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UNIVERSITY
OF MICHIGAN
AUG 24 1951
ESTABLISHED IS39
BUSINESS ADMINISTRATION
Reg. V. 8. Pat. Office
T
Volume 174
Number 5040
New York, N. Y.,
11.:
Price 40 Cents
Thursday, August 23, 1951
a
Copy
1
?
EDITORIAL
Inflation: Our Real Danger
We See It
As
Dean of the College of Foreign and
'
For
good while past a number of schemes for
changing the terms of the Federal banking law of
the
been
Dean
official
in
discussion
under
In Economic Situation
Domestic
Commerce, Notre Pame University
a
land have
Deflationary Implications
By JAMES E. MCCARTHY*
McCarthy cites
fact that
income is
consumer
By THOMAS D. SEARS
Investment
potent inflationary factors the
as
increasing about $20 billion
and
other forms of
credit^ whil6 keeping bank
Before
•
portfolios open to the Treasury without thereby
pumping more money into the economic system.
Not very much has been heard of all: these
I
the
to
you
Sears, after presenting a statistical summary of such
as production, consumption and monetary move¬
ments, concludes, if surveyed without reference to de¬
fense program, there are deflationary rather than infla¬
tionary implications in recent developments. Sees no
likelihood of shortages in any field arising from proposed
level of defense expenditure, and concludes potential
inflationary pressures have been over-estimated.
factors
today, I would
few disclaimers, just as a matter of com¬
a
honesty.
mon
anything at all to
say
1 like to make
I
assure
that I have
you
no
spate of problems that are
plaguing
as a nation; therefore, I
am
both
unwilling and - unable: to
speak dogmatically, either politically;or
economically. I can only specu¬
late. Parenthetically, may I say that
pat answers
us
indi¬
as
viduals and
things during the past month or two. For one
thing, the Treasury has to date been finding itself ?
in a much more comfortable position than had
been expected, thanks to sloth in getting the ar-;
mament program going and to greater tax col¬ /1 used to look with considerable awe
at the solemn seers who are always
lections than had been anticipated.. For another,
the
trhncKbf
economic
events
in recent
v
months,
nostications
:
"The
of
the
The conclusions drawn
price
real
But
despite all this, there
there may
be
a
indications that
are
welfare of
•
revival of interest in the weeks
ahead in the matter of
a
We
common.
our
firm faith
country,
in the
and for the future.
now
soundness
of
banking law and in gen¬
Continued
and policies and their relationContinued
on
NEW
*An
19
page
address
OFFICERS
NSTA
—
has
sales
since
June
last
has
been
the
Slate
aggregate
more
than
stockpiles and
princi¬
future
22
26,
of anticipatory
wave
London, E. C.
•
/"'V
'
•
and
Kenya,
R. H. Johnson & Co.
across
and Aden
Zanzibar
The
Bank
£4,000,000
Capital
Paid-up
Reserve
Capital
banking
SECURITIES
■'
64 Wail
£2,500,000
every
and exchange
Street, New York 5
BOSTON
description of
business
Troy
THE NATIONAL CITY BANK
PHILADELPHIA
Buffalo
Albany
'
' V
'
'
t
=y; •
Bonds
l
Canada
The Canadian Bank
THE CHASE
of Commerce
Scranton
Wilkes-Barre
Head
Williamsport
Washington, D. C.
Bond
Allentown
Dept. Teletype: NY 1-708
Neto York
Seattle
Massachusetts
Pacific Coast &
Investors
Hawaiian Securities
f
fr
•
r
.
•' </,..•
••
(
New York
14 Wall
/
*
,
.
;
,
and
-
Development Co.
THE
OF
CITY OF NEW YORK
Agency: 20 Exchange PI.
Portland, Ore. San Francisco Los Angeles
BONDS & STOCKS
Northern
New
England
Company
(Western), Ltd.
^
*
'
-
&
■
,
Co.
PrincipdVCommodity
.
CANADIAN
DEPARTMENT
Goodbody
ESTABLISHED 1891
Co.
"
^
•
Boston
Los Angeles
•
Honolulu
•
Domdiiox Securities
(ORPORATKWi
MEMBERS NEW YORK STOCK EXCH,
40 Exchange Place,
Security Exchanges
San Francisco
}
l'
V; /•
Street, New York, N. Y.
Members of
-
Chicago
Angeles.;'
'
Dean Witter
VANCE, SANDERS & CO.
.
NATIONAL BANK
Analysis upon request
Prospectus from authorized dealers or
BOSTON,.
,
CANADIAN
Steep Rock Iron Mines
Great Plains
Office: Toronto
Direct Private Wirea
*
Devonshire Street
>
Dome Exploration
Second Fund
Lo»
Vj
;
Bond Department
OF NEW YORK
Harrisburg
Providence
also undertaken
,
g.\.:
upon request
.
Trusteeships and Executorships
111
V:
£2,000,000
Fund
conducts
-
Monthly Commercial Letter
.
..
INVESTMENT
Subscribed
18
Municipal
'
600 Branches
Burma, Ceylon. Kenya
Colony, Kericho,
page
State and
V
I
on
prospective new officers of the National Security
page 8.
The Association will hold its Annual Con¬
Established 1927
Branches in India,
demand, savings
Continued
:
Bishopsgate,
Sears
have been reduced and borrowing has rocketed, thereby
:■
Office:
D.
where it will be available for
reserves
.-Bankers to the Government in V;
Head
Thomas
consumption.
of INDIA. LIMITED
Kenya Colony and Uganda
have
we
McCarthy at the annual convention of the
of Soft Water Service Operations, Chicago, III.
of
the
consumed, and the surplus has found
its way into
business warehouses,
Coronado Beach, Calif., from Sept. 30 to Oct. 4.
vention at
and
product not of scarcity but of fears
of scarcity.
We have produced in
the
page
self-induced
been
by Dean
National Association
Traders Association, Inc., appears on
NATIONAL BANK
a
"To finance this
on
commodities,
common
prices and in industrial activity and
We have
democratic
of
and
the
still
inflation
ples of government and in its economic system of free
eral, to questions that have to do with Federal
Reserve powers
its
movements
that
that the potential inflation may have
been
over-estimated.
The
rise
in
.
deeply concerned about
are
stated
were
say
may
stocks
past seven months, and
potent force, there is sta¬
tistical ground for believing that the
,
:
in
"One
property
during
are
,
have
its
in
al¬
though inflationary fears and specu¬
lations have been dominant in the
quite unexpectedly Turned the official: mind - to come. But I'ceased* being awe- *
struck after I had kept a boxscore
from worrying about inflation to wondering if
for awhile and found that 'they are
by the time, the political campaigns get : under 1 more often
interesting than accurate.
way next year there may not possibly be cause
I have no crystal ball. I am neither
for worry about what is popularly known as de-; prophet nor pundit, but only a man
who is, trying as best he can to
flation. Meanwhile the Treasury and the Reserve
figure things out and to use a little.,
appear on the surface, at least, to be moving har¬
common
sense
in the process.; It is
james e. McCarthy
on
moniously along in sharp contrast to the situation
this basis that I ask you to acwhich prevailed for some, months prior to the
cept me. My observations and conclusions, I suspect, are
switch of Mr. Martin from the Treasury to the
very much like your own because of the background we
://
follows:
as
•
has
Eoard.
Chronicle,"
Financial
and
22, 1951 issue, published my somewhat detailed
study of inflation forces which attempted to appraise
their source, intensity and staying power. ,
of. things'
shape
Commercial
March
positive in their syndicated prog -.
so
Calif.
Referring to his previous analysis of inflationary and
deflationary forces in current economic situation, Mr.
political circles. These proposed changes have
a year and constant rise in wages without
compensating
designed to give the Federal Reserve au¬ .gain in productivity. Says price support program has
thorities greater powers over member banks andsapped foundation >'ofs our > agricultural economy, and
other elements in the business community, and
attacks needless?;government spending and low moral
to establish by law some system under which it
standards in political life. Warns economic security can¬
would be possible for the Reserve authorities to
not be attained by playing off one class against another.
been
limit
Santa Barbara,
Counsel,
Chicago
115 BROADWAY.NEW YORK
New York S, N. Y.
105 W. ADAMS ST.
CHICAGO *
l'
IRA HAUPT & CO.
Members
111 Broadway,
WHitehall 4-8161
Boston
N. Y. 6
Teletype NY 1-2708
Telephone: Enterprise 1820
WOrth 4-6000
Teletype NY 1-702-3
Exchange
Exchanges
New York Stock
and other Principal
The Commercial and Financial Chronicle
.
.
Thursday, August 23, 1951
.
(686)
2
The
trad'.hg markets in
United Utilities
week, a different group of experts
in the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
Interstate Power
Q/z/SZ"
available
report
Progress
they to he regarded,
are
had
Members, New York Stock Exchange
Established 1920
The security I like best
Teletype NY 1-583
BArclay 7-5660
Gold Mines, Ltd.
Yellowknife
Giant
York 5
Yellowknife
is Giant
Mines Limited.
Gold
industry
an
for
that
a
of
number
has been
retrogressive,
due to rising
years
Rights 8 Scrip
and
costs
Since 1917
this
Giant Yellow¬
York Stock Exchange
York
New
playing
Exchange '
Curb
Tel.
REctor
2-7815
earnings
mum
increased prof¬
succeeding year.
It
has shown sharply
Trading Markets
•
its
Co.
American Furniture
each
in
liquidated in full, bank loans
$1 million.
Costs are
has
of
and
reduced
being
an
operating profit of approximately
Moore Handley
Hardware Co.
$16
is
good
as
that of many suc¬
operations, but
as
Giant's profits are
Lynchburg, Va.
Located
CD 33
Tele. LY 83
|
comparison, it is equal in size to
the combined area of the seven
producing mines in the
Kirkland Lake Region.
The com¬
famous
reported proven ore reserves
3%
million
tons,
or
pany
Graham Paige
of
over
roughly
4% Debentures
20-year supply at the
a
current
"
Incorporated
;
"
'
/* "
*
:
50 Broad St., New York 4
small
portion of the property has
been explored and developed.
A
more
up-to-date estimate of re¬
Teletype NY 1-3018
serves
in Sep¬
available
be
will
tember, but it is known that they
have been expanded considerably.
It is significant that on numerous
occasions
of
be
AUDIO DEVICES
estimated
of
gold
Participation
was
per
.91
been
found
the
basis
1951,
ounces
per
and
ounces
of
the
BE
SENT
the millhead.
at
RECORDING
YOU
of the
ON
?
REQUEST
remarkable
history
of this company, its favorable
ance
sheet and
earnings
the
pre¬
ore
at
ounces
during
the average was
of
ore
sub¬
a
showing
ton is reaching
Especially good re¬
recently been obtained
750-foot
of the C
shaft.
level
in
the
area
bal¬
statement
to 1.04 ounces of gold per
ton across 17 % feet.
Production at Giant Yellowknife
began officially
the
first
on June 1,
four months
fore writeoffs.
PETER MORGAN & CO.
Street, N. Y. 5
Tel.: Dig by 9-3430
Tele.: NY 1-2078
working
its
up
Dividend action will
probably be postponed for an¬
other year as liquid reserves are
expansion
for
husbanded
requirements.
*
•
'1'\„
-
-
Grant's sole capitalization con¬
sists
four
of
of
shares
'million
authorized
stock
common
said to be
are
reasonably low.
traded
and
on
Shares
the New York Curb
Exchange where they are selling
9.
near
is
blessed
with both
high-grade ore and ton¬
unusual measure.
Very
in
nage
substantial
growth in
and earnings
duction
was
1948.
a
net
reported be¬
At the end of the
first full year of
ing
close
both
pro¬
seems
as¬
May
writeoffs
operations, end¬
1949, the net before
was
$1,006,226.
The
1,
corresponding figure for 1950
$1,536,259.
For
ending Feb. 28,
the
six
that which
to
exists
in
the
free gold market, the effect would
be favorable in the extreme to
Giant's
feel
fundamental
that
destined
the
Giant
to
take
largest and
position.
I
Yellowknife" is
its
place among
richest gold pro¬
manufac¬
Canadian
largest
bodies.
of truck
Total
large
are
O'DONOHOE
traded
shares
1950
Cockshutt Plow
complete
a
of
sales
the largest v and
implement market in
world, where Cockshutt suc¬
was
months
1951, net profits
and
A
i
& Film "A"
Cedar Point C. B. I.
Foote Mineral Co.
Gersten & Fkenkel
N.
Members
Security Dealers Assn.
Y.
New York 7
150 Broadway
Tel.
Tel. NY 1-1932
DIgby 9-1550
This volume, while not
large by U. S. standards, is very
large by Canadian standards and
such
common
WASHINGTON
of
improvement
an•
on
which
sales
$9
exceeded
never
c
Montreal
k
changes, is
favorite
and
Toronto
Ex¬
•
Harbor Plywood Corp.
•
Puget Sound
•
Wheeler-Osgood
million.
has
transformation
This
been
brought about by, first, manufac¬
ture
of
self-propelled combines,
tractors and other heavy equip¬
never before
second, successful
entry into the U. S. market.
Capitalization of the company
is small and simple, consisting only
of
$4.6
million first mortgage
the
ment
company
BOUGHT
SOLD
•
^
Pwr. & Lt.
QUOTED
•
produced, and,
last
three
FOSTER & MARSHALL
Member
New York Stock Exchange
seattle
,
4
Portland, Spokane, Eugene
Mu.
Tele.
1900
SE 482-483
putting the
underpinning
years
of
kind
strongest
shares of com¬
spent
Cockshutt has
stock.
into its financial structure by ap¬
large
now
and
reserves
I
dividends.
think
should
reserves
has
disappeared and I hope
the
need for further
his
the
SECURITIES
at
least 400% over maximum prewar
the
(rather inactive)
OREGON
base. It rep¬
small capital
a
resents
small
stock of The Cock¬
imposed
when
particularly
shareholder is about to come into
own!
The
U.
S.
SAVINGS
;
„
following
BUY
reserves
BONDS
(all tax-
paid) have been established:
my
Millions
secu¬
$2.5
2.25
Contingent
rity.
Inventory
It has three
Doubtful
sterling quali¬
Total $5.5
ties—finan¬
Per Share
$5.85
5.27
1.75
.75
debts
million,
or
$12.87
per
share.
Over-the-Counter
strength
Published
—good growth
earnings
after taxes
and the above reserves have been:
possibilities
and low
actually
A
present
price of $32.00
(Can.).
•The
pany
long
$4.82
similarity!
(a) about $1 mil¬
years' taxes paid in
1949 and charged to 1949 profits,
thus considerably
distorting the
experience
earnings picture; (b) transfer to
J. O'Donohoe
years'
in the farm implement
absolutely
remarkable
Adjusted for
A.
com¬
has
(11 mos.)
' $4.84
$4.75
only
4 times at
or
1949
1950
lion'
to
the
National Quotation Bureau
prior
industry—
fundamental
Quotation Services
for 38 Years
1948
priceearnings ratio,
the
259
rest scattered throughout
the
the world.
shutt Plow Co., Ltd., listed on the
3
BS
States,
richest farm
the
Teletype
the
in
made
are
Aniline
General
of farm
equipment run
about $50 million (the company
does
not publish sales
figures),
which
would
place
volume at
about half that of Oliver Corp.
40%
:
Telephone WOrth 4-5000
Cone Mills Common ;
range
United
St., Boston 9, Mass.
7-0425
Y.
N.
during
New York Curb
cial
CA.
Tel.
overhang¬
Canada
in
241,000. '
Annual
sales
of
propriating
Company, Limited
(Common Stock)
o
request
on
is
one
so
State
148
em¬
was
the
President, Lampard, Francis &,
Company, Limited, Toronto, Canada
S t
Information
Total volume of
ing the market.
mon
JERVIS
A.
and
THERMO KING RY.
with the recurrent bug¬
bonds and 427,240
ducers on this continent.
The
U. S. THERMO CONTROL
.
Yellowknife
Giant
up
profit of $93,400
Nassau
building
fully
J'
Body Ltd.,
bear of blocks of stock
is success¬
branch offices
subsidiary,
a
and
Coach
not faced
indi¬
reports
that the company
cate
Here
drilling has
thus far indicated more than 1,600
For
31
financial
Interim
average
ton;
currently
amount
sults have
ing
copy
10.20
11.12
by
owned
Brantford
shareholdings
at first
feet of important new ore, rang¬
a
29.19
31.56
Porcupine
Teck-Hughes
to
over one ounce per
manufacturing products in great demand
TO
Mclntvre
ton; during the year
May,
.82
stantial
AND AUDIODISCS
on
June of this year
Well-Managed
GROWTH COMPANY
TAPE
has
higher grade than
ending
MAGNETIC
ore
liminary drilling. In 1949,
the millhead averaged .63
INC.
k the Earnings of a
8.59
15.43
_
very
So far, only a
much lower levels.
Telephone BOwling Green 9-5920
affords the Investor a
23.03
Dome
our
Ontario, and one at
Falls, Ontario — and a
ployees number 3,300 and stock¬
holders about 3,500. None of these
sured even though the price of
satis¬
gold remains fixed at $35 per
factory quality. Furthermore,
ounce.
Should the official price
diamond drilling indicates that
of gold be raised to a level, fairly
the ore persists in good quality at
accessible and of
ily
JAMES JL LEFF & CO.
operation.
These
at shallow depth, eas¬
rate of
reserves are
'
27.22
Lake Shore__„_.
Direct wires to
factories—one at
two
owns
Smiths
the
Of this amount ap¬
shores of the outstanding.
in Northwest proximately 54% or about 2,250,-
a
■
8.75
Birmingham, Ala.
Mobile, Ala.
Cock¬
has.
indeed,
and,
Giant Yellowknife
Territories,
Interest Certificates
.
Lake
30.28
NY 1-1557
HAnover 2-0700
It is the smallest
cessfully
competes
with
such
000 are owned, and are being held
is
giants as International Harvester,
by Frobisher and by Yellowknife
aptly named. The huge property
Deere and Case. Probably another
Bear
Mines Limited.
Thus the
covers an area of 1,600 acres and
40% of output is sold in Canada
is over three miles in length.
As floating supply of stock can be
ttllllllllVIIIIIIIIIIIlllllllllillllllllllll
Central RR of NJ
the
on
Slave
Great
$28.51
Hollinger
based on the being
stability of gold, which is
never likely to sell below its cur¬
rent price of $35 per ounce and
may well sell for much moreknown
•
$19.58
Exchange
York 4, N. Y.
Brantford,
turer
This capital.
ton is being shown.
per
cessful base metal
Scott, Horner &
Mason, Inc.
Giant Yellowknife
over
actually
Dan River Mills
Milled
shutt
York Curb
New
25 Broad St., New
has plenty of room to
reason
expand
York Stock Exchange
Members
companies and for
the "large"
third,
of Ore
Oz.
per
of
Members New
New Orleans, La. -
est in the world.
that
Steiner,Rouse&Co,
City.
York
New
Co.,
(page 25)
per Ton
,
Costs
r
;
It
&
Bros.
Recovery
ating
I
production—1948.
first year of
Toronto,
Ltd.,
Co.,
(page 2)
Oil Company—John P.
Satterfield, Partner, Hoppin
expand
to
Henry P. Newell
ca¬
&
A.
—
capacity is limited. By February,
1952, Giant's mill will have been
world's
economy—and
a
small,
enlarged to 750
tons daily, or
compact capitalization.
nearly
twice
current capacity.
The
Cockshutt Plow Co.,
112
Output will thus be increased ac¬
years
old, is the second largest
cordingly and a further reduction
Canadian-owned farm equipment
in the already low costs will have
manufacturer and the eighth larg¬
been
effected.
Ultimately it is
Oper-
pabilities. The
company made a profit in its very
hi
are
Ont.
mine whose present mill
new
stock)
Plymouth
that
being achieved
Average
dynamic
growth
arid
BROADWAY, NEW YORK 5
120
dis-
is
knife
results
these
by a
Bought—Sold—Quoted
Ltd.
Company,
Plow
Francis
-
Giant's mill
capacity to several thousand tons
daily.
From the standpoint of
comparative operating costs and
recovery of gold per ton, the fol¬
lowing table is interesting. These
figures are based on 1950 results.
handicap,
Members
$1,-
remember
to
.
*
reported.
well
is
j
Louisiana Securities
Jervis
O'Donohoe, President, Lampard,
writeoffs.
The
with the
June, 1951, figures the best of any
It
2)
(Page
(common
upward trend continues
planned
Despite
present
gold.
New
a
fixed price for
PONNELL & CO.
City.
&
Cockshutt
approximately
to
month yet
This may seem an unusual selec¬
tion as the company operates in
Specialists in
Bullard
before
200,000
Filor, Bullard & Smyth, N. Y. City
Corporation
risen
P. Newell, - Filor,
Smyth, New York
Ltd.—Henry
"
offer to sell the securities discussed.)
as an
NEWELL
HENRY P.
New York Hanseatic
120 Broadway, New
Alabama &
Mines,
Gold
Yellowknife
Giant
(The articles contained in this forum are not intended to be, nor
v
*
.
Participants and
Their Selections
Forum
A contiaubus forum in which, each
Puget Sound Power & Light
Central Public Utility
Week's
This
Security I Like Best
Continued
on
page
25
Incorporated
Established 1913
46 Front Street
CHICAGO
New
York4,N.Y.
SAN FRANCISCO
Volume 174
Commercial and Financial Chronicle
The
Number 5040 :•V
(667)
3,
INDEX
We Can Meet Enlarged
Demands on Our Resources
liCHTtnsTfin
B. S.
Articles and News
,
page
Deflationary Implications in Economic Situation
—Thomas D.
AND COMPANY
Sears
Cover
By HON. JOHN W. SNYDER*
Secretary of the Treasury
;
.
Inflation Is Our Real Danger—James E. McCarthy.,..
,
PRICE
.Cover
'
j,
•'
■
■
•
uation, and points out need of maintaining
position
nation's
in
for
Calls
financing.
,
3
Cobleigh____L_
Cuss
At the end of the
„
all of
war,
us
May____________.,_
1
'—Arthur W.
Crawford
_____
war
if
not
that
assurance,
entering
of
era
well.
The
in
each
free
to
which
to
to
fairs
99
balanced
the
.
Unfortunately,
that
has
been
pot
our
experience. In
swift
the
whirl of
John W.
Snyder
great
our
adjustment
at-
our
.not
problems of re¬
here
in
world-wide
of
import.
ourselves, of
their
efforts
tablish themselves
in
.the
commonwealth
people.-
'
to
of
'i
.
rees¬
members of
as
peaceful
'
disturbing fact to
a
us.
jWe are faced with strong, undebatable
evidence that there
r-ideology,
'intends
opposed
to
earned
to
freedom
is
hard-
our
unless
an
that
ours,
destroy
The
situation
Korean
struggle in which
of freedom
was
-
an
The
engaged
free
enter¬
forget
expansion
World
of
against
We
so
us
arm
military
our
of
determination
and
a
eco¬
an
nomic standpoint, that we can ai¬
maintain
rways
whether
it
be
a
at
strong position,
arms
or
in
structive negotiations. That
War
In
spite
of
these
con¬
is the
'
harassments,
entitled, nevertheless, to
look ahead with confidence. Day
are
accumulating more
the sinews of military and eco-
by, day
of
we are
address
by Secretary Snvder at a
of the St. Louis Municipal
Group, St. Lcuis, Mo., Aug. 20,
■
•
•
v.;1
dinner meeting
Pealers
1951.
We
industrial
plant
the
in
first, postwar
(Editorial)
Cover
and
Employment
with ' civilian
employment
month
62 %, million, and
topping
personal
/income
The
of
measure
last
Bookshelf
32
."
Securities
16
_;
Funds
Mutual
pro¬
NSTA
have
14
1
»
Wilfred
May__
;
since that time. But how many of
two
Public
Securities
Utility
21
—
of
the-
the
that
ment
at
Bond
for spending
today will buy 40% more goods
services
capita
per
the
than
he
until
for
26
—
his
statistical
own
a
me
a
few days
number of people
MACKIE, Inc.
Security I Like Best
2
i.
5
The State of Trade and Industry
(Walter Whyte Says)—
Tomorrow's Markets
in;
Y. 5
40 Exchange P!., N.
Teletype NY 1-1825 & NY 1-1826
22
iJ
32
Washington and You
average
convinced-
wasn't
who
had
industrialist wrote
that
The
Air Products
in 1939, after
local, state, and
staff verify it. A New York State,
ago
______
income
adjustment
luncheon
&
20
Corner____.
Salesman's
a
I made the state¬
average
income,
"CHRONICLE" WILL BE THERE!
THE
Baker-Raulang
Throughout the Annual Convention of the Na¬
tional
Security Traders Association, which will be
the "Chronicle"
one
photographer will be
much
very
in the "Chronicle's"
of the many features
Special Convention Issue.
.Dictograph
will
And the results of his endeavors
in evidence.
be
Collins Radio
30 to Oct. 4 at Ccronado Beach, Calif.,
held Sept.
:
Di-Noc
-
40% figure, but that when his staff
Continued
on
page
Vv,>
of :V.
211
Hoving Corp.
Published
:
Twice
Reg. U.
1
Weekly
Drapers'
land,
and
COMMERCIAL
CHRONICLE
■FINANCIAL
c/o
Gardens, London,
Edwards & Smith.
Copyright 1951
WILLIAM B.
DANA COMPANY, Publishers
York Stock Exchange
4
50 Congress Street, Boston 8
'
2-8200
1-5
Teletype—NY
Glens Falls
Hubbard
-
*
•••
Schenectady
C.,
Eng¬
25,
Y.,
SEIBERT, Editor & Publisher
-
Worcester
WILLIAM
D.
RIGGS,
Business
Thursday, August 23,
Every
vertising
Thursday
issue)
(general
and
every
>
Manager
1951
Pan-American
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Other Offices:
135 South La Salle St.,
"Chicago 3, 111. (Telephone: STate 2-0613);
of
Dominion
Union,
Canada,
Countries,
Other
news and ad¬
Monday (com¬
Bank
and
$45.00
■
year;
per
S.
of
in
New
York
—
Sold
—
Quoted
THEODORE YOUNG
& CO.
Record—Monthly,
(Foreign postage extra.)
Note—On account of the fluctuations in
the rate of exchange, remittances for for¬
eign subscriptions and advertisements must
marie
Bought
in
year.
year.
Publications
Quotation
|
<
per
$48.00
$52.00 per
$30.00 per year.
he
Works
■
Subscriptions in United States,
U.
Possessions,
Territories and Members
Other
j
Whitin Machine
at the post office at New
under the Act of March 8,
1879.
>
!-
second-elass matter Febru¬
as
1942,
N.
Stromberg-Carlson;
by William B. Dana
Subscription Rates
Members New York Curb Exchange
i
ary
York,
*25 Park Place, New York ?, N. Y.
to 9576
E.
Company
Patent Office
S.
REctor 2-S570
Spencer Trask & Co.
Singer, Bean
12
_____
HA-2-0270
available per person
and
Securities
1-
Securities Now in Registration
ago
meeting
Railroad Securities
WIliilAM DANA SEIBERT, President
Chicago
29
—
faster?
even
months
Club in Chicago,
Milling
17
Offerings.:
Security
^Prospective
have
About
Alfalfa
Dehydrating &
31
Our Reporter on Governments
HERBERT D.
25 Broad Street, New York
National
5
Our Reporter's Report
PREFERRED STOCKS
-
Official Films
8
-Reentered
Albany
Doeskin Products
20
_
Notes
Observations—A.
Corp.
We all realize ;'
increased greatly
High Grade Public Utility and Industrial
2-4300
AssociatedDev. Res.
our
.
HAnover
7
24
News About Banks and Bankers
which we have made in the
postwar period stands out in even
sharper light when we compare
interested in offerings
New
8
15
Indications of Business Activity
billion;, -V!:
economic
17^
___.
From Washington Ahead of the News—Carlisle Bargeron____
exceeding
now
annual rate of $250
Man's
Einzig—"The Russian Peace Offensive"
records—
new
Teletype NY 1-3370
Direct Wires
Dealer-Broker Investment Recommendations_____:_
income ' have
successive
reached
us
Broadway, New York 6
9
Coming Events in the Investment Field
year.;
The
Members
Incorporated
•
Philadelphia and Los Angeles
•
are
J.F.Reilly&Co.
23
__
now
output of a third greater
an
•
We
•
BO 9-5133
ment;" Our
an
Reeves Soundcraft
61
See It
Canadian
Rochester had wondered about the
*An
in Home Financing
Bank and Insurance Stocks
plant and equip¬
prised a great many people, in-eluding one of the bankers at the
understand.
As
has
Federal taxes. That statement sur-«
we
19
Predicts Decline
since
II
forced to deal with in the present
can
16
Uneven Performance (Boxed)
Regular Features
-only language the people we are
emergency
Holds Politics Now Control Mortgage Field
An
new
especially
ourselves, both from
standpoint
15
billion into
allow nothing to •luncheon
we
from
Beware of Inflation, Warns F. A. Pearson
Business
and have moved ahead
ideas
be
must
cautious that
to
instance
democratic
ideals.
deter
this
15
been
that taxes
allow ourselves
never
that
>___
unparalleled. Private
industry has put more than $110
has
National Alfalfa
Stabilization,
v
recognized that incomes.—
C armed aggression is : only one after all taxes and after -taking
.move
in the Communist drive account of changes in prices —
to
13
Says Harry A. Bullis
production
-
a
principle sharply since 1939.
everywhere.
We must
;
Deposits of Savings Banks at New High
Higgins, Inc.
me
present standard of
living
Tn Korea is not the defense of the .with that of the prewar years.
We
freedom of one small nation; it is all :realize that prices have risen
the defense of the basic
12
gress
us.
are
we
-'V,
close
truly
take
we
-positive steps to prevent it.
unhappy shock to all of
pri¬
our
period is a
unprecedented
of
economic
Our
the
Flying Tiger
12
Investment
Our Economic Expansion
•
than
,*' Further, these past- years have
'presented
..>
have
We
necessary,
trying to encourage and help other
in
the
under
mocracy.
the role of leader of the world in
.nations
Direct Foreign
Indirect Controls Adequate for
prise system, and a demonstration
and force of a de¬
.
4
Never Learn? (Boxed)
Obstacles to
of the vitality
States but also to many problems
found
We
United
the
Expreso Aereo
Taxes
of the postwar
record
chronicle
to
course,
here- that
note
achievement
devote
own
of
-responsibility. And let
have
had
Do
Maintaining and nourishing the
productive capacity of
is,
YORK
rich and
are
tremendous
mary
NEW
WHitehall 4-6551
^
strength of all.
America
11
*
.
Contracts for New Construction at Record High Level12-
which
in
10
Forecasts 1953 Deficit Without More
through mobilization for
events,, we
/vi*.iitention
only to
the
WALL STREET,
Telephone:
9
Forecasting the Market—Joseph Levitan
*
of
countries'
!______
_.
of
get
\ Obsolete Securities Dept.
Inflation Costs More Than Taxes—Harley L. Lutz__.
of
others less well supplied are being
a
X t e r n
a
common
the world is
strength
of .all
part
free
some
peacetime
p
Working Hours—Roger W. Babson
lack
idea
strength
The, resources,
parts.
af-
making
economic
bolstering
try
readjust our
economic
•
threat
peace-
life
fu 1
The
against', the
Communist
is working, and,, working
cause
an
friends— '
are our
nations.
nations
free
of
were
we
So
free
other
the
•
i__"_
_
at
obsoletes—-then
those
5
___
______
Place Credit Restraints on Government Lending Agencies!
'
nomic power.
the
looking forward to the post¬
period with at least the hope,
want
you
on
prices!
our
—A.^ Wilfred
k
were
all
offers
4
Israel's Political Direction—"Is She Going Socialist?"
savings in
more >
building for nation's future.
—Hon. John W. Snyder
For Whom the Bell Toils—Ira U.
balanced budget;
a
SWEAR
We Can Meet Enlarged Demands on Our Resources
Secretary Snyder reviews nation's increase in industrial capacity since end of war, and stresses rise in individuals' standard ^
of living despite rearmament expenditures. Says we can meetthe demands on our resources occasioned by international sit¬
•
funds.
40
Exchange Place, New York 5,
WHitehall 4-2250
N. Y.
Teletype NY 1-3236
The Commercial and Financial Chronicle
4
.
.
Thursday, August 23, 1951
.
(683)
(8) People buy stocks for earn¬
income.
Having four
pieces of paper instead of one rep¬
resents
no
real gain
on
those
ings
For Whom the Bell Toils
By IRA U. COBLEIGII
/;,/
a
It"
Well these
Rumors,
but
nothing
rumors,
in
financial columns, from the lips
of hundreds of customers' brokers,
rumors!
:
the
In
board
rooms,
the
-
two
same
of
types
buzzes.
"Tele-
is
phone
strong today—
high
new
a
looks
like
them
of
From
That
viewpoint
sums
(1)
but
the
Telephone shares by their reliance
on the persistency of this annual
that
they'll
never
split. Earn¬
ings and in¬
our
way
Seventy
per-
cent
of Ex¬
one, it would be more likely
advance, and thus accelerate
conversion "of some'$620 million
for
to
outstanding;
debentures
would
of
be
help
great
This
to the
gossip
gab-fest, and apply a little logic to
the question.
We start off with
a lot of highly impressive known
get out
this
and
Americans,
As
facts.
of
inves¬
tors, we ought to be pretty proud
A T and T.
The largest pri¬
'
enues,
'
In
report, dated Aug. 7, issued '
a
the
for
the Economic Report by
gress on
staff
its
Committee of Con-
Joint
W.
director,Gr'over '
and
Ensley,
publication
(4)
examples of the essential
worthiness of our enterprise sys¬
through
There would be great cost
the company if shares were
(5)
to
a
vital
this
split should help build
goodwill by expanded
ownership.
split, for mailing notices, prepar¬
(6) While it is true that no sub¬
ing and delivering new shares, ad¬
justing the terms of existing con¬ sidiary of A T & T has split its Nor in developing its brilliant
vertible debentures,
plus higher stock in recent years, two com¬
history of service to customers,
affiliated with the Bell
transfer and registrar fees; and a panies
has
it
forgotten
the
investors.
vast
confusion
among
the less System have split—Southern New
With a perfect record of interest
England Telephone four for one
and principal payment on its ob¬ sophisticated investors.
on
May 9, 1949, and Bell Tele¬
(6) The stock now enjoys won¬
ligations it has,- for 31 years, paid
phone of Canada, Oct. 1, 1948,
$9 dividends on its common, plus derful marketability and broad
also four for one.
Thus, if any
almost as many rights as Dempsey distribution, so why split it?
precedent at all can be found for
(7) Most shareholders are in¬
threw, to buy new stock or de¬
not
speculators.
Some telephone share division, it is on
bentures
at
favorable
prices vestors,
a four for one basis.
through the years.
These rights 50% have held their stock for
(7) If such distinguished and
have woven an important element five or more years. Presumably
elegant corporate characters as
of capital gain into the portfolios it Would make little difference to
General Motors, du Pont, Allied
of subscribing stockholders.
So them if the stock became a more
Chemical and Dye, and Atchison
volatile market performer at a
jtoday we view a contented army
have
seen fit to split their shares
of a million stockholders
(25% lower price range.
in the last two years, the idea
must have a whale of a lot of
AT&T STOCKHOLDERS AND SHARES HELD BY
tem.
'
..
merit. It evidently has a
CLASS OF PERSON AND AMOUNT OF HOLDING
June 15,
Men
39,973
7,796,754
12,332,091
4,990,903
5,641,450
1,017,492
30,761,198
249,498
493,621
_
Accounts of
Men
234,400
and Women
Others
Total
Well
of
,
like
1—
6— 10 Shares—
i
j
297,493
5 Shares
j
I
923,029
1,768,500
4,206,562
211,389
the
O'Mahoney,,
Chairman
of
t h
about
that
dicted
Desires
■i
5
of
to
Purchase
for
trust ac¬
about
$82 billion in total cash receipts
from the public. On this basis, the,
count
Sen. J. C. O'Mahoney
a
Federal budget deficit as
much as
receipts,
over
cal
lic would be about $8 billion, and
1953.
year
budget implications of pres-
ture
ent
The peak in mili¬
programs.
peak in obligations. In other
the
cash receipts from the pub-
the Federal administrative budget
deficit would be about $12 billion. , Obviously, therefore, the
budget now being acted upon by
Congress, including both appropriations and taxes, implies a substantial deficit in fiscal 1953 if
present defense programs are carried
tary expenditures will come after
through
East of the
$1,000,000
Clearly, most of these would have
their peak toward
the end of the
Thus, the Defense
Department, at the end of fiscal
1952 will have a carry-over of un-
|0
fiscal year 1952.
$3(0oo to $10,000 income brackets.
expended authorizations for milltary functions m the form of contract
obligations
or
continuing
authorizations of about $58.5 bil-
stantial volume of
billion more than
estimated
expenditures
of
lion,
$18.5
or
the
billion in fiscal
$40.0
though
new
fiscal
for
Even
1952.
obligational authority
1953
fiscal
1952
under
present
is
below
reduced
levels,
expenditures
plans
would
ap-
in
fiscal 1953 to
billion for Defense De¬
partment military functions. This
figure suggests a level of expendi¬
tures somewhat higher than the
minimum figures
recently cited
parently
face the problem of
substantial
There
the
maximum
ions in finance.
of
Yet the big goal
private
other
hand,
Cooperate
it
the
Assistant
fense.
the
In
Secretary
of
W7ith Brokers
INC.
CLASS "A"
PRODUCTIONS
fax
rates
could
load
total tax
:
Teletype
RO
light of this'divergence
$55.5
figures
billion
shared among
Join
The
a
pro-
equitably
be
income groups."
to
The
Financial
LONG BEACH,
Chronicle)
Calif.
—
James
B. Hickey and William H. John-
seem
A
high price
is
no
guarantee
of
quality!
You
have
found
advisory
tragically
Stix & Co.
1k, ' ■■'
'
r'
'
•
•
*
'
''
'* ■1
'
STREET
BUTLER, MOSER & CO.
r
rates
Douglas Hammond
(Special
the
509 OUVt
87
tax
further.
under such
still
would
gj-am
very
GENESEE VALLEY
Telephone LO 3190
law
present
House-passed
increased
be
wrong.
44 Wall St., New York 5,
NY 1-1862
N. Y.
BOwling
that
the
services
highest
can
St. Loui9 UIo.
complete service at
a
But what about its
You
are
the best—and
only—judge of that.
-
regular rate uill surprise you
much
as
this unusual trial
offerr
$t
10 WEEKS
GEORGE LINDSAY
16381^ North Martel
Los
be
My weekly letter
by Air Mail for
*
Green
9-0040
as
a
low fee.
accuracy?
Teletype
Broadway, Rew York, N. Y,
policy,
effective
middle range of incomes, tax
MIDWEST STOCK EXCHANGE
'
Rochester 14, N. Y.
the
the
under
the
of
reasonable and realistic.
Analysis -Upon ~Request
SECURITIES CO.
needed
confirms the belief that in this
The
Powers Bldg.,
get the sub-
revenue
pay-as-we-go
examination
under
to
is
De¬
MEMBERS
Mississippi
JOHN J. TURTELTAUB & SON
1501
a
An
and
the
in
figures for
military function of the Defense
Department recently suggested by
'
Will
which
f0 maintain
bill.
to be no other source
seems
from
revenues
House
the
individuals
from
come
left
additional
thosein
above
rise
about $55.5
On
SENECA OIL COMPANY
on request
a
policy,/ Congress
finding
pay-as-we-go
expenditures will probably reach
the
WALT DISNEY
Information
planned.
is to continue
mUst
V
>
as now
nation
"If the
during
this
period
of
build-up in defense .preparations,
net
new
obligations for defense
words,
Company
With Net Worth Over
payments to the public
of
excess
mean
may
$12 billion may result in the
offers you
Metal Fabricating
with
together
which,
additional
below
ship and State Socialism, than by
maximizing share ownership, us¬
a
/
present tax laws, and
assuming enactment of the House
tax
bill, tax receipts may run
about $75 billion in .fiscal 1953,
bined.
30,761,198
y
Our Clients
$90
.
"Under
subs tantial
revenues,
;
,
_
Congress
provides
payments
practically
to
public
billion.
unless
ahead,
the
to
1953.
in trust ac¬
counts would raise cash
it is pre¬
of
total
a
fiscal
Adding expenditures
Commit¬
e
tee,
priced
One
total,
Thus, in
possibly reach
$87 billion in
may
should not be sullied by any
1,017,492
11,000 Shares and Over
Government.
eral
the Federal administrative budget
13 b y
Joseph C.
siren clamor of the current fash¬
913
26— 99 Shares
208,778
60,481
_______
or
9,820,666
10,098,275
3,944,166
11— 25 Shares
100—999 Shares
famous "lady
enterprise is to sell
the system—not to a mere 15,000,000 stockholders but to 50,000,000
if possible.
How better fight off
the trend toward public owner¬
-
238,538
Total
Shares Held
Stockholders
Amount of Holding
the
veterans, and
of the Fed~
debt,
functions
civil
tiger" routine. "'*/
; by Budget Bureau officials for son are now with Douglas A.
In summdr'y #the honored in¬ Defense Department military Hammond, 5327 Lakewood Boulevestment status of A T & T com¬ functions and military aid com- vard.
mon
,v
there you
have it. Nug¬
gets of pure logic on each side of
the fence, and you wind up won¬
dering which will prevail.
Sort
Shares Held
Stockholders
...
Women
Joint
appeal to many
1951
Person
of
Class
marked
stockholders.
the
on
Sen.
.
expansion by private and institu¬
tional investment is one of the
golden
lot buyer of
odd
For the
quire. y Splitting the stock should
increase this base for future fi¬
penditures in fiscal 1953 for stockpiling,
atomic energy, foreign
military and economic aid, inter¬
Aug.
fisConcerning the
vate enterprise anywhere (almost
from one to 10 shares (and almost
budget
situation,
the
report
states:
$11 billion in assets), it operates
nancing. ///"
////
/•;
50% of the stockholders are in
about 50%
of the world's tele¬
"While the budget position of
(5) Rate increases depend,in
that group) the brokerage and odd
the government for fiscal 1951 as
phones.
Its capacity to extend
lot commissions charged the pur¬ final analysis, on public accept¬
a
whole was favorable, the govservice, research new efficiencies
chaser are less, per dollar in¬ ance. How better build a favor¬
such
as
dial
phones,
coaxial
able public opinion than by very- ernment has been operating at a
vested, than they would be if the
deficit
since April, 1951. It would
cablesf and microwave circuits, shares (after say a four for one widespread share holding? Again,
and td finance nil its vast plant
popularizing
the
market
price be short-sighted to ignore the fusplit) sold at 40.
v
"
,
of
billion of ex-
be about $32
other
on
there will prob-
/'In addition,
ably
est
for
released
programs
stockholder's heart!
(4) ' American
Telephone
&
steady purchase
by mutual, pension and insurance Telegraph lays out for addition to
funds.
*
plant around $1 billion a year. To
(3) The $100 par permits ready get this money it goes to stock¬
holders. Therefore it needs, at all
comparison of earnings and op¬
erating statistics from
year
to times, the largest list of solvent
stockholders it can properly ac¬
year.
policy, Congress must face problem of finding additional revwhich must come from individuals in the $3,000 to
V
'$10,000 income brackets. •
,
with
holders through
let's
the
O'Mahoney is
Report, of which Sen. Joseph C.
pro¬
company's financing program; and
higher market prices never broke, jected defense
a
all the time!
better number
Chairman, points out, if nation is to continue on pay-as-you-go
V
of
(3) If the stock were split four
*
toils to make it an
(system)
even
Report made by Staff Director of the Joint Committee on
Economic
Its name and
thousands /of": investors who
don't go for the 160 altitude.,
.
'
So
corporate
up
(2)
Split
It got a
*•'•(2)
With more than twice as
many stockholders as any other
vestment
de¬
corporation, the management can
mand
on
a
Ira U. Cobleigh
reasonably argue that that fact,
5.6%
basis
alone,
is
sufficient answer
to
alone account for the volume and
those who say T is too high priced
price."
Everybody has the an¬ to lure new buyers. Also, there
swer— yet
nobody has -the an¬ are thousands of invisible stock¬
swer!
the
built into
are
parallel.
38th
Forecasts 1953 Deficit Without More Taxes
It should have.
away.,
change trading is in stocks below
50.
If T sold there, it would pick
;
income.
-
million stockholders
just by "doin' what comes natur¬
ally.'', If it split its stock, it could
get ,2 million!
;//'
life.
up
one
and
service
The $9 dividend is one of
impressive landmarks in
finance.
Investors by
thousand
are
magneted to
American
far
colossus of America.
this.
like
the most
stock
It's
Bell
world' is
modern
the
around
what about AT&T?
intact it's a great stock, and the
as;
-V-'///•
AT&T has the
,
(1) Of course
titude
sion.
or
say
most stockholders.
added
ATT
that
fact
management's traditional at¬
against any financial fis¬
the
or
up,
there's
peal:
156,000 new stockholders in 1950,
much good sense can be found in
other split
is
/
the
rails,
,
"It's time for a
change" these gems of logic ap¬
Dewey,
nor
employees) divided as
accompanying table.
the data in the table, and
the
from
stay
split
:
who, quoting Gover¬
those
shown in the
an¬
up"
"Telephone
should
T
it is.
as
For
stock.
Bell-wether of the Exchange ever split its
,
sweet
most of the solid
are
why
reasons
Tel.—their numbers, and
be gained or lost should this
discussion of advantages to
split
And
one's Empire split into Eastern and
Western Zones, Abraham Lincoln
deposit box unnecesarily.
safe
Killing in Wall Street and Keep
Stockholders of American Tel. and
some
of
.web
non-Com¬
and
munist, and Korea bids fair to be
is woven deeply in
history. The Roman
Splitting
the
Communist
split.
ing share splitting, if that will at¬
tain this vital objective?
counts, and just clutters up
of
Author
"How to Make
and
Ave.
Angeles 46, Calif.
>
Volume 174
Number 5040
.
.
.
Commercial and, Financial Chronicle
The
Steel
ownership,
ISRAEL'S POLITICAL DIRECTION
Production
back
Retail
*
Food Price Index
Auto
and
Industry
with
a
^
straight week.
,'*v.
"
'.v.'.*.
Output of goods in the Unifed States in the second quarter
jumped to an annual rate of $326 billion fronr$319 billion in the
first quarter and $275 billion in the second period of 1950, reports
the United States Department of Commerce.
The total for the
second quarter represented a record high annual dollar rate. How¬
ever, civilian demand dropped below first quarter levels,, with
consumers
spending 3% less ip the second quarter.
All the
$7 billion rise between the first and second quarters was accounted
for by government buying.
~
\r,V'\ ' / '
1
;v
-
•
*";■
'
materials
defense
that
disclosed for the first time on
was
is
foreign capital.)
indicated that similar with-
A Munitions Board spokesman
ferred.
important
curring
■
,
.
I
-V'.J
A;
-/A,.";
W;/ ///'/■■/' ■
8, last, author-
The Interstate Commerce Commission on Aug.
'/■
ized the railroads to increase
nonty
> //
trencned
/
is'at
year.
present,
;'/v v'
The
•
■
/:^.VW
//./■■
supply outlook
,•'./■
n
.-■
///.!r.-/:;
scheduled
in
both
the
fabricators
Structural
is
A
are
and
classifications
B
under
the
CMP.
widespread curtailment
predicting
in
output in the closing weeks of the year unless something is done
to assure them steel supplies.
••
While
steel
acute
supply
conditions
threaten
over
coming
months, here and there evidence is coming to light indicating ris¬
ing inventories at some consumers' plants, "Steel" notes. Indica¬
tions are some consumer durable goods makers have been taking
in steel steadily in the face of declining orders for their finished
goods. As a result their steel stocks are up, and this is resulting
in a trickle of tonnage cancellations to the mills.
Significantly, in this connection, this trade paper points out,
was no stampede of consumer durable manufacturers to file
their fourth quarter tonnage requests under the
CMP by the
Aug. 15 deadline.
there
Automotive
past week to
an
output in the United States turned upward the
estimated 123,066 units from last week's revised
figure of 95,060 units, "Ward's Automotive Reports" revealed.
»
Labor
trouble
at
was
a
minimum
the
past week, the agency
and
Hudson, though back at work, has yet to resume final assem¬
blies, following agreement on Monday of the previous week be¬
tween the company and its workers, "Ward's" observed.
Studebaker reported five-day
week
were
assemblies, however,' after operations last
held to four days because of labor troubles, the agency
added.
tne
A. Wilfred
.<
Marked
Scheduled to Decline 1.1 Points This Week
improvement in steel distribution should result from
slight relaxing of controls by National Production Authority per¬
mitting steel companies to re-establish historic customer relation¬
ships, states "The Iron Age," national metalworking weekly, in
This had long been a sore
Relief may have come just in time to keep
the Controlled Materials Plan from
•
tumbling down
"
,
on some
customer
<
■
basis.
This
Wash¬
.
on
a
first-
not
only disrupted longstanding
relationships, it also had the frustrated customers rush-
ing madly
over
the country trying to place their orders—and, too
often, failing. This
was as
wasteful
in excessive delay and freight
as
it
was
confusing.
,
The electoral gains made by the
enterprise-pushing General
Zionist Party reflected in its in-
It resulted
widely significant implications for
those
in
from
co-
its
need
,
would
na4
from
ensue
of
out
the
gimes
who
other
have
office
a\\
some. At
manufacturing
far-
it
enterprise
tadrut.
'
the balance of the labor sector.
roles
0f
ubiquipredominantly
government
in-
elude
Also
this
coalition
labor
stimulation
vigorous
imply a
political trend
but
at Jeast indicates their vulner-
the "ins."
self-restraint
dustries
and
made to encourage investment of
capi-
jn
as
worker
building,
skills
special
requiring
harboring
over
Excepting in in-
wage
shortages,
have
rises
been moderate vis-a-vis the cost-
the Law for the Encouragement of Capital Investments, ad-
0f-livin° index
tal,
prices
facilitating
the
particularly if the
the'
on
black
widespread
market be realistically taken into
living
workers'
The
accounf
initiation of pro-/ standards remain far below those
England and
^
j
The
France
con-
eranted to the workers bv
acthie
employer
as
merelv those which follow the
pomicai
fhe
sion.
*
m/t/drUt
pressures
labor^
Vote
which
under
•
continually
is
all
in
placated
market
free
The National ration Paradox
gemocracies IdentifiCation with
seemingly paradoxical is responsibility for governing seems
the continued abstention of the als0
demonstrated; as in England,
socialistically-slanted regime from to
provide a salutary force toward
Also
^
the
nationalization
in
j b
,
k
,
of
Under the traditional
definition of a socialist economy,
industry.
Foreshadowed
The
exercised
WOrker demands.
'that
keynote
instrument of so- ,
Compromise
labor's
of
out
employer-employee status
here is the somewhat surprising
domestic and foreign private
cialism,
Continued
growing
a
double
.of
per-
ability to sharp reversal through
the public's dissatisfactions with
;
Labor's Self-Restraint
'
the other hand, the
On
tous
dominated by His-
are now
is
re-
Here the social-
setback may not
pro-free
General
has
and
democ-
world
entrenched
the
new
thesis, His-
the
and
hands
ernment
least 20% which
industry
by Histadrut
directly owned
depreciation allowances, capital
of planners and restoring imports/foreign exchange conver-
manently
otherwise
or
Consistent with this
been
the free market.
ists
the electorate
Zionist Party
just reiterated as foremost
flung ownership and management elements of its price for coperathroughout industry, including tion, nationalization of the health
building, banking, transport, and and welfare services, and state
distribution, with monopoly pre- control of the labor exchanges
has
wage-earners,
j0cts and offers investors a vsriety
despairing 0f concessions and special priviof the possibility of ever turning
ieges in the spheres of taxation.
racies
The Nation's Ideological Future
jn
wejghing
the
likely
Mapai
party of the mod- specifying the state's ownership course
f Israel,s political direc.
Socialists,
whose
leader of the means of production, tion
must be realized that unBen Gurion, has been proclaiming. Israel assuredly is not a socialist
derlying the ideological cross-curthat free enterprise spells bank- state. Only railroads, communica•
ruptcy, has maintained a sizable tions and ports are under state
Continued on page do
page
16
-
,
.
majority-short plurality. But these
"Left
Wingers" /are
confronted
with
large electoral gains by the
general
Zionist
free
enterprise
party, whose platform is based
We
are
on
pleased to
announce
that
curtailment of controls and plan¬
ning.
This anomalous result, fore¬
ARTHUR C. SACCO
shadowing continuation of a coa¬
lition governing arrangement,
on
it
certain
that
directions
Of
domestic
the
multigovern¬
will
policies
go
WALLACE J. BOYLE
unabated, and that attempts to
the economy according to
orthodox
standards
fruitless.
The
nomic
remain
will
'
basic
schism
"Left-Right"
has
been
ARE NOW ASSOCIATED WITH
eco¬
accentu¬
IN OUR TRADING
ated by the loss in strength of the
(Mizrachi, Hapoel Hamizrachi, Poale Agudeth
Israel, and Agudeth Israel) in re¬
lieving the Prime Minister and his
plurality-holding M a p a i s from
making economic concessions to
On
the
the
US
DEPARTMENT
parties
keep them in line.
of
and
,
the
define
Mills have been notified they may take or reject CMP orders
regardless of date received until 15 days before lead time expires/
on
60%
1*9
on™cpl?
through a so-called
12 tn1
to
2Q, seem *5'hlr
to harboi ministered
investment Center, is devoted to
frn™
from
A Thoroughly
Continued
capital; investor,
disastrous
phases of a free market
economy.
For example, typifying
the very intensive efforts being
one
nation's
<$>•
Criitteiiden & Co.
Mcmbsrs New York Slock
charges, and further taxed strained
transport facilities, the paper adds.
-
private
the
many
free
religious
.
Formerly NPA required mills to book CMP orders
come-first-served
,
Socializes
its current summary of the steel trade.
ington heads, it declares.
Israel's
of
May
Electoral Setback to the
ment's
a
point In the industry.
ideaiog-
economy.
faced
:
second
icar direction
makes
Steel Output
foil
an<f
discouragement tO;
realizes
that
the
place,
government
erate
"Ward's" stated that last week's increase, resulting from re¬
sumption of production by many General Motors plants, returned
output to more normal National Production Authority curtailment
levels and to the highest production plateau, reached in July.
stated, with walkouts at Mercury plants at Metuchen, N. J.,
St. Louis the only disturbances reported.
to
Welfare-ism;
and
says
especially distressing in such major
products as plates, structural shapes and bars, the trade weekly
asserts.
Producers of such items already are practically fully
committed for the quarter, and much tonnage still remains to be
'k./rw
first
two
on
the
him
tion, Histadrut, with a membership exceeding 75% of the
0f
in the fourth quarter
"Steel," the weekly magazine of metalworking, the current week. That's the view of industry leaders
today as they seek to appraise their position amid the confusion existing in the various product markets. As far as they can deter¬
mine from their present position, the magazine states, turmoil in h
distribution will be experienced right into first quarter of next
it
as
ia-
devoted
Steel distribution will be just as tangled
'
the
In
fu¬
the
ture. This conclusion arises
operatives, and only 23% from the
DorT°a9f.ea dominance in
majorities
'
March 12, 1951, and which went into effect on April 4.
on
ouxs
cnecKing en-
6.0%, and it absorbs and includes
interim increases averaging 2.4% which the Commission ap¬
proved
doctri¬
of
in
~
vservatiye mi-
-
This latest increase averages
the
possibility
nationalization
grounds.
and
har¬
Israel
that
lect*ves,-36% from cooperatives, other hand, its influence would be
country's
terri¬
tories and interterritorially between
h
;
-democracies
freight rates by 9% within the East-
territory and by 6% within the Southern and Western
the three regions.
>
,/ern
realize
small
pros¬
investors
PhYi
I Private sectortadrut has" kept its own health
irAwLVVm'*
And the giant lab°r;,federa- service free and clear of govo
^
'
'
'
:
previously been made from stores of key metals and
vital materials maintained by the government for emergency
purposes.,/
nf
questions :
drawals had
other
bors
naire
for
important
private
collectives,
25,000
to help overcome current shortages of the metal
in defense industries. About 10,000 tons have already been trans¬
of copper
tons
is
foreign
fd. 27% '-from private owners, vulnerable'to ehanges in governrliS
rilMnnti
In
the case of eggs' 17% comes ment poiicy. Whether by order of
here
shed much
light on two !!
refrom
Wilson revealed
authorized the withdrawal of
has
Truman
Mobilizer
Defense
production .needs.
President
rpcultc
thf
rSParii^entarvelections
being released from government stockpiles to meet
are
avtv
tft
it
collective
in
out
tion;1 relevant to the interests
of the investor of individual
Friday last that scarce
the
of
tionalizing. In the second place!
settlements with- labor's
continuing domination over
ownership and indi- industry is made effective through
vidual incentive; 28% is in co- the
workers'
75%
inclusion
in
operatives; and only 8% is pri- their federation, Histadrut, plus its
vately owned. Of the production ownership functions.
Under inV
of milk, 37% comes from the coldustry
nationalization,
on
the
(Third and last of a series
articles on Israel's fiscal,economic and political situa- *
•
of
and industrial
by
owned
the network
through
others to
period" between capitalists and socialists.
moon
,
And
present economic emergency which is forcing "shot-gun honey¬
'
is
production
pective
On the other hand, cites
capital investment1 Finds labor's constructive assumption
of self-restraint when it is in employer position and affiliated
with Government responsibilities. Concludes determination of
nation's.; permanent ideological direction must await end of
..
non-pri-
The
federated cooperatives.
techniques,
evidences of free market with eager wooing of pri-
•
It
of
workers
vate
V
.
hand collective and cooperative
one
widespread labor domination.
concurrent
porting week employment held steady and at a high level, while
new claims for unemployment insurance continued to fall off.
As
-in weeks past -steel-making operations„ were again maintained
above the 2,000,000-ton mark.: In fact, they set a record for the 24th
the
on
prevalence of a free
economy.
vately owned portion of the means
Observer finds continuation of unorthodox mixed economy and
multi-faced economic policies assured as Elections' aftermath.
slight decline in the over-all level of industrial
production for the nation at large the past week, but a comparison
with the like week of 1950 reveals little change.) In the latest re¬
was
market
Failures
Notes
There
the test of the
By A. WILFRED MAY
Production
Business
of the Mandate
nationalization is not
here
But
-"Is She Going Socialist?"
Trade
Commodity Price Index
,
placed
so
were
interest in the Israeli Airlines).
Carloadings
..
State of Trade
and
in the days
(the government also has a half-
Electric Output
,
5
(689)
hand
land
the
is
majority
owned
administered by the state.
total of agricultural
or
Of the
property 64%
Exchange & Midwest Stock Exchange
York Curb Exchonge
Associate Member New
MKed Economy
'
DEarborn 2-0500
Chicago 4, Illinois
209 S. La Salle Street
Omaha
1
Denver
••
Lincoln
6
The Commercial and Financial Chronicle
v
(690)
sential purposes be curtailed in grams whose operations tend in
govern-~order to release some of the na- the same direction include the
ment offer outstanding examDles tion's resources for expansion m Rural Electrification Administraof spending programs over which
vital areas of production" tion and^ the Farmers Home Adadeouate fiscal control bv
Con- The statement. also
took: cogni- ministration. The REA, which
gress is lacking.
Their functions zance of inflationary lending ,;by boasts that 86% of all farms are
are carried out under substantive
Eederal agencies, asserting these now electrified, contributes^ to
laws which make it difficult and "should be vigorously dealt with shortages of labor and materials,
sometimes impossible for the Ap- at the proper places."
, ,
thus enhancing the rise of prices
of Control by Congress
Lack
Place Credit Restraints
Credit
on
Government Lending Agencies!
By ARTHUR W. CRAWFORD*
Member, Tax Foundation Staff
Pointing out Government lending agencies
•
,
'
of inflation,
Dr. Crawford urges credit restraints laid on pri¬
financing should be applied to Federal loan, insurance,
vate
agencies of the
propriations Committees to exercise a restraining influence. - ,*• -
,*
feeding fires
are
These
,
agencies
are
au-
thorized to borrow from so-called
Cites heavy provisions for veterans,
mortgage guarantees, and agricultural lending programs, as
well as Export-Import Bank expansion and RFC operations.
Concludes, unless restrictive policies are imposed on public
lending, program of voluntary credit restraint by private
agencies will be wrecked.
Dublicdebt
Treasury
•
which
reoeiots
"funds obtained
are
nancing
in
fi-
rather
than
from taxation. While initial capital stock of these corporations has
been appropriated, no approprioperations
in fiscal 1951, and $11,967 million
wtaffiS
p
more
even
an
effective
in-
strument were
it applied unequivocallv to
go'
tho-e
ern-
agencies
agencies
ment
'
Arthur W.
through loans,
insurance, and
guarantees,
Crawford
have
been
'
feeding the inflationary fires and
•continue to do
The
so.
magnitude of the lending,
insuring, and guaranteeing programs of the Federal government
is not generally realized. The best
/single measure of these programs
is
provided by figures on new
.
commitments for
loans, insurance,
rv.
—'
revealed in a speanalysis of Federal
credit
programs appearing for the first
—
—
'
and guarantees
cial
.
time in the Federal
;
;
•
'
.
'
t
+47
m
,fc
the
"Investmentj
♦Reprinted with permission from the
Review." published
by
.he Tax
Foundation, New York City" Dr. Crawford, a member
lull,
and
30
subjects
fpr
than
more
years.
Z
toward
steo
^l0fa^fs ^hc
Fox r
unneces-
for morlfunds
/or moze lunds
_which assumes
Su- f"g
form
1
Q
c
of aearl>' $29 bil"on-
Among the
Credit AdmM«tra-
ai7?»
l?>e ^an^s 10rn uo"
credit
c-j-v-ajn
With
gross
oullav
of
fiscal
year
estimated at
billion-of
the
which
said
agricultural
resirainx
operations,
inflationarv
desniip
restraint
some
Board under authority of the De-
Cotton
Exchange
New
other
the Home Loan
of
lion.
Exchange
.
x.
Exchanges
••
.
Exchange Bldg.
;V'''
SWITZERLAND
^
also
was
asserted to
=
Est.
loan
>
Total
guar.
non-es-
and ins.
Veterans'
■
Administration
and ins.
Author.*
ments
Fed.
Mtge. Assn.
Housing: Admhv.__._x_
$39,869
$31,503 /
Public
Other
234
ij 144
221
450
1,500
1.950
253
58
311
5,835
Defense
Rccon.
production
Fin.
:
Corp..*
...
34
Othei
,
;
3,081
/, 2,754
34
11,488
25
10,743
815
OTHER
1
*
FUNCTIONS
'-^£.745
v
V^':'
J
Authorizations
7
>32
$13,340
$61,463
328
•
to
/ '
^
Agencies
Credit
<
f.' v.
[In millions)
6,750 .;
2,750
-Federal National"Mortgage Association__-*-^-_-__--._4*_-
1
7
The Hoover Commission recom-
Commodity Credit Corporation -1_ _i_ _ - ___ _ ___
■
t
.'«*
^
■
Other
.."V-
Vi'
^
790
-
'i.i
INTERNATIONAL
Export-Import. Bank;
.
,,
jnuch as three-fourths of the total
bas be^n Paid out or committed,
The itemization is significant
chiefly as showing tne magnitude
of sums which have by-passed
the appropriation pnicess during
recent years. (See table below.)^ r
(
BUSINESS
..
3,519
234
77
program-
P .-.for
^ ^ximSm5
authorizarevolving funds.. As
;£/Jv/; and prices of industrial qommod^mended the placing of restrictions
^ i
^/ities: rise*' The; latter in turn re--on.direct loans in non-emergency
'r
£ fleet higher costs of farm prod^ periods.- Indeed, there is abundy'220 x." ucts.V y :
*
/•;
- ant evidence of the need for sharp
Other agricultural lending pro-Vcurtailment- of
lending insuring
427
3.739
Adniin.____.,_i_
.
' The pricecontributes to
spiral of inflation.
Farmprice goals automatically go up..
under the parity formula as wages
income and prices."
support
/
AGRICULTUREt
Rural .Elect*
large proportions.".
.
437
.
427
*
very
•the
$8,366
4.198
4,198
/
author.
end cf '52
7l8
$743
437
Housing Admin.__
Other
commit-
$3,955
.$3,955
Fed. "Nat.
.
CCC, for instance, has the
expressed purpose of "stabilizing,
supporting, and protecting farm
mitted
cmlit
,HOUSING
i
Production Act.
'fluence of
Uncom-
lative
guar.
,204
2,374
S;;|Rural Electrification Administration_„_,-__'
"'--Export-Import Bank
2,500
Housing Administration-.—
Economic Cooperation
Administration---____ 1
Reconstruction Finance Corporation I
-I,
1,500
Public
Total
$3,493
—
"
$9,847
$48,848
,
$12,616
•
_
Source:
not
add
*The
to
Analysis
totals
of
Federal credit
because of rounding.
programs,
t«Q«
....
.
.
•;
,.
1952
Budget.
Items
may
.
.
$61,643 million total of authority for loans,
—--T-.
guarantees
--.-i--"--
and
r
_—_ _ _
1
tData
under
...
600
300
because
.
agriculture
they
are
financed largely outside the budget,
250
,
reflect only a small part of the farm credit
activities of the government. The official analysis of credit agency programs
excludes the Commodity Credit Corporation on the ground that it has to do
with acquisition of physical assets.
Farm Credit Administration agencies are 5
omitted
1,000
Housing for/educational institutions—
insurance ;.
—-.—f-..Housing
and Home Finance Agency (slurp clearance)^—x
•/ FarnierS5 Home Administration....;
^1-4
{>roposed
egislation.legislation. New commitment totals include existing and proposed
m
1.322
General Services Administration (for defense production)
icludes $55,963 million
under ex.ntmg
existing leg,5lat.o„
legislation and
and $5,500
$5,500 null,on
million under
includes.
$.55,963 million under
undnr
-
"f
Senate Committee on Expenditures recently by the Treasj-/'• Vry °^he
rJpresen^to the
Reserve
The
Cumu-
Total
loans,
new
new
commit,
on
Federal
be "most
(In millions)
N. Y.
PITTSBURGH
DETROIT
GENEVA,
It
simpoitant that loans for.
1952
CHICAGO
agri-
culture, industry, and commerce."
Est. new
,
-
NEW YORK 4,
of
needs
the
by
Programs of Federal Credit Agencies, Fiscal 1952
:7.
N. Y. Cotton
Banks
amounted to upward of $400 mil-
Trade
Of
Cotton
Orleans
And
vances
Inc.
Exchange,
Board
help finance the defense program
essential
receipts.
Extent of Government Lending
$20 billion which was furnished
^
eontrols imposed'
credit
1950.
the
diaw upon
housing
extend^
credit
w the 'amount dencies and at the same time to
of about $3
oillion during fiscal
Exchange
and
Ex,mnn
from a tabulation totaling almost
Exchange/
fiscal year, ad-
the
jraw
through
Curb
same
of
main present to -a marked extent, fuul™ \^L^. \«\l. u5
ten-
Stock
In the
fn
contribute
to shortages
of labor involved
. Some idea of the large amounts
m«tPriai«
arud
to
inrrpaspd
in
authorizations
to
Tnflatir.narv influent recredit agencies to expend from
ten
miiaiionary
01
reiterated
and
Tmnnrt
,
.
continuMo
taalntai"
tf
President's
the
The government housing pro- port-Import Bank to
whether in the form of in- Treasury public-debt
sucn.a- way as to neip maintain
and n]9rease the strength of the
ixxiance
wmcxt.
V11'.
normal
as
in
message
the ' Board grama.
,to, a statement of , guid.ng
way
made
hudoet
an
,
institutions,
three-
first
euar-
a
It should be the purpose of fi-
nancing
CCC
and
suffer
in the authorization
'^>"8
"^undoubtedly
would aid-for
shrinkage.
llUmber of months;
represented by loans,
of the Farm Credit
is
insurance
Without the insurance and^guar budget special
message-and
reiterated
message on
foreign
fntees the volume of private in his sp
increase of $1 billion
baa been actively at work for a
Banks, and the Federal
Deposit Insurance Corporation.
°f credlt
not including
by Federal agencies,
guaranteed
nf
member
Chairman a Volun-
Credit Restraint Committee
the Federal
Banks!' the Federal
.Reserve
a
wiin a memoer 01 *
operatives, the Production Credit ?crai£ creait.
Corporations, and the Production
Board as
Credit^^ Associations^)
charged
Bank
of aidin0 the fi-
f.rants wl"ch will run to substan- with inflationary effect.
tlal amounts It iS officially estiThe Appropriations Committees
"^d that 40% of the present have been given no opportunity
home mortgage debt is insured or to pass upon a-recommendation
"Alea"
Banks
flearfnce,
for fum
defense f Production Act of 1950
'to encourage private financing intlm
lntermedtate s'citutions to enter into voluntary
,h„ ttmikr /nr r,, • agreements and programs to re-
Farm
I»Port
for with the duty
housing,
to®^
^nci^wtchTreThus
exefuded
f
th
loans
principally to public nancing and facilitating of exports
nrocflnt
the present
dangers from inflation hndips
bodies tb
through the Public Hous- and imports, and two interna0nd frQrn 0<ier0us taxation
big Administration, are increasing tional agencies (the International
j. .
.
L recalled that the under Public-debt authorizations Bank for Reconstruction and Depresident - bv
Executivr Order of $1.5 billion in the low-rent pub-, velopment, and the International
to the Federal Reserve lie.housing program and $1 billion
Monetary Fund) have also con-
a^f ®th^r. government agencies
tm .whj)le- °r ln pfKrt
P"vate funds.
government
Direct
*
which
assumes
very
^reat importance in the light of
n
corporations
ownership
=
with additional commitments of connection.
•
$2 8 billion, making total obliga- /In the international field, the
York
Chicago
to-
sistance to enterprises having difficulty in obtaining funds from
banks is a factor tending t0 nul"
availability of lify efforts of the latter to curtail
York
Commodity
j?
ItfTSTis
New
York
.
P
}■ Pr°S^am .^s
herently inflationary, for its as-
New
New
of gov-
area
'
The agencies
Members
make
suf-
are
How to bring these lending and
insuring agencies under more ef-
armifd"
tho
c»ii*uyws_
aiso
exciuaes
owners'-*in
rnmorafions
.
mixed
fourths
:
major
,
Diilionin
uiortgage. insurance authority,
New
insurance of tne
EHA in fiscaI 1952 is estimated in
the budget in excess of *4 bilUon
problem
Lnslvcic
$2.2
H. Hentz & Co.
third
a
commendable
of loans
mf]latiionary ef-:
pub icaregarding
m this
modities
The
1856
In
eminent lending — for business
and industry — impetus continues
to be given to inflation under
^
-If ,=u fn f
and
f*°"f ^ iZ
mediate
for the
Established
allv these statutory limits
i_
Operating,
Corporation
the proposed new authorization.
credit.
goes to me .legislative
: ; ti,«
activitiesof the committees ,! which drafted ; the .V New guarantees of mortgages
The new Adm:mistr,
CommodityCredit
Cornoration substantive laws—rather than toLlby the Veterans' Administration m^gFC
has .taken
are
exciu(fed on
^JorVthaf'-^he Appropriations Committees.1 1952 are estimated at almost $4 steps toward curtailment
Drice%uDitorf- loar^^eShnSed^t The legislative committees rarely billion. It is estimated that total wihi.ch mignt have
S1 6 billion for 1952i are non rp
bave any concern for excessively insurance and guarantees of the fects. A. new policy^
^
Xaspects of a credit fHA and -VA in force on June 30, tion ot information
onjv ior the duration nf the mar
program or budget deficits.
1952 will be almost $26 billion, loans has been helpful
Home Loan
related
i
other Budget Expenditures. "
example
all
are
-Tax
u
m
Finance
Reconstruction
on
new
J?uag".
amounts
maximum
e tota/', a,?oug? Jarg?' by -ficientlv large to
SCTW tel1 he whole story.
'f gL 1°
P* oans are °"ly uthSse.s0 cl?ss " aU7st to Congress
fled,.1.n
a seParate budSet analysise s* toJr o rlglf^
on
estimated tion »
at $13,340 million for fiscal 1952
Land
as compared with $13,613 million
Cref,it
covered
antees -are
estimated
are
million;-specified in substantive law* Usu-
mi,
budget lor the
iis™\
year 1952' •
Total new commitments
programs
•
bursements of loans
trend
P°|JJ}g
[hfre^^ro^ed'"'!^''the
Sample ^""to asa^fmprbmdtl
fJ!™'budget
tegfslat
to i£« maximum employment and
ance
at $2,077
inflationary
the
sustain
*ielp
A_p„9finne
BP &£&SE
rs
rf» U r eis, loans and
and guarantees.
$9,847 Million
of insurr expenditures of these credit agenActual dis- cies or upon insurance or guar-
could be made
ers' Home Administration goes so
edly inflationary purposes during far as to make 40-year loans for
Periods of low prices and slack purchase and
business. The mandates in basic farms, up to 100% of their va ue.
laws take little or no account of Operations of the Farm L^recm
the desirability of contracting Administration,
while financed
credit when economic activity is largely outside the budget and
reaching boom proportions.
performing useful functions, also
Hn„cin(r
ations for current operations are
required. These agencies in most
expansion urged upon banks, in- for fiscal 1950. The 1952 total is instances maintain revolving
surance companies, and other prionly slightly less than 1951 and a funds into which are paid revate financing institutions by the substantial
increase over 1950. ceipts from repayments or sales.
government Administrative costs are not in- Net withdrawals from, or repayas
a
means
eluded in the analysis'figures.
ments to these funds are reflected
credit
unnecessary
industrial field. .The Farm-
insuring *n the
and
created for- avow-
were
G°venlme"t Housfag Operations
the forefront of mflationary influences are those govern9}en^ agencies in the housing
For example, the Federal
Housing Administration is authorized at present to insure $19.5
billjon of home mortgage loans
-
Restraint of
.
lending
jThese
agencies
government corporations
other credit
and
and guarantee programs.
f
V. 1 Thursday, August 23, 1951
?
Veterans'
Tennessee
Administration
(direct loan
program)^Ti__i—„'•
Authority-1
Housing & Home Finance Agency (prefabricated housing)
Valley
178
150
62
50
i
:'."$19,786
.
:
Volume 174
Number 5040
activities.
.
i
Inflationary
.
The Commercial and Financial Chronicle
.
inated.
f 1 u-
n
of
ences
housing policies have become
increasingly dangerous. Ag¬
ricultural
programs
have
con¬
tributed
to
the
soaring
price
movement.
the
-
From
modification
infla¬
of
tionary policies written into laws
which
these
established
billion
lending cr insurance for
or' housing
are
deter¬
by the Banking and_ Cur¬
Committees, and
rency
Affairs,
field
The authority
Government
Control
■
Act
limitations
to
of
penses
tions
government
falls
control
to
should
which
cised.
be
ate,
ex¬
"task"
force
Comptroller General of the United
States.
A similar plan might be
applied to government corpora¬
tions generally—but other devices
must be found to bring mortgage
,
'
was
or
and: sought
changed
and
leaders who
least
at
about
two
the
"free"
40-houf week,
the
fields,
and
world
but with most of
with their free
too.
are,
come
have
to
were
talked
Carlisle
Bargeron
with
present at that leadership con¬
three
or
could
resist
not
'
teasing the
Just how
It is doubtful if the greatest account¬
such exact compilation.
any
to wield
over
This invokes
public-deo<.
The
would
effect
be to
receipt.
force the
one-half billions -is
typewriter.„ /..'•>
and
written
on
So it is
a
rather
a
billion
nothing.
and
a
of
money
'■.' V.
said, six
4'
y
were
■/v-
-
'■'■V
tinker's dam.
In such
a
when just
it.
we
see
the legislative
and
the
others
of the control of their government
hundred million
You would think there would be
?
,/,4
v
Robert Leyendecker Opens
PELHAM
huge budget there is ample water
Capitol to express their holy horror that
boys, have gone to the
a penny
should be elim-
Robert
MANOR, N. Y.
Leyendecker
has
E.
offices
opened
Avenue to engage
business.
Grant
in the securities
at
1073
E. B. Randolph Opens
Edward
.
.
B.
Randolph
cities
4444
::4; 444"'.■
This advertisement is neither
- .
an
offer to sell,
The
•
nor a
44':'\
■ :
solicitation of
an
offer to hay
" 4 4
any
;
of these Securities,
offering is made only by the Prospectus.
August 21, 1951
New Issue
500,000 Shares
ing fund, which could be held at
low level.
In
the
amendments
of
absence
substantive
relating
laws
to
lending and insuring
agencies or providing better fiscal
control, some steps can be taken
by administrative officers toward
the curbing of inflationary ten¬
policies
of
dencies.
The
new
National Distillers Products Corporation
Cumulative Preferred Stock, 414% Series
($100 Par Value—Convertible Prior to September 1,
administrator of
of 1951
1961)
the RFC, for example, is in a po¬
sition to
restrict business loans
under broad discretionary powers
previously
a
board
of
be
found
to
in
vested
directors.
4
/
'
Unless
can
ways
restrictive
the
icies
public credit as are pro¬
in
same
Price
pol¬
enforce
(Special to The Financial Chronicle)
Mich.
DETROIT,
Walker
has
staff
R.
pany,
bers
of
C.
change.
the
He
was
D.
the
to
Stock
formerly
to The Financial
with
Field
pany,
Mass.—Milton
is with Renyx,
Inc.
^
,
V
(Special
to
Econ-
Goldman, Sachs & Co.
Dominick & Dominick
Hayden, Stone & Co.
Stone & Webster Securities
Hornblower & Weeks
Gage
The Financial Chronicle)
SPRINGFIELD, Mass.—Jesse H.
Smith has become associated with
L. B. Gage,
Blyth & Co., Inc.
The First Boston Corporation
Kidder, Peabody & Co.
W. C. Langley & Co.
Corporation
Union Securities Corporation
Field & Com¬
.
Joins L. B.
Ripley & Co.
Incorporated
Chronicle)
'
BOSTON,
Harriman
Glore, Forgan & Co.
Ex¬
„
With Renyx
omos
Copies oj the Prospectus may be obtained jrom any of the several underwriters, includ¬
ing the undersigned, only in States in which such underwriters are qualified to act
as dealers in securities and in which the Prospectus may
legally be distributed.
4
Building, mem¬
Detroit
Smith, Hague & Co.
(Special
.Ft
O'Donnell & Com¬
Penobscot
of
share
;
Lee
—
added
been
*
per
plus accrued dividends from August 15, 1951
posed with
respect to private
credit, the program of the Vol¬
untary
Credit! Restraint
Committee may be wrecked on the
shoals of government
inconsist¬
ency.
t
With R. C. O'Donnell
$100
1387 Main Street.
Wertheim & Co.
Merrill Lynch, Pierce, Fenner & Beane
White, Weld & Co.
from
lng m a securlties business from
offices at 60 East 78th Street,,New
York City.
.
is engag-
business
Corporation to submit its lending
to
,t
4'4.-4v4
political vanity, Truman wouldn't
who, like errand
the American people have lost.
trouble about it.,
no
In itself, this means
nobody knows this more, than General Marshall and Charlie
Wilson
^ But when I say the spectacle of Congress trying to reduce
the $8.5 billion figure is pathetic, I mean that it shows how much
-0
or seven
;; 4 • v
not for his
even
4
dollar and seyenty^five cents.
or a
And if it
give
lot
pathetic picture when
branch trying to knock off, as I
or
a
a
policies for review by the Appro¬
priations Committees whenever
it needed to replenish the revolv¬
a
,
.
Eight
The Fulbright
bill authorizes
appropriations to a revolving fund
for the RFC in place of its pres¬
ent
authority
to
borrow
from
Treasury
'
hopeful thought: In 1939, Roosevelt the Great
had spent about $25 billion on relief and to prime the pump. The ■!
pump hadn't been primed and there were still some 10 million,
unemployed. He was hard pressed for ideas with which to wrap
more requests for pump priming money.
But he finally came up
with the idea of a spend-lend bill of $4 billion, as I recall it The bait was that busines was to get some of the "lend" money.
Everybody just groaned and assumed that he would get it. But
in the Senate, the Harry Byrds and the Tafts went to work on the
bill and riddled it to pieces. Then, lo and behold, the House killed
the bill outright.
That was the end'of that phase of New Deal
spending; Roosevelt turned his energies immediately to Europe
and World War II and our participation became inevitable.
I
hope that history isn't repeating itself this early.
—
-
fiscal control.
:■
""
a
by non¬
under better
agencies
i
A reduction in the bill, indeed, will likely set the
insurance and guarantees
corporate
*
who
people against this global leadership nonsense. It is
impression that the dissatisfaction is greater than is being;
reflected in Congress; that that body is moving far too cautionsly,
which is indicative of the power which the executive branch has
specific items in the $8.5 billion bill.
this figure arrived at?
in
in
my
It is utterly
likely to-accept
are
I
man.
the
on
plowing
allies
American
cajole or
the figure
submitted.; These leaders have
they
hard
so
still
our
So, in this light, the seeming determination of the legislative
cut these funds, at least to some
extent, means some¬
thing. It reflects the growing, dissatisfaction on the part of the
the rest of them
ing firm in the world could work out
the
and
a
of those
President
■
(which has been under considera- ;
tion by the Senate Banking and*:
Currency
Committee)
are
such
methods for bringing the corpora-,
tions under better budgetary con¬
trol as were proposed by a Hoover
Commission
as
ference
the RFC
specifically to
had
wives
for
-
they know him intimately.
him
Embodied in the Fulbright bill,
applying
he
global minded editors it would be repre-
branch to
acceptance of
absurd to think that
some
exer¬
■.
House
those
who
served with Truman when he was in the Sen¬
propose*
V.
•
White
the
which
corpora¬
the fiscal
of
short
far
the Italians
bully them into the
of the
administrative
or
to
heartbreak
a
misguided
isolationists, those who don't know the world has shrunk, those
are living in yesteryear.
As it came
dollar and seventy-five cents.
a
Senate and House leaders when he called them
Corporations
1945
of
on
by
wittingly called by
CIO goons upon the necks of those who voted for
it, the
the exact number of rifles and bul¬
is, of course, nonsense and it must
decreased the respect for him of the
have
Appropriations Committees under
e
they
This
lets.
Relations
Foreign
and"
Committees.
of
this year;
the
by
efforts
other
the French
Foreign
Currency,
and
present
the
words, Truman would like to
have it thought that he and his assistants had
it figured down to the last dollar and cent on
the number of loaves of bread we would give
ing with veterans; those relating
to agriculture by the Agriculture
Committees;
and
those
in
the
international
at least
or
In
committees, including those deal¬
Banking
about
But
as
struggling
their
and I think, some odd cents.
other
by
pathetic
something
so
medicine and toupees and dentures; a reduction would just about
throw them into the hands of the Communists—a
good people
from the White House it called lor $8.d billion
business
mined
t h
are
Congress to cut the Administration's bill for foreign military and
economic aid by six or seven hundred million dollars or by a
example, presently policies
to
is
There
to
For
as
sented
By CARLISLE BARGERON
lending
agencies, amend¬
provide more adequate
fiscal
control
are
becoming in¬
creasingly desirable,
ments
v
Truman.
insurance
and
The world, the free world as it is
propagandists, won't understand.
7
But we have come to the point of punch drunkenness in this
country where the newspapers would hail a reduction in the $8.5
billion figure of any
kind, say a hundred dollars, as a defeat for
Washington
Ahead of the News
•
Besides
(691)
G. H. Walker & Co.
W. E. Hutton & Co.
8
The Commercial and
(092)
Financial Chronicle
Thursday, August 23, 1951
...
.
Joins George A.
*
Dealer-Broker Investment
Notes
NSTA
&
Dowell
Co.,
,
Walnut-
North
1
Street.
will be pleased
MacNaughton-Greenawalt
the following literature:
send interested parties
to
CLEMENS, Mich.—John E.
now with George A. Mc-
MT.
Sedan is
Recommendations and Literature
It is understood that the firms mentioned
McDowell
(Special to The Financial Chronicle)
"
(Special to The Financial Chronicle)
SECURITY TRADERS
NATIONAL
Service—Special offer of 10 weeks by airmail for
$1.00—George Lindsay, 1638 \k North Martel Avenue, Los
Angeles 46, Calif.
Advisory
■.-■'i
The
following nominations for officers of
rity Traders Association have been
A. M. Kidder &
Also available in
the National Secu¬
made for 1952:
Charles C.
Building,
Trust
Michigan
Co.,
west Stock
•••
flW"*'
Co., 17 Wall Street, New York 5, N. Y.
analysis of American Insurance Company
—
MacNaughton-Greenawalt &
with
Mid¬
Exchanges.
With Fusz-Schmelzle Co.
an
(Special to The Financial Chronicle)
of Newark.
Brazil—Memorandum—Chemical Bank & Trust Co., 165
New York 15, N. Y.
way,
Mich.
Blair is now affiliated
members of the Detroit and
Airlines—Analysis of three representative stocks (Eastern Air
Lines, Pan American World Airways and Uniter Airlines)—
-
RAPIDS,
GRAND
ASSOCIATION
ST.
Broad¬
Bank
the
full year of 1950, showing monthly highs, lows,, earnings,
capitalizations, volume on virtually every active stock on the
New York Stock and Curb Exchanges—single copy $10.00;
yearly (6 revised issues) $50.00—special offer of three edi¬
tions of Graphic Stocks, 1924 through 1935; 1936 through 1947
and up-to-date current edition, all for $25.00—F. W. Stephens,
15 William Street, New York 5, NT. Y.
charts complete with dividend records for
Industries—Market
is
Co.,
Co.,
&
Witter
appraisal—Dean
of
the
Midwest Stock Exchange.
Scherck, Richter Adds
to The Financial Chronicle)
(Special
ST.
•
H. Russell
Mo.
LOUIS,
—
Leslie
•
B.
Meyer has been added to the staff
Jay L. Quigley
Phillip J. Clark
Hastings
of
Company,
of
Richter
Scherck,
Landreth
Building, members
the Midwest Stock Exchange.
Wall
14
with
Boatmen's
members
Building,
A.
John
—
connected
now
Fusz-Schmelzle &
Graphic Stocks—January issue contains large, clear reproduc¬
tions of 1,001
Mo.
LOUIS,
Wutzler
•
Street, New York 5, N. Y.
explaining about put-and-cal)
options—Thomas, Haab & Botts, 50 Broadway, New York 4,
"Information Please!"—Brochure
U,
Joins Walston,
New York.
between
the
stocks
industrial
listed
C.
Rambath
of
Walston, Hoffman & Goodwin,
1014
Public
have
been
of electric
Puts
&
Steel
President—H.
First
Russell
Hastings, Crouse & Company, Detroit.
Vice-President—Phillip
Co., Denver.
utility industry with a
Second
Mo. —Charles
LOUIS,
R.
Clark,
J.
Amos
C.
Sudler
Inc., 408 Olive Street.
&
*
,,
Vice-President—Jay L. Quigley, Quigley & Co., Inc.,
SKIPPER SMITH
Cleveland.
Secretary—John W. Bunn, Stifel, Nicolaus & Company, Incor¬
Calls—Booklet—Filer, Schmidt & Co., 30 Pine Street,
N. Y.
porated, St. Louis.
Stocks—Analysis—Sutro Bros. & Co., 120 Broadway, New
York
'
Manship is with Waddell & Reed,
LeCocq, Pacific North¬
Company, Exchange Building, Seattle 4, Wash.
New York 5,
ST.
Lex Jolley
John W. Bunn
list of five selected issues—Frank G.
west
& Co.
(Special to The Financial Chronicle)
seventy-nine years.
Utilities—Discussion
with Schwabacher
With Waddell & Reed
paying dividends continuously from
Of the other twelve, one started
paying dividends 119 years ago, and its stockholders have
received annual dividends regularly with the exception of
the years 1833, 1840 and 1858—National Quotation Bureau,
Inc., 46 Front Street, New York 4, New York. ;
to
seven
He was pre¬
Eighth Street.
viously
their ancestry to years before the Civil War and another nine
had their beginnings in 1900 or earlier. Twenty-three of the
companies
has
Stock Index, 12 trace
Bureau's Over-the-Counter Industrial
•
Calif.—Harold
joined the staff
SACRAMENTO,
up-to-date com¬
used in the
Dow-Jones Averages and the 35 over-the-counter industrial
stocks used in the National Quotation Bureau. Averages, both
as to yield and market performance over a 12M>-year period.
Of the 35 companies represented in the National Quotation
Over-the-Counter Index—Booklet showing an
parison
Hoffman
(Special to The Financial Chronicle)
Treasurer—Lex
5, N, Y.
Jolley,
Johnson,
Lane,
Space
&
Co.,
Inc.,1
Atlanta.
Unlisted
ers
Stocks—Specimen portfolio—National Security Trad¬
Association, Morton A. Cayne, Secretary, Cayne & Co.,
14, Ohio.
INVESTMENT TRADERS
Union Commerce Building, Cleveland
Utilities—New
analyses
of
showing
utilities
17
opportunities
still available in undervalued stocks—also available
ratings reports
vision,
44
ASSOCIATION OF PHILADELPHIA
following unopposed slate has been nominated for officers
of the Investment Traders Association of Philadelphia:
are new
15 Electrical Equipment, Radio and Tele¬
on
Chemical,
insurance;
The
and
45
48-page edition
on
Liquor;
Drug,
motion
37
picture
and
food
stocks—special introductory offer
including four weekly editions of ratings and reports with
special situations recommendation, supervised account report,
two fortnightly letters and four weekly supplements, plus
Stocks
Utility
Electrical Equipment, Radio and
apd Commentary
New 1951 Taxes—$5.00—Dept.
CF-5, Value Line Survey, 5 East 44th Street, New York 17,
on
N. Y.
American Locomotive—Bulletin—Bache &
Co., 36 Wall Street,
New York 5, N. Y.
Also
available
National
brief
are
Steel
data
Union
on
Carbide
&
Carbon,
and Thompson Products.
Wm. J. McCullen
Atlantic
Refining
Co.—Memorandum—Shearson,
Hammill
Chas. L.
Joseph E. Smith
&
Also
available
General
memoranda
are
Portland
Cement
on
HAROLD
Wallingford
&
Pershing
Co., 14 Wall Street, New York 5, N. Y.
Cutler
Hammer,
Inc.,
SMITH
Broadway, N.
Y.
Co.
fellows
Audio Devices,
Inc.—Analysis—Peter Morgan & Co., 31 Nassau
Street, New York 5, N. Y.
ARE
YOU
Bowser, Inc.—Analysis—Cruttenden & Co., 209 South La Salle
Street, Chicago 4, 111.
B.
120
York Stock Exchange
New
Member
and
Co.,
;
"KEEPING UP
THE
WITH
LEADERS"
.
Continued
on
page
25
mobe
Glass Fibers
Durez Plastics
Em hart
Tennessee Products
Mfg.
e£t-upfch
needed
Joseph R. Dorsey
John R. Hunt
Primary Markets
President:
William J. McCullen,
First Vice-President:
Troster, Singer & Co.
Members:
74
N.
Y.
Security
Dealers
Trinity Place, New York 6, N. Y.
Telephone:
HA
2-2400.
Teletype
Private
wires
NY
1-376;
377;
378
Charles L. Wallingford, H. M.
Company, Incorporated.
•;
.
Treasurer:
John R. Hunt,
Secretary:
Joseph R. Dorsey, Merrill Lynch,
new
Advertising for the "Chronicle's"
N.
S.
Stroud & Co., Incorporated.
officers will be installed
A
star
hit
Pierce, Fenner
& Beane.
The
Byllesby
\
to
Cleveland-Denrer-Detrolt-Los Angeles-Philadelphia-Plttsburgh-St. Louis
On
T.
A.
Convention
Supplement
Joseph E. Smith, Newburger & Co.
Second Vice-President:
and
Association
Hendricks & Eastwood, Inc.
September 11th.
ury
an
performance
on
all time high and
your
of not only the National
air
Regional
part will
help 1he treas¬
but also
Associations.
Volume 174
Number 5040
.
.
The Commercial and Financial Chronicle
.
'
•
(693)
i
tage. This will result in
Working Hours
Bank and Insurance Stocks
27
different
H.
By ROGER W. BABSON
Referring
JOHNSON
E.
electricians, plumbers and paint¬
The
stock
which dominated banking interests including bank
news
trading
during the
past week
the
was
Monday that the Chase National Bank
sales and production
I
to
the banking and trust business of the Bank of the Manhattan Com¬
and the subsequent announcement
pany
of
"legal obstacles" it
Both
nity.
statements
While it
was
came
as
surprise to the financial
a
asked
him
make the
which
he
commu¬
visited
involved
Chase
was
were
M;'>
■
were
closed.
were
v'.;
learned
Roger W. Babson
by approximately $800 million.
30, 1951, Chase had deposits of $4,793 million and
Manhattan had $1,129 million, making combined deposits for the
institutions
of
million
$5,922
Chase would still not have been
as
as
Another
consolidation is that it
a
transaction of such
nature in the
a
history of American banking and the twelfth in New York City
within the past several years.
-
,
/
,
-
Manhattan have been terminated, they have stimulated interest in
bank mergers and consolidations in New York City.
As a result
that
tried
meet"
by
The statements of Chase and Manhattan brought considerable
activity into the market.
counts
have
absorbing the offerings.
been
example, "Barron's" index of bank stocks was 69.72 on
On July 19 the index was 69.24. Pretty much the same
indicated.
prevailed throughout the
high of 73.73 and
a
no
clear trend
a
year
far has been
so
narrow
with
a
low of 68.10.
While it remains to be
stimulate
with
year
"Barron's" index of bank stocks stood at 69.88 on Dec.
The range for the
1950.
seen
whether the current activity will
larger interest in bank shares which will enable them
upward from the current level, the market activity dur¬
ing the past several days has been encouraging.
move
Beginning at the end of last week Manhattan began to show
strength and made a gain of two points at the close of trading on
Friday. On Monday continued strength in the shares was followed
by the announcement of the consolidation talks and the stock made
a gain for the day of approximately three points.
On Tuesday a further
Manhattan.
Other
bank
gain of one-quarter point
issues followed
the
was
upward
made by
trend with
Chase, Corn Exchange, Public National, New York Trust and First
National
as
a
showing gains of from
the followers
-
of many
.
,
The action of the past
;
'
.
week has been
of bank stocks.
an
.
,
can
t
o r
and the
y-h
our
real
only through inand increased pro-
sales
creased
which
duction
requires
law, the
hours, better work and
inventions.
Saturdays,
on
time to them-
more new
because
today
Shall
shall
destroy Unions?
we
abolish
Vice
Sacco
at this time,
week
two
friend
my
look
to
from
dent
at
cottages
must
ends
cold
were
and
and
0f
this caused
find
loss
a
of
work
to several different trades needed
to
be
employed
vacant
for
opening
cottages.
up
4
,
Whether
sympathies
employers
our
these
worth
tive
clerks
to
take
offices
have
no
more
the real
commissions;
the cottage owners lose rents and
merchants
the
Higher
but
by
lose
wages
they should
shorter
customers,
be
may
fewer
or
deserved;
be followed
not
working
plan
to col-
'.■■■'
.
of keeping
an
which
are
must also be
by
office
a
labor
contract
labor
officials
would
,
my
the
bottleneck
fewer
hours
of
an
business.
office
or
The
store
is
do
Another
owner
are
_
<^R0Nrc")
and
Othal
that
the
nor
the
neither
With L. B. Jackson
(Special to The Financial Chronicle)
,
BLOOMINGTON, 111.—Harry A.
Steinfeldt is
much
to
help
out
idle
planned
Returning
which
money
to
use
in
now
with L. B. Jack¬
Inc., Livingston Bldg.
(Special to The Financial Chronicle)
us
to
reference to the cottage. The
of the vacant cottage had
some
Co.
With Link, Gorman, Peck
.
thought:
&
son
while
he
had
building
an-
CHICAGO, 111.—Albert O. Wieg.
,
...
^11S
,
T.
~
Exchange.
With Paul
INSURANCE
STOCKS
(Philadelphia Plan)
was
formerly with Schwabacher &
""
•
to
i
September 15, 1966, inclusive
Teletype—NY 1-1248-49
Trading Dept.)
Specialists in Bank Stocks
Priced
to
yield 2.25%
to
3.05%, according to maturity
authorization by the Interstate Commerce Commission.
(Special to The Financial Chronicle)
SANTA
Telephone: BArclay 7-3500
(L. A. Gibbs, Manager
'•••
guaranteed unconditionally as to payment of principal and dividends by
endorsement by Missouri-Kansas-Texas Railroad Company
Issuance and sale of these Certificates are subject to
E. F. Hutton Adds
Stock Exchange
York Curb Exchange
BROADWAY, NEW YORK 5, N. Y.
Bell
To be
Paine, Webber, Jackson & Cur¬
tis, 626 South Spring Street. He
Lcird, Bissell & Meeds
Members New
■
of
Co.
Members New York
Equipment Trust Certificates
March 15, 1952
Geo.
M.
BARBARA,
Calif.
—
Sidenberg, Jr. has been
added to the staff of E. F. Hutton
&
Company, 934 State Street.
HALSEY, STUART & CO. INC.
August 22, 1951
'
FRANCISCO, Calif .—Gene
R. Taylor is with Paul C. Rudolph
& Co., 127 Montgomery Street.
Equipment Trust, Second Series 1951
on
i Stock
S?1
Rudolph
SAN
Missouri-Kansas-Texas
$50,000 semi-annually
,
e Ml(*west
$1,500,000
mature
_
Peck
cmifr PSfcfff
Street,
r;wiJ
other cottage next door. The fact,
the less it sells; the less it however, that he failed to rent his
sells, the less it buys from the present vacant cottage caused him
factories. As retail sales decline, to give up building the new cot-
To
haw
company
get any pay
open,
;
Milam
Management Corp., Boston Bldg.
strikes,
consumers.
keep costs down is bad for the
whole. Merchants
But
strike is on! This simple clause
to
a
i.
^
DENVER
reducing strikes
clause in every
in
inserting
store open fewer hours in order
as
,
go I Flaherty
costly to all parties,
discouraged. It would
help
greatly
or
nation
,Stock Exchanges,
^
likewise.
increase
a
higher prices. Certainly, this
,
.
Tw° Wrth Hamilton
would
costs
FRANCISCO, Calif—GorT
Jr0^0111^ ,Stre!t', members of
™
\ork and San Francisco
real wages and real profits would
officials could
The
only
„
causin* 'ower prices to
and
lapse sometime.
consumer's
finished
The
hours which result in less business
inflation balloon is bound
a
What About Strikes?
or
home;
lose
pay
the
is
pay
are
office
The
sense.
then
and
is
bonus for
average"
SAN
,
a?n *' VeY.y has
added to the
S?of Dean Wltter & Co., 45
good work and more of it. Incen-
onemvofi^oLlbv^ch^r
r
"the
that
wage
on
up 80% of the consumers«
Why Living Costs Are High
with
brought about by all agreeing
a
(Special to The Financial Chronicle)
hope; and the wageworkers make
2%%
ANGELES, Calif.—William
Hayward has joined the staff
W.
Det-
Dean Witter Adds
co-operate to increase sales
production and the quality
the products.
This could be
LOS
and
Presi¬
of
& Co.'s staff,
highest real wages possible. But
employers and wageworkers
rainy. This caused him to give up
renting any cottage this season.
'
(Special to The Financial Chronicle)
-
bar-
both
week end. The next
a
With Paine, Webber Co.
BANK
Mr.
was
us
cottage because he could
only during
we
imaginations
develop is diffi¬
de¬
formerly
Arthur C.
No!
collective
their
Sacco
the labor leaders and politicians.
.
with
in
partment.
in*
of
asso¬
trading
v e
ventors and laboratories—not due
enabling the office
more
goods
more
ciated
them
J.
have
become
longer
Wageworkers ; h a
and
Boyle
be increased
estate
ends
Sacco
Wallace
This
wages.
real
both
announce
that Arthur C.
in food, clothing and
our
Ex¬
changes,
the economics of banking in New York is
favorable for combinations
of
Midwest
Stock
get for our
we can
week
insurance
and
are
"Money-wages" mean
until we turn them into
"goods." What
1
predict as can be seen from the events of the past week.
The fact is, however,
120
nothing
production
some
people and promises to be an important factor in the bank
Whether any actual mergers or consolidations
cult to
next
members
more
us.
recent raise in
stock market for some time.
-
I
interesting period for
It has stimulated the
all
Cruttenden & Go.
On Wednesday
reaction in
a
to
resi¬
mak¬
CHICAGO, III.—Cruttenden &
Co., 209 South La Salle Street,
developed with Manhattan losing most of the gain of the
last few days.
-
to five points.
one
result of the termination of negotiations
issues
a
down
come
money
minor.
situation has
to
and trading ac¬
in most instances
Price changes
efficient
Remedy?
more
pay,
"make
prevented
renting
estate
For
Aug. 16.
28,
Trading for the past month has been
small amount of investment buying
a
the
by all of
and discussions of other possible com¬
rumors
cottage
summer
vacation
mer &
Co., with whi^hMn Boyle
look at the re- gaining? No! Shall we enact anti- was also associated
suit to the other parties involved. iab0r
legislation? No! Consumers / John A. Block has also been
This closing of the real estate want
satisfied labor with the added to Cruttenden
during the coming months. Such news
is likely to be one of the important factors in bank stock activity.
dull with
n-
and
are
closing
selves; but let
binations will be prevalent
;
to
This resulted in
I
Although the current negotiations between Chase and Bank of
it is expected
offices
office
large as Bank of Americaof June 30,
interesting point about such
the largest
deposits of
date.
which had deposits of $6,316 million
would have been
with
compared
as
same
the
Is
prosperity is to continue
shelter
and
clerks to have
As of June
$5,079 for National City at the
What
If
weekly
f
acquisition of Bank of Manhattan by Chase, if it had been
^accomplished, would have made the Chase the largest bank in
point of deposits in New York City, surpassing National City
two
•
that,
wages
The
Bank
business
next
depression.
in view of the
•'
••
i
reason,
ing of the negotiations. As the discusions continued on Tuesday
"legal obstacles" arose which resulted in the termination of the
\:
the
of
cause
sales
quiring
tan stock on Monday by three points, was possibly one factor
which resulted in the premature announcement on Monday even¬
;V-'
a
essential. This requires more work
-f
Friday and the subsequent rise of Manhat¬
-
be
more
a
Sacco, Boyle With
less
bolted!
Upon
at the end of last week, there had been no indica¬
was a candidate for merger or consolidation.
negotiations.
in
locked and
tion that Manhattan
on
estate
They
was
but until the stock of Bank of Manhattan began to show consider¬
This strength
results
him
City of Glou¬
more
new
year.
are obliged to lay off
This
unemployment
employees.
one
the
the New York
the unusual features.
acquired by Manufacturers Trust. Since
that time there have been rumors of other negotiations by Chase
able strength
the factories
ing
pay."
offices and all
unsuccessful earlier this year in its efforts to obtain
Brooklyn Trust which
rent
three
real
Monday announcement and the fact that Bank of Man¬
was
could
the
even
loses
while
dent would lose
purchasing power
following and so the trouble increases.
Saturday, we Working fewer hours may easily
was
ing field, the fact that discussions had progressed far enough to
hattan
by a Boston friend
find* a cottage in
generally known that the Chase Bank was
expand its operations, particularly in the branch bank¬
anxious to
Advocates "incentive
Yes,
cester
tax
for the summer. On the
to end the negotiations.
necessary
was
help
Gloucester
Tuesday that because
on
essential.
are
announcement on
negotiating to acquire
was
to shortened
working hours and closed weekends,
Mr. Babson says such
policy results in losses to employers,
workers and public. Says, if
prosperity is to continue, more,
This Week—Bank Stocks
loss to
a
industries, from the
woodsmen who cut lumber to the
ers.
By
9
10
Inflation Costs Moie Than Taxes
IIARLEY L. LUTZ
By
Consultant, National Association of Manufacturers
In support
of a pay-as-you-go fiscal policy, Dr. Lutz points out
deficit financing is highly inflationary and the
damage done by such a policy, by lowering purchasing power
government
of currency, costs more than public's loss from
Gives data illustrating this point.
In
respect it is self-evident
one
that
inflation
costs
than
more
tors, notably a remarkable development of industrial output and
increase of the Federal debt.
The
steady cheapening of the dollar
as the debt increases is eventually
long list of
a
na¬
higher taxes.
of
decade
ily these swings
shall have allowed the dollar
we
a
to lose some part of the value it
Federal
balanced
a
Ordinar¬ budget and its corollary condition now has.
not great in
are
glimpse, at
of
deficit
no
financing,
we
■
■
may
record
a
nation
there
expansion
of credit,
self-correcting ad¬
private
will
be
assumption that
justments which
f
tle
ancially
There
cases
the
are
that
significant deficit,
a
in which
has
been
heavy, notably
Dr. Harley L. Lutz
French
the
regime
before
But
tax
the
peasants
"tax
of the
great that
of
much intensified by
was
farming," and
gance
the
prevent
French
the
on
the extrava¬
government was so
the tax sacrifices
even
people did not suffice to
steady deterioration of
the currency.
Inflation
port
taxation
to
sup¬
budget
are
mu¬
exclusive
tually
have
and
which
opposites.
We
therefore, in
actual case,
no
nation has tested the rel¬
a
This
rise of prices in
an equally steady
steady
general
means
decline in the value of the stand¬
ard monetary
dollar.
unit, in
the
Since
measure
expressed in
cline
money
the
our case
the
dollar
is
of
values
all
terms, its de¬
in
value
or
purchasing
is not limited to the com¬
power
modities which
price indexes.
extends
to
all
values
taxes are levied
this
cover
resort
no
mean
currently to
which
budget,
deficit
to
would
financ-
ing, there would be, obviously, no
artificial increase of purchasing
through government loans,
power
be no further dilu-
There would
of the value of the
tion
currency
by increasing the volume of public
would
There
debt.
be
credit.
some
demonstration
of
burden
and
the
must
relative
During the
fiscal
period
was
of
covered
1920-1930
years
sive there
also
ris-
.
_
by
inclu¬
unbroken
an
Federal
suc¬
budget
sur¬
be
trend'ta
trend
one
on
in
With
the
and
direeUon
artificial
no
increase
and
in
to
in
reduced.
While
there
was,.
of wages.
Powerful unions might
which
annually,
m0dest
woui(i
The
we
tend
crease
in tax
mary
0f
therefore
-a
inflation
increase
to
collections, the
at
the
equal
principal
debt.
(4)
Value
of all
transfer
pay¬
ments
(pensions, annuities, work¬
men's compensation, etc.), is about
$12 billion today.
Assuming the
dollar total,
same
would
power
in
the purchasing
be cut to $6 billion
terms of the 1951 dollar, and
$3 billion in terms of the 1939
to
dollar.
The Trends of History
The
foregoing
examples
of
inflation
of
the
destroys
past effort.
of
•
of
the fruit
are
a
fruits
The
which
value
There is
the
effort.
ent
in
way
accumulations which
erosion
conspicuous
are
the
similar
of
history
pres-
all
great inflations reveals that prices
tend
to
Hence
rise Taster
not
the
even
than
of
wages.
select, highly
favored group of organized work¬
ers could keep up, for
prices will
have
risen to higher levels even
during the delay involved in ne¬
gotiating a new contract or in
enforcing a wage increase by a
strike. The large group of work¬
not organized could not pos¬
sibly hope to keep even. And of
course, all who are dependent on
incomes
fixed
the
On
the
wduld
be
helpless.
other
sum-
currency,''' depreciation,
ther
it
rev-
tends to sustain that value. It does
10-year period would
cut into current income and hence
expenditures
enues over a
and
follows:
as
be
Every
the total cost for interest
about
the
would
hand, taxation to
maintain budget balance does not
amount
of
revenue
proby a given tax structure; impair the value of past accumu¬
assume*a 5%
annual in- lations. Rather, by preventing fur¬
dollar
be
like
seems
estimate.
ajs0
duced
If
; v
debt
ers
assumed that it would be 5%
and credit
to
demand
wage
induring this period, some growth continue
proceed from certain assumptions of private
mortgage debt, and, es¬ creases but their batting average
be
,on which different projections are pecially in the late
low,
for
employers
1920s, a tre¬ would
made over a future period.
mendous rise of private bank debt would not be receiving the large
flow
of
To establish significantly
cheap dollars that they
dif¬ for speculative purposes,
there
ferent results, it is necessary to was
a
remarkable
stability
of get from the sale of their prodacts
when
more
assume (1) a substantial period of
money is being
prices, with some decline of the
deficits, not less than 10 years; price indexes toward the end of pumped into the economy through
*
advance.
For the present purpose
it is
stabilization of prices within
a
£
crease
P §
'
of ^money
supply
elf-cor-
and
moderate
hardship of these two meth¬ pluses. The government was reg¬ the moderate, normal limits oi
ods in turn, as ways of financing
ularly reducing its debt and from supply and demand adjustment^
government during a given period. time to time Federal taxes were there would be also a stabilization
cost
given mili-
a
The rate at which the inflation-
he decadeofthel920s, but these
would
ative
A
The cost of
tary program has gone up by sev-
r^S t^e?Q2n^eilviitil^h^se
measurable
Federal Budget Surpluses
cession
of the government's program, a renewal of deficit financing on a substantial scale would
iead to a rising dollar cost for the
Same goods and services.
We have
seen this happen in the year since
the Korean war began.
In this
case
the
inflationary pressure
came
from expansion of private
scope
variations of the wholesale price erai billion dollars because of
are represented in
Rather, the decline index, and of the consumer price jng prices.
in money.
the
riod.
If
.
balanced
a
col¬
complete
,
Revolution. standard
the
load
of
short
trend
lapse.
weight of
unsound taxes
but
the
billion
dollar,
billion annually.
30 years
of
with the hypothesis
there must be
"
$20
would
we assume revenues of $80 billion
are usually gen¬
Assumption of a Balanced Budget and a first year deficit of $20 biloccasionally violent.
If
In accord with the hypotheses lion.
and economic¬ the
This accords approximately
source
is an
expansion of
ally by keep¬ credit through government loans, set forth above, we assume a 10- with the prospect for the fiscal
ing its budget there is no self-correcting device year period, and a budget of $80 year 19o3 under present tax law.
in balance. and there may be no cessation of billion for each year of this, peEven
with
no
change in the
being wrecked
a n
$110
1951
..
accord
substantial def-
a
icit is to be incurred.
on
'y.*V»
#
a
to
cut
the
this
cost
least
iTnhsiiJiviPori
Unbalanced
relative
of
be
of
terms
,
brief
this
From
entering into the index.
case on
would
productivity, and a steadiness of
$54 billion in. terms of the 1939
costs,
as
indicated by ; average legalized by an act of dollar de- dollar.
weekly earnings in manufacturing, valuation. There have been ru(3) Face amount of the Federal
But it can be said that the ab- mors of such an
act here,
but debt at the end of 10
years, ap¬
sence
of
any
basic inflationary thus;• far
these
have
been proximately $610 billion. It would
contribution through Federal def- "scotched." It is likely to happen,
be
worth
only $305 billion in
icit financing was a distinctly fa- though, if we let further substanterms of the 1951 dollar, and only
vorable factor in the relative sta- tial debt increase occur, on the
about $153 billion in terms of the
bilization of the currency and of ground that realism demands it.
1939 dollar.
The annual interest
prices that occurred.
This would then be true, because
to
a
consideration
of
Assumption of an
magnitude, nor are they proceed
tions which have been wrecked by always in the same direction.
;
5
A what may be expected to happen
the
excesses
Again we begin with the as¬
steady, continued rise of prices in in the future, first, under the aso f
inflation. general is an indication of an in¬ sumption that the budget is kept sumption
that the first year s
is
no
There
In
flationary cause. If the source is in balance, and, second, under the budget will be $80 billion.
There is
taxes.
Thursday, August 23, 1951
.
.
University
Professor Emeritus of Public Finance, Princeton
Tax
The Commercial and Financial Chronicle
>
*
(694)
-
into current capacity
to spend
or
„
and
(2)
substantial amount of
A deficit in only
a
deficit financing.
one
two
though
would
not
be
demon¬
ruinous notwithstanding
or
sizable,
strably
the
years,
of
amount
even
erosion
it
It
is
equally
credit inflation.
lar
continuation
purchasing
the years
that
true
Power index
=
(1935-1939
100)
=
1920
154.4
69.8
1921
97.6
78.3
'of the value of the
1922
96.7
83.5
1923
100.6
82.0
The
•
weak
point
a
year
or
now
advo¬
ation.
;be only
peak year
a
or
two of
ex¬
treme
spending, it follows that
corresponding taxes can be en¬
dured for this
vided
we
the proper
short
period, pro¬
to lay
foundations for carry¬
are
wise enough
ing this load while there
time to
The
of
the
act.
is
still
;
principal test or measure
damage done by inflation
is the value of the
currency. The
practical evidence of inflation that
most people see,
are aware of, and
by, is the general
prices resulting from the
are
injured
rise
of
creation
power
of additional
by
artificial
broadly-based index
or
retail
like
up
which
mal
prices will
and
are
down
produced
purchasing
Any
means.
of wholesale
show
wave¬
movements
by the
nor¬
variations of supply and de¬
mand for the various
commodities
ger to
79.1
dollar
95.4
80.6
the
81.6
81.6
If it be true that there will
purchasing power index is
reciprocal of the cost of living
index. A rise of the index figure
indicates, therefore, a rise of dol¬
lar buying power, and vice
versa,
the
noted
that, in general,
purchasing
in the
moves
the
be
index
power
tax
of
no
all,
increase in
a
most
dilution
an
form
increase
•
The increase
value
that
War
had
I.
been
eliminated by the short, sharp re¬
cession
of
move on a
1920-1921, both series
fairly even keel to the
year 1930,
when the depressed
conditions following the break of
1929 had begun to leave their im¬
pression.
r
*
■
We do not contend here that the
sound
nances
position of the Federal fi¬
accounted
showing.
There
alone
were
for
this
other
facr
and
services,
by
not
the
with¬
The
60
So"'
5
destructiveness
20
21
^2.6
69.5
23.1
would
be
„? ,2
®
24 2
cannot
be
5
}j}2-*
^.7
25 4
uo q
84 5
281
19,\
Qo\
q";
ia't
007
1
J1*u
of
This is
ent
equal to the pres-
debt.
Some
idea
a
pro¬
fully indicated, even by these pro¬
jections
and
estimates.
There
3
'
of
longed, substantial inflation is not
of
borrower
to
create
income
■
__
The
The
End
only
of
asset
the
„
A
Road
which
-
v govern-
Prices in the
World
been
of
demoralization
a
expressed in
of statistical exhibits.
would
severe
Particularly
the
be
that
kind
any
effect
on
saving.
The prospect of
a
certain
erosion
value
of
the
steady,
of
insurance, bonds, and other fixed
income
types of investment would
certainly be adverse to thrift. To
an
greater degree the people
the doctrine of
even
would'. abandon
than
exact correlation." The
influence
has
as
drawal of money income by taxa¬
tion.
*
almost
And,
pointed out, the real in¬
road into living standards is made
by government diversion of goods
oo n
Federal
the large budgets
as
necessary.
.J
1n
last
,
.jjj
So
•
will
often
so
*«««*»
The sum of the deficits for the
10-year period
is
$251
billion,
ment has against its debt is the
ability and willingness of the peostill influenced by pie to pay the taxes necessary to
Once
■
long
inroad
the
the
1920 were
inflation
of
5%
Ex-
of
contrary direction of through business operations from
price index 1 but which to repay the debt.
of the dollar.
a
both
this
the effect of such an increase on self-support through thrift and
the value of the dollar may be foresight, and thus they would be
had from the results produced by
this
present purpose is
the comparative steadiness of the
for
...
exposed,
are
an
<
_
*
the dan-
serious
is
public debt.
and
of
Receipts result-
Y "3
there
further dilution of the
The
billion
def_
ing from the Inflation
„
than
which all fixed investments
initia,
are
as
private debt, except that for paying personal consumption expenditures in excess of income, is offset by the existence of some form
of asset, such as property mortgaged or pledged as security, inventory acquired for manufacturing or training purposes,, or, in
some cases, the known capacity of
significant fact disclosed by
record
the
of
$20
to
wholesale
without
year
be
dollar.
The
will
rates
important
namely,
the
It
eventually
and all fixed incomes
100.0
83.8
mitting no certainty at all regard¬
ing the future world-wide situ¬
would
1927
86.4
be
in-
only
an
Increment
penditures and
be
Most
1926
only for
so, is that they profess
on this point while ad-
will
100)
79.7
95.3
it
American
of
annual
■
required at the beginning of the period.
:
81.8
96.7
on
of
a
in
character-
has
possible
lower
even
98.1
1929
are
financing
be
would
103.5
1928
that
•assurance
argu¬
at
1924
1930
deficit
ground
the
in
record
the
1925
the
ment of those who
cating
,
Dollar Purchasing
dured for 10 years or more. Again
there would be a certain erosion
Weak Point of Argument
:
Whole¬
sale index
(1926
that
icit
advance
assuming
years>
.
doubt,
no
the
II
Summary of Expenditures,
Re¬
ceipts>
and
Deficits
over
10
provide the necessary tax revenue
1920-1930
Year
be,
of
dustry for the past 150 years. To
the extent that this occurred, it
would
Purchasing Power Index,
ceed
a
I
;
would
productivity
Wholesale Price Index and Dollar
a
currency, but
the damage would not necesarily
be irreparable.
for
There
ized
TABLE
'very small deficit, say not to ex¬
$1 billion in the Federal
budget of today, would not be
demonstrably ruinous if it en¬
index
power
1920-1930 inclusive.
would
produce in the value of the dol¬
lar.
the decade. Table I presents the
wholesale price index and the dol¬
But
save.
TABLE
forced
the debt increase from 1940 to
the present. The overall growth
of the debt in this time was $213
billion,
mately
dollar.
and
there
approxi50% depreciation of the
a
We could expect not less
comparable degree of further depreciation from another
doubling of the debt. This would
a
mean that all values expressed in
1951 dollars would be cut in half.
With reference to the 1939 dollar,
the depreciation would be around
75%, possibly
The
e£fect
taxes for principal retirement, and
in time this resistance may extend
to the taxes for interest.
The pro-
this
£urther
de_
the dollar
upon various important forms of
savlng and £ixed incomes may be
illustrated
/1X
.
Tr
as
.
^ ^ Yal.ue
the
into
greater reliance
even
the government than is
pairment
virtue,
now
With the continued
case.
of- this
there
basic
would
im¬
economic
be
less
ca¬
pacity, and also less disposition, to
resist the trend toward
of statism.
final
some
form
And this would be the
disaster
which
to
inflation
surely leads.
more,
o£
coyer interest and redeem pnnci- cline in the value
pal. As the debt mounts there is
normally • greater
resistance
to
was
upon
o£
Stanley Pelz & Co., 40 Exchange
follows,
,.r
.
llfe
Stanley Pelz Installs
Quotation Board
in
Place, New York City, specialists
in
"dollar
stocks"
and
special
as indicated by the course Sj5.ce' aPP™xiniately $25® kilhon.
history,- is first, to lighten the ^1S wou^ shrink to $125 billion situations, have installed a quo¬
debt load -by reducing
the gold in terms of the 1951 dollar, and to tation board in their trading room
value of the dollar, and second, as $64 billion in terms of the
1939 on which the bid and ask prices are
a
final resort, outright repudia-
cedure,
of
douar
Here is the end of the road that
we
travel in
tolerating continued
'
<2)
recorded
Value of all private
approximately $220 billion.
debt,
counter
for
over
issues
This specialize.
in
240
over-the-
which
they
Volume 174
Number 5040
.
.
.
The Commercial and Financial Chronicle
whether
National Distillers
Forecasting the Market
Preferred Slk. Offered
investors
we are
ers we
should have
feel
to the
as
ing—is it
By JOSEPH LEVITAN
Ripley
man
headed
Co.,
investment
nationwide
a
issue
of
jointly
Inc.,
which offered
group
new
&
on
Aug. 21
shares
500,000
at
share.
per
The
stock
into
;
common
tion
at the
shares of
course
of
conversion
The
preferred.
substantially
.
share
offering
oversubscribed
the
Of
,,
from
was
and
the sale
the stock, $27,000,000 will be
applied to the prepayment of the
corporation's
outstanding shortterm bank loans and the balance
'
•
,
will be added to the general
the corporation,
of
nance
,
funds
largely to fi-
expansion in the chemi-
field.
cal
.
its
and
of alcoholic and
The corporation
produces and markets a broad
marketing
other beverages.
•
interested
us
and
in
the
•
and
of"
see so many
con¬
We want to
see
-buy,
or
conversely,
to
can
the
value
of other
things
see
in
s
rela¬
tionship is not
consistent, for
so many winds
money
of
while
action"
market
to
We should be economically
v
stronger
productive
past
our
the
at
\
'
•
than
the
expense
the
as
We
most
shall
of
our
allies
our
of
our
resources,
as
and
for
the
be my
stock
market?
is
as
in times of
glaringly demon¬
last two world
so
by
our
wars.
value of money thus be¬
less, and the amount that
money is allowed to earn (interest
far.
productive to
nat¬
will allow.
resources
war,
,
facilities
manpower,
ural
be
become most apparent
strated
We should make
(3)
great
a
glorify
needs
(4) We shall try to maintain
past, but always an indica-; stable prices, costs, and value of
tion of actions in the past.
This the
dollar, as much as possible—
writer, too, has evolved a system but not as a
primary objective.
of logic and techniques that help
(5) We shall keep taxes high,
him to measure and analyze cur¬ the cost of
money (interest) low,,
rent market action in its relation
and wages at a level to cause us to
to the past.
But to see the fetish have full and efficient production.
which a considerable section of,
With these goals inflexibly set,,
the investing and tradingpublic
what are some of the implications
has made of the so-called "internal
:
-
ripple in the
every
To put it in other words, we can¬
not
recent
of
terms
Since i t h i
bear
much
too
strong.
juxtaposition of forces in the more
distant past as against the more
"market,"
being
militarily
(2)
value,5 but only as
adjuncts, as measuring rods that
may help to indicate tne relative
with
by
USSR.
these
of
Some
tread¬
are
and
to their own limitations
weakness.
measure
.
what money
Products
Distillers
Corp. is engaged in the production
/
is, but natural to
money.
National
These theories soon be¬
economy.
we are
contrary. We cannot enslave our
current productive forces at the
altar of past savings and values.
principles and policies as tion.
This lessening of value of the
interpreted and followed'
by the administrators of this na¬ monetary unit has been histori¬
tion's affairs,
in order of their cally true from the days of the
Romans.
importance, are as follows:
Its base effects usually
they,
theories and techniques do have a
of
•
is our medium of
definite
These
fun¬
it
cerned
proceeds
on
Lists forecasting factors in
come prey
the books closed.
,
less valid than those based
exchange and we are all con¬
cerned with the value of money,
rate of 2.6
for each
are
trad¬
or
very
pressing needs for current produc¬
(1)
Since money
stock of the corpora¬
common
pool.
in¬
on
present market, and concludes we will have higher prices for
stocks and bonds.
is
convertible prior to Sept. 1, 1961,
.
forecasting, and contends theories which-depend solely
damental and long range factors.
cumulative preferred stock
$100
disturbed
ternal action of market
a
of
National Distillers Products Corp.
414%
Certified Public Accountant reviews theories of stock market
a
bull phase or a
a
phase—without
Glore, Forgan & Co. and Harri-
11
(695)
What
can
The
comes
cost)
also
becomes
This
less.
"dishonest deed" is perpetrated by
our
government
wants
to
because
not
it
be
dishonest, but as the
out of its dilemma of
only way
trying to stimulate and compen¬
sate for greater productivity and
yet not to become handicapped too
much by savings and by the val¬
ues
created
efforts.
by
our
*
past
needed
■
h-
'
Our continued deficits will cre¬
ate
inflationary
will
attempt
This we
sterilize.
But,
gaps.
to
forecast?
since it cannot be done 100%, it
1, 2, 3, not much will spill over in many ways.
except
to
say that Given full and continued
ill-will
blow
our
produc¬
economy,
one
is often re-;
;
Principal brand names under
cause
it
to
be minaed of the witticism of one of- the chances of a .calling-off of tion, plus Federal deficits, some
against
it
to
the forces that brought forth a
which
the
alcoholic
beverage
in
a
state
of our present-day comics.
of the effects will be:
unstable
and
While
products
are
sold
include Old
building up of strength vis-a-vis
flux, it is no wonder to find so riding in a train he passed a graz-.
(1) Greater consumer expendi¬
Grand-Dad
and
Old
Taylor
the USSR is almost nil.
many of us interested in this phe-, ing herd of sheep; he said to his
especially for the semiLet
us
examine some of the tures,
bonded
bourbon
whiskies;
Old
nomenon
and
intrigued
by
its companion: "Do you know how
luxury items such as drink and
Overholt
and
Mount
Vernon
implications of the other prin¬
intricacies, as well as trying to many sheep are grazing there?"
adornment.
bonded rye whiskies; PM, Bellows
ciples as it affects the market. I
find our Way profitably through, "No;
how
many
are
there?" think the
(2) Greater amount of savings,
and Mount Vernon blended whisinflationary implication
its many mazes.
"There are* 337."
"How do* you
voluntary
and
enforced.
This
of statements 4 and 5 will cause
kies; a number of straight whis"I counted their legs and
should benefit the mutual funds
Given this popular and wide¬ know?"
kies including Century Club and
stock prices to go higher.
then divided the total by four."
J
and investment trusts.
Windsor, and Gilbey's London Dry spread interest on the market and
The
government,
to
achieve
To sum it all up, we can foresee
(Needless to say that certain
"gin.- Wines, vermouths, cordials given this constant state of flux,
most efficient production, will not
and
uncertainty as well as the theories by their very popularity,
full
and
continuing production.
and carbonated beverages are also
be able to tax everything away.*
Our very life as a free nation
challenging possibilities and op-* tend to defeat themselevs.) : ; i .; We will have
produced. ■
deficits, and many
portunities it presents, is it any'
We will have
Very often we do not see the of them. Interest rates will have depends upon*it.
A wholly owned subsidiary, Na-5
wonder to see this "Bull Phase in;. forest
for
the
trees.
Especially to be low in order to ease the cost more inflation and inflationary
tional Distillers Chemical Corp.,
Forecasting" taking on added pro¬ is this true in the stock market.
gaps.
Interest rates, the compen¬
of the national debt,
f
produces
metallic
sodium
and
sation for the use of money, will
portions.
To be a little more We usually prefer a complicated
As for government borrowings,
chlorine for use principally in the
be
low.
We
will have higher
direct, is it any wonder to find so theory where ai plainer, and more it will
manufacture
of
happen this time as it hap¬
detergents
and
prices for stocks and for bonds.
many of us becoming more and elementary on^~ should be applied.
pened so many times past—it will
tetraethyl lead. U. S. Industrial
more concerned with our prospec¬
This
is the rule in science and borrow a better dollar and repay
Chemicals, recently merged into
tive future well-being and with" therefore should also be the rule
it with a cheaper one.
the corporation, manufactures and
our
savings,
in this uncertain in the stock market.
The inflationary battle is essen¬
sells
many
specialized chemical
volatile world of ours.,; No won-^
Turning away from those tech-, tially a tug-of-war between the
products including solvents and der
then,
if the market 4 and* nical theories that rely mainly current need for greater produc¬
plasticizers and raw materials for
"forecasting"
is becoming ever
Ross, Lyon & Co., 120 Broad¬
chemical processing. In June this
upon; measuring
market action tion and the cheapening{ of the
more popular.
As long as way, New York City, members of
mostly as an independent phe¬ value of past savings.
year National Distillers and Pan¬
the New York Stock
Exchange,
Too many books and theories in nomenon let us for a moment in¬ the
handle Eastern Pipe Line Co. or¬
pressure for current produc¬
forecasting have been published quire into those that rely more on tivity
is
most- paramount,
the will admit Samuel M. Ross and
ganized National Petro-Chemicals
for me to make any mention of tne historical
precedent in meas¬ current inflation, as evidenced by Zachary S. Ross to partnership on
Corp. to construct and operate
them here.
However, seeing so uring the current market.
"The greater costs, higher wages, and Sept. 1. On Aug. 31, Irving Ross
plants in Illinois for the extrac¬
high e r prices, will, will retire from limited partner¬
tion of ethane, propane, butane many nuggets of information be¬ market has now reached 263 D-J, therefore
Mr. Zachary
brought
to
our
attention, like 20 years ago; will it go higher always win out over the accumu¬ ship in the firm.
and other hydrocarbons from nat¬ ing
the firm's
many economic facts or not
"In very few pe¬ lation of past dollars and savings. Ross is manager of
ural gas and to manufacture ethyl seeing so
over
the
- counter
securities
de¬
gathered for us through riods in the past was the market This must necessarily be so, in
alcohol, ethyl chloride and other being
such great effort, but easily avail¬ so high," etc., etc. Here again we spite of our protestation to the partment.
products produced from ethane.
able to us, such significant finan¬ often find that we are paralyzed
Earlier this year National Distil¬
cial
data
available for meas¬ by the fear cast by our own
lers and Food Machinery & Chem¬
urement and
for comparison it shadow.
We take fright, we be¬
ical Corp. organized Intermounbecomes a little difficult to
see come uncertain and confused. We
tain Chemical Corp. to produce
All of these shares having been sold, this advertisement appears as a
why we should be constantly as say the market is high, but how
soda ash.
matter of record only.
perplexed and confused as to our high is "high"?
To tnis writer, it
Net sales of National Distillers
financial prospects.
seems
the best results to
most
and
U.
S.
Industrial Chemicals,
satisfactory market forecasting is
250,000
The Present Market
combined,
for
the
12
months
also
*
of
line of chemicals.
fortune
that
factors
fundamental
the
aside
leaving
extent
Joseph Levitan
or
more
tug
As
at.
can
to
be
items
added,
,
■
"
r
*
>
,
'
■
Ross, Lyon Admits
Two New Partners
.
.
-
1951 totaled $553,377,270 and net income amounted
to $30,690,218. Giving effect to the
ended May 31,
to
look at the pres¬
state of the market.
To imply
Let
ent
us
take
a
forecast its course
in the face of so many probabili¬
ties and uncertainties, of course
$76,160,000. Capital stock will con¬
wouldn't be true. Who can right¬
sist of 500,000 shares of $100 par
fully say that he knows how the
value cumulative preferred stock
millions of people who buy or sell
and 8,589,439 shares
of $5 par
stocks will react to the many
present financing, funded debt of
the corporation
will amount to
value common
stock.
that it is easy to
events that are likely to
occur
Be
Harris, Upham Partner
SAN
FRANCISCO,
Cal. —On
Sept. 1, Arthur R. Mejia will be¬
a
«irtner in the New York
come
Stock
Exchange
firm
Harris,
of
head¬
in the firm's San Fran¬
Upham & Co., making his
quarters
cisco office,
Street.
232
Montgomery
Mr. Mejia was formerly a
partner in Davis &
Mejia.
With French & Crawford
*
(Special to The Financial
Chronicle)
Ga. — William
H.
Brumbach has joined the staff of
ATLANTA,
French & Crawford, Inc.,
etta Street.
22 Mari¬
in
factors
our
present-day
birds-eye view
as to where we are headed, and
after making allowances for any
economy,
to get
occurrences
Shares
understand
principles
a
Ludman
knows
that
of
some
accidents that may
or
may
involved
that
contradictory
sible
for
it
becomes
the
as
impos¬
They
to make
author to
Fundamentals
up
of
pecially intriguing are those
theories that depend solely on the
What
more
Guide to Action
What
the
are
guide
future actions?
principles which
govern
our
is
the
conduct
as
a
nation?
that this
course
na¬
much
than they ought to, the more
and long-range fac¬
posts to help us set our individual
fundamental
tors
as
which we can
count
definitely
to
affect our
economic and financial policies,
"internal action of the market" for
that
tug at the heart of the
'
($1
par
value)
Price $3.75 per
share
and
present
our
their forecasts, disregarding
Common Stock
those fundamentals that
with the statement
so—this part of my
theory forecasted this event.
Es¬
I told you
windows
Concretely, then, what are some
pos¬
come
awmihg
past.
are so
it
post-factum
of:
WOOD OR ALUMINUM
their current
sible to follow them.
dAi
UbJc.
that he
of these theories are so
Corporation
not happen, to set a steady
and firm course and to stick to it.
Once we are able to grasp the
more
fundamental
factors
that
or
actuate us we can readily perceive
judgment that they do not change often.
of the facts as they exist now.
Thus our course can be steady and
No wonder then
that we are we need not be dismayed and con¬
fused.
It was through such pro¬
constantly exposed to an ava¬
lanche of theories that purport to cedure that the writer was able
to make successful forecasts in the
lighten our way. No wonder then
the foreseeable .future, or
Arthur R. Mejia to
in
to
fundamental
more
and
better
able
be
the
tion
has
set
Underwriter, and
and which we
should
course?
use as
For no
guidematter
a
National Distributing Group
of 34 Investment Bankers
upon
.
financial
Floyd D. Cerf, Jr. Company, Inc.
CHICAGO
120 S. La Salle St.
MIAMI
Pan American Bank
BIdg.
12
The Commercial and Financial Chronicle
(696)
.
.
this
Do We Never Learn?
Thursday, August 23, 1951
.
was
factor of importance.
a-
One world area—Latin America
—stands
above
out
the
others
in
this respect. More than 28% of the '
Denver &
Rio
"Since we are no longer able to channel meat into
regular normal, channels through the slaughter
quota system, there are growing indications of mal¬
distribution. This situation, of course, puts a strain
on
legal prices, and threatens to move the available
supply into fewer areas where higher—and illegal
—prices may be obtainable."
Grande Western
Judging from management state¬ performance may induce a more
regarding the recent freight liberal dividend policy—the com¬
increases
granted
by
the mon is now on a $3.00 annual
''
Interstate Commerce Commission, basis.
There
are
two major factors
and
noting
the
public
apathy
ments
rate
'
railroad
toward
would
securities,
one
perhaps be justified in the
conclusion that there is little hope
for
improve¬
earnings
real
any
that have brought
case
of Denver &
Rio Grande Western.
has
Rio Grande
&
Denver
heavily
a
structure.
Western
leveraged
Thus,
capital
share
common
are
prone
to fluctuate
widely. In the years im¬
mediately following the end of
earnings
fairly
World
War
the
II
record
was
of
source
a
territory. As
traffic
new
this
in-
dustrialzation has been augmented
by population growth throughout
service
the
and
area
contiguous
territory. The traffic picture has
been
further strengthened to a
major
tion and
only
What
highly lucrative transcontinental
particularly good for a variety
freight traffic. It is believed that
of
reasons.
By
1948,
however,
these
favorable
developments
common
share earnings had re¬
have not even yet run their full
bounded to $16.22, before sinking
other
and
funds.
reserve
they
year
the
In
dropped
to
$7.27, largely reflecting the steel
strike, spasmodic labor stoppages
in the coal fields, and a prolonged
maldistribution
more
time goes
as
a
,
the
on
ings in the current
first
half
of
1951
year.
gross
For the
revenues
1941
year
quantity
than
more
was
two
higher than the industry
average. Last year it was about
three points lower than the Class
27%.
,
Ex¬
A
with
42%
did
on."
with import or
ties
export quotas, limitation
tional
Industrial
Conference
Board.
The
of
reached
three
$3,112,792,
times
that
first half of
After
period,
1950.
preferred
stock
common
to
$6.54
for
share in the
a
realized.
It
is
obvious
that
the rate of year-to-year improve¬
ment in earnings can not be main¬
tained
six
in
the
second
half
Nevertheless, for this
year.
months
sons
are
as
a
whole
expected
to
of
the
second
compari¬
continue
favorable.
Certainly for the full
the share earnings should top
last year's results by a good mar¬
year
gin. They should be higher even
than the $20.06
earnings of 1943
and second only to the
peak of
$37.22 indicated in 1942. There are
many
analysts who feel that the
current
and
prospective earnings
through Aug.,
1951 in 37 states east of Rockies
earnings
through June, 1951. A
earlier only $0.58 a share had
been
High Level
contracts awarded
the
six months
year
at
/
$10 billion.
over
r--'VV:.'
t'\ V-V-'.;
\
«-v vy
Construction contracts
awarded
in the 37 states east of the Rockies
for the first seven months of 1951
set
a
with
high for that period
new
total of
a
report, which
was
$10,187,939,000,
on
record.
The
1950
figure
$8 billion plus.
1
Meanwhile
awards
total
total
slackened
with
compared
of
Selected Situations at all Timet
bit
June.
month
than
dential
of
were
19%
July last
contracts
1%
up
from
private
in
25 Broad Street
■
New York 4, N. Y.
Telephone BOwJIng Green 9-6400
Members Nat'l Assn. Securities
Dealers, inc.
The
was
Conference
In addition to obstacles emanat¬
ing
The
States
tion
income
on
Elimination
abroad.
of
double
originating
modifica¬
or
"the present burdensome
taxation",
works
year.
Resi¬
$548,144,000
June but down
and
utilities
at
were 5% below June
but 14% above
July a year ago.
65%
at
were
and
10%
over
$4,603,178,000
residential
$3,871,871,000
public
months of
last, non-residential
greater;
utilities at
seven
were
private
1950.
or
awards
down
2%;
works
$1,712,890,000
limited"
be
of
because
of
the
profit
About
11%
of
Import
were
and
up
or
Export
to
direct
most
frequently
stacles
of
the
istence
mentioned
direct
to
American
are
investment
firms.
respondents cited the
of
quotas
storage
facilities;
housing, recrea¬
shopping facilities for
of
and
power
of
Other Problems
Other
important
to
ment named is the limitations that
marily
earnings,
tance
placed pri¬
remittance of
also on the remit¬
but
other
of
income
payable
Problems arise
in
lack
the
and
in
dollars.
this
connection
This
limitation ranks second
obstacle
an
to
as
foreign investment
in all the main world
except
in im¬
areas
Africa, where it is third
portance.
The obstacle assumes
greater importance in what might
countered
regulations limiting the
remittance
of
earnings.
In Asia,
approximately 36% of the compa¬
Next in
importance and closely
with
connected
limitations
profit remittance
the
are
regulations
concerning the movement of
into
out
or
Somewhat
than
more
replies
the
to
the
of
a
cap¬
country.
fourth
■
disparity
obstacles
in¬
exchange rates,
importation of per¬
on
from
the
home country,
governments and
of nationalization
stable
of
emergence
programs.
\r.
Summary of Recommendations
In
addition
to
recommending
changes in the United States tax
laws to
increase
foreign
investments,
also
proposed:
"more
a
attractiveness of
respondents
encouragement
favorable
of
investment
climate";
;
guarantees of earnings
convertibility, for return Of orig¬
inal
investments;
against
guarantees
expropriation
tionalization;
the
discrimination
and
na¬
elimination
and
general
of
en¬
couragement of world trade.
"Obstacles to Direct Foreign In¬
vestment"
of The
undertaken by
was
Conference
Board
at
the
The
request
President's Committee for
Financing
Foreign
committee
Trade.
The
requested by the
was
President to explore means of in¬
creasing
the
vestments
flow
to
of
private
in¬
areas,
es¬
overseas
pecially to underdeveloped
coun¬
tries.
The
report,
Board's
neries
fi
Papers,"
was
Gaston,
of
of
the
of
the
"Technical
prepared by J. Frank
the
Business
in
second
Board's
Division
Economics, with
the
assistance of other staff members.
of
questionnaire
complain of the existence of these
Considerable
and
investment
multiple
sonnel
the
upon
foreign
restrictions
countries have
many
problems
direct
clude:
is
evi¬
existence
and
Hutchins & Go. Is
Formed in New York
the
dent
ob¬
severity of these
regulations
the different sectors of the New York City to engage in the
In Europe,
34% of the securities business. Partners are
companies reported regulations on Hurd Hutchins and Vincent M.
by
than half
More
or
employees, and inadequate
y';-*■".
foreign invest¬
regulations.
Quotas
Export or import quotas
develop¬
the next
of the group include:
of adequate roads, railroads,
tional
on
foreign in¬ nies encountered such
regulations.
vestments by the United States as In the other two world areas less
a
means of fostering
direct for¬ mention was made of the problem.
eign investment is recommended
Control of Capital Movements
by many of the executives sur¬
to
economic
facets
inadequacy
:\v..
most
second
obstacle
the
non¬
Development
of the country are
harbors,
from foreign countries, an¬ be considered the ;;industrialized
other complicating factor, in the
countries of the world.
opinion of many respondents, are
In Europe, nearly
44% of the
the taxes imposed by the United
replies s t a t e d that they en¬
down
July,
Africa
importance.: Some of the vari¬
ous
Remittance
on
Profits
July said profit prospects were incom¬
July mensurate with risks abroad.
$536,533,000
Economic
retarded
lack
remittances,
on
Limitation
ital
$295,153,000
contracts
•
at
over
Comparing the
1
in
in
Africa, it ranked as the
most important problem,
facilities.
opportunities.
the respondents
July 1950. Public and
this year with
A
The
by
Board.
absence
<
construction
a
$1,379,830,000
the
more
SECURITIES
was
3% less than June but 10%
were
RAILROAD
The report is the second
"Technical Papers" series;
the
prepared
2% from the previous month, and
down 3% from July, 1950.
For
Specialists in
ac¬
com¬
cording to F. W. Dodge Corpora¬
tion, construction news and mar¬
keting specialists. This was 23% veyed. '
greater than 1950's total, up to
The Board points out that for¬
this year the highest seven months
eign investments "do not appear
residential awards at
J - < 9
in
F. W. Dodge Corporation reports
for
requirements
amounted
Record
than
in the
more
reported
".allowing
dividend
or
investors
the
In
so.
second
and lack of trained personnel.
expenses
Board's
panies.
ion at
higher accruals, however, net in¬
come
before
sinking
funds
per¬
but in Europe it was tenth.
National Industrial Conference Board reveals 80% of American
firms with branches and subsidiaries abroad experience difficul¬
investment of all American
these
native
Only 3.6% of the investors in
Europe reported this problem, but
I average.
Contracts for New
Even
trained
of
great difference is evident in
.
interim.
.
experience
of
investors
in
Africa as compared with Europe.
penses were held under strict con¬
1951
'
the
specifically prepared at the re¬ with the remittance of royalties,
Moreover, as mentioned > quest of President Truman's
interest and salary costs and other
above,
further
improvement in Committee
for
Financing For¬ expenses chargeable to the foreign
trol,
highlighted
by
a
cut
of
operating efficiency has been a eign Trade, includes replies from
nearly five points in the trans¬ feature of the road's
operation, but payable in dollars.
operations in American
firms
with
1,097 Overall, more than one-third of
portation ratio. The overall opera¬ the current
year.
•
branches and subsidiaries in
98
the respondents with active in¬
ting ratio was reduced by more
foreign countries and holding "at vestments encountered this
than eight points. Taxes naturally
prob¬
least 54%" of the direct foreign
were
lem.
*
considerably higher in the
approximately
rose
r"1
18% reported this shortage.
Obstacles to Direct Foreign Investment
additions and better¬
points
'
|
.
sonnel, ranks fifth in importance
as
a
deterrent to foreign invest¬
ment.
Of all the replies received,
Retarded
lines
consideration is the trend of earn¬
''
'
'
,
being
Missouri
necting
the
of
insurance
Another labor problem, that of
unable to find a sufficient
;
Mess!
ments to the property, one of the
of the con¬
control of capital movements,
most
important
outlays
having
Pacific.' Last
been for dieselization of road op¬
Obstacles to direct foreign in¬
year,
without such external in¬
erations. These property improve¬
vestment, such as exchange con¬
terruptions,
and
stimulated
by
ments
and
the
new
equipment
trols,
labor problems,
Korean developments, there was
retarded
have resulted in a sharp increase economic
development
of
the
a rebound to $13.45 a share.
in the road's operating efficiency.
country,
a
r
e
encountered
by
While this past earnings per¬
Indicative of the progress made
nearly 80% of American compa¬
formance, and the extent of the
along these lines, the company's nies- with overseas investments
fluctuations in per share results, is
transportation ratio in the prewar which were surveyed by the Na¬
interesting, a far more important
strike
'
-
.
substantial diversion
a
the
spent in the past 10 to
sums
social
'
other
15 years on
complained
the
Lack of Trained Native Personnel
ment
major factor in the
company's fortunes has been the
huge
highest, but
Only about 11% of
Obstacles which revolve around
course.
The
Of
second
13.4%.
ing sectors
existence of
not
following
frequently
problem of companies
the replies from the two remain¬
American Meat Institute.
by the company's
participation
in
the
degree
expanding
security
in Latin America.
the
reports
plants. The
OPS, up until now, has not called attention to this.
"This diversion began almost immediately after
OPS imposed controls on beef late last January and
became progressively worse
beginning in June,
when the beef compliance order became effective.
"As serious black markets develop, the
meat
packing industry, complying with the regulations,
will find it increasingly difficult to continue beef
operations on anything like a normal scale. That,
obviously, will mean less meat in normal distribu¬
One of the outstanding ex¬ complex in Utah on the company's
lines. In turn this has meant the
amples of consistent and
con¬
tinuing earnings betterment is to establishment of other industry,
be found in the
most
the other three world areas, Africa
of cattle from normal commercial beef
year.
of steel, in the
social
matter of fact,
a
third
operating
pointing out publicly for
months that there has been
development
users
As
the
laws.
territorial
status. One has been the
is
mentioned
DiSalle
..,■:Michael V.
"The institute has been
earnings
and the consequent
clusion would
hardly stand up. change in the nature of the busi¬
however, when examined in the ness conducted. Of outstanding
light of the performances of many importance has been the develop¬
individual roads in the current ment of a major iron and steel
ment in the industry. Such a con¬
it
about this pro¬
basic
company's
!v-.Vv
■
mentioned
legislation.
; '-;a ■
change for the better in
nounced
the
>■
■:
replies
ex¬
about
the
Hutchins & Co. has been formed
with
offices
at
11
Wall
Street,
among
world.
problem
capital movements, but in Africa Brown. Mr. Brown was formerly
arising in the foreign country in only 17% mentioned it. In Africa manager of the trading depart¬
which their currently active in¬ it ranked seventh.
In both Asia ment for W. A. S. Wheeler &
Co.
vestment
is
as
This
located.
highest percentage
any single obstacle.
a
is
the
and
reported
for
fourth
at least onecompanies encoun¬
Latin America
of the
Earl Putnam With
tered such regulations.
Not
only is it mentioned more
frequently than any.-other ob¬
stacle, but it evidently is wide¬
spread geographically.
the broad
geographic
and import
areas
export
quotas are mentioned
frequently
problem.
more
In each of
than
,
any
other
Burden
of
Social
Security
W. C.
Legislation
Fourth
in
burdens imposed upon
the
existence
social
19%
the
business by
importance
are
W.
that
C.
Langley & Go.
Langley & Co.
Earl
B.
Putnam
of various types
insurance.
Overall,
of
associated
about
with
announce
has
them
become
as
of the replies reported that Philadelphia representative.
their
•
Volume 174
Number 5040
.
.
The Commercial and Financial Chronicle
.
vails
Deposits of Savings
Banks at New High
Deposits in the nation's 529
mu¬
tual savings banks increased $57,-
000,000
during
them
a
to
bringing tional American freedoms and
all-time high of rights, to inculcate respect for the
free enterprise system and to pro¬
mote Godly thinking.
Our cam-,
paign will thus provide an un¬
usual opportunity for direct action
to help, make the United States
July,
new
$20,457,000,000
at the #iose of
the
month,
ac-
cording
to
Carl
G.
today. The program of the
George 'Junior Republic' has spe¬
cial significance at this time be¬
cause it was specifically designed
to teach good citizenship by first
hand experience in government,
to teach the preservation of tradi¬
Freese, Presi¬
the kind of
dent
be.
of
the
National
As¬
sociation
Mutual
ings
o
S
f
President
and
Treasurer,
we
want it to
"Junior Republic," located
Freeville, N. Y., is a non-sec¬
The
a v-
at
banks
and
nation
I consider my participation a
civic and patriotic duty."
tarian self-governing youth
munity of 550
acres
with
com¬
a popu¬
(697)
lation Of about 125 teen-age
boys-'
all parts of the
nation.
It is the only co-educa¬
tional project of its kind, and is
and
girls
from
world famous
as
president and cabinet officers who
govern
this "smallest Republic in
the world,"
elected'annually.
Laws are enacted in a monthly
the birthplace of Town Meeting,
self government idea in
1895, when it was founded. Other
features of the unique program,
which was designed to help teen¬
agers
correct anti-social aspects
of their characters, are a system
of vocational exploration among
various trades, payment for all
work
and for attending school,
and payment for room and board
are
youth
out of
earnings. The Republic has
its
own special
monetary system
which is used exclusively within
its
boundaries^ and has its own
legal system complete with judge,
attorney general and lawyers.
A
Halsey, Stuart Offers
M-K-T Equip. Tr. Ctfs.
ject to authorization of the Inter¬
state Commerce Commission.
The certificates, 'which are un¬
conditionally guaranteed
as
to
principal and dividends by en¬
dorsement
by Missouri-KansasTexas RR. Co.
by
new
are
to
be secured
railroad equipment to cost
approximately $1,890,278.
The
equipment
will
consist
of
13
Dieselrelectric road-switching Ipr
Halsey, Stuart & Co. Inc. is of-'
comotives.
fering to the public $1,500,000
Missouri - Kansas - Texas
Equip¬
ment
Trust, Second Series 1951,
2%% equipment trust certificates,
maturing
13
v
With Renyx, Field Co.
(Special to Thb
Financial
Chronicle)
March
semi-annually,
DENVER, Colo.—John M. Doroshenko, Chester C. Heitsch, and
The certificates are priced to yield
Mrs. Helen Pfefferle have joined
from 2.25% to 3.05%, according the
staff of
ReqyX, Field ancf
to maturity. The offering is sub¬ Company, 1563 Washington Street.
15, 1952 to Sept. 15, 1966 inclusive.
Connecticut
Savings
Bank
of New
Haven,
Conn.
The
gain
Carl
G.
V
Freese
contrasts
with
a
1950
loss of $44,000,000 in
July,
third
con¬
marks
and
the
secutive month this year in which
deposit
increases have
Thinking
surpassed
those for the corresponding month
last year.
Deposits
July,
1951
whereas
less.
in
the
of
those
while
1950,
less in
3%
were
consecutive
deposited
the
withdrawals
were
1951.
Freese said:
the
on
Inventing
ex¬
month
same
both June and July,
commenting
Mr.
in
1950
greater
July,
fourth
amounts
ceeded
In
than
withdrawals
For
month,
in
17%
were
report,
"The substantial
gains in savings in these thrift in¬
Building
stitutions, amounting to $349,000,000
during the
are
an
last four months,
the public
indication that
scramble
for
is subsiding
more
bal¬
is developing.
If
this trend continues, it can have
a
salutary effect on price levels
and provide a strong curb to dis¬
ruptive inflationary forces."
and
that
goods
TO
MEET
COUNTRY'S
THE
TELEPHONE
NEEDS
sounder,
a
anced economy
The
of merely
Portfolio policy of the mutual
savings banks during July reflects
the changing conditions in the inFunds received
vestfnent markets.
depositors
were
supple¬
mented by drawing upon cash for
$37,000,000 as well as by reducing
U. S. governments by $61,000,000
and
this
and
total
in
placed
was
supplying good telephone service today. We have to be
always creating
from
mortgage loans and
responsibility of the ;Bell System does not consist
so
that the service
(1)
(2) corporate
municipal
securities, which
$145,000,000 and $29,000,000
rose
respectively.
The gain in mort¬
gage
holdings was the smallest
March and the reduction
since
U.
better and better.
grows
S.
the
governments
This process
telephone needs
smallest
since January.
So
to
Republic Campaign
investment
&
can never
stop, for the country's
must
are
us
continually changing and increasing.
always be thinking ahead and inventing ahead
to do and
in these days
the future. This is what the country looks
we are
doing it. It is especially important
of national defense.
partner in the
banking firm of White,
,
Weld
we
and building for
Kernan Heads Junior
Francis Kernan,
of creation
in
X
K
:
Co., has accepted Chair¬
manship
raising
the
of
$350,000
fund-
:<1;
campaign for< the* George
"Junior
Republic," which will be
in
September, it was
launched
announced
Chairman
The pre-eminence
of telephone research and manufactur¬
by Donald S. Stralem,
the Board
of
ing reflects
Direc¬
of
a
dynamic policy and point of view throughout
tors.
-
Mr.
Keman,
who
was
tenant-Commander
the
escorts
in
and
half
a
of
Atlantic
destroyer
three
the business. The
and put them into
for
during
years
THE CALL FOR PROGRESS
Lieu¬
a
World
and given
people needed to
action
are
come up
with
II, said the appeal will be of
special interest to businessmen.
"The
continuing revelations of
subversives
in
key government
posts, and of crime
syndicates that cover the United
States like a caul, have all pa¬
triots
the
beating their heads against
in
wall
there is little
can
that
because
good citizen
do about them between elec¬
tions
The
frustration
except
situation
that the future of
our
nation will
hands of today's school
boys and girls, and that it is im¬
portant right now to bring them
up; according to the highest prin¬
ciples of home, church and state
be in the
so
that
they
will
not
learn
to
accept as normal the lack of in¬
tegrity
in
We shall continue to meet the challenge of the future
and
a
be a good citizen.
points up the fact
government
that
pre¬
do
our
full part, always, to advance the welfare,
the strength
and the security of the United States of America.
BELL
ideas
constantly being encouraged
opportunity.
War
and industry
new
TELEPHONE
SYSTEM
:
t
J
14
\
(698)
"NThe Commercial and Financial Chronicle
%
'
Mr. Tripp remarked that "Dutch
Irving Green Opens
ROCKAWAY
Irving
Green
BEACH,
is
financiers
Y.—
N.
engaging
■
in
been
securities business from offices at
173
Beach
79th
for
have
time
some
interested
the
in
promising
investment possibilities in the fu¬
Mutual Funds
a
of electronics
ture
Street.
cluded
that
and have
the
con¬
approach is particularly sound and
practical for this dynamic growth
PENSION FUNDS, charitable, re¬ mies in operating costs not avails
industry.
They have been study¬
ligious, educational and other such able when production is at or in ing Television-Electronics Fund,
corporations and foundations will excess of rated capacity, the re¬ Inc., closely."
permitted to buy shares of the
Income Foundation
half
the
Fund
at
one-
and
maintenance
clude
in¬
economies
Such
noted.
view
repair AMERICAN BUSINESS SHARES,
savings and, for mills which are
non-integrated, savings resulting
from
a
smaller
dependence on
board of trustees of the fund, an¬ high-cost purchased pulpwood.
nounced
Tuesday, effective date
Net sales of
19 publicly held
for the change.
paper and paperboard companies
acquisition
regular
cost,
Inc., reports net assets on July 31,
1951, end of the third quarter of
its fiscal year, of $4.07 per share
compared with $3.95 per share on
July 31, 1950.
X
without regard to size of purchase,
Mrs. R. H. Axe, chairman of the
r
Prospectus
upon
investment dealer,
your
from
from
request
or
"This Axe innovation makes In¬
National
research
&
securities
corporation
120 BROADWAY, NEW YORK 5, N, Y.
Foundation
come
and
Fund
the
first
only mutual investment fund
increased 280%
between
1950
income
and
net
large strides
stated.
working capital position and capi¬
/-v.
"The
;<,y,
■:
tal
in strengthening
structure."
WELLINGTON)!
a>hini) ~
19281
has
been
honored
World"
of
by
with
"Highest Merit Award" for
a
the excellence of its annual report
to shareholders.
the
/
.
■
V■L:';:::■..)■i4
.
Th^s Mutual investment Fund is
to
the .only
receive
Canada
in
one
such
to
ever
recognition.
In
all,
5,000 annual reports from
companies may companies in practically every
buy mutual funds because they
be expected to attain a wider pub¬ field of business were studied
considered the acquisition cost too
by
lic acceptance than at any time in the
judges.
r
*
high."
" 7
The
In addition, Mrs. Axe stated that the past, the firm said.,
official citation declared
that
the
Fund's
the customary reduction in com¬
1950
financial
KEYSTONE Custodian Funds is
statement to its shareholders "was
missions, which vary with the
of the opinion that the long, 10size of the purchase, will also be
judged as among the most modern
year downtrend in bond and pre¬
from the standpoint of content,
applied to aggregate amounts of ferred stock
yields may be broken.
purchases made by any investor
In a letter to the shareholders typography and format."
some
securities of paper
.
.
.
.
Ml
.prospectus from
your
investment dealer
in several lots from the
in¬
same
vestment
or
PHILADELPHIA
2, PA
of
vided
investor
-the
written
statement
of
submits
a
intention
to
the
sales cost
normal
is
to
SHARES
A Mutual Investment Fund
your
dealer
or
CALVIN BULLOCK
4V4%.
of
a
the
for
week
a
one-vote
Monday
ago
margin of 106 out
needed
a
in
an
sented
105, and is presently
Attorney Generals office
opinion before being pre¬
the
to
Governor
for
his
signature.
The
the
Snowden
Berger
former
tee
investment
senior
sary
10
FUNDS
investing tlieir capital
in
that
in¬
loans,
for passage in House.
How¬
ever, the Snowden Bill is sched¬
uled for reconsideration when the
State
Legislature
Sept. 17. This last
on
session
the
of
State
Legislature
was,the longest since 1799.
in
bills
earlier
the
Pennsylvania State Senate.
PART OF THE record
production
of paper and paperboard has
been
(Series K1-K2)
COMMON STOCKS
(Series S1-S2-S3-S4)
The
♦
Keystone Company
going into inventories and indica¬
tions
are that "the
present rate of
production will decline, with con¬
sumption holding up substantially
until
your
ten
prospectuses describing
Organization and the shares of your
Funds.
:.....
the
statistical
be
such
you
/
,
|'„
industry's
earnings
on
from
a
lower production "would be less
than might normally be
expected
since a shareholder under
profits
cents
of
are
government
taxes
every
present
'loses' only
dollar
reduced,
with
week's
will
"a
add
cost"
to
article of
every
specific
prac¬
consump¬
of
or
that
the
As
are
far
as
will
be
ings
railroad
the
noted
added
that
bill
makes
the
tax
to
NET ASSETS of Eaton & Howard
Stock Fund
at
new
a
<
mark is regarded as
since some states re-
•
important
a
other
proving
shares by
the purchase * of Fund
certain fiduciaries.
of
assets
923,792
Eaton
Fund
were
O 6
&
Howard
$73,536,301
are
that the
to
level
a
increase
of
Dec 31, 1950.
on
INVESTMENT
Dreyfus Fund
1951
showed
mon
stock
portfolio
increase
an
investments
in
the
in
included,
more
subject
to
a
price
rises'
the
stock
position would be approxi¬
mately 73%,
the
up
11%
continue
holding
largest
about
about 8%.
Utilities
Public
L.
VALENTA,
Natural
of the Fund's
Fund,
i;
'
passes
Jr.,
fund,
Fund,
Inc.,
now
(
Fund
President,
announced.
which was organized
$105,000
of
original
be two years
old Aug. 25.
27/ie
"Seor-^e
PUTNAM
FUND
&ooton
Putnam Fund Distributors. Inc.
50 State
Prospectus
31
last, $665,605
$109,500
the shares
Street, Boston
upon request
I
were
by
to the public.
that
added
in 23
more
Loud, Abbett & Co.
New York
—
Chicago
—
'Atlanta
Los Angeles
—
first made avail¬
the
Mr.
outstand¬
ing shares of the fund
held
May
on
Nov. 30, 1950
Feb. 23, 1950 when
on
generally
Valenta
on
were
now
than 1,100 investors
states.
Natural
Resources
Fund
pres¬
ently has investments in 76
panies operating in
a
com¬
dozen
natural
Natural
resource
Resources Fund
Mr. Valenta
continued,
are
dif¬
fields.
shares,
grow¬
ing in popularity because of the
in
companies
basic
owning their
He pointed
own
shares
ap¬
materials.
that
natural
pear
well
vestment
resource
suited to
meet the
requirements
of
out
in¬
those"
wishing hedge against inflation.
A
Fund
was
-
cleared
may
be obtained from
investment dealer
200
TELEVISION
Diversified Investment Company
Prospectus
or
your
local
The Parker Corporation,
Berkeley St., Boston 16, Mass.
ELECTRONICS
by the Nether¬
FOUNDED! 92 5
The
:
with
.
capital, will
an¬
totaled $1,576,000 on Aug. 7
sur-
$4,000,000, Harry H. Hagey,
nounced that the net assets of the
compared, with $1,308,165
invest¬
Farnham
Fund, Inc.
L
?
NET ASSET value of Stein Roe &
Affiliated
LORD, ABBETT & CO
be
ments.
de-
to
President
Resources
to
representing
indi¬
investor-taxpayer actually
pays in taxes, but lumps all stock¬
holders into a single "20% class"
for withholding purposes.
of
stock
common
level
than
.
section, the Fund's holdings of '
Phillips Petroleum bonds, which
are in the process of conversion to
common
stock, the total common
level of 1950.
and
•
Fund's assets. If there were to be
earnings of the western roads par¬
ticularly will make a very satis¬
factory comparison with the high
volume
the '
published report on June 13,
1951 of approximately 6% of the
pretty satisfactory.
opinion that 1951
vidual
FRANK
com¬
since
last
He expressed the
ness
of
of July 31, '
as
earn¬
Mr. Barringer observed that it
is the outlook for continued busi¬
.
compared with $62,-
July 31,
THE
*
.
Balanced
the
.
fund be that size, among
qualifications, before ap- ?
quire
on
July 31, 1951, were
on
high of $10,008,947. The
$10,000,000
>
fund
..:
than
road stocks.
stockholders
mutual
a
.
$1,165,000 of its net assets in rail¬
own
attempt
no
what
past
more
shares, including Investors Stock
Fund," shareholders were told.
absorbing the loss of
earnings subject to ex¬ lands Bank for listing on the
Stock
profits taxes," the study said. Amsterdam
Exchange,
Moreover, the industry can be ex¬ Chester D. Tripp, President of the
pected to achieve certain econo¬ Fund, stated.
cess
State
has
Fund
Delaware
77 cents of
City
this
to threaten
seems
costs
concerned,
executive
"in
added,
;
news
of
that
the
continu¬
" will be somewhat helped.
posses¬
expenses
in which
he
ing,"
mostly will be
paid by the consumer while rail¬
road
earning power specifically
appeal of ownership of securities;
earnings
Address
as
However, the adverse affect
23
.,
time
the companies
the
capital- investment,
he said, and the effect of this will
claim refunds due
you can
in
measurable
tion
Bullock.
excess
Name
and
tax
until
money
your
bubble
increase
tically
ferent
the
me
The
position of the industry has been
corrected," according to a review
of "The Paper
Industry," issued
by the investment firm of Calvin
50 Congress Street, Boston 9, Mass.
Please send
such
as
have
(3) increase the
you;
able
BONDS
PREFERRED STOCKS
time
and
passed
of
The
neces¬
reconvenes
sion
relate
votes
Both
(Series B1-B2-B3-B4)
dividend
to
government
to
without
bank
105
the
the
trus¬
open-end
or
of the
Pennsylvania
Certificates of Participation in
identical
except
companies
capital
lacked
Custodian Kinds
Bill,
Bill
specifically permits
vestment
Keystone
PROPOSED
freight rate increase
ously boiling pot of inflation," in
his
weekly report to directors.
types of securities.
THE
railroad
"another
rates this past spring, new
money
withholding bill now before Con¬
they pay only 3% instead of the gress will affect the tax problems
usual 6%; from $50,000 to $99,999 of American securities investors in
the cost is only. 2%, or half the
three ways, according to the curregular 4% rate. .At $100,000 the rent issue of "The Stock Fund In¬
special rate drops to 1%, at $250,vestor," quarterly publication for
000 the cost is V2% and at
$500,000 the 9,600 shareholders of Investors
the cost is only
1
Stock Fund, mutual fund affiliate
The change in the sales
charge of Investors Diversified Services.
structure required an exemption,
The tax bill, a proposal to re¬
under
the
Investment Company
corporations
to
withhold
Act of 1940, by the Securities and quire
20% of all dividends paid and turn
Exchange Commission.
the funds-into the U. S. Treasury
THE
BERGEIt
"Prudent
Man"
as taxes, will:
"(1) further com¬
Bill
passed the Pennsylvania plicate your tax return; (2) allow
with
New York
INVESTMENT
the
From $25,000 to $49,999,
State House
Established 1S94
One Wall Street
D. MOREAU BARRINGER termed
bond and preferred
8%%; to
the privileged group it is reduced
investment
Income Preferred Stock
offerings have
make purchases aggregating a de¬
been at higher rates, which would
fined amount of not less than
appear to mark the end of many
$25,000.
years of declining yields for in¬
On investments up to $24,999.
vestors in these
DIVIDEND
Prospectus from
of its K1
dealer, during a period
Fund,
the
investment
company
exceeding 12 months, pro¬ said that since the increase in
not
-
reversal of these conditions."
New
York for the third successive year
its
of
Because
Ltd.
"Financial
the
effect of this
broad financial improvement the
bring down the cost
of acquisition of the Fund's shares industry has achieved in the last
decade, together with its success¬
to non-profit institutions. Many of
these institutions have refused to ful introduction of new products,
is
move
B»wnr>
rjm
practical
Corp.
increased
310%, according to the analysis.
Simultaneously the industry "made
granting special concession to non¬
profit
institutions,"
Mrs.
Axe
"k
Net
International
COMMONWEALTH
1940 and
Thursday, August 23, 1951
.
clines, that is supporting the pres¬
ent level of stock prices.
"Noth¬
fund
mutual
By ROBERT R. RICH
be
.
.
.
52
Volume 174
Number 5040
Indirect ConlroEs Adequate for
Stabilization!
Beware of Deflation!
At annual meeting cf General Mills, Inc., Chairman Harry A.
Bullis tells stockholders it appears unnecessary to place reli¬
direct wage
ance on
scale
permitted to curtail
versity
agricultural
-
advises "hold your
freedom.
our
who
one
of the Board, at the annual
the
the
out,
all-
is
full-scale
need
no
accumulate
to
have
be
freedom."
"Our
in
"There
been
has
great
a
eral
Reserve
bonds
ment
support
at
par,
to
and they
long
credit
moderate
of
given
as
as
the
restrictions
em¬
States economy
United
our
sound
a
is il¬
it
by the fact that during
the last nine months capital for¬
lustrated
mation—goods made today for use
tomorrow including the building
at the astound¬
on
ing high rate of $90 billion per
Approximately one-third of
the total was in consumer durable
year.
George, take plenty of pot shots.
always wise, however, never
to 'hit
"be
strength
known.
Bache
ex¬
&
New
York
cessive in view of what has been
New
York
overlook
not
citizens will have to pay
the full
price of the huge war production
None
in which we are engaged.
of
the
productive effort
which
goes
program
.
ment
have
can
military equip¬
into
part in
a
raising
standard of living.
our
missed seeing the extravaganza he
"The
Greatest
Show
on
.
fied, though, with ♦what they have,
whether it was the inflation of the
past five years or the recent
a
as
"During the period from June,
to
March,
1951
wholesale
deflation
20%
spread
gloom than we are readv to
-admit."
The economist doesn't go
ja^ng with the crowd that think
want lower prices for the
articles they buy. He said, "When
they
gets what he thinks he
wants—low prices—then everyone
.everyone
Municipal
a
iurther
about
rose
As
barometer these
business
a
state
of
business.
The
overall
is likely to make an
ticular business.
;
round-up
He reported a recent
ground of 30 years' experience in vof Wall Street economists that re¬
the municipal bond business, the
vealed eight thought business was
last 10 of which he has spent as
and
better, eight thought it worse
Vice-President of Coffin & Burr,
one
.
Inc., will be manager of the new
-drivers
Associated with him
18%,
found
it
in
j ''Recently there has been a de¬
in
the/ general
level
of
wholesale
prices, and
in some
cases future contracts in food and
textile markets are selling at dis¬
counts under today's spot prices.
cline
in
effective
and
arranged
a
peace
is ulti¬
mately concluded, and if Congress
works
there
out
is
a
a
strong
the pressure
ing
cm
be
prices will
If
this
can
satisfactory tax bill,
that
likelihood
cf government spend¬
held
down
not rise any
be
that
so
further.
done, it will
be a
remarkable achievement when we
consider the huge
armament
increase in
expenditures.
re¬
exe¬
vate
welcome such
actual
slump
a
in the form of
a
SAN
defense
general
spending
which
fall.
associated
dustries and is not likely
Mont¬
Pearson
Street. Mr. Cooper was
previously in the trading depart¬
ment
of
Walston,
Hoffman
&
in¬
to," Dr.
concluded.
^
Holt-Collins Add
:
...
(Special to The Financial
liam
(Special to The Financial Chronicle)
staff
SAN
FRANCISCO,
Calif.
—
Henry E. Gundling has become
af¬
filiated with Hannaford & Talbot,
California Street.
■
\r
V.
of
Building,
Murphy
Holt
has
&
members
Francisco and Los
Exchanges.
relief:
living, or even
discover, however, that:
Most
would
of them
soon
exaggerated deflation is even worse than the relatively moderateinflation experienced during recent years. Quite possibly the de- "
flation, unless checked effectively,
might assume disastrous pro-:
portions, and would create troubled conditions suitable for blood¬
less Communist infiltration.
Even
reject
so,
any
:
■
*
:
•
statesmen to
it would be difficult for the Western
apparently genuine
offer.' Notwithstanding the
peace
might- achieve its aim
risk that the.pew Russian policy
byfcreating
exaggerated slump, the democratic Governments have no choice
an
but to accept terms
which,
on
the face of them, appear to be accept¬
difficult if not impossible.
able. Their rejection would be politically
What they are entitled to
is to insist
tangible safeguards on the
on
genuine character of the peace policy, instead of
scrap
of paper. For instance the restoration of the
economic
Eastern
arms
of
independence
Satellite
the
limitation agreement.
-
-
accepting a mere
full political and
Central
of
States
and
indispensable condition of an
Europe should be made an
1'
C.
Leonard
N. Y.
Greene,
in
committee
the
of
Chairman
of
charge
arrangements, announced that the
Tourney Sept. 25
John J. Mann, Board
President's trophy and
man
Chairman
the New York Curb Exchange,
of
has
announced
annual
that
eleventh
the
Curb members' golf tour¬
nament and dinner would be
of the
and
the Chair¬
Board's trophy would
be awarded to
member low gross
low net winners respectively.
Other prizes will be
presented to
guest winners.
held
Members of Mr.
Greene's com-
Tuesday, Sept. 25, 1951, at the mittee include Jack Kassel, John
Sunningdale Country Club, Scars- H. McDermott, Joseph A. Mcdale, N. Y.
Garry, A. Philip Megna, Joseph
on
The
non
-
Curb
retirable
Ex¬
change Golf Trophy, won last
year by Hank Hagen, will again
be placed in competition.
Petta,
Francis J.
F. Shelare and
of the
Purcell, Robert
Francis X. Gaudino
Exchange staff.
82,900 Shares
,
joined
Collins,
of
.
MONTANA-CANADIAN
OIL CORPORATION
Common
Stock
Piice $3.00 per
the
the
Russ
San
Angeles Stock
•
Members
may
B.
S.
Chronicle)
Calif.—Wil¬
SAN FRANCISCO,
With Hannaford & Talbot
.
an
Offering circular
gomery
Goodwin.
it would bring them long-awaited
as
has not
trickled down to innumerable
FRANCISCO, Calif.—Jack
with Hill Richards & Co., 1
;
world would
cessation of the rise in the cost of
the highly concentrated
•
(Special to The Financial Chronicle)
Einzl*
"
however," sur-
recessions,
| rounding
With Hill Richards
:
no
There are many pri-
depression.
.
is
"There
pression.
buy and sell orders in the
general municipal bond market.
-
is
to
cute
■
Consequently, if a truce in Korea
position
Paul
..
-
be
Dr.
and
"fine"
as
.
rearmament.
conceiv¬
Two truck
the fence.
on
was
do,
Hundreds of millions of consumers all over the
recommends truck driv¬
ers.
and says there is great con¬
fusion
among
them
and
the
professional economists concern¬
the
to
gesture
to any arrangement that could
.
of
inclined
days he
Sept. 4 of "appraisal whereas the former ap¬
Bond
Department praises only the state of his par¬
step in the firm's
policy of expanding its facilities.
Darnall Wallace, with a back¬
department.
people on
many
are
propaganda
times and depression."
r
will be Robert E. Brindley.
"lousy."
and the
Bache states in its announce¬
cost of living increased approxi¬
He explained the apparent con¬
ment that the firm expects to be
mately 8%. We shall have to ac¬
fusion among the informed as due
active as a 'member of groups
cept those - price
increases and
for representative new •to the Met that we have active
consider them as part of the cost bidding
issues of municipal bonds, and to business surrounded by mild de¬
prices
Atlantic
want—hard
gets what he does not
an- ♦latter
Exchange,
has
15%-
more
Co., 36 Wall Street,
City, members of the ing
Stock
which
as
assume,
another
just
fall of the demand.
an
Earth," the combination of rising
the opening on
ncunce
a
1950
people
American
the
and let its power be put in an appearance five times
Unfortunately we
still ;during the last 150 years.
a
'power world' and not
"Some people are never satis¬
pansion probably has not been ex¬
However, we must
the fact that our
-
calls
•
accomplished.
of
most
Municipal Bond Dept.
price level which
industrial
encourages
iprices and rising buildingl during
"It is not possible to predict the the past five years.
future, but surely this is not a 4 ■ "This combination has brought
time to be discouraged; rather it .prosperity to town and country
is the time to take account of our and it's a combination that only
Significance of Price Trends
this
deflation,
Dr.
him with a
you hit the draffon in a
spot on the first shot."
after
goes
marks
on
pri^s. +Heir le^el remains abnormally high. It , '
.
'
;
undoubtedly discounts further abnormal demand for national defense
requirements. This means that, should that demand bel*
checked through some international agreement for a limitation o#
armaments, there would be every likelihood of a fall—the extent ,
of which would far exceed the proportions justified by the actual1
Dr. Pearson contended that
•
accompanied
George
sure
vital
one-half of the world's total.
in
;■
.
St.
would-be
any
Pearson
4
the production of which live in
gives us our present civilian in a world which is peacefully
strength.
Another third was in <a*aerecu
.by keeping our industry
producers' durable goods, and the and our incentives free, we are
remaining third consisted of all
showing that free men can do the
construction, plus the increase in- best
job. It is important that we
inventories. Measured in this way,
continue to emphasize the advan¬
our
gross
capital formation has
tages of a free economy in which
been at a rate of approximately
free men, free labor, and free en¬
30% of total gross national pro¬
terprise can continue to produce.
duction, which is now more than
Nothing short of full-scale all-out
$300 billion per year. Capital for¬ war shoiTd be
permitted to cur¬
mation in the United States, as is
tail our freedom."
true for our total steel production,
now
accounts for approximately
rise
vital spot." ;
a
To
who
to
the
of
is
policy
a new
from a sudden cessation of re¬
stockpiling, not only because of
unproductive demand for raw ma¬
terials and manufactures, but also through the
psychological effect of the turn of the tide.
In spite of recent falls in raw material
think
a St.
you
Truman
President
to
be
fall
the
Looking Ahead
goods,
"The
appearance
letter
easily result
It is
to place much re¬
and price
1
f
for
opinion
impossible to form an
yet
as
Shvernik's
armament and
flation and must shoot the beast,
if
outlays.
pediency, for the sake of preparing the way for
a slump in the United States, Britain and other
democratic
countries.
Such
a
slump
might
they will be cared for.
should play the role of
assume
to create a
acceptable to the Western Powers.
Quite possibly the Kremlin may this time really
mean
business, not because of any genuine
change of heart, but for considerations of ex¬
"When
and
mistake to
a
move
that Moscow has not the least intention to
ably
,
you
it
agree
on," Dr. Pear¬
these basic
so
of
misiaKe
and
coun¬
J- "Everyone thinks he ■ fears in¬
direct wage
on
controls.
•
machinery—
of new factories and
has been carried
unnecessary
liance
good
a
a
that
producers are prosperous," he said,
"other groups need have no fears
govern¬
in
of the
cause
at.
aim
for farmers,
manufacturers
and
asserted.
son
start to bodied in- regulations X and W.
our
expanded program for mili-1 The effect of these controls has
tary production. We now have a been reinforced by heavier taxes
broad base of private industrial :nd—during the past four months
expansion to support the increase —by increased savings of individ¬
in production of war goods that uals. I believe these general and
will be needed during the. coming indirect controls will serve us well
year.
The strength and power of in the period ahead and will make
has
is
bankers,
consisted
and
the
as
"Inflation
f
mainly in the withdrawal of Fed¬
deal of
expansion in private industry dur¬
ing the past year, and that expan¬
sion
inflation
who
be
be
the part of Soviet Russia, aiming
relaxation of the international political tension.
It would
both- sides
try's ills should "hold their fire."
wholesalers and
which
at
be
deflation, and
those
that
Eng.—It is
President
the beginning
Agricultural Economics,
threat to the nation
declared
may
LONDON,
real
is not inflation, but
Un¬
appear
have
of
may
whether
A. Pearson of the Depart¬
F.
warned
These general and in¬
controls
direct
Dr.
ment
a
very well,
continued as
be
Uni¬
Cornell
it
propaganda, since it
says
increased civilian demand to offset lowered military
versity, Ithaca, N. Y., on Aug. 13,
produce
to
mere
economic
New York
the Agricul¬
at
Russian President Shvernik's letter to
it is
business
slump in U. S. and other democratic countries, through cessa¬
tion of rearmament expenditure. Holds it dangerous to rely on
President Truman,
■;
as
leading
attending
Seminar
tural
supply of consumer
operating
necessary.
Harry A. Bullis
a
posiiion," Mr. Bullis stated.
sound
'bankers
good thing to
established
been
should
econ¬
is
omy
a
a
high rate.
general
controls
"The
price controls,
which "curtail
deflationary.
was
goods at
war
and
wage
-•Addressing
leaving
essential
is
before starting
goods
employ direct
our
somewhat
doubtedly it
war, there will
be
which
functioning of our economy.
factories were pressed
Cor production,
inventories were
high, and prices were rising. To¬
day those inventories are going
into consumption, and the effect
ab¬
of
prices while
flexibility
any¬
inflation
gen¬
helped
have
to the
future,
sence
that the
controls
A year ago
for
in
credit
stabilize
to
and contended
that,
convinced
am
eral
fire" to
at
Dr. Einzig, referring to
troubles.
/
meet¬
By PAUL EINZIG
economist,
country's
Controls—Direct and Indirect;
"I
ing of General Mills, Inc., held in
Wilmington,
Del., on Aug. p*
21, expressed
optimism
shoots
of
cause
In his customary talk to share¬
holders, Harry A. Bullis, Chairman
Russian Peace Offensive
Dr. F. A. Pearson, Cornell Uni¬
and price controls.* Says nothing but full,
should be
war
15
(699)
Chronicle
The Commercial and Financial
...
be obtained from the
undersigned
CANTOR CO.
Natl Ass'n
Members
share
New
York Security Dealers
Assn.
New York 5, N.
79 Wall Street
Tel.
:
of Securities Dealers, Inc.
WHitehall
4-6725
Y.
16
(700)
The Commercial and Financial Chronicle
Holds Politics Now
Canadian Securities
Control
mist,
The
exchange
Canadian
S.
U.
position
dollar
in
the
of
relation
gives
to
indi¬
cation of further improvement be¬
currency
every
is
the
prospect of bumper grain
A recent report issued by
crops.
the
Bureau
Statistics
of
that "Prospects for the Western
developments. The wheat crop continue to be gener¬
Canadian Bureau of Statistics has ally
favorable despite localized
reported that Canada's exports to hail damage in Alberta and Sas¬
the United
States in the first six
months of 1951 passed the billion-
dollar
mark
for
the first time
in
history.
Canadian
shipments in the six
jumped $200,000,000 to a
high of $1,117,700,000—63.7
months
new
Shipments to all countries
to
katchewan
$1,740,200,000
causing
jump
seeded
the
Part of this increase
be
can
as¬
expanded volume. Earlier reports
had
indicated,
Canada
world
lot
a
selling and that the
exports
that
from
the
than
more
she
was
between
gap
and
imports in the sixmonth period may run to about
$340,000,000.
•
*
The Bureau
\
'
storage
bumper
of Statistics report
shows, however, that domestic
than
More
crop.
ex¬
ports maintained its pace, increas¬
ing to $312,500,000, up $23,000,000
from last year's $289,200,000.
Shipments to the U. S. rose to
$190,000,000 from $179,300,000, but
exports to Britain slipped slightly
the
for
space
156,-
000,000 bushels of last year's grain
crop was still in the country ele¬
the
terminals
as
vious
75 per cent of the
was
"visible
carryover" of 162,000,000
bushels
from
last year's wheat
crop. Most of it is slow-moving,
low-grade
wheat
unsuitable
for
$51,300,000 from $52,800,000.
Shipments to Latin-American
countries also
Officials say prairie farmers will
grain -this
more
deliver
can
fall
than
country ele¬
to
vators and until the
transportation
situation is clarified there will be
L.
noted
housing
■200,000
Europe,
i
n o m
i nfl
The
six-month
with Britain
prices
sharply,
the
shipments
not
was
Though
export
Shipments
American
Canada's
totalled
to
.
slightly from
the
20
countries
past.
1941.
Highest
the mid
bushels.
Wartime peak,
outlets
were
in
peacetime
was
home
affecting
Britain
to
already
purchase,
worth
wheat in the
ning Aug.
has
new
than
more
of
Canadian
crop year
begin¬
making capacity for the entire industry
period
v
This will amount to about 113,-
000,000 bushels—18,000,000
form
of
flour—and
first
the
controls
gage
in
there
is
the
conventional
con¬
j
controls
con¬
on
judgment
the
of
how
The amount of electric energy
and
lacking
is
to
it
may
figure of $9,153,000.
113,000,000
principal
export
newsprint—rose to $47,000,000
June
from
—
in
$39,200,000,
bringing
$248,500,000
Woodpulp, an¬
the six-month total to
from
$235,400,000.
other
big
export
bushels
will
be
the
that
prevailing under the 42-nation In¬
A favorable factor in the world
discovery
last
of
S.)
or
bushel
a
about $1.90
decides to take the
ditional 9,300,000 bushels. ;
ad¬
broad control
"The
of
further
debt
remains
in
such
totaled
>
Corporation
proportions
week
tions.
CANADIAN STOCKS
porter
for
papers,
ness
Sr°'
A. E. Ames & Co.
the
Mr.
as
Cleveland
Bailey's
a
re¬
busi¬
27,559 trucks built in the United States and a total of 4,435
and 2,040 trucks built in Canada. In the previous week, Cana¬
HTe }S
director °f John
j.a-
which
est
Relating the history of governactivity
in
the
home
mortgage market, Mr. Colean said
that
the
me
iriai
"vested
"vested
interests"
interests"
re-
in
the
owns
Scott
controlling inter-
Radio
Inc., of Chicago.
mortgage credit into "an engine
Laboratories; of inflation" which has gathered
speed
in
recent
He
years.
men-
Two Wall Street
New York 5, N.Y.
WORTH
4-2400
NY
1-1045
\X7* L
r>
Boston 9, Mass.
tioned the Federal Housing Ad-
n
Wlth Grant Brownell
(speciai
to
The
DAYTON,
Fifty Congress Street
Financial
Ohio
—
ministration
chkonicle)
Lucien
erans
H.
Grant
Brownell
Building,
&
Co.,
members
Midwest Stock Exchange.
the
Vetpro-
gram and the Farmers Home
Winters of
of
the
loan
program,
Administration
Ahlers has become affiliated with ministration
Bank
/ Commercial
ended Aug.
Inc.,
the
program
"specialized
government
groups
use
to
as
of
Ad-
instances
credit"
by
court selected
in the market.
1,674
cars
and 617 trucks against
.
5,347 cars
war
and
industrial
Edge Upward
failures
rose
to
158
the
in
week
16 from 149 in the preceding week, Dun & Bradstreet,
reports.
186 and
Despite
this
increase,
casualties were
below
the
1950 and
considerably, 38%, from the pre¬
193 which occurred in the comparable weeks of
1949 and
manufacture/of' Plymouth/ind" sponsible for jt had transformed
INCORPORATED
output totaled
2,164 trucks in the like 1950 week.
Business Failures
attention from "the busi-
mental
output totaled 183,368 units.
Canadian output
units compared with 2,291 units a week
and
and
ernmental rules."
news¬
entire
has been with Otis &
career
i
years
of last year
and 7,511 units in the corresponding 1950 week.
Total output for the current week was made up of 95,507 cars
dian
vantageous interpretations of gov¬
Except for three
production in the United States and
according to "Ward's Automotive Reports,"
129,541 units, compared with the previous week's total of
ago
cars
making sound loans" to
advertising and public rela- preoccupation with making "ad-
in
as
Output Turns Sharply Upward the Past Week
in the week totaled 6,475
Today's mortgage lenders, unCLEVELAND, Ohio—Theodore
L. Bailey, a veteran in the invest-7
....
„
like lenders of other years, must
to specialize in the
underwriting lender's
of new issues of securities as
well ness of
decrease of 38,354 cars, or
in 1950, but an increase of
97,351 (revised) units, and 190,879 units in the like week of 1950.
For the United States alone, total output advanced to 123,066
units from last week's revised total of 95,060 units.
In the like
#
Municipal
a
week
Canada the past week,
source
banking business in Cleve- be "politically alert" and must acland, has become associated with quaint themselves with "a growMcDonald
&
Co., Union Com- ing
volume
of
legislation
and
merce
Building, members of the regulation," Colean said.
New York and Midwest Stock
These necessities, the speaker
Exchanges, where he will continue added, threaten
to
divert
the
Provincial
represented
Combined motor vehicle
ment
Government
total
the corresponding
below
Auto
it is."
as
the corresponding period two years ago.
81,325 cars, or 11.2% above the comparable period of 1949.
mortgage lending and building
activity "as long as the public
Joins McDonald Co.
week's
The
4.5%
on
Bailey
above the total output
19, 1950, and 1,585,669,000 kwh. in excess
preceding week.
influence
government
794,639,000 kwh., or 12.5%
Loading of revenue freight for the week ended Aug. 11, 1951,'
809,354 cars, according to the Association of American
Railroads, representing a decrease of 4,012 cars, or 0.5% below the
insurance companies," he ex¬
plained. He foresaw the possibility
the
Feb. 3 for the current year.
94,579,000 kwh. above that of the pre¬
on
totaled
supply of
and
as
the record level
Carloadings Show Further Slight Recession for Week
change curtailed the supply
funds from banks
"similar actions"
kwh.
of the output reported for
mortgage
of
»
ceding week;
change in the Federal Reserve's
policy of supporting government
bond prices at par or better."
of
L.
of the
Record Level for 1951
industry for the week ended Aug. 18, 1951. was esti¬
7,164,469,000 kwh., according to the Edison Electric
for the week ended Aug.
spring with
method
mortgage
money brought about by
a
(U.
Northern,
bushel in Canadian funds.
to
The current total was
new
a
ceiling is $1.80
for No. 1
trade situation of Canada this
year
CANADIAN BONDS
occurred
"the
of
commodity,
On that basis Britain will
spend
climbed
to
$32,400,000 in June about
$214,700,000 for Canadian
from $18,100,000, boosting the sixwheat and may spend even more
month total to $163,360,000 from
if she
$91,900,000.
ence
at
of 7,099,385,000
"The
ternational Wheat Agreement. The
a
compared
distributed by the electric light
Output in the latest reporting week surpassed
be
only thing
complete 'program¬
a
industry,
Institute.
what
as
power
mated
judg¬
be financed,"
may
maintained.
the
for
market
built,
built, and how it
he
entire
the
or
Electric Output Surpasses
and
date of the substitution of
be
for
castings
and
2,029,000 tons a week ago, and 101.4%, or 2,027,000 tons
month ago.
A year ago it stood at 90.6% of the old capacity and
a
mort¬
rate Is equivalent to 2,007,000 tons of
week's operating
ingots
101.5%,
credit represented the farthest ex¬
ment
.
.
amounted to 1,747,400 tons.
"The": direct
tent to
.?':/>
/;
the twenty-fifth wherein production
week ago.
This
credit."
official
93% of the steel-
exceeded 2,000,000 tons.
to
paid for
Canada's
a
steel
time, imposed direct
on
will
will be 100.4% of capacity
beginning Aug. 20, 1951, or a decrease of 1.1 points
The current week will be
,
sideration of boosting this to 122,- ming' in non-defense areas."
Mr. Colean said the most recent
$79,748,000
from
$60,825,000
—
300,000 bushels on Sept. 30.
about nine times higher than the
expansion of government influ¬
The Price to be
1938
the week
for
from
"reinstituted all types of controls
Present during World War II and,
may
1.
of steel companies having
War marked the end of the
for
autos,
Steel Institute announced this week
American Iron and
The
credit
that the operating rate
.
including
durables,
although they may have to cut back
production still further. When fourth quarter tickets are issued
they will be validated to reflect steel already received.
political de¬
"
struction, building materials,
'r;/;'■/://.f\v;Sv
.
consumer
keep making civilian products,
made after the start of the Korean
depression 200,000,000
-
Great
Latin-
climbed
considerably
440,000,000 bushels in
was
$200,000,000
of
store
overseas
blocked,
picture
Britain
$253,500,000 up only
last year's figure. •
to
the
in
encouraging. agreed
increased-
value
to
able
of
Manufacturers
Colean
a.
when
had
L.
Miles
-
mortgage^
market
He contended that
cisions
the possi¬
would permit
This
up.
limitation.
in
home
the
used
is
shipments.
replace their inventory each month as
them to go over the 100 %
bility of allowing them to
it
de¬
c
also grant warehouses
favorable discussion has centered on
In Washington
steel.
permitting them to receive 100% of their base period
Also under discussion, this trade journal observes, was
eco-
uen
added to
people believe NPA will
steel
Some
more
of
c
1950,
their
their regular mill quotas, made their
receipts larger.
impor¬
velopments
due to get more semi-finished
of shipments they received
order allows them 110%
base because DO's,
C.,
de¬
as
new
during the first six months of 1951 or first nine months of
whichever is larger. Most are expected to choose this year as
have
tance
A
in extended booking.
,
bar producers are
Cold drawn
steel.
in which economic developments
were the supreme factor affecting
visible, wheat carry¬
the mortgage field. This happened
over is the highest since the war,
he
said,' when
the government
a
grain uxaicicu
gictiu
official sdiu
said Canada
v^diiuua
has
iias
;;
o-* —--
more
doubled its purchases to $32,200,000 from $16,200,000.
authority continues.
While the
v
down to
quarterly quotas
run.
Besides, he
contended that
equal
through March. ,
Since
aren't cumulative, he'd lose tonnage in the long
needs the steel in the fourth quarter, this trade
wasn't interested
customer
The
econo¬
cisions
fourth quarter.
Openings ranged from January
during the
Co-
D.
applied the
single item
Item by item it listed its first open
CMP schedules.
mist of Wash¬
ington,
"Iron
tangle looks hopeless, the
One large consumer tried to place an order with
his regular supplier for 37 different carbon and alloy steel items.
He had fourth quarter certified CMP checks for all, although they
didn't specify which steel bank.
Age" points out.
The mill, which is known to have conscientiously
first-come-first-served regulation, could not furnish a
"relatively low delivery quotas."
been
$11,from
$13,900,000,
but
outside
of
Britain,
were
affecting
,
Miles
ing
milling.
they
e
become
year.
Included
have
t
lean,
.
to
decisions
first-come-first-
will be booked on
the fourth quarter
For some,
■
ings and Loan
July 31, political
last crop year ended
compared with 62,000,000 the pre¬
however,
buying
was
problem is the lack of
vators and Lakehead
cribed to price climbs and part to
supreme
Addressing a meeting on Aug.
17 of the Graduate School of Sav¬
u
23, 1951
served bssis
housing credit.
Ins t i t
Thursday, August
The State of Trade and Industry
the American Sav¬
over
crops."
rose
a year ago.
concern
some
sufficient
in
$1,430,600,000
over
corresponding period
re¬
possibility of frost damage to lateAnother
$300,000,000
a
—
moisture
low
and
of
was
in
•
5
page
During the final 15 days orders
serves
in
southern
sections - of ings and Loan, at Indiana Uni¬
Manitoba and Saskatchewan. The versity, Bloomington, Ind., spon¬
by the
lateness of the season, however, is sored
cent of Canada's exports.
per
influence
from
•
econo¬
period in which economic
development
states
housing
Korean War marked
says
end of
of recent
cause
Mtge. Field
Miles L. Colean,
By WILLIAM J. McKAY
Continued
.
continued to be down
total of 253 in 1939.
Manufacturing, wholesaling, and commercial service accounted
for the week's increase, with failures in these lines up to 27, 19
In contrast, retail casualties dipped 2 to 74
Mortality was less than a year ago in
manufacturing, retailing and construction, but exceeded the 1950
and
17, respectively.
and
construction 2 to 21.
level in wholesale trade and service.
major geographic regions reported an increase
during the week.
Declines occurred in the Middle
Atlantic, West North Central and South Atlantic States.
More
businesses succumbed than last year in the Middle Atlantic and
Pacific States, while a decline from the 1950 level prevailed in
six areas.
The most noticeable drops from a year ago occurred
Six of the nine
in
failures
in the East North Central
and South Atlantic States.
Wholesale Food Price Index Turns
After
Slightly Lower
moving upward for three weeks, the wholesale food
price index, compiled by Dun & Bradstreet, Inc., registered a mild
decline last week to $6.94 on Aug. 14, from $6.95 a week earlier.
Volume 174
Number 5040
.
Financial Chronicle
The Commercial and
.
.
(701)
m
Compared with last year's figure of $6.53, the current index still
shows
&
rise of 6.3%.
a
The index represents the sum total of the price per
31 foods in general use and its chief function is to show
eral trend of food
pound of
Our
the gen¬
Reporter
By JOHN T.
Moving in a narrow range, the daily wholesale commodity
price index, compiled by Dun & Bradstreet, Inc., showed little
change during the past week.
The index closed at 300.79 on
Aug. 14, comparing with 300.80 a week earlier, and with 278.80
a
year ago.
Leading grain markets were mostly steady to higher in the
week.
The continued uptrend in wheat was largely influenced by
the long drawn-out peace talks in Korea and a smaller-than-expected government estimate on this year's crop. The Aug. 1 report
of the Department of Agriculture indicated a total prospective
wheat crop of 998,000,000 bushels. This was about 72,000,000 bush¬
els less than last month's forecast, and the first estimate to drop
below
billion
showed little change from last week but was
lighter than
Domestic flour business continued spotty.
tinued aloof but
was
a
a year ago.
Large bakers
volume of sales to independent
sizable
con¬
bakers
reported early in the week. Cocoa was strong but turned weak
in late
dealings due to
Raw
sugar
lack of manufacturer interest.
a
lows for the current
new
Refined
25 cents
move.
continued
sugar
weaken
to
and
showed
a
hundred pounds from the recent high of $8.75.
a
May and June which, by
the way, were not
which is to the
side
drop of
Firmer
of
business
and
announcement
of
backs and
feel
return
support program,.;,. "/ ^
»V.\V:
higher
income
bought
these
finished the period moderately higher. Demand was stimulated to
a large extent
by the government's announcement of the elimina¬
tion
of
and
southern
export quotas and unfavorable crop
advices from central
Texas.
The first government forecast of the 1951
issued last Wednesday, had little effect marketwise as
about in line with general trade expectations.
Volume
supply
been
was
The crop as forecast at 17,266,000
1937 and the third largest on record.
is the
bales,
largest since
It represents an increase of 72.5% over last year's crop of
10,012,000 bales, and of 43.5% above the 10-year average (19403949) of 12,030,000 bales,
Spot market activity rose somewhat as the new crop move¬
,
ment increased.
at
Total sales in the ten spot markets were reported
73,600 bales last week, compared with 46,800 the previous week,
354,900 in the corresponding week a year ago.
and
Business in the
Boston
wool
raw
market
was
dull,following
levels
Treasuries
securities
and
that make
of these
owners
through
when
thick
they
thin.
and
Aug. 24, 1951 (Denver, Colo.)
securities
Those
the
on
restricted
Denver Bond
Club-Rocky ML
Group I. B. A. annual frolic and
outing at the Park Hill Country
that
Club.
had
friends
no
aside
from
Sept. 7, 1951 (New York City)
side,
there
have
Security Traders Association ©K
New York
nonetheless
of government bonds.
of
have
these
been
bonds.
absorbed
quotations.
without
Sept. 20, 1951 (Omaha, Neb.)
Federal, it is believed, also put out
These
slightly
increased
offers,
apparent effect
any
This is looked upon
Nebraska
however,
tember
Omaha.
214> % of 1967/72 the leader in
that group.
Brakes Applied
At
least
temporarily
through
the
sale
been tailored to take
being raised by
kets
the
of
care
has
government
bills.
stopped
New
raising
offerings
no
new
a
short time ago,
Treasury.
and this evidently
Accordingly,
in
order
The money
higher the Treasury has
of
only the
amount
of
high
new
a
of
have
the
New York Curb
tournament
as
it
comes
National
>■'
tant amount of
funds, according to reports, that could be currentlyput into this security. This may have had some bearing upon the'
of
Treasury
not to raise
new money
through the sale
$200,000,000 additional each week of Treasury bills.
the
flurry of activity the week before. Some better grade wools
military use sold in fair volume at sharply reduced
prices from a few weeks ago. Trading in western producing states
a
low level.
-
The
consumer
Despite
.
,
Moderately by Promotional Sales
response to
promotional sales of Fall merchan¬
dise was very favorable; retail dollar volume rose
moderately in
the period ended on
Wednesday of last week. While current sales
volume continued to compare unfavorably with that in the
corre¬
sponding 1950 period when there was considerabe war-scare buy¬
ing, the margin of decrease was somewhat less than in preceding
weeks.
The decline in
evident
in
buying from a year ago was most
major appliance volume, states Dun &
Bradstreet, Inc., in its current summary of trade.
Retail volume in apparel expanded the
past week with backto-school sportswear, Fall dresses, and the less
expensive costume
jewelry attracting favorable attention.
Inexpensive
Summer
dresses, skirts, and rayon suits sold well. August coat and fur sales
television
attracted favorable attention in
The
consumer
demand
last week and volume
coverings,
major
slight attention.
was
some
for
well
home
below
furnishings remained slow
the year-ago level.
Floor
electrical appliances, and
While volume in mattresses
furniture
attracted
below
was
the
cor¬
responding 1950 level at many stores for the first time in some
months, the demand for sheets, pillowcases, and other linens in¬
creased slightly.
Total retail volume in the
week
was
estimated
to
gional estimates varied
lowing percentages:
period ended
be. from 4
to
8%
on
Wednesday of last
below
from the levels of
a
a
year
year ago
Re¬
ago.
by the fol¬
There
slight decline in wholesale trade in the week
with dollar volume moderately below the
very high level of a year
ago.
The number of buyers attending the major wholesale cen¬
ters
was
a
about 7% below last week's level, and 32% below that
corresponding 1950 week. Some retailers were markedly
hesitant in increasing their orders with
price consciousness par¬
ticularly prevalent among buyers.
/:V
4'
3
Department store sales on a country-wide basis, as taken from
'
in
was
the
.
the
Federal Reserve
Board's
index
for
the
week
ended
Aug.
11,
1951, decreased 8% from the like period of last
of 14%
a
year
(revised)
and
ago,
year.
A decline
recorded in the previous week from that of
decrease of 17% is shown for the four weeks
was
a
ended Aug. 11, 1951.
For the year to date department store sales
registered an advance of 5%.
A
week
comparison
with
of
retail
trade
volume
in
New
York
that
of a year ago was more
favorable,
tapering off of scare buying in the latter period which
on by the Korean War.
due
was
for
last
to
the
brought
According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Aug. 11,
1951, declined 9% from the like period of last year.
In the
pre¬
ceding week
week of 1950.
a
been making a creditable
showing, to say the least.
With
creeping and at times hard to explain betterment in prices of
the longer maturities which took place on not too much
volume,
there developed a skepticism which it seems would not be
easily
shaken.
decrease of 13% was registered under the similar
For the four weeks ended
Aug.
11, 1951,
decrease
of 13% was recorded below that of a
year ago, and for the year
to date volume advanced 8% from the like
period of last year.
To
a
be
there is still
sure,
a
not
Oct. 12,1951
Dallas
umbus
Traders
As¬
(Dallas, Tex.)
Bond
Club
annual Cdt-
Day outing.
Nov. 16, 1951
(New York City)
New York Security Dealer©
Association 26th annual dinner at
It
a
that
level.
Joins
!
(Special to The Financial Chronicle)
as though the action of the longest bank
eligible
good illustration of what happens to those that were so
the
advance
Beyond
in
this
question
any
issue
of
would
doubt,
be
halted
when
the
at
the
par
pected.
The old saying that selling dries up when prices are on
applied in this case.
Orders to liquidate at 100
were pulled if possible and if
only part of the bonds up for sale
could be cancelled, they definitely were. Those that had sold them
at higher prices and had bought back
only a part of their holdings
advance
lower
levels tried
;
TOLEDO, Ohio—Mrs. Gladys H.
Watkins
with
September
1967/72s got around 100, there were bonds for sale, but the amount
was offered there
was not nearly as large as had been ex¬
they broke
New
an
and
tive
to
time.
them
do
Some
associated
&
Co.,
506
Midwest
and
Mrs.
Stock
Watkins
was
previously with Otis & Co.
to
U. S. TREASURE
These
institutions
STATE
finding savings de¬
are
important part of their
be made on these funds.
resources
increasing
earnings must
They are now in¬
clined, according to reports, to put these investable monies into
the longest eligible 21/2S. Channels that were
previously so attrac¬
this
become
Norton
away
districts.
are
York
Exchanges.
Buyers of the longest bank issue have not changed a great
deal; they still are, in the main, the smaller deposit banks from
out-of-town
has
Collin,
Madison Avenue, members of the
fill in these positions as best they could
too far from the par area. There has been,
it seems, a great change in psychology as far as the
2%% due
Sept. 15, 1967/72 is concerned since it went above the 100 level.
before
Collin, Norton
■
that
at
Investment Bankers Associativa?
Annual Convention at the Holly¬
wood Beach Hotel.
S
be thinning with
to
(Hollywood
Beach, Fla.)
appears
issue is
sure
Nov. 25-30, 1951
unimportant number of
these skeptics around but their ranks
appear
each favorable performance of the market.
posits which
New England and East —2 to —6; Middle West —5
to —9;
Northwest and Pacific —7 to —11; Southwest —8 to —12.
money market and the attractiveness of
intermediate- and longer-term maturities
the
the
areas.
the tight
yields the
have
consumer
and
Security
sociation Convention opens at C»ronado Hotel.
Long Bank Eligible Issue Surprises
short-term
Trade Volume Lifted
the
the Waldorf-Astoria Hotel.
destined for
remained at
at
4, 1951 (Coronad©
Beach, Calif.)
Corporations which have been the largest and principal buy¬
of the Treasury bills that were
being offered, have no impor¬
decision of the
Exchange golf
dinner
1 Sept. 30-Oct.
due.
ers
and
dale, N. Y.
1.66%
short-term
maturing issue
Exchange
Sunningdale Country Club, Scars-
gone back to the old method
the
Stock
Sept. 25, 1951 (New York City)
mar¬
not to the liking of the
to
not
rate go any
meeting
to
was
Hotel*
have
funds
tight and the continued offering of $200,000,000
additional of Treasury bills
kept it from easing. Rates for the
Treasury obligation advanced
Blackstone
Firms Fall Meeting at the TerracePlaza Hotel.
have been
shortest
at
Association of
maturing issues, with
of the short-term route.
means
19
Sept. 24-26, 1951 (Cincinnati, Ohio)
Bill Issues
on
Treasury
of
a
Investment!
Frolic at Omaba
Country Club. Cocktail party Sep¬
favorable development.
The whole ineligible list has been in
good demand with the bank
as
-Iowa
Bankers Annual
the trend
upon
outing at the New York
Athletic Club
modestly increased sales by certain of the larger non-bank
some
Dealer*
Securities
"Fling Ding" at Oft©
Mauh-Nah-Tee-See Country Club.
activity have expanded somewhat and while the
continues
owners
cotton crop
it
Rockford
Federal should not be
having unpleasant experiences at this time.
funds
Domestic cotton prices were irregular last week. Fluctuations
were
narrow with the spot quotations off
slightly while futures
to
Field
Association
interested in the liquidity
are
though there is still something to this idea of holding the
as
government cottonseed
a
liking of those that
Investment
Aug. 23, 1951 (Rockford, 111.)
Short-term rates have advanced,
ago.
the
lard prices reflected buying stimulated by the expectation of good
export
long
so
picture.
On the other hand, the intermediate- and
longer-term obligations have shown the
ability to get off their
of
under pressure and prices declined to
again
was
In
The government market has
made considerable progress since
the dark, doubtful and uncertain
days of
bushels in
eight years. Corn show independent
strength, aided by increasing demand by processors and feed man¬
ufacturers. Trade volume in futures on the Chicago Board of Trade
a
EVENTS
CHIPPENDALE, JR.
Price Reflects Steadiness in
Latest Week
the like date
Governments
on
prices at the wholesale level.
Wholesale Commodity
on
COMING
not
of
appear
these
to offer
funds
also
or
hold
have
the
same
and
MUNICIPAL
appeal at
been
going into the
partials with the last two issues of the 23As evidently the favor¬
SECURITIES
ites at this time.
Restricteds Acting Well
The restricted obligations continue to be under
with the buyers evidently feeling surer of their
accumulation,
footing as time
along. It is not, however, a wide broad market yet, but it will
eventually develop along these lines if the present psychology
continues to catch on, and some more bonds are made available
for sale.
If larger amounts of securities should
appear and they ;
are
absorbed as many now believe they could
be, this should
make for a much better trading market. There is more evidence
that larger bites are being taken out of the restricted bonds
by
pension funds than has been the case recently. They are still the
goes
Aubrey G. Lanston
& Co.
principal buyers of these securities, but some competition has been
appearing from small life insurance companies, fire and casualty
companies and charitable institutions. Public funds were not as
aggressive in their acquisitions, although
being made. There has been considerable
purchases were
switching and swop¬
some
ping going on, which has tended to make the market in the ineligibles more active. There is no particular pattern discernible
in these exchanges because some of them
go from the shorts into
the longs and vice-versa.
INCORPORATED
;
15
Broad
Street
NEW YORK 5
WHiteball
3-1200
45 Milk Street
1 :
BOSTON 9
HAncock
6-6463
k
The Commercial and Financial Chronicle
Feb.
on
Continued from first page
.
...
,
.
..
.
demand.
infla¬
Should
pened
be burdensome.
1, 1950, Department
"In
the
aggregate, the govern-
ment
has
not
the
of
Most
what
to
was
lies in sales
answer
of Commerce
whereas, on March 1, the increase
had been measured at 17%. Durmeasurably and, on balance, it has ing the same period, wholesalers'
not been a borrower.
Whatever sales rose 16.5% but there has
increase has
the
rise
in
Further-
loans.
Reference to the statistical rec-
past few years, as it
production, consumption
anci price, leads to a few conclusions which may
be helpful in
the
of
0rd
concerns
shortages.
For
clos-
the
If the Federal budget on a
cash basis comes within $3 to $4
be
there
need
increase
in
sources,
nificant
non-bank
sig¬
no
the
June
Manufacturers'
with
Wholesalers'
apprehension as a future de¬
velopment, has actually been with
us
for
may not
The
of
number
a
production,
has
which
"Millions
industrial
in
increase
*
occurred
of
Feb. l;
1,
June 1,
%
Change
1950
1951
1951
*$29,507
"$35,278
*$38,780
7,263
8,613
9,394
„
Total
appreciably wider.
grow
13%
;
-
_
Inventories
Retailers'
and
months
Inventories
Inventories
.'To.
'
;
which has
which
presented
with the March 1 study in support
these
conclusions.
This
14,416
17,422
19,114
$51,186
$61,313
$67,288
+
+
nomic
his
current
purchases drop
statistical
columns
once
the
eco-
case, the amounts involved must be substantial. In any
outlook in the light of de-
event, the inventories in sight are
re-appraising
velopiments since that date.
in
'
7,000.000,000
expenditures (exclusive of pay and
.
4.000,000,000
$43,000,000,000
32.6
billion over "How much inflation?". At the
expenditures level, present time, Federal expenditures
pre-Korea, probably constitutes a for defense are running at an
reasonably good rough measure of annual rate of $36 billion but,
the dollar value
of our present according to the Department of
The increase of $43
•'
the
* 1
ordinary
____
_
.
productive capacity . under
forced draft. If this dollar figure
is adjusted for a 15% price rise
during the period, it indicates that
productive facilities during the
period supported an increase in
industrial output amounting to
about 13.5%, without undue strain,
This, however, is not a full measexcess
either of
ure
tive
The present economic situation,
if surveyed without referto the defense program, is
one
charged
with deflationary,
not inflationary, implications. The
then,
but, in each
Increase
$19'
——--
—
—
subsistence)
plant construction (estimated materials only)
defense
"Estimated.
Deflationary Implications
of the
made
out
in
Total
contrary!
berequirements,
Such
and
the
consumer
pur-
of
pose
1959
June, 1951 period rePfe"
sented surplus over and above
ordinary consumer and mdustrai
requirement. Measured in dollars,
the surplus produced was valued
about as follows:
31.4
+31.5
away,
the
presented
for
individual
the
Increase
+ 29.3
dollars.
bought, and stored
yond
table
has been brought up to date
below
has
con-
We have seen tnal ine
Increase
The $16
was
The
normal situation. A condition
balance existed.
•
post-
personal expenditures for gocds—_
in inventories
———
Excess
billion increase in total resorted to deficit financing. Since
since last June in response to an¬ inventories
represents
a
very March, the money supply of the
ticipatory buying, is almost as large part, but not all, of the country has declined slightly and
large as the 16% bite which re- goods produced and not consumed the government closed its fiscal
armament
is
expected to take during the period. It does not in- year, on June 30, with a $3^ bilfrom our industrial production by elude
whatever
materials
have lion cash budgetary surplus. The
the fourth quarter of this year."
been accumulated by the govern- monetary factors, therefore, have
ment stockpiles in the interest of not been operating in
an inflaStatistical Summary of Current
defense nor does it include that tionary direction.
In fact, quite
Situation
A statistical table
important
no
,,
,
change for three years. Ihe may
sumption level at that period
be taken as representing a fairly
.
money
In short, the inflation gap
been' generally viewed
supply.
undergone
had
and
existing
against
months earlier. The FRB Index chandise.
The
Department
of
of
department store sales tells Commerce figures prove this to be
much the same story, with a peak the case. They are as follows:
billion of balance and the deficits
from
was
establish- being.
great bulk of the postwar plant
If manufacturers have continued expansion had been completed,
to produce and sell upon an ex- Th
ti
in
panding basis and the consumer is
P
**
p
.
then receding to a figure, on June buying less, there must have been housing and in household equip1, 1951, only 6.5% higher than 12 an accumulation of unsold mer- ment, and in automobiles, where
large.
financed
for a year. The governmeht
operating
on
a
balanced
budget and the supply of money
ary
requirements
these
measure
good prospect that the Treasury's ments reaching a peak on about
borrowing throughout the re- Feb; 1 of this year, some 17.5%
armament
period
may
not
be above the levels of June, 1950, and
are
easy
retail
all
from
sales
barring all-out war, there is
more,
by
credit. Merchandise and
goods of all types were in
supply. Inventories were of a
normal
size and the cost o
g
index had been virtually station¬
the boom was being prolonged
on
,
been no increase since March 1.
At the retail level, the Department of Commerce figures show
in money sup-
come
bank
net
is
Thursday, August 23, 1851
.
prospective Korfan,
?om wa iff®® J?
reports dollar sales of department industrial capacity and ascertain product of a business ana constores 22% under a year ago and what portion of our facilities will sumer buying spree in rmicip this situation is likely to continue be available in the overall to de- tl.on
a shortage of goods or^a
for a number of months. Reports vote to defense production with- ns£ m prices or botn. uovernfrom the trade suggest that clear- 0ut placing strain on the economy. mer\t
AS„T v~
ance sales in the retail field have The figures cited above strongly panded modestly out lta procu enot proved any great stimulant in suggest that, by early 1950, a large ment, other than tor stockpile, did
the moving of goods. The public part of the accumulated consumer not. riseJ^P ?
during^
seems to be rather well supplied needs built up during the war period. Obviously, tne increase
with what it needs for the time years ha(j been satisfied, and the industrial output during tne June,
rially to this increased demand,
Its expenditures have not risen
ply has been the direct result of
of
fear
figures record a 23.2% increase in
dollar
sales
by
manufacturers,
mate-
Program
Economy
price estimating the possible impact of
the
ing weeks of July, 1951, the FRB
figures. Since June
and inventory
Defense
of
favorable, for a year ago, in July buying to fill accumulated needs
has hap- and August, the public was avidly or buying in anticipation of future
produced? buying everything in sight out of shortages, one would be able to
What
Consumption:
tionary psychology cool, the ma¬
terials and goods
purchased on
borrowed funds for inventory will
contributed
Impact
rise,; the sales at retail level on the defense program upon our
june 1 were actually 4% less than economy. Tf one
can
calculate
they were pre-Korea. Currently, what represents a normal rate of
the comparison is much more un- consumer buying, as distinct from
.
against future farm production is at least as high
now as a year ago and the cash
the size of expendable personal receipts from it are running about
funds in the future and serve to 14% higher.
diminish
for
adjustment
after
charge will reduce
a
above the
Since
retail prices are now about 11%
higher than a year ago, it is apparent that, on a volume basis,
charge
a
Such
income.
21.6%
some
only 2.4% above June, 1950.
In Economic Situation
creating
1
June, 1950 figure and a subsequent decline to a June, 1951 level
Deflationary Implications
of
.
.
(7C2)
18
ence
our
capacity
or
present produc-
capacity
of the
six months or a year hence. It
will be remembered that the first
objective of our defense program
was that of creating new facilities
for future production in a huge
Commerce, only about half of this
sum represents expenditures for
military hard goods. The other
half goes into pay and subsistence,
engineering costs, etc. The annual
rate of expenditures is set to step
up to about $45 billion during the
fourth quarter of this year and to
reach a level of $58 billion by the
soring of 1952. By that time, over
two-thirds of this sum will be going into procurement of, military
equipment. Coincident ally, half
the expenditures by industry and
government for plant expansion
will be tapering off, thus lessening the draft upon critical metals
and releasing more for actual
armament production. Expenditures for plant expansion have
run from a level of about $18 bil-
equal to 47% of the current points of weakness, evident in volume. The program is proceedannual rate of personal consump- March, have, almost without fex- ing at great speed and new plants,
present discussion of events and tion expenditures for goods. The ception, been accentuated in spring or additions to old ones, are comtrends will - be confined to three accumulation during the past year and
summer.
Industrial output ing into use constantly. It is estimain headings:
>
equals 11.2% of such expenditures, has continued at capacity, sales mated that, by the second quarter
These are very substantial sums have declined at wholesale and of 1952, productive capacity in the lion per year, prevailing a year
(1) Production.
■
and would ordinarily be viewed retail
levels;
inventories
have aggregate will permit an output ago, to the present annual rate of
(2) Consumption
with great alarm. Such surpluses piled up at a truly startling rate valued
at $15
billion per year over $25 billion and are expected
(3) Monetary Factors.
would call for cutbacks in pro- and are now considered burden- above the present level. The goals to peak at a figure of $26.5 billion
The interplay of the forces of duction and the liquidation of ac- some. The consumer is well sup- in steel, aluminum, chemical, al- during
the winter months. The
supply of goods, demand for goods cumulated merchandise with con- plied and, indeed, may be over- loys and power capacity are well extent of decline, thenceforth,- is
and the supply of money deter- sequent deflationary results.
bought.
Commercial loans have known and sufficiently high to difficult to estimate but an annual
mines the trends of prices and of
what has been the effect of levelled out but stand at a total create a good deal of additional rate $5 billion less is a reasonable
living costs. The study of infla- these developments in the field $1 billion higher than in March, leeway for full re-armament on expectancy by
next spring ;or
tions, past and present, is written 0f prices? The trends have not There has been a token reduction top of a normal production for summer. Beyond this, the mandain terms of price and
living stand- been uniform but have followed in consumer loans and credit, but consumer use.
"
v
t°ry restrictions on credit and
ards and, in judging the stresses
the lines suggested in our March the figure remains fantastically
building activity have already cut
now
-In the interest of simplicity, the
.
which
may
exist in any given
period, the price curves give indication of their intensity and
Spot
paper.
raw
prices
commodities
of
sensitive
sharply
(36%) from June, 1950 until Feb.
direction.
1, 1951. They have subsequently
Production:
Reference
to
the declined steadily, erasing approxitable "Trends in National Econ- mately
one-half
of
this
rise,
omy" reveals the fact that since Wholesale prices attained a peak
June 1, 1950,
immediately preceding the Korean War, total industrial
production
in
the United
States, as measured on a unit basis
by the Federal Reserve Board,
has risen by 14.4%. The rise since
our March
study has been about
1%.
the
In the field of durable goods,
Index shows a rise of
FRB
20.3%, of which
4%
has
come
non-durable
a
little
since
more
March
than
In
1.
goods, the rise from
June, 1950 has amounted to 7.7%
and the present level of
output is
no
higher than in March of this
year.
The
output
(coal, oil, iron
ore,
of
minerals
copper,
lead,
etc.) has risen 13.1% since preKorea and the present level shows
measurable gain since March 1
of this year. The indices of farm
no
Money
drew
during
there
that
and
dollar rather than
Indications
are,
because
mostly
are
a
a
volume basis.
however,
the
on
the
had
readily to analysis because of the
factor
Factors:
attention
crease
measurements
high and will be a drag upon conHow Much Inflation?
sumer income for many months
' How does this surplus capacity,
to come. Banks and credit asso- existing and prospective, compare
ciations report that debt payment with the size of the projected aris slow. Mortgage credit expan- mament effort? Herein lies part
sion has slowed down but the of the answer to the question of
total is substantially higher than
in March, 1951, about 17% above in March when it was considered
the level of June, 1950, and, since excessive. New orders have slackthat date, have dropped about ened and, in many industries, the
3%. Retail prices are now at their downtrend in new orders has been
peak, some 11.5% above a year in progress for a number of
ago. but the increase has slowed months.
Unfilled orders remain
definitely in recent months. In all generally high but are, of course,
probability, the retail index does subject in part to cancellation' or
not yet reflect cut prices for mer- reduction. Commodity prices are
chandise which have put in their relatively weak./ In short, if our
appearance in summer clearance
rearmament program were not in
sales. It must be remembered that the process of rapid buildup, one
the foregoing price indices are might say rather confidently that
composites. Prices of individual the stage is completely set for a
commodities have followed widely major deflationary change in the
divergent trends and some have course of business activity. All of
given no ground whatever.
the flags signaling a deteriorating
production do not lend themselves
seasonal
rose
in
this
only
money
small
rise
economic situation are flying. The
reappearance of inflationary presperiod sures and> indeed, the continua¬
March
the
fact
post-Korean
been
the
In
to
a
4.4%
supply
had
we
'that
in-,
and
resulted
tion of business activity at a
rate,
two
high
depend basically upon
factors: first, industrial ex¬
will
expansion,
penditures
Government had operated with
tures for armament, including At-
a
that small budget surplus and had not
and
for
plant
entirely
from
loan
expansion,
During the period, the Federal
second, government expendi-
lantic Pact commitments.
Trends
into demand from this
and the use of materials
in residential and non-industrial
or non-military construction by
the fourth quarter will do well to
be1, more than half the present
heavily
source
in National
Economy
Feb.
June 1,
Industrial Durable
!
Index
Production
Industrial
FRB
FRB
Industrial Non-Durable
FRB
Mineral
Production
Manufacturers Sales
145
164
(millions of $)
21,809
5,599
6,585
296
Sales Index
Retail Sales Adj—__
—< millions of $)
Manufacturers' New Orders (millions of $)
All
Inventories...
(millions of $)
FRB
Store
Department
Money Supply (millions
'
Mortgage Credit (101
Instalment
banks).—:_—LU--
Credit
tTreasury Cash Receipts &
Receipts
Expenditures
Expenditures(millions of $)
(millions of $)
:
Commodi'y Prices—•
Spot Commodity (Moody).
Farm
Wholesale,
1926
=
yrh
+
14.4
+
20.-3
196
;r +
7.7
165
+
13,1
22.975
+ 23.2
+
16.0
360
303
+
2.4
13,307
12.065
.+
6.5
19.097
23.515
23,747
+ 25.3
51,186
59.119
67.288
+ 31.4
172,400
179,900
13,359
18.120
4,595
5.280
5.476
11,667
13,478
12,913
121.551
§16.412
125.580
t21,865
§16,101
119.601
390.9
533.5
467.5
6,527
,
178.500
19,120
305
247
286
155.9
182.2
179.8
185.5
198.4
206.8
—
100
Retail, 1935-39 =- 100
of Living Index—
+ 20.0
278
11.327
'
1910-14.-100
Product,
*325
'
••
of $)—
Currency plus Deposits.*.
Commercial Loans (101 banks)——
Increase
223
V
195
18,649
:__(millions of $)
Sales
Wholesalers
268
Index
Goods
Index——
Latest
"
;
-381
-
or
220
195
231
Goods Index_____,
%
Aug. 1, '51
303.7
275
(billions of $)
National Product
Gross
FRB
1,
1951
1950
•—
Cost
BLS
Dow
Consumers
Jones
Dow
Jones
Prices
Industrial
Rail
Stock
Average
170 2
178.4
185.4
223.46
255.10
259.89
54.72
88.65
81.25
—
Average
—
figures not otherwise indicated are from U. S. Department of
Survey of Current Business.
♦Estimated.
+Source: Federal Reserve Bulletin.
$6 months through
All
'
§5 months through November, 1950.
15 months through May, 1951.
Commerce
June, 1950.
Volume 174
figure.
sales
Number 5040
Declines
have
in
already
.
.
.
The Commercial and Financial Chronicle
automobile
brought
the
weekly rate of auto production to
a figure 25% under that of Febru¬
ary and March. Similar or larger
drops have come in the output of
durable household goods of
nearly
duce may
(703)
outstrip our capacity to ordinary
margins.
have not
consume.
the
seen
Finally,
we
date, the performance of the
stock market has indicated that
In this
Undoubtedly,
the
majority
of
investors remain inflation-minded.
investors, in the aggregate, do not
The advance And,
as suggested in our March
there is doubtless a ten¬
dency
to consider high profit and
age since last March has not been
datory nature will become effec¬
high
dividends
as a very pleasant
great and the Rail Average is ac¬
tive in the autumn months, again
tually lower, but, in some indus¬ accessory to the process. The fact
is that the trends in evidence are
releasing more steel and copper trial
groups, Inhere
have
been
and other critical items for the
not working quite in that direc¬
spectacular gains. This has oc¬
defense effort. : ;;'• <;: v
tion. Pre-tax earnings' growth is
curred in the .Jace of mounting
now
largely dependent upon the
evidence of thg erosive effect of
No Likelihood of Shortages.
defense effort, and the net in¬
higher taxes agd increased oper¬
From the foregoing, it is quite ating costs. Fdr the first half of crease in return to the investor
is being nullified by an even more
apparent that a defense and aid this
year, corporate earnings were
expenditure of $58 billion
rapid growth in taxes. Some of
per well below
all types.
Further cuts of
share
views.
these
paper,
of the Dow Jones Industrial Aver¬
man¬
a
The "Labor Economist"
end of tax in¬
creases.
To
19
tion
case
this "labor economist" issued
a
disquisi¬
on
monetary theory which has very dangerous impli¬
cations.
These implications go to the very root of our
economic thinking and to the
very heart of our economic
system. The report obviously implies complete acceptance
of the managed economy idea, and it
explicitly states that
money management is the most effective tool with which
to give effect to
any system of managed economy—a tool
which must be employed
regularly and vigorously without
hesitation
or
intermission.
The fact that the committee's
■«
year
be fitted
can
into
our
pres¬
ent
productive setup without oc¬
casioning acute shortage in arty
particular field. If this be true
the
arid
military
procurement
program does not go much beyond
this figure, there should not be
1950;
the
were
less
the^ fourth quarter of
second quarter results
^han the first and
this trend will
will
Continue.
show few, £ if any,
last
whereasj
profits
profits
the
at
This year
inventory
such
year
estimated at 10%
are
take
into
the
account
probability that the
supply
money
trols.
with
Business
conducted
also
is
at
which
have
affording
led
the
now
sell
yield
a
less
than that available in government
bonds. A shift in .market leader¬
inevitable,
seems
best investment values
to be in
an
course,
levels
ship
or
more of the,total.
Actually, there
inflationary gap un¬ will be some inventory losses as
less
the
public
again becomes a result of price declines which
frightened. The present attitude have
already
occurred.
Profit
does not suggest such a develop¬
margins are lower all around,
ment at any early date.
:
./
partly because of more competi¬
In estimating the probabilities
tive markets and partly because
for, further inflation, one must, of of rising labor costs and price con¬
much of
stocks
market in recent months
good
the
and
now
seem
of the neglected de¬
some
fensive
groups. Manifestly, there
risks involved in expansion
are
of stock
holdings at this time and
the risks
seem
portunities
government
lower than
buying
to
outweigh the
for
power
profit.
op¬
Reserve
should be conserved
awating developments.
of the
country may again be permanentlv expanded as a result of
deficit
financing. From a budg¬
etary standpoint, there again ap¬
pears a
good chance that the fiscal
deficit.
plus
The
the
one
in
process
Congress,
close
very
existing tax laws,
which is now in
will
covering
to
come
the
$68.4
billion expenditure budget for all
It
purposes.
however,
almost
sents
be
can
be conceded,
figure repre¬
must
this
that
maximum
a
extracted
which
from the
econ¬
along the present tax route,
at the present
price level.
omy
and
Should
defense
expenditures
beyond
measurably
$60
a
run
billion
figure, there will be renewed dan¬
ger
of deficit financing, which
will have
bearing both upon the
rate of personal income on a cur¬
a
v
from first
page
ties
must not remain prisoners of the
Secretary of the
Treasury, has at times distracted attention from the cir¬
It
agency
often reached.
are
point in all this there ought to be an oppor¬
tunity to raise the fundamental question as to whether
Forthcoming Hearings
some
arbitrary management of money and credit is desirable in
the premises.
Such an opportunity should be seized to
demolish the managed money notion, which comes down
in direct descent from John Law, once for all. Once the
idea that money and bank credit are to be
regarded as but
a
facility or a service which industry may employ to ren*der itself more effective, rather than an instrument for the
purpose
some
of controlling and directing the economy from
politicians sit enthroned—once
central office where
this concept
some
there is
committee
another
Getting Down to Fundamentals
tendencies in the autumn.
But whatever the cause,
the
was
only choosing one
through which to manage
money and hence the economy in general.
It would be a good thing if the public would bear this
and related facts in mind not only when it undertakes to
appraise the work of the committee scheduled to begin
operations early next year, but at all times when these
questions of Treasury versus Reserve come to the fore,
and indeed when basic alterations in the
banking law of
the country are under consideration. In recent
years all,
or
virtually all, changes or proposed changes in such legis¬
lation have rested on the assumption that arbitrary man¬
agement of the monetary system for the purpose of con¬
trolling the economy in general is a good thing. Begin¬
ning with that premise, it is hardly strange that weird
than
At
ship to Fair Deal objectives and, in particular, to the needs
of the Treasury. It has appeared recently that the Treasury
was
finding the rates it has been obliged to pay for new
money somewhat onerous notwithstanding that judged by
ordinary standards it is still able to borrow at exceedingly
low rates. It may be that the authorities are really quite
convinced that rearmament outlays—no matter what hap¬
pens in Korea—will be very heavy during the remainder,
of this fiscal year, and that the Treasury will be in need
of borrowing substantial sums of money. They may, too,
believe their own warnings about a revival of inflationary
rent basis and the money supplyproduction ratio for the future.
that
cumstance
rather
conclusions
We See
As
1951-19.52 will not close with
year
a
Continued
report sensibly takes the position that the Reserve authori¬
real
generally prevails
we may
be able to make
headway in restoring sound monetary and credit
conditions.
even now some re¬
vival of interest in the
Congressional hearings which are
all this old straw beginning next
January. Of course, it is highly improbable that anything
few conclusions:
of consequence, except in a purely political sense, will
(1) That for over a year, pro¬ icome of these sessions. Senator Douglas is a member of
duction has been running in ex¬
the group which will conduct the hearings, and it is only
cess of consumption
even though
a
relatively few months since a committee of the upper
the latter has been at a record
house under the leadership of the Senator published vol¬
rate.
uminous and elaborate testimony and, in some resepects, a
(2) That the high level of loans
and inventories would ordinarily
very remarkable summary of the conclusions of the com¬
call for a period of liquidation to
mittee—remarkable, that is, among such documents for its
bring the economy into a more
coherence, its directness and in general for its technical
balanced position.
workmanship.
j (3) That the rapid build-up in
If there were good reason to hope that forthcoming
defense production will prevent
sessions would expose the weaknesses of the so-called
any such development.
Douglas report, and hence relieve the nation of the danger
(4) That if defense production
Summary
,
scheduled to thresh
In summary,
over
An Uneven Performance
with respect to the
economic outlook, one can draw a
"That is a staggering fact [that the deficit over a
three-year period would equal the cost of foreign aid],
because it means your give-away program in the three
years will come directly out of the pockets of the tax¬
payers, and a deficit
is
inevitable
taxes
are
which
in
will
unless
imposed
themselves
greatly
slow
down and retard the
economy.
"The
weight
of
.
proceeds
be
activity
ness •
spring.
•
scheduled
as
.
;
growth of
fense
next
the
our
will make it
ing
will
a
and
great
rapid
capacity to produce
as
economy
planned,
now
bringing
or
noteworthy
increase
in
living costs.
of
Federal
1951-1952
expenditures
approximately covered
basis and there will be
cant
expansion
supply,
in
that
but
will
be
cash
a
no
signifi¬
total
money
further
Senator
call for
less
some
new
deficit financing un¬
sources
of
revenue
are
opened up.
;
(7) That
tionary
pressures
potential
infla¬
have been
over¬
estimated.
(8) That there is
threat
that
our
a
long range
capacity to
pro¬
so
more
Douglas
easily the dominating figure
was
in the Senate committee
(or, strictly speaking, subcommit¬
two ago.
The Senator is universally recognized
upright and upstanding gentleman, who has what he
gards
as
re¬
the good of the country fully at heart. Compared
with many
desert.
His
Washington, he towers like
mountain in
imposing academic record, and his remark¬
able service in the Marines
the respect
a
of all.
we
wish there
demic
career
that
receipts would
not be
increased,
were no
always interested himself in fields but
conditions."—Senator Walter F. George.
"The
military
job of military assistance.
debate with them
cuts
on
the
nally for
on
About all
word for it.
they have to have a certain
men say
do the
amount to
that?
we
can
against all that had been accepted
as
How
can
We have to take their
do is make
some
small
assumption that they may have asked origi¬
more
than they needed, expecting Congress to
Fulbright.
reduce the amount."—Senator J. William
aca¬
re¬
With
all
respect
to
the able Senators, this does
be what the citizen has
pect of members of "the greatest
rebel
George
"Wholly aside from the merits or demerits of foreign
voted its attention, and was
a
F.
military and economic aid programs, we are face to face
with a time when we must consider our own financial
not seem to us to
more or
Walter
in rates.
crease
motely related to the subject to which his committee de¬
from the first
cer¬
tainly not in the pro¬
portion of your in¬
J. W. Fulbright
during World War II command
But—and how
reduce the income
your
we
a
would
of the taxpayers
of the time-serving politicians by whom he is
surrounded in
taxes
as an
''but" in this case—the Senator in his intellectual and
the
those
insidious of its doctrines would be
tee) which delved at such length into this subject a year
sharp
rises in spending would probably
more
than ever part and parcel of
political mores of the people, thoughtful ctizens would
vigorously welcome the opportunity presented. We are
afraid, however, that the likelihood is much greater that
the same type of fallacy will permeate any conclusions
which the new hearings may bring forth, and those falla¬
cies are basic and very dangerous.
budget
on
of the
the
or
(6) That the
some
accepted and become
without creat¬
shortages
acute
about
and
possible to fit the de¬
program,
our
winter
.
(5) That
into
there
relatively high rate of busi¬
a
that
less of
good and true.
the world."
a
right to
ex¬
deliberative body in
20
Chronicle
The Commercial and Financial
(704)
From
1912
he
1942
to
was
..
Thursday, August 23, 1951
.
senior
partner of the Wall Street invest¬
firm, Billo & Hinrichs, which
liquidated after the death of Her¬
bert C. Hinrichs, junior partner.
ment
News About Banks
"Mr. Billo
CONSOLIDATIONS
NEW BRANCHES
/d
REVISED
By JOHN DUTTON
the Bloomfield Savings Bank, for¬
Bankers
and
NEW OFFICERS, ETC.
Securities Salesman's Corner
connected with
was
merly Bloomfield Savings Institu¬
tion,
CAPITALIZATIONS
since
1924
as
Selling "Good Will"
Manager,
a
Vice-President and Trust Officer.
There
In 1945, he was
named to the new¬
ly created post of Chairman of the
Announcement on Aug. 20 that posit operations at Irving's main Board. For many years he was
the
Essex
County
conversations were
in progress office; Frank E. Conant, to Assis¬ director of
looking toward the possible acqui¬ tant Vice-President; Mr. Conant Building & Loan Association and
is
with
Irving's
Empire State continued in that position with its
sition by the Chase National Bank
banking busi¬ branch office; Haldan E. Connor,
of New York of the
the
next
advices
by
day
company's 21st
office; William F.
Connor is with the
branch
Street
J.
by
Mr.
Vice-President;
Assistant
to
of the Bank of the Manhattan
ness
Co. of New York was followed on
Chairman of the
Bank of Manhattan, that the ne¬
Graff, to Assistant Vice-President;
Mr. Graff is with Irving's Inter¬
gotiations had terminated because
of "legal obstacles." The Aug. 20
A.
Stewart
Baker,
read
announcement
"Winthrop
follows:
as
Aldrich,
W.
and
J.
Stewart
main
Schoenborn
is
at
office; Charles B. Brush, Jr.,
Mr. Brush
is with
Chairman
Baker,
Mr.
to Assistant Secretary;
Bank,
of the Bank of the Manhattan
Schoenborn, to Assistant Vice-
President;
Chair¬
of the Chase National
man
Banking division; Edwin
national
Irving's branch office ad¬
ministration division; Kenneth P.
Co.,
stated today that conversations are Heavey, to Assistant Secretary;
Mr. Heavey is attached to Irving's
being held regarding the possi¬
51st Street branch office; Stephen
bility of
the
acquisition
by the
Chase National Bank of the
Pendias
P.
com¬
Clarence
and
E.
Wil¬
banking and trust busi- kinson, both to Assistant Secre¬
ness and the branch system of the tary; both are with the Interna¬
tional Banking division.
Bank of the Manhattan Co."
mercial
In its issue of
■
"Post-Gazette,"
burgh
which re¬
that two of them, Andrew
W. Forsyth, Jr., and David E. Gile,
are
attorneys becoming affiliated
ports
hinted
vision.
Both, it is stated, groups of customers that you could
find anywhere.
He never needs
Law School in 1949 business and he acts that way. As
Pittsburgh
Manhattan
Co., after sale of its
banking business, might continue
a
practice.
and some of them are
engaged in private
The "Post-Gazette"
added:
•
ones.
-
"Emerson
Stilley, with 25 years
of service at the bank, was pro¬
moted
Trust
from
H.
Secretary.
Reed,
The
announcement by Arthur
ularly between Texas and that
Kleeman, President of Colonial country, is said to have prompted
Co.
of
New
York, that the Republic National Bank of
"The Manhattan Co. was formed Michael
M.
Mora,
Director
of Dallas, Texas, to appoint a special
to
provide New York with its World Trade Development of In¬
representative in Mexico City.
first piped water system and its ternational House in New Orleans,
John B. Glenn, a former resident
entry into the banking business had joined the trust company as a of this
country and a banker of
was
coincident with the water¬ Vice-President, is said to mark a
many years experience, will rep¬
works system, under a clause of new and significant extension of
resent Republic National in Mex¬
the old charter that permitted the the role played by international
ico with offices at Isabel la Catoorganization to employ its 'mon¬ banks in expediting world trade. lica No.
45, in Mexico City. He
At International House, Mr. Mora
eyed capital' in other ways.
will work closely with Mexican
"If the Chase negotiations are was associated for over five
years, banks having business in Texas
consummated it would bring to and
it is
stated that close
co¬
and the United States and will
the bank, assets which on June 30 operation
between International also render service to customers
in
other business permitted
some
S.
by its broad charter issued in 1799.
$1,243,432,590
were
of $1,129,098,332.
Trust
deposits
and
House and Colonial Trust will be
Since the Chase
important element in the
an
new
people give him orders
mighty big
It is sort of a wait till you
result
and have been
Increasing business between the
United States and Mexico, partic¬
.
■
of about thirty-five
thousand people. Yet, he has one
of the most productive and loyal
city
a
the
of
friends
and
bank
attitude that he
get around to it
I'll
a
had
30
of
resources
work
which
Mr.
Mora
is
business
traveling
or
forcing the issue—finding
to give them advice and help
talking down to them—•
ways
without
fair
taking
markups
selling
promising
—
sound securities—never
too much and by being patient.
Lester, Ryons & Co. to
Be Formed
him.
Planting
keep good will by knowing
people—treating them right
your
—never
adopted—when you are ready
be there. And they come to
has
LOS ANGELES,
Seed
Coast
on
Cal.—Effective
Sept.
1, the New York Stock
did it on one Exchange firm of Lester, Ryons &
friend who was Co. will be formed with offices at
Here is the way he
had
He
case.
a
making a lot of money. This man
started to buy stocks and eventu¬
621
South
Spring Street, v Part¬
of the new firm, which is a
ally became an amateur specula¬ coalition of Lester & Co. and the
tor.
He
would tell this dealer Pacific Company of California, are
about a certain stock, ask him B. P.. Lester, who will hold the
questions, and then he would hear firm's Exchange membership;
no more about it. This went on for
Joseph
L.
Ryons,
Kenneth M.
several
and
while
listened
to
years,
friend
dealer
our
the
ners
A.
W.
Shepherd, Paul
Goldschmidt, Verdon C.. Smith,
Lloyd C. Young, Howard G. Hall,
A.fcM. Ackerman, H. F. Beale,
Payne,
speculator's stories, he found out
that
his
competitor down the
street
got most of the. orders. Mark Davids, W. T. Dinsmore,
This didn't make any difference Jr., N. O. Norsworthy, B. H. Prinin his attitude, and he continued cell, William L. Wright, William
to listen to the talk of the various S.
Allen, George A. Brown, Mar¬
"good buys" his speculator friend vin R.
Kuppinger,
George O.
was discussing.
One day, he found Koch, Paul W. Masters, Ernest
an opportunity to plant a seed and
Swift, Andrew E. Weber, Gordon
he did it in this way.
He said, B. Carey,* Robert C, Davidson,
during "John, you've been doing pretty
Payson D. Marshall, Douglas E. C.
on pleasure well.
We are old friends and I'd
in
that
country. Mr.
Glenn is like to make a suggestion to you,
$5,227,895,685 and deposits of $4,- taking. Liaison work between In¬ President of the John B. Glenn,
do you mind?"
Then he went on
793,337,782, the consolidation on ternational House and 'Colonial
S.A., and the Mexican Chamber to tell him that speculating was
the basis of those figures would will also, it is indicated, receive
of Commerce and holds director¬ all right,
in fact he knew his
mean combined resources of $6,effective, on-the-spot aid from V. ships in the New York Board of
prospect was having a lot of fun
471,328,275
and
combined
de¬ Gordon Isaacson, New Orleans Trade and Inter-American Com¬
out of it, but he suggested that
posits of $5,922,436,114."
correspondent
for
the
banking mercial Arbitration Commission. he
ought to take about ten to
$
$
$
house, whose offices are located He is also a member of the Exec¬ fifteen thousand dollars each year
Marvin W. Williams, Vice-Pres¬ in the International House Build¬ utive
Committee, Part American and put it into some conservative
ident and Treasurer of the Bank ing.
Mr. Mora will assume his
Society.
investments, such as a balanced
it
it
*
of
the
Manhattan
Company
of new post in New York in the
Mutual Fund. Then he explained
New York died on Aug. 19 at his middle of September.
Maurice J. Driscoll has been ap¬ a bit about them and wound up
Jj«
!|!
!|t
summer
farm in Ashville, Mass.
pointed Assistant Manager of the by giving the sage bit of advice,
Mr. Williams was 57 years old,
The Newark "Evening News" of East Oakland Office of the Anglo that a backlog of good investments
was born in Arnprior, Canada, and
Aug. 15 reported that H. F. Bon- California National Bank of San always made a cushion for specu¬
started his banking career in the
nel, Vice-President of the Peoples Francisco at 35th Avenue and lations. After the solid stuff was
Bank of Nova Scotia.
In World
National Bank & Trust Co.
of East Fourteenth Street, it was built up he thought that his friend
War I, he joined the Canadian
Irvington, N. J., announced on announced on Aug. 15 by Allard might even speculate with more
Expeditionary Forces as a com¬ that
He didn't
day that outstanding war¬ A. Calkins, President. Mr. Driscoll abandon than before.
missioned
officer, and was on rants to subscribe to a new issue has been in the
banking field press the point. Several months
active service in France and Bel¬ of
common capital
stock would since 1928 where he originally went by. They would meet occa¬
gium until the end of the war, expire the
following day. The ad¬ became associated with the First sionally, and as before the talk
rising to the rank of Captain, He vices from which we quote fur¬ National Bank of
KalispelL Mon¬ finally turned to the last hundred
received the Military Cross, being ther said:
tana.
He rose to the position of of this or that stock which had
June
on
You
doing this for years
been
has
He
in
graduated from the University of
Mason
that the ancient
might never
He did know
have made the sale.
of building a
with the bank.
also with 25 years
York "Journal of Commerce" had
Irvin? Trust Co. of New York of service, and George K. Leitch,
the following to say in part prior
has
announced
the
election
of with 16 years of service, were
to the announcement of the end¬ Ford H.
Jones
as
an
Assistant promoted from Assistant Secre¬
ing of the negotiations:
Secretary of the company. He has taries."
"The careful wording of the joined Irving's Personal Trust Di¬
statement
he
boiled
been hard
business—but all of
that
most
amateur
them rest upon the same founda¬ however,
tion—customer confidence. Some¬ speculators talk bigger than they
do. They are also people who act
times I think that the men who do
the least amount of actual selling upon impulse. He planted the seed
and waited for his prospect's imsuccessor, the First
Savings & make the most money in the end.
When
Loan Association.
I am going to tell you about one pluses to force the action.
an
amateur
stock gambler gets
of those fellows who sells in such
sore at
himself he usually heeds
Five
Assistant
Trust
Officers a "low pressure," soft, and easy
another's advice. > Until then he
were
elected by the Union Na¬ going way, that you hardly know
knows it all—or thinks that he
he is selling. In fact, at times he
tional Bank of Pittsburgh, Pa., on
does.
Aug. 9, according to the Pitts¬ seems to duck away from orders.
*
*
Aug. 21 the New
different ways
many
are
under¬
Moore, Gordon A. Pratt, Lewis S.
Snyder, J. Rowlett Williams, gen¬
eral
sons,
partners, and Robert H. Par¬
Alexander King, James E.
Rheim, F. H. Rohr, Jr., and Jean
R.
Ferris, limited 'partners.
.
Floyd D. Cerf Group
Sells Ludman Slock
Fioyd D. Cerf, Jr. Co., Inc.
.
decorated
George
personally
by
King
in Buckingham . Pal¬
V
ace.
Soon
Mr.
Williams
for
some
Comptroller.
of
merger
ceptance
the
the
elected
1932,
of
At
was
Amateur
the
1942,
Vice-President
he
the
Ac¬
Bank
the
as
was
was
well
as
time
of
his
Treasurer
of
the
a
member
Astronomers
subscribe
of
latter
he
of
Asso¬
ciation,
*
"
Irving
ing
has
announced
promotions:
the
of New
follow¬
Frederick
W.
one
new
share
for
*
if
*
Billo, Chairman of the
Board of Managers of the Bloomfield Savings Bank of Bloomfield,
N. J., died on Aug. 13. He was 73
years
of
Billo
was
and
was
the
age.
Stating
that
Mr.
born in New York City
a
graduate of the College
City of New York in 1897
states;
Assistant
George
A,
Borger, to
Vice-Presi¬
dent; Mr. Borger supervises de¬
who
recently
was
Bachelor of Science degree,
the Newark "Evening News" had
the
following to
say
to
promoted
res
id ent
and
Manager of the bank's new Fruitridge
office
at
5693, Stockton
*
it
North
Trust
Co.,
Barclays
lonial
that
Bank
and
(Dominion, Co¬
Overseas)
Frederic
Seebohm
to sprout.
Our dealer friend was sitting in
appointed
a
prospect came in
explained that he
sick and tired of buying and
to see him. He
was
selling,
to
BEVERLY
is
HILLS,
now
Cal. —John
with
the
He said, "I've just sold
Motors at 49 that I
Here,
53.
at
take
Funds
you
were
months
several
it to you. Pick
should
have
of
out the one
me
the
bill. I think I'll take your advice."
is
This
a
well
so
dealer
story.
was
not doing nearly
at
speculation
friend thought he
Yet,
he
judged
knew
his
man.
If he
force
a
ing.
if
he
Human
our
was
do¬
right.
< He
had tried to
of investment—
preached—if he had
program
had
as
the
of
tion, priced at $3.75 per share. All
of these shares have been sold.
from
Proceeds
to be used
the financing are
principally for the com¬
pany's expanding business.
The Ludman Corporation
is
a
leading national manufacturer of
a
window
their
own
Lok,"
as
awning-
aluminum
patented
type
trade
well
under
marketed
as
name,
"Auto-
glass and alumi¬
jalousies, jalousie doors and
num
other
about
account .Tor
windows
65 per
company's
The
products.
aluminum
cent of total sales.
Company's principal plant is in
Miami.
the
a
suburb
Steel
Co.,
Fla.,
Ludman
of whose capital
Ludman
of
90%
stock is owned by
has its plant
Corp.,
in Miami, i:
•
-
*
Company's net sales for the year
ended Jan.
strange indeed. Here was
who
man
true
a
stock
common
which
of 250,000
public offering
ago.
send
and
talking
I'll
bankers
Ludman Corp., a Florida corpora¬
the Opa-Locka,
and buy me one of those
about
I
affiliated
of
General
nature is
Gurney
most
out
carry.
200
has
(Special to The Financial Chronicle)
giving
and
in taxes and commis¬
sions, while the losses were all his
profit
leave
director of the bank.
started
made
shares
re¬
nationwide group
a
investment
34
his office and his
announce
been
day the seed that had
one
planted
Mutual
Company of America and Waddell & Reed, Inc., 8943 WilEquitable Trust Co. of New York. shire Boulevard.
Trust
But
been
money
*
With Waddell & Reed
American
bought.
bought
in Sacramento.
Boulevard
regarding his
career:
the
Vice-P
a
Baker, to Assistant Vice-Presi¬
"He started his career with the
dent; Mr. Baker asssists in han¬ old West Side Bank, and then
dling the company's business in continued in trust departments of
southwestern
and
been
to
join the
Anglo bank's Head Office
staff of
Assistant
Otto
*
Trust Company
to
1
with
York
organization
1950
in
West
moved
each five old shares held."
-
of
*
July
that
in
Cashier
through the sale of 500 addi¬ as a member of the credit de¬
tional shares, with $100 par value,
partment. As Assistant Manager
at $200
per share.
Outstanding of Anglo Bank's East Oakland Of¬
warrants
entitle shareholders to
fice, he succeeds John R. Wilson
of
upon
voted
each
was
Company, he
In
Explorers Club and
the
he
International
Treasurer
Treasurer.
Inter¬
Bank
Bank with the
institution.
death,
the
shareholders
19 to increase capital and surplus
to $300,000
each from $250,000
return,
years
In
Manhattan
elected
his
joined
Acceptance
national
which
after
"Bank
cently headed
of
170,
31, 1951, were $3,822,-
with,, net
income
after
all
charges and taxes of $248,961.
For the first quarter
30,
of the fiscal
1951, sales
year
ended April
were
$1,292,958 with net earnings,
after estimated taxes,
of $137,111.
Volume 174
Number 5040
Continued
from
.
.
.
The
Commercial and Financial Chronicle
total
a
3
page
(705)
amount
21
approximating
$200 billion.
These wartime
We Can Meet Enlarged
Demands on Our Resources
the
hands
country
tenial
of
savings put into
people of the
purchasing
a
which
Public
the
power
encouraged
them to
By OWEN ELY
go out during the postwar period
and buy goods and services which
Niagara Mohawk Power Corp.
they might not otherwise have felt
investigated the matter, they also
came
with
up
Now I
the
that the United States
see
Chamber of Commerce, in
gust
release,
confirms
illustration
risen
how
in
income
has
costs
been
our
spread
broadly among the families of the
nation—thereby greatly enlarging
the
market
American
the
for
products
agriculture
of
indus¬
and
try and the possibilities for prof¬
itable business operations.
Since
the end of the
war
alone, five mil¬
lion, new homes have been con¬
structed in the United States. This
has been an important
step
standards
raising the housing
recreation
and
rate
of
by
our
program,
we
the
costs
and
All
of
checked,
demands
educa¬
as
period in the aggregate
total volume of
keep
our
economy
have
been
acutely
and which, if left
might weaken our
sweep
some
sistance in recent months.
from
of
re¬
But
this
we
de¬
fell
never
steady at
a
were
The
liquid asset hold¬
off—it has held
level of around $200
The dollar amount of
the end of World War II financing
—$4 billion in "E" bonds alone.
There
has
talk—and
recent
been
even
months
been
considerable
there
because
cashing
some
worry—in
some
of
bonds in connection with the rush
to
purchase
consumer
fol¬
goods
lowing the outbreak in Korea.
Actually, the total dollar value of
"E"
bonds in the hands of indi¬
Many more persons each
velopment that the end of infla¬ viduals has remained practically
year are
able, because of their
tionary
dangers
has come. Indeed, unchanged. I think we should
increased incomes, to enjoy vaca¬
keep
I am certain that every one here
in mind, too, that such talk of
tions hitherto only dreamed of.
fully
understands
that
the
planned
liquidation overlooks the reasons
The records of the National Park
accelerated expansion of military
why people bought savings bonds
Service, for example, show that
the number of visitors to all na¬ output in the months ahead will, in the. first place.
They bought
of necessity, produce new infla¬
them so that they would have the
tional park recreation areas last
tionary pressures.
money
to use for some future
tion.
year
was
than
more
double
the
number who enjoyed these facili¬
ties in 1939.
Today many more
persons are able to benefit by the
advantages of
Enrollment
higher education.
a
in
institutions
of
higher learning—exclusive of per¬
sons taking advantage of GI edu¬
cational benefits—is up one-fourth
over
enrollment.
prewar
higher
standard
of
living
Our
shows
in the actual quantity figures
of the food we consume and the
up
sales records of the goods we buy.
is reflected in the increase of
It
almost one-fifth in the consump¬
tion of meat per person; in the
rise in per capita consumption of
eggs and poultry, of fluid milk,
and
fresh,
canned,
vegetables.
growing
It
is
evident
numbers
families
who
frozen
and
the
American
of
able
are
in
to
Must Maintain Balanced Budget
The
first
and
came
after
important the
outbreak
of
hostilities
in
single requisite in assuring the Korea. They had been putting off
maintenance of a stable economy
buying an automobile, or a refrig¬
to support our productive power
erator, or a washing machine.
these
under
maintain
uation.
the
is
to
balanced
a
What
adequate
which
circumstances
budget sit¬
required is an
is
revenue
will
program—one
enable
greatest
us
extent
defense bills
to
pay,
to
possible, for
they come in,
without resorting to deficit bor¬
rowing. To put our defense ex¬
penditures on this basis, it is nec¬
our
that
essary
as
have
we
additional
this year. Failure to keep
finances on a pay-as-we-go
revenues
our
basis is certain to weaken the fi¬
nancial
position
ment.- It
of
is certain
the
to
afford
Govern¬
impair the
ability of our economy to function
refrigerators, radios with maximum
effectiveness dur¬
sets, washing ma¬
ing this critical period in the life
chines and clothes dryers, and a
of our nation.
''
•
*
host of other new consumer goods
A balanced budget will not by
After
the
Korea,
of
and
war
goods r.they had
But, now, this type
buy
buying has died down; and we
try to keep it under control
must
that
so
do
we
inflationary
Every
that
not
have
the
The
must
another
The shoes from
St. Louis
manufacturers and fur
nation
when
the
public
a
It contains
28 pages
some
ratios.
northern
border
to
the
foothills
of
the
Catskill
the
on
southeast, and the Pennsylvania border on the
covers some 21,000 square miles.
Some
larger cities served include Albany, Buffalo, Amsterdam,
Rome, Schenectady, Syracuse, Troy and Utica.
the
in
the
This
region
The
diversity and extent of manufacturing and other facilities
territory account for the relatively high stability of the
company's business.
Employment in the area is traditionally
steady and the labor supply is exceptionally good.
Altogether
Niagara Mohawk Power provides electric service to a population
of
2,850,000 in 36 of New York State's 62 counties. Its two Ca¬
subsidiaries provide electric service to a
population of
about 30,000 in small sections of Ontario. Gas service is
supplied
nadian
to
a
population of 1,120,000 in 17 counties in the eastern, central
state, which area also receives electric
and northern sections of the
service from the company.
.
About 370,000 of the 746,000 residential electric customers
concentrated in and around the three
largest cities of
are
Buffalo,
Syracuse
and
Albany.
The number of residential customers has
increased by an average of 19,000 per year for the last five
years,
and in the past 12 months the number increased over
23,000. The
63,000 farm customers represent an increase of about 5,000 in five
The average annual usage of electricity by residential
farm customers is 2,053 kwh. compared with about
years.
and
1,920 for the
national average.
(Back in 1930 the System's residential and farm
customers averaged only 639 kwh. per year.)
Since the company's hydro
•
capacity has remained almost
un¬
changed since 1946 (there was an increase of about 8,000 kw. this
year), the rapid growth in output has been taken care of through
construction of new steam stations which now have a
capacity
40% larger than in 1946. Purchased power declined in 1950-51.
In the 12 months ended June 30,
1951, 46% of output was hydro,
42% steam and 12% purchased.',
;
;
.
company's capital structure is
1951):
follows
as
(as of June 30,
•
Amount (000)
% of Total
Lontl-Term Debt:
.
.
Mortgage Bonds
a
$235,138
Notes Payable to Banks
49.87%
15.750
Liability Relating to Reservoirs-—i—"
3.34
2,522
.53
•
present
•'
$253,410
emergency is over.
Preferred Stocks
Must Build for Future
(incl. Premium).
53.74%C
$80,081
16.98%
$95,810
20.32%
For, despite the present worries
and
Class A
problems which beset us, we
forget that we must con¬
American
ideal
—
the
belief
that
individual
fabricators,
William Hatcher With
Wyllie i Thornhii!
and
Common Stocks—
Pain-in Surplus
must not
program
ward
analysts,
a
State, etc.
"Financial and
Valley,
the
southwest.
of
purchasing power for
the future stability and prosperity
directed especially to¬ we are
building for an ever better
saving. To ac¬ future, and a peaceful and a pros¬
complish this important objective, perous world where freedom and
the products of stove foundries
the Treasury is* going to inaug¬
human progress are the rightful
and electrical equipment plants,
urate on Labor Day, at Grand
heritage of all mankind.
the processing and packaging of
Rapids, Michigan, a new Defense
food products, all show the results
Bond Drive.
of improved techniques, of finer
There
are
many
things ' that
workmanship, of superior mate¬ each one of us can do to
help to
rials, of greater emphasis upon
keep inflationary pressures under
functional styling. These improve¬
control.
Most
are
little
things,
ments are clearly evident in the
but in the aggregate they add up
CHARLOTTESVILLE,
V a
—
products of this city.
to something big. We can refrain
William M. Hatcher has become
from unnecessary buying of goods associated with
We Can Meet Demands on Our
Wyllie and Thornor services of the kind that give
Resources
v
hill, National Bank Building. Mr.
rise to inflationary pressures on
Hatcher
was formerly with Smith,
The evidences of the truly re¬
the price level. We can regularly
Barney & Co. in New York.
factories and the fashions of dress
from
and
Mountains
power
stantly build for the future. It is
in that perspective that America
has always advanced. It has been
the desire and hope for a better
future that has given us as indi¬
viduals* the courage and fortitude
to adjust to the emergencies of the
present, and to meet the common
ices at our command. The grow¬
controls.
w
need to protect the nation's se¬
ing and diversified industries of
Another program high on the curity.
St. Louis provide excellent ^ex¬
list of effective anti-inflationary
It is part and
parcel of the
amples of what * I am 'talking
measures is a nationwide
about.
of
use
how
York
natural gas distribution plus manufactured
gas facil¬
It provides electric service to a
large part of the New York
area from the
Niagara Frontier to the Hudson River
ities.
of assuring the maintenance of
ing the postwar period.
sound economic conditions in the
And, in addition to being able
country. We need, in addition, a
to buy more actual goods and
broad anti-inflationary program
services than at any time in the
which will act as a direct check
past, there is a notable improve¬ on
specific inflationary pressures.
ment in the quality of the prod¬
This program requires that we ef¬
ucts which we buy and the serv¬
fect the necessary restraints and
savings
the
dollars
great defense effort, but
our
for
of
New
extensive
State
reservoir of
of
is
of
Niagara Mohawk Power Corporation is one of the
largest
completely-integrated electric operating companies, and also has
The
realize
booklet
idea
some
industries
including various financial
saved today are
for the nation—
not only economic power to back
up our
other
the varied
Statistical Review" dated June
30, 1951,
of tables and
text,
of prices.
upsurge
individual
building
-
itself, however, do the whole job
to
utility operates,
remembered
some
shortages of the last
rushed
been wanting.
television
which our industries have pro¬
duced in increasing volume dur¬
emergency. For
or
people that time
most
automobiles,
and
need, pleasure
some
public schools to give their students
has
savings
!
Niagara Mohawk Power has recently issued two
interesting
publications. One of these—"Niagara Mohawk—The
People and
the Land It Serves," is a beautiful
brochure with some 40 pages
of artistic
photographs and maps and an explanatory story.
It is
the type of educational booklet which
might well be used by
sav¬
ings bonds outstanding has, in
fact, increased by $9 billion since
un¬
pro¬
to interfere
conclude
ings
billion.
strong inflationary
which have threatened
not
Consumer purchases in the post¬
war
but
Fortunately, the upward
prices has encountered
must
ings.
made out of current income.
ductive
tent
freely because
large reserve of sav¬
This has been an important
a
perity which the country has en¬
joyed since the end of the war.
economic stability during the
past year
incomes
they had
factor in the unprecedented pros¬
the
pressures
our
could
in¬
this is a vast
with wise policies
us
of
buy. They
spend their
De¬
sound and growing.
aware
current
they
to
economy,
time
same
that
afford
•
support this effort and at
can
felt
double the present rate.
Measured
upon
could
to
$65 billion by the middle of 1952
—almost
they
nearly
scheduled
are
annual
to
crease
machinery to such an ex¬
seriously with
of
the output of vital defense goods.
in
our
people.
This betterment of
the way of life of millions of per¬
sons extends to many other fields.
Consider
not yet been felt.
gram
enterprise
purposes,
production at high levels. But the
full impact of the defense pro¬
fense
substantiating
has
same
same
income
evidence that this increase in
national
the
while at
time maintaining civilian
dramatic
single decade.
a
have
we
a
real
free
a
during
economy
And
of
Au¬
an
this
interesting fact. Here is
has
result.
same
mobilization
Utility Securities
po-
Earned
Surplus
——
Total
Common
Total
Capitalization
The
Stock
Equity
—
earnings record in recent
years
is
as
12,551
2.66
29,674
6.30
$138,035
29.28%
$471,526
100,00%
follows:
Revenues Net Income
12 Months Ended June
30, 1951
Share
(Mill.)
(Mill.)
Earnings
$1.93
$164
$19.7
Calendar Year 1950——
152
19.9
1.96
Calendar Year 1949
139
19.7
1.94
__—
Calendar Year 1948—
138
Calendar Year 1947—J
128
Calendar Year 1946
117
The
17.1
1.59
19.0
1.85
19.8
1.96
j
,
,
recently received a long-pending rate increase
of about $2.5 million which, after allowing for Federal income
taxes at a 50% rate, would amount to $1,125,000 or about 12c
a
share
company
Assuming that the Federal income tax rate
applicable to the second half of 1951, it is esti¬
calendar year earnings may approximate $2 a
per annum.
should be
mated
50%
that
1951
share.
The
-
■
•
■
-
.
stock
is currently
.
selling around 23
and pays $1.40 to
yield about 6%.
J. W. Chandler With
W. A. S. Wheeler Now
markable industrial achievements
of
this
period and the growing
strength of individual
economic
American
that
dence
families
we
demands
nomic
resources
needs
us
meet
can
larged
defense
give
confi¬
the
en¬
our "eco¬
provide the
Communist
table
we
to
have accomplished no¬
increases
in
income
some
an
—
extra portion of
put it into
production for
W. L. Lyons
our
savings of
Two With Bateman,
type.
People
(Special
were
urged to
save
dur¬
upon
which
aggression has forced upon us. Al¬
ready
put away
ing World War II.
They built
up
liquid assets
And they did.
record holdings of
—
savings accounts,
to
The
Financial
LOS ANGELES,
Eichler
Chronicle)
Calif.—Eleanor
M. Bauer, Clarice Booth and Elsie
H.
Christensen
staff
to
the
&
Co., 453
of
have
been
Bateman,
added
Eichler
& Co.
William A.
LOUISVILLE, Ky. —James W.
Chandler
has
become
associated
come
S.
Milter
associated
Wheeler has
with
be¬
Neergaard,
South Miller & ;Co., 44 Wall Street,
Street, members of the New members of the New York Stock
with W. L. Lyons & Co., 235
5th
York
and
Midwest
Stock
Ex¬
Spring St., mem¬ changes.
Mr. Chandler for the
checking accounts, cash, and hold¬ bers of the Los Angeles Stock Ex¬ past 25 years has been with Stein
ings of Government securities to change.
With Neergaard,
(Special to The Financial Chronicle)
So.
Bros. & Boyce.
"
*
Exchange.
proprietor
& Co.
,
Mr. Wheeler has been
of
W.
A.
;j__ x,..: I
S.
Wheeler
i!— l-wi
The Commercial and Financial Chronicle
Some
given you such stocks.
have turned out okay;
lomorrow s
Walter
But
have not.
caused
Markets
Thursday, August 23, 1951
.
Whyle
stocks
to
not
=By WALTER WHYTE=
I prefer
add at this time.
suggest
buying
new
everybody else is on
If you're a follower of the the bandwagon. In fact, des¬
Dow Theory you know the in¬ pite the optimistic forecasts,
it seems to me that the mar¬
dustrials made a new high
ket is kind of getting ready
last week; the rails did not.
when
to
Industrials, in
You know the
from
retreat
its
present
reaching 266.17, last Friday, high levels. This doesn't mean
a
reaction will start
right
made their highest level in 11
and if you're long of
you're probably quite
years
stocks
cheerful about things.
*
*
it does
that it is desir¬
mean
course
the Rails have to
abiding conviction that despite
our faults we
have the capacity
of
an
It's better to wait until some
words
ten
for them it may be
dustrials; The latter condition
cheaper in the long run.
pay more
given rise to two theories,
or beliefs, or whatever they're
called. The first is a wide¬
has
rails
spread opinion that the
have
will
to
for the
up
go
somewhat naive reason
The second is
soberer, but kind of
warped. "The rails will go up
because
the
industrials
wouldn't
and make a
up
go
high by themselves un¬
there
was
something
new
less
stewing."
yi:*
bad
*
*
a
throw into the current
I
All
can
tell
you
hassle.
is that
signs of isolated
strength in the rails as well as
in the industrials. But for the
life of me.I can't see what all
there's
will
this
the
to
mean
Dow
Averages. So because I can't
foretell
the
future, I'll go
along with stocks and what
they seem to point to, rather
than to averages that every¬
body's watching but in which
nobody has more than an aca¬
of the author only.]
those
Everybody knows that
Telephone's strong and it is a
lovely blue chip. Still, out¬
institutional and the
of
side
so-called widow buying,
stocks the
The
who
know who's long of it?
do you
interested in
are
is that some of
known how to think
truth
plain
not
have
We
act.
We
puzzled.
are
confused
as
hostilities in Korea will materially
or
CLEVELAND, Ohio—Walter R.
Hughes is
now
affiliated with
Prescott
&
Co.,
National City
Bank Building, members of the
New
York
and
Midwest Stock
Exchanges.
Ore.—Elwin Mil¬
the staff of Blyth &
PORTLAND,
Co., Inc., Pacific Building.
Investments
(Special to The Financial Chronicle)
Calif.
FRANCISCO,
W.
solidated
Wilson
is
with
—
Con¬
Inc.,
Russ
(Special to The Financial Chronicle)
SAN
FRANCISCO,
J.
ward
Calif.—Ed¬
Fitzpatrick is with First
California
Company,
300
Mont¬
gomery Street.
SPECIAL
PUT
OPTIONS
Oct. 25 $325.00
287.50
350.00
325.00
Securities
U.S. &
387.50
137.50
362.50
For.Sec.@50% Nov. 17
.....@56
Sep. 28
Oil N. J.. @68% Oct. 15
Pure Oil
West.
Members
New
Stock
York
Curb
Exchange
San
Francisco
Exchange
Stock
(Associate)
Exchange
Chicago Board of Trade
14 Wall Street
COrtlaadt
7-4150
New York 5, N. Y.
San
Francisco—Santa
Barbara
Monterey—Oakland—Sacramento
y,
Fresno—Santa Rosa
Maryl'd@21
Corp..
Oct. 29
.@21% Oct.
Int'l Tel & Tel @16% Feb.
Pac. West. Oil @17% Jan.
Mission Corp..@27% Oct.
Grt. North. pf @49%0ct.
So. Pacific
@62% Nov.
Kans. City So.@63
Nov.
.
537.50
525.00
225.00
17
112.50
19
137.50
22
87.50
8
137.50
22
225.00
16
300.00
387.50
24
Subject to prior sale or price change
Explanatory
Teletype NY 1-928
Private Wires to Principal Offices
many
You and I
of them are now
handiwork as
living in
are
of
most
civilian
an
age
pamphlet
on
request
demands
for
The question is,
our economic struc¬
the double burden
buckling under it? The
carry
without
danger here does not lie primarily
in putting American industry and
a severe
and pro¬
World War II
and subsequently, they have the
ingenuity and potential capacity
mean
Association, Inc.
Broadway, N. Y. 4, Tel. BO 9-8470
is
emerge
funda¬
few
a
on
which there is almost
unanimous
agreement. The first
security is ex¬
mentals
national
that
is
pensive
and
Americans
are
that,
willy-nilly,
going
to
have to
Much as we dig deeper and deeper into their
would like to, we cannot return
pockets to foot the bill. The sec¬
to a peacetime economy in the
ond is that non-military expendi¬
everywhere.
threat
Communist
the
cause
is
mains
and
It may
flare
deadly
as
General
re¬
ever.
into open warfare,
up
it may continue as a
or
as
tures
crisis, in
words,
Ridgeway's
be¬
substantially
be
can
curtailing
without
duced
needful
activity
re¬
any
government.
of
Furthermore, I do not think it is
secret that tbe government
been unduly frugal, and
any.
has
not
its
explanation .for the need of
now- higher taxes
would come with
Korea—and
in
any
that results in 75,000
a
not
war,
grace if it could demon¬
engagement strate that it has kept its financial
casualties is house in good order. I
police action—will
a
On various occasions in the past
change the problem only slightly
I
in degree and
in the area of
not at all in kind.
have
thesis that
the
developed
legitimate expendi¬
tures the taxpayer has not been
necessities: First, of strengthening
getting his money's worth, be¬
our defenses arid those of our Al¬
cause of appalling waste. A corol¬
lies; and, secondly, of preparing- lary thesis is that there are large
will
for total
war
with two
be faced
still
.
in the event of an
conflict.
all-out
is
This
1
where
stand
we
now:
governmental
indefensible
expenses
moral
because they are not on
any ground proper to government.
Much of the money that is being
are
on
any
ground
,
taken from
the
imposition of price and
production controls, with wage
controls presumably to come later.
If Congress has not been com¬
pletely deaf to his suggestion, it
has made them largely ineffective
by its temporizing and more or
less passive resistance. Meanwhile,
the average citizen, watching the
cleavage between the executive
and legislative branches of his
government from afar, seems to
for
of
areas
that
only to break feel that the
controversy is some¬
in the what
beyond his economic depth.
national purchasing If he takes
sides, he is more likely
of
controls
touchy, the subject of taxes is ex¬
plosive. Out of the controversy,
to set new records
actually
in taxes is
us
being used for purposes that will
first weaken and then destroy the
substance
American
of
govern¬
while
retaining the hollow
mockery of its empty forms.'The
ment
taxpayer resents not only
of money he has to
in taxes, but also the dicta¬
average
the
amount
pay
torial
that
attitude
the levyirig
arbitrary spend¬
ing of tax revenues is a perquisite
of taxes arid the
of office,
It
; :
unfortunate
is
should
payer
-
v
feel
;'
that
this
the
tax¬
way.
and
doubly unfortunate that he should
beyond the ability of in¬ than not to line up with Congress.
have ample justification. Only the
dustry to satisfy it, which is quite Why? His remote reason is that he
hardiest propagandist can under¬
a different thing. As the gap be¬
has a
dislike of
"controls" and
power
take
and
goods becomes wider,
prices rise until serious inflation
becomes a very real threat.
tween
purchasing
power
is
real
threat?
the
Eric
all that they
reason
the
his
sees
imply. His immediate
defense of the Administra¬
a
tion's fiscal
record, which ranges
is( that he wants to avoid from bad budgetary
that will be put on flagrant
diversion
of
welfare (as he
it) and his own personal in¬
own
personal
payers'
money
to
guesses
squeeze
the
tax¬
in the interests of
keeping the bad guessers in office.
it must be ad¬
In a discussion such as this it is
said that the dollar is even now mitted, certain shortsighted indi¬
easy to yield to the temptation of
worth about 50 cents in terms of viduals who do not object to price
making the national Administra¬
its 1939 value, and that the long- and production controls, but who tion a
deep-dyed, conniving vil¬
balk
at the wage controls which
range prospect is for a 30- or 40lain, and of giving the citizen all
cent
would
hit
them
most
dollar.
Charles
Wilson
is
directly. of the virtues of the hero in one
equally gloomy in his prediction Their economic reasoning is rudi¬ of the old 10-20-30 melodramas.
of "The Disaster of Runaway In¬ mentary, but their instinct of selfThere is a
comfortable contrast
flation" unless the Administration interest is highly developed in¬ between the
villain who .can do po
deed.
controls program is set up.
good and the hero who is inca¬
Johnston, Economic Stabilizer, has
income
consumer
now
at
the
rate
of
is
come.
Let
There
us
are,
leave aside for
about the merit of controls
or
a
moment
their lack
pable of evil; but
the
heroic
as
I have said
ill
mantle
becomes
produc¬ of merit, and note, just briefly, many of us because of our will¬
nature
of
the
tion of
consumer
goods is not the
arguments ingness to subordinate public in¬
increasing; on the contrary it is marshalled against them by a cer¬ terest to private interest. It is tpo
expected to decline during the tain type of opponent, whose ap¬ easy to still the voice of conscience
next 12 months. Industrial wages proach is not objective, but sub¬ in
anticipation of profit.
are increasing faster than indus¬
jective. They do not ask, "are
It is a disturbing phenomenon
trial output per man. Nor is the controls
good
or
bad for the which suggests that any inventory
trend of prices abroad reassuring. country?" but "are controls good of our national assets and liabili¬
billion
a
year.
The
and remember or bad for me? How will they
defense pro¬ affect my business or my income?"
gram is scarcely under way—are When the obvious answer is that
already on a much higher level the individual will be called on
than prices in the United States,
to make some sacrifices, he de¬
a
differential which will be re¬
European prices
that
the
flected
pay
in
—
European
what
we
will
for the materials
These
are
some
we
have
to
cided
that
he
wants
no
part
of
import. controls. Well, that is an attitude
of the forces that
that any one of us
can under¬
prices upward and
stand. But it is an approach that
unless
steps are taken to curb
them—either the Administration's we cannot condone as a basis for
are
driving
controls
THOMAS, HAAB & BOTTS
Members Put & Calls Brokers & Dealers
50
the
goods.
how long can
ture
$20
Mo.Kan.Tex.pf.@54
Oct.
1
Ch.Mil.St.P. pf.@47% Oct. 22
Amer. Woolen @40
Nov. 5
Std.
not
under
it
to
of
subject
the
If
allotted
of checks-and-balances.
the system
public yond "the life of anyone
there is a; living." The outcome of the war better
are.
Just
225.00
York
that
baffled by their
as
increasing
Pacific Coast
Radio
,
Rail... @52
will
Korea
inflation.
of
forces
the
growing conviction that much of
the confusion is of their making
How
First California Adds
Steel. ..@42% Oct. 20
New
read
available
Investments,
constitution
them. The real danger lies
Bait. & Ohio. .@20y2 Nov. 7
North. Pacific @47% Oct. 26
,
I
think
I
increase
U. S.
Schwabacher & Co.
fice.
mind aright when I say
of their record, in
(Special to The Financial Chronicle)
South.
Pacific Coast Exchanges
ma¬
longed test, because on the basis
With BIyth & Co.
Per 100 Shares
Orders Executed on
the
least
at
we—or
industrialists to
From time
25.
to understand are not
getting much help from some of
the
men
whom, for better or
meet
Robert
prerogatives and responsibili¬
ties which the wise framers of the
the
try to discover some logical pat¬
in the welter of conflicting
foreseeable future. Ours must con¬
circumstances
under
which
we
tinue to be a garrison state be¬
must
live.
And
certainly
our
tern
Congress began surrendering
fore
duty, American industry is busy We fear runaway inflation, but
turning out the materials of war. we are not
doing very much about
Simultaneously, it is continuing to it. President Truman has called
Co. and Francis I. du Pont & Co.
SAN
in
Peace
peace
become associated that is politically and economi¬
It is abnormal
with Livingston, Williams & Co., cally abnormal.
Inc., Hanna Building. Mr. O'Mal¬ economically because the produc¬
tive capacity of the United States
ley was previously with Gottron,
is being called upon to do double
Russell & Co., Saunders, Stiver &
With Cons.
the
affect
are
we
assume
be that
may
a
however,
of course, completely naive
that the cessation of
It is,
to
us
being
and
human,
are
we
in
have
ica's downfall.
has
ler has joined
which
government. It
this is
mind, what they hope for, when
We
CLEVELAND, Ohio—Patrick A.
O'Malley
deflation
healthy sign. If so, I could
wish that it had come sooner, be¬
they speak of the "Inevitable" de¬
pression which will cause Amer¬
or
the executive branch of
lative to
the
Communists
the
what
that in times of national
danger our reactions are imme¬
diately and automatically noble
and unselfish. They are not. The
of,
we
(SpeciRl to The Financial Chronicle)
majority are
those selling
40, maybe even under
to time I've
under
Williams
the
is
the
past several
piously wonder¬
during
"the
,
This is not to say that we are
of the stuff that heroes are made
and
With Livingston,
Building.
❖
*
They are presented as
Chronicle.
demic interest.
*
with
With Prescott & Co.
juncture I wish I
worthwhile opinion to
this
At
necessarily at any
those, of the
not
coincide
time
"that
they're due."
mite
do
article
York,
inflation
the prudence and
in this jority of us—elected to public of¬
expressed
views
New
intelligently— in history has always followed."
and in the long run successfully— This, by the way, is a bit of eco¬
with any and all enemies of our nomic cause and effect well rec¬
ognized by Marxist dogma. It is
heritage of liberty.
worse,
[The
fashion?
that
final and
crowning evil of every period of
They're still some of the
present enthusiasm has
points away from dupli¬ run its course. If you have to
gropings
cating the action of the In¬
be wormy.
In the
of the National City Bank
in
of Congress,
do ing about the wisdom of another
transfer of power from the legis¬
they
if
happen
which
An¬
controversy.
the attitude
is
months has been
the wisdom, to cope
understandably
*
❖
spiral
human
being.
#
Of
buying
able to defer any new
for the time
'
*
„
though it's possible. But
away,
this faith goes a
belief in the American people and
and the courage,
will
What
initi¬
individual
and
With
ative.
controls
the
other
Inflation Is Oar Real Danger
enterprise
I don't have any new
to
terests. This is
some
*
*
*
welfare to private in¬
only one side light
general
first page
on
sleepless
any
you
Continued from
of these
none
nights.
Says—
a
.
.
(706)
22
program or a workable decisions on public affairs. This
alternative—prices will spiral up¬
country was not founded by men
ward until they disappear in the
heavens like the boy in the Indian who subordinated the public in¬
terest and the promotion of the
rope trick.
ties
is' far
does
from
complete
not
tion
give careful
the integrity
to
integrity of
the
or
public,
integrity or lack of
in public office.
if
it
considera¬
lack
and
of
the
integrity
of
men
One of the most appalling
of the
times
bright—and
with
agree
necessary
ment
of
leading
moral
and
to
signs
is that Senator Ful-
thoughtful
many
him
—
should
men
find"
it
to call for the establish¬
a
special
commission
citizens ....to
standards
suggest
of
study
of
"the
government"
means
of improv-
Volume 174
Number 5040
.
.
The
.
Commercial and Financial Chronicle
(707)
ing the conduct of those who hold
public office/"
>■-*
Just how far afield have
as
tution
of
There
was
ernment
policy
needed
There
true.
is
code
longer
no
time when such
was a
suggestion
.greeted by
written
no
this
but
have
would
been
of indignation,
a wave
tion
for
all
the
for
recipient
the
of
subsidy
job security for the politician.
It
principle?
for
time when the Gov¬
a
ethics,
a
got
result of the constant substi¬
a
or
we
working agreement is arrived at:
exchange of financial security
An
is
neat
a
Let
trick.
us
see
how it has worked with regard to
the
farm
which
price-support
is
most
notable
that
the
program,
and
the* oldest
of
one
It is true
subsidies.
program
agricultural economy; true that
only turned the light farmers have been producing more
than
the
American
capacity to
of publicity into the dark nooks
V and crannies of the underworld, consume; true that the Govern¬
but also revealed the extent to ment has sold potatoes for less
which its ramifications extended than the cost of the bags they
into high places in Government. come in; true that it is one of the
Close
not
disclosures
Senate
a
most
potent
before
Then
why
which
continued
the heels of its unsavory
on
Comptroller
Warren
hearings
came
Subcommittee
at
inflationary threats.
is it continued?
It is
because
aid
if
the
to
Lindsay C. farmer were withdrawn and farm
that during the prices were permitted to settle to
General
testified
their
normal
level, the political
"shockingly low moral stand¬
ards were exhibited by those con- repercussions would blast many of
the
men
now
in office right off
rcerned with war contracts, both
public
in government and in business." the
payroll,
a
prospect
war
•
We have
from tne
which
a
public trust, or
days of Grant, who, when
was a
evidence of corruption was
.before
him, said,
escape.""
man
These
lthe
bureaucrats
do
not;
guilty
"Let no
other
and
placed
disclosures,
is his job.
giant step
realize
that
when
do
With
it
is
this
background in mind,
somewhat
easier
under¬
to
Father
have gov¬
America,
has
ernment. We have government be¬
historian
of
have rights because
has^ only
those
we
we
have rights.
cause we
Government
"just
powers"
principles
spectacle
the
risk
of
having
you think that I am emphasizing
the obvious unnecessarily. But the
very point at issue is that these
simple principles, which you and
I
accept
fundamental in man's
as
relationship
government,
generally understood
generally accepted. We
nor
to
his
to
neither
are
have
lost
sight of them
pursued the chimera of
in
economy
the kind of
seem
which,
race
we
as
political
regardless of
one
a
runs, every¬
body wins and everybody gets
a
prize.
As
right ourselves politically
—and faint as they are—there are
a few signs that we are
going to—
we
Finance
why the
•public remajned complacent, it is
to go back
necessary
to
few years
a
adequate and
bill. It is easy to
somebody else—not me. Let
pay;
George
do
realize
that
it." The sooner we
everybody's name is
significant change in the George, the sooner we will begin
philosophy of American govern-* an intelligent attack on the prob¬
the
During
early
1930s,
"government began to shift its em¬
phasis from promoting the general
welfare
to
providing the general
In his study, "The case
welfare.
against the Welfare State," Sen'ator Karl Mundt of South Dakota
points out that "Precisely in the
-degree that Government in this
.country shifts its emphasis and its
efforts from the job of promoting
to the job of providing the gen¬
eral
welfare,
shifts from
the
United
States
State operating on
principle of private enterprise
the
"and
a
individual
initiative
-operating
on the
Welfare State."
What has
placency?
"
-
this to do
new
one
principle of the
Just this.
of the
*non
to
with
com¬
sine
A
qua
philosophy is that
certain groups should have special
consideration, including a finan¬
cial bonus. This was a welcome
{development indeed to those who
favored
were
government
beneficiaries
of
largess
which, after
all, is nothing more or less than
taken from the pockets of
all of us through taxes, and, ,in the
tease
of
the
farm
price-support
program, the higher prices paid
money
for foodstuffs.
The
members
the
of
favored
groups—whether they be farmers,
laborers, or businessmen—decide
there is
that
•all.
They give
after
their independ¬
a subsidy.. Who
they to criticize the standards
up
in return for
ence
are
Santa Claus
a
lems,
direction.
their
All they ask is
kept coming. At first
they may be grateful. Later they
^become demanding, and a force
that the politicians must reckon
with.
be
About this time
we
note the
development of pressure groups
rwho
use
collective
Strength to
'
gain
their ends,
and
the
vicious
;circle is complete. Pressure groups
that are selfish are also fatuous.
.They
are
titude
while
,are
that
bills.
some
more
selfish because their at¬
is, "I
going to get mine
the getting is good." They
fatuous
am
because
they
think
somebody else is paying the
They seem to think that by
miracle it is possible to take
out of an economy than is
put into it.
Eventually,
a
kind of
foreign
that
domestic,
and
have caused these middle years of
improper
we
political
insure
can
influ¬
frame
as
for National Defense and
to enact tax legislation. It is the
duty of every American who has
been shirking
to begin bearing
all
and
I
pull
ask
is
my
even
an
weight,
break,
us
crisis
we
previously.
are.
made
has
realistic
more
been
you
of
we
have
know
what
than
We
all
face at home and abroad, and
that
salvation lies in
our
hands
heads
and
else.
have
We
where
there
our
sought
was
no
own
security
security,
se¬
curity at the expense of others.
Now, after a period of trial and
know that economic se¬
error, we
curity and higher standards
attained
not
be
one
class
another.
Nor,
Nourse
by
the
of
says,
as
can
off
playing
against
people
Edwin
Dr.
they
"be
ferred by union contracts or
legislation.
can¬
Security
G.
con¬
social
be
must
created
by skillful, conscientious
persistent work, and by equit¬
able payments."
and
And
know
we
fortunately
now
—
and
we
learned
before it is
too late—that there is no political
security in
a government which
ignores
the
everlasting
tacitly
truth
that
it
is
man's
agent
for
the
protection of his unalienable
rights. There is no political se¬
curity in a government which does
not, or cannot, distinguish be¬
tween rights and privileges. There
is no political
security for the
individuals
whose
pends upon
withheld
at
bureaucratic
taken
all
has
well-being de¬
subsidy granted
the
will.
of
vagary
We
will
or
a
have
great stride forward when
men
can
is
a
a
give
realize
us
that
government
nothing—because
nothing to give. All it
can
it
do
redistribute, and in that direc¬
possibility
that Americans do not know their
true worth and
strength. I wonder
if we have been
selling ourselves
short.
Can the
sometimes
to realize
ure
defeatism that
be laid to
sense
of
one
I
concerns.
that I am neither prophet
pundit. Nevertheless, it is dif¬
ficult to resist a little specula¬
tion. The great majority of eco¬
gloomy picture here today.
Now
no
who
one
has
at the age of reason
deny the
can
seriousness of world conditions
liabilities;
:v;:
First, thanks to free enterprise
individual
have
indus¬
an
owns
than 10 times
as
much
of the world's goods as the
aver¬
age
non
brought
-
American.
luxuries
into
We
have
the
cate¬
Fathers,
those
represent industry, banks, and in¬
vestment firms predict that busi¬
knew
well
economists
predict
other
But
this
the
that
business
far
is
magnificent
tradition which
to
so
If
come.
has
by
us
political
been
the
than
handed
Founding
wise
who
men
whence
liber¬
our
in our time have
we
treated that tradition rather shab¬
did
we
malice.
not
Quite
do
so
through
contrary, our
the
will
continue
on
the
upward freedoms were so much a part of
swing, and inflation along with it. us we took them for granted. We
In
other
words, you pay your did not realize how dearly bought
Now that they are in
money and you take your choice. they were.
Naturally, these forecasts must danger, we not only realize their
be
weighted
Korea.
In
the
cease,
thanspires value,
what
by
event
that
hos¬
production,
war
We
but
will
our"
never
lightly.
so
reach
We
its peak some eight or ten months
people
on
is
expected
now
to
hence, will be slowed down
some¬
dereliction.
own
again
Now
worth.
which
we
Johnston
spokesmen
Charles
and
against
warn
such
expect
may
again
are
their
alert
an
guard
against
the
Satanic philosophy which teaches
that the rights of man come from
what
being called,
There is another
Wilson
is
to
may
is
State
Teach
the
him
respecting,
sponsible.
been
suggested,
Korean truce could
truce?"
That
be
is
"The
than
more
possibility.
After all, We Americans are find¬
a
Henry
unit
of
the
W.
As the
govern¬
that
his
home
is
his
castle, and his sovereignty rests
possibility that beneath his hat.
Make him self-
if,
has
with
say
Grady: "Exalt the citizen.
affects the economic future. What
as
a
State
arm
of
tion
T.
America.
of
that
the
sulting
In
major
from
anticipation
problems re¬
defense effort
the
are
yet to
come, and will appear before the
end of the year, a substantial
por¬
tion
of the
Association's 38th
an¬
nual convention in San
Francisco,
Sept. 11 to 14, will be given
to how
they
can
over
be met.
Officials from the principal gov¬
ernment
agencies controlling the
decisions, as well as officers of va¬
rious
private enterprise groups,
the forum, including
Raymond M. Foley, Administrator
of the Housing and Home Finance
Franklin
self-reliant,
Let
for
can
D.
Richards
the
of
Federal
Housing Administration;
T.
B
King, Director of the loan guar¬
anty section of the Veterans Ad¬
ministration; W. A. Clarke, Con¬
the
Office of Real Es¬
tate Credit of the Federal Reserve
System
administering Regulation
X; and W. P. Atkinson, President
National
the
of
Association
Home Builders.
^;
of
7
him
nothing
do, and
■ •
In his
statement, Mr. MacDonald
admitted that the first half of 1951
has
been
considerably better,
building-wise, than had been gen¬
erally anticipated, and, by and
large, the government and private
industry have been successful in
fighting the inflationary rise
through the restrictions set up f
year ago.
But, he contended, th
next two months will be impor¬
building and financing is gainin:
momentum.
"It
is
not
government
intention
the
to
kill
of. the
building —i
would create the most serious
em¬
ployment
already ment, he is the unit of the State.
Psychological
"The
Letdown."
Eric
as
We
ad¬
according to
MacDonald, President
the Mortgage Bankers Associa¬
Milton
prize'them tant because the decline in homi
know
we
and the peak will be de¬
layed until well into 1953. In that the State.
ministration
on
from
over
face to face with
the realities of government credit
subs early this fall,
sultant to
important
more
the
down
this year,
largely
carried
come
Commissioner
more
gory of common necessities.
On
en¬
of
during the next six months.
On
the long range forecast they are
divided in their opinion, and I
think you will find that the line
of division is interesting. On the
one
hand, the economists who
decline.
1950, will
home
and
far
so
operating
commitments
by
other nation in the world. The
Agency;
American
makes
and
any
average
ties
been
living such as
people in the world has will address
other
no
have
,
initiative, We
standard
a
nor
will
or
gravity of our domestic prob¬
lems. But only the
wilfully pessi¬
mistic can deny that our assets
far surpass our
lending
building which,
within these industries
arrived
the
and
restrictions remain in effect.
Mortgage
our
strength?
To bring this
thought closer to
home, I confess that I have been
guilty of drawing a somewhat
said
nomic observers agree that prices
and industrial activity will rise
we
fail¬
a
productivity unmatched
nowhere
and
the
trial
event,
think
in
have
is
course,
immediate
most
The
Frankly, I
lie
MacDonald, President
Mortgage Bankers Associa¬
tion of America,
says goal of
1952 in home
building cannot
possibly be reached if present
of
un¬
known. We
what,
current
not
Financing
Milton T.
para¬
mind—the
ever
politically and economically. Am
I going to get it?"
".
key to the
of
our
of
in
to
curious
a
look,
tilities
try
was
country powerful
before, yet hovering in
a
joy
Now you may ask, "What about
me?
I
belong
to
no
pressure
I
summer,
than we have known for
the past two decades at least.
The immediate economic out¬
his share of the burden.
group.
of
frame
—may
ness
money
mind—it
Home
the
will
certainties and the contradictions
hand, government and labor union bily,
Century to be variously
Age of Fear," "The
Age of Anxiety," and "The Age
of Confusion." Right now it is the
duty Of Congress to raise the
beginning of
I wonder if the
doxical
called
"The
that
hence
years
Predicts Decline in
of
perilous uncertainty."
sounder
a
of
never
the 20th
of conduct of those who aim it in
that- it
inating
economy
an
a
ment.
very
ences
and
Corpora¬
In order to understand
prosperity, but I do
definitely mean that by elim¬
in its attempts to evolve workable
equitable tax
sympathize with Charles E. Wil¬
son
when he says "I cannot work
tion and the despicable sale of
•Federal-jobs in Mississippi, are in- effectively with the hand-cuffs
,dications of low moral standards that pressure groups are forging
"
i;of conduct on the part of our pub¬ for me now."
lic officials, but they are an even
And what about a lot of the rest
.graver
indictment of a public of us? For a long time we were
which failed to rise in indignation willing to duck responsibility. A
when they were made.
lot of us sard, "Let somebody else
Reconstruction
of
Parsons
suggested
50
see
1951, found the American people
an
unprecedentedly paradoxical
in
at
Wilfred
write: "The
which it derives "from the consent
of the governed."
I mention these
stand the dilemma Congress faces
controls
spective of time usually can
nothing but the loose ends.
not
dreamed
•like the selling of influence in the
i
second
we will gradually right ourselves
long way indeed
Much as the bureaucrat;
from the days of the forthright relish.
economically. I do not mean by
loves
his
Grover Cleveland, for whom a
fellowman, his first love that that we will have an un¬
come
public office
<
Marxism.; We will have
a
men
.
price-support
has sapped the foundations of our
but not today. The Kefauver Com¬
mittee
lies
taken
23
and
lean
that
re¬
the
on
his
own
the govern¬
that his State
on
did.
back
for
problem possible if
What was sought was a cu
to 800,000 or 850,000 star
this year,
that
it has
-
■
and it now seer :
done. The go
been
for 1952 is the same but it canrt
:
possibly be reached if all preser
restrictions remain in effect," M
.
MacDonald declared.
The principal inequity at t!'
moment, according to Mr, Mac
Donald is the blight put upon th
normal flow of mortgage credit b
ment for nothing
Let him cultivate inde¬ the
ing out that defense is expensive. can do.
government's freeze on FH/
Is it within the realm of prob¬ pendence to the point of
sacrifice, and VA interest rates while per
learn
that
humble
ability that the Soviet leaders are and
things mitting a general rise in the cost
discovering that offense is even with unbartered liberty are bet¬ of all other credit, as has been
more expensive. Korea might be a
ter than splendors bought with its done with the Federal Reserve
military turning point. We know price.' Let him neither surrender withdrawal of support from the
from experience the rapidity with his individuality
to government government bond market.
which the Communists can change nor merge it with the mob.
The Association, he added, b
ideological fronts. If it is a turn¬
"Let
him
ever
stand
upright scheduling this national forum c
ing point, the United States will and fearless, a freeman born of discussion at its San Francisc
presumably change the pace of its freemen, sturdy in his own convention in an effort to explorr
defense
schedule,
and
consump¬
tion for armament would slacken
off.
Consumer
demand
will
remains
be
to
be
ever
hold
official forecast
I
wish
neat
way
there
that
story
inflation.
there
of
is not.
a
on
that
clusion with
tual
were
summing
It
a
are
permit anything
on
and
on,
in the midst of
so
neat
we
who
utmost
temple
own
of
its
r
are
per¬
problems which will be cor-
for the ways to
meet them.
With Waddell & Reed
(Special to The Financial
ALLEN
J. Nagy
PARK,
Chronicle)
Mich.—Eugene
is with Waddell & Reec
Inc.
Joins Marache Sims
(Special to The Financial Chronicle)
ac¬
tidy. The story
and
the
liberty."
con¬
too many un-
it, lacking the
gods and shrining in his
but
up,
loose ends. In
no
life, there
to
his allegiance whererests, but building his
the midst of his house¬
in
altar
is only in fiction
comes
in
it
heart
some
predictables and imponderables to
goes
ing to the front in the followir
18 months and to offer suggestion
At any rate, it will give us
answer
to the government's
seen.
the
the
dowering his family in
his brow, loving to
State, loyal to his republic,
goods would be his
What consumer earnest
plentiful.
more
strength,
the sweat of
LOS
L.
ANGELES, Calif.--Loren
Noble
joined
Sims
Marache
Spring
has
Street,
-
the
staff of
was
previously with Samuel
B. Franklin & Co.
(Special to The Financial
NEW
Chronicle)
ORLEANS, La.—William
Co., 634 South H. Brown is now associated with
of the
Landry, Alexander & Co., Ma¬
Mr.
rine
Building, members of the
members
Los Angeles Stock Exchange.
Noble
Landry, Alexander Adds
1
24
The Commercial and Financial Chronicle
(708)
The following
Indications of Current
week
Business Activity
STEEL INSTITUTE:
/AMERICAN IRON AND
Equivalent
(percent of capacity).
operations
steel
/indicated
latest week
or
statistical tabulations
month ended
Latest
Previous
Month
Week
Week
Ago
on
or,
CONSUMER
PRICE
(net tons)-!—
-Aug. 26
100.4
101.5
101.4
90.G
-Aug. 26
2,007,000
2,029.000
2,027,000
1,747,400
INCOME
gallons each) —
—
runs to stills—dally average
Gasoline output
Kerosene
average
(bbls.).
(bbls,
(bbls.)—....—...
,
oil output (bbls.)
Distillate fuel
oil output
fuel
(bbls.)
Aug.
Stocks at refineries, at bulk terminals, in transit and in pipe lines—
Finished and unfinished gasoline (bbls.) at_——
Aug.
Kerosene (bbls.) at
—
—Aug.
Distillate fuel oil (bbls.) at
—
—
Aug.
Residual fuel oil (bbls.) at_
Aug.
Residual
6,200,750
6,171.200
5.674,750
Eggs
6,488,000
6,561,000
6,044,000
Fruits
22,135,000
21,446,000
21,935,000
20,305,000
2,425.000
2,362,000
2,121,000
Fats
8,762,000
8,695.000
7,687,000
Sugar
11
8,598,000
9,020,000
9,033,000
7,787,000
Clothing
11
118.186,000
119,616,000
124,157,000
108,518,000
11
28,611,000
27,677.000
25,863.000
23,628.000
*
72,306.000
63,053,000
43,239,000
41,810,000
freight loaded (number of cars)——
Aug. 11
Revenue freight received from connections (number of cars)——Aug. 11
809.354
813.3G6
779,454
847.703
666,540
672,010
552,529
704,392
construction
Public
-
CROP
.
-—
$216,941,000
$361,082,000
$250,145,000
169,697.000
97,638,000
138,642,000
232,702.000
80,448,000
Aug. 16
53,596,000
89,860.000
117.129.000
77,665.000
Aug. 16
39,042,000
43,732,000
115,573,000
2,783,000
.Aug. 11
10,175,000
10,005,000
8,440.000
10,960,000
.Aug. 11
703.000
737,000
693.000
955,000
Flaxseed
.Aug. 11
142,000
*144,700
119,300
152,700
Rice,
All
—
(tons)
Beehive coke
130.9
202.8
202.4
189.0
156.0
156.0
147.0
212.5
212.6
184.8
164.8
165.0
154.6
3,206,992
fuels
1
Oats
S.
of Aug.
251
*2-54
HE9I80N ELECTRIC
7,164,469
Aug. 18
INDUSTRIAL)—DUN &
AND
BRAD-
153
Au«- 16
—
3,295.143
3.131,009
1,070.132
1,026,755
650,738
706.749
750,666
(bushels)—
347,548
363,333
276,089
36,870
40.906
310,678
322.477
240,025
1,393,323
1,367,967
1,465,134
262,590
301,009
25,643
22,977
(bushels)
255,131
—
—;
—
(bushels)
(bushels)
233
27C
pound
(100
lb.)
Pig iron (per gross tont——
7,069,390
G,974,574
6,369,330
Aug. 14
—
._Aug. 14
(per gross ton)
—_
bags)
x
(bushels)
grain
all
143
133
183
4.131c
3.837c
.
$52.69
$52.69
$52.69
$46.61
$43.00
$43.00
$43.00
$40.25
PRICES (E. & M. J. QUOTATIONS):
Electrolytic copper—
-
Hay,
wild
Hay,
alfalfa
Straits tin
Bead
(New York)
York)
(New
Bead
(St. Louis
Zinc
23.200c
Aug. 15
27.425c
27.425c
27.425c
103.000c
103.000c
106.000c
106.000c
.Aug. 15
17.000c
17.000c
17.000c
12.000c
:
;
at™.
24.200c
Aug. 15
_
) at-
24.200c
22.425c
at
at
(East St. Louis)
24.200c
Aug. 15
.
beets
Aug. 15
16.800c
16.300c
16.800c
11.800c
Aug. 15
17.500c
17.500c
17.500c
15.000c
(tons)
Grapes
Cherries
(12
Apricots
Pecans
97.75
102.15
Death
110.15
116.02
Matured
States)
115.63
114,46
120.84
Disability
114.35
114.66
113.50
119.61
Annuity
109.97
109,0 i
115.63
Surrender
Policy dividends
104.14
104.14
103.30
108.88
107.62
107.62
106.56
111.62
Aug. 21
110.70
110.70
109.97
117.00
Aug. 21
114.85
114.63
113.39
119.82
Industrials
.
Group
U.
YIELD
DAILY
2.53
.Aug. 21
2.53
2.65
2.34
Inventories:
3.11
3.12
3.16
2.85
Durable
2.87
2.93
2.61
Aa
Nondurable
2.91
2.92
2.93
3.17
3.17
3.22
2.87
3.50
3.50
3.52
3.23
-Aug. 21
3.30
3.30
3.38
3.03
-Aug. 21
3.13
3.13
3.17
2.30
2.91
2.92
2.96
2.G6
457.7
464.5
._Aug. 21
__
A
Baa
.
Orders received
Production
NEW
INVENTORIES
459.7
(tons/
firms
of
Credit
166,537
354,939
189,525
237,99-5
223,293
223,232
200.938
224,414
Aug. 11
Aug!
11
&
67,772
*67,123
53,485
31.697
31,997
31,140
3,245
3,271
2,707
232
231
176
170
242
215
125,622
TO
$137,941,000
$149,159,000
$146,005,000
43,178,000
43,726,000
8,846,000
8 831,000
8,440.000
23,5-73,000
21,715.000
21,466,000
60.249.000
58.309,00',)
59,356,000
41,298,000
53.330.000
57,811.000
45.139,000
$333,335,000
$336,397,000
$313,640,030
$18,422
*$17,664
20,353
*20,123
$38,780
*$37,737
$29,507
23,733
*22,335
19,303
$1,265,897
$1,276,527
$1,203,326
SALES
SERIES—
NEW
dollars):
of
94
94
83
99
607,643
664,707
638.352
646.656
EXCHANGE—As
hand
on
of
Market
of
v
$13,883
15,624
July
and
Member
banks
in
free
listed
credit
U.
43,054
37,926
103,143
378,300
364,806
348,050
825,187
833.029
712,050
104,609,862
97,920.279
32,000,115
98,457,150
97,817,684
87,693
56,187
125,209,390
'
222,840
705,114
691,223
713,650
S
balances—
bonds
U. S. Govt,
on
borrowings
in
shares
listed
of
borrowings
accounts—
balances
debt
net
customers.
to
customers'
value
Member
margin
carrying
customers'
extended
Market value of
Aug. 11
Aug. 11
Unfilled orders (tons) at end of period
58,336
123,126
(000's omitted i:
Total
(tons)
STOCK
YORK
31
ASSOCIATION:
Percentage of activity
59,925
121,916
OF LIFE
Total
Cash
PAPERBOARD
26
60,323
Sales
Total
/NATIONAL
13,497
2.67
Member
468.9
6,932
9,370
May:
ox
(millions
May
2.86
-Aug. 21
-
FAYMENTS
INSTITUTE
—
COMMERCE)
OF
6,243
123,100
—
values
of
v
121,338
(tons)
payments
Month
Government Bonds
S.
Aaa
58,729
2,032,450
(bushels)
Total
AVERAGES:
39.854
2,302.963
.
payments
(DEPT.
BOND
439,500
356,043
38,458
2,249,280
(tons)
MANUFACTURERS'
MOODY'S
,
—,—
115.82
Aug. 21
2,979
287,010
2,019,295
6-.390
endowments
Aug. 21
Aug. 21
7,598
16,843
3,555
_x
Aug. 21
Aug. 21
7,293
16,194
3,729
270.064
—
benefits
93.59
7,283
16,234
10,160
INSURANCE—BENEFIT
110.33
12,509
1,826,580
—
—
98.73
106,819
39
(3 States)
(pounds)
111.07
Railroad Group
Group
29,636
(tons)
(bushels)
Aug. 21
Baa
Utilities
41,029
21,397
(bushels)
Pears
LIFE
109.97
Public
45,614
(tons)—
seed
10,012
31,336
351,186
____
(tons)...
Broomeorn
237,456
—■
45,365
(bushels 1
for sugar and
Sugarcane
Sugar
pound bags)
1 bushels)
(bushels)
(pounds)
37,971
13,356
(tons)
(100 pound bags).
dry field (100
Soybeans for beans
Peanuts
(pounds)
______——Aug. 21
—
39,263
13,441
(tons)
INSURANCE—Month
Average corporate
42,334
112.927
(tons)__
POLICYHOLDERS
MfiOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds
;_
43,109
113,249
(tons)—
lespedeza
Hay,
Peaches
*
,
r«j—
37,961
17.266
(pounds)
Apples, commercial crop
/METAL
refinery at
Export refinery at
4,749
35,525
157,848
(tons)
Hops
Domestic
36,064
4,053
Beans, dry edible
4.131c
4.131c
Aug. 14
T
;
25.138
___
_
(bales)
Hay,
3weetpotatoes
Finished steel (per
—
—
)bushels)
Potatoes
Scrap steel
:_
(bushels)
(bushels)
Tobacco
COMPOSITE PRICES:
>HION AGE
AGRI-
998,286
Peas,
8TREET, INC.
OF
1 (in thousands):
j
.
(bushels)
Buckwheat
96#
REPORTING
(bushels)
Hay, clover and timothy
INSTITUTE:
Electric output (in 000 kwh.)
CROP
—
DEPARTMENT
As
—
spring
Sorghum
(COMMERCIAL
,
(bushels)
Other
Cotton
FAILURES
1
'
SYS¬
—Aug. 11
STORE SALES INDEX—FEDERAL RESERVE
TEM—1935-39 AVERAGE = 100
—
——
DEPARTMENT
184.6
139.1
Durum
Rye
Pennsylvania anthracite (tons)—.—_—.——
204.0
97.3
spring
Barley
-
140.1
174.3
204.0
135.4
U.
all
—-Aug. 16
tiTOAL OUTPUT
Bituminous
176.7
135.4
143.6
(bushels*—
Winter
78,299,000
(U. S. BUREAU OF MINES):
coal and lignite (tens)
—_____—
236.5
345.3
175.2
186.1
electricity
furnishings
all
117,291,000
__
209.3
97.1
PRODUCTION
Aug. is
_:
A
135.7
1
128,380.000
municipal
and
State
$214,929,000
Aug. 16
_____
143.4
-
221.6
143.6
Other
Wheat,
construction
177.8
198,4
:
:
Ice
Corn,
RECORD:
Private
—'
—
and
BOARD
NEWS-
.
246.7
203.5
345.2
_
Miscellaneous
—
272.4
203.9
219.9
—
.CULTURE
construction
169.8
273.1
201.2
______..r_
L.
170.2
203.1
133.2
-
electricity and refrigerators
Gas
House
Total U. S.
_
>
185.4
227.4
188.4
sweets
_.
Fuel,
RAILROADS:
Revenue
ENGINEERING
185.2
oils—
and
'
Ago
15:
—
vegetables-..
and
I
YeaT'
'
79,080.000
■
Month
products
Beverages
Rent
*45,305,000
-
June
•
and
2,353,000
46,792,000
CONSTRUCTION
of
as
..
6,231,250
81,692,000
mVIL ENGINEERING
Previous
LARGE CITIES—
products
{6,592,000
11
11
ASSOCIATION OF AMERICAN
Latest
226.9
bakery
date:*
of that
Month
——
and
'I
either for the
are
are as
:__
foods
8,906,000
Aug. 11
—Aug. 11
—
IN
Items
All
Dairy
Aug. 11
-Aug. 11
-Aug. 11
MODERATE
FOR
1935-1939=100—Adjusted
All
of 42
,—.—
i_,
(bbls.)
output
INDEX
Meats
hKMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output — daily
of quotations,
cases
FAMILIES
Cereals
Crude
in
Year
to—
and castings
Bteel ingots
production and other figures for the 1
cover
that date,
Ago
Thursday; August 23, 1951
..
Dates shown in first column
month available.
or
.
collateral
other
on
issues—
'
•
■/
0HL.
■
...
•
.
«-
%
.•••--•
ITEMS OF U. S. CLASS
SELECTED INCOME
PAINT
AND
AVERAGE
=
DRUG
REPORTER
100
PRICE
INDEX
—
1926-36
]
—
143.0
143.0
143.1'
—Month
129.3
Net
Commerce
(Interstate
RYS.
Au". 17
I
Commission)
{[■'.Yv.
v - H
*4"V
■
:
of May:
operating
railway
income
_—
$70,594,571
$67,072,540
15.420,737
16,911,739
90,357,313
87,506,310
16,736,997
83.809,54S
$74,936,576
'
fITOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODDBOT
DEALERS
AND
SPECIALISTS
ON
THE
N.
Y.
Other
EXCHANGE—SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—
of
Number
;
I_Aug!
;
short
sales___
sales
Customers'
short
sales
Customers'
other
sales
Dollar
value
1
sales
Other
sales
Round-lot
23.880
712.560
864.172
$30,983,450
$36,852,830
\u</
Aug!
~~~Aug
~Aug
"iu|"
HIIII__ Aug!
>,
;
.
Round-lot sales by dealers—
Number of shares—Total sales
Short
25,832
942,476
$43,139,534
\ug
~
;
of shares—Total sales
Number
31,387
980,026
$45,228,327
Other
23,232
19,021
25.366
502
664
426
191
27,568
18.595
25.175
794,676
507.078
28,748
common
preferred
727,097
On
20,521
14.001
7,395
Ratio
493.077
719,702
$35,722,885
$34,535,137
$20,388,426
$27,193,488
217,160
202,270
106.520
201,610
2T7I16O
2021270
106I520
Net
20L610
U.
Number of shares
^ug
U.
S.
DEPT
OF
381,510
384,530
334,450
341,650
LABOR
Farm
\ug
~
products
__
Grains
~~
.
Livestock
Foods
-i,
Meats
:
AH commodities other than farm and
Textile
foods
_
products
'
Fuel and
-
lighting materials—
Metals and metal products
Building materials
Dumber—.—
■
~
...
„
■.
>
-
•
■
..
..
^
Chemicals and allied products,
•Revised.
;
_,
*Not available.
■'K-s UKMymplfi (MUAiH
{Includes
^
■
14
177.4
177.8
178.7
165.8
14
190.9
192.0
191.5
175.3
14
181.1
178.8
180.0
167.4
tug. 14
263.8
266.6
261.6
239.1
ug*
Ug"
;ug. 14
187.4
188.7
186.4
173.9
Jig. 14
278.1
278.6
275.0
iue
14
166.4
255.1
*166.3
168.0
Aug
14
169.2
155.3
*169.6
176.5
149.0
137.8
137.7
137.7
ug'
ug'
ug*
-Ug!
ug!
fixed charges
134.2
14
188.1
188.1
188.2
j4
223.6
174.4
223.6
224.2
343.1
214.6
348.1
349.8
t
139.9
140.0-
139.1
122.3
14
583,000 barrels of foreign crude, runs.
47,770.633
—As
4,095,288
79,714,258
42.530,745
3,085,679
3,121,401
49,225,377
44.684.954
39.409.344,
36,492,608
36,963,597
35.552,043
1,369,037
4,315,389
3,661.613
43,373,380
39,824,763
31,473,587
23,161,650
6,021,951
25,795,150
8,442,500
573.927
7,372,741
2.53
2.35
2.14
S.
$236,300
$3,494,700
$3,170,800
A.—Month
$275,000,000
$275,000,000
$275,000,000
255,656,634
255,221,976
257,540,746
28,313
29,227
16,130
$255,684,947
$255,251,203
$257,556,877
678,301
684,574
721,275
SECURITIES
of July:
——
of
face
any
—
TRANSACTIONS IN DI¬
GUARANTEED
AND
U.
to
—
—
S. GOVT. STATUTORY
at
,1926=100:
All commodities
stock—-
MARKET
purchases
Total
—
stock—;
income
TREASURY
OF
equip.)—
taxes
Net sales
IIAug!
_j
PRICES, NEW SERIES
of
RECT
—,
83,093,159
52,391,675
appropriations:
On
774,155
i®'
3,684,107
86,673,206
3.166.298
—
—
&
(way
income
Dividend
14,911
w
_
charges
__
income
Federal
800.307
purchases by dealers—
WHOLESALE
deductions
Net
structures &
Amortization of defense projects
29,250
815.218
income
from
fixed charges
•4,413,151
"
Depreciation
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
other
33,813
-Aug
Dollar value
Customers'
deductions
fixed
after
Income
—
available for
Income
Au<*
Customers'
income
Miscellaneous
orders
Number of shares
income
Total
STOCK
DEBT LIMITATION
July 31 (000s omitted):
amount that may be outstanding
time—
OutstandingGuaranteed
obligations
Treasury
Total
gross
not
owned
the
by
—
public
debt and guaranteed
obligations
outstanding public
—
Deduct—Other
gations not subject
debt obli¬
to debt limitation
total
-•Revised figure-
$254,566,629 $256,835,601
$255,006,646
outstanding
Balance face amount of obligations,
able under above authority
Grand
issu-
'
.
-.:
•- -
•
„
19,933,3o3
•
*
-
<
.0,433,3 <0
_
1fi.
18,164,398
Volume 174
Number 5040
The Commercial and Financial Chronicle
...
25
(709)
is
year
producing
8,000,000
oil at the annual rate of
barrels
compared
as
with
Continued from page 8
Security I Like Best
A
substantial
reserves;
(c) deferred income
re-
a
ceivable
(profits)
the
government-owned plant at Ren-
shown
in
statement
straight
increase
earnings before taxes
to
management
basis
a
be
in
Dealer-Broker Investment
1951
expectation,
although heavier taxes may re¬
strict the gain in net income avail¬
able for the common stock. Never¬
Recommendations and Literature
Ontario, to make the fuel
Cockshutt ceased
combustion unit j for the British
theless a good probability, exists
on sales to dealers until
payment "Orenda" jet engine. Neither of
that earnings per new common
was
actually received, handing these projects should
interfere
share, after all charges, may equal
themselves a severe but non-re- with normal production of farm
in the neighborhood of $4.50 to
curring financial jolt), tax-paid equipment.
$4.75 for 1951 as compared with
earnings for the last three years
Apart from market considera- the (adjusted) $3.51 per share re¬
were as follows:
;'tions forces generated within the ported last year. Dividends on the
(during 1950
to record profits
:
1950
v
'v
r
$9 26
■
' ■ ■ ';.v
1951
good
(n1
1949
$9 54
\
proving
is
year
mos
>
JK6 9V
*
another
'
to
be
for the Cockshutt
com-
lrew,
the
For
first
months
six
field.
The
$10-$12
the
outlook
crop
per
Backing up these earnings is
following working capital per
(ex-debt
and
reserves)- at
4
year-end 1950:
Cash
so apace, good management
tawitoriw:::::::::: lu®
)"
'
Plymouth Oil Company
11.43
*
$46.91
.rnm
■
$1.50
...
.
j
improved another
share by April 30, 1951.
per
oil industry, and the prospects for
the companies engaged in this industryj j have selected Plymouth
oil Company
'
Cockshutt's
manufacturing fa- common
completely up-to-date
(new) stock as
and plant, carried at
net, $6.1 mil-. "The Security
lion, after a depreciation reserve I Like Best."
cilities
be
million, is understood to
worth
about
directly
and
through
sub-
gage. The main
sidiaries,
45
covers
Canada
serves
Pacific
18
the
and
acres
from
through
1,200
branches
company
Atlantic
agents
and
to
and
warehouses,
Cockshutt farm equipment is distributed in most civilized countries
of
haps,
some
The
the
world
and
also,
per-
uncivilized.
Canadian
is
Government
has
farmer and, in the process, for the
painless through the
Improvement
Loan
Act.
Farm
Farmers
borrow
may
of the cost of
an
bank
easy
any
of
on
over-all
two-thirds
implement from
loans
terms and 10%
are
guaranteed
by the Federal Government. Volof
ume
implements
financed
in
} 150J Urtn^er ft?s arra^Sement to-
taled $58 million.
Since
ception of the Act
(8 years ago)
losses have been held to
a
the
in-
remark-
am£^imTUK' rePffentlng onl7
i0!
total advanced.
Act has
mu^
This
of
a
put
of
era
slow
farmers
holds
kiS
ables
but
notes
a
it
also
gas
gas
ties
John P Satterf,eId
chiefly in the Big Lake field,
ed
company
was
production ;of
said
the
munitions,
parts,
bodies, hydraulic
is
possibiliIn
re-
Cockshutt manufactured
war
aircraft
to
rank
government
pumps,
successful
truck
etc. The
in
the
war material and
well up with the
as a
supplier.
No tre-
mendous volume of defense work
has
yet
but
Cockshutt
ceived
a
been
placed
has
ties (Texas Gulf Coast). San
tricio
jn
Plymouth's production.
of
its first well in the
field/ Upton County,
in
Pembrook
This wen flowed 162 bar-
Texas
rels
the company
this year,
jUne,
brought
Pa-
is the most important
now
source
oil
of
first
the
in
24
weR
July 5, a second
brought in which flowed
was
paign
so
an
active drilling cam-
that reserves and produc-
in Canada
already re-
contract to make jet en-
The
importantly.
pects for continued
for
pros-
high demand
petroleum products seem well
assured, which
implies that Ply-
mouth's sales should improve sub-
stantially.
serves
are
The company's oil re175
estimated to equal
barrels per common
share,
Plymouth relatively is a
small unit in the oil industry, its
growth importance
may
the
last
$72,948,162
ten
at
is
years,
the
of 1950.
being made
end
to
These estimates
the
City
Fire
are
statement by Ply-
effect
that
the
Marine
&
Co.—Memorandum—
Insurance
Barret, Fitch & Co., 1004 Baltimore Ave., Kansas City 6, Mo_
1 Minnesota
and Ontario Paper Company—Analysis—Dayton &
Gernon, 105 South La Salle Street, Chicago 3, 111.
Moore-McCormack
Co., 14 Wall
Lines
—
Memorandum
—
Smith, Barney &
Street, New Yosjt 5, N. Y. Also available are
on
Smith, Kline & French Laboratories and
memoranda
Southern Indiana Gas & Electric Co.
National
pany,
able
Distillers
y
Products—Brief
analysis—Faroll & Com¬
209 South La Salle Street, Chicago 4, 111. Also avail¬
data
are
the Sunray Oil Co.
on
Jersey Zinc—Brief analysis in current issue of "Glean¬
ings"—Francis I. du Pont & Co., 1 Wall Street, New York 5,
same issue is a suggested portfolio for a $25,000
111
immediate
to
provide both safety and income.
Company—Analysis—Ira Haupt & Co.f
Broadway, New York 6, N. Y.
Petroleum
all-per¬
Richter
Heat
Power
&
Company
—
Analysis—Scherck,
Company, 320 North Fourth Street, St. Louis 2, Mo.
Cement Company
Riverside
—
Card memorandum
Co., 10 Post Office Square, Boston 9, Mass.
a
memorandum
Gear
on
Lerner dfc
—
Also available Il(
Grinding Machine Co. and
on
Senee*
Falls Machine Co.
Seneca
Oil
Company—Analysis—Genesee
Securities
Valley
Co., Powers Building, Rochester 14, N. Y.
Pine
32
Commodity Ex¬
kind
of
govern¬
a
continuation
of controls will be necessary."
rules
ment
Israel,
is
socialism—realizes
wooing
private
sions
to
as
the
the
to
Conclu¬
ideological direc¬
tion which the ruling
officials, as
doctri¬
self-described
former
naire
Socialist,
their
hands
might
were
not
follow
tied
whether their obeisance to
In
engage
the
Thew
68
in
current
issue
same
data
are
"Highlights"—Troster.,
issue of
on
Ruppert and
Jacob
Crowell-
the country is too
as too busy, to
in the luxury of socializing
well
Street, New York 5, N. Y.
Also available is a bulletin on Pfeiffcr
Brewing Co.
Company—Analysis—Hill Richards &
Co., 621 South Spring Street, Los Angeles 14, Calif.
Company—Analysis—Loewi
Trane
if
private
Company—Bulletin—Gartley & Associates, Inc.,.
Shovel
William
Title Insurance and Trust
&
Co.,
225
East
Mason.
Street, Milwaukee 2, Wis.
Also
available
is
analysis of National City Bank of New
an
York.
-•
y
Cy-- : ;:y:
United States Steel—Circular—Wm. M. Rosenbaum & Co., 285
Madison Avenue, New York 17, N. Y.
emergency
as
&;
Coilier.
and
capitalism-merely constitutes lip
service during an emergency, are
academic. For during this period
of
Corp.—Analysis—Eastman, Dillon
Gas
Propane
Inc.—Data
Talon,
Minister of Labor Golda Myerson,
a
25>
Co., 15 Broad Street, New York 5, N. Y.
for
need
capital.
Co.,
&
Stone
that
prerequisite
a
Corp.—Analysis—Hayden,
Singer & Co., 74 Trinity Place, New York 6, N. Y.
principle
Marxist
the
Wells
Street, New York 4, N. Y.
Suburban
Socialize
Conversely, even the most rabid
— conforming
capitalism
Broadway, New York 4, N. Y.
Broad
doctrinaire socialist
to
Street, New York 5, N. Y.
Strutliers
a
Too Hungry to
U.
S.
Thermo
Boston
9,
Control—Data—Raymond
Mass.
& Co., 148 State St.v
Also available is information
on
Thermo-
activities.
King Ry.
Revelation of the country's per¬
manent
await
can
ideological direction must
of choice which
afforded
of
Meanwhile
of
a
Walt
the
only
with
emergency
will
there
partly
the
be
economy
capitalist,
Street, New York 5, N. Y.
the
status.
years
"shot-gun honeymoon" period
which
Productions—Analysis—Butler, Moser & Co., 44
Disney
Wall
freedom
be
ending
mouth's President, Walter S. Hal-
lanan,
Street, New York 4, N. Y.
Kansas
week
vigorously
thought that "No
the
what
matter
ployed in this phase of operations,
are
South La Salle Street, Chicago 4, 111.
Paige—Circular—James J. Leff & Co., Inc., 50 Broad
N. Y. In the
the most ardent
even
last
reiterated
$100,000,000.
operate on
pany, Inc., 231
Northern New England
of
'
Products, Inc.—Analysis—Republic Investment Com¬
Graham
a
change,
completed
and
an
additional
working force of 300 will be emalso
situation
of the New York
remain
Cockshutt will
nation's
the
County—
Cook
Sterling Oil of Oklahoma, Inc.—Progress report—J. May & Co.r
during
a
Doeskin
5
page
of
Governments
Sperry Corporation—Brief analysis—Stanley, Heller & Co., 3C?
ating income for 1951 will exceed
upon
from
Major
Mizrachi leader who is
director-general of the Ministry of
Trade and Industry, a business¬
man who was formerly a member
lander,
which indicate that the gross oper-
Current estimates
and
Street, Chicago 90, 111.
r
enterprisers can seriously and
gine components at its Brantford
plant. Tooling up and a plant extension have already been riearly
based
Chicago
sincerely advocate complete abol¬
ition
of
controls.
Herman Hol¬
be meas-
by the steady increase, dur-
in gross
operating income (sales) which
r0Se
from $5,401,642 in
1941 to
ing
of
Brochure—The Northern Trust Company, 50 South La Salle
New
hungry,
while
ured
.
well marketwise.
on
300 barrels of oil per day. A third
wed producing at the rate of 175
barrels of oil per day was brought
- around
July 16. The company
continues
City
riod of time, should perform very
hours
from a depth of 6>952 feet. Plyowns 640 acrqs at this well
Then,
Chicago Daily News—Memorandum—Swift, Henke & Co., 135
South La Salle Street, Chicago 3, 111.
pe¬
a
West Corp.—Analysis—Sincere and Co., 231
Street, Chicago 4, 111.
Soya Co.—Memorandum—Goldman, Sachs & Co., 30
Street, New York 5, N. Y.
Pine
not
excellently
managed oil company, over
m0uth
location.
of this
5*4s of 1952—Progress report—New
Corp., 120 Broadway, New York 5, N. Y.
South
&
Central
to me that the
seems
imports, not
locat-
are
does
Utility
South La Salle
to discount Plymouth's
It
stock
common
shares
these
for
appear fully
free
Activi-
plants
increased
dizzy world, conheavy industry
work.
Central
austerity, reflected in the curtail¬
ment of incoming goods going to
consumers
to one-third of total
gas
and natural
receiv- ^on potentials probably have been
include
must
defense
of
the
Cockshutt
and
° Pa^er m
tQday.
company
cent
to
negligible amount of
In this present
sideration
of
a
ties
end
an
costly collection
and
Public
Public Utility—Analysis—C. E. Unterberg &
Co., 61
Broadway, New York 6, N. Y.
$1.60
vading shortages. In today's set¬
ting of desperate lack of things of
all
kinds
and
consequent rigid
of
implement companies, by making
Reagan County, West Texas, and
the purchase of farm equipment
in San Patricio and Calhoun Coun-
relatively
32
rents
processing-
considerably simplified life for the
of
emergency
a
onerates
of
Electric—Memorandum—Josephthal &
Central'
ISRAEL
crude oil, cas-
inghead
payments
Gas &
York Hanseatic
investment
producer and
marketer
of
plus 2% in stock, the current price
Plymouth,
$20 million, subject only to the $4.6 million mort-
plant at Brantford
dividend
and
Continued
are
of $15.2
possibility
the
for
prospects.
Considering the outlook for the
11
Central
$4.50 per share earnings this year,
Members, N. Y. Stock Exchange
Less;
liabilities.
Allowing
,o,,N P. satterfield
Partner, Hoppin Bros. & Co., N. Y.
$58.34
current
has
a profitable future!"
—$11 49
|
All
earnings ratio, and the annual
developed new markets. From the range rarely ever exceeded 15
shareholder's viewpoint all this points except for the year 1948
can add up to only one thing— when the range between the high
"For them (as "Time" would put and low amounted to 37% points.
do
share.
Broadway,
Ill
Co., 120 Broadway, New York 5, N. Y.
the
the
share
Central Hudson
export
on
Pacific—Review—Ira Haupt & Co.,
New York 6, N. Y.
this
of
year earnings were equal to $2.03
ings forecast but not yet realized,
per share as compared with $1.51
expansion projected but not yet for the like
period of 1950.
Canadian Prairies is excellent and accomplished. This is not so with
Capitalization of Plymouth con¬
already a shortage of implements Cockshutt — earnings have been
sists of some $14,500,000 funded
in the West is forecast. It is al- realized and expansion has been
debt and 2,418,966 shares of $5
ways difficult to predict earnings accomplished. An ultra-conservapar capital stock.
The company's
but a
projection of Cockshutt's tive financial program has kept
net worth is around $33.1 million.
published half-yearly earnings by step with the expansion, good enPlymouth's common stock has
comparison
with
1950
suggests gineering
has
developed
new
profits after taxes this year of products and, while continuing to always sold on a moderate price-
pany—particularly in
Canadian
company itself should ultimately new common are expected to total
ma^e Cockshutt Plow common $1.60 to $1.75 plus 2% in stock
stock considerably more valuable. per share for the current year.
Special situations usually require
excessive imagination, e.g., earn-
,
now appears
reasonable
a
\
some
6,000,000 barrels produced in 1950.
The
1950
this
company
Continued from page 2
will
syn¬
With First Sees. Corp.
With Dean Witter & Co.
(Special to The Financial
Nev.—Stanley
RENO,
miniani
is
now
R.
associated
dicalist, socialist, cooperative and
Dean Witter
collectivist; and the government's
Mr.
policies Will be "played by ear."
proprietor of Umber & Co.
&
(Special to The Financial Chronicle)
Chronicle)
N.
C. — Melvin P.
with Hawkins is representing First Se¬
WILSON,
Ge-
Hotel.
curities Corporation from office#
previously
Co., Mapes
_
Geminiani
was
at
1301
West Gold Street.
Financial Chronicle
The Commercial and
26
•
Thursday, August 23, 1951
(710)
* REVISIONS THIS WEEK
Securities Now in
Aero Manufacturing
Co., Columbus, Ohio
East
Underwriter
N. W.,
and
related
Manistee,
the
at
Mich.,
—To be
share).
ing capital.
(9/7)
cumulative convert¬
ible preference stock, series A (par $25), to be offered
in exchange for common
stock of Domestic Finance
Corp., Chicago,' III., the offer to expire on Sept. 25,
Exchange Rate—To be supplied by amendment. DealerManagers—Kidder, Peabody & Co., New York, and Alex.
Aug. 16 tiled 167,105 shares of $1.25
Brown &
Sons., Baltimore, Md.
Arizona Cheese & Cattle Co.,
5% convertible
20-year debentures (in denominations of $500 each); 10,000
shares of 6% cumulative convertible preference
and 14,900 shares of common stock (par
$10).
Price—For all three securities, at par.
Under¬
writer—None, but sales will be handled by John P.
stock (par $10);
of
working
Phoenix, Ariz.
Austin Finance Co.,
Aug.
13
60 judgment notes of
Underwriter—None.
Proceeds—To finance
each.
Proceeds—For
Pa.
working capital.
Office
Aug. 16 (letter of notification) 60,000 shares of common
stock and 240,000 shares of 6% preferred stock. Price—
in¬
ston,
—To
purposes.
Investment
mond
Co.,
Francisco, Calif.
Aug. 20 filed 2,500,000 shares of capital stock
Price—At
curities
market.
Co.,
San
Francisco,
Calif.
Proceeds—For
ferred stock
Se¬
in¬
Dutch Flat Mines, Inc., Winnemucca, NeV.'*
Aug. 16 (letter of notification)
stock.
1,000 shares of 7%
—1027 du Pont
shares, 15 cents per share; of
250,000 shares at 25 cents per share; and of 250,000
shares, 40 cents per share. Underwriter — None, but
Robert N. Coope, Salt Lake City, Utah, will act as agent.
pre¬
Underwriter—
Office
•
Rohr Aircraft
.
,
'
.
Corp., Chula Vista, Calif.
„
Aug. 10 (letter of notification) 8,000 shares of capital
stock (par $1).
Price—At market (estimated at $12.50
per share).
Underwriter—Lester & Co., Los Angeles,
Calif. Proceeds—To Fred H. and Shirley B. Rohr and J.
Proceeds—For
prospecting and development, buildings
equipment, and for working capital. Office—1127
Bridge St., Winnemucca, Nev.
and
E.
and
Esther
D.
Rheim, who are the selling
stock-
'
holders.
/
Schenley
>
stockholder.
Office—350 Fifth Ave.,
York 1, N.. Y.
"■■■;>
••"V - /'■
New York
Boston
Philadelphia
Pittsburgh
San Francisco
Private fVires
to
all
offices
Chicago
Cleveland
American
of debentures
on
basis
of
two
shares for
each
Casualty Co., Chicago, III.
Bosch
Price—At
the
Corp., Springfield, Mass.
market
Underwriter—None.
ment
version
20-year
common
;
(par $2).
$15 per share).
May 17 filed 98,000 shares of common stock
convertible
(no par) to be reserved for con¬
of
July 26 filed. 1,000,000 shares of common stock (par $1),
Price—$3 per share. Underwriter—May be M. A. Kern4
President.
Proceeds—To increase capital and surplus.
be issued in denominations of $50
stock
shares
Labor Day.
of 198,000
common
75,000
Co., New York. Proceeds—For expansion and modern-:
ization needs and workingcapital! Offering—Expected
Sevigny's Candy, Inc., Hanover, Mass.
Aug. 17 (letter of notification) $50,000 of 10-year 8%
debentures, series A, due Aug. 15, 1961 (to
each) at par; and 2,000
and
$1 per share) to be reserved for conversion of
debentures./ Price—At
100%.
Underwriter—Tellier &
stock (par
All American
is the selling
shares of
debentures
convertible
after
;
(letter of notification) 2,935 shares of common
stock (par $1.40).
Price—$33.75 per share. Underwriter
—None, but Wagner, Stott & Co., New York, will act
as broker.
Proceeds—To Lewis S. Rosenstiel, Chairman,
New
AlaskfJ"etephone Corp., Juneau, Alaska
18 better of notification) $300,000 of 6%
July
Industries, Inc., N. Y.
Aug. -17
who
Probable bidders:
Street, New York, N*. Y.
Building, Miami, Fla. Business—Hydro¬
ponic farming.
-
of first mortgage bonds due
Underwriters—To be determined by competitive
Halsey, Stuart & Co. Inc.;
Harriman Rip¬
ley & Co., Inc.; Shields & Co. and Salomon Bros. &
Hutler (jointly); Drexel & Co.; Union Securities Corpv
and Equitable Securities Corp. (jointly); Kidder, Peabody & Co.; The First Boston Corp.; Lehman Brothers.
Proceeds—For expansion program.
Bids—Expected to
be opened at 11 ajn. (EDT) on Sept. 11 at 20 Pine
land, construction of hydroponic
troughs and equipment, and for working capital.
625,000 shares of capital
Price—Of 125,000
1981.
(9/11)
$15,000,000
10 filed
bidding.
issue) of a Puerto Rican corporation to be
Proceeds—For
None.
-
Morgan Stanley & Co.; Blyth & Co., Inc.;
Price—At par ($100 per share).
formed.
/'
vestment.
Alabama Power Co.
Aug.
(to be cumulative from and after two years
from dqte of
Birmingham, Ala.
Graphite Co.,
1969 (in denominations of $1,000 each). Price—At par.
Underwriter—Odess, Martin & Herzberg, Inc., Birming¬
ham, Ala. Proceeds—For plant expansion. Office—420
Comer Bldg., Birmingham. Ala.
:
■
(S. R.), Miami, Fla.
Aug. 10 (letter of notification)
(par $1).
American
Distributor—North
Registrations and Filings
Flake
Alabama
Washington.
Robins
New York
July 12 (letter of hotification) $100,000 of 7% 20-yearsinking fund bonds dated Jan. 15, 1949 and due Jan. 15/
Joseph Walker (Vice-President), 3303 W. Rosa¬
Street, Spokane, Wash.; and probable brokers in
or
Ranch Corp.,
(letter of notification) 1,500 shares of capital
par ($100 per share).
Underwriter-^-"
Price—At
Previous
Proceeds—For equipment and
machinery and exploratory surface prospecting. Office
—647 Peyton Building, Spokane, Wash.
Idaho
San
.
and buildings to house employees.
Co., Bakersfield, Calif.
~
10 (letter of notification) 500 shares of capital stock
$1). Price—$4.75 per share.
Underwriter—WalHoffman & Goodwin, Bakersfield, Calif. Proceeds
Arthur W. Scott, Secretary, who is the selling
Ward
13
& Co., New York.
Proceeds — For purchase of
equipment, supplies and land and for working capital.
Address—c/o C. J. Sutherland, 52 Wall Street, New
York. .Offering—Made on Aug. 20.
(Secretary and Treasurer), Route No. 1, Spokane, Wash.;
common
equipment. Office—1711 Eye St.,.'
new
Cohu
Roy Mining Co., Wallace, Ida.
Aug. 13 (letter of notification) 250,000 shares of capital
stock. Price—12 V2 cents per share. Underwriter—None,
but sales will be handled by Lawrence Richard Shaver
working capital, including pay¬
payable and purchase of inventory.
Commonwealth
stock.
Underwriter—None,
Pro¬
share.
Ewing,
W., Washington, D. C.
Aug.
Rob
Proceeds—For
ment of accounts
per
Boulder, Mont.
stockholder.
(par $1). Price—At the market (estimated at $2.75
share, but not more than $3 per share). Underwriter
—None.
Inc.,
Norris Oil
(par
sjiares of
cents
ceeds—For equipment
stock
per
N.
Wickham, President, will handle sales.
but Francis
Machine Co.
Aug. 16 (letter of notification) 100,000
Queen,
Price—15
stock.
Aug. 16 (letter of notification) 16,000 shares of common
stock (par $2.50) to be offered to stockholders of record
Aug. 20 on basis of one share for each 5V4 shares held;
rights expire on Sept. 14.
Price—$5 per share. Under¬
writer—Chilson, Newberry & Co., Inc., Kingston, N. Y.
(Mich.)
Elkhorn
New
City Title Insurance Co. (8/24)
Clinton
novations and for
Whiteface
Chicago, 111.
Proceeds—For general corporate
(no
Secretary of company, 1701 16th St., N. W„ Washington,
D/ C. Proceeds—To pay outstanding accounts, for re¬
development and opera¬
Aug.
14
None, but sales will be made through Harry E.
will
stockholder.
Street,
Washington
School of Cooking, Inc.
(letter of notification) 328 shares of common
par). Price—$15 per share. Underwriter-^—
Washington
Aug. 9 (letter of notification) 200,000 shares of common
W.
share. Underwriter—None.
capital.
Office—Latrobe, Pa.
per
stock
At par ($1 per share). Underwriter—None. Offering
be made through officers. Proceeds—For expenses
Brilhart Plastics Corp.,
of capital
Price—$26
Proceeds—For working;
15 (letter of notification) 3,774 shares
(no par) to be offered to employees.
Aug.
Mineola, N. Y.
Aug. 15 (letter of notification) 80,000 shares of common
stock (par 5 cents).
Price—75 cents per share. Under¬
writer—Warren W. York & Co., Inc., Allentown, Pa.
Proceeds—To National Mutual Assurance Co., the selling
77
stock
Mortgage & Investment Co.,
tion of business. Office—114 No. 3rd St., Las Vegas, Nev.
credit businesses.
(9/15)
Vanadium-Alloys Steel Co.
Aug.
Vegas, Nev.
cident to organization, and for
Melt, Inc., Greenville, Pa.
Reynolds, P. O. Box 71, Greenville, Pa.
Jeannette, Pa.
Office—
accounts receivable of retail
per share. Underwriter.
Proceeds—To Dudley P„
the selling stockholder.
Vacuum
working capital.
Las
Tex.
66,000 shares of capital
Aug. 20 (letter of notification) 25,181 shares of common
stock.
Price—At par ($5 per share).
Underwriter—
None.
Proceeds—For working capital.
Office—Camp
St. Paul, Minn.
Aug. 13 (letter of notification) $30,000 of 4% series A
membership debentures due Oct. 1, 1970. Underwriter—
None.
Proceeds—To retire preferred stock
and for
Nevada
plant additions and improvements.
Transgulf Corp., Houston,
Aug. 13 (letter of notification)
stock (par 10 cents). Price—$1
—S. B. Cantor Co., New York.
Mutual Dealers Wholesale, Inc.,
Chicago, III.
(letter of notification)
(letter of notification)
South, Sr.,
—Chambers Avenue,
York 18, N. Y.
Power Co.
(no par),
expenditures for
(8/27)
Aug. 17 (letter of notification) 30,000 shares of common
stock (par $1) to be offered to employees who'are not
officers and directors.
Price—$3 per share.
Under¬
buildings, equipment and livestock
capital.
Office — 312 W. Lynwood
land,
$500
stock (no
Jeannette Glass Co., Jeannette,
Proceeds—For purchase
and for
Street,
(Secretary-Treasurer).
Zuest
stock
.
,
v
30,970 shares of common
being offered to common stockholders
of record Aug. 16 at rate of one share for each 22 shares
held, with an oversubscription privilege; rights expire
on
Aug. 30. Price—$9 per share. Underwriter—None,
but company will compensate NASD members who assist
stockholders in exercise of warrants.
Proceeds—To re¬
tire bank loans or reimburse the company's treasury for
Aug. 9
14
writer—None.
Phoenix, Ariz.
Aug. 14 (letter of notification) $50,000 of
Office—157 West 42nd Street, New
Southern Colorado
(letter of notification) 176 shares of class A
par). Price—At the market (estimated
at about $225 per share). Underwriter—None, but will be
sold through Akin-Lambert Co., Los Angeles, Calif.
Proceeds—To be paid to holders of fractional share cer¬
tificates issued in connection with stock dividend pay¬
ment.
Office—2828 Juniper Ave., Long Beach, Calif.
Aug.
15
estate.
Inc., St. Paul, Minn.
,
■
of "mutual" ownership.
Hancock Oil Co. of California
Investment Co. of Illinois,
Louis, Mo.
:
//yi;rv-j;
(letter of notification) 100 units of certificates
Price—$1,450 per unit.
Underwriter—None.
Proceeds—To acquire a parcel of real
Aug.
expansion program and for work¬
Proceeds—To finance
•
Small Investors Real Estate Plan, Inc.
stock
Price
supplied by amendment (expected at $52.50 per
Underwriter—Glore, Forgan & Co., New York.
common
St.
holder.
Aug. 17 filed 65,000 shares of cumulative preferred
(par $50-convertible on or before Dec. 31, 1966).
plant.
American
C;
St.,
Inc., Inglewood, Calif..
Gould-National Batteries,
\
(8/28)
Television Corp.
(letter of notification) 1,000 shares of common
stock
(par 10 cents).
Price—At market: (about $2.50
per share).
Underwriter—L. Johnson & Co., New York.
Proceeds—To Kurt Widder, Treasurer, the selling stock¬
'
•
Under¬
claims near Searchlight, Nev. Office—
(P. O. Box 1529), Las Vegas, Nev.
/
Skiatron Electronics &
Hindry Avenue, Inglewood, Calif.
(9/11-12)
equipment
Washington, D. C.
of com-'
Aug. 20
Aug. 14 (letter of notification) 100,000 shares of capital
stock.
Price—$1 per share. Underwriter—Not yet se¬
lected.
Proceeds—For working capital. Office—324 So.
Aug. 21 filed $5,000,000 first (closed) mortgage sinking
fund 43/4% bonds due 1961 ($300,000 of which will be
offered to directors, officers and salaried employees of
the company).
Price—To be supplied by amendment.
Underwriter—Paine, Webber, Jackson & Curtis, New
York. Proceeds—To finance a second paperboard ma¬
chine
Office—1108 16th
capital.
working
Globe Trading,
Aegis Casualty Insurance Co., Denver, Colo.
Aug. 17 (letter of notification) 50,000 shares of common
stock (par $1). Price—$2 per share. Underwriter—None.
Proceeds—To qualify company to do business as casualty
company in Colorado. Office—201 E & C Building, 17th
and Curtis Sts., Denver, Colo.
American Box Board Co.
130 S. 4th Street
Co., Washington, D.
C. Kahn
John
—
Proceeds—For
of mining
ment
-
Aug. 16 (letter of notification) 600,000/shares of 30-cent
dividend class A stock
(par $1). Price—$5 per share.
Office—2040
Vegas, Nev.
Proceeds—For exploration and develop¬
writer—None.
Inc., Washington, D. C.
Roger Credit,
Glen
(unsubscribed shares to be sold to public). Price—$7
per' share to stockholders and $8 per share to public.
Underwriter—None. Proceeds—For plant improvements
expansion and for working capital.
Main Street, Columbus, Ohio.
Block, Helena, Mont.
—5 Penwell
Mining & Milling Co., Las
ADDITIONS
Aug. 10 (letter of notification) 3,000,000 snares
mon stock.
Price—At par (10 cents per share).
Aug. 15 (letter of notification) 200,000 shares of capital
stock. Price—At par (25 cents per share). Underwriter—
None. Proceeds—For developing mining property. Office
Aug. 14 (letter of notification) 40,716 shares of common
stock (par 25 cents), to be offered to present stockhold¬
ers at rate of four-fifths of a share for each share held
and
Sioux
Helena, Mont.
Inc.,
Consolidated,
Elkhorn
New Registrations and Filings
i
INDICATES
•
(approximately
Proceeds—To Allen & Co.
(owner
shares, or 15.1% of outstanding shares). States
effective July 3.
:
American
Brake
Shoe
Co.
shares of common stock (no par) to
be offered to certain officers and key employees through
June 29 filed 50,000
Price—To be not greater than
the date of the offering, or no less
85% of such price. Underwriter—None. Proceeds
be added to general funds.
$50 of debentures. Price—Of debentures, at par. Under¬
a
writer—None. Proceeds—For
general corporate purposes,
including purchase of material and maintenance of in¬
the market
ventory.
—To
stock
than
purchase plan.
price
on
Volume 174
Number 5040
;■
.
American
(711)
The Commercial and Financial Chronicle
,
.
../
;
.
.
$500 and $1,000 each). Underwriter—None. Proceeds—
To pay obligations, for expansion and working capital.
Office—60 East 42nd Street, New York 17, N. Y.
Mucinum, Inc.,-,.. V-
July 17 (letter of notification)
1,000,000 shares of class
A stock.
Price—At par (15 cents per share).
Under¬
writer—To be supplied by amendment.
Proceeds—For
operating expenses. Office—27 West 72nd Street, New
York 23, N. Y.
V'"'':
NEW ISSUE CALENDAR
August 24, 1951
Co..
1
7.^:-
Central Eureka Mining
City Title Insurance Co
American Trailer Co., Inc., Washington, D. C.
July 26 (letter of notification) $120,000 of 5¥2% first
mortgage bonds, due Aug. 1, 1961. -Price—At 100Vz% \
'and accrued interest (in units of $1,000 each). Under¬
writer—Mackall & Co., Washington, D. C. Proceeds—
To pay off present indebtedness. and for
additional
working capital. Office—4030 Wisconsin Avenue, N. W.,
•Washington, D. C..
/ ¥'V;v*/'*•;'■ 7--r:
Farms
Glass
Jeannette
8.30
(PDT)
a.m.
Wilson
11
on
ferred shhre held.
000 shares of
to
11:30
a.m.
..Equip. Trust Ctfs.
Texas & Pacific Ry
September 7, 1951
American Investment
Co. of Illinois
Preference
September 11, 1951
11 a.m. (EDT)...
Bonds
Alabama Power Co.
(Neb.) Telephone Co.
1 Blair
July 18 (letter of notification) $175,000 of first mort¬
gage 4% bonds, series A, due 1971.
Price—101 and ac¬
crued interest.
Underwriter
Wachob-Bender Corp.,
Omaha, Neb. Proceeds—To retire first mortgage (closed)
3^% bonds and to convert to dial operation.
Tennessee Gas Transmission Co
...Bonds
Bonds
September 12, 1951
Chesapeake & Ohio Ry.
—
Noon
*
.
.Equip. Trust Ctfs.
(EDT)
September 15, 1951
Melt
Vacuum
Burlington Mills Corp.
5 filed 300,000 shares of convertible preference
stock (par $100). Price—To be supplied by amendment.
Common
Co
September 18, 1951
Chicago, Rock Island & Pacific Ry.__Eq. Trust Ctfs.
Internationa] Refineries, Inc
Debs. & Stock
New England Gas & Electric Association
11:30 a.m. (EDT)....
.......Bonds
Pennsylvania Power & Light Co...
Common
&
Co.,
New
York.
Proceeds—For additions and improvements to plant and
equipment. Offering date postponed.
....
Carolina
•
North
Mountain
Telephone
Co.,
Weaverville,
Carolina
September 19, 1951
July 13 (letter of notification) 100,000 shares of capital
stock (par $1) being offered to stockholders on basis of
one
share for each two shares held on July 23; with
rights expiring on Aug. 24. Price—$2.15 per share. Un¬
derwriter—Interstate Securities Corp., Charlotte, N. C.,
and four others.
Central
September 20, 1951
—
Proceeds
None.
—
Marine
September 26,
Corp
October 9,
ment program.
Pennsylvania
Central Pharmacal Co., Seymour, Ind.
cumu¬
1951
Bonds
Common
29, 1951
Utah Power & Light. Co., noon (EST)
lative preferred stock. Price—At par
Underwriter — None.
Proceeds — For
($20 per share).
working capital.
Office—120-128 East Third Street, Seymour, Ind.
November
Bonds
1951
Pacific Telephone & Telegraph Co...Debs. & Stock
Colonial Acceptance Corp., Chicago, III.
Aug. 10 (letter of notification) 10,000 shares of class A
(estimated
Straus
about
at
$4.50
per
Price—At market
share).
Underwriter—
&
Proceeds—For working
Blosser, and probably others. Proceeds — To
Diavid J. Gradmah, President, who is the selling stock¬
Bank Bldg.,
holder.
8
1981.
filed
Southern
$12,000,000
Underwriter—To
of
be
Ohio
Electric
first
mortgage
determined
by
Co.
(9/5)
bonds,
Bids—To
poses.
stock
competitive
be
opened
at
11:30
a.m.
(EDT)
Price—70 cents per share. Under¬
Proceeds—To pay obligations.
Office—
(par 10 cents).
writer—None.
Fidelity Bldg., Oklahoma City, Okla. Offering—Tem¬
postponed "because of market conditions."
219
porarily
aDrayson-Hanson, Inc., Los Angeles, Calif,
June, 4 (letter of notification) 50,000 shares'of common
stock (par 40 cents).
Price—$1.20 per share. Under¬
writer—Edgerton, Wykoff & Co., Los Angeles, Calif.
Proceeds—To purchase real property and plant.
on
City -Bank Farmers Trust Co., 22 William
Street; New York, N. Y.
v
'
'
5
Oklahoma City, Okla.
May 18 (letter of notification) 200,000 shares of common
aue
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Dillon-, Read & Co. Inc.; Salomon Bros. & Hutzler; Leh¬
man Brothers; White, Weld &
Co.; Lee Higginson Corp.
and Carl M. Loeb, Rhoades & Co. (jointly); Union Se¬
curities Corp. and Glore, Forgan & Co. (jointly).
Pro¬
ceeds—To repay bank loans and for construction pur¬
Sept.
capital. Office—824 Old National
Spokane, Wash.
Deardorf Oil Corp.,
Columbus &
Aug.
at
Consolidated
<
if Dumont Electric Corp.
Equipment Corp.
Aug. 10 (letter of notification) 40,000
tive convertible preferred stock (par
(letter of notification) 300,000 shares of 6%
cumulative preferred stock. - Price
At /par ($1 per
share). Underwriter—None. Proceeds—For purchase of
10
soft drink
to
one
dispensing machines. Office—105% East Pike
Colorado Springs, Colo.
>
March
:mon
5
Car-Nar-Var Corp.,
(letter of notification)
150,000 shares of com:
writers—Sills, Fairman & Harris, Inc.,, Chicago/ and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
For working capital and
general; .corporate purposes.
Temporarily deferred.
'
"
<
Continental
Electric
Co., Geneva, IIL
(letter of notification) $300,000 of 6% sinking
1„ 1975 (to be issued in units
of $100, $500 and $1,000 each). Price—91% of principal
amount. Underwriter—Boettcher & Co.,
Chicago, ILL
Securi¬
and for
development of new products.
(voting) stock (par $1). Price—$2 per share. Under¬
fund debentures due Dec.
preferred share for each 10 common shares held;
to expire Sept. 5.
Price—$4.75 to stockholders
and $5 per share to public.
Underwriter—Aetna
ties Corp., New York. Proceeds—For expansion
Brazil, Ind.
March 2
shares of cumula¬
$1) being offered
17 at rate of
stockholders of record Aug.
rights
Peak Avenue,
Continental
common
.
;
Bottling Corp.
Eastern Caramba
Aug. 7 (letter of notification) 250,000 shares of common
stock, of which 75,000 shares are to be issued to three
officers (25,000 shares each) and an initial public offer¬
ing will be made of 15,000 shares. Price—$1 per share.
Underwriter—None.
Proceeds—For general corporate
.
purposes.
.
Office—615 Adams St., Hoboken, N. J.
Equipment Finance Corp., Charlotte, N. C.
Aug. 6 (letter of notification) 2,774 shares of common
Underwriter—
Proceeds—To retire indebtedness and for working capir- •.stock.; .Price—At par ($100 per share).
None.
Proceeds—For
operating capital.
Office—1026
tal.
Offering—Postponed indefinitely.
V?
So. Boulevard, Charlotte, N. C.
Cornucopia Gold Mines
J.
Financial Credit Corp., New York
May 14 (letter of notification) 229,800 shares of common
stock
(par five cents) being offered for subscription by
stockholders of record June 30, 1951, on a one-for-five
,
Fosgate Citrus Concentrate Cooperative (Fla.)'
of class A common stock (par
$100); 5,706 shares of 5% class B preferred stock (par
$100), cumulative beginning three years from July 10,
1950; 8,000 shares of 4% revolving fund class C stock
(par $100); 2,000 shares of 4% revolving fund class C
stock (par $50); and 4,000 shares of 4% revolving fund
class C stock (par $25). Price—At par.
Underwriters
—None. Proceeds—To construct and equip frozen con¬
centrate
plant at Forest City, Fla.
(Peter)
'
Brewing Co., Chicago, III.
July 24 (letter of notification) 5,000 shares of common
stock (par $1.25). Price—$7.75 per share. Underwriter—
Thomson & McKinnon, Chicago, 111. Proceeds—To Frank
G. Fox,
the selling stockholder.
Office—2626 W. Monroe
St., Chicago, 111.
Fruehauf Trailer Co., Detroit,
Mich.
shares of common stock (par $1), to
"offered to certain employees pursuant to stock op¬
June 15 filed 115,000
be
plans." Price—At 85% or 95% of the highest sale
price of the stock on the New York Stock Exchange on
the day on which the option is delivered to the employee.
Underwriter—None. Proceeds — For working capital.
Statement effective July 17.
.t
...
tion
Fuller
(D. B.)
& Co., Inc., N. Y.
July 26 filed 120,000 shares of 6% cumulative convertible
preferred stock (par $15) and 73,598 shares of common
stock (par $1). Latter to be reserved for conversion of
6% cumulative convertible first preferred stock
with unconverted common
shares to be sold to underwriters. Price—To be supplied
par
to be
called for redemption,
Underwriter—F. Eberstadt & Co., Inc.,
stock to¬
gether with other funds, will be used to repay $2,000,000 outstanding 4% notes due March 16, 1954, and to
redeem 36,799 shares of outstanding preferred stock at
$5.50 per share. Meeting—Stockholders will vote at an
adjourned meeting Sept. 7 on the proposed financing
program. Offering—Not expected Until after Labor Day.
New York.
July 27 (letter of notification) $250,000 of Financial in¬
vestment bonds.
Price—At par (in units of $50, $250,
Proceeds—From sale of preferred
Golconda Mines Ltd.,
Montreal, Canada
April 9 filed 750,000 shares of common stock.
Price—
At par ($1 per share).
Underwriter—George F. Breen,
Proceeds—For drilling expenses,
repayment
working capital. Offering—Date not set.
Grand Union Co., New York
Aug. 7 filed 64,000 shares of common stock (par $10)
to be issued pursuant to an "employees' restricted stock
option plan." Price — To be supplied by amendment.
Underwriter—None.
Proceeds—For general corporate
of advances and
Office—50 Church St., New York.
Machinery Corp.
July 24 (letter of notification) 5,000 shares of common
stock being offered for subscription by stockholders of
record July 23, on the basis of one new share for each
five shares held; right to expire on Aug. 28.
Price—At
par ($20 per share). Underwriter—None. Proceeds—For
additional working capital. Office—287 Homsetead Av¬
purposes.
Hartford Special
enue,
Hartford, Conn.
Norwood, Mass.
notification) 7,750 shares of noncumulative preferred stock (par $1) and 7,750 shares
of common stock (par $1) to be offered in units of one
share of preferred and one share of common stock.
Price—$25 per unit ($20 for; preferred and $5 for com¬
mon). Underwriter—None. Proceeds—For development
and promotion expenses.
Office—Boston Metropolitan
Helio Aircraft Corp.,
July
.
•July
stock (par $10)
Price—To be based on mar¬
(about $34.50 per
Stock Exchange
York
Underwriter—None. Proceeds—For general corStatement effective June 29.
New York.
basis, with an oversubscription privilege; rights to expire
on Oct. 1. Price—30 cents per share. Underwriter—None.
stock, first series (par $1).
Chemical Corp.
100,000 shares of common
June 29 filed 453 shares
9,
¥
common
Proceeds—
by amendment.
Preferred
Electric Co
October
Aug. 7 (letter of notification) 8,020 shares of 5%
Bonds
1951
Midland
Arkansas Power & Light Co
For develop¬
New
on
share).
$5
September 25, 1951
Southern Counties Gas Co. of California
Eureka
Underwriter
Preferred
Harshaw Chemical Co...
Proceeds—To retire loans.
& Co., all of Topeka, Kan.
capital.
Estes
and
Food Machinery &
Utah Power & Light Co. 11 a.m. (EDT)___Common
Mining Co. (8/24)
Aug. 7 filed 300,000 shares of capital stock to be offered
to stockholders of record Aug. 24 on basis of one share
for each two shares held, with an oversubscription priv¬
ilege; rights expire on Sept. 28. Price—At par ($1 per
share.)
mon
Fox
March
Peabody
preferred
and $37.50
per
share for the com¬
stock.
Underwriters—Beecroft, Cole & Co., Inc.;
The Columbian Securities Corp.; Seltsam-Hanni & Co.,
the
Equip. Trust Ctfs.
Southern Pacific Co.__.__
American Box Board Co
Underwriter—Kidder,
for
porate purposes.
1951
poses.
.
per
ket
..Bonds
(EDT)
•September 6,
Ripley & Co., Inc.; Kidder, Peabody & Co., and F. S.
Moseley & Co. Proceeds—For general corporate pur¬
<
preferred at $100 per share and the common at $36
share. Price—On exercise of rights, $36 per share
common,
and to public at $103 per share for
the
to be offered to employees.
pre¬
Underwriters—Harriman
conditions.
Common
1951
Columbus & Southern Ohio Electric Co.
the basis of IV2 shares for each pre¬
Public offering of the additional 60,-
market
present
preferred and 6,000 shares of common publicly to¬
gether with any of the unsubscribed 3,000 common
shares.
The underwriters have an option to purchase
Inc.
(EDT)
2,000 shares of
stockholders, officers and employees and
For working
Scheerer Products, Inc.
a.m.
if Fleming Co., Inc., Topeka, Kansas
Aug. 14 (amendment) filed 2,000 shares of 5% cumula¬
tive preferred stock (par $100) and 9,000 shares of com¬
mon stock (par $25), of which 3,000 shares of
common
stock are to be offered for a period of 10 days to common
June 13 filed
preferred stock has been deferred due
new
Debentures
.
September 5,
ferred stock, series of 1951 (par $100), of which 39,604¥2
shares are issuable to holders of 26,403 shares of 6%
preferred stock
....Bonds
—
Brothers
Jetter &
'
cumulative
1951
August 29, 1951
July 6 at rate of one share for each 4M> shares held
rights to expire on Sept. 24; unsubscribed shares
to be offered publicly. Price—$45 per share. Underwriter
—None.
Proceeds—To repay bank loans. Statement ef¬
fective July 6.
with
of 4Y2%
Preferred
California Edison Co.
Southern
ord
100,000 shares
Common
...
Co
August 28,
Co., Los Angeles, Calif.
Bigelow-Sanford Carpet Co., Inc.
.
.
Roper (Geo. D.) Corp.—
......Common
Skiatron Electronics & Television Corp...Common
partici¬
pating preferred stock (no par) of which 54,444 shares
are first
being offered to preferred stockholders of rec¬
May 16, filed
Co..—
Spencer Chemical
June 11 filed 55,000 shares of $3 cumulative and
;
....Common
-
■
August 27, 1951
'
Arden
Common
__
•'
.
27
31
(letter of
Airport, Norwood, Mass.
Hex Foods, Inc.,
Kansas City, Mo.
Aug. 1 (letter of notification) 89 shares of 6% cumula¬
tive preferred stock (par $100) and 424 shares of com¬
mon stock (no par).
Price—For preferred, at par; and
for common, at $20 per share. Underwriter — Prugh,
Combest & Land, Inc., Kansas City, Mo., will act as
dealer. Proceeds—For plant improvements and general
corporate purposes.
Office—412 W. 39th St., Kansas
City,
Mo.
Hilton
Hotels Corp., Chicago,
III.
shares of common stock (par $5)
now offered to holders of common stock of Hotel Wal¬
dorf-Astoria Corp. in exchange for their holdings of
March 30 filed 153,252
share-for-share basis; offer expires on
Dealer-Manager—Carl M. Loeb, Rhoades &
Co., New York. ' •
/
Continued on page 28
such stock on a
Aug.
27.
23
The Commercial and Financial Chronicle
(712)
Continued
Pan American
from page 27
Price
—
At par
and to purchase
Town St., Columbus,
Proceeds—To finance inventories
None.
capital equipment. 'Office—538 E.
Ohio.
.'•■':/'// ■''
$4.25 per share." Underwriter—The Brcy Co., San Fran¬
cisco, Calif.
Proceeds—To Leonard A. Gregory and
.Willie R. Gregory, two selling stockholders.
(Calif.)
July 23 filed $500,000 of 15-year 5% sinking fund debenutres dated Oct. 1, 1951 and due Oct. 1, 1966, and 40,000 shares of capital stock (no par), to be offered first
to present stockholders (debentures to be offered are
to be subject to prior issuance to shareholders in pay¬
ment of a dividend in aggregate amount of $300,000).
Price—Of debentures, at par (in denominations of $100
each) and of the stock, $10 per share. Underwriter—
None. Proceeds
To increase working capital and to
finance expanded merchandise inventory.
Angeles Drug Co.
—
Loven Chemical of California
(letter of notification) 86,250 shares
June 15
Price-—At
stock.
($1
par
York, and Rauscher, Pierce &
Proceeds—To retire $1,500,000
of capital
share). Underwriter—
Calif. Proceeds—For
per
Floyd A. Allen & Co., Los Angeles,
working capital. Office—244 So. Pine St.,
Newhall, Calif.
March 26 filed
prior preferred
•tock (par $25). Price—To be supplied by amendment.
Underwriter—A. C. Allyn & Co., Inc., Chicago, 111. Pro¬
holders
of
short-term
company's
paper;
rights expire
Price—$2 per share to aforementioned holders
and $2.37% per share to public.
Underwriters — Louis
L. Rogers Co. and Graham, Ross & Co., Inc., New York.
Proceeds—For working capital.
. ; >
Aug. 31.
Lytton's, Henry C. Lytton & Co., Chicago, III.
July 24 (letter of notification) 3,000 shares of common
stock (par $1). Price—$6.87 per share.
Underwriter—
Straus & Blosser, Chicago, 111.
Proceeds—To Martin S.
Goldring, a director, who is the selling stockholder.
Office—235 So. State St.. Chicago. 111. *
Mercantile Acceptance Corp.
of California
May 18 (letter of notification) 4,881 shares of first pre¬
ferred stock.
Price—At par ($20 per share).
Under¬
writer—Guardian Securities Corp.
Proceeds—For gen¬
eral corporate purposes.
Mullan Metals, Inc., Wallace, Idaho
Aug. 6 (letter of notification) 300,000 shares of assess¬
able
Price—15 cents per
share. Underwriters—Pennaluna & Co., Wallace, Idaho,
and R. L. Emacio & Co., Inc., Spokane, Wash.
Proceeds
—For development of mining property.
capital stock
Mutual
(par 10 cents).
Products
Co., Minneapolis, Minn.
Aug. 8 (letter of notification) $200,000 of five-year 8%
registered debentures. Price—At par (in denominations
of
$100
multiples
and
additions
Proceeds—For
thereof).
Underwriter — None.
to property and for working
capital. Office—509 N. Fourth Street, Minneapolis, Minn.
it Mutual Telephone Co. (Hawaii) (9/24-28)
July 27 filed 150.000 shares of common stock (par $10)
to
on
be offered
for subscription
by common stockholders
one-for-five basis, with a
a
Philadelphia Suburban Transportation Co.
June
11
(letter of notification) $300,000 of 4J/2% con¬
(each $100 principal amount
convertible into three shares of common stock).' Price
—At par.
Underwriter—None.
Proceeds—For working
capital.
Office—69th Street Terminal, Upper Darby,
vertible debentures of 1967
Pittsburgh Plate Glass Co.
June 27 filed 450,000 shares of common stock (par
to be offered to certain employees of the company
subsidiaries
its
85%
(ex¬
pected at $10 per share). Underwriter—Kidder, Peabody & Co., New York. Proceeds—To pay outstanding
bills and for construction .program.
Offering—Expected
week of Sept. 24.
New
England Gas & Electric Ass'n
bonds,
determined
(9/18)
a.m.
(EDT)
on
bridge, Mass.
Sept.
Bids—To
18
""'.y
at
be received up
Temple St.,
10
to
Cam¬
;
mulative preferred stock
Associates, Inc. (name to be changed
Sheeld, Inc.), Dallas, Tex.
July 30 (letter of notification) 10,000 shares of preferred
to
stock
(no par) and 50,000 shares of common stock (par
two cents) to be offered in units of one preferred and
five common shares. This includes 33,000
for account of Hal
C.
common
•
Newman, President of the
com¬
Price—$10.10 per unit. Underwriter—Southwest¬
Co., Dallas, Tex. Proceeds—To purchase
assets of Sterling Industries, Inc., to retire bank loans
and
pay
accounts payable, and for working capital.
Office—1400 Marilla St., Dallas, Tex.
Securities
Old
Colony Finance Corp., Mt. Rainier, Md. 1
(letter of notification) $250,000 of 6% sub¬
ordinated
debentures
with
stock
purchase warrants
June
1
attached.
■
chase
one
The latter will entitle holders thereof to
purshare of common stock at $4 per share for
each $100 of debentures owned.
Price—At par (in de¬
nominations of $100, $500 and $1,000 each). Underwriter
—None.
Proceeds—For working capital.
Office—3219
Rhode Island
Avenue, Mt. Rainier, Md.
Underwriter—None.
'
added
(par
one
cu¬
(par $5) and 20,000 shares of
cent) to be offered in units of
share of preferred and two shares of common to
preferred stockholders of record July 27 on the basis
of two units for each five shares held; rights will expire
on Sept.
1.
Price—$5.02 per unit.
Underwriter—None.
Proceeds—For expansion program and working capital.
it Reading Tube Corp., Long Island City
June 5 filed $1,859,256 of 20-year 6% sinking fund de¬
bentures due July 1, 1971, and 66,402 shares of class B
stock (par 10 cents) being offered in exchange for 265,608
shares of outstanding class A cumulative and participat¬
ing stock (par $6.25) on the basis of $7 principal amount
of debentures and one-fourth of a share of class B stock
for each class A share
Sept. 5.
held; offer extended to expire on
Dealer-Manager—Aetna Securities Corp., New
Statement effective June
fective
on
29.
Plan declared ef¬
Stadium, Inc., Riverside, Mo.
July 12 (letter, of notification) $250,000 of 15-year 5%
and
25,000
shares
of
stock
common
(par $1) to be offered in units of one $100 note and 10
shares of stock.
Price—$100 per unit.
Underwriter—
Wahler, White & Co., Kansas City, Mo.
retire outstanding obligations.
Offering
postponed.
-
Proceeds—To
— Temporarily
..
,
Sanders Associates, Inc., Waltham, Mass.
Aug. 2 (letter of notification) 60,000 shares of class A
common stock. Price—$5 per share. Underwriter—None.
Proceeds—For purchase and/or rental of operating facil¬
ities such as electronic test equipment, machine tools, and
office equipment and for working capital to enable the
taking and completing of prime government and sub-con¬
tracts pertaining to guided missiles, electronics, and re¬
Office—135 Bacon St., Waltham, Mass.
Sheeld, Inc., Dallas, Tex.
Associates, Inc. above.
for
sale
as
follows:
87,906
shares to holders of
Option Warrants and
outstanding Employee
shares to holders of Stockholders
presently
;*>Price—At
par
Proceeds—To
($10
per
purchase
share);
new
other corporate purposes.
Snoose
Option War¬
Underwriter—
equipment and for
/a ;:
4
1,000,000 shares of
stock.
—For development of mine.
Corp., Bethel, Conn.
Aug. 8 (letter of notification) 7,625 shares of
stock (par one cent).
Price—$4.50 per share.
ceeds—To
common
Under¬
&
selling stockholder.
South
State
stock.
Price
Uranium
Mines
Ltd.
by amendment 384,000
—
At
par
($1
per
(Canada)
shares
share).
For
and
of
capital
Underwriter-
Optionee—Robert Irwin Martin of Toronto.
Proceeds—
commissions, exploration and development expenses
working capital.
^Southern California Edison Co. (8/28)
July 30 filed $30,000,000 first and refunding mortgage
bonds, series D, due 1976. Underwriters—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc.; The First Boston
Corp. and Harris, Hall & Co., Inc. (jointly); Kuhn,
Loeb & Co.
Proceeds—For construction program.
Bids
—To be received up to 8:30 a.m. (PDT) on Aug. 28 at
company's office in Los Angeles, Calif. Statement ef¬
fective Aug. 15.
.J
...
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; Stone & Webster Securities Corp.,and White,
Weld & Co. (jointly).
Proceeds—To retire short-term
notes and for expansion program.
- v
4.-y/y
Co.,
Gas
Southeastern
Tex.
Bellville,
May 16 (letter of notification) 19,434 shares of common
stock to be offered to common stockholders through
transferable warrants.
Price — At par ($5 per share).
Proceeds—For working capital,
Underwriter—None.
r
Trad Television Corp.
Aug. 7 (letter of notification) 2,000,000
shares of common
being offered for subscription by;common
stock
holders of record Aug. 9 in ratio
stock¬
of eight shares for each
held, with an oversubscription privilege;
expire Aug. 27.
Price —10; cents/;per share.
— None.
Proceeds — For working capital,
shares
nine
rights
Underwriter
Office—1001 First Avenue; Asbury ?arkj
etc.
Transgulf Corp., Houston, Texas
N* JVy:..;<
1
6 (letter of notification) 10,000 shares of capital
(par 10 cents). Price—$1 per share. Underwriter
—S. B. Cantor Co., New York. Proceeds—To Dudley P.
Aug.
stock
South, Sr., the selling stockholder.
\
C.
Oil Corp., Washington, D.
July 31 filed 1,000,000 shares of common stock (par 10
cents). Price—$1 per share. Underwriter—None. Pro¬
ceeds—For
exploration and drilling activities.
United States Gasket Co.
(letter of notification) $100,000 to $200,000 of
convertible preferred stock, or a mortgage
amount.
Underwriter—None.
Proceeds—
July 25
4%
6%
or
loan
of that
erect
new
Office
plants, and purchase equipment.
Street, Camden, N. J.
10th
North
—602
Utah Power &
(9/19)
Light Co.
4
Aug, 9 filed 175,000 shares of common stock (no par).
Underwriters—To be determined by competitive ..bid*
ding,
Probable bidders: Blyth & Co, Inc.; W. C, Langley
& Co. (jointly); Union Secu¬
& Co. and Glore, Forgan
rities Corp./ and Smith, Barney & Co. (jointly); Lehman
Bros, and Bear, Stearns & Co. (jointly); Kidder, Pea-
Merrill Lynch, Pierce Fenner & Beane
Proceeds—To repay bank loans and to pro¬
vide additional construction funds.
Bids—To be opened
at 11 a.m. (EDT) on Sept. 19.
/
v
.
body & Co., and
(jointly).
mortgage bonds, due Oct. 1,
determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Peabody & Co.; Lehman Brothers, and Bear,
& Co. (jointly); White, Weld & Co.; Salomon
Hutzler; First Boston Corp., and Blyth & Co.,
Stearns
Bros.
(10/29)
Co.
Utah Power & Light
Aug. 9 filed $9,000,000 first
1981.
Underwriters—To be
&
(jointly); Union Securities Corp., and Smith, Bar¬
ney & Co. (jointly). Proceeds—To repay bank loans and
for construction program.
Bids—To be received up to
noon
(EST) on Oct. 29.
:
j
Inc.
.
Lake
Van
7
filed
Uranium
100,000
Mining Co., Van
shares
of
common
Dyke, Mich,
stock. 1. Price
($1 per share). Underwriter—Titus Miller &
Detroit, Mich.
Proceeds —For exploration and
of mining claims.
Office—23660 Van, Dyke
Avenue, Van Dyke, Mich. Offering—Expected soon.
Co.,
drilling
Seattle, Wash*
(letter of notification) 37,500 shares of common
stock (no par), to be sold in minimum units of 125 shares
to present officers, directors and stockholders.
Price—
July 9
Middlebrook, Hartford, Conn. Pro¬
Francis H.
Snyder, President, who is the
April 9 filed
,
Viking Plywood & Lumber Corp.,
Chemical
writer—Coburn
.....
*—At par
com¬
Price—At par (25 cents per share). Under¬
writer—E. W. McRoberts & Co., Twin Falls, Ida. Proceeds
mon
chemical works.
new
June
Mining Co., Hailey, Idaho
July 19 (letter of notification)
Proceeds—From
^Tennessee Gas Transmission Co.. (9/11)
Aug. 10 filed $45,000,000 of first mortgage pipe line
bonds due 1971.
Underwriters — To be determined by
Kidder,
it Slick Airways, Inc., Burbank, Calif.
Aug. 14 filed 147,301 shares of common stock to be of¬
-
stock, together with $5,100,000 from institutional
investors, will be used to pay part of cost of construc¬
bidding.
See Newman
fered
Glore, Forgan & Co., New York.
and
„
sale of
To
it Roper (Geo. D.) Corp. (8/28)
Aug. 8 (letter of notification) 4,000 shares of common
stock (par $5). Price — $24.75 per share. Distributor —
Merrill Lynch, Pierce, Fenner & Beane, Chicago, 111.
Proceeds—To Grace Y. Roper, the selling stockholder.
Office—340 Blackhawk Park, Rockford, 111.
lated fields.
..
City, Mo. (8/27)}
Aug. 3 filed 125,000 shares of cumulative convertible
second preferred stock (par $50) to be offered to com¬
mon
stockholders in ratio of one share of preferred
for each eight common shares held aboutf Aug. 27, with
rights expiring about Sept. 11.
Price—To be supplied
by amendment.
Underwriters—Morgan Stanley & Co.
United Canadian
Riverside
notes
to
Spencer Chemical Co., Kansas
Aug. 14.
debenture
Co., Inc., Dallas, Texa3.>
of bank loans and the1
general corporate funds. Offering —
Postponed.
Texas
one
shares
pany.
ern
stock
Snyder
Newman
;
option plan.
the New York Stock Ex¬
Polymer Industries, Inc., Astoria, N. Y.
July 30 .(letter of notification) 10,000 shares of 6%
None,
Halsey, Stuart & Co. Inc.; The First Boston Corp.; White,
Weld & Co. Proceeds—To purchase additional common
11:30
on
change at time options are granted.
Proceeds—For working capital.
rants.
series C, due 1971.
Underwriter-^To be
by competitive bidding. Probable bidders:
stocks of five subsidiaries.
$10)
and
Price—At
stock
a
of the market price
59,395
:>ri
Aug. 6 filed $6,115,000 of 20-year sinking fund collateral
trust
under
filed
15,
tion of
Pennsylvania.
14-day standby; and to
Price—To be supplied by amendment
employees.
Offering—Indefinitely
postponed.
York.
McBee Co., Athens, Ohio
Aug. 3 (letter of notification) 2,500 shares of 5% first
preferred stock. Price—At par ($100 per share). Under¬
writer—Roy E. Hawk & Co., Athens, O. Proceeds—For
working capital.
160,000 shares of 5%%
ceeds—For construction program.
common
it Lowell Adams Factors Corp.
Aug. 9 (letter of notification) 126,300 shares of common
stock (par 10 cents) being offered to common and pre¬
ferred stockholders of record Aug. 15 and to certain
June
balance
Peabody Coal Co.
Kingsburg Cotton Oil Co., Kingsburg, Calif.
Aug. 8 (letter of notification) 5,000 shares of common
stock (par $1). Price—At market "between $4.12Vz and
Los
ment necessary.
($1 per share). Underwriter—None. Proceeds—To
purchase machinery and equipment, to construct a mill
Mexico and for general corporate purposes.
State¬
ment effective June 26 through lapse of time; amend¬
;/'
*
Co.
in
200,000 shares of common stock. Price—At
Par
50,400 shares of common
($5 per share). Underwriter—
(letter of notification)
Stock.
Southwestern Associated Telephone
Milling Co., Las Vegas, Nev.
1951
Thursday, August 23,
:.
17,500 shares of $5.50 cumulative pre¬
ferred stock (no par). Price—To be supplied by amend¬
ment.
Underwriters—Paine, Webber, Jackson & Curtis
and Stone & Webster Securities Corp., both of New
Jan. 24 filed
Columbus, Ohio
Keever Starch Co.,
Aug. 1
.
$20 per share. Underwriter—None. Proceeds—To per¬
acquisition of 50% of capital stock of Snellstrom
Lumber Co., Eugene, Ore. Office—1411 Fourth Avenue
mit
Building, Seattle, Wash.
Western Reserve Life
-
V
Insurance Co.
,-j
(letter of notification) 10,000 shares of common
(par $10) to be offered for subscription by present
stockholders at rate of one share for each two shares held.
June 12
stock
Price—$20 per share.
Underwriter—None. Proceeds—
For financing expansion program.
Office—1108 Lavaca
Street, Austin, Tex.
Wilson
Brothers,
\ '
'
Chicago,
III.
,,
(8/28)
Aug. 3 filed $2,200,000 of 5% sinking fund debentures
due Aug. 1, 1966, with non-detachable common share
purchase warrants for the
common
stock.
Price—To
purchase of 154,000 shares o£
be supplied by amendment.
Rollins & Co., Inc., New. York.
off outstanding indebtedness and for
Underwriter—Blair,
Proceeds—To pay
nthpr
rnrnnrat.e
nurnoses.
.
Number 5040
Volume 174
.
.
.
The Commercial and Financial Chronicle
ment
15
Prospective Offerings
American
President Lines,
Ltd.
or
to the Dollar interests.
Arkansas Power &
(10/9)
Light Co.
announced that company plans issuance
and sale of $8,000,000 additional first mortgage bonds.
Underwriters—To be determined by competitive bidding.
July 16 it
Probable
was
bidders:
Halsey,
Stuart
Co.
&
July
stockholders
10
issuance
approved
of
$1,350,000
Bonds
.
Associated.Telephone Co., Ltd. (Calif.)
July 3 it was announced that tentative plans call for the
sale later this year of $8,000,000 additional first mort¬
gage bonds. Underwriter — To be determined by com¬
petitive bidding. Probable bidders for bonds: Halsey,
Stuart & Co. Inc.; Paine, Webber, Jackson & Curtis and
Stone & Webster Securities Corp. (jointly); Kuhn, Loeb
& Co. and Salomon Bros. & Hutzler (jointly); White,
Weld & Co., Kidder, Peabody & Co. and Shuman, Agnew
6 Co. (jointly); Harris, Hall & Co., Inc. and Equitable
Securities Corp. (jointly). Proceeds — For construction
/'
•
consolidated
company
Canadian Atlantic Oil Co., Ltd.
certain
areas
Colorado
June
before
financing,
that
about
the
end
of
1952
refunding mortgage bonds, series H, due May 1,
(in addition to $40,000,000 series G bonds filed with
the SEC on March 30). Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane and White,
Weld &
Co. (jointly). Proceeds — To redeem a like
amount of Westchester Lighting Co. 3%% general mort¬
gage bonds due 1967. Offering—Postponed.
Continental Can Co., Inc. 4
Aug. 7 it was reported that the company may offer a
combination of securities later this year. Probable Un¬
Delaware River Development Corp. (N< J»)
20 FPC decided to issue a one-year .preliminary
June
permit to the corporation for investigation of the pro¬
posed development of a hydroelectric project on the
Delaware River in New Jersey, Pennsylvania afid New
York, estimated to cost $47,000,000. Early last year, it was
announced that the proposed project would be financed
through the issuance of $28,200,000 of bonds, $14,100,000
of preferred
stock, $4,700,000 of convertible common
stock and 100,000 shares of no par value common stock.
Denver & Rio
additional
permanent
including
equity financing: It is estimated
$3,400,000 will be required to take care of
additional construction expenditures to the end of next
■'[
' /,
..
Chesapeake & Ohio Ry.
'Bids will be received
up
to
(9/12) '
noon
(EDT)
on
Sept.
12
'
for the
purchase by the company of $6,300,000 of equip¬
.
Grande
Western
RR.
April 12, Wilson McCarthy, President, stated that due
to prevailing market conditions, the company has post¬
poned to an undetermined date the taking of bids for
the purchase of $40,000,000 first mortgage bonds to be
dated May 1, 1951, and to mature on May 1, 1981. Un¬
derwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Kuhn, Loeb & Co. and Bear, Stearns
& Co.
(jointly).
Proceeds — Together with treasury
funds, to redeem on June 1, 1951, $35,062,200 oustanding
first mortgage 3%-4% bonds, series A, and $8,666,900 ol
Denver & Salt Lake income mortgage 3%-4% bonds,
both
"if
due Jan. 1, 1993.
Derby Gas & Electric Corp.
July 16 corporation received SEC authority to issue and
sell
$900,000 of debentures to mature July 1, 1957
(placed privately with an institution) but reserved
jurisdiction over the proposed issuance of approximate¬
ly 12,500 additional shares of common stock (latter to be
offered to public pursuant to a
Power Co.
negotiated transaction).
Offering—Expected
on
and
after
..
Illinois Bell Telephone Co.
27 W. V. Kahler,
President,
June
-
^
J
y
announced
that
this
(approximately 99.31% owned by American
Telephone & Telegraph Co.) plans issuance and sale,
company
sometime before the end of the
year, of 682,454 additional shares of capital stock to its stockholders. Under-
'
| writer—None.
for
•
new
Proceeds—To repay short-term loans and
e/7
construction.
International Bank for Reconstruction and
Development ("World Bank")
Aug. 21 it was reported that new financing of about
$100,000,000 long-term bonds is expected early in Sep¬
-
tember.
and
Underwriters—First National Bank of Chicago
Halsey, Stuart & Co. Inc., (jointly) and others.
if International Refineries, Inc. (9/18)
Aug. 14, it was announced company will finance the con¬
struction of a $7,000,000 oil refinery near the cities of
Duluth, Minn., and Superior, Wis., by the public sale
applied to New York P. S. Commis¬
1981
plans to
hold¬
stock.
'
.
Inc.
and
.
year.
Consolidated Edison Co. of New York,
March 23 company
Vermont
1 it was
Hal¬
sion for authority to issue and sell $25,000,000 of first
Price—About $10.25 or $10.50 per share.
Underwriter—
None, but participating dealers in securities will be
compensated.
v
y
7
obtain
'
company's properties.
Sept. 1.
Glore,
derwriter—Goldman, Sachs & Co., New York.
,.
capital.
Idaho
,
if Central Telephone Co., Chicago, III.
Aug. 14 company announced it plans to offer early in
September to holders of its common stock (other than
Central Electric & Gas Co.) an additional 26,000 shares
of common stock, with an over subscription privilege.
Aug.
Probable bidders for bonds or debentures:
Greensboro, N. C.
Aug. 7 it was reported that preparations are going for¬
ward for the marketing of from 400,000 to 500,000 shares
of outstanding common stock.
Underwriter — May be
Morgan Stanley & Co., New York. Proceeds—To go to
selling stockholders.
:
issue and
$5). Un¬
bidding.
Probable bidders: Blyth & Co., Inc.; Smith, Barney &
Co.; Harriman Ripley & Co., Inc. (jointly); Lehman
Brothers and Lazard Freres & Co. (jointly); The First
Boston Corp. and Merrill Lynch, Pierce, Fenner &
Beane
(jointly); Kuhn, Loeb & Co.; Carl M. Loeb,
] Rhoades & Co.; Ladenburg, Thalrnann & Co. and Wertheim & Co. (jointly). Proceeds—To be used to assist
subsidiaries to finance a part of their construction pro¬
grams.
Registration—Expected about Sept. 10. Bids—
To be opened early in October
v
-
will
July.23 company applied to FPC for authority to issue
$15,000,000 of additional first mortgage bonds, due 1981.
Will probably be placed privately. If
competitive, prob¬
able bidders may include
Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc., Lazard Freres and The First Boston
Corp. (jointly); Equitable Securities Corp.; Kidder, Pea¬
body & Co.; Salomon Bros. & Hutzler and Union Securi¬
ties Corp. (jointly); Harriman
Ripley & Co., Inc. Pro¬
Cone Mills Corp.,
Illinois
,
Stockholders
ceeds will be used for additions and improvements to the
Stuart & Co. Inc.; The First Boston Corp.;
Forgan & Co.; Morgan Stanley & Co.
7
issue
stock
working
Interstate Gas Co.
sey,
in North and South Carolina. Esti¬
was
be asked to increase the authorized
number of shares of preferred stock from
20,000 to 40,000. Price—To be named later.
Proceeds—For
Corp.
will be required through 1954.
Neither the timing nor
the nature of this new financing have yet been deter¬
change its
Underwriter—
Co., Waterville, Me.
stated that
the company plans to
12,000 additional shares of 5.8% preferred
(par $25), which will carry warrants entitling the
ers
thereof to purchase IV2 shares of common
18 it was reported
mined.
Hathaway (C. F.)
and sell
May 22 Charles Y. Freeman, Chairman, announced that
the company's scheduled construction program for the
1951-54 period calls for the expenditure of about $450,000,000, of which it is estimated that $200,000,000 will
be provided out of cash resources at the end of 1950.
This means that additional capital of about $250,000,000
to
Public Service Corp.
announced that the company expects to
•
Aug. 18, it
,.
sell about 500,000 shares of common stock (par
derwriters—To be determined by competitive
Central
Iron
(9/20)
was
Offering—Expected about Sept. 20.
Commonwealth Edison Co.
Light Co.
Aug. 10, it was reported company plans to issue and sell
about $7,000,000 of first mortgage bonds.
Underwriters
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Lehman Brothers;
Morgan Stanley & Co.: Kuhn, Loeb & Co.; U[nion Secu¬
rities Corp.; Equitable Securities Corp.; Harriman Rip¬
ley & Co., Inc. Proceeds—For new construction and to
repay bank loans. Offering—Expected in September.
7
&
Co.
reported that the company plans to issue
and sell $4,000,000 of cumulative convertible
preferred'
stock
Underwriter—McDonald & Co., Cleveland, O.
that the holdings of the Union
Corp. group of stock of Colorado Interstate
(531,250 shares) will probably be sold publicly in August
or September. • ■'•//•
7;
>'•'/,/•.:;7 -77 •.
Gas
Central & South West Corp*
Aug. 13 it was reported company
July 27 it
Securities
Issuance of junior securities. Underwriters may include
R. S. Dickson & Co., Charlotte, N. C.
Central
Fuel
Underwriter—White, Weld & Co., New York.
Harshaw Chemical
York. .;/■
mated cost of the proposed facilities is $3,595,295, to be
financed by the sale of first mortgage bonds and the
•
tional
partly by private placement and partly by public
offering.
Traditional underwriter: Allen & Co., New
Corp., Charlotte, N. C.
Feb. 20 a fourth amended application was filed with the
SEC for authority to build a natural gas pipeline system
serve
200,000 to 300,000 shares and the common stock
3,800,000 to 5,000,00 shares; also to authorize an in¬
crease in the
aggregate principal amount of bonds issu¬
able under the company's indenture of
mortgage, dated
June 1, 1946, from $157,00,000 to
$300,000,000. Tradi¬
from
in
by competitive bidding.
Colorado
Paso Natural Gas Co.
from
the
issue
expects to be
nanced
Reynolds & Co., New York.
to
company
Aug. 15, it was reported that company plans erection of
a
$30,000,000 mill at Pueblo, Colo., which may be fi¬
reported company expects to file in the
Natural
El
Aug. 10, it was announced that stockholders will vote
Sept. 18 on increasing the first preferred stock from
100,000 to 300,000 shares, the second preferred stock
improvements, etc.
future a registration statement with the SEC cover¬
approximately 1,150,000 shares of common stock
(par $2), following merger, which will be voted upon
Sept. 4, into Atlantic Oil Co., Ltd. (a subsidiary of
Pacific Petroleums, Ltd.), of Princess Petroleums, Ltd.
(an affiliate of Facific Petroleums) and Allied Oil Pro¬
Carolina
on
bonds due July 1, 1952, and to redeem $13,747,000
first and refunding mortgage 4^4% bonds, series D, due
Sept. 1, 1962.
The remainder will go towards property
ing
to
company filed an amended application in con¬
nection with a proposal to extend its
natural gas trans¬
mission system to several Tennessee
communities and"
industrise at an estimated cost of
approximately $5,200,000 to be financed
by the issuance and sale of first mort¬
gage pipe line bonds.
Latter may be placed
privately.
Traditional underwriter:
White, Weld & Co., New York.
gage
near
name
reported
Offering—Expected late in
July 17
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler
(jointly); Harriman Ripley & Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson &
Curtis; Kidder, Peabody & Co.
Proceeds—To refund
$49,988,000 of 4% non-callable consolidated first mort¬
;;r'''7777
the
was
determined
if Canadian Atlantic Oil Co., Ltd.
Ltd.,
it
program.
East Tennessee Natural Gas Co.
early in 1952 with a new
approximately $70,000,000 of first mortgage bonds,
1981, of which about $65,000,000 will be sold ini¬
tially. Price—Not less than par. Underwriter—To be
to be used to finance construction of a
rayon tire yarn plant at Coosa Pines, Ala., and for work¬
ing capital. Offering—May be made privately.
ducers,
2
construction
September.
issue of about
market late this year or
sources,
was
an
1951
Chicago & Western Indiana RR.
June
Underwriters—Probably White, Weld & Co. and Kidder,
Peabody & Co. Proceeds—From sale of stock, together
with $15,000,000 from bank loans and $3,000,000 from
Aug. 7, it
18 for the purchase from it of
Sept.
Beaunit Mills, Inc.
'
June 26 stockholders approved issuance and sale of 100,000 shares of $5 cumulative preferred - stock
(no par).
other
Chicago, Rock Island & Pacific Ry. (9/18)"'
are expected to be received by the
company
Bids
selected through
competitive negotiation. Prob¬
Co.; Union Securities Corp.; Smith
Ramsay & Co.; Hincks Bros, and Paine,
Webber, Jack¬
son & Curtis
(jointly). Proceeds—To be applied toward
Chicago District Pipeline Co.
May 22 it was announced that this company (a sub¬
sidiary of Peoples Gas Light & Coke Co.) may find it
necessary to construct a 30-inch pipeline from Volo,
111., to near Mt. Prospect, 111., at a cost estimated at
approximately $1,650,000.
The amount and character
of the financing are not now known.
Bond financing in
March, 1950, was placed privately.
•
be
29
able bidders: Allen &
Hutzler.
due
will probably be sold
privately, and proceeds used to redeem $420,000 of 33A%
debentures and retire $197,500 bank loans, with the bal¬
ance for construction program.
No common stock financ- *
ing is contemplated at present.
;
>
program.
&
To
of
Gas Co.
outstanding).
are
Bros.
annually over a period of 15 years. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler/ \
first mortgage bonds and increased authorized common
stock from 300,000 to 500,000 shares (of which 289,706
shares
semi-annually over
Halsey, Stuart & Co. Inc.;
$5,500,000 equipment trust certificates to mature semi¬
about Oct. 9.
Western
Arkansas
mature
Lehman
Equitable Securities Corp. and Central Republic Co.
(jointly); Union Securities Corp.; The First Boston Corp.;^
White, Weld & Co. Proceeds—For construction program,*
estimated to cost about $20,000,000 in 1951. Bids—Expect¬
ed to be opened
to
(jointly);
Inc.;
Brothers and Stone & Webster Securities Corp.
certificates
Probable bidders:
years..
Salomon
May 27, Charles Sawyer, Secretary of Commerce, pro¬
posed the public sale to the highest bidder of the stock
of this company now held by the Department of Com¬
merce.
The proceeds would be placed in escrow until
the Courts decide whether the stock rightfully belongs
to the Government
trust
(713)
'
of securities, which is expected to include an issue of
$3,000,000 10- or 12-year debentures and 750,000 shares
of common stock in units—probably to consist of about
$20 principal amount of debentures and five shares of
stock at $25 per unit (in addition to the private place¬
ment of an issue of $4,000,000 first mortgage
bonds).
Underwriters—Eastman, Dillon & Co., New York, and
Southwest
Co., Dallas Texas. Proceeds—For construc¬
working capital.
Offering — Expected
around the middle of September, with registration with
tion
costs 'and
SEC in
a
few days.
Office—Minneapolis, Minn.
Jetter & Scheerer
Products, Inc., N. Y. (8/29)]
Office of Alien Property,
Department of Commerce, 120 Broadway, New York 5,
N. Ygjup to 11 a.m. (EDT) on Aug. 29 for the purchase
Bids will be received at the
from,, The Attorney General of the United States of 200
shares
100%
of common stock (par $100), which constitutes
of the issued and outstanding capital stock.
Kansas City Power &
Light Co.
June 12, Harry B. Munsell, President, .announced Com¬
hopes to issue and sell within the next two years
$12,000,000 of bonds, $10,000,000 of additional preferred
pany
stock
nance
and
its
holders
$8,000,000 of additional
construction
program
common
for
stock to fi¬
1951-1952.
Stock¬
voted
July 11 to increase the authorized
preferred stock from 200,000 to 350,000 shares and the
authorized indebtedness by $12,000,000.
Probable bid¬
ders for preferred stock: Glore, Forgan & Co. and W.
C.
Langley & Co. (jointly); Smith, Barney & Co.; The
Boston Corp.; White Weld & Co., Shields & Co.
and Central Republic Co. (jointly); Harriman Ripley &
Co., Inc.; Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Union Securities
Corp. and Stern Bros. & Co. (jointly). Probable bidders
for common stock; Lehman Brothers; Glore, Forgan &
Co.; Harriman Ripley
Co., Inc.
Probable bidders for
bonds:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
White, Weld & Co.; Shields & Co. and Central Republic
Co. (jointly); Glore, Forgan & Co.; Smith, Barney & Co.;
Kuhn, Loeb & Co.; Union Securities Corp. and Salomon
Bros. & Hutzler (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly); The First Boston Corp.; Equit¬
First
able Securities Corp.;
Harriman Ripley & Co., Inc.
Continued on page
3Q
30
The Commercial and Financial Chronicle
(714)
Continued
from
Kansas
May
24
nounced
Gas
page
Aug. 1 A. Sidney Knowles, Chairman and President, an¬
nounced that the directors have approved in principle a
& Electric Co.
Murray F. Gill, Chairman
the
that
company's
of the board, an¬
construction
present
pro¬
calls for expenditures of more than $8,000,000 in
To finance part of the expansion program, com¬
gram
1951.
sell $5,000,000 of first mortgage bonds. Under¬
writers—To
be
determined
by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Union
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co.* (jointly).
There is a pos¬
sibility that company may also decide to refund its
outstanding $16,000,000 first mortgage 3%% bonds due
1970 (held by a group of insurance companies)
and
$5,000,000 first mortgage 3%% bonds due 1978.
pany may
Broadcasting
Liberty
Dallas,
System,
Texas
Barton R. McClendon, Chairman, announced
company expects in a few weeks to raise about $3,000,000,
probably through the sale of additional common stock.
It has not been decided whether the financing will be
18,
done
privately
publicly.
or
Long Island Lighting Co.
June
25
it
reported that the company's next .step
was
its financing program may include the sale of ap¬
proximately $15,000,000 of preferred stock. Probable
bidders may include Blyth & Co., Inc.
in
•
Marine Midland
(9/26)
Corp., Buffalo, N. Y.
new
announced company plans to offer to its
right to subscribe to 223,352 shares of
cumulative convertible preferred stock (par $50)
on
basis of
Aug. 16 it
was
the
stockholders
of
a
common
Oct.
expire
one
stock
16.
share of preferred
held
on
for each 25 shares
about Sept. 26; rights to
or
Price—To be supplied
Underwriters—The First Boston Corp.;
by amehdment.
Union Securities
Corp. and Granbery, Marache & Co. of New York; and
Schoellkopf, Hutton & Pomeroy, Inc. of Buffalo, N. Y.
Proceeds—To permit acquisition of an additional bank
or banks to expand the capital funds of one or more of
the constituent banks, and for general corporate pur¬
poses.
Meeting—Stockholders will vote Sept. 20 on ap¬
proving the proposed financing. Registration—Expected
about Sept. 7.
McKesson & Robbins,
plan to offer a modest amount (not exceeding $300,000)
common stock for subscription by common stockhold¬
shares
probable offering of additional stock to common stock¬
Probable underwriter: Goldman, Sachs & Co.,
New York. Proceeds will be added to working capital.
a
holders.
Mengel Co.
&
completed.
Traditional underwriter—F. S. Moseley
Co.
* Pennsylvania Electric Co.
Aug. 16
company
edness which could be issued with provision for con¬
vertibility into common stock. The company presently
r
(10/9)
filed with SEC
has outstanding 439,193 shares of capital stock, of which*
45,350 shares are held by the wholly owned subsidiary/
Ryan School of Aeronautics.
'
*
proposal to issue and
a
sell
$5,000,000 of additional first mortgage bonds and
30,000 additional shares of cumulative preferred stock
,/
together with 165,000 additional shares of
(latter issue to be sold to Associated
Electric Co. for an aggregate of $3,300,000). Underwrit¬
ers—For bonds and preferred stock to be determined
(par $100),
for preferred stock: W. C, Langley & Co.
Glore, Forgan & Co. (jointly); Smith, Barney &
Kidder, Peabody & Co.; Harriman, Ripley & Co.,
Proceeds—To repay bank loans and to reimburse
Pennsylvania Power & Light Co.
as
G. Becker & Co. (Inc.), Union Secur¬
Corp. and Ladenburg, Thalmann & Co. (jointly);.
Merrill Lynch, Pierce, Fenner & Beane; Kidder, Peabody
& Co.; F. Eberstadt & Co.; Allen & Co.; new
company
formed
by United States & International Securities
Corp., Dillon, Read & Co.; F. S. Moseley & Co.; Riter
ities
-
&
and
Co.;
Inc.
April
(9/18)
the
share for each
30
shares
stock to
common
be
held
after the
proposed three-for-one split-up. Price—To be
supplied later. Underwriters—Goldman, Sachs & Co. and
Lehman Borthers, both of New'York.
Proceeds—For
capital investments and working capital;
National
Container Corp.
Aug. 13 it was reported that company is understood to
be planning the registration in about a week of $20,000,000 first mortgage bonds and $13,000,000 of convert¬
ible preferred stock.
Underwriters—For bonds: Halsey,
Stuart & Co. Inc. and Van Alstyne Noel Corp.
(jointly ),
For preferred—Van Alstyne Noel Corp.
Ohio Power Co.
more, which it expects to raise some months hence
through the sale of new securities. Probable bidders for
bonds: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.;
The
First
Boston
Corp.;
Glore,
Forgan
&
Co.,
White,
Weld & Co. and Union Securities Corp.
(jointly).
ceeds will be used for construction
program.
Pro¬
June
29
it
July
announced
plans issuance and
sale of $15,000,000 of mortgage bonds in the
early part
of 1952. Underwriters — To be determined
by competi¬
tive
bidding.
Probable
bidders:
Halsey,
Stuart
&
Co. Inc.; Blair, Rollins & Co. Inc. and Carl M.
Loeb,
Rhoades & Co.
(jointly); Lehman Brothers; W. C. Langley & Co. and The First Boston Corp. (jointly); Union
Securities Corp.;
Kidder, Peabody & Co.; Blyth and Co.,
Inc., White, Weld & Co. and Harris, Hall & Co., Inc.
(jointly).
•
Pacific
Aug.
sell
15 it
Telephone & Telegraph Co.
was
announced
company
(11/9)
plans to issue and
$30,000,000 of 30-year debentures
and 633,274
addi¬
tional shares of common stock at
par ($100 per share)
to present stockholders at rate of one new share for each
Jiine shares held. Probable bidders for
debentures: Hal¬
Stuart & Co. Inc.: Morgan Stanley & Co.; Lehman
Brothers and Union Securities
Corp. (jointly); White,
Weld & Co. Proceeds will be used to
repay bank loans
sey,
and
for expansion
program.
year
$18,000,000 of senior securities.
be in
Prob¬
a
it-
(9/25)
announced-• company >' expects
soon
to
registration statement with the
SEC
cover¬
was
ing approximately $12,000,000 of first mortgage bonds,
due 1981 (probably as 3y4S).
Underwriters
The last
bond financing was handled by Blyth &
Co., Harriman
Ripley & Co. Inc. and Dean Witter & Co. in April, 1948.
—
,
•
Proceeds—To be used for expansion of gas transmission
and distribution system.
Southern
Inc.
tion
Natural
Bids—Expected Sept. 25.
Gas
^
Co.
announced company has filed
was
with
FPC
an
applica¬
for
permission to construct additional
estimated $13,641,000, of which ap¬
proximately $9,187,000 is expected to be spent in 1951.
facilities to cost
year arrangements were made with eight
borrowing up to $40,000,000 on promissory
for
total, it is planned
in 1952 and $13,000,000 in 1953. Underwriters—May be determined by
competitive bidding. Probable bidders for bonds: Hal¬
sey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Union Securi¬
ties Corp. and Salomon Bros. & Hutzler (jointly); Blyth
& Co., Inc.; The First Boston Corp.; Glore, Forgan &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Harri¬
man Ripley & Co. Inc.
Probable Bidders for preferred
stock: Blyth & Co., Inc.; Glore, Forgan & Co.; Harriman
Ripley & Co. Inc. Proceeds—To retire bank loans in¬
•
an
Public Service Co.
company
In
July
last
year,
stalments.
(9/6)
by
the company
165
at
Broad¬
Probable bidders:
Halsey, Stuart & Co. Inc.;
Southern
Union Gas Co.
May 23 C. H. Zachry, President, announced that com¬
pany plans the issuance of $5,000,000 new first mortgage
■'
bonds within the next 60 to 90 days.
writer—Blair, Rollins &
Co.,
Inc.
Traditional Under¬
Proceeds—For new
construction.
Inc.
•
Texas & Pacific
Bids
plans to issue and
will
purchase
$1,200,000 of bonds were
Co.
Ry.
be received
from
the
(9/6)
and
opened
of
on
Sept. 6 for the
$2,900,000
equipment
Halsey, Stuart &
Inc.; Salomon Bros. & Hutzler; R. W. Pressprich &
trust
•
&
received
Salomon Bros. & Hutzler.
with two institutional investors.
Rochester Gas
be
certificates, series GG, to mature in 15 equal annual in¬
million dollars of first mortgage bonds in
sell several
Fall.
of North Carolina,
announced
was
will
way, New York, N. Y., up to noon (EDT) on Sept. 6
for the purchase from it of $10,920,000
equipment trust
curred in connection with construction program.
July 12 it
Southern Pacific Co.
Bids
notes bearing interest at V-k%. Of this
to use $13,000,000 in 1951, $14,000,000
certificates.
company
Probable
bidders:
Co.; Harris, Hall & Co.. (Inc.).
,
Electric Corp.
Ultrasonic
Aug. 1 it
Corp., Cambridge, Mass.
stockholders were scheduled to
announced that company expects to issue
was
Aug. 15,
creasing authorized
$5,000,000 additional first mortgage bonds and additional
debt securities or preferred or common stocks, bank
000 shares.
or some combination thereof, in connection /
with its construction program. The method of obtaining
borrowings,
such
company
2
file
was reported that company may do some per¬
financing "when market conditions permit."
additional
cash
Previous
bond
Rochester
July
18, it
raise
money
financing
Telephone
was
done privately.
connection with
Corp./
in¬
v
.
'
.
Virginia Electric & Power Co.
h
May 1 the company announced that it is contemplated
that there will be additional financing to an amount ap-
reported that the company expects to
through the sale of some preferred stock
was
'
Underwriter—Probably The First Boston
Corp., New York. Proceeds—To finance, in part, a $10,000,000 construction program the company has budgeted
for the next two years.
■//■;. //
'
2
;
Power Co.
July 19, Rockwell C. Tenney, President, announced that
the company is planning the issue and sale this Fall of
approximately $6,000,000 of first mortgage bonds, series
D. Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; The
Corp.;
Merrill Lynch, Pierce, Fenner &
Beane; Blyth & Co., Inc.; Kidder, Peabody & Co.; Union
Securities Corp. and White, Weld & Co. (jointly); Leh¬
man Brothers and A. C. Allyn & Co.
(jointly); Stone &
Webster Securities Corp.; Carl M. Loeb, Rhoades & Co.
and Equitable Securities Corp. (jointly). Proceeds—For
expansion program.
proximating $20,000,000, incident to the 1951 construction
that further financing will be required in
1952. -Probable bidders for bonds: Halsey, Stuart & C6.
program, and
Inc.; Salomon Bros. & Hutzler; Stone & Webster Secuidties Corp.; Union Securities Corp.; White, Weld & Co.
•
-
Rockland Light &
Boston
on
acquisition of S. A. Woods Machine Co.,
; Boston, Mass.
later this year.
First
vote
stock from 200,000 to 400,Early registration is expected with offering
common
likely next month.
Probable Underwriter—Emanuel,
Deetjen & Co., New York. Proceeds will be used in
requirement has not been deter¬
Power & Light Co.
was
indicated it would this
company
with
this
mined.
Pacific
market
July 31 it
placed privately
haps
bond
a
year.
• Southern Counties Gas Co. of California
May 15 it
was stated that this company, a subsidiary of
American Gas & Electric Co., will need $36,000,000, per¬
company
•
.
Public Service Co. of Indiana,
the
announced
bidders: Halsey, Stuart & Co. Inc.: Blyth & Co.;
Inc.; White, Weld & Co.;/ Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Harris, Hall & Co;
(Inc.) (jointly).* Offering—Expected in the Fall.
Brothers; White, Weld & Co. Proceeds will be
used for expansion program.
Financing not considered
imminent.
*
"
-V'
Earlier
of
V*:-
President,
able
,
banks
Smith,
,
.
Southern California Gas Co.
July 25, stockholders approved issuance of 78,507 shares
of cumulative preferred stock (par $100). Proceeds will
be used for expansion program.
Aug. 7, it was reported company may issue and sell
manent
Aug. 17, George W. Merck, Chairman, announced stock¬
holders will on Sept. 10 vote on approving a new issue
of 275,000 shares of convertible second preferred stock
(no par), of which it is planned to offer 244,500 shares
for subscription by common stockholders at rate of one
Earl
April 4, the
Pennsylvania Water & Power Co.
$8,000,000 to $10,000,000 of first mortgage bonds. Prob¬
able bidders may include: Halsey, Stuart & Co. Inc.;
t.
.
first mortgage bonds and repay outstanding short-term
bank notes which are due before the end of the
year
finance,
.
7/
<
.
issue of more than $8,000,600 by fall of
Underwriters—May be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; Lehman Brothers; Blyth & Co., Inc. Proceeds—
To refund the presently
outstanding $4,000,000 of 4V8%
this
employees.
,
24
plans
Price—To be announced laterin part, construction program
(estimated to total $12,700,000 during remainder of 1951).
to
•
,
/;:.// South Jersey Gas Co.
(a total of 3,794,954 common shares were outstanding
of June 30, 1951).
Unsubscribed shares are to be
Proceeds—To
Co.
,
18,
offered
bidders: A.
able
Charles E. Oakes, President, announced that
the company plans to offer additional shares of common
stock (no par) for subscription by common stockholders
of record on or about Sept. 18 at rate of one share for
each seven shares held; rights to expire on or about Oct.
3
was
probably late in September or early in October to the1
highest bidder by the Office of Alien Property. Prob¬
the
treasury for capital expenditures already made or.to be
made.
Construction expenditures for the last half of
1951 are estimated at $10,000,000. Bids—Tentatively ex¬
pected to be opened on Oct. 9.
•
.
reported that the company's entire com¬
mon
stock issue (440,000 shares)
was expected to
be
registered with the SEC this month and offered for sale
Ripley & Co., Inc.; A. C. Allyn & Co., Inc.; Shields &
Co. and R. W. Pressprich & Co. (jointly). Probable bid¬
ders
Schering Corp.
July 26 it
stock
by competitive bidding.
Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Mer¬
rill Lynch, Pierce, Fenner & Beane; Union Securities
Corp.; White, Weld & Co. (jointly); Equitable Securities
Corp.; The First Boston Corp.; Kuhn, Loeb & Co.; Leh¬
man
Brothers and Drexel & Co.
(jointly); Harriman
Aug.
take the form of a general offering for,
may
sale to the public or granting of rights to stockholders;*
or
the reservation for conversion of long-term indebt-v
June 25 it
:*jlr Merck & Co., Inc.
•
financing
standing 197,600 shares of $1 par value. Probable Under¬
writer—H. M. Byllesby & Co., Chicago, 111. Proceeds—
For working capital.*
Lehman
Aug. 10, Alvan A. Voit, President, stated that the com¬
pany plans to spend from $15,000,000 to $20,000,000 for
expansion, but that plans for financing have not yet
been
shares in order to place it in a position tofinancing of some form of its own securi¬
ties if and when advantageous to the company. The new
1,000,000
involve the issuance of 24,700 additional
one-for-eight basis. There are presently out-?
on a
announced company plans to increase
capital stock (par $1) from 500,000 to
was
do appropriate
This may
ers.
it
4
authorized
its
Inc.
May 24 it was anndunced stockholders will vote Oct. 23
on a proposal to
increase authorized common stock by
500,000 shares to 2,500,000 shares in order to provide for
•
Aug.
of
common
July
Ryan Aeronautical Co., San Diego, Calif.
£ Parkersburg Rig & Reel Co.
29
Thursday, August 23, 1951
..
.
Expected this fall.*
•
-
-
West Texas Utilities Co.
July 26 it
■
r
f
was
announced company plans to sell $7,000,bonds late this Fall. Underwriters
000 of first mortgage
—To
be
bidders*
determined
Halsey,
by competitive bidding. Probable
& Co. Inc.; Hemphill, Noyes,
Stuart
Graham, Parsons & Co. and Drexel & Co. (jointly); The
Kidder, Peabody & Co.; W. C. Langley & Co.; Union Securities Corp.; Equitable Securities
Corp.: Harriman Ripley & Co.; Lehman Brothers; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane.
First Boston Corp.;
.
Proceeds—For
new
construction.
Number 5040
Volume 174
v.
Financial Chronicle
The Commercial and
.
maturity.
Four
-
will
groups
(715)
DIVIDEND NOTICES
be
DIVIDEND NOTICES
31
DIVIDEND NOTICES
bidding for this issue.
will use the funds
The company
purchase common stock of cer¬
tain subsidiaries which, in turn,
SOUTHERN
to
apply the money to liquida¬
loans incurred in fi¬
will
tion of bank
nancing construction.
Preferreds
Convertible
Three
issue market vir¬
new
tually at a standstill the under¬
writing
fraternity
spent
the
eration
this week doing
than,, hoping for a
around
little
of
part
greater
more
period of stability in the seasoned
list.
Such
development, it was ob¬
a
which
volume of
pick-up in the
business after the
of
assurance
new
eight
The theory
is
if
that
the
might
to
serve
with
financing
slumbering
breath
to
grams
of
number
postponed
these
And
Merck
holders
will
•shares
pro¬
will be
next week by
broken
The South¬
California
Co.
slated
Edison
consider
to
bids,
and
years.
be
&
tember 14,
10,
in
the
each 30
ratio
of
October 25,
a
85()
big
o
dividend No.
share
per
The
hold
deals
period.
works
the
in
are
really
that
The Board of Directors of
CORP.
clared
Illinois
Co.
dividend of 12%
cents per share on the common stock
of the corporation, payable September
15, 1951, to stockholders of record at
the close of business on September 1,
a
regular
four
bids.
quarterly
part
and
(81V2?)
share
ROY
WILSON
W.
of
But
can
on
land Gas & Electric will open
The United States Leather
Company
'
„
right of holders of the Class A Stock
redemption to convert their shares
into Common Stock shall not cease and ter¬
minate until the close of business on September
for
1951 which is the fifteenth day prior tor
redemption date. The transfer books will
closed with respect to the transfer of
the Class A Stock from August 14, 1951
through September 17, 1951, inclusive. The
transfer books with respect to the transfer of
Class A Stock will be finally closed at the
close of business on September 17, 1951.
You may present your stock for redemption
46
Wall
of Incorporation
M.
STICKLER, Clerk
COMMON DIVIDEND
Broadway, New York 5, N. Y.
Secretary
A dividend of 15 cents per share
August 17,1951
has been declared
a
20,
share has
on
the Com¬
Stock, payable September
1951, to stockholders of
mon
record
the close of business
at
September 4, 1951. The trans¬
fer books will
not
be closed.
OSCAR SOLBERG,
August 31, 1951.
Treasurer
August 21, 1951
'
Directors has declared a quar¬
dividend of twenty-five cents (25c)
and an extra dividend of thirty(35c) per share, less 2.80 per cent
Wisconsin
privilege dividend tax, on the
capital stock (without par value) of the
Corporation, payable September J5, 1951, to
stockholders of record August 31, 1951.
At
The Beard ol
L. G.
meeting of Directors held August
a
the
iiay
same
Coupon No. 211 must be used for div¬
idend on the Ordinary Stock and Coupon
No. 96 must be used for dividend on the
All transfers
5% Preference Stock.
ceived
mon
tion
share
Stock of this
was
Sept.
14,
Corpora¬
declared
1951
holders of record
fore
stock¬
of
and
credit
the
United
Kingdom,
Section
131
by
application
to
all
the
above
a
Guaranty
Trust
mentioned
ord
the
at
1951.
close
of
<
BULLWINKLE
August 17, 1951
(
1951, to shareholders of rec¬
close of business on August 30.
Checks will
be mailed.
UNITED
Charles E. Beachley,
9
Secretary-Treasurer
GAS
CORPORATION
August 20,1951.
BHREVEPORT,
LOUISIANA
Dividend Notice
The Board of Directors has this
The
dividends.
declared
Singer Manufacturing
Company
Board
of Directors
has
declared
a
quar¬
terly dividend of sixty cents per share pavabie
September 14, 1951 to stockholders of record
at the close of business on August 24, 1951.
on
COMPANY, LIMITED
August 14, 1951
p!!!ll'!!lfl!lll'!M
meeting held today, declared a quarterly
of 75 cents per share on the Com¬
Stock
of
the
Company, payable on
The
TOBACCO
RICHARD
COMPANY
the
Code
BRITISH-AMERICAN
Merita's NSiciqar
a
Company of New York obtain certifi¬
cates
giving particulars of rates of
United Kingdom Income Tax appropriate
to
the
Secretary
COAL
/
Revenue
=E
can
to
of
at
September 12,
may
Internal
payable
to stockhold¬
August 31, 1951.
CONSOLIDATION
mon
be entitled by
of the Double
between the United
under
States
the Common Stock
record
PITTSBURGH
XIII(l)
Treaty
of
on
on
dividend of 42 cents
on
Company,
business
dividends to transferees.
who
the
ers
The Board of Directors of
at
of Article
a
share
per
NOTICE
of Directors today
October 1, 1951
dividend
Stockholders
Board
declared
GUS MRKV1CKA, Treasurer
N. Y., August 21, 1951.
of
for
States
PHILLIES
New York,
be¬
Taxation
THEASUREB
pay
DIVIDEND
The
able September 14, 1951 to stockholders of rec¬
ord at the close of business August 31, 1951.
or
virtue
1951. Checks will be mailed.
Philadelphia, Pa.
Aug. 17, 1951
August 21, 1951, a dividend of One Dollar
($1.00) per share was declared on the Capital
of Newmont Mining Corporation, pay¬
On
before August
or
received in London
payment of
Aug. 30,
to
02
Stock
October 5, 1951 will be in time
transfers
payable
to
on
Dividend No.
October 31,
1951 half-yearly dividend of 3% (less
tax) on the 6% Preference Stock. All
decided
Also
the Com¬
on
London
in
COMPANY
Corporation
re¬
28, 1951 will be in time for payment
dividends to transferees.
A dividend of twenty cents
per
UTILITIES
Ne win out Mining
.ending September 30, 1951 on the issued
Ordinary Stock of the Company, free of
United Kingdom Income Tax.
REGNER, Secretary.
Also decided to pay on
(20c)
ROBERT C. SULLIVAN, Secretary
14, 1951 in London it was decided to
pay on September 29, 1951 Interim Div¬
idend of One Shilling for each One
Pound of Ordinary Stock for the year
half-yearly dividend of 2%% (less tax)
on issued 5%
Preference Stock.
By order of the Board of Directors,
I.
be
not
closed.
COMPANY, LIMITED
United
Street, New York, N. Y., on October 2,
1951, and thereafter, subject to the provisions
the close
The transfer books will
CORPORATION
1 20
1951.
TOBACCO
BRITISH-AMERICAN
DIVIDEND
tax
of the Company's Certificate
and New Jersey law.
'
at
September 20,1951.
of record at the close of business on
17,
Company,
payable
CORPORATION
the
Trust
of business
by Kennecott
Copper Corporation, payable on
September 29, 1951, to stockholders
not be
Hunkers
holders of record
today been declared
hereby notified that the Company
will redeem all of its Class A Convertible Pre¬
ferred Stock outstanding on the books of the
Company.
clared
Twenty-five Cents ($1.25)
are
The
quarterly dividend of 58.75
per share has been de-„
on the 4.70%
Preferred
Stock (|50 Par Value), pay¬
able October 1, 1951, to stock- •
cents
KENNECOTT COPPER
BRICGS & STRATTON
August 14, 1951
redemption date, or prior thereto, if and when
the Company shall deposit the redemption
price for all such stock to be redeemed with
Bankers Trust Company pursuant to the pro¬
visions of the Certificate of Incorporation of
A
A cash distribution of One Dollar and
August 21, 1951,
Company on October 2, 1951 (redemption
date), by the payment in cash for each share
of such stock to be so redeemed of an amount
consisting of Fifty Dollars
($50.00). All
rights of the holders of such stock as stock¬
holders of the Company, except the right to
receive the redemption price upon surrender
of the certificates for the stock so redeemed,
shall cease and terminate from and after the
J. OSBORN
Exec. Vice Pres. & Sec'y.
1951
New York. August 21,
To the Holders of
Class A Convertible Preferred Stock:
called
,
Common
R. S. KYLE,
Spruce Street, New York ;
'
the
of
Company,
the
of business September 4,
per share
five cents
FINANCIAL NOTICE
.
shares
of
fBRlCGS&STRATTON)
terly
27
HERVEY
1951. to the holders
of such stock of record at the close
bids
of sinking fund col¬
lateral trust bonds, with a 20-year
PREFERRED DIVIDEND
'
September 28,
18, the New Eng¬
Sept.
DUBUQUE, IOWA
Company will not be closed.
repay
to
September 14, 1951.
de¬
dividend of one
quarterly
a
Stock
put
incurred
on
The stock transfer books of the
Cyanamid Company today
clared
ready
Proceeds
will
loans
bank
business
COMPANY
The Board of Directors of Ameri¬
for $6,115,000
You
per
POWER
holders of record at the close of
dollar ($1.00) per share on the out¬
construction.
finance
Treasurer
INTERSTATE
common dividend
President
first
market
and
hale,
CENTS
dividend of FIFTY
ZJ,! J.M.!. I1II J, I .M.M 4.1 .'.l.'.EU!
groups
funds
general
will
the
on
banking
submit
bolster
5
Ameri¬
1951.
30-year
new
bonds
mortgage
with
Sept.
on
of
$12,000,000
p.C.
August 17,1951
capital stock of this Company,
today de¬
dividend
of
quarterly
a
eighty-seven
standing
Electric
to
mailed from the Company's
office in Los Angeles, Septem¬
payable October 1,1951, to stock¬
one-half cents
on
the out¬
standing shares of the Company's
3Vfe % Cumulative Preferred Stock,
Series
A
and Series
B, payable
October
to "ttte "holders of
such stock of record at the close
of business September 4, 1951.
The Board of Directors has declared
Ohio
Southern
are
share has been declared on the
a
Cyanamid Company
can
pects.
&
dividends
stockholders of record Septem¬
ber 5, 1951. Checks will be
International Salt
CASTINGS
ALUMINUM
field, judging from present pxins¬
Columbus
above
payable September 30, 1951,
ber 30, 1931.
AMERICAN
issue
new
Orig¬
Series.
a
preferred dividend
ADVANCE
the
be
on
DIVIDEND NO. 149
before toners
in the
develop
small
for
will
probably
It
middle of September
the
at
re¬
J. EGER, Secretary
share
share
Stock;
per
Septem¬
on
The
GERARD
which
two
stockholders of
company
Chicago,
although
cents
27 cents per share on Cumu¬
lative Preferred Stock, 4.32%
ber 15, 1951.
DIVIDEND NOTICES
in funds to
much- promise
too
moment
50
inal Preferred
(50j£)
stock payable
common
cord at the close of business
COPELAND, Secretary
is
After Labor Day
^
;
post-holiday week, does not
:v
the
on
of fifty cents
146
October 15,1951, to
(seeking
of business
piece
of the
following quarterly dividends:
Company have declared quarterly
er
share on the Com¬
mon
Stock as the third interim dividend
for 1951, payable September 14,
1951,
to stockholders of record at the close of
business on August 27, 1951.
1951; also
SERIES
authorized the payment
The Directors of International Harvest¬
1951, to stockholders of rec¬
business on October
close of
the
at
10,
COMPANY
be
169
The Board of Directors has
COMPANY
rivivivi
struction program.
at
HARVESTER
on
three-for-one split.
provide for its extensive new con¬
the
this
quarterly dividends of $1.1 2i/i
the Preferred Stock — $4.50
Series and 87V2(J a share on the
Pre¬
ferred Stock—$3.50 Series, both payable
share
a
Tues¬
on
NO.
DIVIDEND NO. 18
day regular
■
will
groups
will put the company
to
has declared
Directors
Board of
The
of¬
after
Secretary
INTERNATIONAL
20, 1951
common
held
common
Company
1951.
4.32%
second
one
California
Edison
■
ORIGINAL PREFERRED STOCK
of which 244,500
be offered to
Southern
COMPANY
Wilmington, Delaware, August
275,000
convertible
new
com-
payable
CUMULATIVE PREFERRED STOCK
of
on
the
DIVIDEND
Co., Inc., share¬
Sept.
on
Company,
H, B. Pierce,
E.I. DU PONT DE NEMOURS &
hiberna¬
authorize
declared
the
DIVIDENDS
ord
vote,
quarterly dividend of
a
was
of
stock
mon
A
£
;•
Four
this
*
day,
share
per
Treasurer.
1951.
16,
August
this
25^
SIMPSON,
for its $30,000,000 of first
refunding bonds, due in 25
day,
1
Y.,
meeting of the Board of Directors,
a
held
the
lic utility bond issues.
'•?
of
proposed
opening of bids for two new pub¬
ern
A.
L. DU P.
for
monotony
summer
N.
At
dividend.
September 29, 1951, to stockholders of
record at the close of business Sep¬
Inc.,
rjhares
will
which
to
shares will
Next Week
Issues
tail-end
Batteries,
65,000
preferred stock
holders
Two
York,
a
jects.
The
New
preferred, convertible
common,
proposal
pro¬
life into
new
J.
tion is completed.
it
this
of
payment
COMMON DIVIDEND No. 301
preferred for each
held.
fered when the period of
people
encourage
one
common
registered
into
August 15, 1951
T*'
^
op¬
Spencer Chemical Co.
will offer to stockholders,
cumulative
behind this thinking
market develops a
measurable degree of constancy
"standby"
a
Gould-National
has
QUARTERLY DIVIDEND of One Dollar and
Twenty-live Cents
($1.25)
per
share on
the
Stock of this Companv has been de¬
clared payable at
the Treasurer's Oftice, Nr.
105 Broadway, New York 6, N. Y.t on Monday,
September 11, 1951, to stockholders of record at
three o'clock P. M., cn Monday, August 21, 1951.
The stock transfer books will not be closed for
for
the rate of
a
approaching summer-end holiday.
do
Aug. 27, 125,000 shares of
cumulative preferred, $50 par, at
served, would provide the great¬
est
will
Bankers
Packing Company
marketing.
for
preparation
The Garlock
135
Common
preferred stock issues in
vertible
With the
con¬
NO.
A
the
have
companies
PACIFIC COMPANY
DIVIDEND
D.
August
15,
1951.
H.
ALEXANDER,
a
date
dividend of twenty-five cents
share on the Common Stock
of the Corporation, payable October 1,
1951, to stockholders of record at the
close of business on September 10,
(25<f)
per
1951.
J. H. Miracle
Secretary.
August 20, 1951
Secretary
32
The Commercial and Financial Chronicle
(716)
BUSINESS BUZZ
..
Thursday, August 23, 1951
.
modity
exchanges, to
dies
domestic farm
on
pay subsi¬
commodi¬
ties, and to exercise several other
if less significant powers.
on.
•
•
\
(This column is intended to* re¬
flect the "behind the scene" inter¬
Behind-the-Scene Interpretations
from the Nation's
WASHINGTON, D. C.
oily
like
the
Act
Production
Defense
surface of news
from this capital city, it is seldom
appreciated what a great propor¬
tion of this capital's energy is ex¬
pended in drives by agencies to
wrest power, to wrest it by act of
Congress or by Executive order,
to wrest powers from the people,
or to swipe powers and functions
from other agencies. Or, the drives
for power are to maintain the op¬
eration of many allegedly tempor¬
get to the
ever
acts which seldom turn out to
ary
foe temporary
One
in fact.. ;
of the
these drives, in this case to
tain
existing
control act.
an
sugar
power,
main¬
is the
the
1934
sugar was a
beet
cane
and
were
getting
of sugar
xnand
tion
producers
sugar
little
in relation to market de-
was
Stabiliza¬
headache.
a
tried
been
had
plans
and
failed.
Roosevelt
with
Then
S. sugar
producers who sell
continental
the
xnarket among
continental
The
market.
that
to
cane
U.
producers, for
and beet sugar
Instance, are allowed to supply (if
they can) 54 per cent of U. S.
continental consumption. Other
statutorily
fixed percentages of
provided for Cuba,
U. S. areas, the Phil¬
the market
off-shore
ippines,
are
foreign
other
and
pro¬
ducers.
become
then
These
whole
The
dustry.
growers may
for
quotas
segments of the in¬
broad
continental
beet
market only so many
tons, the cane producers so many
tons, Cuba so many tons, and so
on.
' v, v
This
is
scheme
necessary,
by means of marketing
■quotas. If there is a large carry¬
over of sugar, the Department ©f
Agriculture
how
many
fouy
(and
may
mill
tell each
beets it
may
up)
and
of
tons
comparable with such state con¬
as
the British Socialists ex¬
trols
hence
chew
extension
act
called
a
marketing
be¬
N.
the last few years,
became reconciled to
abandonment of the free enter¬
until
principle
long
that
to
allowed
all
sell all
take it from
N.
some
else. '
one
Utilities
changed. Chairman
D. Cooley (D., N. Car.) re¬
Harold
reports
Radio
"I
figured as long as he's in that position most of the
time, we might as well get a plug out of it!" !
relatively speaking, with
wisdom.
It
is claimed
that
while
the prices of all
foods rose 143 per
cent from 1933 to 1950, the price
of sugar rose only 84 per cent. On
the other hand,
the receipts of
domestic
growers,
for
greater
from $133
instance, expanded
percentage basis, or
millions
in
1933
and beet,
cane
to
millions
$432
ample evidence that refiners
doing
well.
whilst
are
Department,
The
allowing much
higher re¬
loans
farmers
to
banks for purchase
idea
was
to
by
These loans may be made for any
intermediate term production pur¬
tenants
help
Farm-FHA
The
made
of farms. The
to be¬
was.
law to insure loans
exclusively for
little-noticed
a
has
House
single
adopted,
change,
without
It is
broaden this "FHA."
a
bill
Senate
a
the
action
to
plicated story, but the restrictions
against going into
a
the
waiver
of
loan,
whilst
mum
term
this
In
limiting
to
7
the" maxi¬
general farm
financing
has
nevertheless kept the rise of sugar
together reasonable to expect that
with the Federal Land banks, In¬
termediate Credit banks, and Pro¬
prices
the
to
(by
growers,
enlarging
repeatedly
supply) from rising with the
Debate
bill
the
on
passed
the
by
House,
tion,
The
dropped
it
less
of
price
of
But
sugar
these
has
growers
not crying.
is
a
government
four
to
loan.
"FHA"
insures
However,
since
40-year
a
no
bank
heartily enthusiastic about
cent,
sured,
40
loan,
year
"FHA"
contract
even
enters into
with
the
is
3
per
if
in¬
a
original lender
This bit of hocus pocus enables
the
partisans to sell Congress the
idea government money
complete blanket, ing
regimented
"sta¬
loaned
growing
whilst
back-log
duction
Credit
on
advantageous terms than
is not be¬
building up a
dis¬
of heavy
eventually
more
associations,
5
which
is,
as
it is called, a "con¬
He must pay
An
ditional payment."
tered
minimum wages prescribed by the
not
Department of Agriculture to the
Jhelp he hires. He must employ
child labor. If there
are
marketing
quotas in force, he loses his
ment
if
he
sells
no
more
pay¬
than
his
marketing quota.
The
ages
U.
S.
of
the
fixed
total
percent¬
estimated
consumption. Within
some
limits^ the Secretary of Agricul¬
ture may raise and lower the "es¬
timated
consumption."
By this
process
he
automatically
raises
and lowers the absolute supply of
augar
which
may
practically at the
little
of
farmers, and the maximum line of
badly-bat¬
bureaucracy that has
only hung
on
discredited
was
a
uphill fight has
for
years
but
won
its
in
a
way
after
credit to
one
if
is
there
be
sold,
but
same time alters
the business volume of
every mill
and refiner, or the legal right of
any. and all prpducers to sell.,,,
borrower of $10,000,
more
than
one
loan.
Street, New York 17,
latter three
are
part of the Farm Credit Ad¬
ministration,
groups.
part
a
of
(Special to The Financial Chronicle)
lese
and
Mary C. Cook
with Edward
are
now
Mathews Co., 53
E.
State Street.
All three
the
Wesley T. Bonn
De¬
Wesley T. Bonn, head of W. T.
partment of Agriculture as well.
In the attention given
-
Bonn
&
Co., New York City,
to paring passed away at the age of 52.
down the Administration's powers
to
control
prices,
of the
part
as
Production
Defense
new
Act,
to
expand
other
vastly
bureaucratic
and
Large Appreciation Potential
: WE SUGGEST
broadly
extensions
loans, to
tem
of
control
establish
licensing
credit
a
all
used
business,
the
f
;
of
RIVERSIDE CEMENT CO.
'
CLASS B (common) STOCK
A
leading
In
;;
"i'
producer of cement
fast-growing
California.
Southern-
i
\
'■
'W'.
'
Analysis of this Company and
a
review of the Cement Indus¬
try
available
on
request.
Selling about $14.00
LERNER & CO.
federal sys¬
on
For
:■
comparatively little attention was
given to the refusal of Congress
Investment
to
Securities
10 Post Office Square, Boston 9, Mast*
corn-
Tel. HUbbard 2-1990
long
back
is the Farmers Home Administra¬
tion of the
ture..
'
Department of Agricul¬
t'[r '
•
Allied Electric Products
■
This
statutorily
are
it
illustration
Taxes—$5.00
1951
BOSTON, Mass.—Robert S. Ca-
•
■
44th
Two With E. E. Mathews
will powers proposed by the President.
of the. total
beet or cane bility" over the sugar business. bursements that
descend upon the Treasury, like
gets
a
marketing quota. Sugar is taxed Everybody
profit,
and?
Thus
Congress
stripped
the
Social Security and so much else
O.50 cents a pound, raw value, 0,53
everybody
President - of
guilds as happy as £11,
proposed
broad
both
the
"New"
and
"Fair
cents a pound, refined. This builds Englishman reconciled to his regi¬ of
powers to condemn and take over
Deals."
even
if
Kip a kitty.
Out of this kitty a mentation,
practically
private
property,
to
secretly
Furthermore,
this
same
bill
grower is paid a subsidy of 80 there, can be no newcomers ill
authorize particular companies to
cents per 100 pounds he produces the sugar refining business or no authorized
"FHA"
to
raise
to stockpile and "hoard" scarce ma¬
<or 30 cents per 100 pounds if a area no matter how efficient can
$7,000 from $3,500, the limit on the terials, to establish government
toig plantation producing 30,000 expand beyond its "proportionate
amount
of
direct
government owned corporations at will,
to
share."
tons or more a year).
money
which
can
be
loaned to make unlimited totals of defense
Each farmer gets his payment
fotim
New
on
East
New York.
and
the
firm
a
to take back the loan after 7 years.
profitable than sub¬
crops.
So there
of
produc¬
beets, has
because the rela¬
back
lower
stitute
are
domestic
particularly
This
to
mostly of praise of the
program.
two
be vitiated.
continue the act from 1952 to 1956,
consisted
of
course
remaining restrictions will
years,
extension
latest
the
in
general farm price level.
tary
—Dept. CF-5, Value Line Survey,
firmly into the private
of mortgages and pro¬
duction, but also puts the "FHA"
more
directly into
competition
sugar
special
more
lending business were
substantially reduced and it is al¬
on
with
.
years.
mortgage
turns
reports
and
account report, two fort¬
nightly letters and - four weekly
supplements, plus 48-page edition
on
Electrical Equipment,
Radio
and Utility Stocks and Commen¬
legisla¬
tion, despite its significance get¬
ting practically no newspaper at¬
ment
and 45 Food
vised
repay¬
the "FHA"
case
15 Electric Equipment,
Television; 44 Chemi¬
situations recommendation, super¬
tention, not only puts the govern¬
com¬
a
authorized
ratings
legislation
same
ratings
new
Stocks—special introductory offer
including four weekly editions of
ments for the first two years of a
required by
tenants who wanted to buy.
In
the
and
pose,
"owners" via. 40-year loans.
come
on a
1950. The stock market affords
in
sure"
are
ture ahd Insurance;
the
program,
stocks
undervalued
cal, Drug, Liquor; 37 Motion Pic¬
Perhaps the Department of Ag¬
administered
on
and
17
opportunities still
available
—also
days of hearing on the latest ex¬
tension, not one witness appeared
against the program.
has
C
New analyses of
—
in
available
ported to the House, that in seven
riculture
agricultural-FHA is liter¬
ally the bureaucratic descendant
of
Rex
Tugwell's
i,
"Resettlement
.
;
SECURITIES
flARL MARKS & C.O, INC.
and for years reduced it to
keeping a staff alive doling out
only $25 to $50 millions—mere
pocket change in these times.
ence,
Yet
FIRM TRADING MARKETS
i
'
Beneficial Corporation
Kingwood Oil
model
cooperative com¬
munities, without exception flops,
got it almost hooted out of exist¬
up
v:
FOREIGN
Administration." RA's attempts to
set
in
1946
FHA—which
■
W. L. Maxson
5Q BROAD STREET..,NEW YORK 4, N. Y.
Hill, Thompson A Co., Inc.
Trading Department
70 WALL
i
;
FOREIGN SECURITIES SPECIALISTS
TEL HANOVER 2-0050...TELETYPE: NY 1-971
RA
came to be by a series of reorgani¬
zations got itself—power to "in-
■
New York 17,
'
Y.—paper.
utilities showing
is
all
Now
Park Avenue,
247
area's only hope of
to
•-
ing Foreign Trade—National In¬
dustrial Conference Board, Inc.,
marketing, each
expanding was
to production and
i
President's Committee for Financ¬
So
there was an overall limit
as
Y.—paper—$5.00.
vestment—Report prepared for the
they
could.
they
Your
Angas—
Obstacles to Direct Foreign In¬
should
they
produce
B.
L.
;
never
prise
be
L.
Major L. L. B. Angas, Inc., 576
Lexington Avenue, New . York,
They
another basically
one
cause,
quota,
"proportionate share" for
expire.
to
about
was
fought
Picket—Major
Jones-Costigan
the
of
Dollar, War Finance and
temporary"
successive
each
as
made
a
fought and scratched
against one another
areas
lobbied
and
the year it may sell (and
Thence refine) of refined sugar.
Each farmer can be given what
to
the great sugar pro¬
Originally
ducing
tively
amounts
as
meat.
■each refiner how many tons dur¬
ing
commodities
such
in
ercise
if
enforced,
in
commodity
major
the U. S. The control is in degree
the
came
•fones-Costigan Sugar Act of 1934.
This act and its successors divide
mp
controlled
All
incomes.
the world the excess supply
over
completely
could and
great surplus of
pain to all. Cuba was
economically prostrate, and the
In
becomes probably
government
sugar
most
the
they
interesting of
more
Thus
Since
—
And You
Capital
comparatively few issues
a
pretation from the nation's Capital
and may or may not coincide u(?ith
the "Chronicle's" own views.)
■
STREET, N. Y. 5
Tel. WHitehaH 4-4S40
*,
@FedFRASER