our

citizens

American

But

are

phrase can define

short

No

present money standard. Per-

haps the best description of it is
a
domestically inconveitiblc in-

vorable"

banks

obtains its value only from
that it is accepted by

rency

exchange goods

"unfavorable."

.

is

no

a

more

nec-

base

100% gold
commercial

balance of a bank account is con- when business activity requires
vertible mto currency which can an increase in currency and bank
be exchanged tor gold. A large credit. Under the gold standard
part of all payments made by the limit to the
expansion of
check merely transfer bank de- currency and deposits is set by
posits from one holder to another, the amount of gold available and
In the course of a day, a week, the percentage of it required to
or
a
mouth withdrawals from secure them. Although a change
checking accounts and deposits in the amount of gold held in the
made to them just about balance, reserve is conducive to a similar
The simplicity, ease, and effi- change in the quantity of currency
ciency with which payments are and deposits that it supports, the
thus made need not be elaborated flexible powers of the central
upon here, but it this canceling banking authority can do much
out of receipts and expenditures to modify the effect,
that makes an adequate gold re- • jn a flight of fancy which deserve for the currency also ade- yelopments of the modern
age
quate for bank-deposit monev.
certainly permit, one i might ask
This
leads
to
the
question what would become of the gold
whether there is enough gold in standard
if, through scientific
the
country
to
make
possible discovery, gold suddenly became
return to the gold standard on a cheap
and abundant.
Suppose
SOund basis. The answer is clear that alchemy in modern
guise
and evident.
There is now far were at last to triumph and a
more
than enough gold for this base metal or some other material
purpose. In spite of the enormous could be cheaply transformed into
increase in currency and bank the precious metal.,/
deposits, the gold held by the
Let's^'agree .that: it would be
United
States
Government
is folly to try to halt the march
greater in proportion to them than of progress
to attempt to preit \yas at almost anytime in the venf the inexpensive production
past when the nation was firmly Gf gold. If gold were to become
established on the gold standard. as cheap as lead/aluminum, or
The $23 billion or more of gold zjnc^ ^ would no longer be a
now in the government's posses- USeful money-material, - and
the
sion is equal to about 75% of the gold - standard would no longer
paper money, silver, and minor be practicable.
nnine in oirpnlofinn
..
C■ ■
The worst then that could hap¬
coins in circulation.

.

with the gold.

\

Technically, a real gold standoperates under the following

ard

conditions:

the

(1)

an

all

(2)

other forms of

money
are
V£due for

with

even

the

present

excessive

quantity of every form of money,
the gold available to secure it

for

services

One

Gold has been

it.

this would

might suppose

in

redeemable

is

money

paper

something of tangible value if it

exchanged readily for all

be

can

need and want?"

the things people
There

real

is

When

cern.

for

reason

currency

a

con¬

is

not

the re¬
quirement that it has to be re¬
deemed with
something that is
itself
valuable, the government
can
pump
into
circulation
as
much
as
it
pleases.
On
first
thought, a person might say,
"That's fine, the more money the
limited

in

better!"
there

the

But

is,

more

becomes.

it

money

the

else,

anything

like

valuable

less

by

quantity

When

primary

a

thousands of

for

metal

terial things.

Because of the uni-

preference for it, and be-

cause

of

the

make

it

that

reckon

with,

accepted

as

of

ment

it has
With

the

the

and

banking

transactions,
became

the

which

all

values

other

compared.
" ' '
The
principal

standard

-

that

nation's

freely

exchangeable

Under

it

money:

it

When more and more of
circulation it buys less

enters

and

less.

domestic

money

standard

of

most of the

gold

standard

is

monetary stability to many coun¬
tries.

by

Its

abandonment—whether

of

reason

scheming,

or

mentation—has
jmonetarv

poverty, political
ingenuous experi¬
invariably led

chaos.

Countries

to

that

standard have
almost always returned to it, after
enduring various degrees of infla-'
have left the gold

tion

from

quite

moderate

to

a

value

the

of

of

piece

worth

of

dollars:

ounce

an

fixed

a

five-dollar

A

contains five dollars'
gold, a 10-dollar gold

piece 10 dollars' worth, and so on.
If a gold coin were melted into
"

a

nugget,

-

.

-

-

nugget would be
as much as the

the

worth just about
coin.

Under

the

paper

money

is

gold standard
good as gold
itself, for it is redeemable in gold,
There

standard

could

that

as

be

some

would

give

tmn's currency real value

the

right to

standard

exchange

it

other
a

na-

through
for the

money-material—Silver,
extreme. It would be a sad ex¬
platinum, -. or diamonds,* for* inperience
for us to
suffer the stance, or even wheat or pigs. But
silver is plentiful and comparaconsequences of extreme currency
inflation before we applied the tively
cheap;
platinum
is
too




comparatively
other gen-

erally d esirable commodity—

the

some

advantages

that in-

proved
to
be
universally
acceptable as a basic form of
mQneyj aIthough n0 known com_
modify has as many monetary advantages as gold. Certainly the
ioss 0£ ^ as the base for a sound
that

country, of gold, for a substantial amount currency would not remove any
is being added to the world's 0£ £be disadvantages or in any
stock each year. But if gold were way modify the ill effects of an
only gold coins and minor metallic a very rare metal it wouldn't be irredeemable currency
coins would circulate—that paper a good money standard; it would
T,v Ln
thnt
money would be done away with, be too scarce to support the curr,
m ss D1111Y 18
emotie uiai
Actually, when the gold standard rencies of the world. Or, if little gP a y - • ^ >
• aZ
??,. uS.e<~
is in operation very little gold more could be produced, the ex- ? eaP*y ana in Yast quantltias
passes from hand to hand. Under isting supply would not increase *wo reas°ns- At is an element ana
the gold coin standard anyone as the growth of national econ- fffnuah fh can L
•
Praclucecl
can obtain the coin and keep it
omies required more to support ™ 8
.01 t^°,ar
or spend it as he pleases, but the a normal expansion of their cur®
siemeirts, and tne
paper currency to which we are rencies. In either case, gold would
,
t
f?JPe avf1
accustomed would continue to cir- become more valuable in terms
•
lf,
%,
ouia probably
can

enter

or

leave

the

Some people have the mistaken
idea that under the gold standard

of other things. Prices in general
tend to fall when gold production declines, and to rise when
it increases.
Although the value of gold
money structure
(which consists fluctuates, it is more stable than
0f Federal Reserves notes, silver that of other commodities.
This
certificates,
"greenbacks," silver is so for two reasons. First, the

culate. In appearance it would be
of the just about as we know it today
the other except for the words printed on
money
are it in small letters.
for gold.
Under the gold standard, our

gold is maintained at

number

gold

»

nothing
new, either in the United States
cr
elsewhere. ,It
has
brought
The

of

of

were

feature

is

forms

or

corn,

as

more

the value of gold
point of reference to

cotton

steel,

systems
and

came

glut the markets their value falls
>—their prices go down. So with

potatoes,

develop-

world,

credit

form

one

to facilitate commercial

more

gold

always been

in

monetary

throughout
and

to handle and

money

another.

or

attributes

various
easy

a

some

or

exchangeable
at face world. There is plenty of gold if bere in the gold standard
would
(3) n0 ]imlt 1S we want to return to the gold obtain for any
other standard

In

versal

whether

metal

goidj

money

years

—

more
than had ever been would have to
be
determined
thought necesary, in this or other whep the necessity arose.
The
countries,
when
gold was the nature method of operation and

placed on the amount of gold standard.
,
that may be brought to the mint
ancient
be sufficient to make an irre¬
times,
throughout
the for coinage, (4) gold is fully legal Can Theie Be Too Little or Too
deemable currency a good enough Middle Ages, and down to the tender in payment of all obligaiviucn uoia.
form of money.
There seems no prospect in the
"Why be con¬ present it has been considered one tions, and (5) there is no restriccerned," you might ask, "whether of the most desirable of all ma- tion on the amount of gold that foreseeable future of a scarcity

and

be

scarce

country's is

unit is the equivalent of
established amount of gold,

money

Standard9
t
a a.

Gold

the
e

What
Is
w
a

Tust

or

It

maintain

international gold bullion standpermits the use of gold
0 n 1 y
in
transactions between
countries but doesn't allow reHomnfinn
a
naf inn'c nwn r»iir_
demption of a
nation's
own currency in gold.
It is a feeble form
This
gold
stock
is equal to pen would/be
WUU1U
De
a
lo
liie
a xeiulII
return to
the
of the gold standard if, in fact, about 11% of all currency in cir- present/, world-wide
system
of
it is a form of it at all.
culation and all bank
deposits managed paper currencies which
For
the non-economist it is besides. How adequate that is, is are not redeemable in anything
sufficient to have in mind that a sh0Wn by the fact that between at all of value and are subject
true gold standard permits him the years' 1915 and 1932, when the to incalculable inflation. The best
to exchange his paper money for nation's currency was firmly an- that could happen would be the
gold in unlimited quantities, at a chored to gold, thfe average pro- institution vof
the
next
most
fixed amount of gold for each portion of gold to currency and acceptable money - material1 in
dollar, and do what he pleases deposits was only 8.6%.
Thus, piace 0f gold. What that would

for gold.

money

the- fact

those who want to

the

as

ard. At

are

currency

varies

What is sometimes considered a
variant of the gpld standard is the

pieces of paper
redeemable
only ternational gold bullion standard."
far as Ameiicans
are
conwith other pieces of paper cur¬ So
rency,
and to a limited extent cerned, it is in no sense whatever
with silver coin worth much less a gold standard, for they aren't
than its face amount.
Our cur¬ allowed to exchange theii papei
the

and

the amount of

it,

currency

country's balance of trade is "fa-

re-

theoretical relationship to

a

ornlfl

gold.

this, and

to see

come

contracts

all

and

quiring payment in gold were
required by law to be broken.
The
dollar
has
continued
to

solution to all economic

Under

tions.

domestic

in

ducing its value.

best

freeely ex-

was

currency

changeable for it. When the government left
the gold standard
1933 and arbitrarily refused to
redeem paper money with gold,
all gold coin was withdrawn from.

re¬

gold

gold should he want to do so.
The gold exchange standard is

can

fluence

which

standard

became

indulgence in it brings economic
ruin.
The
most
important test

cur-

standard, although it makes gold
coinage unnecessary, prevents the
man
of small means from exchanging his paper money for

years.

that a nation's

bad

so

obtained in exchange for
This variety of the

rency.

widely in value for 17

fluctuated

better than others. Some

is

money

gold

paper-money

a

is perfect, but some

money
are

is

of gold worth large sums can be

became firmly
established,
although not di«a kind of money that can't be in¬
flated, that by its very nature will rectly by legislation, as the money
continue to be a stable measure standard. During the Civil War,
of inflationary governof value and a highly desirable because
ment finance, the country adopted
medium of exchange.
kinds

standard

bullion

limited. Under it only bars

more

undervalued and driven from

circulation,

besides, is

What is needed,

lime.

gold

The

silver

when

1834,

After

minted.

gives no assurance that the
inflation won't be resumed at any

but it

under

standard

bimetallic

a

which

inflation,

this

halt

can

government

sound

to

return

finance

■

,

to

essary

in

varies

Standard!

What About the Gold
increase in the

for
money - and
credit,
Through the operations of the
reserve than it is for a
central
banking system, under
bank to keen cash on hand equal the gold standard, a given amount
to all of its deposits.
of gold can secure more than
Under the gold standard, bank
twice that amount of currency
deposits are convertible into gold and 10 times or more that amount
just as Currency is, although they of bank deposits. Thus, a relaare a step farther back in the tively small quantity of monetary
conversion process. That is, the gold can do a great deal of work

diamonds are difficult to
and can't be divided

scarce;

*>

*'i

Chronicle

(640)

nroPP„/;nV'
lp

certain
time

g

f

that

i{

of one taat

nf
T, -

expensi^e
ess ,?os11y
t7ll'h
T ^

•

-

it

before

ever

'itis/Lane?

to manufacture sold than

S

and refin_ it

e

'

supply is fairly constant in proGoId Is a WorId currenrv
portion to the need for b
The
.
c. *
a base of gold held by the Federal
annual increase in the world's ' *
d *s an international money.
Reserve banks or the Treasury, stock is small compared w. h the When countries are on the gold!
This standard it flows back and forth
.Those institutions would be re- total amount in existence
idily among them, adjusting trade balquired to redeem all other forms keeps gold from being
/'*•«nces and aligning prices in world
0f
mcnev
with
gold whenever cheapened by an increase ,
_
_
_
_
requested. All money in circula- put.
Yet the gold aires y in /markets.in How
this occurs can be
a
simplified example,
tion would thus be the equivalent existence isn't quickly con: rned; snown'
~
Jm
coin
all

and

minor

coin, as well as
would rest on

bank deposits)

#

.

of gold.

.

-

additions to

>

...

the supply

are

more

ippose

that

a

country

buys

ar less ^ J

million worth of goods from
the
gold
standard
is that the fr°m suddenly becoming < aier, another country which, at about
currencv would have to be backed
for the normal increase in d iand
^ame time, has bought* $1*milby a 100% gold reserve. Experi- 1S approximately n:t 1. t
n- iian worth of goods from it. The
ence
with !the gold standard in crease in supply.
first
country ,can make up • the
uus
*rad'3 udlfferebr*A>"'-wthe past has shown/that a 40,%. .- A second
reason +or
m s trad-*'/dlfference/rby^.
sHfppme,"$1
minimum gold backing is ade- stability in value is Lie eif;
ncj rr.ilhori- in gold,' to the' second
quate/- Other assets would secure with which it can be use a ts u country. The loss of gold by the
Another mistaken notion about

;

**

Volume 178

Number 5248

The Commercial and Financial Chronicle

...

(641)
first country reduces

its gold re¬
serve for currency and bank de¬
posits. This tends to tighten the

of the

means

port

it needed

country

set

reserve

currency

and

to

interest rates

deposits

and

tends

ernment

borrow

not

to, but beyond

hope

when

is this

point
by the amount of the gold re¬
it

serve

would

have

to

of

obtaining something for
Underlying all inflations
ingenuous wish.

nothing.

a

In

a

democracy it is appropriate
that ultimate control of the
public

borrow

purse

prices.

directly

in

their

first

and

be

no

raise

and

The lower prices in the
country make its products
readily in world mar¬
kets, and the higher prices in the
sell

more

second

country retard the sale of

its products to other countries.

In

this

ment of

that

among

gold is

balancing force

a

continually tends to equalize

prices

of

interest

goods

the

to

countries

to

of

unlimited

debt

force

attract

the

simply

inflating

would

its

nance

basis;

activities

otherwise

Gold

is

lenders.

where

it

For

on

it

its

merits

the

buy them at the least advan¬
tage.
The United States has well over
the world's

half
If

ever

a

major

monetary gold.
country was in

to

its

position

a

freely

let

currency be
in gold coin,

redeemable

without

restrictions
ever, this country now is.
An

often

against

what¬

any

heard

-

argument

our

of

the world's gold

is held

by

us.
The fact is that it is un¬
important whether other nations

return

to

the gold standard when
That they should when it

do.

we

becomes

possible is certainly de¬

sirable.

As

deemable

nations

with

irre¬

currencies

adopt sound
principles of finance by balancing
their budgets and
halting infla¬

tion, gold will flow to them not
only in exchange for their goods
but

for

investment

in

their

in¬

dustries.
Meanwhile it behooves
the strongest and richest
country
in the world to insure the sound¬
of its

ness

ing

it

own

by mak¬
gold, and

currency

redeemable

thereby letting it
unit of value for

in

serve as a
a

either.

price
be

stable

world engulfed

by depreciating, irredeemable

cur¬

rencies.

level.

broad

Under

standard

It

it

and

all

its

can

both

the

gold

advantages,

expansion of credit
banking system can, of
course, lead to trouble.
The cli¬
the

of such

max

an

expansion in 1929
is long remembered.
Unsound

credit

policy is not

of

the

banking

management

system,

which

should prevent it.

of

the
and

can

Under the gold

standard, the complex forces that
the

cause

downs

and

ups

business cycle

would

the

of

continue

be

firm

a

guaranty

the

occur

against

There could

debacle

run¬
never

ruin

that

currency

can

and

irredeemable

an

bring.
the

treme

the

fluctuations

known.

ized

currencies
of

cause

It

have

most

recent

has

the world

that

in

every

in the country.

length

urging

monetary
principles
to
tinker and experiment with kinds

it.

written

Their testi¬

before Congressional

mony

mittees

shows

have failed

incontrovertibly

There is

gold

standard.

than

enough

We

gold

have

to

the

in

of the former,
exists, and always has,
of gold.
It is an in¬

latter
the

form

ternational

Nature

money.

has

provided it and mankind has long
it
acceptable.
Gold
is
abundant enough to secure all the
found

currencies of the

ciently

world, yet suffi¬
difficult

and

scarce

to

produce to remain stable in value.
Gold

the

Is

People's

Money

The

gold standard puts a clear
and definite limit on the manage¬
ment

of

nation's

a

An

money.

overexpansion of the money sup¬
ply is checked by the amount of
gold in the reserve. Those who
fear

inflationary

an

the

of

paper

cheapening

currency

can

that will prevent further inflation.
return

to

the

gold

standard

is

probably inevitable,
for, as
history shows, practically every
nation

that

abandoned

ally went back to it.
this

major

the

not

will

price

pansible

and the
shall have

money

at

debt,

and

all

but

steadily

is

serve

limit
it

to

the

down

and

of

amount

currency

ingly.

Thus,

the

sound

currency

places

ultimate

money

gold

automatic

an

on

un¬

practices
control

and
the

of

supply in the hands of the

this

standard
say

same

also

the

gold

them

final

way

gives

with respect to their govern¬
financial policies.
Under

ment's

it

they can prevent excessive or
long-continued deficits by forc¬
ing the government to balance

its

budget.

financing
new

Inflationary

with

bank

paper

money

deposits

backed

government obligations

brought
gold

to

up

deficit

would

or

by
be

short by the need for

secure

them.

Only

by

"

abandonment

of

the

gold

ica's

| finance

be continued

beyond the




(

[which "have

not

are

accepted Amer¬

Technical Assistance

Program, NATO [the North
Treaty Organization], the United Nations,
every other manifestation of international co¬

Atlantic
and

operative effort.

were

far too successful to admit of

compla¬

"Everything I have

seen

and heard

the

on

journey I have just completed convinces

long

me

that

throughout the world

are

lose confidence in America and that

beginning to

we

danger of suffering far-reaching

ous

the world-wide

are

in seri¬

reverses

in

fight against totalitarianism and for

democracy. And what has happened in Washington
during the session of Congress which just adjourned
convinces

that

me

we

are

by

alert to

no means

our

"We

in

America

the world has
the

have

never

an

opportunity such

truly abundant life and to lead the

an era

of peace

uring

up

to

and

progress.

But

the opportunity,

world into

we are not meas¬

either at

home

or

to

as¬

abroad."—Mrs. Franklin D. Roosevelt.
Mrs.
sume

Roosevelt, like

our

so many

means.

i

It

seems

others,

seems

"responsibility" for world leadership—

whatever that
to

us

.

.

follows:

as

"Among

in

be

the

that the time has

cial

is

world's

to

assumptions.

changed

until

the
pur¬

of

pose

gave the dollar

as

of

any

the

disasters of

the only

versally

.

.

and

ounce;

as

money.

.

.

.

But,

who

.

.

else has the unique as¬
semblage of qualities that makes
gold so ideally suited to serve as
,

.

entire

Our currency will not

.

.

the

give

gold

it

the

until

dollar

and

again made freely inter¬
changeable at a fixed ratio and

our

in

are

citizens allowed to have gold
their possession." So far,
so

good.

We will

to those

draw attention

now

statements made

by Mr.
McLaughlin which are diamet¬
rically opposed to the views which
hold

we

respects the

as

use

of gold

ther

"devaluation"

by raising
gold to $70
should
an

the
an

of

the

opinion

such

honest-dollar

that

a

should

we

bauch"

the

we

semblance

as

fine

of
am

that

still

we

by holding the "value" of
lar to $35

dollar,

price

while I

ounce;

the

retain

of

official

of

have,

our

dol¬

of gold—

ounce

again "de¬

never

American

dollar

by
tampering with the official price
of gold, as was so dishonestly done
in 1933-34.
He points the finger
of

"the

that

should

those

at

scorn

price

who

of

$35

advocate
an

ounce

be

retained"—naming, in
particular, Dr. Walter E. Soahr,
Vice-President
National

of

the

Committee

Monetary

Policy,
and
Mr.
McKenna
of
the
Gold

Philip

Standard
carry

League.

little

McLaughlin

ganization

bership

It

seems

weight
that

Dr.

includes

to

with

Mr.

Spahr's

or¬

in

its

mem¬

of the leading
economists of this country, where¬
as.
of the four named
by Mr.
McLaughlin as favoring a rise in
some

70

the official price of gold, not one
is

known

to

me

as

a

teacher

of

t«T.i+u

weighing the
ika

being

argument

pros

and

having

advisers —Mr.

nfipo

cfnia

Philip Cortney and others—
evidently see no harm in
subjecting the American dollar to

further debauchery;

for they are
advocating that the official price
of gold

be raised to $70

an

ounce

—which

is only another way of
saying that they are "advocating"
that the present gold value of the
dollar

be

reduced

what would

omy?

We

1933-34

know

50%.

to

our

that

that

quires about 70%

41%

dollar

it

now

in
re¬

dollars to

more

gold value

same

And
econ¬

the

the

of

means

equal the

by

that do

"devaluation"

as

ob¬

tained

prior to 1933; and that we
today paying, for practically

are

more

than

buy,

we
we

about

70%

did before the 41%

devaluation.

Hence there is every
believe that if we now

to

reason

reduce

the

"value"

of

the

dollar

by 50%, occasioned by raising the
official price of gold to $70 an
ounce, it won't
we'll be paying

practically
than

the

1933-34

be

long

100%

inflated

before

more

"everything

already paying

we

prices

we

for

buy"
are

result of the
"devaluation."
as

a

In the light of these facts, is it
possible that the American people
are

going to allow themselves to

"fiddle
us
a

while

Rome

burns?"

far greater number of

a

Let

hope not! But to prevent such
catastrophe it is essential that
our

peo¬

ple become awake to the fact that
there

is

such

money"—that

thing
nations

a

"honest
have long

as

recogpized

that "honest money"
money
whose monetary unit
(the dollar, for example) is firm¬
ly set in terms of a definite weight
is

of gold—and

that, once so set, the
raising of the official price of
gold is nothing more nor less than
sheer

"dishonesty."

FREDERICK

G.

Connecticut State

2009

do

New

thp

we

mone¬

McLaughlin,

Mr.

cons

to

hap¬

short,

SHULL,

Chairman,

Gold Standard League.

recon¬

this

allowed to

memory

everything

McLaughlin advocates fur¬

be

never

How have a new group of

tary

throughout

has

as

"dishonesty**

terms of money is expressed.

Nothing

of dishonesty

again.

It is the final base of reference for
all the devices by which value in
.

Those imcompetents "de¬
the dollar by 41%,
by

a peace

should

.

commodity uni¬

accepted

an

tam¬

never;

been foisted upon the
people
of this nation. Such

pen
.

$20.67

or

was

ever

so¬

.

that

pered with for the next 96 years
—or until the New
Deal took over

.

more

war.

"value" of 23.22

a

grains of fine gold,

great

money

economic and

our

order

spectacular

In
come

dollar at 24.75

our

raising the official price of gold
$20.67 to $35 an ounce—as

far-reaching and dis¬

as

economics.

i

pre¬

from

.

may

of

sider many such

to

axe

the blunders of the postwar
years
the delay in restoring confi¬

on

as

never

valuated"

♦Economists'

known, to create for ourselves

a

1830's—and then only for the

in 1933.

quote them

Executive

great opportunities here at home.

was

I

strongly

friends

an

are certain points
which he emphasizes, with which

Mr.

those

cency.

our

have

may

for money:

"During the recent session of Congress,
forces

that, being in

have the stability that gold alone

responsibility for leadership of a free world"]
strongly organized and, on a dozen fronts in
out of
Congress, are driving to destroy the

and

stand¬

ard could inflationary government

■

of

Homestake

grind; but there

world.

people.
In

ex¬

public

disguised

grains of fine gold, in
1792, which

the present writer is in full accord.

can

"These forces

standard

brake

debt

:

Time to Reconsider!

the

support is lowered accord¬

can

puts

drawn

is

decreasing

<'

of

Laughlin

Gold

ex¬

that

limitlessly

in value.

"Chronicle," Aug. 6—
a college
group
Donald H. McLaughlin,

turbing to

be,

we

a

money

by

fi¬

in the is¬

the gold-mining business, Mr. Mc¬

dence

sooner

the

long and dismal

a

with

real

secured

The

nation is made,

our

it

the

for

eventu¬

adjustment in

easier

periment

it

ex¬

change it for the money-material
itself.
As they do, the gold re¬

it,

real

a

been

appearance

the "value" of

presented

It is just possible

more

a

practicality

the

for

support

Frederick G. Shull

the

Mr.

has

effecting a slight change
Mining in 4he inter-relationship of gold
and
silver (from "15 to one" to
Company
(a gold-mining com¬
pany), San Francisco, California. approximately "16 to one"). This

delay in returning to the

and the inflation that has
already
occurred cries out for measures

A

by

which

greatest monetary ex
perts, Alexander Hamilton, who
played the leading part in
setting-

this

President

valid argument

no

of

by

the

America's

address before

an

gold standard.

further

to

sue

that the only way to preserve the
value of the dollar is to return
to the

contri¬

bution

economist,

payment";
and
it
was
similarly recognized by one of

The

latest

monetary
recognized by

tended

at

fixed

money

world currency
see
that whatever

to

com¬

under

on

discussion is

has

definite

There is noth¬

greatest

bankruptcy

"redeem-

that

unit
a

sound

was

world's

pedient

restored

value.

of

Adam Smith,
nearly 200 years ago
when he
so
rightly said: "The
raising of the denomination of the
coin has been the most
usual ex¬

gold,

ability,"
demand,

monetary economists has almost
unanimously endorsed it, and var¬

to pay

sound

to

A large committee

ious of its members have

its

fine

.a

of

and

gold standard

of

at

$35

that

principle—it

claimed value
of

monetary
terms

in

new

the

presently

of it are some of the ablest minds

has

generations an irresistible com¬
pulsion leads them to depart from

the

ing

firmly

ounce

in

36-inch yardstick.

should
at

set

weight of gold, it can no more be
changed, in all honesty, than one
could
change the length of the

presented from time to time

fixed

that

movement

The idealists who urge a world

government and

bank

gained momentum, and back

smaller

few

the

years

return to

a

ex¬

the fate of civil¬

seems

nations

trans¬

and

inflation

more

nancial life of

Irredeemable
been

much

so

for

to

operate, but that standard would
away inflation.

be

can

over night.
Latent
situation is the possibility

this

In

a

fault of gold or the gold standard
but

it

currency

facts

nation's

a

been

to whether

as

our

banking author¬

without

or

part of
into

of

the "value" of
the American

gold

there
due

cons

be

excessive

an

large

formed

following

should
be
kept
clearly in mind: Once the "value"

The old
saying, "there are two
sides to
every question," is espe¬
cially apparent from the pros and

inflated,

mously expanded the money sup¬
ply and managed the debt so that
a

and Financial

Chronicle:

the

thing in all economic transactions.

fluctuations

With

highly

our

Editor, Commercial

can

deposits almost

changes in supply and demand
for goods and to the credit
poli¬
ities.

they
than

in

to

cies of the central

but

wrong

find

other money standard can
Nor does it assure a stable

no

by

returning to the gold
standard is that even though we
may be eminently able to do so
many other nations cannot, afor so
much

But

of

managers

it,

err

can't

prevent

and

of

use

more

Arguments for Higher Cold Price

the

of

may

depressions.

standard has limitations.
booms

hands

money could become the least
rather
than
the most
desirable

buy goods and investments to

>

the

irredeemable currency have been.
For many years these latter enor¬

of

all

in

Sometimes they

dollar

sound

couldn't

greatest

can

turn

a

the

away

the

in

can

drawn

savings

oblige it to avoid waste and ex¬
travagance. It would have to fi¬

of

advantage, and it is
from those where it

into

govern¬

people's

This

currency.

rate

investments.

on

attracted

and

ment

of

would

money,

instead

nations on
the gold standard, the free move¬
way,

transformation

the

be

people.

the currency supply

upon

preventing

Shnll Answers D.H.
McLaughlin's

same

money that was already in exist¬
ence.
The gold standard operating

lower

LETTER TO THE EDITOR:

age-old

that the gov¬

mean

could

of money that aren't
really money
at all and can't
be, in the

""

,

money supply, raise interest rates,
and lower prices.
In the second

the addition to its gold
permits an expansion of

gold reserve to sup-

it.

This doesn't

21

Chapel Street,
Haven 15, Conn.,

Aug. 12. 1953

Financial Chronicle

The Commercial and
22

and

ernment

Continued from
y

jirst page

slumps and try to iron some

ness

Outlook foi Business

This will be a neat trick,
performed. Anyhow, the end
seems
to justify the means; and
there
is' ground
for belief that
much can be accomplished.

cycle.
if

And Investment
ness

the end

of

Outlook

Business

outlook

think it

for

there

reason¬

as

same

So

let's first take

the

end

Ever since

World War II,
economists

of

looking

been
Year

most
have

orthodox

the

for

depression.

a

bearish

Full

Monetary

(5)

Rise, in per capita produc¬
tion and buying-power.

forecasts

in

was,

adherence

regularly

my

by

What

perhaps

Well,

off

that

had

we

such

In

period of business boom.

within

inflation
bounds, the public
the

small

one

zation and the

Demobili-

area.

business

formance

holding

is

at

far this

a

high level, close to record
after allowing for the
usual vacation declines and shutdowns in some industries.
With

it may,

as

that

must

we

we

the

mind,

the

given

or

This

TRUCE:

KOREAN

perma¬

V-E

what

V-J

and

flict.

It

is

in

truce,

1918

or

in 1945, does

days
of

not mark the end

ef¬

Definitely planned

Armistice

the

unlike

being made by the gov¬

are

again

depression in the

new

it

call

a

States."

United

all

at

the

to

way

old

the

allow

we

"Never

said:

Eisenhower

General

last fall,

Presidency

shall

campaign for

the

In

this.

realize

idea

dollar"

"sound

a

will.

forts

bogey is deflation. The mere
of deflation is the poli¬
nightmare.
Republican
leaders
as
well
as
Democratic

periodically be vic¬
Man Depression.

public's

of
has

we may

tician's

people

a

as

against

prosperity,

you

BUSINESS

FOR

OUTLOOK

(Sales, profits,

of the

for

13

4 times sales

was

largest companies in

of production

expansion

Rising earnings and dividends

seem
in

will

fall

half

below

the

ther downtrend.

lower for

all-time

assured.

third

world con¬

a

only the end of com-

most

Earnings for full

see

fur¬

a

year may

result of the increase in the prime lending
rate and decrease in reserve requirements which

as

a

occurred

Some

late

too

rise

in

to

benefit

dividend

half

first

payments

may

to

indicated

Some

for

second

drop for 1953

may

supplies will

aid

in

strong

decline

in

half.

The

case

mainly

stands

on

Therefore, rise

rapidly being satisifed.

production and in-

housing starts^ is

Total

be about 8%.

said,

will fall.'

omy.

that

indicate

encouragement

close

parallelism

in their
is

businessmen

continue

ip general, that is, the
fellow's business, is going

Unit

dollar

sales

volume

now

will

ELECTRIC

will

and

continue

drop,

some

POWER:

will

maintain

will

be about

due

to

to

dividend

Revenues

expand,
weakness
cuts

are

and

earnings
Net profits for 1953

uptrend.
10% better than last
dividend increases will occur.
an

Some

year.

year

-Full
a

year

high total
for the first half. Unfavorable
comparisons seem
probable for most major appliances.
Despite
some
decline in earnings, most dividends will
continued

at

present conservative rates.

PRODUCTS:' All kinds of food will

high demand.

and dividends

ond

half

first

half.

INSURANCE:

re¬

Earnings will be good,

'
.

will

'

Industry earnings for the

in the

catastrophe. The
investment income shouid re¬
dividend increases.

continued rise in
some

year




are

they know the other fellow s.

ward

general

believe
of

rest
a

is

this year

better

be

trending
be

cars

and

good.

Net income in first six months up

previous top

Some dividend

of

Full year's net

million

$902

TRADE:

Gains

durable

in

goods.

ment will be limited

Tire

RUBBER:

may sur¬

in

set

1942.

increases coming.

half unlikely to be equalled

in

by

sales

during

first

in second half, es¬
Earnings improve¬

competition.1

shipments

in second

half

will

recede, along with auto output. Industrial de¬
mand, aided by growth in chemicals and foam
rubber, should result in record high sales vol¬
ume.
Profits will be higher.

to 10% from first half.

earnings comparisons will be
ever,

because

a

Year-to-year

good, how¬

very

two-month strike curtailed last

year's total results.

Dividends will hold.)

TEXTILES:

Cotton

thetic fabric

weavers

price

situation

mills

will

do

well.

Syn¬

face improved demand but

erratic.

Earnings

will

rise

in

should

be

second half year.

very

away

to see now with any

for the

sales

margins

on

margins-

on

costs.

up-

volume, and some will be made
valuable by having the payment

January when

in

fall

dates

on

of

cigarettes

standard-size

king-size brands

lower income taxes will apply to
receiving them. Next
is

year

vari-

:

,

Congressional electioit

STOCKS

CONSERVATIVE

15

a

Washington will do its best

year.

Objective—Assured Income, Plus

Preservation of Capital

.

Dividends

-

Indie.

%

Price

Since

Rate

\ield

155
56
Consolidated Edison, N. Y
40
Continental Insurance
73
Corn Products Refining——72
Diamond Match
35
General Foods
56
Manufacturers Trust
65

1881
1899
1885
1853
1920
1882
1922
1909

$9.00
2.80
2.40
2.95
3.60
2.00
2.65
2.80

5.7
4.7
4.3

Stores--.
—Murphy, G. C
National City Bank, N. Y
Pacific Gas & Electric—l

31
48

1911
1920

1.80
2.00

5.8
4.2

53

1813

2.00

38

1919

2.00

Philadelphia Electric '.
Southern Calif. Edison—^

32

3.8
5.3:
5.0
5.4

brands.

are

lower.

Profit

Profit

cigars will be hit by higher tobacco

&

Tel.

American

Tel.—

Co.

Borden

—

May Dept.

37

„

75

(Wm.), Jr._

Wrigley

Objective—Good

1.60

1907

2.00

1913

4.00

Plus

Income,

V

Stores

Allied

;

-

Co: of

Anaconda

Copper

Ohio
Radio

Steel
Pacific

Southern

Railway

Texas

Pacific

Coal

Air

Lines——

% *
Yield *

7.7 *
3.1

60

3.00

5.0

:

—

57

J.00

m

—25
50

1.00
4.00

5.3

4.0

45

3,00

46

2.50

40

1.65

6.7
5.4
4.1

27

1.65

6.1

27

1.50

5.6

T

&

Indie. Div. •

:—L—

Corporation of America

Southern

Price

1.65

—

.

Republic

-

29

—I—

Ward

Oil

5.3

I

3.00
3.10
2.00

—

Cements

/

32
69
22

.---

(B. F.)—___——
Grumman Aircraft EngineeringStar

4.0
5.0

$3.00
1.60

America

Goodrich

Lone

5.8 ;
5.0
6.0

39
51

——i

—

Aluminum

.

-

.

Appreciation

./
STOCK

,

1902

BUSINESS MAN S RISKS

United

i

new

more

the outlook

Transamerica

/

a

Tax relief will be

impetus.

clarity, investors

current half year in

Montgomery

Earnings

good, especially for companies best able to

sustain

year

at hand.
Year-end extra
dividends will be announced in

mr-aislCMoTef matter? too-far

Production in second half may be down

about 7%

the

closer

little, but will be better
generally expected, much
than the stock market is

than

Armament

downward.

35% from year before.

pecially

expect

to

reasons

Paid

Orders for

EQUIPMENT:

RAILROADS:

pass

of

end

November-December)} there

(say

business for
is going to

STOCK

business will

the

Toward

than

' I

secure.

should compare
favorably with last year
absence of some unforseeable
in

earnings

year's

TOBACCO:

sult

dqmand rose
earlier, far ahead of expecta¬
will* show rise of about 6%

year-to-year rise of 3.8% in 1952. J3ec-

STEEL:

ELECTRICAL APPLIANCES:. Factory sales of
television sets should drop below the

in

from

of

correct.

be

Some comments on

In second quarter,

PETROLEUM:

RETAIL

likely.

main

1953 will exceedf all
Earnings will be sat¬

for

except 1951.

isfactory.

6.7%

both

course,

cannot

easing of demand in second half,

production

years

locomotives

hormones, vitamins and antibiotics.

earnings

FOOD

total

RAILROAD

Dividends should stand up well.

of prices of

be

but

other

Of

views

men

sag

the

dustrials (Standard & Poor's) are
now
only 8% under their 1953
high; Rails, 7%; Utilities, 5%.

fair to assume that these
know their own field better

than

into

sales prospects fall.

on

It is only

*1

well

upward

New highs in average prices
own line of business; yet
before the year is out should not
a widespread belief
that be difficult to attain. In fact, In-

decline.

the

between

pected foreign developments, the
broad trend of the market should

Recent surveys

most

optimistic

are

New

:

PARADOX:

A

better

Some

uptrend.

DRUGS:

Lower

Despite higher costs

earnings are expected for copper com¬
panies. Lead and zinc prices may rise, but earn¬
ings and dividends will be under last year.

year-to-year

building

ago.

year

Improved steel

non-residential

Farm

cautiously,

proceeded

has

lies^ in the
minor
To argue that a cut in defense
price movements and changes in
expenditures points to a recession trading volume, and in the apoverlooks several important and pearance
of new leadership in
very
desirable by-products, not various sections of the list. Rothe least of which is the better tation of leadership is an almost
prospect of peace, and along with sure sign of a strong market.
J.
it, lower taxes and a freer econBarring unfavorable and unexis

it

so

comes

to

good

versus

ex¬

Price increases for many prod¬
provide a bulge in dollar volume of
sales.
However, profit margins will be held
down by higher wages, interest costs and
depre¬

but

as

be

will

ciation.

normal

for rethe bethat defense requirements are

other

1953

implement earnings will
Profits in industrial machinery about

be lower.
same

tions.

CHEMICALS:
ucts

has been strikingly
seasonal expec-

year

go,

cession

these

MACHINERY:

results.

pected.
BUILDING:

HALF

dividends)

PAPER:

Bank
earnings expanded moder¬
in the first six months and should gain
substantially in the second six months

more

SECOND

be

companies.

BANKING:

ately

—

NON-FERROUS METALS:

quarter

high record set in

Fourth quarter will

year.

spring.

next

AUTOMOBILES:

first

Plans call

1952.

into

Production

Pdr-

market so

four

only

left

government

real

by Old

me

nent

For 14

backlog

stock

tations. As has been customary,
first
quarter
lows in
average
prices were broken by a modest
amount
in
the second
quarter,

heights,

business

Recent

ASPECTS:

the

of

the

near

very

there

AIRCRAFT:

-

Investment Outlook
TECHNICAL

PRODUCTION:

INDUSTRIAL

•

11

,

General

the

in

„

meaning of the truce cannot be
appraised until the political conference set for the fall has been
held.

briefed

are

The real

will not follow.

version

industries

ous

accompanying table,

problems of recon-

RECESSION?

be certain.
accepting re¬
for full employment

thing

one

prospecjt

program.
must face

goal of full employment,

protracted

a

economic managers

our

keep

Of

Someone has said
the essence of

rebelled
we

costs

History may yet repeat it¬
self, but in that process the pat¬
tern has changed.
Never before

bat in

nature.

in¬

of

is

employment

reality

fetish

Korea.

have

that

timized

the

then

and

full

that

ended.
It just
along camd

really

never

cooled

grounds

any

have

excuse

may

we

the

on

inflation

the

happened

time to so mislead the economists?

them

If

Any

us.

that

Be

collapse
this

a

take

nally

to

followed

business.

redistribution

Wide

comes.

the
old
cycle theory. It is said that every
big war causes a boom which is

opinion,

war

(2)

(6)

The main basis for these peren¬
nial

in

Thursday, August 20, 1953

.

turned gradually upward. Performance was so favorable imlief
mediately after the truce- news
on the downgrade, and that capa(7) Upsurge in population sponsibility
that the New York "Times" carmust
never
admit
that
it
has
(1950s).
city to produce is large enough ried a commendatory editorial on
adopted inflation as a national to meet all requirements, military the stock market, an extraordiNo one knows for sure where
policy. Always it must appear to
and civilian;
that consumer de- nary procedure,
our
"New Era" program will fi¬
be fighting inflation, although the
mands
for
durable
goods
are
To date in August, the general

dustrial activity, in new building
construction, in capital expendi¬
tures by corporations, in factory
employment, in earnings and dividends, in stock prices, etc.
i

■V

few:

a

ucts.

year, they have pre¬
substantial decline in in¬

a

besides the alternating
hot and cold wars.

(3)

after

dicted

factors
of the 1940s

new

employment policy.
flexibility; no
gold standard.
(4) Tremendous strides in tech¬
nology and in new prod¬

together afterward.

two

CYCLE THEORY:

the
of

.

and one-half months The early June lows established
the full year 1953 is on' increased volume of trading
modest
certain to set new were successfully tested sooh afmay be practically
getting a bargain.
The benefits high records in both volume and terward. Volume dried up and a
normal corrective rebound develand gains through
full employ¬ value of goods and services.
ment and steadily rising standard
Federal Reserve Board's index oped.
A secondary reaction in
of living may far
outweigh the of industrial production is prob- July demonstrated that the June
accompanying losses suffered ably around 230-235, where 100 is base was solid—in all three mam
through erosion of the value of the prewar level, 1935-39. A 35- groupings
(Industrial, Railroads
money and most forms of savings. point drop, or 15%, would repreand Utilities).
:■' >;
No one knows.
But this is what sent a very sizable shake-out or
A final and critical test of the
we
face and we
must recognize recession. I am not predicting any summer market's fabric came with
it and try our best to interpret its such spill in 1953. But I do want
the news - of the long-awaited
meaning for our future.
As of to emphasize that even after such truce in Korea. And the market
now, it appears that most, if not a
downturn,
production would passed with flying colors. The
all, of the fully developed tools in still be about double the prewar june base again proved to be
Washington to avert or minimize rate, average for five years end- solid. New buying came in above
depressions
are
inflationary in ing with 1939.
!
those earlier lows, and prices

of

just

of life has never been
But neither has defla¬

way

can

A managed economy.

(1)

a

tion.

With all due re-

several

were

state

To

reference to the
then try to tie

without

ness,

activity

economist friends, I
should be pointed out that

elements

stock market, and

as

our

1950s

and

look at busi¬

a

Certainly, such a precedure has
evil effects, its costs. Inflation

its

history.

in the economic scene

is not necessarily the
the outlook for business.

able limits,

or

normal

-

A NEW ERA?

market, within

stock

the

the

that

conviction

super

all of our earlier

indicated, it is my sp'ect to

has
cal¬
five

a

less, was the usual successful.

years, or even
in

alreaay

Four

normal.

culated

of 1953.

lirpit

As

what is called

above

held

busi¬
activity is to fall off toward

production

industrial

years

low and in po¬

sition to rise even if general

of

roughness out of the business

the

market relatively

by business leaders
depth of any busi¬

to minimize the

•

■

k

(642)

Oil
—T—

T

9.4
4.5
9.1 :
5.7 ;

;

8.0
.

Volume 178

Number 5248

The Commercial and Financial
Chronicle

...

(643)
to

maintain

a

climate

prosperous

terest

rate

Tor the voting public.

lever

TAX CUSHION: Elimination of
EPT at the beginning of 1954 will
be a development of major im¬

tempts

portance to companies which are
now turning over the bulk of their
earnings to the Treasury. Under
the present tax, all earnings above
certain norm are taxed at 82%,

to

will

in

use

to

keep

progressing
flation

be

powerful

a

the

future in

inflation

at¬

from

too

rapidly, or de¬
engulfing the econ¬

from

the

ings

70%.
ion

To

overall tax

an

tax

sider

a

stock

now

at

the

EPT

ceiling of

how great the cush¬

see

from

relief will

be,

which

on

con¬

taxes

are

70%

ceiling.
When
elminated, net earnings

is

before taxes could drop 25% and
.yet the
net
profit after taxes
would

rise

down

the

the 64%
stand

20%.

scale,

further

stock

a

drop in earnings be¬

fore taxes and still show the

final

net

before.

as

CUSHION
Based

in

now.

tax brackets could with¬

25%

a

Going

on

FROM

same

C

between

stock

bond

and

yields

well for the price trend of

augurs

less

of

The

price-earn¬
than

10

for

less

than

not

for

rails

continue.

As

seven

should

Bank and Insurance Stocks
1

grows these ratios will rise
with prices.

SELECTIVITY:

CONFIDENCE: The confidence
factor is really the key to the
stock market.

investors

The ratio at which

By

along

coming rise in
following:

my

for

opinion

are

the

tem were 5% higher in the first half of 1953 than in the similar
period of the previous year, according to a recent news release -of

Department Stores

increase of $22 million.

Electrical

an

the

dividends

earnings themselves.
The 6% yields now available

industrials

evidence

are

conservatism

of

the

stock-market.

I

time

goes

investors

more

and

on,

believe

Equipment

months of

Paper

Oil

be
the

&

without

EPT,

Gas

and

under

represents

Utilities

second

column,

of, 25%

net

substantial losses taken to minimize taxes, the impact of the excess

profis tax

The

a

before

Over-All

who

+12.5
5.9

60

—10.0

58

—14.3

gratifying six

earnings reports to those

a
constructive attitude
the group as a whole was
of the small
Chicago Great

Western.

5.3

—

most

take

that

0.0

62

the

toward

+

64

of

should

Results

be

for

calculated

the
to

period

confound

and repudiate that
segment of the

has

also

been

tensive

engaged in

property

an

of

rehabilitation

gained by

This has involved, and
involves, heavy maintenance

expenditures.

way

Even

This

with

is

high maintenance
being estimated that

now

the company may earn as much

steel.

of

CASE
of

case

pany

tax

OF

GM:

General

Motors,
apparently in

now

bracket.

-half

Consider

year

Net

in

top
first

share.

per

.Next year,

with taxes assumed at
52% rate, net before taxes could
shrink almost 40% from recent
a

levels, and yet
would

stand

final

net

about

income

unchanged.

budgetary

that

the

have

control

been

managements

com¬

a

the

income

$3.51

was

the

strict

tems

railroad

every

in

the

by

virtually

the

The performance of

Western

adopted

of

in

sys¬

country.

Chicago Great

first

half

of

the

current year

should go far toward
such fears.

dispelling

and

cleaned

are

of

Chicago
Great
early in the year

struck

stayed

for

out

about

six

mately the
in

other

be

STOCKS

the

tax

the

most

factors

obvious

equal, it

are

that

BUSINESS—It

vs

cushion

which

practical

is

provides

basis

for

ex¬

level of

a

earlier.

year

parisons

with

like

from
Rate

1952

the
com¬

months

pecting the stock market to rise were favorable during part of the
against a sag in business. How¬ period so that the decline in
gross
ever,

it

jmost

of

should
the

be

time

repeated

in

recent

the market has moved in

that

years,

opposite

not

was

nearly

sharp.

so

Nevertheless,

for the six months

revenues

23%

below

those

were

for

the

swings in produc¬ opening half of 1952. In the face
reason may
lie in the of this unfavorable comparison,
discounting function of the mar¬ net
income
was
virtually un¬
ket. For example, the six months'
changed.
Earnings on the com¬
in

cember

stocks

from

occurred

moved

up

decline

in

to

new

stocks

discounting

De¬

business

heights.

The

by way of
drop in
when the drop
was

expected

an

business.

Then,

turns

to

out

last

while

have

been

fully

or

over-discounted, the market will
be

rising

against

the

trend

in

production.
INTEREST

RATES:

Ability of

Washington
authorities
move
quickly when necessary
in

the

shift

to

is

in

policy on
Starting
of curbing credit,

credit and interest rates.
with

a

policy

the Reserve Board has had to
verse

itself

in

the

1953

cents
year

to

enable

the

ury
to finance its huge
To be sure, interest rates

re¬

Treas¬

deficit.
are

still

As

the

$2.34

year
the
company
had
planned to issue $6 million of new
collateral trust bonds, proceeds to

bfe

in

used

part

to

bank loans and

a

few
a

carrier,
has

at¬

high degree of efficiency
recent years.
By last year it
a

tio

transportation ra¬
31.'4 %f. well below the in¬

in

of

the

47.8%

war

year,

pressive
far

ratio of

1946.

One

aspects

this

year

the

of

and

first

of

the

a

over

post¬

the

pay

is that the trend

toward

greater
operating
effi¬
ciency continued.
For the period
through June the transportation
was

cut

a

full

point, to
some
analysts

low, and ought to
higher in the years ahead. 31.9%. There are
who feel that for the full
year
However, I do... not expect any
the company may enter that select
early jolts from that direction.
group of railroads with transpor¬
Believe the
move

process

a

a

gradual

long

one,

period

will be made

spread
of

time.




out
The

over

in¬

tation

ratios

below

30%.

To get the fullest benefits from

its

new

diesel power the company

were

15.2%

equal to

in the

same

final net earnings

losses,

and

for the

period

considerably higher.

interesting implications

as

to the

borrowed

was

on

followers
that

of

there

the

is

excess

chance

in the

is

common

earnings

mediate

the

place, there

sizable

income

that

into

for

tax

similar

These

facts

tax

July 17, 1953.

of

34

It is the

proposes

In

bank can maintain current income yet
f

will

depend

how a particular institution

upon

any

(Special

of

this

work

as

well

as

to

with

giving careful attention to the foregoing

operating throughout the banking field.

^vent indications

The

Financial

Raymond

Company,
Bank

are

that operating results will be

Plunkett
Chronicle)

First

OUR

MID-YEAR

COMPARISON

&

ANALYSIS

17 N. Y.

J.
Plunkett
&
American State

the

and

equipment
and

and

for

development

(Special
,

to

The

Financial

Chronicle)

MIAMI, Fla.—Philip I. Schaffer

has become associated with Oakes

ex¬

&

ex¬

He
vis

a#

City

Bank Stocks

Building.

With Oakes & Co.

offering

for

that

(

Will be sent on

proceeds

ploration
penses.

may even be

/

*

,

WAUSAU, Wis.—Dr. Walter A.
Richardson has become affiliated

and

acquisition of necessary Jftachinery

It

point to be kept in mind is that each individual report

With Raymond J.

be used for certain rehabili¬

tation

Indeed, there is

already undertaken substan¬

silver.

The

A

switching

was

owner

gold

directly deductible from

favorable.

County, Colo., and

copper,

a

tax.

necessarily mean that such tax savings will be

and the general trends

to explore the claims for

molybdenum,

a

designed along these lines.

will have to be analyzed

patented mining claims lo¬

cated in Routt

to make

Thus, by taking losses and

accounting for such transactions.

savings.
The

changed to Colorado Mining Corp.
on

are

ways

earnings reported to stockholders may be lower in spite of such

Copper

name

effected, they will incur

One of the easiest

transactions in the last half.

Much will

handles the

The corporation was formed in
Delaware on March 25, 1953 under

which

are

30, 1953.

institutions

many

..reflected in larger net operating earnings being reported by banks

generally.

Corp.,

|

doubt about the likelihood

some

evidence that some institutions have

Co., Inc., New York,
is offering "as a speculation" an
issue of 299,000 shares of common
stock (par 10 cents) of Colorado
Mining Corp. at $1 per share.

Mining

a

were

expected to result in the banks engaging in

are

substantial security

inter¬

Mining Stock

Colorado

was

savings

purposes.

securities,

tial programs

of

reflected

keep from paying E.P.T.

&

name

was

losses for the final six months

as

saving is to take security losses which

Baruch & Co. Offer

the

tax

liability for E.P.T.

This does not

Baruch

To some extent this

earnings has continued to gain and

that unless

find

now

terp.

Colorado

important factor, it

an

that the'excess profits tax would be continued after June
The rate of

stock participa¬
over

becoming

effort will be made to minimize the liabil¬

expected to be considerably higher.
In the first

whole thing may be cleared
before the end of the current
year, thus opening up the possi¬
in

point in their level of earning®

operations of the first half when $50 million in losses

the

tion

are

a

reported. The amount to be shown

up

bility of

reaching

profits taxes

serial

a

banks

ity of the different institutions.

situation believe

good

a

more

certain that every

seems

factory, however, and the project
was
dropped.
Instead, only $4
million

I

where

off serial

ment of the full preferred arrears.
The bid received was not satis¬

im¬

showing

taxes

somewhat

was

Thus had it not been for the extraordinary

ago.

year

foregoing has several

With

part to bolster

a

dustry average, of 36.9%
phenomenal improvement

The ratio

Pre-tax earnings for 1953

year.

working capital. It had been ex¬
pected that this would allow pay¬

$2.27

realized

fully dieselized
Great Western

a

tained

so

other

to

interim, down

from

ratio

abnormally

and

amounted

earlier.

Chicago
in

sinking

funds,

reserve

had achieved

the

seen

before

mon,

pre-tax basis.

a

approxi¬

was

general trends that may prevail in banking in the last half of the

The

decline

only slightly less in 1952.

charges for

The

relation to capital funds

in both periods being equal to approximately 8%

same

would have been

direction to the
tion.

offset, in part, by an increase in operating

was

the capital accounts compared with

of

period of

—

30%

*

operations*

•

and

on a

16.8%

work

almost

of income, including

sources

this

weeks.

declined

1953

better

basis
$2,750,000 to satisfy the
Reflecting this prolonged
old bank loans and
$1,250,000 for
stoppage, the influences of
GM is in
which naturally carried over for working capital. In the meantime
better
position, / earningswise,
a payment was made
against pre¬
than another company not now some time after the men returned
to work, car loadings of the com¬ ferred accruals, reducing the ar¬
paying excess profits taxes.
rears
to
$1.52 J/2 a share.
Close
pany for the first half of the year
Where

should

Other

of $126 million, leaving the pre-tax earnings higher by

The rate of earnings in

Earlier

up.

against $1,105 million in 1952.

as

$128 million.

.

Employees
Western

lations

the

for

as

community
that
is $6.00 a share on the common this
should be observed that the
constantly complaining of the in¬ year, before sinking and other
cushioning effect of EPT will stability of railroad
earnings and, reserve funds. The rehabilitation
apply mainly to selected indus¬
basing their conclusions on some program should be completed
by
tries
and
individual
stocks
but past
history, predicting that with the end of 1953 or early in 1954.
only to a lesser extent to total any moderate decline in traffic
Tapering off of this work should
corporate profits.
Industrial and
revenues
railroad
earning logically add significantly to the
groups of stocks which stand to
power will fall apart.
There are earning power of the company.
benefit most from the
ending of many investors and speculators
^No dividends are being paid on
EPT
are
automotive, chemical, who are inclined to disregard the the common and none can be
paid
electrical
equipment,
industrial vast improvement there has been until preferred dividend accumu¬

■machinery,
metal
fabricating, in recent years in railroad oper¬
paper,
railroad
equipment and ating efficiency, and the efficacy

sub¬

was a

income

additional $83 million, so that the total increase in

an

large gain

expenses

investment

It

Loan

earnings amounted to $254 million.

gross

continuation of
it

income from loans.

in

interest from U. S. Government securities and service

ex¬

program.

still

for the large gain in earnings

reason

expansion

increase of $171 million.

or an

One

months'

+20.0%

68
66

large number of banking institu¬

a

period amounted to $1,276 million

Chicago Great Western

Inc. Bef. Taxes

70%

evidently felt by

primary

stantial

Change in Final net,
with 25% Cut in Net

Tax Rate

was

tions.

taxes.
Present

which the banks realized sizable losses for tax pur¬

on

An interesting point in this connection is that despite the

poses.

of

assuming

in

Supposedly the large increase in losses

reserves.

primarily transactions in government and municipal

securities

currently in the tax
brackets shown in first column
below would
change as listed
in

excess

and transfers to

companies

decline

a gain of $128 million. This very sizable gain was
increase of $56 million in the provision for income
profits taxes and an increase of $50 million in losses

an

Railroads

RELIEF

income

net

million as
in the same period of 1952 or an
Actually the earnings before taxes made

million

$414

1952,

offset by

Natural

52% corporate tax rate

a

with

even better showing.
Earnings before taxes increased by 16%
amounting to $916 million as against $788 million in the first six

Food

will

stocks

common

of

Insurance

in

The net profits for the first half amounted to
$436

Electronics

on

present
that as

confident

more

the Federal Reserve Board.

Banks

or

Bank Stocks

Net profits of the member banks of the Federal Reserve
Sys¬

compared

than

—

'

the

Chemicals

of

the

stocks

JOHNSON

E.

fa¬

Air Lines

an

good

most

willing to capitalize
earnings is more

and

important
stocks

of

groups

H.

This Week

The

element in the value

are

dividends

vored

*

confidence

stocks.

security of

TAX

ratios

Meanwhile, the wide spread long

omy.

Administration.

conservative

typical industrial stocks and

a

subject to

new

present

2£

Company, Ingraham
was

Co., Inc.

Laird, Bissell & Meeds
Members New York Stock

Exchang*

Members

Exchange

American

120

BROADWAY,

(L.

A.

Building.

formerly with J. A. Ray-

request

Stock

NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

Bell

Teletype—NY

Gibbs,

Manager

1-1248-49

Trading Dept.)

Specialists in Bank Stocks

The Commercial and
24

Financial Chronicle

.

.

Thursday, August 20, 1953

.

(644)

ru

share

Form John R.
The investment

R. Boland is now

Boland Co.

business of John
being conducted

This

Mutual Funds

und^r the fii;m name of John R.
& Co., Inc. Offices are
at 30

COMBINED

THE

million

two

about

75%

about

States

tons,

free

probably

"With

five

over

"Perspective"

of

issue

curtain

issued

by

management

de¬

partment of Calvin Bullock.
Between 1939 and the peak

war

investment

the

of 1943 primary aluminum
production in the United States

year

Canada

and

247,000

from

rose

1,416,000 tons, the sharp
increase reflecting heavy demands
to

tons

for

1946

"I suppose one

1,443.000 tons in 1952.
is estimated

It

prices at which stocks are
with great emphasis on
the degree to which they have
advanced or declined in price.
I

"Per¬

says

25

about

for

traded,

that

know

and

into mili¬

of

many

of the financial writers and

and

30%

to

than half goes

more

no

The other 70% is
out to almost the
whole range of civilian industry,
including such big consumers as
the construction, automotive, elec¬
trical appliance and packaging in¬
aircraft.
being fanned

tary

STREET

XfCkivm buiIlock
JNEW YORK |§§

me a

no

obligation please send

prospectus on

Canadian l('und.

"But

comment

must

the

on

Chemical

Aluminium

and

Ltd.,

of

assured

constant

focus

I

these

Hugh Long Appoints

is

demand

revision of
and Figures."

on

its

com¬

folder,

;

of ,Forest G.
Vice-Presi¬
Wholesale Representar

Appointment
as

and

dent

Metropolitan

in

tive

Resident

York

New

certificates

by

aged
Co.

con¬

30,

$10,-

were

amount of

de¬

outstanding

bentures, and excluding unamor¬
debenture
costs of >$6,670.
This

with total, net

compares

sets of

$11,294,763

as¬

Dec. 31, last.

on

Net asset value per share at the
half

year

$15.43

was

$16180

six

investment

dividends

and

qompared

months, earlier.
income from in¬
securities

on-

owned for the period was
No

$189,545.

available due
change in the company's re¬

comparison

to the

is

porting period in 1952. ;">■

Sl.OOb of

/'Asset .'coverage ^per

debentures,
excluding ; un¬
amortized
financing
costs,
amounted to $5,625
at June 30,

3%

rep¬

Interest

on

amortization

G.

Forest

Martin DeTamble

Thorne

30, 1953, compared with $150,947,- and the State of
NewJJersey has
014 on Dec. 31, 1952 and $134,108,been announced by Hfctgh W. Long
715 on June 30, 1952.
Net asset and
Company, Inc., Elizabeth, N. J.
value per share at the half year
Mr. Thorne joined tfr£ Loiig or¬
due to a favorable price relation¬
was
$18.57, compared with $20.58
ganization in 1947 as^epresentaship with other metals and also
on
Dec. 31 last.
tive in Chicago and was named a
because of the many new uses
During
the
six
months
period
Resident
that
have
been
found
for
this
Vice-Presidgpt in that
the number of shareholders in¬
area in

and

debentures

costs

7.6

than

more

Management-

Investors

as¬

1953

terest

the1

Inc., were $145,929,233 on June

by

net

reports

June

1953.

as

Cor¬

managed

Bullock,

on

Net

underlying values which

ownership

company

Calvin
sets

with

ownershio

American

GENERAL

&

l isted, closed-end in¬

a

tized

price

daily

the

CARRIERS

poration,

cipal

Thome and DeTanthie

NET ASSETS of Fundamental In¬

for

far

million

just

530,340 before deduction of prin¬

resent."

seems

as

$261

has

Fund,

a

vestment

vestors, Inc., a mutual fund man¬

adds that

normal

rr

in

change

attention

of

of

the

and

tomorrow'."

'better

to

superficials

"Perspec¬

demand

included: 9.9%-of net as-

explain the
day's change. This

for that

tends

increasing place in

an

world's

the

common

groups

market prices but also

Corp.,

tive" asserts that "aluminum

industry

stock

Other

only

not

day They

mental

future

was

times

earned

the

during

period."
Noting

that

half

the

at

year

figures give
proof as to the tremendous strides
that aluminum already has made
production

cerned,

Address.

City

r

versatile
"Like

tion,

COMMON STOCK FUNDS

The Keystone Company
50 Congress Street, Boston 9,

Please send

Funds.

Mass.

technology and 'know-

further

The

for

than

principal

creased by

situa¬

aluminum

of

first

industrial

outlets

cers

BEFORE

ation of Public School

nationwide

signed by Wm. Gage Brady,

both of these offi¬
elected during the pe¬
as

were

in

Investments
natural

48%

aggregated

Name

Address

companies

Fundamental

of

Investors' assets.

a

company's

the

to

holdings during the half year in¬
cluded Bendix Aviation, Canada

of school ad¬
meeting at Teachers

only
tural
ment
to

enterprise system

under

one

and

that

could

"The

which

the

educational

teachers

the

folio

included

cul¬

Creole

Petroleum,

as

develop¬

alternative to the
industry by our
people," he stated, "is its own¬
ership and control by the State
which, as we so well know today,
tends

only

to

our

turn

Chicago

into

educators

□ A balanced retirement
program—a

elected Vice-Presi¬

been

ters

105

at

Salle

South La

Street,

balanced

Chicago.
Mr.

has

DeTamble

associated

alumnus

of

been1

mutual funds.

the

of

in

1929

Hornblower

with

the

Weeks.

and

Bristol-Myers,

Merck

&

was

with

associated

American

□ flexible
vs.

months

increase,

Fund's

semi

boosted

total

Fund

assets

ended June

The

to

-

of

unusual tax shelter the govern¬

Prior

to

ment has

provided to encourage
corporations to supplement So¬
cial Security for their employees,
comes a really flexible and simpie Profit Sharing Plan.

North

the

Securities Company.

•

-

The

Long Company, located in
Elizabeth, N. J., is one of the larg¬
est

underwriters of open-end mu¬
tual funds, including Fundamental

Investors, Inc., Diversified Funds,
Inc.
and Manhattan Bond Fund,

For your

free copies of thi3 literature—

check items you wish—mail this adver¬
tisement with your personal or business
card.

Kidder, Peabody & Co.
Founded 1865

Inc.

Members New York Stock

Go.,

11%

the

for

12

30, 1953.

sets

in

electric

chemicals
metals

5.4%

utilities;

' and

and

Exchange

MUrray Hill 2-7190

drugs?

or

of

the

$11.32'

a

Hudson
tual

fund

7.2%

mining;./?.!?%

according to the
report, railroads; and 5.1%

resources

Fund

with

a

is

in

7.2%

merchandising;

in

annual

$4,085,499

profit
sharing
Fixed pensions—out of the

firm

CF

net

program,

Uptown Office 10 E. 45 th St., N.Y. 17

FUND reported an

in

increase

retirement

small business can profit
by the tax advantages of a qual¬
ified retirement plan. ,

Michigan, he began his investment
career

for

even a

An

University

booklet

combining dollar annuities with
equity securities. Shows how

investment

the

with

with

and

long

new

employers describing a care¬
fully worked out, pre-packaged,

dent and will make his headquar¬

Sharp & Dohme.

HUDSON

be carried out.

ownership of

and

of

dedicated

are

CHECK LIST

^

DeTamble

also

EXECUTIVE

joining the Long organization he

Dry, Caternillar Tractor, C. I. T.
Financial, Consumers Power, Con¬
College,
Columbia University, tinental Can, Dixie Cup, du Pont,
Herbert
R. Anderson,
President Iowa-Illinois Gas and Louisiana
of
Group
Securities,
described Land. Eliminations from the portthe free

State..'..

and

rail¬

utility,

electronics

and

road

petroleum

public

gas,

group

ministrators

£>-71

the

field

the Associ¬

Systems,

is

report

riod.

the

Martin
has

semi-annual

President,

building and
construction field, (2) transporta¬
tion, (3) the electrical industry,
(4) household applications,
(5)
food and farming and (6) canning
and packaging."
(1)

are

15%, to a total

or

Jr., Chairman, and Hugh W. Long,

before.

ever

6,000

47,167.
The

in order of impor¬

aluminum

SPEAKING

prospectuses

City

II

Additions

describing
Organization «id the shares of your
me

War

present defense activ¬
constantly
extending

tance

BOND, PREFERRED AND

World

are

how'

Custodian Fund

1952.

metal.

the

our

ities

eystone

ten

each

Reynolds Metals Company, Kaiser
&

pleted

it.

to create

fluctuation rather than the funda¬

The survey

your

than

reason

Aluminum

a

$12.33

Thorne

the
relative capa¬
cities of the leading producersAluminum Company of America,

a

Name.

friendly with

very

public interest in price fluc¬

a

tuation

Reviewing

WAtl

am

they tend more to cater

suppose

to

dustries.

ONE

to

may

tion of

now,

spective," that the military share
of total production only accounts
L\ f

great.

of the basic rea¬

exist is the
very fact of the ready market for
securities and the daily publica¬
this

why

sons

1,116,000 tons in 1950 and

reached

managed

Wellington

but

ture that makes America

aircraft. Production
dropped to 603,000 tons in
but
turning upward again

military

had

-

on

is strong for free enter¬

everyone

countries according to the August

GENTLEMEN: At

vatively

Dec. 31, 1952, equal
share on the 356,690

$4,395,825

propaganda

at

which is
world's

iron

the

of

that

investment advisor.

30,

agents for the State. equivalent shares then outstand¬ "Facts
few
exceptions, ing.
Hudson Fund, on May 18,
The revised folder, now being
last, effected a two-for-one split distributed to dealers, cnarts the
prise—the American way of ilfe— of its capital stock.
results of an investment of $10,000
and certainly the private owner¬
The report showed an invest¬ in
Wellington Fund at offering
ship of business is the cornerstone ment of 79.3% of total net assets
price
for
the " 10-year
period
of this structure.
in common stocks.
The balance ended Dec. 31, 1952, with all div¬
"But when we come to common
included an 8.3%
investment in idend distributions reinvested.
stocks which represent that own¬
preferreds;
4.5%
in
corporate
The
Fund's investment
diver¬
ership, they too often are thought bonds; and 7.9% in governments
sification, list of investments on
of as poker chips or gambling dice and cash.
June SO, last, and a classification
—their ownership is more in the
Hudson
Fund's
largest single of
fiduciary
and
institutional
category of playing the horses or
common
stock holding by indus¬ shareholders are also given in the
me
numbers
game,
when it
try^ according to the report, was folder.
should) give pride in the possesin natural gas utilities and rep¬
sion~of an interest in the struc¬
cLosed-end news "
resented
11.6%
of *>net
assets.

of

.

and

estimated

the

of

and

output
times

production

is

1953

in

Canada

United

of

aluminum

The Fiduciary Trust
of New York — as its

—

1952, equal to $12.01 WELLINGTON COMPANY, na¬
a
share on the 305,992 equivalent tional distributors of the conser¬
shares then outstanding; and with

By ROBERT R. RICH

Broad Street.

$3,673,379

with

compares

company

Company

June 30, last.

on

June

on

Boland

located

shares out¬

360,863

the

on

standing

in

in oils;
in

5.4%

iijjfoanks.

r.

th|; only

mu¬

specialized trust
i €
...

American
A Mutual

Business Shares

Investment Fund
A Balanced Investment Fund

Prospectus

may

be obtained

from investment dealers
The
200

u

Parker

or

Prospectus

£J/e

If

putnIlM

funp




a

I

Lord, Ahbutt & Co.
New York

—

Chicago

—

Atlanta

*

COMMON
STOCK

,

FUND

,

Profip?ot*>ee5

Y
1

Berkeley St., Boston, Mass.
19 25*

■

upon request

Corporation

FOUNDED

"Seek ye

—

Los Angeles

Putnam Fund
50 State

I

funds may be

DistribuH *>rs.
Street, Bo?

y •
ton

Inc.

vestment

desert Bins; these
obtained from in¬

dealers

or

from

the

Company at 2529 Russ Building,
San Francisco 4, California.

Volume ITS

Number 5248

stock

common

of net assets,

ident,

.

represented

The Commercial and Financial Chronicle

.

.

87.8%

shareholders

'few.

that

News About Banks

"present prospects suggest a more
conservative approach to common
stock

-selection., Consequently, the
principal
increases
in
common
stock

NEW

-holdings have been in those
possessing strong growth

defensive

characteristics,

been

in

made

such

groups,

as
automobile, in¬
machinery, railroad and
railroad equipment, steel as well

dustrial

in foods and natural gas."

as

New 'additions

2,000

Air

anamid1,

1,000

Cleveland

pire

to

the

Reduction.

American

Electric,

Viscose,

2,000

Em¬

Firestone

Tim

the

and

portfolio

during; the

period were Bethlehem Steel,
Bucyrus-Erie.
Equitable
Gas,
New
York
Air Brake, Northern Natural-Gas,
Sham¬
rock Oil & Gas, J. P. Stevens,
Studebaker,
Union

Electric,

United Fruit

and

Wheeling

Steel.

CHICAGO. 111.
now

—

Co..

&

Ill

Mr.

Midwest

Board

the'

term

Stock

Trust

was
formerly
Company. ♦

&

.Paul
Paul

Aug. 15 at the
of

age of 77.

the

partner

in

the

Exchange firm
Appenzellar.

of

George C. Textor

The

Marine

was

and

former

the

Bankers

York,

Trust

President

Company

announced

Swartwout

to

The

New

18

the

"Tir "7""

**<

Fred J. Leary,

)

Jr.

&

Vice-

as

President, i n
charge of the

Financial

b

k's

Far

Western

busi-

a

n

Chronicle)
n

s

e

Leary,

Strand has been added to the staff

uate

of

vard

du

of

election of

LOS ANGELES, Calif.—Paul L.

Francis I.

of

Aug.

on

was

Stock

Pont

&

Co., 677

s.

Mr.

a

grad¬

of

Har¬

Univer¬

sity, has been

South Figueroa Street.

with

Bankers

Trust

1945.
J. Leary, Jr.

Com¬

since

pany
Fred

He

was

elected Assist¬
ant

Treasurer

in 1950 and two years later was
promoted to Assistant Vice-Preside;nt.
t.

National

elected
of

Lead

of

the

was

Board

of

Savings

Bank

ftf

York

New

City

tino,

tional

1947.

He

CROSS




Na¬

Cylinder Gas Co.,. National
Conference

Industrial

I

Joseph A. Martino

Steel

Corp.,
tional

National

Chase

of New

Trust

and
o

f

Fred

of
18

Bank

Board,
of the

York, etc.

Guaranty
election

as

Aug.

on

Treasurer

ment

had

which

Second
years

the

Vice-President. For

Leach

Mr,

Board

has

three

been

,o£ Governors

with

of

the

Federal Reserve System in Wash¬

ington, being Chief of the Govern¬
ment

Finance^Section, Division of
and? Statistics.

Research
mer

His

banking? connections

for¬
were

with Harris Trust & Savings Bank
in Chicago, and Valley National
Bank

in

Phoenix, Arizona.

expected to
with

assume

his

new

He

is

been

Haythe

in

has

agree¬
under

Manufacturers Trust Com¬
the

assume

Industrial
trial
of

an

reached

Bank.

Americas,

Street,

mid-September. Mr.
been

an

Assistant

offices

Co.

and

of

corner

30th

employees

control¬

a

1946.

of

Of¬

out

that

the

bank

for

than

more

has

30

maintained

completion of the purchase.

bank systems.

of

of

bank

building,
having an exterior of plate glass
and polished aluminum, is being
erected

by

the

Company
and

and

Manufacturers
New

of

southwest

43rd

York
of

corner

Street.

on

Fifth

Open to

inviting to the public,
building,
which
will

new

*

the

River

East

New
the

York

Savings

City,

has

appointment

of

Assistant

V i

dent,

Manager

and

Allen

office

branch

Street, which will
Fall.

Edward

the

and

43rd

interestingly

an

since

June
of

of

14,

1926

the

the

been
1926

Street

96th

with

the

at

is

and

and

is

American

Institute

Everett

dent

of

M.

the

of

*

v

Trustee

Oct.

of

the

the

Trust

elected

was

Kings

County

Savings Bank of Brooklyn, N. Y.,

the

Kings County Bank. Mr.
Clark, a director of the Guar¬

year of

service, has been

since 1951.

v

v

a

Trustee

an

well

attractive
to

as

sell

quality merchandise."

sis

Savings

Bank

of

ident,

John

W.

Hooper,

election

the

has

of

Louis

Skidmore,

designed

the

Avenue

building,

office will

entirely

sealed

glass exterior that will provide the
public with a panoramic view of

activity

within

the

bank.

The

main entrance of the bank will be
on

43rd

Street, just west of Fifth

Avenue,

with

no

doorway

on

Fifth Avenue. This unusual treat¬
ment will

display

permit

window

of

*

increase

Crippled
City.

*

in

the

Bank

of

served
the

Alexandria,

Va.,

increase

capital

to

the

of

bank,

4, from

stock

dividend of 200% has

effective-Aug.
$400,000 to $500,000.

A

been

#'.

f,

•

by

approved

Chicago,

capital

III.,

stock

k'

shareholders

and directors of Main
of

has

State Bank

increasing

from

the

$200,000

to

an¬

uninterrupted

along the entire

100-foot Fifth Avenue frontage.

It

is

of

record

stated

dividend

that

in

of

as

by

5?

Aug.

making

the

the

form of stock,
adhering to
its
established policy of keeping all
earnings in the institution and
adding them to the capital struc¬

Main

State

is

ture, Mr. Tark points out. Never
in

its

than

more

erations has the
1

cash

-

24

yesfrs of

bank

dividend?

op¬

distributed

Main

S t

now

a

t

e

con¬

sists of

more than $2,750,000,
in¬
cluding capital stock of $600,000,
surplus of $1,400,000, undivided

profits of $533,000 and reserves of
$221,000. Demand and time de¬
posits exceed $33,000,000. Thus the
served on the board of trustees of
ratio of deposits to capital stands
the bank since 1952 and his father, at
about 12 to 1. Main State Bank
Fred. Gretsch, Sr., was a former is located at
Milwaukee, Western

Gretsch,

Jr., as a Vice-President
bank.
Mr.
Gretsch
has

the

of

President of the

its

of

man

Chair¬

and

prior

1952. In his

death in

Mr.

bank

Board,

Gretsch,, Jr. will fill the
created

by

has

resigned.
of the

C.
Mr.

Fred.

makers of musical instruments for

the

past

70

the

He

years.

member of the

also

is

a

Advisory Board of

Manufacturers

Trust

Com¬

Williamsburg branches, a
past President of the National As¬
pany,

Instrument

Musical

of

Armitage Avenues. '

It

by

N.

Bank

announces

graduation

of

manager of

Advertising and Pub¬

licity for
western

the

John

of

the

bank,

L.

of

Francisco, that at its

San

ular

of

board

Whitsett,

meeting

Jr.

University's School of Fi¬

dent

body of the school is made
of bankers from all sections of
the
United
States, Mexico and
Canada. His thesis entitled, "The
Relations

Value

reg¬

Ralph. C.
Vice-

elected

was

President and Trust Officer, effec¬
1. Mr. Whitsett will, on

tive Oct.
Nov.

30,

kett,

Vice-President

Officer,

C.

succeed
as

partment

Nelson HacanH

Trust

head of the Trust De¬
Mr. Hackett's retire¬

on

compulsory

plan. Mr. Whitsett at¬

tended Princeton, where he ma¬
jored in mathematics, graduating
with the

class of
*

James

North¬

up

Public

Aug. 11,
President,
California, N. A.,
on

McAllister,

Bank

Corvaia,

from

.*

of The

sic

Savings
Y.,

'

%

ment under the bank's
Si*

Lincoln

The

Brooklyn,

sjs

announced

was

Elliott

retirement
Sit

I

*

va¬

William

President

and

his

to

capacity

new

dent

A.

of

Los

the

*

Calif.,

Angeles,

three

63 years

Vice-Presi¬

a

California

Aug. 8, after

was
a

*

Shine,

retirement
on

1928.

%

Bank

prior

ago,

years

of

his

to

died

brief illness. He

a

of age. Mr. Shine was

native of Massachusetts and be¬

Pub¬

of

gan
his banking career in that
licizing Bank and Employee's Ac¬
state. Iie was with the Los Angeles
tivities" was accepted and listed
in

the Library

Corvaia
thebeen

has

of the School. Mr.

been

since

Lincoln

actively

associated
1933

engaged

and

in

with

Public

Relations, Advertising and Public¬
ity since July, 1951. In addition to
the

bank's

advertising

he

has

promotional work and
in connection with its
blood donor days, women's finance
publicity

forums

and

employee

branch
Bank

of

the

Federal

activities.

joining,

the

in

Bank

staff

that

office

of

He

1925.

Vice-President

Reserve

Francisco

San

of

has

handled
an

stock will be issued td

dent. The

holders

Fred

nancial Public Relations. The stu¬

senior partner of the architectural
firm of Skidmore, Owings & Mer¬

almost

Aid

the

$50,000 stock dividend.

a

a

Brooklyn, N. Y., through its Pres¬

banking
service, and is

Fifth

Fi¬

the

Committees.

Bank's capital structure
Lincoln

the concept that

an

for

*

An

company

on

Children of New York

•-*.

,

#

V

The

based

new

that

President of the Asso¬

*

Vice-Presi¬

Manufacturers

of

3,

Banking.

Clark,

Wholesalers, etc.

have

ciation

of

serves

Pension

He is also

*

Company of New York
a

has

He

since

graduate

a

sociation

the

and

Rutgers

office.

bank

step in American
practice. The design is

who

division

presently

nance

Graduate

Banking

progressive

rill,

Company

The
sale
of
$100,000 of new
University. Mr. Allen has, until
stock by the Alexandria National
recently, been Assistant Manager

banking

to

Borden

at

Manufacturing Company,

According

the

branch

Gretsch

as

of

John

55

is

atmosphere

Cream
and

in the late

is

Rommel

of

alumnus

School

at

open

who

on

meet¬

capital of
present the First National Bank & Trust
at 291 Co. of Paulsboro, N. J., from
$100,He has been with the 000 to $150,000 has resulted from

Mr.

Manager

an

e-Presi-

c

Assistant Manager of the

as

new

J.

Gretsch

the southeast

on

Avenue

represent

a

ing of the Directors held on
Aug. 12. Mr. Lewis has been a

of

William

Rommel,
as

Bank

announced

Hundt,

i 11

*

formerly
George O. Nodyne, President of President of the Pioneer Ice

fice

located

*

for several years. He was

cancy

of Fifth

the

director of The First Na¬

a

director
*

house the Manufacturers Trust of¬
now

Sf!

tional Bank of Warwick at

<*

*

■

nounced

*

kind

new

.

years

one

New York's most extensive branch

Peoples

Industrial Bank will join the staff
of Manufacturers Trust
Company

A

of

of

stock, having acquired
ling interest, in March,

upon

Governors

^Madison H. Lewis of Warwick,
N. Y., and New York City was

nouncement, Mr. Marshall pointed elected

incorporated June 25, anteed Title and Mortgage Com¬
1920. As of June 30, 1953, it had
pany,
has long been active in
total resources of
$15,317,645, total civic affairs. Adam Muller, for¬
deposits of $12,849,577 and capital merly
Treasurer
of
the
Kings
funds of $1,950,685. Household Fi¬ County Savings Bank, was elected
nance Corporation owns
Vice-President
and
Treasurer
of
approxi¬
mately 98%
of
its
outstanding that bank., Mr. Muller, in his 38th

and

of

by Bank Editors, etc.

operated

Manhattan

was

ficers

Board

Chapter, American Institute
Banking. Mr. Corvaia is also a

of

$600,000, it was announced on
Peoples it was
recently
announced
by
Aug. 12 by L. Shirley Tark, Presi¬
Peoples Indus¬ President Charles D. Behrens of

liabilities

Bank, 'located at 855 Avenue

the

Banking Depart¬

will expand the system in Queens
to 34 offices. In making the an¬

an¬

duties

Guaranty Trust Company of

New York

Wolff,

will purchase the assets and

pany

of

Ralph F. Leach. Madison H. Haythe has been; promoted to
be a

of

Industrial

today is selling a
the
to a great extent comparable with
City
department stores and specialty
shops where the aim is to provide

Company

Trust

New York announced

the

G.

Peoples

inviting quarters and
The

Company

nounced this week that

w

Allegheny
Ludlum

President

President of Manufacturers Trust,
stated: "This building, we believe,

a

the

of

*

Flanigan,

announcing plans for this new
building, Horace C. Flanigan,

Director of the

RED

*

etc.

In

in

is

York

Street, will be a $3,000,000, fourstoried, air-conditioned structure.

Lead

President

New

Bank, also of New York City,

corner

Na¬

Company in
1916,
became

Your

York

President

the

Mar¬

the

C.

Manufacturers

view

started

career

must carry on

*

Horace

the

whose

with

Credit

Committee of the Laity,

Avenue

Aug.

on

13.? Mr.

Credit,

Management
Cardinal Spellman's

Association,

Trust

the East River

of

Credit and Financial

*

Company,

member

a

Trustees

of

Bank

bank

of

Fraternity,

tft

5;t

Joseph A. Martino, President of
the

was

of
Banking,
posts of Treas-"

branch office
Queens Boulevard, Forest member of the New York Finan¬
Advertisers
will bring to 57 the cial
Assn.,
Savings

number

'

Institute

held the

This

Broadway.

Institute

New

He

1946 he

*

Colt,

N. Y.

York

of

Sloan

and

depart¬

Assistant Secretary,
he
completed his

an

.

F. I. du Pont Adds
(Special

Midland

Dairies, Inc., Liberty Prod¬

S.

1931

various
In

to

came

in

Trust

offices.

1950

Men's

V

away

Flanigan,

has

Aug. 18 that the bank urer, Chief Consul and member of

on

Banking, Rutgers University. Mr.
Koenig is affiliated with New

Corp., American Bosch Corp.
and several other corporations.

board, of

Dictaphone Corporation

in

C.

Koenig

in

worked

and

ucts

passed

an¬

Mr.

appointed

Street

e-P resident is

Horace

an¬

the

.'

as

York,

New York State

Trust

studies at the Graduate School

Company of
New
York,
Colorado Fuel & Iron Corp., Fore¬

most

c

ments and

a

Appenzellar

Appenzellar

chairman

with

27th

As¬

Manufacturers
has

E.Muller,

York

Exchanges.

E.

an

by

President.

Chairman. Mr.

Salle

La

nounced

by Her¬

of

and

Manufacturers

sistant V i

an¬

is

of

Company of New York,

accord¬

Textor

George

of

Avenue

office

of

an

He

Koenig, Officer in Charge of the
Fourth

College
five-year

a

Director

Levin

Faroll

a

the

man

Betts, Bor¬

South

o r

elected to

made

William Levin

associated with

Street, members of the New
and

k,

Y

was

for

Appointment

Trust

New

1947.

;

•

The

of

since

*

V

M i d-

Company

office

I

Sec¬

and

Guaranty—in the

entered the bank's service in 1941.

nouncement

Joins Betts, Borland

land

Vice-P resi-

ing to

(Special to The Financial Chronicle)

is

on Au|.
15 at Lake George,
Y., George C. Textor, Executive

N.

land

3,000

7

.

company's

Treasurer's

held,

Marine

2,000

Treasurer at the

meeting

New

had received permission from the

Hills.

of the
Ithaca College Board of Trustees

retary of

Cy-

7,000

& Rubber, 2.700 Lone Star Gas
Louisville Gas & Electric,; ;

Eliminated from

included

special

a

dent

American

Illuminating,

Electric

District

portfolio

4,000

At

and

of

25

graduate of N. Y. Chapter,

a

Company

at 104-17

CAPITALIZATIONS

is

American

ment to open a new

no¬

cyclical

more

Bankers

and

OFFICERS, ETC. *

REVISED

tably chemicals and electric util¬
ities;
and
principal
reductions
have

BRANCHES

NEW

Presi¬ He

Marshall,

dent of the Bank of the Manhattan

nounced

CONSOLIDATIONS

groups
or

C.

Lawrence

Hugh Bullock, Pres-.

told

(645)

in

until

was

1938

his

before

California
elected

and

held

retirment

in

1950.,Mr. Shine was a member!of
the Los Angeles
merce.

Chamber of Com¬

The Commercial and
126

Financial Chronicle

.

.

.

Thursday, August 20, 1953

(646)

its

Continued from page 7

of

But 1 find it difficult to believe
that even the members of these

Countries

Hatred of Western

.

committed

had

to ia

which, to one degree
another, all the other Western

or

helpless-

revolutionary task its leaders had
marked out for themselves.

needed help in the form of 180
Soviet divisions in the later phase,
Western disunity was Moscow's
chance. For their inability to fight
eacb other without invoking
Soviet assistance, and their inability to refrain from fighting

gesture of despair and impatience,
flowing from domestic political
frustrations within their respective countries, and that they would
reject with horror and indignation
if they could see it in the fleshy

for

long

a

time into the future.
curiously twisted and

belief

fanatical

political
into

poorly

pattern—is an-

Marxist

the

but

in

of Communism
initially,

tne

parties

re-

to

con-

and

threat; they
to be

more

sort

a

of traditional fixture of the West-

difficulty
allllCUliy

real

the

resist

to

they ceased

most countries any im-

more

species that tended

human

,

environment
.....

ent

its

of

its

against

turn

to

natUre

come into power, armed with this
amazing theoretical challenge to

to

and

seek

jn £be

eg0

own

the soundness of Western institu»
-i,
tb x
others betions, precisely at a time when
,
cherished
important to note that this belief the
West, generally, was ab' ov;c+.
^on the part of the early Bolshevik
normally sick and weak, exSuch p p
y
»
^
leaders was
not merely one of hausted and shattered tjy the ter- are a mutation of the species. The
detached historical and social in- rible
effects of World War I, presence of real grievances and
terpretation: it was something that showing on every hand the signs hardships has only a remote, reinvolved intimately their own rdof strain and shock, its confi- lation to their state of mind Their
tsponsibility and actions. The de- dence shaken in its own traditions trouble is subjective, and if it
plorable state of the peoples lan- and institutions. The war had not arises originally in environmental
guishing—as they saw it—under only
created new dislocations factors, as I suppose it °|-ten does>
the yoke of capitalism was for which were poorly understood and these factors are nevc^—but really
iftem
not
just something to be affected people with feelings of never—the ones of which they are
xioted and regretted: it was somerestlessness and frustration, but conscious, of which they complain
thing they, as good international it had also exacerbated changes and against which they inveigh.
Marxists, as Leninist-Marxists in of a long-term nature already in There has to be a place for such
particular, had an obligation to progress in Western society and people in any society; and so far
•do something about. The cause of themselves calling for painful and
as the Western countries are conthe
proletariat everywhere was drastic adjustments.
cerned, perhaps the Communist
iheir cause. They were the revoIn the years following the pro- parties provide
as favorable a
and one that I shall
not attempt to recount here. It is

■other

story,

.

,

lutionaries

of

country, not

every

They challenged
the legitimacy and usefulness of

j»st of tHpjr

own.

capitalistic government, not

•every

slavement of their own people to

bloodletting

digious
world

of

weaknesses

war,

ficiences stood out all

body

of

first

the

dethe

and

over on

civilization.

Western

It

just the one under which they was an easy thing for the Bol-

happened to have been born.

sheviks, with their glib and "sim-

the real embodiment of the ideas;

each otherhnth
in the
light of this in Surplv
which fr»r
theythp
profess
to believe.
siHps nairl
Wpsfprn
Wnrlrl
tragic fact, both sides paid a price.
Surely for the Western World

state; a curious receptacle into
which there could be poured, dec1
'd"T alwhat fririee

ern

lav
lay

its

find

to

came

country that fitted very

—a

came

n®t.in the control by these men
of the resources of an established
home precisely in Russia state, but in tne fact that they had

this

How

Communist

stitute

European Dislocations and Spread

to

continue

to

sufficient

virus

mediate revolutionary

and were
maintain

maintained

destined

appear to want:

in the new

even

pr0ved'
mained-

system

countries

World

Western

tbe face 0£ the vast world-

negs

iniquity of the so-

soundness and
cial

revelation of its physical

of men
belief in the uncontrol

the

under

Russia

that

meant

come

suing years

priated two million rubles for the

This

t0 this demon in those enEverywhere in tne

tracn'r* fapt

a

nriPP

That Price was in large part the

in general the Soviet threat today

installation of Soviet military and
political
power
over' half
of
Europe in 1945; and there is perhaps a deep historical justice in
the fact that that price is being
Paid today in almost equal measure by the Germans and their
Western adversaries in the recent

is almost exclusively a physical
a
military-territorial one
along traditional patterns, not one
of the power of ideas. Starting
from what was once a very favorable position, the Soviet lead-

in
An*

saying this, I am not seeking
tQ exculpate Hitler and his associates from their heavy responsi^jity
There could have been no
tef betrayal of Western civilization than the mad path on
which they embarked in 1938 and
A

1Iia

p0wers

jmpossjbie and

with

tragic

the

wp1ivs,m1 SfrMldh Inr_

,

Soviet Physical strength increases

sions of growth and change, made

of economic and military develop-

aiming in effect
force of every
government
and
the
establishment in power in every
Western capital of a violent, emtittered, defiant minority group,
«ontemptuous of all real national

crucial and painful by the
effects of the. war.
The sparks
thrown out by the Moscow leaders, supported by the emotional
vitality of a primitive society,
struck fire in many places in the
tired,
shaken
Western
World:
wherever it was weak or divided

ment which had been in progress

had

become

program

the overthrow by

Western

tradition, challenging most of the
accepted national values, hating
almost

everything their country«nen loved,
amenable only to the
discipline of the rulers of a forcign state. This was a condition
without

precedent

Western

history.

It

in
modern
belied

more

.

Goebbels

Qf

sbev^
^

menace

war

could

the

the

Bol.

final

days

not

this dark responsibility.

wipe

out

But the

ternational

Western
4n

involved

and

that

includes

our.

relationships

World

had

come

in

the

to

rest

the eighteenth and

nineteenth
represented
from
the
standpoint of international
custom, a retrogressive step: a
It

-centuries.

throw-back
-of
_

to

the

religious wars

the

past ages—to

universal

of

*iame

tolerant
At

secular

the

quest

power

and

exclusive

in-

ideology.

happier

a

at

a

time

when Western society was in possession of its full strength and
health, this sort of program and
•outlook on the part of the Soviet
leaders might merely have been
ignored and ridiculed and left to
oxpose itself for the childish im-

pertinence that, in essence, it was.
"Theoretically,
this
would have
fceen all the easier in the early
-days of Soviet power for the rea«on

that

-going

Russia

was

then under-

from

away

lectual

and

their role as intelpolitical gadflies for

and closer
to the traditional role of Russian

that it was precisely this geographic extension of Soviet power
that

the Western countries,

was

the principal factor

in

when

the

Now,

just

internal

a

time

tensions

were

at

_an

an external enemy arose
enemy not created but self-

inspired

and

constituted

of

self-declared—and
as

to take

advantage

in

a

settlement

of

state

The

exhaustion.

from

a

a

war

society:

this

command

of

the

resources

of

Eastern and Central Europe.
It
gave her access to the advanced

slightest ulterior weakness in

or-

the

profound disagreement as to the
place which the German people,
having suddenly emerged on the
European scene as a powerful and
vigorous national entity, were to
have in the European scheme of

disagreement

again

emerged
more

day of the Russian
Revolution, the society of the West

in

of Adolf Hitler and

Western ideals and

it

tions, attended by a readiness on
use force against the
others, and coupled with the mil-

ter-

purported to be and live up to its
highest pretensions, or to accent

democracies, there lay the historic

And

the horror of totalitarian rule by

opportunity

thirties

in

a

new

and

And the gains that Moscow made
by virtue of this advantage were
primarily military, not ideological,
gains. Such ideological inroads as
the Soviet propagandists were
able to make on the European
peoples in the final phases of the
war were in direct proportion to

in

the

virulent and

the degree in which Moscow was

more

able to conceal its real aspirations
and to masquerade as a liberal
with the resources of the Russian
the movement he headed. And in democratic power instead of the
estate added little in those early came to be haunted
by a species Hitler's aims and methods, mark- center of a ruthless conspiracy,
Allays to its physical power. The of foreign demon, geared to. take
ing as they did the most grievous When this mask fell off, the power
JBolshevik leaders could rant and
advantage of every gap between disunity among the Western naMoscow's ideas largely disin-

ist-Leninist outlook

denounce;
«ow

doubt

to

and

draw

physical

aritory

associated

they could attempt to

•Western World.
the

was

on

dissension
But
in

resources

under their

the

in

they had litthe

from

way

the

control.




of

.From

the

Western

per-

formance, implacably determined
to

make

the

West

be

all

that

the

form

horrible form,

his part to

itary

weakness

of

of

the

which

Western

.

Moscow

where near the

so

great

anything

that

that de-

parts completely from those patin

their

appear
eyes

by

commendthat very

f

The wastage of human life

does not impress

prepared

to

them. They are
accept physical

squalor and cruelty if they can
believe that it serves a social purpose.

Soviet power is something

that is more, rather than less,
attractive to them by virtue of the
fact that it has been accompanied
by physical hardship and deprivation, by sacrifice of the interests
of the individual, by a rertuncia-

any real, political stability tion of precisely that conspicuous
to the Western and Central Eu- luxury, that physical self-pamropean areas.
pering, that pretention to a pomAnd I think it important to p0Us individual self-importance
note that all of this had little to through which the westerner has
do with Soviet propaganda or with made himself hated and despised
the political appeal of Moscow's in so many areas of the world.
ideas. Moscow's aid was invoked
The Western World, and our
or accepted by both of the West- country in particular, must be exern parties in World War II on a tremely careful how it deals with
basis of straight military power, this phenomenon of the Soviet
in the most old fashioned sense. appeal to the peoples of the un-

arisen

to kill.

any

tion of

centrifugal tendency,
every element of self-doubt, every
element of sickness or of weakness, in Western civilization. From
that time onward, the germ of things.
Communist
ov e r-simplification
But since the war had failed to
rode like a malignant bacillus, jead to any real political settleever present, in the veins of West- ment on this point (and by that
ern society, powerless to disrupt j mean a settlement roughly acthe functioning of the organism ceptable to both parties) and had
so long as health and vigor were oniy produced conditions bound to
present, but ready to seize on the exacerbate the issue, the entire
every

in

degree. Their accumulated
resentment of Western patterns is
same

able

was

was

operable

fact.

serious element of disunity

Western

this heritage,

problem to the rest of the world
than she was before this
last world war. It placed her in

mutual

had

con-

selves from the moral burden of

today

greater

be

national

whose

people

sciousness
and
identity
were
formed under varying degrees of
Western tutelage and control and
wbo are now seeking to free them-

a

to

of

to

terns is apt to

only

own

play

The Threat to Asia
The same, unfortunately, cannot
be said of Asia. Here the pattern
is reversed. Scarcely anywhere
beyond the northern borders of

making Moscow so much more of

actually

largely

der to poison, to disintegrate, and

moment of great physical
weakness. The fact that the Marxa

their differences without resort to
I think it important to note

war.

believed

so

time,

of the decades,
the Soviet leaders moved steadily

neighbors.

their

in

free

trials

intellectual

I think we in the West must
of Europe was, then, a part of the face the fact that for a great many
price that the Western powers of these neonle the repulsion that
paid for their inability to solve Soviet realities hold for us is not

the limited aspirations of Western

internal

for greatest,
the

in

In this way,'

the passage

_

#

way,
through the
indigenous forces,
failure and
weakness rendering
them more vulnerable only against

their

out

and

all of us who were prominently are new to its exercise—above all,

detriment to world sta- technology of that area. It served
bility than it had involved in the to overcome much of her conyears of the nineteenth century,
genital industrial backwardness.
had World War I really settled the At the same time it lamed the
problems
over
which
it
was productive
and recuperative cafought.
But this was precisely pacities of Europe generally, and
what it failed to do. What people rendered impossible the restora-

^

.moral

Union'itself today appear as a
military threat to the independence of other people in the Asiatic
area.
But
here
the
scene
is
marked by one of the most curious
and important phenomena of our
time: the appeal of Marxist

of choices,

about

jn

to

leadership in the Western World.

China and Korea does the Soviet

the hysterical cries and warn-

isted for many years, and with no

the
Previously, the great countries
u^CuPle
of -e and let live" -0n of the West had been left to work
the entire structure of in-

which

before World War I.

with

or lacking in confidence in itself, rulers competing for position amid
In this way a curious bond was the territorial and military rivalstruck between the Russian revo- ries of the Eastern European and
lution and the tensions and dis- Asiatic areas.
contents of Western civilization
This situation might have ex-

everywhere.

have succeeded over the years
divesting themselves of all

Place as any other, since here you Nazj. era wag o.
thg Jagt acf. -n
tbougbt and 0f tbe soviet examhave them all together, identified & tragic drama that had run pie, in particular, to people who
ma
lie aissocia tion their aims through several decades. And for have not yet come into the enjoywidely known and understood.
the earlier course 0f that drama ment of sovereign power or who

associated

a

in

the

thus, when these men ap-

Russia

with

ers

most

Nazis' confronted

The
^estern

aill

#

in

one,

claim

war

pliste" philosophy, to portray as
But as the ideological threat of selves in the United States, had a
propriated
to
themselves
the basic weaknesses of the capitalist Soviet power declined, the physi- share of the blame.
powers of government in most of
system things that were actually cal strength of the territory and
the territory known to the world direct consequences of the great peoples under Soviet rule began
Geographic Extension of Soviet
iraditionally as "Russia," a new physical and spiritual debauche to increase. The ravages of the
Power
^situation was created. With that that modern war invariably rep- war
were
gradually overcome.
The establishment of the Soviet
act, the exercise of internal power resents, or part of the normal ten- Russia began to resume the march leaders as the masters over half
And

really want what they
namely, the en-

parties

a brutal and cynical foreign dieTbe Nazis needed help in the form tatorship. I am sure that in the
promotion of world revolution, and untried states of Eastern of the non-aggression pact in the great majority of cases their asso—
this naive gesture was actually a Europe
health and strength early period; the Western allies ciation with this movement is a

'

Government appro-

Soviet

ne™

it

wlnnpH
v
p

in Russia herself did society sue-

in December of 1918, the cumb

de- when,

Marxist ideology as Lenim had

,

ing the conditions of the Western
Vvorid
in
1918
nowhere except

Wane!

ad- ists succeeded in introducing into
Europe in the wake of the war.

take

to

♦

*'<>r
the battle was on between Hitler and the Western
democracies, neither party in tne
Western quarrel was strong
enough to carry out its purpose
completely without Soviet help,

Miraculously enough, consider-

Red Peril on the

fail

vantage.

foreign state.

a

hardly

could

criminal elements in the

own

interests

-

tegrated.
Only
the
inordinately large
French and Italian Communist
parties remain in Europe today as
living witnesses of the bewilder^
ment and confusion the Commun-

derdeveloped areas of Asia and
elsewhere. We must take account
0f the fact that the past has left
an emotional legacy that will not
S00n be overcome. We must realjze that our concepts and example
are not always necessarily relevant to the needs of peoples
elsewhere. We must contrive to
understand, as a normal human
phenomenon, the fact that Asian
Peoples sometimes wish to do
things one way precisely because
jt jg fiot the way we do them—
because they wish to demonstrate
to themselves, and to reassure
themselves of, an indenendence
which is new and wonderful to
them and in which they cannot
yet fullv believe.
Finallv. we
must understand the impatience

Volume 178

Number 5248

.

.

The Commercial and Financial Chronicle

.

(647)
that

causes

of

many

them

to

re

best

acmeving

rapid industrialization and
ersewnere
Li.

lor

to

means

iViust

a.

iook

ism,

tnis

end.

lie

agree

witn

tnem, or

encourage
tnem, wneii
tney
look
precisely
to
Moscow
for
...

.

...

.

,

,

A,

things they will certainly not find
there and, in so doing, piace tnemselves and the
security of entire
geograpinc
one

West

areas

to

tnmg

m

jcoparuy."
of

asx

us

the

or

of

the past, and a tolerance for what
is only human and unavoidable,
is

another

thing to ask us to
reality of things we
illusions, and to
acquiesce in changes we know to
be
disruptive of the long-term
affirm

the

know

to

be

•

prospects for peace and stability,
Americans can and should have

understanding
outer

for

their

peoples to go

if

even

it

they

can

of

desire

a

when

have
to

they

that

has

others

be

not

understanding
too

meant

way,

well

in

have

but

way;

Moscow's

go

know

who

own way,

our

no

of

desire

a

what

practice

entered

to

that

on

path.
view

with

anything

abhorrence
men

the

best

are

than

other

propositon

ruled

that

by lying and

deceit, by appeals to hatred and
suspicion and fear, by the destruction of
religious belief, by the
denial

of

moral

obligation

on

an

individual ethical basis.
To

the

fests

extent

negative

reaction

of

ence

that

,

Asia

mani-

revulsion to the West

a

the

to

as

a

expert-

colonialism, and Western

naternalism
paternalism

wishes

in
in

the
the

nast

'<

and

past,

and

this

strike

to

reason

paths of its own, we Americans must find within ourselves

the

dignity and maturity to accept
this, in the confidence that time
eventually

appreciation

develop

of

all

balanced

more

a

Asia

we can

tut

based

hatred

on

the

and

degradation of human nature.
Soviet

ful

values

the

These

reflections
to

seems

for tne

West,

sufficient,

are

indicate

to

me,

that

least, the Soviet

at

threat is only a function and

pression of the West's

It

ness.

ex-

weak-

own

Western disunity that
the Soviets into Europe

was

brought
for the first

time

as

a

military

capable of placing a ternveto on the restoration of

power

porary

hope and stability to the European
scene;
it was trie tragedy 01 tne
Western impact on Asia—the long

y^enrd
<?wv»HV*niit'v and ooR_
ishness and pretentiousness vis-avis impressionable and observant
peoples—that
c<wip+

made

possible the
illusions on which

and

neuroses

influence

area,

feeds

today

in

distinguished French scholpresent at this conference, once

observed

in

connection

phenomenon
munism

of

that

with

domestic

"error

always be regarded

as

.

.

.

crisis in

a

the

internal development of
truth,"2
It mav be said, similarly,
that for the Western World the
Soviet

ternai

threat
crisis

is

velopment,.

primarily

tfm West's

m

In

this

an

in-

own

de-

appreciation

there lies? in my conviction, the
kev
key to
to the
the understanding
understanding of
of the
the
correct method of

that

this

to

point,
my
friends, I have spoken only about
up

the non-Communist world.

Union,

or

about

the

they

are

of

course

Siate—Nightmare of

20tli

The

Soviet-

Soviet

regime,

while

peoples

century: the totalitarian state. Tnis

naivete,

tragic and

a

and

take

must

this aberration into account when

dealing with them.
People in Asia should be careful
about

is

outstanding example of
nightmare of the twentieth

in

certain

respects

in

nomenon

the

a

phe¬

new

inventory of

litical institutions.

po¬

We do not yet

fully know the laws of its devel-

rejecting these American
feelings as the expression of some

opJ?1ei?^1

qnrf
soit

power is faced today with severe
rajns anc| cric;es
These can be
dU/a
LcU1 UL

cpifich
selfish

the

Qfatoc
States

oc

the

prpat
great

nnwpr?
powers.

were

to

the

ofiwf
effoit

nn

an

into

of

part

as

others

imnpriniNt
imperialist

nr
or

United
pntinp
entice

to

quarrels

If

in

in

of

the

neonie
in
Asia
people
in
Asi
themselves to

abandon

Communist deceits,

American in¬

terests,

would

But

the

these
and

it

is

true,

first

to

Asiatic

suffer

suffer.

would

be

peoples themselves,

the damage to their interests
be greater and more im¬

would

mediate

than

interests

of

damage

anv

the

to

Plainly, the edifice of Soviet

observed

its internal structure,

in

h

j

to

depend on the
wiiicn oas come to uepettu
oil uie
institution of a supreme and gloricome

f._ed ]eader but contains

provision

for

the

formal

n0

method

of

his

of

Danger

Actually,
there
that

to

passed.

be

Passed"

1953,

year

decisive

and

taking
and it

there

that

me

men;

one

the

to

favor

of realism and

of

the

ment

in

slavish

the

a

direction

of

This

move-

any
or

inany

admiration of Western inNo

sensible

person

anything of this sort.

turn in the direction of

understanding
both

a

pro-Americanism,

stitutions.
seeks

forces

common sense.

is not, and should not be.

creased

discern

can

certain turn of the tide of

a

battle

Soviet

concept, the atrophying
the qualities of individual self
iiance

anct

when

the

it

is

also

can

the

hatred

.

be

satellite

ob¬

empire,

thin,

worn

harvesting

and

the

rejection

cron

it sowed

years

ago, in defiance of the

and

warning

of

the

cower

a

It is
better

nature

and

of

It is

It marks

of

the

pleas

Western

business neither to

its follies

to

nor

save

confuse

the issue by attempting to assert
ourselves into its difficulties.
If
our

of

beliefs

own

sound, Soviet
suffer, as

suffering today, by the effects

its

unsoundness—its

own

comnatibilitv

human

with

needs,

tually

and

the

earn

justly
reveal

clarity

to come, and

let

in-

deeoest

will

even-

it

so

imoortant

is

be permitted

with
that

it

It

process

itself

the

retribution

deserves.

that this
and

are

will continue to

power

it is

such
for

us

to

vividness

generations

hope forever,

Western

sober

(.>1R

appreciation both of the dangers

1949.

a

our

from

more




.

.

.

„

.,

_

,

.

.

H;v1nyY,T"^vfrar»y Pr^
p.

256.

of
re-

responsibility. If and
Soviet
peoples
ever
emerge from this long ordeal, we
must not expect them to react like
people
who
had
never
gone

through it.
be

in

and

ance
~

In

they

ways,

many

great need of forbear-

understanding,

+,

u

i

zi

hand,
attitude

Jw+5

we must be

suneriorftv Tnd

of

?•„ suPenonty

anci

} ^struction. J,n &elr
™?G*CryCi!ating subj<action tot:he
^

™an GVi

+•

^ ^"^tionably sounded depths of
^perience beyond the ken
V?9

i"

wu

,ln. V

Th0*-

There

are

by

external

for

from

us

rediscovered

—

of

immense

profundity, perhaps even essential
to the healthy
development of our
civilization?

own

too, face

After

crisis

a

adequacy of

all

this

at

dustrial

and

those

through

the

passed
totali-

of

could

we

in¬

our

civilization.

purgatory

that

us

in

time

have

who

we,

spiritual

our own

urban

Perhaps

have

not

learned in any other way.
Posed

by Russia

Looking at all these things to¬
gether, I cannot resist the convic¬
tion

that there is

great his-

some

torical logic in the existence at
this time of the phenomenon we
cal1 Soviet power and in the prob¬
lem it poses for the world beyond
its own borders.
To the West it

stands

as

necessity

admonition

an

for

internal

of

the

unity

and

mutual

tolerance

and

a

reminder

of

immense

moral

responsi-

the

biiity tnat lests upon us bv
py virtue
vntue
of our nse to political and econnrnif,

,wnf]„n„v

in

nf

nHvannn

nomic ascendancy in advance oi
other portions
of the
modern
Tn-thp

woild.

Fact

it

danHs

an

aq

10 the East lt stands as an
enticement nnH
and a
a w
test of ™atnntvpnt,ppmpnt
maturity:
as

the

bearer

of

something
must have

than

more

reject
a

failure.

new

As

their

if

is

the
the

these

Public

life

coimled

'

resoect

and

of

the

simplicity of

our

with

reservation

readiness

to

of

be

helpful within the modest possibilities of helpfulness, in our ap¬
proach to others. The deepest duty
of American civilization in the
face of Soviet power lies still in

realities

the heinf?

not

the

rinino-

.

Utility Securities
By OWEN ELY

Puget Sound Power & Light has for
many years been involved
fight over public vs. private powef in the State of
Washing¬
ton, where it operates. The history of this contest has been dra¬

in the

matically described by Puget's President, Frank W.
McLaughlin, in
his

annual

reports

crystal ball

to

the

on

to

be

the

Russian

stockholders.

cover,

covered

The

with

1952

such

report
phrases

pictured
as

a

"critical

shortage," "municipal rate reductions,"-"joint district pur¬
chase," "Piecemeal condemnation cases," "Federal vs. local con¬
trol," "WWP-Puget merger," "interstate
compact," "legislation,"
"law suits," etc.
Probably no utility in the country can boast of

power

such

"checkered career"

a

over the past decade.
parts of the property have already been sold to
Public Utility Districts
(PUD's) and the City of Seattle, the com¬
pany is still an operating entity with substantial
hydro

While

some

capacity

and some steam
standby units. It is a member of the Northwest
Power Pool and has sold
power on balance in the past two years.
Proceeds of
property sales have been used largely to retire senior

decided that, if the
PUD's were to continue
nibbling at his property (there are 12
condemnation suits still
pending) he would prefer to sell the com¬
pany as a unit.
A plan for joint purchase of the

property by

group of PUD's

finally developed.

a

Two of these dropped out, but

the remainder
arranged a deal with an underwriting syndicate to
sell a large issue of revenue
bonds to finance purchase of the

greater part of the property.
kefore this

could

consummate

such

a

time Puget preferred
and stockholders voted in favor of

the PUD

sale, despite

a

consummated, however, the Presi-

wilh his^company. At that

merger of Puget
to

be

Water Power, Kinsey Robinson, proposed

sale,
harassing litigation alleged to have been

some

initiated by WWP. After one or two
been proposed, Messrs. Robinson and

gether early this year on
respective Boards.
V

a new

abortive merger plans had
McLaughlin finally got to¬
plan which was approved by their

This final plan has been under consideration
by three com¬
missions having jurisdiction—the state
commissions in Idaho and

Washington and the Federal
mission

Power Commission.

quickly approved the

matter

®on?_ _n

closed

merger but the

more

The Idaho

com¬

Washington commis-

thoroughly" wfth

proceedings

only recently; a decision is expected at a comparatively
early date, in view of the pressure of stockholders' interest. The
FPC is also expected to
expedite proceedings and reach a decision
fairly soon, possibly in
September, with a final order after the
stockholders of both companies have acted on the
merger plan. r
It is, of course, impossible to
predict the crucial decision to be
handed

down

by the Washington state commissiort. Proponents
of the merger
have, however, been somewhat encouraged by the
fact that the

commission, on its own initiative, ordered an engi¬
neering report to be prepared by Ford, Bacon & Davis. Inc. of
39 Broadway, New
York, well-known utility engineers. This re¬
port,

voluminous document containing 87 pages of
text, five maps
tables, presents an appraisal of the results
proposed merger.
The firm estimates potential
generating economies from the
merger at $1,148,000, and administrative economies at
$248,000 (the
a

and charts and 15 large

of the

latter effective only
gradually) or a total of nearly $1,400,000. On
the other hand, there would be an estimated
increase in interest
charges of $384,000 due to preferred stock redemption
costs, loans
to take up unexchanged
Puget stock, etc.: and to bring Puget

employees up to the

$600,0.00
is

year

a

for

same

pension basis

10 years.

as

WWP would cost about

The total of these two latter items

nearly $1 million, leaving net economies of roughly $400,000,

less increased income taxes.
A

in

number of smaller
operating economies might be possible
accounting, purchasing, maintenance, etc., though no estimate

of

these

was

presented.

"Customer

quality of service, availability of

and

power to

employee relationships,
customers, relationships

with power pools and similar matters are not affected in
any way
whether there is a merger or
not," the report concluded. However,
the firm estimated that $11 million of future
plant construction

plains

mated

(for

turned

in

Russia

moral struggle

and

is

Siberia,

in

progress

a
so

immense that it must, it seems to
me> be either the final demonstration of civilization s failure or the
breeding ground of new spiritual
forces of wide historic sigmfi-

could

probably be avoided if the

Under

the proposed

merger were consummated.

plan, the

merger

would not be

reasons) unless over half of the Puget stock is
exchange for Washington Water Power new con¬
vertible preferred and common stocks (a
minority can obtain $27

a

share in cash if they prefer).

mates

of

earnings,

Following are the pro forma esti¬
capital structure, together with other ratios and share
presented in the Ford, Bacon & Davis report:

as

% of Puget Stock Converted
(Balance Retired by Cash)

50%

developments stress,

to my mind, the central feature of
age:

the

pendence

of

our

means

that

universal

mankind,

nowhere

can

interde-

which
men

be

Capitalization:
Bonds

and

Preferred
Common

.

Bank

'

Debt

69%

Stock

Stock

Equity

;

hanoy
while
h u ma n
still being mocked jand
tortured on other parts of £> the
globe, but also that nowhere;p#ed
men

is

be completely desperate

long as somewhere else other
are

trying to build

decent

a

^

I

•Percent of Rev. Available for Common Stoc
iGross Income as % of Net Plant

so

men
life

^Prepared by Wm. C. Gil'man.

100%

/

entirely
nature

consum¬

tax

for

cance.
All of these

ft?

securities, producing a 60% stock equity.
President McLaughlin some time
ago

people themselves and the other
peoples of the Soviet Union, I fear
the measure of their tragedy is
now beyond our imagination or
comprehension.
On
the
great
of

n;

Puget Sound Pr. & Lt.-Washington Water Pr.
Merger

long-

disillusionment
for

things

cultivation

and

'

Km,,!!}

values havP not been discovered
or

humility

the prime moral dictate that

flows

the

national

judgment

1°.,be
b"1 example is still,
,ter a11' the greatest agency by
whlch men helP each other. To
me,

still

cleanliness
own

action

many important

Jhe course of this ordeal, spiritual, dent of Washington

and

o„

democracv.

cial

where its devices have

it

real

struggle in Asia has been
to

of
the
youth, the
religious
truth, the
primitivization of political and so-

of

independence

The

place in the minds of
seems

brutalization

neglect

coveted

where

We

human

damage that has been done by 35
years of Bolshevism:
the partial

where the nature of Soviet power
has
been
thoroughly
exposed,

World

to

reason

the

to

They

in

the

develops.

ever

underrate

peoples

hope
peak of this danger has

seems

the

the

of

as

Has

not

is

This
our-

care¬

if

and

strength

served

with such reckless arrogance some

"Peak

opportunity
must

when

can,

Eastern

selection.

of

the United States.

."

....

betterment

quickly where we
little of what is

em¬

that

need lose

we

selves in lavish schemes for world

very

Problem

traditional Russian

many

responsibility.

mean

praise

Century

unique

victims of

we

tell

Totalitarian

does not

maintaining our readibe helpful to the extent

concepts to the strains of

Soviet

regime
under
which
languishing. The^e are

who have experienced it—to that
extent, Americans must view these

on

that

c
9"

the principles of charity

on

mutual

on,

to

ness

and

real human

either

the

a

of

ancl now1
significa,?t sl«ns of evolution, is still the

terest

understand

going

approach to the

Soviet problem,
Now

too

based

under-

are

involved,

bestow

the

com-

must

tney

this has
to

blame

will

i

A
ar,

ordeal

and

understanding

belief

not

or

peoples,

only stand aside, respectthe

going, mindful of the
of

West's Own Weakness

it

for

as

ot

thT-Lm.t
the
Soviet

m,

sacrifices

Threat—a Function

bring them anything else than the
misery it has brought to all others.

nf
of

And

fiuence

bodying

terrible

People

principle every political creed and every political in-

Communist political leadership can

as

lJ- s- Attitude Toward Russian

re-

the

the extent that peoples in
Africa
indulge them¬

in

.

on

and

selves

Com-

source,

forgetting that it is themselves
who
are
thereby
most
deeply degraded.
men,

I have
said nothing about the peoples of

firmly believe to be fallacious.

But to

every

approacn,

through the degradation of fellow-

better

American civilization. Even in the

we

jecting

will not again be tempted to

men

—

for

out on

will

mature

s

be expected to

can

commun-

helpful to their solution but

that

No American

Soviet

is'relevant
relevant ti^Asia^nrobfem^and
to Asia
problems and

it

mistakes

ot

more

a

the

in

peoples

of the possibilities tnat

and
in

Asian

subordination to seek their political fortunes

a

is

humility and understanding,

recollection

It

the

taking from

loierant

to

a

for

lie

the influence

to

But with ail tnis,
tney must not

expect us to

is

that

,co"ce£H
01 iree
enterpnse themselves in
means
or

trie

as

27

It

54%

7

14

24

32

100%

100%

15.8%

15.2%

5.3

5.0

$2.10

$1.70

2.38

1.94

■

t

<rj;
;

.

r!

■

The Commercial and

Financial Chronicle

The State of

damage in the Northwest.
decline

The

Tiade and Industry

mainly attributed to

was

apprehension over the

production and marketing quota referendum
week, which will affect the 1954 Government price sup¬

Robert

held last

pen

and the absence of export
trade were also bearish influences in wheat. Other grains were af¬
fected by the break in wheat although declines were not as large
as in the bread cereal.
Trading in grain and soybean futures on
the Chicago Board of Trade in the preceding week fell to a daily
average of 44,100,000 bushels from 47,700,000 a week earlier, and

.supply for almost three years.

.

from one single con¬
suming area but from many segments. This easing must not be
interpreted as a falling apart of the bar market, continues
is
trade paper, since the pressure for hot-rolled bars, particularly
the larger sizes, has been so intense that there could be a con¬
siderable easing and still a strong demand would exist. A major¬
ity of consumers still indicate they want their full mill quotas of
The easing

stemming not

in pressure is

fourth quarter.
Improvement that may be indicated in steel
^easing of hot-rolled carbon bars should not be
hot-rolled bars for the

61,700,000 a year ago.
Flour prices trended downward at the close of

availability by the
looked upon as a
welcomed by steel consumers

extended commitments in the
when the

would be
and steel producers alike, "Steel" notes.
In an effort to make enough steel to fill the demand, steel
producers have been, and still are, increasing their production
capacities. In addition, they have been utilizing their facilities to
a high degree.
Another proof of this is their new July production
■record. The new record, set last month, is 9,284,000 net tons of
cteel for ingots and castings. That marked the sixth month this
year that production exceeded nine million tons and helped set
a record for the first seven months of a year: 67,229,936 tons, this
trade journal points out.
The American Iron and Steel Institute announced that the
^operating rate of steel companies having 93% of the steelmaking
capacity for the entire industry will be at an average of 96.3%
capacity for the week beginning Aug. 17, 1953, equivalent to
2,170,000 tons of ingots and steel for castings as against 95.2%
(revised), or 2,146,000 tons a week ago. For the like week a month
jag© the rate was 94.4% and production 2,128,000 tons.
A year ago
-the weekly production was placed at 2,017,000 tons and the operat¬
ing rate was 97.1% of capacity.
A balance

•catastrophe.

Demand continued on
jobbers showing reluctance to make any
belief that prices will work lower

and

bakers

with

basis

of weakness after moving upward for
Profit-taking and the Brazilian exchange
action combined to depress prices as the week closed. The Chi¬
Cocoa also showed signs

than

month.

a

livestock market

cago

mildly lower during the week and
sharply at the close following the unexpectedly large official

Spot cotton prices drifted
fell

estimate issued on Aug. 10.

crop

the season, the Crop Reporting Board

its first report of

3.5% from the actual 1952 production
Reported sales of the staple in the 10 spot
markets showed a moderate increase and totaled 63,200 bales for
the week, against 48,300 the previous week and 77,500 in the cor¬
will show

of

responding week a year ago. Repayments on 1952-crop cotton in
the week ended July 31 increased sharply to 54,300 bales, from

season

Week Registered New
High Record
distributed by the electric

light

industry for the week ended Saturday, Aug. 15,
estimated at 8,513,782,000 kwh., according to the Edison

1953,

was

Elec¬

all-time high record and reflected an
increase of 50,166,000 kwh. above the previous week's figure of
€,463,616,000 kwh. The preceding high point for the industry was
at 8,511,622,000 kwh. and occurred in the week ended Aug. 1, 1953.
The current total was a gain of 887,174,000 kwh. or 11.6%
aver the comparable
1952 week and an increase of 1,349,313,000

Output in Latest Week

Relaxed

Retail

Canadian companies made

y

Advanced About 12%

and Northwest
Coast

year

week

ended

and

Aug.

13

from

195

failures

in

broad

with

or more were

lower

The

buying

from

It compared with $6.66
decline of 0.5%.

promotions

Ponce de Leon Boule¬

pany, 2148
vard.

Goodbody Staff
to The Financial

Chronicle)

MYERS, Fla. —Robert J^
Hyman has become affiliated witli
Goodbody & Co., First National
Bank Building.

With King Merritt
(Special to The Financial

Chronicle)

MIAMI, Fla.—Paul E. Watkins;
has joined the staff of King Mer¬
ritt

&

He was
Kidder &

Co., Inc.
A.

M.

formerlyCo.

and

Sheehan & Wolf, Inc.

A. C.
(Special

Pacific

Allyn Adds

to The Financial

BOSTON, Mass.
staff
30

of

has
A.

been

C.

—

Chronicle)

Andreas P„_

added

to

the^

Allyn & Co., Inc.,

Federal Street.

were

for major appliances

and television

promotions combined to stir wide inter¬

on

come.

of

slowdown of recent weeks
fall needs.
be

to

volume

the

h

inventories,

buyers

a

year

were

store

sales

earlier.

generally

Despite
not

par¬

Reserve

country-wide basis, as taken
Board's index, for the week ended
on

was

on

a

was

adversely affected by unfavor¬

Friday of last week and,

expected to show

a

as a

decline of 4

or

consequence,

sales

5% from the 1952

According to the Federal Reserve Board's index department
City for the weekly period ended Aug. 8,

store sales in New York
a

1953, advanced 4% from the like period of last year. In the pre¬
no change was reported from that of the similar
of 1952, while for the four weeks ended Aug. 8, 1953, an
increase of 3% was reported. For the period Jan. 1 to Aug. 8, 1953,
an increase of 1% was registered from that of 1952.

ceding week
week

<P
Uj

wholesale trade

period.

index compiled by

Grain markets were very unsettled last week. All grains reg¬

buyers placed reorders

dollar volume of

total

Retail trade in New York

Registered

Bradstreet, Inc., continued its decline from the year's high

many

moderately larger than
of

Federal

able weather

Moderate Decline

point touched a few weeks ago. The index closed at 280.44 on
Aug. 11, as compared with 281.26 a week earlier, and 293,15 a

The

as

1952.

volume




—

become?

a year ago.

1953, department stores' sales registered an increase of 4% above

the sum total of the price per pound of
31 foods in general use, and its chief function is to show the gen¬
eral trend of food prices at the wholesale level.

year ago.

&

Aug. 8, 1953, rose 2% from the level of the preceding week.
In
the previous week a decrease of 1% was reported from that of
the similar week of 1952. For the four weeks ended Aug. 8. 1953,
an increase of 2% was recorded.
For the period Jan. 1 to Aug. 8,

The index represents

{

than the level of

by Dun

ticularly apprehensive.

the corresponding date a year ago, or a

Dun &

has

of consumption.

record

Straight Week

The daily wholesale commodity price

MacRae

apparel continued to surpass that of a
Widely popular were slacks, sportswear, men's shirts
children's clothing. The buying of Fall clothing was notice¬
spent

Department

Wholesale Commodity Price Index

Fla.

GABLES,

G.

connected with Barham and Com¬

earlier.

continued

measured by the Dun & Bradstreet wholesale
.Food Price Index, continued to drop for the third successive week.
The index fell four cents to $6.63 on Aug. 11, the lowest in five

^

total

for their

as

since July 7, when it was $6.62.

the call

clearances and Fall

sonal

Wholesale Food Price Index Declines for

or

estimated

was

gains over the year-ago levels were reported in
margarine, frozen foods, canned beverages. The
supplies of fresh produce mounted in many parts.
Trading activity in many wholesale markets in the period
ended on Wednesday of last week emerged further from the sea¬

$5,000 which dropped to 18 from 41 in the previous week
of 1952. Ten concerns failed with
liabilities in excess of $100,000, compared with 26 last week.

weeks,

CORAL
Evander

desultory.

est.

the

and 30 in the comparable week

4m

Joins Barham Staff
(Special to The Financial Chronicle)

Substantial

under

Third

San Fran¬

quite effec¬
"White sales" also spurred consumer demand.

mer

level

week, but exceeded the total of a year ago. A sharper
took place among small failures, those with liabilities

prices,

and

Stock Exchanges.

bought about as much food as during the prior
than in the similar 1952 week.
Aggressive promotions of poultry and beef sustained the high

at 132 last

Food

cisco

York

New

the

of

Co.,,

members;

Street,

week and moderately more

similar week of 1939.

•decline

Montgomery

Housewives

&

Continuing below the pre¬
from 253 recorded in the

of $5,000

1 i f.—

to the staff of Dean Witter &

Klauer

demand;

the months to

the

Bradstreet, Inc., reports.
Despite this decrease, casualties re¬
mained heavier than a year ago when 141 occurred but were off

Casualties involving liabilitites

a

ably larger than in recent weeks, pointing to substantial sales in

150 in

in the preceding week, Dun

slightly from the toll of 158 in 1951.
war
level, failures were down 41%

C

•

has been added

Shoppers boosted their buying of apparel last week as Sum¬

year

declined to

FRANCISCO,
J. Basham

David

with

household goods than in either the
the similar week last year.

or

sets remained

earlier period.

industrial

(Special to The Financial Chronicle)

SAN

Decorating materials, incidental furniture and bedding were

A year ago truck output

and

Commercial

interest.

+1 to -f; South +2 to +6; Southwest and

tive in most cities.

Business Failures Dip in Latest Week

;

shoppers'

favorable year-to-

;

the week

The traditional August furniture

like 1952 week. Truck
production amounted to 265 units last week, against nine the week
in the

more

+3 to +7.

prior week

2,180 in the previous week and 3,147 in the
feefore and 1,131

up

More money was spent on

week totaled 24,961 com¬

1,548 cars last week, compared

With Dean Witter Co,
-

Regional estimates varied from the comparable 1952 levels by the
following percentages: New England and East 0 to +4; Midwest

week rose about 12% above
Automotive Reports."
The industry turned out 125,959 cars last week, compared
with 112,491 in the previous week.
A year ago, because of the
ateel strike, the weekly production was only 22,776.
pared with 22,991 the previous week.
was only 9,836 units.

chalked

in

dollar volume

sustain

to

helped

terms

Bradstreet to be from 1 to 5% higher

preceding period, states "Ward's

United States truck production last

credit

shopping centers

gains than did large city stores.

year

;

on

Suburban

Automotive output for the latest

the

increased

shoppers

promotions,

Ex—

Stock

FT.

demand for back-to-school needs.

the like week of 1951.

U. S. Auto

Higher Aided By

sligthly in many parts of the nation in the period
Wednesday of last week, states Dun & Bradstreet. As
during the past year most retailers were able to surpass the sales
figures of a year ago. The approach of fall was heralded by rising
ended

This represented a new

over

special

many

Market.

-

Joins

their spending

tric Institute.

Icwh.

by

with.

is

600

of the

Special Promotions
Attracted

Co.,

Francisco

San

and-

changes.

(Special

Electric Output Last

&

Street, members of the New York

totaled 1.751,300 bales.

Trade Volume Continues

The amount of electric energy

volume

9,800 the week before, and represented the largest weekly
for the 1952-1953 season.
Loans outstanding at the end

Alchimisti

Schwabacher

drop of only

a

15,136,000 bales.

Calif.—

FRANCISCO,
G.

Elliott

45

of
the Department of Agriculture forecast a 1953 yield of 14,605,000
bales, or considerably above the average of private estimators
which ran about 14,100,000 bales.
This year's crop, if fulfilled,
In

Street.

Sutter

(Special to The Financial Chronicle)

SAN

•

.

Managed Investment

41

Programs,

-

■

with

nected

values in the latter half of the

their lowest levels since mid-April.

Calif.—

FRANCISCO,

Martinus A. Lien has become con¬

featured by a sharp upturn in nog
week after prices had dropped to

was

Inv.

Schwabacher Co. Adds

coffee.

Register Decline of 1.1% in Latest Week
Loading of revenue freight for the week ended Aug. 8, 1953,
decreased 8,405 cars, or 1.1% below the preceding week, accord¬
ing to the Association of American Railroads.
Loadings totaled 785,349 cars, an increase of 3,701 cars or
d.5% above the corresponding 1952 week, but a decrease of 24,H916 cars or 3.0% under the corresponding 1951 week.

and power

With Managed

(Special to The Financial Chronicle)

of the week, coffee futures as well

Monday of last week following
the announcement that the Brazilian Government had revised its
exchange regulations as affecting minimum export prices for

4]!ar Loadings

Ail-Time

Exchanges.

spot prices declined sharply on

more

425 Montgom¬

Street, members of the New
York
and
San
Francisco Stock

ery

develops in the Northwest.

wheat corp movement

new

After holding steady most
as

and K. B. Stedman are now

SAN

the week fol¬
a hand-to-mounth

lowing early firmness.

.

#

business

flour

1 i f:-^

a

Buckley, J. Harry Or-

J.

with Davies & Co.,
poor

C

FRANCISCO,

SAN

outcome of the wheat

Continued

.

(Special to The Financial Chronicle)

port program.

i

Thursday, August 20, 1953

.

Three With Davies Co,

wheat, despite reports of rust

sharp losses, particularly

istered

5

Continued from page

"'

.

.

(648)

518

tmm(i

\

ri
di

tn

to
*

'Volume 178

Number 5248

;.

The Commercial and Financial Chronicle

.

if

The

Indications of Current
Business
Indicated

steel

Equivalent
Steel

operations

latest week

Activity

(percent of capacity)..

following statistical tabulations

week

AMERICAN IRON AND STEEL INSTITUTE:

Latest

Previous

Week

Week

or

month available.^

or

month ended
Month

(net tons)

42

oil

and

gallons

condensate

each)

Ago

§96.3

"95.2

94.4

97.1

Aug. 23

§2,170,000

*2,146,000

2,128,000

2,017,000

ALUMINUM

(BUREAU OF MINES):
Production of primary aluminum in the U. S.
(in short tons)—Month of June

Stocks of aluminum

output—daily

(bbls.

average

Aug.
Aug.

117,063,000

7,024,000

7,267,000

(bbls.)

Aug.

25,002,000

22,984,000

(bbls.)

Aug.

24,477,000
2,196,000

24,783,000

output

"2,309,000

Distillate

2,547,000

fuel

2,604,000

9,744,000

9,774,000

10,237,000

10,178,000

to stills—daily average

(bbls.)

oil

8,576,000

8,586,000

8,965,000

8,856,000

143,319,000

.

_

ASSOCIATION

OF

AMERICAN

CIVIL

"

ENGINEERING

CONSTRUCTION

(no.

of cars)

__

~

47,154,000

793,754

721,454

781,648

637,611

562,345

642,857

IV

$311,332,000

$326,510,000

$264,210,000

Aug. 13

167,693,000

,220,942,000

148,808,000

Aug. 13

143,639,000

Aug. 13

116,636,000

Aug. 13

;

SYSTEM—1947-49

105,568,000

h

162,373,000

81,009,000

27,003,000

20,946,000

34,393,000

50,739,000
105,634,000

9,390,000

♦9,250,000

6,910,000

9,430,000

Aug.

536,000

589,000

590,000

713,000

Aug.

90,700

♦95,900

91,500

46,500

FAILURES

(COMMERCIAL

BRADSTREET,
-'

AND

INDUSTRIAL)

(per

Scrap steel (per
METAL PRICES

92

86

92

90

M.

&

Electrolytic copper— .Domestic refinery at
Export refinery at—

y

J.

Lead

(St. Louis)

Zinc

(East St.

\

150

8,463,616

8,209,203

7,626,608

195

148

4.634c

Aug. 11

$56.76

$56.76

$56.76

$55.26

Aug. 11

$44.42

$44.58

$44.83

$42.00

YIELD DAILY

Aa

OIL,

PAINT

1949

AND

AVERAGE

EXCHANGE
sales

—

Number

of

shares

'

end of

93.53

97.06

103.47

Aug. 18

109.79

108.88

109.06

107.98

Aug. 18

114.27

106.21

106.21

105.42

Aug. 18

112.00

103.30

103.13

102.46

109.24

PRICE

short

sales.

other

sales.

shares—Total

Customers'

short

sales

Customers'

other

sales

sales

Other

sales

Round-lot

98.25

103.97

102.30

101.31

•106.92

103.47

103.64

103.47

Aug. 18

109.42

106.56

106.56

105.52

112.93

Aug. 18

2.99

2.99

Aug. 18

3.50

3.50

and

42,000

41,000

26,000

21,798,000
12,170,000

18,839,000

16,903,000

11,269,000

12,586,000

227,504,000
24,325,000

240,528,000

210,735,000

2,553,000

*6,140,000

2.98
3.54

....

Other

(tons)

80,825
74,204

81,617
76,784

76,930
43,353

103,906

97,285

96,919

32,327

44,307

46,547

$3,273

$3,199

2,172

2,149

1,101

1,110

970

980

107

107

24

23

17

493

479

'414

179

187

181

•

1

_

—_;

—

:

(nonfarm)

_

_

__

building

1

_

__

Farm

and

institutional
__

_

utiilties

Railroad

—

..

-

__

__

__

__

construction

Public

.

recreational

and

-

_

.

_

All

public

other

Public

utilities

—

private
_

_

building

Aug. 18

3.38

3.38

3.42

3.55

3.56

3.60

3.21

3.22

3.28

3.85

3.84

3.86

3.51

3.61

3.61

3.67

3.34

3.36

Aug. 18

421.3

3.54

3.20

3.36

3.42

3.01

417.5

427.1

435.6

and

Sewer

346,228

255,766

8

175,234

261,943

233,200

251,865

141,246

220,763

Aug.

8

98

95

54

89

_„.6>

a

608,519

522,529

598,538

456,005

and

naval

July

H

106.05

106.32

106.06

14

27

26

30

28

—

29
11
36

25

155

148

171

410

399

370

41

38

53

52

51

314

306

281

384

371

*>•'

169

161*

144

142

138

30

32

43

41

41

126

121

128

360

330

328

67

.»

41

63

20
".t

33

,

9

enterprises—

CONSTRUCTION

64

1

17

17

,

78

-

?6...

77

10

9

6

$1,262,992

$1,318,070

$2,310,504

EN¬

NEWS-RECORD— Month

of

construction
construction
and

——

municipal

Federal
110.07
COAL OUTPUT

(BUREAU

663,704

677,219

606,317

599,288

640,851

1,704,187

433,436

475,914

449,703

165,852

164,937

1,254,484

34,870,000

39,115,000

•25,782,000

2,474,000

♦2,886,000

2,484,000

395,300

♦484,000

59,300

OF MINES)—Month

of July:

tug.

21,635

19,020

20,882

24,301

lug.

626,405

531,325

553,322

lug.

$28,221,869

697,796

$23,920,924

$25,060,128

$32,123,853

Aug.

20,029

17,948

16,506 1

and

127

133

132

85

lug.

19,902

17,815

16,374

Aug.

20,805

547.472

489,415

450,843

589,114

lug.

4,578

4,870

6,672

lug.

2,887

542,894

44,171

586,227

$21,535,810

484,545
$19,369,069

$17,703,452

$24,478,557

178,530

153,220

122,150

166,740

122,150

166,740

Aug.

1

—Aug.

1

Aug.

1

lug,

1

178,530

153,220

lignite

Pennsylvania

anthracite

Beehive

(net tons)

coke

CONSUMER

All

(net tons)

(net tons)

INDEX—1947-49

PRICE

of

Month

20,890

lug.

dealers—

purchases by dealers—

15

I 54

,

service

development—

construction

Bituminons coal

_■_<

3#

1,045

—

public

S.

Private

—

sales

134

38

36

(OOO's omitted):
U.

Public

COMMISSION:

purchases)

140

41

389

'

water

ENGINEERING

Total

149

50

building-facilities

public

CIVIL

58

13

Institutional

and

other

41

1,050

__

_

Conservation

State

Xug

_

Miscellaneous
All

99

56

>96

51

nonresidential

Military and
Highways

3.06

Aug. is

3.53

Other

2.94

Aug. 18
Aug. 18
Aug. 18

3.54

Hospital

152

60

172
___

101

13

building

Nonresidential

910

1,101

—

construction

Residential

1,028
:

105

43

_

Telephone and telegraph
Other

1,992
-

165

_

nonresidential

Hospital

3.18

3.23

—

100-

June:

1

items

Food

—

Food

home

at

Cereals

—

bakery

and

products-—

Meats, poultry and fish
Dairy products
Fruits and vegetables
Other

foods

home

at

—

Rent

114.5

114.0

113.4

113.7

112.1

114.6

113.7

111.7

114.6

118.9

118.4

111.3

109.2

107.5

107.8

108.9

321.7

115.2

122.4

110.9

1,10.3

116.9
116.5

,

105.2

117.4

117.1

114.0

123.3

123.0

117.6

106.4

106.6

104.3

'

Number

TOTAL

of

shares__

ROUND-LOT

STOCK

SALES

EXCHANGE AND ROUND-LOT
FOR ACCOUNT
-

Total

Round-lot

Short

OF

ON

THE

STOCK

MEMBERS

NEW

Gas

258,700

(SHARES):

217,850

273,750

July 25

—

y-'Total purchases
Vv-

;

^

f

"

Short

sales

Other

sales

*

il

Total sales

'i_—

Other transactions

,•

,,/y

''

•

Total purchases:-.—
>1 Short sales
It

r

y
■' *-'■

,

••••'

„

o

189,020

240,150

4,373,410

4,562,430

4,553,360

213,480
5,162,870

5,247,660

4,793,510

5,376,350

5,467,210

219.550

J

■

—

[

sales

;

LABOR

sales

:

—

.

.

(1947-49

SERIES

—

U.

S.

DEPT.

Farm

.

:

♦Revised

of

Jan.

Month

'uly 25

385,660

420,290

446,920

512,730

481,070
574,800

438,050

July 25
Tuly 25

81.120

90,140

170,070

107,340

562,750

15,600

22,900

'

9.300

11,400

"uly 25

78,280

101,250

157,230

July 25

93,880

124,150

166,530

101,300
112,700

191,395

212,420

238,888

203,035

54,300

42,360

54.350

43,670

.

as

of

264,565

Tuly 25

710,875

817,440

1,010,478

848,825

uly 25

131,160

157,700

157,380

179,770

Seasonally
Unadjusted

803,915
983,685

cars)

—

cf month

108

*114

105

87

*108

84

6,370

6,463

5,402

47,423

52,315

95,265

241

240

204

242

240

205

(number

!

cars)

308,235

953,872

of

(number

Backlog of orders at end

315,572

1,111,252

RE¬

Average.^160)—

CAR INSTITUTE)—Month

RAILWAY

369,922

725,000

106.8

,115.7

of July:

245,820

882,700

w1180

„

July:

INDUSTRIAL PRODUCTION—BOARD OF GOV¬
OF

THE

SYSTEM—1935-39

adjusted

=

FEDERAL
J00—Month
1

RESERVE
of

June:

—*———

RAILROAD EARNINGS—CLASS I ROADS

SOCIATION

OF AMERICAN

(AS¬

RRs.)—Month

of June:

___

foods—..i.

1953

CAN

203,460

682,418

,

FREIGHT CAR OUTPUT—DOMESTIC (AMERI¬

272,778

813,578

111.7

108.0
"

118.2

——

(FEDERAL

SALES

STORE

105.6

112.8

112.6
107.8

——

Adjusted for seasonal variations
Without
seasonal
adjustment

218,478

uly 25

—-—-

——

recreation

SYSTSM—1947-49
of

uly 25

uly 25

—

and services.——

DEPARTMENT

against




110.6

Jan.

1.

1952

basis

of

110.5

112.0

Total

operating revenues—
operating expenses

96.6

*97.0

110.0

Total

vug. 11

104.7

*105.2

104.6

110.8

Operating

ug. 11

93.1

*94.6

95.9

116.4

TaxesJ

11

114.8

*114.8

114.5

112.7

Net railway

SBased
the

*110.7

Vug. 11

figure.'1 Hhcludes"v 6
1,

and

SERVE

ug.

•s

care

Reading

Other-goods

124,700

Aug. 11

,

products—

J. Processed

Personal

538,450

OF

'

,

117.8

93,730

100):.

=

commodities—'-

120.7

594,520

Commodity Group—
All

126.3

121.1

operation

care

ERNORS

—

NEW

129.4

92,440

"uly 25
uly 25

;

PRICES,

129.4

Deliveries

_

Total sales

WHOLESALE

.

111.2

104.7

514,880

Tuly 25

Total sales

.

107.7

104.6

61,260

r

Other

115.8

114.7

438,360

the floor—

:

sales

121.8

107.6

115.4

Tuly 25

"uly 25

Total round-lot transactions for account of members—
Total purchases
'
/
Short

121.8
108.0

"uly 25

floor—r-

-l

sales

Other
*

the

_

transactions initiated ^bff
Total purchases
;
Short

oil

Household

Medical

,

1

*

Other

-

.

on

other- sales

Total sales
:

initiated

fuel

Housefurnishings

Transportation

.

!•'

electricity

Apparel

>y\ •'.>'* Other sales
July 25
...v
•;-Total, salesJuly 25
V **' - BOUND-LOT TRANSACTION# FOR ACCOUNT OF MEMV.
f
BEES, EXCEPT-OOD-LOTiBEALERS AND SPECIALISTS:
•"'"'•ri Transactions of specialiste'iff. stocks in which registered—

,

and

Solid fuels and

'

sales

v

198,000

YORK

TRANSACTIONS

yr

sales—

-

$3,037

•

,
__

Religious

2.70
,

,

16,770,000

(tons of

alterations

_

Educational

Aug. 18

lug.

by

!

Warehouses, office and loft buildingsStores, restaurants, and garages

r

8

sales

shares—Total

tales

98.57

102.30

Aug. 18

Aug.

Dollar .value
of

98.41

Aug. 18

INDEX—

EXCHANGE

(customers'

Customers'

Short

Aug. 18

—Aug.

period

REPORTER

Customers'

Number

193,389,000
19,543,000

175,106,000
158,310,000

19,733,000

(nonfarm)

units

Industrial

13.960c

93.18

—i.

value

Round-lot

11.000c

104.14

,_.

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

of

dwelling

GINEERING

SECURITIES

orders

Number

10.890c

ASSOCIATION:

at

by dealers

of

212,973,000

198,086,000

export

—

period

Nonhousekeeping
Nonresidential building

100

Number

Dollar

11.000c

93.10

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N.
Y. STOCK
Odd-lot

29.550c

104.14

INDEX

DRUG

29.150c

Aug. 18
Aug. 18

1

——

=

building

Social

__

(tons)

217,861,000

Industrial

activity—i.i—!__!_;—

orders

143.700

construction

15.800c

(tons)—.

(tons)

-Unfilled

-

—_

PAPERBOARD

of

191,931

(tons)-

of

end

Miscellaneous

_V

.

received

88,400

160,876

pounds)

construction

new

Residential

24.200c

AVERAGES:

!—

.-

Percentage

Total

13.300c

Group-—-;.

Production

3,131,100

77,027

r

CONSTRUCTION—U. S. DEPT. OF
LABOR—Month of July (in millions):

13.800c

!!!

Orders
-

3,363,200

4,016,907

BUILDING

13.800c

i

——

COMMODITY

2,000

period

at

Aug. 12

.UZtJLl

NATIONAL

of

Educational

8. Government Bonds.

MOODY'S

end

orders

16.000c

'

Group

at

34.850c

—

-Industrials

Stocks

Unfilled

121.500c

r__

Baa

4,285,865

3,561,013

J
of

83.000c

Group—
Group—

Railroad Group
Public Utilities

and

output, all grades

(tons

13.500c

Utilities

Aaa

(barrels)

pounds)

29.625c

/

Average corporate

zinc smelter

2,000

Shipments

4.376c

29.700C

753

3,787,659

—

(barrels),!

domestic

_

29.700c

P13'

!

78.750c

'

1;:.

July:

14.000c"

—

BOND

29.450c

77,476

K

INSTITUTE, INC.—Month of

78.750c

i_:

A

U.

Increase all stocks
AMERICAN ZINC

Additions

4.634c

Aug. 12

Aa

MOODY'S

(barrels)

(barrels)

imports

14.000c

:

Group

qutput

output

consumption

Aug. 12

at-

corporate

Industrials

Crude

141

4.634c

Aug. 12

Aaa

Public

oil

gasoline

Aug. 12

MOODY'S BOND PRICES DAILY AVERAGES;
U. S. Government Bonds-—,
;

Railroad

21,015

(barrels of 42 gal¬

output
(barrels)
oil imports (barrels)—,—!

Private

Aug. 11

at

Baa

105,464

17,810

,

Commercial

'

Average

1C4,152

INSTITUTE—Month

production

Domestic .cfude

QUOTATIONS):

at—_:

Louis)

8,513,782

Aug. 12

(New York)
Lead (New York) at

.

Ago

:

.

Straits tin

-

Aug. 15

Aug. 13

s>

gross ton)

(E.

I

each)

Benzol

&

ton)-

gross

PETROLEUM

New

•

Pig iron

DUN

INC.r-Ili

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)

■

—

Month

65,770

therms)

.

Aug.

Electric output (in 000 kwh.)_

,

lons

Slab

100

=

(M

-

May:

Total domestic

75,127,000

115,402,000;

.

EDISON ELECTRIC INSTITUTE:
i

of

sales

gas

AMERICAN

INDEX—FEDERAL RESERVE

AVERAGE

therms)

$237,500,000

84,622,000

Aug.

(tons)__v._!

'

(M

gas

Mixed

(U, S: BUREAU'OF MINES):

DEPARTMENT STORE SALES

Year

Month

end of June

gas sales (M therms)—
Manufactured gas sales (M therms)

Natural
-

Aug- 13

and lignite-(tons)
Pennsylvania anthracite (tons)
coke

Previous

ASSOCIATION—For month of

Refined .products

Bituminous coal

Beehive

49,547,000

GAS

Indicated

•

State-and municipal

(Short tons)

Natural

*

•'Federal
COAL OUTPUT

49,488,000

90,355,000
51,302,000

652,005

C Private construction1':.!!^.^,---\ V :> public construction
—lil
•

28,808,000

90,253,000

Aug.

'

'

116,930,000

28,991,000

785,349

of that date:

are as

June:
Total

ENGINEERING

—

NEWS-RECORD">,<

■

144,053,000

30,732,000
102,651,000

Aug.

Total U. 8; -construction-

.

143,423,000

31,681,000
106,710,000

AMERICAN

RAILROADS:

Revenue freight loaded (number of cars)
Revenue freight received fromt connections

-

"

*

6,515,700

output

runs

output (bbls.).
Aug.
Residual fuel oil output (bbls.)
.Aug.
Stocks at refineries, bulk terminals, in transit, in
pipe lines—
Finished and unfinished gasoline (bbls.)
at
Aug.
Kerosene (bbls.) at._--.i__
Aug.
Distillate fuel oil (bbls.)rat
Aug.
Residual fuel oil (bbls.) at
Aug.

'

6,556,750

6.538,250

either for the-'

are

Latest

of

*

Kerosene

Gasoline

of quotations,

cases

Ago

Aug. 23

6,266,950
6,909,000

Crude

in

Year

AMERICAN PETROLEUM INSTITUTE:
Crude

Dates shown in first column
or,

2&

(649)

production and other figures for the\

cover

that date,

on

to—

ingots and castings

i'I"

y>

10 J,587.670

tons.

on

new

annual

97.4,

capacity

of

117,547,470 tons

$924,362,095

688,949,438

*—

ratio
:

•

operating income before charges
Net income after charges
(estimated)—
♦Revised

figure.

tDecrease.

$901,633,922 $814,450,637
680,507,810

645,879,984

74.53

75.47

79.18

$114,518,138

$106,270,668

$85,395,654

99,672,829

95,393,045

68,100,108

79,000,000

74,000,000

53,000,<>00

30

The

(C50)

Commercial and Financial Chronicle..

.

.

Thursday, August 20, 195£

* IN DICATES

Securities Now in Registration

Wisconsin Power & Light

Billings, Mont.
notification) 60,000 shares Of common
(par 50 cents). Price—$5 per share. Proceeds—For

A- Ajax Oil Co.,

(Tellier

July 14 filed 50,000 shares of preferred stock (no par)
and 50,000 shares of common stock (no par) to be of¬
fered to commissioned officers of the uniformed serv¬
ices of the United States in units of five shares of each
class of stock. Price—$495 per unit.
Payment may be
made in 36 equal monthly instalments of $13.75 each.
Proceeds —For
general
corporate purposes.
Under¬

(Bids

Proceeds—For

subscription

Southern Union Gas Co..

&

and

tubes.

(Bids

Co.

on

the

basis

of

15-for-l.

stock

of each.

sion

Price—$12.50

costs.

Bell

11

(Offering

invited)

be

(Bids

11

(Bids to

invited)

Ionics, Inc.

(Lee

15,000 shares on behalf of John R.
Vice-President. Price—At par ($1 per share.

Pacific

Aug. 6 (letter of notification) 299,500 shares of common
stock (par one cent). Price—$1 per share. Proceeds—For

(Stone

to

invited)

be

(The

Corp.

Boston

First

and

Debentures

,

Corp.)

Louisiana

Power

$35,000,000

Light Co

&

(Bids

common

stockholders of record Aug. 3 at the rate of 86 shares for
each 100 shares held (with an
oversubscription

EDT)

noon

September 17

privi¬
/

Bonds

(Thursday)

Bonds

September 25

(Friday)

American Fidelity & Casualty Co._
&

Co.)

$750,000

.

New

'I

Preferred

Philadelphia

San Francisco

Private Wires




Pittsburgh

to

all

offices

Chicago

Cleveland

October

Mississippi

Power

Co

(Bids

be

to

6

Helicopters, Inc., Danbury, Conn.

'

194,91§ shares

Bonds
$4,000,000

4^ Duquesne

Light Co.

(9/15-17-22)

Aug.

(Tuesday)

Invited)

Underwriter—
•/'

..

19 filed $12,000,000 of first- mortgage bonds due
Sept. lj 1977; 100,000 shares of preferred stock < oar $50),
and 184,739 shares of common stock (par $10
Proceeds
To repay bank loans and for new construction. Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders: (1) For bonds only:- Halsey, Stuart & Co.

(Wednesday)

England Gas & Electric Association.Common
dealer-manager)

Boston

Doman

Ave., Detroit 32, Mich.

writer*—None.

(Offering to stockholders—The First Boston Corp. to be

New York

'

'
-

September 30

per

,

invited) $12,000,000

to be

(Geyer

r

(Tuesday),

Duquesne Light Co
(Bids

exchange.

Co., Charlotte, N. C. (9/1)
$35,000,000 of first and refunding -mortgage
bonds (fue 1983. Proceeds—To repay bank loans and for
new
construction. Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; Stone & Webster Se¬
curities" Corp.; The First Boston Corp. Bids—Expected
to be received to 11:30 a.m. (EDT) on Sept. 1.
• Duke Power Co., Charlotte, N. C.
(9/2)
July 30- filed 208,321 shares of common stock (no par)
to be offered for subscription by stockholders-of record
Sept. 2jJ953 on the basis of one new share for.^each 20
shares Tield (with an oversubscription privilege): riehts
to expire on Sept. 18. Price—$30 per share.
"Proceeds—
To repay bank loans and for new construction
Under¬

about $5,000,000

September 22

share). Proceeds—To construct
Office—112 We§t jElm St;;' Syca¬
111., Underwriter—None?'- vT
($10

par

Duke Power

Preferred

(Bids to invited)

offered for subscription by stockholdes at
new share for each Tour shares held.

one

July 30 filed

$12,000,000

Duquesne Light Co

of

(letter of notification) 60,000 shares of common
stock
(par $1).
Price—$3 perr, share.
Proceeds—For
working capital to reduce notes payable by $100,000 and
for useyin C. A. A. certification of the LZ-5, which if
designed to meet specific needs of the Army Field '"orces.
Underwriter—Greene & Co., New York.

$10,000,000

Co.)

to be

Aug. 4

...Preferred

Securities

&

Telephone Co.,. Sycamore. 111.

telephone

•

September 16 (Wednesday)

Buckeye Incubator Co., Springfield, Ohio
July 27 (letter of notification) 215,000 shares of common

share.

Weld

pur-

(letter of notification). 25,695 shares of common

rate

None.

Carolina Telephone & Telegraph Co._^
Common
(Offering to stockholders—no underwriting) 33,320 shares J

i

per

Webster

20-year certificates

Underwriter—None.'1

Woodrow Wilson

-

$50,000,000

Westinghouse Air Brake Co

60 Wall

Price—$1.35

&

White,

drilling and working capital. Office—Room 702,
St., New York, N. Y. Underwriter—Charles J.
Maggio, Inc., New York; Jackson & Co., Boston, Mass.;
and Claybaugh Securities Co., Harrisburg, Pa.

<

Debs.

Co.

Tennessee Gas Transmission Co

well

,

131,784 shares

Telegraph

&

Telephone

10-year certificates of

of 5V2%

Proceeds—For general corporate

Price—At

more,

.Debentures

Corp.)

9V2 cents per

—

A Detrex Corp., Detroit, Mich.
'/■*
Aug. 14 (letter of notification) 27,290 shares of common
stock (par $2) to be sold to employfees.; Price— $10 per
share.
Proceeds —For working capital.
Office — 14331

Common

(Bids

New York

the

'

Higginson Corp.) between $20,000,000 and $25,000,0001
(Lee Higginson

Underwriter—None.

lege); rights to expire Aug. 31.

stock,

184,739 shares

$650,000

DeKalb & Ogle

Common
be

and

indebtedness.

poses.

(Tuesday)

15

September

of the company and

(par $1) being offered for subscription by

of

Debentures

Duquesne Light Co

Price

Association,

filed $150,000 of 4y2%

'

Commonv

$20,000,000

EDT)

a.m.

Bids—

& Co., Denver, Colo.

indebtedness

shares

Co..

for the

part,

Corp., Denver, Colo.

(par five cents).

*

(Monday)

September 14
Tennessee Gas Transmission

Household Finance Corp

stock

Shelley

I.

Aug.

$6,000,000

Corp._____Common

350,000

stock

June 24

Big Spring Exploration, Inc.
Aug. 12 (letter of notification) 50,000 shares of common
stock, of which 35,000 shares will be sold for the account

Blackwater Gas & Oil Corp.,

E.

Corp._..Debentures

Central Illinois Public Service Co...
to

in

(letter of notification) 940,000 shares of class A

A Consumers Cooperative
i
Kansas City, Mo.

share

per

working capital.

538,703 shares

iPeabody & Co.

(Bids

the company,

share.^Proceeds—For drilling expenses and equipment.
Office-^-711 E & C Bldg., Denver, Colo. Underwriter—

Common

stockholders—may be underwritten by Kidder,"
ana Estabrook & Co.) 133,978 shares

to

Fuel

Cold-Kan

(Wednesday)

(Underwriters to be named later;

r

property

common

(Thursday)

Central Hudson Gas & Electric

r

Corp.; Lehman Brothers; Glore, Forgan & Co,
Tentatively expected to be received on Sept. 9.

208,321 shares

$30,000,000

EDT)

a.m.

Central Hudson Gas & Electric

unit. Proceeds—For expan¬
Office—Hailey, Ida. Underwriter—None.

Proceeds—For

Peabody

additions and improvements. Under¬
writers*— To
be
determined
by competitive' bidding.
Probable bidders: Blyth & Co., Inc.; The First Boston
of

costs

...Debentures

Telephone Co

reimburse

Proceeds—To

v

scares

underwriting)

September 9

Underwriter—Eastman, Dillon & Co., New York.

a

May be Kidder,
(jointly); .' '

Public Service Co. (9. 9)
Aug. 14 filed 350,000 shares of common stock J par'$10).

(Wednesday)

September 3

Corp., Wilmington, Del. (8/27)
Aug. 7 filed $20,000,000 of debentures. Price, etc.—To be
supplied by amendment. Proceeds — To reduce bank

Hatch,

by amendment.

* Central Illinois

Common
2b,uo0

inc.;

Illinois Bell Telephone Co
...
(Offering to stockholder,;—no underwriting)

Beneficial Loan

loans.

Sept 25.
Priced—To

-

aggregate of $199,465. Proceeds—For operating capiT
Office — Berryessa Road, San Jose, Ca]it.; Under¬

June 29

,

one

employees.

writer—Davies & Co., San Francisco, Calif.
.

..Common

(Bids

Underwriter—

(par $2.50) to be offered in units of

tal.

(Tuesday)

Hemphill, Noyes & Co.; and
Co.,

&

stockholders—no

to

Southern

★ Bellevue Mining & Concentrating Co.
Aug. 12 (letter of notification) 4,000 shares of 7% cumu¬
lative preferred stock (par $10) and 4,000 shares of com¬
mon

to

A Central Eureka Corp., San Jose, Calif.
12*' (letter: of notification) approximately >190,000
shares of common stock (par $1). Price—To not'exceed

.Bonds

September 2

Tapping

f

;

$8,000,000

Duke Power Co

Automatic^ Steel Products, Inc., Canton, Ohio
Aug. 10 (letter of notification) 17,145 shares of preferred
stock (par $1) to be issued in exchange for 1,143 shares
Machine

invited)

Co

Stroud

(Offering

None.

be

(Drexel & Co.;

Underwriter—Rey¬

of The Cleveland

——Bonds

Hollingshead (R. M.) Corp

Offering—Temporarily post¬

(no par)

''

(Bids 11.30 a.m. EDT)'$35,000,000

Electric

stock

offered

be

& Co. and Estabrook & Co.

an

Windows, Inc.
July 17 (letter of notification) 299,850 shares of common
stock (par 1 cent).
Price—$1 per share. Proceeds—For
general corporate purposes.
Office — Woodside, L. I.,
N. Y.
Underwriter—Royal Securities Corp., New York.

of preferred

to

September 1

poned.
Automatic

will

Aug.

1, 1973.

tires

*

Wisconsin Power & Light Co...

Price—To be supplied by
Proceeds—For working capital. Business—
of

shares

privilege), with rights to expire

balance

supplied

be

shares

Common

_____

404,500

EDT/

noon

<9/9)

loans

V

.

.

(Bids

Duke Power

Co., New York.

/

Common

;

Trans-Penn Transit Corp

Armstrong Rubber Co.
March 31 filed $4,000,000 of 5% convertible subordinated

Manufacturer

/

,

•

supplied by > amendment. ' Proceeds—To-retire bank
and for construction program.' Underwriters—To

be

Eq. Tr. Ctfs.

(Offering to stockholders—not underwritten)-. 108,350

Underwriter—None.

nolds

The

'■

"

rights expire Sept. 15. Price—At par ($10 per share).
Proceeds—To
purchase stock of three State banks.

amendment

(Monday)

Denver & Rio Grande Western RR
(Bids to be invited) $3,300,000

i

par), oL which 139 978 shares will be offered for sub¬
scription by stockholders of record Sept. 9 at rate of
one
new share for each
15 shares held (with an over¬

Debentures

$20,000,000

Co.)

&

1

11- filed $6,000,000 of convertible debentures due
1, 1963; and 159,978 shares of common stock' (no

Aug.

(Thursday)

August 31

Aug. 6 on the basis of three-quarters of a new share for
each
share, held
(with oversubscription privileges);

i

Underwriter—None.

Central Hudson Gas & Electric Corp.

•

—...

share). Proceeds—To reduce short-term

At par ($100 per

'

Common

Dillon

(Eastman,

Bancorporation, Phoenix, Ariz.

May

;

■

$150,000

Inc.)

Gerber,

August 27

July 17 filed 150,000 shares of common stock being of¬
fered for subscription by common stockholders of record

debentures due

v

(Wednesday)

Beneficial Loan Corp

York.
• Arizona

'

Sept.

C. K. Pistell & Co., Inc., New

—

S.

(M.

acquisition of stock of two companies, who will borrow
the remainder to repay bank loans and for working

Underwriter

"

Northland Oils, Ltd

sinking fund 10-

due April 30, 1963, of this company
common stock (par one cent) of
Bradco, Inc., to be offered in units of $100 of notes and

year debenture notes
and 75,000 shares of

Price—$105 per unit.

1

notes.

Applied Science Corp. of Princeton

capital.

Inc.) 60,000 shares

August 26

10 shares of stock.

"

Common

Co

iBlyth & Co.,

writer—None.

May 21 filed $750,000 of 6% guaranteed

Bonds

$30,000,000

PDT)

8:30 a.m.

Coast Telephone

West

ic Carolina Telephone & Telegraph Co. ."(9/16),
Aug. 17 filed 33,320 shares of capital stock to oe offered
for subscription by stockholders of record Sept. 16 in the
ratio of one new share for each five shares held. Price—

(Tuesday)

Southern California Edison Co

Offering—Postponed

& McDowell, Chicago, 111.

Blosser

$299,850

Co.)

&

August 25

M.

Carl

Common

Corp

Mining

Uranium

(for a
their

Underwriters—Dallas Rupe & Son, Dallas, Tex.;
Loeb, Rhoades & Co., New York; and Straus,

capital.

Piper,

Plateau

Inc.,

14-day standby). Certain stockholders have waived

(Goldman,

Houston, Texas.

Office—504 W. Euclid Ave.,

rights. Price—At par. Proceeds—To repay $1,014,500 of
outstanding notes and for drilling expenses and working

Mining & Manufacturing Co.—Common
Sachs & Co.; Kidder, Peabody & Co., and
Jafiray & Hopwood) 145,000 shares

Minnesota

.

debt.

ISSUE

of bonds for each 28 shares of stock held

$100

Life Insurance Co.,

American Independence

Baird & Co.) $2,000,000

(Monday)

August 24

No. Broadway,

REVISED

Byrd Oil Corp., Dallas, Tex.
$1,750,000 of 10-year 5x/2% convertible sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription by common stockholders at the rate of

.Preferred

Co.—

(Smith, Larney <fe Co. and Kobert W.

Aug. 12 (letter of

ITEMS

Oct. 22 filed

(Friday)

August 21

PREVIOUS

Springfield, O.
Underwriters —Gearhart & uus,
New York; and McCoy & Willard, Boston, Mass.

NEW ISSUE CALENDAR

—

general corporate purposes. .Office—18
Billings, Mont. Underwriter—None.

retire

Proceeds—To

Vancouver, B. C., Can.
April 22 filed 250,000 shares of common stock (no par).
Price
$1 per share (net to company). Proceeds —To
purchase equipment and supplies. Underwriter—M. H. B.
Weikel, Los Angeles, Calif.
Gold Mines Ltd.,

Acteon

stock

•

AD D IT ION S

SINCE

Drexel & Co. and Equitable Securities Corp.
(jointly/); Kuhn, Loeb & Co., Union Securities Corp. and
A. C. Allyn &
Co., Inc. (jointly);'Glore, Forgan*& Co.;

Inc.;
;

Volume 178

Number 5243

.

.

The Commercial and Financial Chronicle

.

White, Weld & Co.; Harriman Ripley & Co. Inc. (2) For
preferred stock: The First Boston Corp.; Kidder, Peabody
& Co.; Merrill Lynch,
Pierce, Fenner & Beane and White,

it Illinois Bell Telephone Co. (9/3)
Aug. 14 filed 568,703 shares of capital stock to be offered
for subscription by stockholders of record
Sept. 3 on the
basis of

Aug. 12 filed 200,000 shares of capital stock.

Fla.

Corp., Denver, Colo.

—None.

cumulative preferred stock.

Price—At

Proceeds—To reduce bank loans.

Underwriter—

of capital stock held.
amendment.
Proceeds—To

other
common

stock

(par $3)

Consolidated

Lehman

Vultee

Aircraft

it General Hydrocarbons Corp.,
Okla'loma City, Okla.
Aug. 12 filed $1,010,800 of 20-year debentures and 66,424
'

of common stock
(par $1) to be offered in units
$350 principal amount of debentures and 23 shares of
stock. Price—$359
per unit ($336 for the debentures and
$1 per share for the stock). Proceeds—For
general cor¬
—

Oil

and

June

17

common

of

writer—Robert G.
•

&

shares

Oil

mon

Pa.

No

adopted.

Underwriter—None,

shares held.

stock.

Price—At

market,

estimated

at

Price—$28

Angeles, Calif.

writer—None.

stock

(par 81).

Price—To

be

supplied

of

4%

new

construction.

Underwriters—To

be

determined

Pedlow-Nease

Corp., New York
10-year

cumulative

Thrift Plan and 444,444 shares of its common
purchasable under the plan on the open market
at current market prices.
It is contemplated plan will
pany's

stock

be placed

(letter of

k.

cents

per

ating capital. Office r-n 509 Bank St., WallaceMdaho.
Underwriter—Mine Financing, Inc., Spokane. Wash.
i




Proceeds

Planter's

Aug.

(Glenn), Inc.

—

Price—At market

For working capital.

common

stock

(par 25

on

date of pur¬

Underwriter—

15

units

one

share

stock

of 6%
100,000
(par 50 cents) to be offered in

each

of

Frank L. Edenfield &

Dredging Co., New Orleans, La.

Underwriter—Bacon, Whipple & Co., Chicago, 111.

common

class-of stock.

Price—$2.50

unit. Proceeds—To liquidate, liabilities and for work¬
ing capital. Office—220 Miracle Mile, Coral Gables, Fla.
Business—To process. peat for fertilizer. Underwriter—

Plateau

Uranium

Co., Miami, Fla.

'

1

Mining Corp.,

Grand Junction,

(letter of notification)

3,800 shares of common
(par $10).
Price — At market (approximately
$12.62M> per share). Proceeds—To a selling stockhold¬

of

Coral Gables, Fla.

per

Colo.

(8/24)

Aug. 6 (letter of notification) 1,999,0°0 shares of common

stock

er.

Peat Corp.,

(letter of notification) 100,000 shares
preferred stock
(par $2.50) and

shares of

Searight, 50 Broadway, New York, N. Y. Telephone
WHitehall 3-2181. Offering—Date indefinite.

Julv

6

cumulative

A.

McWilliams
common

share.- Proceeds—For_oper-

about Aug. 1, 1953.

None.

corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex. .Dealer Relations Representative—George

Idaho

notification) 160,000 shares of

on or

Stock Purchase Plan.
chase.

•

Price—25

in effect

ic Pillsbury Mills, Inc., Minneapolis, Minn.
Aug. 12 (letter of notification) 6,000 shares of common
stock to be offered to employees pursuant to Employees

cents). Price—$2 per share. Proceeds—For drilling of
exploratory wells, acquisition of leases and for general

oversubscription privi¬

stock.

working
Underwriter—None.

Proceeds—For

Phillips Petroleum Co.
11 filed $25,000,000 of participation in the com¬

Price—$12 per share. Proceeds—
machinery and equipment and cer¬

June 12 filed 10,000,000 shares of

debentures

due Aug. 1. 1963, being offered for subscription
stock¬
July 31 in units of one share <jf stock
anjl a $25 debenture (with an

fHunter Creek Mining Co., Wallace,

share.

—

McCarthy

holders of record

June 2

per

Office—Lock Haven, Pa.

June

_

lege);
rights
will
expire
Aug.
31,
Price I—" $30
per unit.
Proceeds—To repay $300,000 bank debt and
for working capital. Underwriter—None.

Inc.

Blvd., Depew, N. Y. Under¬

(par:-85) and

income

Price—$10

capital.

tain non-trade accounts
payable and for working capital.
Manufactures fractional horsepower electric
motors. Office—786 Terrace

Business

Co.,

(letter

9

held.

stockholders.
on

Chemical

of notification) 2,000 shares of capital
stock (no par) to be offered to stockholders of record
June 29 at rate of one new share for each five shares
July

writer—None.

June 12 iiled 13,573 shares of
capital stock

if

kane, Wash.
Business—Manufactures parking devices.
Underwriters—Pennaluna & Co., and Hachez & Brown,
Inc. and Walter J. Nicholls & Co., all of Spokane, Wash.

To pay off loans

by amendment.

Systems, Inc., Spokane, Wash.

Louisiana Power & Light Co. (9/16)
Aug. 12 filed $12,000,000 first mortgage bonds due 1983.
Proceeds—To repay $11,342,500 of short-term debt and

common

working capital. Underwriters—ljig£el &
Co.; Hemphill, Noyes & Co.; and Stroud & Co., Inc.

$339,325

Parkmaster

July 31

Industries, Inc., Depew, N. Y.
(letter of notification) 24,990 shares of common
stock (par $5) to be offered
pro rata for subscription by

Proceeds—For

Hotel Drake

of Pan American Petroleum.

Marco

it Hollingshead (R. M.) Corp., Camden, N. J. (9/1)
Aug. 17 (letter of notification) 20,000 shares of common

(par $25).

per

it Pan American Petroleum & Transport Co.
Aug. 13 filed $4,920,000 of Participations in Employees
Savings Plan of this company and its subsidiaries, to¬
gether with 66,151 shares of $25 par capital stock of
Standard Oil Co. (Indiana) offered for purchase by the
trustee under such plan.
Standard Oil owns approxi¬
mately 79% of the issued and outstanding common stock

Aug. 7

;

New York

writer—None.

share).

Proceeds—To holders of outstanding scrip cer¬
representing fractional shares. Underwriter—
Akin-Lambert Co., Los

competitive

&

share. Proceeds — For development of
Israel industry, etc., and for working capital. "IJnder-

Sept. 16.

tificates

determined .by

Halsey, Stuart

Palestine Economic Corp.,

Hutzler; W. C. Langley & Co., The First Boston Corp.
Glore, Forgan & Co. (jointly); Merrill Lynch,
Pierce,
Fenner & Beane and
Kidder, Peabody & Co. (jointly);
Harriman Ripley & Co., Inc.; Equitable Securities
Corp.
Bids—Expected to be received up to noon (EDT) on

per

Underwriter—None.

March 6 filed 100,000 shares of common stock

and

com¬

$23.25

Oil, Inc., Denver, Colo.

bidding. Probable
Co. Inc.; Morgan Stanley &
Co.; White, Weld & Co.; Lehman Brothers and Union
Securities Corp. (jointly). Bids—Expected about Sept. 15.

&

per share.
Proceeds—For working capital, etc.
Underwriter—Leason & Co., Inc., Chicago, 111.

be

-—To

bidders:

by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.;
Kuhn, Loeb & Co., Lehman Brothers and
A. C. Allyn &
Co., Inc. (jointly); Blyth & Co., Inc.; White,
Weld & Co., and Shields & Co.
(jointly); Salomon Bros.

Price—$5

mon

Warren,

(letter of notification) 50,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For gen¬
eral corporate purposes. Office—215 Paulsen Bldg., Spo¬

for

Gulf Coast

Leaseholds, Inc., Houston, Tex.
July 31 (letter of notification) 60,000 shares of 6Vi%
cumulative convertible class A stock (par
$4) to be of¬
fered for subscription
by common stockholders at rate

★ Hancock Oil Co., Long Beach, Calif.
Aug. 17 (letter of notification) 374 shares of class A

Hickory St.,

^Pacific Telephone & Telegraph Co. (9/15)
Aug. 14 filed $50,000,000 of 31-year debentures due Sept.
15, 1984. Proceeds—To reduce bank loans. Underwriters

it Los Gatos Telephone Co. (Calif.)
Aug. 12 (letter of notification) 29,773.shares of 5%
pre¬
Price—At par ($10 per
share). Proceeds—
To buy
equipment, pay debt and for working capital.
Office—11 Montebello
Way, Los Gatos, Calif. Under¬

of one new share for each
four shares held.
Price—To
be supplied by amendment.
..Proceeds—For general cor¬

common

Office—217

ceeds—For working capital.

ferred stock.

Gray Manufacturing Co., Hartford, Conn.
May 1 filed 55,313 shares of capital stock (par $5) to be
offered for subscription
by stockholders on the basis

class A share fcr each three

stockholder.

Underwriter—None.

the original incorporators) at rate of one new share for
each two shares held.
Price—40 cents per share.
Pro¬

tion." Price—To be
supplied by amendment. Proceeds—
For expansion
program. Underwriter—None.

—

one

(par 1 cent).
Price—At the market (about
share).
Proceeds—To Anderson Oil Co., the

Overland

Lone Star
Sulphur Corp., Wilmington, Del.
May 8 filed 600,000 shares of common stock
(par 5 cents)
to be offered for
subscription by common stockholders of
record May 8 on a
share-for-share basis "as a specula¬

development.
Underwriter—Gearhart & Otis, Inc., New York.

of

to

June 10 filed 600,000 shares of common stock (par 100)
to be offered for subscription by stockholders (except

—

definite plan

and

Corp., Warren, Pa.
(letter of notification) 1,250,000 shares of com¬

stock

selling

Office—596 Poplar St.,
Roslindale, Mass. Underwriter—
Coburn &
Middlebrook, Inc., Boston, Mass.

Grand Bahama Co.,
Ltd., Nassau
Feb. 3 filed 81,350,000
20-year 6% first mortgage conver¬
tible debentures due
March, 1973, and 1,565,000 shares
of class A stock
(par 10 cents). Price—Par for deben¬
tures and $1 per share for stock.
Proceeds
For new
construction.
Business
Hotel and land

—

purchase 200,000 shares to be

share of stock and one warrant.

one

Finance

4 cents per

Liquor Register, Inc., Roslindale, Mass.
July 3 (letter of notification) 2,100 shares of common
(par $5). Price—$16.50 per share. Proceeds—For
working capital for device to dispense and record drinks.

"Prospective Offerings" below.

Offering

wells

July 16

stock

railroad business and to place the
company in a position
where it can obtain additional funds
in the near future.
See, also First Railroad &
Banking Co. of Georgia under

None.

(8/26)

unit. Proceeds—For drilling of addi¬
purchase producing wells. Under¬
writer—M. S. Gerber, Inc., New York.

brokers.

as

certificates of deposit for 42,000 shares of
stock. It is planned to vote on a
voluntary plan

—

to

warrants

and

tional

Offering—Indefinitely postponed.

—Third & Buffalo
Sts., Franklin, Pa.
but Hallgarten & Co. and R. W.

Banking Co.

Underwriter

Canada

Price—75 cents per

Co.,

filed

purposes.

Ltd.,

filed

offered in units of

3,630 shares of common
(par $1). Price—At market (about $34.37Vz
per
share). Proceeds—For general corporate purposes. Office

adjustment under which it is planned to segregate the
business of the Georgia RR. Bank & Trust Co. and the

porate

Sparling, Seattle, Wash.

Oils

1,000,000 shares of capitai stock (par 200
Canadian)
and subscription warrants for 600,000
shares, which statement was amended May 20 to 200,000

Pressprich & Co. will act

RR.

Northland

—

stock

Underwriter—None.

Georgia

New York.

Idaho Mines,

Inc., Kellogg, Ida.
July 31 (letter of notification) 400 shares of common
stock (no par).
Price—$125 per share. Proceeds—For
exploration. Address—Box 298, Kellogg, Idaho. Under¬

are

Joy Manufacturing Co.
July 29 (letter of notification)

development.

gas

North

supplied by
loans and for
&

Chicago, III.

L. D. Sherman & Co.,

be

bank

..

(letter of notification) 12,000 shares of common
market (about $3.25 per share).
Proceeds—To Earl W. Muntz, President. Underwriter—

i

shares

of

Business

Muntz TV Inc.,

offered for subscription by
of debentures for each 20
repay

Co.; Kidder, Peabody & Co.; and Piper, Jaffray

Hopwood.

Nov. 21

Underwriter—Blyth

145,000 shares of common

—

—Temporarily postponed.

purposes.

purposes.

July 6 com¬

4.87%.

stock (par $1). Price—At

& Telegraph Co.
20-year convertible deben¬

Price—To

yield

June 19

Price—To be supplied by amendment
(between $8 and
$9 per share). Proceeds—To pay
mortgage debt and for
equipment. Business
Research and development and
subsequent commercial exploitation in the field of ion
exchange chemistry. Underwriter—Lee Higginson
Corp.,
New York and Boston
(Mass.). Offering—Planned for
the middle of
September.

shares, while Greenshields &
Co., Inc., will handle Cana¬
dian distribution of a
portion of the offering. Offering

porate

&

Ionics, Inc., Cambridge, Mass. (9/15)
June 30 filed
131,784 shares of common stock (par $1).

Corp.
Underwriterhandle U. S. sales oi

Brothers, New York, to

corporate

Inc., New York.

Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans made to acquire a block of
400,000 share*
of

Corp.,

in Arizona at $1 per share to hold¬
special participating contracts, the

shares

Bishop & Co., Minneapolis, Minn.

General Dynamics
Corp.
May 12 filed 250,000 shares of

Commercial's

International Telephone
June 26 filed
$35,883,300 of
tures dug Aug. 1,
1973, to be
stockholders at rate of $100

($25 per

par

of

to

& Manufacturing Co. (8/24)
stock (no par).
Price—To be supplied by amendment.
Proceeds—To
certain selling stockholders.
Underwriters — Goldman,

Underwriter—

300,000 shares have been and

101.875

at

Minnesota Mining

proceeds of which are to be used to activate the
company
in the loan and finance business.

Fidelity Acceptance Corp., Minneapolis, Minn.
July 15 (letter of notification) 9,200 shares of class E

H.

An additional

being offered for sale
ers

Bldg.,
Denver,

Colo.

M.

sought SEC authority to borrow $20,000,000 from
on 3V4% notes pending permanent financing.

Aug. 6 filed

holders of Special Participating Life Insurance
Contracts
issued by Commercial Life Insurance Co. of
Phoenix.
Price—$1.50 per share. Proceeds — To develop and ex¬
pand company's loan and finance business. Underwriter

con¬

(letter of notification) 3,616,000 shares of Class
A common stock. Price—At
par (five cents per share).
Proceeds—For drilling wells. Office—528 E and C

6%

planned

pany

banks

Phoenix, Ariz.
July 2 filed 2,500,000 shares of class A non-voting com¬
mon stock
(par $1) to be offered to present and future

June 25

share).

been

Sachs &
& Finance

be used to
Bids—

beaded jointly by Halsey, Stuart & Co., Inc.,
Union Securities Corp.
the only bid on June 15 for the securities—
for 5s.
This bid was rejected.
Reoffering had

100.125

Underwriter—None.

Business—Battery experimentation.
Gables, Fla.

Co., parent, for $3,010,000, to

group

entered

Price—At

Research, Inc., Miami, Fla.

Inland Western Loan

Fairway Foods, Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien 4%% bonds
to mature $40,000
annually from 1955 to 1994, inclusive.

Co.,

A

Gas

bank loans and for construction program.

Harriman Ripley & Co., Inc. and

Barham & Co., Coral

Fourth Ave.,
Moline, 111. i Underwriter—
Harry Hall Co., Safety Bldg., Rock Island, 111.

Shelley

Natural
repay

July 29 (letter of notification) 85,000 shares of common
stock (par $1). Price — $1.15
per share.
Proceeds—For
working capital. Office—4016 Northwest 29th St., Miami,

Office—2519

I.

Proceeds—For investment.

Industrial

lor preferred stock

Sept. 22.

Underwriter—E.

A total

it Income Foundation Fund, Inc., Baltimore, Md.
market.

Eagle Super Markets, Inc., Moline, III.
May 21 (letter of notification) 25,000 shares of 6% pre¬
ferred stock. Price—At par ($10 per share). Proceeds—
To redeem first preferred stock and for
working capital.

Denver, Colo.

share for each six shares held.

3,388,832 shares (99.31%) of the outstanding stock is
owned by American Telephone &
Telegraph Co. Price—
At par ($100 per share).
Proceeds—To repay advances
from parent.
Underwriter—None.

& Beane (jointly);
Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Carl M. Loeb, Rhoades &
Co. and Wertheim & Co.
(jointly); Stone & Webster
Securities Corp.; Kuhn, Loeb & Co. and Smith, Barney
& Co. (jointly); Union Securities
Corp. Bids—For com¬

Fallon Gas

new

of

Fenner

Price—At 100% of principal amount. Proceeds—To
struct new warehouse.
Underwriter—None.

one

31

Michigan Consolidated Gas Co.
May 15 filed $20,000,000 of first mortgage bonds due 1978,
Proceeds—From sale of bonds, plus proceeds from sale
of 215,000 shares of common stock (par $14) to American

.

Weld & Co.
(jointly); Kuhn, Loeb & Co. and Smith,
Barney & Co. (jointly); Blyth & Co., Inc. (3) For com-'
mon stock: The First Boston
Corp. and Lehman Brothers
(jointly); Blyth & Co., Inc. and Merrill Lynch, Pierce,

mon'stock. expected about Sept.
15;
about Sept. 17; and for bonds about

(651),

stock (par one

cent). Price—15 cent, per share. Proceeds

ii

Continued

on vaae

32

The Commercial and Financial Chronicle
32

'

.

.

Thursday, August

.

20,1953

(652)

/

Continued
—For

from page 31
development. Office—2969 North

exploration and

Ave., Grand Junction, Colo.

Underwriter—Tellier & Co.,

Spartanburg, S. C.

Powdercraft Corp.,

5,000 shares of capital
share). Proceed*—For
working capital. Business—Makes machine parts. Office
746 Hayne St., Spartanburg, S. C.
Underwriter—Cal)ioun & Co., Spartanburg, S. C.
Providence Park, Inc., New Orleans, La.
July 7 (letter of notification) 33,333 shares of common
♦stock (par $1). Price—$3 per share.
Proceeds—To de¬
velop and improve property for cemetery. Office—516
3

-rJock.

(letter of notification)
Price—At par ($10 per

Underwriter—Wool-

Orleans, La.
Shober, New Orleans, La.

•Carondelet Bldg., New

£olk &

Co. and Union

writer—None.

Nov. 20 filed

Inc.
July 30 (letter of notification) 6,500 shares of common
stock (par $1). Price—At market (not to exceed an ag¬
gregate of $100,000). Proceeds—To Howard Kellogg, Ruth
Kellogg Terry and The Marine Trust Co. of Western New
York, as trustees for Ruth Kellogg Terry. Undewriter—
White, Weld & Co., New York.
Technograph Printed Electronics Inc.
(letter of notification) 99,906.2 shares of com¬
mon stock (par 40 cents) being offered to common stock¬
holders of record July 13, 1953 on a basis of one new
share for each two shares held; rights to expire March
June 26

Proceeds—For licensing
activities and improving patent position and for work¬
ing capital. Office — 191 Main St., Tarrytown, N. Y.

3,

Hampshire

if Public Service Co. of New

Aug. 19 filed $7,000,000 of first mortgage bonds, series G,
due 1983. Proceeds—To repay bank loans. Underwriters

Underwriter—None.

by

Ridley Mines Holding Co., Grafton, N. D.
1 filed 120,000 shares of common stock. Price—At

June

Proceeds

.par'. ($5 per share).

—

For working capital.

Underwriter—None.

A Tennessee Gas Transmission

Inc., Billings, Mont.
$296,500 of 6% gen. mtge.
bonds.
Price—At par.
Proceeds—For improvements.
Office—616 Clark Ave., Billings, Mont.
Underwriter—
(F. A.),

£ Ripley

(jointly).

Products, Inc., Kensington, Conn.

each

two

shares

held

July

on

$25) of Textron Puerto Rico, a subsidiary, on a
Offer to expire Sept. 30, 1953.

(par $1).

Proceeds — To acquire stock of
"Neb-Tex Oil Co., to pay loans and for working capital.
Dffice—Northwood, Iowa. Underwriter—Sills, Fairman
& Harris of Chicago, 111. Offering—Is imminent.
—

$5

per

share.

Price—To

selling stockholders. Office—Los Angeles,
writer—Sutro & Co., San Francisco and

stock (par 250).
Price—$4 per share.
Proceeds—To purchase and sell
leaseholds, royalties and producing properties, to pros¬
pect for oil and gas and to develop and operate produc¬
ing properties.
Office—Mt. Vernon, 111.
Underwriter—
3L. H. Rothchild & Co., New York.
Offering—Indefintely

tal stogk.

Torrington Manufacturing Co., Torrington,

>

Aug. 6 (letter of notification)

Risks Indemnity Co.
(letter of notification) 8,500 shares of capital
ftock (par $10) to be offered to stockholders of record
JSept. 1,1953 on the basis of one new share for each 8 7/17
shares held; rights to expire Oct. 1, with payment due on
or before Nov.
5.
Price—$35 per share. Proceeds—For
working capital. Underwriter — None. Office — Branchville, N. J.

13

Silex Co.,

per

For mining

equipment.

for

shares

each six

Unsubscribed shares will be offered to officers and

Finance Corp.,

States and
share in
For

California

•

U.

110,000 shares in Canada. Price
S.

and

er

&

ferred

amendment.

for

ceive

Co.

None.

Proceeds

construction.

Y

—

To

retire

Underwriters

bank

—

loans

and

Harris, Hall &

and Smith, Polian & Co., Omaha, Neb.

caf?'

Light Co.

Sound

purposes.

and

Southern Union Gas Co.

(8/31)

tAug. 10 filed 108,350 shares of
to

be offered

of Tecord
18:

shares

rights to

for

Aug. 31

subscription by
on

the basis of

held

(with

expire

Oct. 7.

/^■vO^additfons

common

stock

common

one

new

(par $1)

stockholders

share for each

.an

oversubscription privilege);
Price—$18 per share.
Proceeds

properties.




Underwriter—None.

-

& Co., both of New York.

Corp., and W. C. Langley
Offering—Not imminent.

"

Arkansas Power & Light Co.
March 20 it

was

consider

announced that company may

preferred
stock (no par) and 45,891 shares of $6 preferred stock
(no par), both callable at $110 per share. Underwriters—

refunding the outstanding 47,609 shares of $7

To be determined by

competitive bidding. Probable bid¬

Securities Corp.
First Boston
and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
Blyth & Co., Inc, and Equitable

ders.

(jointly); W. C. Langley & Co., and The
Corp. (jointly); Kidder, Peabody & Co.,

em-

for

—

on

common

March

$1.02 per

of

ney

was

this

Co.

announced

that

proposed

debenture

year

& Co.

may

1953.
head group.

Underwriters—Smith, Bar¬

if Aztec Oil & Gas Co.
Aug. 11 it was reported company's common stock (held
by Southern Union Gas Co.) may be offered to stock-?
holders of the parent company on a pro rata basis under*
a proposed divestment plan.
Bates Manufacturing
June 25

sell

it

was

750,000

Co.

■

reported company planned to offer and
shares of common stock. Pro¬

additional

purchase properties in the South.
Under¬
Coffin & Burr, Inc., Boston, Mass.,
and The First Boston Corp., New York.
Plan Opposed-

ceeds—To

$27 per share. Underwriter—

writers—Probably

Co., Dallas, Tex.

Consolidated Textile Co., Inc., is

$29,000,000 12-year 6% debentures due Dec.
15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and
one share of stock.
Price
To be supplied by amend¬

financing.

Proceeds—From sale of units and

June 24 it

mile crude nil pipeline.

sale of $55,-

build a 1,030
Underwriters—White, Weld &

-

;

:>

Corp.
* 11
announced company plans to issue and

was

publicly $2,000,000 of convertible ./debentures. Proceeds
For development of Stanwell Oil & Gas Ltd.,
sell

1,125.000 addi¬

tional shares of common stock and private
008.000 first mortgage bonds, to be used to

opposing the proposed

Blair Holdings

—

ment.

it

later

struction program for

Underwriter—Sidney S.

the basis of one-half share of pre¬
share of common for each Puget

rate

27

will be around $60,000,000.
The
exact nature and timing of the financing are still to be
determined.
Stockholders voted May 5 to increase the
authorized debt from $75,000,000 to $150,000,000.
Pro¬
ceeds—To be used to help pay for a $100,000,000 con¬
issue

share to holders who do not elect to re¬

cash at the

construction.

new

Atlantic Refining

Nov. 20 filed

•

Inc.

July 29 it was reported company may do some preferred
stock financing following private placement of an issue
of bonds.
Underwriter — Probably The First Boston

one-half

West Coast Pipe Line

Offering—Expected today (Aug. 20).

(9/25)

«

..

American Water Works Co.,

$1 per share in Canada. Proceeds—

general corporate

July 29 filed 60,000 shares of cumulative convertible
preferred stock (par $25).
Price—To be supplied by
new

Fidelity & Casualty Co.

was

or

if American Telephone & Telegraph Co.
Aug. 19 directors voted to recommend to stockholders
that they authorize a new issue of convertible debentures
in an amount not to exceed $625,000,000 at a meeting to
be held on Oct. 14.
Price—Expected at par.. Proceeds—
For advances to subsidiary and associated
companies.
Underwriter—None.
Offering—To be made to stock¬

cumulative con¬
vertible preferred stock (par $25) and 1,088,939 shares of
common stock (no par) to be issued in connection with
the proposed merger into company of Puget Sound Pow-

Water Co.

■

Underwriter—Geyer & Co., New York.

Washington Water Power Co.
filed 1,088,940 shares of $1.28

i

Southern

month

Underwriter—None.

May 7

•

'1.

.

stated registration is planned late this
early in September of about 100,000 shares of
convertible preferred stock (par $5) to be offered for
subscription by common stockholders about Sept. 25 on
a share-for-share basis; rights to expire Oct. 10. Price—
To be named later. Proceeds — For working capital.
it

5

Aug.

Toronto, Canada
April 24 filed 660,000 shares of common stock (par $1)
of which 550,000 shares will be offered in the United

(PDT)

.

Prospective Offerings

Los Angeles, Calif.

Inc.; The First Boston Corp. and Harris, Hall & Co. (Inc.)
(jointly); Blyth & Co., Inc.; Kuhn, Loeb & Co. Bids—
Aug. 25.

Light Co.

#

American

Underwriter—

Walcott, President of company, Buffalo, N. Y.

on

y

Walburt Oils Ltd.,

Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

&

if Atlantic City Electric Co.
Aug. 17, B. L. England, President, indicated that the
company early next year expects to raise $14,000,000 to
$16,000,000 through the sale of bonds and both preferred
and common stock.
Proceeds—To repay bank loan and

St., New York, N. Y.

tion program.

To be received at company's office up to 8:30 a.m.

(8/21)
of cumulative preferred stock
(par $100) to be offered for subscription by preferred
stockholders of record Aug. 14, subject to allotment, and
329,194 shares of common stock to be offered for sub¬
scription by common stockholders of record Aug. 14 on
a
l-for-7 basis; rights to expire Sept. 8.
Warrants ex¬
pected to be mailed about Aug. 21.
Price—To be sup¬
plied by amendment.
Proceeds — To acquire stock of
interstate Power Co. and for new construction.
Under¬
writers—Smith, Barney & Co. and Robert W. Baird & Co.

a

Blvd., Los Angeles, Calif.

Southern California Edison Co. (8/25)
July 27 filed $30,000,000 of first and refunding mortgage
bonds, series E, due 1978. Proceeds—For 1953 construc¬

Aug. 31 or Sept. 1.

Power

demption July 1 of 821 shares of $7 first preferred stock.

for

Universal

were

on

Aug. 5 filed 20,000 shares

July 27 (letter of notification) 12,000 shares of 6% cumu¬
lative preferred stock. Price — At par ($25 per share).
Proceeds—For working capital.
Office—3460 Wilshire

May 5, last for $30,000,000 debentures,
rejected.

on

(EDT)

a.m.

Wisconsin

None.

American

Telephone & Telegraph Co., the parent. Underwriters—
To be determined by competitive bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.; The First Boston Corp. Bids—
Kxpected to be received up to 11 a.m. (EDT) on Sept. 2.
May 1, 1977,

1

ties Corp.

Aug. 18 filed $30,000,000 of 24-year debentures due Sept.
advances from

G.
for
by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Smith, Barney & Co. and Robert W. Baird &
Co. (jointly); Union Securities Corp.; Salomon Bros. &
Hutzler; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); Equitable Securities Corp.; The First Boston
Corp. Bids—Tentatively expected to be received up to

5 filed $8,000,000 first mortgage bonds, series
due Sept. 1, 1983. Proceeds—To repay bank loans and
new
construction. Underwriters—To be determined

30-day period.
Price — $8.50 per share.
Proceeds—To reimburse treasury in connection with re¬
oloyees

(9/2)

(8/31-9/1)

Co.

Wisconsin Power & Light

Aug.

share
Rights will expire Aug. 17.

held.

Underwriter—Blyth & Co.,

New York.

Inc., San Francisco and

holders of record July 28 on the basis of one new

Office—535 Pearl

due

R. L. Hughes &

Telephone Co.

construction program.

nance

July 17 (letter of notification) 10,603 shares of common
stock (par $2) being offered for subscription by stock¬

—None.

^Southern Bell Telephone & Telegraph Co.

Price—To be

Radium Corp.

United States

Under¬

1, National Airport, Washington 1, D. C. Underwriter

Bids received

—

Inc., New York
May 28 filed 1,000,000 shares of common stock (par 5
cents). Price—To be supplied by amendment. Proceeds
—For working capital, etc.
Underwriter—Gearhart &
Otis, Inc., New York.

Proceeds—To redeem

share.

repay

Underwriter

and Union Se¬

Offering—Postponed

(8/25)
shares of common stock (par $20).
supplied by amendment. Proceeds—To fi¬

West Coast

holders.

Co., Denver, Colo.

Sky Ride Helicopter Corp., Washington, D. C.
July 22 (letter of notification) 10,000 shares of common
istock (no par). Price—$2 per share. Proceeds—For of¬
fice equipment and patents and taxes.
Office — Suite

To

Conn.

City, Colo.
May 4 (letter of notification) 115,000 shares of common
stock. Price—At par (10 cents per share).
Proceeds—

v-

—

Torrington,

White, Weld & Co.

Aug. 6 filed 60,000

Central

writer—None.

Proceeds

St.,

U. 8. Airlines,

75% of outstanding 5V2% convertible debentures.

1, 1977.

Franklin

United Mining & Leasing Corp.

Hartford, Conn.

Price—$3.50

Office—70

subsidiary.

Underwriter—None.

July 24 filed 201,563 shares of common stock (par $1)
being offered for subscription by common stockholders
•of record Aug. 12 on a one-for-one basis; rights to ex¬
pire Aug. 25 (rights to 67,187 shares had previously been

No.

Conn.

12,000 shares of common

(par $6.25). Price—$20 per share. Proceeds—To
equip plant addition and for loan to Canadian

stock

Selected

waived).

Orleans, La.

certificates to be offered in ex¬
change for all of the outstanding 280,000 shares of capi¬
Aug. 17 filed voting trust

erect and

postponed.

•

Calif. Under¬
Los Angeles,

Calif.

(par 50

indefinitely.

(Calif.)

if Times-Picayune Publishing Co., New

Schlafly Nolan Oil Co., Inc.
March 25 filed 150,000 shares of common

Aug.

be

—

both of New York.

curities Corp.,

one-for-

50,000 shares of capital stock (par $1).
supplied by amendment.
Proceeds—To

filed

17

Aug.

Fiber Glass Co.

(H. I.)

^Thompson

April 23 filed 165,000 shares of common stock
Price

Underwriters

line.

four basis.

Saint Anne's Oil Production Co.

i

Pipe Line Co., Dallas, Tex.
1,125,000 shares of common stock

cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬

to be offered in exchange for the 19,719^
shares of 5% cumulative preferred stock, series A (par

per

New York. Of¬

West Coast

$100)

(par

share). Proceeds — For working capital.
-Office—Fairview Place, Kensington, Conn. Underwriter
—None/ Offering—To be mlade tomorrow (Aug. 14).
($25

par

series A

June 25 filed 4,930

Price—At

22.

Incorporated, Providence, R. I.
shares of 4% preferred stock,

Textron

July 30 (letter of notification) 2,450 shares of common
stock to be offered to stockholders on basis of one new
for

(9/15)

class of preferred
stock (par $100).
Price—To be supplied by amendment.
Proceeds—To repay bank loans.
Underwriters—Stone
& Webster Securities Corp. and White, Weld
& Co.

'None.

•share

Co.

Aug. 14 filed 100,000 shares of a new

Aug. 12 (letter of notification)

Rowland

share.

per

^-Tennessee Gas Transmission Co. (9/14)
Aug. 14 filed $20,000,000 of debentures due 1973.
Pro¬
ceeds—To repay bank loans.
Underwriters—-To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp. and White, Weld & Co. (jointly).
Bids—To be re¬
ceived up to 11 a.m. (EDT) on Sept. 14 at office of Cahill,
Gordon, Zachry & Reindel, 63 Wall St., New York 5, N. Y.

competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Coffin & Burr, Inc. (jointly); White, Weld & Co.;
Kidder, Peabody & Co. and Blyth & Co. Inc. (jointly).
determined

be

—To

Price—$3

1955.

Securities Corp., both of

fering—Postponed indefinitely.

—

Spencer Kellogg & Sons,

New York.

June

^ Spencer Grean Fund, Inc., New York
19 filed 4,179 shares of capital stock (par $100).
Price
At market. Proceeds-—For investment. Under¬

Aug.

;

—

-

newly acquired subsidiary. Underwriters—Blair,
& Co. Inc. and The First California ,Co.
-

Rollins

Number 5248

Volume 178

...

The Commercial and Financial Chronicle

(653)
Central Maine Power Co.
Jan.

it

2

reported

was

latter first

plans sale

company

later

thU

of $10,000,000 common stock (in addition to $10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953),
after distribution by New England Public Service Co. of
its holdings of Central Maine Power Co. common stock.
Probable bidders: Blyth & Co., Inc. and Kidder. Peabody
& Co. (jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Inc. and Bear, Stearns & Co. (jointly); Harriman Ripley
& Co., Inc.
year

National

Central-Penn

reported Bank plans to issue and sell to
record Sept. 22 an additional 124,125
shares of capital stock (par $10) to be offered on a
l-for-3 basis. Price—$30 per share. Proceeds—To in¬

July 24 it

was

its stockholders of

crease

capital and surplus. Underwriter—Stroud & Co.,

Inc., Philadelphia, Pa.
Central Power & Light Co.
2 it was reported company

may issue and sell
60,000 shares of new preferred stock. Underwriters—To
be determined by competitive bidding. Probable bidders:
Stone & Webster Securities Corp.; Lehman Brothers
and Glore. Forgan & Co. (jointly); Blyth & Co., Inc.,
Harriman Ripley & Co., Inc. and Smith, Barney & Co.
(jointly); Salomon Bros. & Hutzler.

Gas

System, Inc.

was announced company plans to issue and
sell later this year $40,000,000 of new debentures.
Pro¬
ceeds—To repay bank loans and for construction pro¬

Underwriters—To be determined b^ competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.
gram.

Denver &

Grande

Rio

Western

RR.

(8/31)

reported that the company
additional equipment trust

Probable bidders:

to
certificates.

Halsey, Stuart & Co. Inc.; Salomon
Co.

March

24 it was announced company plans to issue an
unspecified amount of convertible debentures due 1963

(about $55,000,000 to

which

carry an

first

may

be

interest rate not exceeding
subscription by

offered for

stockholders. Proceeds—To retire bank loans and to meet
construction

costs.

authorized the

new

Meeting—Stockholders
debentures.

April

on

14

4)00

was

collateral

mortgage

plans sale of $7,000,-

bonds due

1973.

Under¬

Co. and Stone & Webster Securities Corp. (jointly); The
First Boston Corp., White, Weld & Co. and Kidder, Pea-

body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).
Insurance Co. of New York

a

proposal

to issue

and

sell

30,000 additional shares of capital stock (par $6).
Price—$10 per share. Proceeds—To increase capital and
surplus.

announced that this new company will
of Georgia Railroad & Banking Co.
in exchange for each share held, one share of the new
•company's stock, the right to subscribe within 30 day®
tor 13 additional shares at $4.10 per share and a $250
•collateral trust 5% bond due May 1, 1990; the offer to
become effective upon acceptance by 95% of the out¬
standing stock. An additional 210,000 of the new share®
would be purchased by the underwriters, plus any of

May 4 it

was

stockholders

the unsubscribed shares.

Proceeds—To retire

General Controls Co.

ing this Fall.

reported company may do some financ¬
Underwriter — Probably Dean Witter &

Co.
General

Electric Co.

July 31 company applied to the SEC for an order ap¬
proving the acquisition of its distributive portion of
portfolio stocks being distributed by New England Public
Service Co. pursuant to that company's plan of liquida¬
tion and dissolution.
By reason of its ownership of

NEPSCO
receive

•of

General Electric will be entitled to
97,030.95 shares (3.89%) of the common stock
stocks,

Central

•of the

Maine

common

Power

Co.; 45,690.45 shares

(3.89%)

stock of Public Service Co. of New Hamp¬

shire; and 20,730.20 shares (2.72%) of the

•

Indiana &

Aug.

common

stock

or

General Telephone Co. of
was

Kentucky

—

reported early registration
Probable

Paine,

is expected

Webber,

(par $50).

Jackson

&

Curtis and Stone & Webster Securities Corp.
Government Employees Corp.,

March 18 stockholders authorized

;

an

Washington, D. C.
issue of 3,000 shares

of preferred stock (par $100) to carry a cumulative divi<3end rate not to. exceed 6% annually. The management
states that, under present plans, these shares will be

issued

as

the growth of the corporation warrants.

Greenwich Gas Co.

*■

-

company

(2) For preferred: The First

Corp.; Lehman Brothers; Uhion Securities Corp.

SEC

permission has been given to company to see if a
better pries for the preferred stock could be
received
by negotiation.
Kansas-Nebraska

May

Natural

Gas

Co.,

12

Inc.
issue

it was reported company may
and sell
$4,750,000 first mortgage bonds. Proceeds—To re¬
$800,000 bank loans and for new construction.

about

Underwriter—Central Republic Co.,
Inc.,

Chicago, 111.

(this is in addition to 100,000 shares of
preferred stock, par $100, offered publicly on
Proceeds—To repay bank loans and for new

C

Underwriters

(1)

—

For

stock,
probably Blyth & Co., Inc. and The First Boston Corp.
(jointly). (2) For bonds to be determined tw com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp.
common

(jointly); W. C. Langley & Co.; Smith, Barney & Co.
Maier

Brewing Co., Los Angeles, Calif.
was

rate of

four

share.

plant.

announced

new

common

company will offer 400,000
stock to its stockholders at

shares for each share held.

Prcoeeds

—

To

help finance

a

Price—$5

new

bottling

Underwriter—None.

Menabi
it

Exploration Co., Inc., Houston, Tex.
was

P. U. Commission authorized
company to ussu& ami - sell $200,000 of first mortgage
bonds and $483,000 par-value of common stock (the

new

share for each

10

shares

Price—To be announced later.
loans.
Dealer-Manager—The

Proceeds—To retire bank
First

Boston

York.

Corp., New

New York State Electric &
Gas Corp.
Feb. 27 it was reported that
company may, later in 1953,
issue and sell $20,000,000 first
mortgage bonds (following
private sale of 75,000 shares of
4140% preferred stock,
par $100 in February and
$5,000,000 of 3%% debentures
due 1991 in April).
Underwriters—To be determined by
competitive bidding. Probable bidders:
Halsey, Stuart
& Co.
Inc.; The First Boston Corp. and Glore,
Forgan
& Co.
(jointly); Blyth &

Co., Inc.

&

Co.

&

Co.

announced

company

plans to

issue

and

Smith, Barney

(jointly); Hemphill, Noyes &. Co. and Drexel
(jointly); Kidder, Peabody & Co. and Salo¬
Bros. & Hutzler
(jointly); Lehman Brothers; Har¬

riman Ripley & Co., Inc.
Northern Natural

Gas

Co.

July 17 Harry H. Siert, Treasurer, announced that stock¬
holders will vote Aug. 24 on
authorizing an issue of
750,000 shares of preferred stock, of which it is
planned

to

issue and sell
250,000 shares (par $100) this Fall.
Proceeds—For expansion
program.
Underwriter—Blyth
&

Co., Inc., handled recent

common

stock

financing.

Northwest Natural Gas Co.
March 23 it was reported that
this company plans to
finance its proposed 1,300-miles
pipeline from Canada to
the Pacific Northwest
by the issuance

and sale of $6^000,000 of 41/2% first mortgage pipeline bonds to
insur¬
ance companies and
other institutional investors and
$9,™
000,000 of 5% debentures and 1,400,000 shares of
common

stock at $10 per share

publicly in the United States and
Underwriter—Morgan Stanley & Co., New York,
Ormond Corp.,
Albuquerque, N. M.

March

10

it

was

announced

company plans to register
issue of stock, which will be
offered
nationally. Office—5003 Central
Avenue, N. E., Albu¬
querque. N. M.
with the

SEC

an

Otter Tail Power Co.
25 FPC authorized

bonds

construction.

per

one

Canada.

Long Island Lighting Co.
April 21 it was announced that company this Fall plani
to issue and sell in the neighborhood of
600,000 share®
of new common stock to be followed in the latter
part of
the year by an issue of about
$25,000,000 of first mort¬

June
of

$4,000,000

proceeds

to

unsecured

provide

$1,000,000 of convertible debentures. Proceeds—To
finance development of oil properties in Ecuador. Under¬

writer—Kidder, Peabody & Co., New York.

•

Pacific Telephone &
Telegraph Co.
July 2 it was announced
company plans to
s^ll to its stockholders 1,004,603 additional
capital stock on a l-for-7 basis. Price— At
share.
None.

York.

issue

shares

and
of

(100 per
UnderwriteiVrpar

Proceeds—To repay bank loans.
American Telephone &

Telegraph Co., parent,

owns

91.25% of Pacific's
outstanding stock. (See also
proposed bond financing under
"Securities Now In Reg¬
istration" in a
preceding column of this issue.)

Pennsylvania Water &
Aug. 11 it was reported
ance

and sale of from

bonds.

be

Power

Co.

is

company

considering issu¬
$9,000,000 to $10,00,0,000 additional

Proceeds—For

writer—May

July 24 it was reported that company may do some fi¬
nancing in connection with its plan to build an anhydrous
ammonia plant in the Salt Lake
City area to cost about
$9,000,000. Underwriter — Glore, Forgan & Co., New

maximum

a

company's 1953 and 1954 construction
programs prior to
arranging for long-term financing.
Underwriters—May
be Glore, Forgan & Co. and
Kalman & Co.

The

Offering—Expected

Mill Creek Chemical Co.

to issue

company

promissory notes to banks, the
to
temporarily finance the

funds

•

and

sell

to

construction/program. '* Under¬
First

Boston

be made

Corp.,
privately.

New

York.

Permian Basin Pipeline
Co., Chicago, III.
Feb. 4 company filed an
amended application with FPC
for authority to construct
a 163-mile
pipeline system at
an estimated cost
of $40,269,000.
Financing may be done
privately. Underwriters
Stone & Webster Securities
Corp. and Glore, Forgan &
Co., both of New York. (n
—

Milwaukee Gas Light Co.

July 7 company sought SEC approval of a bank loan
of $9,000,000 the mature Aug.
1, 1954,: These borrowings,
plus retained earnings, are designed to finance expansion
pending formulation of permanent financing prior to
maturity of notes. Probable bidders for bonds: Halsey,
Stuart

Co.

&

Inc.;

Glore, Forgan & Co. and Lehman
Brothers (jointly); Smith,
Barney & Co. and Blyth &
Co., Inc. (jointly); Kuhn, Loeb & Co.; Kidder,
Peabody
& Co.; Harriman Ripley & Co. Inc.
Minnesota

Aug. 3 it was
on
increasing
from 2,000,000
000,000 shares

Power &

announced

the

stockholders will vote

authorized

Immediate

necessary.

writers—May

be

offer

stock

common

not

determined

contemplated.

by

Oct.

1

(no

Under¬

competitive

bidders: Kidder, Peabody &

bidding.
Co.; Blyth & Co.,

Mississippi Power Co. (10/6)
July 20, L. P. Sweatt, President, announced company
plans to issue and sell $4,000,000 of 30-year first mort| gage bonds due 1983. Proceeds
For construction
pro¬
Underwriters—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.;
Union Securities Corp.; Equitable Securities
Corp. and
gram.

Drexel & Co.

(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co.; The First Boston Corp.
Bids—Expected to be submitted on Oct. 6. Registration
Expected Sept. 4.
;

•

.

;

Mountain States Power Co.

July 24 it

—To

be

bidders:

Co.

was

an

reported company may issue and sell in

issue of first mortgage bonds.

determined

by

the stock of this

ern

competitive

Underwriters

bidding. Probable

Halsey, Stuart & Co. Inc.; Kidder, Peabody &

company, 51% is
Natural Gas Co.

now

owned

by North¬

Petroleum Service, Inc.
(Texas)
was reported
company is

Aug. 4 it
sale
ible

of

considering issue and

$300,000 of 6%

into

debentures due 1963 (convert¬
stock).
Underwriters
Probably
Dallas, Texas. Offering—Expected this

common

—

Garrett
fall.

&

Co.,

Stockholders will

vote

Sept.

19

nancing.
•

Light Co.

par)
shares (858,047 shares outstanding) to 3,and on approving a 2-for-l stock split.
This will place the company in a
position to proceed
promptly with any new financing that may become

? the Connecticut




reported

Harriman Ripley & Co. Inc.
Boston

:■.;

.

held (with a
16-day
standby). An oversubscription
privilege is also provided.

mon

Michigan Electric Co.

was

Corp.; Kuhn, Loeb & Co.; Union Securities Corp.;

the Fall

-May

it

—

•of 50,000 shares of cumulative preferred stock

Underwriters

$184,550,000

by competitive bidding. Probable bidders:
(1) For bonds: Halsey, Stuart & Co. Inc.; The First Bos¬

ton

Inc.

April 27 it

•

14

& Electric Association

July 24 company sought SEC permission to
issue and sell
194,916 shares of common stock (par
$8) to be offered
for subscription
by common stockholders at the rate of

sale

Probable

Corp. General Elec¬
otherwise dispose of the utility
securities to be acquired within a period of one year
from the date of such acquisition (subject to its right to
;apply for additional time to dispose of such securities).
<

raise

is planning issuance
of $15,000,000 first mortgage bonds due
1983
and $5,000,000 to $7,000,000 of preferred
stock, late in
September or early in October.
Underwriters—To be
and

tric

to sell

to

hydro-electric projects

preferred

•of Central Vermont Public Service
proposes

three

financing will
1962; $27,400,000
stock; and $52,150,000 of common stock.
Throughout the financing period, the company would
borrow and repay $29,000,000 of short-term loans.
Final
financing details would depend on market conditions.

$2,190,000

Georgia Railroad & Banking Co. debentures held by
an insurance firm.
Underwriters—Johnson, Lane, Space
& Co. and Joseph Walker & Sons.

was

of

Snake River, Idaho. If approved, the
consist of $105,000,000 of bonds through

<of

July 27 it

plans

company

construction

on

April 8

First Railroad & Banking Co. of Georgia
•offer

this

that

finance

to

England Gas
(9/30-10/1)

Co.

additional shares of

stockholders approved

11

Power

April 18 it

(Syracuse, N. Y.)
Aug.

$25,000,000

of

finance

Aug. 6, officials of Blyth & Co., Inc. and Bankers Trust
Co., New York, testified before the Federal Power Com¬
mission

series

writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &

Excelsior

company

increased receivables.
Underwriter
Higginson Corp., New York, and William Blair &
Co., Chicago, 111. Registration—Expected late in August.
Offering—Expected around the middle of September.

May 7).

announced company
trust

sale

Chicago,

III. (9/15)
is considering the
additional debentures.
Pro¬

announced

was

—Lee

gage

Underwriter—None.

Eastern Utilities Associates

Feb. 20 it

it

ceeds—To

pay

Detroit Edison

4%)

public

proposes

& Hutzler.

Bros.

17

New

Boston, Mass.

determined

April 6 it

July 7 it was
sell $3,300,000

stockholders). Proceeds—To retire bank

Household Finance Corp.,

of

March

Columbia

•

Aug.

Idaho

Bank of Philadelphia

to

loans. Underwriter—F. L. Putman & Co.,

33

on

approving fi>

Raytheon

Manufacturing Co.
was reported
company may offer to common
stockholders about 435,388 /additional
shares of common
stock
(some time in the
future) on a l-for-5 basis.
Underwriters—Hornblower & Weeks and Paine,
Webber,
Jackson & Curtis.
Meeting—Stockholders
July 27 it

to

17

to

on

increasing authorized

4,000,000 shares.

common

vote

stock from

Sept.
3,000,000

Offering—Not imminent.

it Riddle Airlines, Inc., New York
Aug. 11 it was announced
company plans future public
financing to secure cargo transport aircraft.
Rockland Light & Power Co.
12, 1952 F. L. Lovett,

Nov.

President,

announced

com¬

pany expects to raise about

$24,000,000 in the next two
through sale of bonds, and preferred and
common
stock, viz: $5,500,000 of first mortgage bonds and
$5,500,000
years

preferred stock in 1953 and
$6,000,000 bonds, $6,000,preferred stock, and $1,000,000 common
stock in
1954. Proceeds—To retire
bank loans (which at
July 15
totaled $6,867,000) and for
expansion program. Under¬
writers—For bonds and preferred stock
may be deter¬
mined by competitive
bidding. Probable bidders:' (1)
For bonds:
Halsey,-Stuart & Co; Inc.; First
BostinffiCorp.
and Salomon Bros. &
Hutzler
(jointly); Stone & Webster-*Securities Corp.; Lehman
Brothers, Bear, Stearns & Co.
and A. C. Allyn &
Co., Inc. (jointly); Merrill
000

Lynch,

Pierce, Fenner & Beane; Estabrook & Co:
(2) For^preferred—Stone & Webster Securities
Corp.; Lehman Bro-

Continued

on

pacfe 34

\

Financial Chronicle

The Commercial and

.

.

.

Thursday, August 20, 1953

(654)

34

No

»

33

Continued from page

& Co. and Kid¬

& Co.; Estabrook

thers; W. C. Langley

do some public
the form of debentures) before
Underwriter—May be The First

Natural Gas Co.
announced a FPC Presiding

was

Underwriters — May be determined
bidding. Probable bidders, White Weld
Kidder, Peabody & Co. (jointyl); W. C. Lang-

(par $100).

& Co. and

Webber, Jackson & Curtis (jointly);
Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane and Union Securities Corp. (jointly);
Lehman Brothers; Blyth & Co. Inc., and Stone & Webster

ley & Co. and Paine,

&

Ripley

Harriman,

$12,000,000

Aug.

sell about

company

ferred

and

stock;

000,000 of

Underwriter—Dillon,

basis).

Insurance

Co., New York.
1954.

Read &

Co.

the

Further Reactions to Robertson's

have

had un¬

never

optimism over any proposal
oi cooperation.
On the other hand
I have not felt that idealistic plans
simply be¬

abandoned

be

should

work
very well.
Had our forefathers
followed this policy we would not
be the most prosperous and pow¬
do not at first

they

cause

lationism if

our

of choosing iso¬

good the United Nations has done
do does not make

Washington

the

in

think

and

it,
such

Articles

the

as

be¬

Nations,

United

good

all

Americans should want to

Broadcasting Company,

American

one

help it.
by Mr.

such a lack
the organi¬
Mr. Robertson's study shows a of understanding of
zation and mission of the United
good bit of work and some thought
but it is not an "Inside View" of Nations, definitely do not help. By
the
United
Nations.
Perhaps it this I do not mean that the United
C.

Washington, D.

have

for

been

Security
Council

own

larly

•

by

veto

but

Martin

Agronsky

the
this

intended to be.

paragraph of his ar¬

up

a

false premise or as¬

of the world" and
"is vested almost
all
the
real
authority
of
the
United Nations." The fact is that
been governors

in

particu¬
in
the

use.of

never

pieces.

member¬

ship

shortcomings but it

sumption and then, tearing it to
For example, in his first
paragraph he states the members
of
the
Security
Council "have

The

Security
Council
is
its

was

setting

worst

weakened

the
one

has not
the entire

group

defeated by any means

Council

this

real

Nations

of the United

authority
is

vested

in

truth

as

important for the

representa¬

pressed

author.
Our Ambassador Lodge stated
discuss problems and the UN pro¬ before the House
Foreign Affairs
vides the meeting ground) and the Committee on
July 8, 1953, in ex¬
solution
of
social, cultural and plaining "What the United Na¬
economic
problems
of interna¬ tions is Not," that:
i
tional scope and the furtherance
"The United Nations is not a
tives

of

all

nations

to

meet

vote

the

lias

in

a

of

powers

basic

The

a

body
government."

assumption

Mr.

of

Robertson that the United Nations
is

world

a

government

parliament

is

the

on

the

facts

discussion

subsequent

the

world

at

Nations

United

with

and

or

completely

so

with

variance

that

has

closing, let me state that I
believe that men of good
will throughout the world would
be straining every nerve to create

the imperfect device we have

even

if the United Nations did

now

not

exist.
-•

E.

C.

STEVENS

world"

as

Silver

Co.,

Meriden,

Conn.

Mr. Robert¬
demon¬
con¬

clusively

how

comp

man"

of

ing

children

and

grand-

conceived by the

and

Stevens

like

The

is

an

LAMBDIN

with

issues

can

of all mankind.

abused

has

the

the

General

Council

would use.

praising

the

fitness of

states

in

participation

in

vidual

this
a

the

be

Federal

gov¬

ernment, I daresay the conclusion
would be that no state is qualified

troops

any

me

that

is

shocking

more

even

Robertson's

World"

Charter

causes

to

their

Senate,
of

"the

as

United

the

of

functions

propa¬

Rulers"- and

"World

Council

the

Branch

Doubtless the op¬

Coun¬

"Governors of the

as

and

that

ignorance of the

Nations

cil members

in

I

common

man

him to refer to the Security

Nations

discussed

our

showed

hath

United

value

so

the

Upper
Nations,

The

to speak."
Council are

pri¬

but

The

if

United

Nations

submitted to United Nations

is

mem¬

establishment

the

"for

of

maintained, there will come other

bers

spokesmen and different decisions.
The main concerrKshould be this:

system for the regulation of arma¬

we

on

take

a

ments."

when
long look into the fu¬
the

right track

if the veto

Robertson's discussion of

Mr.

of
to me sin¬
as
to
the

nations, I note no mention

he

seems

unobservant

in

factor

great

freedom-making

recent

centuries, namely, the em¬

is

value

a

for God,

and that

it

were

United States
of

its

Most

to forfeit some

Would

shocking of all is the com¬

destructive

pletely

like

we

Whether

globe with these

tions

and

its

that

is stable

a

and that

by

of critical appraisal is

powers

the

to

authoritarian

ap-

peaj of communism;

to find
an

San

Dorking

&

Francisco,

Sherman,
Calif.

View

is

of the United Nations"

indeed

shocking.

The

member, nations
It is
—so

are

facts

devastating.

tragic that the United States
stable,

so

wealthy,

so

other

na¬

we

must try

to live with them in

must

try

their

peoples

the

improve

to

who

are

We

lot

of

less. for¬

that better eco¬
educa¬

better

conditions,

*

Mr. William A. Robertson's "In¬

side

way

the

ordered, peaceful world. *

tunate than we, so

BARREDA "SHERMAN

Leppo,

a

obviously

or

on

live

it,-we

same

produced

off Mr.

tone

article.

Robertson's

citi¬

have

Mr.

that?

totalitarianism in religion does not

to

or

abolished and the

were

want

govern

Perhaps it could

sovereignty.

Robertson

not

cannot

world.

the

rule

a

Certainly the Council has
that

shown

If

for

As¬

unclean."

Mr.

'

by totalitarian

beside

case

any

enormous

fighting

It

indi¬ given about the Security Council's

country

or

totalitarianisms are marily "maintenance of interna¬
tional
peace
and security" and
subject to inner upheavals and
the
formulation
of
plans to be
cleavages in the course of time,

gandists,

F.

approach were utilized in ap¬

us

important
come before

nomic

his

the

every

or

portunity of discussion is and will

approach to the

than the one that I

of
with

practically
question which

"God

of the consciousness

presence

University, Madison, N. J.

problem of international relations
and to the difficulties that beset
The United Nations is quite other

exception

should not call

Professor of Homiletics, Drew

Mr. Robertson's

the

satellites—voted

in Korea.

institution

United

The

having

in
an

Nations.

United

But there

immune

HENRY L.

—

been

safe¬

these and a
complicate the

nations

particularly in

zenry
C.

Evarts

DR.

offset,

of

relations

appear

children.

REiV.

estab¬

process,

and

dom

of

that

and
our

sovereignty,

phasis of Protestantism that Free¬

time

Boston

with demo¬ sembly and that combat forces
Recognition of from eight of these nations have

due

the

of

gularly

dur¬

our

of

Italy. Also,

"parliament

First

experience

host of other things

In

a

bidding. Prob¬

Inc.;

on

guards against abuse of power by
balances and by prin¬

be

Co.

&

Russian

checks and

the

is

of

idea

all

are

ture?

letely

impractical
the

Nations

United

procedure,

where

Stuart

Corp.; Blyth & Co., Inc.; Kidder, Peabody & Co.

lishment

we

strates

Halsey,

the value of the individual,

Are
son

bidders:

able

The

literacy,

and

Chairman, The International

Proceeds—To retire bank loans, etc. Under¬

gage bonds.

between the states of our own na¬

the

has applied to the

company

writers—To be determined by competitive

tion. The problems of

ciple

384.860 shares

owns

Light Co.

announced

was

larger and more difficult
than those present in the relations

in

subject.

it

vastly

cratic

Sinclair

ization to issue and sell $3,000,000 of 20-year first mort¬

$25,-

within

of

Massachusetts Department of Public Utilities for author¬

America,

no

truly

ex¬

by world public opinion.
work of the) organization.
Peace Even a hasty reading of the
and the firm regulation of aggres¬
United Nations Charter will con¬
sion is a primary concern of the
vince anyone that the United Na¬
UN but it also has another trust
tions was never intended to be a
—the promotion of friendly rela¬
"world parliament" or that any of
tions on the basis of equality (it
the members were to "govern the
is

one

to

states
which

criticized

ticle, Mr. Robertson uses the prac¬
tice of various columnists of first

are

enemies.

many

In the first

of

Security

Council
its

it

or

members
the

its

be

not

certainly should not be criticized
as
a
result of someone's precon¬
ceived ideas for failing to be what

the

of

should

Nations

titled the fail¬

ings

each

small

and

Robertson, which show

better

would

large

In

S.

U.

like

lieve

Correspondent,

the

bearing

Air Force Repre¬
sentative, U. S. Military Staff
Committee to United Nations

Judaeo-Christian

AGRONSKY

RODIECK

Colonel, U.S.A.F.

I

MARTIN

H.

L.

It would of

manifest absurdity

a

give

his

Deputy

be

course

Charter

headlines.

will permit us.

ethic

in

and continues to

erful nation in the world, able to
afford the luxury

still,

them,

incorporated

and

that he repre¬
not a

reason

sovereign state and

a

political subdivision.

responsible
positions
for their
own
good as well as the benefit
of the world.
Unfortunately, the

Am¬

by Act of Congress—for

simple

sents

"Inside View oi United Nations"
due

Nations is called

United

the

bassador

and nations, I

representative at

elsewhere. Your

3

common

extension

an

21, 1953, in which to dispose of its
stock in Westpan and the South¬

Development Co.

Worcester Gas

short-term notes to the National

to 4%

subsidiary, and for working capital.

Underwriter—May be Union Securities Corp.. New York.

Under¬

companies);

not

to

(52.85%) of the stock of each of the other two companies.

issue and sell $59,-

Canadian

several

and

000,000 of 3%

Offering—Expected in January or February

Continued from page

holdings of

Co.; Northwestern Mutual Life

New York Life Insurance

Aug.'25

on

indebtedness

;bank loans owed by Le Tourneau- West-

a new

six months from June

first mortgage bonds to insurance com¬

4%

authorized

Westpan Hydrocarbon Co.
July 1 SEC granted Sinclair Oil Corp.

April 2

panies (including Prudential Insurance Co. of

1-for-13

first to stockholders on a

offered

be

to

this Fall.

the

Underwriter—The First Boston Corp., New York.

Corp., New York.

April 1 it was stated company may

$3,000,000 of pre¬
the remainder in common stock, the

$12,000,000 bonds; from $2,000,000 to

latter

inghouse Co.,

Co.

West Coast Transmission

plans to issue and
$20,000,000 of securities (to consist of around

it was announced

6

off $30,000,000

issue and sell about

additional common stock

First Boston Corp., New

exceeding $50,000,000 at any time outstanding. Financing
being considered ($35,000,000 25-year debentures) to pay

Service Co.

Public

increasing

on

western

writer—Stone & Webster Securities

Southwestern

vote

Co.

Aug. 7 it was reported company may

May be The

—

Westinghoure Air Brake C >. (9/15)
July 8 it was announced stockholders will

$30,000,000 of debentures.

ic Virginia Electric & Power

(jointly).

Securities Corp.

Underwriters

York.

Proceeds—For 1953
construction program. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; .Morgan Stanley & Co., White, Weld & Co.
and Equitable Securities Corp. (jointly); The First Bos¬
ton
Corp., Harriman Ripley & Co. Inc. and Goldman
Sachs & Co. (jointly). Offering—Expected later in 1953.

by competitive

A total of 978,527 no par com¬
presently outstanding. Offering X Ex¬

are

pected before end of 1953, subject to market conditions.

May 1 it was announced company (in addition to above
mentioned proposed stock offering) plans to issue and
sell about

shares

mon

United Gas Corp.

Electric Co.

trustees are

$8,000,000 bank loan.

an

County Court House, Pearl & Centre
Y.

noon) in Room 325,

Companies
Caldwell, President, stated

H. J.

30,

studying plan to issue and sell additional common stock
which would provide the company's electric subsidiary
with sufficient funds to retire not exceeding one-half of

by
(at

common

Sts., New York, N.

April 29 it was announced company later this year will
issue and sell
50,000 shares of cumulative preferred
stock

stock, par $1)
will be sold
Broadway Corp. at a judicial auction on Aug. 31

61

Development Co.
Westpan Hydrocarbon Co. below.

Southwestern Gas &

June

was

of

shares

Southwestern
See

Western Massachusetts

Pipe Line Corp.

Gas

if Trans-Penn Transit Corp. (Pa.)
(8/31)
Aug. 17 it was announced that all of the issued and
outstanding capital stocL-k of this corporation
(404,500

Examiner
filed a decision, subject to Cdmmission review, author¬
izing the company to construct 335 miles of pipeline
in Alabama, Georgia and Florida at an estimated cost
of $8,141,518. Rehearing by FPC to be held Aug. 10.
it

19

Oregon. Underwriter—Eastman, Dillon & Co.. New York.

reported company may issue some con¬
vertible preferred stock before the Fall.
Underwriters
—Probably White, Weld & Co. and Stone & Webster
Securities Corp., both of New York.
4 it

May

South Georgia
Feb.

Underwriter—

common stock.
Co., New York.

some

Transcontinental

York.

Corp., New

and

Morgan Stanley &

if Seaboard Finance Co.
Aug. 11 it was reported company may

Boston

Stauffer Chemical Co.,

debentures

Co. (jointly). Common stock will prob¬
ably be offered for subscription by stockholders. Offer¬
ing—Expected during the Fall of 1953.
der, Peabody &'

financing (probably in
the end of this year.

City Bank of New York; and about 3,500,000 shares of
common
stock for about $30,000,000.
Proceeds—To fi¬
nance construction
of a natural gas pipe line from the
Canadian Peace River field to westerri Washington and

NeW York
July 29 it was reported company plans new financing
in the near future.
This may include $20,000,000 of
•

un¬

tion and better health will make a

base

for

good

better

part,

complish
the

governments."

In

trying to

ac¬

are

these

things

Nations.

United

ceeded
and

we

in many of its

failed

in

others.

It

through
has

We are, on

balance, disappointed in it.
we

abandon

it

suc¬

enterprises

entirely

or

Shall
shall

Neverthe¬ selfish— must occupy the same
we try to make it more effective?
less, we have managed, despite hemisphere
or
even
the same
of respect for human rights and world government. It cannot im¬ the interruption of the Civil War, globe with such nations. But it is Amendment of the Charter will
to get along together.
basic
freedoms.
The
be considered by the General As¬
designers pose a tax of any kind. It cannot
a
miracle that in spite of their
The problems involved in get¬
realized the inequalities and in¬ draft a single soldier—from any
manifest inadequacies they have sembly in two years. It's time we
stabilities of the member nations
ting
along
together as nations




country

for

service

in

Korea or

for

such participation.

Number 5248

Volume 178

The Commercial and Financial Chronicle

..

.

thinking about it.
What
ideas has Mr. Rob¬

started

constructive

offer?

to

ertson

"Fight the good fight of faith!"

or¬

able.

ganized, for which local resources

such

will

in the credit of the United States.

of

civilian

Tresident, Los Angeles State Col¬

defense

have

be

to

has to

be

A

tapped.

floods brought under con¬
is peaceful develop¬

trol.

There

ment

of atomic energy,

and other

scientific advances.

lege of Applied Arts and Sciences,

Large

Angeles, Calif.

Los

non-perish¬
products and other ma¬

Robertson has done

Mr.

terials

of

reserves

able farm
I think

Our

be

can

stored

invalu¬

as

is

a

for

success

balance

a

huge
air raid warning system has to be As long
set up;

howard Mcdonald

(655)

will

of

weapon

achieving
registered

credit is

our

as

in
be

If

stroyed,

a

paid

all.

by

it

fearful

price
Preserving

our

strength until the

de¬

will
the

be
na¬

primarily a matter
attempting too much at any

time

one

beyond available

—

hind

agree

entirely

with

his

conclu¬

sions

that

the

United
tions

Na¬

organ¬

ization
been

fail-.

It

ure.

Howard

has
a

is

the

Curtain

Iron

would be cut off in
If

what

of

case

be

must

which

and

war.

is

done

prop¬

erly synchronized, the whole free
world

can

peace

know

ing to settle and where
compromise.

National

DIVIDEND

All

perfect, I will
grant, but it
i3

giving much to the progress of
the
world
through constructive

outstanding

should
into

be

with

and

should
This

be

is

it

world

a

its

not

meant

never

consider

be so,

It

President.

A.

of

the

read

deal

of

I

a

am

that it contains valuable fac¬

sure

tual, information.

I do

not find

it

Dividend No.

Common
A

quarterly

(1%%)

Dividend

dividend
the

on

No.

of

per

Stock

have

some

grave

very

Stock have

limitations and weaknesses. Every

should

effort

made

be

to

in

takes

the

declared.

E.

will

F.

that

much

per

cents per share, on the com¬
stock of the corporation, payable

record

15,

close

and

in

the

Both dividends

believe

I

should

I

the

for

see

indicate

and

share

■■

admittedly

I

great.

very

are

capable of such
is

well

of
■■

am

in

sary.

the

and

the

to

failures

organization.

an

my

Indeed,

call attention

to

shortcomings
such

article.

an

of Di-

has

declared

certain that Mr. Robertson is very
it

a

IS

■■

as neces¬

'

of record

on

from

"Beware of

■■

■■

August 21,

W.

ing.
be

the

on

rean

War.

outbreak

in

■■
■■

■■■■■■■ ■■■■■■■■■

iBiiiiinaiiiiiiiiHiiiiiHmii

rents and other costs, to

ply

and

By

preserving

all
to

the

give

time

demand
a

to

adjust.

balance

among

parts of the economy, I hoped
the distorted advances

which

cause

unhealthy

booms—

busts.

were

the pressure
given selfish advan¬

PREFERRED

they again are given
selfish advantage, the adjustments

A

be made

Company -today
quarterly dividend of

Cyanamid

declared

a

eighty-seven

and

one-half

cents

(87y2f) per share on the outstand¬
ing shares of the Company's 3%%
Cumulative Preferred Stock, Series

October 1.
1953, to the holders of such stock
of record at the close of business
Series B, payable

September 1,

1953.

World

Enough

to

Develop

unfinished

business

is

hand to keep us busy — if we
can'discipline ourselves to think
terms

whole

of

what is

country.

unfulfilled

The Board of Directors

A

of

us

has

major job




i

of Amer¬

Cyanamid Company today de¬

of fifty
cents (501) per share on the out¬
standing
shares of the Common
Stock
of
the
Company,
payable
September 25, 1953. to the holders
of such stock of record at the close
of business September 1, 1953.
R.

S.

KYLE, Secretary

good for the

Each

desires.

DIVIDEND

clared a quarterly dividend

at

in

COMMON

ican

worse.

New

Reynolds Metals Building
Richmond 19, Virginia

17, 1953

COMMON

of $1.1 2Vj a
Stock—$4.50 Series

York. August 18,

(25<)

Stock
Series, both payable October 24,
stockholders of record at the close
share on the Preferred

a

DIVIDEND

of

twenty-five

share

on

stock

has

payable October

declared

been

1953, to hold¬

1,

September 21, 1953.

third
dividend for 1953, payable Septem¬

transfer

The

of record at

closed.

August 24, 1953.

books

Checks

will

will
be

not

be

mailed

by

Company.

of the Manhattan

Bank

Secretary

ALLYN DILLARD,

Secretary

L. duP. COPELAND,

cents

the outstanding

of record at the close of business

ers

October 9, 1953; also 85<

on

a

common

the Common Stock as the

on

dividend

A

L

Dated, August 14, 1953

,

TOBACCO

London it

of

was

for each

Stock

Ordinary

for

Ten Shil¬

the

year

issued
Ordinary Stock of the Company, free of
Income Tax.

United Kingdom

decided to pay on

the

5% Preference Stock.
on

or

All transfers
before August

decided

tax)

on

the 6%

transfers

received

fore October 7,

payment of

Stock for the

of

Preference
in

London

Stock.
on

or

All
be¬

1953 will be in time for

may

be entitled by
of the Double

between the United
States and the United Kingdom, to a tax
credit under Section 131 of the United

Taxation

Treaty

States Internal Revenue Code

can

by

ap¬

plication to Guaranty Trust Company of
New York obtain certificates giving par¬
ticulars
come

of rates

Tax

mentioned

UNITED FRUIT COMPANY
217 th
Consecutive

30th

on

dividend

Trust

Guaranty

ness

J953, to stockholders

The

EMERY

Secretary

made.

usual

Zx/i%

of

dividend

half-yearly

of United Kingdom In¬

Income

September next will also be payable
September, 1953.

on

Coupon
with

No.

100

deposited

be

must

National Provincial Bank

the

Lim¬

London,
W.C.2., for examination five clear busi¬
ness
days (excluding Saturday) before
Court,

Savoy

payment is
DATED

11th

Strand,

made.
August, 1953.
The Board of Directors has
the

A. D. McCORMICK,

Egham, Surrey.
Stockholders
virtue

States

may

the

the

United

United

under

States

be entitled by

(1) of the Double

between

Treaty

and

credit

tax

who

of Article XIII

Taxation

Kingdom, to la
Section 131
of the

August 12, 1953

can

Internal

Revenue

Code

to

by

all the above mentioned dividends.

|

PREFERRED STOCK

3

DIVIDEND No.
A

declared

following dividends:
/

SECRETARY.
Rusham House,

application to Guaranty Trust
Company of New York obtain certifi¬
cates
giving .particulars of rates of
United Kingdom Income Tax appropriate

1953.

and Treasurer

VBoston. Mass. August 17. 1953

the 30th

United

COMPANY, LIMITED

of record
LEONARD

the 5% Preference Stock (less
Tax) for the year ending 30th

appropriate to all the above

BRITISH-AMERICAN

N.

on

dividends.

TOBACCO

the cap¬

September 11, 1953.

clear busi¬
days (excluding Saturday) before
for examination five

payment is

dividend

stock of this Company have
been declared payable October 15,

ital

York, 32 Lombard Street, London,

E.C.3.,

Quarterly Dividend

dividend of seventy-five cents

per share and an extra
of fifty cents per share on

No. ,/2l8
Company of

deposit Coupon

must

the

with

A

BY ORDER

XI11(1)

who

Article

the Or¬

year

September, 1953.
Holders of Bearer Stock to obtain tliis

able

dividends to transferees.

Stockholders
virtue

pay on October 30,
dividend of 3% (less

to

half-yearly

on

ending 30th
September 1953 of four pence for each
Ten Shillings of Ordinary Stock, free of
United Kingdom Income Tax will be pay¬

New
same

1953 will be in time for payment of

1953

dividend

A second interim

ending September 30, 1953 on the

Also

The Board of Directors of Amer¬

If

will also

in

Four Pence

of

DIVIDEND

tages—which made the inflation
worse.

REYNOLDS

has declared this day

the Preferred

14, 1953, to stockholders

ited,

COMPANY

ican

1953.

TOBACCO COMPANY LIMITED

dividends to transferees.

A and

Unfortunately,
groups

on

28,

sup¬

August 17, 1953.

BRITISH-AMERICAN

REGNER, Secretary.

received in London

Ko¬

prevent

and

1953.

G.

dend

all prices, all wages, all

omy, over

August 28,

1953.

decided to
September 30, 1953 Interim Divi¬

pay

the

ceiling
the whole econ¬

across

to stock¬

Coupon No. 218 must be used for divi¬
on the Ordinary
Stock and Coupon
No. 100 must be used for dividend on

AMERICAN

propos¬

of

1953,

day
half-yearly dividend of 2*/2% 0ess *ax)
on issued
5% Preference Stock.

overall

an

15,

meeting of Directors held August

a

1953

lings

Treasurer

August 14, 195 J.

Icebergs!"

motives

that

placed

At

11,

THORP. JR.

adjustments, is to keep the econ¬
in balance. That was one of
strongest

J. E. REEVES, Treasurer

the close of business on

dinary

omy
my

capital

COMPANY, LIMITED

9

page

business

WARRANTS TO BEARER

the

Also

Continued

the

Corpora¬

BRITISH-AMERICAN

dend
G.

1953. The

1,

Company will

not be closed.

ORDINARY AND PREFERENCE STOCK

s:

payable Au¬

on

stock¬

close of

NOTICE OF DIVIDENDS TO HOLDERS OF

1953.

■ ■•■■BMMMBHIlMaM

f

of

value)

September

record

of

holders

on

the

L.

1953, to stockhold¬

of

payable

tion,

share,

per
par

Divj(W

share

a

Common Stock,

ers

a

of thirty-

extra dividend

an

(35c)

(without

August 18,

quarterly dividend

cents

gust 31,

interim

declared

has

today

This other,

judgment, is just

■■

Stock

rectors

cents

stock

Common

Directors

of

share and

per

ENCAUSTIC TILING

The Board

September

transfer books of the

quarterly dividend of twenty-five cents (25c)
five

COMPANY, INC.

share

ber

TILE

AMERICAN

in

the organization of the UN, which

on

and 87y2(

DIVIDEND
Board

The

■■

defects

of

Wilmington, Delaware, August

a

WALL &

FLOOR

solution

some

limitations

fl£

payable

to

the

at

COMPANY

CORPORATION

■■■■■■■■■■

fact,
is the

close

1953,

METALS

1953, to

article

an

the

business

15,
record

BRICCS & STRATTON

of business

take

and

view

to

at

of

E. I. DU PONT DE NEMOURS & COMPANY

—$3.50

Robertson in which he
a
positive point of

by. Mr.
would

like

record

holders

regular quarterly dividends

In

the UN
only hope for world peace.
today.

of

The Board of Directors

develop¬

cooperation.

September

Page, Secretary and Treasurer

Manufacturers of

NOTICE

DIVIDEND

A, quarterly dividend of 30c per

Dividend No. 100

New York, N. Y., August 18,

W. WILSON

July 22, 1953

ment of ideas and doctrines of in¬

ternational

Pierce, Secretary

WILLIAM T. SMITH, Treasurer

a

remain open.

in discourag¬

assisting in

quarterly dividcndj of
declared on the com'

August 28, 1953.

emphasize, how¬
balance the UN has

success

a

was

the close of business Scptenv

at

holders

to stockholders
of business on

1953,

the

at

Tbbiggs&StrattonJ

ing aggression in several instances

day,

share

stock of the

August 18, 1953, a dividend of Fifty
Cents ($.50) per share was declared on the
2,658,230 shares, of the Capital Stock of
Nevvmont Mining Corporation now outstand¬
ing, payable September 11, 1953 to stock¬

than paid for itself in

terms of the

Secretary-T reasurer

the

future.

on

more

Beachley,

meeting of the Board of Directors,

„

declared

I should like to
ever,

Charles E.

August 17, 1953.

Company, payable
September 30, 1953, to stockholders of

12%

September 2, 1953. The stock trans¬

books

correct

these conditions and to avoid mis¬

1953. Checks will be mailed.

share

for

payable October 1, 1953 to holders of

record

fer

been

quar¬

President

are

Council

of

ROY

UN

particularly the Security

Company

COMMON DIVIDEND No. 309

held this

mon

quarterly dividend of 12%,
share, and an extra dividend

190

75<f

Preferred

a

terly dividend of 75 cents per share on the
Common Stock of the Company, payable on
September 11, 1953, to shareholders of rec¬
ord at the, close of business on August 28,

August 12, 1953

J

COMPANY

meeting held today, declared

a

share has been declared,

180

dividend of 25tf per share on the Common

and

regular

Septemher

One could well
agree with Mr. Robertson that the
constructive.

very

PITTSBURGH

at

Corporation

of

September 30, 1953 and

quarter ending

NOTICES

our

see

CORP.

mon

with

and

DIVIDEND

our

The Garlock

September 1, 1953.

article

interest

West

and

NOTICES

Packing

a

210

REEVES BROTHERS, mc.

cents

Preferred

have

I

Co.,

The Board of Directors of

to

INewmoiit Mining

a

Tucson, Ariz.

great

arid

On

Company

Botzum

COAL
DIVIDEND

Chicago, Illinois

Arizona,

A.

will

a.cne

ADVANCE ALUMINUM CASTINGS

The Board of Directors has

American

C.

CONSOLIDATION

H. B.

NOTICES

HARVILL

University

NOTICES

Botzum, Jr. has joined the staff

be lost.

At

Chronicle)

Seventh Street.

into

avail-

Bank Note
RICHARD

doing

of

military

strength

brought
phys¬

develop into such.

ever

means

was

should

nor

cannot

A.

won.

the

resources

DIVIDEND

the

Financial

aims through, the peace will

peace

record

government.

function.

to

it

that

organize

economic

we

The

ber 1 1, 1953.

deliberation and recommendations.

people

we

Credit

both

allies

Unless

to

LOS ANGELES, Calif.—Charles

is

derived

words

peace.

will¬

are

commitments

reviewed

balance

ical and financial

and

first

not

McDonald

Some

This

that

make

economic

(Special

aims, we
hold together

peace

be

one

thinking

per

economically and militarily, even
while guarding against war.
the

we

steadily stronger

grow

Guard

what terms

on

must

we

no

re¬

sources, or beyond the disciplines
good work in assembling able insurance
against the threat
we are willing to accept.
facts concerning the various mem¬ of war.
•
bers of the United Nations, parTo sum up, the very fact that
Abroad, vast fields of potential
1
ticularly those
the
deadlock
of
the
cold
war
investment can be opened. Main¬
who
are,
or
seems
about
to
break
and
the
ly, what is needed is recognition
have
been,
situation is changing so rapidly
by these governments of a fair
members
of
is all the more reason for holding
investment return.
New sources
the Security
fast to certain unchanging funda¬
of supply
can
be developed for
Council.
mentals.
things which now come from be¬
However, I
To make
some

cannot

military

Let

Joins C. A. Botzum Co.

ar¬

common

allies must

our

nego¬

Second, having

power

tional credit is
of not

and

before

now

tiations begin.
rived at these

is

enormous

emergency.

any

good, it

homework

our

35

quarterly dividend of 10
cents per share on the 40d Cumulative
Preferred Stock, payable September
30, 1953 to stockholders of record
regular

September 18, 1953.
COMMON STOCK
DIVIDEND No.

45,

A dividend of 20 cents per

share on
payable October
1, 1953 to stockholders of record
September 18, 1953.
the Common Stock,

BORDEN R.

PUTNAM,

Vice-President & Treasurer,

August 18, 1953

Financial Chronicle

The Commercial and

.

Thursday, August 20,1953

..

(656)

36
I

BUSINESS BUZZ
4*)

on

'

•

•

•

*'
■
,

A

Behind-the-Scene Interpretations
from the Nation's

credit to

warned Congress that

seemed to limit the

this an¬
form of a

rapidly

conser¬
this he

with

message

attention.

for the

urgent

■the

mnd security

priations and tax revenues, we
«emetimes overlook the funda¬

to

importance

mental

our

na¬

construc¬

of

well-being

tional

tive, forward-looking
policies
designed to conserve and im¬

j

the nation's Natural re¬
viewable. resources," Mr. Eisen¬
hower told the Congress.

prove

to the

attention

called

himself

;

vast

importance to this Nation now
«nd in the future of our soil and

the

who may err a little on
pessimistic side, but seldom
on the total trend, expects
two more deficits in a row, $10
billion
in
the
current
fiscal
Va.),

the

rents

errs

business.

spring

upon

resource

tion.

in the field of
development. . .
several ex¬

addition

"In
ate

to

immedi¬

the

a

of waste resulting
inadequate
conservation

danger

<rom

measures, we

omy.

and

an

to

the

mation

allowance

amortiza¬

improving

with

Such

sage."

able

able."

improvement and recla¬
of land in its broadest

heart

hower's

aspects, including soil produc¬
tivity, irrigation, drainage,, and
replenishing
of
ground
water reserves, if we are ade¬

■the

quately to feed and clothe our
people, to provide gainful em¬
ployment, and to continue to

l^ocal

Envisages

radio

Support

In one respect, this sweeping
prospective resources program

Rooseveltian

the

from

varies

position,

cently,

financial

taken

a

eral

economy

[some sort of a program]
will require the revitalization of
renewable
resources
by users
who should be entitled to rea¬

the

sonable
tion

in

assurances,

with

authorized

Wants River Basin
"And it will

river

hensive

with

the

uses.

.

*

.

Planning

cooperation
.

.

of

state

Administration is

mov¬

policies for the use of
soil, our public lands, and

proved
*nr

water resources.

...

A re¬

view Is being ftiade of the basic
Slower

policies

of

the

Federal

<*overnment in connection with

chief obstacle

the

are

Committee, and
buried in the session-

river basin
it relates to pri¬

also

was

end avalanche of news.

was

Federal

tax

that

vate economic development.

Engineers

existing

we

ana

free

our

that

de¬

necessary

abolished

a

labyrinth of needless controls,"
he said.
This is

even

stronger language

than the President used against

of

business.

small

nesses

are

a

Such

after

is

taxes

expansion for

to
a

operation,
particu¬
larly during the first few years
of

operation."
The report

Na¬

meeting, which

New York

tivity

held

was

ir*

City, that business ac¬

the

in

Con¬

Finance

Commercial

half of the-

second

would continue at about the
same
rate as
in the first half.

year

However,

a

majority also felt that:

against

Congressional

what, though
tighter.

significantly^

not

Although a few felt that the de¬
for working capital funds;

mand

remain

would

the

same,

large

a

executives

the

of

majority

be¬

lieved that it would increase, par¬

ticularly in the area of small and

forgetting that
this was a joint CongressionalWhite House policy, Mr. Eisen¬
hower
adopted
a
hands-off,
"that is up to Congress" atti¬

medium-sized

Mr,

Capehart

with the ball with the assistance
of

Democrats

als."

So

the

and

GOP

"liber¬

stopping of these

standby controls became one of
the

toughest,

temper-raising

time-consuming,
issues

of

field?

the Con¬

Emerick

Joins Ames,

.

a

—

of

specialize in servicing.

ference

away

ran

business

members

the

which

to The

(Special

Financial Chronicle)

111.

CHICAGO,

—

Edward

M>.

Wetz has

joined the staff of Ames,.

Emerich

&

La

Co.,

Southn

105

Inc.,

Street, members of the^

Salle

Midwest Stock Exchange.

Mr.

Eisenhower's first session.

(This column is intended to re¬

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)

TRADING MARKETS
Riverside

Cement

National

"B"

Company

Seneca

Falls

Machine

Dennison

Mfg.

"A" Com.

& G.

A.

J. Caldwell

Gorton Pew Fisheries

FOREIGN SECURITIES

Polaroid
Geo.

Firm

Trading Markets

A.

S.

Atlantic

f?ARL MARKS &pO. INC.

E.

Co.
Keith

Pfd.
Pfd.

Campbell Com.

Coast

Fisheries Com.

Washington Brick & Lime

Com.

busi¬

unable to retain suf¬

earnings

association—the

trade

leadership.

structure undoubt¬

deterrent to the
growth and expansion
as

successful

making a study of the basis for
.State and local financial partici-




"the

continued

edly acts

finance normal

of

bonds

policy

official

Among the conclusions of the

report

^development

Corps

to

To

controls.

Wolcott

tude.

eco¬

their

at

credit conditions would be some¬

standby

However, another such report
has been issued by the House

ficient

'The

from

major

the

lists what it calls

Foreign Securities Specialists
50 Broad Street... New York 4, N. Y.

LEANER & CO.
Investment Securities

Tel: HAnover 2-0050

Teletype NY 1-971

'

the

recent
semi-annual directors' meeting of
industry,

leadership, in oppos¬

GOP

ing

been legion.

small business, has

multiple-purpose
as

reports from

of

parade

of

healthy

competition,

Congressional committees, ex¬
pert witnesses, and businessmen
who point out that the high tax

wage,

v

•

commercial

profits would be lower, and that

and

Small Business

.

ing ahead in the formulation of
sound
organization
and
im¬

®nr

natured

Berates Tax Effect

The

rates

require compre¬
basin
planning

and local interests.
"This

connec¬

job alone.

series

decisions.

ing
"It

to

"Moreover, in pursuit of this
objective of encouraging
individual initiative,
we
have

great

the Fed¬
Government will not do all

Eisen¬

taken in his
the nation re¬

opposition

in

nomic

of liv¬

standard

our

to

represented

Thereafter,

consider¬

price, and rent controls.

pattern. While the Persident is
vague about the nature of local

participation, he does

took

President

at

report

indicate definitely that

■improve

Opposes Controls

Ike

all

controls.

standby

;

•

the offi¬

cial

GOP

Conservatives

inferentially,

and,

,

the

ference, Inc.—concluded, as a resuit of an informal poll taken at.

the

controls, which there¬
upon became the combined pol¬
icy of the White House and the

ity of the Federal tax laws."

finance

■

of

tional

Mr.

standby

compliance due to the complex¬

.1

Executives

the

Senator Taft

the

In Second Half of '53

out the

President Eisenhower adopted

"(4) The increasing burden of

j

See Lower Profits

in
at

Capehart represented

Wolcott

late

coupled

dividends

as

presence

enacting

in

Rep.

shareholders.

the

program,

a

earnings

and

question,

the Senate Democrats interested

without further taxation to the

added, is "indispens¬

(R., Ind.), the Chairman of

the other, had argued

Senator

inability to distribute

the

such

Cape-

White House.

its under Section 102 of the In¬

Code,

E.

hart

himself

Revenue

hand,

Homer

Eisenhower's

"(3) The threat of taxation on
accumulated earnings and prof¬

President said. "It is

President

give increased attention

«eed to

the
and

respect

one

Senator

control

Revenue

to

objectives set forth in this mes¬

shall

Internal

the

on

and

on

tion.

of this Administra¬
tion to present to the next ses¬
sion of Congress suitable recom¬
mendations
for
achieving the

...

"But in the long-run, we

of

(R., Mich.), the Chair-,
the
House
Banking

the Senate Banking Committee,

depreciation

with
for

the purpose

must bear in mind
growing populaexpanding econ¬

corpo¬

The policy of the Com¬

"(2)

high priority business for all

of us," the

■the needs of a

■tion

and

impact of the

missioner

land and water resources is

our

of

Committee,

cess-profits tax.

ternal

"Conserving

pansive concepts follow:

Wolcott

rate normal tax, surtax, and ex¬

Congress

federal program

water, our forests and minerals,
our wildlife resources.
I in¬
the need for a strong

«nd

was

small

excessive

The

combined

years,

dicated

of

language
written after Rep. Jesse P.

man

at least two

for

growth

first

The

Congress.

deter¬

as

rates of
corporation taxation due to the

brand new vast resources
conservation works and spend¬
program

laws

tax

the

to

"(1)

any

ing

Federal

his first message to

controls in

problem areas"

"four main

in

when the budget is pos¬
sibly in balance, if there is no
new emergency anywhere.
However, the President him¬
self indicates a contrary inten¬

Some of the other

Finance Executives

ending "planned deficits."
Harry
F. Byrd
(D.,

to

Wil¬

—

J. K. Lasser —
Reports,
Inc.,
1 Maim

Street, Roslyn, L. I., N. Y.—Fabrikoid—$12.50.

Senator

tends

Shelter in Business

Business

and $14 billion in fiscal '55.
Hence, it would not be pre¬
sumed that Mr. Eisenhower in¬

bis State of the Union message,
"I

Tax

liam J. Casey and

year

that in

noted

President

The

copy,

however, has

dedicated

has

he

said
to

gas

was

improvement of the eco¬
strength of

Mr. Eisenhower,

problems of peace
and budget appro¬

on

—

Nation.

i the

dealing with

"In the stress of

published

utilities—price monthly::
$2; ten copies, $5
(additional copies ten cents each>
C. A. Turner, 327 South La
Salle Street, Chicago 4, 111.
and

single

nomic and financial

almost Rooseveltian.

was

Stocks

Common

first of
each month covering 185 electric
Folder

—

bia basin development, etc., was

the Eisenhower message

guage,

always

almost

contention

Utility

Public

pro¬

j that any desirable TVA, Colum¬

of its lan¬

In the broad sweep

ments, Basle, Switzerland—Paper.

President's

Deal

New

late

the

Great

—Bank

Roosevelt

Mr.

were

Exchange Regulations
Britain—Supplement 7
for International Settle¬

Foreign
in

hower, this might be sloughed
off as so much persiflage, for

received

hardly

this

If

York 17, N. Y„

Park Avenue, New

—paper—25c.

speaking instead of Mr. Eisen¬

burning issues of the adjourn¬
ment rush, that the conserva¬
*ny

fiscal

sound overall

a

International
Inc., 103

of Commerce,

Chamber

consistent

possible

Abroad—United

Doing Business

States Council of the

Govern¬

gram,"

however, for the Con¬
and the press were so pre■^ccupied with the problem of
the debt limit boost and other
tailed,

gress

tion

Opie—The Brookings In¬

Washington 6, D. C.—cloth—$6.00.

plans are prepared
agreement and co¬

as

and

Jr.

Brown,

unfolding of

provement and the installation
of land treatment measures as

Mr. Eisenhower indicated
that he v/anted to alert the Con¬

gress.

-

Adams

stitution, 722 Jackson Place, N. W.

operation are assured, I believe
we
should move ahead in the
construction of works of im¬

message almost at the
•end of the last session of Con¬

■special

gress to the problem of
vation of resources.
In

these

local

Assistance—

Foreign

American

William

the

of

"As
and

The President made

the

protection

Federal
ment when he said:

comprehensive river

in

'

the fiscal capa¬

this program to
cities

planning scheme.

nouncement

f/<>///,--,,r

however

Eisenhower,

Mr

next

he will come forward with
a vast new program of water revsources development, conserva¬
"basin

'

-

Puzzles

Angle

Fiscal

year

tion, and a

'

f

;

Redvers

would be a
Franklin D, Roosevelt,
which

agination
tias

im¬

with an

Eisenhower,

y Chli

M. I/M'

m

pation in local flood
works...."

WASHINGTON, D. C.—Presi¬
dent

gJ

Capital

'-a
'//
'
wp%
■
Kit i

„>

'

10 Post Office Square,

Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

BS 69

"