Full text of Commercial and Financial Chronicle : August 27, 1953, Vol. 178, No. 5250

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UNIVERSITY
OF MICHIGAN

ESTABLISHED 1839

AUG 27 19

Commercial
Financial
MSIHBS AOHINISTBATIOH
IIBUW

Reg. U. B. Pat. Office

Volume 178

Number 5250

New York 7,

N. Y., Thursday, August 27, 1953

Price 40 Cents

Copy

a

EDITORIAL

"II the Cold War

We See It

As

member

late
in

last

week

which

he

sent

made

letter

a

the

Head of prominent machinery concern maintains, If Cold
War Stops, the breach created by reduction of govern¬

each

to

ment

following ob¬

"The mission of this
group is one of the most
before our country, because our
foreign
economic policy has great
our

friends abroad

rection

as

I

of

production

building throughout the free world of a
strong and self-supporting economic system that

will

account,

provide both for defense and for improved
of living requires the sound
enlarge¬

As

own

fense

deepen the: channels of
free nations." ~

is

it

to

in

very

real

54

it

talked

think

to

50%

a

•

history of

our

of

unanimity

regards the business out¬
look is rare, it is not unprecedented.
We have to go back only to the
as

Spring of 1946 to find a time when
there
were" hardly any
dissenting
votes as to the prospect for recordbreaking peacetime activity for at
least the following one or two years.
Many

large.

made the mistake,

people

in

of that old

early 1946, of concluding that the
majority of stocks were a purchase
at that time merely because the out¬

like green

look for business

The whole inquiry has, of course, some of the elements

question: "If I had a little sister, would she
apples?" There are many unknowns and im¬
ponderables.
The permutations and combinations are
many. We haven't any well-defined premises.
Exactly

Continued

We

prefer to think that the President does
mean to
imply that the building of such an

on

page

not

help

group

20

tical

but

was

We

good.

wonder

if

this

is not repeating what

error

the

in

opposite

may

NOW

IN

an

REGISTRATION

—

Underwriters,

dealers

and

Anthony

Gaubis

be basically the iden¬

direction

by

assuming

Continued

Aug. J&2, 1953.

SECURITIES

can¬

same

that

stock prices will decline during the period immediately

address by Mr. Ramsey before the Alumni Convention
of the Columbia University School of Engineering, Litchfield, Conn.,
♦From

20

I

..

•

Although virtual
opinion

Many of the experts I
be

■

recent issue of "Business Week" sums

a

country.

was.$39 billion. Jn 1953T
$43 billion.' It' :is now

would

•

■

.

dicted recession in the

we

In 1951-52 the nation

decline

'

-

the current business picture with the statement:
"Everybody Expects A Recession." Since this is quite
true, it means that we are either already in, or are
about to see, the most widely pre¬

that

prompt end to the Cold War?

have

•

up

$34 billion "will be
spent in 1954-55.
What change in
those figures should we expect from

Hobart C. Ramsey

a

•

A headline in

industry in America.
big will that industry be?

will - be

out

material and retail groups.
V

indus¬

sense

pointing

us

world

a

substantial

a

a

.1 don't know.

of any

page

be

to

In 1952-53 it

of the most difficult

on

to

United

new

a

anticipated

Continued

the

spent about $20 billion for defense.

nations."

not

seems

assume

I think in

How

problems of modern
other times, for that matter.
"The building throughout the free world of a
strong and self-supporting economic system that
can
provide both for defense and for improved
standards of living" does indeed require "the
sound
enlargement of commerce between
some

fact, it

which

industry in this country which

have

much warrant that it likewise had before

times—or

has

certain

try.

entirely" right in
believing that this body has before^it some of
the most vital problems not only of this country
but of the whole world. He might have added
as

of

where it is the strongest nation, have
created a need for a long-term de¬

economic intercourse among the
The President is, of course,

with

matter

a

States

-

living in the world, and we must play our part
in aiding that effort. We must search
diligently
for ways to widen and

cor¬

that world conditions and the heavy

responsibility

their

severe

is

I

between nations.

"Free nations must find ways to earn

no

Gaubis,

possibility that investing
public is again embracing fallacy that stock prices fol¬
low business activity, offers reasons supporting the
present as affording attractive buying areas for a
majority of stocks: (1) their fall to 1946 levels despite
intervening decline in dollar's purchasing power and
tremendous increase in corporate assets; (2) substantial
declines from recent peaks, and (3) low level of prices
related to demonstrated earning power.
Stresses rela¬
tively favorable position of currently unpopular building

start

standards

commerce

Contends

trend

Counselor

I

Mr.

off by saying that,
taking all things into
believe that "If the Cold War Stops," the
breach created nationally by a reduction of
government
orders may be far smaller than is sometimes
supposed.

"The

ment of

Investment

Does

imminent, since other
forces besides government purchases will come into play
promptly. Points to need for large scale public works.

well.

can

be far smaller than is feared.

pected in foreseeable future.

meaning, not only for

people, but for

may

look for early liquidation of our defense industry, and
holds substantial defense expenditures may be ex¬

vital

own

purchases

By ANTHONY GAUBIS

not

servations:

bur

The Stock Maiket

President, The Worthington Corporation

Having selected and appointed all members to
the foreign Economic
Policy Commission, the
President

A Cheerful View of

Stops!"

By HOBART C. RAMSEY*

investors

in

on

page

22

cor¬

picture of issues now registered with the SEC
"Securities in Registration" Section, starting on page 30.

porate securities are afforded a complete
and potential

undertakings in our

State and
ro

U. S. Government,
State and

Municipal

Securities

Bankers

to

the

Government

HAnover 2-3700

Head

COMPANY
BOND DEPARTMENT

•

26, Bishopsgate,
London, E. C. 2

in

India,

Pakistan,

Direct Private Wires
Coast to Coast

Ceylon,

Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

BANK & TRUST

Protectorate.

Authorised Capital

£4,562,500
£2,281,250
£3,675,000

Capital

Paid-up
Reserve

Fund

The Bank conducts every

banking

and

Bond Department

THE NATIONAL CITY BANK
OF NEW YORK

business.

Bond

Dept. Teletype: NY 1-708

Active

Net
To

on

Requett

50

NEW

BROADWAY
YORK

4, N.

Members N. Y. Stock

Members

Exchange

Tele. NY 1-733




CHASE

Spokane

10 other Western

NATIONAL
OP THE

BANK

CITY OF NEW YORK

Cities

Maintained

and

Brokers

CANADIAN
BONDS & STOCKS

Scranton

Spring

Brook Water Co.
COMMON

WIRES TO

MEMBERS

NEW

upon

request

DEPARTMENT

CANADIAN

Y 1-2270-X

MONTREAL AND TORONTO

Goodbody & Co.
Established 1832

Tel. DIgby 4-7800

Denver

Salt Lake City

Orders Executed On All

Teletype N
DIRECT

American Stock Exchange

New York 4

NEW YORK CITY

Analysis

Y.

York Stock Exchange

30 Broad St.

50 BROADWAY •

and

THE

1915

Principal Exchanges

Canadian Exchanges at Regular Rates

Hardy & Co.
Members New

Banks

Frobisher, Ltd.
Commission

Circular

Markets

Dealers,

T.L.Watson & Co.

Common Stock

ESTABLISHED

Los Angeles

also undertaken

Alleghany

J. A. H0GIE & CO.
Members of All

description of

exchange

Trusteeships and Executorships

Corporation

Bonds

securities

in

Office:

Branches

Chemical

Municipal

oil & mining

of INDIA. LIMITED
Kenya Colony and Uganda

telephone:

western

NATIONAL BANK

YORK

STOCK

EXCHANGE

115 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

CHICAGO

Pomcuox Securities
©rporatiott

IRA HAUPT&CO.
Members

New York t>, N.Y,

111

Broadway,

WOrth 4-6000

Teletype NY 1-702-3

WHltehall 4-8161

Boston

York Stock Exchange
Principal Exchanges

New

and other

40 Exchange Place,

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

«yi t.»

The Commercial and
2

Financial Chronicle

Thursday?, August '27, 1953

...

(718)

The

and

WE POSITION

Security I Like Best

IN

TRADE

A continuous forum in which, each week,
Colorado Interstate Gas

participate and give their

East Tennessee Natural Gas

,

they to be regarded,

are

Gulf Interstate Gas
Notes & Common

Iowa Electric Light

& Power

as an

LIABILITIES

President, Wilson and Marx, Inc.,
New York

At this time

3'/2% 1933

Republic Natural Gas

attention

rect

Southern Production

York

New

the

to

RR.

River

Hudson

&

Central

stock

1920

RR.

$1,-

per

take

4 %

is

balance

condensed

a

of Dec.

Co.

the 1,500

sult of

letting the

influence

in

Government

S.

million in

cur¬

all this in addition to

Central could

on

its
the

own.

equipment

Road,

and

property

ciation

and

defense
S.

U.

McpONNELL&rO.
Members

S.

Central, which

current

1,025,000

——

series

"C"

Exchange

5,429,428
1,502

affi.iated

in

leased the M. C.

All, the above facts lead me to

said in December,

1952, that I think this is the best
New

the

in

bond

com¬

30,659,912

panies

NEW YORK 5

$144,836,399

Total

Tel. REctor 2-7815

in 1930 when they

repeat what I
5,000,000

assets—

assets

Investments

and

stock

agreed to pay $50 a share annually

lW 8/15/53
Other

the

of

of

series

notes
,

Certificates

A.

miscel¬
depre¬

$102,720,557

Treasury

V/2%

Deferred

Exchange

less

amortization

projects

A.

"A"

Central

York

system, which is having a banner

in 1953.

year

,

Natural Gas Transmission Stocks

.

American Furniture

The stock market reveals

graph¬
ically the general investment phi¬
losophy of the day. Excluding the

Bassett Furniture Industries

Camp Manufacturing

usual

number

who

Commonwealth Natural Gas

aim

of

sharpshooters

the

at

t i

s"

o n

on

whole,

have

developed

STRADER,TAYLOR & CO., Inc.
TWX LY 77

billion

at-

re¬

and

steady

for

for

i

n

STOCK and BOKO HOUSES
"Security Dealers of North America"
book

containing
7,900
listings covering all United States and
Canadian
cities.
Listings are arranged
geographically
and
alphabetically, and
are
comprehensively detailed:
is

con¬

and date established

u s

trials
Patrick J. Rafferty

utility

eauities

bears

offered

we

find

placed

in

addition

to

compensating

on

income,
premiums

market values and, ac¬

cordingly, current yields
so
an

It

generous.

investor

current

can

return

Asso¬
in¬

in

$5.6

billion
period,

1952-56

pipelines would account
This

carriers

more

means

have

to

mileage to their

that
add
pres¬

ent systems.

several weeks
decision of the
present Federal Power Commis¬
by

ago

sion.

follows

find

an

that

not
that if

are

is

attractive

regulated

companies

With

including

HERBERT D. SEIBERT &

25

Park Place

New

Post

Offici

CO., INC.

York

7,

count this growth factor.




rado

What About Growth?

The

claim

that

the

natural

Interstate

Gas

Company
(July 31, 1952), the FPC intro¬
duced a "cost-of-money" theory

N. Y.

REctor 2-9570
KX
JOE
5*3*

gas

Eisenhower

two

Yvmch

—

★

•

ap¬

pointees absent, the Commission
a two-to-one vote—approved
for United Fuel Gas, a subsidiary
of
Columbia
Gas - System,
a
rate increase that is calculated to

—by

in

result

return.

614%

a

of

abandonment

the

marks

This
the

Gordon Graves & Co.
30 Broad Street, New York

Telephone

"cost-of-money" theory under the

Administration
514

4

•

,

WHiteliall 3-2840

.

to keep

-

and 6%.

between

return

lively

market
demand
for
the group. Currently
yield
an
attractive

,

equities in
offered

5.6%,

to

we

been re¬
the pipe¬

resulted

Since 1932 Specialists in

•

Th's is reflected by

line industry.
a

has

future of

the

in

Fuel Gas de¬

United

the

confidence

Transmission

Texas

that

think

common

VIRGINIA—WEST VIRGINIA
NORTH and SOUTH

Gas

CAROLINA

is the more

timely and conservative purchase

MUNICIPAL BONDS

for the following reasons:

(1) Compared with earnings of

share for 1952, we are
a
58%
improvement
1953—in the vicinity of $1.80

$1.14
for

■F. W.-

per

estimating

Net income for the first
half of 1953 was $0.88,'compared

CRAIGIE&CO.
RICHMOND, VIRGINIA

share.

per

Bell System

of

the first six months
These earnings
ref ect

1952.

the recent granting of an
lion

rate

increase

by

$8.5 mil¬
the FPC

(Texas Gas had asked for $8.75
'million).
The
current
rate
of
earnings indicates that Texas Gas
Transmission common is selling
of

out

line

LAMB0RN & CO., Inc.
99

WALL
NEW

STREET

YORK

5, N. Y.

price-earnings
equities.

a

on

Teletype: RH 83 & 84

Telephone 3-9137

with $0.70 for

looking

Furthermore,

other

at

in

SUGAR

under

likely to
continue without paying a pre¬
District Numbers
panies. For common stocks of es¬
mium for potential growth, then
General Character of Business & Class
tablished
companies,
this
can
a
of Securities Handled
purchase under such conditions mean
only that the ab'lity to pay
Names of Partners or Officers.
falls into the category of "good
Names
dividends is assured by rate reg¬
of Department Heads
1
timing." This timing factor is an ulation.
Stock Exchange and Association Mem¬
essential ingredient for success¬
berships (including N.A.S.D.)
In 1953, prices for the "pipes"
ful investing.
Phone Numbers—Private Phone Connec¬
had dropped about 16% from 1952
tions—Wire Systems—Teletype Numbers—
We contend that certain natural
highs.
It is no secret 1hat the
Correspondents — Clearance Arrangements. gas
pipeline stocks are offered Federal Power
Commission's pol¬
An ALPHABETICAL ROSTER of all firms
presently at attractive yields and, icies on allowable rate of
return
showing city in which they are located is
although these companies have for the
another valuable feature.
pipeline companies had
ambitious
expansion
programs, become restrictive.
In the cases
Bound in durable limp fabrikoid—$12
current
prices
(for* reasons set of the Northern Natural Gas Com¬
ENTER YOUR ORDER TOD A Y
forth below) do not begin to dis¬
pany (June 10,1952) and the Colo¬
Address,

new

a

pipeline companies, the dividend
the
jurisdiction of the Federal payout of Texas Gas appears most
Power Commission, it
has been eligible for an increase.
established
(2) This company has been op¬
by
very
early
Su¬
preme
Court decisions that the erating for five years and, in tvat
rate
of return
should
be
suffi¬ period, it has tripled the capacity
its
cient to assure confidence in the of
pipeline delivery system
financial integrity of enterprises which reaches into three major
such as natural gas pipeFne com¬ gas supply areas and provides a
As

Bought—Sold—Quoted

basis with other pipeline

What About Dividend Income?

out this general market preference
for income. In cases where growth

is

firm name under which business

d

and

much

the

Re¬

that the gas

spend

billion.

wholesale

"blue chip"
OF

exnansion

$3

Gas

American

the

of which

defor

mand

in

invested

been

would

dustry

were

gave evi¬
to the continu¬

prices

occurred

prospects

the

has increased

consumer

has

cently,

The

c o m e.

con-

1946,

natural gas to the

ciation estimated

in-

of

Since

industry to accomplish this.

tractive
sources

This trend

unabated.

approximately 125% and over $2

re¬

liable

Lynchburg, Va.

of natural gas as a home

residential

a

healthy
for

spect

carry

total service of

the

vestors,

Life Insurance Co. of Va.

use

inues

in¬

—

is 'a

to

decisions

rate

dence of doubt as

Since

heating medium.

"special situa-

Dan River Mills

FPC

overdue,

long

cision,

true one—and pipe¬
this fuel set the
pace.
One of the most spectacu¬
lar
postwar
developments
has
been the tremendous growth
in
lines

Common Stock

pipeline equities have settled back
prices reflecting a straight in¬
come
basis.
In
some
instances,

stored

dustry

Company

Texas Gas Transmission

industry is the fastest growing in¬

Texas Gas Transmission and Other

Oil

to

previous

Boston, Mass.

Trading Interest In

market

pipeline common stocks.
Equity financing of future proj¬
ects
was
in
danger
of
being
shelved. For the past 12 months,

»■

v

Manager, Research Department,
F. L. Putnam & Co., Inc.,

Street

offices

Commonwealth

values of

this

ducted

branch

growth

the

of

removal

the

PATRICK J. RAFFERTY

page

our.

a

York

New

99.70%

owns

U.

1,400

to

share operating ity of the common dividend.
The turnabout in the industry's
However, it is leased

$100

over

earn

"cost-of-money"
rate decisions

leverage factors from

and

where

miles of railroad.

think Michigan

I

to

31, 1952:

laneous

A

wires

a

theory

ASSETS

Since 1917

DI RECTORY

Direct

utility, it actually pro¬
duced the opposite.
The net re¬

companies;

affiliated
in U.

million

rent assets,

sheet of Michigan Central RR.

Rights & Scrip

grade

$19,336,000

Here

as

LD 39

NY 1-1557

Orleans, La.-Birmingham, Ala,
Mobile, Ala.

the sound¬

in

confidence

of

ness

you

Let's

investment

securities and $5J/2

of the collateral
mortgage bonds outstanding.

Specialists in

i

St., New York 4, N. Y.

would assure fi-*

Arthur Marx

There

bonds.

Stock

Exchange

Exchange

Whereas

Colorado.

nancial

On the asset side

million

$30

$6

mort¬

gage

are

American

money" theory

$20 million and 187,364

over

high

with

dated

do

today?

cost

look at the figures: debt a

a

over

consoli¬

the

1X0 BROADWAY,

fair late of return for
and 534% as adequate

a

as

was

In

cured

What

1850.

shares of stock.

addi¬
tion they are
eq u a 11 y se¬
ing.

Exchange

Stock

Stock

Stock

the Com¬
that the "cost-of-

this state¬
based on
1,500 miles

about

would

if

little

outstand¬

000

of

around

built
think

Central

Teletype NY 1-583

York

to

railroad

a

Michigan

Broadway, New York 5

New

25 Broad

mission assumed

$600

over

These figures are

ment.

nine shares of

Associate Member

120

is

according

share

a

secured by

approximately

Corporation

BArclay 7-5660

5V2%

Northern

value

American

*

New York Hanseatic

Stock

Members

New

5,314.865
99,201.904

,

$144,836,399-

.

York

New

Members

HAnover 2-0700

„

book

Steiner, Rouse & Co.

(Page 2)

Mass.

ion

for

These bonds
are

I

American

477,494
5.185

Total

The

Rafferty,

J.

Patrick

—■

leased

Surplus

bonds of 1998.

Western Natural Gas

Established

Stocks

20,223,895

__—

depreciation

Quoted

Bought—Sold

Gas

Manager, Research Department,
F. L. Putnam & Co., Inc., Bos-

3V2%

gage

Taylor Oil & Gas

876.650

liabilities

properties

Michigan Central collateral mort-

Southern Union Gas

on

L

liabilities

Accrued

President, Wil¬
Inc., New York

Transmission Co. and
Other Natural Gas Transmission

819,613,056

Deferred

Louisiana Securities

City. (Page 3)
Texas
"

Current

Central

1

Mortgage 314s of 1998

Marx,

a^d

son

$18,736,400

———

Long-term debt

Hudson

—Arthur Marx,

,

.

assessments

stock

capital

would again di¬

I

„i

and

Premium

City

Mich. Cent. Coll. Mtge.

Light

stcck

Capital

Hudson River RR.

New York Central &

Pfd.

Pacific Power &

intended to be, nor
offer to sell the securities discussed.)

&

Michigan

RR.

Kver

-

Central

York

New

particular security.

a

not

are

MARX

ARTHUR

Metal & Thermit
Morris Plan,

for favoring

(The articles contained in this forum

Alabama &

Selections

a

Collateral

Eastern Utilities Assoc.

Units,

reasons

and

Participants

Their

different group of experts
the investment and advisory field from all sections of the country

in

Week's

This
l-orum

establishing

double

direct

kets

in

line

trunk

to

from

well

to

consumer

is

one

of the shortest, indicating that

the

line

will

cheaper and

—

^

Liquid

Exports—Imports—Futures

Dlgby 4-2727

Texas'

to supply a
competi'ive fuel
public utility cus¬

be

able

Over-the-Counter

Quotation Services
for 40 Years

more

41

tomers

than

lines

to

theirs.

sion

in

the

most

of

the

Industrial

market

areas

other
expan¬

served

National Quotation Bureau
Incorporated

spells further grbwth. The chemi¬
cal

Refined

mar¬

Delivery capacity is one of the
largest and yet the hauling dis¬

to

—

Louisiana, Arkansas, Mis¬

sissippi, Tennessee, Kentucky. Il¬
linois, Indiana and western Ohio

tance

*

Raw

industry, in particular, has de¬
several plants along the

veloped

Established 1913

46 Front Street
CHICAGO

Continued

on

page

15

New York 4, N. Y.
SAN FRANCISCO

Volume 178

Number 5250

The Commercial and Financial Chronicle

...

(719)

Looking Ahead a!

INDEX

llCHTfllSTEIIl

"

The Business Pattern

Articles and Newt

Editor "The Journal of Commerce," New York
City

View of the Stock

Market—Anthony Gaubis

"If the Cold War Stops!"—Hobart
i

Luedicke reviews forces behind

boom, and sees
plant expansion and high industrial activity leading to
overproduction. Says continued price pressure on commodities
tion

l,

"consumer

to.

other "cracks in the boom." Calls

are

spree

on

■...

♦

•
■

times

are

logical elements

velopments,
concerned,
than

business

less

The
have

*

eco¬

To

interme¬

We

of

of

sia's

...

the

from

in Korea.

not

the

Instead two additional

new

ele¬

ments have been

injected into the
picture recently: in both

business
countries

that today represent the

two

great

the

world

changes

antagonistic
there

in

forces

have

political

leadership:

party and the tumultuous fight for
political succession in Russia that
started

with

Stalin's

still is far from
When

^

remains

Russian

to

of

purpose

foster

world,

A.

11

Potter

I

had

death

point

of

Empire State Oil

The

chief

truce

and

aim

the

of

to

into

into

us

SEC Proposes Rule

Korean

Other

the

defense

program

the

on

domestic economy.
that

time

of

said

that

the

analysis of the business outlook in
defense

required

economy

As

business pattern

predicting

for the

actually

years

past

quite

was

14

Dividend Taxation

16

Transactions for Employees of

on

<$>

Stocks 36

Firms____

J. F.
61
BO

Reilly &Co.

Broadway, New York

9-5133

Teletype NY

as

downward

a

Direct

It

(Editorial)

Wire

everything

ago

around

the

Man's

Today

must

we

concern

both

have

not

and

will

Dan River Mills

8

that

it

the

Dealer-Broker

When

for

Helicopters, Inc.

8

Recommendations.

Empire State Oil

8

i__.

r

15

From Washington Ahead of the News—Carlisle
Bargeron_____

Johnston Oil and Gas Co.

*

Ultra

Indications of Current Business Activity

Sonic

selves, with

the interplay of eco¬
nomic, political and psychological

deliver

can

Mutual Funds

only
prom¬

NSTA

that moment comes—and

Russians,

let's

8

Bankers.

18

Our

Singer, Bean
& MACKIE, Inc.

5
*

Reporter's

Report

.___

HA 2-0270

Our Reporter

Prospective

Forces Behind

the Boom

1

Governments

on

40

from

here,

where

is

it

we

are

necessary

now

got there.
Since the Truman

and

tion—back in 1951—set sail for

'

'

/

'

15

r

J,—

26

to

GIVE
Securities

Salesman's

Corner

17

we

1 Moreover, two years ago the
defense program could proceed in

'

«

Securities

Railroad Securities

how

forces.

■

5

1-1825 & NY 1-1826

32

;•*—

'

.

Exchange PI., N. Y.

26

Offerings__l

Security

'

'

•

Public Utility

Before attempting to determine
where the economy is likely to
see

-

23

Observations—A. Wilfred May_-__--__

least,

at

___'_

Notes

News About Banks and

fool ourselves."

go

Corp.

27

Administration

come
it will—let us be on guard
against those among us who willargue in effect that: "If we can't

the

Investment

Einzig—"France's Crisis"

full

pressure

its tax relief

on

*

____^

•

ultimately

felt

yet

Eisenhower

Securities

from within.

political

moderately

re¬

our¬

Philadelphia

21

1_

Bookshelf.

Doman

ises.

defense-build¬

up.

to

Cover

Stocks

Coming Events in Investment Field_____

spiral for

sharper reduction in defense ex¬
penditures. That1 will come when

fool

See

Canadian

a

the

6

1-3370

16
V

Teletype NY
years

volved

on

13

re-kindling inflation here:

bad

We

We

Business

simple.
Two

Member

Bank and Insurance

from
their
point
of
view continued inflation is almost

new

techniques and new yardsticks.
Looking backward, it now is
obvious that the job of

Gulf Interstate Gas

Regular Features

—because,

finds

I

Delhi Oil

United

___L

t

they can't stampede

weaken the economy

Wisconsin here two years ago,
job was to assess the impact

of the

Stock Options

on

SEC Approves NASD's Rule

of¬

helter-skelter demobiliza¬

ad¬

University

View

C^ites Grrowth Quality of Drug Company

Richard Spitz Answers His Critics

Once the Russian leaders realize

1

the

"Inside

an

7

deflationary spiral.

a

that this time

public

at

on

4

fensive is to pull the rug out from
us and to throw our econ¬

omy

only

direction:

one

The truce

in

that

Korea,

was

up.

the other

on

Jiand, does not
now

on

*An

address

Graduate
the

School

$85

billion

annual

$65

billion

annual

defense

in

the

by

Dr.

Luedicke

Schoolfor-Bank

before
Officers

stretchouts
the

and

defense

program

gone a number, of

them

budget
has

'

of

The Market

load

over

Continued

and

.

TO

30

The

You—By Wallace Streete_____

Security I Like Best

13

CONQUER

:

The State of Trade and Industry.-

(

Washington and You_________

CANCER

2

i*.

under¬

5

—

program

designed to distribute

defense

.

a

load,

a

longer

:;,Column not
on

page

!

—

36

INVESTMENT IN

'

of

Banking, University of
Wisconsin, Madison, Wis., Aug. 26, 1953.

.__

i

an

changes—all of

nature

t

,

the
at

mean that from
defense program can

the

.

Securities Now in Registration

Administra¬

.

the

available

this

week.

CANADA

24
Canada
t

For many years we
n

have

,

PREFERRED STOCKS

«>

specialized in

Published

•

The
*

Twice

Weekly

1

FINANCIAL

Drapers'

Gardens,

Copyright

CHRONICLE

Reentered

WILLIAM

Spencer Trask & Co.
'

25 BROAD

New

York Stock

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300
Albany

Boston

•

Manchester, N. H.

Private

Wire

i

•

to

•

DANA

COMPANY,

D.

Publishers

Place, New York 7, N. Y.

REctor, 2-9570

WILLIAM

to 9576 •

DANA

Eng¬

by William B. Dana
Company

second-class

as

matter

-

1953

Pan-American

Union,

Canada,

of

$48.00

per

$51.00

year;

per

yon

Nashville

•

Glens Falls

•

Schenectady

•

Worcester

CROWELL, WEEDON & CO.

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

corporation

and

Other.

Chicago

city news,

Offices:

3,

111.

135

news,

bank

in

etc.).

and

Quotation

Note—On

Record
Monthly,
(Foreign postage extra.)

account

of

La

STate

Salle

St.,

2-0613);

the fluctuations in

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

be

maae

in

New

York

exe¬

Exchanges.

Established

1922

Securities

ST. JAMES STREET WEST,

—

the

South

(Telephone

Bank

Orders

KIPPEN & COMPANY Inc.

year.

607

$33.00 per year.

sugges¬

western

ENQUIRIES INVITED

Other Publications

clearings,

list of

S.
of

Other Countries, $55.00 per year.

Every

a

the

We shall be

all Canadian

on

Investment

Chicago

•

offer in

to

oil and mining stocks.
cuted
,

in
United, States, U.
Territories and Members

Possessions,

much

field of investments.

tions, including Canadian

Febru¬

Subscriptions

has

glad to send

1953

Dominion

27,

C.,

Subscription Rates

SEIBERT, President

August

E.

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

~

SEIBERT, Editor & Publisher

Thursday,

TELETYPE N. Y. 1-5

LOS ANGELES, CALIFORNIA




•

HERBERT

Exchange

B.

Park

25

London,

land, c/o Edwards & Smith.

COMMERCIAL and

Reg. U. S. Patent Office

Members

,

*

Commentaries

Harry Loynd

this

peace

V

••

„

Canadian Delhi

17

under

Bank

Officers

Three State Natural
14

German Dollar Bond Validation Details

the

in

the

Russian

as

of

12

Teen-agers—Roger W. Babson

*

v

of

view

in

particularly

us—because

honor

Berry_____

Neil Jacoby Named Member of Council of
Economic Advisers

,

Korea—

inflation

and

settled.
the

V.

(Balance of Letters to Editor relative to William
A Robertson's article).
'_

country.

dressing the Graduate School for

the

Copeland Refrig.

believe

may

fect

two

9

Nations"

not forget that Rus¬

us

the

free

in

been

we

'■

Last

particu¬

\

YORK

4-6551

10

L'

suits

the Democratic to the Republican

a

WALL STREET, NEW

Telephone: WHitehall

Under Gold Coinage, Is Gold Just Another
Commodity?

Businessmen and

tion, chances are that they'll do
something that would have the ef¬

At

—Commissioner J. Sinclair Armstrong

assured

whatever

the orderly transfer of political
leadership in this country from

Of

Obsolete Securities Dept.

7

■Motor Vehicle Toll Highways—Curtis V. ter Kuile

interna-

be

may

do

else

chief

—was

only political and
economic fact today. >

of

6

us

The

However the termination of that

my

6

Constituted SEC

L Income Stocks—Kenneth

longer

no

the

over-riding aim
off balance.'

keep
E. Luedicke

H.

years

is

do

in

we

will

do, let

or

life

been

they

,

last

three

they

aces

Whatever

our

the

war

the

Scheming

their purposes best at any
lar time.

and

economic

war

force

in

they did two years
they
can
still
make

But

that

basic

fact

political

the

trouble—and

i g ht

r

The

has

to

power

speed-up

5

Federal Electric Power—Hon.
Douglas McKay

•

t onal game, as

now.

for

still

—Alden

sure,

all

ago:

those

times

be

hold

in

are

one

their

May

Aims of Newly

-

Nations

Commercial Banks and Consumer Credits—Robert O. Bonnell

Kremlin

Kremlin Still

for

diate outlook.
.

in

another

United

•

defense effort.

the short term
or

it

into

us

the

the

99

.

in

men

Inside

Business Depression Imminent!—W. D. Gann

which is down.

is

and

Looking at Both Sides of Business—Eugene E. Burlingame

y

•

only go in the opposite direction—

important

"

WE WILL!

Outside

factors,

least

at

psycho¬
political de¬

as

no

un-

derlying
nomic

far

as
are

the

when

and

4

Warfare

f

it is obvious that it will be
necessary for government to either
cushion a decline or reverse it.

There

MAKE IT SO

—A. Wilfred

v

.

3

credit" and other signposts of

Urges business executives "keep ear to the ground
be alert," but: holds voluntary actions are not
enough and

IF WISHING WON'T

Cover

_

Value in Valves—Ira U.
Cobleigh

;

•

atten-

trouble.
and

Ramsey.

■

Looking Ahead at the Business Pattern—H. E. Luedicke

•V

■

likely and there

C.

Cover

.

current

record

is

page

AND COMPANY

A Cheerful

By H. E. LUEDICKE*

Dr.

5

lunas.

MONTREAL

Tel.
Members

of

UNiversity
The

6-2463

Investment Dealers'

Association

of

Canada

4

The Commercial and Financial Chronicle...

(720)

years

longer

Value in Valves

away

by salt water.

By IRA U. COBLEIGH

large

Author of

use

whose

dream

Spillane,

mayhap, the Kina perusal of tnis

and,

rveport,

to

for

regular-

let me
that

houses,

quite ele¬

a

gant

cross-

section of
inent

em¬

equities
&

Johnson

—

the

Johnson,

Kendall Com-

Pitts¬

p a n y,

burgh Consol¬
idation Coal,

Mining, American and
Continental Cans, the major rub¬
Minnesota
ber

quite

list and, frankly, a port¬
among these is¬

a

diversified

alone, would compare quite
a lot of investors'
lists, and even some of the trusts'.
This is only mentioned to illumine
sues

favorably with

fact
been

rather stressed here

the

financial

week's felicitous

if

phrases,
toward

a

business

will be directed
company
boasting a
history
spanning
98
any,

years, and a manufacturing
sales
level making it now

and
the

for lower cost
adversely affected Crane

tinctive

designs and plans for
complete bathrooms, kitchens and

utility

rooms,

been

given

new

a

impetus has
plumbing

Crane

to

pipeline gate valve,

sales; and much better results

are

expected this year due to stressing
complete room ideas, rather than

single unit sales.

horizons

duced to

be

now

moving away from so heavy de¬
pendence on cyclical factors, by
research

and

tion.

example, Crane has

For

oved i"

product diversifica¬

big

a

wav

into the

now
room

air-conditioner field. A subsidiary,
,«<»

-mie,

au<;.,

is

an

producer of aircraft
the

company

important

components,

has researched

pump and
valve improve¬
ments of significance in the en¬
new

gineering of aircraft gas and

air

turbines.

This same subsidiary is
entering electronics, with the

also

production

largest producer of valves and fit¬

fields of

tings in the entire world.

of

transistors.

The

of

may

you

immensity and importance

of this business may

since

you,

have escaped

don't

you

many

see

10
store, or buy them in the
drug store or super market. But
the water you drink is valved a
items

plumbing

at

the

are

characterized by great cur¬
expansion, and indicate im¬
proved and more diverse earning
rent

for Crane Co.

power

and

5

endeavor, just noted,

Finally,

current

feel that Crane

ings

In the article Mr. Robertson described the
political conditions
have prevailed
(and still prevail) among those countries
which are currently, or within the

only

$319

$175

created

and

$3.96

share

per

of

the

shares listed

common

S. E.

a

Council of the

earn¬

(they

in

2,360,294

about

$14

ferred

million

3%%

in

Carrying these is¬
sues
at par, 1952 year-end book
value was over $60 a share; and
cbmpares with 29, the current
quotation.
1952 dividends were
Assuming
is

the

continued

divi¬

cash
this

at

DR.

V.

rate

President,

•

R.

EDMAN

Wheaton

College,

was

greatly disappointed when

the charter of the United Nations

prepared

engineers,
have

the

now

a

effort

present

goes

annual

some

of

336

whom

weak

R

great

amount

members

improving

product—more and

more

the

developments
When

it

is

perceived

that

the

current market valuation of Crane

is within

common

a

point of the

two-year low, and
1946

way below its
495/q, when the com¬
far less impressive in

of

too

was

it

is

ganization fought against the idea

from

sored

ex¬
Ut.

and

V.

Lumaii

kept the aggres¬
gaining any territory

from

sors

pro¬

cellent

But

of aggression and

of

an

well-being.

equally true that in Korea, for the
first time in history, a world or¬

or

Council

.

universal

Security

vides

for

hunger^ disease,

It is true that the UN has
pro¬
duced neither universal peace nor

the

of

time is being spent on

wholly new
the company."

case

keeping, by seeking
through group action

remove,

ignorance.

bertson's

o

study

toward

the

of sovereign states, the root causes
of war: poverty,

Mr.

ly

reputa¬

a

In

make it worth
to

stnd

divided.

national

while

and

1952

have

number

achieved

tion,
of

in

to

"We

since 1875.

of course, is the phrase

objective."

and

weak¬
earnings wOuld fatal
seem
to justify) a yield of 7%% ness of the
is offered to today's buyer.
League of Na¬
Since 1949 plant improvements
tions, namely,
and additions have exceeded
$40 that the exec¬
million.
Important to the future utive branch
of this enterprise is the research was
hopeless¬
referred

concern

The key,

"limited

of the UN, that objective is defi¬
promulgated,
in that it enlarged rather than nitely limited and well-defined:
(1) to keep the peace; (2) to help
corrected the
was

current

report:

the joint rules of UPU (Universal
Postal Union) which has been a

going

Wheaton, 111.
I

'

remaining unpublished comments elicted by Mr. Robert¬
appear herewith.—EDITOR.

article

pre¬

stocks.

(which

ojj the United Nations.

The

son's

Ahead of this lies $20 mil¬
of
3%%,
debentures
and

lion

past six years have been, Gov¬
World by virtue of holding seats in the Security
United Nations. Mr. Robertson detailed the record

of political instability, featured by wars, revolutions and revolts
for each country and contended that in view of the
record, it is
worse than futile to expect them to make
any contribution to the
peace objective

,

1949)
net of

the N. Y.

on

the

of

ernors

million

million

each

on

7%%

1952, gross

year

totaled

last

the views

that

Stock Yields

were

the

of the communications
and opinions expressed by
Robertson, Member of the New York Bar, in his article
"An Inside View of the United Nations" which
appeared in the
"Chronicle" of July 2. Other reactions were
published in our issues
of July 23, July 30, Aug. 6, Aug. 13 and Aug. 20.

assets, which is just about

the

William A. Robertson's

William A.

where it is today.

For

on

present in today's issue

received in connection with

in

might, some day, sell
for something more than its net

pany

let's talk about titan¬
a
magic metal and a

We

comments

article given in today's issue.

.

common

over

The

Balance of

aircraft,
titanium,
and

perhaps
Co.

on an

"Inside View of the United Nations''

16 feet

10

n g

growth

and

dend

intro¬
suggest that Crane Co. is
can

i

g n

electronics,

$2.25.

Important Subsidiaries

Som^ logic

w e 1

anu

to

introduction, however, of the

and

today.
This

tendency

a

Crane Sketchbook, portraying dis¬

as

It continues so

motif.

etesian

an

quality

investment

that

the
has

renowned

results from tnis division. With

o.

is

This

Ltd.

Aluminium

folio

'

Idaho Power Co.

companies,

and

and

requirements

have included

Last of Commentaries

a

Crane's

a
century old reputation for
quality.
Add to that the new

quality to meet the price

weeks' entries

Ira U. Cobleigh

sold

competitors,

some

reduce

six

last

widely

quality. In 1952, however, ex¬
price cutting, and, among

tensive

suggest
the

heating

line of

piumbing and fittings
bathroom
and
kitchen, has

been

with

u m n

i t y,

important

>«jxian«t;s,

for

in

and

its

the Crane

years

corporate colsome

by

place in the building industry. For

ing has retrogressed from Mickey
sty

The Crane Co.

—

demonstrated

read¬

summer

quite

see

tons;
plumbing
and
fittings from
a
powder room to a chemical plant;

company

substantial pipe

i

tho«e

For

review, we
business

scale

a

tan

whose products are in nniversal
and whose sustained growth has been a very real and
a

they not eaten

were

original rield, vaives, from a laucet

"Winning in Wall Street"

to

A swift sketch of

in

So,

Thursday, August 27, 1953

wiping out the UN-sponRepublic of (South) Korea-

It is also true that the UN's Tech¬

nical Assistance Program and its.
Specialized Agencies and special
of the members of the
projects
have
accomplished
a
Council; and his conclusion that
great deal in checking cholera,
nothing good can come from it is
plague, TB, yaws and malaria; in
amply justified.
teaching thousands of people how
I have been pointing out these
u

p-t o-d a t e

study

to

become

civil

useful

servants;
to
gross
sales, balance factors to students in the college
in teaching millions to read and
position, and horizons for for some years, even going to the
magic word. (If you don't think future growth, it can be seen that
write; in caring for and feeding
effort to print a little brochure on
many
millions
of
war-stricken
so, just watch the gyrations of a Crane common is not
particularly the subject, entitled "Swords and
dozen
times
from
reservoir
to
children, etc. etc.
titanium-prone stock called Ca¬ inflated today.
Plowshares."
nadian Javelin on the Canadian
you; and you don't turn on the
Crane Co. should not be con¬
Surely Mr. Robertson, in his
electricity or gas in your home, Stock Exchange.)
This metal is sidered for its market
obviously painstaking but hardly
WALLACE THORSEN
virtuosity;
or fill the tank of your oil burner
apparently just the dish for the but to those gifted with the rare
objective research, came across
Editor and Publisher,
or motor car, without paying im¬
jet age. It's light, non-corrosive, quality of
no claims by the
UN or any one
patience, and perhaps
UN Gram Publishing Co., Inc.,
portant
and
fitting
tribute
to and heat resistant; but it costs attracted by the rather
else that its members think, act,
generous
New York City.
valve vendors.
about $20 a pound. Well, the top indicated current
govern and sin alike. In fact there
yield, and the
It is Mr. Robertson's stated po¬ is a ton of
brass (no gag intended) at Crane dominant
evidence showing that
'
position of Crane Co.
The Crane Company
sition that the nations which are the UN is a
latched on to this non-corrosive in its
conscious effort ta
field, the common may not
members of the Security Council
The Crane Co. is importantly
quality; they thought that would seem devoid of merit.
bring disparate and uncongenial
It may
of the UN are "governors of the dissidents under one roof
associated with heavy industry— come in handy for valves later on, prove to be a value
to "talk,
in valves.
world."
oil refineries and pipelines, rail¬ assuming the price of the metal
it out rather than fight it out." For
Rubbish! The United Nations is him to show so laboriously that the
ways, steel companies,
chemical could be brought down to earth.
an
association of sovereign na¬ various members are indeed dif¬
plants, electric and gas utilities, So they have now signed up a
cent

ium.

It's

respect

sheet

N. W. Gennes Joins

contract

and most recently the production
of atomic power. Because of this

(Aug. 3, 1953) through a
wholly-owned subsidiary, Cramet,

heavy reliance

*nc..

the demands of

on

big mdustry. Crane Company

usually been classified
clical"

some

are

now

business

as

a

"cy¬

since there

and

company;

are

has

who feel we
at or past the top of a
cycle,
the
shares
of
among

us

with

Defense Materials Pro¬

curement

plant
for

Agency

to

construct

a

duction methods worked out since

months.

pilot plant) is advancing $25 mil¬
lion to build the plant. On com¬
pletion, this unit will be able to

The

imputed cyclical nature of

this company's business is further

turn

and

in
Established

1856

H. Hentz & Co.
Members

-

(by

will

York

New

Stock

American
New

York

Chicago

Exchange

Exchange,
Board

Orleans
And

Exchange

Cotton

Commodity

New

Exchange

Stock

of

Cotton

other

Inc.
Trade

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

GENEVA.

PITTSBURGH

SWITZERLAND




6,000 tons

make

Crane

a

of

a

year;

dog

top

who

its

own ore reserves and
end ?has
had geologists

has

been

Manager

of

and

tie

riffht

into

Crane

Co.

traditional

products. For exam¬
ple, titanium is especially resist¬
ant

to

the

marine

pumps,

salt

water

field

corrosion;

and

is

replete

with

condensers,

valves

and

turbines, all of which would last

the

five

Security

from

members

permanent

the veto. Any observer of the
UN, more¬

struck by the lessening
the Security Council and
the growing strength of the Gen¬
eral Assembly (in relation to each
is

over,

versity

power of

has

25

over

years

experience
the

in

other).

banking

field,

career

Graham,

Ross

was

is try¬

He

(2) The UN is composed of ob¬
viously unlike-minded peoples;
-

R.

V.

Klein & Com¬
pany

Nathan W. Gennes

previous

(Special

to

The

set

out

to

Actually,
I
api
well
aware,
in this world don't like the

many

idea

of

kind
To

joining

together in any
long-term commitment.

of

them,

action.

It

it

hampers

infringes

much

is

of

their sov¬
forces them to slow

ereignty. It
down, or to move
too

freedom

about

natural

over, or

the

for

find all sorts of

on

to think

other fellow.

such

people

to

"reasons"

why a
imposes these

relationship that
(1) Peace is a commodity only restraints without compensating
rewards
that
like-minded peoples can or should immediately with
outweigh the restraints, is "bad."
join together to obtain;

associated

with

composition it

ing to prove is:

and

Company.

precise
achieve.

It

But what Mr. Robertson

starting

his

titanium

development is
line; it may be very

the

actual workings of the

—

therefore

compelled, to

1

—

It is perhaps for this reason that

Mr. Robertson feels willing,

^ondemn

human

(3)
Corporation

as

Financial

The

UN

cannot

keep

the

peace.

Once

Chronicle)

LOS ANGELES, Calif.— Meade
F. White has become
connected

again,
rubbish!
Unlike
accomplish limited ob¬
jectives at any time. In the area
of world

only

race

against

Americans.

he

groups can

Joins Morgan Staff

casual side

recommendatory

action is

in

except

Temple Uni¬

Quebec.
This

all UN

pse

°

no

world government in ferent, even immoral in his light,
While it is true that simply shows that the UN has the

a

sense.

any

of

gradu¬

ated

tions, not

Council,
the latter body cannot function
Securities Corporation,
on any substantive question if any
Street, New York City.

with

the field.

bis.

N. Y. Cotton

Gennes

General

to
that
to joining Mc¬
Securities
combing wide
areas
of
North Grath
Sales Manager.
America; and it already has staked
number of mining claims up in

Exchange

Exchanges

operation

Being thus deeply dedicated to
the future of titanium, Crane has
been losing no time in scouting
for the basic ores, ilmenite and
rutile.
It hopes to have, in due
course,

I

actual

out about

it

W.

Nashville, Tennessee McGrath
production of titanium 70 Wall
titanium ingots. The Mr. Gennes

and

government, impressed by Crane
research, and its improved pro¬
1951

Nathan

appointed

near

the

sponge

Company have not been
aggressively purchased in recent

Crane

McGrath Securities

order

three

to

we

need

prove

mention

the point:

is

little

\yhen

measuring

it

But

if

really surprised

democracy

even

most of the

as

again,

to find

we

know

so

it

around the

world; so few govern¬
ments like ours—he will not shock
many

even

casual

world affairs. With

students

more

of

than half

the coalition that defeated Napo¬ the world
illiterate, the secret bal¬
Co., 634 South leon; the coalition that defeated lot has little meaning for most
the Kaiser; the coalition that de¬ human
beings. With over half the
Spring Street, members of the
world sharing a per capita income
Los Angeles Stock Exchange. Mr. feated Hitler.
White was formerly with Deari
Or, in the simple field of han¬ of less than $50 a year, trial by
Witter & Co. and J. A. Hogle & dling the world's mail,
jury becomes remote as a problem
oyer 90

with

Co.

Morgan

&

countries belong to

and abide by

compared to survival.

With

more

Volume 178

Number 5250.;. The Commercial and Financial Chronicle

than half the world

sharing

life

a

expectancy of about 30 years, po¬
litical action is apt to be rather

/r

colonial

the

changing. The old

are

days

the human

frpm

are

independence

in

Food Price

And in most of the world, most

humanity would, if pressed,
less compliments to pay us

have
than

But

Mr.

Robertson

(and

them.

pays

if what they say is true

even

I 'definitely

think

most

of

it is -not) would that he any argu¬
ment for locking the US out of
the UN?

think,

what

or

what they
we

say or

what

or

are

and

with

tives.

the

All

UN's

limited

objec¬

the

world

peoples

of

if they will, agree with it—

can,
even

those

who

cape

from

its

seek

now

to

entangling

es¬

comit-

ments.
So

far the

is—no

record

large test

cessfully

prevented,
(Korea) suc¬

war

weathered.

Meanwhile,

the UN strives with little money,
remarkable tenacity and frequent¬

ly

astonishing

results to lessen
differences
between
men

the

which

Mr.

Roberston

finds

so

Fortunately for

all, and for

us

the prospects of world
peace,
are not.

they

President,

the

level

University

of

Tampa,

II

War

of

a

year

On

think

should,
could

have

other

of

fourth

My

the

general,

applying
s o

to

Robert-

Mr.

limited

n's

the

of

view

tions.

is

It

the

of

nent

call

Secu¬

perma¬
or

non-

permanent, "governors of the
Critics

of

to

the

UN

fre¬

Robertson

carries

this

on

misconception when he speaks of
**the lower house, called the Gen¬

Assembly."
the

The

principal

Assembly

make

is

to

recommenda¬

it helps to
create
public opinion which, in
various instances in its eight years,
has been a very effective weapon
process,

than "legislation" might
have been.

—more so

is

a

minor

matter, but

crux

the

which

on

Continued

on page




sharp drop in

production the past week

34

129,262,

or very

General

the

ish friends'

cards before playing the hand."

dissension

Korea

selfishly prolonging it by "refusing with puri¬

eagerly striving for

so

settlement

between

the

work

a

Fisher

Body plant when production is re¬

31.

"Ward's"

said

last week to

cars

the

at

the

an

fire held

General

Motors'

11% slower rate than early

total output of

this month, "with

deeper cut" expected this week.
The agency expects

this month,

490,000

cars

compared with 597,006

and 97,000 trucks to be built
cars

and

this

here

are

Asiatic scope

or even

On

with

comparatively limited
of

sincere

a

indispensable achievable
that no true settlement on a world¬
is on the horizon at this time.

in

an

the Cold

or

to

City,

T.

this

to

M.

&

War,

we

dissension

increasing
Russians.

among

our¬

Pending lack of agree¬

the whether and who-dunnit of

dismal

prospect the present weird state of the
importantly adding instead of diminishing!

now

Joins A. L. Albee

Opens

has

Iaccaci

115

business.

Cold

our

Paul T. Iaccaci
at

be" in

-

And

fice

not to

survival perhaps will depend on a strengthened
in its absence meanwhile on concentrating on our own

War,

defenses.

Paul

of

vis-a-vis the

as

this crucial question of

on

or

many

double-defeat

well

be

other areas—including trade—falling out
Thus the Allies in wishful thinking are suf¬

so

friends.

the
as

of "to

question

as

our

selves

of

to

a

belligerents because

first step, under the premise

however, will reflect more fully the serious effects
Motors fire on weekly assemblies.
Oldsmobile's

Some 500 workers will not be called

well

rampant charges that "the nationalist" United States

United Nations is

Bod.y Division plant at Lansing, which
bodies, will also close for inventory this week with

as

logic and bull-headed pride to explore the present possibilities for diminishing international tensions";
and that the
Eisenhower Administration is war-mongering as a stooge for Mr.

Lansing, Mich., plant will remain closed all week with 5,300 out

Olds

here

rests

is purely

tanical
•

In the

General Motors' Fisher

now

and simply
in the face of Soviet Delegate Vishinsky's daily

is stubbornly and

close

11,900 workers off as this General Motors division takes annual
inventory.
About 2,500 of the laid off workers will not be re¬
called when Oldsmobile resumes output at lower rates on Aug. 31.

any_

pyrotechnical demonstrations to the contrary in these halls—the
Cold War actually is safely ended. Ancillary thereto are our Brit¬

car

was

policy,

Cold War?"

a

non-Communist world

the

whether—even

fering

This week,
of

opened

Broadway, New York

in

engage

He

S.

Gerber,
Co., Inc.

securities

a

formerly

was

with

Newkirk

Inc., and

(Special

of¬

A. L. Albee &

Justus, Jr., is engaging in a secu¬
rities
business
from
offices
in
He

Smithville.
Uhlmann &

110,692 trucks last

was

formerly with

Dorothy

Co., Inc., 4 Liberty

Square.

Francis K. Justus, Jr. Opens
Mo.—Francis K.

Chronicle)

F.

—

Hjelmquist has joined the staff of

With
SMITHVILLE,

to The Financial

BOSTON, Mass.

\

Manley, Bennett Co.

(Special

to The

DETROIT,
has

Gildner

Financial

Mich.

Chronicle)

—

become

Henry

with Manley, Bennett & Co.,

Building,

members

of

While

business

failures

decreased

11%

to

724

in July,

the

Buhl
New

York and Detroit Stock Exchanges.

Latshaw.

they

Canadian Securities

At about 25% above a
year ago, casualties exceeded the level of any other July since
1942, at which time 764 failures occurred.
at

a

postwar high for the month.

Concerns failed

at the rate

of

34 for each

BONDS

10,000 enterprises

was

slightly below the 35 recorded in the pre¬

ceding month, but it was well above the 25 a year ago.

STOCKS-

With the

Orders Executed

exception of July, 1949, the failure rate this July was the severest
for any

Municipal

Corporation—External and Internal

mortality to an annual rate and adjusts for seasonal variations.
This failure rate

Provincial,

Government,

The index projects monthly

according to Dun's Failure Index.

at

July in the last 11 years.

on

Canadian Exchanges

regular commission rates

Contrasting with the decrease in the number of failures, the
liabilities

involved! climbed

28%

in July

to $41,324,000,

a

new

Burns Bros. & Denton, inc.

high for the post-war period.
Furthermore,

losses

bulked the largest for .any July

1932, reflecting a marked upswing in

since

Tel.:
•

-

DIgby 4-3870

the larger failures, involving
Continued

on

page

28

fFires

to:

G.

associated

month.

Mr.

^Robertson's inaccuracy in stating
.

months

"The Iron Age."

128,946 in the previous week, this agency notes.
like year ago week the figure was 83,035.

were

quently confuse it with world
government, which they do not
like, but it is not world govern¬
ment except in their imaginations.

the

The

throughout

as

Rhee, in lieu of

the

back

Council,

rity
either

Barnum

In

"Is There

NATO,

car

sumed Aug.

members

the

tions.

vance—in effect, to tear up good

starting to

other producers, "Ward's Automotive Re¬

week's expected

Total

not

correct to

and*

some

4,100 workers to be laid off.

Comments

discuss

"normal" market, states

a

planned for

makes

Specific

of

one

orders.

by.

foreign

our

nizing that "it is bad to define one's intentions too strictly in ad¬

for most steel products, es¬

are automotive parts suppliers who are
orders, according to this trade journal.

of

earlier; on the other hand, the British, as in the words of
the current London "Economist," are berating him for not recog¬

the steel in¬

quarter

operation

Mr. Lodge plays the game is wrong.
On
hand he is being criticized here for not having clarified

his stand

ment

Na¬

United

function

fourth

in

much

to

our poor

wide

article

the

—and

eral

hard

(so

peace-striving conviction that this is

Mr.

regarding

of

Mr.

their

paring

push

from "yielding to Syngman Rhee's blackmail,"
as South Korea's satellite," to "clumsy rigidity."

in which

gains by Chevrolet, Plymouth, Hudson and Buick.

P. BARNUM

kinds—specific, applying to state¬
ments or conclusions in the body

world."

to

the!

And, joining

a

with

As
way

production—due to
the fire at General Motors, Livonia, Mich., transmission plant—
did not occur.
Those declines which came were offset by sizable

Angeles, Calif.

comments

P.

incentive

no

Last

Robertson's article will be of two

Cyrus

see

ports," states.
Dr. E. C. Nance

Eos

accordingly

are

is

easing

ules

and

CYRUS

users

reflected/,

is

busily characterizing our position in opposing an in¬
to the first political conference, as manifesting

"functioning

as

drop in automotive production is looked for this week with
Oldsmobile, Cadillac, Nash and Kaiser down, and reduced sched¬

co¬

This '

India

everything

A

agency

operation

These

the
ap¬

"mulish," "Republican-isolationist," and the like.
"pouring-on" the pressure on Anglo-U. S. relations the

are

vitation to

ironclad insurance against future
shortages, don't want to enter an uncertain, more competitive era
with heavy inventories.
capacity

a

trait of

any

world

u

British

quarter.

to reduce inventories.

consumers

in

With fewer exceptions the overall relationship between
demand and supply next year will be one of closer balance—a

peace.

;

And in

it adds, the overall steel mairket will de¬
Several large steel producers told
"The Iron Age" that the main affliction of the market is a desire
the

in

Some steel products now in torrid demand will ease as

more

in

attitude

our

pushing the
manufacturer into shorter-term buying based on competitive ad¬
vantage. In many cases concrete plans to adjust inventory down¬
ward are being made. With shortages of even some "tight" steel
products seen dissipating in future months, the expanded steel
industry is adjusting its gait to that of industry in general, de¬
clares this trade authority.
cline

of

goodly segment of the American public also has,
in letters-to-the-editor and other pronouncements, been calling

feeling that the pro¬

widespread

Claus

Santa

band-wagon,

duction boom is at crest and must ebb moderately is

wear

hope than we

It

the

of

We see,?

-

(fostered by mutiny against rich">
world facing reduction of his largesse)]

currently issuing from both sides of the Atlantic.

justify

It offers

anti-Americanism.

Uncle

cancel steel

existence.

and

in constantly-accentur '

peasement atmosphere

May

ated

buying attitude of the metal user.
No longer pan¬
shortage into long-term forward buying, the metal con¬
altering procurement policies to fit the new temper of
the times, it points out.

rent

it

Wilfred

Offensive

general

effects

deleterious

the

icked by
sumer is

bred

*,

in the unceasing recriminations

Steel

more

than

-

A.

men

we

clearly highlighted here.

Peace

changing

to be easing daily while steel
opine that the General Motors fire is but part of the reason.
companies with warehouses now concede that the urgency
first was bled out of demand in late June. Contributing to the cur¬

clean

can

so

Kremlin's

The Detroit steel market appears

the United

being

demonstrated

notes.

Nations, and I

■

are

.

steel loose for other customers, the General
plant fire has stolen the headlines from the
development in the steel market today—the

Uncertainties

V".

i

*

perhaps it is just as well as a service*:
to the public's understanding that evidences of:
the fast-growing rifts between the democracies
And

on

influential

most

discussing this"

already explosive proceedings.

pecially since prices will certainly stay static, this trade weekly

factual, to
say the least. If

for

that the additional headache of

procedural question was not saddled ori to the.

transmission

They

is

its

able

v

springing

participants, the point does have consider- technical validity. But it lis just as welL

own

the current steel situation, "The Iron Age," na¬
tional metal-working weekly, had the following to say:
By

agreement, the subject could have been

as none of the UN's business.
although General Mark Clark signed the
truce as commander of the UN forces,- putting
the Organization in the position of naming its

entirely avoided

employment front, it was reported that claims for
unemployment insurance benefits held noticeably below the yearago level.
*
/

Motors

1

And

the

Reporting

YORK—Possibly the ironic epi¬
nominees to the

NEW

truce

ago,

the past week.

There

Mr. Robertson

up

f

but down slightly from its post World
peak reached several weeks ago. ' Both electric power
and gasoline production attained new all-time records

output

Tampa, Florida

we

Business Failures

Following the mid-summer lull over-all industrial production
up slightly last week as many lines increased their tempo.
Output, according to reports, continued to be moderately above

dustry's expanded
ELLWOOD C. NANCE

-

coming Korea Conference here is contained in the contention: ad¬
some quarters that under a correct interpretation of the

Without question,

final.

:

MAY

vanced in

perked

world

war, several small wars
one

Industry

NATIONS,

J

they are, has literally nothing to
do

UNITED

Auto Production

.

In actual fact,

A. WILFRED

tome of the current explosive wrangling over the

Index.

a

nationalistic dream Mr. Robertson
could well applaud.
of

Trade

Commodity Price Index-

domination .since

San Francisco in 1945. They have
either succumbed to Communism

achieved

Retail

State of Trade

has broken away

race

Western

By

Carloadings *

Over half

over.

Production

Electric Output

•

drafting of the UN Charter at

or

Steel

The

explosive.
But times

5

(721)

37 Wall Street, New York 5

Toronto

•

Montreal

•

Ottawa

TWX: NY 1-1467
•

Winnipeg

I

6

The Commercial and Financial Chronicle...

(722)

for

Looking at Both Sides of Business
By EUGENE E.

BURLINGAME*
Wcllesley Hills, Mass.

Associate, Babson's Reports,

Research

Mr. Burlingame reviews favorable and unfavorable factors in
business situation. Holds unfavorable elements are strong
enough to indicate a downturn is not far off, but says we
need not suffer a severe depression, and a substantial recovery
"to the greatest prosperity ever known" may be expected.

j
j

friend

A

Elaine

has

"The

—

they

mine

of

favorite

a

down

from

expression

only

people who think
what's going to hap¬

know

next are
either proph¬

pen

ets

damn

or

fools, and the
prophets
are

f

predict
the

another

The

to

;he

what

other

recent

fc.. £..

u.

million

35

some

have been built.

Ours is

tors

a

predominate

have depres¬

we

favorable

the

fac¬

tors predominate we have booms.

of

de¬

a

is instead

a

been

the

end

cars

dropped

lots this

dealers'

on

inventories

used-car

seen

even

have

cars

new

pile

up

in¬

become

on

each

fans

swivel

they

—

necks

each

from

have

constantly

indicates

has

group

;he

looking back and forth — first at
one side, then at the other.

that

July rate of

lion

last

the

buyer

reached.

been

From

mil¬

seven

over

duction

annually, we expect pro¬
to drop to about a four

to support both sides

million

car

the

md of the year.

There is

optimist
evoke

can

facts.

on

actual

One
for

to

run
through
important argu¬

side

before

I

the

of

give

boom

has

is

arguments

simply

lasted

has

that

continue to avoid

can

we

Gf

currence

ant

about

total

a

of

downturns

incustries,

worry

depression.

war

years.

Unless the business cycle actually

plier

downturns

the

we

toward

move

Spending

maladjustments
must

build

ultimately

Thus

the

booms,
which

up

industries

argued

in

the

There

will

seems

some

but

many

economic

our

for

pressure

defense spending
to play
a
major

destined

in

role

be

purchase, and espe¬ of an impending economic setback.
It is more likely in fact, that
where the purchase in¬
volves
debt.
Banks
and
other Federal spending would
be in¬
at
such
a
time
lending institutions will tighten creased
as
a

anxious

cially
Units

to

so,

.

Moreover

major deter¬
mining forces overlap cycles. The
some

up

in the birth rate during
depression '30's will have an
important influence on business

the

next

fewer

few

born

were

during that period, fewer people
are
reaching marriageable age
We estimate that the growth

now.

in the number of households will

less than 700,000 annually
during the rest of the decade.
This compares with an increase
average

of

one-half

and

one

nually

in

the

years

million

an¬

immediately

following the war. You can easily
imagine the effect a drop of this
magnitude

will

have

demand

on

for

housing, furniture, appliances,
diamond
engagement
rings,
as
well as
steel, glass, cement, and
other

hard

supplier

industries.

It

is

to

believe that the economy
could sustain such a blow without

-serious effect.
The

effect

be

multiplied

by the fact that increases in plant
capacities to meet the peak de¬
mands

of

recent

years

are

now

largely

completed.
Since
1.949,
American industry has spent over
A

«ftal

talk

by Mr. Burlingame

Babson

industry to industry

w^u <x
an
old-

Summer

rived

late

baseball

bench,

to

ahead.

ences, New Boston, N. H., Aug. 24, 1953.




who was on the
the score was. The

But

been

optimists

League

asked his ten-

replied
nothing

youngster

strength

Little

a

son,

what

seven

ain't

at

game and

old

year

don t

thirtythey re

worry

bat

to

up

also
on

"It's
Dad,

have

—

yet."

we

will

act

eight

since the

years

with Japan ended, and

has

been

decline

comparable to
lowed previous
The

-

end

an

stock

prices

which

that

fol¬

which lasted

war,

has

years,

this

and

of. inflation

end

the

in

wars.

Korean

three

over

to

there
depression

business

no

drastic

or

now

can

the

and

come

tiie

mean

end

the

oi

great

have

we

had

one

after'another, and the

been spending
in order to hold
up
prices and make prosperity.
The
government debt has been
increased to the greatest in hisr
has

government

giving

away

and

tory

compelled to ask

been

further

for

Eisen¬

President

now

has

hower

in

increase

the

debt

limit.
and

State

soared

municipal debts have

during

the

past

debts

are

the

about

in
are

billion.

$25

Loans

20 years.
largest

debts

Instalment

history.

and

homes

on

farms

are

approximately $60 billion. Bor¬
rowings
on
stocks,
bonds, and
securities

other

billion.

all

If

public,

close

are

to

$75

private

debts,

and

totaled

were

they

up,

probably exceed $700 bil¬

would
lion-

;

...

After

20

under the

New
Deal,* with government spending
and waste the greatest in history,
there is no plan in sight to pay
debts

off

years

government

redeem

or

High-priced labor and in¬

bonds.

prices in commodities have

flated

priced our goods out of the world
We have over-produced

business boom.

markets.

My studies of Time

Cvcles

in¬

dicate that inflation and the busi-

everything
which

have

and

cannot

be

surpluses
"

sold.

Government spending of money,

government

insufficiently,.

early 'thirties, should

not

in

in

as

the

depression

a

same

are

it has

way

past.

industries. About $3V2

in

spent

1952

billion

which

was

research

for

ano

they

The

from

take

must

payers,

end.

most
omy.

Base

The

plans
are

dismiss

unworkable

these

come

soon

government

before

they

and

an-^

but

They

completed

nounced.

There

are

.arguments

question.
son's

It

that
are
a

many
on

Far

Off",

ficant
creased

come

day

One

share

of

accrues

groups.
we

have

has

signi¬

been

national

to

In

early

most

the

ox

changes

the

this

the

the

side

to

us

cf

unfavorable

ele¬

strong enough to indiwe use

effectively the

in¬

broadest

base

have

them

been;tur~i^g

government

down.

ont

severe

Moreover there

in

as
are

laboratories

of

the

past.

frrces already

the

nn~

of babies fo"

crop

prepared

to

use

markets, -and

with

private

-

nat'on

working overtime to develop
techniques, new products and

are

nev;>
nev,

the

we

creation

possess an

of

new

impressive

indi¬

money

markets,
array

anti-depression forces. Though
anticipate
we

«a

.business

downturn

expect it to be followed by a

prosperity

known,
n

national

we

have

if, God willing,

reasonable

semblance

peace.

we

of

have

so

can¬

Bill

Must

Paid

Be

New; Dealers told us, "You
had it

never

should have

1

good." They

so

said, It never cost you

much. For all of this waste and

past 175 years and put us

hopelessly in debt, the bill is yet
be

to

paid.

during
even

How

it be paid
depression or

can

business

a

under, normal conditions?

What right has our
to ask the taxoayers

government

to buy bonds
while

and

stand increase in taxes

the

government

loans

money

or

gives it away?
Debts

ever

have
inter¬

the

of

oc
we

substantial recovery to the great¬
est

»

The

..

these debts

and

paid?

its. reckless spending, which has used
up all of the accumulated surplus

and money in the creation of new

in

be

not

happen when a depres¬
in

s

se

sion

Bern,

each

on

slowed

powerful economic weaoons, with
at Bab-k private
industry spending time

developing which will hasten the
income subsequent recovery. The research

lower

money

hasn't

Downturn is not far off:* viduals spendirg time and

However, if

as

lose

it

the

in¬

country to¬

in

several years now. Thus; with t'^c.

other important

each

seems

the

They

unprecedented

"Downturn Not

sion

'tnirties.

econ-_ what will

product except the producT-v

;-h

as

even

knowledge and the tools whihh we
have, we need not suffer a depres¬

the

our

industry

the

to

economy
of
the
United
States has experienced a tremen¬

since

unique

a

unreasonable

dous

upheaval

It .is

that everyone makes money from,

r*te that

Power

dynamic^ force in

devised

unfavorable

being

various

to

economic possibilities. It would be

ments

Purchasing

already

are

offsets

as

The

their side. There

operate the
the

Plans

considerable

very good reasons why the tra¬
ditional boom-bust sequence need

the AnConfer¬

the

now

1933

Since

There is

measure,

that

is

of

1942.

war

all

.

emergency

Private

Dow-Jones

in period

*

.

which
at

Business

chance

no

decline

longest

•

.

*a

reached high in January,

time since April,
It

wars.

factors which
depression the

a

followed

as

-

•

Broad
will

counter-cyclical

inflation and

April, 1930. Then stocks declined
until June
10, 1953, which was
the

not

the tax¬
to an
will have
more
than
seem imminent.
multiplier
effect,
and
Today, there is a development. That's
to stop giving away and loaning
fashioned
depression
would
be vastly improved unaerscaiicting or four times the 1939 total.
mdney to foreign countries that
well under way.
business cycles. Moreover, in Dr.
For the new products being de¬
pro^ahiy can never repay it.
The one-sidedness of this anal¬ Arthur Burns the President has veloped, new markets are beirg,
If after 20 years of the greatest
ysis so far is reminiscent of the perhaps the best-informed expert created by the parents in the na¬ so-cautu
prosperity in history all
»»"
story about the father who ar¬ on business cycles in the country. tion. The baby industry is the
Debts
have
increased,
from

Be¬

years.

babies

tradi¬

sequence
were
to follow,
production cutbacks would spread

decline

during

If the

tional

the

cause

credit risks.

on

began,

1953, which was the highest since

cushion

•

business de¬

The

boom.

averages

for

scene

1946. How¬

Market

Stock

business

regard to tiny Korea will
necessitate any sharp revision in
our
defense
plans or spending.

cut-backs,

Their

so

in

ended

II

no

was

which brought on

ment in

tied.

be -felt

col¬

that agree¬

seem

Bull

the

However, with the interna¬
unsettled in

War

1945

there

ever,

been

of

World

is

depression

economic

by

and

pression of any importance.
June, 1949, the last upswing in

support

and

.

1920-21

During

1919.

until

lasted

decline to October 30,

condi¬

have

in

boom

new

it doesn't

since

therefore

Korea

persuasively

of

-

against declines in activ¬
billion during the past year alone, ity.- It is especially to be doubted
will begin to look awfully high. that the government
would re-*
Consumers
will
become
"less duce defense spending in the face

'20's.
in Family

settlement

of

final peace

a

which

business continued
good and stocks advanced to new
highs in May, 1946, followed by a

largely

economic

of

scene

which have increased by about $5

caused by the excesses of the late

Decrease

independent

tions. The effects of

host of sup¬

a

are

will

about one-seventh

or

Gross National Product, is

business

1955.

coming

same

nearly 50%.
After

part of

plainly confirm

big

a

depression in business followed
and the stock averages declined

some years ahead. Though the dy¬
economy, bringing
drop in employment, purchasing namic phase of the program is
power
and
sales.
Inventories, past, it provides an impressive

be
corrected.
depression was

1930-33

year,

in,

War ended
was

also

a

August,

as in 1929.
that the de¬

the

arid

only indicated by Time Cycles but

1918 there

business

same

stocks

in

The

World

the

the

Cycles indicate

latter

Gann

D.

in business.

November,

a

Since all branches of the
economy
do not share equally in
.

a

W.

a

advance in stocks and an upswing

Continue

to

by

September

for

depression will continue until the

depres¬

After

throughout the

slump.

a

occurred

been

November,
in

Defense

The
cline

war

sion

impor-

need not

we

con¬

a

Cycles.

Set

depression

end

followed

tional

time.

same

Decline

has

severe

greatest

September, 1953 will start a de¬
cline
in
stocks
and
a
business

the

of

areas,

a

the

and

con¬

be

'30's, except for' the
These are both key

industries to which

ended, it is obvious that
longer the boom lasts, the

of

Time

matical

has

economy

through the maintenance
over-all purchasing power de¬

the

predict

busi¬

which

isolated from the rest of the

were

September,

for

stocks

in

and

panic in history to follow. History
verified the accuracy of mathe¬

boom and

after

of

Cycles, I was able to fore¬
end of the great Bull

the

192.9

has

a

ness

widespread de¬
because
their
effects

in

the

will

the

not

has been
closer

the

by

'

continued

both

at

depression

long.

so

rate

industries

downtrend
This

major

annual

both the automobile and
struction

forecast.

down-turn

a

the

like

each

been

end

study

by

1928,

wober,

,»

Time
cast

nearly always

precipitated

According to present indications lapse.

convincing

very

of the more

ments

today. Both
the pessimist

and

some

I'd

some

an

lot of statistical data

a

cars

a

.

ST

an

a

inevitable.

i.

...aiKei

not

and

influences

various

the

con¬

and

declinej

11

a

there

and

summer,

that

nave

They

coming to

are

depression in business,
decline in stock prices are

and

inflation

pressions

prosperity, govern¬
surpluses do not

war

boom

nfiss

previous wars

other

tennis

sider

do is to

can

During

and at various times fur¬

If

losses
during
World War II years have been al¬
most wholly made up.
We have

stocks.

important industries
have also had slumps. These have

and

that

in

depressions.

rived from other active industries.

production

failed

never

and

market

World

of

and

business

through at least two ' depres¬
since

prove

policy, and increased

upswings

always indicated
the
stock

a

side, and through his analy¬
sis, try to decide which has the
greater
weight.
Economists
in
this
respect are somewhat like

economist

an

business

have

great

also

single
vast collec-

is not

indicate

to

it should be remembered
economy

cycles

/

likelihood

will

years

support

crop

make real prosperity.
Time

take place.
the

ment

a

A unique feature of the present
creasingly hard to move. As has
been aptly said, dealers have been situation is that our most impor¬
tant
industry is almost wholly
selling long credit-terms instead
from
of automobiles, with little or no immune
ordinary
cyclical
lown payment required. This has downturns. The defense program,
drawn
in the marginal
buyers, involving in total some $50 billion

A 1

Says next few

de¬

a

;he

influencing the business

When

toward

should

study of Time Cycles indicates that
are coming to an end and a

his

decline in stock prices is inevitable. Predicts a decline in Sep¬
tember of both business and stock prices, the sairfe as in 1929.

In

iubstantially in recent years, and

When the unfavorable fac¬

sions.

passenger

The average age

of automobiles in use has

unfavorable

and

favorable

highly

a

At
any
multitude

economy.

given time there are

trend.

the

aside from

boom,

feeling of def¬

elements

self-starter
recovery,

Gann contends

inflation and the business boom

niture, appliances, paper* lumber,

to

support

program,
has been the
automobile industry.
Since 1945,

inite knowledge.

of

Forecast

Cutback

principal

defense

a

complicated

head¬

major

sions"

Automobile

o r

with

Mr.

will at least partly

War II,

future

holds

Miami, Fla.

unemployment benefits
maintain pur¬
power. Tnis provides an

addition,

ache.

many

anyone

declines.

economic

of

Imminent!

By W. D. GANN

and

maintenance

industries

fore-

easting. There
variables

Business Depression

any

depre¬ lion of individual units. We have
ciation charges.
Even more im¬ already had depressions for va¬
portant, the rate of expenditure rious industries tnrough what have
been
called
ior new plant will drop rapidly,
"rolling
readjust¬
giving the construction and allied ments." The textile industry has

pertinent with
to

too

effects

chasing

through

respect

are

ings
»

power

at

working classes have sav¬
with which to cushion the

billion for new plant and
internal
equipment.
Part
of
this was
quicker
strictly for war work, but under
pression
our "guns and butter" program, a
As to
great
deal went for
consumer
goods
capacity.
When demand pression,
that our
drops, the excess capacity will be
a
drain
on
corporate
profits unit, but

especially

business

existed

the

of

$100

ail dead." This
is

that has
time in his¬
tory. Not only has this character¬
ized the'unparelleled prosperity
ot recent years, but it snould also
help pi event
a
severe
depres¬
sion from getting underway. For
the first time, a large proportion
purchasing

ever

27, 1953

Thursday, August

of
ras

have

debts,

been

buying

and

Detune

When credit is

piled
on

on

top

credit

popular slogan.
stopped, the great-

a

-

Number 5250

Volume 178

Commercial and Financial The
Chronicle

...

(723)
est

jn

liquidation

follow

and

will be
The

herent

will

history

Commercial Banks

businessmen

losses to

enormous.

stop

government cannot

afford

the

and

to

buy

people

bonds

of stocks
For

government

time has

to

come

stop, look, listen,

to spend

come

to

money
not for
The

that

The

soend.

and pay as you go.

save

has

and

tax

awav

The time

the taxpayers'
for peace

prepare

We

and

On

few

war

prosperity, government
crop supports, and increased sur¬
pluses do not make real prosperity
but

lead

only
depression.

to

deflation
v

during

muct

we

try to

first

10

our

scale

has

coun¬

t h fe i

get

i

r'r

ISO

not

dampened

Member of Council of

a

Economic Advisers
President

reconstituted

agency, provided under Em¬
ployment Act of 1946 to advise

It

has

been

President

pointed

H.

Advisers.
J aco

ap¬

which

late

prominent
economist

Dean

task

banker's

running

of

establish¬

ex-

,

,

has

credit de¬

banks

some

loans

instances

36 months. -

as

hard

the

for

credit

of banks to be wrong excspt

earlier

and

turned

down

complicated unless he chooses to
it

make
and

Regardless of wars
peace, truces and

so.

of

rumors

what have you, normal
entitled
to credit and

people
will

School

of

are

dis¬

charge their just obligations once
they have been assumed. The sea¬
soned banker knows that a loan
well

made- is; with very few
ceptions, easily collected.

recognize
credit but

policies as'will
citizens's right to

the
not

to

license

a

few

very

it

created

has

illusion

the

in

the

of

Abuse

community
as

does

that out.

credit

fect

is

a

he

is

point

If

program with him—and

toward
ers.

so

same^

attitude

personal loan custom¬

our

Our

loan

officers

have

an

excellent opportunity to do some
constructive work which often re¬

flects

itself

dence

in

in

increased

bank.

our

the advice

confi¬

Even

when

give is not followed,
many times it eventually redounds
we

to the credit of the institution.

Credit Information

Incidentally, the importance of
making consumer credit informa¬
tion

available

departments

to

of

the

commercial

banks

our

can

hardly be over-emphasized, par¬
ticularly in the dealer discount
area
or
where heavy equipment
or
machinery is being financed.
Neither

the

until

commercial

credit

consumer

make

any

credit

the

nor

the

department
has

commitments
cleared

been

by both departments of the bank.
Of

course,

if the banker's

ad¬

vice is bad he will have to accept

the

the

responsibility for being wrong.
Consequently, it is important that

he be right not only in theory but

placid pool. The ef¬
in an ever-widening

a

felt

circle;

if

should

we

He must take the

the reaction caused

thrown into

that

mean

on.

much the same
by a stone

very

•

up

such

abuse

affects

our

he has a
tendency to
too much "of his working
capital in fixed assets, we can dip¬
lomatically explore the dangers of

tie

should

Th^ banker is expected to es¬

it.

it

over-extended

ex-

tablish such credit

right to

a

suggestions.

successful

more

Consumer

in practice.

He is not likely to be

Continued

-

field

the

enter

the

was

in

getting

just

started

storm

broke

1929.

us

phytes

who
thought they had
permanent bonanza in the

institutions
years

by

a

stock

market

consumer

during the dethe late '20s and

—

just

found

late,
made

record

pression

reminds

in

'

1920s.

the

'

'
ain't

"there

But

little of the

a

middle
'

offering of these Bonds for sale, or an offer to buy, or a

on

page

IS

J
'

830,000.000

'

v

solicitation of an offer to h:>y,

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

any

ac¬

Southern California Edison

Those lenders who found in

mai.»

an

and

such

no

This is not

neo¬

the

appliance and television market a huge volume of loans have
recently had
a
sad awakening,

; early '30s — was so good that the
I
spread of-that type, of banking
■i
was
greatly
stimulated.
Com- They hadn't gone through the exmercial banks began
to_ recognize perience of
financing
phono-

Business, Ad¬

ex¬

always follow
has

constructive

all, the

our
cus¬

business,

but

com¬

industry, and by

an

Company

,

,the

cus¬

But the banker's task is not too

is

bankers

was

credit

of

we

cessive tax burdens.

Jt

p

.

en¬

tlpe fundamentals.

mechanics

but he

our

customer is the better our institution fares. That doesn't mean
that
we should
try to run his

•

the- economic

The

and

educator,
has"
since 1948,
been

been

has

It

man

ment

Robert O. Benne.t

a

Incidentally,

to

when

a

so

that

in

plicated by the gyrations of the cost
living, of doing business and of

-Mhose who expected the readjust-

oT Economic National City Bank of New York,

Dr.

by,

-

mem-

a

expect

escape

guide

the

bank

Jacoby

nT th^ CoundT

ber

that

has

get

our¬

of

fyad recog¬ minds of
many that at last a lane
opportunities offered has been found which has no
by' the amortized loan prior to
turning, and that a fool-proof
1930, arid the first big commercial business has been discovered. It

nized

announced

Eisenhower

Neil

ex¬

commercial

national economy.

on

to

easy

on

tomer is entitled to has been

that

consumer

running as-long

gave

banker.

is

up

ing the amount of credit his

it

credit

collectible,

with maturities in

„

man

It

check

The

sub-marginal loans which proved
timely warning
collectible during the continued
The
depression
years
of
the/nflationary cycle. " The last 20
early '30s was another stock tak- years have been the fair-weather
ing
period
for
the
consumer
operators paradise. Unfortunately,

three-

chance to

a

subject will give

our

overlook

; consumer'

of commercial
been
bulging, with

have

weather

-

that

the

partments

I,

operators

and

economist

names

to

fair

-to

portfolios of

.

and

an

some

first

selves.

losses
have been almost nil and that loan

enthusi¬

cess
asm

surprising

proved

ago,

years

review

grossed

circumstances

such

fended

con¬

War

*

Under

period

World

possibilities, it is

cannot

to

He may not

advice

our

epidemic of business failures.

ary
:

V o 11 o w i n g

Neil H. Jacoby Named

educator

a

consumer

tomer.

War.

way.
for

f

e

years or so.

felt

ditions
r

developed

pi¬

as

Unsettled

b

lending

pre¬

vailed

•

bankrupt

remind

consumer

years

caution

and

ready to fight Russia,
and Russia does not fight, we will
have a worse depression than ever.

_

Urges

of

Coupled with
these 'tangibles are the intangibles
bankers have had their experiwhich
are
the
by-product of a
enee with consumer credit.
IHirsynthetic economy built up over
ing that time there has been no
a
period of 20 years and stimu¬
^iz-abie
unemployment,
no
suolated by the excesses of two wars
siantial price reduction, no real
—World War II and the Korean
.inventory glut and no extraordin¬

the

oneers

If

constantly

that

large

a

onty within the last 40
Naturally,

will prove

years

must

ourselves

war.

next

discovered.

the

us

bankers

responsibility

After

eiementals of

Stresses
importance of making consumer credit information available
to commercial credit
department of banks. Holds banker
should be neither pessimist or
optimist, but a realist, firm
without being rigid. Sees "bloom off boom."

has gone on the theory of waste,

give

been

profits and could
their princi¬

reduce

principles of credit
evaluation. An examination of the

ments, and lays down principles for credit evaluation.

the

ears

of

bankers get their houses in belter order for coming readjust¬

the large amount

they hold?

20

this has created illusion that

says

fool-proof business has

their

We

pe¬

severe

headaches, which could

In view

Warning that experience by commercial banks with consumer
credit loans has occurred mainly during a "fairweather parad.se," Baltimore banker

many

appropriate time to

support

The day will come when they will
be forced to sell. Where will they

face

pals.

By ROBERT O. BUNNELL*

Investment trusts hold the larg¬
est amount of stocks in
history.

post-inflationary

conceivably

Vice-President, The Fidelity Trust Company, Baltimore, Md.

government spending.

find buyers for

a

will

collection

And Consumer Credits

cannot

to

in

and

dissipate

a

depression by spending money for
public works, because when busi¬
ness gets
bad, less taxes will becollected

riod

7

'

ministration

;'of the Univer-

:

t

not only the;, opportunity of in- graphs, radios and

vacuum

t

;fornia

[ tending such credit, but; what was foun(j . an easy way
;farmore ; important, they found %oney for long terms with short
/that consumer/credit' departments down payments, at what seemed

'

Los*.

at

Angeles

•^Dry.Jacobyy.'
irtV

j; was, V born

•>'

creasing' their; earnings'" by

helped

dissipate

the

;

politicians'

inference that bankers

.Dundurn,

ex- /ers

were

"ecor-

royalists"!; interested

only

in

to be

their

s

nomic

k afche-

w.an,.

.Canada,,;

He

to

came;

United

the

in the "princes of privilege.'Mv

Sept... 19,.. 1909.

on

cars

in

States

Consumer

credit

as

part

a

was naturalized in 1937.-commercial
banking really began
graduating with the degree to take hold about 1935.
That is

of Bachelor of Arts from the Uni-

significant,

versity of Saskatchewan in

country

of

1930,

for

that

at

time

happened.

the

'20s

early

'30s

and

them that it is indeed a

15, 1953

to
remind
"long lane
Copies of the Prospectus may be obtained from any
writers

The

reminders

modest

banks

of the several under¬

only in states in which such underwriters are qualified to act as
the Prospectus may legally be distributed.

dealers in securities and in which

^?,eived, his, dJgrTeTe .of D.octor

cover from the economic debacle have had recently that indiscrimPhilosophy at the University-of -of 'the early '30s./' Prices
were'%ate lending can be unpleasant,
m 1938.
low, those still employed were
unfortunate, or even disastrous,

Chicago

Dr. Jacoby was Chairman of the
Saskatchewan Taxation Commis-

permanent, only the solid business

sion

in

1936.

strain, and the only

1933

to

1936,

Before

he

the

of

He

to

the

1937

Uni¬

In

1940-41

the

he

Illinois

School

tration

at

He -is

Chairman

was

He
of

U.

became

Business

C.

L.

affiliated

with

of

out

of

1948.

\

War

New

the- Com¬

in

SAN
ward

The

Cronin
are

erly
/Mr.

Street.

with

f'

Hill

&

II

off

for

halted

by

the

and

Korea

10

by

our

"police

programs

Why all this review of

Miwith

was

Richards
with

form¬

&
Paul

Co.




it

was

us

bottom

in

peak only
the great

1933
a

C.

of

talk

through

It is true

a

prudent

men

move

more

care-

Union Securities
A. C.

are

a

period

familiar?

began

and

at

reached

Bonnell

at

the

Prepare

the
its

School

Consumer Banking, University of Vir¬
ginia, Charlottesville, Va., Aug. 20, 1953.

•

wm consumer bankers,

Incorporated

recognize these warnings and get
their houses in better order for

If
to

they

readjustments to come?
do they
will continue

serve

their communities well and

holder.

if

contribute

to

the

difficulties

in-

E. F. llutton & Comply

Fulton, Reid & Co.

Michigan Corporation

Stein Bros. & Boyce

Prescott, Shepard & Co., Inc.
The Robinson-Humphrey
John C. Legg

Johnston, Lemon & Co.

Company, Inc.

Baker, Watts & Co.

Chas. W. Scranton & Co.

& Company

Johnson, Lane, Space and Co., Inc.
Pacific Northwest Company

Starkweather & Co.

A. M. Kidder 8 Co.

Shuman, Agnew 8; Co.

Chace, Whiteside, West & Winslow
Incorporated

Scott, Horner & Mason, Inc.
Richard W. Clarke

Corporation

Indianapolis Bond and Share Corporation
McAndrew & Co.
Incorporated

profits

for

their

stock¬
they do not, they will

produce

Field, Richards & Co.

Alex. Brown & Sons

Ball, Burge & Kraus
First of

Auchincloss, Parker & Redpr/Ji

Spencer Trask & Co.

Reynolds & Co.

Laurence M. Marks & Co.

W. E. Button & Co.

Hornblower & Weeks

Newhard, Cook & Co.

particu-

Hemphill, Noyes & Go.

Dominick & Dominick

for

larly those who came into the picture
during the last 20
years,

more

Corporation
Wertheim & Co.

Corporation

Allyn and Company

fully,

Readjustments to Come
.

Stone & Webster Securities

Ilarriman Ripley & Co.

readjust-

justments to date have not been
great.
They have been substan¬
tial
enough, however, to make

Banks Should

few months ago, that

Mr.

going

.

Incorporated

surplus buying programs, financed
by a tax levy on all of our citizens.
But by and large the ad-

:i

majority of commercial
by

all-time high.

a

prices
have had to be bolstered by huge

in

Co.
*A

an

at

wa^es

shoes. It is true that farm

its

during this infla-

tionary period that

come

Farwell, Chapman & Co.

with Consumer Credit

Because

G.

at

been

of the most

one

have

ment period, such as textiles and

action"

•

witn wnicn all of

Fred

at

reminders

Blyth & Co., Inc.

effect.

wholesome

that certain of our industries have

World

almost

inflationary
history.

The

years.

after

process

was

Calif.—Ed¬

Cronin

was

purchases,
by the threat of war,

Chronicle)

associated

in

a

time wnen employment anu
are

late

have

These

Commercial Banks Experience

Talbot, 519 Califor¬

Mr.

Michaelis

Rudolph

and

rcw

Hannaford &
nia

Financial

FRANCISCO,

T.

chaelis

to

up.
-

?

York.

the
eco-

foreign

intense

Joins Hannaford Talbot
(Special

could go was

abatement

' inception

for
Economic
Develop¬
ment, and the Bureau of Economic
in

—

leveling

mittee

Research

the

put
the
economy
into
high gear and the inflationary
spiral began and continued with-

Adminis¬

A. in

stand

rapidly

Relief
Dean

to

way

win„

spite of huge government

stimulated

university.

Emergency

Commission.

the

the

of

in

able

lag threatened

a

spending

versity of Chicago in 1938, be¬
coming Professor of Finance and
Vice-President

been

curve

While

of Finance of

returned

had

nomic

division

research

Department

Illinois.

man

that, from
Supervisor

was

of the legal and

-

Due August 15,1973

•

Price 100% and accrued interest

They

that has no turning."

just beginning to re-";.

was

Dated August

of every make,

of didn't have the experience of the

1930 and

After

t

Series E, Due 1978

,

model and year, are beginning to
-wonder what has

•.

:

,

profitable rates, secured by

"

iS.a

Refunding Mortgage Bonds

First and

Those who
to put out

heyday.

arid used

new

3%%

clean-

Vsity- of: VCali-3

August 26, 1953.

Stetson Securities

Corpora ion

Davis, Skaggs & Lx
Investment Corporation of NoiLIi
Mead, Miller & Co.

8

The Commercial and Financial Chronicle.

(724)

Uarco Inc.—Memorandum—Central
Salle Street,

.

Republic Co., 209 South La

Chicago 4, 111.

COMING

& Co., 225 East Mason St.,
Also available in the current issue of

U. S. Vitamin Corp.—Report—Loewi

Dealer-Broker Investment

Milwaukee
"Business

Wis.

2,

Financial

and

Digest"

EVENTS

analyses of Wisconsin

are

Recommendations & Literature
that the firms mentioned will

understood

is

Club of Chi¬
annual field day at KnollClub, Lake Forest, 111.

wood
Resources—Booklet describing

resources

of Utah, Idaho,

899, Salt Lake City 10, Utah.

Yields and

Bond

Childs and Company, Inc.,

—

Bulletin

C. F.

—

annual bond party at the Omaha

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

Country Club. A cocktail
will precede Sept. 14.

in Cuba 1951& Company, 99 Wall Street, New York

Cuban Sugar—Lamborn's chart of stock of sugar
1952-1953—Lamborn

5,

New

German

120
New

Sun

York

City Bank

Stocks—Comparison and analysis of 17

1953—Laird, Bissell & Meeds, 120 Broad¬

9:00

a.m.

p.m.

Men's

York

5, N. Y.

1:00

and

National
York
Stock

p.m.

6:30

7:30

Averages, both as to
a
13-year period —
Front Street, New

market performance over
Quotation Bureau, Inc., 46

Iowa Investment Bankers Asso¬

.

Club.

Sept. 17, 1953 (Rockford, 111.)

p.m.

(Bridge and Canasta)
Men's Bowling Tournament
Reception

p.m.

Dinner

nual

Speaker:
Radio
9:00

Mr. H. L. Hoffman, President Hoffman
Corporation
.,

Dancing

p.m.

Rockford Securities Dealers An¬

•

/

.

'

Instalment Purchase Plan—Outline

of 50 selected

8:30

a.m.

9:45

a.m.

National

12:30

p.m.

Alleghany Corporation

—

Circular

Hardy & Co., 30 Broad

—

Hospital

Supply

Corp.

—

Memorandum

—

David

1:00

N'oyes & Co., 208 South La Salle Street, Chicago 4, 111.

the

Meeting

3:00

p.m.

Men's

6:00

p.m.

closs, Parker & Redpath, 52 Wall Street, New York 5, N. Y.

7:00

p.m.

Outdoor

Also available is

9:00

p.m.

Cleveland

Analysts

(Bingo)

Dancing

Nopeo Chemical Co.

on

Berkshire Fine Spinning Associates, Inc.—Analysis—H. Hentz
& Co., 60 Beaver Street, New York
4, N. Y.

Company, 300 Montgomery Street, San Francisco 20,
Also

Calif.

of

reports

are

on

Texas

Eastern

p.m.

Dinner

p.m.

Sup Valley Ice Show

10:00

p.m.

Dancing Duchin and Ram Rooms

Sons, 173 Portage Avenue East, Winnipeg, Man., Can¬
ada and Royal Bank
Building, Toronto, Ont., Canada.

9:30

Florida
&

44

Coast

Railway

Power

Wall

Wall

Co.—Memorandum—A.

C.

Allyn

Street, New York 5, N. Y.

v

&

'

Co.,

Midland Corp.—Analysis—Thomson
Street, New York 5, N. Y.

Pabco

A.

Lomasney &

•

.

&

McKinnon

way,

Co., 39 Broadway

New York

6, N.

Y.

I

.Bank

Building, Toronto, Canada.

I

still

received
NSTA

an

fan.

Why

.

.

.

:

.

.

New

:

;

*

t

:•

;

York

7,

Patterson

New York 5, N. Y.

-

*

United

States Inter¬

1952

and John

—

Gardner:

M.

Gunn, Jr.
—Princeton
University
Press,
Princeton, N, J.—paper—$2.75.

'

r

.

..

-

(Special to The Financial

Chronicle)^-,..

;; SAN FRANCISCO, Calif —Roy
C." Speer

with

has

Walston

gomery

become connected
Co., 265 Mont¬
members of the

&

.

...

in

Herbert D.

Y.—fabrikoid—

N.

of United

Survey

„

B.

SMITH,, Chairman,
National Advertising Committee,
Pershing & Co.,
;
120 Broadway,
vY"
•
V'

-

—

Joins Walston & Co.
••

HAROLD

Canada

and

national Finance

.

.

.

r

North

$12.

-

K. I. M.

of

Seibert & Co., Inc., 25 Park Place,

,

APO 1007, c/o P. M.,

Francisco, Calif.

.

houses

bond

and

States

Herbert H. Blizzard in Japan. He is
not drop Herb a line —Col. Herbert H.

Blizzard, USAF, AF-PEO-FEALOG-FQR,

Murray & Hay, Dominion
-

stock

or

card from

a

Dealers

Mid-Year 1953 Edition

—

—completely revised directory of

•

San

-

interested in earnings and growth of

today is $17,000. We should do a considerable job
in securing commercial ads this year in view of the fact that
E. P. T. expires December, 1953. Have you tried?
Surprise your¬
self and help your treasury as well.

Airlines, Inc.—Repor t—Eisele &
King, Libaire, Stout &
Co., -50 Broadway, New York 4, N. Y.

Oil—-Memorandum—Cochrane,

are

America

Our close

■

<•

Security

|

companies whose securities they retail or trade, whether listed
unlisted, and is an excellent field for public relations.

F. Hutton & Co., 61 Broad¬

analysis (Report*C-20)—
Lerner & Co., 10 Post
Office Square, Boston 9, Mass.
Scrantoii Spring Brook Water
Co.—Analysis—Ira Haupt & Co..
HI Broadway, New York
6, N. Y.
I.

a com¬

I consider our Year-Book an outstanding advertising medium.
has a longer life and one insertion reaches more corporation-

minded individuals who

New

Company—New

Marshall, Seattle, has confirmed

Who said advertising contracts have been all allocated

for the year 1953?

11

«Resort

Triad

Dancing

p.m.

LIBBING

Sid Sanders, Foster &

Company—Analysis—Jones,

Cement

Dinner

mercial ad.

Kreeger & Hewitt, 1625 Eye Street, N.W., Washington 6, D. C.

Riverside

Cocktails

p.m.

9:00
AD

'

Remington Arms

Jasper Park Lodge.

Meeting

1

It

6, N. Y.

Products—Memorandum—E.

Association

Convention at

Speaker: Mr. Harry Dillin, President Linfield Col¬
lege, Oregon.

Inc.,

&

Hydrides—D.

York

Dealers

Annual

Canada

Ladies Luncheon

p.m.
p.m.

7:30

McKesson & Robbins,
Inc.—Memorandum—Hemphill, Noyes &
Co., 15 Broad Street, New York 5, N. Y.
Metal

Investment

of

19

Men's Luncheon

p.m.

1:00

Libby—Memorandum—Sills, Fairman & Har¬
ris, 209 South La Salle Street, Chicago
4, 111.

Marine

Committee

Beach Hotel.

June 9-12, 1954 (Canada)

of Officers

6:30

International-Great Northern Railroad Company—Bulletin
(No
141)—Smith, Barney & Co., 14 Wall Street, New York
5, N. Y.

Libby, McNeill

of America Annual Convention at

Speaker: Mr. Patrick B. McGinnis, McGinnis & Co.

Company—Analysis—Cruttenden
Street, Chicago 4, 111.

Co., 209 South La Salle

Illinois

12:30

Edmonton, Canada.

Louisville Railway—Memorandum—■
Co., 25 Broad Street, New York 4, N. Y.

East

National

a.m.

Election

Indianapolis &

Hirsch &

Investment Bankers Association

the Hollywood

SATURDAY, SEPTEMBER

&

Jasper Avenue,

i

(Hollywood, Fla.)

9:00

Canadian Propane—Memorandum—R. S. Weston &
Co., 100004

Exchange

Governors Meet¬

Nov. 29-Dec. 4, 1953

Amateur Ice Skating Contest for Ladies and Gen¬
tlemen. Sponsored by Investment Dealers Digest.

Canadian Pacific Railway Company—Review—James
Richard¬

Chicago,

ing.

18

Athletic

Prizes.

,Wm. Cameron & Co.-^Memorandum—Rauscher, Pierce &
Co.,
Mercantile Bank Building, Dallas 1, Texas.

Regional

Stock

of

Board of

Firms

p.m.

Service.

son

'

5:30

Transmission

Corp., Permanente Cement Company, and Southwestern Pub¬
lic

Security

of

Lakes

(Louisville, Ky.)

Association

7:30

available

Great

13-16

Oct.

Barbecue

Activities, Golf Tournament, Croquet,
Fishing, Horse Shoes, Tennis, Trap Shooting and Ski Lift Ride.
day

(Cleveland, Ohio)

Society

Bowling

FRIDAY, SEPTEMBER
Full

California Oregon Power Company—Analysis—First California

meeting in
St. Anthony

Conference.

Cocktails

memorandum

dinner

Oct. 13-14, 1953

}

Ladies Luncheon

p.m.

American Radiator & Standard Corp.—Memorandum—Auchin-

a

annual

Tapestry Room,

Hotel.

Mr. Sidney M. Ruffin, Burgwin, Ruffin,
& Pohl, "Current Trend in School Fi¬

Perry
nancing"

A.

1

I

Men's Luncheon

Speaker:

Street, New York 4, N. Y.
American

Committee

Hills

Forest

Investment Women of San An¬
tonio

Past Officers Breakfast

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

the

at

Club.

Sept. 22, 1953 (San Antonio, Tex.)

•

THURSDAY, SEPTEMBER 17

issues

Outing

Country

4, New York.

—Sutro Bros. &

.

ciation Field Day at the Wakonda

Ladies Luncheon

p.m.

3:00

up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau

Luncheon

Speaker: Mr. W. F. Nightingale, President Moun¬
tain Fuel Supply Company

Over-the-Counter Index—Folder showing an

yield

Sept. 17, 1953 (Des Moines, Iowa)

Registration

12:30

1946—Analysis—Francis I du Pont & Co., 1 Wall Street,

vs.

New

National Security Traders Asso¬

,

ciation 20th Annual Convention.

New York 5, N. Y.

way,

16-19, 1953

WEDNESDAY, SEPTEMBER 16

of June 30,

as

Sept 16-19, 1953 (Sun Valley, Wa.>

PROGRAM

Valley, Idaho—September

Broadway, New York 5, N. Y.

issues

1953

CONVENTION

Hanseatic Corp.,

Bonds—Analysis—New York

party

NATIONAL SECURITY TRADERS ASSOCIATION

York.

Dollar

Bankers

Investment

Nebraska

Association of Omaha and Lincoln

Rates 1911-1953

Money

(Omaha, Neb.)

Sept. 15, 1953

Notes

NSTA

Wyoming and Colorado—Dept. K, Utah Power & Light Co.,
P. O. Box

Bond

Municipal
cago

Area

111.)

Sept. 11, 1953 (Chicago,

be pleased

parties the following literature:

send interested

to

Field

Investment

In

Electric Power Company and Dun and Bradstreet, Inc.

It

1953

Thursday, August 27,

.

Street;

New York and San Francisco Stock

Exchanges. vHe '
with
We make good markets in
•

Public

385

"

VI

FOR

Utility
•

A

COMPLETE

SET

FROM
•

Industrial Stocks
Available at

your

orders & inquiries invited

This

2400

Members: N.

74

y.

Security Dealers Association

Trinity Place, New York 6, N. Y.




a

of

set

Chronicles is

Troster, Singer & Co.
HA 2-

1929

Phone

or

OF
-

"CHRONICLES"

1951 (Bound)

Brokers office in N. Y. C.

Commercial
a

terrific

&

buy..

Financial

write Edwin L. Beck for

REctor 2-9570

25 Park

;

The Financial Chronicle)

JOSE, Calif.—Roy
Turner has joined the
staff
Lola
Turner
&
Co., - Bank
America

T.
of
of

Building.

With Anderson Cook Co.
to

The

Financial

Chronicle)

PALM

price

jqy 1-

376

to

SAN

(Special

..

previously

& Company.

Joins Turner Staff

SALE"

(Special

Natural Gas and

was

E. F. Hutton

Place, N. Y. 7

BEACH, Fla.—William
H. McLaughlin has been added to
the staff of Anderson Cook Com¬
pany,

Inc.,

First

National Bank

Volume 178

Number 5250... The Commercial and Financial Chronicle

(725)
representation and fraud than the

Aims of

Newly Constituted SEC

By

and suport in this

regular filings under the 1933 Act.

are

A

SINCLAIR ARMSTRONG*

J.

Study of Federal
Regulations

Member, Securities and Exchange Commission

Another
in

Recently appointed SEC Commissioner, in outlining aims of its
new
administration, says objective is to find out whether and
regulatory processes that have been set up
have gone beyond the scope and intent of the basic
legislation
enacted by Congress. Sa$s Commission has in mind
imple¬
menting the national economic policy of the "new Administra¬
tion, i.e., "encouragement of incentives that inspire creative
economy/' Concludes there'll be

our

publican

the

approach
with

time,

because

in office

subject

caution

for

I
a

the

of

the

at

present

have only been
month, and I am

lished
not

by

the

rules
in

or

that

but

cases

u n

that

what

to

say

I

is

you

spoken only
intermsof
aims and

am¬

bitions where¬

it

as

would

naturally
and

it

sible
in

tration

to

of

the

in

talk

of

accomplishments.
The

Armstrong

point

pos¬

terms

adminis¬

ment

which

the

banker

a

general

invest¬

public

utility

access.

set¬

financing plan, have

no

there

Exchange

similar

many

of

every

year.

the

new

seems

there

are

transactions

basic

A

and this
fundamental that I hope

bromide

on

am

passing off

by

you

saying

it,

game

men, and we

A

on

im¬
local

a

think this principle

are

In

short,

we

which

areas

this

group—the

the

term

Commission for

this is

we

a

tell

use

in

group like

"sophisticated"—I

I don't need to

tell

am

sure

this sophisti¬

cated

group what the scope and
authority of the SEC is. Briefly,
are in charge of
implementing
and putting into effect the
poli¬

we

regulated

Congressional and Administration
leadership the "encouragement of
those incentives that inspire cre¬
ative initiative in

our

economy so

its

productivity may fortify
freedom everywhere."
cies of Congress enunciated in the
We have, therefore, in the short
Securities Act of 1933,
the Se¬
month in which the new Com¬
curities
Exchange Act of 1934,
the Public Utility Holding Com¬ missioners have been in office,
pany Act of 1935, the Trust In¬ inagurated studies in all of the
Act of 1939, the Invest¬ operating divisions of the Com¬
Company Act of 1940 and, mission and in the Regional Of¬
finally, the Investment Advisers fices, soul-searching studies of all
the
regulations,
forms
and
Act, also of 1940. We also partici-' of
pate
in
an
advisory
capacity techniques which were in effect

denture

ment

under

certain

circumstances

in

when

took

we

under

aware,

for

Chapter X of the Bankruptcy Act.

niques

and

corporate
This

is

lation.

the

reorganizations

large

a

think

I

area

the

of

first

regu¬

aim

of

Commission, looking

new

at
these laws, is to study and review
the vast complex of regulations,

been

have

which

grown

up

statement
felt

to

objective

in

what

extent

the

tech¬
the

of

Act

undertaking

regulatory

pro¬

which have been set up in
SEC over this long period

cesses

thetically

true

where

effective
in

there

state

operation,

the

public

there

is

regulation already
for example, in

field, where
overlapping juris¬

the

state

Federal

Exchange
ties.

;

commission

Securities

Commission
as

The

and

mat¬

on

the issuance of securi¬

Public

Utility
Company Act indeed, in
has

and

utility

of

the

good

as,

often

diction
and

is

been

Holding
a

section

little

very

used,

specifically provides for an ex¬
emption where an issue is subject
to state commission
jurisdiction.
An

the

examination

and

study

of

regulations under these laws
Commission's staff could

by

the

not

in

success

and

of

the

of

itself

policy of the

Administration.

the

assure

new

having

as

we

start

We

out

fortunate

are

on

this

task

in

view

sympa¬

procedures

far

the

as

which

law

so-called

for

permits, the
waiting period

20-day
issues

new

beyond the scope and

than

whose

qualities

may

to

mean

suggest

prejudged

that

have

we

the

question, but I
think all of you in the investment
banking business are aware, and,
as a former practicing
lawyer hav¬
ing to deal with SEC matters for
investment banking clients, I have
been

aware

istration
1934

Act

of

areas

of the

the

Act and

indeed,

on

nel

has

depended more
the philosophy of the person¬
of

the

tering

the

mandate of

precedents
*An

try

Commission

can

be

made

more

I

do

that

suggest

effi¬

I have

not, by what
to

more

said,

in

stream¬

we

propose to relax

for

our

address

by

estab¬

Commissioner

Arm¬

types of fraud and over¬
reaching against which the SEC

was

intended

to

protect

ulation A for issues under

in

amount, that

strong
before a meeting of Investment
Bankers and the press, Chicago, 111., Aug.

culars

19, 1953.

more




provides

in
a
a

the

coming
of

an

the

in

in¬

$300,000

offering cir¬

present

ex¬

changes and it is felt, at least by
the industry representatives, that
the one year's period
could be

registration statement is in effect

shortened without

and

public interest.

unless

fering

the

time of the

the

time

at

at

or

of¬

sale

a

is

confirmed

Now

I

don't

endangering the

want

anybody to
am getting

a copy of the
prospectus
is delivered to the offeree or the

misunderstand what I

purchaser. A year ago a subcom¬
mittee of the Committee on Inter¬

Securities Act. The SEC

state

and

Foreign

Commerce

of

the House of Representatives held
extensive and exhaustive
hearings
on
the subject of the SEC. One
of

the

things gone into at some
length in these hearings was the
matter

of

spectus.
the

the

A

of

use

former

Commission

the

pro¬

Chairman

and

of

former
head of the Commission's Division
of

Corporation

Finance

that about 80%

brought

out

a

of the

testified

issues

new

offered

were

to

the

public by verbal offer; that is, be¬
fore a copy of the prospectus was
the copy of the
livered

the

that

seem

in

to

its

investor"

If

prospectus is de¬
investor

of

sale,

it fails to

purpose,

with

security.

Another phase gone into

before
was

the

and

prospectus.

I

am

sure

these

principles are approved by the
public and, although it is not for
a person in my position to
say so,
I

doubt

abandon

if any
these

effort to dilute or
principles would

receive favorable consideration by
the

Congress. After all, the phi¬
losophy of making a registration

statement effective and preparing
and delivering a prospectus to the

purchasers of

new

issues of

secu¬

rities goes to the very heart of the
"truth-in-securities" technique. I
don't

pretend to

solution

of

know

these

what

statutory

the

prob¬

will

purchase facts about
the issuer upon which to make
up
his mind before, rather than
after,
he has agreed to buy the

committee

pres¬

extent

prospectus

prospective

hearings

as

ently constitued believes sincerely
in the principles of the Act re¬
quiring a registration statement

lems should be, but I do know it

is intended by the Act to
give the

industry,

by these observations about the

would

some

the

as

it

the

at

at the

House

sub¬

the restrictive ef¬

take the

best

brains of

Con¬

the industry and the Com¬
mission
working in harness to¬
gether to evolve a satisfactory

gress,

solution.
In

connection

with

the

Admin¬

istration's

legislative program, as
it may emerge, we are fortunate
in
having two very fine Com¬

mittees of Congress paying par¬
permitting ticular heed to the problems of
regulatory an issuer or underwriter to feel
the Commission.
The first is a
procedure. These suggestions are
out the market, so to speak, be¬
subcommittee, headed by Senator
to be submitted within the next
fore
a
registration statement is Bush of
Connecticut, of the Sen¬
month, and I must impress upon effective. This
lack of flexibility ate
Committee on Banking and
you, who are in the industry, that
has led, it is felt, to the tremend¬
Currency, which in turn is under
I believe most strongly that our
ous increase in the volume of se¬
the
able
leadership of Senator
success
in
reorienting the SEC curities of prime issuers sold to Capehart of Indiana. The second
will depend to a considerable ex¬ institutional investors outside the is the House Committee
on Inter¬
Effective sam¬ state and Foreign Commerce of
tent upon the intelligent backing scope of the Act.
pling of the market before an which Congressman Wolverton of
and support for the program of
issue is brought out in many cases New
Jersey is Chairman. Both of
the new Administration which we is not
only necessary but desir¬ tthese Congressional Committees
receive from the industry. If you able in order that the issuer and have
had
long
experience
in
underwriter may determine with
have suggestions, please feel free
considering problems affecting the

improvements

in

fect

of

let

They
tion

us

will
and

know

what

receive
will

be

Act

in

not

the

relevance

some

to

the

they

careful

are.

atten¬

welcomed,

and

tions

a

issuer
or

a

market

to

condi¬

fair price to be paid to the
if it is a negotiated deal

price which

an

underwriter

SEC
which

and

some

the

we,

in turn,

invite

your

backing

could

reasonably bid and

augurating

new

of

the

studies

Commission is in¬

now

were

Continued

issuer

an

suggested

on

This advertisement is under no circumstances to be construed as an offering oi these securities for sale, or as
a solicitation oi an offer to
buy any oi such securities. The offering is made only by the Offering Circular.

Offered

as a

speculation

53,852 Shares

DOMAN HELICOPTERS, Inc.
Common Stock
($1.00 Par Value) 1

Price $3.00 Per Share
i

Copies of the Offering Circular may be obtained in any State only from such of the several dealers,
including the undersigned, as may lawfully offer the securities in such State.

vigilance

the

adminis¬

principles

Act

lining registration techniques for
legitimate financing of industry

vestor.
We notice,
for example,
laws than upon the
in
administering the revised Reg¬
Congress. Some of the

and

responsi¬

expedi¬

tious and flexible and the admin¬
istration of the laws
cient and economical.

mean

justification

speculative flavor, and in

simplify procedures so
legitimate financing of indus¬

the

for what the SEC has required is
difficult to find in
the statute,

and,

a

general

in the admin¬

1933

where

be deemed, broadly speaking,
to partake of an investment
rather

the

Securities

confirmation

and these organizations are ex¬
pected to submit to us comprehen¬
sive suggestions for changes and

broker qr dealer is required

the

The

made available to the

will be glad to know
Commission has met in

a

a prospectus with
every
confirmation of sale of a
security
within one year after there has

been
a
public offering of such
bility. I am referring to legislative
security even though the initial
changes needed arter all these distribution
has been completed.
years in these laws. Let me
give This bears particularly hard on
you a very simple illustration.
issues which are traded on

the support and backing
volunteered to us by the princi¬
pal industry associations in this
You

Act

to deliver

been

developed to simplify reg¬
istration statement forms,
reduce,

intent ; of
the
basic
legislation
enacted by Congress. Now I don't

gone

others

of

us by representatives of the in¬
dustry. As you know, under the
interpretations of the Securities

registration

itself has

will

for

primary

case

to

be

can

so

catalyst

a

the

the

se¬

have

a

new

but

in

competitive bidding deal.

The desirability of another leg¬
islative change has been suggested

unnecessary

the

process

have

are

in

issues

1933

for

and

that

used

new

the

criticized

complexity,

Commission

One

have

of

We

hampering effect
upon the free flow of capital into
over these
industry. The newly constituted

this program of review and
study
is to
find
out whether' and
to

the

forms

under

precedents, forms and procedures
years.

office.

example,

registration
curities

as

have

work.

areas

Union on Feb. 2
of
this year,
President Eisenhower cited as one
of the "grand labors" of the new

that

who

as

weeks with the
will take what
Also in our review of the
I have
to
regu¬ representatives of the Investment
say
in that light, I
lations and forms,
would
we
like
to
have in Bankers Association, the National
give
you
very
briefly a few of the ideas that mind
implementing basic eco¬ Association of Securities Dealers,
nomic policy of the new Admin¬ the Association of Stock
motivate and animate the newly
Exchange
istration.
In his address to the
constituted Commission.
Firms, the New York Stock Ex¬
Congress on the
State
of
the change, and others in the
I am sure I don't need

to

Now above and
beyond the ad¬

ministrative

can

Policy to Encourage Initiative that the
In Expanding the
Economy
the last several

you

Study of Needed Legislative
Changes

merely

reasonably accept
a

satisfactorily regulated effect that no
public offering of
by the states. This is particularly
security may be made unless

principle of

Administration,

so

won't think I

you
a

though

about

played.

just

that

even

which

regulation must emanate

unlawful is to get an interpretation
from our Trading and

Division,

we

mover,

fundamental

Washington.

ters such

at

is

all

For example, the
to be sure a proposed
stabilizing transaction is lawful or

only way

the
opening whistle has applies in all the
blown, the ball has been kicked, by the SEC.
but
the first
scrimmage is yet
be

the

or

the

football

SEC

the

However, if

public

executive

company

when

to

individual

or

or

holding
ting up

buried

are

is that the government should be
a government of laws and
not of

new

the

e

satisfying

were

J.Sinclair

b

pleasant

more

to

are

published

in

practicing lawyer,

you will
d erstand

in

interpretations

sure

the

from

Commission

reports,

in

think

available

even

which

level, and questions the necessity

be
I

problems

portance of government

relaxation

no

to

industry

Administration

believes

of efforts to eliminate fraud and abuses.

SEC

approach

securities

A

study which

-

machinery there is
the newly constitued Commission another
study which we also pro¬
is following is in line with the
pose to undertake, and this we
uo,
basic philosophy of the new Re¬ not
as
the
prime

to what extent the

initiative in

the

State

vs.

making.

9

much

opportunity for mis¬

SreeTie<mdCompaT\v\
ESTABLISHED 1929

Members New York Security

1

J

Dealers Association

Members National Association of Securities Dealers

37 Wall St., New York

Tel. HAnover 2-4850

page

26

Financial Chronicle

The Commercial and

10

Thursday, August 27, 1953

...

(726)

ample, aluminum reduction plants,
ing up to several hundred miles have been necessary to strengthen
from the point of generation. It our defense. We have no intention
is my belief and it is in keeping of cancelling these contracts; in
with our policy that we should fact we believe that, to preserve

Secretary of the Interior

much misinformation and

Secretary McKay, asserting there is

misunderstandings as to the Federal Governments
plans and policies regarding its electric power operations, ex¬
plains recently announced new policy on this subject.
Says Federal Government now operates only 1'1%% of electric
generating capacity, with little likelihood of substantial in¬
crease.
Asserts he is determined not to make power rates so
low as to violate sound business principles. Scores monopoly

rang¬

lines

mission

between

any

I assure you,

to

recommended

the

con¬

combination irriga¬

a

tion, domestic water supply and
hydroelectric project in Colorado.

involved

industries

the

that in the mohths
will follow these

we

have

we

arbitrary action that will
any consequential damage
to

come,

struction of

pro¬

we

to

recourse

some

principles. In fact, we have al¬
ready taken some important steps
toward
ihat end. For example,

no

either

group

This

is

known

the

as

Arkansas-

Fryingpan project. I cite this sim¬
ply to give you assurance of our
active interest in sound

reclama¬

of the area in tion and power
projects. Another
which these industries are located.
example is the recent award of
a
contract in excess, of $7,000,000
Will Follow Sound Business

that are designed to op¬
erate together. This is sound engi¬
neering and provides for proper
integration.

of plants

form, whether by private interests or by government.

to

pose
cause

provide the interconnecting trans¬

Certainly,

time.

time

plants, the Federal
ordinarily

should

Government

want

we

avoid excessive resale rates.

involved, these contracts may be
extended and even expanded from

efficient, businesslike operation of
the generating

event

of the regions

the sound economy

go down the middle of the road.
I firmly believe, in the interest of

many

in any

centers

load

miscellaneous

DOUGLAS McKAY*

By HON.

been made in

have

the past to supply energy to big
industrial consumers, as for ex¬

extending high, and
intermediate transmission lines to

Federal Electric Power

which

tracts

with high voltage

erating plants
lines but also

the economy

to

or

for

construction

the

of

Mon-

the

However, the policy of the De¬
Principles
Much
has been said and un¬
ticello Dam which is in your oWn
In addition, it will be the policy
doubtedly much more will be said partment of the Interior in plan¬
I am very determined the De- backyard. We will also start the
of the Department of the Interior
about how the Department of the ning, generating, distributing and
to provide primary transmission partment of the Interior shall sell construction
of the Sacramento
Interior
plans, generates, trans¬ marketing this block of power is
lines to carry power generated at l"s electric power at rates
canals in the very near future. We
important to the country. Too fre¬
mits and sells
are as low as possible but which
i

^

electric

quently in the past the marketing
of power has been accompanied

en¬

There is

ergy.

misun¬
mat¬

this

ter, and I hope
that I may be
able

make

to

position

our

clear.
I

partic¬

am

ularly anxious
to discuss this

subject

Douglas McKay

be¬

facilities., It

reclamation
clude

our

cause

tion.

in these plans

facilities for

policy and
this is the only power policy of
our

power

to

extended

other

and

to

public

or

agencies," but in recent years the,
various
the

under

acts

power

Department

particularly

of do¬
mestic and rural consumers," giv-

Will Not Oppose Private Power
We

«

i

i;

i

i

j

_

•

the Interior.

servation and wise utilization of
spread
Ordinarily our natural resources,

this

is

facilities.
of

We do not assume that we have
byproduct and
incidental to providing irrigation the exclusive right or responsibil¬
water for agricultural purposes.
ity for the construction of dams
We
generate
power
at
Shasta or the generation, transmission
a

Dam,

at

sort

i

Hoover

Dam, *Grand
Colorado-Big

Coulee
Dam,
the
Thompson project

and

many

and sale of electric energy
area,
in any basin
region. We will not

«thers^ throughout the western construction

or

in

in

any

any

the

oppose

sistent

c

An

Itr

of

operation

rtAA/I

KncmAOC

the

sys-

the

generating facilities which

par^. 0f that program,

a

The

Hells

Canyon Project

Another instance of
tion

of

our

an applica¬
policy is our

power

action in connection with the pro¬

posed Hells Canyon project on the
Snake River on the boundary be¬
tween

has
of

Oregon

been

Idaho.

and

much

There

misunderstanding

position in this matter and

our

I would like to

clarify it. Here, we
private utility seeking a

a

permit

from the Federal Power
Commission to build a series of
dams

on

a

stretch

the

of

Snake River.
The FPC is hearing the proposal
of the private

utility and it is the
Commission's responsibility to de¬
termine whether the proposal of
the

utility

company

will

priately develop the
"

nnrf n

ot-ii-1

sound

apppro-

resources

If

*

only good business and certainly
not, the Commission has the legal
it is standard operating procedure'
responsibility to deny the applica¬

for other utilities to
rates

at

lieve

.

review then-

EuiuULd

t*us»

oe

In

the

the

arily

with sound business prin¬

upon

seeks

the

advice

\

and

Department of the Federal Government, such as
negotiating con- the Corps of Army Engineers, the

past the

Interior,

efgy,

ap¬

assistance Of the other branches of

in

tracts for the sale of electric

con¬

investigation of the

plication, the Commission custom¬

policy

our

_

tion. In its

frequent intervals. L be¬

arid I propose to follow it.

thereof at the lowest

possible rates to consumers,

and

nance

is

_

power

use

are

be,

to

con¬

and

terns are constantly fluctuating. lt
inlxr

ing preference and priority to
public bodies and cooperatives;
i

continue

will

generating plants and trans¬
mission
lines
are
brought into
operation and costs of mainte¬

project shall be operated
the benefit
of the general
and

is

New

that the
"for

there

and

provide

operates

There

years.

growth in bur program

will

reclamation .p r o g r a m
p0wer

three

five

every

we

a

than

constant

and

tinue to be interested in

have

a

which

recognize the primary re¬
and in the Flood Control Acts, in
sponsibility for supplying power
which this Department is the mar¬
Need for Power Policy
needs for any area rests with the
keting agent of power generated
Perhaps I should first give you people locally. It is our responsi¬
at flood control dams, the Secre¬
some idea as to why the Depart¬
bility as an agency of the Federal
to
ment of the Interior must have a Government
give leadership tary is directed to "dispose of such
power and energy in such manner
power policy. A large number of and to give assistance in the conas
to encourage the most Wide¬
•our reclamation dams have

the Department of

generating

business

sound

violate

not

which we sell electricity should
he reviewed at relatively frequent
intervals and certainly not less

"municipalities
corporations

interested

are

do

municipal purposes." Later, this

was

public,

private enterprise.
is

centers

in¬

will

policy was released to the press generating electric energy when¬
and the public early this week. ever
economically feasible and
It was concurred in by the Presi¬ justified. We will also plan single
dent and by the members of his purpose projects that aire neces¬
Cabinet and I
c^n assure you that sary for the economy of any part
it is the result of a great deal of 0f the country and which can not
serious and deliberate considera¬ be provided by local, public or
This

load

to

within economic transmission dis-

by

derstandings
■on

.....

do not agree.

formation and
many

plants

^

unless
other- agencies, principles. The Department's rate
propagandizing. With this we tances
schedules shou 1 d provide adeeither public or private, have pro¬
We believe that this
vided or will provide these trans¬ quately for the cost of producing
power should be marketed for the
and transmitting the energy and
benefit of all the people of the mission facilities and make them
return to the Treasury the capital
available for delivery of Federal
country. It should not be mar¬
investment in all of the facilities
keted for the benefit of a chosen power at a reasonable cost. The
few nor at the expense of the Department will not favor build- together with interest over a period of not more than 50 years.
ing any duplicate facilities where
taxpayers.
In many instances, a part of the
this can be possibly be avoided.
To be more specific, I want to
cost of reclamation projects is be¬
In the Reclamation Act of 1906,
assure you the Department of the
ing paid for by excess revenue
Interior will continue, so long as the first of the Reclamation Acts from
power. This is a sound prin¬
I am Secretary, to actively plan which deals with power, the Sec¬
ciple and Will be continued.
and to recommend construction of retary was directed to dispose of
I firmly believe the rates for
such
power,
"giving preference

misin¬

imuch

{Federal

bxumwu

en-

the

has in most cases insisted
elaborate contract provisions

Bureau

of

Reclamation

others. This has been

and

procedure
and by ex¬
a

established' by law
this Department perience over a long period of
of agencies years. •
-'••"■■v .'
purchasing the energy: Especially
Only in recent
years
has
a
for the control by

ciples."

of

Sale
In

an

M

»

of

Federal

endeavor to

Power

give full ef-

the

resale

rates

,

miiiifni'ir

th«.

of any power facili¬

pose
of Federal power for the profit basis and for the benefit
interests, either
right to develop the water rebenefit of the general public, and of their users, and whose rates
,
+t„.private, are willing and
particularly of domestic and rural and operating principles are fixed
able to provide when these facili¬
recent instances, JSj Department
the
consumers.
In doing so, We will by the laws of the States, these
ties are in accord With the best
has appeared before the FPC pro¬
give preference and priority to provisions have proven onerous
development of the natural re¬
testing the issuance of any licence.
public bodies and cooperatives and distasteful. Furthermore, if
sources of the area.
The Department objected before
located within economic transmis¬ literally enforced, they would con¬
I would like to reiterate, as I
the Power Commission to the issu¬
sion distances of the generating stitute the Department of the In¬
have many times in the past, that
ance of a license to the
Virginia
terior as a rate regulatory
plant.
'■ ■ ■ , *
.,
'< ■ /
agency,
the Department of the Interior is
Electric and Power Company for
above and superior to the public
There
are
many
of
these
the
Fort
a dam on the Roanoke River. This
Peck
Dam
on
the but one of several partners, in¬
officials managing these districts,
Any
Missouri
and
other projects terested and responsible for the throughout the c o u n t r y.
case was carried to the Supreme
and frequently above and superior
Court oi the United States and the
throughout the whole United full development of the natural pOwer we may have after provid¬
to the laws of the States them¬
ing for the service, of domestic
resources of the country. We are
States.
right of the Federal Power Com¬
and rural customers through these selves.
a
mission was
partner along with the States

United States.
In

ties

addition,

the Congress has
made the Department of the In¬
terior the marketing agent for
all power generated at dams built
fey the Corps of Army Engineers.
Under
this
authority we
sell
power
generated at Bonneville
Dam on the Columbia River, at

Sometimes

when

is discussed there is
is

public

local

cmit,„«c

or

this

an

subject
impression

created that the Federal Govern¬
ment

that

and local communities and

citizens. No
least

the

of

all

one

the

private

of these partners,
Federal Govern¬

preferred agencies will be made
available to other utilities serving

ergy

domestic

which

and

rural

consumers,

largest generator of
which are located within economic
power in the country and that ment, should have a monopoly in
transmission distance of the gen¬
other public bodies and private the development of these re.
erating plants. Ordinarily, the Desources. In fact, the task to be ac¬
utilities are of little consequence.
partment will not undertake to
This is far from the truth.
Ac¬ complished is so tremendous that
it will require the active and co- dispose of power directly to large
tually, the Federal Government
industrial consumers, but we will
today has an installed generating °Peraftye efforts of all of us if
protect their existing contracts,
capacity at its various plants of
na^jon is .to be kept abreast of and their renewal when not in

approximately 9,800,000 kw. This
is only 11 % %

of all the generat¬

ing capacity in the United States.
There is another

Federal
tion

and

10,700,000 kw.

of

capacity under construc¬
by

1955

it is

estimated

the proportion of Federal genera¬
tion to total generation in the

country will be about 15%.
It should be borne in mind that

included in these Federal figures
is the Tennessee Valley
Authority,
for which the Department of the

Interior
Thus it

has
can

no

be

talking about

a

responsibility.
that

seen

we

States.
*An

any,

transmission lines

conflict

with

preference

cus¬

address

by

Secretary

at




be

resold

reasonable

are

discriminatory, but
reason

to

presume

upheld.

en¬

The Department of the Interior
also protested the development of

rates

at
and

non¬

see

little

we

tnat

the hydroelectric resources of the

Kings

River, here in California,
by agencies other than the Federal
Government. Here again, it was

uie

partment of the Interior is better

equipped to maintain this standard than
agers

are

the officers and

other

of

Therefore,

the

overruled

man¬

agencies.
Department will

not hereafter insist

the retail rates of

by the

Federal

Power

Commission.

public

In November 1949,. nearly four

controlling years ago, the Commission granted
power which1 it a license to the Pacific Gas and
on

there is

domestic and rural customers, in governmental agencies
which the Federal law is so spe-

are as fully
competent to determine the resale

the North Fork of the Kings River.

cific,

the

rates for electric energy as is the

with

disfavor

ft alSo granted a permit to a cooperative group of f irrigation districts to investigate the possibility

stjorig feeling thajt all
generated at Government
plants should be sold at the point
a

-

*

-

power

of

geppration—at the bus bar. This

is the very successful practice that
has been followed at Hoover Dam.

In the interest of

sumer

any

if

without

aid

or

as-

sistance from the Federal Govern-

Attitude on Transmission Lines
more

aggressive

policy

ad¬

■

will

look

power through

preference customers

our

will

have

the

effect

of

.denying power to

any

group

of

It

is

or

farm

users.

vast

series of hydroelectric plants

owned

utilities,

included

to

a

clause will be

safeguard

the

inter¬

'

?f ^uil<?ing » power plant on the
lo^e' river, below Pine Flat; Dam,
made the power develop-

ment of the river feasible.

This dam is

ests of the customers of these utili¬

ties. Ordinarily, we will presume

a

on

now

hearing

com¬

pletion

by the Army Corps of
Engineers as k flood control and

quite possible, of course, the de¬ that the regulatory bodies of the irrigation structure but the
power
mands of national defense may
States concerned will adequately development has been held up
make It advisable to deviate from

when this is an issue^we will act

a

Electric Company, to construct

public bodies and cooperatives. It will be assumed that local

on

these'

system of transmission lines, not
only tying together several gen-

sells to

large

a

household

ment.

A

of

this

;

protecting the

Department

obtain Federal

mission

i

any
proposal Department of the Interior.
industrial eon-.
In cases w^ere the Department
of electric energy iriay seek
.makeg contracts
with privately

whereby

Here the public and private power
interests build their own trans¬
lines

..

Federal Government build
McKay

Ctub, San Francisco, Calif., Aug. 21,19S3.

should

tomers.

vocated by others would have the

Luncheon Meeting of the Commonwealth

is desirable that Federal

should the Department of the In¬
terior build? On the one hand,

are

small pro¬
in the United

very

portion of the power

•

What, if

It

principles

and

certainly,

eon-

customers

of

these

utilities,- but it is conceivable that,
in

ln the national interest.
Undoubtedly, many.of the

protect; the

be

some

instances, there may not

adequate

regulation.

while

a

protest

initiated

former " Administration
ift

the

what

in

the

argued

'

courts.

Look

is

happens

when

one

In that" Department of the government in-

Volume 178

tervenes.

Number 5250... The Commercial and Financial
Chronicle

The

drags

case

in

out

court which must have months

In

consider

the

meantime

the

aberration

Under Gold

the

area

without

vitally

needed

goes

electric

power.

the

which

of

case

has

been

Canyon,
recently pub¬

so

licized, I inherited from
ecessor

did

situation

a

not

I

agree.

my

with

found

were

Power

Commission

license to

to

issue

a

public utility, and
offered instead a plan which

our

Bureau

of

de¬

veloped

but

a

Reclamation

specifically
two

which

failed

occasions.

we

had

Congress had
to

We

approve

do

on

.„hl

not

even

have

Congressional

a

tion to construct

authoriza¬

enables

hundreds of millions of dollars to

Hebert

such

future

a

a

project

in the

near

i

i.-

..

" under

project at Hells
Canyon and obviously very little
chance of obtaining the
necessary
build

iu

W1th the marketing

•

ter to

M

r.

F

"keep

his

feet

the
he

especially!)

ground"

self

~

as

are

protestant

a

Federal

Power

before

the

Commission.

We

continuing to furnish the FPC

has

every bit of information at
disposal. We are withholding
nothing. We are simply recogniz¬
ing the Commission as a legally

of

mercial

constituted

In

realize

that

Congress specifi¬
cally denied the right of the De¬
partment of the Interior to pro¬
one

ceed with this

Congress
matter

We

project and another

failed

was

are

to

act

when

the

the

but

resources

do

we

of

this country,
that it is a

believe

task to be performed by the Fed¬
eral
Government,

public

agencies

all

zens

and

working

hope to be

States,
local
private citi¬
together.
We

constructive partici¬

a

pating member of this partnership.
Opposes
1

I

form,

Monopoly

not

like

in

Any

Form

monopoly in

whether it

be

any

monopoly

a

of

individuals, of corporations

of

the

Federal

Government.

or

Co¬

operation and competition are the
principles which have expanded
America to its present tremendous

potential.
ment,
and

The

the

States,

in

make

agencies

all be uti¬

can

comprehensive plan to

a

America

do not assert

terior

Govern¬

local

private capital

lized

to

Federal

still

on

stronger.

We

behalf of the In¬

Department all wisdom

America's

make

future.

want

contribution and in

our

things

sphere and
which need

which

others cannot

proper

We

to

do
be

to

as

to

our

those
done

auestSn

£

h

EWilson

The

whole

is

(Special

B.

to

The

Financial

point to the Wilson

that

no

This has behind it

ard of value."

ANGELES, Calif.—Sidney

Hook

with

has

profund mathematical truth, to
use of numgiven

meaning that
intentionally,

any

to

it

in much the

same

acquire

except that in
money and prices a

the

of

and

law)

is

In

that words

way

meaning,

case

social

political function

(the

requisite.

of

ments

Such

nature.

relations

surds, like pi. Even pi,
however, could be taken as .3183
instead of 3.1416;
be

the

ratio

that is, it could
the

between
a

radius

circle

in-

were

pi it would

the

still designate
geometrical pro-

basic

same

rube

of

its

in

Barbour

of

terms

choice

many

was

Turner-Poindexter

and

Prior
own

thereto

investment

officer

an

he

of

Co.

&

conducted

business and
First.

his
was

California

Shearson, Hammill Adds
(Special

to

The

Financial

Chronicle)

BEVERLY HILLS, Calif.-Justin S. Federman has become con¬
nected with Shearson, Hammill &
Co., 9608 Santa Monica Boulevard.
He

formerly with Hemphill,

was

densities

the

LOS

to

The

Financial

ployed
ments

staff

Sutro

Building..

&

Co., Van




Nuys

(in the

GM-

w

c®ntract)' against!

the

money"

as

The

"tight money" which the

Administration

in

Clearly, with

sufficiently seri(which today is due
printing-press bills but, to
fountain-pen ills in bank credit),

ous

inflation

have

not

to

as

coinage

can be

food

more

bring

traded for
metal

as

that

coins

as

ii

will

it

not

tries

to

enforce

contracts

clause"),

to

rising or falling prices. That the
"authorities" here and abroad do
not know how to do this is per-

pay

(as by the "gold

coinage

will

driven

be

v.*.

i.

has

attempted

to

several

the
to

measure-

get the ratio into

terms

for

the

records

,

The density of gold is a natural

standardize

the
in

can

authorized

means

accuracy

science,

for

to

determm-

of

measure-

commerce

None of these

and

need money that is
tight, but not too tight. Such an

since
not

these

are

biological,

i.

e.,

purely physical, in determina-

depends
on
the
but not on that
which money

equilibrium

supply,

money

as'bunio^fallVrn1'pric^Ter^' Xn^The meansTy
coins

of

it

takes

to

a given weight o'
metal than the metal costs in coins
already in circulation. Driven by
the

unemployment

piy?

produced

depression in

a

counterfeiting

money

from

removed

or

work

system

price

the

ing

dependably.

persist in think-

As long as we

by

ing of
specific

suo-

develops,

to

circulation is not only a moral
problem in the theory of usury,
but also a critical factor in mak-

an ounce' mintinS the coins
becomes increasinmv
profuaou
because so many more coins can

such

added

js

buy

not

representing

as

money

goods in commerce (be¬
is "secured" by "col-

it

cause

get rid
0f the rats
(of inflation). What
could be more obvious than such

for
i. e., its

the

of

use

easily

are;

metals

base

detected,

which

in

but

through
blindly burn

lateral" when it is issued

the

"loans")

bank

privately

struck
in
silver, I believe, back in the days
were

(destroy

house

the
and

merce

we

industry)

com-

to

of money,
pur0f the
depressed thirties. They
chasing power, plus the proposi- may have helped, in a very small a result from the "qualitative"
tion that that responsibility can way, to cure the depression which,
regulations of "consumer credit"
only be fulfilled by controlling however, was
effectively rem- bv the Federal Reserve Board?
its supply.
edied only by another World War
withdraw credit by decree from
Mr. Bratter makes it quite clear splurge
in
public spending of financing
automobile purchases
there

is

possiblity of

no

re-

deficits

(filled by bank loans).

old and
Withdraw credit
general, by "tight money" in
the relation between banking and
the public debt, and the whole
economy goes into the doldrums,

stability in prices is

nationwide,

a

bring

it

the

to

mint

public

for

a

keting, and hoarding in

a
laissez
faire policy of the type set forth
by Adam Smith as an "unseen

banH";

money"
0f

for the

The

verv

no

taken
of the
"Treasury-Reserve Accord" at its
inceotion
under the Democratic
Donkey; but no, they had to try

"precious"

or

as

"man

the

on

the street" but also

forthwith

such

persons

hand

see.

and

that they can
price

governmental

seek a
that is,
wage

"supports" against "chiseVrs
who
depress prices to
cutthroat"

levels

and

useless
usefuj

arp

froolv

"making change" which
use

wage

and

key; why fabricate

kept

"freezes" and OPA-OPS "police mechanism
power" against 'profiteers
who
"rob

the consumer" with inflated

prices and profits. It is, however,

that the hand

impossible

or

copper

miner

As

his

*

fj

{h

,

h

d

Speculation,

we

munism

supplier in determining

expenmen

run

a

we

Offer

<

Corporation
Share

Write Us for Free

Offering Circular

—

No Obligation

<
•

TELUER &
EXCHANGE PL, JERSEY CITY

2, N. J.

CO.
Tel.: DElaware 3-3801

Isaac Newton, one

to

correct

this

(Free telephone from New

so

"long
"social

in
or

.

failed

be

shall, as
eyn^s
Continued on page 28

science

mere

i

of the "great" mathematicians of

history,

In such

Never'

The illusion involved has arisen
coinage.

capitalism

versus

resolved. JNe

Large

or

a

r

process of trial and error .
arW
of the mess over Com~

'

and

Telephone

Illusion of Coinage
from

such

bv

,,?

Price 15 Cents per

.

price levels,
.

qoived

COMMON STOCK

the

o{

.

money

a

(as

costs

Karl Marx ais0 believed) can ever
dj

,

Plateau Uranium Mining

f

and

a

gold?

public debt limit to balbudget! Can this prob-

of an

what-have-

or

such

of

in

the

lem

of no

lock

naivete

a

mmkhment

J?SH52SHSSSE5HSH5H525H5H5E5H5ESHS25BSE5E5Ee5ESE5H5E5E52525E5E5E5ESH52SS5B5E5E5S5H5S525ESESg

.A

silver

out

under

is

result

with

themselves

jng the

abacus

an

the

.

ance

on]y jf thev cirT iko

to have

enough

that nas taKen
p
the last-minute furore over rai

the verge
for

iree1^
c
coinage is a counting device f

,

,

coinage,

cu;die

when

..

this

For

on

in

NRA

(remember

price

gold teeters

heing

coins

changes.

level

price

should have been per-

from

hint

the

greater ner com

scarce

GOP

soicacious

certainty. Since the co«;t

a

minting is

collapses.

new,

worldwide, control of coinage at cost, as against selling
the money supply such as cannot it for other use. This, however,
be relegated to gold mining, mar- oniy makes speculation in "hot

or even

the market for cars,

and

_

1

economic value relations of trade

We

7).

p.

down

determ-

physical quantitv, howbe made to define the

July 30,

and Financial Chronicle,"

hoarded, and hoarded more
and
more
as
"cheap
money"
(credit money) 'declines in value,
On the other hand, in deflation,

coins

the

responsibility

you)

law

Stanford

at

pure', precious metals. Some such

truly constitutional idea that
the Federal Government has ex-

ficially, determined. The Bureau
of Standards, in its primary funchy

by
Marriner
("Commercial

offered

that

as

Eccles

e.,

the number

in-

mnnpv"

"+io'Vi+

formed criticism of "tight money

in

NRA or OpA» 0

is

witness such

obvious;

fectly

T

this

fact; but its numercial expression
is a "fact" unnaturally, i.e., arti-

tion

in

kept

and

only if bank credit can be so controlled in its supply as to prevent

stay in circulation but, if the state
in "legal tender"

gold can be
circulation

that

follows

coined

can

of it to live, not even

any

"trace element."

It

much

so

tnan

a

supplies,

food

with

contrast

implement,
pursuing
the
GOP
platform, has been in accord with

days?)

"constants,'

*

inants of

v

the

e.,

measured

.

ever,

of

in

industry.

Greenspan has been added to the

their

physical

elements

i.

example),

made

Chronicle)

ANGELES, Calif.—Harold

a

clause

reasoning
defense of

can

gold is not perishable or of much
real value in toto; nobody has to

a

0r

SSSSiK1

ments

With Sutro & Co.

the

of

between

other

any

ing

Noyes & Co.

(Special

for

(gold,

numerical

Company.

commodities

His

this case the il-

In

treasury.

lusion
ju

not

ject. So when elected to Congress

inThus

spatial and material content, like

for

supply is excessive or de(a sum which is obviously
fixed quantity).

money

natu-

is

years

business

the
tue

ficient

reason

ratio

formerly with J. A. Hogle & Co.

be maintained and the
dilemma sustained longer because,

by sunposed students of the sub-

investment

the

in his

lie

are mctuc ui cujcmuuig
<hc made of according as

not

are

number

arbitrary

an

The

radius.

point is that size relations

who

in

is

Ricardo pointed out, metals, they arp more liable to
Smith was inconsistent on money soeculative dealing by "monevportion in centered spatial rela- supply and money value. Thus the chancers" because the seignorago
tions, in this case the ratio be- "hidden hand" of money supply marein is varied so much m°re bv
tween
the
volume
of a
sphere is, indeed, unseen not only by shifting costs of minin^ due to
the

volved in determining usage.

been

gold).

be

may

& Co., 559 South Figueroa
Street, members of the Los An¬
geles Stock Exchange. Mr. Hook
has

be
so.

that

numbers

often

are

rally;

Rogers,

not

It

lying on a "gold standard" in
"Free" coinage is an attempt to
"dimensionless" in
use,
that is, fulfilling this function; fiscal and make private enterprise in minthave no relation to size, in demonetary means can never be jng legitimate. The owners of
.scribing relations between the ele- eliminated. Basic to this effort at metal
may
"freelv"
choose
to
physics

fixed

Smith

different

"value"

have

can

is

metal

commodity."

in

Diefpst "
Digest,"

policy, would
readily aided—if not more

bers

not

'

Fixing Prices

Commis-

thisJ™e> % spirai of de- be struck from

"tight

elusive

associated

becorrle

Gross,

"Rparipr's
"Reader's

charge that because it promotes
nSmg u^S -icWef °f -which is the
wage blll) 11 giyes aid .and <:om~
f(>rt to the "sPiral of inflation."

wit, that no cardinal

and

Chronicle)

of

S?° Wagu

a

and coined

is

1 upon

which

flation, which can be induced by

therefore, can be selected
by weight as a "stand-

None,

called

LOS

,

commodity has
numerically fixed
value.

any

thp
the

escalator

inhiseoic

Cai£a„, :^I!r
c> g
w
ess.

stead of the reverse. If 4.1888

Sidney B. Hook Wilh
Gross, Rogers Firm

he

Jui f£

and circumference of

do.

"qound

eSw

if

afain will

view

constant

directed toward

was

the

another

a

do

Alden A. Potter

TiiJ nJrfirire

Charlls

not
can

those of physics
strategic devices.

(including

base

the

does

merely

in
in

values

^S"v^lu^ns?andard"OIforh

vitally interested in the

of

there

valuations

feasible in coinage,

and

out of use by "Gresham's Law."
price in general is determined by It will be melted down or used
the quantity of money and not
where it can be traded for its
by
the
relations
between
the metal value—or not used at all.

advocacy of
gold coinage
(July 16) he

»

base

It

that

As Mr. Wilson reiterated

recent

before it.

not

ticlp
article

Chronicle."

not

to

but involve

and

his

no

are

"Com¬

ultimate sound development of the
natural

to

Financial

does

civilization.

be

columns

our

evolution

however,
physical

which

develop(if not

even

the

human

con-

tributed
the

in

follow,

in the articles

with

judge in the matter.
This is particularly true when
you

on

of

process

extinction

denpminations are neither needed
nor

they
m«=.y

.

competition,
involving the uncertainties of in-

ment and

Mint

Recoinage
coined

Di-

as

will buy less or more of the metal

.

biological

evolutionary

Brat-

authorized.

were

these

and

i
^-P
es
the novation (and obsolescence) is the
le??mg governments en- ineluctable, natural fact of this

circumstances, the
Department simply withdrew it¬

if it

even

Under

....

tion;

the

of

usage

served

If
gold
could be cheapened
(technologically) and money stawith the money supply,
bilized
(by
rational
laws)
it
If that supply is
inflated, or de- might be feasible to coin gold
flated, by banking practice (as in again as a way to unearth the
Federal Reserve "credit control"), now
useless
Kentucky
hoard,
the goods and services which the Meanwhile gold is "just another
coins will purchase decrease, or commodity" serving only to perincrease,
accordingly;
but
the petuate the illusion that price can
relative value of the metal (un- be
fixed
by
government
fiat
coined bullion) remains the same, and/or subsidy. Like other price
i. e., its price rises because it is "supports" it gives a temporary
"just
another
commodity."
In illusion of stability which turns
other words, the coins, as money, out to be a dilemma for the pub-

on views whether gold is "just
commodity," holds coined metal is not "just another
commodity," but is tied in with the money supply, and its value
is affected by the volume of bank
credit and banking practices.
Holds gold can be coined and
kept in circulation only if bank
credit can be controlled in its
supply. Advocates use of a
food price" index, in
place of a general commodity price
index, in measuring value of money.

protesting the right of the Federal

he

British

another

tied

another

I

cardinal

the

For

sion.

"just

Mr. Potter, in
commenting

pred¬

which
we

headed

Bethesda, Md.

Hells

in

when

of

rector

By ALDEN A. POTTER

Disagrees With Predecessor
In

numbers

Coinage, Is Gold
Inst Another Commodity?

testimony.

to

years

or

11

(727)

York City Dlgby 4-4500)

The Commercial and Financial Chronicle

(723)

*2

to $10 and then

Income Stocks

income

was

11.4%.

But

dividend

BERRY*

By KENNETH V.

to

Wellesley Hills, Mass.

Security Analyst, Babson's Reports,

dropped further to $34. At the end
of 1948 then the yield was still

hi?h

°"

price

of

third

in

of

us

dpnpndent

ther

In other
purchase 225
around a year shares now to return $337.50 in
from today.
I dividends instead of $150. If some
feel confident happy
day
the $2.50 dividend
that
you
are should be reinstated then it would
all
optimists mean $562.50 or 121/2% on the deand are look- pressed
price instead of 7%%
and

assume

will

we

be

words, $4,500 could

ing forward to
cashing nice
fat

dividend

checks

a

now.

am

I

glad

to

fiave the

opportunity to give you
a few suggestions of issues we at
"Babson's Reports" have recomcontinue

and

tiigh regard for income
Before

few

covering

their

investment

there

are

Perhaps

who

you

finriin/

like

^cirphip

it'

znlrtht

of

considerations, 1o

greatelln-

seek

from your investment funds,
beautiful
young
lady
all

come

A

■during

her college career, went
steady wnn the campus leading
with me
sieaay
leaamg
athlete. Upon graduation much to
everyone's surprise she up and
married

lionaire
senior.

are

and

cumstanCes
.

higher

Jl

of

ffxed

Your presence here this after-

of set-

The

stocks

securities allows
We realize also that many

Semi-stable

an(j
them

if

out

f

year in and
can have con-

satisfied

quite

are

they

conservative

common

issues

grade

demonstrated good

industry

that

could

Dosition)

we

would rather hold

^the
latter's recent

a

of

lines $1 were mainly a return 01 capital

supply

Industrial

the-.

common

vears' dividends

for
with

earning power

even
under
severe
depression
conditions, of unquestioned finan-

?eir security holdings. Fluctuatmns in the market prices of their

c#rn Pr0(lucts Refining: This lighter blue shade of chips-aver- wide assortment of other Indusieader in its field stands head and age grade. They are somewhat tries, gained its good reputation
stocks ar6 not of first importance shoiilders above its nearest com- more susceptible to variations in early in specializing in machinery
«> this special group' They 4° n<k petit on You Udies know it as market prices and to a lesser ex- used in making and packaging

Malola Salad

Ka°ro

Oh,

Corn tent

in dividends also. The risk tobaeeo products Serves food and

Syrup and Kre-Mel Pudding. Ex- element is a mite more, so to
SL^'l
j^lme The? Pension of new products is brisk, speak, but so is the yield.
usuallyghave been seasoned thru Now, novel items (Zein protein Pullman Inc.: This holding comPYnpripnpp
vi/us experience tn the fact aenvauve usea in manuiaciure ox pany>s main interest is in Pullto thp fact derivative used in manufacture of
Fhat anv sizable dpclinp in the synthetic fibers; Glucuronoiactone, man-Standard Car Manufacturing
oiFahlP decline in the, synthetic fibers; Glucuronoiactone,
that
JgV market musttsumteInositol, for arterio- Co the world's largest manufacbe
accom-for arthritis; k
t
k
stock
accom. ' for1 arthritia;
accom
£
for^-arterio„3ady for commercial turer^of railroad freight and pasi d b
shrinkage in the total sclerosis) are ready for commercia
turer 0f railroad freight and pas1

"

f

0;j

the

sharD

packaging industries also among
others. In recent years company

^Activity tothe?dlfens?program
i

basis

the

past

of

Production. On the basis of past
u

•

J??

center

cars

In

late

vears

senger cars,
cars.
In late
in late years
P.a"y has diversified into

has

heavriacklS S

lc^h1r"iMCKiog oi

_nv

stoutish, balding milnearly three times her
tneir estate values.
rneir hope
af their estate values, Their nope
Upon being queried as to
that
although
the
principal
a

three

areTu|geTtionT

from cial strength.

income

adequate

following

this

bv

...

noon

income

types

similar in type to those used foi* as the dividends were only parshoe making are being pushed. tially earned. Current yield at
Some 30 piants around the coun- very reasonable price of 24% for
try are adaptable to defense work, the stock is 8.J.%.
'
outlook for this company is much
For those- of you desiring
better than it has been for some greater
stability of principal
time
Long suffering from the while sacrificing some income, as
sqUeeze of rising costs, materials, compared to the previous common,
Wages and development expense, stocks, we suggest the purchase of
some relief is at hand from higher the following conservative grade
rates charged for its leases, with issues which provide fair income,
m0re help on the way. Financial
American Crystal Sugar: The
condition
of
this
company
is 'company is one of the leading
strong despite generous payment producers of beet sugar in this
of earnings in recent years. We country with a good performance
look for earnings of over $3.00 record. Its 4V2% Cumulative Preand expect that the $2.50 dividend ferred $100 par issue is small, only
will be continued unless it be- 58,969 shares and dividend recomes stylish to go barefoot. Mar- quirements
have always been
ket price of 40 is a long way be- comfortably covered by the comloto the 1946 high of 84%—yield pany's earning power. Currently
6.2% Depressed price over-dis- selling at $90, it yields 5%. Call
counts temporary disadvantages, price is 105.
like anti-trust suit, which we feel
American Machine & Foundry:
are being overemphasized mar- Another leader in American inketwise.
dustry specializing in automatic
The next three issues are of a and semi-automatic machinery for,

course

program

in

of

shoe

tries.

30% stocks*
-

359

manufactured

+

indicates you are interested
in income stocks, These I am going
many
whose cir- to discuss briefly in four parts,
limited funds re- Remember these are primarily for
level of income income.
/

current

SeT%

must

vou

stability

realize

\Ve

/here

.

stocks

the

of

stage

sacrifice

DrblcjDai

f,

this

the

or
of

L-f
l°
TV, automobile and other indus-

better

uoon

prepared to
accept the costs. Otherwise you
should follow our flexible program which is 70% reserve (35%
bank and savings and loan deposits, savings bonds, or shortterm governments and 35% fixed
ijlcome bonds and preferreds)—

uh-

,mnn

vmi

at

mn<,f

to

exDPct

tinuous

Wnmp

funds

of

some

are

I

c^ain
that

considerations

nriSv L

because

issues

preface my list with

remarks

important

in

Tf

fnr

purposes

I mention these

would like to
■a

hold

to

8p#ftIllll

J*, (n"n'me

j'ease

1 /o operating stability.

sue squarely and be

currently.

year

from

7V2%.

yield

to

today

the

than average income.
1 he first
thinS y?u mas* d°. ls mak® UP
y°ur m.lr?d what it is you choose
to sacrifice. If it is enlarged income later on, or safety, or appreciation, you must face the is-

investment of $4,500

1946, the

Qf

and the $2 dividend should
be well covered. Though the stock,
is non-cumulative, in 1947 when

come

Machinery* About

and 0uti00k for the shoe

comDany

need

i

and am dependent upon

fur-

go

h

do

195$

a deficit of $1.43 was recorded for*
the class A> the dividend of $2
:ndus+rv
js
good
for this vear
was paid just the same. ConsiderManagement has developed
the very strong financial cony activities and markets outside dition of the company (no funded
the
shoe
industry
that
could debt and excellent working c&pi~

.

to

some

rnachinerv

.

would be returning $150 or a 3.3%,
than that whereas the stock can be bought

will

.

declined

point of sacrifice.

mXh^ 1

Railroad

Pennsylvania

of

shares

minded

•nended

had

with cer-

misticallv

Kenneth V. Berry

•

amount

shoe

t of 10 shoemaker6

9

50%. Today American Woolsells at 17 and no dividend has

over
en

unjted

«!f .ordinal purchase
$70 but note - that the

principal

had an unbroken dividend record
tain assumptions.
First of all we since 1848, but where is it selling
naturally assume that we will live today? At 20 and probably paythe
day
out.
The more opti- ing $1.50. If one had bought 100
We all start each day

$12

from

the stock dropped to $40
when $8 was paid the stock

$10

and

sacrifices that must be made by in¬
vestor seeking stocks offering good yield, suggests as conserva¬
tive grade stocks that offer good income: Corn Products Refin¬
ing, F. W. Woolworth, United Shoe Machinery, Pullman, Inc„
Greyhound, Curtis-Wright Class A, American Crystal Sugar,
American Machine & Foundry, Virginian Ry. Co. 6% Preferred,
Columbia Pictures Corp., and Hnudaille-Hershey Corp.
Mr. Berry, in pointing out

I

when the

notice that
reduced

Thursday, August 27,

field has enjoyed during the last cent defense program, of course,
five years. Longer term outlook is the
military
portion
becomes
for further gains. At current price highly magnified. Unfilled orders
of
45
this
issue
yields 5 % %. and letters of contract as of June
Another depression tested issue 30, 1953 totaled over $1,050 milwith dividend
record
unbroken lion vs $950 million a year ago.
since 1912.The Class A is attractive for in-

$8 respectively the

still high at 14.3% and

was

...

?.rders' Whlle f °wthtoand operauons are accusromea
wns Drefer^
are accustomed to variations
be
cSm- the Preferred i:u ^ o qwis fnm_
dividend
well
\ *[,„
comf
w
■

other
it

affords

a

price is $106

the7most ifn-

=i^ry, mTb

profit margins in the
country's food industry. The comr
^on is preceded only by 245,730
shares of ultra-conservative noncallable 7% preferred stock which
has never been burdensome in

recognized as a leader in fluorocarbon plastics which is rapidly
becoming an important segment
of Pullman's business. Earnings
may be. uo 10-15% this year over
last, to garner at least $5 per

hut it
come

Sacrifices for Higher Yields

involves

a

special

danger.

Experience shows that the higher

*

The point I would like to make
4s that if you reach out for much

than

-higher

sought, the
greater the risk of principal loss,
yod We are great believers that con-

yield

average

*willt probably be giving
.sacrificing
ipoint. I
possible

thinking

First:

In

sacrifice

creasing
date.

of

tinuity of income is far more im-

of three

There is another point with re-

now

sacrifices.

'

size.

current

Do not allow yourself to bfe lulled

the

income

your

prosperity.

for

gard

possibility of in- into

We have had

at

a

later

long period
Earnings and divia

exceedingly gratifying since 1938.
But I am sure you will agree with
that at

mere

you may be expected

-dends have been for the most part

me

portant than its

to
common
stocks
about
which I should like to caution you.

reaching

tiigh income
to

up or
desirable

other

some

am

the immediate income

a false sense of security that
might have accrued from watching
the upward trend of stock market
prices during the past - decade,
There are many people who have
forgotten that there is another
direction that the stock market

future date most

has

of

one

Passive

t

modern times. Company has en- share. Despite adjustments which
eventually must be made when
huge military business is cut back
future outlook is good. Exception^
aiiy strong finances—net working
capital per share as of June 30,
1953 was equivalent to $50 per
which a good many - investors share, more than the stock is cur-'
owning it seem not concerned reirtly selling for at $39, Yield
with its market price action. His- is ^generous at 7.6%. Dividends
tory has shown the dividend pol- have been paid since 1867.
icy to be quite liberal on; the. - r •
,
average over the years, more so
when earnings are lower and

joyed favorable corn harvest and
reasonabie prices this year. First
half results were up sharply and
we have estimated - this, year's
earnings around $5.30 a share,
This is one of-those rare issues

q

can take besides up and sidewise.
paying liberal Remember too that some dividividends and selling quite high dends have been very liberal dur- more
conservative during boom
will be paying less and
selling ing these past years and those are periods.
This - is
a
depression
much lower. If you are not
likely also subject to reduction. When- tested issue and noted for its marto be forced to sell them during a ever we have had a business
der ket price stability. Stock may be
depression period, price and vari- pression (note the red areas on comfortably
held
for" income,
'ability need not necessarily be a our Babsonchart) common stocks Yield at current price of 72 is 5%.
■serious
matter.
However,
you have sold considerably lower than
p vu Woolworth* This 5c to $50

fitocks that

must

some
are

now

recoenizp

;i ™°8mz.e

overboard

and

that

if

r131'

vnn

"

y?u

^

nmir

-

xmti

thp

tne

nrpvinnc

previous

nprinri

yield will be

even

more

lib-

feature of this road is the benefit

it derives from the "gravity" feature of its operations. With its
favorable producing areas located
in the mountains and with a
larger proportion of its tonnage
moving to the seaboard, the Virginian has exploited p h y s i c a 1
characteristics by electrifying 135
miles of its main line between
Mullens, West Virginia and'
Roanoke, Virginia. It is. reported

that the electricity generated by
two loaded trains descending the
Kexwise aurmgine past several gradg can put back into the line

years. It has, however,

?Q5!Jce m?ome • aurV*fjL

provided enough power to haul one loaded
Aflrr?f' train of similar size back up over

earniogs are .Dexter, ax ixs ^be grade it js further said that
present rate resuixs will quixe tbig eiectrificati0n saves the com;fikeiy .be petjveen $i.do-$L.4U giv- pany nearly 50% per gross ton mile
?0I?u0rI?
^ar^ln
^°yer" in haulinc costs In addition there
•

nf

period

vpar«

now,' you
will lose the oppor- self now for price variations later
tunity later,-when stocks are de-'on in that portion of your security
pressed, of buying issues on which account which is hekd- primarily

the

,

Virginian Ry. Co. 6% Cuthulative Preferred $25 Par: This is our
tnird suggestion for the better
grade income preferreds. This
road while small has had a long
record of good earnings. A unique

I V' vyo?iwo«n« mis oc 10 pov age to the $1 dividend maintained m nauunS cosis. inaaaiuon, xnexe
ot -variety chain's sales are running ,jfirsntf fv,p l nn«t fivp
Thp
is a saviric of'brake shoes
since
prosperity. So I emphasize once a+ about the same rate as last during tne past live years. The s a av ng 01 oraxe sno s,
again that you must prepare your- vear'^record oerTormance Profit ™orld s largest 5amer of^ter- the braking effect due to the
vCct|1 ® lCLUtt peiiuixuctiicc. iriuiit
t
nasseneers
has exoanded its

Hnrin?

g° "unng

place all of your
free funds in high income stocks

p

^ ,7/15f4

for liberal income.

j_

i.

city Passen|ers has expanded its generation of electricity tends to
operations by numerous acquisi.
thrust ,
the
SexSZsioS toSsS' tiofS °J lher comPanle.s m the ?
f X * ^us' on
"ZmTcii^hf
field: p"r«»er earnings improve- downgrade. Outlook for this stock
.

margin is"e^aed to^show
eainhoweveTfrom

srnne

storetacrove-

on

era''ha" at

present'v '
'
Third: Unusually high dividends fo ?t lea'st^O. Slvidendrale S ^^atTs^ichTa^e irsid^rTbl?
ctory ar>d at C"™\PJ7
"Pennsylvania'rIIi'8 ?h" spacifi<; stpcks frequently, al- $2.50 looks'safe for some timebo
of 27 it provides a yield of 91i%,
seninrirn
lAl" th°U^h "ot always' ,lmply w.eak" eome English subsidiary (52.7% mode/ f travel At Us current It is non-callable.
tL
45 and ness in those particular securities, owned) is larger than most people
{
f 13V
th
yieid js 7 4%
The next and last three pre*2*°. the.prevlous year. Take the case of American Woolen realize with about 30% as many ^
°e0ple tra??l by bill during ferred issues
suggestions for
previous 12 month's div- which earned $21.05 in 1946, sold stores as are on this side of the
"b.X^ nthpr"
5,/2% which a? a high of $™ ond paid $12 in Atlantic. It is hoped that more
by °ther m°re average .grade situations furnish¬

Wn 1946
road

was

S nS

more

™

Pr
'

.

•

are

StS!?
jctnfk

md

mn

ir a •w?,

reSarded dividends

oosylvania Railroad has

•A

talk

Babson
ew

ices

this

.....
„4.
IU.
if

.

by Mr. Berry

Summer
oston, n.

at

Business

the

Ann„9i

Conferences,

Aug. 25, 1953.




or 17%. To some novgood for income

looked

-

•

■

_

income
this
,
i

can "come home"
investment soon. This
.

.

.

.

.

•

,r.i

issue
.

i

Curtiss-Wrigbt
.
\

.

it it

a.i.
41

Class
.

A
i

*

at the
and earnings were. has not participated m the stock cum.): More than one-half of this
$15.37 in 1947 and $15.92 in 1948 market's general rise or- more company's business is normally
and

though dividends were reduced

specifically' in

the

rise

its

own

higher

ing

from

also
cfn

a
.

yield

higher

„aT.Vofwl.__

but

containing

element

of

risk

nrprpd.

stockmarketwise than th^ p

.military, during the war and re- ing preferreds. We do feel, how-

vertible

payments are

dividend

the

ever,

Pictures

Columbia

the

1%

shares'of

Corp.; Con¬
strongest of

the

of

one

been

in

but

varied

have

most

own

satisfactory and

com¬

tive

selling

pany

Stock

stock

stock

is

vjelds

63

at

callable

this

of

at

107

com¬

6 7%.

facturer

of

bumpers

shock

and

for

of

available.

of

Truax

6.2%.

Manu¬

at any

common

and

While the

refriger¬

pears

industries. Financial condition

the

ex¬

to

This

two

is
of

time Unless called.

wasn't

ap¬

debacle

than

that

of

previous issue. This company

is well equipped to withstand the
trials
and
tribulations
at
times

is the

common

Cumu¬

to this

industry, than

lative Preferred stock is well pro¬

most others in it.

tected

levels

has

consistently
profitable the results variable as
industry. The $2.25

selling
paid to the rail¬

enough to drop the carrier in¬
dices
momentarilly to new
low

are

for

the

year,

is

and

con¬

able

take

to

have their bonds

steps to

re¬

Sept. 1. Official notice in this issue
According to
made

Aug.

announcement

an

by

26

Douglas

sje

This

W.

that

States and

German

mem-

clearly understood
subject to validation

bonds

which

benefit

from

sumed

validated

not

are

London

will

not

the

happened

led

and

Since

to

be

re¬

held

of

the

so

Debt Agreement on

to

recently as
mere possibil¬
as

to

a

rather

stocks have been

then

once

been

Mr.

sufficient

a

Hartman

explained
Board
with

amount

validated.
and

that

in

the

Reusch

Dr,

the

New

Validation

York

validation

deals
of

only

German

Dollar Bonds for which the United

States
.

nri

of
Douglas W. Hartman Dr. Walther Reusch

is

the

Germany and certain German

held

territories

However,
bers

respectively

tion

-

Board

For

of

the

Valida¬

German

Dollar

Bonds, 30 Broad
Street,
Suite
3601, New York 4, N. Y., effective
Sept. 1, 1953 holders of German

.

,

Dollar Bonds will be able to take
*•'

steps

have

to

dated."
-

-

their

bonds

vali¬

-

some

$350,-

value of German Dolrlar Bonus are eligible to be vali-

-i

Dollar

(e.g.

par

dated, and that about 100,000
sons
in /The
United States

per" are

;

the 92 separate bond
issues which the Validation Board

..will

now

.

review.;

Validation

procedure is necessary because an
additional
of

-

•

„

:

amount

German

had

been

Dollar

Bonds

which

repurchased for retire-

securities

to the Board for advice.

German
1Q2~>

Bonds

issued

denominated

and

German

"Mark"

settlement

such

securities

will

have

the

to
old

German

before

currency

debt

in

(the

included in. anv

not

prior

1925)

are

validation

or

program,

since

and

never

do

not

tangible

value.
Banknotes denominated in "Mark'',
any

worthless, too.

are

Holders

in

nated
man

■,

"

*

^

•

denomi¬

ofsecurities

t'Reichsmark", (the Ger7

Reich currency, from 1925 to

1948) who have not yet had their
should

validated

securities

con¬

tact the Securities Settlement Ad¬

markets.

The Board invites the holders of

German Dollar Bonds to take the
following steps for the validation

_

Sterling, Swiss
Bonds should apply

ment, disappeared after the Sovisory Agency at 39 Broadway,
viets occupied Berlin in 1945 and Suite
3202, New York City, N. Y.,
began reappearing thereafter on at the end
of this year.
international

-

of $350,000,000

1945.
Ger¬

Pounds

owners': of

•

1,

other

of

Foreign Currency

or

Francs, etc.)

Reich

It is estimated that

000,000

-

man

Jan.

on

holders

OFFICIAL NOTICE of the is¬
involved and the procedure

sues

of validation appears on page 18.

of their securities:

(1)
be

ties dealer,

_or serur

Banks
from
:

•

from

mentioned
the

Broad

forms

hereafter,

Suite

executed,

(Special

be

mailed

or

to

The

Financial

CLEVELAND,
Bowden

(2) Bonds should, together with
and

Baxter, Williams

or

Board, 30
3601, New

registration forms properly filled
out

Paul Bowden Joins

a

Validation

Street,
York 4, N. Y.

should

bank, broker
the M' oositary

with

Baxter,

Union

bers

has

Chronicle)

Ohio —Paul

become

~

-

-

S.

associated

was

to

over

a

of

the

Midwest

Stock

change.

Mr.

Bowden

New York.




with

A.

G.

Becker

&

form¬
Pont &

Co.

to

steels since the

setting in when the
down as far as
intended. Here, again, the

recovery

list had gone
it

pattern in past pattern is one of

professional

with little public
participation. The essential

before the other. But this
in mid¬
week when U. S. Steel, Cru¬

year
was

end

trouncing did do
the speculation

somewhat upset

:!«

this

differences
the

that

make

selling

week
was

inroads

more

were

able to
and

the

rally which, ironical¬
ly, the rails were to trigger as
far as general expectation was
summer

The seasonal rise,

concerned.

sure.
❖

*

Another

a

disappointment, of

somewhat

the

are

longer duration,
so-called secondary

from

acted

the

When

issues.

the

market

bull

sit

si:

Laggard Secondary Issues

last-gasp revival of the

re¬

market

sit

Flare-Up in Benguet Mining

Lowly Benguet Mining,
given a play
now and then on the prospects
which has been

of

doing

some

profitable gold

mining in the Philippines, had

by-tradition, usually reaches peaks bright and early this its day in the footlights when
its climax
about now with year, it was the consensus that it erupted in a burst of activ¬
the blue chips had done their
mid-October the time for the
ity on Tuesday1 including an
work well in the post-election
reaction lows. There's always
opening of 74,,900 shares and
a
consoling adage handy in runup and that from there out a day's volume of 119,600
it was up to the more specula¬ shares. It hasn't been since
the stock market and the cur¬
tive

issues to assume leader¬

the days of the famous Com¬
ship and keep the bull market monwealth & Southern that
stricted, any reaction from it going. They have consistently volume of that size has been
refused to do so, however, recorded. Commonwealth
should be similarly moderate.
outside of a few special situa¬
❖
*
year after year made the head
tions. The new lows of the of the list of most active issues
For a change, any traders
week were well larded with until it was stricken from list¬
nimble enough to profit from
these "potential" leaders.
ing on its dissolution in 1949.
it had something of a trading
rent

the

one

in

use

is that since

rise

summer

was

so

re¬

'f

with. The

*

*

#

wonder to toy

This

gyra¬

tions of Denver & Rio Grande

Among the Secondary and

old

favorite,

went out in

a

moreover,

blaze with one

speculative
issues sale of 350,000 shares just be¬
to outright
that were prominent in fore its trading life ended,
old. One
which was one of the largest
day's product was a four-point slumping into new low terri¬
hop. The heavy selling of tory were those of the quality single sales of a Big Board
of Blaw-Knox, Avco, Capitol stock on record. Moreover, on
Monday carried it off more
Servel, Certain-teed, the same day it also appeared
than two points but the divi¬ Air,
Checker and Chicago Yellow in a 150,000-share transaction
dend increase and 50% stock
declaration
just before the Cab, Duplan, Packard and and incidenta lothers, ac¬
issues

were

lusty

a

throwback

of

days

enabled

it

was

Ex¬

*

*

*

derive any

comfort
One curious parallel stood
from the good financial re¬
out: This is the second week,
ports. The brokerage gentry
running that a two-day cycle
reflected this belief by refus¬
has prevailed. It was the pat¬
ing to get very concerned over tern of
sinking prices with no
the selling.
sign of recovery one day, fol¬
*
*
*
lowed by a continuation of the
One of the minor barome¬ decline
early the following day
ters that a handful of brokers with with a somewhat
spirited

•

WiHiams
&
Co.,
Building, mem¬ close

Commerce

positary

holdings out when the group

...

most of the

to

recover

Sun Chemical.

couple of sessions.

followers

the

To

counting for nearly

t'fi

s'fi

:'f

loss. But the fol¬

to the appropriate De¬
lowing day, when the disap¬
erly with Francis I. du
in New York City by
Co. and prior thereto was with
pointment over the lack of an
Aug. 31, 1954.
In case of the
L. W. Simon & Co. and was man¬
Dawes
Loan, Young Loan and
outright split set in, it trav¬
ager of the municipal department
Free State of Prussia Bonds, the
eled over a range of almost
for Ball, Burge & Kraus.
depositary is J. P. Morgan & Co.
six points. Illinois Central, ob¬
Incorporated, 23 Wall Street, New
Joins Robt. Baird Co.
viously chagrined over a boost
York City, N. Y.
All other bond
(Special to The Financial Chronicle)
of only 25 cents in its divi¬
issues affected by the validation
MILWAUKEE, Wis. — William
procedure should be sent to The
dend, .was almost as erratic,
S.
Eddy
has
become
affiliated
National City Bank of New York,
with Robert W. Baird & Co., 110 roaming
over a distance of
Corporate Trust Department, 20
East Wisconsin Avenue.
For the
more
than five points in a
Exchange Place, New. York 15, past 17 years Mr. Eddv has been

delivered

the rails in an¬ that volume was fairly re¬
good price spectable for more than a ran¬
the earnings re¬ dom
day or so. And volume is

some

tory on their own.

The Last Gasp
What the

the

Registration

obtained

loaded up on

signals. It leaves the deluge of cible, National and others
recovery
was
much tamer,
mid-1950, on the outbreak of made new lows on the same
coupled with the fact that the
the Korean War, as the last
day that Chrysler, General list has worked lower with the
blind, unreasoning stampede. Motors and Continental Mo¬
previous lows of the year in
#
*
:!«
tors pushed to new low terri¬
jeopardy on any further pres¬

country of offering

«roich nnysicallv were outside

standard

was

a pro¬

Ger¬

tuations
are
ignored along
Debts, and will not
with what the chart followers
eligible for trading on securi¬
ties markets which will readmit call preliminary bull and bear

them

million

IV2

that

strong enough hands years has been for one to take
handling
that the daily market fluc¬
a decisive course some half a

be

has

the1

to

"norm"

earlier in the year. It was the
fessional matter. Traders had first time since
early in June

in

External

man

being mostly

sharp decline and a two-year have come to watch is the
period of stagnation before timing of the new highs or
things brightened up again. new lows by the motors and

terms

service

under

*

contrast

tory selling even before the

18.

page

i<:

in

was

1946 when the

It should be

Hartman and Dr. Walther Reusch,

United

on

marks of

failed

.

.

ity that previous lows would
be violated started anticipa¬

beginning

back
ear¬

stockhold¬

to

among

cently.

event

validated

Affair
The setback had all the

not

that volume moved

ers—was

enough

stock nature of the market

what

Douglas W. Hartraan and Dr. Walther Reusch, U. S. and Ger¬
man members,
respectively, of Validation Board for German
Dollar Bonds, announce that holders of these issues will be

Professional

a

to start any action when
the chartists. ports started pouring out. It what keeps the brokers sup¬
It served mostly to point up was both
logical and charac¬ plied with the wherewithal to
the day-by-day and stock-by- teristic that
they tossed their pay their bills.

,

German Dollar Bond Validation Details

Action

it ticipation of

satisfactory.

earnings

by

Earnings outlook

Rail

concentrated

*

brightest aspect of the

week—but

Some

feature

greater

*

Volume Up
The

potential

value its

be

price

issue

;

*

STREETE

By WALLACE

Traer

shares

conversion

current

no

Operations

into

the board.

AND YOU

...

Call

at its current

us

yield

45;

ators, aircraft, railroad and other
cellent.

THE MARKET

but

relatively

a

convertible

absorbers

parts

is

par)

Co.,

attractive to

through

Corp.:

prices,

attention was
low-cost,
highly mechanized well-integrated roads in this week's market
producer of bituminous coal looks but while the pressure was

1/14/56, lower thereafter.
Houdailie-Hersey

6.6%

($50

Ceal

income, the $4.25 Cumula¬

Preferred

current

Tne $2.80 Cumulative Preferred

reach

those prepared to

For

.out for

at

price of $51.25 stands until 9/1/55
then less.
Replacement business
an important factor also.

years

apparently is holding its
in recent competitive strug¬

pany

value

no

with the preferred selling at 34 a

motion picture
yield of
Columbia's earnings

producers,
have

The conversion feature is of

expiration

9/1/55,

13

they are in one of the most
severely depressed groups on

com¬

through

date.

independent

gle.

into

mon

safe.

sidered

(729)

Number 5250—The Commercial and Financial Chronicle

Volume 178

of

have

better things from their

the week
doubly depressing. Wil¬

dozen

son,

favor¬

something like half a

ites for

was

the

packing shares, who
been hoping in vain for

meat

years

dropped

to

and Armour
new

lows

with

little show of resistance to
trend

|The

despite

the

the fact that

views

expressed in thi»

necessarily at any
time coincide with those of th&>
Chronicle. They are presented as
article

do

not

those of the

now,

Morrell

half of the

total volume of the day.

R. M.

author only.]

Snyder Opens
ML

POTTSVILLE, Pa. —Robert
Snyder has opened offices
Mahantoggo
the

Street to

securities

busiriess.

at 162A

engage

He

formerly with Reynolds &

in

was

Co.

14

The Commercial and Financial Chronicle...

(730)

nanced

Motor Vehicle Toll

Highways

successful

facilities. Reviews development of motor trans¬
says there are indications turnpike and bridge
tolls are approaching a saturation point. Proposes: (1) crea¬
tion of Federal Highway Authority; (2) allocation of 50% of
U. S. tax receipts from autos and accessories as well as gaso¬
line and oil taxes to this Authority; and (3) have states pass
laws making it mandatory to use highway taxes for highway
purposes.
Holds result should permit at, least a one-third
average reduction in toll rates.
new

.

at

million

automobiles,

busses

being

highways

about

present

trucks

and

over

the

now

t i

e r a

n

t,

and

to

of

devised

a

meeting

had

under

con-

sideration the

posed
of

adoption of a pro¬
concerning treatment

rule

compensation

stock

in

the

form

of

options granted by corpora¬

tions

their

to

ployees.

All

officers

and

interested

D.

Comments

Club Id Hold

persons

oronosal

the

on

comments on the proposal.

CHICAGO,

a

by

parent lack of unanimity of opin-

Lake

i°n among corporate and public

will

effort

^

be

doubt but that

no

has

make

been

motor

made

travel

more

accountants as to the appropriate

Oufing

111.—The

Municipal

Chicago will hold
its annual field
day on Friday,
Sept. 11 at the Knollwood Club,
Club

Bond

The rule, the Commission states,
was proposed
because of the ap-

can

N.

Chicago Municipal

em¬

invited to submit views and

were

Commission, 425 Second
W., Washington 25,
C., on or before Sept. 25, 1953.

change
Street,

of

Illinois. The

Forest,
be

preceded

cocktails

by

outing

Sept.

on

dinner

and

Toll

manner

any,

Charges

were

V.

of

Problems

to the

automobiles

were

caused

writer

has

formula

suggested

for

important

problem,
Dronosed

^

collapse of
condition

a

of

to facilitate

automobile, truck and

bus transportation. This has to do

with

arose

0f

these

handling of horses drive

than

were

and

foreign make, us- with the rather high cost which
by
professional users must pay to take advantage

driven

Kuile

ter

several

machines available

few

a

there

time

passed,
were

they

are

quite

culvert
the

or

the

In

full

senger car is charged $3.25 and a
today, heavy truck with trailer must pay

and

to $20.50. Passenger car toll on

up

the the

by

118-mile

New

Jersey Turnthe mired pike is $1.75. A m'otor trip from

road

than

by New

to Baltimore and

York

for

of three

The

re-

collisions. Most highways were turn costs $6.40 in bridge, tunnel
surfaced with "McAdam" crushed and turnpike tolls for a distance

have

Buses

reserva¬

chartered

the

club.

to

Full

information may be obtained from

Special

committee.

features

will

be

and

also

a

der

the

of

direction

golf,

the

very

outing

and

softball

tennis,

special event
of

Allan

un¬

Blair

of Allan Blair & Co.

Commission, after consid¬

William

S. Morrison, Jr. is the
chairman of the outing.

gestions received, is of the opinion
that the propriety of using any

Members

of these dates in all

has

cases

not been

established, and that de¬
of,
and accounting
for, cost to the grantor based upon
termination

of

excess

to

the transportation

general

the

been

members

take

eration of the comments and sug¬

one

reser¬

tion fee $10.

arguments

each

(3) exercised.

pas-

a

advanced

were

should

of

miles

also the Pennsylvania Turnpike

Persuasive

to

order

327

determination

the

made.

dates, i.e., when the options were
(1) granted, (2) exercisable, or

more

rare

often

more

facilities.

over

be

10

the

at

which

that

Accidents
Curtis

traffic. The

this

it

fee, $30. Member

numerous

bpTore'a solution"*is

but

that

vation

when

large

volume

Delaware River, Golden Gate, San
pranriSPO Rav
Francisco Bay ann thp Whifpstonp
and the Whitestone.
great

Days

mechanical difficulties

facil¬

a

A

and

nounced

dressed to the Securities and Ex-

to be charged against income
representing compensation to re¬
cipients of stock options should be
determined.
The principal point
of disagreement was the time at

regard

ities necessary
to
handle
such

motor

vehicies, the larger of these includin« the Geor8e Washin«ton-

received with mixed emotions

chauffeurs.

lay

finance

new

for

constructed

February the Securities
Exchange Commission an-

League Club. Guest

ually

construct

the

been

bridges

Last
and

At

has

to

of

Turn¬

number of toll

any,

Union

question

o u

have

a

for determining cost, if

options to corporate executives and employees that

in which the amounts, if

also

how

of stock
may be
reflected in profit and loss or income statements filed with the
Commission. Comments on proposed rule invited.

re¬

construction

Stock Options

on

However, there is one point
ally drove his first motor vehicle, which "shouldT"be~
emphasized"In
a Cadillac, in the Spring of 1902.
connection with all this endeavor

of

as

the

Pennsylvania

began to appear on
rapid and convenient.
highways and their advent

was

that

s e n

Sets down procedure

various states and public Authori-

American

i

Moreover

There

machines. The

a r

has

by the citizens. The writer actu¬

accommodate

number

and

Oklahoma, New York and Indiana.

stations

Industry's Early

the

on

not

suitable to
half

to be

pike, motor toll roads have been
built in Maine, Colorado and New
Jersey,
and
others
are
being
planned in Ohio, West Virginia,

,.

.

,

railroad

original

*n 3 comparatively short time
automobiles

op-

g

roads

,

of

the

wharves,

States.

United

These vehicles
are

..

.

vicinity

the

driven

of

53

proven

Proposes Rule

loan

venture

Since

border.

portation, and

are

SEC

a

a

and

cently been extended to a total of
327 miles from a point near Phila¬
delphia
through
to
the
Ohio

Calling attention to inadequate highways, Mr. ter Kuile sug¬
gests a formula for meeting the problem of constructing and

There

through

$29,250,000
of $40,800,000. It has
a

m,

Government

of

grant

By CURTIS V. TER KUILE*

financing

by agencies of the United

States

Thursday, August 27, 1953

fair

value

of

the

of

committees

are:

William

rangements:

Grigsby,

A.

Ar¬

John

Nuveen
&
Co., chairman;
George L. Barrowclough, First of
Michigan Corporation; Milton J.

American

Hayes,
& Trust

National

Bank

Co.,; Charles E. Lundfelt,

optioned shares over the option McCormick
stone, which proved quite suitable of 422 miles
&
Co.;
Floyd
w!
review
certain
factors
entering
vlew °*
'he comparatively
As a matter of fact, t ere are price at any one of the three dates banders; Arthur Tresch, Smith,
advocated might, in some cases,
into a consideration of the history slow speed
of the vehicles, but mdicatm^
mo or
Barney & Co.
result in the presentation of mis¬
of this development and having a was apt to be dusty. Consequently
Reception:- Francis R. Schanck,
°feratl°"
Jith Ihl

perhaps it would be advisable to

i

1--1-

xi-_

—

-i.

bearing on the whole /subject of
motoring
and
of motor ireight

there

was

brisk

a

demand

for

s^e not only of new vehicles but

were

haulage.

gasoline, tires, and accessories,
and bring about a decline in the
earnings of motels
hotels and

windshields,

no

lights

electric

Auto's Contribution to Nation

self starters, yet the joys
of motoring had begun to grip the

Although there have been

many

populace, and the grand future of

this

the

—

marvelous

inventions

Twentieth
little

doubt

but

that

the

economic

United

welfare

zens

novation

has

to

more

do

improvement

States

than
this

in

be

can

or

automobile

and

its

citi-

other in-

any

modern

well

was

its

on

y-

mo-

introduced there

one

thought of parking
the street over night.

ever

car

on

Every motorist was very careful
revolutionized transportation, of his machine and kept it in a
It

age.

increased

employment
tremendously added to the pleasure and

£bfcpi

d

ni 1

tatp^Yn'

charges, have been raised in

few years after

need
for special
for them. To begin with,

provision

his

a

were

actual

no

was

no

p**3}^3 ®
states to

porti0n

vehicle

motor

many

point quite out of proto
the
benefits
which
a

operators

are

sup-

motor

lirst

very

the

manufacture

with

value

a

figures

for

1952,

units having

000,000,000
Such

4,192

units

$4,899,443. These
be compared with the

may

results

of

of

when

value of

a

put

were

on

5,554,000
$9,-

over

the

mar-

rapid development

has

produced
and

has

not only untold wealth
pleasure to the nation, but it
also

brought with it certain
serious problems, one of the most

pressing having to do with the
financing, construction and maintenance

of

this

carry
Tn

iQnn

suitable highways
tremendous traffic

to

jn the

localities

some

raised

been

these

rates

times

several

have

in

the

Bordentown, the proposed

DelaExtension, PennsylThere was nothing particularly vania Turnpike, and the proposed
ne™ regarding turnpikes in the Ohio and Indiana Turnpikes, he
v

..

Evolution of Turnpikes

United States. The first toll road would
was V
1 ln VirSlnia in 1786- It tunnel
kno™ as the Llttle River
Turnpike and extended from
Alexandna to a Point east of Winchester- The Lancaster Turnpike
was °P.ened 1° traffic in 1794. It

J

office

by

railroad

trolley

horse

or

in

of from

drawn vehicle. The
average work-

walked

man

to

a

his

job,

distance of four

There
and

to

were

the

even

with

«n

were

/irovc

JJl

curity

crowded

the

years

of

ln

University. He has

in

and

certain

the

A8,? *raduate mechanical

engineering and
business for many

member
ciety

be

partlcularly

r

engaged

to

x*

ys'

engineer, Cornell

ment

apt

the
the

Cornell

New

Analysts.

been

of

the

used.

and

Society




ce?sful

toll

and

the

Freight

number
was

is

a

of

Se¬

road

and

Priyate1/financed and

traffic
miles

Turnpike,
Oct. 1,

on

in

length,

Middlesex

to

about $22.50 in

in

addition to which he should
charge depreciation of about $250
on his car; a total of $450, or an
average of nearly $40 per month
without
considering
the
actual
running expense for the vehicle,
Have

determining the amount
of cost, ifj any, of these stock op¬
tions to be reflected in profit and

sue-

it

was

operated,

opened

All

1940. It

was

extending

Irwin, and

160

from

was

ii-

this

quential

may

at

Saturation

inconse¬

seem

when

present

inflation

and

wages

high

generally

tend to make people careless with
their
money.
However,
when
more

to

loss

in

income

or

with

that

order

U1

of

apprised

filed

statements

Commission.

the

However,

investors

may

monetary

the

Entertainment:
Stern

Brothers

John
and

F.

John

&

Detmer,

F. Kehoe,
Co., chairman;
H. M. Byllesby

Company, Incorporated.

Dinner and refreshments: Row¬

be
land H. Murray, Nongard & Co.,
sig_

,

difficult

times

roll

the story may be quite
h
ld be ,
,
bo

or

even

toll

the

bridges

been

.

toll

around

different.

„

^^o^^fthe

the

through

ployees

granting

of

Commission

tVip

nntinnc

c+r«r>b-

rule to be
added to Regulation S-X, and to
be designated Rule 3-20 (d), which
will require
full and complete
disclosure of all stock option ar¬
adopt

to

proposes

.

_

«

.

.

,

financial

in

rangements

state-

ments filed with the Commission.
The

text

of

is proposed
"Rule

the

rule,

which it

to adopt is as follows:

3-20

Optioned

Capital Stock
Officers and Em¬

(d).
to

A brief description of the

terms of each

shall

option arrangement
given, including (i) the

be

title and amount of securities sub¬

option; (ii) the date or
which the options were
granted; and
(iii) the date or
dates upon which the optionees

ject

j

mind

turnpikes,

to

dates upon
ulAfcV,0

we,

entitled

or

tunnels have
a

ever

depression,

Continued

on

page

not

29

ward

V.

Vallely, John Nuveen &

Co.; Frederick W. Channer, Chan-

Securities Corp.;

ner

George R.

Smith, E. F. Hutton & Company;
Linus F. Groene, Dempsey & Co.;
Walter A. Hintz, Stone & Webster
Securities Corporation.
Prizes:
Paul
Stephens, Paine,
H.
Heighway,
HornWeeks;
William H.
Chamberlain,
Halsey, Stuart
Co., Inc.
Golf: John W. Allyn, A. C. AIO.

man;

blower

&

lyn & Co., chairman; Ronald M.
,

Coutts, John Nuveen & Co.; Kennpth

T

Tustin

Fatorr

'

'

Softball:

T

Ottens

'1

Sam

White-Phillips

subject to option at the balance
sheet date, the option price, and

man;

fair

value
were

at

the

granted;

the

dates

with

(b)

tional
L.

respect to shares as to which op¬
tions

Inc.,

■

Salomon Bros. & ttutzier.

"(2) State per share and in to¬
(a) with respect to the shares

options

Co.,

Blair

tal

the

&

Special
lan

the

exercise

to

became

exercisable

during

fair

Stallard,

Company,

Bergquist,

A.

P.

M.

Bank

of

chair¬

First

Chicago;

Na¬

Thomas

Kevin, Glore, Forgan & Co.
Tennis: Paul Hackbert, Rodman

&

Linn, chairman.

period, the option price, and

the

value

at

the

dates

the

options became exercisable; and
(c) with respect to the shares as
to which options were exercised

during the period, the option price
,the
options were exercised.
and the fair value at the dates

"(3) State the basis of account¬
ing for such option arrangements
and the amount of

reflected

charges, if any.

Richard 0. Tufts With
Colvin & Stine
(Special

SAN

income

with

ments

interested

to
on

submit

persons

£ews

the proposed

Chronicle)

FRANCISCO, Calif.—

Richard

O. Tufts

has become

as¬

sociated with Colvin & Stine, 310
Sansome

Street.
a

Mr.

Tufts

was-

respect
Fund

All

vite(J

to The Financial

formerly

in

larger, better known thereto."

through

Dickson

Brothers; Warren S. Yates.
event: Allan Blair, Al¬
& Co., chairman; Ed¬

man

Webber, Jackson & Curtis, chair¬

ployees—

"(1)

S.

R»

can>

a

the

Tolls Reached

Point?

carried

first toll road constructed
exclusively for motor vehicles by
a public
Authority was the Pennsylvania

pay

$18, tolls $25, gasoline taxes $57,

of

wheels

horses

invest¬

Engineering So¬

York

have to

13 %c per mile were

traffic, This was the first financially

though in the large cities
with

lc to

charged, according to the width

parking problems in Conestoga covered wagons and
highways were not. travelers went by stage coach,

burdened

streets

up

five miles,

length and cost $465,000. Tolls

&

dure for

and turnpike tolls for the
1»700 mile trip. During an average became
year his insurance costs are be- notions.
options.
tween $50.00 and $144.40, licenses

no

open

unduly

or

River

ware

™as

Bank

Northern Trust Company;
Transportation: Sidney V. Dun-

duced, .it became evident that est routes were followed. If a car
something would have to be done owner were to drive from New
;° accommodate this great new York City to Chicago and return,
ype
transportation.
using the New Jersey Turnpike to

Turnpike Road ComInn! A? thft x3 75'994'575 Per- pany, with permission of the State
h?,^occL
xu3VeLage of Pennsylvania. It was 62 miles
busmessmsn arrived at his
-

proce¬

National

5;*Gustafson,

J"*1® highways for anyone who with those of neighboring states,
J'0 use them. However by the cost of a pleasure tour or
1929, when a total of 5,358,420 pas- business trip could become exces-

the Lancaster

United

a

Illinois

Co.; Milton S. Emrich, Har¬
ris, Hall & Co., Inc.

nificance of the concessions made

very

S^rage or carriage house. It is true

was built by the Philadelphia and

tho

appropriate to prescribe

nental
Trust

by registrants to officers and em-

high, particularly
densely populated areas; in

are

of the Century, for in
industry started off with senger cars and trucks were pro- sive, provided the best and short -

year

1900 the

ket.

commercial

a

on

actually began in the

mission states that it deems it in¬

Jr., Bacon, Whipple & Co., chair¬
man;
Thomas W. Evans, Conti¬

p0seci to get in return. Insurance

of the

vehicles

scale

In these circumstances the Com¬

rates

past five years. This is, of course,
that the roads would sometimes due to careless
driving, excessive
people, and it has become terribly crowded return- speed exorbitant claims and cost
greatly augmented the national ln§ from the Vanderbilt Cup or 0f
repairs.
income. An interesting point to Brighton Beach races, but on most
jf each state were to lay out
note
is that
the
production of occasions there was plenty of room a ^011 throughway to interconnect
comfort

income

or

statements.

..

the motor
For quite
outstanding tor vehicles

most

development and had
of the

in

Century, there

vehicle was the

with

where it will interfere with the leading profit and loss

goggles and "duster" coats. There

are

and

in-

com_

rule ad-

thereto

partner in Technical

Distributors
was

Company.

with

and

Klehmet

prior
and

Number 5250 ...The Commercial and Financial Chronicle

Volume 178

(731)

Continued

The

jrom

2

page

Public

Security
main

line

in

th&

Montana Power

last

year.

(3) During the past
stantial

completed

it's

and

Additional

sub¬
was

miles and

paid

for.

of

may

be

all

facilities

needed, two years hence, requir¬
ing moderate financing.
Present
delivery capacity of 1,066 million
cubic

feet

is

adequate

to

near-term customer needs.

daily

sales

million

cubic

feet

has

company

efficent

more

655

1952,

the

for

much

a

and

profitable gas
load.
This is being accomplished
by adjusting present delivery con¬
tracts and

developing huge under¬
storage facilities to meet

ground

New

within

the

its

storage facilities.

At

the

mo¬

Texas Gas is able to de¬
liver
approximately
40
million
cubic
feet
daily
from
storage,
which compares with 9 million in
ment,

1951 and 5 million

in 1946.

Facil¬

ities in Kentucky,

ment, will

under develop¬
than double the

more

present storage capacity within
few years.

By 1957, the

estimates
feet
on

101

million

cubic

the

be

a

There

2,581,054

are

shares

stock

common

outstanding, and
Fund, a specialist
in the natural gas industry, owns
about
20,000 shares. The com¬
pany's preferred stock is held by
Gas

Industries

insurance

companies.

The equity

portion of the capital structure is

24.4%,

which

those of
lines.

1952.

basis

a

March,

concerned

are

regulated

ready to build

with

Here

prospects.

well-managed,
of

is

a

com¬

deliveries
product for which there is a

growing
stock

demand.

tive return with

Its

common
an

mission
traded

in
and

the

stock

is

a

short

supplied

installing

in the Un¬

of leading financial

the country.

across

in

no

181

to

areas

middle

communities.

28

(Special

to

GRAND

The

Financial

Chronicle)

JUNCTION,

a

securities business from offices at

Main

Street.

H. C. Aiken
DENVER,
is

Colo.

engaging

Power is

crisis.

as

hydro

a

Total

company.

by
widespread

strikes.
were

tion

than

Field,

which

gas

of(' the

85%

has

Montana's

been

gas

rights
Bank

the budgetary

to

purchase

The company also has a con¬
the Dry Creek and Clark
Montana, and it owns the Heart Mountain

the

of

all

Fork fields of southern

rela tiv

in

gas

modest
Dr. Paul

field in Wyoming.

A subsidiary holds leases in four fields in
containing about 108,000 acres (largely proven)
and it also holds exploratory or leasehold rights to large additional
areas.
Canadian gas is being imported at the rate of 10 billion
gas

business

offices

from

Sherman

a

securities
at

1160

Street.

cubic feet

a

for

year

Montana, the third

largest state

in the Union,

workers,
irrespective
of
they belonged to Com¬
munist,
Socialist
or
Catholic
whether

trade

is devoted to

the

unions, staged

fining.

at

"

is

Montana

the

of

one

j

<

growth

states,

„

about 30%

any

the

an

very

democratic

to

measures

Budget and to

Oil produc¬

of the franc.

the

French Government to do its

make

serious

a

duty

attempt

at

struction
mental

utmost

industries developed recently

or

under

now

con¬

are
the Victor Chemical Works, which produces ele¬
phosphorus, Anaconda's aluminum plant, Diamond Match
Company mill, American Chrome Company operations, and plants

being established for the processing of tungsten and coal char.

Montana
for

conda

Power

of

sales

Anaconda sales

to

receives

about $8

electricity and
total

revenues

million

gas.

a

While

the

proportion

declined from 36%

to 26%

of

dur¬

ing the decade ended 1952, this is still a rather heavy proportion
of the company's revenues. However, President Corette states that
Montana

Power had

is

80

However, Montana Power

now.

the

with

believes that

customer

one

operating, research and financial ability and standing of

A.C.M., paying $8,000,000 annually for electricity and
times

preferable from
weaker companies."
common

an

economic standpoint to

gas,

many

is

payout only 57%

year).

common

the

rate

through a fall in the output,
disorganization of transport and

this

stock record of the past

$2.70

27

2.49

Earned

Paid

'.

29

-21%

26

2.78

1.05

2.49

1.40

20

with

loss

if
to

be

firm

take

the

-17%

1.00

1.14

1.00

1.00

the

firm

name

of

McCanless & Co. He
with

Slayton

Pierce
mons

&

Co.

Co.

with

Inc.,

offices

has
in

Thomas

&

Co.,

and

W.

S.

formerly

was

Rauscher,
B.

T.

Sim¬

formed

been
the

Security

Building to engage in the securi¬
ties

business.

Officers

are

R.

J.

Pomeroy, President; Cecille Pom¬

Vice-President,
Fraser, Secretary.
eroy,

and

of

later it will have to

or

the

French

nation,
ac¬

cept the inevitable. Evidently the'
organized public and private em¬
ployees

of

to

pared

France

make

not

are

pre¬

sacrifices or
to exercise any self-denial for the
sake

of

any

restoring financial and
stability in the country.
determined to take full

economic

They are
advantage of their strong bargain¬
ing position and of the economic
weakness

of

result

of

which

could

take

resist

the

They

their

country

no

as

a

government

up the challenge and
large-scale blackmail.-

inspired by narrow selfutterly disregards*

are

interest

that

considerations

of

national

wel¬

fare.
In

such

circumstances

the'

of

come

the

out¬

French troubles could

Only be the resumption of the rise
in prices through a further de¬
valuation

of

the

abandonment

franc

of

the-

and

the

attempt at
balancing the Budget. There ap¬
to be

no

of

means

arresting1
*

-/>

"A
•

Democratic

Nor is

fined
the

Crisis"

this state of affairs

to

France

crisis

alone.

there

con¬

Although,

assumed

a

par¬

ticularly acute form in August,
1953, it is not a specially French
crisis.

It

It

racy.

is

universal

crisis

that

of

as

Democ¬

result oJ?

a

suffrage and of the in¬

of

crease

the

seems

the

organized

economic

power

olf

labor,

the balance of
has changed in all indus¬

power

Lillie

that

makes

a

non-stop riseinevitable.
From thia
a

resistance

least

more

due

the

to

On each occasion
of

became
in

franc

the

relief.
low

Prices

save

Conservative

a

a

The "shot
temporary

long, however, the

country

the

purchasing power.
France, too, the Government of
based

largely

on

Yet it

the

seems)

certain that he will be

effectively
prevented from pursuing a disin¬
flationary policy.
.

The only hope of arresting

this

drift towards runaway inflation is
that the masses may yet realize,,
before it is too late,

that from the
point of view of their own vital
interests
they must make sac¬
rifices

order

in

the in¬

Unfortunately,

probable

seems

that inflation
much fur¬

have

ther and
its

check

to

trend.

flationary

to

proceed

will

have

to

accelerate

before enlightened

selflikely to prevail over
Any temporary set¬
back in prices—which may occur,
in spite of the inflationary pres¬
sure of
organized labor, as a re¬
sult of the accumulation of good
pace

is

interest

compared

tends

in

wage

Gov¬

an

to

unattainable, and the franc had

other reasons—
immoderate
resistance to

and

demands

anything

seems

postwar conditions this proved to

many

encourage

budgetary economies. The outlook

effort to

inflation. Amidst

for

crops, or

is

be

Government

due to inflated

The balance

franc the

ernment had to make

check budgetary

ex¬

that

hardly in a position to enforce
budgetary economies in order to
arrest the rising trend of prices-

it

tourist

proves

is

will

and

payments deteriorated, and

order to

even

Britain's

in* 1952-53

demagogy.

with other countries.
of

Conservatives.

or

compared

spiral of prices, costs and
once
more
proceeded so

expensive

of view it appears to make-

perience

countries.

other

trade

produced

very

prices

Parties of the Right.

far that France became once more

PHOENIX, Ariz.—Pomeroy En¬
terprises,

of

export

Before

Pomeroy Enterprises

Na¬

majority
sooner

In

beneficial effect.

an

the

its

violent

Ineffective

traffic benefited by it.

wages

in

the

trying to maintain its
means of checking the

those

in the arm"

Building under

re¬

that solution.
Yet in face of the attitude of the

M. Laniel is

inflation

France

French

.80

1.30

McCanless Forms Firm

offices

prove

to uphold
of

devaluation

18

from

should

brought temporary
with

City Bank

face

line

of

instead

1.20

business

economies, even

by devaluing the franc once

1.94

tional

budg¬

the

The Government could of course

2.27

DALLAS, Tex.—Thomas S. Mc¬

the

to be

seems

out

enough

Devaluation

19

Canless is engaging in a securities

wipe

in

measures

20

22

restoring

Government

the

vicious
UTAH

to

etary gains of the

in

1943_—

and

public services, together
of public revenue aris¬

sufficient

Serving In
IDAHO

order

ing from the troubles,

the

1.29

increasingly

luctant to resort to

little difference whether the
gov¬
ernments in office are Socialists

1.40

21

wonder if the French Govern

ment has become

taining
essential

2.30

—

no

proved to be purely
temporary on each occasion, it L*

in

22

—

the franc

(point

end of the war.

231/2-19%

24

stability

of

decline of tourist traffic earnings.

budgetary deficit. This was done
on
repeated occasions since the

31%-26%

1.55

obtained

the

Indeed the financial cost of main¬

internal

Approx. Range

$1.40

relief

trialized democratic countries in

stability by

Common Stock Record

$31

the

sacrificing

sense

.

(Millions)

Since

through

a

selling recently

(even after the increase in

The table below gives the

irn-

opposition of the trade unions.

29j/2, and is currently paying $1.60 to yield 5.4%. Share earn¬
ings for the 12 months ended June 30 were $2.81, making the divi¬
dend

involving

mensp losses to the national econ¬

many

smaller,

i

stock of Montana Power has been

once-

omy

from Ana¬

year

resistance,

eventually

"

'

stability

1938 M. Reynaud

equally successful. In 1953,
however, it seems politically
and
socially
impossible
for
a
and

devalued

more.

balance "the

save

In

of inflation."

able to

was

,

be

the avalanche of inflation.
was

balancing the Budget.
Any such
attempt is bound to encounter the

major

Among

1944—




seems

to

pears

enforce

While Anaconda is the largest industrial enterprise in the

1945—.

K, Salt Lake City 10, Utah

of

In 1926 M. Poincare

..j

1946_

P. O. Box 899, Dept.

It

that

assume

regime.

1947

request

to

revolt threatening the

existence

refining is a major industry. Montana Power also serves
flour mills, sugar factories, coal mining operations, gypsum and
wallboaid plants, cement1 plants, sawmills and wood-processing
plants, fluorspar and talc operations, steel fabrication plants, meat
packing plants, canneries and grain storage facilities. There are
also many other industries represented among the small concerns.

bare

a

balancing the Budget.

open

during this period.

state, there are scores of other diversified industries.

proposed

fsuch attempt would result in

Copper produces about 7% of the copper, 25% of
of the zinc, and 95% of the manganese produced in the United
States.

the

represented

,

reasonable

Anaconda

1948-

on

of

budgetary deficit, it
is easy to imagine the reaction to
any really wholehearted attempt

having in¬
creased more than twice as fast as the United States during the
period 1946-52.
Montana Power's residential electric customers
increased

sum

economies

population

1949

BOOKLET

total

fraction of the

1950

RESOURCES

violent pro¬

a

against the attempt to reduce
public spending. Considering that

fields and refineries.
This area
contains the Williston Basin oil potential.
Agriculture and live¬
stock raising constitute the state's largest industries, totaling more
than $500,000,000 in 1951.
Mining ranks next in importance, fol-r
lowed by tourist trade, lumbering, oil and gas production and re¬

1951

AREA

organ¬

ized

and livestock ranches, oil and gas

Year

CROWING

the

test

1952

A

1 y

ture. The bulk

mining, smelting, lumbering, agriculture, livestock operations and
the tourist'industry.
The Eastern part contains extensive wheat

Revenues

WYOMING

Einzig

e

cuts

expendi¬

of

in mining and smelting operations.

use

decade.

COLORADO

in

Can.

Alberta,

by

of some

means

natural gas for more than 20 years.
tract

timid ef¬

deficit

of

producer

Franch

fort to reduce

Cut

largest

the

to

very

the

of

reac¬

G overnment's

with

reserves,

acreage

They

a

new

the

nearly
has
important

para¬

lyzed

company's revenues are from
one-quarter from natural gas operations.

and

more

of

violent

a

Her economic life had be-

power

at

H. Carl Ai¬

—

August, France found

herself in the throes of

come

known

three-quarters

company

in

The

Opens

in

of

French avalanche

Towards the

—

third generating unit at its Kerr hydro plant, which
capability by 60,000 kw. in 1954.

a

About

it

Colo.—

Ferrell &1 Ferrell is engaging in

of arresting

means

LONDON, Eng.

mining and smelting customers pro¬
ducing many kinds of minerals and each paying $100,000 annually
for electricity and gas, its revenue picture would be the same as

Ferrell & Ferrell Formed

ken

provided

will increase system

"If

411%

is

capability of the system is 526,000 kilowatts, including 410,000 kw.
of hydro-electric power, 50,000 kw.
hydro available under terms
of a firm five-year contract with the Bonneville Power Adminis¬
tration, and 66,000 kw. of steam generation. The company now is

actively

over-the-counter

is quoted

Section

newspapers

in

Texas Gas Trans¬

common

market

attrac¬

factors fa¬

many

higher return

a

period of time.

listed

up

offers

currently

voring

service

new

pre^

tion and

future

pany

in

on

.

Investors
the

pipe¬

initiated

were

quarterly
,

than,

stronger

number of other

a

Dividends

25c

a

is

Electric

area.

current

the

pared to make sacrifices for sake of restoring nation's finan¬
cial and economic
stability. Concludes "there now appears

square

communities.

a

company

storage capacity
daily delivery basis.

(4)
of

that

will

comprises 90,000

area

surrounding them, and natural
The company also supplies
water, steam heat, manufactured gas and telephone service in two
is

gas

The

earnings, to some degree,
be measured by the extent of

may

company's

communities and in the rural

line's

Any pipe¬
growth and

for

Its service

the
to

French Government's timid effort to reduce
the national budg¬
etary deficit. Says organized workers in France are not

is equal in size to all the New England states and half
Over two-thirds of the state's 624,000 people live

electricity

potential

Company

York.

peak winter demands.

high

Einzig reviews developments which led to
crisis in France, and
points out it is reaction

a

only

in

room

California and Colorado.

Montana

of

average

meet
With

By PAUL EINZIG

Dr,

Montana Power Company, with annual revenues of about $31
million, is the largest power company in any Western state except

year, a

program

expansion

France's Crisis

Utility Securities
By OWEN ELY

I Like Best
company's

15

that

but
promising. II
nothing short of a

miracle

could

result

mental

change

for

the

near

future.

in

the

a.

funda¬

better in.

16

The Commercial and Financial Chronicle...

(732)

THE EDITOR:

LETTER TO

Says when special treatment or subsidies are given to indi¬
viduals or groups, the free enterprise system is eroded.
Editor, The Commercial and Fi¬
nancial Chronicle:

The

greatest

Rule on Transactions
For Employees of Other Member Firms

threat that exists
free enterprise

system is to socialize it by subsi¬
dies and exemptions.
When

exception

the

in

first

place,

and over

is

treatment

given to any individual or group
of individuals, as exempting divi¬
dends from taxation,
one
must

The keystone of the free enter¬
prise system is personal respon¬
sibility, and the segments of the
populace who ask for special sub¬
sidizing and special exemptions to
augment their return from the in¬
dividual opportunity afforded by
the
free
enterprise system are

giving but lip service to it. True
free enterprise does not ask or
seek special treatment for any in¬
dividual or segment of individual
citizens, be they farmers, cattle
men or investors, for that matter.
Any system that does so, may be
called "free enterprise," "and that

discussion

with

sub¬
he is
views,

more

of why

in

disagreement

states, "A corporate set-up is
eifect

limneu

a

my

partneisnip

by law, and is not
wholly unlike other partnerships,
chartered

etc."

associations,
Not
well

any

profits, individually and

as

jointly
with

Partners share losses as

so.

a

in a general partnership,
limitation as to loss as to

partner in the case of a lim¬

ited

taxation

from

is

doing—

giving lip service, instead of set¬
ting an example of not stooping
to

receive

tax

a

subsidy

or

tax

exemption of dividend payments!
Either

traditional

free

enter¬

and

the

debtor-creditor

The

interest.

for

the

the

need

latter

Board

the dividend

perhaps

never

to

be

of

Directors

payment,

In

reply to Mr. Nash's question,

"If the common stockholders of

corporation

do

not

the

own

a

net

that

member

a

in

his

own

in¬

and in the interest of his

rectors

determine.

Otherwise

an

individual stockholder, as a matter
of right, could direct the payment
of dividends and in amounts quite
a bit more liberal than a compari¬
son

of net earnings and

dividends

indicate

declared

since

World

War II.

Therefore, the theory of "double
taxation of dividends"
reconciled

earnings

as

cannot

be

another taxation

of

for

(I) dividends and
earnings are not one and the same
and (2) dividends arise from ac¬

Continued

from

declaration

have been

no

by the




its

upon

Association's

that

concluded

should

rule

be

permitted to become effective and
that Rule X-10B-6 should

not be

adopted. Thus, the Association and
its members take primary respon¬

be

beneficial

investment

though it would

to the financial

and

segment of the coun¬

try.

dividuals

seek

violations
is

Securities Laws

of the

not, of course, affected.

or

neither subsidies,
other handouts for

individuals.

we

1951

A

strike the famine cycle.

may

It

is

loan

that your

true

customer

all

answer

of
a

amortized

may
be able to
the questions we
moment
ago,
and

yet fail to meet his obligations to
the bank. He may develop domes¬
tic trouble or he or some member
of his

family may have some very
costly accident or severe illness.

such weakness. But these are rare

exceptions.

couldn't

They

have

been anticipated. That's why, on
certain classes of paper, the dealer
is required to endorse. That's why
set up

ble

the

good manager?

a

Has he

pass

con-^

endorsement

the

or

just because it carries
high rate. They should be the
or

defense.

However, bankers who stick to
as determined by in¬
telligent investigation seldom ex¬
perience losses in excess of nor¬

steady income from a mal

a

don't

normal risks

his business?
Is he

dealer's

last line of

with domestic trouble at home or
in

But

credits which depend upon

reserves

a

against possi¬

reserves

losses.

sumer

And Consumer Credits

reserves.

reliable source?
Is

it

meet his cur¬

enough to

Taking Chances in Making Loans

obligations and other longer

rent

debts?

term

Is he

assets?

in

The banker who is likely to get
trouble is the one who makes

putting too much in fixed questionable loans for policy rea¬
sons

Has he

a

cushion for unforeseen

including

difficulties,

insurance, good

etc.?

takes

where

but

the

the

chances

discounts

credits

are

oil

look

thin,

where competition persuades him.

This

the

is

information

same

to

one

would seek in order to estab¬

are

lish

a

credit of $900 or $90,000.

buy some paper at rates that
too low, maturities that are

too

taught

Experience has
the

who

or

others

to all of these

answers

that

us

ques¬

too

long, down payments that are
short, or contracts covering

sub-standard

merchandise.

Last year we

also suggested that
concerning the banker could not afford to be
or to the credit applied for by the
the credit to be
extended. We either a pessimist or an optimist—
man receiving a modest salary.
have learned that "a combination but a realist—with vision, courage
The three questions the credit
of ability and stability cannot be and balance; firm without being
man must answer in each case are
beaten." Incidentally, a credit or rigid.
the same. Can the applicant pay?
Of course, the credit man, in
Dun report showing nothing for
Will he pay? Can he be made to
order to make sound judgments
or nothing against the applicant,
with respect to individual loans,
pay? It is just as simple as that.
i.e., a neutral report, isn't neces¬
of

credit

to

an

industrial

tycoon

Here's a good place for us to
themselves, and in keeping with remind ourselves that the third
the philosophies and operation, in qualification, e.i., can he be made
fact, of our free enterprise system, to pay—is a safeguard against loss
they stand opposed to subsidies of principal. If it becomes neces¬
and exemptions to other segments sary to force payment, the busi¬
ness
will have proved
of the citizenry.
unprof¬
itable. The banker who puts weak
Your reader, Mr. Wm. R. Nash
borrowers on his books, whether
states that my views "take the
they are big or little, relying upon
cake," but I say that one "cannot
endorsements, reserves, holdbacks
have the cake and eat it, too."
or chattel mortgages, is very like¬
Is it the right thing to do, to
ly to reap a harvest of ill-will and
acknowledge the philosophy of find his
profit margin much too

exemptions

than lending to
experienced com¬

Furthermore, the borrower with
sibility for the supervision of an excellent
reputation and good
trading by employees of member income
may go berserk. Perhaps
firms, and the Commission is re¬ he
gets infatuated or takes a
lieved of administering and en¬
plunge in the market, at poker or
forcing another rule, with its at¬ on the
ponies, or goes off on some
tendant burdens and costs. The
other tangent without the slight¬
Commission's
jurisdiction over est previous indication of
any

Commercial Banks

mentioned by
have done quite

even

and

proposed rule, mentioned

Commission

the

The corporations

dividends,

panies

more

survey showed that three-fourths
of the firms that failed in that
year
started
in
business
during the

we

tions

the

have

a

banker's

direct bearing

upon

decision

favorable report. Such
very often show up in
the charge-offs.
1
sarily

a

borrowers

I

trends which may affect
judgments before the ma¬
slow with the applicant who turities of the loans applied for.

am

to go

must keep himself informed rela¬
tive not only to current conditions

sure

we

but

to

have all learned those

a hurry, and experience has
Expect a Slide-Off of Prices
taught us to avoid applicants who
Obviously, the consumer with
always appear to play in bad luck.
Some consumer bankers advo¬ which we are primarily concerned
in this particular discussion is af¬
cate declining any loan, even if
it is secured, if there is evidence fected by prices, by income, by
and
by taxes. It
of excessive debt, immaturity, ir¬ employment,
seems to be pretty generally con¬
regular employment, if it is a
young small business risk, or if ceded, for instance, that there is
portfolio the total instalment debt is more likely to be a slide-off in prices,

corpora¬

taxation of dividends

received
the

comments

7

page

our
free enterprise system
and narrow when his loan
compromise in practice the very is
finally liquidated.
tion. At best, they are a progres¬ operation of the system by ac¬
It is clear to1 all of us that the
sion of the earning cycle and paid knowledging
that subsidies and
credit evaluation of the experi¬
to another individual or corpora¬ exemptions are wanted and desir¬
enced banker is as effective as his
tion, unlike a partnership that has able?
information is relevant, accurate
a direct
RICHARD SPITZ
ownership of earnings.
and complete.
It is qpite late in the
day to Fortune's Rocks,
What does the banker look for
contend that dividends should be Biddeford, Me.
in each of its credit seekers—the
non-taxable.
Taxation on divi¬ Aug. 15, 1953.
$90,000 borrower or the $900 one?
dends has existed as far back as
He looks for the answers to these
income taxes.
Hence, the whole
questions:
James McMuIIen Opens
theory of non-taxability of divi¬
Is he mature and established?
dends is nothing, more
t^an a sub¬
WASHINGTON, D. C. —James
Does he have a good reputation
sidy or exemption from payment S. McMullen is engaging in
a\ se¬
of a tax, otherwise there would
curities business from offices in for paying his bills?

tual

and the

involved

lems

fixes

earnings, who does?," my answer
But
the
immediate
benefits
is that his premise is incorrect,
would outweigh a good example
for the corporation owns the net
that free enterprise-minded
in¬
earnings of the given corporation
to do with it as the Board of Di¬

been pro¬

Fair

as

to task.

companies—

posed

Practice, provides under and sends such other firm a copy
limited conditions that, of the confirmation.
before knowingly executing a
After further study of the prob¬
of

prise standards must be observed Mr. McKinney
right often enough if he is a
by the investment fraternity, or well during the entire time that credit-guesser.
we may as well stop kidding our¬
A credit-guesser is like a crapthey have been in business, and
selves and arrive at another defi¬
during such time as dividends shooter. Sooner or later he will
nition
of
what constitutes free have been taxed to
the sharehold¬ experience "a run of bad luck." If
enterprise for ourselves and the ers and net earnings have been the run is long enough he is out
generation to come! I, personally, taxed to the
of
business, just as the crapcorporations.
am against a redefinition of free
shooter with cold dice is out of
Everyone, corporation and in¬
enterprise, but it certainly looks
dividuals alike, has a beneficial the game. Consequently; creditlike we could stand some refinestake in the free enterprise sys¬ guessing has-no place in the bank¬
ipent of what constitutes free en¬
tem and also a responsibility to ing business.
terprise.
While passing on credit may not
the free enterprise system
that
To that end, I have declared
will continue to make it work.
be included among the sciences,
against exempting dividends from
One of those responsibilities is some sound principles have been
taxation, and have been critical of
to prevent the further erosion of established which, if followed in¬
Mr. Funston's statement that there
the free enterprise system by re¬ telligently, are likely to produce
is now a "double taxation of divi¬
jecting the theory and benefits of good results credit-wise. Thesel
dends," to which your readers,
are
much the same
subsidies and exemptions, as in the principles
Messrs. Nash and McKinney take
whether applied to the extension
case of seeking non-taxability of
me

had

han¬

certain

such, or
payment at all.

no

which

rule

The

hazardous

more

older and

through stock shares,

types of obligations, for the credi¬
tor
fixes
the
interest
payment
but

if any, of such transactions
dled outside his own office.

young

lot

for adoption by the Com¬ previous 5 years. But permanence
tion of Securities Dealers, Inc., mission
(Rule X-10B-6), had a in some jobs may not be too in¬
with respect to transactions ex¬ similar objective and would have dicative,
for the work may be
ecuted by a member firm
(the made it unlawful for any broker- seasonal or spotty, subject to lay¬
"executive firm") for any person dealer firm,
offs, strikes or what have you,
whether or not a
associated with another firm (the member of the National Associa¬
I,
personally, like businesses
"employer firm"); and the Com¬ tion of Securities Dealers, Inc., to and people who aren't continually
mission also abandoned a proposal effect
any
securities transaction moving their locations. It costs
to adopt its own rule on the same for any person associated with an¬ money to move. Of
course, we all
other such firm, unless it gives like steady earners rather than
subject.
The NASD rule, designated Sec¬ advance notice of the proposed those who have a feast
today and
tion 28 of Article III of its Rules transaction to the employer firm may have a famine
tomorrow, for
rule of the National Associa¬

obligations are quite a bit differ¬
terest
ent, corporatewise, from equity
funds raised

Lending to

a

turning

less than 6 years old—like lending
to lads under 25, has proved much

rule.

own

loans to avoid
one good one.

poor

down

Exchange customers, might weigh the effect,

on

partnership. In the case of a
transaction for the account of any
corporation, the assets are owned
person
associated with another
by the corporation, dealt with by firm
(whether a partner, officer,
the corporation, as in the case of
registered representative, or em¬
dividend declarations, and the in¬
dividual shareholder cannot claim ployee), the executing firm shall
give notice to the employer firm
his share, except as declared by
of such proposed transaction. The
the Directorate, or established in
said rule, which had been ap¬
liquidation.
proved by the Association's Board
As to Mr. Kinney's comparison of
Governors
and
membership,
of debtor-creditor obligations as
was intended to provide a means
being
deductible
for corporate
by which members would be in¬
purposes, the payment of interest formed of the extent and nature
on
those obligations are not un¬
of transactions effected by their
taxable to the individual receiving
employees or other associates, so

is exactly what the investment redeemed or
repaid. So again we
fraternity, seeking to exempt div¬ are not comparing fairly the same
idends

drops proposal to substitute its

Aug. 21 vacated its
order of June 30, 1952, which de¬
the ferred effectivenes of a proposed

he

also approve

special treatment of
special segments of the citizenry,
such as subsidizing farmers who
raise certain types of grains. All
of this is a far cry from my under¬
standing of what constitutes free
enterprise. I am against eroding
the free enterprise system and
contaminating it with socialism.

McKinney's

As to Mr.

rule and

Securities

The

new

stantive

in

NASD

of

deferring effectiveness of

order of June 30, 1952,

Vacates

Commission

years.

American

the

to

Neither is it clever to make

SEC Approves NASD's

Richard Spitz Answers His
Critics On Dividend Taxation

Thursday, August 27, 1953

the

Union Trust

Building.

Is he

a

man

is in

than

XYz

income

to 2 months' income.

and

employment

some

time

within the next six months
Over-buying, excessive drink¬
ing, gambling, the desire to keep or a year. This leveling off process
up
appearances,
frequent
job isn't expected to be drastic and
changes, "female" trouble, are all probably will have run its course
road-blocks to the prudent lender. by 1956.
There
Basis of Credit Man's Success
After all,
it

man

the

success

for

of the cred¬

is to be found in his abil¬

ity to make the largest percentage
of loans without increasing the
loss

ratio

above

the

It

isn't

smart

to

normal.

turn

down

,

a

are

these

a

number of

reasons

predictions.

Money is
tighter, government spending is
headed down and the drop is like¬
ly to be further stimulated by the
truce. Inventories, in some lines,
are high. Our productive capacity
is colossal and in

some

industries

is above consumption. Areas in
high percentage of loans in order
which this is glaringly apparent
of good character to avoid making one poor loan.

i

Number 5250... The Commercial and Financial Chronicle

Volume 178

are

and

the appliance, TV, automobile
food fields. There are sur¬

(733)

ord

amount
of
savings. These ness is likely to continue at high
prospects should help to amelio¬ levels for several months. This is

pluses in each of these areas. Food rate the reduced buying of bor¬
prices now are being supported by rowers who find themselves "over
tieavy government subsidies. Sur¬ bought."
But there are other favorable
plus used cars, which govern to an
extent new car sales, are reflected factors. Price and credit controls
in lower prices, more reposses¬ are off. There are fewer odious
sions, and tighter credit provi¬ restrictions. Free enterprise and
sions. Car dealers are said to have profits are encouraged. There is
twice as many as they had a year less red tape. The Government

true

drive their seems determined to reduce its
automobiles longer. There is in¬ business holdings and to use more
tensive competition in the trade, business methods in Government.
When Congress cut $13 billion
and profit margins are narrower.
Hie day of panicky buying seems off the Truman budget it made
real strides toward improving the
gone.
Competition among TV and ap¬ value of what the dollar would
been
under
the
Truman
pliance dealers is so keen that un¬ have
sound practices are entirely too budget.
Construction work in July hit
common, and the output of ap¬
pliances has been progressively an all-time high, and wages perdown since March, with inven¬ hour made a new record in June.
Despite the leveling off process
tories still high.
Obviously, with production cut there is plenty of zip in business.
In the readjustment period it is
In some lines, overtime is likely to
that the salaried person
foe reduced, which even though likely
employment may remain reason¬ with a steady job, the person with
a
pension, and the one with a
ably full, will adversely affect in¬
fixed income, will find their sit¬
come.
uations improved, while the less
It is pretty generally conceded
that war in the future will not be efficient worker, and the ineffi¬

is

ago,

owners

car

as

17

Businessmen and Teen-ageis

though few expect real
near future, and in
spite of the fact that the' United
even

in the

peace

By ROGER W. BABSON

States has lost face and relations
between

us

strained.

and

(I

learned that

allies

our

suspect
we

Holding giving

summer jobs for teen-agers is a business obligation, Mr. Babson criticizes businessmen for depriving so many

are

have

we

people of the privilege of vacation employment. Says
employment of young people can work very much to
the advantage of small businesses. Scores
penalizing, through
income tax laws, fathers whose sons work.

young

can't buy lasting

summer

peace.)
Of course, with the

the

threat

of

military orders.

some

ernment
main

spending

cause

of

truce, there

cancellation

of

Since Gov¬

has

been

expansion

the

It's

since

increase in private pur¬
chasing is going to be necessary
to take up the slack as Govern¬
ment purchasing eases off.
As bankers we must keep our
1950,

an

houses

order

in

and

do

our

a

shame that

people
past

have

mer

best;

to

who

meet

deserve

it

the

needs

for

of

fi

constructive

little customers

who

fall

how

not

it

they

no

takes,

full-time

on.

These

can

during the

much

as

will

one

out

pan

costs

him

learn to swim
if

it

direct line to

a

tested

and

em-

when he graduates from
school or college. And if he does

aptitudes for
selling. Young
people ask me

into

worker has what

ployee

young people
do
not
have

purposes—plenty provided it isn't
dissipated by loans to speculators,
promoters,
fair-weather
opera¬
tors, or starry-eyed hopefuls. Big
or

all

a

tried

a

Unfor-

tunately,

all

If

then the boss has

in

were

sales.

help, our customers do the.,
same.
There will be plenty of

kind of worker you're hiring,

this

privilege of

employment. About the
only plentiful
jobs this sum-

to

credit

many young

deprived

the

of

summer

vacation

so

been

less

full-time

a

companies that
employment as
riod.

hiring

worker

later

findings

the

are

summer

than

of

using summer
trial work pe-

are
a

Father, Summer Jobs, and Taxes
Another distressing problem of

employment of minors is

summer

these categories are
even let them
the tax situation which penalizes
find the going much
near
the father for his children's job succient industry—and business—are harder in the near future, and
considered a governing factor as
water.
So cess. It happens more often than
far as a healthy economy is con¬ likely to suffer. Competition will the banker who gets in bed with
what do they you'd suspect that father loses a
Roger W. Babson
it them is likely to wake up sadder
cerned. The present Administra¬ become keener. Nevertheless,
do
after a tax exemption because son earns
tion in Washington does not want is the general opinion that busi¬ but wiser.
while?
They lie about the facts more than the allowed $600 durto depend upon emergencies
to
and present themselves as fulling the year.
For example, it
keep our economy synthetically
time job seekers.
On that basis, would cost a father with a $10,000
prosperous. The boom which has
they get jobs. Then there is hard net income, after exemptions, $174
proceeded on the emergency basis
feeling when they leave for school in taxes if his son earns over the
any

of

one

likely

to

Securities Salesman's Corner

for 13 years has spent itself.

again after Labor Day.

There is

plenty of evidence that
Inventories are
increasing; that
there has been

unfilled

an

manufacturing

By JOHN DUTTON

increase in the

of

There

orders

eral

not

Steel, for instance, has
pretty largely made up for the
shortages caused
by
the
steel
strike last year, and there is some
evidence that production may ease

sometimes

off in the last quarter.

quaintances to members of their promises of any kind. The best
organization. Usually the approach is to mention that from
head of any progressive securities time to time "special situations"
firm
knows many people
about
and
if
the
pros¬
on
a come

concerns.

9f course, we are facing some
adjustment

as we

from defense

begin to convert
produc¬

civilian

to

tion, if

we are to minimize the
drop in over-all activity. Produc¬

tion is leveling off and department
store

dollarwise,

sales,

oniy

are

slightly above what they were

a

year ago.

Bloom Is Off the Boom
Business is finding it more

dif¬

ficult to take its discounts because

some

overlooked

of the partners, or

because

other

ex¬

Any time that this type of lead
is

given to a salesman it is im¬
ecutive officers of a firm do not portant that he has the maturity
think of mentioning the names of and the experience to be sure he
some

of their

own

friends and

ac¬

does

oversell

not

or

make

rash

sales

socially friendly, or other worth¬
while basis, that he never has
tried
to
develop
as
accounts.
Sometimes he is just tob busy, or
has too many other things to do.
So these good names are safely
tucked away in the back of his
mind and he thinks that some day

is interested in that kind of
investment, that you will cer¬
tainly keep him in mind. Also, ask
questions — see if there is any
service that

can

be rendered per¬

taining to his present holdings,
setting up an investment plan, or
making an analysis of the entire
he will get around to seeing them estate. If you don't try to make a
himself
but
he
never
does. sale the first time you call but

is

pinch

a

Banks report an
checks.
In other

cash.
increase in NSF
of

ready

Meanwhile these people are doing

business with

words, it looks like the

bloom is off the boom.

"With prices easing

prospects

not being

are

of

lower

some

other firm

or

cultivated at all.

Why Such Leads Are Good

off, with the
taxes

and

instead you

successfully sell your¬
self, from that time on you will
find that these prospects can be
developed into very satisfactory
accounts.

One of the rules for successful
A Word to the Boss

a

prospecting when you use radia¬
Such leads as these, where you
tion is to always lead from the
distant future, even those with
top down. In other words, have turn over your own friends and
slightly less income are likely to
your
introduction made by
a acquaintances to your salesmen,
live about as well as they are
President of a company if you are are
admittedly valuable names.
sounder dollar in the not too far

living

now.

The goal of

the present Federal
is

Administration

which

cut-back

avoid

to

would

drop

below the plateau

economy

any

the
con¬

sidered, normal in peacetime—a
norm

where

hard

work

is

not

feared and jobs are attractive, and
the worker has a real pride in his

work.

There

is

another

phase of the

through which we have been
passing which we all recognize;

era

namely, the tendency on the part
*>f a fairly sizable segment of our
people to over-borrow. This habit
—and it has gotten to be a habit
with some—is stimulated by many
•years
of full employment
and
liigh wages under a war economy.
There

signs that these chronic
or
buyers on instal¬
are
beginning to realize
that they are treading on thin
Ice. This is being brought home
to them by increased efforts by
banks,
merchants
and
finance
companies to correct delinquen¬
are

borrowers
ments

cies.

this

going to call

use some

—or

of

lesser employee They
other prestige point from

on a

advantage. If

from
not

the

bottom

satisfactory.

up

try to lead
it is usually

At

least try

you

to

a

social and

point. However, if
men

in

who

are

you both
business view¬

important to

are

you

have some

sales organization
worthy of receiving them
your

favorable basis as far as and going to work on them, by
the person who introduces you is all means don't hold back. Pass
concerned. That is why it is sound them along as you see that results
business to use the introduction are coming in. In the long run it
get on

a

top member of your firm if will mean more business for you
want to meet another person —it will serve to show your confi¬
on
a
proper level so that your dence in your best men—and it
chances for doing business will be will stimulate their efforts toward
increased production of valuable
enhanced.
of

a

you

business that you are

not obtain¬
Many years ago I was a total
stranger in New York City and ing at the present time.
I took a job as salesman for a
Robt. K. Berry Opens
small
but
progressive
unlisted
firm. The senior partner of this
WESTFIELD, N. J.—Robert K.
firm was very well liked socially
Berry is engaging in the securi¬
and he had many friends who had ties from offices at 725 Standish
never bought any securities from Avenue.
Mr. Berry was formerly
him. He was busy developing bus¬ with
Cohu
&
Co.,
Hemphill,
iness along other lines and he Noyes
& Co. and Auchincloss,
turned over
about
seventy-five Parker & Redpath.
good
names
to me.
I
simply
picked up the telephone and told
Penn Bond & Mtge. Coi
these people who I was and that
PHILADELPHIA, Pa. — Penn
I wanted to come to see them to

is forced out of
the
market
temporarily,
other make their acquaintance, My en¬ Bond & Mortgage Co. is engaging
purchasers must be found to help try was very casual and I didn't in a securities business from of¬
absorb
record production.
With try to do anything but become ac¬ fices in the Bankers Securities
price adjustments, it is possible quainted. Some of these people
Building. Officers are D. Stotland,
that a new group will come into developed into excellent accounts
—in fact I established quite a nice President; A. M. Dapp, Vice-Pres¬
the market—a
If

group

group

by those who have

represented
been thrifty

and who have accumulated




a

rec¬

business

as

approach.

a

direct result of this

sev-

students
(1)
have hired

more

summer:

companies

many

been

people for summer work;
the tax structure penalizes

young

(2)

father

for

then

would

become

son

taxpayer

a

too.
It strikes me there is something
morally
and
economically unsound about a system that discourages the industry of youth,
whether it be a policy of taxation,

letting son work; (3)
unemployed havk summer employment procedure,
given preference over sum- or clauses in a union contract,
mer job
seekers; (4) the uhfea^ Part-time
jobs,
and
especially
sonable labor laws of some States, summer jobs, today are important

union

pools of

been

influences in the molding of the
leaders of tomorrow.
Perhaps,
Obligation
too, if we had busier "teen-agers,"
businessmen
comblam ~*^e might have fewer "teen-age"
young people dorit know Problems- Businessmen ought to
work
Often it is these" *egm now to make plans s0 that

Summer

pect

—

there

why

haven't worked this
Tact Must Be Used

good source of leads is

A very

$600 exemption limit and the

have

to

seem

reasons

Many
that

our

how

to

Jobs—BusinesST^ ~

businessmen

same

cold

shoulder

to

who
young

giye

^e%^n ^.e future summers our young

s'uijjmen

job seekers eager to learn .hoy^lO;
work.
Reports from employrjaqnt
agencies, from college
school placement offices
irj§ic^"
that

there

jobs

this

were

fewer

than

year

£®nerien™s

E. S. Marks Joins

summer

last.

available for them

exPenences available tor inem.

Carl Marks & Co.

'^clf

dentally,

business also faile$C to
Carl Marks, President of Carl
respond in the spring to a project Marks & Company, Inc., 50 Broad
to give summer work experience Street, New York City, foreign seto college professors. I have been curities specialists, announces that
told that guards had instructions his son, Lt. Edwin S. Marks, reto

bar

summer

job hunters from

plants.

many

•

I know that in recent years,
with higher costs, mounting taxes,
and union contracts, many com-

work-schedules

pany

been

have

arranged
to
eliminate
summer
jobs.
Perhaps the plant shuts

cently honorably discharged from
the United States Army after four

service, is now associated
with the firm. He is a graduate
Polytechnic Preparatory Coun-

down

completely for the vacation
so that no fill-ins are required. Or maybe the union contract compels management to fill
period

vacancies

from

the

pool df unemployed union workers before it

attended

and

School

^ay

Jjy

Princeton University prior to his
entrance and graduation from the
w

+

*■

at West Foint.
nr

i

Military Academy

p*

™

OlOOd Donor Uroup
B. G. Phillips & Co., Wall Street

investment

has

house,

formed

a

to

donor group representing
80% of its employees which made

face, but I feel that the company
which doesn't hire a few carefully

its first contribution at a bloodmobile unit in front of the Sub-

screened

treasury Building

can
ers.

go

outside to hire other work-

These

are

facts

we

have

people for sumshirking a
patriotic responsibility and shortchanging itself. Any company intent upon fulfilling this obligation
will

young

work

mer

find

is

a

schedules

both

way—summer

and

unions

work-

notwith-

standing.

b^ood

Wall Street

on

yesterday
w

'

.

,

.

,

group, headed by Mortimer
Armand, account executive, of
70

Lenox

mer

Red

Road,
Cross

Brooklyn,
director

in

forthe

Mediterranean and European the¬

Chance to Hire Proven Workers

atre

during

World

War

II,

was

employ¬ organized for the purpose of help¬
ment of young people can work ing stock up blood supplies for the
very much to the advantage of Red Cross gamma globulin polio
Actually

small

the

summer

businesses

hesitant

about

that

seem

summer

most

hiring.

prevention program.

ident, and M. E. Selig, Secretary-

The group includes B. G. Phil¬
employment can give
the chance to size lips, head of the firm, and his
up thq young person, to see the wife, Mrs. Dorothy Phillips, exec¬
kind of character stuff he has, utive
manager, both of Scarsdale,
how well he works, and how he
N. Y. Members of the group have
gets on with/fellow workers. In
these days when it is so difficult pledged themselves to make con¬

Treasurer.

to

j

i

Summer

management

fire, it is good to know what tributions

every

60 days.

,yadsruhTcinorhC
August 27, 1953

The Commercial and Financial

(734)

18

had

that

before

and

1946

been

News About Banks
revised

August,

1947..

Dec.

31,

1947..

Dec.

31, 1948..

Dec.

31,

1949..

Dec.

31,

1950..

10,163,662

Dec. 31,

1951..

13,011,364

Dec.

1952..

branch of¬
Broad Street

North

capitalizations

Philadelphia by W. R. K. Mitchell,
Chairman and B. F. Sawin, Presi¬

York,

as a

Vice-President

was an¬

by Horace C. Flanigan,
President of the company on Aug.

was

20.

his banking
with the State

Mr. Hellen began

in

-career

1924

Bank, which merged with Manu¬
facturers Trust in 1929. In 1943 he

appointed

was

an

Assistant Vice-

President. Mr. Hellen is a Director

Inc. and is a
Bankers

-of Dessart Brothers,

member of the Brooklyn

*

*

*

located

-

will

5,241,884

Arroyo-Colorado branch, Pasa¬

7,471,731

approval

assist¬

of

State

of

D.

National

office; Carl F. Lambe,
Lincoln Heights branch, Los An¬

Bank

Aug.

Nebraska on

Omaha,

14,

geles; Raymond L. Eccles, assist¬
ant
cashier, and Richard G.
$1,000,000 to $1,500,000 by a Ahrens, pro-assistant cashier,

from

be

stock dividend effective Aug.

17.

from San

Frank

*

if

Chairman

of

San

Francisco,

Calif.,

ration's

Blanchard

the

to

came,

was

Mr. Miller's association with the

trust

company,

National Bank,

then

the

Irving

started soon after

*

Norman

F.

*

*

#

Lovett

of

National

320

East

Seventy-second Street, New York

announced

bank

also

Tuttle

Officer.

He

is

its

total

to

bank

N. J.,

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a

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many

operation also

new

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counselling

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(Ci

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b

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important portfolio

an

at

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aries.

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the

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with

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Francisco,

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ill

C

01

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3

Z

C

y.

X

c
ul

said

facility would

securities.

of

Asso¬

(Aug.

opera¬

by many large financial organiza¬
tions
'

Savings

this week

investment

Belgrano

counterpart

of America

Bank
&

San

were

I

U
at

I
CM

O

.?

Mr.

the presented diamond-set service

Os

eq

o

month

15 years.

showing

o

with

of

ciation

o's

c a g

13

o

©

c

<PO

chart

a

3

c©

«/.

outside

opened

Here

in

bank

the

of service

big

Transamerica

completing 25 years

men

that National Trust

of any new bank

Cashier and Trust Loop, in the then past

joined

the

age

years

began with the largest capi¬

account

Mr. had

Aug. 19.

Six

Eight

improving the results of Trans-

tion.

:v

%

if

i

leached

have

resources

on

completely equipped in¬
with a view

america's

and Executive Vice-President.

customers

29,000

$17,839,892.

President of the tal
on

than

more

of the First

Roselle,

of

Bank

•

been

has

named Vice-President

Russell J. Apgar,

the end of World War I.

;1!'

Tuttle

E.

Robert

*

*

*

62 years old.

corpo¬

vestment department

Standard State Bank, Chicago, April of 1947 as a Vice-President
of 111., celebrated its sixth anniver¬ from the Nodaway Valley Bank
Carl
A.
Miller,
senior Vice- Elmsford, New York, increased its sary last week. It was on Aug. at Maryville, Mo., where he was
President of the Irving Trust
16, 1947 that the bank first opened cashier. He has been in charge of
common capital stock from $100,bank depart¬
its doors when more than 1,000 the correspondent
Company, New York City, died on
000 to $120,000 by sale of new
ment at the Commercial National
accounts were opened.
Aug. 23, of a heart ailment. He
stock, effective Aug. 21.
bank
lived
in Ardsley-on-the-Hudson.
prior
to
being
assigned
Today Standard State serves
He

the

Directors

of

Board

ment of a

in

Bank

National

Commercial

Bank

National

First

The

*

*

Transamerica,

Aug. 24 authorized the establish¬

Club, etc.

*

of

.

Belgrano, Jr., President

and

bank.
Mr.

if

N.

if

recommendation

the

On

Vice-President

Executive

elected

Aug.

been

if

if

.

has

Blanchard

G.

Henry

#

$

«

Diego main .office.

if

if

if

regulatory bodies.

ant manager.

assistant cashier, Inter¬

Rolle,

increased its common capital stock

Federal

and

Palm

West,

Huntington Park; Joseph

branch,

appointment of William J. Rom¬
of the Commercial National Bank,
mel, Assistant Vice-President, as 24, calling a special meeting on
Sept. 15, to vote on the proposal. Kansas City, Kansas in an action
manager of the new John Street
The action will also require the by the board of directors of the
branch.
Edward Allen was named

C.

branch; John Globe, as¬
sistant cashier, Clarendon-Pacific
Springs

17,839,892

...

Harold

dena;

16,408,026

....

Fraser, man¬

San Fernando branch; C.
Leo Rachford, assistant manager,

national

of the

be mailed to stockholders on

....

....

H. H.

are:

ager,

2,236,083

Stock

Mitchell

Messrs.

$610,762

_

....

1953..

Live

The

and Sawin stated that notices will

Aug. 20, announced

York City, on

office

new

the street floor /

on

Building.

Beury

Savings Bank, New

River

East

The

vided.

63.

nounced

31,

August,

dent. They stated that in addition
Appointment of Ronald L. Hel¬ City, and New London, N. H., an
to regular banking services, drivelen, Officer in
Charge of the officer of the Empire Trust Com¬
Brooklyn, N. Y. Trust Office at pany of New York, died on Aug. in-banking facilities, ample park¬
accommodations and
trust
177 Montague Street, of Manufac¬ 23, in Hanover (N. H.) Hospital ing
turers
Trust
Company
of New after a brief illness. His age consultation service will be pro¬

—

Quarter Century Club

new

members

shortly before the end of the year
were
announced on Aug. 20, for
The Provident Trust Company of

Bankers

and

The

Record

if

if

370i

at

Growth

Bank

Standard

Plans to open a new

fice

consolidations
new branches
new officers, etc.

the bank's board of directors.

years:

ing Division.
V

through the pins by A. J. Gock, chairman of

bank

growth of the

Bank Examin¬

with the National

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26,gAu ust

BO

The Commercial and Financial Chronicle... Thursday, August 27, 195?

(736)

forces will

be

Continued from first page

We See It

As

economic system

managed by the

must be planned and

governments of the nations of the free world, but rather
that these governments must see to it that opportunity
in the form of freedom of action and a friendly climate is

provided for such a development. We should hope that he
has the faith that we feel that, given such opportunity
over

reasonable

a

period of time, private initiative re¬

sponding to natural forces would build a far sounder and
more enduring "economic system" in these countries than
any government or group of governments could ever hope
to build.
No

aspect of the matter as we read and re-read not only what
said in
nation.

in this letter but all that is being

Washington and in political circles throughout the
No one will applaud more vigorously than we the

President's observation that "free nations must find ways
to

earn

their

own

is

way

Continued

can

We should

prefer to

to be

that

we

say

that

we

"must search diligently"
of events

do not obstruct any course

which would
of

naturally "widen and deepen the channels
economic intercourse among the free nations" — or

all nations which are willing to proceed in the
way.
'

among
same

It would be

that

some

would

well if all of

us

understood at the outset

basic questions are involved in all this. It
helpful if a very general realization
reached that despite all the popular cry about
very

likewise be

could be
"trade

as

aid"

not

certain

old

and

very

strong opposition

exists among

large sections of the population to changes
greater freedom of trade in this
country. Part of it is traditional. For a long while the
Democratic party continued to talk free trade, but gave
little evidence that it really meant what it said. Candidate
Alfred Smith in 1928 led his party to give up for all
which

essential to

are

practical intents and purposes its rather phony free trade
position. Mr. Smith's action was quite in keeping with the
spirit of the times. Farmers who had been the backbone of
anti-protectionism had turned rather to the idea of finding
ways and means of getting protection for themselves rather
than trying further to free themselves of the burdens im¬

them by "protection" for the manufacturers.
But there is more than tradition to oppose making it
easier for foreign competitors to enter our markets. Long
decades—riot to mention longer units of time—have stimu¬
lated the growth of branches of industry which would find
the conditions with which they have to cope vastly differ¬
ent if protection were removed. They in some cases might
well find it disastrous if protection were suddenly and
drastically eliminated or reduced. Time was when matters
of this sort were left largely to the owners and managers
of enterprises likely to feel such changes most
|Severely.
This, however, is an age of labor unions. These organiza¬
tions are led by men who know their way around the
world, and wage earners are no more disposed to make
personal sacrifices for the good of other elements in the
population than are investors or owners of property.
posed

upon

that

we

hold

as many are

fully\free trade

so

far

as

realistic national

defense considerations permit to be an ideal toward which
we should
constantly strive. Yet we no more than any
other observer who feels impelled to use his common sense

ignore the fact that substantial changes in such a
direction in the circumstances now existing involve real
problems.
can

Both Economic and Political

These
Neither

problems are both economic and political.
labor nor capital is anywhere near
completely

mobile.

Investments made in sheltered industries




can

not

the

by

mean

we

Korea do

also

we

glib

be

aims

of Russia

her

of

a

change in the

and the character

If

we

draw from

into

plain talk is

Stops," are we again dream¬
of
that
peace
which
we
thought would promptly follow
our victory in Europe in
1945?
Ralph
Hendershot,
Financial
"World-

Telegram," recently pointed to the

possibility
of

of Russia pulling out
entirely within
the
year—leaving its satellites

Europe

next

to their own devices.

He says that

U. S. bankers believe this is

some

not by any means an

impossibility

in the next 12 months.
tea cup

that lets

I have

no

read the fu¬

me

ture and say

whether this event is
likely. Mr. Hendershot is surely
right in thinking that such a move
would have a profound effect on
the psychology of this nation and
would doubtless encourage again
our eager wish as a people to be¬
lieve

that

back

home,

tax

we

can

no

have

the

boys

budget for defense,

cuts, peace and security.

Will

Not

Liquidate

Our

Defense

But

I

rather

doubt
look

that

the

peaceful
to an experienced and skeptical
America
that
we
will
quickly
liquidate our defense industry as
we have
in times past.
Further¬
more, there is a very rapid ob¬
soon

so

solescence factor in weapons. The
old must be replaced continually

by the new—because the tactical
and

strategic

advantages of

new

of new facilities may
the difference between vic¬

weapons and
mean

the

and

and

lives

cent softening in the Moscow line

—

may

There

between lives

Saved.

In

spite of

heavy pressures for economy
tax reductions, I think we

will have substantial «vxc.,oC
defense
uum.vu.uxux

ex-

penditures for the foreseeable future.

Certainly in the case
Worthington, I don't believe

of
we

should expect to lose all our Gov¬
ernment orders.

if it can be persuaded

joyed

production.

economists and others

are

who feel

that the nation

ha?

en^

long period of rela¬
tively good
times and that a
change is due. They point to vast¬
ly increased productive capacity;
a

has

of

South

already

that

devastated

are

indications

there

and

U| S. outlays for aid in

very

tually reach $1 billion.
At home, meanwhile, there is a
widely recognized need for public
works.
The average life of all
surfaces

road

12 years.

in

The

this

average

country is
life of road

beds is 17 years. The U. S. Bureau
of Public
Roads estimates that

44%

of heavy construction roads

in service in this country in 1950

will be^jyarn out by

74%

of

90%

of the
will

roads

1960.

intermediate

lightest

be

About

roads

and

construction
out

worn

Meanwhile the need for

by then.
roads

new

is

being felt everywhere as the
automobile population mounts to

high break-even points in indus¬
try; high labor costs; the comple¬

the 40-million mark.

tion

mate

of

than

more

million

seven

homes; completion of the job
satisfying the many needs unsatisfied during the war period;

new

of

the

that

sea:

the

automobile

in-

dustry because of its record pro¬
duction has overrun its market,
and a great many other influences.
On the

to

be

other hand there

that

correction
vocates

of

kind

any

the

correction

of

imminent.

is

is
is

corre.xion

point to

seems

little support for the

very

notion

view

in
m

not
not

severe

The

that

ad¬

even

the
tne

powerful counterrising popula¬
tion in this country—where every
as

Our

people at Worthington esti¬
there is a prompt and

that

immediate

need

to

spend

the

'some

thing like $45 billion for all roads
and highways in this country. The
toH°road
the turnpike —is one
—

to the

answer

problem of financ¬
roads without Federal

ing our
help.

is pressing, and we
rising curve in roadbuilding programs in the future.
The

need

anticipate
Because

a

manufacture

we

a

offine
oinng

such

influences

pavers,

P°rtable concrete mixers, truck
mixers> bjg stationary ready-mix

plants, and a great variety of
equipment
for
contractors,
we
would

gain from such a largea net gain of
scale roadbuilding program.
feed, one more
human being to clothe, one more
Public Works in Offing
bundle of desires and expectations
Another major area of import¬
to satisfy. One every 12 seconds
ance to us, is public works. Munic¬
—perhaps 80 new customers net
ipal government financing may
since I started to talk to you here
be needed in some cases but in
this evening — mor^ than 8,000
many instances public works can
new fellow citizens just since
you
be shown to be self-liquidating.
met here yesterday morning.
For those of you who didn't The school problem is great So
is the hospital problem. But there
bring your slide rules, I should
is a field of special interest to us
say that this all adds up to a net
and
of
special interest to the
of 2,600,000 new customers a year.
nation. As population has risen—
The
statisticians
told us that
as
more
and more people have
the
population
of
the
United trended toward the urban com¬
12

seconds we have

one

Industry

world will

on
re-

will collapse

War

in

out

Congress

granted an emergency appropria¬
tion of $200 million toward the

Indo-

ing

enrich¬

Korean reconstruction may even¬

capitalism
survives
mainly
and threats of war. The

out of defense

rehabilita¬

and

being carried

now

Stops!"

war

go

the

throughout the
policy is, of course,

This

Korea.

in

York

for

advancement

world.

period. For that matter, it is a
main tenet of Marxist dogma that

to

r,r%

of mankind

ment

in part be a reflection of
their hope that the United States

"If the Cold

made

be

more

cold-war-mongering

projects

tion,

mean

Editor of the New

or

that the money now being poured
into armaments could be poured

we

say,

im

evils, I a:v.
sure a depression with widespread
unemployment will no longer be
the evil' acceptable.
I
remind you that President
Eisenhower urged Russia to with¬

well

be

must

When

China?

choice must

a

between two

Do

leadership?

all

that

that there

mean

marked

must

lost

inclined to believe, that the
extent of increase in imports following drastic changes in
the tariff and other barriers can easily be exaggerated,
particularly when the dollar proceeds of such sales is com¬
pared with what has become known as the "dollar gap."
No one could well deny, however, that individual branches
of industry and perhaps individual enterprises would feel
the change greatly. Let there be no doubt of our position.
We believe heartily in greater freedom of trade among
nations, and particularly between this country and other
countries. We, in fact, are prepared to go so far as to say
well be,

do

phrase, "If the Cold War Stops?"
Now that there is an armistice ih

tory and defeat

Some Will Get Hurt
It may

sions.

that total

what

The

people

regard is quite clear.
Ihe
people of this country will not
tolerate any more violent depres¬

reconstruction

"If die Cold Wai

situation.

a

American

the

of

in

this

from first page

to see that we do not stand in the way of it.

Reasonably

will

land,

living in the world." "Our part in aiding
of doing all that we

that the AdWashington
quick to act and be

effective in such

profit by provided they are willing to earn their own
by hard work.

may

into play prompt¬

sure

now

will be very

not be the full answer—it probably
not—but it furnishes a beginning which foreign nations

that effort" must, however, be that

sure

attitude toward foreign nations,

come

quite

am

ministration

perform.
our

I

ly.

in order. "Trade" may

returning again and again to this

the President has to say

to

As to

Managed Economy

We find ourselves

suddenly and easily be transferred into other branches
are open to competing products.
It is scarcely
to be expected that wage earners whose roots go deep into
local pommunities and special industries would be willing
to pull themselves up from their accustomed soil and
migrate. These are practical problems which must be con¬
sidered, but not permitted to block needed alterations in
international trade arrangements.
Needless to say that
the other extreme of placing multitudes of such persons
or such investors in effect upon the public payrolls is not
to be approved or condoned. Whether viewed as the poli¬
tician regards such matters or as seen through an econ¬
omist's spectacles, this Commission now appointed by the
President and about to begin its work has a difficult task

when doors

new

mouth to

States

would

tween

1950

increase

and

1960

14%

—

and

be¬
the

crease*36<7 VaSt^h^^""
®
intn

cnf4i

thincr^

n«

Jgemager "wanting auto™)bUe^
and

automobiles

needing roads—

and young couples needing homes,
and you are reminded that the

munities—the need for expanded

SLIM
the country- It is

a need

accent-

uated nearly everywhere. water
by the declining
tables

Many

communities
,

ciKJ

individuals

and
.

,

™

,

,,

in

•

iLTi

sible to rely on wells and have
trying to understand
been forced to go farther afield!
is a dynamic, not a
for their water resources. This is
tors we must consider. There has
static economy—hard to pin down,
been an undercurrent of caution
a situation which will get
worse
like the last little pig in the barn¬
about a recession in this country
rather than better and requires
yard who ran so fast he was hard
for a long time. Are we assuming m mnnV
increasing municipal attention to
that
reliable water supplies. Further¬
a
recession, for example,
No Severe Let-Down Imminent
might be triggered by a decline
more, as you know, there is a
in Government orders—or are we
We are living in a vigorous, high obsolescence factor in city
talking about one which would
changing, unpredictable world water pumping stations..The presnot be due solely or even prin¬
where statisticians are continually
®iuipment is often overcipally to that cause?
being double-crossed by the facts loa"e" anu out of date,
There is, as you know, conflict¬ of life.
Allied to this is the problem of
It seems to me if a period should sewage disposal, which is acute
ing counsel on this point.. The
pessimists have been continually arrive when our defense expendi- in many communities. More and
forced to revise their calculations tures can be on less of an emer- more attention is being given—
(although we havq had strong gency level—which I hope we can and must be given—to, the proper
corrective swings since the war), expect—and if this change should modern handling of sewage—to
The Communists built their post- tend to cause or
precipitate a re- avoid stream pollution and in the
war policy on an expectation of a
cession, causing any substantial interests of economy and public
U. S. depression in the postwar amount of unemployment, other health. In
industry, we find in-

But

there

are

some

other fac¬

thing

we are

and describe

,

,

Number 5250

Volume 178

The Commercial and Financial Chronicle

...

creasing pressure on those manu¬
who
have waste dis¬

facturers

problems to solve them in
other than by dumping

posal
some

way

their

wastes

into streams or mu¬

nicipal sewage systems.
Add to these fields the problems

drainage
and

reclamation,

control,

flood

of

a

demand.
Again speaking

we ex¬ Worthington are very conscious of
equipment these demands. We took into our
there for the 1954 market.
organization over 100 young en¬
In taking advantage of the op¬ gineers last year — 93 from this
portunity in the air-conditioning country and 18 from abroad. We
field the Worthington Corporation believe our plans require us to get
is
following a policy of broad or develop a more widely edu¬
diversification. That's the reason cated engineer in the future.
He

By the year's

to

pect

end

will

be

less

engineer.

an

up

ago we changed our name
Worthington
Pump
and
Machinery Corporation — a fine

fact,
may

salute the mature

year

from

which

name

were

we

no

anatter of

fact,

I

As

course.

matter of

a

discover

frequently

that

the sales-minded people find

•even

which

understating their expecta¬

Air conditioning sales have

tions.

the

passed
there

will

they

mark in

mark,

reach

and

predictions

the

billion

$5

Let

current

our

it

is

expectation

large installation airconditioning
and
refrigeration

members

toy the end

of

next

greater

for

company

I have in mind the need for the

of

engineer

who

engineering

beyond his
engi¬

sees

for

—

whom

oil

neering is only a means to great
who recognizes that the
challenge does not stop with the

gas.

We foresee many

machine but extends out to the ef¬

expanding

opportunities for
Com¬

is

half

today

of

chemicals

and

all

will

natural

and

something

synthetic organic
be

from

made

in this field.

company

ends

—

ficient

of that machine under

use

diversity

great

a

pressors are

the heart of chemical
petro-chemical plants. Gases

tions

and

dynamic society.

are

compressed

"Times"

Under

year.

our

many years.

products will be double

it

consultant to

a

remind you that by 1961

me

what

our

sales will be at least 25%

rising

sharply

a

expected that the output

like

our

that

on

curve.

chemical

or

10 years.

is

It

billion

$1

confident

are

are

growth

themselves in the unfamiliar posi¬
tion of

to

pressures

as

of

new

circumstances

and

The

condi¬
in

a

New York

statement

that

of

processes

companies

like Humble Oil and Lion Chemi¬
cal.

products which stimulate and.in¬
crease

demand.

consumer

The

at

forces

work

is

greatly needed

Insurance Stocks

—

companies for the first six months of the current

ance

from uniform.

far

year were

institutions showed very

Some

subsantial im¬
provement over the results of earlier periods while in other in¬
stances unsatisfactory underwriting continued to restrict profitable
operations.
As a general rule most of the casualty companies experienced
an

improvement in underwriting.

the volume of business

in

effect

this

the

for

underwriting showed

past year,

the first half of

over

Losses were lower relative to
higher rates that have been

and with the

Of

1952.

there

course

A few companies

general trend in evidence.

sharp

a

gain

variations from

were

were

still en¬

deavoring to adjust themselves for unfavorable earlier periods and
underwriting losses were not unusual. At the same time, particu¬
larly among the medium sized units, substantial underwriting:
profits were reported.
Among the companies writing fire lines primarily the reports
showed an even wider variation. One of the major influences on
underwriting operations in this connection
which

storms

was

the numerous wind

densely populated areas of

swept through certain

the

country with severe damage to insured property. Where a
had a relatively high concentration of risks in such
areas, losses were correspondingly heavy.
In other words there
was a measure of "luck" in how heavily a particular company was
company

hit by

these storms which in turn had a direct bearing on under¬

writing for the period.
losses

Where

favorable
half

Where

1952.

of

were

modest

such

losses

were

lower than in the comparable

was

Two

of the

sized

medium

generally had a
level of the first
the statutory gain

companies

with underwriting

period

the

near

substantial

period of a year earlier.
writing both fire and cas¬

groups

ualty business, which made more favorable showings in the first,
half, were the American Insurance Company and Glens Falls
Insurance Company.
A summary of their operating statements,
excluding certain capital gains and losses, for the first half of 1953
and 1952

are

shown below.
Glens Falls Insurance

American Insurance

Written 41,401,117 41,329,116

Net Premiums

in

Increase

today.

$

$

$

$

1952

1953

1952

1953

37,985,938 33,733,747

Unearned

Premium

Reserves

2,019,248

3,455,573

3,384,532

4,384,726

chemical

Since

we

largest

are

of

one

companies

industry's phenomenal
tjiree growth has resulted largely from
large new products which came out of
could the research laboratories. Union

the

this

in

commercial field today, we
count

on

division
fill

expansion

our

of

in

business

alone

our

substantially

duced

In

the

this

gap

any

result

a

as

■Government

of

to

pro¬

end

an

to

orders.

field

which

packaged, air con¬
ditioning units — in restaurants,
stores,

offices
expect

—we

similar places
70% increase in

and
a

sales by the end

cur

Carbide

for

of 1954.

its

of

1939 have

come

and from

earnings

from

new

since

proces¬

products which

new

did not exist in commercial quan¬
tities

prior

resulted
and

1939

directly

Perhaps
the

to

which

and

research

from

development.

marize

Residential Air Conditioning

Corporation,
reports that over

can sum¬

attitude

own

toward

question of the evening in this

way:

The

most

spectacular gains

are

First, in my opinion, speculation
likely to be made in the residen¬ about a major recession is today
tial field, however. This we ex¬
entirely unwarranted by the facts.
pect to be an area of great op¬ I just don't think it is in the cards.
and promise. And we
thinking not only of summer

portunity
;are

air

conditioning, but
air-conditioning. The
twelve-months

year-round

air-conditioned

tiome is upon us.

Engineering will
home a vastly pleas-

make

the

anter

and

"The

healthier

also

place.

manufacturing problems

well

their

on

are

solution

to

of

Americans

is

tre¬

a

mendous pressure on our economy

the today—far

of

day

Second, the unfilled needs and
wants

most

DETROIT, Mich. —John Hume,
Jr., has become associated with the

greater perhaps
people recognize. This

than
pres¬

coupled with the dynamic
planning of modern American in¬

sure

dustry and the constructive poli¬
in

Stock

are

being

in¬

creasingly overcome by packag¬
ing the job so that installation is any day.
relatively simple and foolproof.
Third, speaking for ourselves,
Central residential systems in¬ Worthington has been in business

Crone

stalled either in older houses with
warm

air systems or

struction

as

in

new

con¬

for

provide

central

matic control; are much less

An

a

room-

coolers cannot do; cost about half

much;

and the future

looked better to

never

auto¬

noisy

units—of which

mil¬

one

During the
13 years

past

business

ning that is close to all of

this

sources

us

here.

"Times" said

undertaking:

"All

the

LOS

pletion of this plant, because

the

present

facilities

at

our

moreover,

needed

are

our

Holyoke are

Insufficient for

program

for

I




and,

other

The

"Times"

new

suggests

demands which

made and which will
the

engineer in

ever-changing

his

own

Pointe.

481,133
—43,539

1,642,289

1,043,010

413,119

Chronicle)

Financial

ANGELES, Calif.—Walter
has

West

Seventh

formerly

524,671

the composition of insurance lines

For example American Insurance has a slightly

is more heavily-

associated

become

Street.

Mr.

Wells

Douglass

with

&

income.
Earnings from this source were
10% for each company reflecting a larger
volume of invested funds, a well-maintained level of dividends
and a better return on fixed income securities.
Taxes likewise were sharply higher as a result of the im¬
gain

in

investment

proved underwriting and the larger investment income. Neverthe¬
less final net income for period showed substantial improvement.
As indicated before these results are not necessarily typical
Glens

officer of

Maloney & Wells, Inc.

the im¬

higher by more than

of the industry.

an

was

period. In both instances the trends were favorable
encouraging for operation in the last half.
Another interesting feature in the above figures was the

In

was

above reports

current

Co. and First California Company.

the past he

in

differences

provement in underwriting. Both companies were able to report a
statutory profit considerably better than in 1952. Indeed Glens
Falls converted a sizable loss reported a year ago into a profit in
the

Dempsey-Tegeler & Co., 210

Falls

are

In fact the showings of American Insurance and
considered better than of most other similar

This does not mean that comparable results will
months. As was shown in the first half
the incidence of losses is capricious. However, based upon results
so
far and current indications, the year could continue to show
organizations.

engage

in

clearly
being

are

be made

on

improvement.

Graham Reid Forms Co.
DALLAS, Tex.

securities business.

a

formed

has

Walter Daniels Opens
(Special

to The

business.
manager

from

the

ness.

age

McGill

Reid

of 69 after a long ill¬
was

in

the

business in New York.

OUR

He

was

ANALYSIS o»

City

Bank Stocks

local
Will

for Waddell & Reed, Inc.

S. Rose, Jr., have
S. Rose !& Co. with
offices in the Silver State Build¬
Joseph

securities ing to engage in a securities busi¬

be sent on

request

Laird, Bisseil & Meeds
Members New York

Stock Exchang*

American

Stock Exchang*

Members
120

BROADWAY, NEW YORK 5, N.

T.

7-3500
Teletype—NY 1-1248-49

Telephone: BArclay

formed Joseph

ness.

&

17 N. Y.

Republic Bank

formerly

MID-YEAR

COMPARISON

Co.

&

DENVER, Colo.—Joseph S. Rose

passed away and

Mr. McGill before his re¬

tirement

Graham

Forms Jos. Rose Co.

Alexander
at

Graham Reid

Building to engage in a securities

E.

Wyo. —Walter

—

with offices in the

Chronicle)

conducting a securities
offices
at
1820

LARAMIE,
Daniels is

Financial

Alexander McGill

dynamic and
society.
We
at
our

Utah—J. L.

and ■ O.i L. Cayias have
formed Cayias Brokerage Co. with
offices at 39 Exchange Place to
Cayias

of

be

Cayias Brokerage

SALT LAKE CITY,

sciences and the humanities."

of packaged

to The

Wells

that

air-conditioning
equipment. We are rushing com¬

tion

had

Jr.

Dempsey-Tegeler & Co.
(Special

students at all business
levels will listen to professors who
Garfield.
plant in Decatur, Alabama, to be are leaders in the physical as
used exclusively for the produc¬ well as in the social and political
so

he

Grosse

Hume,

Walter M. Wells Joins

re¬

of the University will

tapped,

John

and

briefly

I refer to the

lion may be sold in 1953, substan¬

in

Form

in closing on some forward plan¬

tially better than a million in 1954,
and perhaps 3,400,000 in 1957.
Worthington is building a new

1,456,129

writing results in the two periods.
The encouraging feature of the

Co.

&

u n

Engineering Center

I would like to comment

The New. York

2,241,789
599,500

be realized in the last six

afford better air distribution.

roorp

3,709,256
1,210,748

1,130,939

weighted in some of the automobile liability lines. These varia¬
tions undoubtedly account for part of the differences in under¬

Co.,

us.

project of Columbia
University to build an Engineering
It is the consensus that sales of Center,
comparable to its one¬
central systems will go up as fast time-pioneering Medical Center.
and

—649,806

higher participation in fire lines while Glens Falls

Co., and Rath-

part of a year-round

air
conditioning unit do
ftiouse what five or six

as

for 113 years

&

of

actly comparable.

E. A. Pierce &

was

201,985
1,254,144

by the two companies, the operating results are not ex¬

written

Mac-

E.

my

trialist knows that peace business
is far better than war business

Because

with

sociated

b

455,653
1,786,136

2,498,508

—

Net Income

Ex¬

Hume, previ¬
ously was as¬
E.

1,583,358
2,125,898

Income

Income Taxes

changes. Mr.

with

they

34,399,421 30,927,989

Total

Detroit

and

with

but

37,798,511 36,488,737

Loss

Total Income Bef. Tax.

of

members

M.

us,

19,511,340 17,354,0(09
14,888,081 13,573,971

&

Losses

Investment

&

cies of the present Administration
can,

Exps. 21,360,416 20,448,341

Underwriting Expenses 16,438,095 16,040,396

Underwriting Profit

Aldinger
Co., Penob¬
scot Building,

don,

judgment, fill any pos¬
throughout the industry—the cost sible valleys occasioned by a de¬
problems are being rapidly licked cline in defense production. And
—installation
problems are still remember, the American indus¬
way

34,601,406 30,278,174

For¬

of

the New York

point I

at tnis

my

Fordon, Aldinger & Go.
firm

Earned 39,381,869 36,944,390

Premiums

Net

John Hume, Jr., With

Carbon

and

example,

one-third

ses

commercial

smaller,

uses

as

This Week

JOHNSON

E.

Underwriting results of the major fire and casualty insur¬

the

high as 15,000 lbs. per square inch Columbia Engineering Center
heading comes the air-condi¬
to produce the ever-widening list would pay attention to the social
tioning of large buildings like the
of chemicals and synthetics de¬ sciences
particularly
interested
Mellon Art Gallery in Washing¬
We have a need for young
rived from coal, petroleum,
air me.
ton, Saks Fifth Avenue in New and other basic
with
engineering
training
sources; and on men
York, and the CBS Television
polyethylene processes, pressures who are also aware of the exist¬
Center in Hollywood, as well as
up to 25,000 lbs. per square inch ence of a science called economics.
«©f
great
industrial plants like
(Maybe economics is an art, ra¬
may be required.
Consolidated
Aircraft's
in
Fort
ther
than
a
science.)
But my
Worth, with its
13,000 tons of
Creating New Products
point is that the engineer who
refrigeration capacity. It also in¬
sees
the
The genius of American indus¬
complex of social, in¬
cludes cooling systems for the in¬
try lies in its ability to create new dustrial, political, and economic
this

dustrial

By H.

In

will be as good as his
engineer father—and that, if I

very
ourselves,
proud of—to the simpler and more of this audience, is very good/ in¬
we
are
expanding rapidly in a
accurate Worthington Corporation. deed. I remind you that Columbia
field which seems to us to have
We intend to be a dynamic and has
produced engineers of the
great—even fantastic promise: Air
energetic force in many fields greatest distinction — William
Conditioning. I would not dare
which seem to us fitted to our Francis
Gibbs, Grover Loening,
stand
before
such
a
wise
and
Monell,
Sir
Stephen
particular genius — our particular Ambrose
sober audience as this and recite
skills and know-how—our special Pigott,
David Steinman, Edwin
the
market
possibilities
which
engineering traditions. We intend Armstrong, and many others, in¬
sales-minded
individuals
in the
to move quickly into other fields cluding
Charles Edward Lucke,
air conditioning field take as a
which
have
special promise — who was our particular friend and

for

Bank and Insurance Stocks

he

a

2*

producing

be

old

and irrigation,
substantial pent-

control

have

you

work.

(737)

Bell

(L.

A.

Gibbs,

Manager

Trading Dept.)

Specialists in Bank Stocks

22

The Commercial and Financial Chronicle.,.

(738)

Continued

remaining 25 issues, at their re¬ the preceding seven years), basic tion of their income during the
cent lows, were quoted at
12% asset values behind most stocks past seven years, but have also
below their average 1946 highs, or have
been
rising sharply.
For greatly improved their
balance
at the equivalent of about 190 in example,
Allied
Stores, / which sheet positions. (The latter stock,

from first page

A Cheerful View of

Industrial Aver¬ sold above 60 in
1946, and is
(The long-term rate of growth currently quoted at about 38, has
of earnings
in both groups of reinvested approximately $23 a
stocks happens to be identical.) share in this expanding chain of
Those who may be waiting for department stores since January,
Dow-Jones

the

age.

The Stock Market

'

ahead

generally

the

of

because

conceded

prospect of at least a
readjustment in busi¬

moderate

dollar,

tremendous

the

and

our working popula¬
the past 16 or 17 years.

in

over

emphasis

(The

activity.

ness

the

growth
tion

material

the

on

side of life has made it necessary,

It

might

foreseeable

danger in the

no

future,

least, of

at

social attitudes
have made it acceptable, for more
women to work.
This adds much
and

order to point

in

be

there is

out that

Collapse

Economic

Drastic

No

a

collapse in our econ¬
We have too many safe¬
guards
against
such
a
theo¬
retical
possibility, including
guaranteed bank deposits; unem¬
ployment compensation; Social
Security for those of retirement
age; an entirely different attitude
on
the
relative
importance
of
budget balancing versus "full em¬
ployment"; and a scale of Federal
taxing and spending which vir¬
tually guarantees an inflationary

changed

our

buying

of

at

least

$10

$15

to

billion a year on a decline
in
activity of the magnitude of the
1937-1938

recession.

Since

I

am

affirm believer in the observation
that "The
more

are the same,'M think
continue to have cycles

they

will

we

in

business

both

the

and

The best

market.
is

things change, the

more

we can

stock

hope for

lessening of the amplitude of

a

the

cycle as

result of enlight¬

a

ened public attitudes, just as we
have

been

seeing

a

reduction in

the incidence'and death rate from
tuberculosis

the

of

cause

and

pneumonia

be¬

progress of medical

science.
The probabilities at the moment
continue to favor only a moderate
and

rotating business readjust¬
ment during
the period imme¬
diately ahead, rather than even a
recession
of
the
magnitude
of
1937-1938.

Some

ing factors in our
as strong as they

of

the

support¬

economy are not

were a year ago,
but there appear to be few weak¬

sufficient

Of

nesses

to

importance

major

depression.

require

a

Construction

activity

taper

may

off

slightly next year, but no sub¬
decline seems likely un¬
til money becomes as scarce as it
stantial

in

was

1919

1929, and/or

or

va¬

Discounted

and
a

tively

there

support

demand for

a

a

over

on

year,

the

average, for
four ydars.)

the next three or
Public works proj¬
including
super-highways,
schools, etc., promise to hold at a
very high level through at least
Fears of industrial over-expan¬
sion seem to be a little overdone,

when

we

fact that

take
some

into

aqcount the
of the building in

recent years has been strictly for
armament work, and the further
fact that

high wage rates make it

desirable

to

try

to

increase

ef¬

ficiency by providing more space
per worker
in many instances,
and to try to eliminate the neces¬
sity of Saturday work or the sec¬
ond

third

or

credits

are

shifts.

Consumer

uncomfortably

high,

but they are only equal to about
the 1941 ratio to disposable in¬

safe

a

are

go

in

individuals

few

a

in attractive

of

the

level

buying
of

in spite

areas,

the

averages,

are

the following:

More than 70% of the listed
industrial
issues
have
recently
sold down to, and/or are

currently

selling at, well below the levels
touched in 1946—more than seven
ago—in spite of the substan¬

years

tial

decline

in

the

value

of

the

dollar since that time, and what is

important, in spite of

more

mendous

a

tre¬

assets

in

be¬

of the

cause

rate

increase

greater-than-average
earnings "plowbacks" in

of

the past seven years. This fact is
obscured by the market averages,
are

issues

dominated by the type
whose floating supply

has

been

are
also on the high
side, but the latest figures (as of
June.3.0) were equivalent to only

the

Pension

gradually

Investment

Funds

Trusts,

absorbed
and

by

Mutual

which

must

1.6 months sales at current levels.

concentrate most of their buying
in the companies with very large

(A

capitalizations.

10%
the

decline
ratio

in

of

sales

would

inventories

to

)

equivalent of only 1.8 months
requirements.)
1' cannot help but wonder
if
sortie of the current worries about
the business outlook

are

not

due

to over-emphasis on the dollar to¬
tals of such items as consumer

a

the

of

11%

A
my

breakdown

of

an

index

of

which

is

composed

of

own,

35 industrial stocks of average or

above

average

that the

sion

quality,

ten most

Fund"

stocks

i

obvious
in

this

reveals
"Pen¬
group

the

for

ranging

than

its

plow-backs

of

level

earnings

1936-1937

to

were

levels.)

exceed

Bethlehem

Steel at its recent low

was

stock

1938

low for the

(13%)

of

5.2

which

is

nearly

today,

was

&

«

be

sure,

at their

bear market decline of

portions

in

the

1938 lows

participated in

a

major

pror-

Dow-Jones

In¬

dustrial Stock Average, but from
levels in 1937 which were assum¬

ing that the earnings for thai year
were
"normal." In contrast, the
price-earnings ratios at the 1950

of

a

rapidly

diversified

volume.

is

*

might be argued that the

1951

ex¬

well

at

Davis

Parke

in

the

year

there

izen

were

for

no

clouds

the

on

Kennecottf'since

horearn¬

were

these issues

better purchases at

much

are

current levels

ago, even though the intermediate
outlook
for
earnings might be

considered the
was

reverse

of what it

when these stocks were

for the market
year were

with

connection
to

my

number

it

been

buyr
inter¬

of

whole for this

as a

probably

uary

highs

merely

preselection
just;

in mid-

seen

The decline from

the Janr

the

retraced

stampede"

"buying

the shake-out in

as

1946

re-

traced the premature market cel¬
ebration
immediately
following
V-J

Day. It

ing

to

been
to

also be interest¬
that the market has

may

note

showing

reverse

half of
tween

definite tendency

a

the year by

early

in the

trend

any

May

first

sometime be¬

and

mid-July.

In six of the past seven years, the
lows for the year were seen dur¬

ing this period; in the seventh in¬
year's
highs

stance—1948—the
recorded

were

in mid-June.

Market Not Representative
In summary, I think that any
appraisals of the current position
and

outlook

stocks

for

should

the

take

majority of
into

account

the fact that the market averages
are

longer

no

anything

more

issues.

we

If

representative

than

of

handful of

a

look behind the

av¬

erages, we find that "the market"
has

experienced

tion

with many

a

sizable

correc¬

stocks selling at

levels which discount

a

more

sub¬

stantial

readjustment in the gen¬
eral business picture than seems
likely to develop over the six to
twelve

months immediately
Selectivity continues to be
important, but since there are so
ahead.

stocks
selling
at
levels
where the intermediate risks are

many

now

measurably
smaller
than
they were a year or two ago, the
building up or maintenance of
rather fully invested positions in
equities

would

ranted

seem

during the
diately ahead.

to

be

period

war¬

imme¬

the

Among

groups which ap¬
particularly deflated
at the present time are the build¬
pear

to

be

ing material producers, which are

generally selling on a par with
the prices prevailing in December,
1941, in relation to asset values
and potential earning power; and
the retail trade stocks, which now
appear to be about as unpopular
as
they were overpopular in the
Spring of 1946. The personal in^
come

tax

reductions

which

will

take effect in January may

be of
particular help to the retail trade
industry, inasmuch as the margi¬
income available for spending
department stores will increase

nal
in

sell¬
in

of

not

June.

automatically

In

sense

approaches
which also suggest that the lows

quotations.

ues

have

a

are

ing at 50% to 100% above current

ence

a

technical

mediate

amples cited above are issues of
companies
in
industries
whose

in

In

typical,

There

Propitious Buying Time
It

and

growing

supported by Pension Fund
ing.)

levels!)

years.

these stocks had

publishing

account for less than

now

issues

double

not

was

it

earnings and 3.6 times the peak (23-24 for Celanese; 33-34 for
Parke Davis; and 63-64 for Ken(1929) earnings of the preceding
necott) than they wffe two yedrs
10
To

sales of inks to the

business

values

sheet

as
current

present

1937

being held down by some rather
superficial but widely circulated
analyses. These overlook the fact

strong

to step up sharply with
the termination of brice controls.

times

a

8%,

balance

earnings, and
On the basis of my own contrary
earnings for the secondtype of thinking, I cannot help
recent year, as compared but feel that

its

on

its

4.7 times

best,

selling
than

more

as

selling ings

at 4.0 times its 1950

is

of

however, of the real
available
today
among

same

of

23-24

than $14 a share since the
middle of 1946. (ItsT946 high, be¬
fore these plow-backs, and when
mqre

fehares Celanese
times the above 50;

4.2

at

basis

20%

present

to

which

yield
is

Certain-teed, at 13, is selling that

less

at above 60; and Kenearnings. (In¬
cidentally,
the
1938
low
for neeott Copper in early 1952 at
American Smelting was followed above 90. The prevailing view in
1951 was that Celanese and Parke
by a rise of more than 100% with¬
in a year, and of more than 150% Davis should never " be sold, and
1936-1937

with the reduction

personal income tax rates.

refer¬

the increase in basic val¬
individual

stocks

because

Model, Roland to Admit

of the unusual, large plow-backs
peaks yvere/ in most
in recent years, it is important to
only about one-half to two
remember that the Investment of
thirds of those recorded in 1937,
retained earnings does not guar¬
Robert Rosenberg will become a
as
there was a more widespread
antee additional eirning power.
recognition of the fact that these
partner in Model, Roland A Stone,
This is particularly true where
earnings might prove to be ab¬
Yak City,
rates or prices' charged for goods 120 Broadway, New
normally high. (Of course there
or services are subject to
regula¬ members of the New York Stock
were
other factors which had a
tion. There is little question, how¬
Exchange, on Sept. 1. Mr Rosen¬
tendency to keep price-earnings
ratios at below prewar levels in ever, but that the fundamental
positions of the majority of well berg is a partner in Aaerbuch,
recent years, but the fact remains
managed
companies have
been Pollak & Richardson.
that stocks were less vulnerable
greatly
strengthened
by plowin the past year or two, because
backs over and above the chargethey did not sell at very optimistic offs
J. B. Scott Opens
of plaint and equipment which
levels in relation to peak earn¬
was no longer paying its own way.
MONTGOMERY, Ala.—John R
ings.)
Some companies, such as Cer¬
Scott has opened offices :*t & iO'l
(4) As a result of an unusually tain-teed and Interchemical, have
high rate of earnings plow-backs been not only improving their Woodley Road to engage in +iW
during the past seven years (about efficiency as 4 result of intelligent securities business. He wa.
and

1951

Robert

cases,

were
selling at this year's com¬
posite lows, at 30% above their
credits, inventories, and plant in¬ average 1946
highs, or the equiva¬
vestment, without relating these lent of 275 in the Dow-Jones In¬
figures to the changed value of dustrial
Average. In contrast, the three




declines

equivalent

was

with

(1)

Business

the

have

normal full "correction" in
prices of these stocks by ab¬

ing

the

Among the reasons for believ¬
ing that the majority of stocks are

of

raise

may

before

Bullish Factors

lion is equal to only about 2% of
inventories

take

to

along with the crowd.)

which

year's retail sales.

attitude

every profession who can always
keep their feet on the ground in
spite of continuous pressures to

come, and the theoretically "ex¬
cessive" amount of $4 or $5 bil¬
one

majority of
overlooked the
cumulative effect that the persist¬
ent Pension Fund buying of cer¬
tain issues is having in prevent¬
stocks

perienced

long-term standpoint. And

ects,

1954.

vast

1946.
at

from
near-term outlook is not "favor¬
In spite of the high level of the 20% to 50% or more from highs
able." However, isn't that the time
touched within the past two and
market averages,
I believe that
to buy stocks for long-term hold¬
one-half years. The average de¬
an excellent case can be made for
ing? In theory, building material
cline in this group of issues ap¬
tne conclusion that the majority of
stocks should have been avoided
stocks
have
already discounted pears to be over 30%. This has
when
we
were
catapulted
into
something close to a 1937-1938 been obscured in the market aver¬
World War II in December, 1941,
type of business recession. There ages by the "rotating" nature of
as
it was obvious that building
would
certainly seem
to
be the 1951-1952 highs. duPont, for
activity would be restricted dur¬
sounder grounds for optimism as example,
reached its 1951-1952
ing the forthcoming period of
to the status and prospects for high in May, 1951, when it sold
manpower shortages. By the end
most issues than was true a year up to 102M>
and then sold down
of the war, of course, the outlook
or
two
ago
even
though Wall to 79 V2 in May, 1952. On the other
for
the
building
industry
im¬
Street is now much more pessi¬ hand, General Motors, which in a
proved drastically, in view of the
mistic than it was in 1951 or 1952. sense is one of the components of
pent-up demands for housing and
The latter is due in large measure, duPont,
did not reach its high
commercial projects. In December,
of course, to the fact that "Wall during
this
period
until
last
1941, Certain-teed was selling be¬
street
psychology" is dominated, December, when it sold up to 69Vz
low 2, Flinkote at 9, and U. S.
or at least greatly
influenced, by as compared with a 1951 peak of
1954.
Bethlehem
Steel
recorded Gypsum at 38. Earnings were held
the mass of brokerage house lit¬
down during the war period and,
erature and the widely dissemi¬ its high to date in January, 1951,
as
had been expected, the earn¬
nated letter services.
The judg¬ when,it sold up to 60, or about
ings picture from 1947 on turned
ment of both of these groups tends 25%
above
its subsequent low,
out
to
be
excellent.
However,
to be influenced by the volume and
more
than 10 points above
these
and
most
other
building
of their own business and, his¬ recent
quotations.
('Incidentally,
stocks proved to be definite pur¬
torically, volume of trading or by the end of this year, Bethlehem
chases in late 1941, and good sales,
market
interest
tends to
move will have plowed back at least $17
at least temporarily, in 1946, when
with prices.
a
share in its property since the
Certain-teed sold up to 26; FlintIt is only necessary to go back stock sold at 60, or the equivalent
kote at above 46; and U. S. Gyp¬
to May and June, 1949, when vol¬ of more than 30% of the current
sum at 132—prices which have not
ume
of trading was running at price of the stock.)
been exceeded since that year.
less
than 900,000 shares a day,
Low Demonstrated Priceand
contrast
Wall
Street
What I am trying to show, of
psy¬
Earnings Ratios
chology at that time with the
course, is that stocks are usually
optimism which prevailed in Jan¬
(3) Many stocks are currently attractive purchases when they
uary, 1946, when sales were run¬ selling as low in relation to peak are basically cheap but unpopular
ning at a rate of more than two or demonstrated earning power because of the near-term outlobk.
million shares a day. (There are in recent years as was the case Anyone who wanted to buy stocks
exceptions to this over-all obser¬ at their lows in 1938. For ex¬ when everything seemed to be
vation, of course. Some brokers ample, American Smelting at 31 is running smoothly and the nearoutlook
was - quite
are always optimistic
good
because of (or was) selling at the equivalent term
a
chance
to
their fortunate nature, and some of 4.3 times the 1950-1951 earn¬ had
acquire such
because it is considered good busi¬ ings. At its low in 1938, the
growth
favorites
as
price former
ness

million homes

the

(2) More than 75% of the listed

from

could

in

nessed

industrial stocks have already ex¬

cancies reach the prewar level of

one

readjustment already wit¬

1937-Type Recession Already

at least 5%

during periods of rela¬
full
employment.
(This

the

sorption of the historically small
floating supply.

power

increase in the

deficit

the averages to reflect the extent
of

of the public than does an
population via the
birth rate.)

1929-1932

omy.

c

effective

the

to

more

Thursday, August 27, 1953

Rosenberg

Clhce

times

the

average

rate

of reinvestment of

a

substantial por¬

jmerly with George M. Wood & Co.

Volume 178

Number 5250

..The Commercial and Financial Chronicle

.

(739)

Company, will be responsible for
advertising and sales promotion
activities, and for the preparation

Mutual Funds

of

literature

By ROBERT R. RICH

Inc.
of

increased

July 31,

third

Fund,
$245,839,989 as
the end of the

to

1953,
of

quarter

fiscal

year,

the

company's

compared

as

with

has

been

cial

tive

close

per

H.

the

1.

previous fiscal

Rrankard,

2nd,

year,

President,

stated in the 77th quarterly report
to shareholders.
On

July

value

31 last, the net asset
share was $4.87, com¬

per

pared with $4.70
The

year.

shareholders

against
Mr.

in

110,486

last

third

31,1953,

October.

quarter

fiscal

year,

from

of

the

issues

no

were

the

company's
holdings, while stocks of the fol¬
lowing
four
companies
were
added:

Star Gas Company,
preferred; Mississippi

River Fuel

Corporation,

common;

three months since Finan¬

The

five

will

31,

1953

electric light

were:

and

power,
21%; natural gas, 11%;
banking, 9%; store, 8%; and to¬
bacco, 8%.
FINANCIAL INDUSTRIAL

Inc.

shareowners

both

a

fiscal

will

Fund,

receive

distribu¬

year-end

tion from securities

profits of ap¬
proximately $423,500 and a quar¬
terly dividend of approximately

$151,250
E.

Sept. 15, 1953, Charles

on

Bacon,

Eastern

Regional

Coastal

Manager,

1953,

the

$0.09

to

per

Bacon

disclosed.

In

300%

month

in

72

advanced

112.1

1953

a

Fund,

on

new

squeezed

World
the

War

old

Financial
increased

total

a

of

30, 1953, shows net assets

share of $2 convertible

ferred

stock

out

share.

share

after

of

1935-39

=

advances

residential

were

rents

months

for

the

three

ended

July 31, 1953, re¬
gains in total net assets to

$90,358,974.
creased

to

standing
records

Shareholders

in¬

24,218 and shares out¬
to

4,068,531
the

for

value

per

was

$22.21,

cent

capital

high

new

j fund.
share

The

net

of July

as

not including a
gain distribution

of the

and

total

net

assets

of

Major portfolio changes for the
three months ended July
follows:

31

were

as

for

ures

$183.42

of

common

Shares

A

little

two

inflation

the

are

Treasury

Bills,

or

bilities

of

were
pre¬

a

ago

year

in

eacn

each

active

his

with

Stocks—j
States

service

in

forces, organized their

what is

in

gaged

the

opment

Sheldon

Compr»ny__

17,000

PROGRESS
OF

John

publications

as

perhaps the most unusual

The

Sheldon,

Broad

Street

the

formerly

Sales

the

mutual

world.

never

talk

or

clients.

goes

by

offices

Yet

that

the

the

on

ber One

all
the

of

over

firm

with

of

most

hardly a day
firm, from its

40th floor

Wall

Home

Life

of Num¬

plemental

ore

corner

of

of

name

this

unusual

organi¬
zation, jointly headed by Bri¬
gadier General Julian P. Brown,
USMC

(Ret.)
L.

and

in

both

Rear

Admiral

Madeira, USN

active service

saw

World

(Ret.).

Wars,

served

for

three

years

the staff of Fleet

on

Halsey, and closed out
military career as a naval
the

on

Military

Staff

as

sup¬

if

recovery

A MUTUAL INVESTMENT FUND

Provpectut from your dealer or

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930
120 Broadway

New York 5, N. Y.

•

and

established.

reserves are

owns

total of 308 unpatented

a

their

firm

own

the sale

ter

position

strong

and

to

wanted

especially

Madeira

King

II, and

in

Fleet

was

1941,

following

in

African

the

invasions

World

of

purchase

of

•

BANK FUND

The

•

FOUNDATION FUND

partners explain it this way: "Our
job is to build a reputation as a

•

GROWTH FUND

•

INSURANCE FUND

through sales radiation.

where

place

When

come.

other.
real

all the

not

as

stocks

know
in¬

to

li/lltw4l€l£

and

bonds, but as
intermediaries in seeing that the
entrusted

money

to

our

is

care

•

INCOME

FUND, INC

placed in the hands of those who
do

we

have

is

confidence.

know

to

these

HARE'S

managers

understand
their

Distributed by

Our

their

LTD.

19 RECTOR STREET, NEW YORK 6, N.Y.

Prospectuses

policies—to

may

be obtained from

the above or locaj dealer.

follow

clients."

lem of

m e

might

as

full-

of

say,

our
(

Today, the two former military
are successfully
selling mu¬
retire in 1949.
He selected the tual funds on a global scale. Most
investment business because as any month their mail is likely
choosing

a new career.

General Brown

put it

.

.

was

the first to

"I looked back

.

on

men

to include letters and checks from

life and realized the dif¬

members

of

Indo

wo

men

the

a

similar

a

became

asso¬

75%

of

New

York

men

and

same

They weren't in

careers

mutual

doing

tors

long

investment

before

funds

at

of

The

I

of

more

I

idea."

of

inves¬

the

world

thousands

literally

job

ally

outstanding job for

an

located

more

forces

in

most any country outside the Iron
Curtain. They estimate that about

made

and

Both

new

armed

Germany, Norway,
Korea, Hawaii, Saudi Arabia, or

later, Admiral Ma-

years

with

the

of

China,

'nest

accumulating

retired

wanted

selling

the

studied
to

them,

tackle

mutual

the

fund

and

the

their

in

the

is

with

services

bulk

Moreover,
sales

business

women

are

a

of this is by mail.
substantial portion of

made

under

periodic

purchase plans..
A

of

measure

General

and

how

Admiral

well

the

doing
in the job they have set for them¬

kind

led
in

the

of

thinking

two

March,

men

1952,

eventu¬

is the firrp's growth. Thus
far, Brown, Madeira & Company
have added registered represen¬
tatives
in five
cities—Washing¬
ton, D. C.; Norfolk, Va.; Newport,
R.
I.; FayettevilleL N. C.; and
selves

Burlington, Vt. And most of their
retired

representatives

are

tary personnel.

In fact, the part¬

to

join

and form

ners

the

prefer
firm's

retired

STREET

are

officers

representatives.

Calvin bullock
NEW YORK

flr
GENTLEMEN: At
me a

as

Name.

Address.

CHy

110

obligation please send

prospectus on

mili¬

1

forces

!

who

men

about how

answers

in

can

do, one tells an¬
acting in a very

We're

sense

vest

servicemen

we

tary careers, both faced the prob¬

This

New Jersey

Snblitiifionat

The firm gets much of its busi¬
ness

representatives

the

3,

3, PA.

shares

you

Chicago

Parker, Elizabeth

fund

mutual

well-adapted to the needs and

things,

over.

Incorporated

PHILADELPHIA

the investment plans for periodic

t i

OR

Hugh W. long and Company

or

distances from any investment of¬
fice.
It is their conviction that

Active, vigorous, and in their
prime at the close of their mili¬

the Pa¬

they realized that investing is a
highly-specialized
business
re¬
quiring long experience. "Since I
personally owned shares of sev¬

Cleveland

J9281

investment dealer

your

men

forces,

cific in 1945.

cruiser in

a

the time," General Brown recalls,
"I knew that these organizations

DEALER,

help

armed

closely what they do and
what their results are—to do these

their

FUNDS

FOUNDED
Prospectus from

they

men

particularly those located in
foreign lands, frequently at great

personally—to
objectives and

hundreds
MUTUAL

to

in the

women

job

were

INVESTMENT

another

understandable

ambition. As investment

stroyer squadrons

eral

THESE

fulfill

quite

which

J.

ciated

Manhattan Bond Fund, Inc.

in

know how—the managers of
those mutual investment funds in

x

Diversified Investment Fund

specialize

This step placed them in a bet¬

est

Sicilian

with

to

of mutual fund shares.

Gunnery Officer to Admiral Ern¬

,

at

well

as

circumstances of many in the faroff places.

investment firm.




of the present of¬

ape

some

egg'."

Diversified Growth Stock Fund

Westminster

of

mining

The company holds under lease

Brown, Madeira & Company is
the

decision.

Los Angeles

en¬

Street, doesn't add

the globe.

and

Insurance

Diversified Common Stock Fund

San Francisco

actively

in

client

new

funds

Members

see

their

deria

ON

INCOME SERIES

Mines, Inc.
'

is

NATIONAL

ac¬

and

sell

War

Corporation

Fundamental Investors, Inc.

LOCAL

with

County

lia¬

vanadium

purpose

ficulties

AVAILABLE

It

and

production

and

when ore

They

Flint

was

Mr.

be in

now

properties.

and

man¬

announced
by
Dis¬
Group, Incorporated, na¬
tional distributor of Group Secu¬
rities, Inc., a mutual fund.
ager

is

South

exploration, devel¬

and

uranium

securities business in the country.

Admiral

Shares

Power

APPOINTMENT

the

YOUR

Plateau

company

my own

FROM

assets
i

The

30

investment firm to carry on

own

he

PROSPECTUSES

Arizona.

of

Committee of'the United Nations.

due

$1,500,000

PERSONAL

and

%

and

entire

which he commanded several de¬

trade winds of

economy doesn't^seem to
the doldrums yet.

and

more

the armed

member

2.25%,

tributors

concerned,

Utah

quired the

or

officers,

fifties

his

Common

Subway System.
as

1953,

than

more

early

12,000

Company_:
SALES

sometimes called the New York

271

corporation, incorporated in
on June 2,
1953, is duly

rado,

payment

Admiral

7-23-53

on
Mayor ImpelliUnderground Taxi Co.,

As far

stock

stock.

retired

Utilities

14,000

Inc

100,

price

Co.,

From Number One Wall

10,000

Co.,

On

ride

a

terri's

liq¬

convertible

General Brown

Stocks—

slightly,

5-cent increase in the

&

Fla.—Edward

Jr.

Brown, Madeira Cover the World

10,125

portation, the latter in part due
a

31,

$2

per

Texas

trans¬

in

common

March

Bache

BEACH,

White,

authorized to do business in Colo¬

ferred share, and $3.66
per share

&

Mountain

Plateau

Hurley

share.

present production

American
Optical Company
Buckeye Pipe Line Company—

S.

common

of

fering is to secure financing nec¬
essary
for
further
15c per share which is
exploration,
payable
development and to continue with
Aug. 28, 1953. Comparable fig¬

Dashiell

BOUGHT

U.

of

cent)

PALM

Mining Corp. at 15 cents Road.

Uranium

pre¬

stock dividend

common

year.

$85,591,462.

reported

and

the

providing for the

years

FUNb,

standing

of

of

Industrial

fund, are lo¬
Denver, Colo. Fund own¬

of

all

as

uidation $50 per
share), and $3.51
per

shares

one

With Bache & Co.

Exchange

The Home

Financial

per

foreign countries.

ports

(par

the

$1.-

reside in 41 states and several

BOSTON

New

inflation.

II's

basis

it

of

(preference

One

the*/

in

States of Colorado and Utah.

Delaware

that date equivalent to
$176.93

per

investment

cated at
ers

1,999,999

stock

per

THE REPORT of The

at

Co.,

in

area

diversified, and managed

a

Common

Food prices declined

while

of

year,

America's

21,362
shareholders, 3,659,813 shares out¬

the index would stand at 185.5.

to

of

A year ago the fund had

the basis, of course,
price index, which

graduate

a

of

The

Jierck

the

had

in

a

a

has

received

of

mutual

Index

peak

is

&

Place, Jersey City, N. J., are of¬
fering "as a speculation" an issue

located

Plateau

in

Offices

(1947-49 = 100).

This is
of

to

and

College.

CLOSED-END NEWS

dividends, or $0.5526
share, and $736,270 in yearsecurities profits, represent¬

end

Off

the

as

1953,

years

Fund

ing $0.2101

dollar

Price

Hill

Yorker, Mr. Shel¬
Major in the Air

a

Reserve

of Williams

a

consumer's

Consumer

net

or $11,416,758.
During this
five-year period sharehold¬

have

per

economics—inflation—blew the

last

Fund

The Fund holds

the last five

Industrial

gust from the big wind of

again

Force

as

leading companies.

York,

Hat

serves

of

received

12,
$3,286,275 in

investments

Inflationary Gust Blows

York

have

Aug.

on

paid earlier this

the

months

all-time high of

an

i5

off

per

Industrial

31

hat

profits
share.

quarterly dividends of
share.

$15,225,523
growth of

asset

Dollar's

$0.07
nine

first

assets reached

announced.

A

don

Richmond

Tellier

consecu¬

securities

shareowners

additional

States

New

from

amount

During

956,508

largest stocks groups
the company on July

by

The 71st

period ending Aug.
The fiscal year-end dis¬

tribution

ers

owned

1935.

estab¬

was

of

Equity Cor¬
poration for the six months ended

common;
and
Gas Company,

Natural

Fund

resident

and native New

June

same

Southern

shareowners

quarterly dividend of $0,025
share will be paid for the

Oklahoma Natural Gas Company,
common.

to

dividend

a

three-month

Lone

convertible

that

paid

Financial

cur¬

industry
Group Securi¬

by

31, 1953.

.

pointed out that

eliminated

rent

31, last
119,407

had

July

on

Prankard

the

Oct.

on

company

said

Industrial

lished in

$223,470,374 last Oct. 31, 1952, the
of

Bacon

every

offered

claims

Colorado

Of Plateau Uranium

the

ties.
A

Mr.

of Affiliated

for

five mutual funds and 15

classes

NET ASSETS

published

mining

TeElier Offers Sfock

2»

Canadian Jb'uud.

r1(

The Commercial and Financial Chronicle

3

public debt and, after the war,
private indebtedness jumped by
leaps and bounds. Everywhere we
have borrowed from the future.

Looking Ahead at

Not

only in the field of consumer
buying, tnrough the use of con¬
sumer
credit that by
mid-1953

The Business Pattern

exceeded

the calculated risk in¬
volved in such a defense pattern
has worked out well for the econ¬
effort is

now

lion, give or take a
Unless there is a deterioration in

situation this
is likely to prove the peak.
international

rate

assured

is

rate

current

The

until' mid-1954.

least

It

now:

Department is now concen¬

alded

"non-productive" purchases.

vote in favor
marketing quotas for

by

has been her¬
as a sign of re¬

year

many

would

But Not

Demand

Boosts

Supply
Even if you

billion

say

annually

production

marketing.

the

made

effective cushion under the

very

this

What

is

terms

the avail¬
services.

in

increase

offsetting

It

,

4

purchasing power set
result of tax cuts would

a

(5)

used

Take
a

for instance.
nobody seems

cars,

Take them—because
to want them.

Automobiles

ination—and
in

I

Government

our

not

am

sarcastic

the

using

not

does

now

the
that

sense

have all the guns it needs
the moment, but also a lot of

only
for

butter—as

result

a

its

of

ill-de¬

signed farm price support policies.
Our productive capacity is now
so
huge that, without the pur¬
chasing power creation resulting
from the defense effort, signs of

over-production would by
all around
Even

credit, and
at least a
in housing

consumer

of

threat

saturation

goods.

consumer

by

of inventory turn¬

general

a

as

of

turnover

is

there

such

a

rule

four

inventory

an

six

to

times

a

in the manufacturing and
servicing types of industries will
be acceptable.
year

Can Be Changed

"Intentions"
The

is

suspicion

if economic conclusions

based exclusively on business

"intentions" to build

consumer

or

of

kind

same

advisable
are

The

—but of

of 20

refrigerator this year or next.
This

not

does

the annual plant

as

of McGraw Hill

survey

(conducted by our mutual friend
Keezer) or the annual con¬

Dexter

buying

sumer

of over-stimulation-result of

over-stimulation,

five

veloped
Plant

has

distinctive

abilities under

its

de¬

vulner¬

surface.

expansion

has proceeded

uncomfortably fast.
Private

indebtedness

has

risen

uncomfortably fast.
Inventories look uncomfortably
higher; particularly as signs are
increasing that finished goods are
backing up in the hands of manu¬

facturers.
decline in farm prices and

Tne

farm

income

is

persistent—and

uncomfortably

is

likely

to

con¬

tinue.
The

drop

sales

and

in family formations
uncomfortable

an

the prospect

over

of

"

In

shadow

of construction

most

ables.

dur¬

consumer

::

"

;

—

the

From

standpoint

of

pure

in economics, the warning signals
conjunction with the University up—definitely so.
of Michigan, are without merit.
by the Federal Reserve Board

used, they, are extremely helpful.

Signposts of Trouble

using them, it should be
the privilege

that

remembered

is

mind

one's

not

of
re¬

are

IV

Quite the contrary. If properly

But in

-

one

word, all this adds up to
pretty uncomfortable picture. *

a

canducted,

surveys

moment,

boom that, as a

a

throws

such

that

mean

the

at

boom that is the result

a

years

and of

plant, buy a new car or a

new

picture

then, is one of a boom still run¬
ning under a full head of steam

this

that

Word

It

For

cutting down inventories;

as

changing

bear

credit

tion of
an

|

than

fronted

termina¬

accumulation even

the

with

this

Yet

consumer

Regulation W—to prevent

inventory

worse

in
the

are

we

con¬

day, it's a question

again will

set

of too much
that. Too
zinc; too

this, too much of
lead; too much

of

much

much cotton.

much copper; too

The

this

But—and
BUT—we
of "pure

are

indeed

is

not

a

big

an

living in

era

economics."

scarce

is

no

better

this

Employment
margin.
a

summer

they laughed when
Vice-President of the
talked

States

about

jobs

millions.

60

movement

of

at

the

effort

commodity

field

of agricultural

time—in

the

commodities.




the

that

vulnerabilities

existing

there

is

yardsticks on
which the degree of vulnerability
are

no

be measured.

can

Two Devices for

then,

is

moment:
its

at

we stand
the defense

where
With

peak

and

business

consumer

coating

Sugar-Coating

deal of sugarbeing done for the

good

a

now

of glossing

purpose

But

we

not

did

get

there

through growth by trial and error.
got there

as

the result of

chain of events that

added

up

a

to

period of fully 20 years of un¬
interrupted overstimulation.

a

more

quick¬

be in

And it

trouble.

just be

a

would

of minor trou¬

case

ble, such as in 1948-1949.
But, unfortunately, there is no
expansion programs and stick to way of telling in advance what
'
them fairly closely even during this combination is.
There is no single signpost, nor
periods of a moderate business
a
group ' of
signposts combined,
setback.
that promises to give us a reliable
Consumer Spree "On Credit"
tip-off on an approaching down¬
ly than the industrial giants who
can
embark on five- or ten-year

When it comes to housing and
of consumer durables,

;

purchases

the

over

ex¬

The

aetually:

consumers

are

•

methods

most

calm down

frequently

"intentions"; such

(1) the "ratio" of
to

another,

used

to

half

almost

what

of

to

was

and

main

consumers

or

that within

a

do

to

this

My advice is to be extra
if

one

or

or

the

explain what

omy as a

of

other

leery

in

industry
whole.

of

is

it

course,

ratio

or

true

inventories

ratio

of

to

consumer

income,

the

econ¬

credit

to

today

are

with

trouble

is

that

they

best

just

before

ratios

usually
they

these

policies

There is

found
some

it

na¬

the

"beyond

a

different side to this

picture, however. Consumer cred¬
it

is

now

monthly

pens,

you

pretty

economic

adviser, Dr. Arthur F. Burns,

re¬

is

are

when

enough

look

spectacularly.

turn

about

half

are

in

of

If the

prices

moves

business

security

failures

offers

go

up;

new

construction

and

contracts

drop; the turnover of
deposits slackens and the

bank

clearings in New York City
—though not at first in the rest
of the country—become

that

hap¬

element
that

smaller.

watching

these indicators,
as
a
group, Dr. Burns hopes to
recognize trouble before it ac¬
By

tually strikes..

Quite frankly, the present pic¬
ture

in

mirrored

as

formula—if

one

the

Burns

might

top

may

of

in

1
very

follows:

as

trading and stock
down; the liabilities

call it by
such a fancy name — looks barely
new fair at the
moment, but not yet
bal¬
outright gloomy.

have the beginning

true

savings

and

repayments

picture.

trouble is

Volume of stock

level where

much

deflationary

new

lies

a

repayments

are

loans—and

new

the

reaching

Soon

doubt,

tomorrow.

to warn

loan

Unfortunately, the sound ratios
of today all too often turn into
headaches of

Formula

The .President's .chief

bank

point of prudence."

sour.

the

a

that, just last

Gidney,
that

H.

Ray

credits

that the
sales, or

to

credit.

tional banks have liberalized per¬

It

the

generated

course,

consumer

necessary

a

the

of

spree

week, the Comptroller of the Cur¬

these

in order
is going on in a

.

of

buying

consumer

large extent by the rapid increase

ance.

df
the

to come.

years

sonal

specified period.

...

mean

will re¬
for several

low

relatively

rency,

(2) the "intentions" of business¬
men

a

It should be noted

set of fig¬

Burns

.

it

few years ago and

as

one

The

..

..

portedly has his eye peeled for
could easily postpone such
seven
economic indicators which,
purchases for a while.
This is
taken
together,., would
foretell
true particularly because the rate
trouble. In his opinion, the com¬
of family formation has been cut
bination
that
probably
would

or

"ratios"

are

our nerves

business.

they

was,

devices

well

so

supplied with durables today that

The 1953

statistical

two

turn .in
•-

it is important to remember that

isting vulnerabilities.

But

income.

not

plans

down

is

There

disposable
jobs are at a new high. So favorable.
disposable income, and so is

We

some

of

to

spending for plant expansion and
modernization running at a record
is

indicator of

Overproduction is glaring—and
for

so

company, an

prices.
been

reversed

been

policy had
quickly.'

methods is pulled on you

Climax of Over-Stimulation'

This,

we'll

their expansion

in the field of

moves

The trouble with the evaluation

ex¬

substantial

And

former

United

approaching overproduction than
the

not

They

it if the initial

pace,

itole of Prices

The

Republican

"trig¬

didn't.

but

—

credit and agricultural

ures

,,

There

nerabilities

have

of the existing vul¬

some

might have done

and

is labor.

ceeded 63 million by a

a

n

over,

Treasury

companies will have to cut back

-

could

Benson

gered"

only "commodity"—if you
to
call it a commodity—

for

plant expansion
as the total will
possibly hit $30
billion—an utterly fantastic
ac¬
complishment.

new

the

production.
Nearly everywhere you look to¬

for

now.

year

record

one

took

the

of

Eisen¬

Humphrey and Secretary of Agri¬

again it becomes advisable
to watch the steel scrap market
for a tip-off on the course of steel

still

since

Administration

Secretary

by

the

after

culture

Once

stand, it took

expansion

—ever

right

petitive market.

want

matters

change in economic policies

during the

big

Perhaps

The

outlined,

The recent

very
close watching
forthcoming months.

be

now

us.

as

record

a

A

farm

The

hower

housing

and

most
important
single development in this field is
as Nostradamus called it some 400
the return of freight absorption
years ago—at the "half-war" level. in the steel industry. Not on all
The accomplishment of such a
steel products as yet, to be sure.
guns-and-butter economy in three But the handwriting is on the
years is staggering to the imag¬
wall. Steel will soon be in a com¬
term

•

that inven¬

determined

much, Mr. Brown holds that

too

"Uncomfortable" Is the

.

a "guns-and-butter" economy, at
least at the current cold-war—or
,

Agents.

volume.

sales

rescue

period."

was

careful analysis of future

a

to

of

annual

stricted to the fair sex.

General Motors fire may of
omy now that we have succeeded
course
have the result of taking
in pulling off another production some of the pressure off the in¬
"miracle"—the accomplishment of creasing automobile supply.

^,

The threat of excessive in¬

Likely

Pressure

It

granted

type

While price

parallel increase
in purchasing power on the one
hand, and goods and services on
the other, would rapidly aggra¬
vate the problem of over-produc¬
tion that is confronting the econ¬

,

to

industrial expansion

of

mild

to be taking a

seems

It would be shortsighted indeed
declines during the Vulnerabilities Under the Surface
Also, we don't know as yet how to ignore these warning signals—
The fact that thus far none of
be
economically
sounder.
This past two years have been largely
effective the McGraw Hill annual but it would
easily prove just as
vulnerabilities
has
been
argument assumes that purchasing in farm prices and in those inter¬ these
national
raw
materials
whose brought into the open should not plant expansion survey will prove shortsighted to get panicked by
power set free by tax cuts will be
in hitting the mark if and when ihem.
immediately and fully translated prices had been run up specula¬ lull us into a false sense of se¬
the uptrend is about to be re¬
We
may
as
well
get this
'U
into consumer buying or addi¬ tively after the outbreak of »the curity.
versed. The survey has admittedly straight: if the right combination
War,
weakness is fnow
The
Russian
tional business spending for plant Korean
peace
offensive
a "big company"
bias and it is a of unfavorable numbers in these
or equipment purchases.
I find it cropping up in other sectors of could have touched off a decline
foregone conclusion that smaller five vulnerable fields comes up—
difficult to accept this assumption the price structure as well.
—but didn't.
as

all the way.
I believe that

t

threat

The

for

same

National Asso¬

be

policies

economic data

temporary

Price

potential trouble
at present.

are:

ticularly in

surpluses.

Continued

of

amount

They

and durable

be argued that a similar

may

free

»

farm

of the

Purchasing

the relationship

economy

income;
(4) The threat of too rapid a
rise in private indebtedness, par¬

that the Gov¬
sell some of its

must

ernment

able supply of goods and
This is important.

five

are

in the

prices and

is

this

for

reason

There

spots

(2)

is

Calif.
year's

this

at

Mr. Brown suggests

tory

a

ventories;
(3) The threat of declining farm

the price
support program is bound to lose
its effectiveness
gradually. The

purchasing power will
annually without an

created

in

allotments.
farm prices

vulner¬

of

number

a

over-expansion;

hardly at an end because

substantial

very

a

Brown, Director of
Pacific Airmotive

Burbank,

of

ciation

immune to

stay

abilities have been developing.

the

by higher yields on

decline

The

economic

in

means

that

amount of
be

up

authorized acreage

economy.

long

surface

(1)

will largely be

the cut in acreage

not

recession. It

of

Purchases

in

inventory

change.

a

is, thoughtful observers have long
been aware of the fact that under

support level next year is not go¬
ing to hurt anybody seriously as

it quickly, $35
will remain a

L.

Herbert

Impressive as the current boom

made

^Defense

spending then

consumer

such

gesture
because the "sacrifice"
by the wheat growers for
the continuation of the 90% parity

loaded dice.

of

level

Unfortunately, the wheat quota
vote is now much more than a

playing with

and the Russians

are

to

and

to

appear

restrictions on

tied

be just
about as low as we can safely go
—with world conditions what they
would

was

due to diminish soon and that the

the coun¬
Over the next two years secu¬
rity expenditures will gradually try's farmers, for the first time
since 1941, accepted the principle
decline to an annual rate of $35
that high price supports must be
billion, or perhaps at bit lower.
turning sanity because

That

boom

construction

the

and

plant

the

gram,

defense pro¬
expansion boom

rising

constantly

a

from

stimulation

the

that

inventory recession.

But that was an extremely

lot

promising

most

bought by the ruling from One corner of Stalin's
end is not throne, there was reason to be¬ thing
lieve

the 1949

a

rely on the
operation
criterion I have encountered thus again — if and when we enter
another inventory "adjustment
far
is a
formula developed
by
The

the

and

1954 crop

started

Malenkov

before

need

you

inventories to sales.

over

foundation of the boom.

type of buying helped a lot to end

yardstick than the ratio of

better

Warning

been

have

wheat

of
the

trating its efforts on reducing its

the

as

protracted period
of
overstimulation
some
cracks
would sooner or later develop in
Even

yet in sight.
The recent farm

Washington is that the De¬

that

inevitable

was

the

Government

Latest word

from

by

loans,

inventory

convention

the Boom

result of such a

ready

at

fense

happened

of

presented

Cracks in

Inventories

Measure

When it comes to the evaluation

Corp.

in

manageable levels. Instead, $3 bil¬
lion worth of farm surpluses al¬

bil¬
few billions.

the

in

but

billion,

$27

plant expansion as well.

of

prices would have dropped
even further, but farm production
would have been reduced to more

Farm

run¬

ning at an annual rate of $50

the

field

adjust

to

Congress

have

would

omy.

defense

re¬

the
present unsound farm price sup¬
port policies to something more
realistic,
two
things
probably
of

fusal

Thus far,

The

not for the repeated

it

Were

peak

period and to avoid a sharp
and sudden drop-off.

to

How

the

first

period,

this

During

Continued from page

•

Thursday, August 27, 1953

...

(740)

24

liquid

high and rising

However,
only
existing fami¬

the

saving. Some of them,

"After

As

carefully
Labor

Labor

myself,

Day" „Blues?

I

am

currently

watching for the "after

Day" snap-back in business

activity.. Time and again, trouble
has

first

shown

up

after

Labor

Day in the failure of business to

no

saving with the idea to
wait for good buying opportuni¬

for

snap

back satisfactorily from the

are

ties—when

prices

are

lower. This

seasonal
covery

summer

slump.

actually should

This re¬

get under

Volume 178

Number 5250

The Commercial and Financial Chronicle

...

25

(741)

in

way

but thus far the mined

August,

has been inconclusive.

evidence

even

if the

that

But

was

push

case

strong upward

in

intervention,

but

plementation

evidence

in

only

serious recession threatens.

a

Thus far there has been

this

of

im¬

no

The

policy.

still believe

that it is not a mere will
be, because psychological re¬
If
intervention
comes
before
"cyclophobia" to keep on actions have a lot to do with such the Federal Reserve Board in¬
insisting that the business cycle economic judgments.
dex "breaks" 200, it should not
of

case

has

been

not

conquered. In

is

President has appointed an inter¬

I

departmental committee under the

a

chairmanship of Dr. Burns that is
charged with the task of preparing

tem

not

these

for

days the present boom will

come

submit

business

view

Hence, it is obvious that unless

be

too

difficult

to

stop

and

re¬

exist, the only thing

of

detailed anti-recession program.
This
committee
is
supposed to

the

through

resumed

not

don't

that

business

will

it

and

—

decline

be

—

does

imminent at this time.

seem

I

quarter

promptly

believe

serious

to

second

believe

do

that

end—and

an

one

a

without

not

its report by

October.

of the great

variety of forces
erating within the economic
and

sys¬

Administration

an

chance

a

wants

letting

on

to

take

events' take

*

the

many
potential their natural course, Government
This is the pattern that, to me,
maladjustment which action will be necessary to either looks the most reasonable to ex¬
we can hope cushion a decline or reverse it.
pect in view of the delicate bal¬
lessen the amplitude of
ance
between
strong and weak

to

fluctuations.

That

is

Intervention Must Be Flexible

a

points in the economy,
r- I
am
fully aware, however, of
the possibility that you can take
the same figures today and make

breathing spell in the boom good deal less than a complete
The type of Government action
probably would be just about the elimination of the business cycle. will, of
course, largely depend on
But this point probably will be best thing that could happen to
the type of decline the Adminispreceded by a lengthy period of the economy and there is reason
..v V.:.';:.
vi
stration will be confronted with.
gradual decline—and probably by to believe that, this is the official
Here again, however, it must be
The Case for Free Enterprise
another upward dash—although I view in Washington.
stressed that it is next to impos¬
must
admit that this
is still
a
If we want the free enterprise
It is, of course, nonsense to build
sible to determine in advance the
rather tentative conclusion on my this
concept up into a charge that brand of prosperity, rather than nature
seriousness
and
of
any
part.
the Administration is wanting or a
system of creeping Socialism decline.
siderable transition pains.

.

planning a recession. With import¬
Nothing Explosive Seen Imminent ant
Congressional elections com¬
There are
several reasons for
ing up next year, such a plan
my belief that nothing explosive would be political suicide.
'is

imminent

are

at

time.

this

the

sisting

of

a

program,

boom

and

plant

strated

its

boom—is

Recession

initial

correct, if not reverse,
policy
of
tightening

credit

not

likely to run out of gas sud¬
denly.
(2) The defense part of the

and putting agriculture
supply-and-demand basis.

a

Actually, of

on

the Admin¬

course,

istration

stantial

drastic

as

out

cy or a

free market for agriculture

purchasing power with¬
adding to the supply of goods

and

services

thus

—

in

postponing

the

day when
civilian
overproduction will really engulf
US.:

.'■ ■■; '

•'

'

mind.

real

a

But

few

—a

to

anything

as

hard-money poli¬

the

important thing
that a

months

lot of people
led

had

never

ago—was

thought it had. That

psychological reaction
(3) We probably have been un¬ which, if it had not been corrected
derestimating not only the in¬ quickly, could easily have touched
crease
in the
country's produc¬ off a business decline.
tive power, but also the rate of
If
the
Eisenhower-Humphrey,

its

growth

are

now

and

and

this

nation

a

•

the ^tremendous

behind

power

.

.

of160

million

trigger

still

growing fast. We have
highest standard of liv¬
ing ever—and it is still rising.

have

However,

most

ciate

of

recession,

real

potentiali¬

not

yet appre¬

do

us

fully.

.

ing

facetiously — that there
be "something" in the eco¬

much

strength

and

boom

while

many

so

cropping

are

This

weaknesses

up.

likely
which

underestimating

are

we

(4)
r

policy

must

be considered in this picture, as
it is unthinkable that any'Admin¬
istration will stand idly by when
the

economy

into

threatens

deflationary

a

much is

stake

at

spiral.
and

—

slip

to

in

sincerity—puts
of the budget and

reduction

Behind

as

not

conditions, inflation is
really dead, but merely dor¬

But here again it must be

not

ber of rather

intriguing questions.
the Truman-SnyderKeyserling team was in office, it
as

simple matter to foretell the

tration

moves

because

of

the

thev

to follow the New

Adminis¬

were

bound

Deal-Fair Deal

doctrine.
This

was

the

doctrine

of

con¬

stant stimulation in order to main¬

tain

an

point¬

ed out that the conclusions of full

labor force is employed in defense

The Role of Government

economic

suspicion
have full em¬

we

employment can prevail only as
only long as a considerable
part of -the

This fourth point raises a num¬

a

the

uninterrupted

growth

in

it

receives

purchasing

contribute

but does

power

to

the

consid¬

increase

*

If

economic

„

comes

intervention

be¬

the Administra¬
tion must change signals on its
budget and tax policies rather
quickly.
necessary,

ing for the purpose of continued
were

the monetary supply

the stand-by weapons of this

policy.

tax

relief is

stop

a

fore

it

is well

downward
gets
on

movement

started

than

be¬

after

it

the way.

the

mean

Eisenhower Commitment

The Eisenhower Administration
also is committed by the President
to a policy of active and deter¬




can

electric

much

as

As Dr. Burns says,
turn
is

uniquely

boom

Two

alike

are

development
in point.

power

cases

policy means a tremend¬
ous
responsibility for private in¬
dustry, particularly big business.
You

imagine how

can

cal

opposition

these

The

the

politi¬

pounce

upon

something

goes

them.

Eisenhower

to

up

will
if

moves

wrong with

approach adds
deliberate turn-away from

a

the New Deal and Fair Deal
It

stems

the

on

hower

from

Eisen¬

President

his

and

days.
conviction

deep

a

of

part

long

and

red, advocated

by the Fair Deal
their pals who have

or

not

yet tasted power.
However, there is a rather
contradiction

dedication

10

quickly

The

such

the

do

which,

and

because

per

to

re¬

unemployment
produc¬
cent in about a

things

again,

months

of

between

industrial

tion down 30

Once

or

recession

consumption,

serious

in

tumbled

away

horse

horse.

The

to

have

promo¬

return

to

deliberate

Danger of "Too Little, Too Late"
If

a

serious recession gets under

I

way,

doubt

that,

even

if

the

throws the switch

quickly, government intervention
can

the

stop

trend

at

will.

The

key to successful intervention lies
in acting early enough. If timed
properly there is no reason to
the

effectiveness

of

inter¬

vention.

There
feel

that

some

we

observers

never

will

who
have

another cyclical depression. But

I

old

an

customer

if the

mare

was

it

v

All

this

situation

keep
to

and

your

be

the

way

the

down to

us

the

only realistic
with the presenjt

the

outlook

is

to

to the ground and

ear

alert.

/This

is

what

like

I

to

call

my

"better-safe-than-sorry" theory. It
not be

may

much.
for

or

—

of

that

coping

of

way

squared best I
only five
body else

half

brings

conclusion

were

took

recover

asked back, "which
want her?"

you

can

—

But

it

the

is

that matter

any¬

offer you at this

time.

drop.
VII

The

Pattern

for

1953-54

Looking at the two
1954

and

together,

Blyth Group Offers
So. Calif. Ed. Bonds

1953

years

chances

are

An investment banking syndi¬
point in industrial
cate managed by Blyth & Co., Inc.,
production was established last
offered yesterday (Aug. 26) $30,March when
the adjusted Fed¬
of
first
and
refunding
eral Reserve Board index hit 243. 000,000

that

the

high

second

quarter average of
surprisingly high. This,
however, was due mostly to tran¬

>241

was

mortgage

bonds,
series
E,
due
1978, of Southern California Edi¬
Co. The issue

son

was

awarded to

free enterprise
the
underwriters at competitive
sitory factors, such as the warm
frequently-heard
winter of 1952-53; the fact that bidding on Aug. 25 on a bid of
statements that there need not be
99.4399 for a 3%% coupon. Priced
durables then still were in the
any
recession if only business
at
100
and
accrued
interest, to
process of closing the gap created
spreads
it
capital
investments
yield
3.625%
to
maturity,
the
by
last year's protracted
steel
over longer periods and keeps this
bonds are callable at prices start¬
type of expenditures up whenever strike; that, in connection here¬
ing at 103Vz and scaling downward
credit
spurted
the business cycle shows signs of with, 1 consumer
vigorously; and that there also annually.
to

and

system

the

tiredness.

Part of the proceeds of the issue

was a sharlp spurt in Government
will be used to retire bank loans
expenditures.

Dollars-and-Cents Logic

of

the

Under

free

enterprise

sys¬

just don't work out
I expect the auto industry, the
that way and, except in periods
steel industry and Construction to
of emergency, patriotism
cannot
determine the pattern for the bal¬
be
expected to replace' dollars- ance of 1953 and the
early part of
and-cents logic in private busi¬
1954.
ness planning.
Outside
of
moderate
seasonal
To expect this is just as hope¬
less
as
asking labor unions to influences, notably in the nonpractice moderation, not only in durables, I don't see anything too
periods of national emergency. It offset the downdrag generated by
construc¬
is Utopian to expect labor leaders automobiles, steel and
to

relent

higher

their

in

if

wages

for

pressure

they

think

Actually,

that be

management can help to
recessions by expanding in

avoid
slack,
as well as in
flush, times reflects
the "planning bug" just as clearly
the

does

as

argument

that

con¬

in

company's

the

end

Reserve

of

somewhere

out

few

a

sue

me

should

230

between

But don't

235.

index

if it

and
turns

points higher.

gross additions

be

used

1953-54

for the

expected

are

two

to

years

amount

to

$144,134,000. Additional capital
requirements will be met from
present

treasury funds, internal
part of today's issue, and
of undetermined

sources,

financing

new

nature and amounts.
company

southern

cluding

many

farming

in central and

California in

growing
of

and

generates

energy

rapidly

an

area

population,
the

Angeles

cities

sur¬

truck

and

far

1954

as

is

concerned,

Net

fruit growing areas
Joaquin Valley.
operating revenue for the
and

increased
of

about

these

Without
of

observations.
the

sharp step-up in the defense pro¬

cumulative

the actions of the

effect

Government

planners since the end of the
the

Federal

Reserve

Board

235.

And

who

can

might not have

and assuming that the Ad¬
ministration does not get impa¬

war,
pro¬

under

slow
1954

and

the

start

to

build

fire

to reverse a
persistent downtrend,

economy

but

should

end

at

a

lower

level

that that of industrial production than it
starts—but not drastically lower.
better?

say

been

a

was
was

H. D. Wells Joins

Professional Service

gram

tient

duction index today would per¬
haps stand at only 200 instead of

of

in¬

in the San
As

sumer

be

the

program.

Balance of proceeds will

rounding Los

Assumptions for 1954

ob¬

with

construction

Fed¬ sells electric

the

1953

Board

$21,000,000,

connection

to continue the program for which

The

By
eral

admonition

the

tion.

the

bear it.

traffic will

estimated

an

tained

Three Key Industries

things

(Special to The

LOS
Daniel

Financial

Chronicle)

ANGELES, Calif. —H.
Wells

and

Maurice

Smith

have become associated with Pro¬

fessional

Grand

Service

Avenue.

Plan,
Mr.

650 South
Wells

was

formerly Beverly Hills manager
itself, for Walston & Co.
Voluntary Actions Not Enough
the end of 1954 may find indus¬
This
is
a
rather
round-about trial production somewhere in the
way of saying that in case of a
neighborhood of 205 to 215—and Granbery,/Marache Branch
l
business
(Special to the Financial Chronicle)
downturn,
we
cannot that still1 would be a pretty good
rely on voluntary actions on the neighborhood.
SARASOTA, Fla. — Granbery,
part of labor and management to
Such a pattern might involve Marache & Co., members ofotne
turn
the
trend
around
again—
unemployment of some 5,000,000 New York Stock Exchange, have
If

before
are

re¬

trader

Keep That Ear to the Ground

year

a

forgotten;

maladjustments

production

year.

statement

the

know

to

quickly

reces¬

shaved

in

serious

more

1937-1938

and

this

of

with foal. So the horse trader, inof
answering
directly,

pos¬

:

sulted

this thought

trying to sell off

the hay-belly

cent off the rate of

per

was

The

cur¬

between

that

and

existing

that

him

was

wanted

inventory
1949

-

production

of

down¬

expressed

said

who

"Each down¬

industrial

run,

planners

mild

1948

associates

that, in
this country will
prosper
more
under our tradi¬
tional free enterprise system than
under any form of planned econ¬
omy, regardless of the shade of
the

The

(2)

for the

stead

of

about

I

minded

as

case

sharp

a

a

quick resumption of
pronounced boom.

When

sibilities:

(1)

of
a

the other day in my Business Out¬
look column, a reader wrote in

booms

shaped | by

patterns stand out

logical

as

for

or

a more

that precedes it."

sion

Republi¬

a

This

defict

doubt
The

private business

share

Administration

Moreover, this policy was based
the theory that it is easier to

on

Ad-

ever

just

expectation
turn

spending can, and should, any prediction must make some
year
ended June 30,
1953,
by increasing the assumptions.
$134,140,791, and net income
the national income pie
or stimulating value, it has
Assuming that there is no de¬ $23,174,067.
to exceed the cut in government designed to go to labor.
terioration
in
the
international
There is nothing callous or evil situation
spending. This, of course, would
which
necessitates
a
If

tional

financing — in contrast to
production and employment—de¬ the involuntary kind in which the
spite the decided inflationary bias Eisenhower Administration cur¬
inherent, in such a policy. Both the rently is caught through no fault
wage-price spiral, via a continued of its own.
|
profit squeeze, and deficit financ¬
increases in

Eisenhower

announcement of

in

civilian goods supplies.

sufficiently demon¬

the

cent

of

mant.

erable

was

head

ployment
not

to

tem,

lies

that

are

—simply because no two
preceding them are alike.

economy as possible. The
termination of RFC and the re¬

gradual

a

business

out

the

bal¬

aims.

this

long

as

il¬

it still

the

in taxes at the

economic

be¬

best

by the fact that

work—where

long

is

all

ance

its

premise

Too

politically.

As

Risk

is

Administration

this

lustrated

v

that

Calculated

a

the

lieves

back

of

ious

..

proceed¬
the basis of the calculated

That

Finally, there is the factor that

government

any
f•

to get out of hand.

ens

the country's strength.

of

for

,

that

—in

growth
potential,
more
than not, is the area in

talk

A can stop any decline
that may develop before it threat¬

the

in

verve

chance"

.•

Administration

on

risk

yet.
discount most

of

No two recessions

minstration is determined to turn

without Korea.

even

Again

The

even

must

is "no

.

Once

nomic picture we are overlooking.
Otherwise there could not be so

lies, the

Administration

■

i

as

you can

brave

whose

of

Whenever I find myself cornered
these days I usually admit — and
not

the

that there

factor

ties

the

economic

new

anybody about it

feeling that this is the

a

one

point, for

where

members of the team have not told

That Certain Something
I

to

as

government intervention

the

now

conclusion

any

form

the

fluctuations.

a

Burns team has already arrived at

We

growth.

in

policy

boom will continue to create sub¬

further

another, we
prepared to pay the price

strated

by the agility with which

it moved to

expansion

construction

of too Much

That the Administration is leery
too much recession is demon¬

of

along—con¬
combination of de¬

economy

fense

it

or

name

It has been

Leery

(1) The "momentum" which has
carried

one

must be

for

Here

of them:

some

under

Adminis¬

if the

tration sets its mind to it.

A

con¬

the decline

verse

of

sources

is

op¬

economic

ripe for such

a

Unfortunately,
sure

are

nobody

can

be

in advance where that point

late

next

will

conditions

reversal.

left

be regarded as

the

pretty

much

to

and this probably opened a branch office at 1307
the signal for Main Street. Associated with the
government to step in and new office are George J. Moriarty
year

try to halt the decline.

and

Patrick

J.

Moriarty.

ma

The Commercial and Financial Chronicle

(742)

Continued from page

tration

9

Commission

Commission

Aims oi
of

the
can

a

well, I think, for the success tion. Thank you, Senator Dirksen,
first Republican Adminis- and gentlemen, very much.

gers

the

of

Intention to Relax on

just want to mention
things before closing.

The fall is bringing to the money markets sizable amounts
State, municipal and corporate obligations, and these flotations^
along with the private deals, will no doubt have an effect upon the
market action of Treasury securities, especially those in the longerterm classification. Therefore, it is not at all surprising that some
buyers of Government securities are inclined to be not too robust
in their operations at the present fime.

two
The
busi¬

securities

the

in

busi¬

ness

and in the public utility

ness

that led to the great reforms

instituted by these laws are con¬
which
the
Commission

ditions

would hate to

see

want

think

to

you

I have said that

I don't

return.

by anything
plan to relax

we

diminish the effort to eliminate

or

Hie frauds and abuses which rep¬
resent

minor

a

part of the

secu¬

rities industry

and the utility in¬
dustry, but which so blackened
the name and reputation of these
industries
How

I

about

am

I

this

to

30's.

and

gives me great
budget of the SEC
93% toward salaries.

about

say

think

can't

of

anybody more
sympathetic than I am to the ob¬

jectives
tion

of the new Administra¬
getting the budget under

in

control.

In

this

appropriation of the SEC

$5,245,000 in fiscal
-$5,000,000 in fiscal 1954.
the

of

the

tasks I had

SEC

.about

to

was

release

as

1953

to
One of

member

a

participate in

other

to

cut

was

:from

the first

the

connection

callings

of

members

of

the

Corn-

staff, and

we

are

under

35

emission's

Lower

Transportation Ratios Reflect Rail Efficiency

The

dismal

market

and

the time of this writing has continued its

up to

discouraging action.

July railroad

began to | appear last week and, as had
continuation of the sharp improvement

earnings

reports

news,

being pretty

are

there

is

little

the

well

analyst

over

a

ignored.

Under

do but

continue

can

year

These

ago.

the

circumstances,

to stress

the

vast

improvement that there has been in

recent years in. the operating
efficiency of the railroads and the fact that this favorable trend

is

continuing.

termine

the

Eventually such fundamentals, which largely de¬

railroads'

earnings

power,

presumably

be

must

re¬

flected in market action. As a measure of the
improvement that
has been taking place, the transportation ratio of all Class I car¬
riers declined from a high of 42.1% in-the first
postwar year,

1946, to 36.9% last

During the first half of 1953 there
nearly two points.

year.

was

interesting, and impressive,
naturally most concerned with the

performances of individual roads.
have listed

the

activity

In the following tabulation we
transportation ratios of 45 roads for the first six

months of the current year, compared with a
year ago, as a meas¬
ure of the extent to which
operations are

continuing to improve.

instruction from the Bureau of the

It

Budget, with which we are mak¬
ing every effort to comply, to trim
.expenses in the next few months

and the two Pocahontas

the exception of Atlantic Coast Line
roads, Norfolk & Western and Virginian,

all

of

pared

the

get through this "debt limit" pe¬
riod

also to

and

submit a budget
further trimmed, if
possible, for fiscal 1955. I am not
here to plead for the SEC budget,

^request

even

because
be

think

I

in

done

great deal

a

can

of

terms

efficiency,
reorganization and streamlining of
these regulatory and administra¬
tive tasks. I am hopeful that with
the staff

reduced

as

accomplish

-can

this year we

much, if not
more, than in previous years. But
I do call your attention to the
danger that may exist if the fraud
the

and

as

unlawful practices which

few

individuals, always on the
fringe of the industry, engage in
a

which

are

stopped
of the

to

now

extent

some

diminished by the work

or

SEC, the danger that would

exist to the industry if those prac¬
tices and conditions should, be¬
of

cause

the

brought

failure

by

on

of

the

SEC

inadequate

staff,

be

noted

the

that

roads

with

listed

their

transportation

ratios

Market

below

30%), New York Central, Chicago, Rock
Great

Northern.

It will

be

noted

in

this list that while New York Central recorded
its ratio the ratio itself, 42.2%, was still
above the Class I average of

a

Island

connection

&

with

sizable drop

Railroad Transportation Ratios, Six Months
Through June 30
1952

rather-

the medium of

switches, the filling in of maturities and the aver¬
aging down in price of purchases made at higher quotations. This;
is the time of the year when a great many of the operators in
Treasury obligations are away on vacation and this, along with
the September refunding, means that there has not been any great,
rush

to

that

are

make

in

moves

securities other

Government

than

those

pretty much required business.

Nonetheless, it is reported that not

few important

a

switch

operations have been consummated mainly with commercial banks..
These

institutions, it is indicated,

in

are

position to take tax;

a

certain Government issues, because of the level of earn¬

on

ings which have been helped materially
There appears to

rates.

in

because

be

instances

some

while in others there is

there

is

material

no

the higher

by

interest

particular pattern to these trades*,

no

is

there

lengthening of

a

maturities;

shortening of maturities. In other

a

change in positions,

cases,,

because practically the

maturity is obtained through the switch of securities.

same

Active Price

Averaging

well

as

the "old friends," the public-

as

funds, have been making commitments in not too sizable amounts
in certain of the
at

longer term 2J/2%

higher levels.

bonds which

purchased

were

The averaging down in price, according to ad¬

vices, is rather important at times

as

far

as

volume and activity

concerned, considering the thinnest of the market.

are

municipal

funds

have

been

the

important

more

State and

in

ones

this

operation.

Filling in of maturities continues to be important, according
to

advices, with the intermediate term issues the

some

which

of

most

though there
that

these

commitments

are

quite

are

being made.

It

few institutions, including

a

attracted to the discount

are

ones

in

seems

as

banks,

some

obligations because of the yield

after taxes.

2V4S of 1959-62 In Spotlight

Point
1953

be

Operations Limited

in

inordinately high and well
36.1% for the first six months of 1953.

Atchison, Topeka & Santa Fe

volume ancft

as

Government market, although on the thin side, and not
too active at times, manages to do a fairly good business through

during

Eight of the roads represented were able to hold their trans¬
portation ratios for the six months below 30%. Of these, most
were Western roads.
The South was represented by Gulf, Mobile
& Ohio and the coal carriers were
represented by Virginian and
Western Maryland. Compared with a
year ago, the best relative
performances were those of Central of Georgia and Denver & Rio
Grande Western, both off more than four
points. Denver & Rio
Grande Western,
incidentally, dipped below 30% for the half year.
Others paring their transportation ratios
by three points or more
during the interval were Southern Railway, Western Pacific (also
went

far

as

that continues to

market

a

Institutional investors

Pacific and

important factor

an

in

are

The

period.

below appropriation levels to help

will

have been

concerned
thin and limited.

losses

While the industry performance is
are

tax purposes

a

further year-to-year cut of

investors and speculators

The short-term market is still the most important one, and it
is the opinion of many money market followers that it will con¬
tinue to be that way for sometime to come. Switches mainly for-

been expected, disclosed

favorable comparisons, as well as some further favorable dividend

I

what

because

The

concern.

goes

20's

the

in

say

By JOHN T. CHIPPENDALE, JR.

Although the September refunding is of prime importance to1
the Government market, there appears to be a growing realization
that competition for the investment dollar is going to be as keen
of

other

conditions

Governments

on

as ever.

Frauds and Abuses
I

Reporter

s.n_

House Committee last year.
No

Our

assure
you that much as I miss
Chicago and all my friends here,
it is a real privilege to serve in

Newly Constituted SEC

1

-

■

since

established. I

was

held before and the each is addressing himself to the Washington under such circumrkmhiomc that Ha ahAari
Thic
subcommittee of the problems that lie ahead. This au¬ stances with the new Administra¬

fcy hearings
report

Securities and Ex¬

of the

change

Thursday, August 27, 1953;

...

Decline

The 2!/4s of 1959/62 appear to be among the best

liked issues

29.8%

32.0%

35.5

32.8

Baltimore & Ohio...

37.7

39.8

2.1

Boston & Maine

41.8

43.0

.1.2

Central of

37.5

41.8

4.3

41.3

43.4

2.1

opportunity for appreciation while the yield both to maturity and
after taxes is still favorable.

Atlantic

Coast

Line

____

Georgia.

Central of New

Jersey
Chesapeake & Ohio

2.2
*2.7

31.2

31.9

0.7

rise up to haunt you in the indus¬

Chicago, Burlington & Quincy

35.7

36.8

Chicago & Eastern Illinois.
Chicago Great Western

35.8

37.0
32.9

It is being pointed

the reinvestment medium for tax switches.
that

out

1.0

the

price at which

1.2

31.9

as

institutions continuing to use this obligation

bonds

these

selling

are

affords

an

1.1

try and haunt

in the list with many

in the

us

ministration.
the

new

Ad¬

reputable

The

and

legitimate investment banker,

broker

and

dealer

and

the

rep¬

honest ahd able segments
of the utility industry should
not,
I believe, be made to suffer again

utable,

____

._

Active Market in 3*/4s
The 3V4S due 6/15/78-83, are

Chicago, Milwaukee, St. Paul & Pac.
Chicago & North Western

40.1

42.6

2.5

45.8

48.4

2.6

Chicago, Rock Island & Pacific

33.8

36.9

3.1

37.9

2.5

bond, with the private
among

Delaware & Hudson

__

35.4

1

reports, which
hands.

Pension

Delaware, Lackawanna & Western..

42.2

43.3

1.1

what they suffered in the 30's by
reason
of a failure on our part

Denver & Rio Grande Western

29.1

33.3

4.2

Erie

39.2

40.8

1.6

to

Great

33.9

36.9

3.0

Gulf, Mobile & Ohio

28.5

28.8

0.3

Illinois Central

35.2

36.8

1.6

Kansas City Southern,.
Lehigh Valley

28.4

28.6

0.2

38.4

38.6

Louisville & Nashville

33.0

35.6

2.6

the

Minneapolis, St. Paul & S. S. Marie

41.5

42.0

0.5

was

Missouri-Kansas-Texas

33.7

35.5

1.8

Missouri Pacific

still

moving

into strong
in this

the State and municipal

as

ones

tax-free bonds.

36.2

are

indicated, have been active

well

as

being well bought, according to

bonds

funds, it is

0.2

by saying

these

means

laws

the

out

carrv

which

the

in the public

protection

of the

purposes

SEC

administers

interest and for the

of

investors

and

con¬

sumers.

I
a

want

word

to

mission

conclude

two

or

about

itself.

As

you

Com¬

may

be
of

aware,
the SEC is made up
five members, no more than three

be

of

the

five.
"two
of

the

Chairman

is

President
This

vacancies

one

among

by
the

that because of

and

member's

party.

designated

from

meant

law to

political

same

Northern

...

.

the expiration

term, it fell to

37.2

Orleans, Texas & Mexico

30.9

31.9

Central

42.2

45.5

34.2

35.4

41.9

42.2

0.3

New York,
New York,

H^ings that has been
gratifying to
fications

and

other four

me

of

is the fine

high caliber

and

the

particularly

Commissioners

harmonious

three

One

quali-'
of

the

and the

energetic




way

some

these sales going

the

partially exempt bonds, with the 2%%

the main

one

in

a

rather

this movement out of the

made

so

due 1960/65 being

large switch operation. It is believed that
longest tax sheltered Government issue

that the sellers could reinvest the money

in totally

Heavy Non-Government Borrowing Looms
Demand for funds, it is believed,

will continue to be sizable

and, accordingly, there

seems

that

obligations will continue to compete with,

to be

no

great change yet in opinions

31.1

30.0

*1.1

40.li

1.2

Pennsylvania

41.4

44.2

2.8

Reading

36.9

39.3

2.4

St. Louis-San Francisco

34.7

36.4

1.7

St.

26.1

27.7

1.6

great extent.

30.9

31.9

1.0

the longer Government obligations will do too much on the upside

Louis Southwestern

with

confirmation,

been

38.9

Pacific

Southern Pacific

Commissioners.

have

there

Northern

Seaboard

»ew

hand,

Norfolk & Western

President

Eisenhower to appoint,
Senate

ether

According to advices, there have been some important trades
in

1.2

New Haven & Hartford

the

largely into tax-free issues.

3.3'

Chicago & St. Louis....

On

sellers of the 3V2S with the money obtained from

1.0

York

buyers.

1.0

New
New

of whom are permitted
by

The

*

...

the

Air

Line

36.1

36.5

0.4

30.3

33.7

3.4

Texas & Pacific

30.6

31.6

Union

35.6

36.6

1.0

ment.
no

1.0

Southern

Railway

Pacific

Virginian

24.6

23.0

Wabash

40.9

41.2

29.1

31.9

2.8

27.9

31.3

3.4

The

indications

while this
The

of

an

the

money

municipal offerings
that

corporate

are

that will be around for invest¬

going to be large and there

flotations

will

slow

down

to

are
any

Because of these conditions, it is not expected that

financing is going

tightness in the

on.

money

markets has not yet had too much

effect upon the demand for Treasury

issues, although there

0.3

Western Maryland

non-Government

those of the Treasury for

Western Pacific
♦Increase.

...

'

*1.6

have

been

instances

in

which

commitments

have

been

curtailed

because of this condition. It is believed, however, that open market

operations will tend to keep the money markets pretty much on
an even

keel.

v

.

4

.

.

,

Volume 178

Number 5250

The Commercial and Financial Chronicle

.;.

(743)

The following statistical tabulations

Indications of

latest week

month available.

or

_

Business

Activity

_

Dates shown in first column

l

month ended

or

Latest

Indicated

steel

Equivalent
Steel

operations

(percent of capacity)

Previous

Month

Week

Ago

§94.9

*95.9

92.6

Aug. 30

§2,138,000

*2,162,000

2,087,000

(net tons)

42

oil

condensate

and

output—daily

Gasoline

<bbls.)

output

2,069,000

6,594,750

6,538,250

6,550,600

6,278,900

—Aug. 15

117,092,000

7,063,000

7,088,000

7,177,000

24,488,000

23,128,000

Aug. 15

25,561,000

24,477,000

———J———Aug. 15
——Aug. 15

(bbls.)

output

2,157,000

2,196,000

2,257,000

2,657,000

10,281,000

9',744,000

10,739,000

10,342,000

Aug. 15

8,635,000

8,576,000

8,778,000

>

unfinished

and

143,577,000

143,319,000

143,820,000

Kerosene

(bbls.)

Distillate fuel

ASSOCIATION

Revenue freight loaded
Revenue
CIVIL

at

————Aug. 15

31,681,000

29,644,000

110,727,000

106,710,000

94,912,000

95,280,000

Aug. 15

50,233,000

49,488,000

47,779,000

51,959,000

.Aug. 15

-

32,735,000

———Aug. 15

—...

807,387

785,349

791,414

Domestic

warehouse

Dollar

U.

659,291

652,005

621,519

CONSTRUCTION

$259,040,000

$311,332,000

$253,497,000

(U.

167,693,000

140,584,000

Bituminous coal

and

104,845,000

143,639,000

112,913,000

1,278,185,000

Aug. 20

81,184,000

116,636,000

80,540,000

27,003,000

32,373,000

Beehive

coke

(tons)

DEPARTMENT

9,565,000

*9,365,000

9,150,000

558,000

536,000

669,000

101,100

90,700

94,300

66,200

92

84

95

INDEX—FEDERAL RESERVE
100

=

Electric output

IRON AGE
Finished

95

DUN

8,431,603

8,513,782

^

122

(per lb.)——— _—.—.Aug. 18

4.634c

Aug. 18
Aug. 18

$56.76

8,460,427

$56.76

$43.17

$44.42

(E.

J.

M.

&

As

Aug.

BANK

,

150

———

all

Oats

4.634c

4.376c

Flaxseed

$56.76

$55.26

Rice

$44.83

,

OF

(St. Louis)

Zinc

(East St.

————■
—

Louis)

S.

DEPT.

$42.00

Government Bonds

corporate

.1

(bushels)

bags)

grain

(bushels)

(tons)

Hay,

wild

Hay,
Hay,

alfalfa

—Aug. 19
Aug. 19

14.000c

14.000c

13.500c

16.000c

Hay,

lespedeza

13.800c

13.800c

13.300c

15.800c

Beans,

11.000c

11.000c

11.000c

14.000c

Peas, dry field (100-lb. bags)
Soybeans for beans (bushels)

93.10

93.38

97.05

103.80

104.14

t03.80

109.79

108.34

108.88

108.52

114.27

106.21

105.86

112.00

103.30

102.63

109.06

Sugar

93.25

103.97

101.97

106.92

103.47

103.47

109.42

Hops

Group

—.——Aug. 25

106.21

106.56

105.86

112.93

Apples,

—Aug. 25

3.00

2.99

2.99

2.7(

—————Aug. 25
Aug. 25

3.52

3.50

3.52

3.1

3.26

3.23

3.25

2.94

3.40

3.38

3.40

3.06

3.55

3.59

3.2?

—

U.

DAILY

YIELD

AVERAGES:

Government Bonds—..

S.

Average corporate
Aaa

.

————————„

—

—

Aa

.

I_—

Baa

Aug. 25

Railroad Group
Industrials

MOODY'S

Group

received

OIL,

(tons)

AND

PAINT

AVERAGE

1949

3.38

3.30

3.40

3.01

Aug. 25

421.4

420.1

427.6

430.4

3.86

—

—

LOT

AND

by dealers

of
of

Banks

—.
—_———_——Aug. 15
end of period
——Aug. 15

98

93

81

608,519

581,573

431,711

106.00

106.05

106.21

PRICE

ON

EXCHANGE

(customers'

Customers'

other

purchases)

1
—Aug.

———

22,596

21,635

21,541

24,848

—Aug.
Aug.

654,389

626,405

597,225

704,590

of

Total
,.

.

$32,348,017

Aug.

19,074

20,029

17,594

21,71'

93

127

102

19,902

17,492

Aug.

529,602

547,472

467,813

704,590

3,039

4,573

—

-

.

!

3,398

610,293

1

526,563

542,894

464,415

$21,302,648

$21,535,810

$18,341,131

$25,315,843

STOCK

Other

Aug.

149,190

178,530

126,710

161,590

149,190

178,530

12 6" 710

Aug.

272,230

258,700

247,510

ON

THE

NEW

252,660

189,020

210,580

5,850,830

4,373,410

4,311,210

6,103,490

4,562,430

4,521,790

5,705,380

ACCOUNT

Total

Other

438,360

490,280

105,430

61,260

88,800

385,660

410,630

451,650

Aug.

685,640

446,920

499,430

554,010

Aug.

106,900

81,120

101,190

99,900

—————Aug.

14,000

15,600

9,600

7,200

.J.

floor—

——Aug.

119,440

78,280

81,030

133,440

93,830

90,630

Other

191,395

196,615

54,300

62,500

255,837

218,478

296,824

243,783

298,887

272,778

359,324

288,443

Aug.
Aug.

i

1,053,550

710,875

788,085

891,190

sales

Other

sales

Total

LABOR— (1947-49

=

—

U.

S.

DEPT.

131,160

Aug.
SERIES
100):

NEW

160,900

955,487

682.418

788,484

794,283

1,117,967

813,578

949,384

948,503

OF

Commodity Group—

products—.—.—.——_;

Processed

commodities other than farm and foods—

'Revised
of Jan.

3-

1,

1S53 as




112.2

*96.3

98.9

110.1

105.2

*104.8

106.3

111.1

93.1

101.8

96,141
228,999
211,291

CLASS

S.

$1,698,634

$1,512,734

I

1

from

for

fixed

U.

4,060,908

14,929,933
98,024,820
3,888,471

110,959,602

income

fixed charges

117,891,369

4,213,933

~

deductions

$83,094,887

16,382,026

115,173,535

113,830,461
80,091,058

$95,393,045

.

—

$101,502,343

19,780,490

income:

—

94,136,349

2,850,294

60,934,050
2,892,194

74,420,356

77,240,764

58,041,856

41,813,744

41,971,818

40,270,450

50,882,877

56,165,245

42,473,643

33,621,076

6,972,093

28,356,475

6,285,255

2,119,976

8,361,350

3.29

3.37

2.84

$7,92"T500

$20,077,450

$1,404,350

$272,732,350
8,740,766

$266,123,134
4,670,248

$263,106,924
7,925,452

$263,991,584

$261,452,886

$255,181,472

2.438%

2.438%

2.339%

77,207,818
—2,787,462

charges..

—„—— -

taxes

<•—

,

-

appropriations:
stock

——

income

:

to fixed

'

charges——

TRANSACTIONS IN

MARKET

DI¬

SECURITIES

GUARANTEED

AND

S.

—*

--

•'

A.—Month of July:

GROSS

STATES

:

Julv

DIRECT AND

DEBT

31—'

-----

balance-,

fund

General

debt

Computed

_L

—

—

U.

S.

GOVT.

annual rate

face
any

—

STATUTORY DEBT LIMITATION

114.8

114.5

i

1

(000's omitted):

—As of July 31

at

s

amount

that may

be

outstanding

TOb&r.—

$275,000,000

266,071,061

263.072,711

52,072

34,212

$272,732,350

debt.—.

$275,000,000

272,669,407

-

°T0ta°de?i7 public
GUTreansL'yd.0.b_"

.

„

$275,000,000

62,943

time

$266,123,134

$263,106,024

116.8

—"

Aug. 18

^Includes 665,000 barrels of foreign crude runs,
against the Jan. 1, 1S52 basis of 108,587,670 tons.

figure.

111.0

97.7

Aug. 18
Aug. 18

.

—

*110.5

110.8

1—.1—.Aug. 18

—

foods

Meats

All

Aug. 18

commodities

Farm

250,687

$1,769,259

—

U.

OF

154,220

162,480

Aug.

sales

PRICES,

0f

Total

purchases

WHOLESALE

245,576

262,814

44,610

—Aug.

—.————

Total round-lot transactions for account of members-

Short

110,861

248,152
—

107,882

304,791

120,447

—

132,771
317,314

GUARANTEED—(000's omitted):
Aq

226,360

43,050

Aug.

Total sales

$563,630

130,914

325,012

purchases"—III—————I——I—-

Net

Net

280,470

-Aug.

sales

Total

$641,425

$681,920

106,050

Aug.

——1—

£7,948,000

:

income

of

OF

98,850

Aug.

purchases
sales

£18,205,000

I

omitted);

institutions—-

preferred stock

UNITED

-1———
—

Short

All

On

564,930
102,360

—

sales

£19,104,000

BANK

LOAN

(000's

—

common

Ratio

transactions initiated off the floor—

Total
-

666,130

——

—

HOME

ITEMS

available

RECT

Aug.

—

sales

!3.39

NONFARM

—

operating

after

TREASURY

Aug.

sales

IN

June

MEM¬

OF

—i

the

—

of

income

On

5,506,820

—Aug.

on

3.21

5.58

BRITAIN-

deductions

Dividend

198,560

—!—Aug.

,

initiated

S.

income

Income

'Net

Aug.

purchases

GREAT

Depreciation (way & structure & equipment)

sales

Other

4.52

3.50

5.46

of May:

Miscellaneous

Other

YORK

—

Short

5.44

(Interstate Commerce Commission)—

railway

Federal

purchases

IN

———

Other income

(SHARES):

FOR

U.

•

RYS.

STOCK TRANSACTIONS

.

transactions

Total

5.61

4.75

FINANCING

INCOME

Month
Net

sales—

Total sales

5.41

6.26
5.58

4.70

—

—-——J

Total

268,990

580,210
Other

5.60

6.30

(24)

trust companies-;....——

Income

SALES

TRANSACTIONS

Short

5.44
5.46

-

Tel. & Tel.)

BANK, LTD.—Month of July

OF

SELECTED

161~5S0

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

OF

July:

—————3.40

Miscellaneous lending

Total

Aug.

sales

ROUND-LOT

of

—

—

Individuals

Aug.

OF MEMBERS

Total sales

Amer.

savings banks

Mutual

:

sales—

—1

sales

YIELD

————

2,537

Aug.

—

shares

Round-lot

Short

AVERAGE

STOCKS—Month

—

ESTATE

Bank and

21,638

*—i

ACCOUNT

177

147,946

77

18,981

Aug.

EXCHANGE AND ROUND-LOT
FOR

$27,231,578

—Aug.

—J—

ROUND-LOT

206

Savings and loan associations-..—
Insurance companies
——.--i.-—

purchases by dealers—

Number

-

$28,221,869

———„—i—Aug.

by dealers—

shares—Total

sales

TOTAL

$30,299,003

i

sales.——.

Round-lot

-

3,173
218

209

„

„—

BOARD—Month

—

——■——

.

225

178,354

(10)

AREAS

STOCK

Y.

N.

sales

tales

230

(tons)

CAPITAL ISSUES

REAL

Aug.

short

NEW

COMMISSION:

—

sales

Customers'

Other

30,947.

2,755

(200) —

MIDLAND

Aug. 21

SPECIALISTS

shares—Total

Short

62,560

30,910

"

INDEX—

.—

sales

63,559

29

108.86

REPORTER

short sales——.—

of

64,00!)

10,169

89

583,898

other sales--—_——

Number

(15)

Average

Customers'

Round-lot

92,489

—

(tons)_

(125)

Insurance

-—1—i

Dollar value

102,320

2,774

(not includ.

194,899

Customers'
of

61,263

(25)

Utilities

219,857

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Number

42,080

30,479

WEIGHTED

195,839

—

value

43,275
100,416

——

COMMON

214,656

shares—.

Dollar

200

261,943

orders

Number

7,223
11,211

(bushels)

crop

states)

Industrial

346,228

——

Number

MOODY'S

232,550

SECURITIES

—

23,292

(tons)

(pounds)

260,535

100

DEALERS

EXCHANGE

seed

2,254,855
7,599

30

states

Aug. 15

—_——————

at

347,504

32,697

3.51

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

Odd-lot sales

(3

Aug. 15

DRUG
=

Apricots

376,773

2,125,427
7,223
10,925

<

(12

2,610

291,682

1,354,010

33,721

(bushels)
(bushels)

Cherries

31,755

:

Graper (tons)

3.20

——

activity

of

orders

Unfilled

3.34

3.54

ASSOCIATION:

(tons)—

(tons)

Percentage
-

3.63

3.54

3,430

382,835

and

sugar

commercial

Pecans

5,147
16,777

(tons)

Railroad

INDEX

COMMODITY

Production

-3.61

3.56

—

NATIONAL PAPERBOARD
Orders

3.85

3.63

—Aug. 25

Group

3.87

Aug. 25
——Aug. 25

———.

—

Utilities

Public

.

5,981
17,140

295,018
1,376,985

(pounds)

Pears

——

10,935
42,438

30,058

2,005,845

Peaches

MOODY'S BOND

bags)—j,*—

12,378

42,937

5,804
17,264

-,r—

(100-lb.

(tons)

Broomcorn

83,316
15,136

12,574

(pounds)

beets

98.41

102.30

103.13

104,424

3,343

(tons)

Sugarcane for

101.97

_——

105,274

29,671

(tons)

(pounds)
Potatoes
(bushels)
Sweetpotatoes (bushels)

3.56

Industrials

Group

timothy

Peanuts'

Tobacco

48,660

43,135

,

(tons)
and

dry edible

Aug. 25
—Aug. 25

Group

Utilities

(tons)

clover

15,910
31,002

43,439

105,284

35.350c

Aug. 25

Public

227,008

17,422
39,955

110,027
14,605

(bales)

all

98.09

Railroad

246,728

21,363

50,102

;

24.200c

—Aug. 25
Aug. 25

1,268,280

17,452

121.500c

I

217,283

1,318,820

28,701

42,204

(bushels)

80.750c

V

238,646

324,635

'243,865

____

29.775c

93.00

353,336

-

29.675c

—

Aaa

324,496
19,851

(bushels)

78.750c

'

1,052,801

(bushels)

29.150c

-Aug. 25

1,291,447

821,372

■_

29.450c

—

3,306,735

1,174,708

304,647
1,231,197

(bushels)

83.000c

.

3,336,501

1,202.829
878,331

spring

Sorghum

176,356

3,330,418
;

29.200c

'

Average

349,072

OF AGRICULTURE—

(bushels).,

(100-lb.

Hay,

MOODY'S BOND PRICES DAILY AVERAGES:
U. S.

$539,000

(in thousands):

29.500c

———__—

—

$408,000

;

—Aug. 19

at

.

$429,000

REPORTING

Aug. 19

at
at

$546,700

YORK—

_

103.13

(New York)

Lead

$1,250,000

FED¬

CROP

—

105.86

Lead

——;

NEW

—

COMMERCE)

—Aug. 19

———-————.Aug. 19

at——

$576,000

(000's

(bushels)

Cotton

—

York)

(New

July

OF

1

(bushels)

154

1

Export refinery at
tin

34,133,000
$450,150,000

(bushels)

spring

Rye
4.634c

U.

Durum

7,718,084

QUOTATIONS):

Domestic refinery at——

34,684,000
$428,213,000

(bushels!

Winter

184

Electrolytic copper—

Straits

35,034,000

omitted)——

(DEPT.

of August 1

all

Barley

(per gross ton)

PRICES

of

OUTSTANDING

(000's

3

GINNING

Other

—

—

ton)—

PAPER

July

of

Corn,

&

Aug. 20

(per gross

Scrap steel
METAL

—

COMPOSITE PRICES:
steel

Pig iron

Aug. 22

„

INDUSTRIAL)

INC.

BRADSTREET,

-

—_

BOARD

All

AND

7,724,000

$434,959,000

Month

—

PRODUCTION

Wheat,
Aug. 15

—

(in 000 kwh.)

(COMMERCIAL

As

722,000

Aug. 15

.

EDISON ELECTRIC INSTITUTE:

FAILURES

73,351,000

between

—

RESERVE

COTTON

9,788,000

Aug. 15

AVERAGE

shipped

——

of

CROP

——_-Aug. 15

——

SALES

STORE

SYSTEM—1947-40

35,000,000

1,218,804,000

(tons)
.

As

59,381,000

23,661,000

OF MINES):

(tons)_

lignite

Pennsylvania anthracite

9,556,000

39,990,000

87,883,000

Aug. 20

BUREAU

S.

and

omitted)

$1,366,068,000

154,195,000

municipal—

OUTPUT

21,177,000

CASH DIVIDENDS—PUBLICLY REPORTED
BY
U. S. CORPORATIONS — U. S. DEPT. OF

ERAL

Aug. 20
—Aug. 20

:

Federal

COAL

stored

Total

COMMERCIAL

ENGINEERING

—

Aug. 20

and

21,226,000

I

660,208

of cars)

(no.

construction

State

goods

on

COMMERCE

(number of cars)—

construction

Public

125,622,000

11,291,000

—

foreign countries

RAILROADS:

construction

S.

Private

$199,764,000

111,679,000

10,696,000

credits

exchange

Based

NEWS-RECORD:
Total

$214,382,000

115,327,000

———I

—

shipments '———

805,756

Aug. 15

,

freight received from connections

ENGINEERING

Ago

FEDERAL RESERVE BANK

t-

'

—Aug. 15

at

AMERICAN

OF

(bbls.)

at

(bbls.)

Year

Month

29,721,000

__

gasoline

(bbls.)

oil

Previous

OUT¬

YORK—As of July 31:

Domestic

115,979,000

;

at—*

oil

Residual fuel

Exports

8,720,000

(bbls.)

Stocks at refineries, bulk terminals, In transit, in pipe lines—
Finished

,,,

,

$212,686,000

STANDING

ACCEPTANCES

Imports

of
__Aug. 15

—

———_—..

Kerosene output (bbls.)^
Distillate fuel oil output
Residual fuel oil

(bbls.

average

gallons each)
runs to stills—daily average (bbls.)

,

of that date:

are as

Latest
DOLLAR

OF NEW

Crude

■■

of quotations,

cases

Month

AMERICAN PETROLEUM INSTITUTE:

Crude

either for the

are

■

99.6

BANKERS'

castings

in

or,

r

•

Ago

Aug. 30

to—

ingots end

>•

-

that date,

Year

Week

IRON AND STEEL INSTITUTE:

AMERICAN

on

production and other figures for the

cover

k

.

week

27

95.7
114.8

§Based

on

new

annual

capacity of

117,547.470

112.8

tons as

outstanding

Deduct—other

subject

gations not
Grand
Balance
under

total

face

public

debt

obli-

of

authority

obligations,

—

—

...

,no

.,..,1

^84,0^.9

601,398

634,631

$272,148,321

debt limitation

outstanding

amount

above

to

$265,521,736

$262,472,292

issuable

2,8ol,678

q,7P%.

9,478,263

12 527 707

12,521,10/

28

(744)

The Commercial and Financial Chronicle...

Continued

from

ply

11

page

that

it

can

interruptions
is

there

Under Gold Coinage,

Is Gold
Inst Another Commodity?

all be dead!
of senility, either!

And not

iremarked,

One

has

this

that

encountered

such

offers

no

putes

over

"cost of

that

solution

requisite

retaining

"cultural

for

to

living." The "index" be-

f>eriod"

because

'base

its

loses significance in

soon

the

changing scene of economic
-development. This does not have
to

be

by its

change

is

freely

who

the

ad-

practioners

own

statisticians
;

it

argued;

♦nitted

gold
is alleged to be, with reference
to
which
the
cost
of
living
-■changes? What is there in living
as

that does not change which

does

change in price under inflation?
the

composes

level which

is

it

real

wage

sought to

keel

in

keep
of

terms

anoney?

Certainly not gold! Nor can it
be capital goods or durables, such
refrigerators,

automobiles,

electronic devices, or even cloth¬

ing;

these

most

"over

become

obsolete

night" at times and
reflect a change
"value" which is not

money

confused with

month in

The

by obsolescence

or

absolute

of

crops

such

food

(not

tracts

in

wheat,

as

staple

and

corn,

good
of what is happening to

the "value"
calator

of

very

a

Every

money.

clause

(and

in

business

they

es¬

con¬

becoming
increasingly common) should be
t>ased on such a moving annual
average of the principal markets
in food

are

without

crops

(except

ence

in

refer¬
individual

any

the

contract

using this basis) to what
price level has been at any
particular time or place.
the

With

this

business

academic

tackle

controlling
ivith

established

and

then

can

-device

the

the

we

with

mind

of

index,

so

such

household

a

ther¬

mostat, the effect of a rise in the
price level (temperature) will be
to produce a fall in the money
eupply

(heat

supply)

versawith

and vice
administrative

no

•discretion
(no hand operation)
awhatever involved. In engineering
parlance this is called a negative

feedback
The

in

current

generates
*o,

like

a

or

bank-credit
old

to

is

operative

certain,

burn

let

it

range,

Truly,
•modern

fall

the

the

in

the

technology

similar

and then starved

process,

death!

to

know-how

Modern

unmixed

not

an

under

no excuse
'

#

for neglecting

*•«

j

„

essential conservation and population control.

for

lack

of

presence

with

of

servo-

mechanism




demon-

increased 22,038 cars,

ing to the Association of American Railroads.
Loadings totaled 807,387 cars, an increase of 1,631 cars
0.2% above the corresponding 1952
week, but a decrease
22,011 cars or 2.7% under the corresponding. 1951 week.

by the electric light
industry for the week ended Saturday, Aug. 22,
1953,
8,431,603,000 kwh., according to the Edison Elec¬

and

power

was

estimated at

tric Institute.

This

represented a decrease of 82,179,000 kwh. below the
previous week's all-time high record of 8,513,782,000 kwh.
The current total shows a gain of
713,519,000 kwh. or 9.2%
over the
comparable 1952 week and an increase of
1,355,069,000
kwh.

the like week of 1951.

over

U. S. Auto Output Advances in Latest Week
Automotive

output for the latest week slightly exceeded
the preceding week's volume, "Ward's Automotive
Reports" show.
The industry turned out
with

129,262 cars last week, compared
128,946 in the previous week. A year ago, because of the

steel

strike, the weekly production

18 years,

amounted

a

in all

year ago

all-time high for the month of

areas.

$530,191,206, reports Dun & Bradstreet, Inc.i

This

July, and the largest for

any

previous month in almost three

years, or since August, 1950, with
permit turnover of $550,997,973. Last month's valuation figure
a gain of 16.4%
over June with $455,523,853, and it was
20.2% above the July 1952 sum of $441,160,921.
a

showed

of

plans

filed

in

New

York

City alone

rose

sharply in July to $69,097,923, from $43,264,650 in June, for an
increase of 59.7%. Compared with
$44,945,049 in the correspond¬
ing 1952 month, the rise was 53.7%.
-

to 1,732 units last week, against
2,291 in the year earlier period.
V

Commercial

year

are

the

current

week.

II

(3)

demand
the

and

steel producing capacity has in¬
for goods during World
been satisfied; (4) end of the
increase in caution among businessmen

that

Korean

(2)

accumulated

has

war

Korean

war

and (5)

the "pipelines" of steel distribution

inspired

Possibility of

an

are

filling

up.

stretch-out in shell work before the end of
the year and cutbacks from the auto
industry as a direct result
of the General Motors fire at
Livonia, Mich., are

buyers to

move

large bars.

a

little

a

Small

bars have been

more

sizes

slowly

hot-rolled

of

readily available for

helping influence
future commitments for

on

and

some

observes.

cold-finished

notes.

were

Failures

from

132

in

from

130

150

failures

in the
as

in

1951

in

week.

the

Less

similar

than

week

one-half
prewar

time, this trade weekly

offerings of hot-rolled and cold-rolled carbon
developing, but these are being snapped up quickly, it

Most producers of steel
plates see enough work ahead to
sure active operations
the rest of this

as.

1939>

recorded.

with

the

liabilities of $5,000 or
prior week and 119 last

more

decreased to

110

Small casualties^
$5;000, dipped to 12 from 18 and com¬
ago.
Concerns failing with liabilities in
year.

pared with 35
of

excess

a

year

$100,000, held at 10.

r

..

>

All

industry and trade groups except construction, which
showed slight rise, had fewer failures
during the week. Failures:
in retail trade

dropped sharply to 56 from 79, while mild declines:
place in manufacturing, wholesaling and commercial service..
than last year in
manufacturing and con¬
struction, but failures in wholesaling, retailing, and commercial
took

More businesses failed

service

noticeably below the 1952 level.

were

Geographically, failures declined in four
the

Middle Atlantic

States

down

to

34

of the nine regions::

from

64, the East South
Central down to 1 from 3, the West South Central down to 1
froira
6, and the Pacific States down to 30 from 38.
Failures rose in four regions: the East North Central
States;
to 24 from 11, with milder increases in the West North
Central,.

East North

off

were

Central

and

West

North

Central.

Failures;

sharply from 1952 in New England, Middle Atlantic and

West South Central.

The

Reverses Downward TrencP.

wholesale food

price index, compiled by Dun & Brad¬
street, Inc., turned upward last week following three successivedeclines from the year's high point of
$6.75 reached on July 21..
At $6.67 on Aug.
18, the current figure is up 4 cents over last,
week's $6.63, and compares with
$6.69 on the corresponding datea

year ago.

The index represents the sum total of the
price per pound of:
function1 is to show the gen¬
eral trend of food prices at the wholesale level.

31 foods in general use and its chief

1

Wholesale Commodity Price Index Advances
SlightlyInfluenced By
A

Stability In Leading Commodities

steadying movement in

some of the leading commodity mar¬
slight rise in the Dun & Bradstreet:
daily wholesale commodity price index. The index closed at 281.82E
on Aug,
18, as compared with 280.44 a week previous, and with;

last week

293.76

on

resulted

in

a

the

corresponding date last year.
prices finished slightly higher after
ously during the week.
Grain

in¬

fluctuating

nerv¬

year.

Similarly, continues this trade publication, most shops that
fabricate structural shapes for the construction trade
have com¬
fortable backlogs of
orders, the exceptions being mainly

the

smaller

shops.

for business is

ing

While

see

will

keenest, although the large fabricators

warehouses

not have all

accept from
The

the

which

supply

the

of the inventories

improvement

some

are

figur¬

and

are

small

consumers

of

they would like, they do

increasingly choosy in what they

mills, "Steel" concludes.

American Iron

and

Steel

announced

that

the

of

capacity for the week beginning Aug. 24,
1953, equivalent to
2,138,000 tons of ingots and steel for
castings as against 95.9%

(revised),

or

2,162,000 tons

a

Wheat prices sank to the lowest levels in six
years last Thurs¬
The absence of export business and the

expanding

Spring wheat

movement

in

the

Northwest

were

fluences.
Also
growers

contributing to the decline
would

refuse

to

endorse

was

the

the

week ago.

For the like week

92.6% and production 2,087,000 tons.

a

month

A year ago

new crop»

depressing in¬

apprehension

that

government

plan for mar¬
keting quotas for next year's wheat crop. Most of the losses wererecovered following endorsement of the
plan last Friday by the
farmers. Corn developed
strength particularly in the cash market.
Country offerings of the yellow cereal have been
very light as
farmers are said to have placed much of
the 1952 crop under loan.
Trading in wheat futures on the Chicago Board of
Trade

creased

Institute

operating rate of steel companies having
93% of the steelmaking
capacity for the entire industry will be at an
average of 94.9%

ago the rate was

day.

Among these smaller shops the competition

closely than they did.

more

steel do

among

■<

those with liabilities under

kets

are

industrial

24

succumbed

concerns

when 264

carbon

A few spot mill

sheets

and the

ago

many

It

could mean consumers just think steel will be more
readily
available in the fourth quarter of this
year than it has been, but
it adds, there're inclined to think this
way because: (1) The war

creased;

and

Aug.

Wholesale Food Price Index

emergency has faded away;

the

South Atlantic region and Mountain States. New
England failures;
at 8.
More businesses failed than last
year in the South

not placing orders as far ahead as they were
necessarily forecast a sharp cut in steel con¬
sumption, states "Steel," the weekly magazine of metalworking,
users

260

held

thaf doesn't

War

ended

Atlantic,

Steel

.

dipped to 122 in the
the preceding week, Dun &
Bradstreet, Inc., reports. This decline brought casualties down
moderately from the 154 occurring in the comparable week a
week

up

but

only 83,065.

Business Failures Decline Further

i

rose

valuation

was

output
only 18,532 units.
Canadian companies made 6,145 cars last week,
compared with
2,152 in the previous week and 5,713 in the like 1952 week. Truck

month

The

,|

High Record of Preceding Week
The amount of electric
energy distributed

United States truck production last week totaled
24,498 com¬
pared with 25,168 the previous week. A year ago < truck

the building construction field was maintained
at a record pace during the month of
July. The volume of build¬
ing permits issued in 215 cities, including New York, during the
to

of

Electric Output Declines From All-Time

Failures in this class in July were the highest
over

or

is

blessing when
and
legal re¬

moral

Activity in

economic

mechanisms
operating at every
turn in industrial
production, and
m.

jn

living" with fire-

destroyed the caribou herds

arms,

In the heavy construction industry, according to "Engineering
News-Record," contracts awarded so far this year total $10,100,000,000, 7% below the like 1952 period.
But last year's total
was boosted more than $2,000,000,000 by awards granted
by the
Atomic Energy Commission, particularly the $1,200,000,000 con¬
tract for the Portsmouth, Ohio, bomb plant.
If A. E. C. awards
are excluded, the volume in 1953 would be 14% ahead of last
year,
this trade journal stated.

at¬

sooner

Iieat.
**

their standard of

|

freight for the week ended Aug. 15, 1953,
or 2.8% above the preceding
week, accord¬

revenue

was

More businesses failed than

system

kitchen

constant
which

later,

cake

servo-mechanism.

positive feedback and

the

requires
tention
or

a

of

north central Canada who "raised

major categories of business, manufacturing had
the only rise in failures in July.

supply

compare

the

we

question

this

to

may

the

in

money

reference

ihat, if

People"

Steel Output Scheduled to
Drop Below
Level of Week Ago

relative)

calories

potatoes, does afford
measure

"Deer

j

Loading Rise 2.8% Above Previous Week

Loading of

the five

Of

A "Food Price" Index

price

the

5

page

more.

or

in any attempt at indexing.

V

overtook

Car

production

al¬

cannot possibly

in

inflationary money supply. MaximUm
production in "plundering
the planet" to try to keep prices
down
by the "competition" of
over-supply must never be mis¬
taken for an economic optimum,
sUCh
a
policy
spells
ultimate
disaster comparable to that which

was an

even

an

continually

a

was placed at 2,069,000 tons and the
oper*
99.6% of capacity.

was

week before and

$100,000
in any

unchanging element, such

keo

from

"frac-

straint against a foolish rapacity;

such a development in monetary
control, for the truth is that bank
credit is so perverse in its "elasticity" as a source of money sup-

Continued

of

periodically

How, then, can contracts be of
any validity relative to inflation
if there can be no stability in the
very base from which the "price
index"
is computed?
Are price
changes due to inflation merely
♦relative, or is there not a truly

as

pending

while

is

ating rate

upon

outstand¬

be done to

can

system,

reserves"

tional

are

the weekly production

and

condition

a

this

not

essential

are

wages

develop

"base"

the facts.

on

clauses

to sustaining real

or

period to a
later date. Even a single year is
at times too long to keep up with

What

Escalator

dis-

labor

level versuk the

wage

obsolete

«comes

is

such

assure

as
danger

of

values

ing. The best that

lag" in developing the social cona
rational approach is a realiza- trols of an atomic age in which
sion that an "index" of prices in the rule of law and not of men
.general, that is, a figure repre- is considered essential to a Jefsenting percentage change over fersonian system of freedom in
time, is mathematically fallacious, competitive enterprise with
This
argument was primed by every man for himself yet opIBassett Jones' little book, "Horses erating
for the benefit of the
and Apples," in a dispute with whole coalition of which he parIrving
Fisher
over
"averaging takes. The welfare
of such a
relatives" some 20 years ago. This whole is certainly not just the
t>eing true the escalator contract sum of its parts.
thing

capital

collapse

principle
a

will

which bank "loans"

strated in the neutral control of
all vertebrate physiology, it is
astonishing

Faulty General Price Index

deflation

that

long

as

minimum

a

without

serve

only

Thursday, August 27, 1953

in¬

sharply last week. Sales of all grain and soybean futures
daily average of 70,000,000 bushels, against
44,100,000 the
previous week, and 50,700,000 a year ago.
rose

to

a

The domestic flour market turned
quiet

bookings earlier in the
Activity
chain
sumed

was

week

wheat

following substantial
prices broke sharply.

confined mostly to hard Winter wheat varieties
with;

bakers covering for
its

when

90

days in most instances.

upward price movement

as

the

Cocoa

re¬

spot supply position

i

Volume 178

Number 52501

J

continued

to

tighten.

highs for the

All

active

future

deliveries

reached

Lamb prices declined

receipts increased; steers

as

Clearance

shopper
week

The continued slow export movement and
quiet textile
kets also tended to depress the market.

the

helped to sustain shopping;
time peak

retail

a

trade

year

Eased

ago.

credit

dollar

volume

in

year ago.

were bedding, floor coverings,
phonograph equipment.
The buying of television

each

above

terms

all-

marking,

of

New York

placed

last week

the

came

decline

and

Continued

from

page

14

planning

reported.

was

and

construction

Motor Vehicle Toll

Highways

return

of

Federal

of

highways,

make mandatory

To

at

least

excise

50%

taxes

the

of

all
the

on

motor vehicle industry, motor
a mild one like in 1921. The
shall be toll free. Thus, the State
fuel, lubricating oils, tires and
Pennsylvania Turnpike, the first eventually
will
get
the
whole
tubes, parts and accessories to
major motor vehicle toll route in property. Nevertheless, its
Highthe states from where collected,
the United
States, was the only way budget is now perhaps larger
such turnpike in operation
during than previously, and the gasoline
(2) Petition each state legislathe
Second
World War,
ture to pass laws'
and it tax is still 50 per gallon,
only continued to earn its charges
in the indentures of the New
(a)
To make it mandatory
and sinking fund because of the
that all motor vehicle highway
Jersey, Oklahoma, Ohio and West
heavy truck traffic in defense ma- Virginia Turnpikes the same
user
revenues be disbursed for
proterials. Due to the
hiehwav ourooses onlv
scarcity of vision will be found. In fact, such
even

rubber

tires

gasoline

and

the

rationing,

attendant

private

auto-

mobile

procedure

a

pUX

most of these state toll highways,
In practically all cases the states

traffic was partically nil,
recently built or projected are relieved of the financial obliturnpikes carry much higher con- gation for the construction of their
More

struction

country

to

up

as

from

and

higher

tolls

very

are

sion.

instances

many

Tr,

1QAn

In

1947

TT«5+^

the

United

States

Bureau of Public Roads proposed

provides

where

that

gasoiine

ancj

must

the

the

law

proceeds

motor vehicle

of

taxes

used

soieiy for the conPIan
a.4?>000 mile national struction and improvement of the
system
of
interstate
highways, highways. For
example, the State
This project was estimated to cost
0f New York collects $258.0 mil$11.3 billion, and the work would ]i0n in
highway user revenues and
a

*

cost much

more

prices

construction.

of

the

over

However,

proposed 10 year period

the average

able.

if done at present

In

could be

order

to

the

program,

favor-

more

finance

writer

is

such

going

a

disburses

highway

million

Government

four

times

excise

taxes

the

ligated to

1952

up

and the products they use than
it returns in Federal-State highHowever, it seems pertinent to way aid. For the fiscal year 1952
first analyze the true status of the collections
on
the above excise

suggest

certain

a

presently
>

When

to

procedure,

or projected taxes amounted to $1.8 billion and
;expenditures on public roads $454

operating

toll roads.

-

f

-

the.'Pennsylvania Turn-

pike

was

was

evident

first

being

that

mBBon.

planned, it

the

State

of

solution

a

to

the

pike
•

was
decided on, the State
was-relieved" entirely of this ex-

although the route was to
wholly within its borders and
its large industrial areas were to
be the principal beneficiaries.
By

^

(a) to create

the construction of

State

toll road, the

tiful

beau¬

highway free of charge.
indenture

bonds

it

is

of

the

stipulated

the bonds and,their interest

fully !paid, the

pike

shall

become

State

Highway

„

a

part

the

the

United

the

Engineers

of

states, together

Chairman

of

This

Authority

would

subdivisions:

North¬

South

Central,

Southwestern,

North¬

shall

western

Turn¬
of the

To

six

North

and

Central.

It

would be non-political and free
from

.would

Federal

bei

reserve

funds, repairs

motor

to

as

vehicles.

domination,

and

.with

the

charged

be

ob¬

for their toll turn¬

through

would

of

subsidy, state-

the

be

more

the

motor

secure

efficiently op¬

ecaF%mi&. benefits

industry would bo
a depression-

against

It has all got to come, so
way

1952.

is to make

right

from

the best

concentrated ef¬

a

the

start.

Motoir

manufacturers, oil companies, the'
for hotel and motel trade, and all other
is rela- industries connected with high—

regulations

The

path

tively clear and needs only minor

way

adjustments

with

pas-

support to this program for

senger

However

is

petuating

great

cars.

deal

regard

to

there

a

travel

should
the

give

aid

marvelous

andl
per—

motor

be done for the industry,
the
greatest develop—
industry. These ment in the Twentieth Century.,
people are plagued with regulations and divergent laws on op-

motor

to

truck

eration,

load

restrictions,

requirement,

individual

size

state

Doman

Helicopters

use

Stock at $3

licenses, Interstate Commerce
Commission licenses, together

r

wath

numerous restrictions and
prohibitions. Very often a trans-

r

»

Share

a

York

NeW

& Co,

Citv-

N«^ YorkO^

ctnHv

n

in

nf

and

actuary figures
designed to bring about
fair, yet profitable rates for motor

uniform,

vphirlo

incurnnpp

•

cus+omarv

between

'

no

set

house

UP

Customs

a

state shall
at

its

To

organize

™

:such a con,d>adds t0

un

0
°* atlairs- Ay tdls
loss of tlme and to the

motor

same

vehicle

signs and the
The

first

same

result

suggestions

laws,

road

penalties.
of

would

the

be

above

border.

prompt

a

least

one-third

lateral

and

and

be

most

important

result

Moreover

tions sometimes require that part
of
the
cargo
be left along the

development of

an

integrated, interconnected, standardized system of trunk highways
in

our

It

country.

should

portant

that the

carefully

enormous

the railroads. The

job in this country. A

through to New York, but not
a

motor

noted matter needs

proposed organization to alyzed

form

development

truck.

The

to be

so

whole

studied, an-

and

into

revamped

uni-

basis.

additional

ments,
new

would

nor

expense.

handled
various

any

The

by

states

to

conferences

it

require

any

and

the

only

also

the

a

in

...»

new

would

the

,

^

(Special

to

FRESNO,
has

become

California
America

...

•

the

financial

chronicle)

Calif.—V.
connected

F.

<

Dove

with First

Bank

Company,

G&

Building,

With Protected InvestorsTHE PlNANC,AL CHRON,ctE>

(Speclal

_.SAN

sufficient funds. In 1951

various

states

960,830,000. In

amounted

to

that

a

year

the

^^ica, Russ^Building.
Davies Adds to Staff
to

The

Financial

Chronicle)

FRANCISCO,

SAN

^ontg0Smery0stre€t>

Calif.—

jyjew

both

license,

Federal

the

and

as

York and San Francisco

total

collections,

state,

Jidde£

members o«

$1,- Stock Exchanges,

bchwanz & U>. Adas

<s^THt 'T.T'Jjam®
Goudi

$19 per vehicle and $1 per op-

erator's

-

F?ATNCI^CO!

^.lo.rfenc|

be of 51,913,965 motor

of

Airport in Danbury*.

the program outlined above will F:rank A. Smrekar has been

as

elimination

oc™

With rirst CalliOrnia

national

vehicles and
national or regional 62,193,495 drivers were registered.
and
the
necessary Even at as low an average rate
probably

suggested procedure would

result

on

be motor fuel taxes collected by

would

engineers of

Corporation

L/0nn*

(Special

great amount of produce

correspondence.
The

regulation

There can be no doubt but that

appoint-

create

work

the

expenditures
limited

political

r

would

jobs or

not

LZ-5.

Municipal

Angdes^In^^o6 ATh^straight" '^

have charge of this great highway

any

Doman

motor truck freight carriers do an

with

be

for

as

presently

5,i

cuPies a hangar-type structure ot
weight restric- 30,000 square feet located at thc«-

reduction

the

Army

Helicopters

Produea the YH-31 utility an«l
medical evacuation helicopter andt
commercial counterpart, tbk-^y

of

But

11

,

to

feeder roads.

the

Doman

state

bring roadside at some weighing staof at tion, thus posing a problem for
turnpike toll the truck driver as to how to
rates. Moreover, substantial addiprotect from pilfer the freight he
tional funds would be made avail- is
charged to safely deliver. Uniable
for
the
improvement
of formity for this industry is as imabout

share.

speclL^eeds'of thTlmy

meet specific

expense

study

a

per

^counts *ne U A. ,A. CertlllCatlOr*
payable-and »4.630 wiR
"f "Sed

,borders- *et motor truck regula;

of shipping and operation. There
of is little
point in sending a motor
speed
laws,
road
signs,
safety truck
hurrying over a toll turnfeatures, so that all state high- n;i,p nniv
hnw u
stnnnPii
for
ways would eventually have the
Derhans
hours
at

(4)

Helicopters, Inc. at $3

bordering European countries. It
B is intended that the net pro™
is expressively stipulated in this ceeds will be use.d
country of ours that

expenses.

nrf*nni7P

rates

surance

the

States Bureau of Public

Roads.
have

48

of

Southeastern,

Department; and




of

consist

after

that

been

Federal High-

eastern,

In

Turnpike

have

would

Highway

with

a

a

Authority, the membership

which

of ^Pennsylvania were
called-upon to furnish the

funds, and the State got
the

of

each

a

taxpayers
not

way

confusion

will

states

pay

erated, and the

_

(1) Petition Congress to .frame
and adopt the following laws:

pense,

lie

n)

interest°Tinking

of

operating

would

problems

Pennsylvania was in great peed 0f construction and finance for the
of an efficiently constructed
high- arterial highway system in the
to tarry/ the. heavy
freight United States, the writer suggests
-.. traffic between
Pittsburgh and the the following procedure:
Eastern seaboard. Wheii the Turn-

and

and

main

Suggested Program
As

fund

in

vehicles

tbo

to

Travel andt

highway engineering departments*

more

some

money

motor

on

all

collects

much

as

for

Moreover, the

purposes.

Federal
to

$223.0

prOgXcalftA

profitable
whole.

a

the

reduced,

ex¬

Aug. 15, 1953,
For the period Jan. 1 to Aug. 15,

much

o/ the °ota?

best and most productive
necessary. It is problematical roads, yet the tax collections for
as to what
earnings these projects motor vehicles continue undiminwill be able to show in a
depres- ished- Besides all this, there are
costs,

XI11S

into effect, but the results will bo

members of the New York Secucm Tn nrnwi^i« thot
a*
continental freight truck has to be rity Dealers Association, are pubrivprf
rived from state highway user unloaded at some state border, its licly offering "as a speculation*
contents
and
weighed
an issue of 53,852 shares of corntaxes be set aside as a subsidy r,UIUtVLr inSpected
"jsPe"ea ana weignea,
»
Doman.
for all toil hiehwavs witnin the lts
ior an toll mgnways within tne
drlver's
papers
examined,
st°ck (Par J1' ot uomon.

to be usual for

seems

o€

system

lo^o^work* XO m^^Ws^rofflram
OI WOiK hf
tremendously

ended

registered from that of

was

suitable arterial toll

(b)

road

feeder

nation,
and
leave
ample
money
availablbe for the pro¬
posed state subsidy of toll turn¬
pikes.

pikes

1952, while for the four weeks

change

no

policing

the

fort

1953,

for the

shipping will be facilitated, cost*-

trade volume in

increase of 1%

an

-f-4; Pacific Coast 4-3 to 4-7.

shouldt

and

funds

operation of the entire high¬

way

According to the Federal Reserve Board's index department
store sales in New York
City for the weekly period ended Aug. 15,
1953, declined 4% from the like period of last year. In the
pre¬
ceding week an increase of 4% was reported from that of the simi¬
lar week

sufficient

construction,

index, for the week ended Aug. 15,

pectation. 0oTrade observers
period at 6 to 7%.

the

Columbia,

provide

1952.

Retail

together with the Dis¬

of

and

an

of roughly $70,000,000 for

state

trict

indicate

would

total

average

Aug. 15, 1953,
an increase of 1% was
recorded. For the period Jan. 1 to Aug.
15,
1953, department stores' sales registered an increase of 4%

following percentages: New England and East —1 to
4-3; Midwest and South 4-1 to 4-5; Northwest
+2 to -f-6; South¬

west 0 to

This

\\roc?

Regional estimates

levels by the

spe¬

1953, showed no change from the level of the preceding week.
In
iha nrpuinnc \xroolr on innrnocn rvf 9 OL
rvP
the previous week an increase of 2% was
reported from that of
the similar week of 1952.
For the four weeks ended

week was estimated
by Dun &
1 to 5% higher than the level of a
year
varied from the
corresponding 1952

Bradstreet, Inc., to be from

many

estly above the year-ago level. Inventories in most lines remained
larger than a year ago and buyer apprehension appeared to be
rising.
Department store sales on a country-wide basis, as taken from

slightly

debt held close to the

consumer

$3,471,943,142*

as

best-selling goods
and

519,139,650
62,193,495-

State drivers licenses

price

some

Among
decorating

a

registration

fees

Shoppers continued to spend slightly

the Federal Reserve Board's

continued

last week

1,960,830,000

State

edged upward

rose

$929,780,000
fuel

motor

taxes

the Summer lull.
The approach of the Fall season was reflected in a
rising re¬
order demand for many items in most wholesale markets in the
week.
The total dollar volume of wholesale trade remained mod¬

touched in recent weeks.

Retail

before.

of
of

goods

taxes

(50% of total)
State

attract strong

as

follows:

as

excise

Fed.

sets began to recover from

by mild temperatures and many attractive pro¬
motions, shoppers boosted their buying slightly in
man> parts of
the nation in the period ended on
Wednesday of last week. How¬
ever, shopping, was dampened
noticeably in the East and New
England by heavy rains.
level

to

(745)

approximately

slightly this
temperatures spurred jaded appetites.
The con¬

lower

materials

By Good Weather and Special Promotions

volume

food

for such goods than in the similar week

more

Stimulated

dollar

for

The interest in household

Trade Volume Rises In Most
Sections Aided

comparable

demand

cial promotions continued.

mar¬

Sales of the staple in the ten
spot markets last week were
reported at 82,600 bales, up from 63,800 the previous
week, and
comparing with 82,800 in the like week a year ago.
In the first
report of the new season, loan entries of 1953
crop cotton totaled
10,300 bales through Aug. 7.
Cotton consumption during the fiveweek July period was estimated at
735,000 bales, as compared
with 698,000 in the same
period a year ago.
<■

total

continued

wear

-Nv

posed for the program would t**

particularly in the South and Southwest.

consumer

as

Summer

of

sumption of fresh fruits and vegetables expanded
cuts attracted shoppers.

steady.

were

sales

response,

The

Spot cotton prices continued to work lower in the wake of the
unexpectedly large official crop forecast issued last week.

the

.

season was discernible
rising demand for Fall and back-to-school clothing.
Most
apparel stores continued to chalk up larger sales figures than in
the similar 1952 week.
Rising notably in demand last week were
sportswear, children's clothing and men's dress shirts.

9,406 for the week, and compared with 127,785 a year ago. Cof¬
fee prices advanced
following last week's dip as the result of the
new Brazilian
export regulations. Active replacement buying on
the part of roasters largely accounted for the rise.
Lard con¬
tinued strong, stimulated by further
purchases to fill government
orders.
Trading in hogs was active with prices reaching best
August levels since 1948, aided by higher wholesale pork
prices.

The

?..W

in the

of

above

!•

The approaching end of the vacation

new

season.

Warehouse stock of cocoa, totaling
175,419 bags, showed a drop

"

•

The Commercial and Financial Chronicle

pro-

Merchants National

ing.

ft

has'been

added to tLS'
gchwanz & Company, Inc.*
Jr

Bank Buik»-

The Commercial and Financial

(746)

30

Chronicle:.. Thursday, August 27, 1953:

ADDITIONS

* INDICATES

Now in

Securities
Acteon

Registration
for

Trans-Penn Transit Corp

July 14 filed 50,000 shares of preferred stock (no par)
and 50,000 shares of common stock (no par) to be of¬

(Bids

commissioned

Price—$495

class of stock.
in

made

Proceeds

(Bids

Stroud

it American-Israeli Cattle Corp., Beverly Hills, Cal.
Aug. 24 filed 100,000 shares of class A common stock.
Price—At par ($10 per share).
Proceeds—To establish
and develop a cattle industry in Israel.
Underwriter—

S.

(Bids

11

September 3

Southeastern

Public

(Sutro

(Lee

(Lids

Public

Offering—Temporarily post¬

Service

corporate

Office

(Bids

the

basis

of

15-for-l.

11

Telephone

(Stone

&

&

Corp.

'■

'

to

stockholders—no

&

(Bids

(Morgan

Co.)"

—

First

Boston

33,320

shares

.

~

Bonds

..Debentures
' ''
Common

$15,000,000

September 17

.Debentures
$35,000,000

,

-

i

par: ($10 per share). Preceeds-^To

telephone

exchange;

more,
•

Preferred

(Monday)

Hydraulics, Inc....
(Burnham

&

Debentures

Co.)

new

Blyth

Oct. 22 filed $1,750,000 of 10-year 5Y2% convertible sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered

&

Inc.)

Co.,

1,946,823'

September 22

may

Du^e

be

To regay

ex^ffe

mns,\

(Tuesday)

invited)

.Bonds

$15,000,000

Co

...

a.m.

September 30

EST)

Bonds

$3,000,000

(Wednesday)

October

Boston

Philadelphia

Pittsburgh

San Francisco

(Bids

6

(Tuesday)

Co

11

a.m.

Chicago

Cleveland

Bonds
EST)

October 9

$4,000,000




to

all

offices

determined

Haisey,

by

Stuart

Charlotte, N. C.

(9/2)

on

(with

an

Sept. 18.

oversubscription privilege); rights
Price—$30 per share.
Proceeds—

bank loans and for

new

construction.

Under?

-

(Geyer

&

Co.)

$750,000

iesfbuyfcrtoftf

Chicago Tribune is your best medium to reach effectively and
cost both investment markets in Chicago and the midwestprofessional buyers and the general investing public.
Threading business and financial publication of this multibillion
dollar market, the Tribune is your most productive medium here.
Forgets that show how you can get more from your advertising,
call

y(^j|f agency or a

Tribune representative.

CHICAGO TRIBUNE

(Friday)

American Fidelity & Casualty Co
Private IVires

be

bidders:

ar one

(Offering to stockholders—The First Boston Corp. to be
dealer-manager) 194,916 shares

New York

Power Co.,

to

New England Gas & Electric Association-Common

C

Probable

Bonds

11:30

Power

Underwriters—To

bidding.

July £0 filed 208,321 shares of common stock (no par)
to be offered for subscription by stockholders of record
Sept. «J,-1953 on the basis of one new share for each 20

The

Mississippi

.

.

be( invited) $12,000,000

Worcester Gas Light
(Bids

;

Inc.; Morgan Stanley & Co.; Stone &. Webster Se-i
Corp.; The First Boston Corp.; Bids—To be re¬
ceived., up to 11:30 a.m. (EDT) on Sept. 1 at 43 Wall
Street, New York 5, N. Y.

(Tuesday)

September 29
to

,

writer—None.

Indiana & Michigan Electric Co
(Bids

-

.

& Co.

be

shares

Duquesne Light Co
(Bids to

construction.

Common

stockholders—underwriter

...

Duke Power

shares held

$1,500,000

Pacific Gas & Electric Co..
to

111. Underwriter—None.

construct

West' Elm- St,/ Syca->

Co., Charlotte* N^ C- (9/l> : ' July 30 filed $35,000,000 of first and refunding mortgage
bonds due 1983. Proceeds—To repay bank loans'and for

(Bids to invited) about $5,000,000

Greer

Office—112

curities

(Thursday)

September 21

,

stock, to be offered for subscription by stockholdes at
the rate-of one new share for each four shares held.

competitive

325,000 shares

Corp.)

(letter of notification) 940.000 shares of class A;

Priee-r-At'

Coiii^CCoirimoir

Duquesne Light Co

(Offering

'

.

vr

Stauffer Chemical Co

(The

;

„

$12,000,000

&

'

/
Denver, Colo.

Telephone Co., Sycamore, l 11.
Jun#24 (letter of notification! 25,695 shares iof tommon

!'• *

....

Stanley

Underwriter—Walston & Co., San Fran-'-

DeKalb & Ogle

and

underwriting)

EDT)

Stauffer Chemical Co
*

common

504
W.
Euclid
Avenue,
Springfield, O. Underwriters —Gearhart & Otis, Inc.,
New York; and McCoy &
Willard, Boston, Mass.

'r.j

l

Light Co.__^i.;_^_^—

noon

by competitive (bidding.
Co., Inc.; The First Boston

stock .(par five cents). Price — 9% .cents, perproceeds—For drilling expenses and equipment^
Office—711 E & C Bldg;, Denver, Colo. "Underwriter—
E. L Shelley & Co., Denver, Colo.
"
1,/' V u ,

September 16 (Wednesday)'

Louisiana Power

&

share.

$10,000,000 1

Co.)

Blyth

common

-

—Debs.
y

,

Westinghouse Air Brake Co

oversubscription privi¬
lege); rights to expire Aug. 31. Price—$1.25 per share
to stockholders, $1.35 per share to
public.
Proceeds—

Byrd Oil Corp., Dallas, Tex.

Securities

Carolina Telephone & Telegraph

common

stockholders of record Aug. 3 at the rate of 86 shares for
each 100 shares held (with an

Office

Webster

&

(Morgan Stanley & Co.)

Buckeye Incubator Co., Springfield, Ohio
July 27 (letter of notification) 215,000 shares of
stock (par $1) being offered for
subscription by

June 29

•*

Co.___

EDT) ^50,000,000

•"

(Offering

debt.

Telegraph

noon

White, Weld

★ Blackwood & Nichols Co., Oklahoma City, Okla.,
and The Oil and Gas Co.,
Madison, N. J.
Aug. 24 filed $2,000,000 of "Contributions" to be offered

•

'

131,784 shares 1.

Tennessee Gas Transmission Co._..^_vJ.J__Pr<?ferred

—

Underwriter—None.

.'

$150,000,000

Co.)

(9 9)

stock (par $10).^

determined

be

bidders:

Colo-Kan Fuel Corp.,

Mountain Fuel Supply Co..__L^-L_i_^^i__Common
(The First Boston Corp.) 303,080 shares "

^ Bald Eagle Gold Mining Co., Kingman, Ariz.
Aug. 19 (letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price
25 cents per share.
Proceeds—For developing and blocking ores and for 50ipn mill. Underwriters—Neal M. Sprague and A1 Dinelli,
wth of Needles, Calif.
'
1

and

&

..Debentures

..Common

(Bids

retire

184,739 shares

(Lee Higginson Corp.)

common

reimburse the company, in part, for the
STproperty additions and improvements. Under¬

working capital.
cisco, Calif.
'

Common

Stanley

(Morgan

Pacific

develop oil properties.

(Tuesday)

invited)

Service Co.

it Clary Multiplier Corp., San Gabriel, Calif.
Aug. 19 (letter of notification) not exceeding 30,000
shares of common stock (par $1).
Price — At market
(approximately $6 87% per share).
Proceed* — for

$20,000,000

Ionics, Inc.

Underwriter—

acquire

Bonds
Debentures

General Motors Acceptance Corp

None.

speculation.". Proceeds—To

15

Public

Corp.; Lehman Brothers; Glore, Forgan & Co. Bids—
Tentatively expected to be received up to ii a.m. (CUT)
on Sept. 9.

$7,000,000

EDT)

Illinois

writers—To

(Monday)

EDT)

a.m.

to be

(Bids

Inc., Canton, Ohio

costs

Probsnble

New Hampshire

September

—

Aug. 10 (letter of notification) 17,145 shares of preferred
stock (par $1) to be issued in
exchange for 1,143 shares
of preferred stock (no
par) of The Cleveland Tapping
on

of

Underwriters

Proceeds—To

Debentures

Duquesne Light Co

Woodside, L. I.,
Underwriter—Royal Securities Corp., New York.

Automatic Steel Products,

To

Central

Aug. 14 filed 350,000 shares of

Equip. Trust Ctfs.

noon

loans and for construction program.

be-supplied by amendment. May be Kidder, Peabody &Go. and Estabrook & Co. (jointly).

.Common

Gas Transmission Co

Windows, Inc.

purposes.

Co.

(Lids

Tennessee
Electric

bank

$5,250,000

September 14

due

—To

(Thursday)

EDT)

noon

(9/9)

debentures

.«

350,000 shares

Southern Pacific Co

1, 1973.

July 17 (letter of notification) 299,850 shares of common
Price—$1 per share. Proceeds—For

a

Co

of convertible

Price—To be supplied by amendment. Proceeds—To retire

Common

Higginson Corp.) between $20,000,000 and $25,000,000

stock (par 1 cent).

"as

Debentures

Household Finance Corp.____

-•••

sale

CDT)

September 1G

Price—To be supplied by
amendment Proceeds—For working capital. Business—
Manufacturer of tires and tubes.
Underwriter—Rey¬

for

Service

(Bids 11 a.m.

$6,000,000

one new share
for each 15 shares held (with an over¬
subscription privilege), with rights to expire Sept 25.The regaining 20,000 shares will be offered to
employees.^

$6,000,000

stockholders—may be underwritten by Kidder,
Peabody & Co. and Estabrook & Co.) 139,978 shares

Central Illinois Public

filed

1**1963; and 159,978 shares of common stock (no
par), of which ,139,978 shares will be offered for, sub¬
scription by stockholders of record Sept. 9 at rate of

(Wednesday)

(Offering to

Price—50 cents

11

Sept.

,

shares

50,000

(Underwriters to be named later)

March 31 filed $4,000,000 of 5% convertible subordinated

Co.

Co.)

core

Co., New York.

aggregate of $199,465;

Central Hudson Gas & Electric Corp.

;•

Central Hudson Gas & Electric Corp

Armstrong Rubber Co.

Machine

$2,820,000

(Tuesday)

Central Hudson Gas & Electric Corp

writer—None.

general

&

September 9

per share.
Pro¬
drilling (barite mining). Of¬
fice—219 Fidelity Bldg., Oklahoma City, Okla. Under¬

Automatic

EDT)

Jose, Calif.

notification)

—

'

—Equip. Trust Ctfs.
noon

of

approximately 190,000
Price—To not exceed
Proceeds—For operating capi¬
tal.
Office
Berryessa Road, San Jose, Calif.; Under¬
writer—Davies & Co., San Francisco, Calif.
:
an

•>

Thompson (H. I.) Fiber Glass Co._-.r-.__Common

it Arkansas Minerals, Inc., Oklahoma City, Okla.
Aug. 19 (letter of notification) 599,000 shares of common

&

$132,000

Price—

Proceeds—To reduce short-term

Eureka Corp., San

(letter

12

Aug.

—

poned.

and Bloren & Cj.)

....

September8

,

Underwriter—None.

nolds

shares

508,703

share for each five shares held.

shares of common stock (par $1).

t

Co....——Common

Service

Singer & Co.

tTxoswr,

Wabash RR.

Aug.

;„.Common

underwriting)

(9/16)

Underwriter—None.

notes.

$30,000,000

(Thursday)

stockholders—no

(Offering to

July 17 filed 150,000 shares of common stock being of¬
fered for subscription by common stockholders of record
Aug. 6 on the basis of three-quarters of a new share for
each
share
held
(with
oversubscription privileges);
rights expire Sept. 15. Price—At par ($10 per share).
Proceeds
To
purchase stock of three State banks.

debentures due May

one new

At par ($100 per share).

Debentures

Illinois Bell Telephone Co._____^^_

Telephone & Telegraph Co.

subscription by stockholders of record Sept. 16 in the

ratio of

$150,000

Co

EDT)

a.m.

(Bids

cent).

for

Central

Arizona Bancorporation, Phoenix, Ariz.

diamond

shares

208,321

.

York.

one

Inc.)

1,

Aug. 17 filed 33,320 shares of capital stock to be offered

Common

Gerber,

Sept.

(par 50 cents).

acquire five Martinliners and
Office—Burbank, Calif. Underwriters—
Otis, Inc., New York; and McCoy & Willard,

Carolina

Ltd

(M.

Southern Bell Telephone

due

Boston, Mass.

Common

Northland Oils,

(par

scares

underwriting)

A,

stock

Proceeds—To

Gearhart &

(Wednesday)

(Offering to stockholders—no

Applied Science Corp. of Princeton
May 21 filed $750,000 of 6% guaranteed sinking fund 10year debenture notes due April 30, 1963, of this company
and 75,000 shares of common stock (par one cent) of
Bradco, Inc., to be offered in units of $100 of notes and
10 shares of stock. Price—$105 per unit. Proceeds—For
acquisition of stock of two companies, who will borrow
the remainder to repay bank loans and for working
capital. Underwriter — C. K. Pistell & Co., Inc., New

ceeds—For

3O,uo0

Inc.

the spare parts.

Common

me.)

series

common

stock.

for

$35,000,000

Duke Power Co

None.

N. Y.

Co.,

a

1957, and 400,000
Price—100% of
principal amount for certificates and 75 cents per share

Hemphill, Noyes & Co.; and

&

Cor

Loeb, Rhoades & Co., New York; and Straus,
McDowell, Chicago, 111. Offering—Postponed

shares of

Corp

September 2

M.

certificates,

Bonds

(R. M.)

stockholders at the rate oi

shares of stock held

Aug. 24 filed $600,000 of 7% convertible equipment trust

(Tuesday)

(Bids 11.30 a.m. EDT)

Hollingshead

28

★ California Central Airlines,

Bonds

$8,000,000

CDT)

noon

(Drexel & Co.;

stock

common

Blosser &

shares

Co

Duke Power

For

writer—None, i

"

404,500

September 1

Payment may be

unit.

equal monthly instalments of $13.75 each.
general
corporate
purposes.
Under¬

36
—

per

EDT)

noon

Carl

Common

Wisconsin Power & Light Co

officers of the uniformed serv¬
ices of the United States in units of five shares of each
to

Common
108,350 shares

(Ottering to .stockholders—not underwritten)

Houston, Texas.

fered

(Monday)

August 31
Southern Union Gas Co

REVISED

14-day standby). Certain stockholders have waived theii
rights. Price—At par. Proceeds—To repay $1,014,500 ol
outstanding notes and for drilling expenses and worKing
capital. Underwriters—Dallas Rupe & Son, Dallas, Tex.*

NEW ISSUE CALENDAR

Life Insurance Co.,

American Independence

subscription by

$100 of bonds for each

—

-

PREVIOUS

ITEMS

•

Vancouver, B. C., Can.

Gold Mines Ltd.,

April 22 filed 250,000 shares of common stock (no par).
Price
$1 per share (net to company). Proceeds —To
purchase equipment and supplies. Underwriter—M. H. B.
Weikel, Los Angeles, Calif.

"

ISSUE

SINCE

The

Preferred

World's Greatest Newspaper

The Tribune gives to the market tables o{ the leading stock
crrr:.;
the largest circulation given them in America.

exchanges

Volume 178

Number 5250

...

The Commercial and Financial Chronicle

31

(747)

★

Duquesne Light Co. (9/15)
Aug. 19 filed 184,739 shares of common stock (par $10),
of which 150,000 shares are for account of
company and

if Greer Hydraulics, Inc., Brooklyn, N. Y. (9/21-24)
Aug. 24 filed $1,500,000 of 5%;% convertible sinking tund,

Liquor Register, Inc., Roslindale, Mass.
July 3 (letter of notification) 2,100 shares of

34,739 for account of Standard Power & Light Co. Pro¬
repay bank loans and for new construction.

debentures, due Sept. 1, 1965.
amendment.

stock (par $5). Price—$16.50 per share. Proceeds—For
working capital for device to dispense and record drinks.
Office—596 Poplar St., Roslindale, Mass. Underwriter—
Coburn & Middlebrook, Inc., Boston, Mass.

ceeds—To

Underwriters—To

ding.

Probable

be

determined

bidders:

The

by

First

competitive

(jointly); Blyth & Co., Inc. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Kiuuer
jl eu-*
body & Co. and White, Weld & Co.
(jointly); Carl M.
Loeb, Rhoades & Co. and Wertheim & Co.
(jointly);
Union
Securities Corp.; Stone & Webster Securities
Corp.; Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly). Bids—Expected to be received on
Sept. 15,"
with public offering scheduled for
Sept. 17.
,

Duquesne Light Co. (9/17)
Aug. 19 filed 100,000 shares of preferred stock (par
$50).

Proceeds—To reduce
tion.

Underwriters

bank
To

loans

and

ndw construc¬

for

be

determined by competitive
Probable bidders: The First Boston
Corp.; Kid¬
—

bidding.
der, Peabody &

Co., Merrill Lynch, Pierce, Fenner &
White, Weld & Co. (jointly); Kuhn, Loeb &
Co. and
Smith, Barney & Co. (jointly); Blyth & Co., Inc.
Bids—Expected to be received on Sept. 17, with
public
Offering on Sept. 18.
Beane

and

—

Price—To be supplied by
working capital. Under¬

For

writer—Burnham & Co., New York.

bid¬

Boston

Lenman Brothers

Proceeds

Gulf Coast

Leaseholds, Inc., Houston, Tex.

July 31 (letter of notification) 60,000 shares of 6*4%
cumulative convertible clas^ A stock (par
$4) to be of¬
fered for subscription
by common stockholders at rate
of one class A share for each three common
shares held.
per share. Proceeds—For working capital, etc.
Underwriter—Leason & Co., Inc., Chicago, 111.
if Hedges Diesel, Inc. (N. J.)
Aug. 24 (letter of notification) 10,000 shares of Class A

stock

new

equipment, and working capital.

Office—11

Of¬

Underwriters—To be

determined

by
Stuart

competitive

bidding. Probable bidders: Halsey,
Tnc,: Orexel & Co. and Equitable Securities
Corp.
(jointly): Kuhn, Loeb & Co., Union Securities
Corp. and
A. C.
Aliyn & Co., Inc. (jointly); Glore, Forgan &
Co.;
White, Weld & Co.; Harriman Ripley &
Co., Inc. Bids—
Expected to be received on Sept.
22, with public offer¬
ing on Sept 24.
& Co

★ Dynaironics Corp., Reno, Nev.
Aug. 19 (letter of notification) 200,000 shares of common
stock.
Price
At par ($1 per
share). Proceeds
For
—

—

manufacture of electronic
equipment. Office—139 N. Vir¬

ginia St., Reno, Nev.

Underwriter—None.

Eagle Super Markets, Inc., Moline, III.
May 21 (letter of notification) 25,000 shares of
6% pre¬
ferred stock. Price—At
par ($10 per share).
Proceeds—

To redeem

first preferred stock and for
working capital.
Office—2519. Fourth Ave.,
Moline, 111.
Underwriter—
Harrv Hall Co..
Safety Bldg., Rock Island, 111.

Fairway Foods, Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien
4V2%

Fallon

.

Gas

Corp., Denver, Coio.

Hotel Drake

for

A

Colo.;

•

.

★ General Credit, Inc.,
Washington, D. C.
Aug. 24 filed loO,uuu snares oi p.**
preference
stock (par
$1) and 150,000 shares of common stock (par
five cents), to be offered in
units of one share of each
class of stock.

ing capital.

Price—$5

unit.

per

Underwriter

Proceeds—For work¬

John R.

Boland, New York.
Offering—Expected shortly after Labor Day.
General

★

—

May 12 filed 250,000 shares of common stock
(par $3)
Price—To be supplied
by amendment. Proceeds—To re¬
pay bank loans made to
acquire a block of 400.000 share?
<of Consolidated Vultee
Aircraft Corp.
UnderwriterLehman Brothers, New
York, to handle U. S. sales oi
♦shares, while Greenshields &
Co., Inc., will handle Cans
dian distribution of a
portion of the

offering.

Offering

—Temporarily postponed.
i

General Hydrocarbons
Corp.,
>
:
Oklahoma City, Okla.
1 j
»Aug. 12 filed $1,010,800 of 20-year debentures and
66,424
-shares of common stock
(par $1) to be offered in units
;of $350 principal amount of
debentures and 23 shares of
stock.

;$1

Price—$359

per

porate

per unit

($336 for the debentures and
share for the stock). Proceeds—For
general cor¬
purposes.-

Business

—

Oil

Underwriter—N»ne.

and

gas

development.

1

v"

★ General Investors Trust,
Boston, Mass.
Aug. 20 filed 200,000 shares of beneficial interest
(in
aggregate amount of
ment.

$1,224,000). Proceeds

Underwriter—None.

'

—

for

rights

unit.

per

will

expire

Proceeds—To

working capital.

Aug.

31.

Price

reduce bank

and

stock.

17 filed

"

certificates of deposit for 42,000 shares of

common stock. It is
planned to vote on a voluntary plan
of adjustment under which
it is planned to segregate the
business of the Georgia RR. Bank &
Trust Co. and the
•railroad business and to
place the company in a position
:where it can obtain additional funds in thp
near
future.
.See also First Railroad &
Banking Co. of
.

Georgia under

"Prospective Offerings" below.

cents

ating capital.

per

share.

—

—

Hotel

and

land

.Underwriter—Gearhart & Otis, Inc.. New

development.
York

1

Gray Manufacturing Co., Hartford, Conn.
May 1 filed 55,313 shares of capital stock (par $5) to be
offered for subscription
by stockholders on the basis
•of

one

new

share for each four shares

be supplied by amendment.

porate

held.

Price—To

Proceeds—For general

purposes.
Underwriter--. None.
definite plan adopted.




tain non-trade accounts payable and for
working capital/
Manufactures fractional horsepower electric
motors. Office—786 Terrace Blvd., Depew, N. Y. Under¬

Business

Office
509 Bank St.,
Wallace, Idaho.
Underwriter—Mine Financing, Inc., Spokane, Wash.
—

,

•

Illinois Bell Telephone Co. (9/3)
Aug. 14 filed 568,703 shares of capital stock to be offered
for subscription
by stockholders of record Sept. 3 on the

expire

on

par

ceeds—To

advances from

repay

American Telephone
($100 per share). Pro¬
parent.

Underwrite!-—

24

filed

20,000 shares of
stcok, series B (par $50). Price
amendment.

Proceeds

provements.

Industrial

To

—

new

preferred
be supplied by

construction
Hall

&

and

Co.

im¬

(Inc.),

1

.

Research, Inc., Miami, Fla.

ueuer'oi notiiication)

stock

cumulative

Underwriter—Harris,

Chicago, 111..

July

For

—

(par $1).

Price

common

—

Business—Battery experimentation.

Inland Western Loan &

Phoenix, Ariz.

Finance

Underwriter—

Corp.,
A

non-voting

com¬

issued

by Commercial Life Insurance Co. of Phoenix.
Price—$1.50 per share. Proceeds
To develop and ex¬
pand company's loan and finance business. Underwriter
—

An additional 300,000 shares have been and are
in Arizona at $1 per share to hold¬

being offered for sale
of

Commercial's special participating
contracts, the
proceeds of which are to be used to activate the

company

in the loan and finance business.

shares of capital stock held.
Price—To be supplied by
amendment.
Proceeds—To repay bank loans and for
other corporate purposes.
Underwriter—Blyth &

stock.

Price—At

drilling

Nev.

common stock (par $12.50)
in exchange for 57,389 shares of common
(no par) of Fitz Simons & Connell Dredge & Dock
Co. on an eight-for-ten basis. It is'proposed to
acquire
not less than 80% of said Fitz Simons & Connell shares.

to

Michigan Consolidated Gas Co.
May 15 filed $20,000,000 of first mortgage bonds due 1978,
Proceeds—From

Offering
•<•*■»

cor¬

—

No

par

expenses.

(10 cents per share).
Address—P. O. Box

Proceeds—

1186,

Elko,

—

Ionics, Inc., Cambridge, Mass. (9/15)
131,784 shares of common stock

June 30 filed

(par $1).

be supplied

by amendment (between $8 and
Proceeds—To pay mortgage debt and for
Business — Research and development and

equipment.
subsequent commercial exploitation in the field of ion
exchange chemistry. Underwriter—Lee Higginson Corp.,
New York and Boston
(Mass.). Offering—Planned for
the middle of September.

^ Kenwell Oils & Mines Ltd., Toronto, Canada
Aug. 20 filed 1,400,000 shares of common stock (par $1).
To

plus proceeds from sale'

bank loans and for construction program.

Bids—

group headed jointly by Halsey, Stuart & Co., Inc.,
Harriman Ripley & Co., Inc. and Union Securities
Corp.
entered the only bid on June 15 for the securities—
100.125

for

5s.

This

bid

rejected. Reoffering had
yield 4.87%. July 6 com¬
pany sought SEC authority to borrow $20,000,000 from
banks on 3%% notes pending permanent
financing.
been

planned

at

was

101.875

to

if Michigan Lloyd J. Harriss Pie Co.
Aug. 19 (letter of notification) $120,000 of 7% first mort¬
gage bonds. Price—At par. Proceeds—To complete and
equip pie plant. Office — 350 Culver St., Saugatuck,
Underwriter—None.

if Mountain Fuel Supply Co., Salt Lake City, Utah
(9/15)

Aug. 25 filed 303,080 shares of capital stock
Price

Ohio

To be supplied by amendment.

—

Oil

(par $10).

Proceeds

—

To

Co., who will continue to hold 177.777 shares.
First Boston Corp., New York.

Underwriter—The

June 19

be supplied

by amendment.

Proceeds—For

working capital and general corporate purposes.
writer—To be supplied

by amendment.

Under¬

III.

(letter of notification) 12,000 shares of

common

stock (par $1). Price—At market (about $3.25 per share).
Proceeds—To Earl W. Muntz, President. Underwriter—
L. D. Sherman & Co., New York.
North

Idaho Mines, Inc., Kellogg, Ida.
31 (letter of notification) 400 shares of common
stock (no par).
Price—$125 per share. Proceeds—For
exploration. Address—Box 298, Kellogg, Idaho. Under¬
writer—Robert G. Sparling, Seattle, Wash.

July

Northland

Nov.

$9 per share).

—

of bonds,

Muntz TV Inc., Chicago,

-Ar Investors Planning Corp., New York
Aug. 20 filed $15,000,000 aggregate amount of the com¬
pany's shares. Business
Investment.
Underwriter—

Price

sale

of 215,000 shares of common stock (par $14) to American
Natural Gas Co., parent, for $3,010,000, to be used to

Co.,

Underwriter—None.

Price—To

be offered

stock

Offering—Indefinitely postponed.

if Interstate Oil & Development Co., Elko, Nev.
Aug. 19 (letter of notification) 500,000 shares of common
For

Aug. 20 filed 45,912 shares of

Mich.

International Telephone &
Telegraph Co.
$35,883,300 of 20-year convertible deben¬
tures due Aug. 1, 1973, to be offered for
subscription by
stockholders at rate of $100 of debentures for each 20

June 26 filed

Inc., New York.

Underwriter—Bacon, Whipple & Co., Chicago, 111.

if Merritt-Chapman & Scott Corp., New York

A

July 2 filed 2,500,000 shares of class

ers

Dredging Co., New Orleans, La.
(letter of notification) 3,800 shares of common
(par $10).
Price — At market (approximately
$12.62Vz per share). Proceeds—To a selling stockhold¬
stock

repay

1

mon stock
(par $1) to be offered to present and future
holders of Special Participating Life Insurance Contracts

—None.

McWilliams

July 15

Underwriter—None.

8o,0UU shares of

$1.15 per share. Proceeds—For
working capital. Office—4016 Northwest 29th St.,
Miami,

Fla.

WHitehall 3-2181. Offering—Date indefinite.
1

er.

-if Illinois Telephone Co., Bloomington, III.
Aug.

McCarthy (Glenn), Inc.
June 12 filed 10,000,000 shares of common stock (par 25
cents). Price—$2 per share. Proceeds—For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,

Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y.
Telephone

share for each six shares held;
rights to
Oct. 1. A total of 3,388,832 shares
(99.31%) of

one new

the outstanding stock is owned
by
& Telegraph Co. Price—At

—

writer—None.

oper¬

•

20-year 6% first mortgage conver¬
tible debentures due
March, 1973, and 1,565,000 shares
,of class A stock (par 10
cents). Price—Par for debentures and $1 per share for stock.
Proceeds
For new
Business

Industries, Inc., Depew, N. Y.
(letter of notification) 24,990 shares of common
(par $5) to be offered pro rata for subscription by
common stockholders.
Price—$12 per share. Proceeds—
To pay off loans on machinery and equipment and cer¬

common

Proceeds—For

None.

Grand Bahama Co.* Ltd.. Nassau
rFeb. 3 filed $1,350,000

construction.

Marco

stock

—

Price—25

determined

Aug. 7

loans.
Underwriters
Lee Higginson
Corp., New York, and William Blair & Co.,
Chicago, 111.

Hunter Creek Mining
Co., Wallace, Idaho
June 2 (letter of
notification) 160,000 shares of

be

Hutzler; W. C. Langley & Co., The First Boston Corp.
Forgan & Co. (jointly); Merrill Lynch, Pierce,
& Beane and Kidder, Peabody & Co.
(jointly);
Harriman Ripley & Co., Inc.; Equitable Securities
Corp.
Bids—Expected to be received up to noon (EDT) on
Sept. 16.

if Household Finance Corp., Chicago, III. (9/10)
Aug. 21 filed $5,000,000 of 5-year debentures due
Sept.
15, 1958 and $10,000,000 of 15-year debentures due
Sept.
15, 1968. Price—To be filed by amendment. Proceeds—
To

Underwriters—To

Fenner

$30

—

$300,000 bank debt
Underwriter—None,
repay

construction.

new

and Glore.

privi¬

lege);

:

Georgia RR(i & Banking Coi
.'June

an

For invest¬

Under-,

&

being offered for subscription by stock¬

Barham & Co., Coral Gables, Fla.

Dynamics Corp.

Calif.

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co., Lehman Brothers and
A. C. Allyn & Co., Inc. (jointly); Blyth & Co.,
Inc.; White,
Weld & Co., and Shields & Co. (jointly); Salomon Bros.

Corp., New York

None.,

per share).
Proceeds—For drilling wells. Office—528 E and C
Bldg.,
Denver, Colo. Underwriter—E. I.
Shelley Co.,* Denver,

Gatos,

Louisiana Power & Light Co. (9/16)
Aug. 12 filed $12,000,000 first mortgage bonds due 1983.
Proceeds—To repay $11,342,500 of short-term debt and

June 25

(letter of notification)
3,616,000 shares of Class
common stock.
Price—At par (five cents

Los

Hollingshead (R. M.) Corp., Camden, N. J. (9/1)
Aug. 17 (letter of notification) 20.000 snares of common
(par $1). Price—To be supplied by amendment.
Proceeds—For working capital. Underwriters—Drexel &
Co.; Hemphill, Noyes & Co.; and Stroud & Co., Inc.
stock

basis of

bonds
to mature $40,000
annually from 1955 to 1994, inclusive.
Price—At 100% of
principal amount. Proceeds—To con¬
struct new warehouse.
Underwriter—None.

Way,

writer—None.

holders of record
July 31 in units of one share of stock
and a $25 debenture
(with an oversubscription

construction.

Montebello

fice—Marlton, N. J. Underwriters—None.

June 12 filed 13,573 shares of
capital stock (par $5) and
$339,325 of 4% 10-year cumulative income debentures
due Aug. 1, 1963,

—

j

ferred stock.

20,000 shares of Class B common
Price—At par ($10 per share). Proceeds—To erect

stock.

plant and for

new

.

Los Gatos Telephone Co.
(Calif.)
Aug. 12 (letter of notification) 29,773 shares of 5% pre¬
Price—At par ($10 per share). Proceeds—
To buy equipment, pay debt and for working capital.

and

Duquesne Light Co. (9/22)
Aug. 19 filed $12,000,000 of first
mortgage bonds due
Sept. 1, 1977. Proceeds
To repay bank loans and for

.

Lone Star Sulphur Corp., Wilmington, Del.
May 8 filed 600,000 shares of common stock (par 5 cents)
to be offered for subscription by common stockholders of
record May 8 on a share-for-share basis "as a specula¬
tion." Price—To be supplied by amendment. Proceeds—
For expansion program. Underwriter—None.

Price—$5

common

*
common

.

21

filed

Oils

Ltd., Canada

(9/2)

1,000,000 shares of capital stock (par 20t
and
subscription warrants for 600,000

Canadian)
shares, which statement was amended May 20 to 200,000
shares and warrants to purchase 200,000 shares to be

—

offered

in units of

one

share of stock and

one

warrant.

Price—75 cents per unit. Proceeds—For

drilling of addi¬
tional wells and to purchase producing wells. Under¬
writer—M. S. Gerber, Inc., New York.
Oil Finance Corp., Warren, Pa.
July 16 (letter of notification) 1,250,000 shares of com¬
stock (par 1 cent).
Price—At the market (about
4 cents per share).
Proceeds—To Anderson Oil Co., the

mon

.

Continued

on

page

32

32

The Commercial and Financial Chronicle... Thursday,

(748)

**

Continued from page
celling stockholder.

31

Office—217 Hickory St., Warren,

Underwriter—None.

Pa.

Overland Oil, Inc., Denver,

Colo.

June 10 filed 600,000 shares of common stock (par 100)
to be offered for subscription by stockholders (except
the original incorporators) at rate of one new share for
each two shares held.
Price—40 cents per share.
Pro¬

ceeds—For working capital.
Pacific Telephone &

Underwriter-—None.

Telegraph Co.

(9/15)

Aug. 14 filed $50,000,000 of 31-year debentures due Sept.
15, 1984. Proceeds—To reduce bank loans. Underwriters
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &

Co.; White, Weld & Co.; Lehman Brothers and Union
Securities Corp. (jointly). Bids—Expected to be received
up to noon (EDT) on Sept. 15.

Transport Co.

American Petroleum &

Pan

Aug. 13 filed $4,920,000 of Participations in Employees
-Savings Plan of this company and its subsidiaries, to¬
gether with 66,151 shares of $25 par capital stock of
Standard Oil Co. (Indiana) offered for purchase by the
trustee under such plan.
Standard Oil owns approxi¬
mately 79% of the issued and outstanding common stock
of Pan American Petroleum.

Pedlow-Nease

Chemical

Co., Inc.
July 9 (letter of notification) 2,000 shares of capital
£tock (no par) to be offered to stockholders of record
June 29 at rate of one new share for each five shares
beld.
Price—$10 per share.
Proceeds—For working
•capital.
Office—Lock Haven, Pa.
Underwriter—None,
Phillips Petroleum Co.
11 filed $25,000,000 of participation in the company's Thrift Plan and 444,444 shares of its common
jitock purchasable under the plan on the open market
sat current market prices.
It is contemplated plan will
fee placed in effect on or about Aug. 1, 1953.
June

<1

& Pine Street Fund, Inc., New York
Aug. 21 filed 125,000 shares of capital stock.
market.

working capital. Underwriter
ville, N. J.

Price—At

Peat Corp., Coral Gables, Fla.
(letter of notification) 100,000 shares of 6%
cumulative preferred
stock
(par $2.50)
and 100,000
shares of common stock (par 50 cents) to be offered in
■units of one share of each class of stock. Price—$2.50

6

unit. Proceeds—To liquidate liabilities and for work¬
ing capital. Office—220 Miracle Mile, Coral Gables, Fla.
Business—To process peat for fertilizer. Underwriter—

per

Frank L. Edenfield & Co.,

Miami, Fla.

Powdercraft Corp., Spartanburg, S. C.
June 3 (letter ot notification) 5,000 shares

of capital
($10 per share).
Proceeds—For
Business—Makes machine parts. Office

ntock.

Price—At par

working capital.
T46 Hayne St., Spartanburg, S.
boun & Co., Spartanburg, S. C.

C.

Underwriter—Cal-

Underwriter

Wash.

Sky Ride Helicopter Corp., Washington, D. C.
July 22 (letter of notification) 10,000 shares of common
stock (no par). Price—$2 per share. Proceeds—For of¬
fice equipment and patents and taxes.
Office — Suite
No. 1, National Airport,
—None.

Washington 1, D. C. Underwriter

(9/3)

A Southeastern Public Service Co.

Aug. 20 (letter of notification) .17,600 shares of common
stock (par 10 cents). Price—$7.50 per share. Proceeds—
For general corporate purposes, including investment in
the subsidiary operating the Texas properties.
Under¬
writers—Troster, Singer & Co., New York, and Bioren
& Co., Philadelphia, Pa.
|
Southern Bell Telephone &

Telegraph Co.

(9/2)

Aug. 18 filed $30,000,000 of 24-year debentures due Sept.

1, 1977. Proceeds — To repay advances from American
Telephone & Telegraph Co., the parent. Underwriters—
To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.; The First Boston Corp. Bids—
To be received up to 11 a.m. (EDT) on Sept. 2 at Room

2315, 195 Broadway, New York, N. Y.

shares

the basis of

one new

share for each

held

Spencer Kellogg & Sons, Inc.
July 30 (letter of notification) 6,500 shares of common
stock (par $1). Price—At market (not to exceed an ag¬
gregate of $100,000). Proceeds—To Howard Kellogg, Ruth
Kellogg Terry and The Marine Trust Co. of Western New
York, as trustees for Ruth Kellogg Terry. Undewriter—
White, Weld & Co., New York.

it Stauffer Chemical Co., New York (9/16)
27

filed

$15,000,000 of 20-year debentures due
Sept. 15, 1973, and 325,000 shares of common stock, of
which 15,000 shares are for the account of selling stock¬

Price—To be supplied by amendment. Proceeds
—To retire bank loans and for working capital. Under¬

July 7 (letter of notification) 33,333 shares of common
stock (par $1). Price—$3 per share. Proceeds—To de¬
velop and improve property for cemetery. Office—516
-Carondelet Bldg., New Orleans, La. Underwriter—Woolfolk & Shober, New Orleans, La.
Public Service Co. of New

Hampshire (9/14)
Aug. 19 filed $7,000,000 of first mortgage bonds, series G,
-•due 1983. Proceeds—To repay bank loans. Underwriters
—To be determined by competitive .bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.

writer—Morgan Stanley & Co., New York.

1

Technograph Printed Electronics Inc.
June 26 (letter of notification) 99,906.2 shares of com¬
mon stock (par 40 cents)
being offered to common stock¬
holders of record July 13, 1953 on a basis of one new
share for each two shares held; rights to expire March
3, 1955. Price—$3 per share. Proceeds—For licensing
activities and improving patent position and for work¬
ing capital. Office — 191 Main St., Tarry town, N. Y.
Underwriter—None.

and Coffin & Burr, Inc.

(jointly); White, Weld & Co.;
Kidder, Peabody & Co. and Blyth & Co. Inc. (jointly).
Bids—Tentatively expected to be received up to noon
<£DT) on Sept. 14 at company's office in Boston, Mass.

'

Remington Corp., Auburn, N. Y.
Aug. 19 (letter of notification) up to 7,000

shares of
(par $1) to be offered to employees. Price
$3.25 per share. Proceeds—For general corporate pur¬
common

stock

Underwriter—None.

poses.

Tennessee Gas

Transmission Co.

Ridley Mines Holding Co., Grafton, N. D.

•

Rowland Products, Inc., Kensington, Conn.
July 30 (letter of notification) 2,450 shares of common
stock

being offered to stockholders

share for each two shares held

on

basis of

one

new

July 22; rights to ex¬
pire Sept. 18. Price—At par ($25 per share). Proceeds—
For working capital.
Office—Fairview Place, Kensing¬
ton, Conn.
Underwriter—-None.
&

on

ceived up to 11 a.m. (EDT) on Sept. 14 at office of
Cahill,

Gordon, Zachry & Reindel, 63 Wall St., New York 5, N. Y.

April 23 filed 165,000 shares of common stock (par $1).
$5 per share. Proceeds —To acquire stock of

Price

—

JNeb-Tex Oil
I

■

Co., to pay loans and for working capital.
^Office—Northwood, Iowa. Underwriter—Sills, Fairman
& Harris of
Chicago, 111. Offering—Indefinitely post¬
poned.

JPrice—$4 per share.
Proceeds—To purchase and sell
leaseholds, royalties and producing properties, to pros¬
pect for oil and gas and to develop and
operate produc-

Office—Mt. Vernon, III,

Rothchild & Co., New York.

postponed.
H

Proceeds—To
&

Webster

repay

bank loans.

Securities

Corp.

and

Underwriters—Stone

White,

Weld

&

Co.

^ Se£?l„Lock & Hardware

Underwriter—
Offering—Indefintely

Aug. .20 (letter of notification) 60,000 shares of

shares of 5% cumulative preferred stock, series A
(par
$25) of Textron Puerto Rico, a subsidiary, on a one-forfour

basis.

Offer

to

expire Sept.

30, 1953.

Statement

July 31.

•
Thompson (H. I.) Fiber Glass Co. (9/8-9)
Aug. 17 filed 50,000 shares of capital stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—Los Angeles, Calif. Under¬

writer—Sutro




For general corporate purposes. Underwriter—Sidney S.
Walcott, President of company, Buffalo, N. Y.
;

Washington Water Power Co.
1,088,940 shares of $1.28 cumulative con¬
vertible preferred stock (par $25) and 1,088,939 shares of
common stock (no par) to be issued in connection with
the proposed merger into company of Puget Sound Pow¬
er & Light Co. on the basis of one-half share of pre¬
ferred and one-half share of common for each Puget
May 7 filed

Sound

common

share to holders who do not elect to re¬

ceive cash at the rate of $27 per
None.

share. Underwriter—

■

v'

West Coast Pipe Line Co.,
Nov. 20 filed $29,000,000 12-year

Dallas, Tex.
6% debentures due Dec.
15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture andi
Price

share of stock.

one

—

To be supplied by amend¬

Proceeds—From sale of units and 1,125,000 addi¬

ment.

tional shares of

stock and private sale of $55,-

common

000,000 first mortgage bonds, to be used to build a 1,039
mile crude oil pipeline. Underwriters—White, Weld &
Co. and Union Securities Corp., both of New York. Of¬
fering—Postponed indefinitely.
1

Dallas, Tex.

1,125,000 shares of common stock (par 59
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters — White, Weld & Co. and Union Se¬
curities Corp., both of New York. Offering—Postponed

Indefinitely.

ir Westinghouse Air Brake Co.

(9/16)

Aug. 21 filed $35,000,000 of sinking fund debentures due
Sept. 1, 1978. Price — To be supplied by amendment.
Proceeds
To retire LeTourneau-Westinghouse bank
—

loan of

$30,000,000 and, together with other funds, to re¬
tire bank loan of Le Roi Co., another subsidiary. Under¬
writer—The First Boston Corp., New York.
,

•

Wisconsin Power & Light Co.

(8/31)

Aug. 5 filed $8,000,000 first mortgage bonds, series G.
due Sept. 1, 1983. Proceeds—To repay bank loans and for
new construction. Underwriters—To
be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co.

Inc.; Smith, Barney & Co. and Robert W. Baird &
(jointly); Union Securities Corp.; Salomon Bros. &
Hutzler; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); Equitable Securities Corp.; The First Boston
Corp. Bids—To be received up to noon (CDT) on Aug.
31 at 20 No. Wacker Drive, Chicago 6, 111.
Co.

• Wisconsin Power &
Light Co.
Aug. 5 filed 20,000 shares of 4.80% cumulative preferred
stock (par $100) being offered for subscription by pre¬
ferred stockholders of record Aug. 14, subject to allot¬
ment, and 329,194 shares of common stock to be offered
for subscription by common stockholders of record Aug.
14 on a l-for-7 basis; rights to expire Sept. 8. Price—For
preferred1, at par and dividends; and for common, $19.69
per share.
Proceeds — To acquire stock of Interstate

Power

Co.

for

and

new

construction.

Underwriters-

Smith, Barney & Co. and Robert W. Baird & Co.

^Worcester Gas Light Co. (9/29)
Aug. 25 filed $3,000,000 of first mortgage sinking fund
bonds, series B, due Sept. 1, 1973. Proceeds—To retire
bank loans and for
be

new

constructidn.

Underwriters—To

determined

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.; Kidder, Peabody & Co. Bids—Tenta¬
tively expected to be received up to 11:30 a.m. (EST) on
Sept. 29 at company's office, 10 Temple St., Cambridge,

&

Co., San Francisco and Los Angeles,

• American
Fidelity & Casualty Co. (10/9)
Aug. 26 it was stated registration is planned for around
Sept. 15 of 150,000 shares of convertible preferred stock
(par $5) to be offered for subscription by common stock¬

holders

Torrington Manufacturing Co., Torrington, Conn.
Aug. 6 (letter of notification) 12,000 shares of common
stock (par $6.25) being offered to common stockholders
of record Aug. 4 on basis of one new share for each 10
shares held;, rights to expire on Sept. 4. Price—$20
per
share. Proceeds—To erect and equip
plant addition and
for loan to Canadian

subsidiary. Office—70 Franklin St.,
Underwriter—None.

United

stock.

For

Price—At par

common

(10 cents per share). Proceeds—
Underwriter — R. L. Hughes &

mining equipment.
Co., Denyer, Colo.

a

share-for-share. basis, about Oct. 9; rights

Certain stockholders have waived their
rights to purchase the new shares. Price—To be named
later. Proceeds
For working capital.
Geyer & Co., New York.
-

Underwriter—

—

*

American Telephone & Telegraph Co.,,

Aug. 19 directors voted to recommend to stockholders
that
in

they authorize

a new

issue of convertible debentures

amount not to exceed

$625,000,000 at a meeting to
Price—Expected at par. Proceeds—
For advances to subsidiary and associated companies.
Underwriter—None.
Offering—To; be made to stock¬
holders.
~ 7
an

be held

on

Oct. 14.

..~

..

c

American Water Works Co.y lnc.

Mining & Leasing Corp.
Central Bity, Colo. :

May 4 (letter of notification) 115,000 shares of

on

to expire Oct. 24.

•

common

^
°^ere(l to creditors of, company.
exceeding par. Proceeds—To liquidate in¬
debtedness. Underwriter—None.
Office-395 Broadway,
JNew York, N. Y.
i
"
"s» ♦
Blice—Not

Underwriter—None*

Ltd., Toronto, Canada
April 24 filed 660,000 shares of common stock (par $1)
of which 550,000 shares will be offered in the United
States and 110,000 shares in Canada. -Price — $1.02 pershare in U. S. and $1 per share in Canada. Proceeds—

Textron Incorporated, Providence, R. I.
June 25 filed 4,930 shares of 4% preferred
stock, series A
(par $100) to be offered in exchange for the 19,719

Torrington, Conn.

Co., Inc., New York

Proceeds—For investment.

Walburt Oils

Mass.

(jointly).

Calif.

Schlafly Nolan Oil Co., Inc.
March 25 filed 150,000 shares of common stock
(par 250).

r

(9/15)
class of preferred

Aug. 14 filed 100,000 shares of a new
stock (par $100).
Price—To be supplied by amendment.

effective

Saint Anne's Oil Production Co.

(9/14)

Aug. 14 filed $20,000,000 of debentures due 1973.
Pro¬
ceeds—To repay bank loans.
Underwriters—To be de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp. and White, Weld & Co. (jointly). Bids—To be re¬

Tennessee Gas Transmission Co.
June 1 filed 120,000 shares of common stock. Price—At
par ($5 per share).
Proceeds — For working capital
Underwriter—None.

ic Value Line Income Fund, Inc.; New York
Aug. 24 filed 2,500,000 shares of capital stock. Price—At

Nov. 20 filed

(with an oversubscription privilege);
rights to expire Oct. 7. Price—$18 per share. Proceeds
—For additions to properties.
Underwriter—None.

Aug.

Underwriter—None.

Blvd., Los Angeles, Calif.

West Coast Pipe Line Co.,

(8/31)

Aug. 10 filed 108,350 shares of common stock (par $1)
to be offered for subscription by common stockholders
18

Universal Finance Corp., Los Angeles, Calif.
July 27 (letter of notification) 12,000 shares of 6% cumu¬
lative preferred stock. Price — At par ($25 per share).
Proceeds—For working capital.
Office—3460 Wilshire

market.

holders.

Providence Park, Inc., New Orleans, La.

•

None. Office —Branch-

Office—West 909 Sprague Ave., Spokane,
—
Mines Financing, Inc., Spokane,

exploration.
Wash.

of record Aug. 31 on

Planter's

Aug.

—

A Silver Dollar Exploration & Development Co.,
Spokane, Wash.
Aug. 20 (letter of notification) 1,000,000 shares Of com¬
mon stock.
Price — 30 cents per share. Proceeds^-For

Southern Union Gas Co.

Underwriter—None.

Proceeds—For investment.

Selected Risks Indemnity Co.
Aug. 13 (letter of notification) 8,500 shares of capital
stock (par $10) to be offered to stockholders of record
Sept. 1,1953 on the basis of one new share for each 8 7/17
shares held; rights to expire Oct. 1, with payment due on
or before Nov. 5.
Price—$35 per share. Proceeds—For

August 27, 1953

July 29 it was reported company may do some preferred
stock financing following private placement of an issue
of bonds.
Underwriter
Probably: The First Boston
—

Corp;, and W. C. Langley & Co., both of NewyYork.
'Offering—Not imminent.-77\7 "

Number 5250

Volume 178

...

The Commercial and Financial Chronicle

Arkansas Power & Light Co.

that company may consider

March 20 it was announced

shares of $7 preferred
stock (no par) and 45,891 shares of $6 preferred stock
(no par), both callable at $110 per share. Underwriters—

refunding the outstanding 47,609

competitive bidding. Probable bid¬
Blyth & Co., Inc, and Equitable Securities Corp.

To be determined by
ders.

(jointly); W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
iLynch, Pierce, Fenner & Beane (jointly); Union Securi¬

company's stock, the right to subscribe within 30 dayf
for 13 additional shares at $4.10 per share and a $250
collateral trust 5% bond due May 1, 1990; the offer to
become effective upon acceptance by 95% of the out¬
standing stock. An additional 210,000 of the new shares
would be purchased by the underwriters, plus any of
the

an

& Co.

July 27 it

City Electric Co.

L. England, President, indicated that the
company early next year expects to raise $14,000,000 to
.$16,000,000 through the sale of bonds and both preferred
and common stock.
Proceeds—To repay bank loan and
for

B.

construction.

new

Atlantic Refining Co.
March

27

it

announced

was

this

exact

proposed

debenture

authorized

year

Stockholders voted May

determined.

debt from

ceeds—To

be used

& Co.

5 to increase the

to $150,000,000.
Pro¬
for a $100,000,000 con¬

Aztec Oil & Gas Co.

proposed divestment plan.

planned to offer and
shares of common stock. Pro¬
ceeds—To purchase properties in the South.
Under¬
writers—Probably Coffin & Burr, Inc., Boston, Mass.,
and The First Boston Corp., New York.
Plan Opposed750,00(1 additional

Consolidated Textile

Co., Inc., is opposing the proposed

financing.
Blair

was

anewly acquired subsidiary.

Underwriters—Blair, Rollins

Co. Inc. and The First California

Co.

reported

was

company

plans

sale

later

Co.

(jointly); Coffin & Burr, Inc.j A. C. Allyn & Co.,
Stearns & Co. (jointly); Harriman Ripley
•& Co., Inc.

ifne. and Bear,

Central-Penn

National

Bank of

Philadelphia

crease

Price—$30

per

share.

Proceeds—To

capital and surplus. Underwriter—Stroud & Co.,

&

Webster

may

Securities

Corp.; Lehman Brothers
(jointly); Blyth & Co., Inc.,
Harriman Ripley & Co., Inc. and Smith, Barney & Co.
<jointly); Salomon Bros. & Hutzler.
Foigan

Columbia Gas

April 6 it

was

&

Co.

System, Inc.

announced

plans to issue and

company

ssell later this year $40,000,000 of new debentures.
Pro¬
ceeds—To repay bank loans and for construction pro¬

Underwriters—To be determined by competitive
"bidding. Probable bidders: Halsey, Stuart & Go. Inc.;
-Morgan Stanley & Co.

gram.

Detroit Edison Co.
March 24 it was announced company plans to issue an
unspecified amount of convertible debentures due 1963

<about $55,000,000 to carry

*4%)

finance

which

may

first

costs.

■authorized the

new

of Public

Service

Hampshire; and 20,730.20 shares (2.72%) of
stock

increased

General

April 27

of

Central

Vermont

Public

volume

of

business.

Probable

Paine,

Government

to

Underwriter—

Webber,

interest rate not exceeding
offered for subscription by

an

be

Meeting—Stockholders
debentures.

on

April

14

Underwriter—None.

Jackson

&

issue of 3,000 shares

of preferred stock (par $100) to carry a cumulative divi¬
dend rate not to exceed 6% annually. The management
states that, under present plans, these shares will be
the

May

the

7

issue

to

company

bonds

and

latter

first

and

$483,000
to

U.

P.

sell

par

Commission

$200,000

value

of

of

authorized

first

mortgage
stock

common

stockholders). Proceeds—To

retire

(the
bank

loans. Underwriter—F. L. Putman & Co., Boston, Mass.

on

a

l-for-8 basis before Dec.

31, 1953, prob¬
Proceeds—For construction

ably without underwriting.
program.

Idaho

Power

that

this

plans

company

construction of

three

of preferred stock; and $52,150,000 of
Throughout the financing period, the

financing details would depend

would

on

Final

market conditions.

Indiana &

Michigan Electric Co. (9/29)
Aug. 14 it was reported company is planning issuance
and sale of $15,000,000 first mortgage bonds due 1.983
and $5,000,000 to $7,000,000 of preferred
stock, late in
September or early in October.
Underwriters—To be
determined by competitive bidding.
Probable bidders:
(1) For bonds: Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Kuhn, Loeb & Co.; Union Securities
Corp.;
Harriman Ripley & Co. Inc. (2) For preferred: The First
Boston Corp.; Lehman Brothers; Union Securities Corp.
SEC permission has been given to
company to see if a
better price for the preferred stock could be received
by negotiation. Bids—For bonds: Expected about Aug. 28.

issue
new

was

announced

sell

and

common

Aug. 20 stockholders were to vote to create an issue of
1200,000 shares of preferred stock (par $10), a portion of
which will be offered publicly.
Underwriters — Blair,
Rollins & Co., Inc. and Cohu & Co., both of New York.

-Registrations—Expected in September.

that company this Fall plans

the neighborhood of 600,000 shares
stock to be followed in the latter part of
in

the year by an

construction.

Eastern Utilities Associates

STeb. 20 it

was

announced company plans sale of
trust mortgage bonds due 1973.

$7,000,-

collateral
Under-writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &

fOOO

Co. and Stone & Webster Securities

Corp. (jointly); The

"First'Boston Corp., White, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); Glore, Forgan & Co. and Harriman
Excelsior Insurance Co. of New York

a

First Railroad & Banking Co. of

May 4 it

Georgia

announced that this new company will
of Georgia Railroad & Banking Co.
in exchange for each share held, one share of the new
was

stockholders




bonds
C

May 7).

preferred stock, par $100, offered publicly on
Proceeds—To repay bank loans and for new

Underwriters—(1)
For common
stock
probably Blyth & Co., Inc. and The First Boston Corp.
(jointly).
(2) For bonds to be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co.; Smith, Barney & Co.
Maier Brewing Co., Los

April 18 it

was

announced

additional shares of

per

share.

plant.

proposal to issue and
sell 30,000 additional shares of capital stock (par $6).
IPrice—$10 per share. Proceeds—To increase capital and
surplus. *

offer

series

issue of about $25,000,000 of first mort¬
(this is in addition to 100,000 shares of

rate of four

Hipley & Co. Inc. (jointly).
(Syracuse, N. Y.)
Aug. 11 stockholders approved

gage

new

Prcoeeds

—

To

share held.

help finance

a

Price—$5

new

bottling

Underwriter—None.

Menabi

Oct.

1

company

in

position

to

proceed

may

become

contemplated.

Under¬

a

financing

new

offer

not

that

writers—May

be determined by competitive bidding;
Probable bidders: Kidder,
Peabody & Co.; Blyth & Co.,
Inc.
•

Mississippi Power Co. (10/6)
July 20, L. P. Sweatt, President, announced
company
plans to issue and sell $4,000,000 of 30-year first mort¬
gage bonds due 1983.

Proceeds

—

For construction pro¬

Underwriters—To be determined by
competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Union Securities
Corp.; Equitable Securities Corp. and
Drexel & Co. (jointly); Merrill
Lynch, Pierce, Fenner &

Beane; Kidder, Peabody & Co.; The First Boston Corp.
Bids—Expected to be received up to 11 a.m.
(EST) on
Oct. 6 at Suite 2000, 20 Pine
Street, New York, N. Y.

(9/30-10/1)
July 24 company sought SEC permission to issue and sell
194,916 shares of common stock (par $8) to be offered
for subscription
by common stockholders at the rate of
one

share for

new

each 10 shares held
(with a 16-day
standby). An oversubscription privilege is also provided.

Price—To be announced later.
Proceeds—To retire bank
loans.
Dealer-Manager—The First Boston Corp., New
York.

was

reported that company may, later in
1953,
issue and sell $20,000,000 first
mortgage bonds (following,
private sale of 75,000 shares of 4.40% preferred
stock,
par $100 in February and
$5,000,000 of 3%% debentures
due 1991 in April).
Underwriters—To be determined by

competitive

bidding. Probable bidders: Halsey, Stuart
Inc.; The First Boston Corp. and Glore, Forgan
(jointly); Blyth & Co., Inc. and Smith, Barney
& Co.
(jointly); Hemphill, Noyes & Co. and Drexel
&
Co.
(jointly); Kidder, Peabody & Co. and Salo¬
mon Bros. & Hutzler
(jointly); Lehman Brothers; Har¬
riman Ripley & Co., Inc.
&

Co.

&

Co.

Gas

Co.

July 17 Harry H. Siert, Treasurer, announced that stock¬
will vote Aug. 24 on
authorizing an issue of
750,000 shares of preferred stock, of which it is planned
holders
to

issue

and

sell

Proceeds—For
&

250,000

shares

(par

expansion program.

Co., Inc., handled recent

common

$100) thisrFalL
Underwriter—Blyth
stock financing.

Northwest Natural Gas Co.
March

23 it was reported that this
company plans to
finance its proposed 1,300-miles pipeline from Canada te
the Pacific Northwest by the issuance and sale of

$60,000,000 of 41/2% first mortgage pipeline bonds to insur¬
ance companies and other institutional
investors and $9,000,000 of 5% debentures and 1,400,000 shares of commOB
stock at $10 per share
publicly in the United States and
Canada.

Underwriter—Morgan Stanley & Co., New York.

Ormond

March
with

10

it

Corp., Albuquerque, N. M.
was

the SEC

an

announced

issue

of

nationally. Office—5003
querque. N. M.

company plans to register
stock, which will be offered

Central

Avenue, N.

E.,

Albu¬

Otter Tail Power Co.

June

25

FPC

authorized company to

issue

a

maximum

$4,000,000 unsecured promissory notes to banks, the
proceeds to provide funds to temporarily finance the

company's 1953 and 1954 construction programs prior to
arranging for long-term financing.

Underwriters—May

be

Glore, Forgan & Co. and Kalman

&

Co.

ic Pacific Gas & Electric Co. (9/21)
Aug. 19 it was announced early registration is expected
of an issue of 1,946,829 additional shares of
common stock
(par $25) which are to be offered for subscription
by
common
one

pire

new

on

stockholders of record Sept. 15 on the basis of
share for each seven shares
held; rights to ex¬
or about Oct. 2.
Warrants are expected to be

mailed

on
Sept. 18, and the subscription period is ex¬
pected to open on Sept. 21 and close on Oct. 6. Price-

tration

will offer 400,000

stock to its stockholders at

shares for each

vote

To be determined prior to the effective
date of the

Angeles, Calif.
company

common

will

of

Long Island Lighting Co.
to

the
any

Immediate

necessary.

stock.

common

company

borrow and repay $29,000,000 of short-term loans.

April 21 it

place
with

Northern Natural

to raise $184,550,000
hydro-electric projects
on Snake River, Idaho.
If approved, the financing will
consist of $105,000,000 of bonds through 1962; $27,400,000

•

will

promptly

Co.

Aug. 6, officials of Blyth & Co., Inc. and Bankers Trust
Co., New York, testified before the Federal Power Com¬
finance

stockholders

New York State Electric & Gas
Corp.

ic Hartford Electric Light Co.
July 29 it was reported company plans to offer to its
common
stockholders 105,500 additional shares of com¬
stock

This

Feb. 27 it

Connecticut

Light Co.

announced

increasing the authorized common stock (no par)
from 2,000,000 shares
(858,047 shares outstanding) to 3,000,000 shares and on approving a 2-for-l stock
split
on

growth of the corporation warrants.

Greenwich Gas Co.

of

Eastern Industries, Inc.

an

Power &

was

New England Gas & Electric
Association

Employees Corp., Washington, D. C.

March 18 stockholders authorized

as

Aug. 3 it

gram.

was

—

City area to cost about
Glore, Forgan & Co., New

—

Milwaukee Gas Light Co.
July 7 company sought SEC approval of a bank loan,
of $9,000,000 the mature
Aug. 1, 1954. These borrowings,
plus retained earnings, are designed to finance
expansion
pending formulation of permanent financing prior t©
maturity of notes. Probable bidders for bonds:
Halsey,
Stuart & Co. Inc.;
Glore, Forgan & Co. and Lehman
Brothers (jointly);
Smith, Barney & Co. and Blyth &
Co., Inc. (jointly); Kuhn, Loeb & Co.;
Kidder, Peabody
& Co.; Harriman
Ripley & Co. Inc.

Telephone Co. of Kentucky

it

Underwriter

York.

Service

reported early registration is expected
of 50,000 shares of cumulative preferred stock
(par $50).

■stockholders. Proceeds—To retire bank loans and to meet
•construction

45,690.45

Morgan Stanley & Co., New York.

to

issue and sell
•150,000 shares of new preferred stock. Underwriters—To
$>e determined by competitive bidding. Probable bidders:
Glore.

stock

common

Co.;

a
registration statement with the SEC on Friday
(Aug. 28) to cover an issue of $150,000,000 eight-year
debentures, due Sept. 15, 1961. Proceeds—To be used to

mission

Central Power & Light Co.
2 it was reported company

March

-*nd

Power

^General Motors Acceptance Corp. (9/15)
Aug. 26 it was announced that corporation expects

in¬

Inc., Philadelphia, Pa.

Stone

of the

Maine

General Electric proposes to sell or otherwise dis¬
pose
of such securities within a period of one year
from the date of such acquisition (subject to its
right to
apply for additional time to dispose of such securities).

mon

reported Bank plans to issue and sell to
its stockholders of record Sept. 22 an additional 124,125
.-shares of capital stock (par $10) to be offered on a
was

basis.

Central

Corp.

this

of $10,000,000 common stock (in addition to $10,<€00,000 of 1st & gen. mtge. bonds sold March 10, 1953),
?after distribution by New England Public Service Co. of
Jts holdings of Central Maine Power Co. common stock
UProbable bidders: Blyth & Co., Inc. and KidderJPeabody

July 24 it

of

(3.89%)

issued

;year

l-for-3

shares

issue and

Contral Maine Power Co.
it

stock

common

Curtis and Stone & Webster Securities Corp.

announced company plans to

ssell publicly $2,000,000 of convertible debentures. Pro¬
ceeds — For development of Stanwell Oil & Gas Ltd.,

2

ownership of NEPSCO stocks, General Electric will
to receive 97,030.95 shares (3.89%) of the

entitled

Underwriters

Holdings Corp.

June 24 it

Jan.

be

file

Bates Manufacturing Co. '
June 25 it was reported company

sell

of its

33

ammonia plant in the Salt Lake

$9,000,000.

Minnesota

received SEC authority to acquire its
distributive portion of portfolio stocks being distributed
by New England Public Service Co. pursuant to that
company's plan of liquidation and dissolution. By reason

common

Underwriters—Smith, Bar-

financ¬

some

Probably Dean Witter &

company

of New

1953.

—

General Electric Co.

Co.

Aug. 11 it was reported company's common stock (held
toy Southern Union Gas Co.) may be offered to stock¬
holders of the parent company on a pro rata basis under
a

•

Aug. 24

the

head group.

may

Underwriter

Co.

help

pay

reported company may do

was

ing this Fall.

$75,000,000

to

struction program for
jsney

that

will be around $60,000,000.
The
nature and timing of the financing are still to be

later

issue

ai|d. Joseph Walker & Sons.

General Controls Co.

Atlantic

17,

unsubscribed shares.
Proceeds—To retire $2,190,000
Georgia Railroad & Banking Co. debentures held by
insurance firm. Underwriters—Johnson, Lane, Space

of

ties Corp.

Aug.

(749)

Exploration Co., Inc., Houston, Tex.

April 8 it

was announced company plans to issue and
$1,000,000 of convertible debentures. Proceeds—To
finance development of oil properties in Ecuador. Under¬
writer—Kidder, Peabody & Co., New York.

sell

Mill Creek Chemical Co.

July 24 it was reported that company may do some fi¬
nancing in connection with its plan to build an anhydrous

for

statement.

new

Proceeds—To

construction.

repay

bank

Underwriter—May

be

regis¬

loans and

Blyth

&

Co., Inc., San Francisco, and New York.
Pacific Northwest Pipeline
Corp.
Jan 29 company received FPC
permission to file
substitute application proposing to construct a

mile

transmission

line

Basin in New Mexico

the

Pacific

a

third

1,460-

extending

and

from the San Juan
Colorado to market areas in

Northwest.

Estimated overall capital cost
of the project is
$186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of firstmortgage pipe line bonds and preferred and common

Continued

on

page

34

34

The Commercial and Financial Chronicle

(750)

Continued

000

from page 33

For

& Telegraph Co.

issue and
of

shares

•

l-for-7 basis. Price—At par (100 per
share.
Proceeds—To repay bank loans.
Underwriter—
None.
American Telephone & Telegraph Co., parent,
owns
91.25% of Pacific's outstanding stock. (See also

Pennsylvania Water & Power Co.
11 it was reported company is considering issu¬
and sale of from $9,000,000 to $10,000,000 additional
bonds.
Proceeds—For construction program.
Under¬
writer—May be The First Boston Corp., New York.
Offering—Expected to be made privately.

for

the

privately. Underwriters — Stone & Webster Securities
Corp. and Glore, Forgan & Co., both of New York. Of

|

of

this

vertible

(Texas)
reported company is considering issue and
Service, Inc.

Aug. 4 it was
sale of $300,000 of 6%
into

ible

Garrett
/%

&

Dallas,

19

filed

Texas. Offering—Expected this
Stockholders will vote Sept. 19 on approving fi¬

fall.

Co.,

Feb.

& Gas Co.

Public Service Electric

(10/28)

reported company plans to issue and sell
$30,000,000 of first mortgage bonds due 1983.
Under¬
writers
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and Lehman Brothers (jointly); Morgan Stanley
& Co. and Drexel & Co.
(jointly); The First Boston
If by negotiated sale, Morgan, Stanley & Co.,
Corp.
Drexel & Co. and Glore, Forgan & Co. may head syndi¬
cate.
Bids—Expected late in October.
Registration—
Planned for Sept. 30.
Aug. 20 it

was

17

it

reported

was

company

—

Raytheon Manufacturing Co.
July 27 it was reported company may offer to
stockholders about 435,388 additional shares of
stock

(some

time

in

the

future)

on

of

l-for-8

stock

common

basis.

an

ment

basis.

increasing authorized common stock from 3,000,000
4,000,000 shares. Offering—Not imminent.

to

offering" of
to

common

Airlines, Inc., New York

11 it

announced

was

financing to

cargo

secure

(EDT)

Co.

and

3%

to

(8/31)
of

stock,

the

issued

and

this"

corporation
$1),* will be

par

sold

(9/3)

several

4%

Canadian

short-term

companies);

notes

to

the

$25,-

National

of

natural

a

pipe line from the

gas

Canadian Peace River field to western

Washington and
Oregon. Underwriter—Eastman, Dillon & Co., New York.
Western Massachusetts Companies
30, H. J. Caldwell, President, stated trustees are
studying plan to issue and sell additional common stock
which would provide the
company's electric subsidiary
,

June

with sufficient funds to retire not

v

exceeding one-half of
A total of 978,527 no par com¬
presently outstanding. Offering—^Ex¬
pected before end of 1953, subject to market conditions.
Underwriters
May be The First Boston Corp.. New

Electric Co.

$8,000,000 bank loan.
shares

mon

announced company later this
year will
50,000 shares of cumulative preferred

are

—

York.

1

•

Westpan Hydrocarbon Co.
July 1 SEC granted Sinclair Oil Corp. an extension of
six months from June 21, 1953, in which to
dispose of its
holdings of common stock in Westpan and the South¬

Kidder, Peabody & Co. (jointyl); W. C. Langley & Co. and Paine, Webber, Jackson & Curtis
(jointly);
Harriman, Ripley & Co. Inc.; Merrill Lynch, Pierce,

Fenner & Beane and Union Securities
Corp. (jointly);
Lehman Brothers; Blyth & Co.
Inc., and Stone & Webster
Securities Corp. (jointly).

$6,000,000 bonds, $6,000,-

of

construction

nance

& Co. and

1952 F. L. Lovett, President, announced com¬
pany expects to raise about $24,000,000 in the next two
years through sale of bonds, and preferred and common
stock, viz: $5,500,000 of first mortgage bonds and $5,500,-

Webster

City Bank of New York; and about 3,500,000 shares of
common
stock for about $30,000,000.
Proceeds—To fi¬

(par $100). Underwriters — May be determined
competitive bidding. Probable bidders, White Weld

by

12,

000 preferred stock in 1953 and

sell

and

of

&

:

-

reported company may issue and sell about

was

000.000

stock

Rockland Light & Power Co.
Nov.

was

issue

-

plans future public
transport aircraft.
company

common

Insurance

I

an

April 29 it
Riddle

Aug.

stock

all

/

•

con¬

was stated company may issue and sell
$59,000,000 of 4% first mortgage bonds to insurance com¬
panies (including Prudential Insurance Co. of
America,
New York Life Insurance
Co.; Northwestern Mutual Life

(9/10)

&

Stone
•

(Pa.)

that

some

Underwriters

West Coast Transmission Co.

i

Westpan Hydrocarbon Co. below.

Fall.

cost

on

V' Southwestern Gas

issue

may

the

St., New
Sept. 3 for the pur¬
chase from it of $2,820,000 equipment trust
certificates,
series E, to be dated Sept. I,
1953, and to mature annually
from Sept. 1, 1954 to 1968,
inclusivg. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co., Dick & Merle-Smith and Wood,
Struthers & Co. (jointly).

Southwestern Development Co.
See

of

* Wabash RR. Co.

1953 and to mature in 15
equal annual instalments up to
Sept. 1, 1968, inclusive. Probable bidders:
Halsey, Stuart
& Co. Inc.; Salomon Bros. &
Hutzler.

common

York.

1954.

Bids will be received by the
company at 44 Wall
York 5, N. Y., up to noon (EDT) on

$5,250,000 equip¬
certificates, series KK, to be dated Sept. 1,

trust

February

$12,000,000 additional common stock this Fall. Under¬
writer—Stone !& Webster Securities
Corp., New York.

Offering—Expected

Underwriter—None.

* Southern Pacific Co.

capital

1-for-13

a

New

April 1 it

Bids will be received by the
company up to noon,
on
Sept. 10 for the purchase from it of

Underwriters—Hornblower & Weeks and Paine, Webber,
Jackson & Curtis. Meeting—Stockholders to vote Sept.
17

shares
a

early in October.

common

l-for-5

a

500,000 additional
stockholders on

plans

before

announced

was

on

Co.,

Pipe Line Corp.

company

stock

&

or

Virginia Electric & Power Co.

ic Southern New England Telephone Co.

Aug.

it

Aug. 7 it

was

Alabama. Georgia and Florida at an estimated
$8,141,518. Rehearing by FPC to be held Aug. 10.

of
•

Read

(404,500
by
61 Broadway Corp. at a
judicial auction on Aug. 31 (at
noon) in Room 325, County Court House, Pearl & Centre
Sts., New York, N. Y. ;

announced a FPC
Presiding Examiner
decision, subject to Commission review, author¬
the company to construct 335 miles of pipeline

izing

preferred

outstanding

a

in

nancing.

reported

was

17

shares

year.

Georgia Natural Gas Co.
it

stockholders

Trans-Penn Transit Corp.

Aug.

Underwriter—May be The First
Corp., New York.

South

debentures due 1963 (convert¬
stock).
Underwriters — Probably

common

to

-

who will also have the privilege to purchase
debentures not subscribed for by other stockholders.

any

first

—Probably White, Weld & Co. and
Securities Corp., both of New York.

company,

Petroleum

offered

Transcontinental Gas

May 4 it

Sterling,
directors! of the

Natural Gas Co.

be

Underwriter—Dillon,

Offering—Expected in January

writers—For $115,000 of debentures: Edward C.
Meade Johnson and I. D.
Robbins, all

owned by North¬

now

latter to

basis).

it Segal Lock & Hardware Co., Inc.
Aug. 24 it was announced stockholders will vote Sept.
14 on authorizing an issue of
$975,000 of convertible de¬
bentures (each $100 principal amount to be convertible
into 66% shares of capital stock). Proceeds—To
acquire
remaining 50% of stock of Arrow Lock Corp. Under¬

Pipeline Co., Chicago, III.
filed an amended application with FPC

is

end

Boston

authority to construct a 163-mile pipeline system at
estimated cost of $40,269,000. Financing may be done

ern

was announced
company plans to issue and
$20,000,000 of securities (to consist of around
$12,000,000 bonds; from $2,000,000 to $3,000,000 of pre¬
ferred stock; and the remainder in common
stock, the

Aug. 11 it was reported company may do some public
financing (probably in the form of debentures)' before

Basin

the stock of this company, 51%

Finance Co.

it

6

sell about

bonds:,Halsey, Stuart & Co. Inc.; First Boston Corp.
(jointly); Stone & Webster

Seaboard

Aug.

ance

an

Southwestern Public Service Co.

Aug.

der, Peabody & Co. (jointly). Common stock will prob¬
ably be offered for subscription by stockholders.: Offer¬
ing—Expected during the Fall of 1953.

proposed bond financing under "Securities Now In Reg¬
in a preceding column of this issue.)

Permian

in

Pierce, Fenner & Beane; Estabrook & Co. (2) For pre¬
ferred—Stone & Webster Securities Corp.; Lehman Bro¬
thers; W. C. Langley & Co.; Estabrook & Co. and Kid¬

istration"

Feb. 4 company

stbck

common

Securities Corp.; Lehman Brothers, Bear, Stearns & Co.
and A. C. Allyn & Co., Inc. (jointly); Merrill.
Lynch,

a

on

$1,000,000

and Salomon Bros. & Hutzler

July 2 it was announced company plans to
sell to its stockholders 1,004,603 additional
capital stock

and

(which at July 15
$6,867,000) and for expansion program. Under¬
writers—For bonds and preferred stock may be deter¬
mined by competitive bidding.
Probable bidders: (1)

Peabody & Co., both of New York, and Dominion Secu¬
rities Corp. Ltd., Toronto, Canada.
Pacific Telephone

stock,

Proceeds—To retire bank loans

totaled

Underwriters—White, Weld & Co. and Kidder,

stocks.

preferred

1954.

Thursday, August 27, 1953

...

western

Development Co. Sinclair owns 384,860 shares
(52.85%) of the stock of each of the other two companies.
Underwriter—May be Union Securities Corp., New York.

o

Continued

from

5

page

formation

and

discussion, not for

legislation.
Neither

Last oi Commentaries

on an

ministrative

the

members

Council
proves

of

of

two

nent

elected

are

Security

with

elected

are

the

or

lack

Charter.

each

when

for

year

the

UN

two-year terms.

who

All 23 non-permanent members
mentioned were Charter members

arrival

the

U.

S.

went

into

Their

"United

three

Nations."

by the General
by secret ballot in

was

which the U.

last

October, Co¬
lombia, Lebanon and Denmark,
were elected by almost unanimous
votes:
and

58

out

of

60

for

Colombia

56

out

of

60

for

Denmark.
Mr. Robertson and others of

us

right not to like "military
despotisms," but we can't make
a

them over.
We wrote into
the
Charter the principle of
sovereign
equality which means that we
must not interfere with J
i:u.vano

.

nearly

uiai

w<=

affairs of other nations.

have

passed

Robertson's
vidual

very

new

is

its

well

the U.

deed,

I

is

almost

up

in

Pakistan

comer,"

as

is

comments

nations

because




of

on

of

Mr.

indi¬

the

taken

are

from

%

invariably,

that majority. In¬
cannot recall a vote of
we

not

were

in

majority.

a

nation,

"new¬

but another

The 60 members of the UN

typify
the

the

world

it

as

is

world in which all of

live.

Imperfect

today,

us

must

as

it

tion.

considerable

a

extent,

Security Council has been
supplanted by the General Assem¬
bly under the "Uniting for Peace"

Nations

is "a

Neither

the

Security Council nor the General
Assembly nor the whole UN is a
World
sense

Parliament
of

that

legislative
literal

speaking.

body.

is

the

which

The
a

sense,

It

in

term

usual
means

Assembly,

parliament

i.e.,

a

in

place for

sometimes

called

the "Town Meeting of the World."
But

"town

meetings"

are

for in¬

defending
freedom,
everywhere in the world, are one
in

their

common

need

common
cause

—

and

and

contacts

1935

to

1947;

can

ex¬

I

a

to

(I recommend
reading Of A. H. Feller's "United
and

show

World

this

and

Community"

other

develop¬

ments.)

One evidence of the place
to which the
Security Council has
been relegated (partly
by Russia's
abuse of the veto) is the fact that
it held no meetings in

June, 1953;
indeed the last previous
meeting
appears to

have occurred

on

Dec.

23, 1952.
(3)
cannot

less

especially

The

and

termination to

what

is

not

effective than de¬
use

yet

and to

"go

it

S., strong
alone."

as

Taft

it

is,

was

improve

perfect.

In

by

j

true

read

Mr.

enough

Robertson's

What he says

but it

is

not

the

the

fault

of

the

UN

but

results

logically
from
blunders
during and after the war.

made

the

above, Mr. Feller
"The binding force of: a con¬

says:

and

whole truth. That the world is irt
the state it happens to be in is not

It

book mentioned

to

seems

ertson took

a

me

that if Mr. Robr

good look at what is

done
by
the
specialized
stitution is the devotion ,of the being
pedplh to its. principles and their agencies of the UN he might be¬
come less
pessimistic.
i
,

by its

scriptions."

pre¬

|

Vou may recall that tl*e pre¬
amble to the Charter begins thus:

OP. KRETZMANN

President,

"We, -the Peoples of the United
Nations, determined to save succebdin g generations from the
scourge of war.
." It is that
determination to use the best we
.

have
that

today
is

criticism

and

more

of

its

.

make

needed

it

than

better

petty

EDITOR'S

NOTE—The >uthor
foregoing commentary, Mr.
Cyrus P. Barnum, was Director,

of the

International

193b;

Valparaiso

Relations

Project,
1931

to

Executive Assistant and As¬

sistant Secretary of Rotary'Inter¬

:

University*

Valparaiso, Indiana
I

-

have

always hoped,
as
so
other Americans have, that

many

the

United Nations would

one

thing that might lead

the way

ternal

to

peace.

be

the

us

on

Despite its in-*

weaknesses

weaknesses;

University of Minnesota,
U.

the

leaders

with interest.

essay

Criticism,

useful

have

sup¬

kind that is not constructive, does
not
offer a better substitute," is

its

President, Hunter College,
New York City

Re¬
..

with

GEORGE N. SHUSTER

their

none

safely seek security alone."
peatedly, the President has
pressed his determination to

determination to abide

To

the

resolution of 1950.

Parliament."

in

President

nations

(4)

Comments

Again, Mr. Robertson gets onto
the world government bogey, ask¬

'

World

Commerce

June,

port the UN.

General

(2)

another

of

last

is

country.

any

old timer in civilization..

the

most

that

in

importance when
the

note

ranging

And

S.

to

decisions

majorities
9/10.

to

it

all

of

family of nations,"

must not interfere with domestic in particular, is
I

"a

Chamber

Chicago,

Rotary
Consultant
at
UN.,
Conference in San Francisco, 1945.
By visits to UN headquarters,

with this international agency.

(1)
be

may

the

Junior

national,
and

all

here

ing if the Security Council

Lebanon;

have

support

be equalled by very few Christian
statesmen

S. participated. The

elected

in

the

we

And

admittedly
than that of the U. S. and her is (a human
institution, less than
leading representative in the UN, eight years old—born 10-24-45) it
who is also her Minister to the is the best
presently available in¬
U. S., is Charles Malik, who can strument to meet the
world situa¬

election

Assembly

with

its

that

correspondence, he keeps in touch

and

but her civilization is much older

they were in it. More¬
over, they had all been associated
with the fighting allies who called
themselves

ruled

Lebanon

UN

the

knowing

t

pre¬

formed

was

as

saying

as

Eisenhower said: "This nation and

the Wafdists?

and

p.

the

in

ceding paragraph. But I'd like to
ask this question about Egypt: Is
Gen. Naguib worse or better than
King Farouk who was in power

year

every

mentioned

except

misquoted

should and he promptly admitted
can't.
In his speech
to the

we

Minneapolis

by
principle

non-perma¬

the

either carelessness

familiarity

Three

six

of

body,"

great ad¬

members ask it to administer cer¬
tain
operations on their behalf.

"InsideViewoftheUnitedNations"
that

is the UN "a

it

seems'

to

have the happy effect, at least, of

providing
of

the

some

are

"world town meeting
On

the

other

hand,

of Mr. Robertson's strictures

so

must

with

a

air J!'

evidently correct that
view

a

the

entire

one

situation

great deal of caution.

Number 5250 ...The Commercial and Financial Chronicle

Volume 178

DIVIDEND

Cleveland Analysis
To Hold Conference

HOMEStAKE

No.

'

OHIO

CLEVELAND,

The

—

has

889

par

of

Cleveland Society of Security An¬

pany,

MIAMI

889

declared Dividend

14. The first day is to

13 and

Oct.

be devoted to

September

record

of

1,

Luncheon

dinner

7,

August

by Irving

mailed

Disbursing

JOHN

W.

Trust Com¬

Agent.

HAMILTON,

Secretary.

York 6, N.

New

speakers

meeting

and

also

are

a

part

a

of the program.

share

cents per

declared,

payable

of business

close

the

at

tember
of the

JOHKS-M AMVILlt

75c

of

High-Low-Close of
To Go

share

per

ROGER

G.

tabulation

of

and

net

as

dividend

opening,

closing

prices,

a

1953

active

will

stocks

following

closing

the

HARVESTER

and

NOTICES

cents

1953

($1.25)

GOODWIN,'Treasurer.

Y., August 20,

Company have declared quarterly
154 of fifty cents (50^)

Copper Corporation,
September 28,

on

1953.

declared

of business

on

of

Directors has this date

dividend of
cents

thirty-one and

(3\%()

payable

October

1,

stockholders of record at

business

B. H. Win ham

Secretary

fifty (50^) cents
share has been declared, pay
able September 24,195 3, to stock'

per

business

UTILITIES

the close of

at

September 10. 1953.

COMPANY

JOHN (J. GREBNBURGH
Treasurer.
NOTICE

DIVIDEND

to

Secretary

®r

declared

Tennessee Gas

Directors today

of

Board

The

dividend of 52 cents

a

per

the

DIVIDEND

INCREASES

The Directors have declared art in¬

Preferred Dividend

196th

A

share)

1J^% ($1.50

quarterly dividend of

a

i

1953,

1,

stockholders

to

stockholders

of record at the close of business

NO. 24

September 1, 1953,

ber

Checks will be mailed.

1953.

10,

Harry L.

share has been declared

a

payable

October

stockholders

August 25. 1953

record

of

close of business
;

CITY INVESTING COMPANY
Board

20,

August

of ' this

company

the regular

declared

1953

dividend of

51/2%

Directors

of

share on the Common Slock,
payable October I, 1953 to

stockholders of record

P

a

rk

CONSTRUCTION CO. INQ
DIVIDEND NOTICE

system components

transfer

stock

clared

Company will not

15,

HERVEY

dividend

(35c)

quarterly

J. OSBORN

Exec. Vice Pres. &

Sec'y.

LIBERTY

Directors

of
an

of

company

1953

to

holders

ness

on

September

Board

The

20,

August

fifteen per
Stock
1953

of
to

record

of

1,

at

Directors

of

of

close

busi¬

this

company

August 25, 1953

on

stock dividend of
value Common
September 25,

Company

Common

Stock

of

business on

September
PRAHER,

1,

record

at

One Wall

The Board of Directors of

Liberty
Products Corporation declared a
regular
quarterly dividend
of
Twenty Cents (20(f) per share on
its common stock, payable Sep¬

Street, New York

1953.

Secretary.

August 20, 1953
The Board of Directors has this

day declared
dend
the

A

(25c)

dividend
per

clared

on

of

No.

per

par

at

75

on

STEPHEN

cents

G.

!

the

outstanding

Vice President & Treasurer

William G. Holman

Septem¬

KENT, Secretary

CHEMICALS^

m

The

on

the
A. R. BERGEN,

CELANESE

Secretary.

(15(f)
mon

Dividend

per

share

on

i

the Com¬

Stock of this Corpora¬

Notice

tion

was

declared payable

CORPORATION OF AMERICA
180 Madison

Avenue, New York 16, N.Y.

15,

shareholders

ARUNDEL)

of

1953,

to

record

August 31, 1953. Checks

^cowowTiwr^
(«)

Directors

of

the

TREASURER

Arundel

Corporation
has this
day
(August
25,
1953)
declared thirty
cents
per
share as a quarterly divi¬
dend, on the no par value stock of
the corporation, issued and outstand¬
ing, payable on and after October 1,
1953, to the stockholders of record on
the corporation's books at the close of
business September 15, 1953.
MARSHALL G. NORRIS,

Secretary.




Philadelphia, Pa.
August 21,1953

The

the close of busi¬

the

accordance

provisions of the Com¬

Corporation

regular quarterly dividend for

the

current

quarter

of

record

at

of $1.75 per share,
payable October 1, 1953, to holders
the

COMMON

I

Common Stock held, in

tions of full shares

at

September 4. 1953.

close of

business

September 4. 1953.

PHILLIES

Corporation for each 100 shares of
Electric Bond and Share Company

holders of record

The

7% SECOND PREFERRED STOCK

A. WEDEMEYER
of

TISHMAN, President

NORMAN

be

issued

STOCK

share payab e September.
25, 1953, to holders of record at the
close of business September 4, 1953.

Stock will

stockholders.

Secretary

The

Company's Agent will sell for the
of stockholders the num¬
ber of shares of United Gas Cor¬

account

poration

Common

would otherwise he

which

Stock

represented by

and the

proceeds will be remitted to
holders entitled theretq.

Edison

Company

DIVIDENDS

stock¬

original

preferred stock

DIVIDEND

NO.

cumulative

177

preferred stock

4.32% series
dividend

tjlo. 26

The Board of Directors has

authorized the payment

share

50 cents per

inal Preferred
27 cents per

i

Orig¬

share on Cumu¬
Stock, 4.32%

Series.
The above dividends

ate

pay¬

able

September. 30, 1953, to"
stockholders of record Septem¬
ber 5, 1953. Checks will be
mailed from the Company's
office in Los Angeles, Septem¬

1

ber 30, 1953.
p. C.

August 24, 1953.

on

Stock;

lative Preferred

Secretary and, Treasurer

August 25, 1953.

of the

following quarterly dividends:

B. M. Betsch,

R. 0. GILBERT

America's tMeirjarj

of United Gas

Common
to

scrip for fractional shares

25 cents per

Californid

approval of the Securities and

Exchange Commission, of 17 shares
of Common Stock of United Gas

regular quarterly dividend for
the current quarter of $1.12% per
share, payable October 1, 1953, to

THE Hoardthe Directors lias this day
of following dividends:
declared

will be mailed.

MARYIAMO

14,

a

pany's Final Comprehensive Plan
for compliance with the Holding
Company Act. The distribution
will be made on October 5, 1953,
to stockholders of record at
the
close of business on August 31,
1953. No scrip representing frac¬

ness

•JU.TIN0M

Board

capital distribution
the Common Stock, subject to

with

41/2% PREFERRED STOCK,SERIES A

September

The

Board of Directors has

authorized

A dividend of fifteen cents

September

Southern

To The

September 3, 1953.

.

business

N. Y.

Common Stockholders

TEXTILES

on

August 24, 1953.

of

IMPORTANT NOTICE

m

%

holders of record at the close

COMPANY
Two Rector St., New York 6,

on

September 30, 1953, to stockholders
of record of fhe close of business

September 25, 1953, to stock¬

ELECTRIC BOND AND SHARE

common

Corporation, payable

payable

both

corporation,

on

this

of

1953.

Paul E. Shroads

T reasurer

share has today been de¬

stock of this

28, 1953.

share

per

Stock

September 11, 1953.

ber 1, 1953.

twenty-five

on

a

(25c)

Preferred

25, 1953 to stockholders
of record at the close of business

on

$10, payable October

the close of business

regular

a

tember

divi¬

share

1, 1953, to stockholders of record

Corporation
DIVIDEND

quarterly

a

cents

capital stock of this Com¬

pany,

Commercial Solvents

of 25

a

August 19; 1953, de¬
quarterly dividend of
sevejjty-five cents per share on
the capital stock, which will be
payable September 14, 1953, to
stockholders of record August
clared

five cents
the

The Board of Directors at

meeting

Farmingdale, New York

Irving Trust

par

EDWARD

the

of

of

of

payable

company,

holders

close

Consecutive
Dividend

CORPORATION

1953.

-1953 declared a
cent.ch the $5.00

the

the

95th

on

dividend of
ten cents a share on the outstanding Common
Stock of
the company, payable September 15,

the Com¬

on

and

quarterly dividend of twenty-

PRODUCTS

this

extra

quarterly

thirty-five cents

share

Stock

mon

Cumulative Preferred Stock of the

1953 -declared

20,-

of

per

de¬

Directors

regular

a

be closed.

1953.

Board

August

of

Board

The

September

company, payable October 1, 1953 to stockhold¬
of record at the close of business on Sep¬

The

TISHMAN REALTY &

Hydraulic and fluid

ers

tember

IV1NS,

j. E.

Buescher, Secretary

the

the

at

August 21, 1953.

on

Secretary.

to

Secretary

September 4,1953.

on

$1,375 per share on the outstanding

Series

on

The

1953.

15,

books of the

NEW YORK 4, N. Y,

BROAD STREET

25

The

on

1953,

1,

stock of record

HUME

JOHN

quarterly dividend of 35c

paid September 21, 1953.
F. E,

capital stock of this Company,

Hilyard, Treasurer

on common

a

per

CENTS

of FIFTY

A dividend

Septem¬

record at the close of business

share

157

DIVIDEND NO.

of

quarterly dividend of 25f

September 8, 1953. This dividend
will be

payable in cash on

Tobacco Company,

creased
per

COMPANY

has been declared upon the
Stock of The American

Preferred

October

International Salt

clared

payable

Company,

October 1,1953 to

Company
DIVIDEND

share on the Common Stock

of

Transmission

EGER, Secretary

cm

to

the close of

September 10, 1953.

on

The Board of Directors has de¬

NewYork3,n.y.

Corpora¬
1953,

August 26, 1953

The Parker Appliance Co.
111 Fifth Avenue

share

per

the Common Stock of the

pay¬

1953,

September 3, 1953.

ROBERT C. SULLIVAN,

a

July 15, 1953

September 15, 1953.
GERARD J.

Dividend Notice
The Board

CORPORATION

stockholders of record at the close

on

LOUISIANA

pay¬

Broadway, New York 6, N. Y.

a

dividend No.

share

the

tion,

today by

able

per

DIVIDEND

Twenty-five

Kennecott

International Harvest¬

The Directors of

for

closed

SHREVE PDRT,

A dividend of

Street, New York, N. Y.

share has been declared

the common stock payable
October 15, 1953, to stockholders of
record at the close of business on

I

N.

holders of record
and

COMPANY

er

bids

offers.

York,

HACKNEY, Treasurer

A cash distribution of One Dollar

be

on

New

be

J.

KENNECOTT COPPER

INTERNATIONAL

well

the stock ticker tape.
These statistics will appear daily,
printed

not
E.

61

high,

as

will

dividend.

HLSSLC COftPOftATIOM'

Stock

161 East 42d

change and volume, of the

most

15

the

this

GREENBURGH,

CORPORATION

Monday, Aug. 31,

books

of

Treasurer.

Ticker

on

JOHN

August 21,

on

transfer
ment

GAS

CORPORATION

per

one-quarter

payable September 11. 1953, to holders of
record September 1,

UNITED

143

DIVIDEND
of
Seventy-five
share on the Common Stock
of
this
Company
has been declared payable
at
the Treasurer's
Office, No. 165 Broadway,
New York 6, N. Y., on Monday, September 21,
1953, to stockholders of record at three o'clock
P.
M., on Monday, August 31, 1953. The stock

($.75)

Tennessee

the Common

on

NOTICES

COMPANY

NO.

QUARTERLY

DIVIDEND

Most Active Stocks
Starting

PACIFIC

on

Corporation

PtOOUCTi

DIVIDEND

Company will not close.

Johns-Manville

The Board of Directors declared a

low

Sep¬

The transfer books

1953.

9,

A

Cents

fifty (50c)

been

has

record

m

NOTICES

DIVIDEND

July 8, 1953

A dividend of

SOUTHERN

Y.

September 23, 1953, to stockholders of

1953.

corporation

top

management; the second, to field
trips.

be

Dividend

COMPANY

COPPER

Broadway,

industry forums and

with

conferences

will

Checks

61

($.40)

1953.

alysts has scheduled their initial
Great Lakes Regional Conference

forty cents

stockholders

to

DIVIDEND

35

.

per share of $12.50
payable September 11,

value Capital Swsck;

1953,

!

COMPANY

NO.

Directors

•'

—

MIXING

DIVIDEND

Board of

NOTICES

DIVIDEND

NOTICES
—

The

(751)

August 21. 1953

HALE,

Treasurer

Volume 178

Number 5250

The Commercial and Financial Chronicle

...

(752)

,35

good

BUSINESS BUZZ
.

/

-

to buy good health."

Mr.

S

•

i

on..

Loynd,

firm

.

from the Nation's

Capital

w\A/

JLM.B

search

IS

V/Mf

rl

M. U

production costs

and his
leaders conclave
the unhappy
•question of whether there shall
4>e a special session to boost the
•debt limit by $15 billion, they
ought in the opinion of experi¬
enced political observers to give
Eisenhower

Resident

Congressional

decide

to

pharmaceutical industry is
most interesting of all
industries, because—at any time—
of the

new
discovery
changes.

broad

-serious consideration to a

high, this catering to in¬
cannot go so far as to
reduce perceptibly the shackles
mains

itiative

COMMERCIAL.

other

the

On

the

hand,

doubtable Chairman

re¬

tist

(R, N. Y.) is determined to bring
a tax revision bill with in¬

:nC0$&':

point,

these

mean

new

add

lower

of

Dan's

burdens.

tax

.

place, it is said, if
■other pieces of important legis¬
lation are disposed of at this
.session, it will take some of the
spotlight off the fact that a spe¬

and

pay

more

its

toward balancing the Federal budget and reducing taxes

critics will say.

first

i

be

of

Secretary

was

the

finally

idea,

he

or

asked

extension

Profits

of

but

:year,

tiscal 1955

every

deficit

huge

a

in

well.

as

.Senator

is

there

that
of

prospect

Byrd

(D.,

Va.), whose motive is trying to
-see
clearly where the govern¬
ment • is
going financially, is
likely to see that the facts are
torought out. Other Democrats,
perhaps from different motives,
will see to it that the picture is
laid out in its frigid bare out¬

lines,
In

-

whether

into

special session
to boost the debt limit gives the
Administration the same happy
choice
-of

a

young man would face,

a

deciding

between

marrying

the ugly, irritable young woman
with whom he became tempori

arily

infatuated

in

time

a

of

Inebriation, or joining the For¬
eign Legion.
Could Lighten
'/V

giving the President
.something else to talk about
in

a

the debt limit

bedtime

the special

radio

session,

boost

chat

after

broadening
«qf the agenda would help im¬
measurably, it is pointed out, in
lightening an impossibly packed
legislative agenda for the 1954
a

-session.
It

demand that it heave to

a

and continue the
tax

come

down

to

doesn't

have

to

appear

Add

Committee

chief,

into

to

several

tax

out

rates

force

expire

also

unless

hower

at

the

by

Eisen¬

Mr.

session

regular
of these

higher

-dawned upon Mr. Eisenhower's
.advisers what a box they have

-

countries

commission to study this sub¬

ject

also,

one

with

expiring

higher
a

rates

issues

is

Taft-Hartley Act revision. That
-evident

quite

from

revelation

of

Eisenhower's

the
the

circus

a

is

"premature"
terms

tentative

of

Mr.

propos¬

als for decapitating this Act in
the interests of organized labor.
Even

vision is

though overall tax re¬
going by force of fcir-

cumstance to be

as

state

delega¬
tions, to give the voters a chance
to

see

why they should be

nominated

by

their

parties

in

moribund

as

Social

Security

adjournment
of

in

ex¬

tremely painful.
Mr. Eisenhower and his

Treasury

Secretary

committed
revision

burdens
to

to

persons

insurance
The

early

August..

bill
and

individual

to

up

a

equalize

furnish

tax
tax

incentives

initiative.

In

light of the steadfastness

the

with

Which government spending re¬
i




into

millions

the

alleged

system for the

President

have
for

some

also

aged.

kindly

re¬

more

ideas later

level

By

is

a

tariffs against

unhappy

an

this also

U.S.

of

coincidence,

subject under the

a

jurisdiction

of
the
already
heavily loaded Ways and Means
Committee.

and

point of view of the
Means

Committee's

gram

session
these

were

still

studying of this subject.
•

This

these

issues

another

good many

hot

one.

A

istration

lacks

members, including

Dan Reed and his social security

subcommittee

the

entire

see

either

an

solvent,

that

they

"Old

Age

Insurance"
if

they

farm

be

Cites Growth Quality
Of Drug Company Stks.

in the St.

can

look
and

make

insurance scheme

it

or a

scheme

minimum

pen¬

sions for all the aged.

dent of

Will

the

a

tion

year?

brand

new

There

is

Or

will

it

an

have

no

idea

as

to

what

is

a

subject for the committees

agriculture, it is bound to be
subject of great debate, occu¬
pying days and probably weeks
on

a

the floors of both houses.

Finally,
of

there

is

the

subject

raising postal rates. This has

you

world's

the

are

first

t<*

don't have all of the-

we

research

brains

in

this;

country," he said, disclosing that
Parke-Davis has improved its fa¬
cilities, or is planning new plants
and
branches in
England, Bel¬
gium, Australia, Venezuela, Italy,,
the
Philippine Islands, Mexico*
Argentina,
Chile,
South Africa

con¬

to

invest¬
—

not

but

specula-

i

t

n."

0

H

pointed
that

ing

to

quick

e

out

some

vestors,

in¬

seek¬
make
profits

in drug stocks had suffered losses

during the current period of read¬
justment in the pharmaceutical
industry.
"Those

not

on

who
a

have

with

basis

are

temporary

fluctations and have every reason
to

expect to wind

Financial

BEVERLY
Richard

H.

HILLS,

with

A.

Calif.—

has

Harper

1

Chronicle)

W.

become

Morris

of

&

the

New

York

and

previously
Company.

Exchanges. Hewith First Cali¬
f

Francis I. du Pont Adds
(Special

The

to

Financial

PASADENA,

Chronicle)

Hawkins,
with
723

Jr.

is

Francis

East

Calif.

I.

Green

Gerard:

—

now

affiliated

Pont

du

&

Co.*

Street.

TRADING MARKETS
Riverside

National
Seneca

Cement

"B"

Company

Falls

Dennison Mfg.

Machine

"A" Com.

A. & G. J. Caldwell

Gorton Pew Fisheries

Polaroid
Geo.
A.

S.

Atlantic

E.

Co.
Keith

Pfd.

Pfd.

Campbell Com.

Coast

Fisheries

Com.

Washington Brick & Lime Com.

bought drug

long-term

concerned

The

to

be,

for long-term,

stocks

(Special

been,

ments

Harry J. Loynd

With A. W. Morris Co,

fornia

good

cut

will be done about this, yet ac¬
tion must be taken. While this

scientists

com¬

will

and

elec¬

scheme?

our

research

stocks

pany

pro¬

a

tell

in

one," the speaker added..

"Our

was

Parke,

"Drug

ex¬

have

new

but

Los Angeles Stock

declared,

pany

decide

costly farm
unchanged? Will it

down farm subsidies in

major

undertaking virtually sufficient

Administration

com¬

Co., 9580 Santa Monica Boulevard,,

Davis & Com¬

be

supports,

to continue the

on

This alone would be

the

for

products

members

Aug. 21, Harry J. Loynd, Presi¬

on

tinue

with

price

American

Francis Hotel

busy

may

current

affiliated

Harry J. Loynd, President of
Parke, Davis & Company, tells
San Francisco Security Analysts
drug company stocks will con¬
tinue to be good investments.

com¬

too

for

panies, "not only in sales of

"The pharmaceutical
industry
flect the "behind the scene" inter¬ has grown
phenomenally in thepretation from the nation's Capital past 15
years," he concluded. "But
and may or may not coincide with we've
only started to grow," Mr^
the "Chronicle's" own views.)
Loynd added.

luncheon

of

increasing opportuni¬

re¬

Addressing the San Francisco
Society of Security Analysts at a

one

are

overseas

and India.

Issues

do

ma¬

(This column is intended to

terminating at the end of 1954.

scheme

pay-as-you-go

providing

what to

gram

time

Survivors

Rep.

(R., Kans.) think

about

over

for

chairman,

working

a

jority in Congress.

Moreover, the Administration
required to make up its mind

piring

promised

are

special session could not

about

1

is

magnitude

consideration when the Admin¬

on any subject, for none
of Mr. Eisenhower's study com¬
missions will be ready to report.

is

pro-

a

through.

operate

improving the system when

get

simply

However, it

Other

into

up

they can
of
such

special

to work off

would

year.
a

themselves

stop

a

major subjects, the

mittee

and

is

workload, the menu
impossible. Even if

on

his experts had done with their

flatly

are

deli¬

ing the members to vote for
the

thinking

problem

minded the MC's that he would

and

sending

foreign

election year, of ask¬

an

From the

Arises

10%

some

it's

circumstances

time-consuming and

with

This poses the question,

Ways

Carl T. Curtis

will be

made

can

cate in

for the November election.

However, Mr. Eisenhower laid
a social
security message before
the
Congress just before the

There

ties

still

nations.

re¬

primaries. And they want to get
out for keeps as soon as possible
to work on the voting customers

bowing

these

duties

reduce

imports.

whole

"the New Era of 1929, the formal

to

to

powers

still further general lowering of

more

year.

be

be

to

during an election year
session,
when
the
boys
are
sneaking home for weeks at a
from

em¬

year.

the Administration

their

doping

All

is

more,

next

will

for I

continued, it will be necessary
provide the President with

that

ihis

ex¬

change

Reciprocal Trade

ering

major

little

to

is

committee up

in knots

)

year.

If

This message proposed the cov¬

in by postpon¬
major issues until

the

with

tended

ments

sufficient to tie

ques-

election

may

plate

Reciprocal !

the

as

Trade Agreements Act was

themselves

of

again

the

revision plus dealing

an

Maybe the leaders can contem¬

so

One

So maybe

arises in
1954. The President got himself

got
next

Trade

rates, Congress politely ignored
request.

difficult

a

eign

ing

many

Reciprocal

in order that further or
supplementary
trade
agree¬

Overall

been

tion, and it is particularly

of U.S. trade relations with for¬

come

extended

Although

asked extension

mis¬

of

selective

31, and lower rates

Congress.

the

keep

higher

fields

among pharmaceuti¬
companies "is all to the good
of everybody concerned."

try to get some of this out
of the way in a special session.

a

just

t

However, the entire question I

;

52%,

47%.

However,
W&M

which
April 1 will drop

on

always

an

barrassing in

corporation in¬
of

rate

otherwise

the committee for

entire 6-month session.

Committee's

will be confronted immediately

with

our

activities extend

important

competition

great deal of the

Means

the

cal
to occupy

time

1954 Load

Besides

ether than

tax

no purpose,

However, that committee

excise

for

if to

all

of
medicine and pharmacy."
He declared the present intense

considering of

even

and

March

to

new^

drugs," Loynd said, "and

current research

Tax.

consume a

the question of
push through with

case

request

a

will

Ways

if Mr. Byrd doesn't.

even
any

the

Even

revision,

time.

F.

Harry

other

of

laboratory constructed by a
firm specifically for

new

g aMtfagiis-

the

Hits W & M Committee

deficit than the $5.6-billion un¬
devised estimate for the current

search

"Today a research staff num¬
bering 400 continues to search for

have

would

never

the

for

Excess

much larger

a

in

Mellon

cial observers, to wit, that there
will not only

days, when

sent to the West

were

places

to

investiga¬

commercial

Treasury, lyir. Eisenhower hasn't
cozened to the Mellon-Coolidge

into the open some¬
thing which is no secret to offi¬

dedicated

research activities.

special

firing out

been

earliest

its

of the United States when Andy

will

it

that

is

session

•

will

stock

drugs of natural origin. As early
as
1902, Parke-Davis erected the

President

was

drug

scientific

far-off

taxes.

Coolidge

to

Indies, South America and

rates

the

of

curse

Calvin

lower

has

expeditions

profits,

and

at

even

will

which

tion since

in¬

forward,

developments
products

fundamental

causes

says,

production

crease

demonstrating that

the Administration can't see

he

move

hence

ivay

Another

to

and

called for

was

of

.soon, as

taxes,

the

session

purpose

lower

business

as

Loynd pointed out that his

company

for

notwithstanding,

increased

cancer,

business stand¬

a

appreciably

Mr.

after War I
revenues
steadily

taxes

Federal

to

polimyelitis,

values."

pitch will be that Andy Mellon
steadily cut

great

cause

answers

they will. From

out

expansion of the agenda of the

cial

the

disease and

centives to initiative in the form

.session.
In the first

find

heart

T.V. JINGLES

Reed

Dan

can

"Think, for example, what will
happen when our research scien¬

A.I.

*

taxation.

of

over

items.

new

a

eiext

of

"The

one

WASHINGTON, D. C.—When

line

full

a

products, said "wellcompanies spread re¬

and

many

86-year-old

whose

manufactures

medicinal

managed"

A

Behind-the-Scene Interpretations

will always find

people

—

money

up

with satis¬

factory returns," he added.
"Other kinds of businesses may
fall off, but—good times or not so

LERNER & CO.
Investment Securities

10 Post Office Square,

Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

BS 69