Full text of Commercial and Financial Chronicle : August 21, 1952, Vol. 176, No. 5144

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UNIVERSITY
OF MICHIGAN

ESTABLISHED 1S39

AUG 22 195:

72* Commercial

HKIKttS MMMISTUIION
UBMK

Financial

Chronicle

Reg. U. 8. Pat. Office

Volume 176

Number 5144

New

York, N. Y., Thursday, August 21, 1952

Price 40 Cents

Copy

a

EDITORIAL

Gold Markets in

As
It

to

seems

figures have
tremes

us

grown

soon

a

just

little silly in the

a

they have

gone

to

To

it appears

us

particularly

ex¬

Mr. Bratter describes

will

"captive" of an element in his
party that he roundly defeated in order to get
himself nominated in the first
place. But there
have been other
charges which appeared foolish
enough in all conscience.

of air transportation

"captive" cliche is but a catchphrase employed by the politicos in hopes of
catching the ear of the public in such a way as
to advance the fortunes of one
party or one can¬
didate

makes

the other.

or

any

with which

sense

So far

a

or

to know

visit three
own

hoarders and

that

Continued

Gold

ments

seek

are

the

about

the

stations

visible;

cover

more

of

what

the

well

as

in

are

management.

for

French

"internal"

gold

Continued
NOW

porate securities

IN

are

REGISTRATION

afforded

a

—

complete

Underwriters,

on

example, that the dividend factor
relatively less important in 1929

was

the

Then

or

a

prospects
O.

K. Burrell

as

prospects

This, of
gible

market

course,

evidence

were

would

Municipal

that

different

types

investors

in

Oil

Hawaiian Securities

BANK & TRUST

Co.

&

BROKERAGE SERVICE

Members of all Principal Exchanges

ESTABLISHED

Commodity

Los

•

Angeles

•

50
Chicago

Bond

Honolulu

•

Dept. Teletype: NY 1-708

Husky Oil

of INDIA, LIMITED
Bankers

to

the

Government

&

in

Office:

26,

Branches

in

India,

Aden,

Uganda,

land

Exchange

Curb Exchange

New York 4
Tele. NY 1-733




Pakistan,

Somali-

-

£4,562,500

Paid-up

Capital-,.-

£2,281,250

Reserve

Fund—L'--

CANADIAN

£3,675,000

The Bank conducts

banking

and

River

description of
exchange business.
every

Trusteeships and Executorships
also undertaken

Angeles

New York
Denver

NATIONAL
Of THE

CITY

BANK

OF NEW

YORK

Spokane

BONDS & STOCKS

New

England

Public Service Co.
Analysis

Goodbody
ESTABLISHED

MEMBERS NEW
115

BROADWAY

NEW YORK

upon

request

DEPARTMENT

Protectorate.

Authorised Capital

Los

City

Bough t — Sold—-Quoted

Ceylon,
Tanganyika,

and

Lake

Natural Gas Co., Ltd.

Bishopsgate,

Kenya,

Zanzibar,

Broadway

Salt

CHASE

THE

1915

CANADIAN

Refining, Ltd.
Peace

Kenya Colony and Uganda

Burma,

Hardy & Co.

Bonds

Mining

J. A. HOGLE & CO.

London, E. C. 2

Brokers and Dealers

and

OF NEW YORK

Street, New York, N. Y.

Members of Principal

Head

Broad St.

29

Municipal

THE NATIONAL CITY BANK

NATIONAL BANK

STOCK and BOND

30

page

Bond Department

Dean Witter

Boston

Tel. DIgby 4-7800

tan¬

Wires

and Security Exchanges

York

on

no

respond

Securities

San Francisco

New

stocks

Direct Private Wires

14 Wall

COMPANY

Members

average.

We have

of

1891

YORK STOCK
1

Co.
EXCH.

PoMEnoH Securities
Grpokatio?i
40 Exchange Place,

New York b, N. Y.

and

New

Teletype NY 1-702-3

WHitehall 4-8161

Boston

York Stock Exchange

other Principal

111

Exchanges

Broadway, N. Y. 6

WOrth 4-6000

NORTH LA SALLE ST.
CHICAGO

ira haupt & co.
Members

Teletype NY 1-2708

Telephone:

a

company

only

cor¬

UTAH

Chemical

Stock

a

to

extent

same

registered with the SEC

HAnover 2-3700

York

of

be

Continued

Pacific Coast &

Direct Private

New

respond

State and

Securities

Members

to

is merely conjecture.

U. S. Government,

for Banks,

not

the stock

considered

m

telephone:

unusually brilliant

might

16

and

with

dividend increase to the

,

whose

serve

page

company

and potential undertakings in our "Securities in Registration"
Section, starting on page 25.

DEALERS

Stale and

again it is possible

dividend

.

likes

entirely

currency

now

now.

factor
may
bey
stronger in some industries and com¬
panies than in others. The stock of

and in¬

dealers

picture of issues

lower
factors

It is quite possible that
single final answer to this
There is reason to suppose,

than

freedom

press,

inadequacies of

the

other

no

that

gold, reported daily in the

The

a

question.

world.

constant reminder of the

a

a

there is

facilities for gold in transit. The free market's

transactions

all

But precisely how much

the business?

free and anonymous market in gold to residents of France
as

as

SECURITIES

often they
Tangier,

Tangier is unique in the
which it offers foreign gold
deed capital in any form to come and
go as it
to stay as long as it pleases.
Paris offers an

than

if

in market value is generated
dollar earned and paid out than
dollar earned but retained in

by
by

secrecy.

Bratter

price

stock

more

in

move¬

halting yet perpetual travels around
M.

no guar¬

equal.

the much prized yellow metal in its

Herbert

market

were

mar¬

world

higher

dividend

ag¬

but three way
roads
followed by

the

on

the

on

If two companies have the same
earnings per share
but unequal dividends it has
long been agreed that the
stock with the larger dividend would sell at a
some¬

producers,

Sometimes the

Paris and London

19

page

flows

all directions.

Governor
on

gold

others who in

gregate constitute the free gold
ket.

reduce the likelihood of Mr. Eisenerhow's election.

made

of

test of

a

(2) dividends constitute
cash, whereas "reported" earnings may never be a
reality.

real

cities, which, each in its
play a part in that world¬

network

dividends have four times influence

as

fabricators, dealers, black-marketers,

Republican party, the
meaning intended to be conveyed is that men
like Mr. Hoover, General MacArthur, Senator
Taft, Senator Bricker, or Senator Dirksen will
really fix party policy and programs and that
Mr. Eisenhower as President would hardly be
more than a rubber
stamp. Of course, it may well
be doubted whether those who say such things
really believe them. What these accusers really
are
aiming at is to make the so-called liberals
believe that some such thing as this will be true.
Such a belief, if general, would, so it is hoped,
sometimes

way,

wide

individual in each

Presents

formula, which holds earnings

than retained earnings: (1)
earnings retained is
antee of future dividends, and

a variety of centers.
Recently the writer had occasion to

of talk

of the "Old Guard" in the

charge

of equalizing gold prices

lot about the facilities in

a

and Dodd

price of stocks than that of retained earnings, and con¬
cludes this ratio is substantially accurate. Lists as rea¬
sons why dividends
paid represent stronger market force

by economic and financial con¬
trols the individual desiring to
put some of his savings
into gold as a hedge against
currency depreciation needs

of the parties is likely to be dominant
during the
next four years, or whether
any will. Thus when
it is said that Mr. Eisenhower will be a "captive"

The

paid out

world dominated

all, it is really concerned

at

what element

or

this sort

as

In

Administration

and earnings as stock market forces.

the Graham

in various world centers.

Of course, this

Business

Prof. Burrell discusses relative importance of dividends

by leading Tangier bank and

as means

Market Force

University of Oregon

explains results of interview with its managing director.
Reveals character of French gold market and nature and
extent of French gold hoarding. Describes London's
gold
facilities, particularly as a storage center, and cites use

become the

as

Professor of

trading in gold in various so-called

of gold certificates issued

Retained

vs.

By O. K. BURRELL

free gold markets, and gives details regarding facilities
and methods employed in each area. Cites data on use

non¬

or

Earnings

By HERBERT M. BRATTER

in their talk

that Mr. Eisenhower is

say

Dividends

Perturbed World

good many of the political

leading candidates being "captives" of

this and that.
sensical

that

which

to

about the

We See It

a

Enterprise

.

1820

in

«,v

The Commercial and Financial Chronicle
2

i

(650)

'

.

Thursday, August 2L 1952

..

i •»,! < *

<f :

•

•

?

.

*•

CO";

.

The

and

WE POSITION

IN

TRADE

for favoring

participate and give their reasons

Kansas Gas & Electric
they to be regarded,

are

Puget Sound Power & Light

the average one uses, a

on

W.I.

run,

New York Hanseatic

N. Y. Curb Exchange

In

holders.

prices,

jffipONNELL&rO.

stability

JOHN

backlogs of government
orders, aircraft manufacturers and
others, in the second category.

Exchange
Exchange

5

2-7815

New

at

of

return

8.5%

least

that

to produce that result,
doing to include the in¬
labor
cost in operating

required
and in

so

creased

expenses.

increase

another

The

recent year, assumption of
risks.
bid in 1946. undue

of

business

glucose, corn oil and
is inherently stable.
sugar,

corn

oil

and corn
directly by
important raw

but are

confectioners,
and vegetable shorten¬

materials to bakers,

(IIIIII1I1IIIII11IIIIIIIIIIIIIIIIIIIIIIIIIII

ice

cream

Nuclear Instrument &

Chemical Corp.
*

*

■

*

on

*

,

Request

Republic Investment Company, Inc.
Securities

Investment
231

Until

CHICAGO 4
Telephone

Teletype

FRanklin 2-1150

CG 2197—CG 1614
Direct

Wire

to

Beane

Singer,

Inc.

Mackie,

Established

on

1856

Members

Chicago
New

.

ceed

Like
John

This

the

P.

of

6.23%

Members

150

N.

telephone service in the
Maine, New Hamp¬

believe

to

increased

such

586

bulk

to

sales

on

amount

the

be

well

under

$339,000,000
jor campaign for consumer ac¬ vestment with the
ceptance
of
the
new
product construction undertaken from 1946
named "Amazo." This project was to 1951, inclusive, representing the
financed in 1948 with a $2,700,000 biggest construction program un¬
15-year term loan carrying a 3XA% dertaken by any New England
is

& EXCHANGE
THOMAS D. JENKINS
Broker

it would

seem

around

now

to

us

509 Madison

that

other

dollar

FOREIGN SECURITIES

pru¬

intensive

After

Teletypes
'TEX"

A

where the

return would

concern.

mate

which

6.15%,

For the first three been plagued with rising costs
after Amazo was launched, since World War II and until re¬ that the

Inc.

losses

were

Trade

an

In

DETROIT

,

PITTSBURGH

SWITZERLAND




most

utilities

it

has

would

seem

approxi¬

remembering

stock

whW^paying

same

the order of hun¬

the face

business

as

a

of these losses, the
whole

has

consis¬

paid

for

many

years

prior

to

made

money.

PORTLAND,

World War II.

Approximately 70% of the com¬
In the 10
telephone gross and net
years 1942-1951, American Maize pany's
earnings ranged between $1.05 a income represents Massachusetts
tently

Company

Sioux Oil Co.
COMMON

STOCK

Inquiries Invited

JAMES M.TOOLAU CO.
67 WALL STREET
NEW YORK
HAnover 2-9335

5, N. Y.

Teletype NY 1-2630

Over-the-Counter

expectation

modest

game.

of

1-2345
PKL-NY

ap¬

cently found it difficult to obtain $6.00 sold as high as 136 inH945
of thousands of dollars a compensating rate increases. As a
and 142 in 1946.
To make matters worse, un¬ result earnings and dividends suf¬
realistic price ceilings on animal fered with the latter reaching a
Joins Foster & Marshall
feedstuffs cost the company fur¬ low of $4.25 a share in 1947 in con¬
ther large sums in 1951.
trast to
$6.00 to $8.00 annually
(Special to The Financial Chronicle)

Bldg.

N. Y.

with

N. Y.

—

Producing, Refining

I Quotation

W.

Smith

shall,

U.

V

Building.

p.

J

National Quotation Bureau
Incorporated

Qregfh— Donald

is with Foster &

National

Mar¬

Bank

Services

for 39 Years

year.

Exchanges

NEW YORK 4,

As

TWX

and Distributing

dreds

penny

—

(Gt. Britain & Europe)

that this stock,

110, offering

Ave., N. Y. 22

PLaza 3-5282

proximate 7.30% return, should
gradually work up to around 13C

years

no

& Investors

For Banks, Brokers

rates,

shares, the latter

ante

Exchange

Tel. NY 1-1932

1952 ex¬

American surplus)

Exchange

of

New York 7

Tel. DIgby 9-1550

stabilize its credit
new capital. We find

plant. Such increase will
about 4%% in cost to
consuming public, which we

Exchange

Cotton

Dealers Assn.

Security

Y.

Broadway

represent

Curb

other

GENEVA,

Gersten & Frenkel

phone

com¬

states

suc¬

dently invested in intrastate tele¬

Murray

furnishes

local and toll

operate

earnings will not in

housewife's

N. Y. Cotton Exchange

CHICAGO

its

Best."

pany

under

that

Se¬

I

attract

and

Exchange

Board

Orleans
And

few years ago,

interest rate. The struggle for the

Exchange,

Commodity

5 %s

will

as

Cotton

York
York

New.

profit

Stock

York

New
r

a

turers.

H. Hentz & Co.
New

curity

in Massachu¬
annually in

cessfully, and at such a margin of

be

"The

$6,000,000

by

order to enable it to

characterized
as

revenues

gross

manufac¬ one-third million telephones now wherein the courts have virtually
product in the system or, about a million assured sufficiently high rates for
and market research, the company more than before World War II. this utility) to enable maintenance
expansion
of service has of the current $8.00 dividend. As
developed, a
pre-cooked
corn This
starch pudding. Then began a ma¬ necessitated substantial capital in¬ this is more generally appreciated,

&

York

New

its

setts

(excluding complete coverage of that divi¬
representing
approxi¬ dend. Further benefits are ex¬
pected
from
rate
proceedings
Maize
Products had no, brand- mately 40% of total capital.
name
Operations
have
expanded pending in other states.
product sold over retail
We have, therefore, a situation
store counters. It depended solely markedly with more than two and

tently operates in the black.

LASALLE STREET

SOUTH

Serial

maximum,

a

as

Non-food uses
shire, Massachusetts, Rhode Island which might be expected to resuk
are myriad as in the manufacture
and
Vermont.
American
Tele¬ from the inflationary trend of our
of paper, textiles, soap, explosives
phone, its parent, owns approxi¬ economy during the past year."
and
many
other products. The
mately 70%
of the outstanding
In
1951
this
company
earned
profit margin is affected by many
capital stock.
$6.99 a share, failing to cover the
government interferences with the
Capitalization at the close of current $8.00 rate which has been
working of natural economic for¬
in effect since June, 1951. But, the
ces—sugar quotas, corn crop price 1951 was reasonably conservative.
Total debt of $157,000,000 was fol¬ rate increase just granted in Mas¬
suoports, O. P. S. regulations and
others—but the industry consis¬ lowed by common stock of 2,325,- sachusetts should readily assure

ing manufacturers.

Circular

permissible and
we conclude

minimum

Missouri & Pacific Rwy.

that respondent

en¬

to

titled

animal feeds
The starch,

syrup

corn

and

tion

not only used

are

consumers

LD 33

Old Common

on

the

as

to

seem

grinding corn
selling the resulting starch,

and

Lynchburg, Va.

Missouri & Pacific Rwy.

The grant¬

increase.

rate

"A"

must be permitted
to charge rates which will increase

might

The

Scott, Horner &
Mason, Inc.

6's-1946

July 22, 1952. In connec¬
tion with
it the Department of
Utilities
stated
in
Under current generally inflat¬ Public
part;
ed security prices, it is difficult "... Having in mind the impli¬
public

WOrth 4-5000

Georgia & Florida

ap¬

ing of this rate increase was made

England Telephone and
Telegraph Company

Teletype BS 259

:

Telephone

Y.

^

the Massachusetts De¬
of Public Utilities for

proached
partment

Counsel, Boston, Muss.

N.

granted

that decision.
recently
again

company

MURRAY

was

after

shortly

148 State St., Boston 9, Mass.
Tel. CA 7-0425

"

.

.

rate

A

that
indicate a Bearing
in mind, New
sleepy management and a com¬
pany
sliding down hill. On the England Tel¬
contrary,
the company has
an ephone does
seem
in
an
aggressive management and an
unusual
posi¬
expanding business.

Handley Hardware Co.

request

on

on

not

This

Dan River Mills

Tele. LY 83

every

Circular

to provide for a

as

reaching a peak of 33

American Furniture Co.

Moore

in

level

ent

Trading Markets

HOFFMAN RADIO

.

,

11111111111111111111111111111111111111111111"

V

capital and 6.23% on rein¬
vested surplus, the department to
determine the detailed schedules

When this product

P.

offices

branch

our

J

particular choice at this
cations
of
the
dictum
in
New
time
is a food stock, American for the conservative investor or
trustee
to
obtain
anything
ap¬ England Telephone and Telegraph
Maize Products, traded over the
v.
Department of Public Utilities,
counter
and
selling around 19. proaching a
supra, that the rate of return there
return
With the single exception of 1949, high
without
the
established was to be considered
the stock has sold above its pres¬
My own

YORK

NEW

Investment

companies

group,

with huge

Members

REctor

for

to

stock

begins contributing to company
earning power instead of draining

companies, public
utilities, chain stores in the inher¬

ent

Tel.

ket acceptance.

pru¬

.

modified

so

net

the fight for mar¬

won

Birmingham, Ala.

Mobile, Ala.
wires

Direct

Court in

Judicial

Supreme

.

qualities.

strong indications

are

Amazo has

of food

thinks

BROADWAY,

combination of

Exchange

NY 1-1557

New Orleans, La. -

part reads as follows: "The result
is that
part of the order is to
be

Curb

Commonwealth of Massachu¬

setts

col¬

it away, the long-run favorable
Philip L. Carret
companies
possibilities for dividend policy
earning power seems
and
price
appreciation
would
reasonably assured by reason of
seem obvious.
inherent stability or special cir¬
cumstances.
One
immediately

Since 1917

120

financial

There

his

whose future

Rights & Scrip

Curb

and expan¬

and

in a tight-fisted
policy. This is a fairly

a

stock

look

will

Sander

York

St., New York 4, N. Y.

HAnover 2-0700

opinion of

The conclusion of the

the

believe

leagues

ac¬

a

courageous

President

York Stock Exchange

New

25 Broad

increases was confiscatory.

a

sionist-minded. At the same time,

investor

dent

Specialists in

obviously

business

and high

York

Members New

which

Court,

among

has

n A

nAll^«

Crfini-r*

wTEINER. HOUSE & wO
Members

others.
vital stake
of the company, is

School,

success

unusual

of

period

the

in

its

to

return

York 5

tive

New

Mur-

Investment Counsel, Boston,
Mass. (Page 2)

William Ziegler and asso¬
Directors include so emi¬

The management

and

it

held by

Business

dividend

the

1920

Stock

certain

stock de¬

a

behind

Teletype NY 1-583

York

graph Company—John P.
ray,

a

the

pends on the
earning power

Corporation

New

and

the price

of

BArclay 7-5660

high

Quoted

Bought—Sold

England Telephone and Tele¬

in February, 1951,
degree ot caution appears desir¬
handed down a decision holding
ciates.
able
in mak¬
the Department
nent a business leader as Donald that an order of
ing selections.
K. David, Dean of The Harvard of Public Utilities restricting rate
In
the
long

Utility 5Vi/52

120 Broadway, New

the

2)

(Page
New

share, amply covering
regular dividend rate
such extras as were paid in

$2.62
$1.00

was

Louisiana Securities

Granbery,

Partner,

Garret,

period. Book value of the 300,000 shares of common stock in¬ business. When denied compensa¬
American Maize Products
creased from $20.71 to $35.32 a tory rate increases in Massachu¬
With the stock
market at or
share over the same period.
setts, the company appealed to the
close to its 1929 high, depending
Supreme Judicial
Control of American
Maize is Massachusetts

4.75% Pfd.

Central Public Utility, Com.

City

Members, New York Stock
and Curb Exchanges

Public Serv. of New Hampshire

Associate Member

Alabama &

Marache & Co., New York City.

10 years

1946. Average for the

in

L.

discussed.)

in 1948 and $4.72

low

share

Marache & Co.,

New York

Northern Indiana Pub. Service

Established,

and

Selections

Maize Products—Philip

American

particular security.

offer to sell the securities

CARRET

L.

PHILIP

Partner, Granbery,

Assoc., Conv.

as an

a

intended to be, nor

(The articles contained in this forum are not

Central Public

Week's

Participants

Their

week, a different group of experts
and advisory field from all sections of the country

in the investment

Iowa Southern Utilities

General Telephone,

Forum

,

.

A continuous forum in which, each

Pacific Power & Light

Eastern Utilities

This

Secuiity I Like Best

.

Established 1913

46 Front Street
CHICAGO

•

.

New York 4,
SAN

N.Y.

FRANCISCO

Volume 176

Number 5144

I

.

.

.

I

The Commercial and Financial Chronicle

(651)

SEC's "Regulation A" Revision
Would Penalize Small Business

INDEX

—O.

Security Flotations
or

gate decision of Congress to facilitate access

own

voliiion.

Booms and

The

Cobleigh

and

Busts—Roger W. Babson

high time

exchanged

you

that junk for cash!

4
5

.__

Why Big Government?—Adlai E. Stevenson

6

Obsolete
99

Social Significance as Factor in Appraising Securities

Interested parties given until Sept. 15 to make

views known to Commission. Strenuous

HIGH NOON

Perturbed World--Herbert M. Bratter___Cover

prospectus

a

requirement under guise of an offering circular and empower
Commission to terminate exemption granted by Congress at its

;

a

Cover

;

The Penn Is on the Ball—Ira U.

of small enter¬

Measure would create

AMD COMPANY

offer¬

less constitutes, in effect, attempt to abro¬

prises to capital market.

Burr ell

Gold Markets in

Commission's proposal to amend present requirements on

Page

Retained Earnings as Market Force

vs.

K.

llCHTfllSTEIfl

-

Articles and News
Dividends

ings of $300,000

3

'

•

Securities

Telephone: WHitehall

—Richard L. Burling

Dept.

WALL STREET, NEW YORK
4-6551

6

opposition urged.
Joint Ownership of Stocks—rjts Advantages and Disadvantages

Securities

and

Exchange Commission has just
issued its Release No. 3450, inviting comment and sug¬
gestions on or before Sept. 15, 1952 to a proposed revision
of Regulation A.

—Leroy A. Shattuck, Jr

1_:

9

,

Regulation A deals with the exemption from registra¬
$300,000.

Our Economy Is Demonstrating Its Tremendous Strength

—Harry A. Bullis—

Bought

11

Needed: A New Standard Stock Market Average—John Dalton

14

Three Types of Market Advisers—Homer Fahrner.

15

Sold

•

•

Quoted

*

*

"V'

tion of certain issues which do not exceed

Donald C.

Cinerama Inc.

Cook, Chairman of the SEC, in the Release

says:

"The proposed new

exemption differs in two impor¬
tant respects from the one
currently in effect. The new
regulation requires the use of an offering circular con¬
taining a minimum of basic information with respect to
,

the

issuer

and

its

securities.

regulation,

present

with the result that

sentations unless he
some

other

source.

In many cases under the
selling literature at all is used,
the investor must rely on oral repre¬
happens to possess information from

no

In these

cases

in which sales literature

is

employed, the information provided
been inadequate to assist the investor.

frequently

has

Revision Would Penalize Small Business
Security Flotations (Editorial)

Lock Thread

SEC's "Regulation A"

3

Wage Rises and International Tension Attributed to Unstable

Reeves Soundcraft

Reveals Decline in Department Store Profits

5

World Bank Reports Gain in Net Income

7

TV Inventories at Lowest Point in 18 Months_____

11

Cites High Native Labor Costs

11

Defense Jobs...

on

J.F. Reilly & Co.

Inflation, Personal Spending and Present Market Situation
Discussed by Gerald M. Loeb.

Incorporated

12
61

"The other

important difference in the proposed new
exemption is the provision for the suspension or termina¬
tion of the exemption where it appears that the conditions
of the exemption are not satisfied or where fraud or

Transcontinental Oil

Japan and West Germany Join Monetary Fund and

BO 9-5133

Teletype NY 1-3370

22

Bank

World

Broadway, New York 6

Direct Wires
'

1

"

-

Philadelphia and Los Angeles

Regular Features

deceit is
nection
Mr.

being employed, or would be employed, in con¬
with the offering and sale of the securities."
Cook's

explanation sounds simple enough until

See It

As We

(Editorial)--

Cover

Bank and Insurance Stocks

begins to consider the Release proper which runs 14
pages.
At this point, the aid of a Philadelphia lawyer

Business

would not be amiss.

Canadian

16

^

one

The

1

exemption

,

from

registration

of

small

issues

covered

by Regulation A was intended as an aid to small
point up the contrast between these
small issues and those requiring full registration.

32

Man's Bookshelf

Associated Development
Securities

14

__

Coming Events in Investment Field

and

Research Corp.

x

31

Dealer-Broker Investment Recommendations

Cinerama, Inc.

8

business and served to

Large corporations with a long history behind them
of paying dividends, whose securities are regarded as blue
chips, as a rule have a ready market for their new issues
and often can arrange private placement for them.
A large part of such issues are sometimes taken up
by existing stockholder subscription.
In relation to the entire issue, the cost of such flota¬

tion, private placement or existing stockholder subscrip¬
tion is ordinarily a very small percentage.
.
The businessman, with a past record ,of profitable

15

Einzig—"Britain and EPU"
From Washington Ahead of the News—Carlisle Bargeron

Reeves Soundcraft

7

Indications of Current Business Activity
Mutual Funds

Transcontinental Oil

23
20

•

8

NSTA Notes
News About

Observations—A.

Bankers

and

Banks

Wilfred

21

—

*

May

Singer, Bean
& mackie, Inc.
HA 2-0270

Our

—__1_1

Reporter's Report

f

Our Reporter on Governments

Exchange PL, N. Y. 5

17

Prospective Security Offerings.^

40

Teletype NY 1-1825 & NY 1-1826

28

performance, who requires money, can go to his bank
and obtain

a

loan at reasonable cost.

*

Regulation A offerings are nearly always speculative
and required to be labelled as such. Of those underwriters
handling these exempt issues, only a small number have
the facilities, the know-how, the sales-force, including

14

Public Utility Securities

Railroad Securities

Securities

1

.____

Continued

on

page

22

Salesman's Corner___
1

participating underwriters, to "lay away" such an issue
promptly. As used in the industry, the term "lay away"
means to sell and dispose of.
Although competition in the sale of these issues is
extremely keen, there is nevertheless a fixed selective
tendency with regard to the type of business chosen for
these underwriting purposes. A small business requiring
cash, as a rule, will have more difficulty in disposing of

10

———

L. A. DARLING

■
.

Securities Now in Registration
The Security I Like

-

25

COMPANY

2

Best

5

The State of Trade and Industry

Has just announced
—

Tomorrow's Markets

(Walter Whyte Says)

8

.

complete

prefabricated

7

Washington and You
^Column not available this week.

22

Twice

Published

have

specialized in

PREFERRED STOCKS

Members New York Stock Exchange

B.

Park

DANA

Reentered

COMPANY, Publishers!

New York

Place,

N. Y.

7,

HERBERT p. SEIBERT, Editor &
DANA

SEIBERT,

President

Thursday, August 21, 1952

Albany

•

Boston,

•

Chicago

Private Wire to

•

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•

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as

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CHRONICLE

FINANCIAL

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Weekly

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in

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and

business

volume

fixtures,

fNo column this week.

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development

store

This

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present

Mr. May is in Mexico.

sion

For many years we

new

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4

The Commercial and Financial Chronicle

(652)

imize

The Penn Is
By IRA U.

the Ball

on

cars
car

COBLEIGII

The

Penn

a

is

quite

an

r

«,

,

has paid some
dividend on

stock

common

in

each

every

and

year

to

date.

104

years,

five

.

.

Biggest of

.

^

to

nee

miilion^U S. Steel

plant a-building in Mornsvuie,
Pa., just across the Delaware from

Ira

tury

half

on

a

new

horizon

of success

and

was

gross

the

first

of

annually

dollars, racking

our

up a
~

carriers

to

billion
figure, in this

over

one

'

of $1,044,387,274 in
If51; and, since incorporation, it
Las paid dividends to stockholders
of almost $1.4 billion.
department,

Well, what makes The Penn
Well,
tick? And, more importantly, what

f

cnrnP

i qc#

beiow 1939

Elms until
eight years

gages expire in 1960

offjndnot a^ghnuUor whig
a system, and so prime a credit,
as

The Penn.

its

or

not

our

bad

by

money

the

gold that is left in it
supports it; how much

there

is

in

back

of

it

and

it

always gets back to.

If it has

small gold backing, it has
only a small value.

too
H.

Henry

a

"Bad money brings on trade
restrictions
restrictions on ex-

Heimann

—

fVik? cas^PenVsy nas over quuu million
h^over^OO muuon
casn. i-ennsy

™ce

the

have

not

5® exports and imports.

present

"for'more and" more wages? ?^.fe®1Angs ensue. Everything is
done but an attack on the root

xrpimnnn

"When wnrltm

representing invest- Mr. Heimann says, frame of mind ^
wnenwomers of the
advances
aeainst the get in this uneasy

ments ana advances, against tne

confidence in their eov-

problem, By spending more
u
spaaing ]
has and trying to pay
by issuing more m0
inflation

than

Long Island RR. and it should re- t«ey lose wniiaence m tneir gov
some slice of this in the e™ment. ^iiny
of thp poS is continued.
Each dictator knows
next 24 months. Scrap iron sale is ™ <*o to keep ahead of the cost thig and tafeeg advantage of <t
•
worth above $9 million a year, of living. What we need to do is
international

cover

Pennsylvania Company, a whollyowned investment subsidiary, paid

£ Pul1 together. We are all in
An international sound money
ji sam® b°at> rich and poor. We program will do more to stop

$9,346,875 dividend to Pennsy in

a

are

upgrade

t0 Pu__. together to get Stalin's ideology from

,

king-size interest in other

a

roads whose fortunes

.

,.

„

.

.

,

,

,

spreading

_

_A

.

f a premise for his opinion dence, courage and trade. It gives
as J;0
nee.x: *?r a
,Vrn
y°u something to defend. It gives
stable money, the head of the narespect for honesty
It is a

ing—-like 2,410,000 shares of common and 527 000 of preferred of
Norfolk & We stern, 99% of tionwide
organization of credit
«
Wabash common, and
(directly executives points out that the virtue builder. Unsound money is
time-consuming road work by bus and indirectly) 645,000 shares of cause of most wars *? modern the cesspool in which economic
to and from airports cuts away Lefagh Valley, one of the best times may be traced to inconvert- disease and human conflict is
air travel time advantage, m mile- recent railroad ground gainers on ible,
unredeemable, and depre- spawned
sound
monev
is
the
ages 1below 300. The Penn pays off the N
Y. Stock Exchange. All ciated money.
He indicates that
,
frA<wjnm»:.
»
on the Congressional.
these items are big plus values for R is idle to think of universal
gpo e for freedom s banner..
PA common, virtually unreflected peace
without reestablishing
The Modernization Program
Joins S. R. Livingstone
in today's quotation of 19%.
stable, convertible money as the
Something should surely be said
cornerstone of the world economy.
(Special to The Financial Chronicle)
about the $1 billion The Penn has
Good Earnings Outlook
"Every
despot
and
ruthless
DETROIT, Mich. — Wayne T.
spent m the wi five years ua
in uie- past
on
c
ix nas nox oeen my mxenxion xo dictator
has
realized
that
dis- r>
u
u

y

®sl^ « ™ a

J

uI™*

u

Rne, yard, and equipment better- iasso

you with a maze of statistics, nor to befog your judgment

iiauidate

of this quite distinguished railway

than

equity with a welter of figures,
some numbers, however, did have
trickle in, to make graphic the
p0sition of Penn today.
A vast
transportation enterprise, with a
century of corporate history, has
been buiidingj streamlining, improving and modernizing to the

trie -dieseL or diesel-electnc.

show in

a

manner

visible

the

to

T"e death of the choo choo on
qqq odd stockholders Thev've
back to
The Penn has been a more lin- seen PA wawp-r between 1734 and
Irciui
vw«.-a
waver
other 90 miles of railroad on North Spring one than on most of the bQy4
^be pas^ ^5 years* but
America with so little scenery or big roads; and while the switchica
^bey>ve never seen ^be rpad jn
greenery. Industry begets freight, over from steam to diesel is in such
splendid physical condition
and The Penn is a freight vulture, process, and until it's complete,
t d
pA
eommon
earned
What kind of freight? Well, big- The Penn, has the: doub e cost of
$7 n anJpaid $2 50 in "942-ten
gest is bituminous coal, which maintaining service facilities for
Perhanc that'<? ton rofactory after another—
back. Try and find any
Pack.
ana una

kicked in 32% of tonnage and 18%
of freight revenue in 1951. Mine

both types. This dual maintenance
requirement has been a drag on

y

foko

t

«54 share<? of

earnings but is becoming
nage; with manufactures and mis- less so witht each passing
day_ To- to tw
cellaneous accounting for the tal elimination of steam could be
should
next 33%.

honest

est

ro

tho 13 167

mo

.

h't

Another

army

to

more

nation

a

Heimann says. the Detroit Stock Exchange.
is a funda¬
disunity, distrust
Modern commerce,

money

mental cause of
and

despair.

modern

life

civilization, and modern

depends

upon

a

of

®

a

caS tacreSefin tte^ast

vear

OF

STOCK and BOND HOUSES

exchange."
Giving

as

a

why

reason

our

-

.

money has proven so unstable and

has been lowered in purchasing
?0wer> Mr- Heimann says that it

"Security Dealers of North America1"
A

1,400

page

book

containing

7^0U

^ "because the government has lutings covering ail United states
Listings

circulated more dollars due to the CanadUn cities. mstmgs are
circuiatea more aoiiars aue 10 tne Canadian cmes.
Iac^ ^bat it could not pay its bills geographically and alphabetically,
any other way, or had not the are comprehensively detailed:
Firm name under which business is
coura8® °r the character to do
It has spent more than it

so.

received
bonds

out

so

and

further into debt,

go

this in turn
more

causes

it to put

money."

"If you

bill and

has

ducted

and

are

and

arranged
arrS
andf

con~

date established

it has to put out more

turn it

Street

Address,

District
General

could take your dollar

in and get

a

changes in value very little; you
could deal with it anywhere in

mm.

over

DIRECTORY

stabilized,

reliable and trustworthy medium

factor tending to min-

of

Boucher has become connected

with S. R. Livingstone & Co.,
capabie 0f Penobscot Building, members of

of

Mr.

"Unreliable

and

pr^perty outlined'above,
£gi^ suggest currenf

enemy

an

destruction,"

-

'n

do

the strength

dollar ™~
per

?

share.

due

^for

will

monev

doilar's worth of gold, then the
earnings above the $2.03 shown In government could not cheat you.
1951> even with ^ back spln why? Because gold, if it is pure,

t
provement

A New Era for Penn

target

™the ^v!ry tangible^betterments

57% of ton- Penn

the world. When you and enough
management like you turned your money into
team Of the Penn right now, com- gold the government would have
mands the respect of the entire to stop
spending more than it
industry.
had, or if it did not it would soon
While a whole cult of railroad run out of gold and then its in-

of

Post

Office

Character

of

Business

&

Class

Securities Handled

Names
of

Including

Numbers

of

Partners

Officers.

or

Name*

Department Heads

Stock

Exchange

berships
Pbone

and

(including

Association

Mem¬

N.A.S.D.)

Numbers—Private

Phone

Connec-

have importantly offset rising la-

ibm

bor

STATE AND MUNICIPAL BONDS
CORPORATE BONDS
LOCAL STOCKS

costs,

analysts
about

and

the

have

gone

overboard

flationary

bubble

would

Robinson-Humphrey Company,Inc.

RHODES-HAVERTY BLDG.

ATLANTA 1, GEORGIA

WALNUT 0316

LONG DISTANCE 421

tlons—wire Systems—Teletype NumbersCorrespondents —Clearance Arrangements,
An alphabetical rosteb of an firm*
showing city ln whlch
are located ls
another valuable feature,

burst.

the

"reorganization" rails Don't let the people in govern- Bound in durable limp fabrikoid—$12
Seaboard, Rock Island and ment tell you they have not enough
Rio Grande (and with good rea- gold to have a free gold standard,
ENTER YOUR ORDER TODAY
son) perhaps too neglected mar- If
they were to balance their
ketwise, has been this honored budget they would have more
HERBERT 0. SEIBERT & CO., INC.
Keystone of the rails, whose goal gold than they would ever heed,
line has never been crossed by a because then people would not
25 Park Place
New York 7, N. Y.
bankruptcy — The Pennsylvania demand, It as' theinim^ney ' would
Railroad Company.
The Penn is be sound.
-Aoo N
'
REctor 2-9570
like




of

of

that

only

in what

would

we

one

The

having
money valued on a
People always gauge

by the trend in the gold backing
and fiscal policies.
That is what

were

vary

value

gold

modern

much

basis.

amount

causes

"If

unstable

the

lg

stable and did

passenger equipment. When pre&- tune 0f a billion in five years. It
ride The Penn from New arR ^d^rsare delivered, 82%of js mereiy my contention that all
York to Philly. What will you see? freight, 96% of passenger and 92% m$ modernizing
and impr0ved
Rolling fields, interspersed with of switching service will be elec- efficiency should shortly begin to

of these figures are

"No government, no matter how
it tries, can prevent

of the

basic

money

you

Some

oi;e

als0

look out the window the next time

were

b

wars.

horizon. The Broad Street Station
was abandoned and that saves
thiree-qcarters

?72 million m 1901 carrying roiKS.

^ause of heavy traffic

products totally

^

w
wage g

of

Let s look around and see what
else looks good on the revenue

Two techniques are being applied in claims
whittlp
Hnwn
thh;
recurrin2
ment^and
tailment and abandonment, and
second "revving
up equipment
and service on the paying passenger hauls. For instance, the Congressional, crack New York-Washington Express, and the Senator,

is not
Qf

money

Penn is also the largest railway It also releases downto
Phi apassenger carrier but is a little delphia real estate that can be

ticking success- ment. The Penn, like most roads,
fully, year after year, decade after
.pressm-e
decade? First of all, it would be during
the war, simply lacked
territory. The Penn, whether by manpower, time or materials to
luck or design, sits astride the sustain the desired level of propmost important industrial belt on
maintenance and renewals.
this continent, serving 13 states Thus,
since 1945, $658 million
containing roughly V2 of the U. S. were spent on new diesels, 31,860
population. Just to get a rough aewfreight cars, major repairs to
idea
of
this industrial
density, 36,000 old ones, plus a lot of new

most

when you have money that
changes drastically in value from
day to day?

unstable

nhliVatinnc

increasing defo" hfgher

this recurring
passenger debit. First, service cur-

sell to

can

that

Men, contends

25% while equip.
standard finan-

decreased b

gold

down

wars

other and buy from each
Penn has done a
the Executive Vice-President of other things essential to peace,
gince 1939 funded debt has been the National^Association of Credit and how can you effectively do

hard

whittle

National

of

of most modern

be traced to inconvertible and depreciated money. Says
international sound money would stop Stalin's
ideology.

major causes
of
constantly

to

Money

may

1>°" >" the period, total interest
.

makes it keep on

occasional little towns? Oh no! Al-

cause

Writing in his "Monthly Busi- strong unless nations

spare. Big as are its competi- petition from
a i r 11 n e s, since
tors, The Penn carries 10% of all they re swift and weather proof
the railroad freight in America, and deliver you to the centers of
and owns (as of Dec. 31, 1951) cities. Against that, a lot of dull,

181,654 freight cars, 3,462 locomotives and 6,238 passenger cars. It

Vice-President

Penntjnage Americarandnosore from South America, and pos

single line, would circle the earth nnea cars. « .seems max on snort
at the equator—with 1,000 miles runs, top trains suffer less comto

Executive

^

trains will come East to the steel
plants and the hopper cars instead
sions,
The of rattling
back to the West
Penn
has empty, may soon be heading back
u. Cobieigb
taken in stride, with pay-dirt—ore for the PittsDuring a cen- burgh-Wheeling-Youngstown area
which has seen well over one- mills. All this looks very good for
of American railway mileage future earnings.

ana
taining and aeveiopmg its propdeveloping us
erty, m the very best tradition of
American private enterprise.
And after a century of battling
our
economic ebb and flow, The
Penn is by no means a current
candidate for adrenalin; on the
contrary, it may now be verging

Hermann,

iubstakinrnew
«atv^icle for grabstaking new

big

a

a
half dozen
major depres-

gone along serenely, paying its
creditors and stockholders, main-

H.

Association of Credit Men, holds

plus for future

Trenton,

jected new $9 million ore handling
and facility in Philly. Long haul coal

in corporate reoganization and financial surgsry,
The Penn has

Thursday, August 21, 1952

ness Review," Henry H. Heimann, each

Well,
good job of that.

rati0n Uve within its income.

the

Mexican,
..

Henry

normal

Debt Reduction

be'^liwed^from"^^Pen^spro- ^^g^'ond mTturity
si

a

^,g axwav* njce t0 see a corpow
aiways

,

a^lMhe^b^aU odds,

is the new $400

By the
order"

appear.

important economic phenome-

Starting in non, which surely has come to
1848, and continuing without in- your attention r- the new steel
terruption, it mills on the Atlantic Seaboard.

in corporate durability.

reduced

.

Attributed to Unstable

repair, heavily engaged in last

be

.

Wage Rises and International Tension

of course, capitalized, but

6%, and current abnormal debits
for this car grooming should dis-

railroad, for a reshuffling, however, due to

a

Among other things it assays high

are,

should

paceful current account of one of the most
impressive rail transport organizations on this planet.

Containing

car

year, is an operating cost.
end of 1952, cars "in bad

*'Expanding Your Income"

Author of

net, has been the
repair program. New

Pennsy

heavy

.

■

very
never

much
been

on
on

the

ball—it

the block!

has

"We
How

,

talk

can

ahoijii^peace

we

build

and

now.
grow

Volume 176

Number 5144

.

The Commercial and Financial Chronicle

..

(653)

e

Reveals Decline in

Dept. Store Profits

Electric Output

Carloadings
Retail

State of Trade

In

Commodity Price Index

suffered

upward.

normal

to

expected to curtail output in

was

weeks

while

pipelines

supply

of

Goods

again.

once

day is

cle

3.0%

in second quarter
results, the department declared. Although the strike began June
2, steel-using industries—such as machinery and automobile man¬
ufacturers—were generally able to continue operating tnrough

the

same

to

endure

and

.

,

urgent.

OPS

to

issue its

The

riding Regulation, retroactive to the date

; crease,

July 26, 1952. And its administering

of

a

the

.

,

•

General Over-

The

government's

"solid

front"

has

been

.

price increases authorized by OPS this week advanced
"The Iron Age" finished steel base price composite
by approxi¬
mately $5 a net ton to a figure of 4.376c per lb. This is an advance
of 5.9%
but it does not indicate that actual steel

were

advanced any more than the 4.7% which the
government reported.
In some cases "extra" charges for
and
not

from

last

physical, chemical, quantity
other special characteristics desired
by the customer were
included in the increase, concludes this trade
weekly.

Automotive

output last week dropped about 35% from the
previous week's total, mainly due to the closing by Ford
again
and to the fact that
many other car manufacturers were not yet
back in production.

stability
revealed

the

type

in

the

salescheck,
new
high of

reaching a
only increased

$4.76,

in

store

Governor Stevenson
I

now

1.0%

see

after

Nov.

4.

intentionally
The

No

ment

store

operation in the year
the build-up of inven¬

was

39%

reported

10 and 20%.

1

President

The balance of

stores

disclosed

effect

Congress

stock

on

creased

In the

to

3.4

con¬

above

of

case

will

those of

Total
for

in

specialty
their

both

stores

drop of 1.3% from July last
of 23.5%

the

over

June

year

with $45,557,765, but

an

was

a

increase

39.7%

respectively.

nection

,

Capacity the Current Week

taper off to $58 billion. Gov-




may

be of short duration,

mulative

says

Continued

on

"Steel."

page

24

of

from

sents

costs

the
the

a

ma r

store

1950

this

1953-54

first

we

have all recently wit-

the buying public

more

recession

than money.
or

wants

During

depression, the

op-

—

Frank L. Eden-

field is engaging in the securities
business under the firm name of

Frank

L.

Edenfield

&

Co.

de¬
the

more

decline in the
k

o n

than

Avenue.

Mr. Edenfield

viously with

was

period.

are

pleased to

Associates and Curlette & Co.

announce

Direct Private Wire to

the installation of

a

F. S. Yantis

&

Co.

Incorporated

Members Midwest Stock Exchange

CHICAGO, ILLINOIS

percentages
The de¬

percentage point

level, and
spread

repre¬

between

prices during the

J. F. Reilly

& Co.

Incorporated

NEW

pre-

George R. Holland

cu¬

markon figure is
a

We

from

offices at 8340 Northeast Second

con¬

indicates

that

lowest

and retail

1948-51

as

nessed,

a

bust for

the problem of inflation
deflation. During a boom,

versus

goods

or

and

the

the previous year.

below

A look beyond the current scramble for
steel gives a hint the

strike-inspired steel drought

experienced

MIAMI, Fla.

Boom

markon

95% of the departments surveyed

seven-tenths of

"

In

analysis

an

partment

Steel Production Extends Its
Ingot Rate to 97.2% of

de¬

1950.

1950 averages to 38.6%

from

figure of $36,406,878.

church declines and attendance at

9% greater

dropped

fact

This

a
period,
They again

Voluntary credit restrictions begin
to set in. This puts a damper on

Sam.

that such

department and

noteworthy

total, amounted to $44,945,049.

of

worry.

1950.

$386,268,442.

above

in

store cumulative

1951

in¬

store

which

3.9

were

results

the

kind

may

de¬

specialty stores in¬

ventories in 1951

than

type

depressing

a

turns
from

partmental

in

this

inven¬ ernment

that

notes

basement

January 1951, Dun & Bradstreet, Inc., states. It compared
with $415,571,892 in July
1951, or a rise of 5.6%, and was 13.6%

cluded

j

up your liquid savings and work
curtailment of spending harder at
your job.
slow down fast by late 1953
those of the preceding year. The and early 1954. But this
depends
*7
1
rj
r
11 a
annual study of NRDGA's Con¬ upon Uncle Joe and not
Uncle
Frank Edenfield Opens

tributing

tories between 20 and 55%

stresses

in¬

During

people begin to

will

government

departments,
and
heavy stocks had

are

j

and

regular

during July, which

XT

inventory in¬ spending will reach a high of $66 the races
increases, look out for
10%, and billion.
By late 1953, assuming trouble.
Hence,
proceed. with
increases between present plans and
conditions, it caution, clean up your debts, build

between

creases

in

Plans filed in the New York
City

.

good men. want money more than they want
for fearing goods. Mortgage rates and busiimmediately ness loan rates become higher,

less heavily con¬ becomes

above the June volume of

,.

„

Sane Religion Needed

encourage

tories 29% revealed

than

previous month

„

Will Props Drop?

were

July building permit values for 215 cities were valued at
$438,866,125 representing the largest aggregate for any

taxes.

tories in the first half of the
year
in relation to the
average 1950 in¬

centrated

cars

left

wages and

j am especially troubled by the
By 1953 we shall have about lack of
religious interest today,
completed our tooling up and our This lack
always precedes a fiplant expansion to handle govern- nancial crash. The desire to
get
ventory carried. Nevertheless 12% ment contracts.
We are already
something for nothing—so prevaof the reporting stores revealed
beginning to see defense plans lent today—is a bad sign, whether
lower
average
inventories
than curtailed.
Further cuts are anby investors, employers or wagethose held during 1950.
Of the ticipated between now
and- the workers.
When
attendance
at
stores
indicating higher inven¬ end of the year when

past

partments

Most Chevrolet and Fisher
Body manufacturing plants ac^s
the country previously called
employees back and have been fill¬

paying their bills,

good business. People no longer
specialty
stores
tinue to hold up gross business, have so much money or credit
$9.46, 15 cents more
We, however, could have a period with which to buy goods. Sales
than a year ago.
of "profitless
prosperity."
drop; production is cut back; and
A significant feature of
depart¬
unemployment is on the way.
for

Willys-Overland Motors, Inc., was scheduled to resume full
production on all its lines on Monday of this week. Its main Toledo
plant had been limited to partial operations, largely
military and
defense orders, as a result of the recent steel
strike.
Corp.'s Chevrolet and Fisher Body assembly
plants in Van Nuys, Calif., forced to suspend operations because
of steel strike materials
shortage, will resume full operations on
Aug. 25. This was announced by Frank J.
Fessenden, Chevrolet
plant manager, and D. R. Larkin, Fisher Body plant
manager.

after

cor-

to

in

since

country

earnings—that is, how much
porations and families have

deflation,
military program should con-

ventories

ing the supply lines for resumption of final assembles of both
and trucks, it is understood.

Already, many plants across
have cut back to a

now.

are

reason

change

over

The average sale

trollers'

General Motors

.

no

drastic

any

The recent steel strike, "Ward's Automotive
Reports" reveals,
has cost the auto industry an estimated
544,000 units of production.

'

There will prob-

year.

rather than politics. I believe that
both
General
Eisenhower
and

average

reported

The

prices

is

the

amounted

irreparably

breached.

that

the 1950 figures.

recalled, continues this trade magazine, that higher steel
prices in 1946 were deemed largely instrumental for lending the
coup de grace to Federal price controls then. Today, the situation is
similar—and there is the impetus of price boosts in aluminum and
copper.

,

department

merchandise
fact

It is

:

of

while

steel

price inmay be industry's job.

where

40-hour week.

relative

prices

pass-through order in haste is

It may come next week in the form of

shorter

There

soft

ably be a moderate improvement the
past in
the volume of business by the

a

whimper since the July 1951 cutoff date of the Capehart Amend¬
ment. Now there is in addition to higher labor and
transportation
costs new increases in steel,
copper, and aluminum. Many firms
are at the breaking
point where they must have pricing relief.
on

consumer

two and a half years.
However,
a
major contributing factor
the current level of business is
reducing demand for these
still higher than in much of the
categories of merchandise.
Spe¬
1940's.
cialty stores showed a 2.0% in¬
What happens to business next
crease in total dollar sales for the
year depends largely on earnings
year 1951.

cussed: materials 100%, transportation 75 to
100%, and labor o0%.

Pressure

of

<oger W. Babson

in

gled over what percentage of manufacturers' higher costs may be
passed through ceilings. The following percentages are being dis¬

by manufacturers without

as

textiles, shoes,

was

was

borne

because

Some workers are
population growth.
In
third
quarter.
The Babsonchart being laid off.
But no definite
contrast, decreased volume in ma¬
Index now stands at 125% of the
forecast
jor appliances, radios, television
regarding
1953
should
1939
and
1947
average.
This is be made at present. It looks now
and
domestics
occurred.
The
close to the low point for the
past as of we must await 1952 net
slump in residential construction

almost helplessly watching a
concept of price controls take shape. Industry was in a strong
position to take over their administration. OPS meanwhile wran¬

have been

such

ness,

But

of the dollar fell likewise. People
wanted to buy goods with their
high wages; goods were scarce,
Prices shot up; we had creeping
inflation and an artificial boom,

cy-

you

Some

phases of busi-

decade's

new

Higher costs

in 1950.

supply of
would have had no in-

hours and
unnecessary
strikes,
production fell off; then the value

the

than

think!

against

flection of the increased sales po¬
tential
resulting from the

breath, the

clamored to OPS for price relief, this trade

it continues,

sales

flation.

be

in

kept up with, the

money, we

is a point in this cycle
people, banks, insurance
goods, will companies,
ren,
and other
financial
improve dur- houses begin to get worried about
which showed gains of up to 10%
ing the next few months.
Conover the past year.
earnings.
Experience tells them
According to
sumer
durables, such as automo- that boom times can't last forever,
the
Controllers'
Congress study,
biles and washers, will remain off
the gains in these lines are a re¬
We may be approaching this point

weekly notes.

Washington,

of

infants, child¬
teen-age and sportswear lines,

Wage Stabilization
Board empowered its regional offices to
grant the 21.5c steel wage
settlement package to companies tied to the steel
industry. Fab¬
ricators of metal products found these
inflationary pressures too
cruel

2.0%

increases evident in

In the steel industry this week "The Iron
Age," national
metalworking weekly, reports the headsman's axe may fall on the
neck of the Administration's
price control system. Office of Price
Stabilization's steel product price increase order became official
in

gain after taxes

Total sales in department stores
increased 1.0%, with the greatest

the month.

Almost

to

net

later

had

us

Even

may

economic

quarter rise "represented

week.

it

similar

with

Simple Economics Explained

some

so,

income, compared to 3.7 cents

equal

this

as

believe.

of

larger physical volume of output."

of the booms of the

cause

has been inflation,

If the supply of goods available

so

would have

States Department of Commerce reported that most of the second
a

bad

not

in the previous year. In the case
of specialty stores the pattern is

effects did not figure largely

past

Business to-

the typical department store real¬
2.4 cents out of every dollar

The United

portant

fncts of life

ized

$342,000,000,000 in the

a

economic

$4 billion, states that after
provision for Federal income taxes

quarter of this year and compares with an annual rate of
$339,500,000,000 in the first quarter, $325,600,000,000 in the second

strike

with

swer

few

report, compiled from data

ing

second

Steel

from

by 352 stores with ag¬
gregate annual sales approximat¬

The market value of the nation's output—known as the gross
national product—rose to an annual rate of

and $329,000,000,000 for all 1951.

stores

decline

submitted

before.

year

specialty

ness

Association.

The

Aggregate output continued to be moderately below the level
of a year ago and about 10% short of the all-time peak attained
during World War II. With respect to unemployment, claims
for such benefits continued to be
noticeably higher than the year

quarter of last

and

no immediate change in busi¬
conditions, v/arns, however, should the props drop, there
may be a downward trend which could
develop into the de¬
pression phase of the businers cycle.
Says "we may be
approaching this point now," but warns no definite forecast
regarding 1953 should be made at this time.

1951, the net
the nation's

"Departmental Merchandising and
Operating Results of Department
A lot of
people have recently posite is true. Booms cause deand' Specialty Stores," just pub¬ asked me
whether we are headed
pression; depression brings about
lished by the Controllers' Con¬ for a boom or
a
bust next year, further
deflation.
What,
then,
gress of the National Retail Dry I am going to
try to give the an- causes the boom? The most im-

Recovering from the recent steel strike, total industrial pro¬
for the
nation as a
whole last
week
edged slowly
scant supply of steel
lines for the next few

by

their 1950 profit showing. This is
revealed in the 1952 edition of the

duction

The

in

serious

a

Mr. Babson, though
foreseeing

increased dollar

an

sales

achieved

department

Business Failures

J

returned

of

profits

x.

many

spite of

volume

Index

Auto Production

Industry

By ROGER W. BABSON

Trade

Food Price

and

Booms and Busts

Steel Production

The

5

YORK, N. Y.

The Commercial and Financial
6

Chronicle

.

.

.

Thursday, August

21, 1952

(654)

Attacks "Doctrine of

Why Big Government?
Presidential aspirant
eral Government

perform

on

Democratic Party

blames concentration of power in Fed¬
failure of State and local governments to

functions demanded by people. Says now¬

necessary

the sake of change.

Administration
merely "for sake of change." Attacks ex-President Hoover's
"pessimism" and denies he is a "captive candidate."
talk

and

about

increasing

the

incessantly

tralization of power over our
in

Washington.

drift
the

that

But

will go on

But because other

and

state
view

unless

on

those

neces¬

will
of

take

citizens of the

more

a

them

to give

efforts

our

charitable

right change here in Spring-

the

sary functions
of government

field, and because you have a new

don't

character and experience to carry

which
have

be

to

on

performed i n
Washing ton

performed
and
properly
performed, at

commenced,

am

the local level.

*

The

people

will
the

Adlai

demand

long. Let me just add that I
have often wondered how best to

my

Stevenson

--

ident of the United States.

they don't get them at home

And
dollar you send to Washto pay for them will shrink

they will turpi to Uncle Sam.
every

„

„

ington

Because

enemies

our

business

because

are

labor

and

agriculture are big, because everything is big and organized nowadays,
has

too.
But it
unencumbered in the

be

build
more
strongly against the flood
waters ever sweeping toward the
the dikes which we can

District

Columbia.

of

about

I

luctance

uiinois

,and j

owe

bigger jobs for the Federal Government is a reluctance I'll never

have

tried

get over!

process

a

debt

my

and well. But in the
I have only increased my

honorably

indebtedness.

Because what we have been do-

to

and have

here

stay

a

in

Illinois.

manent basis in

•

which,

gather,

I

has

been

greeted with enthusiasm in some
sections. One of our United States

indeed, has

Senators,
have

been

Illinois

has

the centurv.

said that I

:

worst

i

h

■

,

address by Gov. Stevenson
at the Illinois State Fair, Springfield, 111.,
August 14, 1952.
an

LAMBORN &
99

WALL
NEW

CO., Inc.
STREET

YORK

5,

the

There
tnere

N. Y.

The

pqspnpp

is

ernmertt

of

rennhlieaii
eommand

not

.^7

An?.el.

...

Liquid

Futures

some




fine people in
tine oeoole in

y'

nllIl01s

^eemS-

is

+

yea^s ag?'

^

,^eaders^llp

f

.......

i

_

analyzing

securities from this point of view
is probably nearly as complex as
is the evaluation in terms of the
m0re usual criteria of yield and
safety, but is made vastly more
difficult bv the fact that one is
not so easily aided bv a large staff
0f highly skilled experts,
Nevertheless, to some investors,
this criterion of social significance
will be of greater importance in

and ^

and

fey

Not a "Captive" Candidate

measure,

self-confidence for

my

.

...

,

and

new

is

to

the

of

have

face

a

My greatest

a manner

me

future

producing alcoholic beverages and
choose
those
producing wholesome food or inexpensive housing.
The individual who sees in a de¬
centralization of our economy
of

its

There is even aisenK in which

business
or

to

many

the

Ada.

with

haven't met her yet.

The fact that my captors gen-

Illinois

limitless

But I

erously
minds
a

assault

me

one

another

re-

of a story I heard about

scout who

was

captured by a

will

have ten years

will I
hence?" or "Will

i be alive to use

it?"

J. F.

of
selected

nature

favor

to

small

more

J

F

Reilly Wire to
Yantis in Chicago
Reilly & Co.,

Incorporated,

York City, an.'
....
installation of a direct

61 Broadway, New

cooperatives, or indi- nounce the
investments in the
ivate wire t0 F. s. yantis & Co,
actively
marketed stocks *
,
«
over

and bonds. The investor

Justice

who, with

Douglas, sees the world's
one

problem

as

that of

misery of the landless peasants

part£'of the world rather
than that of thef military defeat of

in many

Bank

for

and Development

Incorporated, Chicago, members or
the Midwest Stock Exchange,
With Waddell & Reed
(Special

to The Financial

Chronicle)

DENVER, Colo.—Loyd

L Lewis

has become affiliated with Waddell & Reed, Inc., U. S. National
and of States Bank Building.

jnveYt fn? l^nds of^the Infernational

the more

urgent: "How much money

,
.
businesses,

the

the

humdrum

jobs,

number

and

these questions is really

the

^ ^e^tate'and1mm

viduals

hope I can bear this multiple
COurtship and captivity with becoming modesty. Then next week

or

contributions to organizations such
church service committees and
others concerned with relief across
national and cultural boundaries
and with education for peace and
international understanding. Such
investments are not expected to
he reoaid in money but in a world
in which to live. But which of
as

alternative to
cycles, to urban squalor,

control

I'm the "captive" of a girl named

the courage

danger and opportunity.

religion into practice may
the stock of corporations

I'll probably read in a paper that

friends in

given

avoid

re-

confidence

my

*dea * was so popular,

their

that will

discharge that

sponsibility in
preserve

,

appalling assignment

in the future.

-i
ft
♦
^ by at
The social effects sought u
dif-

establish a municipal power plant;
J anotherpersons wishing opposite,
will do the very to carry
Some

of Wall Street, and finally, I have
opportunity you
have afforded been called the "captive" of an
me.
The experience has
vastly organization called A. D. A. I had

to

»_

his ideals. The job of

ferent investors will of course

m, +rv?

thank you all for the

I want to

respect

DIgby 4-2727

manv
many

the means
They say I am a "captive" of
by which competing parties, com- the city bosses, and then the "cappeting branches of government, tive" of the CIO, and then the
competing groups in the commu- "captive" of the Dixiecrats, and
nity can be brought to common then the "captive" of President
action for the common good.
Truman, and then the "captive"

who

«_«_».

reaj estate in which he wishes to
invest, he has a much better
chance of choosing those whose
social effects are in accbrd with

Sn November Ts ^ ,°ne wil'bu\the bo"df:o£
vote for me in November, as privately owned public utilities,
r?ilinL Zrwlars aL But H WhUe he shuns.those issued

vov-

R

are

v

ambition

Exports—I m ports

himself —- as the particular stocks, bonds, _
regards
and

travels and tUCe i?e kind of world we will

n0LS?_mmand; iIt..ls does justice to the rank_and file,
?onse9t- The experience and train- let alone to the truth. They demg of four years in Springfield scribe me as a "captive" candidate.

I face

SUGAR
—

new

PP l1CTaP pa

I

responsibilities

erating

the

Refined

investor

—urni-

paperg

KuveriixntJiH until vuu
government unui you

.,

—

ot

we

I can

and the day-to-day op-

pressures

enhanced

Raw

an

looked forward thenew travels and havemold in votes, by the opinions th 1 f S r of i securities than
to Vice-President
by our our ordinary daily
cPipCtion
adventures
If
h
,
cnap-pofpfi
that hp -miffht not
? u
orainaiy aaiiy wln the traditional considerations.
naa suggested tnat ne mignt not contacts, by our support of newspvpn „ qpnop jn which
in w —

Governor on whom he has poured have given me a unique opportuhis rich and reckless invective, nity to explore and, I hope, to
* Part of

figure

ind S

coSonfed^ witr"heUconcrete

master in

(■

life in-

s ?as^ eratic Convention would have ex- ^p^choice o£ avenues ot invest- greatest yield, bv mamng outright
our
„rpatpst. vield
pioded with incredulous laughter,
by makine outngnx

f ~

Italia
understand

Governor

the turn of

But I'm not the onlv
l

r

(

the

had since

...

,

meiancholv

anH

^o^p^forward^tn

abstract; but you never really can

*

•

dunrngr

^

T

the art of civil government in

are

investors

*

.i

j

tut

I have learned more than

n

But, as you know, I have been
ment

ju.

enough to have bright ideas about

assigned another task, an assign-

of

Bank deposits, ordinary

these

nriournfully about whether he or hence. This effect is admittedly
f
na^1ton w0V
.su j11!!1
small, as is that of a single vote
^Dent6last °Christmas Vating i? ^ elfc1:ion;
^ has the same
spent

mtude.

putting this business of
good government on a more per¬

hand

responsibility

in the U. S. A.

:e.lanc!Dm ^,9
^ figure of sociaiiy desirable? Will it retard
77 at the Republican Convention or further the development of
]yas tbe
who stole conciliatory'-attitudes'in laborshow
DemocratieUon- management relations? In inter.
fL
national relations? In a sense,
pe*p^rep
such considerations are fully as
^
Sfl relevant as the more usual ones,
^
since they have an effect in deter9"slly you™1"1 commence aooui mining the type of world in which
exciting years aneaa.
the inVeStor will himself be living
Where t h e f l r s t wondered and doing business a few years

ing here in Illinois is important
Four vears aso
when vou pnto the citizens, because it is imtrusted me with the reins of state
portant to our Federal system, be- government, I found myself comcause public confidence is impormitted to tasks and responsibilitant
to
our
party, and because ties which were new to me and
much remains to be done, I had staggering in comnlexitv and masstaggering in complexity ana mag
wanted

particularly

the

services." Hence

'great

*

my

prairies
great debt. I

discharge

to

,

.

.

My roots are deep in our

bigger and

about

feel

of

must come primarily
'from regions that have available
surpluses of goods and

-for export

mati0n enabiing him to
ma^e bis own
estimates of
of

almost world-wide, the
carrying out such de¬

for

velopment

de¬

infor-

each

of the United
Although the

of raising standards of

is

funds

,

in marked contrast to tnis ven-^he

ahle

family have lived and prospered.

But the re-

,.

_

of

tailed

other things.

some

living

appreciation,
safety, and all
sorts

learned

capital problem

for

s

to

want

I

generations

five

jjere

reluctance

feeling of

a

changing jobs.

prospects

are

to you, shamelessly and sentimentally, that my heart will always be here in Illinois.

don't sweep any
more
government jurisdiction
down there!
Sometimes one must
overcome

leave

I

underdeveloped areas of the

which in

selecting securities in

Richard

say

there,

down

before

And

Now while I want you to sweep
me

new

that faith, whatever
it is. Indeed, there are some Republicans I would trust with anything—anything, that isv^except
public office.
No, my journey
won't be a crusade: we'll just call
it Operation Victory. ■
-

major duties by a lot of other jobs
that it need not do. And the states
are

very

some

even

to

converts

discharge of its already monstrous

In

dresses. His speech was deeply factors. Rare''sdrance
policies,
mutual
fund
£ lru- ,e\ ii11? ^9
1 y,
'shares, and retirement plans rep-:
probably be his last Republican does if e v er,
resent
investments
dispersed
he con^
Convention, he kept saying
a
throughout our economy, the ac¬
n.ote °* pessimism which we all s^er the eftual choice of securities being left,-.
sincerely hope will turn out to be fectg 0f; his
by the individual whose savings
wholly unjustified. He described jnvestment orv;
involved, to'-someone else. If
yie state ot the nation in equally s0ciety. Will*
individual, instead of delegatfunereal language. The whole etfacjjjtate
f<rct was one of biack> url59 . v •, the produc«ioom
t»c
ing this function to some bank or
" nnm
~
' tion of "goods or services which insurance company, himself selects
,j.
T"
'■.>

a

publicans,

influence the kind of world he

effects in each instance might be small,
they have in aggregate same importance as votes in an election.
in, and though

lives

m ^ui

"crusade" to exterminate
Government Republicans. I like a lot of Re-

our
Federal
become
bigger

should

Honolulu

individual by considering the social signifi¬

of his investment", can

cance

good deal about that

u1.

permit. And I won't

our resources

call it

Author contends

At. e -Republican Convention, an
eminent party leader, a.-former
intend to cover as much President ot this country, aged 7/
as time and strength and years, made one of the main ad-

big, cret. I
and ground

BURLING

By RICHARD L.

University of Hawaii,

ocrats in.

I've

home.

before it gets back

In

Republicans are out and the Dem¬

I am about to leave you on a
jong journey, and the route, by
the way, won't be a military se-

,

Factor
Appraising Securities

Social Significance as

principle only when the

sound

a

to Be "Operation
Victory"

Campaign

a

beloved
Vice-President, Mr. Democrat
himselt Alben BarKiey,

much too youngest of them all, our

"'"'I! atoTthe^ci^Wtoatole to invest, the tyP'cal prospective world than in bonds
S ^hanve Evidentiv "change" is Purchaser considers the probable States Government.
is
ot change.
Evidently
change

services,

and if

But I have kept you

grandfather.

pve reac[

will all be elected
next November. And, by the way,
i Tiitend to be standing right here
with them next summer—as Pres¬
Fred Cam

and

pleasure I present to youit e

packages!

something

Elliott period and j don't recall reading
anyWhere the Republicans during
those 52 long years saying very

Barrett, Ben Cooper, Ivan

and

state

the work we have

just as confident as I am
standing here that Sherwood
Dixon,
Herbert Paschen, Eddie
I

are

the

exceptionally equipped by

leader

is

is like buying a surprise package
at a novelty store. Maybe the
cigar is a good one, or maybe it
will explode in your face.
This whole problem of the need
for a change is very interesting
to me in a sort of family way.
From 1860 to 1912—a period of
52 long years — this nation had
only one Democratic President. I
can say this with feeling, because
aS'some of you may remember
Grover Cleveland's Vice - President during his second term was

can

Capital

be

we are to
find out after the election. So, it

field.

toward

to

better or for the worse

tne

apparently

well understand why he
cen- should look back with sentimental
lives regret to the more bounteous days
tidal of my predecessor here in SpringI

deplore

we

is

change

that

WhPthpr

for

I think about the con-

'rast between the speaker a
fair
aTh„ mA=t rff the
^Jhe fair today, the meat
difference becomes obvious,
The Republican party is the
party which makes even its young
men seem old. The Democratic
captured/by most everybody ex- party is the party which makes
eept the? Republican Old Guard even its old men seem young, and
and don't you send me any CARE at last it is my great pride and

Tempers rose and so did the
lomahawks. The rival tribesmen
xaid each other on the ground and
Davy Crockett, or whoever he
was,' made his escape. Maybe
there's hope for me! Meanwhile,
it's not too uncomfortable to be

been hearing a

have

adays everything is big and deplores change in

We

about which tribe he belonged to. But when

And most recently
great deal
about the need tor a change. Now,
I had always thought that Americans
liked change for the better
and disliked change for the worse*
But a new doctrine is abroad in
the land—a doctrine of change for
I

Illinois

Governor of

Presidential Nominee of the

group of

last tour years.

STEVENSON*

By HON. ADLAI E.

Indian tribes, who soon describe the essential difference
began to argue among themselves between our two major parties,

Change"

things in the

I've learned otner

Reconstruction

Volume 176

Number 5144

.

.

The Commercial and Financial Chronicle

.

(655)

$27,684,654.
June 30,

From

Washington

Ahead

Total

1952

reserves

on

$85,712,754.

were

The Bank made

loans

19

total¬

Washington...

ing $298,608,000 during the fiscal

the News

bringing total commitments

year,

June

at

30

to

bursements

$1,412,133,000. Dis¬

during the

By CARLISLE BARGERON

7

A

J

jLJl

tlU

Behind-the-Scene Interpretations
from the Nation's Capital

year were

—

-

JL CPU/

$184,777,004, compared with $77,COLORADO

SPRINGS —You

get

famous Broadmoor, in addition to being
to

rest, swim

screening

impression

that

564,969 during the preceding fis¬

the

cal

delightful place at which

a

for those

camp

ments to June
to

who

trying to get to Eisenhower.

are

ostensibly just to vacation but hoping to

There

here

are

old

one

told

was

cn

friends

of

six

Generals

the

and advice.

in

At least two

the

General's

of them

But

there

was

apparently some mistake
in. They learn their

is not wanted around

Denver.

sold

Just

He

anybody from the military.
campaign.

him referred to

the General. It's either "Ike"

as

I

he learns not to

am

made

the

utterance

to

have

about

bunch

a

few

a

attention

but

weeks

which

and

which

ago

could

be
was

I forget his exact language but it

no

more

to

of horsefeathers.

for

or

that

indeed,

economy,

by

the

military brass.

helping

our

allies

with military and rearmament demands.

being told, is 1954. It
lived in

Bank

taking

are

Senators and

members of the

velt lost his influence

currently

before.

We have

there and

never

over

as

Congress

regained it.

Truman

It raises

hue

is asked for.

the

and

of

amount

year

became

and

power

from big streams
high head of water. The
is firm:;' winter or summer*

spring

or

with

comes

a

fall.

the

capi¬

No standby steam

generation is remotely needed. If

of the

hold¬

the

Ltd.,

the

ice

does

somewhere

system

down

a

under

the

freeze

to

between

a

ice

into

the

penstocks.

It is also natural because being

to

nearly 400 miles north and east of

tant

in

British

Columbia,

area

Canada's

of 500,000
mated

potential production

metric tons

its esti¬

or

potential of 2 mil¬

power

h.p.

Until

barely

generation

a

ALCAN, at that time

of the

ago,

a

part

Aluminum Co. of America,

began its build

up

in

territory which

a

support virtually

no

Joins

On

June

30,

basin,

with

cry

and

Blair, Rollins

LANSING,

enterprise, there are no com¬
peting demands for power.
The
power is firm.
It is cheap, aver¬
aging about one mill per kilowatt
hour.
And it 4s close to a point

where

bauxite

can
be shipped in
transportation.
And
by many odds the
largest relative consumer of elec¬

by

water

almuminum

tric

energy

is

and the smallest user
of the major

of manpower of any

extractive industries.
One

the Saguenay

Saguenay

the

anything

has

Financial

Mich.

—

become

climate

a

one

W.

so

the

of

first

meanings

ever

to

known, complained that

spend this

wasn't

a

menace

This

when

answer

I

asked

if

announcement

tchich

anything he had

industry hadn't been geared

our

He wouldn't

money.

than about

of

the

of

each

In

most

that

fre¬

the

to public
a

would

Now that country is

a

U.

may

will render

power.

It would be al¬

certainty that the promoterbe

loaded

down

Continued

of hydro

constitute

an

on

offering. 7 he offering is made only by the Prospectus,
as are

registered dealers in this State.

up

this

NEW ISSUE

August 19, 1952

getting

us

he insisted

City Chemicals, Inc.
f,:

to

me

that

Chief of Staff

Army

v/as

the politicians

responsible for wars, and crises.

and not the

military

make

it

that

You

way.

get

the

that he plans to do some

debunking

-

SVi% Subordinate Sinking Fund Debentures due

And it

Common Stock

new

(no

might very well be

his campaign unfolds. This

as

January 1,1963

300,000 Shares

And the

impression

Eisenhower is not too happy over the sham and deceit of the

which he has embarked.

$3,000,000

.

The mostly live in an

artificial world where fact and the truth seldom prevail.

themselves

were

Eisenhower occasionally betrays

his impatience with politics and politicians.

upon

Texas

out of the emergency state, he

signal service.

a

Many years ago when MacArthur

career

not

Offered

would really be wonderful.

par

value)

30,000 Units each consisting of

as

$100 Principal Amount of Debentures
and

World Bank

net

Reports

income

General

Gain in Net Income

the

Reserve
to

reserve

Gross

Net income for year ended June

was

placed
and

in

10 Shares of Common

the

commissions,

$58,028,100.

was

Price $107.75 per

$35,188,744,

30, $15,872,883, compared with

fiscal

Reserves

now

approximate

year

Expenses

cluding

$86 million.
The International Bank for Re¬
construction

reports

a

and

Development

net income of $15,872,883

for the fiscal year ended

1952,

compared

for the

with

preceding fiscal




June 30.

$15,156,947
year.

The

terest

June

quired
ment,

"

in¬

administrative

Glore, Forgan & Co.

and $14,178,503 bond in¬

and

and

Bank's

1951.
'

other

expenses.

commissions amounted
906

30,

$19,315,861,

$5,137,358

expenses

I

ended

totaled

were

to

credited

Special. Reserve,

Loan

$7,558,to

the

as

re¬

by tbg( Articles of Agree¬

increasing

this

Unit

(plus accrued interest from July 1, 1952)

compared with $28,202,542 for the

$15,156,947 for preceding fiscal
year.

Stock

increased

income, exclusive of loan

reserve

to

Hayden, Stone & Co.

White, Weld & Co.

Hemphill, Noyes, Graham, Parsons & Co.
Southwestern Securities Company

pro¬

with

so

generating

horsepower

be obtained from such of the undersigned

Now, if Eisenhower intends to develop his estimation of the

voters

does

S.

often suspected of friendliness

cy

summer

place

eral agency for a license, an agen¬

frost at least

most

2.5. million

first

the

moter would have to go to a Fed¬

blessing in disguise.

Russians to the point of

to

a

operations

cool

some

was

months.

associated

Blair, Rollins & Co., Inc.

day

but

farming

quently there is

Chronicle)

Charles

of

area

that

General friends here, after agreeing there had been

bunk about the Russian

can

other impor¬

The military has some $150 billion on hand which it

One of my

six:

and

occasionally
brings spells of —40 degrees Fahr¬
enheit, the whter flows smoothly

hasn't been able to spend.

more

depth of

four

winter which

Montreal in

and

of

economic grounds. The

on

Port Alfred, the
largest in tonnage of the
ports of Canada. It also consists

lion

members

an

elder

an

other

including

its aluminum

these

Sweden

of

feet in

River

of

enterprise
imagi¬
Morgan.
Saguenay's aluminum-power en¬
terprise is a completely natural
nation

the

comprise

'third

support

(Special .to The

Roose¬

world affairs but in the end appropriates the
money

the

empire consists of a
of the 30,000 square

marginal

But Congress
a

em¬

counting

even

an

amounting westernmost province. The magni¬
tude of the latter project is meas¬
ured not by its watershed but
by

increasing subscribed

Powers

had it.

never

affairs.

50,-

$8,453,500,000.

domestic affairs then and

on

It is

sort

of the much smaller Kitimat

issue in Switzer¬

by $115,000,000.

reflected in his effort to purge

House, turned against him.

has been rather docile in world
our

men.

we are

year

of

the

power

com¬

area

Saguenay

is

which would have fired the

empire

the

Aluminium,

this

Small cities have sprung up
along
the Saguenay and even above it.
It

striking things

company.

For

shortly will be in
position to produce nearly 500,000
metric
tons
of 'aluminum

a

Washington is that ALCAN could
large tract of manificent scenery, not happen in the United States,
1952, 51 countries were members
trappers, tourists, plupwood, and even if there were a comparably
of the Bank and
the total sub¬
relentless,
rugged
pre-Cambrian enticing resource existing under
scribed
capital amounted to rock with a topsoil too thin to similar circumstances.

tal

crisis state since mid 1939, when Congress, fed up with

a

Roosevelt's dictatorial tendencies

about

D-day,

last year and the

was

principal

dread of

a

parent

power and is or

that

is

smaller fraction

of

story in¬
the Alumi¬

complementary enter¬

which

when

about to wreck them

are

we

total

a

al¬

$15,000,000. The Bank also

During

whole

boys from their homes and interrupting the careers of older
Under the guise of

for

in

sales to $56,376,688.

To contain

We

one

is

miles of watershed which feeds the

issues

$23,359,192 of securities from

Burma

and his atomic bombs.

manpower

have poured out billions all over the world.

we

Our

existence has been geared to

our very

Stalin, his hordes of
him

matter

States

or

empire.

an

drainage

portfolio, which increased the

total

This is not the theme that has been preached
by the Admin¬

istration

year

Included

two

were

issue in Canada

an

to Can.

to be afraid of the Russians

reason

during the

a

Canada.

without

ings

Bank

$175,271,000 bringing

sales

of

of

ALCAN

prises
and

the

000,000 (equivalent to $11,600,000);

its

had

we

Russians

little

$15,-

1952.
of

$499,859,000.

United

sold

tremerdous significance.
the effect that

the

attracted

to

The

"ALCAN,"

is

pire

received

land in the amount of Sw. Fr.

anxiously awaiting the development of his campaign. He

an

seems

investors

$150,000,000;

it again.

use

the

capital.

Co.

num

pany

"Eisenhower."

or

dropper-in using the term "General" is stared at coldly—in such
way

obligations

the total to
in

bonds

country

One of the most

to

en¬

into

1,000 miles due north of the

volves

and

excursion

The

related and

Bargeron

Around his headquarters you never hear

of

Bank

amounted

amounted to
Carlisle

suggestion that they have anything

no

to do with his

to

the

to

June 30,

on

Direct

see

than

loans,

248,282

about the last person the General wants to

a

holders

under

cam¬

most

repayments of prin¬ about

other

did yeoman

these days is
wants

Total

both

their being called

presence

A

of

short

Washington.

the

retire

to

cipal,

paign.
about

portions

Bank.

Ike—had, in

WASHINGTON, D. C.—An

land of youth and
vitality, rugged
rocks and romantic
scenery, drives
home a story full of meanings for

paid to nation's

was

investors

each

pre-convention

A

loans which had been sold by

They

by the General for counsel

on

received.

Bank; and $1,863,000

booked

and

principal due

year were

total of $4,239,011 was paid to the

I first greeted him that he

when

me

Eisenhowers

his way to Denver to see

fact, been called
work

least

at

are

nursing their disappointment.

$876,504,133.

during the

meeting with the General in Denver,
only two hours away by train.

disburse¬

30, 1952, amounted tirely too

All repayments of

the country are coming

over

arrange a

up

Cumulative

year.

golf and spend money, is presently serving as a

or

Big shots from all
here

the

Rauscher, Pierce & Co.

Rowles, Winston & Co. Wagenseller & Durst, Inc.

page

32

8

The Commercial and

(656)

Financial Chronicle

Thursday, August 21, 1952

..

.

Tomorrow's

Dealer-Broker Investment
NSTA

Recommendations & Literature
It

Stock Holdings of Leading Insurance

ASSOCIATION OF NEW YORK

1952-1953 of STANY .starts on Sept. 4,
1952. Bowlers will meet every Thursday from 5:30 p.m. to 8 p.m.
at the City Hall Bowling Center.
Any members or associates interested should contact Sidney
Jacobs at Sidney Jacobs & Co., Ill Broadway, New York City.
Each year the interest and competition gets better. If you wish
to become part of this bowling group, be sure and give notice
The

Company Groups—

Wall

Street, New York

Analysis—A.

1

Co.,

&

Kidder

M.

By WALTER WHYTE =

=

SECURITY TRADERS
Bank

Whyte

Says—

parties the following literature:

send interested

to

Walter

he pleased

firms mentioned will

understood that the

is

Markets

Notes

bowling

season

If

ket

you've watched the mar¬
during the past few days

,

5, N. Y.

Edition—Can be or¬
special price of $8.09 per copy through Geyer & Co.,
Inc., 63 Wall Street, New York 5, N. Y.- (Mr. Robert Chaut).

Best's

Stocks—1952

of Insurance

Digest

dered at

1784-1952

Stocks:

Heirloom

listing

Brochure

—

175

of

common

that fact.

from
25

23

Broad

years—Paine,

169

to

Street, New York 4, N. Y.

Outlook

the

on

reprint of

Also available is a

N. Y.

road Bulletin No.
York

spite of present conditions we

Our

106—Smith, Barney & Co., 14 Wall Street,

dent, Perry Brown, who has always shown a
interest in national

/(Taxes

Frederick

Bonds—Bulletin—Paul

Free

United

Tax

Income

Kingdom

Equipment,

Gas

Affiliated

an

70

recognized and has the active support of those
other than our 1952 Executive Council and of¬

American Investors—Bro¬

and

Perhaps

N. Y.

the

*

Asso¬

&

ball

many

the

to

more

goal

&

HAROLD

K.I.M.

NSTA

120

Company—Review—Sutro Bros.

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

135

The National

Utility

Public

Corp.—Analysis—F.

Salle

Yantis

S.

lowing schedules

& Co.,

Street, Chicago 3, 111.

La

B.

start

Advertising Committee,

1

Wall

Cory

Co.,

&

Company

Broadway, New York 5, N. Y.

trains for those attending the

new

heated

a

-m

take

before the eyes.
*

If

❖

*

p.m..

Leave

p.m.

Leave Cincinnati

Penna. RR.

5:30

p.m.

Leave Detroit

Penna. RR.

8:25

p.m.

Leave Cleveland

Penna. RR.

-12:41

a.m.

Leave

Penna. RR.

a.m.

Arrive Washington

Oct. 18-

-

Chicago 3, 111.

Broadway, New York 4, N. Y. Also available are circulars
on
Sierra Petroleum, Inc., United Oil Corp., Oklahoma Oil

Oct. 19-

8:35

Chicago

Pittsburgh

could argue

with the
with half a chance
of coming out on top, there
would be an argument that

Penna. RR.

3:40

5:15

Corporation—Circular—Stanley Pelz & Co., Inc., 52

Crusader

or

and can
discussion in

ones,

From the West

'

39 South La

Investment Co.,

Corp.—Analysis—Barclay

Salle Street,

of these,

any

.

Corporation—Analysis—Cohu
Street, New York 5, N. Y.

host of others. You

a

board room.
Unfortu¬
nately, winning any of these
arguments won't bring you a
single dollar. That's the trou¬
ble with arguments. You get
high blood pressure and spots

19th Annual Convention to be held in Miami Beach Oct. 20-23.

Refrigeration

Copeland

inter¬

are

any

Security Traders Association announces the fol¬
for the special

"reasons" for

the

some

on

SMITH, Chairman

CONVENTION

Eighth Street, St. Louis 1, Mo.

South

pick

can

NATIONAL SECURITY TRADERS ASSOCIATION

Anheuser-Busch, Inc.—Memorandum—Dempsdy-Tegeler & Co.,

Central

tion and
Harold B. Smith

Pershing &

Company.

407 North

and runs,

—

price ceilings (or no price ceil¬
ings); labor problems; infla¬

this year will carry
a successful

ciates, Inc., 68 William Street, New York 5, N. Y. Also avail¬
are bulletins on Pfeiffer Brewing Company, and Thew
Shovel

for exits

hassles; the coming
elections; economic hurdles;

that means

able

Allis Chalmers Manufacturing

ap¬

national

issue.

Inc.—Analysis—Gartley

reaction

walks, to the nearest door.

Among

ficers.

#.

a

the current sell-off

early bird."

Perry, you make us, the Na¬
tional Advertising Committee, feel our work is

chure—White, Weld & Co., 40 Wall Street, New York 5,
#

repaid for being

am

Company,

&

of

#

Thanks again

Street, New York 5, N. Y.

Pine

indications

early this

60

Street, New York 4, N. Y.

Beaver

Tax

probability of such
is
always present.
They become more so when

not

Co.,

&

Hentz

it.

The

usual. If by sending in A contract I can
it a little easier for your committee, then

make
I

Securities—Discussion—H.

Railroad

on

*

markets

around

follows:

as

"My firm's contract was sqnt in

Broadway, New York 15, N. Y.
Senior

turned

*

year as

Investments—Discussion in August issue of
Estates"—Chemical Bank & Trust Company, 165

your

and

writes

Affairs

"Perspective"—Calvin

Bullock, 1 Wall Street, New York 5, N. Y.
Safeguarding

was

pear on the horizon. It is then
that the cautious trader looks

Presi¬

past National

and

friend

old

consistent and outstanding

5, N. Y.

Railroads—Analysis in current issue of

hose

a

affiliates.

ments for all our

positions discussed in Rail¬

Railroad Common Stocks—Leverage

New

New York 5,

Street,

Stocks.

Bank

for

created most encouraging results and
should present our members with
an excellent post convention supplement of the "Commercial and
Financial Chronicle" with a good representation of advertise¬
My Tetter of Aug. 8 has

in

talk by George Geyer

a

if

as

*

■«.

Inc., 63 Wall

& Co.,

1952—Geyer

30,

Herbert Lax Memorial Trophy.

somebody put a fire under it
and then suddenly black out

"AD LIBBING"

operating results as of June

of

Stocks—Tabulation

Insurance

prize this year is the

An added

paid dividends every year
Webber, Jackson & Curtis,

stocks in 36 industries that have

you've seen the queer things
it can do. It can start up like

one

ticker tape

could be worthwhile.

Penna. RR.

*

*

*

Co., Kutz Canon Oil & Gas Co., Tri State Oil & Refining Co.
and Albuquerque

From the East

Associated Oil Co.
Oct. 18— 9:00 p.m.

tion, 55 Liberty Street, New York 5, N. Y.
El

Electric

Paso
Mason

Company

Report—Loewi &

—

Products, Inc., and

Steel

Gerotor

Arrive Washington

Penna. RR.

5.

N.

Also

Western Sugar vs.

Stores, and
Hoffman

a

in

the

do

the

for

data

Goodall-Sanford and Best Foods

selling. There's no argument.
Except if you think your or¬

on

St. James

Labrador

All

Exploration

Each

Chicago

& Co., 148 State Street,

Co.,

Ltd.

—

$186.13

_

Cincinnati

—

F. P.

15 Broad Street, New York 5, N. Y.

Central and South West Corporation.

&

Co.,

52

Wall

__

Street, New

$197.13

ing Room
Each

$215.12

_

193.68

195.76

195.96

212.78

183.35

183.60
172.05

187.87

page

30

Gerotor May

Copy

on

Request

Troster, Singer & Co.
Membert:

74

N.

Y.

Security Dealert Association

Trinity Place, New York 6, N. Y.




this

As
out

being pounded
the

is

Underwood

the

on

*

*

*

192.88

207.95

market is down but dull.

218.57

235.42

of such action there is

Roney Plaza

are

Hotel, Miami Beach. Hotel
Gratuities Are Not In¬

not included.

a

Saturday eve¬

the

reasons

chances
be

a

famous

night clubs. Sunday afternoon there will
Tour of the Havana Countryside returning in time to sail at

arriving in Miami Monday morning.
of the Havana Trip including stateroom, dinner and
breakfast on the boat in both directions, sightseeing, transfers
from boat to hotel of individuals and baggage also room at Hotel
Nacional (Two in room) will be:
The cost

Two in outside stateroom, $79.55 each; two in airconditioned
stateroom, $85,88 each; two in suite with private bath, $92.20 each.
For reservations and additional information communicate with

Maguire, J. B. Maguire & Co. Inc., Boston, Mass; Edward
H. Welch, Sincere and Co., Chicago, 111.; Barney Nieman, Carl
Marks & Co. Inc., New York, N. Y.; Charles L. Wallingford, H. M.
Byllesby & Co. Inc., Philadelphia, Pa.

for the initial de¬

present,

are
are

that the

minor affair in

so

the

rally will
a

broader

downtrend.

From
a more

*

*

*

visit to the Jai-Alai games there will be time to visit

the

Out

usually

a
possibility of a rally. In
fact you may get this rally be¬
fore the week is over.
Still,

cline

arriving at Hotel Nacional in time for Luncheon.

James B.

are.

192.58

6 p.m.

Giant Portland Cement

all

218.28

Miami on S. S. Florida, Fri¬
day evening Oct. 24, at 6:00 p.m. arriving Havana Saturday morn¬
ing. A tour of the City has been planned for Saturday morning

a

or

183.41

_

Those going to Havana will leave

be

executed at either too

too low a price, then
you'll get is a lot of time
slips to prove how wrong you

high

207.97

_

tween Miami Station and Roney Plaza

ning after

was

thing if you're

199.79

171.98

same

209.04

162.70

_

195.35

193.40

173.55

_

179.99

185.64

_

179.71

The cost of each tour includes Round Trip Rail and Pullman
including Federal Taxes, Meals on the train Southbound. Sight¬
seeing in Washington and transfers of individuals and baggage be¬

several of

Dry Batteries

Each

cluded.
on

"Turning the Corner"

—

$196.93*

Compartment

170.49

__

St. Louis

Rooms at

5, N. Y.

Continued

One In

Roomette

Two in Draw¬

184.18

_

Philadelphia
Pittsburgh

Broadway, New York 6, N. Y. Also available in the same
an analysis of Philadelphia Electric Company and

Lytton's—Analysis—Aigeltinger

Detroit

New York

Analysis

Two in

Bedroom

Cleveland

&

Similar arrangements

Expense Tour Cost

From

bulletin is

General

F. E. C. RR.

Philadelphia, Pittsburgh and New York.

Allied

Long Island Lighting Company—Analysis—E. F. Plutton & Co.,

On the Press

R.F. & P. RR.

Arrive Miami

der

Street, West, Montreal, Que., Canada.

Ristine & Co.,

Leave Washington

Two in

Company—Bata—Kippen & Company, Inc., 607

Mining

a.m.

The

9, Mass.

Hudson's Bay

p.m.

will be available again cn Monday Oct. 27.

Great

vs.

a.m.

Special cars will be provided for our group returning on regu¬
leaving Miami at 12:01 p.m. Friday Oct. 24 for Cincin¬
nati, Cleveland, Detroit, St. Louis and Chicago and at 1:00 p.m.

Co., 74

suggested High Yield Portfolio.

Radio—Circular—Raymond

Boston

&

Wall Street, New

are

if the market is go¬
down or sideways. It
isn't even
good intellectual,
exercise. If you want to buy
something,
you
give your
order to the order clerk; you

lar trains

Oct. 20—11:00

Company.

Singer

1

issue

same

tell you

Pullmans may be occupied until 7:30 a.m.

Company—Brief analysis in current issue of

Y.

all this doesn't

up,

1:45

Also available is material

"Gleanings"—Francis I. du Pont & Co.,

a.m.

course,

ing

Co., 225 East

May and Giant Portland Cement.

Electric

General

Torrington

Batteriess—Circular—Troster,

Dry

Trinity Place, New York 6, N. Y.

York

Penna. RR.

Also available are special
Hamilton Manufacturing Co., Le Roi Company,

on

Safway
General

61

Philadelphia

4:25

Nekoosa-Edwards Paper Company, Pabst Brewing Company,

York

Penna. RR.

Leave

1:25

Street, Milwaukee 2, Wis.

reports

on

Leave New York

Oct. 19—

Industries, Inc.—Analysis—de Witt Conklin Organiza¬

Eastern

Of

present signs I think
solid base for

a recov¬

will be seen within an¬
other five points or so. I there¬
fore would prefer to stay on
ery

until

the

sidelines

more

there's

down witnessed.

[The
article
time

views
do

not

coincide

expressed

in

this

at any
those of the

necessarily
with

They are presented as
those of the author only.]
Chronicle.

Volume 176

Number 5144

.

.

.

The Commercial and Financial Chronicle

(657)
with

Joint Ownership of Stocks—Its

his

wife

with

In

those

vivorship.
either

spouse

can

right

of

states

sur-

where

terminate

the

consideration for the purchase of
the property. Obviously, in
many
cases it is difficult if not
impos-

joint-tenancy without the consent sible for

Advantages and Disadvantages
By LEROY A. SHATTUCK, JR.

that

or any other property
is not to be considered lightly, Prof. Shattuck

death

and administration

taxes, but it

its

to

over

ultimate disposition.

prop-

erty, with the

thought that
better

a

appre-

ciation

of

them

may

prove

valu-

able

to

not

the

those

in

only

selling

"fre5 •

rv

miPntlv

t h fl

'7
of
oi

will

securities

also

in
in

alSO
n

Tohr,

nomQ

th^

tne

"salesman to'

the

the

to

bank

the

ac-

...

disadvantage is that nei

-

Present

reg' in
SSLitioTo?1^Kop'erty'"to
aisposition oi me property,
surviving

-—

:r

presume

client
lient

as

would

wuuiu

a
be
ue

snouse

better

the
uie

arrangement
of
oi

a
a

life
me

other

0r

still it is

If

the

salesman

is

a°pos'itCionP[o surest

more

a

result

satisfactory to all concerned

than the

donor

joint-ownership

i^int/y

origin

The

the

case

marital

Conclusions

of

such funds.

It is not presumed that the
above

Revenue Act

vided that property

marital

deduction

mits the value of

and

value

of

the

marital

lost to that extent.

arrange-

deduction

is

Consequently,

js
nojdifficult to
imagine
situations where this disadvantage
of

jointly-owned property will be
more
pronounced.
Suppose

even

that H and W

all their prop-

own

erty jointly, and that the adjusted
gross estate of H totals $500,000.
The

marital

deduction

Internal

is

remaining1 $250 000

The

limited

Revenue

Act
will

to
be

in

his

name

not the

or

alone

or

jointly

{h^ir^^sion^h^ae^u^of
impression that the

the

value

ciir-irixrnrcViin

of

held with right

io

survivorship is nnt enhiont in
not subject to
the Federal estate tax. This notion
tion

is
is

not

—

is

correct.

The

rule

is

fal1,v?lue4Pf gross pr°p_
such estate
the

included

in

planning

by

the

to the

as

stantial sums, are involved, capital
£ains taxes, gift taxes, and Federal estate taxes, may create proble.ms that require professional adVlce- The salesman or dealer in
securities who is aware of these
problems

and

who

knowledge of the
considerations

be in

a

has

more

some

imoortant

involved,

thus

may

position to render

more

°ol

tm|was cludmgjha^wh.ch was subject to

was

any

joint tenant first to die

subject to the estate tax at the valuable service to his client.

K

stock at the time of his death thj property in
her estate
inwould be included in his gross eluding tha which
was subiectto

estate whether

precludes

the impact of the Federal estate ultimate disposition of the proptax upon the estate of the dece- erty. It precludes flexibility in
dent will be more severe.
estate planning. And, where sub-

by the

a^thl

over

rangement would provide

knowledge of the problems

adminis-

or

the

again

subiect

the

to

estate

In °ther WOrds' anoon
estate taX
-nairf
the
$9^0
on

H's

as

estate,'

.1

nVid

and

»

it "or
•<

from

tax
was

waS

part

of

(ign
v

^otlmrwfse^ex-

Paid lr°m 11 °r otheiwlse ex

pended) the entire $500,000 is subip0+

to

the

W's estate,
die

estate

even

shortly

tax

nart

as

nf

though W should

after

H

Normally

bv
by

beneficiaries.
beneficiaries;""Possibly', of the joint-owner first to die, nrooertv received
Possibly, o'Ahe'joh^ner'"tet"to""die,
property'Tece^ved

t%e7of'Tenants, amounts'ar^inv^vld6 ^trust"'^well that he should have

involved.

the

Tpf Ffde.ral. esJ{|te *ax w°uld

7»artm°aLtrierSnrJiVtinthWifh:iH'ith th?4
to the children
erty
the remainder

various

some

of

The Federal Estate Tax

nf

creation
creation

in-

Federal

j

mav

P°ssible savings in administration
and death taxes- Certainly, a sigany

has

the

donee'

advantages^f s^clfownersWo

ther joint tenant has

for

the donee. If the wife were younger than her donor-husband, the
yabte of the gift may be substantially in excess of 50% of the
$109,000 cost. In any event, the
^SS1,
! y -of g^t tax liability
should be a consideration where
substantial amounts of securities
?r. other property are taken in
joint names. Of course the same
Principles are applicable in those
cases where the husband is the

** *s the writer's opinion, how-

nificant

husband-donor

ml' Ihe avera^e.case' the wife ™l\be Property jointly
IhG
fresurviving spouse and fre- of
and

f

salesman

and

the

expectancies

of

Some Disadvantages

\
Tnh ^uently
And while

uX

instruct

the couple's home
count.

ivirs.

.f

Hi

securities
securities

Tnnn

OI
oi

name

JShtJJ
'w S
right of survivorship.
to

t

T

a

death

in

say,

that he wants the certificates
•ilia
and

the

are not a factor. As a general rule,
however, it is probable that jointownership should be limited to

encased

purcnaser
purchaser

i-iic.

of

and wife joint-ownership may in
these cases be desirable particularly where Federal estate taxes

buyer

the

Vfe

in

event

of

owned

icioroH

the

in

other, the surviving spouse take
advantages all the property with a minimum
jointly- of delay and expense. Husband

disadvantages

Leroy A. Shattuck

and preclude right

Says security dealers should be
problems.

The purpose of this article is to
set forth in brief fashion some of
"the
more
important

ascertain

a

the

provision per- in joint name is not one to be
property passing considered lightly.
It has been
outright to the surviving spouse pointed out that joint-ownership
In those states where joint ten- to be excluded
for estate tax pur- with right of
survivorship may
ancies with right of
survivorship poses to the extent of one-half the have some advantages in concannot be readily terminated
by adjusted gross estate of the dece- venience and possibly some savany one joint-owner acting inde- dent.
However, if the value of ing in state death and adminispendently,
as
in
Pennsylvania jointly-owned property, plus other tration taxes.
The joint tenant,
where spouses are the joint ownproperty passing outright to the however, loses to a greater or
ers, the value of the gift to the surviving
spouse, exceeds 50% of lesser extent control over his or
wife would depend upon the life the
adjusted gross estate, then the her property while living, and it

the joint

cause

the executor

to

advantage of
deduction is illusory

gift tax.

of these

aware

and

may

his property

the lifetime gift tax exemp-

is

liability

weighs its advantages and disadvantages. Points out jointownership with right of survivorship may have some advan¬
tages in convenience and may even effect some savings in
tenant to lose sole control

trator

In such

initial

of 1948 pro- treatment is exhaustive.
It is bejointly owned lieved, however, that enough has
$30,000, plus a $3,000 gift
by spouses would qualify for the been written to warrant the coneach in any year to any number
marital deduction since it
passes elusion that the decision to take
of several
donees, it is obvious absolutely to the survivor.
The securities or
any other property

Holding the matter of placing securities
name

other,

it is clear that the
husband has made a gift to the
value of $50,000 to the wife. And
tion

University of Pittsburgh

joint

the

since

Member, Pennsylvania Bar Association
Professor of Finance, School of Business
Administration,

in

of

not applicable

9

devise
ST'or
or

Ballard Appointed By
Midwest Stock Exch.
CHICAGO,
President

of

111.—James E. Day,
the

Midwest

Stock

Exchange, has announced that the
Board

has approved the

ment of

Assistant to

Mr-

appoint¬

Roger K. Ballard, Jr., as
the President.

Ballard, 36

years

of

age,

6XCept t0 thf extent that lhe

SUr" inheritance on which an estate recently resigned from The North"
vlvln3 joint-tenant can prove that tax was paid, is deductible from ern Trust Company's Trust Debe

contributed

to

the

purchase

price of the property with his

the^poSseTrS £eparate funds'

the gross estate of the devisee

or

beneficiary who dies within five

own

partment.

Having

in

the

U. S. Navy from 1941 until he

was

served

Furthermore, the

owned
years of the death of the prior released in 1946 with the rank
taking of title is to die has no control over the burden of Proof ls uP°n the leSai decedent.
But if a spouse takes of Lt. Commander, Mr. Ballard
a quick
decision, distribution of the property. Such representative
of the
deceased advantage of the marital deduction joined the firm of Glore, Forgan
and that possibly the client's atownership precludes any flexi- joint-tenant to prove that the de- provision of the Revenue Act of &
Company where he remained

client
not

a

nish

that

the

matter for

^
helpful advice

some

this

on

matter.
In

plaiun)?g' And particuare

iariy where children
it

the

few

last

jointly-

years

held

property with right of
vivorship
has
undoubtedly

sur-

would

involved

cases

to die to retain

control

some

over

in-

lie the advantages of such owner-

taxes

ship.

Suppose, for example, that a husband buys 100 shares of stock at

general rule, the legal
effect of joint owner relationships
is

a

a

matter of state

laws

do

differ

law, and state

somewhat

this

on

subject.
The Federal tax laws,
however, are uniformly applied
throughout the country.

$100
them
pose

Some Advantages

should

not

be

not

furnish

all

the

per share, and takes title to
jointly with his wife. Supthat the stock has doubled in

the

stock

at

basis is $100 and

a

This announcement is not

important

characteristic

the

of

estate

owner.

Thus

the

there

be

co-

some

$200.

$200,

the

liability

states

there

may

In

also

certain

be

some

saving in state death or transfer
taxes.
In
Pennsylvania, for instance, ther£ is no transfer tax on
jointly-owned
property
of
the
spouse first to die.
For property
owned jointly by two parties other
than husband and wife, the portion of the property taxed is determined

by ascertaining the fracthe death
oossible

advantage

of

a

an

ojjer oj securitiesJor sale

for

a

capital

possible tax
gains.

190,000 Shares

Texas Eastern Transmission
Preferred Stock,

Corporation

5.50% First Preferred Series

(Par Value $100

per

Share)

T.
m,

r m

Price $100 per

Copies oj the prospectus

erty is relatively small.
It may
J>e the desire of each spouse that

be obtained jrom such oj the undersigned (who
ojjer

map

Dillon, Read & Co. Inc.
The First Boston Corporation

Blyth & Co., Inc.

Glore, Forgan & Co.

Kidder, Peabody & Co.

Goldman, Sachs & Co.

T

are among

the underwriters named in the prospectus) as may legally
these securities under applicable securities laws.

Lazard Freres & Co.

™e. Federal.G,ft Tax

The taking of joint title to secuor certain other

nties' real estate-

..

share

plus accrued dividends from August 26, 1952

Sup-

toaCat0Lrbandbandewifempar but^he ^eral^fmp^icalionf^e

tant, to a husband and wife, particularly if the value of the prop-




solicitation oj an ojjer to buy securities.
August 21,1952

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

Stone & Webster Securities
™s

or a

subsequent

pose, however, that the wife had
predeceased her husband. In this
case the cost basis to him would
be no less than it would have
been had he taken title to the
stock in their joint names. Jointownership may result in capital
gains taxes that could otherwise
have been avoided,

tional portion passing at
of the joint tenant.
Annther

until 1951.

maximum cap-

Consequently,

n.°t have involved

estate.

is

cost

sa*e by her at that price would

saving in the cost of the adminishis

provision

of

tration

of

five-year

sur-

deceased
may

this

New Issue

ital gains tax of $2,600 is the resuh. On the other hand, if the
vivorship is that the property will husband had taken title in his
pass by operation of law to the 9wn name <J°ne and bequeathed
surviving co-owner.
Such prop- it to bis wife on his death, the
erty, therefore, is not included in cost basis to her would have been
An

joint-ownership with right of

1948,

overlooked,

value at the time the husband
dies.
If the surviving wife then
sells

did

desirable, in many
at least, for the spouse first

disposition of at least part of the
creased
in popularity.
Probably property,
the
Federal Government, in
its
advertising of the United States
*he Tax on Capital Gains
Savings Bonds, has done much to
The possible disadvantages arisbring to the attention of the pub- ing from the impact of various
As

ceased

seem

nnnPthpip<.c

QnnnncP

that

a

;ne*e nonetheless, buppose that a
husbapd buys securities valued at
$100,000 and he takes title jointly

Corporation

White, Weld & Co.

Smith, Barney & Co.

Union Securities Corporation
Dean Witter & Co.

The Commercial and Financial Chronicle

Thursday, August 21, 1952

.,

.

(658)

10

In the cor¬

that

Missouri Brevities
for the corresponding
six period of 1951, or $1.51 per share.
arid
30, For the 12 months ended June JO,
1952, announced that "approxi- 1952, net after preferred dividends
mately $8,000,000 will be required amounted to $12,629,455, or $J.o/
in addition to the funds derived per common share, which comfrom retained earnings and ac- pares with $9,280,879, or $2.84 p
^
cnials to
depreciation reserve," mare, lor tne previous 12 montiis,
to complete the $14,000,000 con- period.
Co., $4,942,511

Electric

District

Empire

in its report for the
12 months ended June

Joplin,

*

carried
19521954, including the construction of
a new 40,000-kilowatt steam turbine plant. The company has sold
150,000 shares of common stock,
netting it $3,118,500, and has also
established
credit arrangements
with a group of banks, enabling
struction

be

to

program

$5,000,000 on notes to mature
Dec.
31, 1954.
For the six
months ended June 30, 1952, Em-

to

on

District Electric Co. reported
net income of $631,283, equal

pre
a

preferred dividends, to $1.19

after

compared

per common share. This
with a net of $543,485, or

..

%

plus

#

Reinsurance

payers'

dividend rate is -1S

stock

has
now

new

period in 1952.

on

Central

Light

■

^a$re

•

<gi 97

compared

as

,
.

J™eQ30,
$387,942,

The

higher

of

of $130,917,.

loss of $73,-1

a

six

Total assets at June

were

the

of

months

1951.

$19,303,697,

30, 1952,
against $19,-

as

325,707 six months earlier.

added

common1

oer

pre

„
pnmn,nn
$1.11 ™ common
per
against $341,832, or 98
per
share for the same

Seaboard, and Chicago Milwaukee

or

as

cents

■

and

priced

better

On the

than five points.

less

of

quality railroad stocks continued to basis of past history it would apgive a good account of themselves, pear almost inevitable that eventwith individual established divi- ually the renewed interest in rails

period of last year.

year."

per

company

with
same

1952

Fo? the half Vear ended
income totaled

amou
share,

months

the

the

for

840

of

(after $62,-

170 for income taxes)

ced ingl2
Deriod
Total revenues
, .
$6 492 317 as against
the

for

'

six

year,

half

$2.11 per common
ompared with a net

to

dividends,

the

In

preferred

after

equal

$738,089,

first

present

1952 was>

ended June 30,

months

Insurance

&

first

the

reported net earnings

there should be a further gain,
barring a severe market reversal."

12-

the

for

Co.

Power

Joseph

St.

the

of

income

Surety

for

Corp.

.

&

by

decreased

was

The book value of the
from $58.46 to $63.52

rose

share during the six months'

Per

the soundest basis it has
justified by the earnings." Extras been for some time. A continued
-n
am0unt of 35 cents per improvement is expected during
ghare were paid in 1951, as com- the remainder of the year. While
pared with extras totaling 40 cents ^he surplus account may not inper sbare in 1950.
» crease as much in the last half
as in the first half, nonetheless
*
*
*
that

account

$2,887,519.

.......

..

.

Corp.,

company

rep0rted that "this

....

Braniff Air-

The stockholders of

common share for the first
half of last year. Operating rev¬

$

Frank Proper, President of Em-

o

.

Net

during the first

99 cents

responding period of 1951 the sur¬

,

Shoe Co. of St.
Louis, a division of International
Shoe Co., yesterday entered the
Eastern market when it opened in
New York City its first retail
store to sell Winthrop shoes for
men exclusively, thus paving the
way for an enlarged drive for the
firm east of Pittsburgh, Pa. According to Phillip van Kuller,
President
of the van
Kuller
Brothers Inc., of New York, shoe
retailers who will operate the
Winthrop Shoe store, it is expected that the store will do "ap, proximately
$500,000 of business

time to time up

it to borrow from

$1,237,083 to surplus.

ties of $1,326,674.

the company has increased
quarterly dividend rate on the
common stock
to 20 cents from
12V2C per share, the next payment
to be made on Sept. 1 to holders
of record Aug. 29. Mr. Katz stated

The Winthrop

during the three years

out

714,829, as against current liabili-

the

dend
into

periodically moving

payers

new

would

high territory. Primarily

carry

through to the more
It is diffi-

speculative situations.

Public
it is still an investment market, cult right now, however, to visualenues
amounted
to
$4,760,355, Service Co.
for
the
first six
proposal to consolidate the two largely dominated by institutional ize just what spark might set off
against $4,409,111.
months ended June 30, 1952, was
companies, with Braniff to be the activity,
and
particularly
pur- such a move.
*
*
$645,305,
equal
after
preferred surviving corporation.
chases by the management trusts.
So far this year St. Paul has
Anheuser-Busch, Inc., St. Louis, dividends of $42,875, to $1.14 per
*
*
*
Such
institutional
accounts
are
not been doing particularly well,
share.
This
compared
for the first half of 1952 reports common
obviously impressed with the rel¬ although it is true that for the
Interstate Bakeries Corp., Kan¬
earnings (after taxes) of $5,548,- with a net, after preferred diviatively high income return ob¬ latest month reported, June, earn¬
sas City, for the 28 weeks ended
319 (or $1.24 per share) as com- dends
of $43,750, of $495,982,
tainable on rail stocks and by the
ings were somewhat ahead of a
pared with $6,619,158.(or $1.48 per equal to 87 cents per share. Total July 12, 1952, reported a net in- prospects for increased dividends
year
earlier.
For the full half
sliare) for the corresponding six revenues were $4,274,435, against come
of $1,159,142, equal after over the balance of this year and
year,
gross
revenues
were vir¬
months of last year. Income taxes $3,823,269. The 1951 comparisons preferred dividends, to $1.58 per
probably in 1953. Such increases tually unchanged from the open¬
increased from $1.57 per share in have been restated to include the common
share. This compared appear likely even if earnings to
ing 1951 period. The company was
the 1951 period to $1.71 per share operations
of Missouri Gas & with earnings of $1,153,183, or not expand further, as many of able to achieve some improvement
10

July

on

merged

crease

from

was

broken

Service

purchased

in

Galley

in the San Fernando
Los Angeles County,

Calif., and construction of a 750,000 barrel brewery will be started
soon

Current

plans

as

assets

completed.

are

30,

June

at

.....

Supply

amounted

compared

$16,153,000,

S
with

month last
increase of l4%. Sales

an

year

ll7„Sm0"ths119 ?

°f h!

1952

$17,355,78.9.

Auto

Tiilv

HnrW

. .R

nq

^3o|S2
ended

3.5%.

July
The

retail

*

*

*

units

,

a

gain

owned

company

of
272

share

the

on

of

,

stock,

offset by a rise

and

Line

sentiment,

investment

as

half

a

ratio.

as

points in the mainte¬
Over all, the operat¬

climbed

ing ratio

full point to

a

87.3%.
St.

substantially in the past
so was quite dramatically

proved
year or

but this saving was more
of over two

42.6%,

nance

Kansas

„n

common

Air

Seaboard

transportation performance,

with the ratio down from 44.3% to

opposed to speculative sentiment,
toward railroad securities has im¬

City, for the first six months

its

in

stock¬

than

That

seveT months $87,496, eQual a net income pe
1952' reported to /U cen s of

in the
31, 1951,

to

holders.

,

Corp„

Cable

whitaker

posi¬

in the

now

earnings

their

of

tion

excess Profits taxes
to $2,097,308, against

and

COme

amounted

$14,164,000 in the same

....

$50,064,846, as against

amounted to

current liabilities of

Western

of

Sales
rn

?"■
to

are

tion to distribute a larger propor¬

Federal in-

period in 1951.

same

carriers

the

the

compared with $36,398,523 in

1,200,000 barrels to 1,600,000
A 65-acre site has been

barrels.

as

Service Co., which was $1.57 per common share, in the
with Missouri Public corresponding period of last year.
Total revenues were $41,977,646,
Co.

Electric

Ground

of Missouri

income

at Newark, N. J., to in¬
the
company's
capacity

1952.

in

Net

Paul

is

a

seasonal

highly

property with most of its earnings

coming in the last half of the year.

demonstrated last week in the re-

Thus, the dollar figure of $797,000

fundjng operation of Seaboard Air
Line.
The $25 million debenture

income for the six months

net

is

$145,569, or $1.16 issue, sold at competitive bidding,
not itself of any real significance.
share for the same had been considered pretty much
for the 12 months ended June 30, wholesale accounts in July of this
This
net
income did, however,
period of last year. Total volume as a test of the market. The com¬
1952, reported a consolidated net year, as agairlst 266 and 2,568, of business was $2,049,803, against
represent a drop of more than
pany got the very low coupon rate
income, after taxes and interest, respectively in July, 1951.
$2,010,778
for
the six months of 3%%. Of course one factor was 26% from the like period a year
#
:!'■
*.
etc., charges of
$12,491,966, as
ended June 30, 1951.
the heavy sinking fund that is cal¬
ago, which is disappointing.
The
compared with $12,046,331 for the
Allied Laboratories, Inc., Kansas
:!:
*
.,'.v
culated to retire the entire issue
one favorable aspect of the report
preceding 12 months' period. Total City, announced that for the first
Shenandoah-Dives Mining Co., by maturity, and reduces the avoperating revenues were $87,058,- half of 1952 sales totaled $6,706,Kansas City, reported an operat- erage maturity date to around 12 is the ability to pare transporta982,
against
$81,958,571.
The 374 and net profit (after taxes)
ing profit, before taxes, of $158,- years.
"Even allowing for that tion costs and there is every rea¬
quarter ended June 30, 1952, wit¬ amounted to $381,376, or $1.23 per
807 for the first half of 1952, com- factor, this is a far cry from the son to
expect that this will con¬
nessed a record monthly output
share, which compares with sales
pared with $197,614 for the same price in the low 90s at which the
of
tinue over the balance of the year.
538,716,000 kwh., as a heat of $7,237,724 and net earnings of
period last year. For the current Income 4V2S (the issue being rewave
increased the use of fans,
$710,911, or $2.28 per share, for
year,
net
after
taxes
totaled funded) sold at the end of last Thus, with the traffic outlook
Union

air

Electric

of Missouri

Co.

conditioning

units,

and other

the

same

*

*

*

*

2,677

six months of last year.

refrigeration equipment.
*

serviced

and

Kansas City

*

compared with
common

per

$110,543.

Structual Steel Co.

bright,

year.
Co.,

Service

American

Despite the greater investment
Kansas demand for railroad securities that

net

of

comparisons

year-to-year
in

half

second

the

year

favorable.

For
City, reported a net loss of $23,- has been in evidence for some
the full year it now appears likely
498
in the first
six months of time little, or no, speculative inigs, be(after preferred dividends) of $7,- outstanding) for redemption on 1952, as compared with a deficit terest has been generated. Appar- that common share earnings, beOct. 1 at the redemption price of
reserve
of $60,364 in the like 1951 period, ently the general public is still far
763,998 for the six months ended
fore sinking and other
$100 per share and accrued divi¬ Ice sales were
June 30, 1952, an increase of 57%
$941,452, against from convinced as to the attracfunds, may run to $2.75.
Last
dends of $1.50 per share.
over
the similar period
of 1951
$1,000,242. Other sales, including tiveness of railroad equities. Low
*
* *;
*
year,
on
a similar
basis, share
and was equal to $2.38 per share
frozen foods, appliances and coal
_
..
,
..
.
.
■
on the outstanding common stock.
Earl S. Katz, President of Katz were $1,613,347,
earnings amounted to $2.10. While
compared with P™ed
This compares with net income of Drug Co., Kansas City, announced
improvement
such earnings
$1,201,073. The sale of plants at having no established dividend an
Panhandle

Co,

Eastern

reports corporate

Pipe

Line

net income

has announced that it will call all

should be far more

of its preferred stock (7,500 shares

g

_

.

rails, and particularly those

Austin
vided

Olin Industries

and

Tex.,

Baytown,

the

500,

and

$100 000

was

for

Ely Walker Dry Goods Com. & Pfds.

the

purchase

of

First National Bank

until

National Oats

Miss.

is

set

A total of $108,525,

Aug. 27.

in the preferred re-

presently

Valley Gas

have

pietely

neglected.

_aside

accepted

Sales

six

Tenn. Production

r

of

have

ended

$1,726,000,

$1,545,000

for

a year

Net

Quoted

May.31,
compared

1952,
with

corresponding

the

earlier.

profit

Lumber

SCHERCk, R1CHTER COMPANY

of

Corp.

ended June

Landreth
Bell

Teletype

SL 456




Stock

Exchange

cents

Garfield 0225

2, Mo.

to

47

as

against

months

L. D. 123

Pickering

the

A

per* common

$727,761,

or

77

share for the same three

last

year.

totaled $325,000, as

Income

taxes

compared with

$671,000. Current assets at the end
the quarter amounted to $3,-

of

case

v.;

'

v

to

in point is

the common

Own Offices in N. Y* C.
R.

engaging in

is

Boland

there

company

holdings

from offices

that

a

to

land

large tax settle-

ment is imminent and that

the re-

bate will be used to pay a

sizable

dividend
,

.

on
..

the common.
,

.

Mr. Boland in

the

for

past

was

First

the

syndicate

manager

Guardian Securities

Corporation.

that the

has found oil on its
or

St.

been rumors, so

have

completely unfounded,

at 30 Broad Street.

c,

.

„

.

John R. Boland Opens

Paul

stock of Chicago, Milwaukee,
From time
Paul and Pacific. "
~

quarter

30, 1952 was $448,516,

equal

cents per

Building

St. Louis

stock,

calculated to gen¬

real enthusiasm for the

the securities business

time

the

for

share,
Member Midwest

invariably failed

St.

Muehlebach

far
—

a\m0$t

erate any

^

^

George

months

were

period

Wagner Electric

Sold

in

could hardly be

u

.

,

.

..

individual issues the spurts have
generally been short lived and

Brewing Co., Kansas City, for the

Stix Baer & Fuller Dry Goods Com.

—

occurred

h

.

com-

Where specu-

John

Scruggs-Vandervoort-Barney Com. & Pfd.

Bought

almost

been

policy,

preferred

be

tirement fund.

Moloney Electric Class "A"

•

Tenders'will

stock.

pro-

$207,-

with

company

Still the
,•

f,.cclv

J. D. Goodman to Admit
PHILADELPHIA, Pa.
D.

Goodman & Co.,

Joseph

Street, members of the New York
Stock

Exchange,

on

stock continues to trade listlessly
in the low 20s, about midway in admit Edward C. Fay,
the year's relatively narrow range

—

1528 Walnut

nership.

Sept. 1

will

Jr., to part-

Volume 176

Number 5144

.

„

.

The Commercial and Financial Chronicle

(659)

TV Inventories at Lowest Point in 18 Months
D.

Ross

Siragusa,

market is

President of Admiral

Corporation,

Economy Is Demonstrating
Its Tremendous Strength

says

longer plagued by surpluses and distress

no

Our

mer-

chandise.

*

By HARRY A. BULLIS*

-

According

to

statement

a

Denver

of

Ross
D.
Siragusa, President of
Admiral Corporation, made to 400
domestic
and
international
TV

after

Aug.

on

r

the

at

head

now

their

lines

He

said

have

really

been

no

sets

inventories

Admiral distributors

are

of

in

dealer.

per

The

all

value

inventories

in

shape

excellent

also

only one-third
units they had last year."

that

sense

of

was

no

of

Yet

with

of

dent

TV

lion,
four

over

or

have

sets

old

with

less.

Only

years

14 inches

mil¬

have

or

the

increased

Harry A. Builis

activity

sizes

screen

third,

a

more

of

screens

though

9,000,000 oLthe present

owners

or

business

continues to

at least

smaller than 16 inches. Five

the

re¬

be brisk, even

or

set

that

tail

$250,000,000 will be sold

one-half

in

been

non-durable

have

to

been

has

rather

than

high incomes. They have

spending in accordance with

2%

30,000,000 TV sets will be sold in

goods and

pointing out that 28 stations have

the

tion of debt.

been

authorized

when
an

the

since

freeze

July

lifted.

was

"I

1,

ket,

in

means

8,000

sets

virgin

a

sold

were

least

at

while

years,

replacements
families

000,000

the

five

units,"

their

the

and

will

Mr.

newly-

exceed

Siragusa

7,said

in conclusion.

Defense Jobs

on

the

H.

Dillon,

Construction

President

Men's

of

and

quality of
taxpayers have

ing

on

letter

ing

received

organization's

from

one

members

supervisory post in the

a

of

hold¬

lief from present

-

"On this job natives

salary

which

is

paid

are

have

ceal.

a

under

lars

one

foreigners
States, and
pains to con¬

scorn

United

they take

no

Even Air Force Officers

that not

paid

base

one

are

French

and

built

Banks

repair, and

for

outlays

than

we

much
liquid
enough money
both private and

financing

public undertakings.

our

Korea,

in

some

will

be

than it

a

at

its

In

no

economy

it

more

in

Above all, we Americans
a

unique

trails

position

toward

to

blaze

unusual

obligation.

years

In

us

the

should

we

increases

in

Population
There

children

under

tnan there

an

next

raise

standards

ductive

third,

a

controlling

stricting

same

consumption

civilian

more

by

and

power

time

same

goods,

producing

Business should be

defense
business

too,

defense

our

needs.

standard

of

re¬

but

—

at

Part
the

of

an

Annual

address

Meeting

by

of

Mr.

the

Common

of General Mills, Inc.,
mington, Del., August 19, 1952.

Wil¬

outlays
be

moderate

a

to be

an

vigorous, dynamic and solv¬
We have

era

of

General

the foundation

continued
Mills

progress

is

79,000 francs just

for

support

of

preparing

"They

sending

are

men

here

of

from France with 90-day contracts
who don't know- a thing about the

work,

but

contract

they

have

that the

it

in

company

Two With Inv. Service
to The

DENVER,

this

living,

Financial

we

and

joined

Colo.

the

John

—

Chronicle)

T.

staff

William

try to get
the

tell you

tion.

I

any

of

Investment

Service Corporation, 444 Sherman

revenue

through

a

There
in

our

are

many

economy.

they look to

buoyant forces

This is the

With Hamilton Managem't
(Special

way

to

The

As long

(1)

as

Financial

DENVER, COLO.

me:

incomes remain

Gray

is

high, the high demand for housing

ment

will continue.

with

Chronicle)

—

next

30 days!

they just
can't

came

fire

They
for a

them,

even
vaca¬

even

foreign air base

Street.

Corporation, 445 Grant

such

work

would

exclusively

by

firms

The

association

cians

who

of

American

taxes

is

this year,
because it cer¬
tainly would dig in against the
grain knowing that I myself was
paying for this kind of racket."

working

other

coun¬

workers.

on

a

lifetime

that

firms.

predicted

are

cur¬

that

if

are

out of work by

40,000

to

September 1, 1967, inclusive

To be

guaranteed unconditionally as to payment of principal and dividends by
Chicago, Milwaukee, St. Paul and Pacific Railroad Company

Priced

to

yield 2.15%

to 3.30%,

according

to

maturity

Issuance and sale

of these Certificates

are

subject to authorization by the Interstate Commerce Commission.

HALSEY, STUART &, CO. Inc.

With Burke & MacDonald
'

(Special

to The

Financial

Chronicle)

R. W. PRESSPRICH &. CO.
•

KANSAS

Degen

is

CITY, Mo.—Harry P.
now

associated

WM. E.POLLOCK

with

Street.




$133,000 semi-annually March 1, 1953

1953.

-their

eyes

mature

current

continued,

policies
would be

Mr.

Burke & MacDonald, 17 East 10th

own

To

...

approximately

tries," he added.

"They see with
that the foreigners

/

(Philadelphia Plan)

It*

rently engaged in such work.
Dillon

Equipment Trust Certificates

career

foreign projects for

and women

men

3Vs%

a

construction

estimated

183,000

letter is

of

is

Equipment Trust, Series QQ

construc¬

foreign

make

.

nationals

and Pacific Railroad

performed

voluntary
membership, mutual welfare or¬
ganization composed of 10,300 con¬
struction
specialists and techni¬

they lie down and take a nap. I
hope I don't have to pay

and

be

foreign

and

tion

really

<bor

Chicago, Milwaukee, St. Paul

construc¬

policy announced by Secre¬
of the Air Force Finletter
early this year under which all

if

According to Mr. Dillon, this
typical of dozens he re¬
ceives weekly.
"They are filled
with
disgust and anger at the
U. S. Government policy to fire
all Americans from their jobs on
foreign defense base construction
and replace them with native la-

Asso¬

August 15, 1952

FREEMAN &, COMPANY

"

&.CO., INC.

THE ILLINOIS COMPANY
"id

McCORMICK&CO.

Arthur W.

Hamilton Manage¬

tary

their

work out of them

the

Men's

demanding repeal

G.

Spudic have

$3,990,000

tion

cannot

lay them off before their 90 days
are up, and
they must have a 30day notice at that. Then you just
for

Construction

The

to

share in that progress.

broadening of the tax base.

'accomplishing the job

ciation has been

for

and

of

care

Given

the

on

will continue

our economy

seven.

his kids.

if

Street.
needed

and
are
'falling apart.'
Alongside such reports the pious
mouthings of our Defense Depart¬

ment about

and

decline

5% affair.

a

that

Only a day or two ago one- at least expense and with great¬
of my men was given a check for est
efficiency' turn one's stomach."

Then, if

off

However, I believe that,

the

substantial amount and still raise

the

Builis

Stockholders

an

more

at

should be able to reduce taxes by
a

taper

may
say

Baker

higher

This

good for at

months.

capital

there

whole,

sufficient-

material to take

12

outlays

(Special

military

10 years ago.

population insures

least another

ent.

inflation—not

purchasing

more

of age

increasing demand for food, cloth¬

in

pro¬

strong defense.

stop

can

years

our

expanded

capacity, and at the

time pay for a

We

by

our

increasing
55%

ing, and other consumers' goods.

recession,

living

five

were

increase in

is

are

new

prosperity. We have before
five

in

are

undreamed-of

an

(8)

rapidly.

our

spending and lower
capital expenditures.

there will

upward thrust in

from

because I think
forces

operating expenses.

con¬

believe

I

of less defense

three years earlier, in

probably be
the

spending

1952-53

1949-50. After this year

the

On

by producing and consuming

flexible,

billion

$45

the out¬

economy are sufficient to counter¬
act the two downward pressures

production.

defense

basic

no

over

future.

for the next year,
that the
buoyant

tremen¬

economy

see

optimistic.

am

is

real strength, We

year.

least

was

the

I

and

for

although they have heavy current

can

re¬

increasing at the rate of

billion

for

I

pessimism

worse'

of

whom has less than two children;
some
of them have as many as

a
ex¬

is

'even

are

to

now

have

There

west

firms

bases

keep

our

can¬

economy

again

potential

has been

$15

*

German

to

construction

of age.
supervision sev¬

natives, not

the

operating
condition despite millions of dol¬

18 years

I have under my
eral hundred

level,

(5)

-

business will continue to be good

high tax rates.

American

Since

of the Rhine River is in

American is equivalent to approx¬
imately four natives in produc¬
tion.
They also pay a dole for
each child

the

reporting

One

roots

grass

and

for

which

approximately

one-third the American rate.

at the

contempt

con¬

struction of U. S. defense bases in
Morocco:

right to expect
They also

a

we

vigorous, and dynamic.

American

work

look

trary,

in¬

on

increase

profits until there is

dous

their defense bases.

see,

declines
great

any

Therein lies

tion, has made public the follow¬
the

price

demonstrating

cannot and will not do the amount

Associa¬

of

expect

must

James

earnings

taxation and partly because of the
effect

for

reason

order to utilize

have
de¬
clined, partly because of increased

The

construction post in Morocco.

reduc¬

or

ventory values. However,

James H. Dillon, President of Construction Men's
Association,
releases extract from letter of a member
holding a supervisory
i

they have added

investments

Industrial

net

High Native Labor Costs

and

savings. Those savings
potential payment for durable

are

not

Giles

needs

their

to

that

annual sale thereafter to

formed

mar¬

have

set.

one

next

cover

families

convinced

am

average

"As

in

set-owning

than

more

example of what the arrival of

television

of

degree

capital.

the economy.

However,

in durable goods. People continue

The FCC, under its new leader¬
ship, according to Mr. Siragusa, is
doing a magnificent job of thaw¬
ing the freeze on new TV stations,
.

levels may en¬

capital

out

past

There¬

year.

10,000,-

surveys,

sets.

wage

pect.

quarter

the

fore, it is evi¬

or

manufacturer's

a

greater

military expenditures. Barring all-

on

each

ago

one

than

more

out

every

had

shown

High

war, we may expect defense
(6) As soon as defense spend¬
significant trends. spending to decline to about $45
billion in 1954, $40 billion in
1955, ing declines, we can reduce taxes.
ing spree and and $35 billion in 1956.
For corporations, lower taxes will
has stayed on
Capital expenditures of business permit lower prices without re¬
a
fairly even also will
probably start to decline ducing earnings.
keel. Personal
after this
year.
Many business¬
c o n s u m ption
(7) Most debts are being amor¬
men
believe that this, combined
expenditures with
decreases in defense spend¬ tized
through
long-term
plans.
show
in¬
ing, will have a depressing effect Farmers are not
greatly in debt,
creases
for

sup¬

years

has

TV

new

Business leveled" off after the buy¬

com¬

nearly

nation

"According to

are

of

stability with

economy dur¬

year

this year.

distributors

as

have

now

is

market

"saturated

in the

radios

one-

company's

refrigerator

past

doesn't

it

by obsolescence

radio

be

sets.

more

sixth as high as
they were a year
ago," Mr. Siragusa saicT,~"and ac¬
tually are equal to less than one
unit

the

000

only

whole, the

the

merely

and

example, he pointed

to

family

"Television

ing

in use.

the

posed

distress

saturation

because

offset

an

that

merchandise.

that

exist

now

As

is

plagued by
surpluses and

Ross D. Siragusa

wasteful

was

state-of-mind

a

pletely

the

longer

year

factory and also placed a
hardship on television-appliance
throughout the country.
is

market

a

On the

He

year.

dealers

he

and

a

the

announced,
sold

TV line

new

lion

for

industry by introducing

one

more

for

TV

supplies,

the

only

going to be

over $1
billion, and
people will purchase about 10 mil¬

courage

demonstrating its tremendous potential for production, but it
must be kept flexible,
vigorous, and dynamic. Lists nine buoy¬
ant forces
safeguarding our economy.

are

the nation.

(3) New investments in TV sta¬

(4)

Mr. Builis tells General Mills stockholders
economy is again

expected to be sold

are

said the former practice of two or

lowest point
in 18 months.
Excessive

KFEL

Approximately

Mr. Siragusa also told the dis¬
tributors that Admiral will spear¬

television

are

station

air.

Toll roads
across

tions will be

Chairman of the Board, General
Mills, Inc.

there by the year end."

15,

oughout

industry

the

on

50,000 sets

i nventories
t h

television

went

distributors

a

in the first two weeks

area

(2)
built

11

McMASTER HUTCHINSON &.CO.

*

The Commercial and Financial Chronicle
12

.

Thursday, August 21, 1952

.

.

(660)

Connecticut Brevities

$

*

Network

profits tax amendment.
Refunds are estimated to increase
1950 earnings from $4.14 to $4.48

16>

*

begun

\

of

Corporation
for a second

hull

the

build

will

Shipments of Plastic
Products Up Sharply

*

Dynamics

General

—

*

Ji;

has

Announcement
•

*

of

u

*

*

r.

been

^-iu

made
^

*

receipt by A. C. Gilbert Comof
oi

nonv

pany

contract
contract

government
government

o

a

amounting to $1,360,996 for fuses.
!,!

*

of

necessity,

amortization

tax

day's work

a

In real

exceeded

.n

Coatll?gs &

figures

the

Plastic

,

19

Aug.

rnao.

to

according

.

,

,

released

$16

hire

to

most

A

new,

Mending

by

_P

,

The

Association

pilm

..

one
invest-

any

business

ing

in

in

the

wltment

Loeb?

SurvivaL' Mr

fundamentals

lmportant

in
the most

Undoubtedly

book

the

Rockville.

will

engage

and

burling.

ployees

'■

Hill

The

Most

of

formerly

were

.

,

Aimnc.t nnbndv

&

speculation is ieaiiy and

invpefmpnt

or

ma-

reallv keen

ran

consider

colution

he

said,

two

tvnes

level,

shinmpnts fnrsthp

age for

company

mending
its

em¬

with

the

the first six months of the

year.

Shipments of plastic-coated
terials

Association

by

ma-

members

and cooperating companies for the

half

of

1952

Aspinook

Corporation hasen¬

an

larger profit

broker who fills

a

ment

order

the

on

invest¬

an

Stock

Ex¬

„

xne wiuiuai t unas adyemsing ana salesmanship are
reaiiy
m
really periorming a service in

bringing the advantages of corpoxation share-owning to the attention of

great many people who

a

never

heard of it before. As

investment these funds
a

first

a

rather

are

good start. The

ing shares he gets

nn

However, in

agreement with Wil-

Battle

he rather

expects too much from his invest¬
ment.

In-

For

Jpaiue ror in

,

.

yaras

tne

tor

go

One cannot avoid one's

sponsibilities

by

running

a

'

iirst

nan

more.
We may be near
such a time now. Certainly, if we
part of his capital has avoid a major war that would be

pretty good chance of getting true.

away

with it."

re¬

away

:
J®

any

you

doubling

for

suggestions
money?
Mr.

Have

—

chapter

a

your

on

really part of

notice

you

have

Is

that

Taxation.

book

a

invest-

on

ment?

Loeb

Certainly. That's

-

_

develop the theme."

;

'*>

' ^

jr.®
up

ao ng

worse.

Mr. Loeb—Taxation is

a

you

you

«

iNolbing

A

a

Sets their reports, and sees what
own, and what they are buyjng and selling, and he begins to
want to buy something special for

himself.

funda-

"The

That

start?

is

where

tphHing

the

inlilra

Investment

Battle For

hnftlrs

Sur-

vival" and begins buying invest-

make that counts, but ments for himself instead *>f havkeep. "Take home pay" ing some one sell them to him. -

is what union

labor

nponlp

rnimt.

xr.—

t

*u.-

the

same

trusts and

investor,, looking

»

t

remarks

on

in the book

the

and

table. -But

funds

at

i_

think I re-

is.

average

Mr.

Loeb, 1 see you have a chapter on

.

^

-

av-

H
£?,h- k2
aa jrust ne

h

_i

_

It

that if

X'

^>ls ^^!?n..1^borhpeo.pi? cou.nt- Interviewer-Yes, I
see and I think it
about time inr-,-member readjng your

lets

—tWell,

interviewer

course

tries to do better than the

vpstftr

about, rnental part of investment. It isn't

book's

the

really •: what '

of

they

Interviewer- -I

interviewer

ot

one

sets buying

ooHing

^

a

is perfectly true

determinedly and intelligently

However, it takes 192 pages, a few^- what
'9nRnfl- charts and one • table'to begin to what

4393yards^for^h^lfrs° ha'lTTf
fwn

there are times when things
the other way and money keeps

ever,

;v€ount

itsplants in ticut, and Adams

good valiie.

a

many cases

individual effort and initiative.

22
1009 793

were

*

'

tered into

can

adver-

a"d selling such securities

at a

approach

an

"The

in

011x11011 "J

another

it

nut

to

tably loses, while the man who
to double

first
>!t

Funds

more on

way

0ut

satisfactory

a

build-

Co.
*

Mutual

great deal

a

.

,

PrP.,.

June shipments forsfhe two types
of materials were above the aver-

Hockanum Division of J. P. Stev¬
ens

today and surely the

because they make a

than

dook. unaouDieaiy, uie must Wlth them j have.tried to make
important IS the thought that what ji ogqv to understand the nroblem
np£nle rau speculation is reallv
y
"naerslana ine proDiem

at

begun

Hockanum
has

textile

in

are

popular forms of

•

terials and all-plastic sheeting are

,

Stone

Invest¬

momKovc

engine ing orders for plastic-coated

*

company,

most

selling

spend

ting away savings they not only

Association, ine safer than what most people call

u

ciation members and cooperating
companies who represent a sub-

5-year

for

Company,

the

and

Mr. Loeb—The investment deal¬

memories and they think judging

*

Funds

They certainly

advertised.

ers

from recent experience that money
is always going to buy less. How-

*

way

Battle" For *afe

Whitney Division in East
Paul F. Johnson, Secretary of people think are gilt edged. Burand used in production the
Association, stated that ac- ton Crane, who read the book from
cf aircraft engines and parts.
On cording
to
member
companies, cover to cover, put it this way:
July 31 announcement was made current inventories are somewhat "The man who invests for a small
of receipt of a new government low.
Both shipments and incom- safe return on his money inevispare

good

a

right

a

Pratt &

$6,812,368
parts.

the

from them.
Mutual Funds are a
investment, ur to put it anotnei vestment Survival."
some 0f the types and kinds
lazy man's investment, and the re-'
.
...
o£ "investments that people
call
Interviewer—With the high cost --j.
stantial majority of the nation s speculative because they seem to °.£ Ilv>ng we must be in an iniia"] tfte lonS run can only be
average.
output of plastic-coated fabrics, invoive the greatest risks are ac- tionary period now?
Most of us want to do better
all-plastic sheeting and pyroxylin- tually safer and iess, risky than
Mr. Loeb—We were up to a than the average, and that takes
coated materials.
f
certain kinds of investments that year ago. Most people have short

nil..

purposes

of

anyone

bricklayer
change. The Mutual Funds selling
for a day. It may cost only $12.
price includes some money for
Or then again more likely it will
"merchandising."
That's
just
a
cost $20."
That's the end of the
term for a salesman's commission.
quotation. If the cost were $20,
7
~
"
^
Aptnallv
IVio
TVTntnol
j
exactly

Hartford

order

give

Mutual

of

investment

future. But when it comes to put-

there

to

thinking

Trusts?

ment
one

and they want to keep safe for the

Interviewer—Is

taxation, and I think

Interviewer—What do you think

The

fluctuates.
In
it surely will not cost

at

about

life

shortened

slightly

in¬

minimizing their taxes and
paying more than they should.

not

That at least

interview.—EDITOR.

the

edited

in

are,

^^°st nobody can really keep up

of
$1,800,000 which will be
on
new
facilities for the

spent

start

bricklayer

money

later years

><

else

one

little differently.

a

of

.

very

;p<?nprtjveiv

of

40%

value

There

angles to

many

yards and 2,080,880 square yards,

1^52

nf

q

certificates

permitting
for

it works

Survival"

Stock Exchange, exG. M. Loeb
pounded,
p u U It, u, e u,,
among other things, his views on it would be inflation.
If it were
investment
Mutual Funds and $12—deflation. The investor has
their place i<n the field nf invest- to think of both possibilities. Most
inn* in fho Held of
Dossibilities.
ment. The following is not a pre- people will pay storage and incise transcription but an outline surance for putting away things

report covers shipments of Asso-

additional

2

■1^

the New York

ojf

th^

United Aircraft Corporation has
received

do

for the $16 he saved.

Some

him, and he
a

is the ideal situation.

of

$16 and

some

hire

to

paid

siIf f ! Survival,
HnS of 1951 hv 1 901^4 linear
Mr. Loeb—There are quit
nod nf i qcji
by 1,201,354 linear

by General Electric.
*

time

Per¬

future.

the

to

was

they

buy another

about

lays

man

saves

house for

a

to

buyer pays a little
want others to keep their savings
high it is true, but he doesn't pay
to pay them interest or
more than he should,
considering
dividends and even a profit Acthe effort it takes to educate him.
tually, inflation times seem like
On that basis, if he buys the lead¬
good times but they are not really,

atomic-powered submarine at its
Groton plant. The engine is being
built

"A

want

like

that

at

■liiliaH

E. F.
Hutton & Co.,
Members of

and

cranes

build

to

a

Sur¬

vival," Gerald
M. Loeb, partner

may

would

Invest¬

ment

for

it

day he

1iu

book entitled
Battle

a

on

capacity on orders for the Signal note in the amount of $4,000,000.
Corps and for commercial custom¬

Division

this:

on

invests

concern-

for

*

has

Aug.

"The

$3.45 to $3.93.
Construction

Boat

bears

"Public

ing his recent

share and the net in 1951 from

per

hoists. The addition
will contain 140,000 square feet of
floor space. In order to finance
construction of the company's expansion program the $2,125,000 of
O 74 70 11UICB held vjj j. *
3%% notes jiciu by Prudential Inno
debt or preferred stock.
The surance Company of America have
company continues to operate near been refunded with a 20-year 4%

Electric

something from the book that

you

haps in 10 days he

July 1, 1952 was the expiration new plant addition for Manning,
for the option warrants of Maxwell & Moore at Muskegon,
Wire & Cable Company. Michigan, for production of heavy

The

serious

a

to

ter-hour

Plastic

*

think they should make

brick all day and earns $16.

date

*

Corporation

great

a

vestment and

know something about
Radio what inflation means. Let me read

on

someplace else.

went

and

profit

a

after

there is enough about the subject
in
"The
Battle
For
Investment

Affairs" quar¬

*

ers.

over

at

delusion

tax

fact,

high.

are

their

*

permitted purchase
of
10,000 shares at $6 a
share.
Of the total 9,167 shares
were taken up, bringing the outstanding capitalization to 108,667
fcliaies Ui
shares of common stock. There W
cuiiiiiiun SIULIV.
is

given

of the stations of the National effort

Broadcasting

and reductions for 1952
1953 as a result of a recent

10%.

warrants

interview

an

many

excess

is available. The new rates involve a reduction of from 8% to

These

Thinks stock prices

and

gas

*

a

home

one

National Broadcasting Corporation,

over

Partner of E. F. Hutton & Company, expounds
down in his recent book, "The Battle For Investment

two years

natural

*

given

Survival."

refunds for the past

ceiving tax

anticipation of the arrival
gas in the state, Con¬
necticut Light & Power Company
has filed with the Public Utilities
Commission a new rate of schedule * to" be" effective when "natural

interview

ideas set

In

In

of

old

the

Gerald M. Loeb,

Bridgeport Brass Company has
announced that it anticipates re¬

product development program.
*

their
often

In

part of the coun¬

one

try to the other found that selling

tax purposes of

plant modernization and

with the

from

move

And the Present Market Situation

55% of $2,495,000
tion has obtained a loan of $2,500,- of the cost of the new electric
000 from National City Bank of power facilities which it is installNew York.
In addition the com- ing in connection with the new
pany's Canadian subsidiary has generating plant to be constructed
repaid a $550,000 loan. The pro- for Hartford Electric Light Gomceeds will be used in connection pany in Middletown.
Corpora-

Hardware

American

cently, when people who had to

Inflation, Personal Spending,

"

Stockholders
meet to vote

on

the proposed sale

of 1952 as compared to 17,593,486
^

in

the

Mr. Loeb—You. certainly are an

made from, buying

a

stock and

period to™**' "°

comparable

M_

much

Loeb

_

cDending

have

ran

to do with

investment

f„

more

some Coun-

by September
to

involve

more
jr_.

v

Whitman

has

stated

its

intention

to continue operation of the plants

management"868
management

oz- and .under) was shipped in the

1951>

^

a

certificate of necessity per-

mitting

5-year

o

in

lifei yo°u

doesn't

make

are
any

investing,
difference

tax than on the same amount of
wages or interest or dividends.

the first half of whether you bury coins in the Us^atouthal£airmuch tat in
coatd
tiIs
ground or buy a stock or tend or many
the savmgmewn

employees or 277;316 "yards in
Custom

x

amortization




for

>

j

n.oma

put it ma mortgage or a savings

.

j

^ or 918,034 yards m 1952

Connecticut Power has been issued

JateV

first half of 1952 compared to 2,- It

against 937,637 in the

as

compar-

able six-month period last year.
■

-

bank
body

That's why I think everyought -to

portant
Many

Members New York Stock

a

&

CO.

Exchange

something

about investment. As a matter of
fact, doing something to prevent
financial

CHAS.W. SCRANTON

know

worries

keeping

as

great

were

of

their

at

many

times

ically, physical
worry

at

over

all

as

irn-

health.
that

good

doctors have told

ailments
from

almost

is

me

patients'
not

bas¬

but

money

came

and

in¬

vestments.
; t

g

v

t

f

♦

,

t

Interviewer

about

New York
fUf

-in

—

REctor 2-9377

Hartford 7-2669
'MP(

that's easier said than done.
interviewer—Why

TeletypeNH 194

book.

—

You

talk

"purchasing power" in
Isn't

for most of

that

too

lot

a

your

complicated

your

about

Loeb—It better
own

good.

not

be

for

Everybody talks

"inflation" nowadays and I

trie

]e sayed fOT

foiind

al1

thpir

bv inflation
reverse

ooVinfy<;

After

fvinpH

Httle^f

nut

that

mania gets around and

neoole don't

save

You don't

at all

wealthiest c££e

be the

to

a

in the graveyard, but on

the other

they hand you don't want to be on the
shouldn't be less—there shouldn't relief rolls either. On a personal
Mr.

be

Loeb

Actually

—

capital gains taxes at all

any

because most economists take the

true

income.

Great

in

Britain

Over here

because I

we

see
a

u

one.

that if

proceeds

This

how

much

to

invest

when

they

you
,

only

in

old

age.

On

the

other

hand,

sell your to a greater extent. Sometimes, as

buy

*n England today, for instance,

who
have
saved
their
find they, have mtle to
eventually spend it on. You can't

people

.,

tax if

to

are young,

learning, money invested early can multiply

be

capital gain profit you
.

the

matter,

that

for
may

don t have to pay a
all

basis, everyone has a problem of

and how much to save,
There is no capital On the one hand, you experience
Canada or even in keener enjoyment in youth than

position that capital gains are not

,

Mr.

®Pp!i®

fh

^

the

cap-

gains taxes be less than the
ordinary income tax?

home at

us?

should

.

ital

gains tax

New Haven
.

greater than that. Of course, the
trick is to make the profit and

'

you use

another

developed

re-

-

'mcney

just buy

a new

motor car in Eng-

Volume 176

Number 5144

.

.

.

The Commercial and Financial Chronicle

(661)

land,

for

example,

have

the

money

Money

than

ways

to

lose

can

because

through

you

for

pay

value

in

it.

other

inflation.

It

lose value through the imposi¬

can

tion

of

lose

heavy sales taxes. It

value

think

through
chapter

the

ought to interest

buying one's

rationing.

consider

you

home

own

I

spending
people.

on

many

Interviewer—Do

can

invest¬

an

Mr. Loeb—It all depends. I think

owning

one's

of the real

home

own

is

than

pense

one

goals and joys of life.

However, I have always
ally regarded it more as

person¬
an

investment.

an

ex¬

I have

something in the "Battle" book on
that subject.
On the one hand,
capital

is

mulate
and

ditions
of all

more

with

it

difficult

very

is

well

worth

landlord make

accu¬

high

today's

to

taxes

or

con¬

the

investment

sideways for three

stocks

To Join Truax-Traer

went

and

years

directors

in

company

and
an

will

CHICAGO, 111.—Henry R. Piatt,
Jr., well known and highly re¬

in

1949 started

their

high

prices

now.

caution is

some

Vice-President

I

tion.

another period of liquida¬

This

does

not

mean

that

and

Truax-Traer

Coal

fective Sept.
President of

logical

and sometime this year or next we
may see

15, R.

Bank

in
1920
shortly after - his
graduation from Williams College,

President in

Treasurer

of

Company,

ef¬

E. Snoberger,

Truax-Traer, has

an¬

nounced.

it

Mr.

will

Piatt

will

succeed

J.

O.

as

to what

a

they buy, and will have

uninvested cash

on

hand for

rainy day.

few months after it

a

ized

in

1927.

continue

as a

Mr.

was

organ¬

Westlund

will

member of the board

Peter
the

the

Financial

and

Thomson

Gette
for J.

prior

&

associated

McKinnon.

was

Spiess

partner

a

in

&

(Special

Le¬

where
most

involve

to

The

Financial Chronicle)

thereto

for

Merrill

Coffin

Lynch,

Pierce, Fenner & Beane.

&

Burr,

Incorporated,

Congress Street.

letting the

the government sup¬
the money, it can

of

little

cash

more

buying

than renting. I lean to rental how¬
in the youthful accumulative

ever

to home owning when one's
in.

years

ship

The

comes

Interviewer
time

our

know

Well, Mr. Loeb,
running short and I

is

—

have

you

some

development of the telephone—from Bell's first instrument

system—is

one

years

chapters on bonds, financial infor¬
mation,
sound
accounting,
and
then, of course, all the how-to-do¬
it chapters I didn't think we
could
possibly cover here, but I can't
resist asking about
your chapter
"Travel

on

As

Hedge

a

to

a

nationwide communication

of the great stories of American business. Yet all that has been done

ning. The coming

interesting

will bring greater

progress

is but the

begin¬

than the past has known. "The best is yet to be."

Against

Calamity." Surely, this is getting
little far afield.

a

Mr.

Loeb

because

No, it really isn't,
explains in the book
—

it

that there is

great deal the lar¬

a

investor

ger

do to his benefit

can

visiting such places
D.

C.,

don.

Texas

But I

pick

book

chapter

as

trip

to

take

a

Lon¬

or

afraid if any wives

am

this

up

this

Washington,

as

Canada

or

they

will

use

argument

an

buy

some

to

new

clothes and that is not really what
I meant.

Interviewer—What do you mean
"Pitfalls
for
the
Inexperi¬

by
**

enced"?
Mr.

'

Loeb

Well,

—

there

are

a

great many pitfalls and I tried to

point out the

more

common

ones.

A great deal of grief can be avoid¬
ed at. the start by dealing

only

in

active

the

listed leaders.
for

and

best

known

It is alright to go in

special things later when
really knows more about it.

more

one

Interviewer

qualities of

What

—

the

are

good investment ad¬

a

visor?
Mr. Loeb—I have gone into that
in the book because investment is
not

an

easy

avocation. The

Building for Tomorrow—Bell Telephone Laboratories
fountainhead of progress. There's
ways to

a constant

provide the best possible service

at

are

search for

a

new

the lowest cost.

Here,

Telephone Users Dial Long
can now

million

dial their

own

Distance-InEnglewood,N.J.,they

Long Distance calls

telephones in and around

too, telephone know-how is applied to electronic
projects for the armed forces. At Murray Hill, N. J., are

Methods and

equipment

2500 of the 7000 members of the Bell Laboratories.

extending this

new,

to coast.

Shown above is

to any of eleven
dozen cities from coast

small part

a

faster

a

are

of the dial equipment.
being studied here before

means

of Long Distance calling.

person

who makes it his life's job can do
better just like a doctor or. any

professional
than

man

novice.

a

do

can

better

Investment

is

the

kind of business where experience
is worth a great deal and knowl¬

edge

and

contacts

worth

are

a

great deal. On the other hand, it
is certainly more difficult to do

something for
it is to do

toss-up

whether

dividual

the

else, than

and

day

with

in

only

a

in¬

average

all

engaged

work

own

someone

it for one's self. It is

his

spare

time to devote to investment

can

do

ex¬

better for himself than

he

pert

hire.

may

probably

varies

The

with

an

answer

the

indi¬

vidual and the expert.

Interviewer—Mr.

ask

you

your

Loeb,

can

I

opinion of current

investment market conditions?
Mr.

is

Loeb—Certainly, though it
to sum up in a few sen¬

hard

tences.
Most

Let

of

me

the

dustrious

naturally
things up. So
are

are

this
are

work
mcst

at

way.

an

in¬

people

building

of

the

time

individual .stocks, that

advancing because of improv¬

.factors
every

New

Skyway Spans NatiOIU-The radio-relay station

Rose, Nevada, is the highest
tinental
towers

affecting them.

However,

programs

so

again

often,
in

such

1937

as

and




in

1946,

1929
un-

Each

at

Mt.

the Bell System's transcon¬

radio-relay route. This is

favorable

or

on

one

of 107 stations

or

which

other

ing conditions

and

it

we

optimistic

and

there

put

time

and

relay telephone conversations and television
along microwave radio beams from coast to coast.

tower

has four

antenna

horns similar

to

the

one

shown.

All the World Is Near—When
service

The

&

PORTLAND, Maine—Charles F.
formerly local manager
Robert Lindsay & Co. and Nason has become affiliated with

help keep cash for security in¬
vestment.
On the other
hand, in
cases

formerly
Co., Inc.

was

to

plies

under

Degaetano

profit for awhile

a

engage

of Peter W. Spiess

Spiess
of

to

business

Joins Coffin & Burr

with

Mr.

City,

Spiess.

Chronicle)

SHELBY, N. C.—.James S. Le¬
Gette has become

name

Mr.

President

Thomson & McKinnon

York

securities

the firm

James S. LeGette With

Spiess has announced

New

way,

in

1943.

to The

W.

opening of offices at 39 Broad¬

Co.

(Special

happen, because it is only an
Westlund who is retiring at his
opinion, but it is a well thought own
request after 25 years' service
out opinion, and careful investors
with the company which he
joined
will be more particular than usual
some

Peter W. Spiess Go.
Formed in New York

Snoberger said.
Mr. Piatt joined the Continental

upwards, and broadly
serving in various capacities until
garded Vice-President of the Con¬
speaking the shares that are in
1938 when he was elected Second
tinental Illinois National Bank &
the most favor with both private
Vice-President. He became ViceTrust Co. of Chicago, will become
and
institutional
investors
are
near

13

the

serve

advisory capacity,

Mr.

ing the decline of 1946, the market
for

of

Henry R. Piatt, Jr.,

less put the prices

investments lower. Follow¬

think that

ment?
<

favorable general investment

Overseas telephoning started,
provided onlyj^tween New=York and London.
for three minutes was $75. ,Today, from any

was

rate

telephone,

you can

call

tries.

The

rate to most

mum

rate

is

some

ninety other

coun¬

places is $12. The maxi¬

only $15....

Bell Telephone System

443

Financial Chronicle

The Commercial and

.

.

Thursday, August 21, 1952

.

(662)

14

minus

class

Needed: A New Standard
Stock Market

evidence of any let¬

growth in the past several

years.
Industrial plants are still
reporting a heavy backlog of or¬
ders and bank clearings are still

back

in

$148,631,000

from

$263,244,000

six-month period ended June

the

188.5

176.6 at the end of

against

April and 186.5 a year ago.
Value

inventories

of

industries at the
$1,983,500,000
$2,014,400,000 a

consumers' goods
of

end

May

was

with

compared

by

barley.

Exports through St. Lawrence
ports
totaled
191,000,000
of grain, including 132,-

bushels

000,000
other

bushels of wheat.
Ship¬
through
Vancouver and
Pacific
ports
climbed to

of grain, up
the previous

118,000,000 bushels
68,000,000 in

from

year.

month earlier and $1,986,200,000 a

With prospects

of another bump¬
the Canadian
tories were valued at $6*60,900,000
grain export volume may be ex¬
—unchanged from April and up
pected to exceed the figures of last
substantially from last year's May
year, and transportation facilities
total of $528,800,000.
will be sorely taxed to meet de¬
The expanding export trade of mands for its movement to world
Canada shows no sign of weaken¬ markets.

Producers' goods inven¬

year ago.

er

coming

crop

up,

which

imports by
nations." Ac¬
cording to a recent report of the
Canadian
Bureau
of
Statistics,
currency

Canada's

exports

climbed

first six months of 1952.

ascribed to

was

sion

in

a

shipments

to

a

The gain

marked expan¬

United

the

to

Kingdom, Latin America and most
European markets.
While

markets

these

provided
jump
over
last year's comparative six
months
total
of
$1,760,000,000,
shipments to the United States
the main impetus for a 20%

also

were

1he

slightly higher, passing

billion-dollar

second

successive

mark

for

the

Halsey, Stuart Group
Offers

Equip. Tr. Cifs,

associates
the

&

Stuart

Co.

It

rather

is

almost

doubled,

offering, subject to

are

of

approval

the

Commerce Commission,

Chicago,

Milwaukee,

Interstate
$3,990,000

St.

Paul

of the

exports
ume

was

of three

use

certificates,

series

semi-annually
Sept.

1,

under

the

day,

some

is

Street Journal."

Utilities,
which,
of
simple, especially

more

This

for

averages as

own

of

methods

The newspaper

50 years.

some

much

are

course,

been looked upon

always

stocks in the

the

as

bit

a

the

no

up.

Public

etc.,

foods,

turing,

Jones list

or

daily.

country
be

increased
stocks.

more

have

was

listed

been

cially
the

when

This

due to expanded vol¬

espe¬

the

or

Harris, Upham Will

the

Admit Rotnem, Dean

Utility Securities
dynamic growth of the South,

which

likely to continue for at least a year or two longer under
impetus of the defense program, the stocks of four South¬
ern
holding companies have shown good advances since they
were distributed
to the public in the break-up of older holding

.Vi".."-

companies:

-7-;

■

QQ,

Mar.

maturing

1953

1,

inclusive.

1967,

to

Issued

Philadelphia Plan,
priced

are

to

the

yield

I

Increase

Approx,

Present

In Post-War

Revenues

1949-50

Approx.

Period

Low

Price

Increase

96%

10V2
14%
10%

15

43%

25

72

19%

39%

$151
Middle South Utilities... 112
Southern

Company

Texas

65

80

Central & South West..

82

Utilities

.

■

62
106

Ralph

82

19

103

:

their

1949-50

lows

Commonwealth & Southern or Electric Power &
year or two before their breakup.
Part of the appreciation in these issues has been due to an
increase in earnings and part to higher dividends, but the major
gain represents "market seasoning." Following is the, increase
in
share earnings,
the latest interim figures being compared

stocks

(such

Light)

with

Rotnem

Harris, Upham & Co., 14 Wall
Street, New York City, members
of the New York Stock Exchange
other

and

probably have been purchased well
by buying the old holding scompany

All of these stocks could
under

A.

•

as

a

admit
Howard

ship

leading exchanges will
A.
Rotnem
and

Ralph

on

B. Dean, Jr., to partner-?
Sept. 1. Mr. Rotnem has

been with the firm for some time.

W. J.

Murray Joins

Marine Trust in N.Y.G.

1948:
-Share-Earnings.

under¬

Southern

writing include: R. W. Pressprich
&

Middle

Co.; Freeman & Co.; The Illi¬
Co.;

Wm.

Pollock &

E.

McCormick

&

Co.

and

Increase

$1.19

31%

associated

46

securities department of The

Co.,

Texas

&

$ .91

Comoany

South

Central

nois

Percent

1952

1948

.IV--1.23*

Utilities

—1.38
*_ 2.10

South West

Utilities

1.80

8

1.48

,

Joins

CANADIAN BONDS

2.86

*Year

White, Weld

SHEBOYGAN,

Wis. —Wm.

R.

Sachse has become connected with

White, Weld & Co., Security Na¬
tional

Municipal

he

Corporation

Bank

was

Building. In the past

with

Robert

W.

Baird

&

Co.

1949.

was

handicapped by the prolonged drought
which held back earnings during
1950-51, after the, excellent
earnings report ($1.28) of 1949. Interim earnings reached a low
of 970 in the 12 months ended Oct. 31, 1951, but with increased
steam capacity (much of it using natural gas as fuel) and plentiful
rainfall for hydro plants, earnings quickly bounced back to $1.19
for the 12 months ended June 30, 1952.
Recently there has been
another drought scare, < with some * Southern states declared v by •
Washington to be in an "emergency"..(entitling farmers to special
aids), but recent rainfall has relieved the situation. Southern's
l-for-16 stock offering in July will, however, dilute share earnings
slightly.
...
•
7 7 7
-7/7 / 77'
7
It may be of interest to compare recent yields, price-earnings
ratios and dividend payouts for the four companies:
-

HUDSON'S BAY COMPANY

Price

■

-

CANADIAN STOCKS

A. E. Ames & Co.

This

incorporated on May
2nd, 1670, may be the oldest commer¬
cial company in the world. Because of
its
diversified
operations,
including
oil development
in Western Canada,
trading and retailing, a continued rec¬
ord
of
favourable earnings
may
be
anticipated.
The
to

incorporated

company,

stock

is

investors

particularly attractive
looking for long term

capital
Details

Two Wall Street
New York 5, N. Y.
NY

on

request.

,

Inquiries Invited

1-1045

Kippen & Company,Inc.
Investment

Fifty Con sir ess Street
Boston », Mass.




-

'

Securities

Established

1922

607 St. James St., W„ Montreal, P. Q.
Telephone UNiversity 6-2463

Current

■
•
7.-.
Yield
Company
•
5.3%
Middle South Utilities—____________ 5.2

;•

Earnings
Ratio

.

,

Southern

Dividend
Payout

12.6

66%

13.9

72
68

Central & South West

5.3

12.8

Texas

4.3

13.8

59

13.3

77%

Utilities

Average for all Electric Utilities____ 5.8%

increased their-dividend
to the public.
Southern
started with 700 in 1949 and raised to 800 in 1950, which has
continued to date.
Middle South began with a rate of $1.10 in
1949 and fas increased this (in two stages) to $1.30. Central &
South West started with a 700 rate in 1947 and has gradually
of

the

above

companies have

since

the

stocks

were

All

rates

appreciation.

rine

Trust

York

J.

Murray has become

with

the

Company
in

its

municipal
of

New

Ma¬

Western

York

City

office, 120 Broadway. Mr. Murray

Mc-

(Special to The Financial Chronicle)

William

New

Southern Company was

Provincial

use

same

methods of figuring.

the

Master Hutchinson & Co.

Government

be

aver¬

is

lists

two

no

stocks

same

on

the Dow

true picture of

a

conditions.

so

to

Many

compiled and most

do not give

market

be

can

Competitive stock market
ages

side.

••

there

certainly the list should
brought up to date.

Dow

giving

in

and published

the Stock Exchange since

longer give a true
and accrurate picture of market Some newspapers group the stocks
conditions for many of the list of used in figuring their averages
65 stocks are no longer stock mar¬ putting them in classes such as
ket leaders
such
as
they were oils, motors, steels, coppers, rail¬
when the list was originally made road equipments, stores, manufac¬
they

day

the

stocks

more

that

which

one

should

list

at least 100

averages

speculative

the

on

averages

throughout

are

newspaper

believes

every

by

This

mostly lower priced and some

are

but to¬

of averages

list

standard

tive

Averages have

Dow Jones

The

in

not

printed

standard list of stock

a

market

mostly selec¬
and higher priced, while the

Jones Averages

recent.

more

used

be

used

in figuring them.

stocks

The

be

to

writer

should

gave

as

time would

and

groups.

being up
well as the
Dow Jones Averages.
The list of This is caused by all three news¬
stocks
used
in the Dow
Jones papers using different stocks in
their
averages
and
different
Averages has not been changed
their

dustrials

day
them

allow

30 in¬
46 cents.

Jones Averages

Dow

All three publish

the

ing

what the market showing the market to be up and
otners showing it to be down, is
is doing as he has a choice of read¬
rather misleading to the average
ing three lists of stock market
stock market trader. As an exam¬
averages published by three lead¬
ing New York newspapers: The ple of this, one newspaper a few
New York "Herald-Tribune," The days ago, published 70 industrials
as
being off 5 cents, while the
New York "Times" and The "Wall

$5,320,000.

Inc.;

j

above but

as

Interim

general increase in

4-2400

and

the averages are printed on the
Dow Jones ticker every hour dur¬

of stock

lists

market averages every

(Mill.)

Others associated in the

rather than to price increases.

WORTH

group

only three groups: Industrials,

course,

days to know just

&

Pacific RR. 3%% equipment trust

reaching $148,300,000.
Most

The

the

for

puzzle

a

stock market trader these

average

Because of the continued

and

Inc.

deficiency, from 2.15% to 3.30% according to
Great Britain's purchases in Can¬ maturity.
ada reached a peacetime high of
The certificates will be secured
$395,000,000, more than $140,000,000 above last year's $254,000,000. by new standard-gauge equipment
to
cost not less than
In the same period shipments to estimated
America

classify each
use

Rails

Popularity of the Southern Holding Company Stocks

In spite of her dollar

Latin

in

appears

Halsey,

certificates

year.

the

stocks

the

By OWEN ELY

during the

of $2,100,000,000

peak

what

trader

The Dow Jones Averages do not

stock market index

be used daily as
throughout country.

spread restrictions on
"soft

of telling

way

each industry did.

can

ing, despite the severe and wide¬
the

stock

of

end

totaled up
given. This

as

averages,

River

ments

held

of

bushels

year

splendid

a

the

at
are

result

final

the

leading stock market averages,
standard list, comprising at least 100 stocks,

the export leaders, jumped
into second, shooting up to

value

earlier, the Canadian Bureau
of Statistics reported.
The index
value
for
total
shipments
was

a

among

of cheques 30, 1952.
In
volume, rather than value,
cashed against individual accounts
during the first half of this year Canada's grain exports are now
reaching a total of 11% above that at an all-time high, reaching 509,bushels during the crop
of the same period a year ago. In¬ 000,000
ventories
of
Canadian
manu¬ year ended July 31. This compared
with the previous high of 471,facturers have dipped slightly in
recent months, but are still higher 000,000 bushels in the crop year
ended July 31, 1929.
than a year ago.
Shipments during the last crop
The May index of inventories
year included 357,000,000 bushels
stood
at 187.1%
of the average
of
wheat
and
flour,
72,000,000
(1947) value compared with 187.3
bushels
of
oats
and
70,000,000
at the end of April and 167.7 a
the

climbing,

and recommends
be adopted

Average

did

Then all

is

out defects in

Writer points

Newsprint and wheat were the
up in the rapid expansion that has largest export items. Wheat, which
had been riding in fourth place
been a feature of Canada's eco-?
nomic

the day.

DALTON

By JOHN

By WILLIAM J. McKAY
no

stock

and

Canadian Securities
There is

plus: sign of what each

or

of

stepped

this

up

to

the

distributed

Texas Utilities, whicn
somewhat later than
raised to $1.28 in 1951, and is currently

present

emerged from the parent holding
the others, paid 960 in 1950,

paying at the rate of $1.68.

$1.00.

company

Judging by the present price, another
the relatively

dividend increase is apparently anticipated, due to
low

payout.

formerly with B. J. Van Ingen

& Co. Inc.

Volume 176

Number 5144

.

.

The Commercial

.

and Financial Chronicle

(663)

lowers

Britain and EPU

Three Types of

By PAUL EINZIG

Einzig, in commenting on Britain's unfavorable balances
in the European
Payments Union, finds the new arrangement,
whereby Britain is to pay future deficits in gold, will cause
additional drain on England's
gold and dollar reserves. Says
position of France is

even

July showed

slight increase—thanks

a

for defense—it

aid

show

is

substantial

a

certain

that

to

the

the

viz:

and

(3) the "Trading with the Trend" School. Favors "trend"

ing

monthly return will
is because the
monthly settlement
European Payments Union for July

Two articles

This

the first

issus

each

on

ators from view. Indeed most in-

beginning

payment of $98.6 million in gold.
Evidently in spite of the efforts to close this
gap
Britain continues to lose gold

Financial Chronicle" illustrate al-

vestors hardly realize this third
group exists. They labor under the
mis-impression that there are only

most

fundamentalists and technicians.

heavily

what

I

through

European

been

telling

her

Payments

association

Union.

become payable
grave

that

in

that

the

the

deficit

has

in gold this drain is causing
in

concern

with

Now

London.

It

is

remarkable

spite of the cuts in imports from the

Continent, the deficit should remain excessive.
When the subject was
repeatedly raised in the
House of Commons
during recent months, the
government hinted at negotiations as a result
of which

the

EPU.

cluded

hoped to reduce its gold losses to
Apart

from

the

con¬

defense material
exports, no arrangement ap¬
pears
to have
been
reached to relieve the

Einzig

position.

*

agreement

with

Belgium under which payment
that country will be made in the form of

to
Dr. Paul

it

On the contrary the latest
official
accentuated the drain.

is calculated

move

■

■

*

,

,

new
arrangement the Bank of England is prepared,
the time
being, to consider applications by United
Kingdom
residents to purchase certain
raw materials from the Dollar
Area
for resale to
European Payments Union countries against
payment
in sterling or local currencies.
The new facilities cover most raw
materials except scarce
goods which are subject to allocation
by
the International
Materials Conference in Washington. Until now
there was a general ban on
transactions with the Continent in
goods that had to be paid for in hard currenices
and were sold
against soft currencies, because such deals entail a loss of gold.

explanation of the change of policy is that the currencies of
European Payments Union have now become hard
currencies,
because Britain's deficit with the EPU has to be settled in

the
..

It

is

gold.

assumed therefore

that the

new

the

can

arrangement will

difference, because the transactions carried

out

under

make
it

no

would

cap¬

funda¬

set

facts

figures

c a

arrangement and their actual materialization. This
that should the EPU deficit be eliminated within the
next few months Britain would
continue to lose
until

the

transactions

arising from

gold nevertheless,
licenses already granted

the

the

"right"

that at the present time the British Gov¬
arrangements tending to aggravate its
In any case the third quarter, and even

any

gold and dollar position.

n

im-

pioper

advisers, who trade with

trend,

fore-

made any

never

as

high

they look

as

stocks

cash,

not

and

about

what

the

Having taken a posithey stay with it until the
trend changes. Why is this profitable?

lower earnings and dividends for

tablished

Because

trend

a

to

seems

once

develop

ex-

an in-

"ext/® and the Dow-Jones In- resistance
predicts a drop of ertia to changing The line of least
in

about 20%

is

dustnals.

odds

And the

situation

same

obtains

with the technical school of

mar-

are

to

the trend.

with

said

five to

be

tinue rather than

The

three

that the current trend will

mentalist,

nearly always in agreement,

delves

into

earn-

ings, present and projected, financial
ratios,-and the like, the

ratio

of

trend

student

itself

other

looks

and

into

the

The

market

lows,

new

lot

odd

cians seldom,

The

But

if

from

these

ever

themselves.

agree,

One

even

a

an

de-

much

is

that

thing

about

of market fore-

as

new

facts

Theory

is

a

market students. And this is

many

all to the

good. It, by no means,
intended
to
depreciate
the

is

works

they

of

did

and

to

say;

and

tend

to

crowd

by the
examine

Qf

and sejl
those which have not
participated

fully in that advance

Therk after

the next reaction, reinvest
funds in stocks which
mar^et

leaders.

means

which

you. and yQU

bave been

In

wjp

you

st0cks

On

the

your

the then

are

general,

bold

have

onto

done

this
your

well

by

w-jj gejj tbose which

disappointing. It

other

means

and then.

now

hand,

profits

your

win accumulate,

Droneir/;
foIlowing

*\in

cet

methods

common.

losses

all

have

There

of

smaU

But

the

when

trpnrt-

this

be

an(J

the

trend

bi

in

serie

smal,

.

c°m
perforct:

swi

follower

will

be ri ht with the market an(J
handsome
reward
for

his

hfs

patience and fortitude.

Charles Weinstein
Weinstein,

partner

City, passed

away on

July 31.

Draper, Sears Adds
(Special

to

The

Financial

BOSTON, Mass.
...

.

Chronicle)

Arthur

—

_

Jl0" a

street, members ot

-5

and Hamilton, for .1 e,
ew York and Boston btoc.c
surprisingly well con- Exchanges,
that at their times the

Dow-Jones

Averages

had

been

compiled for only a few years. It
would be more amazing if the

With
(Special

to

Spencer Trask
The

Financial

Chronicle)

WORCESTER, Mass.—Raymond

original theory had not been imFournier
Tr
is
now
with
in Proved upon in a half century of A.
*ourmer J
a
useSpencer Trask & Co., 340 Mam
_

saying
group

it

they

of successful market oper-

Another

of

group

trend

fol-

Street.

the fourth quarter, is liable to be
unfavorable. The satis¬
faction that may be derived from the
thought that Britain's loss

is at any rate the
gain of the democratic countries of Western
Europe, is mitigated by the fact that the country which is in the
greatest need of such gain is not likely to benefit
by it. The
position of France is even more difficult than that of Britain.
The weakening of Britain's financial
defenses does not mean a
corresponding strengthening of France's financial defenses. The

"

countries

which

Britain's

-

stand

financial

to

gain

strength

is

already

are

therefore

financially

frittered

away

THE

strong.
for no

is

losses

of

indeed

a

gold

EPU continue

strong

-

:

and

dollars

arising from

the

deficit

with

the

a large
scale, the government would come under
in the autumn to insist on the modification of the

on

pressure

ONTHS

stiffening of

British opinion against the
policy of convertibility and non-discrimination which is continued
to be pursued by the British Government
to some extent. Should
the

SIX

FIRST

purpose.

There

present arrangement under which the Western
European countries
have the maximum of inducement to
dump their goods on Britain
for the sake of
collecting the proceeds in gold or dollars. The
campaign against the General Agreement on Tariffs and Trade

cessions

'

conceded

under

the

GATT

arrangement, British exports
would suffer grave
disadvantages through increased Japanese com¬
petition.
There is
ernment

had

a

growing conviction in Britain that the Labor Gov¬
gone

too

far

towards

convertibility

and

non-dis¬

crimination
ments.

respect.
chronic

'

*

through its acceptance of the EPU and GATT arrange¬
Nor has the pre-sent government reversed its
policy in that
Possibly it
balance

of

may

have to do

payments

so

under

difficulties.

the

pressure

of

$3,766,898

Operating Income

Net Income before Taxes and
Net Income after Taxes and

$1,232,776

Contingencies

$

rangement referred to
.

;

materials to EPU

Japanese

above

for

competition.
the

resale

countries will be the

rection of free trade for




some

time

to

last

374,332

Total Dividends:

$

129,799

$

12,672

i

176,482
Pounds of

Gat Sold

141,133,076

SALES AND CROSS OPERATING INCOME for the first six months scored

the Company.

71,725,140

new

highs for

These sharp increases reflect the addition of Rulane Gas Company. Common

dividend payment

for the 2nd quarter

share; the fifth increase in

seven

was

raised from 25 cents

a

share to 30 cents

a

years' operations.

MARK ANTON

R. GOULD MOREKEAD

President

Treasurer

its

SUBURBAN
•

GAS CORPORATION

*

German and

552,526

$

Contingencies

London

is, of course,
understandably reluctant to antagonize American opinion by reversing the policies strongly advocated from Washington.
Never¬
theless, the British Government may feel impelled to do so in
spite of American pressure, should its dollar position become
aggravated through continuous deficits with EPU and
through an
increase of

1951

1952

Comparative Highlights—
Gross

is also

gathering strength. One of the main reasons for the growing
unpopularity of that arrangement is the possibility of Japan being
admitted to participate in it in the near future. It h
feared that
should Japan be entitled to claim the benefit of
all tariff con¬

of

Possibly the
Dollar

concession

come.

"■

ar¬

This advertisement is
Area
in

raw

the di-

W.

_

5apg£? QJStW1S DraPer> Sears &

more

-

in

Chas. Weinstein & Co., New York,

Dow

figures unfold, they always have
new

measured

ag

Industrials,
holdings>

ligt

for

purpose

and recently has been
and refined by

improved

sidering
interesting

Dow

useful

a

many years,

the

sees

original

served

It

techni-

coming; the other

these two classes
casters

market>

Dow-Jones
your

Charles

example of a rather crude
"trading with the trend" method,

operations,

data derived

place.

among

the

are

good

studies volume,

highs to

new

lines,

Tbe f0uowjng rujes are basic
for advisers of the "Trend School"
in directing their clients'
accounts,
After
a
substantial
advance
in

Now it

reverse.

is apparent why trend-traders

market

dividual stocks.

con-

ket forecasters. Unlike the funda-

who

all

working with the
Averages, and apply their tvendfollowing methods directly to in-

is

market

tion

The other fundamentalist forecasts

something

It is to be deplored
ernment should make

n

going to do

not

are

and that investors should get into

cline.

new

have been liquidated.

v

Those
the

to

those who have

are

taking small losses

ranrner

slocks

be

mean

o

published by

giving

basic

beyond

credltHomer

op¬

casts

advance

might

se

of his

some

without

sions. One fundamentalist says that

and

time lag between the
granting of licenses for the transactions

However,

others

conclu-

inability to eliminate or materially reduce the deficit
with the EPU. For if they expected any such reduction in the
near
future they would not have made the
arrangement under
which they are liable to incur
considerable losses of dollars if
by any chance the EPU deficit were reduced. There is bound to
a

t

the financial papers

name in

literature have been

them

11 y

and I

portant contributions to financia

diamet-

draw

^ hav-n
V?

a

.

group;

years.

and

from

technical

under the

*

of

and

ernment's

"

his

take the

reduce Britain's deficit with the
EPU payable in gold.
It remains to be seen whether the
scheme will work out in
practice in the way it is intended.
What is certain is that the
arrangement amounts to an acknowledgement of the British Gov¬

,

?eanj„

trend

school

same

blame,

.

analysts

mental

itself

has only

group

for it rarely ha
a ything to say, since the members of
this third
gioup rarely disagr
among
themselves for any § tended period of time.
is
the
Dunmgan
contemporary

that

two

any

posed

for

to

And

is

able

i

The third

have

years.

r

and

clients for

my

that

of

Commercial

perfectly

to

Under the

"The

constructed,

foregoing is

Then there

of the Aug. 7, 1952

page

of

be

can

mov¬

of them.

gone

the

a

the

accounts.

loss.

necessitated

averages

but

financial

with

vari¬

are

myriads of
ations in the ways in which

(1) the Fundamental School; (2) the Technical School;

figure for

reserve

American

take

the
below, the trend is

down. There

Mr. Fahrner divides stock market advisers into three groups,

next

averages
You

is above that
average, you say
trend is up; if

follower, and lays down basic rules in directing investment
LONDON, Eng.—Although the British gold

another.

or

(or some other) figures,
average them. If the current price

Registered Investment Adviser, Corning, California

difficult than that of Britain.

more

sort

one

10 weeks'

By HOMER FAHRNER

Dr.

employs moving

of

Market Advisers

15

not

intended

as an

PROPANE
Whippany, New Jersey
-*.V

'•

•

offering of the securities of the Corporation.

'

16

The Commercial and Financial Chronicle

(664)

Continued

Bank and Insurance Stocks
By

H.

is

not

tions

This Week
There is

Bank Stocks

—

of

commercial

good possibility that the prime rate on

a

loans may be increased within the next 30 to 60 days.

The prime rate
the

highest credit

is the rate charged to borrowers which have

is particularly important

It

standing.

the

in

banking field because it is the determinant of practically all the
other

loaning rates.

should the

other words,

In

raised, there will be

prime rate

be raised to 3lA% or possibly to 3V2%.

last change in the rate
to 3% from 2%%.

in December, 1951, when it

was

October, the previous change took place and the rate
2Vz%

was

raised

advanced

was

2%%.

to

some

individuals

see

parallel in the current situation

a

and expect that the increases in rates will conform to those of last

The first indication of

a

change in rates may come from the
Should the seasonal

the next several weeks.

over

demand for credit which normally''increases from August through
the

end

the

of

year,

live

to expectations the pressure for an

up

upward adjustment in rates would
■

seasonal

be considerable.

less than

A

rise, dh the other hand, might change the prospect for

increase.

rate

For

watched with
The

more

situation

this

the

reason

next

weeks

few

should

a

be

than the usual amount of interest.
the

at

time and

present

the prospects for the

remainder of the year may be described as follows.
As

banks

of

Aug. 13, commercial loans at the
the

of

Federal

$7,522 million.
loans

this

connec¬

outside

markets

through

Daw|.. wLa J WavU

Reserve

There has been

and

year

the

modest

a

totals

present

million less than at the year-end.

19 weekly reporting

in New York City

system

seasonal

totaled

liquidation of

approximately

are

$411

However, the total is still $594

19540

Between the end of July and

a

record

is

December, last

loans at the New York banks increased
by

year, commercial

$1,191 million and

was

primary factor in the adjustment in rates.

a

Although it is not likely that
will
for

take

this

place

well

as

storage and in-

normal seasonal rise

a

conditions

in loans.

/Jt

Inventories at the retail trade level have been
minimum

and

ably below

a

reduced

outstanding orders for merchandise
year ago.

favorable

appear

to

Tangier is a vital part of the gold since the establishment of the
city's gold market, for through it entrepot fictif in Tangier have

still

gold

coaches in
and

game

profit

disturbance

the

to

world

manages

even

therefrom

without

that

to

visible

the

bureaucratic Old Lady of Thread-

Tangier

exchange

gold

of

The international

Unique
of

zone

Tan¬

gier in northwest Africa, a haven
for
capital from
all
the conti¬

consider¬

are

With seasonal influences exerting them¬

selves, stores will have to add

their

to

inventories.

Customarily

large part of this is financed through loans.

a

in

market

sales

may

Another important seasonal

consideration

is the

fall

harvest.

expected

in

order

to

them through the marketing

carry

In addition to these

boasts

facturers will be busy

three

past

■;,

there should be

banks

of

67

banks, about

sidered

15 may

be

con¬

total

8,696.9

689.5

7,065.4

1,492.6

24,212.0

5,248.0

1,172.0

2,313.0

3.117.0

112.0

a

2.00%

as

there

has

entrepot
Kingdom,

the

United

the

from

next largest sup-

was

regularly in gold. plier, 1,516 kilos. Smaller amounts
came from the Netherlands, South
Swiss-owned, the Societe de Banque
Tangero-Suisse, Africa, Belgium, Germany, Switzissues gold certificates in bearer erland, the U. S. A. and Tunisia in
that order. During the first guaror
registered form. Tangier gold
ter of 1952 the main suppliers of
may be bought with any currency,
the Tangier market were Colomthere being in that zone no form
bia, France and the U. S. A.
A
of exchange control.
In addition
minor part of the gold shipped
to transit
gold, there is also a
from the U. S. A. came to Tangier
market in Tangier for duty-paid
by way of Switzerland and the
gold
called
brokers

One

deal

gold
deduane.
The
Netherlands.
import duty is 71/2%.. Some gold
Gold Units Quoted
is imported for use in the arts;
and other gold on which duty is
paid finds its way overland into market in thr following formsin thedoiiowing
o m
™

with the banks

reflected

New York banks advanced the rate

week

a

longer supplying

and this in turn puts
pressure on

seasonal
are

increase in

expecting

an

ahead should prove

loan

an

This

reserve

on

securi¬

means

that the

funds to the banks

volume, there

<Special

to

The

Schneider is

INSURANCE

ritt

STOCKS
Laird, Bissell & Meeds
Members New York Stock
Exchange

bankers

The weeks

Manager Trading Dept.)

Specialists in Bank Stocks




kilogram, 500

luugrams.

customs

for

of

transit

these

of

some

Go™ns

gold de¬
gold.
The tary

as

banks

of'the

Union

&

now

—

David

this

tax-free

capitalist's

Among them

para¬

are:

d'Etat

with King Mer¬

Co., Inc.

RENO, Nev.—William H. McCarty is with Dean Witter & Co.,
Mapes Hotel.

Mexican

;

(Special

12-5 kilos

on

Rudolph Adds

to The Financial Chronicle)

a

or

tity and one of 5% on smaller bars
coins. Thus with the free-market price at $37.50 the buyer of
12.5 kilos of gold would pay $38.39
per ounce.
The 2% premium ineludes the bank's commission as
well as storage for the rest of the
or

calendar

year during which the
made and the entire

purchase is

next owner For subseRuent
year'
kilogram to
surance.

*

an

ment and is audited

and

VesTS

armua]iy $5 per
storage and in-

cover

Thie bank issues

terhonse

eagles

open-mar-

premium of
larger quan-

annual state-

by Price, 'Wa-

Co

ternouse & UoInterview With Banker
To the

Latin

(Belgium,

managing director of the

Mono-

Greece,

F

th

wUter nu't

^ZchteSer"
a

number

of

de*

centenanos.

Although not

on

du

the Tangier

Paroc

RUSSia'TUrkCy'ChUe and
■

Africaine de Bearer and Registered Certificates
Only

British

of

Africa ciete

West

H i

s

Americano

p a n o

There

Tangero-Suisse,

were

have

Europe.

The

introduced

found

some

in

cer-

1950

market

It is not believed that

in

no

(Afrique)

Tangier.

large quantity

The

During World War II Tangier met
temporarily lost its international part

of

and

some

at

objections

011

the

observed

never

entered

any

was

restored.

During the postwar period much
capital has fled there from Europe
elsewhere

to

controls.

Tangier

gold,

in

high

escape

Some

of

this

been invested

mortgages

some

and

and

real
some

has

been re-exported from
gier to third countries.

Tan¬

not encroach

issue

note

accounts

subject to ultimate re¬
exportation is described as held
in .entrepot

metal

fictif. The banks
by the customs as

earmarked

tomers'

accounts.

Sold certificate the American cus-

^?m,er deposits to the credit of the
gociete de Banque Tangero^ulS£!e a
Chemical Bank and

the central bank's

on

prerogatives.

Bearer

for

their

Thus,

bank

Co., Bank of America Building.

"deduane"

vaults

each

bar is segregated
or

gold bars beare

of at least

0.995 fineness; smaller bars are of
pure

gold.

latter is

Assay of the

de¬

scheide-Anstalt of Frankfurt, Ger-

in

many.

bag of coins

or

certificates

Bearer

the changed

under the labels

"entrepot

"kilogram

hind the certificates

by the Deutsche Gold- und Silber-

cus¬

*lme he airmails to the Tangier

bank details as to the desired purchase. These include information
as

f°

whether

the

certificates

transferable.
many
be

rec¬

gold keep the

Trust Company in New York the
appr°*ln?ate, dollar value of the
S°ld to be bought. At the same

certificates

icates

SANh JOSiD, Calif. — Jean R.
Sepz is with Paul C. Rudoloh &

For Americans who
may not legally
possess gold at
home the certificate provides a

Registered should be in registered or bearer
transferred form, whether they should be held
upon endorsement. Certificates are in
Tangier for safekeeping or
issued for gold bars of approx- mailed to a specified address, how
imately 100, 500, 1,000 grams and many
certificates the customer
12.5
kilograms.
Certificates are wishes issued, and the like. Any
also issued against deposits of gold number of bars of the same type
eagles, sovereigns, napoleons and may be included in one certificate."
other coins
*f coins are bought, a separate
freely

The 12 5

Gold held in Tangier for foreign

ognized

and the
well as

as

elsewhere.

the

Tangier's economic gold certificates, which are issued
dates from 1945, when in various "denominations," are

international control

estate,

Netherlands, Belgium,
Scandinavian countries,

first

the banks.

and

Kingdom,

Spain, France, Switzerland, Italy,.

outstanding in

certificates

bearer

with

are

when

however,

growth

States,

are

ihe United

held in
the United

any

of
the National Bank of
Spain, seeing an Switzerland on the grounds that
opportunity, took
control while they might compete with the nathe other powers were preoccu¬ tional currency. It was
determined,
pied with the conflict. The Span¬ however, that the certificates do

iards,

certificates

PrSently

way of owning gold abroad within
American law, whether in Tangier
the United States, although it is itself or at any other place abroad
entirely legal for Americans to mutually
agreed
upon
by
the
American bank in hold
gold abroad.
owner and the bank.
To buy a

l'lndustrie

is

Tangier bank, the So-

Banque

gold certificates.

tificates
and

et

one

de

issues

positories for such

Paul

2%

SPCxi^ycaentde„Tarsia)-

Cuba
^UDd*

(French).

in

H.

gold certificate

a

in addition to the

ket price of gold,

grams

Bntish sovereigns.

recognized by

are

outside money has

Financial Chronicle)

Calif.

The buyer of
pays,

certificates issued by that instituregularly quoted tion. What follows on that subject
market, one occa- is based upon Mr>
Lichtensteiger's
Banque Commerciale de Maroc sionally
encounters
there
gold replies
coins of Germany, Austria, Neth(French).

of

taxes

Exchange

Teletype—NY 1-1248-49 •:

1
ana

for

market

reflect the international character

and

With Dean Witter

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

(L. A. Glbbs,

many

King Merritt

BENICIA,

and

Bell

are

interesting period.

BANK

120

positories
names

amenities

the market.

Joins

Members New York Curb

free

a

Tangier

character

advance in the prime loan rate.

to be

Bars of 12.5 kilograms (equal to
about 400 ounces Troy).

transit gold, in no other market
American
double
—Tangier bankers state—are the eagles.
formalities so few as in Tangier.
French napoleons.

merce

Thus, with the current money market tight and the
prospect
a

mar¬

Banque Nationale pour le Com¬

to 2%%.

practically free of Federal Reserve support.

of

have

Banco

There is also the fact that the
government securities market is

no

free

a

(Spanish).

when the major

ago

loans to brokers

on

ties other than governments from
2V2%

Federal Reserve is

has

(British).

Also,
generally tight, situation in the money market
borrowing heavily from the Federal Reserve.
were

Paris

legally open only for domestic
trading
and
other places
like

a

These conditions

who

Whereas

the

in*° account,

pays

territory.

ket

Bank

greater need for credit accommodations.

283.3

two countries there are real or potential impediments to be taicen

bank,

_

compared with about 1.80% earlier in the spring.
been

1,904.7

may be held by individuals are
Mexico, South Africa the Lmted
Kingdom, Uruguay Canada and
fictif Switzerland, - although in the last

into

imports

came

regularly injhe gold
France
market; and about half% dozen
as

Banque Beige et
Tanger (Belgian).

Against this background it should be remembered that
yields
on
short-term government securities have been
rising in recent
months. At present, 12-month certificates are
yielding close to

consumption

6,583.6
15,017.0
28,395.1

—

a

(French).

military production increasing,

Entries

(duty paid)

for export

.

With the steel strike settled, manu¬

with

Withdrawals

entrepot fictif

*

(Jan.-Mar.)

1952

a

Banque

rebuilding inventories depleted during the

months.^,. Then,

follows in kilograms:

as

be stored in the vaults chief European transit points and
number of recognized many others. During the last qur.rterof 1951 2,976 kilos of Tangier's
the city.
Of Tangier's

may

of

season.

factors, industrial production is likely to

expand in the months ahead.

been

1952 (Apr.-June)
446.0
1,205.0
25.0
completely free
market in foreign currencies and
Origin and Destination of Tangier posal and at his order may be
gold.
Gold
in
transit
may
be
Gold
shipped to any part of the world.
stored
in
Tangier
indefinitely
Gold moves to Tangier from the Among other places where gold
without payment of duty. Such

nents,

dise.

With crops this year near record
levels an expansion of credit is

been

from Tangier by the rioting
of March 30, 1952. Movements of

Entries into

Year—

Market

have

to

seems

away

proceeds

rather

now

as

free

The

needle Street.

About 20 banks
a

frightened

lines,

Beirut

rise of similar proportions

a

business

year,

1952, gold

June,

kept and

surance.

forbidden

year ago.

the end of

At

in entrepot fictif in Tangier topub- taled 47,754 kilograms, a net re¬
lished on imports and exports. Cus- duction of 1,700 kilos during the
tomers pay purchase and handling preceding six months. Little gold

Careful

.

million higher than the comparable week of

Tangier Gold Movements

611111060 WOIlU

I

charges

of any

trend of loans

cur¬

London gold market of yore,
while now relegated to the side¬

gold
year.

various

into

arteries, then tnrough capillaries.

The

Shortly before that raise, around the middle ofk

converted

Tne

the^prime loan rate at New York banks is 3% and

the talk is that it may

Thus,

a

hue,

with

darker

Thursday, August 21, 1952

..

rencies and transferred.

1948.

At present

from

be

general upward adjustment in other rates.

a

without
gold
if not

entirely

be

'page

Gold Markets in

JOHNSON

E.

jrom jirst

.

and

Tangier

by the

into
or

may

registered

be

certif-

vice

versa, either in
Zurich, upon request
The gold behind the

owner.

fictif/' certificates is at

the owner's

dis-

certificate is needed for each type
of coins, which must be of

com-

mercially acceptable weight and
condition. The Tangier bank has a
folder in English giving particulars of the gold certificate,
Asked what assurance the buyer
has that the gold is where the certificate says it is, Mr. Lichtensteiger cited the audits made by
Price, Waterhouse & Co. at irregular intervals of their own selection. The bank, he added, holds

Volume

176

Number 5144

.

.

The Commercial and Financial
Chronicle

.

(665)
all

gold

behind

tificates
the

always

outstanding cer¬
property of

the

as

sole

of the

owner

certificates

available

However,

to

where

obtained

from

the

the

the

and

latter.

by

British

ance

and

American

about

tensteiger
one

asked.

-

ditions of

Tangier,
cult, the

a

a

the

Since

precise

con¬

war as it
might affect
precise reply is diffi¬

to

war

his

gold

anticipates
from

there

country such as
he added, and not wait
until the emergency ar¬

Canada,
do

should

one

moved

a

other

some

to

one

affecting Tangier,

have
to

If

soar.

so

daily

traded

substantial,
The

free

beginning?",

To this the

gold

is

in¬

moral

1920s.
the

After

franc

of

the

the

in

Canada

not

A

gold

possession
sents.

certificates.

certificate can be sold by
only when the bank is in

bank

a

possible

of

the

gold

it

repre¬

This bank is the only
institution of world repute which
sells gold certificates and which
.

.

.

possesses the

dle the

As to whether

one
may not buy
gold in Canada without
Tangier gold certificate, Mr.

and
a

hold

Lichtensteiger observed:

of

1928-31

national

stimulated

in

cannot

Canada.

outside

It

free

be

bought freely
be bought in

may

markets

and

shipped
to
Canada
for
safekeeping.
If
such gold is to be
disposed of, the
must

owner

ment

to

arrange for

and

sale

country

where

market.

in

its ship¬
other

some

Such

there

is

free

a

arrangements, be¬
ing complicated and difficult, are
usually beyond the powers of an
ordinary individual.
By acquir¬

ing

certificate

a

in

Tangier

rep¬

resenting actual gold the individ¬
ual

is

relieved

of

all

mentioned.
bank

care

the

Instead

takes

owner

of

them.

sale, transfer

tion at any time.

tificate is

issuing

money,"

search

it

as

known.

The

redemp¬

or

In fact, the cer¬

negotiable deposit re¬
ceipt and as such quite different

from

a

ordinary safe-deposit

an

suspension

Frenchmen Hoard

Gold
been

the
to

as

store

a

favored

of

in

of

memory

Digne

School

and

of

School

Paris

Law

Political

Science—new factors have greatly
changed the character and volume
of

gold

hoarding in France.

viously
alent

only

tivated,

gold

away

hoarding

tender.

was

the

among

rural

Pre¬

classes,

coins

For

prev¬

least

who

put

coins

the

hoarders paid the face value and
no

in

more.

Nowadays gold hoarding
France is practiced mostly by

1 Of interest in
this connection is this
editorial
comment
in
"The
Northern

Miner"

(Toronto), July 3,

"...

we

public price

shall

not

main

of

given

uninhibited

the

metal.

true

of gold until the popula¬
wealthiest countries are

tions

the

the

Not

opportunity
until

to
shall

then

buy
we

know whether the
grow'ng confidence
in currencies that the Bank for Inter¬
national

Settlements

something that
question
and

we

should

Canada

can

be

has

speaks
count

put

an

for
with

temporary
no

export

is
The

test,
to

to foreigners
the world

to

safekeeping
or

of

on.

the

opportunity

Eerform a great service
offering to sell gold
y

to

other

here

strings

tached."

aim

of
of




the

ultimate

which

the

the

was

Bretton

Woods

Conference of 1944. In France the

during the first years after
liberation went through an ordeal
by fire; and not altogether suc¬

cessfully.
An

avalanche of radical

devel¬

opments drove the French people
to hoard gold.
Widespread

plan¬

ning

in

nomic

atmosphere

an

and

of

the

holders of franc

imposition of confiscatory

taxation

even

dium-size
taxation
the

to

eco¬

disorder;

depreciations

ruinous

assets;

of

financial

successive

on

of

persons

and

means

tax; the unantici¬
pated stamping of Treasury
bonds; the calling in of banknotes

exchange,

cancellation

followed

of

tries

and

against

by

5-000-franc

nationalization

of

the

notes;

various

indus¬

additional

private

and
at¬

attitude of the money market.

Jittery Market

upon

However, there does seem to be a mildly better psy¬
chological attitude around, but this is not unusual, especially after
a sharp shake out has taken
place, and a modest recovery has been
in evidence in prices of Treasury obligations.
Buyers as a whole
are still on the cautious side and are
quite likely to continue that
way until there is further clarification as to what is going to hap¬

threats

property;

and

made

the Central Banks but these were open market
operations.) Likewise, there have been reports that those high up
in the management of the
money markets, in supposedly off the
record
conferences, have expressed the opinion that conditions
both

from

by

the

economic

monetary

and

standpoints are not as
unfavorable as many have interpreted them to be. More rumors
and reports will most likely be heard because conditions in the
market are right for them. Considerable
might be accomplished by
the word

of mouth

variety of operation especially if used in the
that it has been in the past in money market circles.,
However, these rumors usually do not have much more than a
passing influence upon conditions.
same

way

As

the basic forces

to

important

change

in

tight and there is

from

the money

what

has

going

have any different ideas in mind for the time being.

symptoms
with the

are as

is

much in the forefront

as

Inflationary

they have been, and only

passing of time will there be clarification of these points

of issue.

Such

a

condition

will most

which is not generally

money,

Money

on.

evidence yet that the monetary authorities

no

the government market.

likely

continued tight

mean

force for optimistic attitudes in

a

However,

long

as

there is

as

operations:

tions could be

Prof.

Digne

resort

of

attributes

wide

to

gold

Frenchmen

hoarding. It seemed
only

the

of

means

to

offer

protecting

the

private

assets.

be

making

brought about.

base from which future equilibrium could

a

Nonetheless, it is believed

in many

that the market for the time being will not do

cessful in

working out

trading

a

quarters

badly if it is

suc¬

within the limits that have

area

H.

Sept.

on

On

the

date

same

partners,

will

partners

in

Harold

become

the

Despite the

prior to the Law of Feb. 2, 1948.
When it

comes

ernment

is

to taxes and

regulations

the

perhaps not the

gov¬
French¬

most law-

abiding person in the world. The
long Nazi occupation during the
made

and

evasion

of

tinued

through the period of post¬
instability. The evolution of

black

market

in

gold

was

ran

the black

markets

in foodstuffs, commodi¬
ties, real estate, rentals and foreign

exchange.

For

the

market, be it black
draws

from

markets

of

and

French
or

in

gold

countries

therefore necessarily has its

and

the
some

coun¬

This

United

States,

others

in

the

Britain

a

clandestine

the

making commitments,

mainly

is

It

went into

to the rule type.

that

bond

levels.

ket

was

seems

reported

American Securities
CHICAGO, 111. —American Se¬
curities
Corporation, investment
banking

firm,
announces
that
Hayden has joined its
department, and will be

Herbert P.

buying

located in the company's Chicago
office, 111 West Monroe Street.
Mr.

Hayden

ciated with

was

formerly

underwriting department at
Chicago and previously headed his
own
company in Chicago and De¬
troit.

He

also

served

as

thin

on

when the

new

siderable of

far

as

and still

the

and

side.

it

White, Weld & Co. Opens
San Francisco Branch
SAN

FRANCISCO, Cal.—White,

Weld & Co., members of the New
York

Stock

opened

Exchange,

a new

a

appeal

on

the

At

Bruns, Nordeman

Bruns, Nordeman & Co.,
bers

of the

change,
Globus

New York

announce

is

now

downtown

2%s of

that Morton

associated

pension

more

fund

specific

was

However, the

mar¬

on

concerned, there.has been,

investment takings in the 2V4S of June, 1959/62
1962/67, especially when prices

and dealers

were

also

as

in

well

Certificate Reception

there

as

on

are

from

time

the easy
to

time

for the 2%s to 6/15/58.

Disappointing

The reception given the 2% certificates by the holders of the

September

l%s

was

nothing to write home about.

Nonetheless, it had been expected that

as

ings.

as

SECURITIES

short-term issues is decidedly attractive

a

fair amount of the matur-«

high

18

MUNICIPAL

con¬

run

Bankers,

page

and

It is indicated that

level, there is

conditions, although it

on

STATE

not possible to acquire

ing certificates would be turned in for cash because of the tighty.

savings.

U. S. TREASURY

largely of

money

his

regis¬

near-

and

for

as

representative.

were

handy vehicle for his
refuge

with

office, 60 Beaver

i? indicated, are

investors at

the price recession.

competing for these two bonds

August and

mem¬

Stock Ex¬

cushion there in the form of buying orders.

some

Traders

to

down.

way

most buyers of Treasuries are

is,

have

branch office at III

Sutter Street, under the direction
of Janet H. Codding.

yields at which

private

2%s get around the 2lk% yield

Although the yield
as

the

of

the decline that it
on

western

Manager of the bond department,
Paine, Webber & Co. (now Paine,
Webber, Jackson & Curtis).

fairly sizable amount of this issue

a

permanent hands

so

asso¬

Hornblower & Weeks

in its

The recently offered 2%s of 1958

have

to

that

really large blocks

any

out

instances securities

bonds, but this kind of buying appears to be

and

in France of fe\red the
unscrupulous

operations

is

worked
some

Some deposit banks have picked up a few of the

the exception

International

Monetary Fund, of which France
is an original member. Gold then
profiteer

term

in

nonbank investors,

largely

the

foreign exchange
explains, incidentally,
the apprehensive attitude toward
private gold trading displayed by
field.

interested

variety.

gold

the

have

at these levels when prices were under pressure. The bulk

on

those

of

legal, both

feeds

other

taken

l

uncertainty that is in the market,

reports,

a

convenient.development for those
large operators who

caution and

according to

governments will be bought and in

authority

resort to

black markets posi¬
tively patriotic. This attitude con¬

the

buyers,

limited

firm.

H. P. Hayden Joins

tered

Price

a

was

B.

Rice, general

Street, New York City,

Buying at

Mr.

department.

Clark and J. Preston

their

been in evidence recently.

Why the Black Market Was
Legalized

1.

Wehmann is manager of the firm's
sales

further

no

aggravation of these conditions, the market for Treasury obliga¬

these developments

Wehmann

Gilbert

markets, there has been

been

finally, the jumble of endless for¬
malities
applied to all
regular
to

Exchange,

admit

partnership

in the money markets.

"Open mouth" operations appear to be a bit more prominent
now than they have
been, with reports flying around that Federal
was doing this or
doing that for the purposes of stability and the
maintaining of an orderly market. (Some security purchases have
been

Wehmann

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

to

quotations.

pen

H.

of the New York Stock

A jittery uncertain government market is
trying to gain some
semblance of balance, after the rather trying times of the
past few
weeks. The market has been and still is on the thin
side, which
means it does not take much volume to have a marked effect

no

Gilbert

will

A

me¬

solidarity

for

again for awhile at least because much may be
accomplished by this kind of action in framing the psychological

regressive

lower income
groups;

on

Continued
C

curren¬

franc

terpart

1952:
know

concepts

almost

systems,

cul¬

possessing legal

these

of

currency

war

gold

long-

world-wide
Schachtian multiple-

elimination

war

for

monetary

by

adoption

not

Professor

the

in

elsewhere,

succeeded

but since World
to

confidence

Sept.

widespread

man

I—according

Rene

"since

runneth

in

The
large-scale
private
gold
hoarding in France was illegal

Gold

France

Britain

there

own

the

depreciation

currency

back into its

be

stimulated private gold
hoarding. Then came the "war

re¬

savings has

man

the contrary,"

War

shook

in

of

as

period of backing and filling is looked for by most money
followers, with dips and recoveries probably of not too
long duration. "Open mouth" operations, it is believed, will come

safety—"hot
to

now

few that would be interested

a

A

private

came

bearishness around

as much

To be sure, there are not

market

inter¬

and

ceipt."1
Why

of

later

gold standard

The

dispose of the certifi¬

may

cate by

details

the

abroad

of

very much excited about
conditions although there

taking on Treasury issues, but they are now inclined to pick
yield levels and wait for them to be reached. Against this type of
buying there is the usual scale down orders, but these do not
appear to be in much more than token amounts at this time.

nation's

a

the

movement

capital in

franc

"Gold

part of

as

present

in

standard,

balances

under

to be not quite

appears

had been.

monetary reserves, and the crisis

organization to han¬

traffic."

government obligations

of

of the U. S. dollar and

does

quoted daily and
dealt in freely in Canada.
Without
a regular
and properly function¬

ing gold market it is
buy and sell gold

Buyers, according to reports, cannot get

emergence

gold-exchange
which

counted

were

the

cies," culminating in devaluation

and

not

to

quotations susceptible to rather sharp and wide movements in both
directions, which is what has been going on in the Treasury list.

in¬

stabilization

1928

between the Amglo-Saxon

was:

unique

a

market.

not. Gold

we

answer

enjoys

below.

France's

kept France off balance since the

1931,

"""Tangier

of

The Government market despite its somewhat
improved tone

psychological and
disturbances which have

established

"Why then should one buy
Tangier gold certificate at all?
Why not buy the gold right in
quired.

reported

as

While, Weld Partner

is still under the influence of tight
money conditions. Volume is
on the restricted side which results in thin
markets. This makes

very

monetary,

rives.

Canada at the

become

Governments

on

By JOHN T. CHIPPENDALE, JR.

gold market M. Digne at¬

a

'

have

evolution

under

ping becomes hazardous, irregular
and expensive and insurance rates

Reporter

prices and, when
sufficient means, do

of

buy gold in bullion
form. The quantities
hoarded and

no

banker stated.
He ad¬
mitted that in time of crisis
ship¬

tend

Our

tributes to the
political, economic,

War?

war?", Mr. Lich-

was

foresee

can

Gilbert Wehmann fc Be

available

premium

ternal

What About
"What

the

not hesitate to

insur¬

companies.

all

exchange and invest¬
Today's hoarders willingly

pay

fire, theft and simple or
housebreaking is provided

armed

with

of

possessed

against the gold, the metal
duly
earmarked.
Insurance

is

familiar

media
ment.

has

an

vance

against

well-informed persons
thoroughly

ad¬

owner

bank

17

not generally believed it would/4 '

it did with nearly 17% taking cash for their hold*,v

Aubrey G. Lanston
& Co.
INCORPORATED

15 BROAD

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle St.

45 Milk

St.

CHICAGO 4

BOSTON 9

ST 2-9490

KA 6-6463

The Commercial and
18

Continued

jrom

.

.

.

Thursday, August 21,

1952

exchange dealers, on 250,000 (34 tons) of gold which the
hand, could participate French Government acquired
in the gold black market only at through the Pinay loan does not
the risk of losing their licenses.
suggest that there has been any
The successive French govern¬ revolution in French gold-hoardhelpless

Moreover,
of the Pinay loan
announced the Paris free
France.

in

.loaraed

galization of private gold trading
made
its
appearance.
Economic

;ince the results
were

conditions, helped by the Mar¬
shall Plan, gave promise of im¬ gold market price has hardened
provement, which—it was argued again, reflecting diminished conjdence in the Government's abil¬
—would
eliminate the hazard

Second
in

would,

prices

in

Overcoming

rency.

culties

the

freed the
of

tend

moreover,

the

diffi¬

Government

holding and transporta¬

gold

French

in

territory

and

one month later, on March 1,
1948, decreed legal anonymity for

all

buying
this

cause

selling

or

gold.

legislation

well

is

It

the In¬

that

known

ternational Monetary Fund did not

Be¬

recognized

Paris
at

market

gold

free

of the
in 1948;

legalizing

the

welcome

least, those casting the largest
not welcome

votes in the IMF did
the
to

envisages a constellation of cur¬
prices at variance with the
rencies defined as specific quanti¬
official parity
and also
ties of gold and the conduct of
authorized a free market in cer¬
international transactions at the
tain foreign currencies, the new
respective par values of the vari¬
French
policy /encountered the
ous
currencies concerned.
While
strong displeasure of the domi¬
che Paris free foreign
exchange
nant figures in the World Fund.
.ind gold market was set up as a
Liberals in France hailed the new
purely domestic market, it was
market as a
blow at economic
eared in Washington that Paris
planning, which certainly it was. transactions at variance from the
Not only was the Bretton Woods
Jranc's parity would in fact be
goal
of
a
centrally-managed
eflected in international as well
world breached; both future and
^s domestic
transactions. Despite

the

is

France

step, but they were powerless
it.
The IMF system

placed

prevent

known

in France,

The

sanction.

ernment

given

was

gov¬

free

gold

market, it was hoped, would en¬
courage the repatriation of
French capital abroad, while pro¬

viding

quasi-official market for
foreign-exchange trans¬

a

private
actions.

the

in

While

long

the

run

Frenchman who has hoarded gold
the years

over

ly,

has profited great-"
of gold in France

price

the

world at large is subject

and the

to wide swings

downwards as well
While the prices at
which French hoarders are willing
as

upwards.

to

buy

views

sell gold reflects their

or

the

of

French

and

franc

Government finances, the fact

that

the Paris market is indirectly con¬
nected with outside free and black

markets makes the
Paris
price subject also to influences
bearing on the world free market
price. Thus, when the outbreak
gold

of the Korean War lifted the de¬
mand for

the

gold in other countries,
market

French

like

responded

in

manner.

who bought gold in

Frenchmen

the

late

since

1940's

"paper"

loss

pains. In

and

have

then

have

held

it

considerable

a

show for their
official French cir¬

to

some

the

unwelcome.

those

the

in

of

French

not like to

who did
the

There

each

with

)f

posted increase in the black-mar¬
means

its will

the gold

on

summer, with
tions at their

to

impose

market.

perhaps

Paris gold
lowest

since

This

ing gold at

value

of what

be
a

for the first time

privilege

au¬

in several years

war

and

saver

a

price above its par
a non-member,

i.e., to private persons, the French
maintain. Nor is there anything in
the

articles
the

mined
any

of agreement

sale

in

Paris

to pre¬
newly-

of

gold at premium prices by

gold-producing country.

French

officials

Bretton

Woods

cite

Document

the

as

well

Conference

1944,

of July

Third

307

two

docu¬

of July

11,

Report

13; 1944—Third Report of

free

Paris

dollar

as

dollar.

the

gold

being

turned

Government

over

in

to

gold,
the

the

payment

the

Reporting Delegate

mittee

1

of

"Under

countries

Commission

this
are

of
I

Com¬
on

clause,
member
permitted to buy

the

bonds.

had fled from the

franc, the $38,^




can¬

gold coins, as well as bars and by highway and train. A thorough¬
ingots in minimum quantities of going examination of their effects
During a recent
75,000 francs. The names of the is impossible.
principals are never known to motor tour in Western Europe the

vented

from

following

domestic

revealed

fact

the

fixed quantity of gold

to the
change

gold

prefer

Governments

may

the

of

Bank

of

France,

that

offers

are

this

for

coins

gold

dollar

are

cur¬

purpose;

bearing

French residents the facile

anonymity of the

ity, freedom and
old

struck

is,

does

louis- d'or

"Old"

rently

of the

Fund,

its gold business in

two-thirds of
coins.

manager

Stabilization

French

loo.

gold-coin standard. But there
other important
differences,
Under the gold-coin standard

old gold

was

the standard of value, a

of
services.
serves
behind
their
currencies. gold markets in Lyons, Bordeaux, Today in France the standard of
They may even do away entirely Marseille, Lille and Nancy, but all value in the shops is the paper
with
required currency reserves together they do not do one-tenth franc. The gold market measures
and in effect demonetize gold. Yet of the business done in Paris.
directly the franc's international
value and only indirectly its home
such a step would not shake the
Frenchman's
confidence
in
a
Gold Trading Centers
purchasing power over goods.
But a stoie of value gold def¬
Inter-Connected
louis d'or. Rather it would alarm
gold.

They

the

gold below this range and to sell
Pinay "good as gold"
gold above the range.
On the
Although M. Pinay had
washed out the past for those who other hand they were not pre¬
for

deficit,

the

finances

as

Switzerland and elsewhere abroad
were

dollar

taxpayer moirectiy

dates. This can be very profitable medium of exchange and a store
it has done in the past; to the Stabilization Fund. At one of value; not a standard of the
or
even
call in notes. But gold,
time last year the
premium on purchasing power of the currency,
the metal, is ^always gold.
gold coins over bars was more for gold coins and currency were

again,

market

French

annual

American

private hoarding of
to it. They number about
,
altogether, two of them oper¬ gold by Frenchmen.

130

nation

a

have

market

content

to

of

Under

by

Washington

pen

told.

their

ment

the

prefers
securities; and

—Frenchmen

amnesty law of April, 1952, one
Purposes, Policies and Quotas of
heard, considerable quantities of the Fund—is also cited
by the
gold held by Frenchmen not only French as
showing the intent of
in
France, but also in Britain, the Conference when it states:

was

banks
have

much

a

and

writer

dishoarder

certain

access

of

that the United States defines the

more

net

a

institutions

financial

and

in

p.m.

and

stockbrokers

penalties might
hoarding is

prized

that—notwithstanding

him

the

a

from payments cannot take account of
special the economic resources involved
chamber of the Bourse in Paris. in the business. Wnen the French
All
foreign-exchange
agents, present to the American Govern¬
1:15

to

confiscatory
taxation, '
the Bourse
political turmoil. The

cellation,

still

became

French

the

international

day

business

each

12:30

Gold

threatened.

that has witnessed currency

in francs to

1948

the

1940,

of

balance

official

—

quota¬ ments.

since

Obviously,

another.

takes

market

gold

a

gardless

of the
Drafting Committee of Committee
thorities seemed to feel that the
1 of Commission I, upon consider¬
peak prices and most of the spec¬
ing the above-quoted provision,
ulation against the franc had been
said:
"This
language
permits
eliminated.
member countries to buy gold be¬
During the initial operations of low the range and to sell gold
the Pinay Loan this summer, Paris
above the range."
Document 343
and

ex¬

for storing the

small

Yet the Govern¬

ment had not the

is

It

medium

permit

specifically

agreement

vent

ket price of gold.

free gold
conscience,

naintaining that the IMF's articles

were

the value

see

clear

a

and

export

or government author¬ writer crossed international boun¬
ities.
Volume of
transactions daries about a dozen times. An
it to
such a step.
varies from 200 to 3,000 kilograms occasional customs officer would
unfamiliar
with
ask to have the trunk of the car
In support of its position the
per session,
a volume commen¬
the
reassuring
development
of
French Government points to two
but nowhere was there
surate in value with that of se¬ opened;
pensions and social security he
articles in the articles of agree¬
curities traded on the bourse. In a careful examination of the car1
does not mind the fact that his
ment. Article IV, Section2 reads:
Even currency con¬
terms of francs gold transactions or baggage.
inert gold pays no annual inter¬
perhaps because they are
of the Paris Bourse total about trols,
"Gold purchases based on par
est.
The wealthier
and
betterone
billion
francs
a
day. The impossible of enforcement, arq
values.—The Fund shall prescribe
informed classes
businessmen,
total for the full year 1950 was dealt with as a mere formality if
a
margin above and below par
officials, professional people —
about
200 billion
francs. While mentioned at all at border points.
value for transactions in gold by
also see advantage in keeping at
no
one
knows how much gold
members, and no member shall
Airplanes are also available to
least a third or a half of their
is privately held in France, the the gold smuggler.
buy gold at a price above par- assets in the form of the
It is an easy
yellow
value plus the prescribed margin,
total
is
believed
to
compare matter to jump a border at an out
metal. They need only compare
or sell gold
favorably with the value of all of the way point in a small plane.
at a price below par
the relative
experiences of the
value minus the prescribed mar¬
securities
listed
on
the
Paris
gold
hoarder
and
the
rentier
Classic Laws Still Manifest
Bourse. In early 1949 the Bank
gin."
during the past generation or two.
The Paris free gold market is
for International Settlements
at
Article V. Section 6, relating to
While the price of gold in Paris
described as a close approximation
purchases of currencies from the at times rises and at other times Basle estimated French privately
of the "ideal market" as defined
held gold at $2V2-3 billion."
Fund for gold states:
falls, the decline is not to be
While coins are preferred to the by economists. Daily transactions,
"(b) Nothing in this Section taken as a reflection of loss of
1- and 12-kilogram bars traded on in which any one conforming to.
shall be deemed to preclude any
confidence
in
the
metal
as
a
the minimum quantity or muh
the Paris market, not all coins are
member from selling in any mar¬
hoarding
medium. In part the
equally
prized
by hoarders. tiples thereof may participate, in¬
ket
gold newly produced from fluctations
do
reflect
interna¬
French
coins
like the napoleon volve
important
amounts of a.
mines
located
within
its
terri¬
tional
political
and
economic and the louis d'or sell at pre¬ fungible
commodity
and
the
tories."
changes; in part, altered condi¬ miums as
compared with corre¬ prices
are
officially published'.
Under these provisions there is
tions abroad, especially in other
sponding Belgian, Dutch or Italian Excepting that the price fluctu¬
nothing
obligating
the
French gold markets. The parallel quota¬
pieces. In its stabilization opera¬ ates, giving to the franc a dancing
Government to refrain from sell¬
tions of gold and the dollar on thr
tions
on
the
Paris, market the par value, the Paris gold market

Government

shrink

franc

with

narket

posability.

the

established

French

cles this decline in the price has
not been

and

liquidated

be

can

avoiding

A premium of 4% in Paris is
mighty handy ating for the Bank pi France and
the French Treasury. According reported to suffice to induce il¬
profits of
law evasion, and there are plenty to Prof. Digne, the latter inter¬ legal international movement of
in
the
market with
out¬ gold. Stopping the illegal move¬
of restrictive economic laws
to ' vene
ment
is
virtually impossible, a
evade
in France,
including in¬ standing skill and effectiveness
divergencies
which French official told the writer.
come and inheritance
taxes, cus¬ decreasing
may appear in the various cate¬ Along the Franco-Belgian border
toms duties, trade restrictions, etc.
gories of gold quoted by buying alone some 60,000 workers enter
Any attempt to requisition pri¬
or
selling, as the case may be, and leave one or the other coun¬
vately-held gold would be op¬
but without opposing the domi¬ try daily with their lunch pails
posed by every Frenchman, and
nant trend. Traded daily are vari¬ and bicycles. Also there is a con¬
even a
census of gold hoards, re¬
ous issues of French
and foreign siderable movement of travellers

of
the

attitude
London,

disapproving

Washington

free

place

dis-

ready

which

assets
means

Fund.

Operation

Market in

Paris

The

a

"package"

and

content

is

coin

a

small

convenient,

franc's

legal

dicta of the World

premium

special
that

fact

hard

change controls by one device or

gold coins. This arises

on

the

from

gold

past gold hoarding, theretofore il¬

quite at

the

to

variance with the

ways

futile

little fellow
who can afford only a 10-franc
prewar coin.
Above the premium
at
which
gold
ingots
sell
in
down

class,

sellers naturally de¬
currency
for
their

Since gold
mand

change.
To acquire foreign ex¬
in change in the absence of toreign

equilibrium

monetary

tional

their savings into gold on
general principles. Such persons
are of every social and economic

Monetary Fund

Varied

Tangier.

operations works toward interna¬

investors who

long-term

centers as Milan,

and

Amsterdam

laissez faire the Paris free gold commodity, the French buyers or
their agents must patronize the
market, in the French view, in
its authorized
and tolerated black markets to get their exT

put

cur¬

serious

French

to

the

of

theories

the

of

firmation"

important

most

via such trading

press.

baneful influence to an ex¬

their

of

and

prevent

treme." Providing "brilliant con¬

monetary de¬
financial disturbance

Third

ture.
are

mecha¬

the

in

governmentare the subterfuges by which "in¬
created
complex
and
artificial
dustrial" gold is marketed and de¬
mechanisms
rom
exercising
vious the paths it follows.
,
will

nisms

like in the not distant fu¬

the

or

time

confidence

restore

tion

that

at

"arrivals"

the black market were

planners,

economic

spontaneous

gold

buy

who

those

are

anticipation

preciation,

incorpo¬ ity to stabilize and improve the
rated in the price of gold. Official purchasing power of the franc.
publication of low and stable gold
Paris Market and International
premium

Bretton Woods economy

In this cate¬
included, presumably
not only the arbitrageurs seeking
a short-term profit, but those en¬
gaged in illicit trade in commodi¬
ties or illicit capital movements
and to whom gold is an essential
medium for effecting their ends.
are

gory

habits.

mg

on

private gold imports and exports
referred
to
without
the
present legal pro¬
hibition. Even without that added higher the
feature French liberal economists greater the

semi-professionals.

The $38,250,000 is but
to suppress the black market in a small fraction of the $2,000,000,gold. In 1947 a campaign for le¬ 000 to $3,000,000,000 estimated to be
themselves

Gold

smuggling.

openly
The
Paris premium, the
inducement to bring
Three Classes of Hoarders
see
in the free gold market of gold into France from abroad. A
Professor
Digne
lists
three
substantial
iraction
of
newlyParis
proof
that,
despite
the
classes
of
French gold
buyers.
mined
and other gold offerings
First
are
the professionals and "Anglo-Saxon stubborness" of the
has
found its way into France

the other

found

interfere with

seemed reluctant to

and allow gold

further toward freedom

gold."2

brokers and

ments

who would go one step

those

are

policy of encouraging local goldmining industry by means other
than paying a higher price lor

17

page

Gold Markets in a Perturbed World

i

Financial Chronicle

(666)

case

of

disregard

may

may

the

reduce

inspire

him

to

market in

the Paris free
another

war

is

risky

to

predict. But under present condi¬
the

tions

is

existence
secure.

of

Outside

hoard

gold. What would hap¬

the

Indeed

gold
there

interchangeable; but

than 40%.

re¬

Paris there are free

of

While gold moves

of

which

is

Paris
of

much

the

South

the

destination

"industrial

Africa

gold"
other

and

countries have been marketing in
2 For

the

two

"PROCEEDINGS

documents
AND

OF

of the
members

disregard

AND

larger

BRF.TTON
July 1-22,
Department of State, Washington,
Vol. I, pp. 501 and 575.

Fund.

UNITED

1948,

see

DOCUMENTS

NATIONS

MONETARY

FINANCIAL CONFERENCE,"

WOODS,
1944,

cited,

NEW

HAMPSHIRE,

Even

of

a measure

goods and

medium

of

saving;

purchasing
power.

gold

power.

And

although
officially

For,

is

market

fined to France and its
the

It is

a

deferred

not

purchasing

domestic

alone

of

the
con¬

territories,

legal wall which professes to

of the confine it there leaks like a sieve.
World Internationally, therefore, hoarded
the establish¬ French gold serves in the tradi¬

wishes
of the

before

ment of

the free market in

in

French

1948

value

out of France initely is in France today.

times, the preponderant move¬
ment since World War II is be¬
lieved
to
have
been
toward

at

France.

the

customs

Paris

officers

tional role of
tional

a

balances.

settler of interna¬

Silhouetting the

Volume

176

Number 5144

..

The Commercial and
Financial Chronicle

.

(667)
balance of international payments

officially measured by the French
is

Government

invisible

arate

of

structure

entirely

an

yet

sep-

less

no

international

real

trans-

actions. This embraces sucn

tilings

SfSt
through

capital5 transfers
capital transters

talsiti-

cation of invoices or tne retention
abroad of earnings from personal
services.
For the financing and
eottiincr
anid
settling nf *nrh transactions gold
of such
responsively out of and into
French private hoards.

moves

One other subtle attribute of the
traditional
claimed

gold

for

standard

the

hoarded

For

gold

foreigners desiring to
for

storage

chief bullion
assist in

obtaining

any form of bars

The London

the

or

Fp

A

such

the

of
the

as

r

•

foreign sub-

companies,
which one of

offices

firms

Africa

maintains
and

gold: that it curbs reckless Gov-

wise the

City's know-how

hoarded

gold, Prof. Digne holds,
certain

a

note

of

extent

for

cover

as

to

serves

the

the

curb

Paris

the

economic

fantasies
and

market

in

and

which

parliaments

.dulge.

will

That

always

considerable

wish to inauthorities

loss

a

of

confidence

reflected in

as

a

hoarders

soar-

ing price of gold on the free market, induced by reckless fiscal
policy; nor dare they eliminate
the

free

that

gold

market

benchmark

to

British

tary

remove

market
"*

London,

in

J

?

London

still

siderable

of

of

amount

gold

Asked

•place for
hold

to

con¬

officer

an

of

more

Last

no

as

by

char-

Tangier

Amsterdam,
Macao
with
Cairo, and Bombay with Monte-

stories

gold
In

^Pnu

of

trade

the

is

United

carried
States

P
^ n+!la

.■

than

dur¬

^

Union

was

?°

of

of

the

"Industrial"
markets

is

gold

believed

sively by air from

for
to

the
go

South

London's old bullion firms replied,
"London."' Approximately half a
such

firms

with

vaults

premium

prices

was

iull

of

vaults

gold, the writer

of

Foreigners

;and,

at

Africa,

.is

required,

been

but

this

has

be

.

World

War

II

broke

out

appears

,most of such gold

earmarked

was

by the Custodian of Enemy Prop¬
erty. With the defeat of Germany,
the

French,

Belgian

,

and

It

other

comply
s

control

laws.

that gold was sold to

England.
over

own

x

w/th^he^fown "ountrles0

exchange
t

j

of

Gradually

out

of

gard

bullion experts
by the writer did

Canada

moment

offering

as

real

any

inter¬
not

at

re¬

the

competition

to

London for the custody of hoarded
gold.
Until
Canada
amends
its
laws authorizing the government
to

take

over

guaranty

that

gold,
the

there
gold

is

no

which

a

foreigner sends to
Canada
for
storage can be re-exported again.
.

Machinery for amending the Ca¬
nadian
been

law
set

in

in

°

this

respect

motion,

Mr. Truman

for the storage of
gold

instability

or

necessary to
his followers.

has

because of

and

of revolutions.




the

risk

a Democrat and is
running
duly selected nominee of that party. It follows that
public is entitled to'expect him to follow out the

the

as

the

policies and the programs of that party unless he

cifically

goes on record as
other part of that

the

or

spe¬

taking exception to this, that

program.' It has often been
that Republican candidates in the past, as official

alleged

representatives of their party, had to accept responsibility
for what the members of their
party in Congress had been
doing. Within limits this is probably fair enough—and
doubt if Mr. Eisenhower for the most
part would have
of Governor Stevenson and the

we

it

otherwise—but what

of his party which was and is in power at
Washington and hence responsible for national policy?.
programs

.

to

It

would be

state

that

nearer

there

is

the

truth,

very real
Stevenson would find it difficult

or

so

it

seems

to

us,

danger that Governor
as a practical matter to
reshape and remold the programs of his party to bring
them into line with
sanity and basic wisdom. He would

in

It would

Republicans, Too

were

active and

means

of

means

getting

quite influential in getting Mr.

What is more, he still has to be
of course that he must
find ways
votes from various and sometimes

quite diverse quarters.

What is worst of all,
perhaps, is
the fact that there exist in
this
country large and influ¬
ential blocs of voters who "want
theirs," and have grown
accustomed to
"getting theirs" from one Democratic Ad¬
ministration after another.
These latter

really want
must not be permitted to have them.
not, starting as of now, get a little of this

"captives"—and
Can

we

"captive"

nonsense out of the

campaigning?
•
-

financing

Glore, Forgan Group

purpose.

Offers Texas City
Chemicals Debentures

,

Stevenson and His Party

doing.

are

elected, which
and

stultify himself to please

But Governor Stevenson is

element

saner

is

not afford to overlook the

can

will

be

for

used

this

Additional funds will be

secured from bank loans and sales
of

additional

stock

and

warrants

to other investors.

Priorities

for

materials

have

been received

by the Atomic En¬
financing on behalf of
Texas City Chemicals, Inc. was ergy Commission as well as clear¬
ance from the National Production
made yesterday
(Aug. 20) with
Authority. A subsidiary of the
the offering by a
banking group
headed by Glore, Forgan & Co. of American Cyanamid Co. is con¬
Public1

however.

Latin America is deemed
by Lon¬
don gold specialists as unsuitable

political

way

doubt if he felt it

with

the vaults.

British

viewed

'

gold-was turned
European national's

authorities.

no

the Bank of

the passage of years and the death
of its owners this prewar
gold is
comin^

have

Other
the

to

Some

we

this

and

sense.

these

of knowing. Both he and the
President have gone out of their
way to give the impression that he is no puppet, and, for our part, we should

_

J

,

sense)

what

fact, though, that
large and influential segments of the
Repub¬
lican party which have
gone almost as "haywire" as have
the Democratic socialists. Nor must
we
forget that some
of

former utterances.

European-owned, for

soon

"captor

political organization*. to start this
country back toward

there

He, or someone for him, managed to
swing the nomination to him over strong, not to say
bitter, opposition by many of these very elements. Pre¬
cisely how much he owes President Truman (in a political

in

Some Radical

exposing himself to ridicule by quotations from his

gold.
*
The larger part of the gold held
in
London
by foreigners when

to have been

commend

an

good

of their pet
nonsense, and he strikes us as a man
with a mind of his own.
Indeed, it is difficult to see how
he could now
begin to preach many of the doctrines of"
the New Deal or the Fair Deal without
stultifying himself
—and

the private hoarder's
,

his

party could combine with the "opposite numbers" in
the
Democratic party to form a
coalition, or even a permanent

much

•competition with Tangier, South
^Africa and various Latin
AmerT
ican countries for the
custody of

little too

now day
Republican

inevitably become a "captive" of the wildeyed radicals in which his party abounds, seems to be also
lacking in sound basis. He is known to disagree with

always

a

who

excellent
thing—but, of course, we are
dreaming—if the sounder elements in the

Stevenson will

mere
formality obtainable
hours, according to the bul¬
firms.
Thus, London is in

lion

to

Republican party has done

Eisenhower nominated.

a

.in 24

much

the

out. the period of British exchange

control, may withdraw it from
Britain at will. An export license

us

to

the

find

.

We See

to

as

operandi has been worked out. That it involves
any "cap¬
tive"
relationships we do not for a moment believe. We

,

As

through¬

case

seems

definite conclusion

any

<

Sector Taft—who incidentally

to

exclu-

Continued from first page

may
send gold to
will for
safekeeping

has been the

as

a

is not always as far
right as often supposed or asserted. It is to be
hoped for the sake of the country that some sort of modus

free

We

gold has been there
since before World War II.
-London

sort of

reach

his part would
give

on

Murray of the CIO warrant for charging
"double cross."
Any elected official is almost
sort of "captive" to those who elect
him to

are

Much of this

cap¬

George or Russell.
party is sufficiently strong

might be, or if there are to be
any. There can be little
doubt that he has talked
things over with the followers

told.

was

seriously divided party

Senators Byrd,

As to Mr. Eisenhower it
to

„

bank

as

any such procedure
Mr.

as

office.

gold

trial" gold was
being marketed at

on

men

ipso facto

takes -various shapes, the
packing
transparent varies. In general wooden cases
their premises are holding gold in
to all from the
beginning.
Last are employed.
bar and coin form for
foreign cli¬ June it was
officially disgarded by
ents.
For most clients the safe^Theilargest known single plane
Wnw
.keeping fee charged by W firmc the British Government when all shipmehf-of gold weighed about
these firms Colonial
Governments were inis
one
mill percent
eight" tons and was worth nearly
per
annum,
formed that the requirement that
The charge is not uniform for all.
$8,000,000 at $35 oer ounce. In angold offered on the preimum mar-... .'
'
* nnn nnn ^
Leading British banks, notably kets be
exported in processed or other case $75,000,000 of gold was
the Midland Bank, act as custodisemi-processed form could be dis- moved by plane in 11 separate
ans for foreign gold held in their
pensed with.)
flights.
•vaults.
London
dozen

men

today that

some

costs

hoarding 494.
Since
free-market
prices
con(The
fiction,
introduced
by stantly fluctuate, speed is of the
South Africa,
that only "indus- essence.
Because industrial

of

of such

such

Probably the bulk of the gold
shipped by air internationally is
for official account.

Settlements,

a

Whether this element of his
to lend
support adequate to permit him to turn the
party's
course rather
definitely if not sharply to the right, we
do not know. What we do
know is that if he is elected
he will be elected with the
support and the active help
of elements in the
population to whom such ideas as these
are anathema.
In point of
fact, it could almost be said as

in material and labor, easier han-

hoarded

Party

sort of

tive

nation should be

makes for reduced packing

Divided

behind him, just as has his
opponent. We should be heart¬
ened if we believe that he
were destined to be a

by

Whereas gold shipped on surface vessels is usually packed in
wooden containers holding two or
f°ur bars, the containers used on
planes are of lighter weight. This

twice

dollars, are: Indusabsorption
2 2 0,
private

trial

going the rounds.
A

Of

ounces.

"captive"

now

Of course, the Governor has

ing the first half of 1952 about
one-fourth of the gold
imports and

in-

flow

the

year,

Bank of International

safest

one

on established

video

plane.

goes into mone-

as

in millions of

individual abroad to

an

gold,

the

Corresponding estimates

owned

the

name

ratabllsted

™

well

as

of

.

timates that 5,000,000
in the western world.

privately outside the United King¬
dom.

commercial

presumably in ap¬
proval of what the party has been
doing. We are not cer¬
tain that we should want to
say that the Governor would
be a captive of his
party, but such a statement would cer¬
tainly be much nearer the truth than some of the

oreoious-

availabUitv

hoarders, 5,000,- dling, greater flexibility in spreadthe
13,300,000 ing the weight load about - the
ounces, the Union Corporation es- Plane and lower freight charges,

repository of

doubtless

gold

use.

000

gold
~

the

but

The

tered plane serves to link
wjth

world's

the industrial arts took
13,300,000 ounces and Middle Eastern
and Far Eastern

does

the

marts

^f transDortation
transportation

No statistics appear to be avail¬
to show how much of the

ounces

None the less,

X1

is

unknown

an

control

revival

in

and

currency

metal

able

the

Corporation estimates, out of mine
production
totaling
25,700,000

of confidence.

exchange

permit

find it difficult after election to do
any such thing for a
number of rather obvious
reasons, among them the fact
that he would have a
Congress elected

o move

ea^tirthr^hcommomty0

rities

gold

absorb

much

as

London's Gold Facilities

•not

an

,

through such
?n
tore§Pmg tigures.
important trading and trans-ship- 7
jlsrt
^ncrpasin& tendency
ment centers as Amsterdam, Zur° se
I f? ^ air, not omy beich, Paris, Milan, Cairo, Beirut, c use * *s
J1® fastest method, but
etc."' Nowadays
industry
and more otlen tne cneapest.

couid not remain indifferent to the

prospect of
in the franc

role

non-monetary

w

+u

bUrageSr! who know hilw®

otherof

It may be as-

sumed that the City plays

financial

the

and

world's free gold markets is
being
employed
in
the
marketing of
semi-fabricated newly-mined
at premium prices.

governments

may

is,

offices

in

gold

issue, since the sensitiveness

are

Canada.

such

The

u

any such thing during
campaign without impugning the good faith or the
good sense of the party whose candidate he is. He
would

taeTorid
kepi
in
lfne
th
oL an"
one

of

generally

fu

charge

British

London

find it difficult to
promise to do

the

-vresls
Tu-

Through

finance.

in

desired

coins

bullion firms

eign companies or to

sidianes

mfr"ets

to

ThevTa

ices.

Gold Moves By Air

tne

metal

French

ornment

buy

London

They may not collect any
commission foi
acting, in the purchase or sale of
gold. This British
prohibition does not aDDlv to for-

South

is

in

fuWstancfready

19

$3,000,000 of
5y4%
subordinate
sinking fund debentures, due Jan.
1, 1963, and 300,000 shares of no
par

value

curities

common

stock.

The

structing the plant.

Joins Central

units of

debentures and

10 shares of

Republic

se¬

(Special to The

being marketed
in
$100 principal amount of
are

com¬

Financial

Chronicle)

CHICAGO, 111.—Alan J. Byron
is

now

connected with Central Re¬

public Company, 209 South La
priced at $107.75 per unit.
Texas City Chemicals,
Inc. is Salle Street, members of the Mid¬
now
building and will operate a west Stock
Exchange.
mon

chemical plant scheduled for

pletion

within

a

year

at

com¬

Texas

City, Texas to produce sulphuric
acid,

dicalcium

as

Cruttenden Adds

animal feed supplement and

an

phosphate,

(used

fertilizer

conditioner) and other
products. Among these products is
a
by-product of dicalcium phos¬
phate which will be produced and
sold

to

the

Atomic Energy

Com¬

mission. The plant will cost around

$5,296,000 and proceeds from the

(Special

to The

Financial

to

Staff

Chronicle)

CHICAGO, 111.—John C. Pigott,

Jr.,

has

become

Cruttenden

&

associated

Co.,

209

with

South La

Salle Street, members of the New
York

and

changes.

Midwest

Stock

Ex¬

20

transportation

Joins Keith, McCormac
(Special

than likely to

Financial Chronicle)

to The

W, Hocking has joined the staff of
Keith, McCormac Co., 318 Olean¬
der
Avenue.
He
was
formerly

The

Mutual Funds
By ROBERT R. RICH

Calif.—Robert

BAKERSFIELD,

with

C.

A.

in-

sell-

dustry is now reaching and

such

earnings will improve

Vice-

Clark,

Grady

market,"

effect

Monday
upon

from

request

investment dealer, or from

of

Minneapolis

in

stocks

he spoke at a meeting

as

distributors

securities

1,000

for

points out in

Bullock

representing I.D.S. in the central,

prospects

study of

a

current INVESTMENT TRUST of Boston,

industry's

railroad

the

southern and southeastern regions.

Hational

corporation

research

position.

&

securities

120 BROADWAY, NEW YORK 5. N.

Results of the

racei}t nationwide

^

Y.
Clark

.'

.

educa-

The

that

10 employed

every

in-

decade of the
such

total

several

corporate securities, includ-

has

of

'Thirties,
the

been

a

share of Sheraton

The
nual

invest in

rate

held,

adults

Since

l^CAtVlN BULLOCK
I

4/f

■

«iiiViil

'61ihYi"i'mil

III m M

GENTLEA1EN: At
aae a

I NEW YORK

'

it ■+*+ +*+mmm mm mmm mm

no

obligation please send

prospectus on Canadian Fund, Inc.

principally

the

with

in

investments

viously prevailed.
On June 30,

of

shares,

corporate

Address.

had

or

not

definite

no

tion in the economic scheme on

reasons

the

shares.

owning corporate

indicates,"

exists

000 American

for

vestors

and

men

corporate shares.

investment

of

this

other 73%

cultivated,

unapproached

There may be

total

not

The

Prospectus

may

clared, and

from

investment
Parker

dealers

or

dicates that

Berkeley St., Boston, Mass.

200

more

U •FOUNDED

19 2 5*

P

vest

in

corporate

reasons

Conscientious

=R=

closure

'

in-

survey

able

service

to

in-

to

despite

$4,000

a

year.

"full

and

herence

new

customer

dis-

each
is

and

hold

6./1/6Q;

Toledo & Ohio Central RR. 3%s
and $500,000, United Gas Corp.

Mort.

3%s

2/1/72.

The Fund eliminated the following

(face

value)

its

from

portfolio

"

REPORTS

OPEN-END

July 31, 1952, or $4.03 per

411,499,

$3.88

or

stocks were added

Hudson

Central

folio:

8.3%

last quarterly

the

Since
these

to

$25,000

Electric

present

__

3.0

4.0

Company

$500,000—$1,000,000-

2.5

one

of

the

4.0

loss

and

damage to

a

the

of

can

continue

investor

con-

Philip Morris

efficient and sat-

traffic

commerce

and

expected to remain

high

level

for

study

improvement

Fund

Series

B-l

with

assets

of the Fully

on

July 31,

$6,741,536,

$5,993,308

ap¬

proximately 50% of its assets cur¬ value

per

as
a

1952, totaled

compared

with

earlier.

Asset

year

share on July 31 of this

rently invested in U. S. Govern¬ year was $7.97 on 844,735

a

rela¬

some

time

and

further
the

NET

earnings
on

states,

for
of

curities

Keystone stated that Investment
Bond

Tobacco

"B."

Administered Fund of Group Se¬

^ecame effective on the same date,

to management,

Reynolds

and

Co.

TOTAL

Revised dealers' concessions also

few of the many

open

more

receiver

industry of the nation."

tively

FUNDS

the

MUTUAL

basic

railroad

STOCK FUND

Custodian Funds
SELECTIVE FUND

American

BOND, PREFERRED AND
COMMON STOCK FUNDS

The Keystone

your
ten

me

prospectuses

Prospectus

describing

upon

request

V 'V.

D-47

boii

Cty

vj

v/

Lord, Abbott & Co.
.

State..




principal cities of the United States or frdm

the national distributor and investment manager.

ma

Name

Addreu......

Prospectuses of these companies available at offices
in 148

Organization and the shares of your

Funds.

SYNDICATE OF AMERICA
w

50 Congress Street, Boston 9, Mass.

Please send

FACE-AMOUNT CERTIFICATE COMPANY

Business Shares

Company

DIVERSIFIED SERVICES,
Established in 1 894

MINNEAPOLIS 2, MINN.
New York

Chicago

.mm

Atlanta

&

4.0

2.0

Railroad
are

Gas

Corporation, National

$250,000—$500,000

isfactory service to the
and

report

to port¬

7.3

Up

&

still

ieading to

on

company's last fiscal year.

Gypsum Company,

only

are

share,

per

1.951, the end of the

November 30,

5.0

inconvenience to

avenues

share,

compared with net assets of $35,-

Series

4.15

Shares

BUSINESS

reports net assets of $38,605,301 on

initial sales charge on all series to

4.15

the

American

$224,000,

2%s 4/1/52.

Trust

Boston, principal underwriter of
the ten Keystone Funds, announced Monday reductions in the

B-l

bonds

during

&
Foreign
Power
5s
2030;
$1,000,000, Dominion of
Canada
3s
5/1/57-54;
$500,000,
General
Motors
Acceptance
Corn.
21/>s
3/1/52;
$500,000, Seaboard Air Line RR. 4%s 2016;
and $600,000, Southern Pacific Equipment
period:

COMPANY of

4.15%

4/1/72;

4,/aS

Brunswick

New

of

$500,000,

RR.

6.3

reduction of

freight

$519,Indiana , 4%s
Bank ior Re$500,000, Long

1/1/58; $861,000, Ohio
3>/4s 1992; $215,000,
4%s
I960;
$500,000,

3s

AMERICAN

size of order

value)

tfacs

Deb.

3.5

opportunities

build

Province

2/1/62;

4s

Dev.

Rev.

__

ahead, the

to

&

Lighting

Pennsylvania

1st

Intern.

$100,000—$250,000

investment

industry

constr.

Western

&

freight schedules and

to

governments.

investments

$500,000,

Turnpike

Trust,

MUTUAL INVESTMENT

and

bond

Chicago

diversifying its port¬

KEYSTONE

ap¬

preferreds,

and

of and strict ad¬

up

most effective ways in which the

Keystone

the

of

in

preferreds, 2%
bonds

new

Island

eliminate the attendant delay and

shares

income of less than

can

and

5/1/82;

not

$25,000—$50,000,

"Speeding

than 20% of the

were

amount

$50,000—$100,000

estimated total number

shareholders

of

action

roads>

de-

Corporation

country's

decisive

in favor of the rail_

at the

in investment

1951, 21%

folio.

Calvin THE

industry,

the

of

turn the tide

available from income.

However, he said, the

thus further

assets

invest¬

with

commons

$1,000,000 and over__

Clark

of these

one

total

in

Dominion of Canada 3s 8/1/63;

000,

improve the competitive

gressive and

force

be insufficient surplus funds

may

be obtained

The

-

investors,

the

preferreds,

during the first half year included: $2,000,000 Alum. Co. of Can. 3%s 5/1/70; $1,000,-

All Other

members

working

of

preciation

and Passen£er business is becom- become effective Aug. 18, 1952 in
ing increasingly
smaller,
"This accordance
with the following
why need not be the case because ag- schedule:

joined the ranks of the

country's

Investment Fund

adult

un-

and

reasons

additional 40,000,000
the

have

A Mutual

valid

the

Bullock declares. While the current
level of traffic tends to
obscure the fact that the railroads'
Pr°P°rtion of the country's freight

market

hence unsold."

of

Yet

remains

to

position

industry has sold

27%

about

while the

has

opportunity and the duty to con¬
tinue

in¬

women

an

and

compared

ernments,

exceeding 5% of the market value

management

a

to

24% in

appreciation bonds and pre¬

ments of 62%

Sheraton Corporation of America
stock

bonds

in¬

was

commons,

ferreds, and 12% in cash and gov¬

long term capital gain only.

common

of

Railroad

present market of possibly 23,000,-

an

and

dis¬

told

he

there

"that

tributors,

only

legislative

the

of

regulatory authorities.

"This

the

part

Wellington

in

63%

investment

This is believed to be one of the
of a rather favorable level of few instances on record when an
traffic for some time ahead and open-end investment company has
an apparent
growing awareness made this type of distribution. It
of the industry's needs and posi- will reduce the Trust's holding of

were

nature

stocks

investment quality on a

better income basis than had pre¬

lying all of them is the probability

had never considered such invest-

for

<«*y

they

because

"unfamiliar"

corpo¬

and 15% in cash and

since transactions in portfolio securities

varied, it is pointed out, under- as a

000) have not become shareowners

ments,
Xante.

While

63,000,-

out of

issues of

accumu-

lated, undistributed net profits of

of the Trust, it is designated as a
the reasons for this re- capital gain for Federal income
interest may
be most tax purposes and will be taxable

newed

10 employed U. S.

(16,740,000

STREET

and

fractional

with

March, 1931."

nearly

that

showed

also

three of every

semi-an¬

its

preferred

new

bonds

good

000,

survey

in

noted

fund

report that it had been able

bonds

Trust

widely used the distribution is from

of the more

stand at levels not attained

However, Clark pointed out, the

ONE

govern¬

amount.

same

of

its

reduced

of re¬

holdings by about the

ment bond

to

and

bonds

Corporation

that shares being paid in cash.

indexes of market prices currently

ing mutual fund shares,

WAlt

invest¬

by almost 4%

and

sources

Well¬

year,

investment

in

ments

each share of

for

stock

common

de- the

stocks

railroad

for

mand

working force of about 63,000,000)
owns

half

FIRST

THE

IN

ington Fund increased its

close

"indeed,

(6,490,000 out of a

country

of those lost during the de-

some

pression

one

reserve

funds.

1 % in

J08* mdustry .apfarS t0 haVG Each shareholder of the Trust
f°U+nd neWperhaps hasamon* back of recordtoday six one-hundredths
**** won mJ jng paid date July 8, 1952 is bevestors

of

about

..

rail- America,
,

adults in the

only

for

investors

tutional

of c0_

the form

or

stressed,

he

survey,

a

several stock of Sheraton Corporation of

last

.

ly unrealized size and scope."

dicated

jn

common

the study states, the

years,

previous-

tional and selling job of

raj]road

Qf

during the
■

stocks

,

,

.

corporate and insti¬

attractive to

vested

6 jC°^nI™ in,rS'
said, "indicate that the

rn

vestment industry faces an

announced

fund, has

mutuai

a

increasingly

become

has

ments

As evidenced by the rising trend special distribution to their share-

Exchange survey

New York Stock

take place, the level of
and dividends—present

the inclusion of carefully selected
railroad common stocks in a
diversified
portfolio receiving
constant supervision,

common

justifiable

seem

Thursday, August 21, 1952

.

and prospective—seems to justify

diversified portfolio, Calvin

a

.

.

until preferreds

traffic appears

decline in

a

both quan- earnings

railroad

fully-selected
said

earnings. But

net

on

|^ejy

titatively and qualitatively, care-

President of Investors Diversified

Services,

1952

that

INDICATIONS

WITH

potential U. S. investor "mass

and

cline in traffic and. a low margin
of profit can have
a
disastrous

the

to

related

Clark

meeting.

ing only about 27% of the present

Prospectus

thorough analysis, for
of a sizable de-

combination

the

fidence,"

investment

concludes: "The low

study

the need of

NATION'S

system are more
become reality.

margin of profit, however, sounds
a
note of caution and indicates

Co.

Botzum

THE

your

Financial Chronicle

The Commercial and

(668)

—

Los Angclcx

INC.

shares

Number 5144

Volume 176

.

.

.

The Commercial and Financial Chronicle

(669)
outstanding compared with $8.02
the 745,614 shares outstanding

share of

Security. It is anticipated

on

one

ASSETS

NET

Fund

Stock

of

of

the

increase

of

Securities
July 31, 1952,

100%

over

a

year

BRANCHES

OFFICERS, ETC.

outstanding compared
the 256,732 shares
outstanding on July 31, 1951.

CAPITALIZATIONS

$8.22

PERSONAL

At

a

PROGRESS

meeting of the Executive

Committee of the Board of Direc¬
of

of

The

New

National

York, held

City

Bank

appointed head of the pensionplanning department of Investors

August 19
appointed
an
Assistant Cashier. Mr. Dickey
is assigned to the Southern Dis¬

Diversified

trict of

Services, of Minneap¬

Daniel

D.

the
❖

years

Assistant Vice-President in charge
of the pension and
profit-sharing
section

of

tional

Bank

will

the

Northwestern
Trust

direct

Na¬

department,

planning,

sales and
service operations of investors in

behalf of

corporations, institutions

New York

years

Lidgerwood, N. D.,

University of Min¬
nesota, receiving a law degree
from the University of Colorado

in 1934.

it

is

Northwestern
1934

National

Bank

in

and remained with the bank

until

1937, when he became

ciated
ton

with

Co.,

the

asso¬

Charles W.

Minneapolis

Sex¬

insurance

brokerage firm.
Entering the

army

as

private

a

Infantry Division

after

46 months of

Geser

when
ern

association

he rejoined

Bank Trust

until

with

been

1919.

He

examiner

has

been

examiner—the

ment's

a

assignments have

Geser

commercial

promotion

of

list

savings
Pending the
competitive

a

by

examination

held last

Civil

for

Service,

which

was

month, Mr. Geser's

Deputy

as

*

The

John

Superin¬

of

New

N.

the

*

Y.

absorbed

State

known

System,

The
and

Aug. 4 by The

lished by the

location

of

bank in the former

Hudson
*

River

Trust

Richmond.
the

& Traders Trust

N.

Y.

*

President

Company of Buf¬
announced

was

Lewis

G.

by

Harriman

on

Aug. 7, it is learned from the Buf¬
falo "Evening News," from which
we also quote in
part as follows:
"Mr.

bank

Snyder is Vice-President,

the
On

helped

the

Federal

him

Hospital and

Fillmore

trustee of the Buf¬

a

falo Savings Bank."
*

President
of

the

N.

Y.

the

among

and

36-page

announced
of

Auditor,

total
544

bank

Aug.
G.

11

the

Kibler

indicated

was

uted

in

as

the

"News"

Kibler

since

further

Era

1918.

He

has

York,

that

announces

liam W. Lyon has been

Wil¬

appointed

Assistant Treasurer of the

an

of

to

staff

com¬

and has been assigned to the
Business Development Depart¬
pany

ment to work in the New York
area.

and

Manufacturers

of

changes.

investment
Shields

&

Co.

Grand

Grand
York

of

years.

Director of

a

Theatre

in

Central

Terminal,
New
During World War II

City.

he served with the

Corps

firm

several

Central

as a

Army Engineer

First Lieutenant.

Frederic R.

in

if

Advices

Mann, President of

the

:!s

*

the

to

Bank

Warwick
tel

of

d

distrib¬

was

of

the

by

to

The

the

that

being carried

are

consolidation

the

of

ne¬

of

sion

new

Details

and

for

on

and

Y.

with

Marine

a

the

Midland
National

Citizens

bank,
Bank

of

Fulton,

in

special advices from

N.

Y.

contained

were

*

It

Mr.

customers

and

the

in

of

the

57th

Street

Avenue

prospectus from
your

Investment dealer

iV

Manu¬

of

York, it

was announced on Aug.
by President Flanigan, of the
trust company.
Mr. Mann was

proximately
of

sources

2, PA.

educated

Yale

at

University and

the Wharton School of Finance at
the

University

of

Pennsylvania.

For many years Mr. Mann has been
active

affairs

in

civic

in

and

New

York

community
City and

Philadelphia.

United SCIENCE Fund
United INCOME Fund

United ACCUMULATIVE
Fund

Charles

Jacob,

*

lyn, N. Y. for

more

than 57 years,

died Aug. 12, at the age of 94.
Mr. Jacob, a retired piano manu¬
was

one

re¬

that

one

in Fulton and

in Phoenix."

one

*

*

*

15

total

Bartholomew

the First National Bank of Farm-

ingdale,
from

N.

effective July

J.,

23,

$40,000 to $100,000.
*

*

*

Directors of Equitable Trust Co.

Security

Trust

Co.

both

of

of the original

The advices went

"The
become

on

is

merger

effective

to say:

scheduled
Nov.

1

if

to

Pennsylvania
Securities
the National Asso¬

;

outside

direction

as

Mr.

O'Toole,' President,
an

'

an

associate

Texarkana.

of

States

to

this

wide variety of regular banking
services.

Officer

of

a

The

Peoples

Shores,

capital,

Bank

of

increased

with

a

years

is

now

the

in the Armed

Commanding

413th

arkana.

as

Fla.

associated

Engineer
Dump Truck Co., an active Or¬
ganized
Reserve
Unit
in
Tex¬

*

National

in

; .»-. y.\
Eppler.

public utility in Mississippi.
During World War II, Turner,
He

Miami

to

investigator. Prior

was

three

*

comes

as an

he

served

*

firm

Treasury Department where

he served

Forces.

also

the
;

Turner

provides

bank

of

"

Guerin & Turner from the United

active

community it serves. Dur¬
ing 1952,
the bank opened its
Drive-Up Auto Banking facilities.
During 1949, a Trust Department
was organized as one of its
many

Del. have approved
plans for the merger of the two

institutions, according to the Phil¬
adelphia "Inquirer" of Aug. 14.

the

TEX ARK AN A, Tex — John W.
Turner, President of the invest¬
ment
banking firm of: ■ Eppler. Guerin & Turner, has announced
the appointment of Roy C. Turner,

of the

The

at

R. C. Turner Joins Staff
Of Eppler, Guerin Firm :

resources

Standard State has taken

services.

presented

a

Philadelphia and New York;-

part in civic and business affairs
A stock dividend of $60,000 has
served to increase the capital of

was

with

ciation of Securities
Dealers, and
investment
men
from
Chicago.

in the then past

Under the

years.

as

August?*! 6,

on

had" opened

Chicago's Loop,

Wilmington,

Trustee of the

a

Roosevelt Savings Bank, of Brook¬

facturer,

Through P or iodic Investment Plant

*

and

than

$17,000,000.
It has four offices, two in Oswego,

and

*

$16,000,000

more

18

or

PHILADELPHIA

and

Office

Company, at Fifth
57th
Street, New

the

Commission,

the Seaboard Container Corp. of of
$15,076,559.
Five
$4,790,000 and total resources
Bristol, Pa.- has been appointed a of $5,342,000. The Oswego County years ago the bank began with the
largest capital account of any new
member of the Advisory Board of National Bank
has deposits of ap¬
facturers Trust

of

large silver tray
the signatures of
each of his well-wishers.
Guests included representatives

reached

bank

its

Taggart

inscribed

1947

have

the best known
members

industry in Philadelphia

the dinner with

11

'The Citizens bank has deposits

liked

for his other activities in
sports and civic affairs."

that the Bank first
Oswego,
opened
to the Buffalo "Evening its doors when more than 1,000 ac¬
News," which also had the fol¬ counts were started. Today Stan¬
dard State serves more than
lowing to say in part: 1
27,000

Aug.

One of

best

ment

*

was

40

the

well as

Standard State Bank of Chicago,
111., at 7919 S. Ashland Avenue, is
celebrating its Fifth Anniversary
this month.

in

years

for his
leadership in many pro¬
gressive movements in the invest¬

by the

placed

com¬

of

Philadelphia investment frater¬
nity, Mr. Taggart received tributes

voluntary liquidation July 14.
*

Taggart

business.

Elsrton Bank & Trust Co. of Crawis made known in the

was

the

investment

the

fordsville

Oswego

County National Bank, of Oswego,
N.

capital stock of $100,000)

A.

stock,
of

birthday

pletion
Charles

his

of

60th

$

National

A.

head
Charles A.

Taggart &
Co., Inc., 1500

of

Vir¬

page 303.

Citizens

in
of

Taggart,

plan to increase the capital were
given in our issue of July 24,
*

1 p h i a

e

Walnut Street,
on
the
occa¬

$1,000,000 of

effective.

Ho¬

Phila-

Charles

re¬

of

in

honor

bank's

people

Bank

dinner at the

a

A

stockholders.

Currency which indicates that

effect

the

11.

of¬

Bulletin of the Comptroller of the

January."

Company, gotiations

banking
for

He is President and
the

troller

City

Mr. Lyon was associated with the

by
ap¬

Con¬

to

Charles A. Taggart
Honored at Dinner

who

advertisements

Service"

the sale of

in

was

Vice-President and

stock

new

$900,000 to $1,050,000 effec¬

tive Aug.

bank,

of 65

"The

highlights

became

held

Joseph G. Schmauss who
pointed

Prior to his connection with
Trust

from

six

members.

and

*

was

of

$150,000, has increased

capital of the United States
National Bank of San Diego, Cal.

of

formerly was manager of the
The absorption on
Genesee-Fougeron office, the FillJuly 12 of the
more-Leroy office and the Ken¬ Citizens National Bank of CrawInd.
sington office.
The position of fordsville,
common
(with
formerly

of

sji

departments of the bank,

Auditor

sale

As¬

$

the

July 29 the enlarged capi¬
tal
of
the
Huntington National
Bank of Columbus,
Ohio, increased
from $3,000,000 to
$4,000,000, by

the

been

The
amount

:|i

As of

said:

has been with

California Bankers

history and its pledge for "A New

"Evening News" of Aug.

The

"Mr.

Buffalo,

past Chairman of

three

the

group

staff

McGinley

of

on

William

it

Buffalo

F.

Bank

in

classmate

booklet,

Virginia
ginia.

*

Edward

Liberty

election

11.

$

a

1934.

C.

viewed

Millard

a

if

July 17

of

establish

Newspaper

the

in

now President of
PHILADELPHIA, Pa. —On
Asheville, Asheville, Thursday, Aug. 14, a group of 40
Present, too, were the 13 representatives-fron^ all branched
members of the bank's 25-Year- of the investment brokerage busi-'
ness
Service Club, ranking in
attended
seniority

N.

tion. He also is Vice-President and
of

became

The Bank of

Portland Cement Co. Inc., and the
Crushed Stone Corpora¬

director

Smith is

and

company

Philip Woollcott,

Virginia, 1922-1952,"

director of

staff

on

progress

the

and

of

1922

hand

dent

Federal

more

offices

ficers

*

Company

12

and

Treasurer and General Manager of
Buffalo Slag Co. Inc., and Presi¬
and

a

were
four of
the 1922 staff, including the Presi¬
dent and founder, Thomas C. Bou-

shall,

1926

the

dollar organiza¬

-

its

note

in

Division,

Virginia cities paused
to

staff

Company in

sociation.

Officers
in

decades.

The election of Harris N. Snyder
as a director of the Manufacturers

falo,

Mr.

become

million

-

Beach

Company

the

advanced to Vice-

was

of

pioneering bank

a

has

Long

Trust

joined

six

trust

the Southern California
Trust Of¬
ficers Association and of the
Trust

July Anniversary Week celebra¬
tions by The Bank of Virginia, at

Co.
*

director

tion in 30 years was the theme for

of the Federal Reserve

System on
A branch has been estab¬

it

He

President

and

sjs

story of

how

than 91

by the Board of Governors

Aug. 9.

Chairman

:!:

member

on

be

&

He

for

the

Assistant Trust Officer and
two
years later was elected Trust
Of¬

B.

Co. of

Reserve

a

will

Bank

1920.

old

California Trust

bank.

new

entering

the

as

bank."

River Trust

Federal

various

Flanigan, President of

Street, members of the New York
Ex¬

in

the

with

Savings

resources

California

before

years

Mowbray, President of ficer.

and

Co., 407 Montgomery

capital

Southern

field

$100,-

Jessup, President of
Equitable, President of the merged

Co. of Albany, N. Y., it was made

ap¬

provisional.
*

*

Hudson

Hudson,
of

some

specialized
and

examinations.

establishment

ihe

has

bank

*

Chronicle)

Stock

classifica¬

supervision, but for
Mr.

years

department.

Francisco

Febuary,
supervising

highest

examining

tendent is

FRANCISCO, Calif.—Bart

San

in

embraced all of the various types
of institutions under the Depart¬

the Northwest¬

A. Supple, Jr., has joined the staff
&

field

a

tion among the four bank exam¬
iner grades—for the last 14 years.

pointment

Sutro Co. Adds

Sutro

33

New York

a

Manufacturers Trust

of

com¬

For

the

appointed

was

Horace C.

SAN

in

Co., Private Bankers, in
Tonawanda, N.
Y.
Mr.

1948

(Special to The Financial

placed

division.

with

State bank

bank

his

Banks.

of

Mr. Geser has been

&

son

com¬

Company

staff,
William A.

Banking De¬
partment. After eight years' em¬
ployment with Frederick Robert¬

ice, including 17 months of

Sexton

has

bank

examiner

in

resumed

H.

Department's

by
Superintendent

years

serv¬

Returning to Minneapolis in 1946,

Depart¬

charge of the Department's

military

bat duty in the European theatre.

the

Geser

His

in 1942, Parsons emerged as a Cap¬
tain in the 70th

New

Charles

announced

North

-He joined the tax division of the

State Banking

on

mercial

school and the

of

Schoch, who has retired after 28

Mr.

Parsons attended Lidgerwood high

resources

exceed

$8,500,000.

Security,

National Commercial Bank & Trust

ment, succeeding

ning employee retirement, pension
and profit-sharing plans.
of

*

Geser

City, has been appointed a
Deputy
Superintendent
of
the

Lyon,

native

*

H.

as

$27,500.

was

York

and other groups which are
plan¬

A

in

"C. Douglass Buck, Chairman of

of Aug. 4 from $72,500
to $100,000 by a stock dividend of

was

bank.

Lawrence

Parsons, for the past four

while

over

Thomas W.

capital

on

Dickey

olis.

the

total

banks

Chairman

on

AUTHUR D. PARSONS has been

two

State Bar in 1914.
He
his own law
practice

conducted

Equitable, will become Honorary

tors

he

Bankers

and

shares

with

the

000,000,

NEW
NEW

REVISED

ago.
Asset value per share on
July 31 amounted to $8.78 on 481,473

merged bank. Combined
of

CONSOLIDATIONS

Group

totaled $4,234,868 on
an

News About Banks

Common

California

that initial dividends of $3 a share
will be paid on the stock of the

year ago.

21

its

A native of Little

Rock, Arkan¬
Turner, received his degree rn

of July 18 from $250,000
to $300,000 by the sale of $50,000

sas,

of

University of Arkansas, where he

new

Business Administration from the

stock.
%

if

if

was

ap¬

a

member

of

Kappa,

Sigma

Fraternity.

proved

Prospectus from your

founders of the Roosevelt Savings
Bank.
At various times he had

Investment Dealer

served

Trust

Committees of the Board of Trus¬

special meetings Sept. 17 and also
by Federal and State regulatory

tees, and at the time of his death

bodies.

of service with the company. Bo
in Michigan, Mr. Smith moved

p oer

California

li
imited partner in Ellis & Yarrow,

or

WADDELL& REED, INC.
Principal Underwriters
40 Wall St.
New York

City

1012 Baltimore Ave.

was

a

member

Chairman

of

of

the

all

the

Auditing

Committee.

The

of

stockholders

shares

#

Cazenovia

*

National

of

Cazenovia, N. Y. increased its

both

banks-

Under the agreement,
of

stock
as

Trust Co., will

Bank

two-thirds of the

over

to be known
*

Kansas City, Mo.




as

by

of

the

new

of the

1*4

bank,

Equitable Security

new

dent

and
Co.

L.

Smith,

director
of

Los

Vice-Presi¬

of

California

Angeles,

Cal.

recently completed his 30th

year

in

1905

and

following

Ellis-Yarrow Admit
PHOENIX,
has

Ariz.

been

—

Robert

admitted

L.

as

.

6f >240 North Central Avenue. Paul
University of Southern Yarrow has resigned from general
stock for each California he was admitted to the partnership in the firm.

be issued for each

share of Equitable stock and
shares

at

Benson

two

graduation

Law at the

from

the

College

22

The Commercial and Financial Chronicle

(670)

Continued, from page

created

not

3

SEC's "Regulation A" Revision
Would Penalize Small Business

Secuiity Flotations "
such

an

issue

to

basis than will

an

underwriter

even

on

best efforts

a

promotion having as its purpose wild-

a

So here we have an
through the medium of the

provision.

such

any

attempt to make a new law
creation of new rules.

intended

or

CLEVELAND, Ohio
Russell

employed, are again being used by the SEC to usurp
new
powers in an area where Congressional intent is
clearly against such extension.
With Regulation A modified, as currently proposed,
the SEC would be the autocrat with unbridled powers
With
was

the

primarily in capital gains and wants a fixed
portion of its portfolio invested in wholly speculative

upon

issues.

public tendency to gamble at least in part
wise been diminished by the SEC regulations.

The
in

no

The type

has

Reg¬
and,
currently the oils, mining, the electronics

of business which lends itself best to
is controlled by public demand

ulation A offerings
as

already noted,

and the nucleonics

To attempt

are

in detail

interpretation of the 14 pages

an

itself constitute an

statement of the proposal

itself

re¬

quires 14 pages, it must be clear that interpretation and
any attempt to appraise possibilities which might arise
cannot now be gone into in any detail because of space
limitations.

-V

tion.

Gottron,
Russell

con¬

C'o.'s

the violation of the Securities Act in

or

there is

current

no

reason

of the high¬

lights.
that under the present Regulation, no

selling literature at all is used in many cases and that
the new Regulation would require the use of an offering
circular containing a minimum of basic information.

connec¬

sell

Does the SEC

the

w as

to

deny that the

exemption of

new

Does

the

1933

flotation of small issues

purpose

of the Congress

harassment.

securities

berships

If

as

used in connection with

full

registrations and that if it were the Congressional
intent that a prospectus be issued in connection with each
small offering under Regulation A, that the Congress
could so have provided?
These

Regulation A offerings are commonly referred
industry as "penny stocks." It is not
uncommon for the initial
offering price to be 15 cents,
25 cents, 30 cents or 40 cents per share. This is ordinary
everyday knowledge, as is also the fact that these issues
are
nearly always completely speculative.

to in the securities

Under such circumstances, does the
the investor is entitled to

SEC

suppose

that

guaranteed investment? We
paternal concerns of
believe, are directed more toward
a

know that this sounds odd, but the

the

*

Commission,

we

making itself the fountainhead of increasing power than
the protection of the public.
Why a prospectus, disguised under the name of "offerin circular"?
Why a prospectus in relation to "penny
stocks" offered as a pure speculation?
Why a prospectus in an area where the Congressional
aim was simplicity and no prospectus has been required
up to now?
If this proposal is to be put into operation, you may
depend upon it that from time to time this so-called "of¬
fering circular" will be amended and modified and en¬
larged to a degree where the SEC will render nugatory
the entire Congressional intent with respect to these small
offerings.
We now come to that part of the proposal where the
SEC seeks to arrogate to itself the right to terminate the
exemption from registration "where it appears that the
conditions of the exemption are not satisfied or where
fraud or deceit is being employed, or would be employed,
in connection with the
offering and sale of the securities."
Here is a clear example of the intended use by an
administrative agency of
legislating through the medium
of its rule-making power.
Congress

could

certainly have provided for the
termination of the exemption if it wished to do so, and
the Commission did not recognize the existence of any
such intent because up to the
present time, the SEC had.




1933 and

style in 1946. Mem¬

held in the " Midwest

are

sociation of Securities
National

Dealers, and

Traders

Security

Asso¬

ciation.

t

industry,

as

Japan, West Germany
Join Monetary Fund

Congressional intent is to be supported and small

that the present

International

The
Fund

ment

have

admission

this
a

that

column

stated in
believed that,

I

general rule, it

policy for

well trained

a

salesman

curities

time

valuable

not the

was

to

trying

se¬

his

spend

to

educate

were

far outside the

circle of educated

security buyers.
who is selling

people who
A

young

man

securities for

Edgerton, Wykoff &

Company, of Los Angeles, by the
name of Abie Ohanian,
has taken
issue

with

rather

subject

He

me.

that
the

of

business

"old

in

timers"

to

seem

well

He admits that
agree

this

with

my

thesis, namely, it is best to pros¬
business

people
who "know something" about in¬
pect

for

among

enterprise, and

thinks that he is in

where

Fed-;

to these

quota

in

the

Interna¬

he

has

business

a

func¬

two-fold

a

and

its

subscription

the.

to

capital stock of the Bank is 2,500
shares with a total par value of,
$250 million.

The quota of the Federal Re->
public of Germany in the Inter¬
national Monetary Fund is $330
selves, and secondly he believes
that if there were more people million and its subscription to the
who own securities there would capital stock of the Bank is 3,300
shares with a total par value of
be less socialism in the country. I

tion.

to

One

would say
tion

help people build a

financial

secure

for

future

this is
which

upon

could build

good founda¬ $330 million.

a

young

a

successful

a

them¬

man

career.

„

Fifty-three

members

Bank.'

me

this

on

is

believe

I

worth considering.
most

sent

has

interesting slant

an

He beiieves in free
he

of Japan and the

tional Monetary Fund is $250 mil¬

JOHN DUTTON

I

Develop¬
recent-'

the

institutions.

Japan's

ago

and

announced

eral Republic of Germany

Securities Salesman's Corner
weeks

Monetary

the International Bank

and

Reconstruction

for

Several

<

And the World Bank

harassed, it is vital

proposal should not be adopted.

lion

simplicity in the
also part of the Congressional

deny that Congress knew the

of the prospectus

Company in

Exchange, Investment
Bankers Association, National As¬

sharply opposed by a unified
well as by all organizations having

business is to be assisted rather than

best

functions

Cottron

Stock

the interest of the investor at heart.

as

the Commission

&

to the present

We recommend that it be

By

intent?
Does

A.

in

name

Russell

to believe that its attitude has

hesitate to harass those engaged in underwriting and
marketing Regulation A offerings.
Indeed the lengthy proposal is in itself no small

deny that

was

no

Gillis, Wood & Company,was changed
to Gillis,.

as

the

wise changed. Since these small' issues are dealt
"over-the-counter," we believe that the SEC will not

-

Commission

with

Richard

issues not exceeding $300,000

help small business?

of

Established

a spade a spade, and use the
"prospectus" instead of the term "offering circular"?

What difference in the two does he envisage?

in

di¬

0 n

other changes.

Why doesn't he call
term

t i

James N. Rus¬

any

in

the

under

against the over-the-counter market, and

as

continue

re c

past, the Commission has not hesitated to favor

auction

the

&.

ousiness

will

■

However, we do want to take up some
Mr. Cook says

Clinic Founda¬

offering or sale of the securities.
However, that is just so much bilge.

in
mere

deceit

of

Cleveland

the

tion with the

In the

elaborate task.

Where the

or

rv

or¬

treasurer

templates this proposal would be invoked only in those
cases in which it is apparent that the normal procedures
will not be sufficient to prevent the perpetration of fraud

popular.

composing this new proposal would in

Commission

True the Release contends that the

securities,

is

become

der to

security through mere capriciousness.
such torpedoed flotation would fall
the shoulders of those who are ill able to afford it.

terested

Cleveland

withdrawing

a
of

burden

The

Gottron,

Commerce!

has announced that Richard

nership in

fraud

—

Union

from the part¬

clairvoyance it might predict that
or would be employed and thus destroy

catting in oil, mining or electronic development. The rea¬
son for this is that a large segment of the public
is in¬

marketing of

Co.,

Gottron

A.

arbitrary
intended

&

Building,
firm,

all activities under it.

with

Thursday, August 21, 1952

.

Gofiron to Be Treas.

to be

in connection

.

Cf Gleve. Foundation

"deceit," employed,

The terms "fraud" or

.

sends

He

out

little

a

nations

of the

Fund

Admission

are

and

of

now

of the

Germany

personal

brought the total of members';
quotas in the Fund to $8,733,500,-;
now has about 300 on his list.
He
000.
The total subscribed capital
writes in plain language to his
of the Bank is now $9,033,500,000.
friends about securities, what they
are

his

to

letter

and

what

friends
what

they

into

news

some

friends.

it

think

I

do.
that

understand

he

He puts
helps his
about

more

3 With Waddell & Reed
(Special to The Financial

-

Chronicle)

they

can do to help them¬
KANSAS CITY, Mo.—Edward
financially.
He modestly D.
Kepler, Arthur E. Miller and
pointed question, if this is what "gives them some of his views and
Walter A. Peters have joined the
you fellows have been doing these he isn't afraid to tell them things
staff of Waddell & Reed, Inc., 1012
past 25 years, could this be the like this—"The security market it¬
Baltimore Avenue.
reason why we only have
6,500,- self is undergoing a change. The
000 shareholders in American in¬ little stockholder is gradually re¬
Reinholdt & Gardner Add
dustry? And well it might be an placing the large stockholder. A
important reason for this under¬ much greater interest is being
(Special to The Financial Chronicle)
selling of the American people by taken by the man in the street.
SPRINGFIELD, 111.—Bruno W.
the security industry.
One reason, of course, is because
Bierman
has
become
affiliated
Quite frankly, I believe that of the pressure being applied by with Reinholdt
& Gardner, Reisch
most of the people in the invest¬ other economic institutions in the
Building.

Then

vestments.

ment

business

have

not

figures

are

done

prove

he

asks

me

that

aware

the

we

good job. The
it. Possibly we have
a

selves

world.

You

will

be

that

sure

I

will seldom call upon you—unless

This

requested.

way,

both

you

Two With Merrill

Lynch

I'm
(Special to The Financial Chronicle)
people too and I will not lose time.
often. Meanwhile, if I remember not interested in getting invest¬
GREENSBORO, N. C. — Mrs.
the latest figures of the Brookings ment business by high-pressuring
Helen L. Gibbons and Walter Gi
report, they claim that about a anyone. I have enough confidence Taylor have become
associated
half of this 6V2 million stockhold¬ in my friends to know that when
with Merrill Lynch,. Pierce, Feners own shares in
only one com¬ they can afford to invest they will ner & Beane, 107 West Gaston St.

to the

gone back

same

call

pany.

upon

me.

It is said that the

to for¬ wise man knows his own limita¬
get that there are other ways of tions. This certainly applies to the
/
doing business than the way we brokerage business."
are doing it.
Mr.
Ohanian
We get into a rut.
seems
to
be
a
Sometimes

we

are

prone

Rejoins Dean Witter
(Special to The ■Financial' Chronicle)

:

•

This young man tells me that he
is only age 23, and that he has
been
the

learning the business from
inside

out

for

the

past

five

Ore.—Richard
has
young man who has a plan and Wood
rejoined the staff of
he is willing to work at it.
&
In Deah Witter
Co.,
Equitable
fact, he wrote me, "I shall con¬ Building.
He has recently been
tinue to sell Mutual Funds, edu¬ in the armed service.
cating my friends, and one dav

office boy, cash¬
ier department helper, order desk will

years.

He

clerk and

was an

now a

done exactly
1

suggested.

spent

He has

you

the opposite of what best
Much of his time is

educating

cerning

salesman.

his friends con¬

the investment business.

be able to communicate with

and say, 'That
way

is the

to sell the so-called

investor'?'
say,

my way

"More

I

think

power

we

to

will

him."

new

all

PORTLAND,

Joins R. A. Harrison
(Special

to

The

Financial Chronicle)

SACRAMENTO, Calif.—Wm. E.
Jenkins

is

now

with

Richard

Harrison, 220 Sixteenth Street.

A.

Number 5144

Volume 176

The Commercial and Financial Chronicle

...

(671)

The

Indications of Current
Business

Activity

week
Latest

AMERICAN IRON

STEEL INSTITUTE:

AND

steel

Indicated

operations

Aug. 24

or

Previous

Week

(percent of capacity)

following statistical tabulations

latest week

Month

on

ingots

AMERICAN

."

'

PETROLEUM

oil

Crude

Crude

output—daily

15.3

Residual

fuel

oil

oil

oil

1,938,000

317,000

2,007,000

Aug.

6,265,850

6,132,150

6,075,050

116,909,000

7,033,000

7,013,000

Aug.

22,984,000

23,318,000

23,251,000

of

2,678,000

2,417,000

10,510,000

10,184,000

8,906,000

(bbls.)

Aug.

at

8,856,000

8,554,000

8,943,000

of

117,248,000

116,243,000

118,332,000

dollars):
$42,458

9

28,808,000

27,638,000

24,306,000

90,035,000

86,128,000

72,515,000

51,414,000

48,395,000

freight loaded (number of cars)—
Aug.
Revenue freight received from connections (no. of cars)Aug.

9

782,171

732,920

572,387

643,691

584,515

461,787

COTTON

to

OF

August

666,510

PRODUCTION

U.

S.

Private
Public

OF

S.

DEPT.
of

as

All

construction

and

Federal

$237,500,000

$253,106,000

$295,779,000

103,827,000

114,166,000

117,291,000

162,373,000

149,279,000

181,613,000

97,638,000

56,739,000

85,770,000

88,405,000

58,596,000

105,634,000

63,509,000

93,206,000

39,042,000

_

municipal

—

_

Bituminous

(U.

coal

Pennsylvania

11:

Aug.

coke

_

_

and

lignite

_

.

ELECTRIC

Electric

BRAD STREET.

IRON

AGE

steel

steel

(per

703,000

All

*23,900

9,600

139,700

Durable

87

83

PRICES

(E.

Electrolytic copperDomestic relinery
Export
Straits

refinery

7,626,608

—

AND

INDUSTRIAL)

7,495,322

7,180,328

7,164,469

123

103

158

tin

(New

Lead

(St.

4.131c

ton)

4.131c

Zinc

$52.6!

$42.00

$39.33

$43.0(

24.200c

24.200c

24.200c

34.925c

34.800c

33.875c

27.425c

121.500c

121.500c

121.500c

16.000c

16.000c

15.800c

15.800c

13.980c

13:500c

15.000c

Aug. 19

97.18

96.59

98.69

98.72

109.79

109.79

109.79

111.07

114.08

114.27

114.08

115.63

112.00

112.19

112.19

114.85

109.24

109.42

109.42

110.15

103.97

103.97

104.14

106.92

106.92

106.92

107.80

109.42

109.42

109.42

U.

S.

BOND

Average
Aaa

PRICES

Government

DAILY

Bonds

corporate

—

_

-

113.12

113.12

114.66

.

—

'

__

Aa

_

—

__

_.

__

|

_

Aug. 19
Railroad
Public

Group

Utilities

Industrials
MOODY'S

Group

Group

BOND

__

_

—

DAILY

YIELD

__

—

—

Aaa

AVERAGES:

■■/

Baa

Public

Death

Industrials
MOODY'S

Orders

£

$149,388,000

$149,159,000

38,111,000

43,178,000

8,367,000
29,175,000

8,666,000

8,846,000

30,671,000

31,338,000

Surrender

55,895,000

58,473,000

52,484,000

values

Production

of

activity—

orders

(tons)

_

at

of

end

PAINT

194!)

DRUG

AND

AVERAGE

3.05

3.05

2.91

—

REPORTER

3.20

3.16

Industrial

3.5L

3.51
3.34

3.20
3.00

437.6

436.8

9

220,763

208,818

120,463

223,293

EXCHANGE—SECURITIES
sales

Odd-lot

dealers

by

Number

of

84

.

of

.

Dollar

51

94

452,504

607,643

*109.63

109.32

110.07

115.44

MIDLAND

Odd-lot

by

Customers'

short

Customers'
Number

(customers'

other
short

other

Total

$45,228,327

20,890

19,439

19,819

29,250

85

105

62

502

20,805

19,334

19,757

557,787

Less

2

2,887

3,606

586,227

532,464

555,873

$22,834,189

$23,634,075

2

166,740

147,760

153,100

Aug.

2

166,740

147,760

153,100

Personal

$35,722,885

..

Other

ON

THE

Other

PRICES

2

273,750

260,340

241,400

381,510

All

FOR

__r

ACCOUNT

larm

Total

-

Initiated

on

—

the

207,000

175,460

427,870

6,716,250

8,139,250

6,891,710

8,567,120

26

538,450

540,800

605,080

26
26

124,70Q

124,400

109,480

458,450

494,550

670,140

26

562.750

582,850

604,030

107,340

88,460

146,100

189,440

11,400

7,100

2,600

23,640

U.

101,300

140,460

191,120

171,110

112,700

147,560

193,720

194,750

;

,

S.

207,875

258,920

348,830

41,160

28,430

264,565

264,762

287,820

305,922

316,250

GOVT.

at

NEW

SERIES

—

U.

S.

848,823

837,135

1,010,100

1,477,220

179,770

172,660

140,510

258,570

—July 26
July 26

803,915

863,672

973,490

1,036,332

1,114.000

1,472,838

-

335

372

418

281

291

270

175

180

221

$275,000,000

$275,000,000

$275,000,000

263,072,711

259,105,178

255,656,634

34,212

DEBT

45,565

28,313

$263,106,924

$259,150,744

$255,684,947

634,631

644,145

678,301

$262,472,292

$253,506,598

$255,006,646

.16,493,401

19,993,353

$259,150,744
6,968,827

$255,684 <H7

7,925,452

$255,181,472

$252,181,917

$250,065,023

LIMITATION

(000's omitted):

amount

that

may

be

outstanding

time

gross

public debt

Guaranteed

DEPT.

Total

not

owned

the

by

[

Treasury

public debt and guaranteed
obligations
:
gross

Deduct—other

outstanding public debt obli¬
gations not subject to debt limitation
Grand

Balance

OF

obligations

under

total

face

outstanding

*

of obligations, issuable
authority
—-4

amount

above

1 J, 12,527,70)7

,

-

Vug. 12

—

112.0

*111.9

111.1

UNITED STATES

Vug. 12

*110.1

109.4

110.8

*110.4

109.2

As

116.4

*115.5

113.7/

General

Aug. 12

commodities other than farm and foods

110.1

Vug. 12

-Aug. 12

foods

112.7

112.7

590,000




barrels

of

foreign

crude

GROSS

DEBT

DIRECt AN»

1

'*■

'

111.91

GUARANTEED—(000'S
of

Net

([Includes

380

306

394

4

194

239
•V

1,214,268

983,685

products

"■Revised.

279

'

313

products

STATUTORY

face
any

409,128

————

PRICES,

308

373,018

303,235

July 26
„—-July 26

—

357

179

Outstanding—

36,110

July 26
July 26

:

and

438

313

280

animals

-As of July 31
Total

Total

43,670

i

_:

;

435

285

[

crops

223

190

crops

229

436

:

.'

+

271

244

227

—

250

303

hay

272

'

203,035

Meats

All

305

100—As

868,960

LABOR—(1947-49= 100):

Farm

290

INDEX

=

Dairy products
Poultry and eggs

198,826

438,050

July 26
July 26

sales

•Processed

*12.6
*232.5

AGRICUL¬

1941

i

Meat

938.956

?

:

—

OF

___.

Livestock

>

__

commodities

*12.3

*242.9

293

and

Gil-bearing

July 26

.___

-—2

:

Commodity Group—
All

*20.3

'

12.5

245

Tobacco

Truck

initiated off the floor—

purchases

WHOLESALE

•21.5

21.5

,

Fruit

July 26

sales

Total

*49.0

243.9

FARMERS

DEPT.

190!)-July,

Cotton

5,859,290

K

———————

BY

S.

grain

5,652,290

floor—

——.____—;

sales

sales

*4.2

*51.2

270

219,550

—July 26
July 26

,

—.

purchases

Other

dividends

grain

5,467,210

July
-July
July
July

sales

Short

and

products

5,247,660

round-lot transactions for account of members—

Total

*3.6

*4.4

51.5

'

MEM-

OF

;

__

sales

*3.6

Crops

Juiy 26

sales

Other

*28.0

3.6

:

4.4

income

RECEIVED

Food

sales

Total

*20.3

*31.8

social

income

TURE—August,
of May 15:
Unadjusted—

(SHARES):

purchases

Short

*45.5

*21.0

32.2

for

.__

NUMBER —U.

217,160

July 26

transactions

Total

*47.0

*.

—_,

.___

contributions

interest

July 26

sales

*73.1

47.4

industries

Feed

sales

Other
Total

*76.9

217,160

YORK

NEW

purchases

Short

*165.3

76.2

1

transfer payments..
nonagricultural income

sales—

transactions

Total

*168.9

•173.4

.

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

sales

*$251.4

*176.7

173.8

Total

Total

STOCK TRANSACTIONS

OF MEMBERS

TRANSACTIONS

Other

*$262.5

177.1

disbursements.

employee

r

Total

£83,295,000

Proprietors and rental income

800,307

$24,478,557

__.

sales

£16,590,000

salary receipts, total

Other labor

14,911

1,914

2
2

-Aug.
SALES

ROUND-LOT

sales

Short

£7,948,000

COMMERCE)—Month

insurance

815,218

sales

Total

OF

employer

Service

28,748

536,070

sales

Other

$27,519,000

STATES

Commodity producing industries..
Distributing industries

dealers—

STOCK

AND

Short

ROUND-LOT

$30,532,031

Aug.
—

shares.

Round-lot

Total

$30,115,619

2

ACCOUNT

FOR

$32,123,853

589.114

sales
;

ROUND-LOT

EXCHANGE

980,026

2

-Aug.

;

purchases by
of

664,551

2

sales

Number

$28,464,000

BRITAIN-

dealers—

by

sales

Other

TOTAL

637,307

-Aug.

[

shares—Total

Short

Round-lot

697,796

-Aug.

sales
of

2

Aug.

..

sales

Number

33,813

-Aug.
sales——

$28,767,000

21.3

GREAT

IN THE UNITED

Government

value

Round-lot

23,232

2

sales

Customers'
Dollar

22,176

sales)—

sales

sales

shares—Total

of

total

24,301

2

sales

Customers'

\

Total

2

dealers

$2,384,000

May (in billions):
personal income

Wage and

-Aug.

of orders—Customers'

$2,571,000

BANK, LTD.—Month of July

(DEPARTMENT

of

*

purchases

Number

367,000

$2,803,000

$268.4

ISSUES IN

PERSONAL INCOME

Total

2

value

•505,000

.

purchases)—

shares

$1,512,000

497,000
339,000

;

NEW CAPITAL

STOCK

orders—

Number

$1,735,000

537,000

Total

COMMISSION:

EXCHANGE

(customers'

May

MONEY IN CIRCULATION—TREASURY DEPT.
^As of May 31 (000's omitted)

444,210

89

Y.

of

..

INDEX—

N.

INSTITUTE

166,587

456,005

ON

—

Month

458.4

161,404

Aug. 15

SPECIALISTS

AND

—

2.92

Aug.

1««

DEALERS

PURCHASES

INSURANCE

582,000

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

LIFE

(000's omitted):

3.13

3.00

INSURANCE

OF

3.29

3.20

LIFE

3.50

3.34

256,287

_

PRICE

53,330,000

$338,335,000

Ordinary

3.20

233,200

Z

OIL,

2.87

_

period

58,952,000

$344,261,000

$1,684,000

2.57
3.11

434.4

_

55,142,000

$336,714,000

Total

2.59

9

___

(tons)

Percentage
Unfilled

_

!

Policy dividends

2.95

ASSOCIATION:

(tons)

TO

LIFE

OF

37,479,000

3.18

3.20

Aug. 19

INDEX

1.484

endowments

2.74

Aug.

COMMODITY

received

1.681

*1.531

$150,656,000

PAYMENTS

benefits

2.94

3.01

Group—

Group

NATIONAL PAPERBOARD

*1.745

1.540

Disability payments
Annuity payments

Matured

3.18

3.34

_

Utilities

1.746

:■

3.51

Group

$1,599

goods

INSURANCE—BENEFIT

3.06

—

Railroad

*$1,657

INSURANCE—Month of May:

3.21

__

;

_

39.4

$1,658

.

POLICYHOLDERS—INSTITUTE

2.95

__

A

41.8

*38.9

goods

Nondurable

3.18

—

Aa

40.7

♦41.1

39.4

.

goods

manufacturing

2.70

corporate

Average

*40.2

earnings—

Durable

AVERAGES:

_

58.47

40.4

.

110.70

112.93

at

70.27

*59.56

17.500c

Aug. 13

.

_

$65.08

*71.72

41.1

:

goods

16.800c

,

_

All

17.000c

15.800c

Aug. 13

.....

_

_

manufacturing

Hourly

103.000c

16.000c

.Aug. 13

at

at
at

*$66.61

71.76

60.68

.

goods

Nondurable

24.200c

Aug. 13

June:

Hours—

LIFE

MOODY'S

6,878,000

$66.98

of

goods

Nondurable

Durable

_

(East St. Louis)

8,975,000

6,739,000

manufacturing

Durable

4,131.

$52.77

$42.00

—Aug. 12

4.131,c
$52.77

J. QUOTATIONS):

York)

York)

Louis)

15,853,000

9,045,000

6,665,000

goods

Earnings—
All

103.97

(New

Lead

15,784,000

9,006,000

goods

LABOR—Month

&

DUN

—

at_

at

128.1

FACTORY EARNINGS AND HOURS—WEEKLY
AVERAGE ESTIMATE— U. S. DEPT. OF

PRICES:

& M.

105.0

127.9

100)—

=

87

All

METAL

5,589,000

102.9

_

manufacturing

Nondurable

RESERVE

141

gross

7,406,000

5,403,000

101.9

workers)

of employees in manufac¬
turing industries—

10,171,000

521,000

lb.)

(per

12,993.000

7,321,000

of

____

manufacturing

5,190,000

$52.77

Scrap

All

714,000

INC.

COMPOSITE

Finished

12,724,000

5,323,000

15,671,000

(production

Payroll Indexes (1947-1949 Average

47,300

INDEX—FEDERAL

kwh.)

000

(COMMERCIAL

12,599,000

SERIES—Month

goods
!
Employment Indexes (1947-49 Avge. =100)—
All
manufacturing

8,350,000

INSTITUTE:

fin

output

FAILURES

15,212,000

DEPT.

goods

713,000

9

1_

STORE SALES

manufacturing

9,600,000
Aug.

._

90

EDISON

14,500,000

128.2

S.

Estimated number

(tons),

(tons)

(tons)

DEPARTMENT

_

PAYROLLS—U.

Nondurable

S. BUREAU OF MINES):

anthracite

223,886

OF

7,276,000

AND

LABOR—REVISED

Durable

$214,929,000

75,127,000

_

COAL OUTPUT

Beehive

Aug. 14

—

construction

State

«•*,

176,356

,

U.

—

-

May:

CONSTRUCTION—ENGINEERING

construction

$68,981

-•

14,735,000
EMPLOYMENT

NEWS-RECORD:
Total

$70,185

'

RAILROADS:

Revenue

ENGINEERING

10,270

20,643

COMMERCE)

1

AGRICULTURE—Estimates

809,365

9

bales

(DEPT.

47,899,000

CIVIL

$38,068

*9,662

*18,010

$69,996
GINNING

Running

87,176,000

-51,302,000

at

AMERICAN

*$42,513

9,478

18,060

___

COTTON

127,750,000
31,027,000

9

OF

Ago

May

Total

8,598,000

9

9

(bbls.)

Year

Month

COM-

OF

Month

—

Previous

2,353,000

10,178,000

Aug.

ASSOCIATION

11

DEPT.

SERIES

NEW

Retail

22,135,000

2,604,000

Aug.

Aug.

tuel

of that date:

are as

6,592,000

__Aug.

_

(bbls.)

INVENTORIES-

(millions

6,231,250

Aug.

(bbls.)

average

(bbls.)

output

Residual

BUSINESS

Manufacturing
Wholesale

Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Aug..
Kerosene (bbls.)
at
Aug.

Distillate fuel

2,019,000

of quotations,

cases

either for the

are

Month

100.4

of

(bbls.)

output (bbls.)
fuel oil output

Distillate

(bbls.

average

4

,

stills—daily

output

Kerosene

[

to

runs

Gasoline

Aug. 24

in

or,

Ago

93.3

INSTITUTE:

each)

that date,

MERCE

tons)

(net

condensate

and

gallons

42

castings

and

Dates shown in first column

Latest

Equivalent to—
Steel

production and other figures for the

cover

Year

Ago

Week

97.2

month available.

ot

month ended

23

runs.

July

31,

fund

r-~,

omitted):

«,

r

$263,106,924

-

balance

debt

Computed annual rate

—

2.339%

2.329%

5,619,924

2.267%

The Commercial and Financial Chronicle
24

.

.

Thursday, August 21, 1952

.

<672)

Central, Mountain and Pacific States. Three regions,
reported declines: New England States, East
North Central, and the West South Central States. Three regions
had more failures than last year, while declines from the 1951

East South

Continued from page 5

on

Indusby

The State oi Trade and
scramble, it adds.

such signs in the

see

Detroit, some automotive men

In

States.

^

-

in

amount of conversion

lining up what small

wholesale food

The

last week to reach a new peak for
The figure for Aug. 12 rose to $6.66, from $6.65 the week

the year.

this time

It compared with $6.94 at

before.

represents the sum total of the price per pound of

foods in general use,

journal points out, some
structural steel fabricating shops which thought they might run
out of material before the flow of steel from mills could reac
them again believe now they will be able to carry on without a
break. Shaoe production has come back more rapidly than .ney
expected, and they are not being pressed greatly with new work.
Warehouses too report finished steel is reaching them in some¬
what heavier volume then they expected. At Chicago, the search
for warehouse steel isn't as extensive as was anticipated. Reasons.
Some lines of manufacture are soft, and steel inventories were
<iot exhausted fully during the steel strike, "Steel
reports.
Philadelphia area, this trade

and its chief function is to show the gen¬
at the wholesale level.

Wholesale Commodity
After

turned downward to stand at 293.15 on
Aug. 12. This compared with 293.84 a week earlier and with 300.79

Other reasons why

steel

the steel drought may be broken sooner

Iron

and

Institute, announced that

ingots

1,938,000

tons.

month

A

Electric Output Forges

ago

at

in line with earlier private estimates, and if

realized,

larger than last year's crop of 2,941,000,000 and the 10-

and the record production of 1,367,000,000 bushels in 1947.
featured by fairly heavy book¬

was

Cocoa lacked buying sup¬
port and prices continued to weaken. Warehouse stocks of cocoa
rose slightly to 127,023 bags, from
125,609 a week ago, and com¬
pared with 187,401 bags at this time a year ago. Roaster interest
in coffee was only fair.
Trading volume for the week was small
with prices holding in a narrow range. Demand for refined sugar
slowed down in the latter part of the week, influenced by the

Ahead in Latest Week

decline in

the electric light

industry for the week ended Aug. 16, 1952, was esti¬
7,626,608,000 kwh., according to the Edison Electric

Institute.
The current total

was

of moderate

output
output stood at 15.3%, or

The amount of electric energy distributed by
mated

This

would be

price concessions by mills.

raw

Lard moved

values.

sugar

declines

Aug.

in

hog prices which had advanced to highest levels for
before. The drop in hog values was
largely attributed to an embargo on shipment of swine from the
Chicago market.
the past two years the week

131,286,000 kwh. above that of the pre¬
It was
462,139,000 kwh., or 6.5% above the total output for the week
■ended Aug. 18, 1951, and 1,256,778,000 kwh. in excess of the output
reported for the corresponding period two years ago.

1952,

9,

four-

sales,
pe¬

Aug. 9, 1952, depart¬
registered

drop

a

week

year.

trade

in

displayed

according

to

observers,

the

1951

week

New

York

last

better tone and,

a

estimates

of

decrease
cut

was

trade

from

to

the

9%

as.

against 13% in the week previous.

According

store

to

Board's

serve

the

Federal

index,

sales in

Re¬

department

New York

City for

weekly period ended Aug. 9,

1952, decreased 9% below the like-

period of last
ing week
vised)

a

was

In the preced¬

year.

decline

of

11%

(re¬

recorded from that of

the similar week of 1951, while for
the four weeks ended Aug. 9, 1952,

decrease of

10%

below the level of

registered"

was
a

the period Jan. 1 to Aug. 9,
volume

declined

For

year ago.

10%

1952,

under

the-

like period of the preceding year.

B. M. Jacobs

Opens

SAN ANTONIO, Tex.

—

Ben M..

Jacobs is engaging in a securities
business from

offices

Travis Street.

123

at

East

•

sharply lower toward the close of the current week.

as

the

of

the

below the like period of the

Retail

irregularly downward

during the week, reflecting weakness in vegetable oils and sharp

level

For

change. For the

no

preceding

a

317,000 tons.

-arid power

yield of 3,136,000,000 bushels of corn this year.

ings of Spring wheat bakery types around mid-week as the result

Aug. 11, the rate was 93.3% (revised) of capacity and actual
totaled

a

1 report of the Department of Agriculture indicated

a

Aug. 9, 1952,.

the

week.

ended

of 2%

the

The domestic flour market

starting

In the week

steel for castings.

and

generally good.

The Aug.

the

93% of the steelmaking
-capacity for the entire industry will be at an average of 97.2% of
capacity for the week beginning Aug. 18, 1952, equivalent to 2,019,of

remained

year

Steel

operating rate of steel companies having

tons

southeastern areas the principal
strengthening factors. Prices worked lower toward the close, how¬
ever, as a result of beneficial rains and improved growing condi¬
tions in the corn and soybean belts. Wheat prices were also affected
by predictions of a record-shattering Canadian wheat crop this
year.
Corn prices weakened as conditions in the main corn belt

of 3,012,000,000 bushels. The total wheat crop was
forecast at 1,289,000,000 bushels. This was slightly above the esti¬
mate of a month ago, and compared with 987,000,000 bushels last

been anticipated, concludes "Steel," are the re¬
production after the strike and the record-high

American

showed early firmness with

year average

capacity of the steel industry.
The

Most grains, except corn,

reports of drought in southern and

than might have
of

dominated by the weather during

Grain markets were largely

on

taken from

as

ended

above

preceding

the like date a year ago.

the week.

rating near bars in scarcity, continue
In heavy demand, although from some areas there are reports plate
c fabricators have no large projects pending. Presently the increased load of defense requirements on sheet mills is hampering
production of light plates on them.
One reason the steel drought resulting from the strike may be £
of only short duration is that there was strong belief the steel
industry would not have to operate at capacity all through 1952
-fco meet demand.
Perhaps the strike provided the downtime we
otherwise might have had to reckon with late in the year.

<100

week

2%

ment store sales

compiled

the daily wholesale commodity price index,

sales

store

the Federal Reserve Board's index

by Dun & Bradstreet, Inc.,

Plates, which have been

bound

Department

country-wide basis,

riod Jan. 1 to

Price Index Turns Lower
Early Rise

the

immediate future.

weeks

the highest level for almost two months early

After reaching
in the week,

on

encouraged

of inventories

reflected

the

The

buyers to extend their com¬

many

of food prices

eral trend

it .states.
In

wide¬

led

in shopping and the

surge

paring

rose

The index
31

recent

to

building.

shortages

inventory

for the

a year ago, marking a

drop of 4.0%.

steel they do want,

spread

price index, compiled by Dun & Brad-

street, Inc., again edged higher

attempting to set up a conversion arrangement for only .50 days.
Short runs of conversion work falling riSht into the period when
mills are trying to work out from under a big backlog ot orders
are unattractive, so automakers are meeting only limited success

material

mitments beyond the needs of

Wholesale Food Price Index Sets Another New 1952 Peak

trying to appraise next years

competition for business will have re¬
turned. Their inclination is not to make long-term commitments
for conversion steel, a costly product. One automaker is reported
intense

believe

demand

prevailed in the New England, East North Central, West
Central, South Atlantic, West South Central and Pacific

level
North

the current week. You can

magazine of metalworking,

the weekly
even

the other hand,

was

ceding week when output amounted to 7,495,322,000 kwh.

Following the gains of the week before, raw cotton prices went
The decline reflected reports of improved growing conditions

the result of generous rains in most sections of the belt, and a

slowing down of activity in cotton textile markets at the week-end.
Car

Loadings Reflect

Loadings of
totaled

revenue

782,171

cars,

a

6.7% Gain Above Prior Week

freight for the week ended Aug. 9, 1952
to the Association of American

according

Railroads, representing an increase of 49,251 cars or 6.7% above
preceding week, as the steel mills approached their pre-strike

Ober Co. Formed
FOREST

Considerable liquidation followed publication of the first official
estimate of this year's cotton crop. The report indicated a yield of

14,735,000 bales, or only 2.7% smaller than last year's big crop of
15,144,000 bales, and well above the 10-year average of 11,775,000

Ober is

HILLS, N. Y.—Lester

engaging in the securities-

business

from

offices

at

63-60j

102nd Street under the firm name
of

Ober

Co.

He

formerly-

was

with I. J. Schenin Co.

bales.

the

level of

production.

The

week's

total

represented

decrease of

27,194 cars, or
3.4% under the corresponding week a year ago, and a decrease
of 65,537 cars, or 7.7% below the corresponding week in 1950.
a,

United States Auto Output Drops 35% Due to
Plant
Passenger
^

in

the

States

last

previous week, with output placed at 22,575

the

pared with 35,038 (revised)
cars

in the like week

The decline

a

week,

cars

mainly attributable to Ford which was closed
•down again and to the fact that many other makes were not
yet
back in production.
Total output for the past week was made up of 22,575 cars and
11,035 trucks built in the United States against 35,038 cars and
8,-836 truck (revised) last week and 93,339 cars and 27,656 trucks
in the comparable period a year ago.

Canadian plants turned out 3,400 cars and 1,785 trucks
against
and only 90 trucks last week.

mo cars

Retail

industrial

failures

ended Aug. 14 from 123 in the preceding

in

be down

rose

to

141

in

the

week

week, Dun & Bradstreet,

considerably from the

involving liabilities of $5,000

III from

92

'year ago.

-

No significant change

but remained

prewar

west —2

year ago.

the

week

was

estimated

by Dun &

below

the

was

122

a

to

+2, Northwest

and

South 0

to

+4,

Southwest and

The

interest

in

apparel

wavered

between clearance sales

of

While

the

total

spent

a

and

last

week

it continued to

was

slightly less

be moderately larger

year ago.

stores sold about

slightly

bought

apparel

on

than in the preceding week

an

as

much

as

during the previous week

than in the similar week in 1951.

more

increased volume of lamb and poultry.

oleomargarine

was

noticeably higher than

Household goods

were

a

year

Housewives

The demand for
before.

increasingly popular the past week

as

retailers in many parts of the nation conducted attractive reducedor

of

more

increased

this size

reported

to
a

noted in small casualties.

Retailing accounted principally for the week's
increase, rising
While there was a
slight rise in manufacturing to
2i» from 19, mortality in other
industry and trade groups declined
during the week. Casualties were lighter than a year ago in all
industry and trade groups except retailing where 74 businesses
a

in

Summer clothing and early showings of Fall raiment.

total of

to 86 from 61.

failed

volume

Pacific Coast +1 to -f-5.

1939.

Failures

*

week's rise was concentrated largely in
the Middle Atlantic States which had 60
failures as compared with

price promotions.
floor

In broadened demand

Television sets
ago

were

incidental furniture,

coverings, washers, and decorating materials.

with

easy

were

much

credit terms,

more

new

popular than

models, and

a

many

few months
new

stations

helping to boost shoppers' interest.
The volume of trading in many wholesale markets in
the week
held close to the level of the
prior week but continued to surpass
of the comparable level of a year
ago. The total dollar volume'of

„

.

42 last week. Small

increases took place in the West North




Deepdale Drive.

Regional estimates varied from the corresponding 1951

Food

Despite this increase, casualties were below the 158
and 186 which occurred in the comparable weeks of 1951 and 1950
and continued to

from

levels by the following percentages: New England, East and Mid¬

Slightly

Inc., reports.

253

dollar

year ago.

than
and

business

merchants

Bradstreet, Inc. to be from 1% below to 3% above the level of

was

Commercial

ties

com¬

year ago.

Business Failures Rise

NECK, N. Y.

continued to depend on reduced-price promo¬
shopper interest. As during most of this year, suburban
stores had better year-to-year comparisons than did department
stores in large cities.

in the previous week and 93,339

cars

GREAT

M. Strong is engaging

tions to stir

United

according to "Ward's Automotive Reports," declined about 35%

from

Judson M. Strong Opens

Slightly

Retail stores in most parts of the nation sold about as much
in the period ended on Wednesday of last week as during the prior
week and slightly more than in the comparable week a
year earlier.
Retail

Closings

production

car

Trade Volume Unchanged From Week Ago But
Above Like Period of 1951

Central,

wholesale orders

continued

to

be

about

high reached in the early part of last

year

10%

below the

all-time

when uncertainty about;

OUR

—

in

a

Judson
securi¬

offices

at

2

yolume 176

Number 5144

The Commercial and Financial Chronicle

...

(673)

* INDICATES

Securities Now in Registration
Admiral Corp.,

Chicago, III.

June 2 filed 41,669 shares of
capital stock (par $1) being
offered in exchange for common
stock of Canadian Ad¬
miral Corp.,
Ltd., at rate of one share of Admiral stock
for each two shares of
Canadian Admiral stock held.
This exchange offer will

expire

August 25,

Huyck

Aug. 30. DealerManager—Dempsey &
Co., Chicago, 111.
Statement ef¬
fective June

(F. C.)

19.

Sapphire
Storer

(White,

as

Proceeds—To

additional compensation.
general

funds.

Price—15

Co.

Weld

&

Central

brokers

on

Dooly

Kidder,

Co.)

President.

Co.)

&

San

&

Co.)

Common

Corp.)

Debentures
&

Co.)

000 shares to be under option to underwriters.

Bonds

(Bids

Invited)

Canadian Palmer Stendel Oil Corp.
&

Common

Office—511 Carson St., Carson City, Nev.
Kalmanir, Kline & Co., Las Vegas, Nev.

Co.)

Sunshine Packing Corp. of Penna
(Weber-Millican

Debs. & Com.

Carrier

Corp.

(Harriman

Preferred
Ripley & Co. Inc. and Hemphill,
Graham, Parsons & Co.)

connection with the dis¬

Noyes,

Underwriter—Frank P. Hunt & Co., Inc.,
Rochester, N.YT..

September 4, 1952

14, 1952 of a 2%% stock dividend.
None, but sales will be made
through

Banff

Oil, Ltd
(Lehman

Exchange.

and

W.

C.

Pitfield

be

(Bids

Portland, Ore.

Houston Natural

Aug. 20 filed 450,000 shares of common stock
(par one
cent). Price
$3 per share. Proceeds
To lease and
equip plant for manufacture of sodium
perborate tetrahydrate and for working capital.

(Robert

(9/3)
Aug. 15 filed 78,734 shares of cumulative convertible
preferred stock (par $50) to be offered for subscription)
by common stockholders at rate of one share of preferred,
stock for each 11 common shares held as of
Sept. 3, 1952.
Price
To be supplied by amendment. Proceeds
To¬
gether with proceeds from sale of $13,500,000 of long-

invited)

Bangor & Aroostook RR

★ American Metallic Chemicals
Corp.,

it Carrier Corp., Syracuse, N. Y.

Common

Bros,

Garrett

Ltd.)

Co.,

Equip. Trust Ctfs.

to

Gas

&

Corp

Preferred

&

Sons; Moroney, Beissner & Co.;
Kidder, Peabody & Co.)

—

and

—

—

—

Co. and M. S.

Underwriter—Dobbs
Gerber, Inc., both of New York.

★ Americanos Television Adventures
Corp.
Aug. 11 (letter of notification) 240,000 shares of
stock.

Price

At par

September 5, 1952
Southeastern Fund

&

&

notes, will be used to retire about $9,000,000 of out¬
standing indebtedness and the remainder for the com¬
pany's construction program. Underwriters
Harrimaiu
Ripley & Co., Inc. and Hemphill, Noyes, Graham, Pax-

Co., Inc.)

Light Co
(Offering

—

Common

to

stockholders)

Farmers

—

Bros.

Co.__
(P.

General

Jackson

Webber,

Securities

Corp.;

&

Co.;

Curtis;

Stone

writer—To be determined
by competitive
able bidders: Blyth &

Co., Inc.

Debentures

\

Fenner

&

Beane)

be

to

;

Debentures

received)

September 9,

Co.,

Bids

it Central Illinois Public Service Co. (9/23)
Aug. 18 filed $5,000,000 first mortgage bonds, series
due Sept. 1, 1982. Proceeds—For new
construction. Un¬
by competitive bidding.
Stuart & Co. Inc.; Salomon.
Hutzler; Lehman Brothers; Kuhn, Loeb & Co.
and A. C. Allyn &
Co., Inc.; The First Boston Corp.;
Blyth & Co., Inc.; Equitable Securities Corp. Bids—Ten¬
tatively expected to be received up to 11:30 a.m. (CST)

EST)

noon

(EST)

Erie RR.
(Bids

on

(Bids

capital

Duquesne Light

First

(par $20) to be offered to employees under a stock
subscription plan. Price—$34.20 per share. Proceeds—To
be added to
working capital. Office — 900 N. Market
Street, Wilmington, Del. Underwriter—None.

per

share).

(Bids

California

Water

11

Co

Witter

Proceeds—

(Bids

to

be

October

United Gas

Street, Boise, Idaho. Underwriter—None.

a.m.

October

California

Electric

8,

Power

(Underwriter—to

ment.

Proceeds—For repayment of bank notes and
for
general funds.
Underwriters—In the United States—

1952
Debentures

10

October

EST)

1952

Co
be

Common

a.m.

Key medium for both markets!

Carolina

your

offering a markets in Chicago and the
issue—or publicizing
midwest—professional buyers
services in the marketing and the general
investing

of securities—your most effecfive medium in the midwest's

biggest and best investment
market is the

Chicago Tribune,
Through the Tribune, you

can

reach at

cost both

one

economical

major investment

advertising counsel or
Chicago Tribune
advertising representative.

to

it Centroid Consolidated Mines
Aug. 11 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—50 cents
per share. Proceeds?
—For mining property
development. Office—909 North,

St., Phoenix, Ariz. Underwriter—None.

it Century Food Markets Co., Youngstown, Ohio
Aug. 7 (letter of notification) $300,000 of 5%% convert¬
ible sinking fund debentures
(convertible into common
$7 per share). Price—98%, plus accrued inter¬
July 1, 1952. Proceeds—To reduce bank loans.
Underwriter—H. M. Byllesby & Co., Chicago, 111. Offer¬
ing—Now being made.

est from

it Century Natural Gas & Oil Corp.
Aug. 13 (letter of notification) 50,000 shares of

common

(par 10 cents). Price—At market (about 20c—25c
per share).
Proceeds—To selling stockholder. Under¬
writer—Greenfield & Co., Inc., New York.

Continued

Debentures

on

page

noon

1952

be

Bonds

EST)

Bonds

invited)

your

nearest

fill If1 A PA TDVDTTIII1

vlHVrtOU

litllSUllCi

The Tribune gives to each
day's market tables and reports
the largest circulation
given them in America < •; <.,y




(Bids

Underwriter—Swift;,

EST)

December 15, 1952
New Orleans Public Service Inc

public. Get the full story from

common

Bonds

noon

October 20,
Power & Light Co
(Bids

of

Proceeds—To Marie*

PST)

Utah Power & Light Co

WHETHER you are

Paper Co., Muskegon, Mich.
of notification) 300 shares

(letter

15, 1952

8:30

(Bids

6

stock

named)

Pacific Telephone & Telegraph Co
(Bids

Aug.

stock (par $1). Price—$9 per share.
E. Fuget, the selling stockholder.
Henke Co., Chicago, 111.
■

stock at

Bonds

invited)

7,

Corp.__
(Bids

Oil, Ltd., Calgary, Alberta, Canada (9/4)
Aug. 8 filed 1,000,000 shares of common stock
(par 50
cents—Canadian). Price — To be supplied by amend¬

Bonds & Pfd.

CST)

a.m.

determined

Halsey,

Sept. 23.

First

Co.)

be

bidders:

&

Central

Preferred

&

September 30, 1952
Washington Water Power Co

common

& Notes

EDT)

Central Illinois Public Service Co

Banff

new

Bonds

invited)

a.m.

Service
(Dean

For assessment of
mining claims and commencement of
dredging of gold, monazite and zircon sands. Office—

2307 Jefferson

invited)

be

(Bids 11:30

of

Co.)

Preferred

to

Bros.

on

Common

September 23, 1952
Appalachian Electric Power Co
Bonds

common

stock

(10 cents

&

be

to

(Bids

Price—At par

Corp.)

September 22, 1952
Duquesne Light Co

ment withdrawn.

stock.

Boston

Co
(Bids

Underwriter—Smith, Barney &
Offering—Postponed indefinitely; state¬

it Atomic Minerals, Inc., Boise, Ida.
Aug. 11 (letter of notification) 600,000 shares

invited)

September 15, 1952
Uranium, Ltd

expenditures.

of

be

(Gardner

Proceeds—For

it Atlas Powder Co., Wilmington, Del.
Aug. 8 (letter of notification) 8,500 shares

Equip. Trust Ctfs.

to

derwriter—To

Probable

Preferred

Devil Peak

June 25 filed 1,000,000 shares of
common stock (par $10).
Price—To be supplied

Co., New York.

invited)

Co.
(The

Refining Co.
by amendment.

be

September 11, 1952

Sept. 9.

Atlantic

to

Gulf, Mobile & Ohio RR

Haloid

Boston

Equip. Trust Ctfs.

(Bids

Merrill Lynch, Pierce, Fenner & Beane.
Tentatively scheduled to be received at noon

First

Bonds

September 10, 1952

Corp.; Blyth

Inc.;

—

bidding. Prob¬

The

(jointly); Kidder, Peabody & Co. and Union Se¬
curities
Corp. (jointly); Lehman Brothers and Bear.,
Stearns & Co. (jointly); Merrill
Lynch, Pierce, Fenner &:
Beane. Bids—May be received
up to 11:30 a.m. (CST) ©m

Sept. 23.

1952

Arkansas Power & Light Co

—

&

and

Corp.

Smith, Barney & Co.; Merrill Lynch, Pierce,

(Bids

Co., Inc., Rochester, N. Y.

Webster

&

Mitchum, Tully & Co.)

Tennessee Gas Transmission Co

Arkansas Power &
Light Co. (9/9)
Aug. 5 filed $15,000,000 first mortgage bonds due 1982.
Proceeds
For new construction and other
corporate
purposes. Underwriters—To be determined
by competi¬
tive bidding. Probable bidders:
Halsey, Suart & Co. Inc.;
Equitable Securities Corp. and Central
Republic Co.
(Inc.) (jointly); Lehman Brothers and Stone & Webster
Securities Corp. (jointly); Union Securities

Service Co. (9/23)
Aug. 18 filed 50,000 shares of cumulative preferred stock:
(par $100). Proceeds—For construction program. Under¬

Co., Inc.)

Common

&

and

Scott Paper Co
(Drexel

&

Co., both of New York.

it Central Illinois Public

Common

&

Telephone Corp

(Paine,

Andowan Mines, Ltd., Port
Arthur, Ont., Canada
May 8 filed 500,000 shares of common stock
(par $1).
price—38 cents per share.
Proceeds—For
exploratory
drilling and improvement on present
holdings. Under*
writer—Frank P. Hunt &

Pfd.

W. Brooks

&

sons

September 8, 1952

common

($1 per share). Proceeds
For
equipment and working capital to
produce motion pic¬
tures for television.
Office—721 S. 6th
St., Las Vegas,
Nev. Underwriter—None.
—

term

Debentures & Com.

(Barrett Herrick

Utah Power &

Underwrite]*—

Cardiff Fluorite Mines, Ltd.,
Toronto, Canadct
May 22 filed (amendment) 300,000 shares of commfif%
stock (par $1). Price—$1.25
per share.
Proceed!—Ftw
development expenses and general corporate purpose*:.

Co.)

September 3, 1952

entitled

Under¬

Canoga Oil Co., Carson City, Nev.
July 18 (letter of notification) 60,000 shares of capital!
stock to be offered by
Crystal Oil Co.
Price—At par
($1 per share).
Proceeds—To develop oil properties:

Preferred
Coggeshall & Hicks)

September 2, 1952

per

Underwriter—West

Price—At

general funds.

writer—Burnham & Co., New York."

Debs. & Com.

Peninsular Telephone Co
and

Proceeds—To be added to

par.

(Trinity Securities Corp.)

(Morgan Stanley & Co.

Underwriter—Walston, Hoffman & Goodwin,

Francisco, Calif.

Canadian Palmer Stendel Oil
Corp. (9/2)
July 31 filed 3,410,000 shares of common stock (par
cents) of which 2,000,000 shares are to be offered for
subscription by stockholders of Palmer Stendel OH
Corp.; 400,000 shares to be sold to latter named com¬
pany; 400,000 shares to New Superior Oils of Canada,,
Ltd.; 370,000 shares to officers and employees; and 24©,~

Debentures

Peabody

1952

Forgan

ISSUE.

•

RR

(Burnham

New York Stock

E.

Parsonnet TV-Film Studios, Inc

June
—

and

(Glore,

Illinois

★ American Machine &
Foundry Co.
Aug. 13 (letter of notification)
4,254 shares of common
(no par). Price—At market
(approximately $21.50
per share). Proceeds—To common
stockholders

Underwriter

Oscar

August 27,

stock

on

&

Common

and

Co.

Co., Jersey City, N. J.

receive fractional shares in

Fadyen

Glenmore Distilleries Co

Price—70

cents

&

(Royal Securities

it American General Oil & Gas Co.
Aug. 14 (letter of notification) 800,000 shares of
common
stock (par one
cent), pursuant to option to purchase
issued

Frame,

REVISED

stock (par $1). Price—At market (estimated at
$13 pershare). Proceeds—To Henry C. Maginn, Executive Vice-

Debentures

and

Electro-Components Corp. of America

Proceeds—For prospecting,
drilling ex¬
penses, etc.
Underwriter—I. Nelson Dennis &
Co., To¬
ronto, Canada.

share.

Ltd
Co.

August 26, 1952
Beaunit Mills, Inc

Ameranium Mines, Ltd.,
Toronto, Canada
May 28 filed 2,079,871 shares of
capital stock (par $1),
of which
908,845 shares are to be offered to
public by
company,
108,847 shares by underwriter and
666,171

6hares to be reoffered under
rescission offer.

&

Broadcasting Co
(Reynolds

—

cents per share.

Reuss

ITEMS

it Calaveras Cement Co., San Francisco, Calif.
Aug. 15 (letter of notification) 4,100 shares of common

:—Preferred

Petroleums,

(McLaughlin,

—

tribution

Common

Peabody & Co.)

(George R. Cooley & Co.)

—

to

1952

Sons

Huyck (F. C.) & Sons

★ Altuda Mines, Inc., Gila Bend, Ariz.
Aug. 13 (letter of notification)
25,282 shares of common
stock.
Price
At par ($1 per
share). Proceeds
For
mining development. Address
P. O. 365, Gila
Bend,
Ariz. Underwriter—None.

&

&

(Kidder,

PREVIOUS

it Burke-Martin Mines, Inc., Dillon, Colo.
Aug. 15 (letter of notification) 200,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
mine equipment and related purposes.
Office—Monte¬
zuma Road, Dillon, Colo.
Underwriter—None.

NEW ISSUE CALENDAR

on

ADDITIONS

SINCE
•

Lehman Bros., New York, N. Y.; in Canada—W. C. Pitfield & Co., Ltd., Montreal, Quebec.
•

Beaunit Mills, Inc., New York (8/26)
Aug. 1 filed $6,000,000 of 5% convertible subordinate de¬
bentures, due 1972. Price—To be sppplied by amendment.

Proceeds—For capital expenditures and other corporate

Underwriters—White, Weld & Co., and Kid¬
der, Peabody & Co., both of New York.
purposes.

25

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Private IVires

to

all

offices

Chicago

Cleveland

26

Chronicle

The Commercial and Financial

26

Continued

from

if Chaney Manufacturing Co., Inc.,

Springfield, Ohio

15,000 shares of common
Price —$10 per share. Proceeds —To
acquire all the outstanding stock of predecessor com¬

stock

(par $1).

pany.
pany,

Underwriter—For 5,000 shares: The
Cleveland, Ohio.

writer—Pulis, Dowling & Co., New

Ohio Com¬

"Helioplane"

of aircraft.
Office—Boston Metro¬
Norwood, Mass. Underwriters—-Chace,

type

politan ^Airport,

York, N. Y.

Whiteside, West & Winslow, and H. C. Wainwright &
Co., b?dth of Boston, Mass.
if Hexene-OI Laboratories, Inc., Cleveland, Ohio
Aug. Hr (letter of notification) $60,000 of 5% convertible
coupon debentures to be offered first to class A stock¬

Business—Manufacturers of glass light¬
ing fixtures. Office—Winsor and New Bridge Roads,
Bergenfield, N. J. Underwriter—Moran & Co., Newark,
working capital.

(letter ot

holders; then to class B stockholders; and unsubscribed
portion to public. Price—At par and accrued interest.

New Jersey.

Proceeds—For

if Electro-Components Corp. of America (8/26)
Aug. 19 (letter of notification) 2,000,000 shares of com¬
mon
stock (par one cent). Price—12 cents per share.
Proceeds—To repay loan from Electronic Devices, Inc.,

working capital. Under¬
writer—Royal Securities Corp., New York.

cents).

New York. Offering—May

Brooklyn, N. Y.
July 25 (letter of notification) 52,500 shares of class B
common stock
(par $1) of which 15,000 shares are to be
offered first to persons who sought to purchase stock
under the offering which commenced in February, 1951,

who will receive

Stuart & Co. Inc., Chicago &

and

temporarily postponed.

Enquirer, Inc., Cincinnati, Ohio
July 25 filed 400,000 shares of common stock to be of¬
to employees and others.
Price—At par ($10 per
share). Proceeds—For working capital. Underwriter—
fered

purchase 3,750 shares of class A common stock at $15
per share and 750 shares of class B common at 25 cents

Pro¬
Office
Avenue, Washington 6, D. C. Under¬
writer—Emory S. Warren & Co., Washington. D C
ceeds—To acquire

loan offices and subsidiaries.

—1028 Connecticut

ic Consolidated Drug Co., Inc., Washington, D. C.
Aug. 6 (letter of notification) 2,000 shares of capital
stock. Price
At par ($10 per share). Proceeds — For
manufacturing equipment. Office—3264 M Street, N. W.,
Washington 7, D. C. Underwriter—None.
—

★ Cornucopia Gold Mines
Aug. 11 (letter of notification) 8,000 shares of common
stock (par five cents). Price—At market (approximate¬
ly $1 per share). Proceeds—To Carl M. Stolle, President.
Underwriter—None.
Sale will be made through brokers

Electronic

,

Office—640 E. 22nd St., Los

Underwriter—None.

if Curtice Appliance Co., Inc., Denver, Colo. '
Aug. 13 (letter of notification) 50,000 shares of common

shares),

(20,000

and

if Houston Natural Gas Corp. (9/4)
Aug. 15 filed 120,000 shares of 5% cumulative preferred
stock (par $25), with common stock purchase warrants
attached to purchase one share of common stock at

share for each share of preferred stock, to be
by common stockholders at the
share of preferred for each 3.95 shares of
stock held as of Sept. 4, with rights to expire on

$22.50

one

amendment

Aug. 5 (letter of notification) 240,000 shares of preferred
common
stock (par $1).
Price—$1.25 per share.
Pro¬

capital and a new refining unit.
Office—3975 East 58th Ave., Denver, Colo.
Underwriter
ceeds—For

common

Sept. 15. Unsubscribed portion to be offered to holders
of

working

$25

tors of the two

Price

companies.»

^ Farmers Bros. Co., Los Angeles, Calif. (9/8)
Aug. 18 filed 100,000 shares of 6% cumulative convert¬
ible first preferred stock (par $10) and 50,000 shares of
common
stock
(par $1).
Price — To be supplied bv
amendment.
Proceeds—To purchase from certain prin¬
stockholders 98,625 shares of outstanding second
stock at $1 per share and 164,654 shares of
stock at a price to be supplied by amendment.

stock (no par) to be offered first to present stockholders.

preferred

Price—$1 per share. Proceeds—To finance inventories
of control valves for garden hoses and
sprinklers. Office

The

purposes.

stock

the basis of

on

be

Underwriters—Robert Garrett & Sons, Balti¬
Md.; Moroney, Beissner & Co., Houston, Tex.; and
Kidder, Peabody & Co.. New York.

more,

Brothers

Co.,

Baltimore, Md.

(letter of notification)

notes dated Aug.

$300,000 of 5% 25-year

1, 1952, to be offered for subscription

stockholders. Price—At par (in various units
directors). Proceeds—For additional
working capital. Office—212 N. Howard St., Baltimore^,
by
as

common

determined by the)

Underwriter—None.

Md.

(F. C.)

Huyck

& Sons

(8/25-29)

July 25 (by amendment) filed 750 shares of $2.75 divi¬
dend class A preferred stock (par $50) and 20,000 shares
of common stock (par $5). Price — To be supplied by
amendment.
Proceeds — To two selling stockholders.
Business—Mechanical

fabrics for industry and

blankets

Underwriter—Kidder, Peabody & Co.,
New York, for common (expected at $16.50 per share),
and George R. Cooley & Co., Albany, N. Y., for preferred.
Offering—Tentatively expected next week.
and apparel cloth.

common

—357 Santa Fe

preferred

purposes.

July 3

(par 35 cents), the class A stock to be sold only to

par

shares for each $50 par share owned.
supplied by amendment.
Proceeds—For

par

Hutzler

Discount Co.,

& Home Loan &

policyholders of The Farm & Home Insurance Co.

cipal

outstanding $50

expansion, reduction of bank loans and other corporate

—None.

stock

one

Price—To

Denver, Colo.

Empire Petroleum Co.,

per

of

rate

two

& Co., New York).

(may be Tellier

—At par. Proceeds—To increase capital. Underwriters—«
John J. Rhodes and James E. McNelis, officers and direc¬

Calif.

Treasurer

Wray,

offered for subscription

shares of common
cent) being offered first to stockholders
of record Aug. 8; rights to expire on Aug. 30.
Price—
5 cents per share. Proceeds—For working capital. Office
—429 12th St., Brooklyn, N. Y. Underwriter—None.
If
an underwriter is used, the
name will be furnished by
(par

if Crosson Radio Music Co., Inc., Los Angeles, Cal.
Aug. 6 (letter of notification) 90,000 shares of class A
common stock, of which
8,000 shares will be offered to

Angeles,

G.

Kleiman, President (23,000 shares). Office—15
Park St., Springfield, Mass.
Underwriter—E. L. Aaron
& Co., New York, N. Y.

Phoenix, Ariz.
July 7 filed 1,613,168 shares of class A common stock
(par 25 cents) and 2,744,034 shares of class B common

employees. Price—At par ($3 per share). Proceeds—To
additional stores and for reserve for financing of

Price—44 cents per share. Proceeds

cents).

George

Co., Houston, Tex.
May 14 filed $26,000,000 of interests in The Thrift Plan
for employees of this company, together with 400.000
shares of capital stock (par $5) purchasable under termi
of the plan. Underwriter—None

conditional sales contracts.

Underwriter—None, sales to be
including officers and directors,

stock

Farm

open

Proceeds—For min¬

commission of 10 cents per share sold.

a

Aug. 1 (letter of notification) 2,000,000

the New York Curb Exchange.

Continental Oil

10

(par

stock

common

(letter of notification) 43,000 shares of common

Charles

—To

of

(formerly General Appliance Corp.)

Holly Corp.
stock (par 10

Inc., Brooklyn, N. Y.

Devices,

shares

787,736

Price—50 cents per share.

Aug. 6

Aug. 10 at rate of one new share for each four shares of
class A and/or class B stock held; rights to expire on

Price—At 99% and accrued interest.

share).

per

Inc., Seattle, Wash.

Placers,

filed

9

ing development, etc.
through agents,

purchases could not be consummated. The
other 37,500 shares to be offered to stockholders of record

Sept. 10. Price—$3 per share. Proceeds—For working
capital. Office—265 Butler Street, Brooklyn, N. Y. Un¬
derwriter—Pioneer Enterprises, Inc., Bluefield, W. Va.

Cleveland, Ohio.

made

Computer Corp.,

whose

but

None.

Citizens Credit Corp., Washington, D. C.
April 10 (letter of notification) $125,000 of 6% subordl-1
debentures due 1969 (with warrants attached to

Hixon
June

equipment and

new

Electronic

Cincinnati

nated

for

Center St.,

purposes.
Office—2000
Underwriter—None.

general corporate

Enquirer, Inc., Cincinnati, Ohio
July 25 filed $3,500,000 of 15-year sinking fund deben¬
tures due Aug. 1, 1967 and $2,500,000 of 10-year convert¬
ible junior debentures due Aug. 1, 1962. Price—To be
supplied by amendment. Proceeds—To pay notes issued
to the Portsmouth Steel Corp.
Underwriter — Halsey,
Cincinnati

stock. Price

per

unit to

if Electriglas Corp., Bergenfield, N. J.
Aug. 14 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For

notification) 291,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital.
Office—Newark, N. J. Under¬
writers—Aigeltinger & Co. and Vickers Brothers, both

on

Thursday, August 21, 1952

.

unit to subscribing stockholders and $27.50 per
public. Proceeds — To continue development of
"Courier"
model aircraft and to design and develop

—$25

July 29 (letter of notification) 1,988 shares of common
stock (par 50 cents). Price -r- At the market (approxi¬
mately $7 per share). Proceeds—To Charles D. Pulis, a
director. Office—296 Elm St.| New Haven, Conn. Under¬

Chemical Co.

Chase
June 23

be

.

preferred and one share of common

share of

Inc., New Haven, Conn.

Eastern Industries,

25

page

Aug. 13 (letter of notification)

•

.

(674)

Deerpark Packing Co., Port Jorvis, N. Y.
(letter of notification) 235,000 shares of

March 21
mon

stock

(par 10 cents).

Price—$1.25

stock

(par

one

ceeds— For

cent).

March

development

Pro¬

program.

Office
Suite 839, 60 East 42nd St.. New York 17, N. Y.
Underwriter—Gardner & Co., New York.
—

7

(letter "bf

notification)

not

exceeding

general

corporate

Un¬

21

shares

600,000

$100,000

market value of class B

stocks of subsidiaries. Underwriters

common stock (par
$5). Price—
At market (bid $19—ask $19.87% per
share). Proceeds—
To Estate of Joseph Di Giorgio.

vestment in

Holt &

Tully & Co., San Francisco, Calif.

—Paine, Webber, Jackson & Curtis and Stone & Web¬
ster Securities Corp., both of New York; and Mitchum,

Underwriter—None, but
Collins, San Francisco, Calif., will act as broker.

* Duquesne Light Co., Pittsburgh, Pa. (9/15)
Aug. 19 filed 140,000 shares of preferred stock (par
$50).
Proceeds—To repay bank loans and for con¬

Duquesne Natural Gas Co.

May 28 (letter of notification) 92,783 shares of common
(par one cent) being offered for subscription
by
stockholders of record Aug. 1 at rate of one new com¬
share for each five

common
new

shares for

shares

each

of common

ence stock held

shares held, two new
preferred share held and six

common

stock

for each

share of

(with

prefer¬

an oversubscription privilege).
Sept. 15. Price
$1 per share.
Proceeds—For working capital.
Underwriters—None.

Rights will expire

on




shares

will

company

be

—

used

to

pay

certain

class A

employees

of

the

for services rendered. Underwriter—Jackson &

1

(par

$50),

to

be

Maryland Mines Corp.
200,000 shares of common stock (par $1).
market
(on. the San Francisco Stock Ex¬
Proceeds—To selling stockholder (Gwendolyn
Betchtold,

MacBoyle

of

Francisco.

Calif.

executrix of the last will and
deceased).
Office—San

as

Bechtold,

Errol

testament

Underwriter—None.

Inland Oil Co.

(Nev.), Newark, N. J.

Febfi 26 (letter of notification) 599,700 shares of class A
stock (par 25 cents).

common

Proceeds—For

Commerce

Office—11

capital.

ing

Price—50 cents per share.

drilling and equipping well and for work¬

St.,

N. J.

Newark,

Underwriter—Weber-Millican Co., New York.
Petroleum

July"il7

(letter

of

Corp., Miami, Fla.
notification) 27,500 shares

of

6%

noil-cumulative convertible preferred stock, and 275,000

shares of
for

common

stock.

Price—At

par

($10

share

per

the preferred

—612

stock and one cent per share for the
Proceeds—To
purchase oil leases.
Office

Congress Bldg., Miami, Fla.

Underwriter—None.

if International Investment Corp., Denver, Colo, r»
Aug. 15 (letter of notification) 250,000 shares of class A
common
stock (par $1) and 250,000 shares of common
stock (no par). Price—Of class A, $1 per share, and of
common stock, one cent per share.
Proceeds—To accu¬
mulate funds to qualify new insurance company or. to
purchase existing company. Office—209 Ernest & Cram¬
er

Bldg., Denver, Colo.

■

Underwriter—None.
;■*

■

■'

■

Products Corp.
Aug. 19 (letter of notification) 8,000 shares of

^ International
stock

*

i
;

common

(par $5). Price—At market (estimated at $11 per

share). Proceeds—To the Ecuadorian Corp., Ltd. Under¬
writer—None, but Hornblower & Weeks, New York, will

Co., Boston, Mass.

act

* Haloid Co., Richester, N. Y. (9/11)
Aug. 14 filed 47,183 shares of convertible preferred stock
offered

stockholders at the rate of
four shares of

stock

mon

filed

share. Proceeds—For working capital. The

per

Halsey,

Stuart
& Co. Inc.; White, Weld & Co.; Drexel & Co. and
Equit¬
able Securities Corp. (jointly);
Kuhn, Loeb & Co., Union
Securities Corp. and A. C. Allyn &
Co., Inc. (jointly):
Glore, Forgan & Co.; Harriman Ripley & Co. Inc. BidsExpected about Sept. 22.

(8/27)

Gyrodyne Co. of America, Inc. (N. Y.)
July 31 (letter of notification) 34,300 shares of 6%
cumulative convertible preferred stock
(par $5) and
892 shares of class A common stock (par $1). Price—$5

★ Duquesne Light Co., Pittsburgh, Pa. (9/22)
Aug. 19 filed $14,000,000 of first mortgage bonds due
Sept. 1, 1982. Proceeds—To reduce bank loans (aggre¬
gating $15,810,000). Underwriters—To be determined by
bidders:

7

Price—At

common.

Louisville, Ky.

$12,000,000 sinking fund debentures due
1, 1972.
Price — To be supplied by amendment.
Proceeds—To retire long-term debt, to redeem outstand¬
ing 6% cumulative preferred stock (par $50), and for
additional working capital. Underwriter—Glore, Forgan
& Co., New York.
Aug.
Aug.

Underwriters—To be determined by
competitive bidding. Probable bidders: The First Boston
Corp.; Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Lehman Brothers; Kidder, Peabody & Co.,
Merrill Lynch, Pierce Fenner & Beane and
White, Weld
& Co. (jointly). Bids -Expected about
Sept. 15.

Probable

Distilleries Co.,

Glenmore

struction program.

competitive bidding.

common

Idaho

June* 6 filed

change).

Petroleum

filed

if General Telephone Corp. (9/8)
Aug. 19 filed 350,000 shares of common stock (par $20).
Price—To be supplied by amendment. Proceeds—For in¬

★ Di Giorgio Fruit Corp., San Francisco, Calif.
Aug.

for

if Gas & Oil Development Co., Aberdeen, Wash. ;
Aug. 11 (letter of notification) 30,000 shares of common
stock. Price—$10 per share.
Proceeds—For oil and gas
lease acquisitions and share of drilling expenses. Office
—101 Finch Bldg., Aberdeen, Wash. Underwriter—None.

common

Price—50 cents per share.

rehabilitation' and

available

be

Co., Monroe, Wash.
of common stock (par
10 cents). Price — 50 cents per share. Proceeds — For
equipment and drilling purposes. Underwriter—None.
Flathead

com¬

share. Pro¬
ceeds—To repay RFC loan of $41,050 and for
working
capital.
per

Devil Peak Uranium, Ltd. (Nev.)
(9/15)
April 7 (letter of notification) 600,000 shares of

will

remainder

Business—Coffee processing and selling.
derwriter—P. W. Brooks & Co., Inc., New York.

Drive, Denver, Colo. Underwriter—None.

common

for

subscription

one

by

common

preferred share for each

stock held.

Price—To be supplied

as

broker.

International Technical Aero Services,
Feb. 15

stock

Inc.

(letter of notification) 300,000 shares of

J

common

(par 10 cents). Price—$1 per share. Proceeds—For

working capital. Office—International Terminal, Wash¬

ington National Airport, Washington, D. C. Underwriter
C

by amendment. Proceeds—To redeem outstanding 8,500
shares of 4% cumulative preferred stock (par $100) and

—.Tames T. DeWitt & Co., Washington. D

for general corporate purposes.

if Intex Oil Co.

Boston
•

Helio Aircraft

July

21

Corp., Norwood, Mass.

of notification) 3,000 shares of nonpreferred stock (par $1) and 3,000 shares
stock

being offered initially to
stockholders of record July 25 in units consisting of one
common

(par

(formerly Independent Exploration

Co.)

(letter

cumulative
of

Underwriter—The First

Corp., New York.

$1)

Aug. 13 (letter of notification) not more than $20,000 ag¬
gregate amount of common stock (par 33V3 cents).
the market.
Proceeds—To three officers of

Price

^Qffice—531 California Avenue, Bakersfield,

Calif.

—At

pany.

Underwriter—None.

com¬

Volume 176

Number 5144

.

.

The Commercial and Financial Chronicle

.

of

Price—$31.50
Underwriter
—Hickey & Co., Chicago, 111. Statement effective Aug. 8.

^ Iris Oil Co., Denver, Colo.
13 (letter of notification)

Aug.

stock. Price—At par

($1

per

58,000 shares of capital
share). Proceeds—For drill¬

ing expenses and acquisition of leases.
Bank

National

Office—412 First

Building, Denver, Colo.

machinery and operating

share

held, and 40,000 shares

expenses

Price—At par.

July 3 (letter of notification) 92,194 shares of common
stock (par $1). Price—$2.75 per share. Proceeds—To re¬
duce accounts payable and for working capital.
Office
—155 W. Main St., Rockville, Conn. Underwriter—None.

100,000 shares of common

share).

per

Proceeds—To

Harry

common

stockholders. Underwriter—Arthur I.

Korn

$2.121/2
selling
Co., New

the

Fromkes,

&

York.

Aug.

13

(letter of

notification)

5,000

shares

of

capital

(par $1) and $100,000 of 15-year 6% debentures
Sept. 1, 1967. Price—Of stock, $24.75 per share and

of

debentures, at par in units of $100 each. Proceeds—
To acquire outstanding stock, of Lewis Jones, Inc. Busi¬
ness—Manufactures and sells steam heat and steam for

heating. Office—64th St. and Lebanon Ave., Philadelphia
31, Pa. Underwriter—None.
'*

Louisiana

Supply Co., Lake Charles^ La*
notification) 10,000 shares of capital
stock (par $1) to be offered for subscription by present
July 24

(letter of

stockholders at rate of
held.

Price—$12.50

Lake

Charles, La.

•

one new

share for each five shares

Office—306 Pioneer Bldg./
Underwriter—None.
per

share.

Lunn

Laminates, Inc., Huntington, N. Y.
July 17 (letter of notification> 149,500 shares of common
stock (par 25 cents).
Price—$2 per share. Proceeds—
For working capital. Underwriters—S. D. Fuller & Co.
and Vermilyea Brothers, both of New York. Offering:
Expected today.
.

,

Price—One

Maxwell,
"treasurer.

cent

Proceeds—To F. L.
President; and Fern D. Maxwell, Secretary-per

share.

ferred

stock, 5% series. Price—At par ($100 per share).
Proceeds—For working capital.
Underwriter—Roy E.

Co., Athens, O.

(Glenn), Inc.
June 12 filed 10.000,000 shares of

common

stock (par 25

per

WHitehall 3-2181.

Offering—Date indefinite.

McKales Corp., Seattle, Wash.
July 31 (letter of notification) 30,000 shares of class A
stock (par $3).
Price — $10 per share. Proceeds — For
•

station

sites

and

Ave., Seattle 1, Wash.

stations.

Office—21241/2

Third

Underwriter—None.

Metals & Chemicals

Corp.* Dallas, Tex.
(letter of notification) 22,000 shares of common
stock (par 10 cents).
Price—$3 per share.
Proceeds—
To Horatio R.
Aldredge, Jr., the selling stockholder.
Underwriter—Shearson, Hammill & Co., Dallas, Tex.
Exploration Corp., Ltd., Toronto Canada
July 29 filed 2,000,000 shares of common stock, each
share to have attached an "A," "B" and "C" warrant,
each giving the holder the right to buy one additional
each

shares

two

purchased

in two, three,

or

five years, at $1,

$2 and $3 per share, respectively. Price
shares, $1 per share—Canadian.
Pro¬
ceeds—For exploration, development and acquisition of
properties. Underwriter—Brewis & White, Ltd., Toronto,
—For

2,000,000

Canada.

Names of United States underwriters to be sup¬

plied by amendment.
•

Monty's Stores, Inc., Seattle, Wash.
(letter of-notification) $100,000 of 7%

May 16

convertible bonds

10-year

(in denominations of $500 and $1,000

and

10,000 shares of common stock (par $10).
Price—At par.
Proceeds—For working capital and ex¬

Office—208 Third Ave., South, Seattle. Wash.
Underwriter—National Securities Corp., Seattle, Wash.
pansion.

Motorola, Inc., Chicago, III.
July 17 filed 175,921 shares of common stock
being offered for subscription by
on

handled

by

the basis of one

new

common

i
(par $3)

stockholders

share for each 10 shares held




as

Underwriter—None, but shares will

by company on New York

Curb Exchange.

filed about Sept. 1.

it Scott Paper Co. (9/8)
15 filed $2,4,952,800 of convertible debentures due
Sept. 1, 1977, to be offered for subscription by common
stockholders of record about Sept. 8 for a 15-day stand¬

Aug.

basis of $100 of debentures for each 12 shares of
stock held. Price—To be supplied by amend¬
Proceeds—For construction of paper mill at Ever¬

on

ment.

ett, Wash., and other construction, and for working capi¬
Underwriters—Drexel & Co., Philadelphia, Pa.; and

tal.

Smith, Barney & Co. and Merrill Lynch, Pierce, Fenner
& Beane,

both of New York.

it Sherman Electric Co., Inc., Warren, Ohio
Aug. 8 (letter of notification) 20,000 shares of common
stock (no par).
Price—$10 per share. Proceeds — For
working capital to produce and sell electrical equipment.
Office—1807-1809 Elm Road, N. W., Warren, O. Under¬
writer—None.

Signal Mines, Ltd., Toronto, Canada
July 14 filed 300,000 shares of common stock. Price—
At par ($1 per share). Proceeds—For exploration, devel¬
opment, and mining expenses, and to reimburse Maurice
Schack, Secretary-Treasurer. Business—Quartzite min-r^
ing. Underwriter — Northeastern Securities Co., New
York.

it South Central Fire & Casualty Insurance Co.
Aug. 12 (letter of notification) 2,500 shares of common
stock.
Price—$100 per share.
Proceeds—For working

capital, etc.

Office

Underwriter—

Starkville, Miss.

—

None.

^Southeastern Fund, Columbians. C. *(9/5)

6% subordinated sink¬

Aug. 14 filed $500,000 of 10-year

ing fund debentures (with common stock purchase war¬
rants attached) and 100,000 shares of common stock (par

$1) to be offered in units of a $100 debenture and 20
shares of stock.
Price—To be supplied by amendment.
Proceeds
To redeem $53,500 outstanding: 5\Va% sub¬
ordinated convertible debentures and 10,000^shares of
—

None.

6V2V0 cumulative preferred stock (at $11 per
accrued

it Parsonnet TV-Film Studios, Inc. (8/27)
Aug. 20 (letter of notification) $300,000 of 6% debentures
due

1962

and

120,000 shares of common stock (no par)
to be offered in units of $100 of debentures and 40 shares
of stock.

Price—$100

per

unt.

— For working
Securities Corp., New

Proceeds

capital.: Underwriters Trinity
York.
Peninsular

Telephone Co.

ditional

Price—To be supplied by amendment. Pro¬
bank loans and for new construction.
'Underwriters—Morgan Stanley & Co. and Coggeshall &
(par $25).

ceeds—To

repay

Petroleum

Finance Corp.
(letter of notification) 60,000 shares of common
stock (par $1) and 30,000 warrants to purchase 30,000
shares of common stock (warrants exercisable at $7.50

Feb.

it Southwestern Investment Co., Amarillo, Tex.
Aug. 12 (letter of notification) $300,000 of 5% junior
subordinated debentures due Aug. 1, 1962. Price—At par
(in units of $1,000 each). Proceeds—For
for instalment sales financing and

on

or

common

$5 per share.
Oklahoma

prior to April 1, 1954).
shares will receive

one

Each purchaser

warrant.

Proceeds—For working capital.

City, Okla.

Price—

Office-

Underwriter—George F. Breen,

New York.

Phillips Packing Co., Inc., Cambridge, Md.
July 7 (letter of notification) 3,000 shares of common
stock (no par). Price—At the market (estimated a $7 per
share). Proceeds—To Levi B. Phillips, Jr., Vice-Presi¬
dent, the selling stockholder.
& Sons, Baltimore, Md.

Underwriter—Alex. Brown

it Preferred Underwriters, Inc., Seattle, Wash.
Aug. 13 (letter of notification) $290,000 of 6% sinking
7,500 shares of common stock
(par $1). Price—At par. Proceeds—For working capital
and to increase statutory reserves of the Preferred In¬
surance
Exchange for which the issuer is attorney-infact. Office—1020 Virginia St., Seattle 1, Wash. Under¬

writer—None.

it Reserve Supply Co., St. Paul, Minn.
Aug. 11 (letter of notification) $100,000 of 4% 10-year
debentures and 100 shares of capital stock.
Price—The
debentures at par (in denominations of $100 and multiples
thereof) and the stock at $100 per share. Proceeds—To
establish a warehouse branch at Fargo, N. Dak.
Office
—2570 Ellis Avenue, St. Paul 3, Minn.
Underwriter—
None.
•

Sapphire Petroleums, Ltd. (Canada)
(8/25-29)
July 3 filed $2,000,000 of 10-year 5% convertible sinking
fund debentures due July 1, 1962. Price—To be supplied
by amendment. Proceeds—To repay bank loans and for
exploration, acquisition of interests in and development
of prospective and proven oil and gas lands and the
development
of existing
properties.
Underwriters—

Under¬

Exploration Co., Los Angeles,

Calif.

(letter of notification) 43,000 shares of capital
$1) to be offered to stockholders for subscrip¬
tion at rate of one share for each 10 shares held. Price—
Aug. 6

stock (par

$5 per share. Proceeds — For expansion program and
general corporate purposes. Office — 649 S. Olive St.,
Los Angeles, Calif. Underwriter — None; unsubscribed
shares will be sold to a "small group of individuals."
Steak

n

Shake of Illinois,

Inc.

July 11 (letter of notification) 22,000 shares of common
stock (par 50 cents) being offered to stockholders of
record July 1 (excepting members of the Belt family,
who own about 60% of the common stock) at rate of
share

one

for

every

20 shares held, with an

oversub¬

scription privilege; rights to expire on Sept. 15. Price—
$3.30 per share. Proceeds—For expansion. Office—1700
W. Washington St., Bloomington, 111. Underwriter—None.
•

Storer

Broadcasting Co.

(8/25-29)

May 19 filed 215,000 shares of common stock (par $1),
of which 200,000 shares are being sold by certain selling

be offered publicly and 10,000 to
and 20,000 shares to the underwriters
under option agreement) and the remaining 15,000 shares
being reserved for sale by company to certain employees.
Price—Of first 200,000 shares, to be supplied by amend¬
itockholders (170,000 to

certain employees;

ment; of 15,000 shares by company, $10.62% per share.
Proceeds—For general corporate purposes. Underwrit¬

Oscar E. Dooly &
Offering—Expected week of Aug. 25.

ers—Reynolds & Co., New York, and

Co., Miami, Fla.
Suburban

writer—None.

Co., Chicago, III.
July 17 filed 85,688 shares of common stock (no par) to
be offered in exchange for 471,287 shares of Hickok Oil
Corp., class A common stock (par $1) at rate of one Pure
Oil share for each 5V2 Hickok shares, conditioned upon
approval of merger of Hickok into Pure Oil Products
Co., a wholly-owned subsidiary of Pure Oil Co. Under¬

additional capi¬

loans.
Lincoln (Neb.).

tal

writer—The First Trust Co. of

5

share

Herrick

Underwriter—Barrett

contracts.

sales

Co., Inc., New York.

State

(8/27)

share and
capital.

dividends), and for additional working

Business—Financing retail sales of house trailers on con¬
&

Pure Oil

Mineral

for

be

to

fund debenture bonds and

July 31

share

sales

None,

—

the New York Stock Exchange.

it Paromal Products,, Inc., Lynbrook, N. Y.
Aug. 19 (letter of notification) 500 shares of 6% pre¬
ferred stock, class A.
Price—At par ($100 per share).
Proceeds—Expansion of property and facilities. Office—
124 Atlantic Ave., Lynbrook, L. I., N. Y. Underwriter—

of two

share. Proceeds — For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone
Price—$2

service

on

'..it Pacific Western Stores, Inc., Los Angeles, Calif.
Aug. 8 (letter.of notification) 105,000 shares of common
stock (par flye cents).
Proceeds—To selling stockhold¬
ers.
Underwriters—White & Co., St. Louis, Mo.; Gearhart & Otis, Inc., New York; and Peters, Writer & Christensen, Inc., Denver, Colo.

per

McCarthy

cents).

Underwriter

Hicks, both of New York.

it McBee Co., Athens, Ohio
Aug. 8 (letter of notification) 2,500 shares of first pre¬

Hawk &

Los

Aug. 7 filed 160,000 shares of cumulative preferred stock

Aug. 14 (letter of notification) 3,000,000 shares of capital
stock.

Proceeds—To construct racing plant and
of

Pacific Western Oil Corp.
Aug. 5 filed 100,000 shares of common stock (par $4).
Price—At the market. Proceeds—To J. Paul Getty, Presi¬

,,

it Maxwell-Uintah-Oil, Inc.

each)

•

brokers

stock
due

Miller

offered

common

working capital.

dent,

it Lewis Jones Management Co.

For

by

N. M.

Oil, Inc., Denver, Colo.
July 17 (letter of notification) 1,000,000 shares of com¬
mon
stock (par 10 cents).
Price—20 cents per share.
Proceeds—To carry on oil exploration program.
Office
—504 Mercantile Bldg., Denver, Colo.
Underwriter—
Forbes & Co., Denver, Colo.

(no par). Price—$2.25 per share. Proceeds—For
exploration work. Underwriter—W. R. Stephens Invest¬
ment Co., Inc., Little Rock. Ark.

stock (par 65 cents). Price—At the market (about

Jockey Club, Albuquerque,

Overland

stock

Lawyers Mortgage & Title Co., N. Y.
(letter of notification) 45,000 shares of

Balti¬

it Norris Oil Co., Bakersfield, Calif.
Aug. 14 (letter of notification) 750 shares of capital stock
(par $1). Price—$2.75 per share. Proceeds—To Arthur
W. Scott, Secretary. Underwriter—Walston, Hoffman &
Goodwin, Bakersfield, Calif,

Corp., Magnolia. Ark.

Aug. 1

Inc.,

Underwriter—None, but Dr. Frank
Angeles, Calif., will be "engaged
to sell the securities to the public." Statement effective
April 5 through lapse of time. Amendment necessary.

LaPointe-Plascomold Corp.

Oil

Securities,

March 17 filed 1,255 shares of common stock (par $1,000).

Underwriter—None.

(letter of notification)

Mexico

New

(par 25 cents). Price—$9.50 per share. Proceeds—
general corporate purposes. Office—417 McBirney

stock

An amendment is expected to be

Md.

Porter

Lawton

Copper Corp.

Underwriter—Mitchell

capital.
more,

for

June 9

Mexico

July 21 (letter of notification) 496,000 shares of common
stock (par 25 cents). Price—50 cents per share. Proceeds
—For drilling expenses, new equipment and working

share. Business—Manufacture of televi¬

accessories.

Okla.

Inc., Tulsa,

Oil Co.,

Savoy

be

Price—$2.75
sion

—Expected next week.

Bldg., Tulsa, Okla.

upon exercise of stock options by officers and employees.
per

McLaughlin, Reuss & Co., New York;
Toronto. Offering

July 14 (letter of notification) 27,250 shares of common

New

to be issued

are

States

Brokerage Co., Salt Lake City, Utah.

LaPointe-Plascomold Corp.
May 29 filed 230,485 shares of common stock (par $1), of
which 190.485 shares are to be offered for subscription
by stockholders of record June 18 at rate of one share
each

United

and in Canada: Frame, Fadyen & Co.,

Co., Salt Lake City, Utah

—

Underwriter—None.

for

In

(letter of notification) 600,000 shares of common
stock (par 5 cents). Price—10 cents per share. Proceeds
For expansion of operations.
Underwriter — Cromer

property account and option agree¬

ments, purchase of

Proceeds—For working capital.

June 12

Jersey Yukon Mines Ltd., Toronto, Canada
March 20 filed 200,000 shares of common stock (par $1).
Price—$1 per share (Canadian funds).
Proceeds—For
on

11; rights to expire on Aug. 25.

share.

Nev-Tah Oil & Mining

Underwriter—

None.

capital payments

Aug.

per

27

(675)

Propane

Gas Corp.

July 24 (letter of notification) an unspecified number of
shares of common stock (par $1), sufficient to sell for
share).

$20,675. Price—At market (around $17 per
Proceeds—To SBN Gas Co., the selling stock¬

holder.

Underwriter—None, but Eastman,

a

total

New

act

of

York, and/or Bioren & Co.,

as

Dillon & Co.,
Philadelphia, Pa., will

brokers.

of Pennsylvania (9/2-4)
6% convertible debentures due
1972 (subordinate) and 450,000 shares of common stock
(par 50 cents) of which the debentures and 400,000 shares
of stock are to be offered in units of $50 of debentures
and 20 shares of stock. Price—$100 per unit. Proceeds—
To increase capacity of plant and for working capital.
Underwriter—Weber-Millican Co., New York. Offering
Sunshine Packing Corp.

July 3 filed $1,000,000 of

—Expected early in September.
•

Sweet Grass

Oils, Ltd., Toronto,

Canada

July 29 filed 375,000 shares of common stock (no
Price—To be related to quotation on the Toronto
Exchange at time of

par).Stock

Proceeds—For working
MacDonald & Co., Inc., New

offering.

capital. Underwriter—F. W.
York.

Continued

on

page

28

28

The Commercial and Financial Chronicle

(676)

Continued from page
4-Tappan Stove Co.,

stockholders.

21

ernize plant.

Underwriter—N one.

Mansfield, Ohio

notification) an estimated

Aug. 14 (letter of

$185,000 of

sharing and retirement fund for issue
contributing employees. Trustees of Fund
Citizens

interests in profit
to

National Bank & Trust Co.,

Mansfield, Ohio.

^Television Equipment Corp.
Aug. 19 (letter of notification) 1,225,0Q0 shares of com¬
mon stock
(par 5 cents) to be issued pursuant to exer¬
cise of option warrants. Price—11 cents per share. Pro¬
ceeds—For working capital. Underwriter—Tellier & Co.,
New York.

Gas

6 filed $40,000,000 first mortgage pipeline bonds
Proceeds—To repay short-term notes. Under¬

due 1972.

determined

be

writers—To

competitive

by

bidding.

Halsey, Stuart & Co. Inc.; Stone &
"Webster Securities Corp. and White, Weld & Co. (joint¬

Probable

bidders:

Bids—Tentatively expected to be received on or

ly).

about Sept. 8.
Eastern

Texas

Transmission

Texas General Production Co.

buy property for oil prospecting. Office—Houston
Underwriter—To be named by amendment (prob-

Tex.

fibly Hemphill, Noyes, Graham, Parsons & Co., New York
Texhead

Royalty Co.,

Houston, Texas

$135,000 of 3% income

(letter of notification)

stock
(par 10 cents) to be offered in units consisting of $9
principal amount of notes and two shares of common

notes, due July, 1962, and 30,000 shares of common

two

this

of

shares

of

Royalty

Texhead

Co.

Price—

common

company,

together with one $9 note and
Royalty Co.
Price

shares of the Wilhead

—$20 per unit. Proceeds—For acquisition of oil and gas
royalties in the southwest.
Office — 415 San Jacinto

Bldg., Houston 2, Texas.
Moreland, Houston, Tex.

Bldg., Houston 2, Texas.
Underwriter—Rotan,
Moreland, Houston, Tex.
(See also Texhead
Royalty Co. above.)
&

Willingham Finance Co., Inc., Augusta, Ga.
July 1 (letter of notification) $150,000 of 6Vz% subordi¬
nate debentures due July 1, 1967, and 30,000 shares of
class A common stock to be issued in units of a $1,000

debenture, with

a

detachable warrant to purchase 200

Proceeds—For working

Office—139-8th St., Augusta, Ga. UnderwriterJohnston, Lane, Space & Co., Inc., Savannah, Ga.

★ Williston Pioneer Oil Corp.
Aug. 8 (letter of notification) 299,000 shares of common
stock and 299,000 stock purchase warrants to be offered
units

of

share

one

Underwriter—Rotan, Mosle &
(See also Wilhead Royalty Co.

and

one

warrant.

Price—$1

per

unit (the exercise price of the warrants is $1 per share).
Proceeds—For leases and drilling of well. Office—Room

713, 15 Exchange Place, Jersey City, N. J. Underwriter—
Tellier & Co., New York.

Zeigler Coal A Coke Co., Chicago, III.
19 (letter of notification) 7,000 shares of common
stock (par $10). Price—$13.25 per share. Proceeds—To
R. M. Rogers,
trustee for Nancy Leiter Clagett and
Thomas Leiter. Office—21 East Van Buren St., Chicago,
111. Underwriter—Farwell, Chapman & Co., Chicago, 111.
June

Inc.
Aug. 11 (letter of notification) 28,380 shares of common
stock (par $1).
Price—$10 per share.
Proceeds—For

capital.- Office—120 N.
Buckhout Street, State College, Pa.
Underwriter—Blair
F. Claybaugh & Co., Harrisburg, Pa.
expenses

8.

Airlines, Inc., Ft. Lauderdale, Fla.

100,000 shares each will
and in behalf of J.
A. Wooten, President.
Price—60 cents per share. Pro¬
ceeds—For working capital. Address—P. O. Box 2247,
Ft. Lauderdale, Fla. Underwriter—None.
(par 5 cents)

of which

be offered in behalf of the company

U.

S.

Airlines, Inc., Fort Lauderdale, Fla.

Aug. 4 (letter of notification) $210,000 of 7% convert¬
ible equipment trust certificates, series A, due Aug. 15,
1954.

Price—At par

(in units of $100 and $1,000 each).
Proceeds—For purchase of two aircraft. Underwriters—
John R. Kaufmann Co., Scherck, Richter Co. and Semple,
Jacobs & Co., Inc., all of St. Louis, Mo.; and Gearhart
&

Otis, Inc., New York.

* Utah Power & Light Co. (9/5)
Aug. 14 filed 167,500 shares of common stock

(no par),
subscription by stockholders of record
Sept. 5 on a one-for-10 basis (with an oversubscription
privilege); rights to expire about Sept. 25. Price—To be
supplied by amendment. Proceeds—For new construc¬

to be offered for

tion.

Underwriter—None.

struction.

Underwriters—To be determined by competi¬

ng bidding. Probable bidders: Halsey, Stuart & Co.
Ihc.; White, Weld & Co.; Lehman Brothers and BearStearns & Co. (jointly); The First Boston
Corp. and
Blyth & Co., Inc. (jointly); Union Securities Corp. and
Smith, Barney & Co. (jointly); Kidder, Peabody & Co.;
Salomon Bros. & Hutzler.
Bids—Tentatively scheduled
to be received up to noon
(EST) on Oct. 15.
* Victoreen Instrument Co., Cleveland, Ohio
Aug. 12 (letter of notification) 4,200 shares of common
(par

Frances

S.

$1).

Prospective Offerings

Price—At

the

market.

Proceeds—To

Victoreen, the selling stockholder.

Under¬

writer—Barrett Herrick & Co., Inc., New York.

Proceeds—To repay bank loans and for new construc¬
Underwriters
To be determined by competitive

tion.

Underwriter—None, but Townsend, Dab-

& Tyson, Boston, Mass., will act

as

Halsey, Stuart & Co. Inc.;
Corp.; Kuhn, Loeb & Co. and Uqion Se¬
curities Corp. (jointly); Harriman Ripley & Co. Inc. Bids
—Expected to be received by company at 11 a.m. (EDT)
on Sept. 23.
Registration—Expected about Aug. 27.
Arkansas Power & Light Co.
Aug. 7 C. Hamilton Moses, President, announced that
the company expects to borrow additional money next
Spring to finance its 1953 construction program, which,

negotiated

cumulative

sale

convertible

issue

an

of

preferred stock

Calif.

Carolina

July 17 it
tion

Light Co.

(10/20)

reported company is planning registra¬

late in

August of $20,000,000 first mortgage bonds
be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

due 1982.

tive

Power &
was

Underwriters—To

Lehman Brothers; W.

C. Langley & Co. and First Bos¬
Corp. (jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Equitable Se¬
curities Corp.; Smith, Barney & Co. and Blyth & Co.,
Inc. (jointly). Bids—To be opened at noon (EST) on

ton

Oct. 20.

Central

Hudson Gas

it

4

&

reported

Electric Corp.

plans the sale this
$5,500,000 first mortgage bonds.
Latest
financing was done privately in March, 1951
through Kidder, Peabody & Co.
Fall

of

was

company

about

bond

Central Maine Power Co.

May 15 stockholders increased authorized common stock
(par $10) from 2,500,000 shares to 3,250,000 shares and
preferred stock (par $100) from 300,000 shares to 330,000
sary

It is

this

estimated that

year

will be in

additional financing neces¬

excess

of $8,500,000.

Columbus & Southern Ohio Electric Co.

April 26 it was announced company expects to enter the
permanent financing market later this year with not less
than 200,000 shares of new common stock.
Proceeds—
For construction program. Underwriter—Dillon Read &

Co., Inc., New York.
Connecticut Light & Power Co.
was announced that it is presently estimated
that approximately $11,000,000 of additional capital will

March 1 it

be required during the latter half of 1952.

Erie RR.

(9/10)

shares of preferred

t^bonds. The Clyde Porcelain

.Whirlpool Corp.

on

March 31,

stock

firm

for

each

$100

was merged into

1952.

TJ^!t?£jrd Broth*r.s *ubber

Co., Trenton, N. J.

July 2 (letter of notification) 4,540 shares of
common
(par $10) being offered to
minority stockholders
«of record
July 15 at rate of one share for each five
shares held; rights to
expire on Aug. 15. Goodall Rub¬
ber Co.,
parent, will subscribe for an additional 7,490
shares and for any shares
not subscribed for
by other
stock




the

bidders: Halsey, Stuart & Co. Inc.;
Hutzler; Harris, Hall & Co. (Inc.).

Salomon

European American Airlines, Inc.
was reported company plans to raise an addi¬
$400,000 of equity capital. An issue of $200,000
of capital stock was just recently placed privately at
$7.50 per share. Underwriter — Gearhart, Kinnard &
Otis, Inc., New York.
V
June 11 it
tional

.

•

..

Food Fair Stores, Inc.

Aug. 19 stockholders approved proposals to increase the
authorized indebtedness from $12,000,000 to $25,000,000
and authorized common stock to 5,000,000 from 2,500,000
shares. No immediate issuance of any securities is con¬

templated. Traditional Underwriter—Eastman, Dillon &
Co., New York.

On Sept. 9, it is
expected that the company will sell at competitive bid¬
ding an issue of $15,000,000 first mortgage bonds due
1982 and use the proceeds toward its 1952 construction

* Gulf, Mobile & Ohio RR. (9/10)
Bids will, be received on Sept. 10 for the purchase from
thq company of $4,992,000 equipment trust certificates to
mature semi-annually over a 15-year period. Probable
bidders: Halsey, Stuart & Co,. Inc.; Salomon Bros. &

costs.

Hutzler.

it is estimated, will involve $29,500,000.

See under "Securities in Registration" in a

pre¬

ceding column.

Harnischfeger Corp.

Associated;Telephone Co., Ltd. (Calif.)
June 9 it

was

June 30 stockholders approved

reported company may issue and sell in

October about $8,000,000 to $9,000,000 of first mortgage

Proceeds—For repayment of

bank loans and construction program. Underwriters—To
be determined by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; Paine, Webber, Jackson &
Curtis; White, Weld & Co.
•
Bangor & Aroostook RR. (9/4)
Aug. 8 company applied to ICC for authority to issue
and sell $4,000,000 of equipment trust certificates dated
Oct. 1, 1952 and due semi-annually to and including
Oct. 1,1967. Probable bidders: Halsey, Stuart & Co.
Inc.;

Salomon Bros. &

Hutzler; R. W. Pressprich & Co.; Free¬
man & Co.; H. M.
Payson & Co.; F. S. Moseley & Co.
Bids—Expected Sept 4.
★ Bemis Bro. Bag Co.
Aug. 13 it
30

on

was

announced

stockholders will vote

increasing authorized indebtedness by issuance of

July 22 it was announced stockholders will in the fall
receive the right to subscribe for $1,700,000 of 5Y2% first
mortgage (convertible) bonds on a pro rata basis for a
14-day standby
(certain
stockholders
have
waived

rights). Proceeds—To repay bank loans and for
development and exploration expenses. Underwriters—
Probably Dallas Rupe & Son, Dallas, Tex.; Carl M.
Loeb, Rhoades & Co., New York; and Straus, Blosser &
McDowell, Chicago, 111.
•

California Electric Power Co.

(10/8)
Aug. 11 company filed an application with the FPC for
authority to issue 350,000 shares of common stock (par
$1), and requested exemption from the Commission's
competitive bidding requirements. Proceeds—To retire
two

convertible preference stock
issues
(5.50% and
5.60%) or for the discharge of bank loans, or both.
Offering—Expected about Oct. 8. Underwriters—Com¬
pany has been negotiating with several investment bank¬
ing firms. Previous public financing handled by Wil¬

liam R. Staats &

Co.; Lester, Ryons & Co.; and Walston,

proposal to increase au¬

thorized common stock from 500*000 shares (285,219
shares outstanding) to 1,000,000 shares (par $10) and
to pay a 100% stock dividend on July 25 to common
stockholders of record July 18.
They also voted to
waive their preemptive rights to
ized but unissued stock.

the remaining author¬

ic Hecht Co.
Aug. 20 it was announced stockholders will vote Sept.
18 on approving certain amendments which would per¬
mit somewhat more long-term debt provided the com¬

raises at least $3,500,000 of additional junior equity
capital. Junior stock financing is now under considera¬
tion. Underwriter—Goldman, Sachs & Co., New York.

pany

Illinois Central RR.

(8/27)

Bids will be received by the company on Aug. 27 for

the
consolidated mortgage
30-year bonds, series E, due Aug. 1, 1982. Proceeds—
To redeem on Dec. 1, 1952, $62,107,820 joint first refund¬
ing mortgage bonds due Dec. 1, 1963. Underwriters—
To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Morgan Stanley & Co.
purchase from

Sept.

their

broker.

* Whirlpool Corp., St. Joseph, Mich.
Aug. 11 (letter of notification) 2,700 shares of preferred
stock (par $20), to be offered in
exchange for outstandlng Ciyde Porcelain Steel Corp.
15-year 5%% mortgage
sinking fund convertible bonds due Aug. 1, 1960 on the
three

Probable bidders:

Byrd Oil Corp., Dallas, Tex.

(letter of notification) 1,000 shares of common
(par 50 cents). Price—At market (about $13 per
share). Proceeds — To Charles S. Payson, the selling

stock

stockholder.

—

bidding.

The First Boston

* Vitro Manufacturing Co., Pittsburgh, Pa.

basis of

80,000 shares of
(par $25). Pro¬
ceeds—To repay bank loans and for other corporate pur¬
poses. Underwriter—Dean Witter & Co., San Francisco,
through

Bros. &

$14,000,000 notes.

Aug. 19

ney

(9/23-24)

reported company has applied to Cali¬
fornia P. U. Commission for authority to issue and sell
was

Probable

Appalachian Electric Power Co. (9/23)
July 25 it was reported that the company expects to
issue and sell $17,000,000 of first mortgage bonds due
1982 and $6,000,000 of
serial notes due 1956 and 1957.

bonds, series H, due 1982.

* Utah Power & Light Co. (10/15)
Aug. 14 filed $10,000,000 of first mortgage bonds due
1982. Proceeds—To repay bank loans and for new con¬

stock

financing was
Fenner &

Pierce,

purchase from it of $2,830,000 equipment trust certifi¬
cates to mature annually from 1953 to 1962, inclusive.

and working

June 30 (letter of notification) 200,000 shares of common
stock

1952

Bids will be received by the company on Sept. 10 for

Tri-Centre Gas & Oil Co.,

U.

private

Lynch,

Merrill

California Water Service Co.

shares.

Magazine, Inc., Los Angeles, Calif.
July 14 filed 6,600 shares of 5% cumulative preferred
stock (par $100) and 6,600 shares of common stock (par
$10) to be offered in units of one share of preferred and
one share of common stock.
Price—$110 per unit. Pro¬
ceeds—For working capital. Underwriter—None.

below.)

drilling

Previous

Goodwin.

through

Aug. 13 it

March

Wisdom

Offering—Tentatively postponed.

stock

together with one $9 note^ and

company,

$20 per unit. Proceeds—For acquisition of oil and gas
royalties in the Williston Basin area.
Office—415 San

in

2,500,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds—

17

this

common

capital.

June 4 filed

July

of

stock

shares of stock at $1 per share.

Corp.

July 28 filed 190,000 shares of first preferred stock (par
$100). Price—To be supplied by amendment. Proceeds—
For general funds. Underwriter — Dillon, Read & Co.,
New York. Offering—Expected today.

To

Co., Houston, Texas
Getter of notification) $135,000 of 3% income
notes due July, 1962, and 30,000 shares of common stock
(par 10 cents) to be offered in units consisting of $9
principal amount of notes and two shares of common
two

&

arranged

Wilhead Royalty

July 17

Mosle

(9/8)

Co.

Transmission

Hoffman

Thursday, August 21,

.

.

Beane.

Jacinto

Tennessee

Aug.

Price—$14 per share. Proceeds—To mod¬
Office—Whitehead Road, Trenton 4, N. J.

.

it of $62,000,000

Industrial Research, Inc., Miami, Fla.
July 15 stockholders were scheduled to approve an of¬
fering of 225,000 additional shares of common stock
(par $1). Underwriter — Barham & Cleveland, Coral
Gables, Fla.

Kansas City Power & Light Co.
Jan.

announced that it plans to issue
about $12,000,000 principal amount
first mortgage bonds.
Underwriters — To be deter¬
mined
by
competitive
bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co. (jointly): The First
Boston Corp.; White, Weld & Co. and Shields & Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
omon "Bros.
&
Hutzler and Union
Securities Corp.
and

4

sell

company

in

1952

(jointly); Equitable Securities Corp.; Lehman Brothers
Bear, Stearns & Co. (jointly); Harriman Ripley 8t

and

Co., Inc. Proceeds—For

new

construction.

Volume 176

Number 5144

.

.

The Commercial and Financial Chronicle

.

(677)
Leonard

Refineries, Inc.

Pacific Power &

Aug. 6 it was reported stockholders on Aug. 26 may vote
on authorizing an issue of
$500,000 convertible deben¬
tures or preferred stock.
Proceeds—Together with funds

Aug.

stock
was

determined

Halsey,

October

or

first

to

Pacific

reported company may sell in September
undetermined number of

an

struction.

competitive
&

Co.

bidding.

Inc.;

Probable

Stearns

be

Co.

shares

common

of

announced company
P. U. Commission to

was

California

has sought approval

March 21 it

amendment.

certain

—

Beissner & Co.,

stock

•

Houston, Tex.

nine shares of

March
sell

14

it

was

& Light Co.

reported

in November

issue

an

owns

company plans to issue
of $8,000,000 first

stock.

and

Underwriter—Morgan Stanley & Co., New

New

announced

was

company

natural

construction

repay

loans

and

termined

Halsey,

construction.

by

competitive

Stuart

Peabody &

&

Co.

Co.

July 25 it

for

and

&

company

Stuart & Co. Inc.; The First Boston
Corp., HarriRipley & Co., Inc. and Goldman, Sachs & Co.
(joint¬
Morgan Stanley & Co., White, Weld & Co.
aifil
Equitable Securities Corp.
(jointly).

sey,

man

ly);

scheduled for 10

about

Expected

—

Tentatively set for Dec.

Nov.

Bids

14.

July

July 24 it

3

in

different

to

ways

changes.

Neither

tangible

evidence

dend factor is
at

a

is
that

the

any

with

in part of certain

tional

reported that company

was

stock

common

financing

usual

The

There has been virtually unani¬

agreement that the dividend

the

valuation

and

rough

method

do

the

at

pays

annual

rate

is

ready

us

use

the

multiplier

A,
expected

and
The

of

with

10.

normal

a

expected

dividends,
however,
are
$3.00,
$2.00 and $1.00, and zero, respec¬
tively. The formula would yield
valuations

follows:

as

to

Company A: 10x3 + 10x1=40
Company B: 10x2 + 10x1 = 30
Company C: 10 x 1 +10 x 1=20
Company D: 10x0+10x1 = 10

according to the prospects for the

V

$1.50 and the stock sells for $25.00
share. Now suppose that the

dividend
annual

rate

rate

is

increased

of $2.00

to

an

but with

Where

power or

general

pected dividend and E

of

Precisely what would
crease

in

market

in the

prices.
be the in¬

price

of

the

stock?
In

classic

third

revision

their

of

"Security Analysis," i Ben¬

jamin Graham and David L. Dodd
have offered a specific formula
to express the relative

of

that

should have

was

the

will

the

a

"'Security

be

that
V

the

that

payout ratio

M(% E + % E)

=

but

if

the

2 Graham

in

approach

some

payout

and

cases

is

=

plus

Analysis,"
Dodd, McGraw-Hill, 1951.

Graham
\




and

recdgnize

comfiaiites/that

-of
of

hot

special

hold

,in

.

i

In

•

.

fc':!

ft

>

each

dividend

dollar

.

,

•

com¬
are

authorized is¬

convertible pre¬

as

dividend rate of about 5%) for

a

common

stockholders.

Traditional Un¬

studies

others4

by

the

which

formula.

suggested

they

'

in a price jump in the stock when
the dividend is
announced.,Indeed
if
the dividend increase is less

state "our own
industry groups than anticipated there may ac¬
rather stable stock tually be a decline on announce¬

the

market

of

adds

1947-1949

led

to

us

a

ment

of

the

increased

similar conclusion that the weight

decision

as

of

changes

rate.

Any

were

$1.00

tended

great

to

as

distributed

of

earnings

about four times

be

as

that of $1.00 of retained

earnings." They do not, however,
give details of these studies.
From the nature of things any¬

thing in the way of final proof
of the formula would be difficult.
This is because stock prices may

for so many reasons we can
be sure that variations in

never

prices

of

times

ent

or

appear

select

groups can b£ accounted for on
the basis of the formula. It would

lar

stock at differ¬

solely to divi¬
Nevertheless

to

possible

be

it

to

formula

which,

if not absolutely conclusive,
would be persuasive, and point to

in

all

factors

differences

between

would not

the fol¬

(1)

To

of

in

lowing procedures.
assemble

number of

a

except

payout

the payout ratio are considered to
be constant and test whether
price

dence

on

in

stocks

(3) To select high payout and
low payout groups from a list of
stocks where factors other than

groups can be

might be based

the

generally sifctf/

ratios.

validity or lack of
validity of the formula. This evi¬

the

low

of

group

and
test
whether or not stock
price differences between the two

be necessary that
the two groups be

even

either

a

group of high payout
the
same
industry

a

from

the

the

of

To

stocks

the

assemble evidence bearing on the

validity

(2)

payout and

at

differences.

dend
would

unexpected

in

due

dividend

trary.

stocks

same

are

which

expected and which
is necessarily arbi¬

variations

different

time,
price of the
same

to

the

the

the

two

explained in terms

formula.

Here

the

stocks

necessarily have to be

same

industry. It is

neces¬

only that the stocks be

sary

con¬

instances of unexpected increases

sidered to be similar in essential

in

in dividend rates and test whether

risk

valuation

a

which is

$3.%

four

of

$13.%

times the

developed

The

by

a

dollar

value of

dollar

of

or

not

No formal evidence is presented

dend

well

dend
3 It

form
or

seems

all

not

cases

of

net

ances

vent

evident
asset

marketable
current

for
as

low

a

in

(after

securities)
nric

as

full

this.

fully recognized by the authors.

the

in

assets

allow¬

would

of

resulting
be

can

the

course,

increases

advertised
would

explained

formula.

be

It

is

that the

in

nec¬

divi¬

unexpected. A

increase

probably

in

not

pre¬

This

is

4

divi¬

result

"Valuing Utility Earnings Distributed
and Retained," Hugh
Postoriza, Analysts
Journal, July 1945.
"Factors
Influencing Utility Price
Earnings Ratios." Harold H. Young, An¬

alysts Journal, Spring

1946.

.

and

prospects and dissimilar

price only in dividend payout ratios.

stock

but

many

either

non-oDeratinir

assets

senior

that

values

of

essary,

Evidence

the

increases
terms

by the authors. They do refer to

asset

oper¬

Sept. 2 will

on

an

ings dollar paid out, then, results

than

mind

creating

on

derwriter—White, Weld & Co., New York.

during

earn¬

earnings not paid out.

market¬

*ufebicT>lfifthe normal

the ;b$kin£8S:.or; stocks*of

panies
whose
current
assets
large in relation Wquoted values.
!

dition

worth

in ad¬

minus adjustment

or

values/Presqmatdy/+bey have

to

is
and

dollar

in market price

M (E)

more

dividend

able assets

%.

Dodd also point out that

a

necessary

stocks

as

only

is

is

coordinate position

this

the formula becomes

case

earnings

$3.V^

$10.00 to market value. Each

observed

traditional

ations
1

expected

=

suggested in the
factor

ex¬

=

formula yields the same result

importance

earnings retained and paid out.

This formula
belief

It

when

the

D

earnings.

security

level

value,

=

no

change in earning

each

M(D + 1/3 E)

=

V

two

support

(carrying

subscription by

proceeds

vary

company
Graham

of

things,

500,000 shares of preferred stock (par $30), part

ferred stock

Moreover,

companies

assume

Gas Co.

stated that the directors

was

among other

of

sue

addi¬

some

Aug.

studies of various

B, C, and D all
earnings of $3.00

apply a
multiplier (price-earnings ratio)
to
the
expected
earnings. The
multiplier, of course, will vary

per

""**• J-

which, it is estimated,

What the formula suggests then
and the industry.2 The
rate
is an important factor and
and
Dodd
suggested is that each $1.00 of earnings paid
exerts an influence upon price en¬ formula
represents no fundamental out in dividends exerts an influ¬
tirely independent of the earnings deviation from this process. Their ence on market
price four times
factor.
Nevertheless,
until
re¬ formula
utilizes
the
multiplier as great as $1.00 retained in the
cently, no evidence has been pre¬ (M) or price-earnings ratio and business. This is evident in
the
sented and no opinion offered as
they suggest that the multiplier above illustration since the stock
to the precise weight of the divi¬
in their suggested formula is the with
a
zero
payout develops a
dend factor as an influence inde¬
same
sort of earnings multiplier
valuation
of
$10.00 3, while the
pendent of earnings.
Suppose a as employed in the traditional
stock with a full payout develops
company earns, with
some
con¬
valuation
method.
Specifically
sistency, $3.00 per common share their
a
value of $40.00 In other words
suggested formula is,
and

Western Natural

vote,
«■

Brothers
for

Bids—To be opened about
Sept. 30.

of which the
company plans to offer

may

and

its construction program

Let

determined

Aug. 11 it

.

Aug. 4 it

be

a

outstanding mortgage bonds.
r

process.

divi¬

over

retirement

Southwestern Public Service Co.

—

in

27.

Commerce

Proceeds—For

years.

Example

earnings

(9/30)

by competitive bidding. Probable
Halsey, Stuart & Co. Inc., Blyth & Co., Tnc,f
Smith, Barney & Co. and White, Weld & Co.
(jointly);
W. C. Langley & Co.
and The First Boston
Corp.

authority to issue and sell $46,000,000

period of about four

Market Force

as

stronger influence valuation

The Graham and Dodd Formula

mous

Interstate

bonds, without competitive bidding,

Retained

time than another.

one

the

to

for

%, V will exceed M(E) and con¬
versely if the payout is less than %.

dividend
there

applied

company

toward

Earnings

Co.

was

(jointly); Union Securities Corp. and Lehman
(jointly). Registration—Tentatively scheduled

of mortgage

15.

vs.

Oct. 7.

on

bidders:

Ry.

Commission

Continued jrom first page

Dividends

Bids—Tentatively

(EST)

Washington Water Power

by

ing—Not expected before late in September.

Corp.; Union Securities

Corp. Registration

a.m.

—To

Corp.

(jointly); Equitable Securities

new

reported company plans issue and sale of
$30,000,000 first mortgage bonds due 1982. Proceeds—
To retire part of
outstanding bank loans. Underwriter#

Kidder,

Securities

that the corporation
may issue

construction by
Underwriters—To be de¬
bidding. Probable bidders: Hal¬

improvements.

bidders:

Brothers;

Webster

The-

Under¬

early Fall $60,000,000 of debentures. Pro¬

ceeds—To retire bank loans and for

Underwriter—Morgan Stanley & Co., New York. Offer¬

Underwriters—To be de¬

Inc.; Lehman

Stone

Sept. 2.

company and its subsidiaries.
termined by competitive

Co., Chicago, III.

was announced company plans to offer to its
stockholders about 3,180,188 shares of common
stock (par $15) at the rate of one new share for each
10
shares held. Proceeds—For expansion and

(12/15)

Probable

reconvene

over

(10/7)

reported

was

and sell in the

a

Southern

bidding.

pro¬

common

July 24 company announced plans to issue and sell $6,000,000 of first mortgage bonds due Dec. 1,,1982. Pro¬
new

on

pipeline

and to import

■t...

Socony-Vacuum Oil Co., Inc.

Corp.; Merrill Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co. and White, Weld & Co.
(jointly). Proceeds—To repay bank loans (estimated to
be $11,500,000 at Dec.
31, 1952).

ceeds—For

will

cost

hearing

1,406-mile

a

Virginia

July 18 it

Co.; The

Inc.

to

build
West

from Mexico,

estimated

United Gas Corp.

Underwriter—None.

Northern Natural Gas Co.

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities Corp.; Kuhn, Loeb &

New Orleans Public Service

into

preferred stock held. Ameri¬

or

for convertible notes and
stock; Stone & Webster Securi¬
ties Corp.; and Glore, Forgan &
Co., both of New York.
Of the stock of this
company, 51% is now owned

additional issue of first mortgage bonds and common
stock in equal
amounts, either late in 1952 or early in
1953. Underwriters—For bonds to be
determined by com¬

Boston

is

that the FPC

to

company

$184,000,000
writer—Kidder, Peabody & Co., New York.

an

First

gas

project

applied to FPC for authority to con¬
384-mile pipeline system from west Texas
and
eastern New Mexico to the Panhandle
area of Texas at
an estimated cost of
$58,180,000. Probable underwriters
struct

contemplates

now

expansion.

April 1

England Power Co.
it

Proceeds—To

announced

was

extending from Texas

share for each

new

York.

Texas-Ohio Gas Co.

&

Permian Basin Pipeline

Langley & Co. (jointly); Equitable Securities Corp. and
Shields & Co. (jointly); Merrill
Lynch, Pierce, Fenner
& Beane; Union Securities
Corp.

June 26

one

Proceeds—To

posals by this

Telegraph Co., the parent, presently
approximately 90% of the outstanding common

further

mortgage
bonds. Underwriters—To be determined
by competitive
bidding. Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co.
(jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.

common

Telephone

can

Mississippi Power

Telephone & Telegraph Co.

(par $100) in the ratio of

Price—To be supplied
by
repay $81,500,000
of bank

Mandan

N. D.

11 the company applied to the California P. U.
Commission for authority to offer for
subscription by its
stockholders an additional
703,375 shares of common

reported early registration is expected
125,000 shares of common stock. Proceeds—To
go to
selling stockholders. Underwriter
Moroney

of

offered
$100 of debentures for

of

loans, and to finance expansion,
including a 30,000-barrel-a-day refinery iq the Williston Basin of

Aug.

was

preferred!

announced

was

to stockholders at rate
each 11 shares of stock held.

Underwriter—To be determined
by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

Pacific

Co., Houston, Tex.

and

Co

first

Inc.; Lehman
Brothers
and
Union
Securities
Corp.
(jointly); White, Weld & Co.; Morgan Stanley & Co. Bids
—Tentatively set for 8:30 p.m. (PST) on Nov. 15.

(jointly).

Exploration

bond

a

Aug. 15 it
Minabi

Additional

that the
company is planning
registration statement with the SEC for
$139 647,200 of 30-year convertible debentures to
be
to file

(10/15)

struction.
tive

1953.

and

issue and sell $35,000,000 of debentures due Nov. 15, 1979. Proceeds—For
repayment of advances and bank loans and for new con¬

—

31,

Inc., New York.

bidders:

&

Aug.

financing may also be necessary; this
previously
privately. Underwriter—Dillon, Read &

done

^ Standard Oil Co. of Indiana

Telephone & Telegraph Co.

Aug. 11 it

Underwriters
For common
stock, probably
Blyth & Co., Inc. and The First Boston
(jointly). For
bonds, to be determined by competitive
bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; W. C. Langley
& Co.; Smith,
Barney & Co.; Blyth & Co., Inc. and The

First Boston Corp.

by

Stuart

Underwriters—To

Aug. 20 it

stockholders and later in year some additional
Proceeds—To repay bank loans and for new con¬

bonds.

construction.

new

Bear,
Salomon Bros. & Hutzler (jointly).

Long Island Lighting Co.
was

ended

approval for the issue of

Proceeds—For

$1,500,000 7-year serial notes, to be
used
toward expansion program.
Underwriter—Prob¬
ably Bradbury-Ames & Co., Grand Rapids, Mich.

July 30 it

Light Co.

15 company asked FPC

$7,500,000 30-year first mortgage bonds due Sept., 1982.

from private sale of

29

Actually
possible

to

it

proved

test

the

to

be

im¬

formula

by-

reference to high payout and low-

payout stocks from the

same

in¬

dustry. There proved to be little
variation
same

ferences
found

in

payout ratios

industry.
in

in

Where

payout

the

same

Continued

in

wide

ratios

the
dif¬

were

industry inon

page

30

■

30

The Commercial and Financial Chronicle

(678)

Continued

lowed

in

dividend

presumably

Dividends

Earnings

variably these appeared to merely
reflect other differences of size,

nual

Then

too

a

$5.00

from

prior

zation

a

to

share

change in dividend

this

earnings

illustrations

payouts.

then

can

of the high

payout group would then sell at
10.4 times earnings instead of 7.4

test

by reference to prices

of selected

high payout and low
payout stocks where factors other
than the payout ratio are
con¬
sidered to be comparable, and by
of

groups

payout group, the low

Formula

the formula

Two Tests of the

We

low

earnings.

times

on

dividend change may

From

not be en¬

74

tirely a matter of investor ap¬
praisal of the dividend factor but
may reflect in part investor con¬
fidence

of

the

lows:

$1.00 of earnings
with a 42.6% payout will produce
examining the price behavior of
of those dividend changes that are
a market value of $7.40 and $1.00
stocks on announcement of divi¬
considered to be somewhat un¬
of earnings with a 73.3% payout
dend changes.
expected. Moreover, since all divi¬
will produce a market value of
Test 1—Two groups of stocks
dend changes are to some extent
selected. One of these groups

were

high payout group and the
other a low payout group. There
were
four stocks in each group,

was

a

selected so that the
would be as nearly

and they were
two

groups

comparable as
possible on all
counts except payout ratios.
The
stocks were all generally repre¬
sentative of producer rather than
consumers goods.
Each group in¬
cluded two metals and one auto¬
equipment. In addition the

motive

high payout group included a rail¬
way equipment and the low pay¬
out

group

cluded in the two groups were:

A. O. Smith

Phelps Dodge

Aluminum Corporation

Kennecott

Anaconda Copper

Corporation

Dana

In terms of

Allis Chalmers

Avge.

4.25

current dividend

Price earnings ratio

10.4

Dividend

73.3%

payout

Prices

are

as

of the date of the

Since

imes

for

stocks

comparability, it

the

difference

ratios

is

due

Continued

selected

appears

en¬

suppose that
price earnings
largely to the dif¬

tirely reasonable

to

in

jrom

$10.60

This

same

test

reported

those

from

tion

these tests

above.

indicated
in

weight from two and one-half to
four times the earnings factor.
Dividend

Unexpected

from

that

—

method

the

Here

employed

em¬

1.

Test

in

The

and Dodd formula i& as¬

Graham

sumed to be accurate. On the basis

formula

the

of

then,

the change

in

there

Broad
of

as

an

dend

is

server

T*>here

Power

&

a

familiar

with

instances

in price has fol¬

decline

Light—Memorandum—Pacific North¬

Rand

Inc.—Analysis—Eastman,

Street, New York 5, N. Y.

Thiokol

Dillon

&

Also available is

Co.,

15
anlysis

an

Corporation.

Cement

Riverside

Co.—Analysis

Industry—Lerner & Co.,

and

review

of the

Cement

10 Post Office Square, Boston 9,

Mass.

.

letin

Electric—Bulletin—Paul H. Davis

Street, Chicago 3, 111.

table

around
here

15

may

are

data

on

&

Co.,

Also available in the

10

S.

same

included in

selling

stocks

under.

The results

this

entirely valid in the case of stocks

a

value than

the

cases

or

Moreover

earnings.

basic asset values in such cases as

must

Paramount

United

and

Spiegel

men

way

defend

toward

dividends

on

Portage

Avenue,

East,

Winnipeg, Man.,
Building, Toronto, Ont., Canada.

Canada

two general

grounds.

general

we

Sons, 173
Royal

value of

Standard Cable Corp.—Bi

Are Dividend Dollars More
Valuable Than Retained

illetin—Englander & Co.

Standard Gas & Electric

115 Broad¬

Co.—Analysis—Gerstlev, Sunstein &

Co., 121 South Broad Street, Philadelphia 7, Pa.
Stromberg Carlson Co.—Memorandum—Fewel & Co., 453 South
Spring Street, Los Angeles 13, Calif. Also available is a
memorandum

on

Sunbeam

Tejon

Ranch

E. Hutton & Co., 14 Wall

about

It has been said that the

values.

what the judges say it is.

In

something of
values are what

the
men

sense

same

$1,000 at 4% for 30 years

is

only $308, because if that sum

is

allowed

to

accumulate

at

4%,

think

they

compound interest lor 30 years
will

bility to the law than to security
valuation, i.e., judges change their
minds
less frequently than in¬
vestors.
Value .changes probably
changes
in
the
than
the
mere

reflect

rather

basis
assert

it

would

world
mind-

On this

be 'sufficient

to

merely that earnings paid

is

usually,T only

possibility,
vestor

it

regard

isf clear
for

it

Since liqui¬

to $1,000.

grow

dation

There is probably more sta¬

iChangeing of fickle men.

Co.

Corporation—Analysis—W.
Street, New York 5, N. Y.




There is nothing absolute

are.

New York 6, N. Y.

Dillon, Read Group
Offers Texas Eastern

Transmission Pfd. Stk.

sissippi

-

pipeline

Pennsylvania

placed in service Aug. l, 1952.
Additional investment by the pa¬
was

Why

law is

Sperry Corp.—Brief data—Stern, Frank, Meyer & Fox, Union
Bank Building, Los Angeles 14, Calif.

+

regard

Earnings?

and

is unrealistic.

Dillon, Read & Co. Inc. heads an
(1) Basically value, at least to investment banking group which
the tests a non-controlling stockholder, is
is offering publicly today
(Aug.
of price changes resulting
from the sum of the present values of
21) a new issue of 190,000 shares
dividend changes as distinctly in¬
future returns.6 If it were known
of 5.50% first preferred stock, $100
conclusive.. It seems clear that by
that a particular company would
par, of Texas Eastern Transmis¬
no
means
can
all of these divi¬
never pay
a dividend and would sion Corp.
The stock is priced at
dend
changes
be
regarded as never liquidate, logically its stock
$100 per share, plus accrued divi¬
unanticipated. Indeed in the cases would have no value. As a matter
dends.
The new first' preferred
of United Paramount and Loews
of mathematics, nearby dividends series ranks ahead of the present¬
the price drop from a few months
influence value much more than
ly outstanding convertible pre¬
prior to the dividend cut to the expected
dividends far in the ferred stocks.
day following the reduction rather future.
This is because nearby
Texas Eastern will use the pro¬
closely approximates the reduc¬ dividends are more certain than
from
the
new
preferred
ceeds
tion expected by the formula.
more remote returns and because
stock, together with proceeds from
The tests made of the Graham of the nature of the mathematical
the private sale of $30,000,000 of
and Dodd formula are far from
process.
The present value of a bonds to institutional investors, to
conclusive so far as determining
future sum is the amount which complete financing of the com¬
finally whether or not their thesis
pany's several expansion projects
that earnings paid out are worth if invested now at the given rate
which include: construction o^ a
precisely four times as much as for the given time will accumulate new 30-inch pipeline from Kos¬
earnings retained. But the tests, to the
given sum. Thus at 4%, ciusko, Miss., to Connellsville, Pa.;
especially the first, do indicate
$961 is the present value of $1,000 development of large underground
that they are substantially correct.
gas storage facilities in Western
Earnings paid out do have an due in one year because $961 in¬ Pennsylvania, and a program to
impact on market price several vested at 4% for one year will increase its supplies of gas in the
times
as
great as earnings re¬ grow to $1,000. But the present Texas Gulf Coast area. The Mis¬
In

La

bul-

reinvested merely

maintain the same level

ra-

of that thinking. We
the apparent attitude

tionability
can

about divi¬

appraise the

reported

be
earn¬

and immutable
of thinking.
to the circum¬

think

then

and

earnings that has to
in order to
of output
is permanently denied to the in¬
vestor.
It may be that investors
have quite reasonably determined
that so called "earnings" which
have- no prospect of being trans¬
lated
into
dividends
have ,no
reality. In this, investors would
seem
to be realistic
where the
American Institute of Accountants

of

is entirely

dends

"reported earnings"

of

plowed back in order to

be

merely maintain the same level
of
output.
If the enterprise is
not to be liquidated, that portion

stances and

the

do not live.

we

portion

a

psychology of 1929 it
possible that we would
is either very, high or
low re¬ find that dividends would play a
flecting an expectation of change. much more minor role in security
In other words, there may be a valuation.
residuum
of
speculative
value
Perhaps a better approach is
which has little relation to either to
accept the fact that this is
at very low prices, or in
where the dividend yield

selling

to be entirely appro¬

depreciation estimates are
limited to cost, it is inevitable that

pattern

return

seem

If

—2.38
+2.37
—1.00
—1.12

fixed

about

Given

level of productive
The attitude of the

priate in the kind of a world'in

$

more

to
insure
enterprise at

the

of

American Institute of Accountants

ings retained because men think
they have.5 There is, of course,

the nothing

that

indicate

have

out

Dodd formula is not

M. Lowenstein & Sons, Pepsi Cola Company,

Simpsons, Limited—Analysis—James Richardson &

way,

cases

were
or

Graham and

The Macmillan Company and Booth Fisheries.

Bank

the

original

would

changes

tained.

Sangamo
Salle

the

of

2,1952

nature of things may well justify such a minimum
probably no such thing valuation as to lead to very little
entirely unexpected divi¬ variation in price as a result of
change. Every market ob¬ quite large changes in dividends.

Co., Exchange Building, Seattle 4, Wash.

Remington

Three

Inc

ac¬

than

rather

efficiency.

Actual

—5.46
+5.02
—5.12
—6.06

May 27,1952

is

Company—Analysis—Cruttenden & Co., 209 South

Sound

west

July

price that should have resulted
from the dividend change is com¬ dividends

Broadway, New York 6, N. Y.

Puget

Spiegel

results show no great devia¬

The

the

Have Kesuited irom
Immediate
Application of Formula Price Change

May 28,1952

The official

depreciation

of

continuance

which

July 22, 1952

divi¬

cannot

certainties.

purpose

ment

Immediate Price

Spencer Chemical..-.
United Paramount...

the sample.

England Public Service Co.—Analysis—Ira Haupt & Co.,

Ill

sulting immediate price
are
summarized below.

he

charges should be based on
and not on anticipated re¬

the

other

four

earnings."
spend

can

counting is to maintain the integ¬
rity of the original dollar invest¬

of dividend changes with re¬

cases

Date

Inc.

Loews

combinations

other

various

stocks included in

La Salle Street, Chicago 4, 111.
New

detail

about

placement cost. This is to say that

basis but without

same

the

showing

Meeting

repeated but

was

8

page

the

On

would ex¬

$

Recommendations & Literature
The Muter

some

Company

*

Dealer-Broker Investment

jr

to

are

From the very
were

increased at

Change that Should

$1.00 in earnings
$2.96 == $3.58.

much as

as

retained.

1948-51.

the

tion

announcement from

of

time

one-half

and

three

than

more

study (Spring 1952) and earnings pared! with the change that in fact
are
the adjusted average for the occurred.
four years

=

Actually the price
the

pect this test to considerably un¬

ployed is somewhat different than

$52.12
7.02
3.00
7.4
42.6%

5.80

8.60

new value
—

reality

a

"reported

but

from

cost

On the basis of this test derstate the real importance of the
then, $1.00 of earnings paid out dividend factor.
is worth in market value a little

Changes

High—Payout—Low

—$60.20

Average price
Average earnings

j

*30.7

changes

degree anticipated we

Test 2—Price Changes Resulting

follows:

74

j

3

82.60

(3)

;

simple averages the

two groups compare as

$2.96

j 42.6 X $3.20/

that the dividend factor ranged

Pullman

,

-

Specifically

Low Payout

High Payout

$7.40

with

ings of BB except for one B in the
low payout group. The stocks in¬

|

=

is

position of the American Institute
of Accountants is that deprecia¬

Theoretical

82.60

=

By

dividend

of

rat¬

10.711

+

anticipated
and
therefore
dis¬ 74 to 79, although in subsequent
simple linear extra¬
counted in advance we would not
days it rose to approximately the
polation,' then, $1.00 of earnings
expect this test to be as valid as formula value^but in a strong
with zero payout would produce
the previous one. In general if rail market.
a market value of $2.96:
(2)

Fitch

had

stocks

far

'

8.63

$10.40.

equipment

general

a

All

stocks.

that

appears

com¬

spend
reported e a r n i n gs. In varying
degrees reported earnings depend
upon a set of estimates which are

There

is, of course, an arbitrary
element involved in the selection

After

are

that is, in part at least,

in

dends,

fol¬

$8.60 developed as

of

crease

rate.

earnings

stockholder

The

in dividend, then
should
have
according
to the
formula resulted in a price in¬

earnings

current

lacking

change

The

this point.

on

There

(2)

dividends

8.63

—

with

monly invested in business assets
and are not kept in liquid form. +

M (8.57)

=

M

lack of it in the main¬

or

tenance

the table above and
the basis of our assumption, it

(1)

a

valua¬

in

retained

all

—

payout group increased
the dividend payout to the level
the

in

lower

stability. Graham
offer
a
number
of

Dodd

and

marginality. In

or

be

future dividend

$10.71 and
developing the

assumption, then, we can develop
multiplier at which the stock sold
the relative of earnings retained
agement confidence or lack of prior to the dividend change. This
other words the stocks were not and earnings paid out. The num¬ confidence in maintenance of the was developed as follows:
computations
below
are current earnings rate. Therefore
really comparable in those cases bered
74
M j$5 + 10.71f
where there were differences in based on the assumption that if a change in price resulting from
I
3
f
capitalization

dividends

certainty. But it
is entirely clear that the retention
of earnings
is no guarantee of

were

in

used

was

would

rate

increase

the

stock sold around 74. The 1951 per

may

future

This is because the capitali¬

tion.

increased

$1.50

made

certain, the dividend factor

more

by

$6.00

to

Thursday, August 21, 1952

.

would be less important

quarterly dividend of
from $1.25. Just
the announcement the

declaring

in part at least be con¬
sidered to be a reflection of man¬
rate

rate

.

really

Southern

1952,

22,

May

Pacific directors increased tne an¬

increase but
that they expected a greater in¬
crease than was forthcoming.

payout ratios. On this

in

ference

dis¬

of

reflection

a

On

Pacific

1—Southern

Case

in¬
is

investors expected an

Market Force

as

an

This

rate.

appointment at the amount of in¬
crease and indicates not only that

Retained

vs.

of

announcement

crease

jrorn page 29

.

remote

a

that

dividends

in¬
is

5 For

this

retention

of

experimental

verification

the
an

attitude

toward

earnings

dividends

see

of
An

Experiment in Speculative Behavirr, O. K.
Burrell, Bureau
of
Business
Research.
University of Oregon.• + ■
>*,.
6 The best exposition of this principle
is to1 be found* In-The Theory of Invest¬
ment
Vo/ue, John pBfurr Williams, Hary
vard University Press, 1938.

company

in

Texas Eastern
wholly owrjed

subsidiary, is also contemplated.
Eastern

Texas

ates
from

a

pipeline
the

Texas

to New York

and

firmly rooted in logic.
If

rent

Production Corp., a

sale

at

owns

and

oper¬

system extending
Gulf

Coast

area

for the transmission

wholesale of

natural

supplying customers in Lou¬
isiana, Missouri, Illinois, Indiana,
Ohio. West Virginia, Pennsylva¬
gas,

nia, New Jersey, and New York.
When facilities
nearing comple¬
tion are

brought to planned capac¬

ity, the company's natural gas de¬
liveries will be increased to more
than 1.2 billion cubic feet per

day.

Number 5144

Volume 176

....

The Commercial and Financial Chronicle

and

Beef

Steak

Dinner

at

(679)

the

County Country Club, West
Orange, N. J.

COMING
EVENTS
Investment

In

Firms

1952

22,

Bond

(Denver, Colo.)

Club

of

Denver

Group of IBA Summer

Frolic

the

Park

Hill

Mark

Fall

DIVIDEND

Oct.

8-10,

1952

City)

Security Traders Association of
New

Firms

Dividend

Board

Exchange

Governors

Fall

meeting at the Ambassador Hotel.
.f

Oct. 20-23, 1952

National

Sept. 5, 1952

(New York City)

ciation

Security Traders Association of
New

York

County

Outing

at

Club,
Hills, Staten Island.

Dongan

nual

(Philadelphia, Pa.)
of

Philadelphia

Convention :at

Country
Pennsylvania.

Club,

Security

Traders

As¬

tour.

Annual

At

Convention at

DIVIDEND

the

Holly¬

has
15,

record

been

declared

to

1952

Sept.

stock¬

12,

1952.

25#

August 13, 1952
DIVIDEND No. 305

day,

share

per

REEVES BROTHERS,

quarterly dividend of

declared

was

the

of

stock

mon

a

the

on

DIVIDEND
A

com'

payable

Company,

quarterly dividend

books of the

H. B. Pierce,

of

30c

COMPANY
per

declared, payable
September 12,1952, to stockholders

of

12, 1952.

NOTICES

UTILITIES

inc.

NOTICE

share has been

record

September

Secretary

the

at

2,

close

DIVIDEND

transfer

The

75c

per

REEVES, Treasurer

ber

KENNECOTT

COPPER

share

Stock

Common

the

on

August 15, 1952

Day
distribution

cash

and

of

cott

declared

Copper Corporation, payable

of record at the close of business

BENEFICIAL

the close of

at

COMMON
A

on

regular

HUME

August 15, 1952.

vidend of 37
the

on

STOCK

quarterly

Yi i

Common

di¬

share

per

Stock

on

has been

declared,

pay¬

able September 19,

ROBERT C. SULLIVAN,

business

Greensburg, Pa.

share

a

today by Kenne-

August 29, 1952.

LOAN CORPORATION

1, 1952 to stockholders of

Secretary

CONTROLS COMPANY

September 30, 1952, to stockholders

CORPORATION

the Common Stock

R0BERTSHAW-FULTON

Dollar

One

Twenty-five Cents ($1.25)

has been

today

JOHN

East42dStreetNewYorkl7,N.Y.

HACKNEY, Treasurer

BRICGS & STRATTON

on

CORPORATION
1 61

NOTICES

Directors

August 29, 1952.,

payable September 12, 1952, to holders of

ROGER

of

Company, payable Octo¬

record

DIVIDEND

'

dividend of 47 cents

a

share

of the

August 18, 1952.

C orporation

per

Board

declared

closed.
E.

NOTICE

business

The

1952.

of

Company will not be

J.

ore 11

>n.o

this

A

DIVIDEND

of

fifty
stock

Company

Johns-Manville

mem¬

Golf

treat

October

per

of

capital

^Boston, Massachusetts, Aug. 18, 1952

September 30, 1952, to stockholders of
record at the close of business September

record September 2, 1952.

Dutch

Company

cents

dividend

the

Secretary and Treasurer

I

SiSi
of

ber-guest

on

EMERY N. LEONARD

meeting of the Board of Directors,

a

held

wood Beach Hotel.

(New Jersey)

Jersey

share

holders

The Board of Directors declared a dividend

Bond Club of New

seventy-five
extra

payable

1952.

1

jT COMMON

\

Investment Bankers Association

Convention.

1952

this

Quarterly Dividend

of
an

SMITH, Treasurer

Packing
.

Convention

Hollywood, Fla.)

Abington,

Association

T.

New York, N. Y„ August 19,

(Havana, Cuba)

Nov. 30-Dec. 5, 1952

(Atlantic

Bankers

per

of

Secretary-Treasurer
August 18, 1952.

Roney

an¬

City, N. J.)
American

cents

Charles E. Beachley,

and

The Garlock

JOHH3-MANVIILt

Sept. 28-Oct. 1, 1952

Oct. 2,

the

day at the Huntingdon

Valley

Annual

WILLIAM

(Chicago, 111.)

Club

field

(Miami, Fla.)

Oct. 24-27, 1952

annual field day at

Bond

dividend of Fifty Cents
($.50) per share was declared on the 2,658,230
shares of the Capital Stock of Newmont Mining
Corporation now outstanding, payable Septem¬
a

dividend

share

of business August 29, 1952.

Security Jraders Asso¬

National

Municipal Bond Club of Chicago
the Knollwood
Country Club.

A

1952. Checks will be mailed.

No. 96

Plaza Hotel.

sociation

Sept. 26, 1952

August 19, 1952,

Richmond

Country

Sept. 19, 1952

On

213thConsecutive

ber 15,1952 to stockholders of record at the close

York

Bowling season opens
at the City Hall Bowling Center.

'

Stock

of

UNITED FRUIT COMPANY

COMPANY

COAL

meeting held today, declared a quarterly
dividend of 75 cents per share on the Com¬
mon
Stock
of
the
Company, payable on
September 12, 1952, to shareholders of rec¬
ord at the close of business on August 29,

Corporation

(Los Angeles,

of

PITTSBURGH

at a

Calif.)
Association

"N

The Board of Directors of

NOTICES

Newmont Mining

Country

(New York

L.

Reed,

City.

Club.

Sept. 4, 1952

&

Hopkins

Rocky

-

Iowa—John

Waddell

NOTICES

Exchange

Governors

the

DIVIDEND

r

CONSOLIDATION

Stock

of

at

NOTICES

Chronicle)

Hotel.

Mountain
at

of

Board

meeting

with

Inc. of Kansas

Calif.)

Field

is

Kemp

(San Francisco.

Association

Aug.

(Special to The Financial

DAVENPORT,
Oct. 5-7, 1952

DIVIDEND

Waddell & Reed Add

Essex

31

1952

to stockholders of record

Secretary

the

at

(Briggs &StrattoiQ

close of business

September 10,1952.

DIVIDEND NOTICE
The

Dividends have been declared by
the Board of

Directors,

CUMULATIVE

as

follows:

$3.25 Dividend Series of

$.8 V/4

per

share

five

and

cents

stock

September 30, 1952)

an

U?pc)

(without

tion,

payable

holders

COMMON

Directors

of

has

declared

quarterly dividend of twenty-five cents

1946

(for quarterly period ending

Board

The

share

per

of

extra

dividend

share,

per

value)

par

September

record

L.

STOCK
August

G.

1952,

29,

The dividends
tember
of

are

REGNER,

•

close

at

of

Philip Kapinas

Treasurer

At

meeting of Directors held August
12, 1952 in London, it was decided to
a

pay

September

on

Dividend
OVER
700

U. S.

IN

OFFICES

METALS

AND CANADA

of

30,

Interim

1952

One

Shilling for each One
Ordinary Stock for the year
ending September 30, 1952 on the issued
Ordinary Stock of the Company, free of

Pound

of

United

Kingdom Income Tax.

and

of $1.121/2

a

871/2^

a

share

on

PREFERRED

the Preferred Stock

COMMON

—$3.50 Series, both payable October 25,
business

85(f

share

a

third

interim

record

at

on

the

October

10,

1952;

the Common Stock

dividend

13,

September

25,

on

1952,

close of

for

also

as

the

business

on

of

L.

August

AMERICAN

No.

214

be

must

the

fers

5% Preference Stock. All

received

in

London

on

COMPANY
PREFERRED

The Board of Directors of Ameri¬
can

Company today
quarterly dividend of

Cyanamid

declared

a

one-half
cents
f87 V2C) per share on the outstand¬
ing shares of the Company's 3'/2 %
Preferred Stock,

A

and

1.

1952,

stock

Series
of

business

to

payable

B,

holders

the

at

record

September

the

2,

October

1952.

on

the 6%' Preference

transfers
before

received

Stock. All

London

on

or

October'J, 1952 will be in time

for payment

of dividends to transferees.

Stockholders
virtue

in

of

wflio

may

be entitled by

Article|XIII(1) of the
Treaty! between

Taxation

States and the
under

DIVIDEND

the

Double

United

United Kingdom, to

a tax

Section 131 of the United

States Internal Revenue Code can by
application to Guaranty Trust Company
1

The Board of Directors of Ameri¬

Cyanamid Company today de¬
clared a quarterly dividend of fifty
can

cents

(50f) per share on the out¬
standing shares
of
the Common
Stock

of

the

September 26,

Company,

1952, to

payable

the holders

of

New

York

obtain certificates giving
of ^ates of United Kingdom
Income Tax appropriate fo all the above

particulars

mentioned

dividends.

'J

of such stock of record at the close

of business September 2,
R.

S.

New York, August

KYLE,

1952.

Secretary

19, 1952.




on

Dividend

The

on

Common Stock

Directors

of

ber

5,

1952. Checks

will be

mailed from the Company's
office in Los Angeles, Septem¬
ber

50JL952.
p.c.

DILLARD, Secretary

HALE,

Treasurer

August 15, 1952

5

Alkali Company have on
August 12, 1952, declared a
dividend of $1.10 per share
for the quarter ending Sep¬
tember 15, 1952, payable
September 15, 1952, to hold¬
ers of
4.40% Cumulative Pre¬
ferred

Stock

of

i',

i

Diamond

THE TEXAS COMPANY

record

August 25, 1952, and a regu¬
lar quarterly dividend of 3V/j
cents
per share,
payable
September 10, 1952, to hold¬
ers of Common Capital Stock
of record August 25, 1952.
Secretary
Cleveland, Ohio August 13, 1952

COMPANY* LIMITED

August 13, 1952

pay¬

Bank of

4.40%

DONALD S. CARMICHAEL,

BRITISH-AMERICAN ;
TOBACCO

are

Regular Quarterly

October 31,

tax)

credit
COMMON

pay' on

mailed by
Company.

Cumu¬

Cumulative Preferred Stock

half-yeaiTy^dividend of 3%' (less

Series

of such
close
of

to

be

Dated, August 15, 1952
Dividend Number 3

transferees.

to

will

ALLYN

pay¬

1952

and

eighty-seven

Cumulative

decided

Also

DIVIDEND

dividends

of

ment

the

the Manhattan

on

able September 30, 1952, to
stockholders of record Septem¬

The transfer books will not be closed.
Checks

before

or

on

share

Preferr^ Stock, 4.32%

The above dividends

business

of

1952.

stock has been declared

trans¬

August 29, 1952 will be in time for

close

per

Orig¬

Series.

twenty-five cents (25#)
outstanding common
payable Octo¬
ber 1, 1952, to holders of record at the
close of business September 19, 1952.
share

a

dividend
on
the
Ordinary Stock and
Coupon No. 98 must be used for dividend
on

the

at

cents

lative

A dividend of

for

used

record

September 19,

P. COPELAND, Secretary

Also decided to pay on the same day
half-yearly dividend of 2l/2% (less tax)
on issued 5% Preference Stock.

Coupon

27

September 30, 1952,
payable October 1, 1952, to holders
of

du

50 cents per share on
inal Preferred Stock;

quarter ending

1952.

of Directors has

of the
following quarterly dividends:

DIVIDEND

51/2% cumulative convertible pre¬
ferred stock has been declared for the

1952, payable

stockholders

to

The Board

authorized the payment

DIVIDEND

The regular dividend of one dollar
thirty-seven and one-half cents
($1,375) a share on the outstanding

1952 to stockholders of record at the close
of

STOCK

DIVIDEND NO. 22

Reynolds Metals Building
Richmond 19, Virginia

the Preferred Stock—$4.50 Series

on

STOCK

4.32% SERIES

COMPANY

The Board of Directors has declared this day

share

)

NO. 173

REYNOLDS
CUMULATIVE PREFERRED

regular quarterly dividends

COMPANY, LIMITED
f?

PREFERRED

DIVIDEND

1952

•

Wilmington, Delaware, August 18, 1952

" ''

TOBACCO

business

August 15, 1952

•

REYnOLD/

payable Sep¬

September 15, 1952.

Company

ORIGINAL

1802

Secretary.

☆

BRITISH-AMERICAN

California

DIVIDENDS

ANNIVERSARY

to stock¬

1952.

19,

Edison

August 15,1952.

EJ. DU PONT DE NEMOURS & COMPANY

30, 1952 to stockholders

record

Southern

1952.

share

per

will

Secretary & Treasurer

150th

(25c)

thirty-

on the capital
of the Corpora¬

15,

August

of

a

Quarterly Dividend of
$.50

books

closed.

H. STEFFLER

WALTER

STOCK

PREFERRED

transfer

not be

DIVIDEND

DIAMOND ALKALI COMPANY

200th
Consecutive Dividend
A dividend of sixty-five cents
(65^) per share on the
Capital Stock of the Company has been declared this
day, payable on September 10, 1952, to stockholders of
record at the close of business

on

August 15, 1952. The

stock transfer books will remain
open.
August 8, 1952

Robert Fisher, Treasurer

u

The Commercial and Financial Chronicle

32

...

(680)

Continued from page

both

BUSINESS BUZZ

7

Thursday, August 21, 1952

Presidential

in

candidates

the U. S. toward foreign arms and
other aid, and the U. S. defense
effort.

Washington and Yon

One

nopoly, however, it would be sen¬
tenced to death as such in the

that

«settlement

(eets dear to the Federal planners,

United Stares.

chase

Jim&ay

extra enterprises such as reor developmental proj-

another, because
«#£ the intervention of Congress or
iShafc

one

?some

way

he would come out
proposed.

agency,

with nothing like he

Canada,

hand,

other

the

on

natural

Heaves

the

to

resources

provinces, and several of the prov¬
inces, particularly
Quebec, are
definitely friendly to private en¬
terprise, whatever shortcomings
provincial administration may
waay not have.
ALCAN got a
Hong-term lease from Quebec. It
istxmnd only to make power free¬
this
♦ar

ly available to any Other industry
that might be tempted to go into
this otherwise northland
waste,
^and to make the power

to the newcomer

at

available

reasonable

a

price. Thus, the power generated
mainly to produce aluminum is
.shared with several paper mills
in the district.

However, most of
their power rights are owned out¬
right, under an earlier policy per¬
mitting this.
Another meaning ALCAN has
for the U. S. is that,

if the
imagination of man, the skill of
engineers, and the daring of capi¬

talists

had

created

such

in the United States,
he

allowed

to

last.

even

would

be

Miled off by government because

it is admittedly a monopoly. Per¬

it is in population, it might have

to he

a

monopoly.

Being

a

up

"monopoly" in the United
Canada is that in the
is

It

not

at any

by the process of evolution
case

ALCOA

have

lost

least

at

U.

S.

cause

a

as

interest.

majority

is

new

no

story

by the De¬

partment of Justice.
*

iv

This

and

Sague-

are

and

away

in

the

took to task

Aug.

15

great news¬

some

Canadians

were

British

new

United

"Star," "is

a

that ALCAN
same

the

mo¬

States,"

the

said

creditor nation with

a

the almost permanent capacity to

back

darling, and maybe you'll come

"Work hard,

give foreign aid from the surplus

Rand!"

Chairman of Remington

seems

time to be

at

one

aware

pessimistic

of

and the
some

contingencies

of

in

the

sold

but

future

near

in its international accounts."

purchased from others) and there¬
by firm the aluminum production
capacity of the Saguenay district
of now about 435,000 tons and in
a
few months to rise, to 495,000

the

on

long pull.

conclusion is that
are willing to
take a long-term risk of a charac¬
ter which is rapidly becoming a
vanishing phenomenon in this age
of
accelerated
amortization, the
Another major

the

ALCAN

excess

ment

of

boys

With only an initial 83,000
of

and

in

absent

relatively

odd

Canada

and

The

immediate

and

borhood of $500

future

plans rigged so that it is not bet¬
ting its future upon the possibility
of a long-term purchase agree¬

Corporation

earn

millionthe vast

have to

estimated

final

West Coast project

Finally, ALCAN seems to have
its

works it will

tons

Kitimat,

struct to bring Kitimat into

notably prevalent in the U. S.
both

$200

the

on

it will lay out on

sum

initial

at

first will hardly

at

pay-off

a

horizon

business

overall

output

aluminum

ALCAN

long-term govern¬
market guarantees—features

the

(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.)

tons.

profits tax, government fi¬

nancing,

Crusader

Montreal

editorial

"The

excursion into the

talk with ALCAN offi¬
cials also suggests some appraisal
of where ALCAN is going.
nay

out,

way

They

quick.
*

*

their

that
or

stating that because of
sterling crisis is
looming,
Canada
ought
to
do.
something for Britain and do it
a

decision, taken after a long legal

ALCOA

in

an

paper

who

from ALCOA was a Federal Court

upon

out,

programs.

Montreal "Star" that

immediate
of the separation of ALCAN

attack

and

more

will be made

and

not

are

that

uses

aluminum,
defense

In

to

the

investors,

of the

with its
spirit of self-reliant capitalism*
one
learns that many Canadians
certainly believe that every U. S.
taxpayer should do his duty in the
never-ending world crisis.

of

eagerly and inexorably buy it out,
or

convinced

Back

industry is that once the industry
or branch is established Canadians

However,

less

no

from the ALCAN empire

Canadian

of

development

S.

or

making all the aluminum
they can and are selling it.

in any

history

more

the stability

now

of ALCAN, for

variable

commitment to

a

no

industrial

necks
on

eventually

might

control

almost

the

U.

of

reasonable possibility that

a

years

given time.

num,
more

its power

It is

of

ALCAN is bullish about alumi¬

competition or if it
to gouge consumers*

of

methods
uses

term

British Government and economy

such is not a

a

big economic power in a way
crush
competitors by unfair

to

(but not

purchase) is
prop than

monopoly is only bad if it uses

a

its

long

a

to 250,000 tons annually of the

a

prime target
for Federal hostility.
In Canada
crime.

of their main encourage¬

for

metal

States and

Dominion bigness as

also

One of the first observations is

haps because Canada is as small
as

Canada,
difference be¬

residual

the

tween

thing

a

it wouldn't

It

for

one

that
recognize

impression

officials

ments, the British option to pur¬

This is not the case in

or

the

gets

ALCAN

cost

con¬

being.
this

of

is in the neigh¬

millions.

However, Kitimat is in the eyes
officials

of ALCAN

probably the

only large, totally desirable, eco¬
nomically natural potential big

ment from the U. S. Government.

Distributing Goods in U. S. A.—
No. 5 of the Dollar Ex¬

Booklet

ports Council of the United King¬
site left in Canada.
If ALCAN
first: Initially
dom
British Trade Promotion.
in only about were timorous, it might lose it Centre, 677 Fifth Avenue, New
83,000 metric tons of aluminum and a glorious future.
York 22, N. Y.—paper—$2.00
As to its present operations in
production at the Kitimat installa¬
Fast Figuring for
Executives,.
tion, in 1954. If the U. S. Govern¬ being of nearly 500,000 tons, most¬
ment entered
into
a
long-term ly in the Saguenay area, one gets Present and Future
Harry M.
purchase contract with ALCAN, the impression that ALCAN offi¬ Buten—M. Buten
Sons, 1834 South
its principal influence upon the cials are aware of the basic fac¬
Street, Philadelphia 46, Pa.—paper
future of ALCAN would be to
tor
in
the
Canadian
boom
not
As

the latter,

to

—

ALCAN will bring

Sierra Petroleum, Inc.
United Oil

Corporation
T-'

Oklahoma Oil

Company

—

faster

Kulz Canon Oil & Gas Co.

appreciated by many investors in

than

prudent

toward

tential of

otherwise

would

its

500,000

of aluminum

ultimate

be

Refining Co.

area

is

is

that

one

possibilities
the Saguenay

about exhausted. ALCAN

bringing in,

and

one

late this

year

next year, two new power

generation

installations

on

Company, 950 University Avenue,.

accidental

same

the

materials,

raw

espe¬

cially for the up-again-and-downagain U. S. defense production
program.

Request

over a

possibility of

deflation

however,

in

the

State

Expenditures!

An Analysis

Rockefeller

use

will

be

own

to

supply
power

these
firm

of

in¬
AL¬

power

is at present

in

mares

sidering

the

is

Foundation, 30»

Plaza, New York 20,.

future, con¬
commitments
of

For

near

the

Large Appreciation Potential
WE

SUGGEST

RIVERSIDE CEMENT CO.

Low Priced Issues

CLASS B (common)
FIRM TRADING MARKETS

A

in

FOREIGN

SECURITIES

leading producer
fast-growing

of

BOwIing Green 9-5577




Teletype N. Y. 1 -318 4

cement

Southern

Analysis of this
a

PARI. MARKS 6, CO- INC,

Company and

review of the Cement Indus¬

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on

request.

Available around

NEW YORK 4, N. Y.

STOCK

California.

Stanley Pelz & Co.
52 BROADWAY,

State-

nothing about which any Cana¬
dian industry need have night¬

of

300

INCORPORATED

of

Spending during and after World!

probably N. Y.—paper

States,

The

(some of its

over

1940-1951,

any

United

Peribonka River, of about 250,000

CAN's

Specialists in

52, N. Y. —cloth—$2.00
in

Trends

War II— The Tax

Worry

planned

stallations

on

New York

tremendous demand for

a

Canadian

h.p. each.

Circulars

South American Handbook, Ther
—1952 Edition—Tue H. W. Wilson,

the

ulating

the

of

expansion
are

S., if perhaps

on

of a speeding car killing a cat
crossing the road, is in fact stim¬

long range

daring is
illustrated by Kitimat. The prac¬
for

programmed

the U.

as

ALCAN's

tical fact

Albuquerque Associated Oil Co.

the

that
in

underlying

result

with

Coast.

Tri-State Oil &

is

inflation

the West

on

quantity

orders)

This

countries.

factor

po¬

additional tons

output

—$1.00 (lower prices

both

speed the development of Kitimat

14/^

FOREIGN SECURITIES SPECIALISTS

LERNER & CO.

50 BROAD STREET...NEW YORK 4, N. Y.

Investment

TEL. HANOVER 20050... TELETYPE: NY 1-971.
1

-

.

Se

10 Post Office

Securities

Sqnare, Boston 9, Mass.

'

Telephone

Teletype

HUbbard 2-1990

BS 69