Full text of Commercial and Financial Chronicle : August 5, 1954, Vol. 180, No. 5348

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ESTABLISHED IS39

RUS
business

Commercial

6-!954
ammisthtim

Reg. U. S. Pat. Office

Volume

New York

Number 5348

180

A New Period of Economic

t

We See It

As

Administrative Assistant to the President
For Economic Affairs

sent and is

shore

doubtless the

has been

economies of these alien lands,
cry would quickly and quite war-

rantably be raised that we were being duped into
financing novel experiments in socialism or some¬
very
But this

do

now

thank you very much

There

are

of 22 different stock groups.

with your
but when you go into the stock
market, your sole object is to decide in advance which
side is going to win and then you join that side. If at
some time you think the other side
is going to win, you change just as
quickly as possible. The old school
tie philosophy doesn't apply in the
market-place. We are all likely to
be good Monday morning quarter¬
backs, but to call the plays correctly
while the game is being played is a
In school when you

economic

of

in

area

lot

there

of

the

the

At

Dr.

was

Gabriel Hauge

They may have a slightly different kind of coat¬
ing, but there need be no mistaking what is the
tablet. Government expenditures must be greatly
Continued on page 21

ures

moving into a rather rough phase

Continued

14,

the

Governors'

on

page

We

try

and

Municipal

*

Established

★

CALL

ONE

ON

Complete Brokerage Service
U. S. Government

HAnover 2-3700

*

All Corporate

New

^

New

*

,

THE NATIONAL CITY BANK

Stock Exchs.

System

m

RE 2-2820

Broadway, N. Y. 6

Bell

*

Teletype NY 1-2152

Bona Dept. Teletype:

122 Years of Service
'

STREET

NEW YORK 5, N.

Y.

'

'

to

v

•

1

Our Customers

•

To

Active

Dealers,

Canadian

Raw

—

Refined

—

T.L.Watson &Co.
Liquid

Members N. Y. Stock

Exports—lm ports—Fut ures
50




BROADWAY, N. Y.

BRIDGEPORT

PERTH AMBOY

Markets

Banks

Orders

•

NY 1-708

Deportment;

Bldg.

THE CHASE

YORK^,4, N. Y.
Detroit .• Pittsburgh
• Coral Gables

Hollywood, Fla. • Beverly Hills,
Geneva, Switzerland

Cal.

NATIONAL BANK
OF NEW YORK

OF THE CITY

Amsterdam, Holland

Maintained
and

Brokers

BONDS & STOCKS

COMMON
Analysis upon request

DEPARTMENT

MONTREAL AND TORONTO

GOODBODY &
MEMBERS NEW YORK

115 BROADWAY
YORK

Chattanooga
Gas Company

Executed On All

Teletype NY 1-2270
DIRECT WIRES TO

NEW

CANADIAN

Exchanges At Regular Rates

CANADIAN

Exchange

American Stock Exchange

DIgby 4-2727,

N. Y. Cotton Exchange
NEW

Bond

Exchanges

Miami Beach

CANADIAN
SECURITIES
Commission

SUGAR

Inc.
Trade
Exchange

of

★★★★★★★

Net

WALL

Board

Orleans Cotton

Chicago

OF NEW YORK

Sixty Years of Brokerage Service
Members N. Y. and Amer.

115

99

Exchange

Exchange,

^

MABON & CO.

Bonds

Exchange

and other

Preferred and Common Stocks

DEPARTMENT

Municipal

Exchange

Stock

Cotton

York

Chicago

& Foreign Bonds

*

LAMBORN & CO., Inc.

1856

Stock

Commodity

BANK & TRUST

COMPANY

York

American

^

^

BOND

22

State and

Members

Municipal,

State and Revenue Bonds

^

Chemical

—

page

■""wot '
.X.

H. Hentz & Co.
New

^

on

Underwriters, dealers and investors in cor¬

—

MARKETS

ALL
*

Securities
telephone:

★

★

*

Sentiment has no place
optimists as often as

Oregon, July 26, 1954.

1954.

SECURITIES NOW IN REGISTRATION

★

be

♦A'Talk by Mr. Ward before J. Henry Helser & Co., Portland,

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

Government,

to

Continued

12

before the 46th Annual Meeting
Bolton Landing, New York, July

Conference,

market.

the

in

were

♦Informal remarks of Dr. Hauge
of

Kenneth Ward

on

—people with money to invest.

postwar readjustment. The unemployment fig¬
mounting, industrial production figures were

this

of

definite opinion

•

document

that

time

written—you will remember, at the

familiar enough.

decision.

First, there is a constantly chang¬
ing psychology in the stock market.
You men are supposed to be hardheaded. You are supposed to render
a

both counts.

and file of the

be

what is going
to happen to the market and individual stocks such as
U.
S. Steel, General Motors, American Can, General
Electric, du Pont and many other stocks which are less
well-known. You are supposed to submit your opinions
to men who are often more hardheaded than you are

document, because
concern
shown on

real

was

in any winning

included
j

rather unfortunate miscon¬

a

I too, like to

winning side in the market
as
much as possible, but there .are
a number of factors which must be

preoccupied
with economic
stability and not sufficiently con¬
cerned with economic growth. I feel
struction

difficult.

more

the

on

much

that is

play football you stick

team, win, lose or draw,

for the opportunity to

things

few

are

end of 1953—we were

offered

profit

some

Maintains higher grade quality stocks are at
peaks, and could be sold on strength. Includes analyses

squeezing.

Frequently we lump together two
ideas—stability .and growth or de¬
velopment.
I have heard criticism
of the January Economic Report of
the
President because it was too

hardships of the 'Thirties.
The nostrums

industries, rising costs and

situation in

tory

this discussion

so.

liquid
inveu-

great privilege for me to come here to
on economic development, and

very

favorable earnings figures,

high production levels, flow of new orders and
savings. As offsetting elements, he cites cluttered

as

sibility in the
Washington.

alleged to be likely to happen
should the advice thus given be rejected—fore¬
casts which in their turn have been framed in
to remind the rank

inflation

of purchasing power,

tion

greater concern to us with respon¬

forecasts of what is

way as

a

off

want to

I

posals have been carefully and shrewdly framed
and offer largesse to several of the elements in this
country which have at times in the past been able
to command
large blocks of votes, and may
be able to do so again. And along with these
ad hominem inducements are presented ominous

a

is

It

kick

like it.
"program of progress" is being pro¬
posed for this country, and there is real danger
in it. The reason is not far to seek. Like so much
of the New Deal and the Fair Deal, these pro¬

thing

such

postwar

Members N. Y. Stock Exchange

bullish factors, as inflationary crea¬

Market analyst lists

rough ground of
has been accom¬

four basic conditions for confidence in
economic future: (1) the thrust of population growth;
(2) technological revolution; (3) the impulse of Ameri¬
cans for "more and better," and (4) the rising belief in
the regenerative forces of the economy. Upholds removal
of restrictions on private enterprise. Says government
has responsibility to help conduct "a sturdy floor over
the pit of personal disaster," but should not be expected
to smooth out every wrinkle in curve of business activity.

plished, lists

being sent in staggering amounts to

the

up

from

Transition

country. We are quite certain that

of several lands where American money

Hayden, Stone & Co.,

President's economic aide, contending

if the
ordinary American were to read of such plans
having been devised to promote the general wel¬
fare in any foreign country, he would find it
rather amusing. If it had been devised in any one
this

WARD*

By KENNETH

By GABRIEL HAUGE*

style and title of "The Conference on Economic
Progress," have come forward with a typically
New Deal-Fair Deal program for the salvation of

Copy

Today and Tomorrow

Growth Is About to Begin

Keyserling et al., operating under the

Leon

a

The Stock Market

EDITORIAL
Twr

40 Cents

Price

7, N. Y., Thursday, August 5, 1954

CO.

STOCK EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

Dohdoon Securities
6RS»oratio.T
40 Exchange Place,

New York b.N.Y,

IRA HAUPT &
111

Broadway, N. Y.

WOrth 4-6000

Teletype NY 1-702-3

; WHItehaU 4-8181

CO.

Members New York Stock Exchange
and other Principal Exchanges

Boston

?

6

Teletype NY 1-2708

Telephone:

Enterprise 1820

2

The Commercial and Financial Chronicle :

(494)

WE POSITION

The Security I

and

"

TRADE IN

A continuous forum in which, each
Aztec Gas & Oil

in the investment and

Colorado Interstate Gas

reasons

they to be regarded,

are

Kerr-McGee Oil

THOMAS

Northern Illinois Gas

Research

Members of New York Stock

Southern Production

offer

Dept., Harris, Upham & Co.,
New York City

Development, Warrants

Republic Natural Gas

as an

DOHERTY

P.

Exchange

Taylor Oil & Gas

Worthington Corporation must
still be regarded as speculative,
its quality has improved in re¬

Western Natural Gas

cent

New York Hanseatic

Associate

American

120

its

Broadway, New York

5

WOrth 4-2300

Teletype NY 1-583 and NY 1-40
BOSTON

OFFICE:

Direct

State

84

Private

Wires

Street

the

Boston, Chicago, Cleveland, Hartford,

Houston, Philadelphia, Providence

Specialists in

Thomas

en¬

P.

Doherty

sales in

past have

the

and

been

affected by cyclical changes

the

economy and this pattern
undoubtedly be followed in
the future, although such influ¬
ences should not be as pronounced

in

will

Since 1917

jMcTYONNELL & CO.
Members
•

New

York

American

Stock

Stock

Exchange
Exchange

120 BROADWAY, NEW YORK 5
TEI. REctor 2-7815

,

..

Trading Markets

American Furniture Company
Alabama-Tennessee Natural
Gas

Company

by the fact that a sub¬
stantial percentage, of the com¬
pany's products are sold to rec¬
ognized
growth industries
and
Worthington's expansion in air
conditioning is likely to be rapid.
Demand
for
replacements
and
parts of its regular line also con¬
tinues in an upward trend, pres¬
ently running at an annual rate of
approximately $24,000,000.
ported

Source of Demand:
of

volume

is

About 65%

accounted

for

by

public works and public utilities,

Commonwealth Natural Gas

Dan River Mills

Scott, Horner &
Mason, Inc.
Lynchburg, Va.

Tele. LY 62

LD 33

anticipated

I

Southern Advance Bag & Paper

pipelines, waterworks,
sewerage' disposal, highways and
municipal and state projects gen¬
erally, plus the
auto
indus¬

Kalamazoo Vegetable
Parchment

against $2.71

as

And

ago.

that

net

will

company

from

the

profits

ington
against

In

of

earnings

this

Based

dend of 50

air

and

Navy and marine sources, irriga¬
tion and the Atomic Energy Com¬

extra divi¬

or

Foreign

sales

item,

run¬

are

demand from the latter is
to decline, unless the

expected

foreign situation

worsens

embarks

shipbuilding

program.

acquired

was

in

automation

this

holders

a

sales

of

vote

below)

and

concern

are

near

and

share¬

heating

less

1953,

an

new

An interest

year

home

the

in
on

the

or
a

electronics

conditioning
of
slightly
for

on

and
with

than

$11
scheduled

future

offer for its

(see
prop¬

erties made by Worthington.

of

months

some

new

without benefit

25 Broad St., New York 4, N. Y.
Phones HA 2-9766

Tele. NY 1-3222




Co.,

&

The

orders.

Energy

Worthington

19

which cannot be

and

record

a

gradual in¬

potential demand for

rounded

line of air

con¬

ditioning equipment for the home,
office, commercial and industrial
use is considered huge.
It is the
management's opinion that within
10 years the air conditioning-re¬
frigeration product line, which
enjoy a high rating for quality
and
performance, may possibiy
become its largest single division.
is

engineering and
the

of

in

reprints one of

leading

domestic, manufac¬
heavy machinery and

of

equipment.
the

Worthing¬

important,# factor

an

chief

Although

domestic

pumps,' it is

it remains

manufacturer

Developments:

York Stock

Acquisitions:

part of this

public

at

HAnover 2-0700

Birmingham, Ala.
Mobile, Ala.

Co.,

of switchboards,
for buildings,

producer

a

electrical

plants, etc., was ac¬
quired. The company also manu¬
factures a new revolutionary con¬
the

device

trol

which

control

also

of

feed

boiler

may
to

in

have unusual appeal

investors with vision—

investors with

auto¬

machinery.

used

be

the

for

mechanisms

matic

securities

of

chiefly in the field of

are

servo

will

application

of

It

Call

condi¬

air

and for other purposes.
Stockholders of L. J. Mueller Fur¬

or

producer of heating
and
air
conditioning equipment
are
scheduled to vote on a plan
Co.,

nace

of

a

acquisition by Worthington as

soon

the

as,

this company's

Established
Home

Office

Brokers

111

&

Tokyo

first

really

generator

by

a

successful

power

was

In 1953, this
showed a net income of
$485,654 after charges.

Worthington
Stock

Corp.

listed

is

stock

Broadway,N.Y.6 GOrtlandt7-5680

Copeland Refrigeration

common

York

the New

on

Cross Company

is currently

Exchange and

priced at 45 %.

Giant Portland Cement
WALTER

.

GUTMAN

K.

Keystone Portland

Members, ivew York block Exchange
and American Stock Echange
New Idria
Years

the

ago

Idria

the New

worth writing a
material ex-

mine

about.

Temco Aircraft

author

famous

found

Harte

book

Cement

Mining & Chemical Co.

Bought

Story

murders

carried

Burnham and Company

out in

sinfulness

Members New York Stock Exchange

ing

Electric

and

connection

marines

the

with

and

Westinghouse

General

Electric

atomic

in

sub¬

under

development
contracts are assisting in the en¬
gineering studies and designing
of machinery for nuclear-powered
aircraft.

mediate

do

not

etc.,

future

with

the

for

look

any

atomic power
over

the

its

but

im¬

associa¬

foregoing

which

writing
high

price

Idria

New

Idria

owned

Mining
listed

and

on

which

mine

is

by the New Idria
Chemical Company,

midway between

San Francisco and L. A.

For

it has been the largest

100

have

come

the

Production has not
steady, however, and orofits

headed

for civilian pur¬
for spectacular

growth, however.
Research:

continues

to

Technical research
occupy

a

foremost

place in its engineering activities
and greater funds than hereto¬
fore appropriated have been made
available

for

such

purposes.

In

addition, collaboration with outSide scientists and recognized re¬
search
laboratories
supplements
its

own

well

rounded

facilities.

•s

ducer in the U. S.
mercury

and

are

pro¬

£100

ASSOCIATES
15

Exchange PL, Jersey City 2, N. J.

HEnderson 5-6005

•

Direct N. Y. Phones:

Teletype J

C'f 698

WOrth 2-4578-9

mil¬

believed

to

from its tunnels during

have been definitely sporadic. The
price of mercury has always been
mercurial

haven't

others,

and

been

they

at

times

have

there

profits.

any

been

on

At

1949
as

low

the
as

N. Q. B.
OVER-THE-COUNTER

/

INDUSTRIAL STOCK INDEX

the

fabulous side.

was

WELLINGTON HUNTER

century.

been

In

Inquiries Invited

the American Exchange,

is located about

is

is

URANIUM STOCKS

be entering one of its
most
glamorous periods, finan¬
cially speaking.
may

The

* < ■

LOW-PRICED

mining mercury
is
now
profitable and certain to stay that
way for at least three years, New
cause

of

poses

Specialists in

of

Be¬

mercury.

lion

of atomic energy

Teletype

NY 1-2262

about

years

use

Telephone

Dlgby 4-1680

now

because of the
Walter K. Gutman

Street, New York 5

it worth

is re¬
garded as having favorable im¬
plications for the longer-term. It

generally believed that the

15 Broad

the

and

owns

now

Officials

tion

mine

.

Dept.

☆

In

company

Personnel have

with

cooperated

Unlisted Trading

1954 I find the

reactorproduced

PAYNE, Manager

the

up

mountain.

The

genera¬

☆

ROBERT W.

g3-

on

Sold

total

unusual
of

—

the

in

isted

i

with Oak

Worthington turbine

tor at that center.

Bankers

measurably to sales.

respect to hydraulic
reactor coolant circu¬
bearings.

Branches

7G

company

with

special

—

Investment

conditioning undertaking and add

they designed and built uranium
compressors. The

of

■

1897

operations will fit
Worthington's air

with

well

Yamaichi

Securities Co., Ltd.

measure

As set forth above,

becomes law.

in

tax

new

plant which in turn
supplied the energy to the diffu¬
sion plant at Oak Ridge.
Later

and

write

tioning

and the sultry

pumps

knowledge

Japanese potential.

the deep shafts

design

offices

japanese

controls

for

lators

branch

our

In the fore¬

assets of ivlullenbach Electrical Manufacturing

power

Ridge

NY 1-1557

New Orleans, La. -

year,

1941; and in 1942 supplied high

the

Exchange

Rector St., New York 6, N. Y.

Direct wires to

New

services in atomic energy as early

broadly di¬ Several new products were per¬
versified.
In addition to heavy fected last year while others are
equipment requiring large capital in the development stage and
now

underway

are
made

this time.

Corporation
engi¬
provided consulting

have

neers

Steiner, Rouse &€o.
Members New

projects

many

mercury

Atomic

installations,

to

York

New

Members American Stock Exchange

Bret

great benefit from

turers
York Stock Exchange

Walter K. Gutman,

—

City. (Page 2)

Goodbody & Co., New York City

000,000, which compares with 1953
sales of $144,415,087 and should
assure
a
high rate of operations

company's replacements and re¬
pair parts market is expected to

Nature of Business:

Members New

to

Approximates $55,-

company worked closely

ton

@M>jenheiitWi &<Sa>

dis¬

the indicated

on

defense work, 18% to 20%. With
the exception of one undisclosed

crease

Firm Markets

1953

cents is looked for

Backlog:

for

Bought—Sold—Quoted

Chemical

&

hexafluoride

its well

Successor Companies

for

been

has

continue

I. G. FARBEN

of

total disbursements to $2.50.

pressure

petroleum,
conditioning.

The remainder is absorbed by the

to

Philadelphia 3, Pa.

off

account

supplement the regular quarterly
payment of equal amount to bring

railroads

million

BOENNING & CO.

excess

Worth¬

$538,000

amortization

year-end

a

the

on

practice

continued.

profits,

modestly

addition,

charged

accelerated
but

Currently, the

benefit

demise

tax.

it

income

preceding period.

try, chemical, mining,

air

Keyes Fibre Co.

of

1,096,905

is ex¬
for the
12 months to Dec. 31, next, will
compare well with results for the
year

a

as

government

Grinnell Corp.

the

balance

a

for the

ning about 15% of the total and

Continuing Interest in

that

smaller number for the first

half

gas

mission.

A

each of

In

years,

which include electric power, nat¬
ural

Company

■

belief is sup¬

This

formerly.

as

is

It

pected

Earn¬

ings

Rights & Scrip

seven

than $3.00

a

Louisiana Securities

industrial

outstanding shares

cer¬

phases of

nuclear
ergy.

welding
positions,
and
other
ma¬

1954, will show

more

on

tain

meters

past

30,
m*v.

Com¬

Energy

mission in

drives,

report for the six months to June

Atomic

the

and air
tools, turbines,
electric motors,
generators, switch gear transmis¬

period.

companies and

Thomas P.

—

Mining

Goodbody

drills

rock

compressors,

earnings
have exceeded $5.00 and averaged
out to $5.43 for the stock in this

working
sociation

a s

proportion of output. The range
of products is wide and include
gas, diesel and dual fuel engines,
steam
condensers, air and gas

Earnings-Dividend:

and

Corp.

standardized products ac¬
for an increasingly large

tions,

the

field

Idria

Company

specifica¬

individual

on

j.

in

with leading

to

done

liquid

air condi¬

tioning

Alabama &

Doherty, Research Dept., Har¬
ris, Upham & Co., New York
,
City. (Page 2)
New

Thursday, August 5, 1954

Week's

Participants and

Worthington

amount of business

substantial

a

.

Their Selections

nor

chinery.

aggressive

expansion

Exchange

''

be,

to

investment, numerous smaller
items are also marketed.
While

sion

f''P%

accomplished,

1920

BArciay 7-5660

the

of

diversification

Member

Stock

by

years

reason

Corporation
Established

of

stock

common

particular security.

a

intended

not

are

count

Worthington Corporation
the

of experts

group

sell the securities discussed.)

to

is

Southern Union Gas
While

different

a

for favoring

(The articles contained in this forum

Gulf Interstate Gas

Pubco

week,

This
Forum

advisory field from all sections of the country

participate and give their

Colorado Oil & Gas

Like Best

.

14-Year Performance of
price

$71

a

of

mercury

35 Industrial Stocks

flask (a flask

contains 76 pounds of

quicksilver).
Currently the price has been $295
a
flask which gives an efficient
U. S. producer like New Idria a
good $156 per flask of operating

FOLDER

National Quotation Bureau
incorporated

46 Front Street

;

'^Continued

on page 14

ON REQUEST

NewYork4,N.Y.

.Volume 180

Number 5348

.

The Commercial and Financial Chronicle

..

(495)

The Gold Standard in

INDEX

B. S.

&

Historical Perspective
"

Professor of American

'

.

•—

Economic and Financial History,

A New Period of Economic
Growth Is About to

!—Gabriel Hauge

Dr. Kemmerer reviews historical trends in hard
money, espe-

s

have

taken

the

Gives

"primrose

histories of nations that

case

path"

of

managed

—Donald

currencies.

: t

>
t

■

forerunner of similar action

•

*

The

of

use

gold

silver

and

money dates back to the 7th

century

before

Christ

haps before that. Darius
(521-485 B.C.)
had

8th

or

and.

as

per¬

of Persia

struck that

$9

of

gold

of

1848

in

many

best

Donald

scientific

standard

Man's

that
L. Kemmerer

the

best

experience

mental

is

laboratory

gold

standard.

the

of

experi¬

the

much

to

social

be

the

us

said

in

their

favor.

The reason
nations keep
coming back to the gold standard
that people cannot trust their

to

maintain

mone¬

tary
stability
without
it.
The
temptation to do otherwise is too
strong.

■

The

gold

has

been

periods of

some

history than at others. Generally
it

is

welcome

most

after

flation.

Following

money

experiences

Revolutionary

in

War

paper

our

of

and

own

1780's

In mid-

wars.

Revolution
the

1871, there

were

it

realized

was

and

silver

were

longer satisfactory because of
cheapening of silver. Once
again there was a trend towards
the

gold

were

standard.
nine

some

In

1873

countries

gold

latter 1920's to return to the

"To

power

coin

regulate the value thereof,
." and that

and of foreign coin,

.

.

shall

make
anything
silver a legal tender
in payment of debts."2 Down to
or

etary security of the gold
ard. The number of nations

stand¬
gold

on

increased from six in 1921 to 27 in
1926

47 in

to

1931.

countries

many

afford

Unfortunately

could

'adequate

an

longer
of the

no

form

less

dependable

standard.

cards

This

resting

gold

house

a

was

on

exchange

foundation

a

the gold standards of a few
When

one

these toppled in 1931 and

of

major

two

or

of

tender
the

paper

money.

Greenback

1

of

no

legal

Again

after

inflation

of

the

War; the United States re¬
turned to gold and for a genera¬
tion
resisted
the
temptation to
on

an

inflation

in

terms

the

has

199, 223, 256.
clause

5

and

1

10

Sulphur

Article

Section

10,

I,

Section

clause

Bought—Sold—Quoted
11

Factor in Housing Boom

13

Gearhart & Otis, Inc.
13

74

tained by Easy Credit

John

15

Towards

Have

Come

Balanced Budget"

a

16

Reserve

Bank

of

New

York

Cites

Lengthening

such

1895,

the

as

and

of

ones

1929-33

1873-78, 1893,
in the United

States. Liquid funds are scarce in

alleged

shortages and of
currency plans with a high degree
of management.
currency

During
difficult

i

too,

war,

a

often

maintain

to

standard.

the

it

'

•

Says Mr. Rhee

.

•.

(Boxed)

.

.

'

•

29

GIVEN

MANUFACTURING*

Regular Features
As We

See It

HYCON*

(Editorial)

Cover

J. RAY McDERMOTT

Bank and Insurance Stocks

25

DAN RIVER MILLS

Business

36

PAN AMERICAN

Man's

Bookshelf

8

Dealer-Broker Investment Recommendations

few

Commodity shortages and in¬
money
supplies
create

creasing
trade

imbalances

8,

with

cause

Continued

1.

SULPHUR

8

Coming Events in Investment Field

ULTRASONIC
GIANT PORTLAND

Einzig: "Britain Fears No Disarmament Slump From Geneva
Agreement"

CEMENT

9

*Literature

6

Mutual

We

I

Funds

12

Observations—A. Wilfred May___

5

Reporter's Report

on

Governments

HA 2-0270

on

page

18

Public Utility Securities

29

I

Railroad Securities

Dan

Getchell

30

Magnolia Park, Inc.*
20

The

Market

14

The

Security I Like Best

.

.

.

and

You—By Wallace Streete—

Rohr Aircraft

2

The State of Trade and Industry

Tracerlab, Inc.

4

Washington and You

36

1

Drapers'

Gardens,

COMMERCIAL

and

lanrd' c/0 ®?™r_d.s by
Copyright 1954

FINANCIAL CHRONICLE

London,

E.

C.,

Vitro

Park

DANA

Place,

REctor

Reentered

COMPANY, Publishers

New

2-9570

York
to

7,

N.

HERBERT D. SEIBERT, Editor & Publisher
'
DANA

Thursday,
Every

Thursday
issue)

SEIBERT,

August

5,

Manchester, N. H.

•




Chicago

•

Nashville

•

Glens Falls

•

Schenectady

• *

Worcester

...

President

and

Other

Chicago

city news,

Offices:

3,

111.

135

etc.).
South

Pan-American
Dominion

(Telephone STate

Salle

request

WM V. FRANKEL & CO.

Rates

United

States,

U.

8.

$48.00 per year; ?n
in
Canada,
$51.00
per
year.

Union,

™

St.,

2-0613);

i

INCORPORATED

39 BROADWAY, NEW
WHitehall

N0te—On
rate

of

account of the

fluctuations

I

Direct

PLEDGER &

Wire

to

COMPANY, INC.,

in

exchange, remittances for for-

eign subscriptions and advertisements must

be made in New York funds.

YORK 6

3-3960

Teletype NY 1-4040 & 4041

Other Publication
Bank and Quotation Record — Monthly,
$33.00 per year. (Foreign postage extra.)
the

La

of

in

°ther Countries, $55.00 per year.

1954

(general news and adevery Monday
(com-

and

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

on

second-class matter Febru¬

Subscription

I

Boston

as

Subscriptions

„

Prospectus available

n
n
William B. Dana

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

Y.

9576

„

Corp. of America

Eng-

Company

Reg. U. S. Patent Office

vertising
..

Mine, Inc.

33

Securities Salesman's Corner

WILLIAM

TELETYPE N. Y. 1-5

Mills, Inc.

■

Prospective Security Offerings

ST., NEW YORK 4, N. Y.
•

River

15

Securities Now in Registration—

PREFERRED STOCKS

TELEPHONE HAnover 24300

Exchange PL, N. Y. ,*>

34

—

non-war¬

heavy gold

40

Teletype NY 1-1825 & NY l-182f

29

1_—

i

securities

&
-

Reporter

Request.

over-the-counter

250

Singer, Bean
MACKIE, Inc.

24

j.
News About Banks and Bankers_

Our

on

trading markets in mor \

27

I

Our

maintain

than

Indications of Current Business Activity

is

countries have succeeded in doing

Members New York Stock Exchange

•

NY 1-576

16

'

gold

Comparatively

Spencer Trask & Co.
Albany

Teletype

WHitehall 3-2900

of

Treasury Debt

25

BROAD

Dept.

Telephone
Federal

WILLIAM B.

25

Trading

Two-Thirds of the Way

*

specialized in

F. Reilly, Manager

Unlisted

Eisenhower Avers "We

The

have

Trinity Place, New York 6

Federal Reserve Bank of Minneapolis Sees Housing Boom Sus¬

Published Twice Weekly

For many years we

*

v

Economic Progress Urges Rise in Federal

on

been

ring nations and

Constitution,

uptown,

Locations:

other

occasionally, and er¬
roneously, blamed for depressions,

R.

Burns, "Money and Monetary
Policy in Early Times" (A. Knopf, New
York, 1927), pp. 86, 140-41, 145, 160,
2

Sulphur

8

From Washington Ahead of the News—Carlisle
Bargeron

.

On

so.

1 A.

"Store

on

■

Civil

embark

Mart

Rev. Cosmas Korb Suggests Relief for Japan's
Overpopulation

1933, the

whole house of cards fell.

was

the issuance

Sulphur

Mexican Gulf
Pan American

Break"?

a

of

a depression. There are
generally
interpreted many advocate of monetary pan¬
to mean that only gold and silver aceas, one of which is likely to be
might be legal tender. With very adopted. The gold standard gets in
minor exceptions Congress au¬ the
way
of
efforts
to
relieve

the Civil War this

thorized

Do You Think There Is Danger of

mon¬

It

the

State

Lone Star

the

have

gold

Sulphur

5

City Bank's "Monthly Letter" Contends Prosperity.

Is Key

there

on

other

"no

STANDARD SULPHUR

<$>

National

of

suspensions.

later

4-6551

*

Downtown, Out-of-Town"

Franco-

shall

but

_

*

Spending

provided, among many
things, that only Congress

It

money,

7

.

Merchandise

Conference

and

hand, the gold
standard is most likely to be un¬
popular in periods of depression.

tion.

at

the

of

bimetallism

countries.

the

of

in¬

an

people adopted the Constitu¬

our

Cale_.

gold standard and resorted to the

„

standard

popular at

more

Telephone: WHitehall

6

re¬

is

governments

WALL STREET, NEW YORK

99

gold

standard; in 1890, 22 coun¬
tries; in 1900, 29 countries; and in
sults. Customs, like the use of gold
1912, 41 countries. Following the
coins as money, that stand the test
painful
inflationary
experiences
of time, that people keep return¬
of World War I, there was another
ing to century after century, must rush in the
1920's, especially the
scientist. Historians tell

have

5

__

the
offer that the

can

is

G.

Top-IIeavy?

no

that

economists

end

currency

Somewhat

tries isthe

proof

the

to

Prussian War

coun¬

many

the

Napoleonic
century, from the

as

money

:

popular fol¬

Bimetallism
were

Obsolete Securities Dept.

May.

lowing the inflations growing out

to¬

Centuries of

„

standard

4

Norman Steelman Asks: "Do You Consider the Stock
Market
'*■

in Europe similar events
taking place between 1810

1931.

for

OBSOLETES!

•

...

Gulf

Panel

and

'

.

.

Deposits of Mutual Savings Banks at New High

this

the

of

'

,

*

prices

here,

stability

gold

day.*
use

wholesale

doubled

*

Investments—Roger W, Babson

becom¬

Over

Daric weighed
•130 grains,
about

when

than

were

gold

n

I,

"

have

Economic Bases of U. S.-Latin American Relations

standard.

time. The Pera

War

greater

especial¬
ly fine for the
i

then

was

what

just

we

-

Vacations and

by other>

country hastened to return to the

were

s

which

3

The United Nations: Ten Years After—A.
Wilfred

ing more plentiful. And a third
time, after the inflation of World
more

coins

1

—Edward

silver

of

OBSESSION
is

Kemmerer

?

-J

leading nations.
*

L.

Timber Stocks—Ira U.
Cobleigh____

.

highest stand- i •
ards of living. Concludes, United States
today can resume the \ \
gold standard quickly and easily, and fears that such resump- j'
tion will fail are
greatly exaggerated. Sees gold standard I i
as

___Cover

r_

___,

•

Stresses financial strength in restoring the full
gold standard,
and holds nations with stable money have the

restoration in U. S.

i;

MAGNIFICENT

Begin

The Gold Standard in Historical
Perspective

-

.

cially the gold standard.

f

AMD COMPANY

Cover

_

University of Illinois

<

page

The Stock Market Today and Tomorrow—Kenneth
Ward

By DONALD L. KEMMERER
I

Lichtosteiit

M

Articles and News

3

LOS ANGELES

1

The Commercial and Fimncial Chronicle

4

(496)

Exchanges and currently quoted
at 22 te.
Ahead, lie $8.8 million

Timber Stocks
V

of first mortgage
About

By IRA U. COBLEIGH

enthusiasm

for

ments, it can easily be noted that
most of the board room chatter
relates

with gross
million.

exploration
strikes

pecially

ura¬
these

nium

come

days. When it
wired

is

million

F.B.M.

been

like

a

a

as

"Away

go!"

we

companies
than

with

holdings

land
find, be they

the

near

outsized

an

eration

bigger
mat, will

bath

respond with wild and wacky

quite

a

They can turn out
day, which is

foregoing

is

not

designed

inveigh against speculation in
general, but to suggest that more

logical, and less sheep-like atti¬
tudes, should be taken in the quest
the

for

swift

market

buck.

shelter of mankind

integrated enterprise. As a mat¬
ter of fact, there has been a rather

hydro

ores,

electric

aluminum installations

ing

these

towns will

it

national market for timber prod¬

some

of

the

in

,

BiUCv* where

finest

stands

of

fir,

M

with

is

and

B.

and

operating

revenue.

was

tens of thousands of

miles on the Pacific slopes,
waiting for decades to serve the

square

and

derivatively,
k to
be
converted
into
earning
'power, and growing equities, for
man,

MacMillan and

of

<

del, Limited, which, for raw ma¬
terial, has reserves estimated at
about 10^
billion F.B.M.
(foot
•

board measure) in the soft wood
forests of British Columbia. This
company
1951

as

was

a

formed

on

of H.

merger

Oct.

R.

around

Net

year.

$127 million for
profit for 1953

$11,316,000 which worked out to
$2.14 a share on the equities.
Like

so

Canadian

many

1,

Mac¬

del
and

divides
"B"

its

equity into
shares.

/common

with 5,142,633 shares listed on the

Toronto, Montreal and Vancouver

Our

industries?

can

in¬

employ his funds to best advantage?

July Monthly Bulletin seeks to

these

the

mon,

and

has

very

a

$4,832,000, 5% deben¬
15, 1962., While
junior to the first mortgage, it has
enjoyed good interest coverage
(over tight times in 1953) and
totes a conversion privilege far
more
alluring, than the average
tures

of

run

can

optional

be

any

Since the

mon.

day at 7Ms
yields 5.35%

•

like

400

through
graphs.

ones

in

we've

the

lumbered

preceding

around

.

Carloadings
Retail

State of Trade

Trade

Commodity Price Index
Food

Price Index

Auto Production

and Industry

Business Failures

J)
A

moderate rise was noted in

the United States in the

total industrial production for

period ended

on

Wednesday of last week,

output continued to remain at about 9% under the high point

but

year

a

ago.

unemployment insurance

preceding week, but initial claims in the week ended July 17,
decreased 10% from the number of the previous week.
The

major areas with

a

substantial labor surplus were
I.; Kenosha, Wis., and Altoona,

very

Lawrence, Mass.; Providence, R.

Scranton, Johnstown, Wilke-Barre and Hazleton, Pa.
New claims for unemployment compensation dropped 13,900
to 297,000

in the week ended July 24, the United States Depart¬
reported. The decline was due chiefly to a taper¬

ment of Labor

ing off of vacation shutdowns in industry.
A

recent

announcement

by

of

Secretary

Commerce Weeks

discloses that Federal spending is being accelerated "to give busi¬
ness
on

a

"an

The speed-up, the secretary stated, is based
Administration decision." The government "is not trying

little nudge."

to spend money," he added, but is simply trying
purchase of things that were going to be bought

to think up ways
to

hasten

the

In the Commerce Department, Mr. Weeks declared, the
program

applies to shipbuilding, aid to

airports and highway construction.
. . .
>
Living costs will be generally steady the next few months,
though food prices may jump around a bit.; That's the view Of
the Bureau of Labor Statistics of the United States Department
of Labor, on

the basis of what consumers prices did in recent sum¬
performance between May 15 and June 15. In that

and their

mers

perriod, the government's cost-of-living index edged up 0.1% to
115.1% of the 1947-49 average. An 0.4% increase in food prices
was the chief cause of the rise.
!
"

com¬

logs shrunken, it is expected they will be able to obtain suffiqidnt
business to permit them to operate at least as high as they did in
Earnings should fare equally well.
'
While steel production in second quarter of this year was
2.2% less than first quarter, the industry's earnings actually rdse
the first half.

15.7%, "The Iron Age"'points out.
'
:
r:
"
Although production in the first half of 1954 was; 24% * lefcs
than in the first half of 1953, earnings declined only 15.7%,' this
trade weekly notes.
The steel industry profits picture is obtained from an "Iron
Age" compilation of earnings statements of 20 companies account¬
ing for more than four-fifths of the industry's steelmaking capacity.
Comparison with 1953. is especially significant because 1953
was the second most profitable year in the history of the industry,
being only 4% under the record year, 1950.
Contrary to common belief, elimination of the excess profits
tax had little to do with the industry's favorable financial results.
Earnings of most companies would not have been affected by the
tax had it still applied, it continues.
>
At the same time, it states, estimated Federal income taxes
of steel companies were drastically lower, This was due largely
.

.

to accelerated

amortization of recently expanded defense support¬

ing steelmaking facilities.

Once these facilities have been written

Continued

on

page

dividend

106

and

afoul of

a

whole lot

Active

give

Trading Markets

Maintained in all

more

hazardous speculations than B.C.
Forest
see

a

common, and you seldom
bouncier conversion privi¬

PHILADELPHIA
BANK STOCKS

tifie stock goes lip!).
is

not

to

be

construed

from

the foregoing kind words that the
timber business is devoid of risk.
On
the contrary, it's definitely

Send for

comparison of 11 largest Philadelphia Banks

cyclical, the prices of woods have
been a bit soggy the first half of
this year; and these companies do

*

depend

Ross, Knowles & Co. Ltd.
Members: The Toronto Stock

Exchange

and The Investment Dealers' Association
of Canada

Street

West, Toronto, Canada

very

heavily (60-75%)

lumber

export to the U.
England.
A slackening

on

S.

and

in

the

building boom in the U. S. could
be damaging. On the other
hand,
the diversification of these prop¬
erties
into
pulp, plywood, and

applied
the

wood

cyclical

waste

element

flattens

out

somewhat,

.

.

fascinating straddle be¬
tween the safety of the bond and
the volatility of the stock.
You
run

favor¬

The outlook for steel in the second half of this year is

able, states "The Iron Age," national metalworking magazine, this
Although steel companies enter the period with order back¬

week.

a

can

para¬

Electric Output

currently) it is not
immediately profitable, but if the
common hits the $10
marker, the
bond should advance 10 points for
each point on the common;
The
sell

re¬

timber—timber stocks

the

sells to¬

common

(the

bond

time until

and without obligation.
(




downstream

Here each $1,000

converted,

a copy

'

25 Adelaide

Feb.

maturity, into 100 shares of

It

request,

due

switches.

is if

•

com¬

of these debt issues
special appeal. This is

one

the issue of

answer

upon

to the tali

Steel Production

lege than the 5% debentures (that

tions for current investment.

I

.

and bonds lie ahead of this

.

markets, then perhaps your
speculative interest may. lead you

.

questions, and makes several sugges¬

We will be pleased to mail
you

*

year.

Capitalization

affords*;a quite,
considerable leverage for the 2,000,000 outstanding shares of com¬
mon.
$11.6 million of debentures
,

you

faring midway

Where

,

bonds

through 1954? What is the outlook for

vestor

"A"
The

non-voting, non-call¬
able, cumulative in respect to 500
per share a year dividends and
convertible at any time into the
"B," share for share.
There are
only 142,905 "A" shares outstand¬
ing. The "B" is thp voting stock,

TTOW is Canadian business

individual

com¬

class "A" is

Progress Report—Canada
J*

this
was

panies, the MacMillan and Bloe¬

Bloedel, Ltd.

The largest, timber company in
this area, and one of the largest in
the world, is MacMillan and Bloe¬

!

$127.5 million for 1953; and
operations suggest a total

current

perceptive and patient investors.

i

have varied
1949, when
$1,208,880 was earned, to $2,994,000 in 1950 (the top year).
1953
racked up $1,923,697 in net which
quite amply supported the $600,.000 cash, f3iyiiqle?i$i distribution for
profits

net

the lowest year,

from

safes tl^e

For 19(52

stretch

of

panies,

are

this figure-exceeded $150 million;

needs

camps,

side there has

On the financial

been some fluctuation in net

in

cent

Columbia

quickened procurement

stands,

laboratory at

new

a

They

have

fT

anyway.

properties of B. C. Forest
Products, in addition to timber

that

know

do

pine, hemlock, balsam and cedar
over

Products

Forest

1953, and still acts

The

products.

tion to today's topic—forest prod¬

companies

C.

B.

and
con¬

its sales agent.

as

Harmac, B. C. to study new uses
for wood wastes, and
to widen
the
range
of
profitable
wood

been mainly exported.

uct

with

until May 31,

a

but I

days,

constructing

ucts, which heretofore have, espe¬
cially in Canada's West Coast,
This is all by way Of introduc¬

MacMillan
management

a

include seven logging
four sawmills of modern
design, a plywood mill and a
M and B make a lot of Pres-to
shingle mill. Plans for a new pulp
Logs from mill waste.
mill are being studied by the man¬
Few
progressive1
companies
agement.
nowadays just keep on making
Since incorporation, in 1946, as
the same old products; they spend
a
merger of several small com¬
a
lot of money on research.
So

and

build¬

are

had

these

between

properties.

tract

by producing

lot of wood waste.
I don't know just how important
sawdust is for stuffing teddy bears
milling unit,

Canada, it
arise,
and old ones grow into big cities.
Expanding population will, by the
hundred
thousands, be seeking
new housing, creating a vast hew
new

two

Bloedel

the

Finally, there is, in every saw-

industrial

new

a

follows that

to

association

close

524,000 doors last year.

For

example, if oil drilling, pipelines
and
refining
enterprises,
vast
mining operations for iron and
other

contributed

also

It

1953.

like M & B it is an

and

Island;

would be complete if it did
not turn out shingles.
M and B
made
422
thousand
squares
in

to

less

the

on

pany

The

somewhat

and

(over 3 billion board feet)
mainland, and Vancouver

ings

pile of newspapers on the

Then, of course, no lumber com¬

uberance.

of the

themselves

payments in the week ended July 10 rose 8% from those of the

enterprise, but growing in
importance in the Canadian tim¬
ber industry, is British Columbia
Forest Products, Limited.
Like
M and B, it has big timber hold¬

hoof.

ex¬

smaller

A

Ltd.

Products

Forest

C.

B.

mature

600 tons of this per

no

British

rather outrun

forest

The number of continued claims for

a

sulphate pulp.

for

rather uninhibited future pros¬

of

target.

your

r

big and expanding op¬
in its basic ingredient—

but has

Jackie Gleason says
All the shares of

tures, then

is

as

B does not make paper,

M and

pas¬

hardly to be considered
overpriced, unless high cash yield

ings: is

this

into

powerfully

moved

a

and Bloedel "B" at 10 times earn'

-

fast

-

(90,000 square miles larger than
Texas) have a lot of glamour and

diverse lumber
equity, benefiting from
excellent management and attrac¬
tive future potentials, MacMillan

field, producing about 40% of all
Canadian plywoods.

the

in
moose

up

come

fabulous

in

mature,

a

pect.
If-you' think some
bellwethers
greater Dow-Jones

far

products. These two units we've
talked about, favorably situated

v;V

1953).

a

market

home

future

growth of Can¬

indicates

itself

ada

of heavy

For

building material, and M and B

has

woodpecker,
Cobleigh

has

Plywood

has

making

noises

year

a

Canada's lumber production.

pros¬

counter

and thus
of all of

for about 7^%

pector's geiger

U.

Thursday, August 5,1954

products

logging operations, and the
which can turn out 523

account

coon

hatted

in

sawmills

to

New York that
some

,

through to the finished products.
The timber stands have already
been mentioned.
Next in order

es¬

—

.

and the dramatic

depreciation and
depletion charges (7%% of sales

virtue

from the tree right

M and B go

mineral

and

;

been

ploughed back into property im¬
provement — all .from retained
earnings.
Further, there's con¬
siderable hidden earning power by

lumber organization,
sales, 1953, of over $127

tegrated

oil

to

cash; and since 1947 over
lion
(or $11 a share) has

Company, Ltd. and
Bloedel Stewart and Welch, Ltd.
The combination built a fully in¬

roaring

in
$60 mil¬

out less than 30% of net

to pay

Millan Export

current
Canadian invest¬

the

cents, affording a yield

roughly 3%%. But this should
not discourage an interested buyer
since the tradition here has been

log account of two interesting companies in British
Columbia very busy sawing wood, and expanding the produc¬
tion, sale and use of diverse forest products.
all

present

the

of

A short

With

bonds—sole debt.

dividends,

rate is 80

Enterprise Economist

Ira

...

,

STROUD & COMPANY
Incorporated
PHILADELPHIA 9
New York

• *

Pittsburgh

•

AJlentown

•

Lancaster

•

Atlantic Citj

26

Number 5348

Volume 180

..

.The Commercial and Financial Chronicle

.question

Mutual Savings

Banks'
Deposits at New High

The United Nations-

savings banks
of

in

According to J. Hamilton ChesPresident of the National
Association
of
Mutual
Savings

total

Savings

creased

first
the

record

1954

to

of

$25,-

of

high

On

the

30,

hit

also

high of 20,561,000.
12

the

"public

decade

a

I

general

months, total deposits showed

sub¬

of

the

gain of $1,180 million, or 7.7%,
was
only slightly below
the increase of $1,848 million, or

ject

"Problems

lion for the first half of 1954

3%

s u

the preceding 12
The gain of $1,042, mil¬

during

more

than the

million during

b-h

60

Re¬

expert
participants,
bankers, industrialists,
,

clergymen
non-profit

of

executives

and

period of 1953.

actual

The

deep rooted

and

non-Communist

of the

Charter

pres-

bold

effect

of

representatives

and

jjhat,

Relevant

similarly,

months

last

asTarsa\oA?eerpyecied1at55a

Amounts

year.

ings

ures

a

ago.

year

During the month of June alone,
less than the $234 mil¬

Nations.

United

made

,

,

President of Columbia

$13,742

to

48.4%

assets.

of

million,

The

get-togethers

University,
nnrennol

It

will

United

of

Continuing dollar-and-cents re¬

pnnfprpnpo

in

show

even with our
guarantees, foreign
compete with the
opportunities at home for the

sults

that,

government

atmnic dis_
ner

cannot

American dollar.

So, the swing away from col¬
lectivism toward autarchy applies
economic

in the

as

it does in the

political field.

toward

field

QUINCY, 111.—Clarence N. Ma-

autarchy in
cited

was

jerus has become associated with
Hess Investment Company, Illi-

—

greatest misgivings—by
here

with

this

nois

that

remembered

be

writer.

Mr.

Building.

Bank

State

was
for six . years
States Representative

Vice-President of the J. H. Miller

Mr.

Manufacturing Co.

the
to

Baxter, Williams Adds

the Economic and Social Council.
(

(Special to The Financial Chronicle)

.

cite^ b^M^Lubin
C110Q Dy lVlr. i-iUDlIT

the participants also
q

the

Lubin

ntf"

cnpli

march

discussion

until after our 1956 elections.

Moreover

more

through Point IV than through UN

Isador H' Lubin in an interview- Majerus was formerly Executive

Z

nnnncprl

:

Technical Assistance machinery.

fields

broached

economic

with

hCvT"T^Se

place rin

take

4-U«

a

The

the

present American

^^alfi°f

plump-

Pi i
are imaid, are lm

UN aid

j

Economic Autarchy

Theh°RussXfCorathe American"

view

formally

•

(Special to The Financial Chronicle)

view,

with

even

"»} T A %
^ Clarence Majerus Now !
TerwThSUeSnhcJTMEE
With Hess Inv. Co.

opposing

To accord

that

said

be

although

Gross

^dgw1y1 ££ th^ed
Uc®

they are better
the holding of
a
Review
Conference, and be¬
ing satisfied to keep what is there
of

in

off

General

by

1950 when he was

Eisenhower in

gain of $172 millicn in the
banks'mortgage portfolios brought

^e._frorP

point

must

ros,s'alt
n,
JI- f ' enlarged
;

difficult

more

•

1^5
UN-protagonists'

tne

international

of the "liberals" here, discussing the matter under Ernest

in

problem

the

Qther facets of the

wlth

""t "htt,"inadequate ifftaSE

American

the

is

initiated

sembly,

The

holdings

high-level lay
As-

host of this

The

discussion
—-

Mortgage lending continued to
provide the chief outlet for sav¬
ings bank investment during June.

foreign policy,
as
within L.e

well

as

ramifications

the

to

States

United

without

lion rise shown in June, 1953, the
increase was greater than for any
other June since 1947.

the Organi¬

over

present and future basic

and

status,
of

spilled

discussion

concern

zation's

total deposits gained $225 million.
While 4%

to

the

here,

over

above the corresponding fig¬

7%

very'

were

4% greater but withdrawals were

our

policy, and its New

™

gering against America is thereby

wh^ch have

deposited in regular accounts

it

Rook

here the language or Procedure! of the
The increased deposit gains dur¬ to assess the
potentialities for good Charter
forestalled for
reliance on noning the first half of 1954 as com¬ or bad in the proposal for a Cnar- peaceful solutions.
atomic warfare
in actual actionpared with the same period of ter review Conference- the conReview cuiueieute, uie tun
Accompanying this impossible and the warIare
I }? urgency of disarmament,,
ac o
ter
1953 reflect the fact that current sideration of which will automat- political sitiwtion is the Pubhcs
^
vers,,s the So_
interest-dividend payments were
ically come on the agenda of tne lack of esteem for the UN. Signifi. t>
f
ords. with the con_
six

to

many

rebutting the charge of war-mon-

foundations, were convened

30% greater than during the first

the

even

anti-UN, anti-cooper-

subsidization

now

hrnadpnpd ventrali<;m

an

we

chasm

do

item,

the

restore

UN'.

the

through

ative spirit.

«*• wns
if was

Fnifnftntirm
Foundation,

Ford

t'mt

^nd

all tactors naving to

assistance

revealing

haps justified under the threat of
singie - bomb
destruction.
And

seemingly inexorable pressure of
this political situation and not
at

significant symptom

cutting-off by the Con¬

of appropriation for techni¬

temporary emasculation is seen as

It is the

shukily bridged over.

creditor,

a

§*'swiL-Swedish sensl'Pressed with thefor our money
conclusion that
get

worlds

a

Repercussions

all-pervasive

ropean
nf%hp
of the

oacx
back

chasm

^-concealed

^ i1-?

the

cal

weapons' development on
our security, and in pushing general
neutralism, has been most
impressively brought out here. In
a meetine chaired bv Milton Katz.
meeting chaired by Milton Katz,
formerly one of our top-level Eu-

de-

rooiea
rooted

are

other

The

atomic

hostility between the Comma-

signing

professors, journalists

the corresponding

the

than

Although the final bill will prob¬

really existing at the time of tne

May

Charter

UN

of

including

gain of $1,0U9

Wilfred

A.

aded

e

view,"

was

evidenced in the

ably

per-

Organization's

iiusiiduuns
frustrations

the

nist

discuss ion

8.5%,

all

rather

basis.

gress

vvuiiu ^Igdinzduoiispres-

xiic

of

which

World

The

the

With

practically

Fund
envis-

aged the devotion of capital on an

was

Atomic

of military destruc¬
ana
and

Interna-

Monetary
technique

As|a

energies to

imporiani,
important,

Its

NATO, EDC, and some emergency
measure
to rescue something of

unlocking of the
and the applica¬

enormous

an
all

—

ent
m

Over the past

its

treating

ago.

a

months.

machinery.

this

has

and

piactical skin-saving technique of

liberations here.

at

Francisco

San

record

The

purposes

tion
uon

its

since

of

number
new

a

conflict become,

aggrandisement

own

nucleus,

of

tion

founding

June

atomic

status

reflations"—

430,000,000.
accounts

discussion.

and

reach

figure

months

six

Na¬

—its problems

nation

the

for her

difficult

more

through

Bank

equity

Ever

Soviet Communist imperial¬
ism.
(4) And permeating all the

Organi¬

zation's

528 mutual

in¬
$1,042,000,000 during the
of

viewed as butWorld
Organiza-

the

to

,

along' foir

nurtured

years

consideration
tional

by

tions

Society,

Fund

the

of

banks

recent

can

eie-

[regional]

ti esses

exploitation of this situa-

mising
tion

United

President, The Phila¬

deposits

savings

highlight¬

ing the drastic

change in the

ton,

delphia

these

Finance Corporation, which idea
Americans ourselves had over

we

tion."

investment

Banks and

with

out

worked

ments

HARRIMAN, NEW YORK—The upsurge into this vacuum of an
significance, to this observer at impassioned
Asian
nationalism
least, of this meeting of the Amer- everywhere around the Eurasian
ican Assembly
(3) The uncomprohere, largely lies periphery.

savings banks'

as

be

By A. WILFRED MAY

$25,430,000,000.

still gain

gages

press

Ten Years After

reach top fig¬
Mort¬

now

was
put *9 Mr. Eden
by this writer at his major
conference, eliciting the op-

tnere

timistic view that "the matter

Aggregate deposits in 528 mutual"
ure

<497)■ 5

fho

as

s^ntom-

CLEVELAND, Ohio—Robert B.

3S Sy IIipiOITl

or

Cash showed

a

seasonal

gain of $104 million and
corporate and municipal securities

and his family, high in the Ramapo
Mountains, and given by Ave ell
$31 million, while holdings of Harriman to Columbia University
U. S. governments fell $99 million.
under the aegis of whose School
Over the first half of 1954, sav¬
of Business discussions such
as

rose

ings banks placed $950 million in
mortgages,
corporate

and $338 million in
and municipal securi¬

ties, while maintaining cash un¬
changed and reducing U. S. gov¬
ernments by $167 million. During
the same
period of 1953, they
added

$730 million of mortgages,
$332 million of corporate and mu¬
nicipal securities and $35 million

these

months of 1954

was

record

9% above the

of

$875

million

I

And to

the

extent

that

of

final

a

and

decisive

the Midwest Stock Exchange.

He

turn-down by the United States was previously with Fulton, Rqid

wp«t

Qf the

jec(

of

InternationaL & Co

an

appre-;

public support for the Or-:
ganization
by
Americans ; does

The

Basic

Trouble

;V

i

:

We

are

exist, it is tied in closely—as it is.
are
the
dynamic
world forces realized here — with our secuwhich were not foreseen by the
rity role and self-protection—in

pleased to announce that

At the root of the UN's troubles

Charter

signers at San Francisco -

nine years ago.
are

cited in

a

German, Japa-

the destruction of
nese,

i

t

j

previous

Y

ciable

year.

Four such factors
participants' background paper prepared by Walter
of U. S. governments, while re¬
ducing cash by $52 million. The Millis, as follows: (1) The enor¬
mous power vacuum ensuing from
mortgage gain during the first six

set during the same period of 1951.

elation

&

the

throughout

held

are

1

ments by botti East and West
would provide a major disillusionment for the public,

of France,

the

and

haustion of Great Britain.

line with furthering bilateralism
and regional arrangements in contrast to collective UN action.

has become associated with

he*e

In

this

fact

\

.

us

,

:

i

-V'i

*

.

.

/

-

:

;

Over-the-counter Securities

concept of a true World Organiza£ again revealed
goes
back to the UN's genesis at San

Francisco.

'

Laurence Frazier & Co.

.

(2) The

i

(

A Basic Conflict

tjon

'
.

potential conflict between
regional
arrangements and the

ex-

'

•"

This

™

militarism, the

Italian

and

collapse

MR. FRANK SASSA

19 Rector

WHitehall 4-5151

Street, New York 6

precise

Harry Morris Joins
Walston in New York
Harry H.
with

Walston
New

&

Announcing

Sills, fairman & Harris

The Formation of

Stock Exchange and
leading exchanges, it is an¬

At the

nounced.

ston

&

of

bond

Co.

same

disclosed

Sept. 15,1954

INCORPORATED

York

other

a

Morris, Jr.,, formerly
&
Co., has joined
Co., members of the

Bache

Announces

time Wal¬

the

opening

membership

department in its New

on

the

York office at 35 Wall Street.

New York Stock Exchange
John

B.

Stetson

i

»

Pfd.

Public Service Coordinated

and

4s, 1990

a

change in

name to

Pocono Hotels Units

New York Stock Exchange

Pratt Read Co. Common

Samuel K. Phillips & Co.
Phila.-Balt.

Stock

MUIR INVESTMENT CORP.

Members

Walnut Apts. Common

Members

Company, inc.

faikman, Harris

Leeds & Lippincott Units

•

Midwest Stock Exchange

101
i

209 South La Salle Street, Chicago

t*

COrtlandt 7-6814

2,.

'-*r«

T*

*

*

ft
I

•

41

Teletype: SA 172

N. Y. Phone

PH 375

!

Texas.

Telephone: CApitol 7-1391

Pennsylvania Bldg,, Philadelphia
Teletype

I

San Antonio,

52 Wall Street, New York

Exchange

'

i

North St. Mary's St.

...

i

.i




i

*

i,

i

•!

,

r

,

,•*

«

:

J

■

i I

.

.

:

t

j.
'

■»:' f

1

i

t
.

Y

.

.1

.1

* (**■!

Chronicle

The Commercial and Financial
6

value, while the manufacturers of
ice boxes have gone into bank¬

Vacations and Investments
since World

Asserting vacations

big

War II have become a

i

eat

seekers should always
be
looking for new industries. Habits
control buying; and buying habits

eat

to

Auto Trips?

What About

since by

is not

cationing

boyhood. Va¬

II, how¬
ever,
it has
become a big

the

in

MUST.

boom¬

trades,

some

work,

on

for

Do something differ¬

Sundays!

same

mock

weeks.

Get

make

where

go
a

real

rest from

dishes.

want

you

to,

want

you

rest.

Give

and
wife

you

cooking.
in

worse!

is

Cooking
Use

The

bad

a

tors

dishwash¬

summer—and

to

stomachs.
our

vacation
money

resting

each

for fruits

a

good

spending

year,

rather than for

meats; and drinking lots of milk

Assistant

•

■

do

not

is

buck

of

approve

shorter

coming.

It

Most

is

to The

Hexter

Joins

don't

.a

price, while oil stocks
have been going up in price. We
or

Stocks

thermostat
ash

of

to

a

coal

shifter!

electric

(Special

LOS
ard

H.

for

It

was

in

may,

this

D.

their heydey

'30s, they

in the

were

He

was

capacity

atmosphere that the

case

of Senator Bingham

member of the Senate Finance Committee and in

a

he

considering

that the committee,

suggested

Association, who could tell them something about the tariff.
it

read

I

in

now

connection

the

with

McCarthy

case,

Bingham "brought a lobbyist into the executive sessions of the
Senate Finance Committee." Well, if you consider every business
man's

organization in the country and every

A very

the

of

and

energetic and capable young Hearst reporter was the

spring the young man's identity and make the state¬
Bingham had brought a lobbyist into the secret confines
considering the tariff. The coalition of "Pro¬

to

one

ment that

pre¬

working for it

man

lobbyist, then this young man was a lobbyist.

first

committee

gressives" and Southern Democrats politically went to town.

Co.

coalition, and anytime

Senate's maintaining its

Chronicle)

Here

scandalous proposition that shocked the sensibilities of the

a

Senators of this

Dempsey-Tegeler
to The Financial

the

tariff, employ a young secretary of the Connecticut Manufacturers

3924

Walston & Co.

in this

was

arose.

Vice-

Investors,

it

as

dignity,

as

you are

worried about the

has been urged by the propa-/

ANGELES,

Calif.—Rich¬

gandists in the McCarthy case, you should have a picture of how

Harper has

become

the Senate was shocked in those days.

con¬

with Dempsey-Tegeler &
Co., 210 West Seventn Street. He

nected

formerly

was

refrigerator

The Roosevelt New Deal quickly absorbed them
outside and oppos¬

They had the votes for mischief, they had the power
mischief and mischief they accomplished.

was

This explains

in

prefer

&

that

Be

a

viously with

"Progressives" of
nothing but devilish and intent upon

to have been

riding high.

Chronicle)

He

A similar coalition

re¬

Officer.

Financial

the Sons

extent that they came to be on the

an

As

Wilshire Boulevard.

why coal stocks have been going

,

Trust

as

ing him.

ANGELES, Calif.—Julian
Fleg has become connected

F.

foolish

people

seem

'30s

to such

LOS

inves¬

In

the

etc., but this

wages,

it.

down

shovel

and

Carlisle Barf eroa

coalition in the

the light of history these Mid-West

cerned.

Steven¬
to

a

finally brought Roosevelt to his knees and kept Truman checked,
and in both instances served the country well, but unintentionally
insofar as the so-called Middle Western "Progressives" are con¬

be

has

Roy

Officer

with- California

conservative

leader of

a

of the Wild Jackass and Southern Democrats.

With Calif. Investors

'

was

Senate between what was known

Cashier.

(Special

Selecting Investments

like physical work.

our

Doctors agree we should

digestive organs

Trust

President

corre¬

a

of the late Senator Borah, denied
powerful than the
•

Borah

Bank

Bank

the tariff for revision
instance; it was a move

Presidency.

E.

which will
how to profitably, use

older

change

summer!
real rest includes

to

from

son

course

hours, higher

plates

paper

you

When

cooking and washing

habit

subscribe

or

to call up

the Presidency, to be more

WORTH, Texas—The Fort
O.

Senator McCarthy, that

fake in the first

a

wrecking Hoover.

National

run

and rebellious reporter I went
violence that characterized
upon
Senator Bingham.
It was

the part

on

My fa¬

purchase to
right package.

of demagoguery

young

bert Hoover

Most

my

a

attack

the

Stevenson, Walton

Worth

elec¬
night

attend

of

I have the

fine analogy

a

during the long consideration of the HawleySmoot tariff bill in 1930. The forcing of Her¬

ther, who had a successful store
in Gloucester, Mass., taught me
always to count my change, and
always tear a little paper of the
sure

of Senator

case

is true.
As

Walton, Manager of the bond
not'1 department has been promoted to

are
or

these, extra leisure hours.

Buy things which do not

need

is

when

you

should

you

spondence
teach

If

mistakes.

careless

in the

was

through the mob

the

energy,

manual labor.

cently promoted

in

them

carpenter, mason,

school

want to do for two
up

using

by

swinging."
a

trician,

The best vacation is to be able
you

this

help hate to think
concentrate.
Hence,
they

FT.

worth-while ways—not for "ham¬

Vacations at Home

as

hours

requires

man

a

would ride herd upon

was

Promoted by

to "cash in" on these extra

us

now

do

when

counting their

not

does

as

that your

means

in

change!
Thinking

in

pay

leisure

vacation—some¬

your

are

de¬

very

riot and it is a commentary on the forces that

due to dis¬
due to the

not

are

They

wrapping

or

future years will be
in money plus hours of leisure.
Hence, it is of great importance
real

thing you don't have the time to
do ordinarily.

give

Yourself"

hurting

the above

All

it is tiring and not relaxing,
it is harmful.
It does the

ent when

A

change

merchants.

postman no good to "take a walk"

ing

in

is

It

of

giving back change from a cash
register.
A study of over 400
stores indicates all these mistakes

you

then

to,

-

visit one of
the many shows which the Orkin
people of 19 West 44th St., New
York City, are putting on to help

If your automobile
to relax, then an auto¬
mobile trip is beneficial. If, how¬

take

It

such

scribe

ing vacations.

to

-

are

the boom
industries,

for

reason

home-craft

have been the

ever,

in retail stores

sales clerks

a

Bingham.

"dishonesty"

the

about

and

but helping others. See your local
public
library for one of the
magazines which de¬

become

Automobiles

on

"Do

which

Vacations

helps

the

is

This

employers

factor

"censured"

■

Many merchants are complain¬
ing

interesting, though disadvantageous to

citizen, that in the McCarthy episode, the name of former
Senator Hiram Bingham of
Connecticut, has been mentioned.
Writers and commentators have said that the last time the Senate

"white-collar"

that every¬

means

will have more leisure time.

one

their
wageworkers.

Roger W. Babson

It has been
cent

Watch Your Change!

tomers

your

This

longer.

give

a

the Increase

on

business or job,
do
not forget
that "working
hours" will be shorter rather than

vacations

have

requires a different
as
to quantity and

Recreation

which almost

all

I forecast
people will

,.u\-7

honesty.

Whatever

be¬

of

cause

by ca¬

money

mental laziness of clerks and cus¬

pri¬

marily

year

diet, both
quality.

War

industry,

the

of

new industry.
Since
World

a

By CARLISLE BARGERON

to

'•••"'/•

of the Neivs

be

prices for "lazy stocks."

give much more attention to eat¬
ing less in the summer. In fact,
experts tell me that each season

Vacations have been on the in¬
crease ever

warm.

ahead

years

Ahead

in¬

—

the lazy streak in us
all. This is why we telephone in¬
stead of write.
I forecast higher
tering

reasons:

keep

to

in

that

my

which

a company

Make

labor.

saves

physical strength, and (2) to keep
warm.
In summer we do not need

constantly changing.

are

two

for

however small

—

that it is in

sure

winter we must
(1) to gain

Tn

water.

and

merchants, and

Manufacturers,

job

vestment

stocks."

prices for "lazy

■

juices—illustrates
When making an

fruit
warning:
ing

Washington

industry—includ¬

the frozen-food

industry," Mr. Babson points out recreation is on the increase,
and people are having more leisure. Advises making invest¬
ments in companies which "save labor" and forecasts higher

From

The tremedous growth of

ruptcy.

ROGER W. BABSON

By

in

Thursday, August 5, 1954

.

.

in

doubled

have

manufacturers

a

.

(498)

Co.

and

A.

W.

with

H.

Morris

&

Hentz
Co.

&

"Progressive" and Southern Democratic coalition had not

The
•

a

and therefore the power.
,

:

-

conservatives beat their

The poorly few Republican Hoover

,

brains

against the attack on Bingham.

out

I

can

see

now

George Norris of Nebraska, raving

of hypocrites,

greatest

But they had the votes

their collective head.

serious thought in

that

and

ranting, as they were about to vote on Bingham, that the thing

$2,655,000

that disturbed him

didn't yet

that Bingham

was

seem

to realize

that he had done anything wrong.

Central of

Georgia Equipment Trust, Series Z

2%%

cried when the Nebraska voters

Equipment Trust Certificates

To be

mature

apologize.

pointed to fill

to

be added)

provided in this historic debate when

an

unexpired term,

2.75%

1965

Let's have no more of this nonsense."

1.90

1961

2.85

1966

3.05

1957

2.20

1962

2.90

1958

2.45

1963

2.95

1959

2.60

1964

3.00

1967

He is

an

attention in the Senate.

3.05

1969

friendly voices.

3.05

1968

3.05

who had the respect of

is'too

It

should

he

elderly

He

man

was a

of these Certificates are subject to authorization by the Interstate Commerce Commission.
The Offering Circular may be obtained in any State in which this announcement is circulated
from only
such of the undersigned and other dealers as may lawfully offer these securities in such State.

have known

themselves

fools

of

their

& CO.

his fellow Senators.

that the United

attain

In World War

ate.

him




Because

States Senate is the last

or

It is there that men make

greatness—but

there

they

speak

I

and

August 4, 1954

any

too, and one

piece.

ment

HUTCHINSON

man,

bad that he listened to the siren call to fame.

I, the elder Bob LaFollette who was against our

entrance into that war, was

McMASTER

I say

who had not attracted

hard working

great deliberative body in the world.
Issuance and sale

HALSEY, STUART &. CO. Inc.

of Senator McCarthy or

unhesitatingly that Senator Flanders has been the victim of un¬

3.025%

1956

a

and said:

arose

opponent to see the danger of the move to censure him.

an

I960

>

with him, that

•

was

One does not have to be a supporter

I

1.50%

195.5

up

"The Senator from Connecticut has told you what he done and

why he done it.

(accrued interest

who in his old age

rough-hewed, uneducated Senator from Maine who had been ap¬

unconditionally guaranteed as to payment of principal and dividends by endorsement
by Central of Georgia Railway Company,
i
AND YIELDS

man

.-

The comic relief

$177,000 annually each August 1, 1955 to 1969, inclusive

MATURITIES

the

finally caught

they had let him down—it burned him up when Bingham wouldn't

(Philadelphia Plan)
To

Bingham didn't realize it then and he doesn't realize it yet.

,

It burned the sanctimonious Norris up,

of

first tried to be given the silent treat¬

by the country's press and then to be
The

man

who

bitterly

what he stood for, but
from

our

United

the

present

mob

disagreed

punished by the Sen¬

with

everything he

said

who defended and quite likely saved

thinking of

Ambassador

to

the

times, was

the grandfather

that great peace

Nations—Henry Cabot Lodge.

confab of the

.Volume 180

Number 5348

.v.

The Commercial and Financial Chronicle

(499)

T

-

yt.
..
.
.
•
coffee and cocoa, are very
.

agricultural

Economic Bases of U. S.—

in

output

and

has outranked it

The fact that these

Latin-American Relations

increases

base

each of these subjects.

not

does

ment

detract

emphasizes,
of

the

from, but
achieve¬

Latin American officials

Listing principal economic bases of United
financial relations,
State

(1)

as:

and

(3)

States relations

the

(2) our private
public financial relations,

our

Department official points

economic

to

be
of

of

progress

ties.

many

These

in¬

clude ties of
geography and of his¬
tory. We also

share

common

ideals.

Fur¬

thermore,

our

interests
such

vate

receive from their
and from

us

investment

taining capital equipment in this
country and of servicing dollar
investment and loans which they
to carry out their economic
development programs. Some of
this exchange is also used
by them

we

have

custom¬

to

arily

found

for such food and other

ourselves

goods

holding essen¬
tially the same
views

really

/

*

Edward

continue, not

do not often have dif¬

we

of

opinion,

but

because

it will continue to be in
tual

interest

resolve
of

to

our

differences in

our

mu¬

cooperate and to

understanding

and

spirit

a

financial

helped

countries

remarkable

the

to

Latin

achieve

rate

of

a

eco¬

progress in recent years.
Of major importance in these re¬
Cale

our

sister republics will
ferences

G.

and

nomic

cooperation
our¬

trade

have

American

surfe that close

because

consumer

,

relations

portant politi¬

selves and

daily requirements

they need to import from

as

Favorable

cal issues. I am

between

their

abroad.

im¬

on

meet

accommo¬

dation.

'

lations' has been the large demand
and
favorable prices for Latin
American

export

commodities.

Between 1939 and 1952 the

Cooperation between the United

prices

of their exports had risen so much

America

or

developed

at

means

for such
more,

I

an

and

that

For

ex¬

lead and zinc in Mexico and

raw

of

possible of fulfillment. It would
involve
very extensive controls
over the production and trade of
all of the

participating countries;

The

complexity of an undertaking
of this nature is suggested by the
problems that we have had in
this

country in maintaining our

agricultural price supports, result¬
ing as they have in recurring sur¬

pluses.
The

United States, however, is
conscious of 1 the problem
faced
by
the
Latin
American
very

countries

as

their

that

a

result

depends to

effect

major

upon

em¬

ployment, and upon economic ac¬
tivity generally.
They supply an
overwhelming part of the dollar

un¬

exchange

required

the

for

pur¬

chase of capital equipment in the
United States and for servicing

our

the dollar indebtedness and

investment.

neighbors to the south really
us
to do so.
They are a
proud, ' self-reliant and self-re¬
specting people and I am sure
that they believe that they are
largely capable of meeting their
current problems themselves.
In
addition, the Latin Americans not

to economic

The

They

are

equity
the means

development.

Latin

American

have therefore suggested that the
United
States
help maintain a

fixed

maintaining

contribution
can

bases which

on
are

•

These include:

Commission.
1.

tending to relieve
or remove impediments to United
States foreign trade and to en¬
in

the

other countries to movedirection, a matter

which

same

will

I

discuss

in

greater

detail later.
2.

,

Encouragement

cation

of

countries

the

of

diversifi¬

economies

of

of

ume

have

ments

such

the

especially interested,

not
an

able

been

to

agree

to

Even with
has occurred in

undertaking.

decline

that

of those

countries

to

1939 vol¬

and

ingenuity

that

our

This announcement is not
The

an offer to sell or a Solicitation of an offer to buy these securities.
offering is made only by the Offering Circular.

Latin

our

achieved

our

merely

equivalent
national

about

to

income

about 20%

of

and

come

l%

and

price

their

of

our

exports.

equivalent

us are

of their national in¬

represent about 50% of

involve

direct

ica

the

in

private

America

flowed

since

at

the

the

tions

which

progress

America,
from

to

2%%

of

approxi¬
invest¬

has

been,

expanding at
more rapid
rate

considerably
that

there

has

Latin

World

States pri¬

vate investment in Latin America

has been increasing at the average

$440 million

the

war

per

financial

relations

through

member¬

International

has

output

been

Bank

gone

repayments) from these two insti¬
America

has

approximately $93 mil¬

3V2%

into

increased

Economic develop¬

tion

in

has

Latin

of

the

been

America

Second

War

exceptionally intense,
approximately

the investment rate

HALSEY, STUART A CO. INC.

EQUITABLE SECURITIES CORPORATION

LADENBURG, THALMANN A CO.

R. W. PRESSPRICH A CO.

PAINE, WEBBER, JACKSON A CURTIS
L. F. ROTHSCHILD &

CO.

SHIELDS & COMPANY

SALOMON BROS. A HUTZLER

16% of total national income. This
ord

per

of

favorably with tbe

even

stock

of

worker has increased

average of from

$1,409 in 1952,

INCORPORATED

an

on

the

$1,177 in 1945 to
increase of more

NEW YORK HANSEATIC

outstanding fea¬

J. C. BRADFORD

The

exchange which the Latin Amer¬

creased from $6.8 billion in 1945 to

The

HIRSCH A CO.

AUCHINCLOSS, PARKER A REDPATH

capital

quarters has been supplied by the
Export-Import Bank.
The dollar

25%.

STROUD A COMPANY

AMERICAN SECURITIES CORPORATION

rec¬

highly industrialized
The

the

A CO.

CORPORATION

BACHE A CO.

WILLIAM BLAIR A COMPANY

FREEMAN A COMPANY

development has been
expansion in manufactures:
value

of

manufactures

This

is

70%

in

of

The value of manu¬
surpassed the value of

factures

than

HAUPT A CO.

THE ILLINOIS COMPANY

SHEARSON, HAMMILL A CO.

an

increase

better

IRA

WM.

E. POLLOCK A

July 30.1954.

I

CO., INC.

in¬

seven

years.

GREGORY A SON
INCORPORATED

ture of this

$11.4 billion in 1952.




V

the

since

World

than

by Mr. Cale at the Fifth
Indiana University Conference on Prob¬
lems of American Foreign
policy, Bloomington, Ind.

Offering Circular may be obtained in any state in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such state.,

increased

lion per year since World War II,
of
which
approximately three-

address

The

requires that capital be ac¬
cumulated and capital accumula¬

of loan funds

(disbursements less

Price 99^8% and accrued interest

ment

countries.

*An

by the

ver.y

around

not all of the

has

compares

averaged

a

Living standards have
raised aporeciably as a re¬

and directly through our own Ex¬
port-Import Bank.
The net flow

Latin

these Bonds are subject to authorization
Interstate Commerce Commission.

so

year.

close

year.

into

The issuance and sale of

a

sub¬
capita in¬
Output of goods and serv¬
ices has been substantially in ex¬
cess
of population growth.
The
per capita rate of increase of out¬
put of goods and services since

consumption.

tutions

been

into

Thus United

the

August 1, 1980

come.

million.

in

Due

Dated August 1, 1954

stantial increase in per

sult, but

ship

rate

of the world. But national in¬

United States, at the average an¬
nual rate cf apnroximatelv $190

public

a

Mortgage Twenty-six Year 3)4% Bonds, Series G

annum—

come

average

conducted

per

areas

been

Our

First

made

the average, at

on

2

rather than being returned to the

are

have

relations,

annual rate
of approximately $250 million. In
addition, private earnings of
United States companies in Latin
America
have
been
reinvested,

per

they

since the Second World War: Pop¬
ulation
is
increasing
in
Latin
of

Company

rapidly than in most other

Second

annual rate of about

Illinois Central Railroad

following are some indica¬
of
the
really remarkable

Such

billion.

have

ments

War

amount

The

more

States investments in Latin Amer¬

mately $6

facilitated

United

their total exports.
Our private financial

$25,000,000

efforts.

relations

Progress of Latin America

,

are

represent

-

total

our

Their exports to
to about 8%

America

during this peripd.
I
wish to note that favor¬

able

between imports and exports. Our

Latin

pur¬

policies likely to attract for¬
eign investors to participate in

sue

exports.

America today are our trade,
private financial relations, and
public financial relations.

to

the

dependent upon a
small number of products, and
encouragement of
the
govern¬
now

American neighbors have devoted
to the progress which
they have

exports

-

Measures

however, in action which we may the prices of many of their ex¬ the work of diversification.
be prepared to take to help tjhem: port commodities in the last year
3. Policies which
will temper
have been able to buy more than
(a) stabilize the prices of their or two, they are, in general, still
Continued on page 28
twice
Some, such as
the
exports, (b) afford them the freest favorably priced.
physical
volume
of
their

The principal economic bases of
United States relations with Latin

Our trade of nearly $7 billion
annually is divided almost equally

sta¬

A number
of ways by which we can do this
were
indicated by
the Randall

bility in world prices.

they export and the prices of the
products which they import.
We

activity than they now enjoy.

re¬
In calling attention to this fact
strong economic I do not wish in any
way to min¬
likely to be of an imize the industry, intelligence

enduring nature.

make

greater

States and the other American

publics rests

"We

there

that

constructive

a

toward

and' favorable

relationship
(from their viewpoint) between
the prices of the products which

only have the will to meet their
problems, they possess the re¬
sources
to do so and to support
a much higher level of economic

is

furthermore,

courage

countries

lim¬

great an extent on such a
ited number of commodities.
so

which the United States

and

the fact

of

prosperity

rect

good

are

basis, between the
materials and the
manufactured goods
undoubtedly be im¬

of
,

believe,

want

They

undertaking to

The state of the export trade in
thiese few commodities has a di¬

We do not have
disposal required
undertaking. Futher-

believe

heavily dependent on
three to four, raw

Peru.

our

do not

are

Uruguay, petroleum in Venezuela,

areas.

the

other

trade.

ample, tin is the bellwether in
Bolivia; nitrates and copper in
Chile; sugar in Cuba; coffee in
Brazil, Colombia, El Salvador and
meat
and
wool in
Guatemala;

their economic

the

international

one, or at best

development.- The United States
is, of course, not in a position to
underwrite
the
development of
Latin

in

rela¬

a

commodities

materials and foodstuffs.

copper,

assure

which

their

an

fixed relationship, on

a

worldwide

a

would

Most of the Latin American coun¬
tries

Furthermore,
maintain

rapidly than the prices of
imports that they would

more

goods in 1952 with the

"

and to

of

favor¬

ably priced.

prices
prices

large degree upon

a

under

few

sold

are

They are determined to
continue their recent rate of prog¬

prp-

of ob¬

means

tively

uation.

ress

loans

and

vide them with the

pri¬

our

need

are

that

countries

trade with

tin,

briefly

American countries

Latin

conditions

not

lead and zinc.
with a shrinking demand
and
declining prices our Latin
American neighbors are under¬
standably concerned over the sit¬
as

the

depends to

over

may

Faced

development projects.
ican

of

at

able to sustain this rapid rate
economic progress.
In some

such

Latin-American staples; by affording freest possible access to
our
market, and by financing foreign currency costs of their

gether by

are

the outlook for doing so is
not especially good, owing to a
decline in the demand for, and
falling prices of, a considerable
number of their export products,

countries since Second World War.
Says,
however, outlook at present is not especially good owing to
declining prices of exports, but indicates U. S. is interested
in aiding? solution of the difficulty by
stabilizing prices of

The United States and the
Latin
American (countries are bound to¬

possibility that they

discuss

to

Prices

ways

Latin-American

like

The economic situation in most

present seriously concerned

trade;

our

should

the other American Re¬

publics during this period.

Department of State

America

are

I

rather

Director, Office of Regional American Affairs,

Latin

since.

ever

measured from a very low initial

By EDWARD G. CALE*

with

possible access to our market for
such exports, and (c) finance the
foreign currency costs of their
economic
development projects.

Latin

America in 1947 for the first time

STERN BROTHERS A CO.

Commercial and Financial

The
8

Chronicle

t it W *

fl'lovViW

1

1

Art

Thursday, August 5,1954

...

(500)

Companies—Information—Oppenheimer
New York 4, N. Y.
Consolidated Copper — Bulletin
Joseph Faroll &

I. G. Farben Successor

Co., 25 Broad Street,

&

Inspiration

New York 6, N. Y.

Co., 29 Broadway,
R. II. Macy &

N. Y.

Street, New York 5,

N. Y.

New York 5,

issues

Shares—Selected

Common

with

debt

no

preferred

or

Street, New York 5,

ings"—Francis I. du Pont & Co., 1 Wall Street, New York 5,
In the same issue are a list of High Yield Preferreds

N. Y.
and

brief

a

analysis of Atlas Corp.

National Bank in Dallas, 1401

Control

Electrical
&

Equipment

are

brief

data

Cities

on

New York

Companies—Brief Data—Bache
Service

Pacific

Chesapeake

and

ton

Corporation of Va.
How

insurance
data

"Life"

Put

to

in

Company, American National

Insurance Co.,

Jefferson

Life

Standard

Company,

Insurance

Stocks.

City

Kansas

Life

tional

Co., National Life

Insurance

rities

York 4,

Co., Ltd., Ill Broadway, New York 7, N. Y.

honbashi-Tori,

Japan

Tokyo,

Chuo-ku,

and

61

Pa.

ton,

N. Y.
Bissell &

York 5, N. Y.

Hotel Claridge.

Memorandum

—

Freehling, Meyerhoff &

Stock

of

meeting.

York City)

Sept. 27-30, 1954 (New

Street, Chicago 3, 111.

Co., 120 South La Salle

Associa¬
Exchange Firms

Board of Governors of
tion

—

(Minneapolis

1954

Sept. 23-25,
Minn.)

N. Y.

Securi¬

National Association of

meeting at the

ties Administrators

Broadway,

Asso¬

Convention at tha

ciation Annual

Co.—Bulletin—Laird,

(Atlantic City)

National Security Traders

Digest"—Nomura Securities Co., Ltd., 1-1 Chome, Ni-

Stock

Hotel Roosevelt.

New York

&

Office

Forest, 111.

(Philadelphia, Pa.)
Bond Club of Philadelphia 29th
annual field day at the Hunting¬
ton Valley Country Club, AbingSept. 17, 1954

Inc.—Bulletin—$2—John H. Lewis &

Insurance

Worthington Corp.

Japanese Plastics Industry—Analysis in June issue of "Monthly

North

Lerner & Co., 10 Post

Bond

Country Club, Lake

Union—Bulletin—Dreyfus & Co., 50 Broadway, New

Western

Japan—Circular—Yamaichi Secu¬

Club of Chi¬
annual outing at Knollwood

Municipal

Sept. 22-26, 1954

Meeds, 120 Broadway. New

Angeles 14, Calif.—$1 per copy.
Investment Opportunities in

Life

Coast

West

Co.—Morgan & Co., 634 South Spring Street, Los

Insurance

—

Wall Street, New York 5,

63

Co.,

& Accident Insur¬

Life Insurance Co., Travelers

Company, Southwestern

ance

Analysis

Airlines,

World

Lincoln Na¬

Co., Life Insurance of Virginia,

Insurance

—

Square, Boston 9, Mass.
Trans

Life

Cement

Riverside

Connecticut General Life Insurance Company,

New York 5, N. Y. Also
Public Utility

111.)

Sept. 10, 1954 (Chicago,

cago

table of comparative figures on

are a

Common

Cobleigh—Contains specific

by Ira U.

companies

Aetna Life Insurance

on

Hotel.

Street,
bulletins on Stone &

Memorandum—G. A. Sax-

Co., Inc., 70 Pine Street,

&

Association summer
frolic at the Park Hill Country
Club,
preceded by a Calcutta
Dinner Aug.
12 at the Albany

and Virginian Railway.

Light Co.—Card

&

available

Portfolio—Analysis of life

Stock

Your

Power

Haven 10, Mass.

Denver-Invest¬

of

Club

ment Bankers

Hentz & Co., 60 Beaver

Also available are

4, N. Y.

TVebser, Baltimore & Ohio

Also in the same

Co., 36 Wall Street, New York 5, N. Y.

bulletin

Omnibus Corp.—Analysis—H.

Main Street, Dallas 2, Texas.

Co.—Memorandum—Barnes,

Goodwin, 257 Church Street, New

Bodell &

Highlights of the Southwest—Monthly letter—First

Economic

N. Y.

Public Service

Indiana

Northern

Club.

(Denver, Colo.)

13, 1954

Aug.

Bond

Fibers—Memorandum—Cohu & Co., 1 Wall

Glass

Modigliani

prior to the junior equity—In current issue of "Glean¬

stock

Wall Street,

N. Y.

York 5,

"career

Salle Street Women

La

party" at the Lake Shore

Pacific—Bulletin—Vilas & Hickey, 49

Missouri
New

120 Broadway,

(Chicago, HI.)

7, 1954

Aug.

Copper—Bulletin—Sutro Bros. & Co.,

Miami

15 Broad

Co.—Bulletin—Newburger, Loeb & Co.,

6, N. Y.

Carolina

Bonds—Analysis—McDaniel

Municipal

Do You Consider the Stock Market

Lewis

Do You Think There Is

Co., Jefferson Building, Greensboro, N. C.

Over-the-Counter Index—Folder

showing

Danger of

Top-Heavy?
a

(Hollywood.

Fla.)

Break?

up-to-date com¬

an

i

28-Dec. 3, 1954

Nov.

Association
Holly¬

Investment Bankers

Annual Convention at the

Philadelphia, cites factors that must be

parison between the listed industrial stocks used in the Dow-

Norman Steelman of

Jones Averages and

weighed in judging rise in Industrial Average since 1929.

the 35 over-the-counter industrial stock!

in the National Quotation Bureau

used

yield

market

and

performance

over

Averages, both
13-year

a

to

as

period

Quotation

Inc.,

Bureau,

46

Front

Street,

New

4, N.

Y.

banks—Stroud

Broad

&

course,

but is it?

Incorporated,

123

South

Street, Philadelphia 9, Pa.

what

a

dollar would

dollar is

buy in 1939.

&

ner

Adelaide Street,

Southern

California—Summary of business conditions—Secu¬

rity First National

Bank

♦

•

*

*

Inc.—Memorandum—L.

H.

tions

Rothchild

&

Co., 52

Hoist

Wood &

E.

Joins
of this

Texas

Inc.—Report—Loewi

Milwaukee 2, Wis.

Eastern

&

Co.,

225

Also available is

East
report

a

Transmission Corporation.

Cellulose

&

Doolittle & Co., Rialto
Ford Motor Company

S.

Company, Ltd.

—

way,

Building, Lockport, N. Y.

Ltd. of London—Analysis—Arnhold

61%

21%

24%

81

36%

12%

Electric

13

433/4

19%

63/4

—

Analysis

—

241/4

Place, New York 6,

'n.

&

136V2

40

Pont

Eisele

36 y4

10

19%

66

293/4

17%

551/4

243/4

7y4

30y4

69%

311/4

41/4

38i/4

*

&

Steel

S.

N.

Y.

King,

425

Co.,

&

With Glore, Forgan
'

CHICAGO,
gher

and

Jack

D.

associated

become

Chronicle)

111.—Robert Galla¬

Griffith have
with

Glore,

La Salle
Street, members of the New York

Forgan & Co., 135 South

and

Libaire, Stout & Co., 50 Broadway, New York 4, N. Y.

Ilycon—Circular—Singer, Bean

Reynolds

Montgomery Street.

563/4

General

of

staff

Inflation

Motors

♦Adjusted

to

subsequent split-ups.

"Apply the formula to
and

Corporation

Incr. Value

General

u.

New York 6, N. Y.
Gas

tJuly 27/54

75

Cable—Analysis—Zuckerman, Smith & Co., 61 Broad¬

Cities

Chronicle)

FRANCISCO, Calif.—John
Sickel has been added to the

H.
July 27/54

Westinghouse Elec. 27%

Analysis

«

Gulf

Reynolds Co.

(Special to The Financial

Bleichroeder, Inc., 30 Broad Street, New York 4

General

issues produces

—Appreciation due

-Closing Sale-

Sears-Roebuck
Chemical

individual

to

SAN

♦July 20,'39

du

Laboratories,

Mason Street,

Canadian

formula

(Special to The Financial

interesting results.

-

.

South La Salle Street.

surplus and property values of industry during the past

to

some

1^5

with Allan Blair & Company,

since

15 years.

"Application

Company—Analysis—Harold

CHICAGO, 111. -RobertH.
has become associated

Moore

small when yqu consider the tremendous addi¬

very

Company, First National Bank Building, St. Paul 1,

Minnesota.
Baxter

Derrick

&

in 1939. The

A rise of only 36 points in the Dow-Jones average

seems

Street,

(Special to The Financial Chronicle)
.

1939

Prior

23

Beane,

With Allan Blair Co.

cent of 350 is 157, so the Dow-Jones average

remaining 193 points merely register shrinkage in the value of

Ter¬

Street, New York 5, N. Y.

American

on

Angeles, Box 2097,

Annex, Los Angeles 54, Calif.

Products

Wall

Los

of

per

actually has risen only 36 points above its low of 121

money.

minal

Air

"Forty-five

West, Toronto, Ont., Canada.

associated

Lynch, Pierce, Fen-

To put it differently, the 1939

worth 45 cents in purchasing power.

now

William E.

—

Northeast.

Progress Report—Canada—Bulletin—Ross, Knowles & Co. Ltd.,
25

Ga.

become

Merrill

with

That means that it takes $2.25 to buy

1939 to 450—a rise of 125%.

Company,

has

Powell

"Moody's Index of Commodity Prices has risen from 200 in

Philadelphia Bank Stocks—Comparison of 11 largest Philadel¬

phia

high, of

Chronicle)

i

ATLANTA,

1

Lynch

(Special to The Financial

rise of 229 points since 1939.
"Looks

York

Joins Merrill

"The Dow-Jones Industrial average touched 350 on Aug. 2—

—

a

National

wood Beach Hotel.

a

^Adjusted

to

the

45-cent

dollar.

and Midwest Stock Exhcanges.

comparison of 1929 stock averages *

price levels with 1954, and you will see that we are still a

Joins Mann & Gould

long, long way from that never to be forgotten "boom and bust."
August 3,

NORMAN STEELMAN

1954

Packard Bldg.

Mackie, Inc., 40 Exchange

Philadelphia 2, Pa.

Y.

(Special to The Financial

Chronicle)

SALEM, Mass.—Helen
McEvoy has joined the staff of Mann
& Gould, 70 Washington Street,
members of the Boston Stock Ex¬

change.

We make
•

dependable markets in 285

Uorautra: ^ectirities
<Eo., £td.

Public Utility
•

Member

Natural

DEPENDABLE MARKETS

l

•

your

i

Mcstaff

DETROIT,
Carr

of

Broker and Dealer

Industrial

Mich.—Donald

Leod has been added to the

N.AJSJD.

Gas and
•

Carr Adds to Staff
(Special to The Financial Chronicle)

Stocks
Material and Consultation

,

orders & inquiries invited

Stock

Japanese Stocks and Bonds

2-

2400

Members:

74

N.

Y.

Security Dealers

Association

Trinity Place, New York 6, N. Y.




Company,

Penobscot

Exchange.

on

Troster, Singer & Co.
HA

&

Building, members of the Detroit

With King Merritt

without obligation
NY

1-

376

61

(Special to The Financial

DETROIT,

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

BOwling Green 9-0187
Head

Office

Tokyo

DEMPSEY-TE6ELER & CO.

Wolverton is now with
rit

&

Chronicle)

Mich.—Clarence M.

Company,

Inc.

King Mer-

Number 5348

Volume 180

,..

The Commercial and Financial Chronicle

(501)

that

the
consequences
of
the
agreement would reverse the re¬
covery
that has become notice¬
able in American business during

Britain Fears No Disarmament

Slump From Geneva Agreement
By PAUL EINZIG

Dr.

Einzig, discussing economic effects of the Geneva Agree¬
ment and the easing of tension in the Suez Canal Zone, says,
in absence of

such

a

disarmament pact,

there is

reduction of military spending

a

need to expect

no

that would produce

1

a

major trade recession.
LONDON, Eng.—As far

it is
possible to judge, at the time of
writing, by the attitude of the
Stock Exchange, the first reactions
as

and leading to a limitation of armaments. On the whole it seems
probable that, even though the in-

political tension will
to the Geneva become less acute, the free nations
agreement will hot be able materially to retennational

suffi-

have failed to

lax their efforts to become

confirm

ciently strong to resist any aggres-

an-

ticipations
of sion. There has been nothing in
a
"peace-in- the attitude of Moscow or Peking
our
time to justify hopes of disarmament
-

boo
also

m,"
and
anticipa-

tions of

a

"dis-

armament

markets

quietly firm,
without

any

indication
Einzig

of

strong

any

undertone.

To

large degree the conclusion of
agreement has been anticipated, even though the outcome

a

an

of

the

right

Conference

recent

uncertain

was

to the last 24 hours.

up

Possibly the end of the war in
Indo-China, the impending evacuation of the Suez Canal Zone, and

The the general easing of the tension
were
in the East, may enable the West-

slump."

Dr. Paul

substantial scale,

on a

The

firmness
displayed by the Stock Exchange
over a long period may be interpersistent

Powers to curtail their arms
expenditure to some extent even
ern

in the absence

the

with

pact

is

There

of

Communist

need

no

disarmament

a

to

Bloc,

expect that

of

as an

strong

immediate

response
after the conclusion of the agreea

ment

seems

indicate

to

funda-

markets do not expect any
mental change

would

It

in either direction,

of

ture to form

the

that

an

course

be

prema-

opinion about the

whether the provisional

question

agreement on Indo-China will be
followed by a major agreement

bringing the "cold war" to an end

Gov.

Edward

F.

Arn

and

four

members of the Kansas Turnpike

Authority, met in New York on
July 29 with Smith, Barney &

Boston Corpora¬
tion and Beecroft, Cole & Com¬
pany,
managers
of the Kansas
Turnpike bond issue, and Mitchell
&
Pershing,
New
York
bond
counsel, and the engineering
firms of Coverdale & Colpitts and
The

Co.,

First

Howard,
Needles,
Tammen
&
Bergendoff to discuss details of
the
proposed Kansas Turnpike
bond issue.
The meeting was of
an
informational nature, includ¬
ing the exchange
suggestions to be

of ideas and
considered in

final determination of items lead¬

reached after the end of the business
recession
in
the
United

joint meetings cf
Kansas

bers

a

similar nature.

Turnpike Authority

mem¬

attending the meeting were

Gale

Chairman;
Vice - Chairman;

Moss,

Davis,

such

Had

States.

agreement

an

reached six months earlier
might have accentuated the
downward
American
business
trend, and this could not have
failed to produce grave repercussions well outside the borders of
the United States. As it is, there
seems to be no reason to expect
been

it

is

mean

amounts

material,

involved

concerned,

some

not
a

ments.

getary

be

would

fun¬

damental difference.

with

the

civilian purchasing power

It remains, however, to be seen
will be
fully capable of employing any whether a relaxation of the arms
productive capacity that may be¬ drive would affect the prices of
come released from arms produc¬
raw
materials.
A slump in raw
tion.
Indeed in the absence
of materials
would
produce
grave
some
reduction of arms produc¬ repercussions, to begin with in the
tion the increasing trend of civil¬ raw material producing countries,
ian purchasing power would in all and
subsequently
in
industrial
For this reason it
is
probability cause a resumption of countries.
the rising trend of prices. During of
the
utmost
importance that
the last month employment has stockpiling should be well main¬
reached new high records for all tained in spite of any decline in
time.
Unemployment is down to immediate requirements of strate¬
1% of the employable population. gic materials. It would be of no
The wages spiral continues to rise, use
if higher wages
and social
in
spite of the stability of the service benefits bolstered up do¬
cost of living during the last year mestic demand for manufactures
or
so.
Bank
deposits and ad¬ while a slump in raw material
vances
continue to expand, and prices
reduced
the
purchasing

of

the

French

Govern-

A return of

political, bud¬
monetary
stability

and

provide the French nation
opportunity

an

world

its

occasion

in

generation
markable

to

On

the

more

than one

lifetime

France

of

incerase of old age

will
of

discard

the

will
she

recovery

the

"sick

man

is

great

entitled

past

undignified role
of Europe" and

the

recover

role

by
of

and

the

qualities of her people.

her
eminent
It might

pensions. Fur¬

ther increases of other social

benefits

ice

before

made

The

expected

are

be

long.

very

combined

factors is

serv¬

to

of

effect

these

rising trend of civil¬
ian demand. It is true, there has
been an increase of the output.
a

the entire balance of power
in Europe if France became once

more

an

economically and politi¬

cally strong and stable country.

Firm Ifeme Now Is

Fairman, Harris Co.

Western Governments into

a

ing of complacency about the

feel¬
pos¬

nounced.
will

be

Harris

Mr.

said

in

its extent has fallen

But

It would be

-

to

degree.

some

The

situation

being what it is,
whatever

there

is

fear

disarmament slump,

a

no

reason

there should be

a

to

have announced that Frank Sassa

expenditure.

firm.

unless preciable

material decline

-

her means, it will be a great re¬
lief to be able to reduce military

economic

It may make an ap¬

difference
and

to

financial

has

become
Mr.

associated

Sassa

was

with

117

East

Dix

will

Travis

Street.

manage

the

John

France's with W. E. Hutton & Co.
position.

From this point of The cost of the war in Indo-China
With Wagenseller Durst
present position and the has been one of the main reasons
(Special to The Financial Chronicle)
immediate
outlook
is
by
no why France has been unable to
LOS ANGELES, Calif.—Joseph
her
means
unfavorable.
During the solve
budgetary
problem
first half of
1954 exports were since the end of this World War. K. Groene has joined the staff of
well maintained, in spite of in¬ Her perennial deficit has been the Wagenseller
&i Durst, Inc., 626

of

exports.

view the

creased
round

An

competition.

reduction

of

This

the

a

11-

rearma¬

announcement

main
ness

is not

cause

of

the

South Spring Street, members of
franc, and of the in¬ the Los Angeles Stock Exchange.

of the inherent weak¬

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

an

The

$20,000,000

office,

new

third branch in the State of Texas.

Dix

Mr.

rill

was

Lynch,

The Mountain States

O.

which will be Shearson Hammill's

Telephone and Telegraph Company

formerly with Mer¬
Pierce,
Fenner
&

Thirty-Five Year 3% Debentures

Beane.

Dated August

Due

1,1954

August 1, 1989

F. 0. Crawford V.-P.

Of
F.

Price

Gregory & Son
has

Crawford

Oakley

101.086%
and accrued interest

been

elected Vice-President and Treas¬
of

Gregory & Son, Incorpo¬

rated, 40 Wall Street, New York
City, it was announced by George
M. Gregory, President. Mr. Craw¬
ford joined the investment firm,
when

it

was

founded

in

1935

Cashier and Office Manager.
was

elected

a

The Prospectus may

be obtained in any State in which this announcement is circulate$from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

as

He

HALSEY, STUART &, CO. INC.

Director and Secre¬

tary-Treasurer in

DICK & MERLE-SMITH

BEAR, STEARNS & CO.

1943.

SALOMON

L. F. ROTHSCHILD & CO.

securities

business from offices

at 30 pine street< New York ci'y-

staff

of Richard A. Harri-

AUCHINCLOSS, PARKER &, REDPATH
HIRSCH & CO.

BROS. & HUTZLER

SHIELDS &. COMPANY

SCHOELLKOPF, HUTTON & POMEROY, INC.

BALL, BURGE &, KRAUS

THE MILWAUKEE COMPANY

Joins Sutro Staff

WM. E. POLLOCK A

(special to the financial chronicle)

IRA HAUPT & CO.

GREGORY &, SON
INCORPORATED

NEW YORK HANSEATIC

was

Mr. Duvall

previously with Mutual Fund

Associates.




CO., INC.

SHEARSON, HAMMILL&CO.

HELLER, BRUCE & CO.

CORPORATION

STERN BROTH ERS & CO.

GREEN, ELLIS &. ANDERSON

LOS ANGELES, Calif.—Armin
H. HENTZ & CO.

2200 16th Street.

Degener has been added

to the

staff of Sutro & Co., Van Nuys
Building.

the

previously

(Special to The Financial Chronicle)

the

there

personnel.
has been a member

change

no

the increase of

York Stock Exchange
principal exchanges has
announced the opening of a new
office in San Antonio, Texas, at

a

to

of

alter

and other

Ryerson Douglas is engaging in

son,

which

to

virtue

CHICAGO, 111.—Sills, Fairman
countries
would
provide Russia & Harris, Inc., 209 South La Salle
and
China with an opportunity Street, has purchased a member¬
for fishing in troubled waters.
ship on the New York Stock Ex¬
For this reason it would be a change and changed its name to
grave mistake if the briskness of Fairman, Harris & Company, Inc.,
domestic demand were to lull the D.
J.
Harris,
President,
an¬

New

the

Will Townsley.

Calif.—

re¬

within a very
brief space of time. There is hope,
therefore, that once more France

does the note circulation.
The power of underdeveloped
coun¬
government has just made yet an¬ tries. This seems to be the most
other concession in the sphere of vulnerable point in the situation,
social services by agreeing to an especially as a slump in backward

Ryerson Douglas Opens

SACRAMENTO,

our

a

staged

so

ANTONIO, Texas—ShearHammill & Co., members of

Gourley, Secretary-Treasurer, and

Ephraim T. Duvall has been added

to

prove

remarkable recoup-

erative power.

SAN
son,

O.
W.
Byron

RicharcTHarrison Adds

stability

the

but

would

sufficiently large to make

Branch in San Antonio

urer

ing to a bond sale.
Final en¬
gineering reports
are
expected
during August, with public of¬
fering of the issue anticipated for
early October, 1954.
This was
the first of a proposed series of

Britain

would

Laurence Frazier Co.

Scheduled to Reach
Market in October

as

war

Frank Sassa Joins

Turnpike Issue Shearson, Hammill Co.

Kansas

far

As

two.

or

effort

other

short of sible
economic
consequences
of The company
purchasing power. the Geneva agreement.
Due at¬ of the Midwest Stock Exchange
tention
should
be
paid to the since 1936.
perhaps, too much to
The readjustment may affect some expect in existing conditions of means by which a slump in raw
over-full employment that this, material prices should be avoided
industries unfavorably, but genwould be otherwise.
In the cir¬ by timely measures.
erally speaking it is true to say
Needless
cumstances a diversion of produc¬
to
say,
the country
that civilian demand would be in
tion
from
military
to
civilian which stands to benefit economi¬
a position to absorb an output corresponding to the curtailment of goods would provide a more than cally from the cessation of hostil¬
Laurence Frazier & Co., 19 Rec¬
welcome relief. It is virtually the ities is
France.
Having had to
military demand,
bear the burden of a war from tor Street, New York City, dealers
From the point of view of the only way in which the overload
counter
securities,
on the economy could be reduced
eight years, at a cost far beyond in over the

such
a
reduction
of
military
spending would produce a slump,
or even a major trade recession,

indication that dealers, investors and speculators took
an
optimistic view both on the
prospects of a settlement and on world economy it is a fortunate
the economic consequences of such coincidence
that
the
Geneva
a settlement.
Even so, the absence agreement
should
have
been
preted

the last month

ment

losses of orders for warplanes and

9

August 4, 1954.

.

SCHWABACHER &, CO.

SWISS AMERICAN

CORPORATION

10

The Commercial and Financial Chronicle

(502)

Store Locations—Uptown, Downtown, Out-of-Town
Store planners stress importance
of healthy

business

be

great deal

a

'cially

than is

under way, to

now

well

as

LAWRENCE

The

center

Sizer; A. C. Huffman; Victor Gruen; Arthur Rubloff

Lawrence

Chicago,

locations

the shopper.

for

as

firm
designed Northland
Center which, after three years
opened

Architects
*

whether

make

any

furniture

a

difference
settles

store

the

in

suburbs, or downtown, as
long as it establishes itself in a
healthy, stable and well planned

shopping

An area can obvi¬

area.

ously only be healthy, stable and
well planned if it is easily accessi¬
ble to many
cated in
for

One is J. L.

ter.

000

furnishings, if there is
parking space, and if
general shopping atmosphere

The

feet.

square

Company,
is Inlander Fur¬

and the third one

niture

is

second

Furniture

Robinson'

stores

two

covered,

to¬

gether, 55,000 square feet of floor
Both of these furniture

sufficient

space.

the

stores

is

pleasant

a

shopping

areas

town, just

Such healthy

one.

exist

can

weir

as

as

down¬

uptown and

just

as

well in the suburbs.

It

is

true

that

there

are

many

downtown

areas

measure up

to these principles be¬

most of

cause

our

planned

"vyere
and

which

do

not

downtown

during the

buggy days, but it is

areas

horse
true

as

that many of the suburban shop¬

ping
of
at

do not measure up to
specifications because most

areas

these

them

have

not

been

planned

call

is

in

Northland

above

little

but very
furniture

stores

to the

same

12,000

I

An iceberg
water

the

level

The

below.

huge

what

are

"iceberg" stores.

a

work

two

according

square

principle—only about
feet are on the main

level; the other 43,000 square feet
are
on
a
lower level, or, if you
want to be honest, in the base¬
In

ment.

both

huge well and

leading

the

a

eye,

is

a

grand stairway
as

traffic,

downstairs.
a

well as the
The impres¬

basement level is

eliminated.

After

com¬

Our

just

grew

topsy¬

up

entire

downtown

retail

and

suburban,

overhauling, and until

both

plant,
we

needs

succeed

a

few

minutes customers forget that

all—but

turvy.

pletely

there

cases

sion

of

they

have walked downstairs, and ask,
when

where the stair
down is, because they believe to
be

in
catching up with the growth
of four cities and with the mech¬

for

anization

very

of

our

life,

ih will1 be

on

leaving,

a

the

second floor.

iceberg

obvious

the

The

reason

arrangement is

one.

Basements

hard to find ideal locations. That

to

housing

a

are,

center, what side streets

overhauling

can

take

place

is
demonstrated
by
the
handful of planned, regional shop¬

large

downtown

planned' shopping
are to the

areas.

Furniture
stores, and other
stores, in the home furnishings
field,
with
comparatively
low
sales figures per square foot, can¬

I

using here the expression
"planned shopping center" in or¬
der! to differentiate between the

not

much

pedestrian traffic stream, they are
put in a much better position than

apn

misused

center"

word

''shopping

and

something which I
feel really constitutes a shopping
center.

afford

to

rent

main

street

But by giving them

first floor

area

great migration

foreshadowed

when

and

they get

a

lot of walk-in traf¬

a

principle

subscribe
to

which

the

as

ideal

right

on

side street,

as

traffic

is

with your entrance
show windows in a dense
of

healthy, stable,
well planned shopping center area,
to locate the major portion of this
area

a

store for rental

either

reason

on

a

floor, and
easily accessible portion of the

main floor.

are

ex¬

Whether such

planned

shopping

uptown,

downtown,

suburban

seems

is

area

well

a

situation
in

immaterial to

or
me.

the

not

Well-Planned

Center the

situation

from

a

centers

conclusion

they should invest their
well
in

that

in

money

planned centers, rather than

fewer

but

ones

in better ones,

they will help the situation
number

of

in

a

They will, by
doing so, fortify their own invest¬
ways.

ment situation downtown because

it

will

eliminate

tion in

which

cheap

the suburbs

competi¬

for the stores

created

and

old

existing downtown and
they have heavy invest¬
Obviously, if somebody is

are

Although

it

is

permitted

build

to

shanty

have

There

have

will

under way, or can
to
destroy or seriously damage
our central city.
Mankind of ne¬

cessity

transacts his business in
close-knit,
highly
integrated
community. In America this com¬
a

munity expands vertically rather
horizontally, and emphasizes

than
the

point

business

that

people

together

of business that

they should have.
particular area, we are
the edge of a very
heavily pop¬

In
on

our

ulated

part

the country. The
changed their pat¬
tern of living, getting out in the
country—the automobile, the open

families

of

have

A shopping center, to be success¬
ful, must be planned around the
building of an institution and not

just running stores.
■; The term "highway

head¬

to

This

stores"

tends to have people believe

they

deal

mainly

with

that

transit

trade. An outlying

store, whether
highway or on
the edge of town in a shopping
center, must depend fully on the
it be located

the

on

population that it
within

radius

a

miles.

10

within

approximately

Although

highway,

key

our

are

We

over-the-road

few

we

areas

radius.

this

draw from

can

of

on

get

a

all

are

very

customers. 1

the

beginning, there was a
tendency for customers to ques¬
tion our operation only because
it

was

cated

on

to

came

first

to

be

found that peo¬

we

because of the

us

cessibility, parking area, the
with which

we are

business

our

lo¬

highway. However, as

a

time went

ple

the

of

one

on

able to conduct

compared

as

ac¬

ease

to

a

main street location where people
could be popping in just to look
We find that

around.

of

centage

into

come

great per¬

a

customers

our

who

store

actually pur¬
furnishing field
through the years. This would be
our

such

prices than the established

central
city
is
currently
very
strong but it is unwise to forget
that a y i g o r o u s counter-pull

type

works

out where all of the merchandise

merchants

downtown.

those

shopping

shanty towns
will
sell

is

further

And

be-,

those
unstable, they

are

force

areas,

merchants

to

cheaper because their business

marginal, in order to stay
alive they will have to live from
so

sale

to another.

that, a good shop¬
center is a costly proposi¬
It is just about as costly as

ping
tion.

we

have

needs

toward

and

sets

two

work there.

virtually

unanimous in re¬
flecting this viewpoint. Without
exception, major State Street
stores, operate suburban units—
and many ten years

because

of

of

rental

downtown

but

question of location.

a

by looking around that
to do good planning.- ■> ;

furnishings stores should

healthy business area.
planned shopping center, of

force, such

It constitutes such

a

drawing power that
others will not dare to establish
a

old

as

lion

have

been

long

and

very

needs
very

tion

a

home center, within a
is
catering to all

which
of

the

home

broad scale,for

each

one

maker

with
of

on

a

competi¬
the

mer¬

more.;

forth.

store should
be kept,
possible, to a one floor lay¬

where

carried

be

can'

browsing.

We

seen

are

also
parking

by retailers for

capital

im-.

through
against two

settings. It is

necessary

that

proper

facilities.

have

you

Land¬

scaping should be given consider¬
ation.

-

'

;

■

'*

-

and

are carried out,
have studied the kind of

you

merchandise
no

your
area
desires,
question but that cus¬

tomers will do business with you,

from the congested tensions

present
operations.
V
are

Before

in

the

in-town

the

at

selecting the location for
or shopping center store
furnishings field,"a

suburban

home

careful study must be made tq de¬
their counterparts in most large
termine the buying habits of the
cities) have accepted the chaK
people in the area, and merchan¬
lenge and the opportunity for ex¬
dise should be selected to cover
panding facilities to serve their this
group. Many times their ideas
.

community better.
-

on

The department store

many
stores under one
is essentially an American

roof)

to

swer

such

(which is

a

the

service.

He

in

grew

customer's

needs

an¬

for

As the customer's

completely dif¬
buyers.
There are many extra dollars thjat
.f.---4can be picked up if we know what'
goods are in the minds of the peo¬
ple we are trying to sell.
f,
^*

the retailer ex¬
his own pro¬
By

began

a
century ago, and decen¬
tralizes along with his customers.

go,

he

want, he supplies.
The

in-town

*

*

*'

i

about

they

are

from- the

•

■

reverses

of centralization which

Where

furniture

ferent

successful

goes;
■«

*..

Chairman, Arthur Rubloff &

Company

what they

(A

>

.

merchant

it

ARTHUR RUBLOFF

-

real

estate

firm)

The successful operation

has

retail

chants, there is planned competi¬

always been zealous to anticipate
and reflect his customer's

-

of any

home

tion

stores.
That is the
.advantage of the shopping center
over the
lone-goer, because shop¬

ping

among

means

comparing

of

price,

.

If these factors

that

$60 mil¬
since the

some

provements in the stores on State
Street.
These
merchants
(like

cess

Within

years,

or

old

spent

pands.

very

opinion

so

of

away

time,

wants expand, so

over

25

as

outlying units.

themselves nearby without think¬

it

Our

and size of their
At the same

merchandise,
r U t
also is that this'

foods, and

as

there is

war

and

pays

different from other

Virtually, without exception, they
plan increases in both the number

con¬

trade,

of them

chase in the home

floors and basement

Chicago's downtown merchants

facility, and therefore it does

su¬

elsewhere

live

or

some

not

strong

continually to draw people
the central city—whether

the building of a good downtown

become any more the question of

of

pulling in opposite

they live there

are

In contrast to

center




have

directions. The outward pull from

at

So

ing

t

and

the desired volume

much

lower

well.

'

over-rated

human

phenomenon, and it

Kuhn, Loeb & Co.

been

produced

who will be able to sell

Home

negotiations.

do

real need created our cities
in the first place; it still exists.

competition.

merger

who

want

Company, Inc. and The

advisers in the

great

a

than is now
be anticipated,

Following approval by the stockholders of Royal Typewriter

August 3, 1954

not

In

be

to

change

more

really

as

the

greatly outstripped the
still the cities themselves

regional dimensions, has one great
advantage over "going alone." It
is
impregnable
against . future

undersigned acted

a
shopping center.
by a failure is the
turn,
where
they

mean

unexpectant
have

success Or

town
after shanty town in the suburbs,
they will have tenants in there

The

1954. The

that

true

rates of growth in suburban areas

very

it

companies under the above corporate title became effective July 31,

in¬

ments.

go into any

,

have

ones

creased.

quarter close to each other.

ence

!

created

in which

hope that the people who lend
the money will learn by
experi¬

these

has

New communities have been

deal

the

to

come

I

of

so

previously non-exmerchandising opportuni¬

will

only

merger

is

movement

ing power.,

ditions

Company,

This

outward

new,

istant

ties.

the

and fully, see
challenge—and

threat.

this

urban

brand

faced

continue to grow in size and buy¬

Crux

of

de¬

opinion,

our

to it.

have

squarely

companies will
study the questions seriously and

If the insurance

material,

McBee

of

range

I

areas

certain

among

who

mortal

a

because

located

highways

burban trade against higher priced

Royal McBee Corporation

and

—

Retailers

cities,

the main

they

wide

a

failure

What

New

localities, certain

country and
termining factors, in
the

in

other! highways, the ease in which peo¬
things, offers downtown retailers ple live, the casualness in which
of every sort a whole new set of they prefer to live, if they can get

would

I

solution

located

be

and your

on

presents

problems

opportunities.

The

competition of cheap, cut-rate

5

Henry

World War II.
It

much, much higher than expected,

some

the downtown store which locates
on

as

fic.

one

space.

degree

same

Sales figures of both stores are

cause

centers which, during the
last years, have been constructed
in different parts of the
country.

ping

the

to

other stores.

lower level, on a second

Company.

These

of great demand

home

Hudson, whose

home furnishings alone cover 40,-

shoppers, if it is lo¬
area

an

planning and construction, was
in Detroit of March this
year.
There are three large fur¬
niture
stores,
besides
quite
a
number of home furnishing stores
of every type in Northland Cen¬
of

Store Designer

Member, American Institute of

urban

one

The

stores

in New York)

one

the

Ford

My

By VICTOR GRUEN

and

out

began to build low priced
planned regional center posed, have show windows and,
autos by the millions.
It really
an
attempt has been made with entrance doors to the largest pe-.
began after World War I, and
varying success to establish the destrian traffic density. They are
reached full momentum afterright climate for the retailer, as partaking of the traffic of the best
this

In

well

111, June 23, 1954:

&

of today's
socio-economic

generates

four

pretty much control the

crowded

impressive

was

of

.

move

the

revolutions.

follows summary of a
press conference at the Interna*
tional Home Furnishings Market,

It doesn't

SIZER

Marshall Field

desire .to

from

away

■oak

Mart,

Company, Inc.
Jersey and

Company

There

Merchandise

'

furnishings

B.

';

President, Huffman & Boyle

*

*

Vice-President,

are

better.

By A. C. HUFFMAN

drawing

home

opportu¬

customers and

more

fur¬

Certain

By

emphasized.

the

the

increased

his

is

serve

them

serve

(Operating

most

.

this

nity to

centers

home

strong

♦

de¬

location

as

might

all

field.

stroy central city locations. Man¬
agement

for

ex¬

change

more

home
the

serve

establish

will

ecutive maintains there will have
to

build

to

will

we

cards, strong magnets, built espe-

ing impregnable against future

Marshall Field

able

be

that

now

Thursday, August 5, 1954

.

.

nishings industry only, but which

well-planned shopping center be¬

competition.

We visualize

which

with

area;

style and quality where it - is not
possible for the lone-goer.
-

.

Today he does it

on

two

the central city and the
area.

The

only

new

desires.

fronts:

suburban

thing about

establishment, whether it be

furnishings or any other
type of retailing, is dependent on
two fundamental factors

tion
there

and
are

(2)

(1) loca¬

management.

always

some

While

exceptions

■

Number 5348

Volume 180

to

the rule,

tion for
The

a

..

quality

type

or

of

income level of the people within

trade
best

giving

the

buying

closest

in

establish

merchant
by

his interests

serve

habits

location

The

area.

would

to

the

people

of

study

in

any

which

himself.

he

desires

Two

preceding

wil1 be affected with disastrous
economic
results.
This
could
destroy the value of much real estete within the established areas
as well as the financial collapse
of many of these contemplated
developments,

any

A

to

important

11

average annual rate of productive
ity increase during the three years

there is no substitu- off considerably. While some may
location.
survive the competition, others

proper

merchandise is determined by the

any

(503)

The Commercial and Financial Chronicle

.

Dissatisfied

with recent

and asserting

markets

well

planned, well located,
regional shopping center
extremely expensive means

need of production expansion to avoid excessive

for farm

surpluses,

wage

enlarged housing

recession

of total output at about 7%.

%,

This

contrasts

with
3V3% and 4%%,
respectively, for the seven years
preceding the recession; and 2%%
and 3%, respectively, from 1929
through 1953. Even allowing for

increases, selected price

adjustments, expanded social security,

1953-54

and the average annual expansion

slack, the Conference on Economic Progress urges increase in
Government outlays of $3 billion, further $4^2 billion reduc¬
tion in taxes on lower income consumers, creation of wider

modern

the

has been calculated at about 5%

"leveling-off" of business activity,

pro¬

uncertainties in such calculations,
we may need to expand total out¬
ing upon a location are the proven of producing retailing facilities,
put by as much as 6y2% a year to
spendable income within the tradIt is no longer possible to build
Stepped-up Government spend- nual rate of total output by at
.
...
A
ing area and the accessibility of a single building with no thought
ing,
tax
reduction,
and
other least $39 billion by early next
transportation thereto.
to the convenience of your cus- measures to achieve a $600 billion year. We need by then the equivJ1
While in the prime or 100% tomer until they are within your economy by 1960 are urged by the alent
of 4 y> million additional ,
®
*
economy
locations
foot
traffic
is
looked premises. In a modern shopping
Conference on full-time jobs to reduce the true
y. e ®nd ot iybUupon as the principal means
of center the tenants have joined toEconomic level of unemployment from 5 to
Keyserling the Study's Director
attracting
business,
the
buying gether in providing ample conThe staff work in connection
Progress, a 1% million and to absorb 1 milhabits of those who are patron- vement free parking space, and
with this first study, directed by
newly formed lion new workers.
izing shopping centers are com- pleasant and attractive surroundLeon H. Keyserling, has benefited
non-profit,
pletely
different.
The
buying mes
for the convenience and
non-political
Stimulants to Consumer Buying by an ad hoc Technical Advisory
habits as they relate to shopping pleasure of their customers,
group engaged
An increase in Government Committee, including: John A.
centers in comparison with 100%
The design of the center must
in
economic outlays by
about $3 billion to Baker, Wallace J. Campbell, Seyor
already established business take into consideration the needs
research
and meet gaps in our defense or do- mour E Harris, Roy F. Hendricksections, are different in
that of the tenants not only from the
education. As mesUc programs,
and a further son> Robert A Rennie, Stanley H.
shopping centers appeal to those customer's
point of view, but
contained in $4^
billion reduction in taxes Ruttenberg, Boris Shishkin, Elmer
who
shop
by
automobile
and shipping
and storage
facilities,
its first study now
imposed on lower income E walker, and Nat Weinberg,
where
ample parking
facilities overall design and appearance and
for public dis- consumers,
would powerfully
The ad h
Nati0nal Committee
have been lacking in most estab- many other features too numertribution, en- stimulate business investment and 0f the Conference, for the purpose
lished business areas.
ous
to mention. A great deal cf
titled
"To- consumer buying.
Even so, tne
the nrst study, includes Morris
Prior to the advent of the shop- thought and careful planning must
ward
Full Federal deficit m a full economy Llewellyn
Cooke>
construction
ping center, a merchant wishing to be devoted to the layout so that
Leon K-eyseriing
Employment would be smaller than .now. Ad- engineer,
former
Administrator,
choose a location in an already each tenant will have a suitable
and Full Pro- ditional
steps to lift consumer Rurai Electrification Administraestablished business section was location for his particular type of
duction," with a sub-caption, "How buying by about $20 billion in- tion; William H. Davis, attorney,
influenced largely by the business merchandise and his needs,
to
End Our National Economic elude:
Improved farm income former Director, Office of Ecofirms situated therein. In

is

factors to be considered in decid-

an

and inducement to

gram,

investment.

overseas

™

„

^ 1hnhnn ppn^nmv
$600 ]bill:ion

®eto

.

.

.

_

_

.

,

many

consideration

little

cases

Those who

was

amount

construction

responsibility
merchant
location

in

is

placed

his

far

,

the

on

selection

of

a

shopping center. As
matter he
^must or
should determine the following:
in

a

practical

a

other

the

provided

con-

the shop-

in

ping center, any large area in a
shopping center will be costly so

additional

of

deal

S^eat

.

veniences

modern

is

rent

as

unless

concerned

a

substantial amount of volume can
be realized per square foot of
Because of the needs of this

area.

type of merchant, one of the most

practical

solutions

provide

floor

first

have

been

to

amount

moderate

a

of

with

area

large

a

through creating wider markets

Deficits," its findings may be summarized
«n,ip

merchan-

of

cost

and

to

which

their

display
the

substantial

a

in

area

With

dise.

largely by the other merchants,
both
chain
and
independent, who then comprised the
business section
of a particular
area or city.
.

of

properly

enced

A

in the home fur-

are

nishing field require

spendable income, the
trading area, transportation, parking facilities or other factors. The
merchants
judgment was influto

given

.®

in

to

the

nm,,

recession

,py„i
level.

below
Th®
I he

the

trnp
true

full

IpvpI
level

3il°Tfenl7kmatd
now

ex^d

equivalent

nmninvmpnt

nf

ness

production

of

ot total
total

(6) The possibility of competifrom close by already es-

tion

business

tablished

areas,-

and

equally important, the threat of
new competing areas which
may
whether

More stores

be built

dividual

in-

for form
shopping centers or strip developments,- competitive to already
or

established

grouped

business

areas

ob-.

viously will tap the spendable income
supporting these business
sections, and the end, result is a
division of sales which ultimately

wl3L,SIJn>iP0IJ n ^e,r* stability
(7) The financial
.....

.

know-how

the

of

the

behind

,

and

management
shopping center de«.

w

*

+

(8) Whether or not his type of
or inventory is suited

merchandise
to

the

income

levels and

buying

habits of the customers within the

trading
'

area

he will

serve.

Jn the highest intensified
Metropolitan Chicago

have

tem of

the country-103 outlying business
sections are established here-84

?f W«ennndn7oe4OP«,f,1oonroannogmg

from $8,000,000 to $153,000,000 per
year. Our Loop or downtown area
generates a volume of business
approximated $700,000,000. Despite

?•

unun

tlon

j

and

*

from

i
tax

some

un-

year

virons is

to

perhaps
cities
build

one

in

in

in the midst of these high

regional shopping

$70£

wllion

$1

miIlion

National

pr0perty on their own, for their
own
investment, or own it as a
mortgagee, or hold title as a mort-

which

gagee,
the

money

if they loan
the

means

of

owner

the

irregular 'leveling-off' of
is not good enough.

u'*

-n/r

Tnfprnatinnal
•

4.

-rr*

A^oriation of
-a

t>

we

raise the average standard of living by about 35%, and eliminate
mass
poverty. We could, with
somewhat slower domestic progress, greatly enlarge our defenses
against the Communist menace
and extend more economic assistance to underdeveloped parts of
the free world.
"But our tasks and prospects
may well
be far greater. The

need to raise the an-

This announcement appears

Machinists, Vice-President and
mPTr.hpr Fippntivp Connoil
AmPr

^ Federato
Kaplan. President,

Welch Grape

^eon n. jveyseging,
economist, former Chairman, President,s Council of Economi'c Ad.
JU1Le

Industrial Organizations; Marvin
Rosenberg, Chairman, Cameo Curtains

Inc.;

E.

G.

Shinner,

ments

*Copies of the full report may be ob-

^«s™Too^Co»i'Tti"t 7v«'Tw':
Washington 6, d. c. (Price 25 cents).

This

matter of record.

of

develop-

International Telephone and

Telegraph Corporation

today. I think we are

^an
heacie(j for

s0

estate

A subsidiary

j

eountry was never
commercially

have

we

as a

International Standard Electric Corporation

over-stored

more

only

0f the best "busts"

one

had

ever

There

is just

much spendable income

country> just

s0

in this
spendab!e

many

t

to

go

everybody,

Swiss Frs. 60,000,000
4% Debentures due July 15,1970

around,

swhat hap:

pens?
Insurance

The
t

continue

ranted

real

companies

to

(inance

estate

Swiss Frs.

can-

15,000,000

unwar-

developments

m% Debentures due July 15, 1960

and expect to maintain the fantastic

investments

astronomical

jbey bave
busbiess

jn aiready established
Something has just

areas.

81

in Switzerland.

Arrangements for this transaction were

negotiated by the undersigned with the cooperation of S.

G. Warburg & Company Limited, London.

The above

S. G. Barrett Opens
t0

Tm

r

t

cmoNICtE)

.

TxniTTrrn

„

DENVER.

Colo.

Stanley
a

G.

Kuhn, Loeb & Co.

securi1735

.TIftn„n

East Fourteenth Avenue. He was
formerly with Investment Service
Corporation.

Debentures have been sold

August 4, 1954

mer-

chant and
banker,
Chairman,
Shinner Foundation; M.
W.'
Thatcher, President, National Federation of Grain Co-ops.

new issues

they continue to finance
real

A

*.

a

pr0p€rty

unwarranted

r>

u

They either own this

of America

ties business from offices at




i

and by inducements to over-

oi

prjme reaj estate locations in ail
the Broadways and Main Streets

a

reality, the spendable income supporting the already established
business sections will be siphoned

T

.

The

The insurance companies today
have

projects.
If these 30 centers all become

„

traffic

Barrett is engaging in

strip

,.

areas.

development,
are in the planning or conyersational stage, some 30 such
or

there

n

"We must register year by year visers; Murray D. Lincoln, Presiminimum annual growth rate of dent,
Farm
Bureau
Insuranceaverage worker's output per 4.2% in total output to maintain
Companies: James G. Patton, Presman-hour is increasing. The labor a full economy except insofar as ident, National Farmers
Union;
force is growing. Thus itotal pro- we increase leisure.
This would Miles Penny backer,
President,
duction must expand steadily to lift our total annual product to Voltarc
Tubes
Inc.;
Walter P.
avoid excessive slack. If total out- $500 billion by the end of 1960, Reuther,
President, Congress of
•"The

recent weeks

they Hence,

of the most
America

1?

changes

ycdi, investment.
a«uuy inuucciiienL& luuvei
seas

million

about

employment of about 5 million.

Virp-Prp<?idpnt

fi

t

a'reac[y made, should be further
"f. ™a
proi!„am

to full-time

Rtchard H. Frost, Execu-

ser Co .

*>um pneumatic Co.; A. J. Hayes, Preswould

benefit from expanding consump-

that Chicago and its en¬

difficult
centers

inVestment,

security,
which

Busi-

stabilization;
Abraham
Chairman, Julius Kay-

nomic

jreinberg,

must be accessible but need not be

we Spendabie dollars to

sys-

retailing spread throughout
areas
of any city in

which

line,

furnishing

.ea

securitv

unrecorded

dollars. When there aren't enough

residential

the fact

home

the

social

exoanded

amount of space in the basement
or lower level in conjunction with
the first floor. In this way a more
moderate rental can be obtained
support it.
and still give the tenant adequate put in the first quarter of next
year were to be no higher than in
(3) The overall type of tenant areas for his requirements.
the
first
quarter of
this year
and
the proper coordination of
Shopping center traffic, if the
(which was about $2 billion above
lines which assure the draw and
development is properly planned,
the second quarter), the annual
the success of the development.
is highly concentrated. The stores
(4) The accessibility from high- jn the highest traffic areas corn- rate of output by early 1955 would
be at least $37 billion below the
ways, assuring a satisfactory flow mand high guaranteed rentals and
full production level.
of vehicular traffic.
The true
are
usually occupied by tenants
(5) Proper provisions for ample who must have the traffic to sur- level of unemployment in that
free parking facilities.
vive. In the case of a merchant in event might be near 7 million.
(1) The proven need for the
facility.
(2) The proven spendable income
within the trading area to

increases

wage

,

and a hlSher.mini^unJ waSe base;
price , adjustments; and

starting

output is

total

our

an
at an ann1iai rate at least <627
annual ra4p at least

billion

surpluses

1}e receS81°n siarung selective

mid-1953,

now

f°r

follows:

as

12

The Commercial and Financial Chronicle

(504)

deposits

of

approximately

$200,-

Continued

from first

000,000.
It

News About Banks

merger

BRANCHES

NEW

OFFICERS, ETC.

the

Bankers

and

contemplated
that
the
will become effective at

merger

CAPITALIZATIONS

on

page

of

the

issue

in

given

was

columns
22

REVISED

these

Growth Is About to Begin

332 of the July

"Chronicle."

declining, retail sales were begining to show the effect of changed

The

to

York

York

in

banks

which

States

of

them

on

William P.

it

serves

as

bank

credit

communities.

that

out

The

of

♦

lin

currently

in

predominantly

of the "small business"

Commenting
tion the Chase

variety.

the bank's

on

;
ac¬

Chairman, John J.

Not

months.

the

try,

during the coming

in

constructive

cial

lending

know,

criticism

banks

adequate
small

the

to

there

that

have

we

of

care

of

commer¬

been

the

We

taking
of

needs

believe

bear

*

as

Trust

of

six

will

bank's

Manufac¬

be

Main

*

of

New

assigned

new

'

personal
was

at

on

these

checks at a

forms

to $250.
-

are

nom-

iace

on

.

tion;

each;

and

undivided

surplus

of

worked

President

along

the difficult and

have

we

adjustment

period

about

As
Act

~

war

aoproval

*

New

Trust

N.

Y.

the

Company,
to

stock

to

increase

*

By

awkward

which

and

inflationary war and postprecipice, through the rough

its

of

*'

*

shares

*

thing

111., increased
capital
stock
from

its

$525,000 by
fective

a

July

stock

the

-

appointment
Neill

as

of

Assistant

an

S.

each

Pa.

by

institution

shareholders

•„

i

Cashier
i*i

,

career with

of

First National
*

on

*.-

in

/

1937-.

a remark-

jf

California,

N.

A.,'

going to have

are

we

economy,

an

en-

have to

we

enterprise

system,

re-

that

and

lead, in the end, to

will'

system unrecognizable from what we thinka

want.

Therefore, a purpose of
must be to remove,
wherever possible—and to avoid
adding — hampering restrictions
upon the release of enterprise in
individuals,

we

widespread foreclosures,
its
unemployment and all the

with

we

reasonable

nation, harsh

to .particular

;

Harry J. Nutt, Assistant Mam*
of the Seattle Office of The
of

must

government

move with due regard for that
basic sensitivity of our economic

terprise

our

ager

Bank

kind

we

adjustment

in
•

.'

economy

and

matters,

government

mass

Mr.-McNeill began his banking

July 29, was
announced
by John A. Byerly,
President of Fidelity and C. A.
McClintock, President of Colonial.

individuals.

prepared

are

to

-/

We believe that

Now

.

resume

economic growth again.,

Sail

cost

it has been

as

our

v

.

our

tax system,

system of regulations and
controls, should be such as to
achieve, their purposes without
preventme the release of this per7,,

our

-

.

?

Francisco,

Califwhetired
acv
Basic Conditions for ^Confidence- ^nal enterprise which is the heart
has been cordance With the bank's .retifcer
I think there are four basic of the
enterprise system. Nobody
Pennsylvania ment plan on, JMy 31/1954, after conditions that can
give us con- has found-any solution, for-*the
Department of Banking for its ap¬
serving the bank continuously for fidence in the longer-run develspark that comes from - aRowing
proval.. The merged banks will be 42
years.
He was employed on opment of our country.
people ?
put^ things ttogether
known
as "Fidelity
Trust Com- -Aug. .5,49.12. and served Nueces•/
/V, _
'which other people want to buy./'
pany.' The bank will rank second lively in
all-departments off 1 the ^ '/FirsVthere is the point that the
Also, if our kind of system is
in total trust funds and third in bank
untii his appointment ais;As- ijVicerPresident spoke about—the
going
Work, there > adust/b#
deposits of ML banks in Western sistant
lVlanager on Julyll,' 1944.-"tbrust -^Tvhich-j population- growth
gquslity *bf "Opportunity. ~ That' isPennsylvania.
-Upon retirement, he* will leavegives to the Whole economic picanother aspect of -removing ham-**The~iiew Fidelity will have total with
Mrs. -Nutt
on
a-a several
ture./' ;
;
.
-pering restrictions.. ■ Thaf:iiieans
capital, surplus and
undivided months tour of the British* Isles
/ Second/ there is the technolog- in
education/ that means in'jobs,
profits of approximately $27,0O0,- and the continent of
Europe! / w.^ ical revolution which is going on that means
iff every area where
;000, resources -of -$232,000,000 and
1
•
"
v
•«
;r
at an astounding rate in the labor- a man or woman who has somf-

;"

The

merger

submitted

'

XT

private

system.

its

Mc¬

the Bank's Credit Department.
,/r

The

blows.

other
debilitating consequences,
We have been able to make this

Aug. 2 the

on

Richard

should, do with

or

have in
country is a most extraordinary mechanism.
The incentives
that
guide it, the responses it
makes to restrictions, are delicate

rejoice that we have not
had to go through the typical historical experience of mass liquidation after a war inflation with

*

First National Bank in St. Louis,

Missouri, announced
*

some-

this

we

*

the

It is not

ur®s,t^ay are tw0 mllhon ab2v® w!tht findlng
^
whatJ they were a year ago. But what we are not getting from the
do

ef-

19.
*

con¬

best

Needless to say, we do not re- lease enterprise. If we do not do
Jorce that the unemployment fig- so we are going to be concerned

to

dividend

can

how

to
can

.

common

$350,000

we

touch

effectivelv

you

was

maintained,

Government

sledgehammer
of

can economy.

#

cero,

cap¬

of

*

The First National Bank of Ci-

from

100,000
value.

par

curnstances, it has been

capital stock from $1,250,000 to $2,500,000.

employment

and

great deal of thinking,

a

economy.

ably moderate adjustment for the
American people and the Amen-

common

high

-most

private

think that,

we

the Connational

a

to create those conditions

which

the Federal

forked against the yardstick of
hlstor/ under such postwar cir-

effective

Employment

constructive0'thinking,as

an

accomplished, and

*

dividend

July 20, The Union National Bank
Youngstown, Ohio, increased

Garden

$1,000,000

*

stock

a

result of the

a

have had

of

of

Long

its

stock

government

about

of

stimulated

the First National Bank of Arling-

*

York

capital

common

what

purpose

in

President
was
required to
guide the American economy back

off

of $440

area

1946, in which
gress declared it to be

per-

the

V

in

policy?

nego-

during

gross

—

measured

.

Government Policy

period of economic
is -about to begin.
We

that

*

received

Y.

country

product

Now,

the

at

over

of constant dollars—should

a

tiated

of

this

of

get Up into the
$450 billion.

to

with

fundamentally

are

think

$10,000,000;

*

have

that

growth

$3,000,000;
shares
of

$1,111,806.

The

the

suaded

profits of not less
*

who

why,

to

proposal
the

.

inalj cost of .,15c, each
up

of

burgh,

Aug. 2

of; the Bank in New York City

amounts

$10

Company, Pittsburgh, Pa. and the
Fidelity
Trust
Company, Pitts¬

-55

order

help

__

to

"Register

money

announced

We

staff level

stock of the par value

Long

than

of

300,000

grow¬

Ratification of the joint plan of
of
The
Colonial
Trust

Tfte National City Bank of
NeW'York. All of the 71 branches

'"

that

into

common

merger

by

will sell

*

*

*

a

N.

sisting
same

with

years

Office

*

Inauguration of
service

statistics

value per share to

Broad Street.

Check"

divided

$885,000
con¬
sisting of 88,500 shares of $10 par

another company.

the

and

stock

Govern-

these problems and have tried to

consolidated bank will

capital

*

City,

Company

after

White

have

continues,^ to

of the fastest

*

ital

Mr. White had been with Man¬
ufacturers Trust from 1926 to 1945.

Mr.

dation the

Federal

I

excellent

that.

reason

no

no^

Tow-

branches
National

as

At the effective date of consoli-

growth
in indus¬

commerce

It

the

the

area

in

one

by * Fidelity-Baltimore
& Trust Company.

in the United States.

areas

Island

*

York

returns

the
one

State

was
announced on Aug. 5
by Horace C. Flanigan, President.

He

out

in

size

and

is

range.

are

do just

can

duction

ment has a role to play, but as in
all of these matters, it doesn't
have the whole governmental role
to play by any means.

Bank

Approval was given on July 28
by the Banking Department of the

helpful.
*

Vice-President

a

trades.

*

The appointment of Peter White

turers

reflects

Island is

ing

in

Long

on

Baltimore

will be operated

son,

chances

national
terms

the

conduct¬

so

the next five years, the real pro¬

be realized. In that grand project,

13

formerly operated by
Fidelity Trust Company, 11
in Baltimore, one at Friendship
International Airport, five miles
from

we

obviously,

The

the

and

of

one

acceptable

an

the

There

cern
that
the
potentials
for
Balti-' American economic advancement

branches

member of

now a

new

that

National

Company,

office

main

of

The

Franklin Na¬
independ¬

the

construction,

that

our

be

can

98

$100,000, consisting of
1,000 shares of the par value of
$100 per share, to $250,000 con¬
sisting of 2,500 shares of the same
par value.

been

country are
meeting these needs, and we are
anxious to do our full part wher¬

ever

former

within

think

ground of transition that had to
be traversed in order that we
on
July 29 from the Banking
ton, Va. was increased from $300,- could
once
again resume our
Department
of
the
State
of
000
to $600,000 by sale of new healthy
economic -advance.
We
New York to increase its capital
stock effective July 21.
think that has pretty well been
stock from

"small

has

the

not

business.

banks

This

hurst,

business," the concluding para¬
graph of the Chase letter to cor¬
respondent banks says "As you
some

ranks No.

$1,250,000

Md., effective, July 16.

more,

Franklin

Trust

&

lem is rather

ing our affairs that we can hold
fluctuations about a growth curve

begin-

was

ning to show trouble. There was,
Quite naturally, a good deal of
concern
with stability.
But
throughout that whole Economic
Report is a great and driving con-

Md.,

under/the charter

Fidelity-Baltimore

Bank

Frank¬

The Lindenhurst Bank, Linden-

of

■doubtless

is

Long Island

and

Emphasizing the particular im¬
,

now

hundred

service

useful ways."

portance

first

nation.

This situation presents a

money

Y.

of

stock

common

title

|

of

Baltimore,

Bank,

Baltimore National Bank and

among

only

of the

responsibility as well as an opporr
tunity for commercial banks to
lend

Bank

Island, but it is

bankers in various sections of the

mand for loans

*

times, the work week

$2,440,000, and Baltimore

consolidated

the

Y.

July 28.

tional Bank the largest
ent
commercial
bank

McCloy, said that "in talking with
,country we find most of them
agree there will be a rising de¬

size

with

Exchange

N.

stock of

National

Di¬

a

the more
than
14,000 . commercial banks in the
country.

correspondent banks for financing

enterprises,

on
*

National

Square, N.

about

$110,000,000 arranged at the request of

local

Corn

Company,

Statistics show that the

letter

Chase

commitments

The

Trust

bank announced

their

in

of

rector

Bank

reminding

willingness to assist
request in taking care of
for

Worthington, Presi¬

Company, has been elected

New

a

Fidelity Trust Company,
Baltimore,
Mid.
with
common

dent of The Home Life Insurance

its

demands

points

of

United

the

correspondent

them

local

Bank

Aug. 5 sent letters

on

3,800

has

National

Chase

The
New

paqe

A New Peiiod of Economic

the close of business Aug. 6, 1954.
A
previous announcement on

CONSOLIDATIONS
NEW

is

Thursday, August 5, 1954

.

..

No applica¬

required

and

-checks carry the- buyer's own
sig¬
nature.

-

,

With mutual runa A»pc.i atories *n this country. .Last
Mutual Fund Assnr
spenh $4

we

(Special

New Issue

to The financial

"STOCKTON,
Borrow and

—

L.

H.

Lowje

W.

(Speciai

to The

Financial

chroniclk)

Daniel

-

\A/;«-k

what

20 Cents Per Share

Halbert, Hargrove
to The

LONG
Da wson

Financial

BEACH,
and

Calif.

Gordon

D.

—

Hargrove

be obtained from the undersigned

the staff of Halbert,
Co., 115 Pine Avenue,

'

(Special
-

*
*

52

Broadway




Dlgby 4-2785

personal
when
you were in conference in Washington recently, this economy is
not going to get productive, efficient, buoyant members of the

in
an

New York 4, N.Y.

LOS

to The

Financial

ANGELES,

Chronicle)

Calif.

—iBalie

P. Legare and Francis J. O'Brien
have joined the staff of Investors

Realty Fund, Inc.; Mr. Lagare was
formerly with Marache Dofflemyre

& Co.

call

"more

field

for

Fourth, I think

,

ly

succeeded

thrall
of

us

that

we

in

in

great

•

that

the

to

employ the laboF and the capi¬

tal

of

this

country at reasonably
high levels of use.. I think that
more

and

more

Americans

now

are

coming to the conclusion that

we

need/

another

not

and

will

not

have

depression, that

our

prob-

you

have pro-,
government
economically—
we

pound

are

quite apart from the humanitarian

some

economy did not have
the regenerative forces

our
within it

of

to

grams at all levels of

during the decade-long deof the '30s, .that, some-

how

Therefore,

sources.

have final-

upon

said

primarily with how they "are
going to protect themselves when
they lose their jobs, with how
they are going to protect them¬
selves wholly on their own re¬

indus-

breaking

settled

I

ed

and

a

American

As

labor force if people are concern¬

reasons

pression

I

Twn Willi Ir»vpkcfnrc Roalfv

Investments

might

try and business to exploit.

pelen

Robbins

i

HUNTER SECURITIES CORPORATION

I

fertile

Chronicle)

.

have joined

may

factor that prompts

respon-

construct a sturdy

theHpit

over

disaster.

Administration

better." This fact provides

Uolk^f.

With
(Special

Offering Circular

A third

floor

Weston, ( 1191 .optimistic outlook with respect to
He was for- economic growth in this country
is, the impulse in Americans to
merly with Waldron & Co.

Common Stock

r,

this

D.

I

at

sibility to help

North Bundy Drive.

Share)

i

that

continue to play its,.part
that respect in the future.

Cal.—James
W. Lynch has become associated
with

words of the President, a

intel-

an

that govern-'
has, in the

ment at variodsJlevels

for

(Wiii

BEVERLY HILLS,

1,434,275 Shares

Offered

responsible

was

I (think

Further,

-

think
.

thing to contribute, he or she will
be given a chance to do it. — m

year
research

ligent way to stimulate economic
growth and development and I

,

With uamei Wpctnn
Wlin n»niAl
wesion

Corporation

on

development in the United
States, and of this the Federal

are ,Government

|

Mountain Mesa Uranium

5 Cents Per

Calif.

Edward

billion

an(j

v

with Mutual Fund Associates, .half.. We believe
that is

now

(Par Value

Chronicle)

wh'ch also support these

programs—because

.

they give us
the kind of Deople participating in
our
economic system who will
rlcV

•

pr»«4

tr»ke

a

chance

'

future ahead.

Finally,
system is

our

o^e

kind

of

for

the

*.

economic

that must create op-

portunitv if it is to survive,
Now

+horo

p-o

+wo Hops about

economic growth that I find as I

Volume 180

Number 5348 V. The Commercial and Financial Chronicle
.

look at opinion today.

growth at

a

chieved

cost

usually

massive
eral

One is that
rate

maximum

bea

at

cost

any

inflation

and

the

and

is represented

with

from
in

regi¬

15

its

maximum

pitch

but

can,

also

abolish

to

little wrinkle in the

activity

ness

goals.

analyze

we

tion

and

but as I
which is

whatever

'on

'ever

scale

in

and

is

manner

that

had

we

what the costs

see

'great

in

terms

I

study

our

inflation,

of

in

any

history

I

do

not

know

basis

which has been

economy

successfully

stimulated

I

tions

through the budget over a
period of time. I think
-it simply will not work.
In Eu¬
today I think

"abandonment

of

that

to

Rather, I believe that the full em-ployment doctrine has become a

those

conditions
in

where

as

/.

go upward

we

•—v/ill be held to

*cl's long

decisions

as

enterprise

-an

But

made in

are

free

the

decision-making

is

alternative

an

growth.- It calls
to

-

create

mitting

set of

a

that

so

omy

fluctuations

be held

can

; range.

supporting

the

of

•

:

middle

the
en

severe
our

may

of

1953

economy

be

more

that

so

a

affairs

correctly,

handle them with

a

we

*

our

course

sion

be

a

economy

and to

of

can

I

.

we

do

in

analyzing

is¬

L

we

stand

them

that

any

of

I

will

happy

to

try

back

and

see

us

down

in

certainly
to

contribute

in

any

now?

be

ening.

to

we

The

are

lengthening

June should

not

be

lost

upon

us.

I think the possibility of the sav¬




New Guinea.

living

world.

countries

support

is

a

not

U.

a

high level of

and

na¬

confi¬

public

S.

soil

A.

we

people, if

can

feed

billion

a

In the April
issue of the "Report from Rutgers,"
necessary.

he points out that the productive

capacity of the earth is far greater
than required to feed all the peo¬
more
numerous
ple on earth.
He believes, the
their land will - challenge of a growing population
fair reason for: can be met through replacement

than

Americans to
"we

Firman-

E.
Bear,
worldscientist, is optimistic
about man's future food supply.
He believes that right here in the:

provide
everyone

Because

have

population

for

Dr.

•

famed

raising of

a

a

take

the

*

certain

stand

of mineral

that

truthfully help these peo¬
ples only by teaching them to help

rigation

themselves

fertilizers, through ir¬
reclamation,
and

isting land,

can

control

their

•

and

through sound conservation of

num¬

vision of

the

water supplies

"The

ocean.

using

ex¬

through the pro¬
frofti

even

new

for

yeasts

been done in Japan and it is now
estimated
that 80
out
of every

transformation

1,000

possibilities in
the microbial

the

married

there have

women

impressed

about

on

few

a

the

rocky

of

area

my

work

islands

State

our

of

statesmen

casual

visitors

recommend

vated

and

i

out for the

cut

of

the

Japanese

to

be

me

merely

suggesting

Australia,
come

Brazil,

and

New

largest
a

-

about

I think I have
realistic

more

Guinea

is

solu¬

of

one

the

islands in

their

the

world, has

climate and soil somewhat sim¬

of

to

Nations.

the

if

be

Australia

Would

or

lease

United

were

land?

to

colonize the is¬
„

Yes, they would.
find

to

Nations and Japanese

permitted

will

transferred

Japanese

But they

better

and

friendlier neighbors than the Chi-

Church,

Avenue,

10, N. J.
.

;

■

Central Republic

<

Adds

(Special to The Financial Chronicle)

>

CHICAGO, 111.—George C. Bul¬
loch is now with Central Republic
Company,

South

209

Salle

La

Stock

members of the Midwest
Exchange. He was previ¬

ously

with

Street,

Co

H.

C.

&

Speer

Sons

,

Walston Adds to Staff

r

J

(8pecial to The Financial Chronicle)

;

SAN

Charles

Philippines be uncomfortable

that

the

540 Chestnut

Trenton

not

am

America,
Canada be¬

realistic

more

closer

I

KORB,

Conv.

Immaculate Conception

be

that
or

immigration laws.

ilar

OFM

immigration

concrete.

COSMAS

REV.

to

unculti¬

world

scientist.

Sincerely in Christ,

exploitation.

Let

a

Tuller

and air

transform water

carbohydrates on a produc¬
tion-line basis, putting the vast
unused energy of the desert sun¬
shine to work" is the job he sees

such

even

Mr.

that, certain

areas

opened

and
as

to

into

Montana, but the failure of Amer¬
ican

or¬

hope to unlock the secret of
chlorophyll molecule of green
plants and put this principle to

three years' stay in Japan was not

sistence

and

wood

the

during

me

of

ganic "materials into protein food,

suffered legal abortions.

with

Stock

A.

La

Walston

gomery
New

Calif.—

FRANCISCO,
&

Street,

YoYrk

Franboixe

Co.,

265

members
San

and

Exchanges.

is

now

Mont¬

of

the

Francisco

He was previi-

ously with Paul C. Rudolph

and

Company.

"In

of

building

can

This is

not an

On

this

the

score,

or an offer to buy, or a solicitation of an offer
offering is made only by the Prospectus.

offering of these shares for sale,
The

be

to

buy, any of such

sham,]

233,974 Shares

Northern Illinois Gas

recent

Company

Common Stock
Par Value S5 Per Share

appraisals,
promoted
by
cheap
money
and
exceptionally
easy
ing. Second, it
ing

is

means

hold

to

up,

Price $21 per

that if build¬
must

share

^'ilk-

builders

provide people with

the kind of
they want, where they
them, and at prices they are

houses
want

willing to

pay.

the

"While

•<

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

writers

dealers in securities and

"

country's desire for

better homes is still far from sat¬

Joins Garrett Bromfield
(Special

to The

DENVER,

demand

Financial Chronicle)

Colo.

—

John'

-

Bromfield

Seventeenth

Street,

the

Stock

Midwest

&

Co.,

members

R.

Exchange.

650

of

for

shelter

the
of

urgent
early

ket,
r

on

years

more

dependent than

before

general prosperity, has become

more

vulnerable."

Blyth & Co., Inc.

the

has almost com¬
pletely disappeared. As a conse¬
quence, people can afford to be
more choosey and the realty mar¬
postwar

Bailey has become connected with
Garrett

nevertheless,

isfied,

•

an encouraging fac¬
because it usually precedes
an
improved reemployment rate.
The strength of retail buying in

tor,

of

to

only
even

in.,'

to

gain if it will
permit Japan to feed itself through^

be

can

an;

terms, may warrant some misgiv¬

the

work week is

not

jump in requests for VA mortgage

With Carroll, Kirchner

heart¬
of

the

tion.

can

at all.

employment figures'
increase

in¬

about.

To¬

a

for Juue and the failure of unem¬

ployment

be

to

new

the

carry

what

way

level

dangerous—increasing the risk of
supplying the market with too
much too fast and bringing on the
slump that people are worrying

considered

be

can

most

position,
retreat from

where

I think the

likely

for

'

income

stimulation

If there is any aspect of any

Washington,

our

these

out

formula

of

The free world has'

much

so

stand

driving

who

lines,

(Specie.) to The Financial Chronicle)
the
July of '53 has been stopped,
DENVER, Colo. — Harry ,W.
where there is a reorganization •
Nichoalds, Jr. is now with Car¬
going on, where the economy is
catching its breath for a new ad- roll, Kirchner & Jaquith, Inc.,
Patterson Building.
vance.

think,

are
.

...

have reached

the most

housing, as in most .other
realists recognize that the
days of' scarcities; when almost
anything would sell, are over. This
means two things: first, that over¬

v.

I

Been Stopped

Where

even

incentives

'credit, the building industry would
appear to have the basic elements
for a sustained, though not neces¬
sarily record, level of activity,

hope that in the
of this morning's discus¬
good deal of progress can

helpfully by

The Retreat from July '53 Has

day

conditions,

credit

growing, population and national
income, and continuance of easy

problems of particu¬

on

made

sues.

minimum and

-

contractive

,

These activities

A

Japan's, and is populated
dence has cumulative effects in
at present for the most part by
expanding
housing, needs
and
•stimulating construction. Already only a couple million aborigines.
•a
downward adjustment in new Moreover, half of the island is
home starts from the peak build-, held by Great Britain in trust as
ing year 1950 has been made, and a mandate of the defunct League

it

way

*

taxes,

word

citizens.

the

•

the

marriages

the

"Conversely,

tional

examination of how

an

industries.

lar

acceptable amount of discom-

an

motion in

-

incomes
and

declining

Thus

construction

states,

the attack

from

arrange

we

and

.

public works, the
way in which regulatory authorHies conduct their business, and

moderate fluc¬

if

not

quarters or dou¬

decrease

effective.

accomplish, but,
opening, the Federal

in

economic growth.

progression

a

are

the story.

include

in the past. There

underway

tuations,'
our

indicate

away

are

becomes cumulative.: Un¬

liberal

course

in their activities can
most effectively contribute to this

shocks that have shak¬

toward much

:

—

progression

Also,

to

births.-

road

trying to

said

the

of 1937-38, the recession
1947-48, the recession or ad¬
justment, or whatever you want
to call it, that we have had since

possible

Home

finances

threatened,

or

smaller

up.

tend

are

devoted to

we

of

-the

the

%

cession

.

factors,

is only part for the
past several years starts
As I understand it, •have tended to stabilize around
the meeting here this morning is
one
million
annually, r Given a

have had recentlv—the sharp re¬

,

is

I

of

" '.

I think that the fluctuations

.

seek

ble

They will be¬

touches the economy

small
-

of¬

generally out looking for better
housing; they stay where they are,

der such

Government

econ¬

a

in

expectations.

whose

squeezed,

process

due

evil.

an

What

various

and

owners'

after the Congress has acted.

and
as

structure

within

builder

-

enterprise within our
use government to

a

now

things that the Fed¬
eral Government is thinking about

system and to
build." up

incomes

in

These

conditions per¬

maximum release of the

a

1" potential

program

Seaway,

.in

the

housing requirements are
sensitive to changes in peoples'

or

effective

depends

the '30s,

Lawrence

soon

government

upon

these

careful

is

ever

key undoubtedly is the state of only the struggle of 85,000,000
general prosperity and the na¬ people of a wonderfully - intelli¬
tional income.
As shown during gent and clever race to find sub-

expansion

come

idea of how to stimulate economic
^

of

which

jn them.

of

these

St.

stimulus

that

to

building

complex of factors, includ¬
as
well as number of

success

"Of

.

the

predeter¬

no

as

and sound value.

can,

construction, all these things that
are
part of the President's pro¬
gram
have billions of economic

process.
There

all
very

economic

President

active

potential

ance,

a

the

the

has

fering homes of attractive design

revision, the farm program,
security,
housing,
slum
clearance, unemployment -insur¬

completely the minor swings that
reflect

think

in the "Bank Letter":

we

as

money,

a

just for this life, but for eternity.
Surplus populations, such as found
in Japan, should not be regarded

in

size

the

as

social

dangerous illusion to
that we
can
eliminate

suggest

that

get

income"

credit."

rents,'what the buyer can afford
based upon current income, and

large

to

national

"liberal

possibly

we

surplus of

chance

that direction.

families, migration, condition of bers," as suggested by Mr. Robert
Tuller in your May 27 issued Un¬
present, homes, availability and
terms of mortgage credit, trend of fortunately,
that very thing has

Tax

.

freely, by
workers,
I

and

pay

of

ing

healthy

to

got.
as

think

I

the

the

industry

upon a

threat to

a

helpful

as

have

economy.

economy,

entrepreneurs
think it is

income

minimum.

than

ance

moving through the Congress, will
make a very great contribution to
the future potential growth of our

in higher levels
a

to be

I

of

curve—

of production, output and

and

pros¬

mined saturation point.- Continu¬

attention.

•

•

we've

certain

things

these

business

the

not

for

looks

subsistence but

tion,

got to

-

attention

culties.

more

-wrinkles

it is

he

worked

general

"Evidently' the home construc¬

industry areas
which are undergoing a combina¬
tion of cyclical and secular diffi¬

doctrine.

sensible, moderate concept,
'holding that government has a
responsibility to
try
to
create

think

can,

steady

we see a

that

so

much

'sustained

rope

go

the economy.

injec¬

by

current

a

of

rather

ships in mind.
agricultural situation in shape,
we've
got to get that program
cleaned up and get it on a

the

excellent

in home

perity

our

In all

of

has

a man

will be "the state of

We have
relation¬
We've got to get

economy, and that ultimately

;it would be self-defeating.
economic

have

we

If

Communists

nese

.

pression years, concludes that the
determining factor in the situation

keep definitely in mind.
got to keep cost-price

increased regulation in

analysis

with
the question of the
danger of overbuilding, and, after
alluding to the record in the de¬

the

certain facts that

Chronicle:

deals

that on the nega¬
picture we have

say

side, of

the

Editor, Commercial and Financial

controlling factor.

As stated

would

tive

of

place where that
building, the Aug¬ money can be put to work and
"Monthly Bank Let¬ bring in returns.. People are of
ter," monthly publication of the: much greater value than mere
National City Bank of New York,
money, for they are created not

on

can

is

issue

ust

the

we

'

issue

i

,

Korb, taking issue with Robert TuIIer in May 27
"Chronicle," proposes New Guinea be opened
up to Japanese immigration.

point, since the state of

an

boom

I

that

are.

of

In

forward.

I think the costs would be very

; terms of

that

chance

Rev. Cosmas
-

•

the

every

-

,

present

concludes

predetermined satu-

no

income

settling out, the re¬
the recession, what¬
ever you want to call it, has stop¬
ped, that we have beaten the
spiral process and that now there
is

and

general prosperity and national

con¬

facts

conclude

is

ration

money

awarded,

solid

are

can

boom,

re¬

adjustment,

carefully, to check its validity and
to

we

some¬

better

the

of

contracts

these

retreat,

to

necessary

there

inven¬

to

respect

credit, the high level of

think

what-

"achieve it—I conclude it is

thing

with

which

year—with interven¬
Federal Government

per

by the

discusses factors in the

housing

tell¬

is

product, the

availability

tories,

higher

course,

doctrine,

market

in industrial

situation

presented in very attractive form
in terms of a maximum rate of
increase
in
the
gross
national

product

rise

struction

that, of

this

stock

output, the
continued improvement in aver¬
age hourly earnings and average
weekly
earnings,
the
healthier

'

I'd love

over

significant item.

a

the

City
Bank's "Monthly Bank Letter"

unemployed,

unemployed

gross national

cent

every

and onward to greater and

weeks, is

in

of busi¬

curve

of

core
are

Suggests Relief for
Japan's Overpopulation

Housing Boom

August issue of National

us, the stability of consumer
prices, the stopping of the decline

it sweeps upward

as

Factor in

something to
shrinkage

13

LETTER TO THE EDITOR:

Prosperity Termed Key

of

ing

semi-annum, every year. In other
words, our goal should be not
only virtually to abolish severe

•

hard
who

What

every month, every quarter, every

business cycles, which I think

down¬

I think that the

the

We hear today that it is a crime
if the economy does not operate

to

-

support

in

18% between May and June

those

up

adjusted
—

larger spending by consumers out

mentation.

right

being

somewhat

watch.

resultant

unacceptable

rate

of given incomes—is

by a
Fed¬

intervention by the

Government,

ings
ward

must

(505)

1

•

A. C. Allyn

and Company

Incorporated

Hornblower & Weeks
August 4, 1954.

.

Central Republic Company

Hallgarten & Cev

(Incorporated)

F. S. Moseley & Co.

Paine,Webber, Jackson & Curt

av

14

(586) 7

The Commercial and Financial Chronicle

Moreover, except for 1949 it
high¬

By WALLACE

Continued from page 2

sold each year since at a

THE MARKET... AND YOU

price than the best

so far
Artloom has been
selling at roughly half of last
year's best and at a sixth of
er

this

STREETE

The

year.

profit.

Security I Like Best

Recently the Government
a
stockpile
buying

announced

the 1946 high. It, too, sold far
from the steels alive despite the chill
program which effectively puts a
prime blue chips that have of occasional profit-taking and higher every year for the last three-year floor of $225 a flask
under the operations of domestic
eight years. Either one of
done so much work for the some dour
earnings results,
these issues can graphically mercury producers. This is one of
last 10 months and into the
notably a trim of nearly half
the
most
practical
reasons
for
illustrate how ultra-selective
secondary and speculative is¬ in National Steel's reported
thinking that New Idria is a good
the recent strength has been
sues continued this week with net.
speculation.
With a rather wide di¬
and how depressed some is¬
Why the Government wants to
no
overall rush to load
up. vergence in ideas over what
stockpile mercury is a mystery to
sues still are when the head¬
Gains, consequently, were price would emerge for
veterans of the industry—atomic
lines based merely on the se¬
moderate and the lack of
energy is given as a possible rea¬
any Youngstown in any successful
lected
stocks
used
in
the son, but nuclear
physicists don't
important setback kept most plan, the issue came in for the
see much use for it in their trade.
averages proclaim the "high¬
market observers cautious but best
play and was able to star
The

still

shift

away

optimistic.

in

multi-gain sessions
including one day's improve¬
The rails were back in their ment of five points. There
lazy pattern of lagging, irre¬ was little to distinguish in¬
*

*

some

est

*

*

spective of the general trend, dividual

elsewhere

issues

in

a

new

re¬

organization plan, the fourth
proposed for the road in the
20

of

years

its

bankruptcy.

Action

was
restrained, how¬
both by the fact that so

ever,

cause

issue

seemingly has bred
of holders impatient

grouo

get their money, and

a

to

move on

fruitful fields.

more

*

*

creased

far

group,

from

Aircrafts
show

a

were
now

which

pected to be

a

had

back¬

been

tion to the listed

After

tinues

in the

trading, con¬
something of a dis¬
appointment, far more famil¬
as

new

low list since

its

trading inaugural than
with strength. Volumewise, it

then

to

Boeing and United Air¬

craft

spark the action in the

three

times better to make its first

are far from the
showing
uphill >road. A bit list.
dividend largesse helped

both

some

Some

the most active

on

their

appearance

high could be

*

*

brief

limelight as the tariffs
on
imported movements were
lifted, they subsided rather
quickly. The exception in the
watch group is Bulova which
has forged ahead somewhat
steadily with the 1946 peak
sufficiently near so that a test
of the old

*

gineered

on any

general

en¬

mar¬

Interesting New Highs ket strength.
*

*

*

generally good

least of the Celebrants
General

being shares,

Dynamics which

lected

store

ship

issues

and

se¬

builders. In the
added regulars

whether

the

directors

can

a

new

*

i

•

The

rumor

contract for

*

an

mills have been

Motor

some

Products

*

The
terest

*

*

quality of the
is

best

new

illustrated

expectations,

sub¬

rather

quickly when
only the regular payment
came
along.
in¬
*

by

General Tire finally dis¬ some of the others that forged
closed a plan for the latter to to new highs — Wilson,

The

*

*

electrical

a

had

a

Textron-Robbins-Amer- burgh Screw, Pabco
Products, division

ican Woolen blend.
*

*

Holland Furnace and Babbitt.
*
*

*

of

the

to

compete with

other

Interest in the Steels
All the talk of
S t

e e

Armour, for

Bethlehem tration, is
1-Youngstown Sheet the blue
a

merger

proved

When

Bethlehem

of

substance

told

admitted

that it is, at

est

a

well

as

the

behind

both

moves,

sharp

averages

of high¬

attention

one-

to

brokers' advices. These

con¬

it

in

spoke

prices in a quarter cen¬ of National as a candidate for
least, in the talk¬
ing stage. This proved potent tury. Until very recently it some sort of stock distribu¬
in
keeping interest in the sold at only half its 1946 peak.
tion, a game that settles on




of

New

zinc-lead

and

It

Parker

Idria

was

President

became

Idria.

that

Telluride

Newmont Mining

by

over

Parker

New

of the large

properties of the Colo¬

rado Plateau region.
taken

Ijdria,

President of

was

Telluride Mines, one

has

the

into

came

picture

of

assumed

been

New

his

of

because

familiarity with the Plateau region
his high reputation with the

and

at

a

ought

At this rate

exceed

to

$100,000

month, might approach $120,000.

At

a

conservative

more

tion

produc¬
600 flasks, profits
a
good $90,000 a

rate,
ought to

say

month.

and

highly favorable.

New Idria

any

uranium properties. The

agement may

has

not

picked

too

prove

become quite

also

prove

very

wild

wise

they may
in moving

slowly.
New Idria

capitalization is sim¬

should

this year has been from

than

less

$45,000 a
$70,000. Thus
mercury mining is sure to pay off
well through 1956 and may pay
handsomely.
month and could be

On

a

from

share

per

the

mine

basis

could

earnings

exceed

an

annual rate of 500 a share before
taxes and should be no less than

200

share during the

a

(Taxes

years.

this

won't

because

year

carry-forward

next two

bulk

of

large

depletion

a

stemming

from

a

abandoned gold mine in Hon¬

now

duras.)

Communists

burned

the

Honduras

and New Idria is in for
surance

recently
property
nice in¬

a

payment.

Besides the mercury mine, New
Idria Mining and Chemical owns

manufacturing sub¬
sidiaries.
One, metalsalts, makes
mercurial pharmaceuticals, fungi¬
cides and other specialties.
Sales
have recently been going at an
annual

rate

profits at

$500,000,

of

$2

million

and

rate of

annual

an

over

fore taxes.

Metalsalts

is

supply about 40% of this coun¬
try's mercurial chemical require¬
ments.

Syn

The other subsidiary Dar-

has

developed

icals.

Most

notable

low

a

some

new

in non-mercurial chem¬

processes

1 to

cost

success

was

technique

for

are

low of

a

high of 3—a big percentage
jump but not out of line with im¬
provement of earning power. As
a

for

mercury reserves, recent ex¬
plorations have pushed proved re¬
serves
past the two-year mark.
Quicksilver ore bodies are usually

irregular in shape and size. Ex¬
ploration and development have
to

be

maintained

consistently.

After 100 years it is believed that

less than
ized

third

a

of

the mineral¬

of the mine property

area

been

has

thoroughly explored.-

To sum up, maximum annual
earnings projections at the pres¬
ent time are about 700 a share

before taxes.

teresting
because

flow,

to

New Idria looks in¬
me

has

it

"$2

a

as

stock"
cash

substantial

a

good management, and the
possibility of developing along a
a

number of

interesting lines.

Royal Typewriter—
McBee Consolidation

believed

to

2,552,962 common
outstanding.
Price range

shares

about 200 a-share be¬

or

man¬

tive but since the uranium market
has

ple—there

no

So
up

conserva¬

price sinks to the
floor during the next two years,
profits from mercury mining
be

my

him with people of the

on

were

far

the

be

If

engaging individual

region

$295 price tag, operating

a

profits

and

by
the
Typewriter
Co., Inc. and The McBee Co.,
merger of these companies under
the corporate title of Royal McBee
Cnrtx became effective July 31,
Following

approval

stockholders of Royal

1954.

Biggest market

Kuhn, Loeb & Co., New York,

for procaine is in manufacture of

acted

penicillin.

negotiations.

Dar-Syn's annual sales

has reached

rate

the

level, but profits have been mod¬
est

non-existant

or

brilliant

as

men

less.
use

With F. I. F.

respon¬

A

organic mercurial

new

DENVER,
Ross is
ment

now

Colo.

Walter

—

S.

with F. I. F. Manage¬

Corporation,

444

Sherman

Street.

in seed disinfectant should

With King Merritt

add materially to sales and profits
from

merger

Three

yet.
are

ical subsidiaries in the last decade
or

the

in

(Special to The Financial Chronicle)

young

sible for the techniques and prod¬
ucts which have built the chem¬

for

advisers

as

half million

now
no

on.

(Special to The Financial Chronicle)

dividends have been paid

since

been

up

sheet

1950, cash has
and the balance

piling
is

in

good health

(the cash pile-up, of
has not been at the rate
indicated above since money has

DENVER,

Colo.

—

M.

George

Van Gorden has become affiliated
with

King

U.

National

S.

Merritt

&

Bank

Co.,

Inc.,

Building.

course,

been

invested

needed

for

in

(Special to The Financial Chronicle)

expanded

and the average

production

price of

mercury

considerably lower than the
current).
Dividends seem likely

was

to be resumed later this year un¬

less

some

With First Southern Inv.

facilities

new

important

new

BOYNTON BEACH, Fla.—Nor¬
man Branch III is now with First
Southern

The

most

logical

expan¬

expansion

any

prospering

whose last stock
1929

plum

of

was

First

Corporation,

Avenue.

Joins Kidder Staff
(Special to The Financial Chronicle)

BRADENTON, Fla.—Girard N.
Campbell has become affiliated
with

A.

Twelfth

M.

Kidder

&

Co.,

436

Street, West.

vintage.

[The
article
time

company

Investors

Southwest

sion opens up.

largely because of rather
centrated

pur¬

be

uranium property.

a

President

checks

of

random illus¬ day runup in National Dairy,

chips and the tale

by the

random

some

*

around such

The

Charles Parker,

700

the end of this year.

As

issues

occasional good moments but
$7,000,000 interest. Cudahy and Armour, Wayne they, too, were considerably
A large block of Robbins Mills Knitting, Artloom
Carpet and short of spectacular, and in
stock, not held too long by Manhattan Shirt along with the seesawing the overall
J. P. Stevens, was transferred Seegar
Refrigerator (helped progress came to little. There
to Textron
reviving the hopes by a dividend hike) Pitts¬ certainly was little in the
for

purchase of

or

possible toward

is

with

and

acnuire

month

a

making procaine.

partment, Kroger, Neisner
Bros., all on one day's posting. sided

price at

years.

production

at

dividend

*

having a bit more success
lately. After much talk and
speculation,

process

and

maintain the

regular dividend
today's (Thursday) meet¬
atomic-powered submarine. started appearing on the daily ing, and the possibility of
The double romance of con¬ lists of new highs, the store earnings showing any signif¬
stocks being noteworthy in¬ icant upturn after the
crete business and a
poor
growing
experience in matters atomic cluding Sears Roebuck, Macy, results for the first quarter.
enabled this issue to do some Franklin Stores, Davega, General Motors, which was
Diana Stores, Federated De¬ given
real sprinting.
something of a play on
landed

the

stablized

two chemical

Among the lower-priced,
Many of the so-called pivearnings in an era where long-depressed issues, the in¬
terest
rotated
mixed profit results are
considerably, otals have also done little
ap¬
parent in most lines furnished seeking issues that were ready recently. Chrysler has had a
an
important statistical prop. to come to life to a degree. somewhat erratic time of it,
As a matter of
fact, military Popularity veered from one what with the large short in¬
orders generally were well re¬ group to another among the terest in the issue, the dif¬
garded marketwise, not the textiles, movie stocks, foods ferences of opinion over
group, and the

flasks

ex¬

low-through in the market—
handsome addi¬ is the domestic watch makers!

able to put
would have to do
and

issue.

as

—

end of the

of

*

*

the

over

Consequently these
stocks, except for momentary
ward as any major group, the
flings, have put on a rather
occasional progress made by
protracted show of aimless
the few buoyant issues such
milling around. A similar situas Texas Co. unable to whip
a t i o n
demonstrating the
up any general demand. Royal rather widespread lack of fol¬

they

prove

sies that have arisen

about

were

iar with the

J*

Aircraft Show

on

$

Oils

times high hopes have
disappointed and be¬
the long inertia of the Dutch,

many
been

to

than its cohorts.

sub¬

the

would

hard rock miners and prospectors
out there.
Parker is a vigorous

has

and

high level for three

The mine's capacity is being in¬

Some Laggards

reaping all the predicted
except for a momentary flare- the ferrous group, Allegheny results from color television,
Ludlum standing out a bit
up in Missouri Pacific pre¬
actually has been hampered
ferred—the only listed stock more prominently on strength for months
by the controver¬
of this carrier—on

require

would

sums

chase of another mercury property

it

*

television

stantial

and

a

The

which

steps

At any rate the Government wants

prices since 1929."

*

Thursday, August 5,1954 !

...

views
do

not

coincide

Chronicle.

expressed

in

necessarily at
with

They

are

those

of

this
any

the

presented

those of the author only.]

as

With

King Merritt

(Special to The Financial Chronicle)

DELRAY BEACH,

Fla.—Charles
is now affiliated with
King Merritt & Company, Inc.
S. Pompey

Volume 180

Number 5348

The Commercial and Financial Chronicle

...

(507)

The rate of interest

Housing Boom Sustained by Easy Credit
Study by Federal Reserve Bank of Minneapolis reveals

more

,

,

significant force maintaining the level of
house prices.

a

rates.

Also, in

munities

.

-

The Bureau of Transport Economics and Statistics of the
Interstate Commerce Commission in its most recent monthly bul¬
letin had some interesting statistics bringing up to date the extent

dieselization of

of

of

the

major carriers through the first
The tabulation is reproduced
below, showing the percentage of freight service, passenger serv¬
ice, and yard switching service performed by diesel locomotives
on the various roads for the first four months of 1954
compared
with a year earlier. In the various regional groupings we have
listed the roads in descending order of the proportion of freight

four months of

some

the

current

year.

service dieselized in the current year.
..a.
Half of the roads are, to all intents and purposes, completely
dieselized and only three, Illinois Central, Nickel Plate and Nor¬

folk & Western have

as

much

as

50% of their freight business now

a

model coal-fired steam turbine.

an

accumulation

was

gage

that

finding

savings.
the study

of

liberalization

credit terms

nificant

of

of

mort¬

be

sig¬

maintaining

force

a

the

may

dieselization

roads listed showed in¬
1954 compared with the
first
wide relative increases
were scored by Chesapeake & Ohio, New York Central, Santa Fe
and Union Pacific, although the latter still had one of the lowest
ratios among the major Class I carriers. One thing that is appar¬
ent from a perusal of this tabulation is that while dieselization has
admittedly brought important operating economies to the railroads
this modern power is by no means the complete answer. One has
only to compare the favorable operating performances of Nickel
Plate and Illinois Central, operating with little in the nature of
freight diesels, with the still very high operating ratio of Chicago
& North Western which by now is largely dieselized.
a year ago,
all of the
in percentage of dieselization in
four months of 1953.
Particularly

creases

cers

prices. Loan offi¬
report that real estate men

and

builders

have

been

the most liberal terms

seeking

on

houses

difficult to sell in order to

move

Apparently,

served, the
buyer is more

concerned

with

the

required down payment and
monthly payments than with total
price.
In

Ninth

most

munities

the

district

demand

com¬

for

new

houses continues

high, the study
found, although in a few smaller
cities the supply of new houses
"temporarily is in excess of the

tFreight

^Passenger

gYard Switching

—Service^—

Eastern District and

—Service—

—Service—

195f ' 1953

1954

1953

1954

%

%

%

Pocohontas Region

100.0

Delaware

100.0

99.9

88.1

99.7

Builders have erected

a

record

81.4

100.0

largely over, the Review said, was

88.4
99.7

99.4'

Hudson-

%

89.1
100.0

Bqstpn & Maine
&

1953

the fact that since 1950 the
has

99.9

100.0

88.9

100.0

95.8

100.0

100.0

100.0

99.1

100.0

99.7

100.0

106.0

96.5

96.5

99.3

99.3

Despite

99.9

97.3

the housing

99.4

84.6

—

Lehigh Valley——

99.9

—r—:

—

99.8

100.0

99.6

99.7

Wabash

Heading

~

81.9

100.0

94.6

'

Chesapeake & Ohio

75.6 *

99.9

98.4

95.9

pearance

90.9

91.0

76.5

79.8

53.5

76.9

67.7

N. Y., N.H. & Hartford
Baltimore & Ohio

81.1

79.6

i, 57.1

80.7

72.1"

79.1

65.9

Pennsylvania
.
N. Y., Chic. & St. Louis

76.2

66.4

60.4

57.6

16.1

5.0

99.2

07.9

Norfolk & Western—

;

93.2

New York Central

nil

nil

nil

—

,

57.8

99.1

the

rates

for

some

companies

making

conventional loans at

has

kept demand up.

changes:

It.

households, which creates
"basic"
demand, has been

the

in the Ninth district than

slower

the national trend.
son

For this

rea¬

boom

doesn't

purchasing
review

take

12.
{
j
Transfer of the Exchange mem¬
of the late Robert F.

Aug.

bership

Whitmer

this

said

place

unless

"effective"

come

de¬

liquid savings, high employment
accompanying high incomes,
and availability of mortgage

with

credit.
It

"

waj

;

noted

'

where

activity, in the current

year

in

*

and

Richard

Blauber retired from, J.
Kennedy and Company, Inc.,
July 30. On the same date Jay
Richard Kennedy, President and
Director,
became
President,
R.

sav¬

not being used for pur¬
chases of houses as much as pre¬
are

Treasurer

I

viously.

-

B.
Behal, Vice-Presi¬
Treasurer, and Abram
Kardiner, Robert W. Ballin and

postwar years liquid savings were
an important stimulus to housing

ings

Babcock

Arthur

dent

;

that

H.

Herman Merkin retired from
limited partnership in Sutro Bros*
& Co. July 31.
>.

large accumulation of

a

(Charles

Aug. 12.

three

from

to

will be considered Aug. 12.
i
Transfer of the Exchange mem¬
bership of Graham Bell to Jack
A. i Ziebarth
will be considered

housing

a

is present, the

power

has

mand

that

following firm

weiler to Oliver D. Appleton witt
be considered by the Exchange

housing boom has not
been comparable to that in many
other parts of the nation.

out

the

bership of the late Gustav Wurz-

the

pointing

Yprk Stock Exchange

reported

i
Transfer of the Exchange mem¬

found that formation of

was

new

The New

employment and incomes
receded from the high 1953 level,
more credit is being used in the
purchase of homes. The report
cited how, in the district, the
number of nonfarm mortgages of
$20,000 or less recorded in the

and

Director.

of

demand

shortage arid the
a

ap¬

small vacancy rate,

for

new

houses

has

Join

the

ceeded

1953

figure by

6

LOS ANGELES,

Lower, William A. Lower and
Ralph E. Mayer have become as¬
sociated with

or

pany,

most

states

the

amount

Street.

of

mortgages was
larger. This reflects, the review
said, lower down payments and
possibly the buijding of an in¬

merly

creased
proportion
priced houses.

Mr.

on

these

Co.

Inc.,

Witherspoon & Com¬
215
West
Seventh

William
an

4n

Lower

officer

charge

Of

of

Was

1.3

0.6

NEW

the

Lower

associated

Douglass & Co.
with First Cali¬

Meyer

with
was

was

are

offered

as a

Speculation

Southern Region

100.0 100.0

100.0

100.0

100.0

99.9

Southern Railway
100.Q
Atlantic Coast Line—
99.8

99.9

100.0

99.5

100.0

99.3

99.8

99.6

09.6

100.0

99.9

Louisyille & Nashville
Illinois Central™

79.3

66.9

19.9

96.5

98.2

93.3

17.5

8.1

19.0

70.8

79.7

76.9

100.0

i99.9

/ 100.0

99.9

99.3

98.8

99.9

98.7

98.1

-Seaboard Air Line——
—

-

Western District

Missouri-Kansas-Texas

'

300,000 Shares

'

t

•

.

^

Su lphur Exploration

St. Louis Southwestern

100.0

'99.9

100.0

Western Pacific

100.0

99.8

100.0

99.9

100.0

99.0

Common Stock

99.9

83.2

100.0

98.0

99.9

95.2

(Par Value V P®' Share)

99.9

98.9

100.0

99.9

99.9

97.0

85.3

—

Atch., Topeka & S. F.
Chic., Rock Is. & Pac.
Gr. Wn.

99.2

97.7

100.0

99.2

97.7

Chicago & North West.

98.8

95.3

85.3

71.7

87.3

78.3

Missouri Pacific

93.8

84.0

99.3

97.6

91.8

84.3

Chic., Burl'n & Quincy

92.5

85.6

99.7

98.6

88.5

81.6

Denver & Rio

Price

$1.00 per Share

90.5

84.2

97.5

97.1

95.3

91.1

86.5

61.0

94.1

83.4

94.4

88.5

Southern Pacific

85.3

71.6

75.9

45.8

80.1

68.4

Chic., Milw., St. P. & P.

84.1

73.9

8-3.2

82.0

88.0

80.2

Union Pacific

68.8

38.9

71.4

65.1

94.0

79.8

acquisition, exploration and development of sulphur properties.

Northern Pacific

54.8

53.9

89.5

78.7

63.3

55.2

has

Great Northern
*Texas

New

&

Orlehns

on

gro«s

on

passenger

§Based

on

yard switching locomotive hours

LOS

H. W. Stead Opens

Chronicle)

member of the Los

Angeles Stock Exchange, has

.

come
-

associated

Fastnow
Seventh

-

,

v

Los

with

Company,

Street,

was

Mr.

formerly floor rep-

resentative for J. A. Hogle &
and

Co.

prior thereto was with J. R.

Williston, Bruce & Co.




sulphur lease

on

The Company

Hockley Salt Dome, Harris County, Texas.

in

a

LAKE

CITY,

L. D. Sherman

Co.

Utah

securities

business

from

of¬

&

Co.
NEW YORK 5, N.

30 PINE STREET

—

i

Wayne Stead is engaging

Y.

Telephone WHitehpll 4-5540

August 3,1954

fices in the State Exchange Build¬

ing, under the firm name of H.
Wayne Stead

Please send

Cfompany.

West

members of the

Angeles Stock Exchange.

Powell

be¬

Adams,
215

SALT

Henry

ANGELES, Cal.—H. Ken-

meth Powell,

a

'

Adams, Fastnow Company
(8pecial to The Financial

Sulphur Exploration Company intends to engage generally in the

Offering Circular obtainable from the undersigned

trains only.
in freight and passenger services.

Pacific System.

H. Kenneth Powell Joins

♦

acquired

ton-miles of cars, contents and cabooses.
train car-miles in locomotive propelled

tBased

$Based

♦Southern

BUSINESS:

NAME

I

With Jamieson & Co.
(Special to The Financial Chronicle)

LONG

P., Watts
with

me

Offering Circular concerning Sulphur Exploration Company.
.

'
..........

w.. —....

-• —•. — • — ■

»

Address

BEACH, Calif.—William
has

Jamieson

San Francisco.

become
i

and

affiliated

Company of

City.

State

&

Whittle**

fornia Company.

These Shares

ISSUE

for¬

Douglass

branch.. Walter

higherr

of

Calif.—Walter

B.

7%.
In

Witherspoon Co.

(Special to The Financial Chronicle)

first four months of this year ex¬

credit

considerable easing of

William Lower, Others

81.9

nil

low

Weekly firm Changes

households, larger families, and
replacement of old dwellings has

77.2

90.5

as

New York Stock Exchange

64.6

85.6
f

such

4%.

as

92.5

72.7

*

total

the number at that time.

*

insurance

growth in formation of additional

tapered off somewhat below

Del., Lack. & Western 1000
Erie

smaller com¬
devel¬

pressure

borrowers, there have been' cases
of

•

many

reduce

With

demand."

building boom, with the number
of starts rising steadily through
1950.
Indicating, however, that
the housing shortage is now

First Four Months of Year

many

would.

The. report said a decline in
marriages, expected to continue
to 1957, led some to think that
demand for new houses would
decrease
sharply.
However,

sources:

the report ob¬
prospective home

number of houses in the postwar

Carriers

Dieselization of Major Class I

higher than

observers thought it

level of house

them at quoted prices.

exception of those roads that had already reached

remained much

further increase in the number

Another

many years because of the large
they handled and because neither is both¬
ered to any extent by heavy grades. Presumably these two will
continue to show wide relative gains in diesel use from here on.
Norfolk & Western, on the other hand, is still showing its faith
in the coal burning engine and is even now experimenting with a

full

maintaining the high level of
housing activity, the bank's
"Monthly Review" said, include

and

having resisted the trend for

With the

Other factors also important in

households, population move¬
ment and growth, high income,

amount of coal traffic

new

study by the Federal Reserve
of
Minneapolis indicates
that the current housing boom
apparently is being sustained in
large part by availability of mort¬
gage credit on terms more fa¬
vorable to the borrower.

of

handled by steam power. Of these three both Illinois Central and
Nickel Plate have embarked on programs of gradual dieselization
after

A

Bank

,

where

to

oped

Extent of Dieselization by Class I Carriers

conven¬

mortgage loans has held
quite firm at 5%, although some
Twin
Cities
institutions
have
given preferred borrowers lower

favorable terms to borrowers and liberalization of mortgage
credit has been

on

tional

15

..........

Tel.

*.»-»«.«.« m «. •» «■.

^

also

16

The Commercial and Financial Chronicle

(508)

"We Have Gome Two-Thirds of the

Towards

programs:

\

showing of
fiscal 1954 Federal Budget was better than estimated by
$245 million. Sets forth fiscal achievements of Administration
and follows this up with a joint statement by Secy, of the
Treasury Humphrey and Director of the Budget Hughes.
the President

In statement issued July 22,

In

issued

statement

a

showing than expected in fiscal 1954 by $245 million.

better

14,135

14,257

—122

8,047

7,113

—934

70,902

.1

etc.

67,579

—3,323

All other programs—

(3)

Total budget

expend

;

This

improvement is shown in the monthly budget statement for June,

Expenditures for national security programs were $46.2 billion,
a reduction of $2.5 billion from the estimate in the Budget of last
January. Of this amount, expenditures for the military functions
of the Department of Defense were $1,404 million below the
January estimate, due to (1) greater economies in operations,
supply, and personnel; (2) the re-examination of military plans
and objectives;
and (3) further adjustments of new procure¬
ment requirements and stock levels based on a reassessment of
our
war
reserve
and equipment needs.
Expenditures for the
mutual military program were $680 million less than the January
estimate because of lower-than-expected levels of military equip¬
ment deliveries and other forms of military aid.. A decrease of
$307 million in the expenditures of the Atomic Energy Commission

largely to revisions in planned operating programs and
reductions in costs of certain construction projects. Expenditures
due

was

for

the

million

stockpiling of strategic and critical materials were $120
the estimate made last January, due to delays in

under

the

delivery of materials and in open market purchases.
The increase of $122 million in programs which are relatively
uncontrollable under present laws is the result of a number of

and down from the January estimate as shown on the
attached table. The major upward change was in the agricultural
changes

Pres.

Eisennower

Rowland

George M. Humphrey

R.

The rise in spe¬
cial issues in the past fiscal year
was considerably less than in fis¬
cal 1953, mainly because of a shift
by the Unemployment Fund from
net purchases in fiscal 1953 to net
redemptions in fiscal 1954; with
the rise in unemployment during
the past year,, the fund drew on
its

July 22,
made a

the White House on
that the Government

from

observed

Eisenhower

President

grants-in-aid;
agricul¬
tural
price
supports,

says

Hughes

by

their depositors.

'

*

Veterans' compensation
and
benefits; interest; '*

Balanced Budget": Eisenhower

a

the continued net withdrawals

uncontrollable

(2) Relatively

Way

Thursday, August 5, 1954

...

to

reserves

the

cover

of

excess

compensation payments over re¬

ceipts,

mentioned previously.

as

Marketable Issues
"The composition and

maturity

schedule, as well as the volume,
of marketable issues were altered
during the

The amount of

year.

Treasury bonds outstanding, after
increasing in fiscal 1953 for the
first time since February 1946, de¬
clined

by

over.

million.

$700

Treasury note issues, on the other

hand, increased by more than $1.5
billion

as

result of the

a

while certifi¬
by almost $2.6 bil¬

cates increased
lion

as

"The

of switches from

result

a

bonds in

up

is¬

new

offered in May,

sue

exchange offering.
change

in

"

>

maturity

the

schedule of the marketable issues
even

than the

marked

more

price support program for which expenditures were $122 million

less

was

higher; the major downward change was $141 million in interest

change in the volume of the debt

payments.

whiah reports a $3,029 billion
year-end deficit, $245 million
than the $3,274 billion estimated in the January budget.

of issues. By the
outstanding issues
maturing within five years were
$8.8 billion less than at the end of
June 1953, while those maturing
in more than five years were $11.9
billion
higher.
The
Treasury
achieved
notable success during

"We reduced the

budget proposed by the previous Adminis¬
tration by more than $10 billion, and we cut actual spending by
more than $6V2 billion under the amount spent in fiscal
1953," the
President stated, adding:
f
"We have

the

budget.

come

And

two-thirds of the way toward balancing

over

we

have

this

done

while putting

into effect

a

,tax program which will return nearly $7 Ms billion to the people.
"These fiscal achievements mean a great deal to the American
People:

•

{

,

.

"(1.) We have made possible a program of tax cuts totaling
%7xh billion.
"(2) We have halted inflation. The purchasing power of the
dollar has varied only one-half of one cent in the past 18 months.
"(3) Our people have new confidence. We are laying a firm
base for a healthy and expanding economy, for better national
security, and for more jobs for more people."
The progressive reduction in estimated budget expenditures
and deficits is shown in the following table (in rounded hundreds
of millions):
\

and

The decrease of $934 million in

expenditures for all other pro¬

of the government is also the result of many changes from
The largest decrease occurred in the Hous¬

grams

the January estimate.

ing and Home Finance Agency, which brought into the Treasury
net receipts of $614 million—$511 million more than was estimated
in

This increase in net receipts reflected mainly (1)
private refinancing of local housing authority bonds
and notes held by the Public Housing Administration and (2) in¬
creased sales of mortgages by the Federal National Mortgage Asso¬
ciation.
Most of the salds of mortgages were made subject to
January.

accelerated

commitments

by the Association to purchase equal amounts of
mortgages in the future and, hence, will probably result in larger
expenditures for this purpose in the fiscal year 1955.
The

expenditure reductions accomplished

since the January

Budget in many government programs are the result of the Presi¬
dent's Aug. 11, 1953 directive to each department and agency head
"to take every
tures of your

possible step progressively to reduce the expendi¬
department during the fiscal year 1954."

.

:

1954

1!)53

In January,

Actual

Budget receipts
Budget expenditures

Year-End

$64.8

$68.0

$67.6

74.3

77.9

70.9

67.6

9.4

9.9

3.274

progressive reduction

and deficits is shown in the

in

1954
In January,

Actual*

1953 Budget

$64.8

1954

1954 Budget

$68.0

Longer Maturities

Deficit
♦Revised
data

shown

collection

77.9

9.4
from

by

previously

70.9

contains an
analysis
of
financing in the fiscal

1954

year

9.9

published

figures

to

3.274
obtain

3.029

comparability

with

other

placing expenditures on a checks-issued basis and receipts on a
in accordance with the change in reporting instituted in February,

basis,

11)54.

|

As

shown

in

the

following table, budget receipts for the
$64.6 billion, a decrease of over $3 billion

fiscal year 1954 were
from the amount estimated in the

January, 1954 Budget.

(In millions)
In

Individual

incdme

and

resulting

the

the net increase of almost
$600 million from accrued inter¬

year, as

Corporation income taxes

Increase

( + )

Decrease.

Year-End

(—)

—1,326

10,048

—179

1,223

—22

1,245

Customs

—$999

590

receipts..

Deduct: Refunds of receipts—
Net budget receipts
The

decrease

562

2,175

—137

3,377

+389

64,550

—3,078

-

Estimated
In Jan.,

National security programs:
Department of Defense—

military^ functions;
tual
military

•

1954 Budget

Year End

*

Increase

( + )

Decrease (—)

mu-

program;




$48,720

$46,209

new

money

borrowing in

the market to such issues. Despite
this

accomplishment,

billion

the

bonds

(particularly by investors
large means)
following the

of

decline

in

yields on comparable
issues, sales of Series E
and its companion Series H bonds
set

on

maturing and called issues

a

new

record level since fiscal

redemptions
(at issue price) of these issues by
around $850 million. Sales of Se¬

arising from conversions of non-

ries J and K bonds also increased,

issues.

marketable

the

of

were

Series

B

converted by

into

This

nearly $480

year,

Investment

IV2 %

was more

private
marketable

than double

1946,

and

issues

result

will mature,

and must be refund¬

ed, within the current fiscal year.
In fiscal 1954, almost $67 billion
of
maturing
and
called
issues
refunded."

Blyfh Group Offers
3* offered
for
233,974
shares
of

Aug.

on

sale

billion, mainly as a
redemptions of matured

bonds of the latter two series. Ap¬

parently, individuals to

some

ex¬

tent reinvested the funds obtained

such

also

issues

more

advantageous

than in the preceding year,
the

notes

when

could be sold only at

a

stock, $5
$21

on

in

the

maturing F

Series

and

G

bonds

H, J, and K bonds and
larger-denomination
E bonds, while institutional in¬
vestors, which are also holders of
in

value, at

par

share.

per

—$2,511

common

price of

a

-

Proceeds of the sale will be dis¬

tributed

to

certain

Commonwealth
stock

mon

shares

as

of

holders

Edison

Co.

com¬

who had received the
a

dividend,

whose behalf the shares

and

on

being
sold.
Commonwealth, the parent
company of the gas company, had
acquired 5,892,484 common shares
of Northern Illinois, and had an¬
are

nounced its intention of distribut¬

ing the stock to its stockholders in
annual installments over a period
of

years.

The

first

thorized
of

one

on

distribution

for

each

on

Illinois
of

common

June 23, 1954.

The current

of

au¬

shares

25

Edison

Commonwealth
held

was

June 1,1954 at the rate

share of Northern

common

$1.3
of

(in¬

Treasury bills outstand¬
ing at the beginning of the year)

exceeded

but they fell short of redemptions
of these and F and G bonds by

nearly

$60.1

over

marketable

in

cluding

fractional

offering is made
shares

and

up

shares

being sold for the account of Edi¬
son

stockholders

who

elected not

to hold the gas company stock.

Continental

Illinois

National

the

Bank

&

Trust

Co.

of

Chicago,

agent bank, sold the securities to

discount; and more investors ap¬ F and G bonds but are not eligible the underwriters on their bid of
took advantage of the to purchase E and H bonds, in¬ $20.28125 per share on
Aug. 2.
opportunity to shift some of their creased their purchases of J and
Northern Illinois provides gas
funds from the Investment Series^ K bonds but not sufficiently to
in Cook County, outside the
replace all of the maturing F and
B bonds into other, more attrac¬
City
G bonds in their portfolios.
tive investment outlets.
of Chicago, and 16 other counties
"Net sales of Savings notes in
"Special issues, which are avail¬ in northern Illinois.
At Dec. 31,
able only to trust funds and other
fiscal 1954 amounted to over $625
1953 the company had 450,000 cus¬
million despite the termination of government agencies, increased in
their sale late in October.
After fiscal 1954 by over $1.9 billion as tomers.
For the 12 months ended
October, redemptions of outstand¬ a result of the noncash intra-govMay
ing issues to meet the large quar¬ ernmental borrowing, but part of.
31, 1954 the company had net in¬
terly corporate tax payments and this rise was offset by the cash
come
of $5,365,000 on
operating
other renuirements
reduced the redemptions of these issues by the
amount of Savings notes outstand¬ Postal Savings System to cover revenues of $57,361,000.
.'; -=
.
parently

Atomic

Energy Commis¬
stockpiling

of redemptions

preceding
year. The decline in market rates
during the year made the sale of

>.

Figures at

sue

tion

such conversions in the

(In millions)

.

offset

market1

notes.

in

__

than

(at is¬
price) over sales. Reflecting
renewed interest in Savings

net, reflecting not only an excess
of new borrowing over the attri¬

investors

—28

2,312
2,988
67,628

Outstanding marketable is¬
increased by over $3.1 billion

bonds

The following is a
comparison of the 1954 year-end budget
figures with the estimates contained in the Budget of last January:

sion;

year.

"During

BUDGET EXPENDITURES

(1)

excess

million

budget receipts from the January estimate
was due
mainly to (1) lower-than-expected receipts from indi¬
vidual and corporation income taxes and
(2) higher refunds.

,.

the

Ac¬
cording to the article "substan¬
tial changes in the composition of
the debt were effected during the

more

offerings and the re¬
tirement of debt with 'free' gold,
but also
a
net increase
arising

$32,434
21,483

22,809
10,227

other taxes

Miscellaneous

somewhat

in exchange

-•••

Figures at

taxes—$33,433

Excise taxes
All

~

January,

1954 Budget

•

net

its

public

bonds
rose
slightly
$200 million in re¬
demption value during the fiscal

est

sues

BUDGET RECEIPTS

in refunding
maturing and

and in confining almost all of

sues

which

than

changes in the amount and com¬

67.6

year

called issues into intermedaite is¬

"Savings

position of the Public Debt.

74.3

past fiscal

almost $19 billion of

No. III. Gas Shares

more

Treasury

$64.6

types

June,

Blyth & Co., Inc. headed a group

ing by nearly $1.2 billion, largely
offsetting earlier net sales.

Actual

$67.6

the

were

edition of the
"Monthly Review of Credit and
Business
Conditions," issued by
August

York,
In January,

of

Northern Illinois Gas Co.
The

expenditures

(In billions)

Budget receipts
Budget expenditures

~"

.

the Federal Reserve Bank of New

estimated budget

following table:

1953

~

Analysis of Treasury financing in fiscal 1954 by Federal Re¬
serve
Bank of New York shows Treasury achieved notable
success in refunding almost $19 billion of maturing and called
issues into intermediate issues, having maturities extending
largely beyond five years.

3.029

Attached is a joint statement by the Secretary of the Treasury,
George M. Humphrey, and the Director of the Budget, Rowland R.
Hughes for the month ending June 30, and last day of the fiscal
year.
The figures are subject to final audit, which may result in
comparatively minor changes.
The

~~

i

.

Public Debt Moves Toward

$64.6

Deficit

NOTE—Detailed figures in tables may not add to totals because of rounding.

Figures at

*1954 Budget

1953 Budget

>

—

In January,

the

end

-

Number 5348

Volume 180

The Commercial and Financial Chronicle

...

apMNl
■SS&KWXw.vX'iv

%V>:V:

w&Mmkm

lip

SlfS
IP#*#

iiii

To millions

of American Families who want more, need more, should have more life insurance—

nsurance

never

more

life

vised

a

insurance—Equitable has de¬

special low-cost policy. This policy

if you die and pays
higher-than-ever cash benefits if you

protects your family
you

live. You don't have to die to win!
IT'S

AN

ECONOMY-SIZE

available in

amounts

PACKAGE

of $10,000

that is

or more.

purchase this much protec¬
tion, Equitable can pass on to you impor¬
tant savings in the form of low premiums.
Because you

At 35

15% less than before
$1>000! Annual
be used to reduce your

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you

—only $23.41

a year per

dividends may

premiums.
i

NEW FLEXIBILITY.

The 'change-over'

fea¬

of this

policy are designed to fit
changing circumstances in your life.
tures

For you, and millions of Americans—
who
dreamed it possible to own

For

new

instance, if

take out the policy
at age 35, you are guaranteed the right
at age 55 to adjust
your policy so that you
will not have to pay any further premiums
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of changing to a policy that will permit
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Again—you save!
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No other policy offers such flexibility at
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an

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Assuming Dividends

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25

35

$174.60

$234.10

AGE AT ISSUE
Annual Premiuni

not to

on

55

$503.10

36.80

44.70

52.90

80.90

137.80

189.40

279.90

422.20

Average Annual Dividend4'
Average Annual Net Outlay4
4Based

45

$332.80

1954 dividend illuslrations. Dividends

are

not

guaranteed and

be considered estimates of dividends to be paid in the

are

future,

as

such dividends will depend upon future experience.

SEE THE

MAN

FROM

EQUITABLE-TODAY

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Home Office: 393 Seventh Avenue,

New York 1, N. Y.

EQUITABLE AGENCY MANAGERS AND GENERAL AGENTS IN NEW YORK CITY
J

JOSEPH V. DAVIS

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E. W. REJAUNIER

SID SMITH

225 West 34th Street

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450 Seventh Avenue

120

MONROE W. BLEETSTEIN

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MYRON H. COHEN

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393 Seventh Avenue




"

Broadway
r

.

BJdg., 42nd St. and Broadway

-

'-

-

Broadway

.

.

*

i

18

The Commercial and Financial Chronicle

(510)

Thursday, August 5, 1954
''

,

..

'

i

Continued

jrom

silver

pennies of King Offa of man running into a burning build[775] to the Currency and ing with a hose that is not conAct, 1928, is a long nected to the hydrant. He may be
story, but nevertheless a continu¬ brave but he does not have the

3

page

The Gold Standard in

ous

one.

Historical Perspective
that

the

also

Treasuries

attempt

may

enemy

(24 and 7)

fear

cie

eventualities.

Judging from the above facts, it
is reasonable to conclude that the

gold standard is "associated with
peace and prosperity."

Especially for

Gold Coin

a

national

last

greatest

nations, by

during

measurements,

economic
the

advanced

most

80

have made the

years

of the gold standard.

use

The top

Table I.

See Correlation

nations in this list of 30 had

15

from 54.6 years to 69.4
with only two nations not
reporting. All but two of these
nations, the same two, had strong
democratic traditions. During the
last 80 years these 15 had been
on
the gold standard an average
of 44 years, and during 33 of these
they had gold coins circulating.
The second 15 nations, made up
ranging

years,

if

most

pound,

livre, and is

Yet

all

not

people

the

to.

The

worse.

was

called

once

Italian

lira, of which

92 make

eral

ard

an

of only

average

and had used

the gold stand¬

on

18

gold coins

trace

can

their

which

seeking government
will devote many

weeks

to

lion of which have in recent years

results of investment,

The

ment.

been

capital, makes labor more produc¬
tive

standard

the

raises

and

2

of

London

in

sold

streets

It is also logical to assume
a casual relationship between the
circulation of gold coins and a

longer

lesser

years

the English have had

coins

in

able.3

of currency depre¬
ciation.
If gold coins circulate,
the disgrace of specie suspension
and

degree

The

vious.
fore

is

devaluation

of

government is there¬
to suspend

vide

why

reason

until

specie

its

payments

quickly

the
done

tion.

gressman

exceedingly

1931.

He

said, ".

.

From the

.

3 A.

balance

the

country

to

economy-minded
undejr

present

our

and

budget

Currencies
able in

of

Years on

Approximate
•"

fir"■

•

.
_

or

Nations

■

■»

No.

(Democratic

or

No. Years

Gold

Standard

fire¬

either

are

depreciate.

Feaveryear, "The Pound Ster¬
(Oxford Press, 1931), pp. 332-33.

precious

metals.

of 1873 Money

Autocratic)

1873-1950

Coins

Per

deemable

No. Wars
and of

Capita

Defeats

in J 950 In $

(d)

Expectancy
at Birth

amples.

*

i

Canada

1.

i

2.

•

New

4.

•

U.

3.

i

t

D

__

Switzerland

47

42

$1,635.60

2

D

3/5

53

53 5

1,586.00

_.D

1/3

44

02

893.40

i.D

2/3

862.80

D

2/5

49

49

1/4

46

46

47

.

37

3

-

.

—65.2

1949?

0

D

Zealand

1947

2

A

S.

3/5

—67.7

5.

Sweden

i

6.

Australia

i

7. United

i

;

*

819.50

1/3

48

D

1/17

45

Denmark

9.

0

D

1/3

47

1/125

47

42 6

500.70

13/14

20

20 2

438.20

38
40 6

Kingdom.. __D

10. France

D

42 6

i

619.36

37 2.6
.

r

1946-48—66.1

"

_.A

11. Venezuela
12. Finland
13.

i

D

__D

1/3

43

__D

Norway

1/80

43

3/8

50

501

3/57

30

; 02
40

...

1\- v

528.70

1948

1941-45—65.6

2 d

,0

Netherlands
Cuba

1-6.

Germany

..

A

_

1

A

(Rep) 2/5

47

A

(Rep) 1/3

10

A

17. Colombia
18.

Greece

19.

Italy

.

(Rep)

..A

1/200

pie.

Revolution

1941-45—54.6

down

to

In 1795 the franc

21.

Argentina

22.

Austria

24.

Brazil

25.

A

Spain

...

49

1/15

i

1/50

t

..A

26.

Japan
27. Turkey

f

1/17

28.

A

_

-

A

1/21

A

—

Chile

:

Id

1921-31—61.0

value.

1947-49—69.4

-

3

n.d.'

80

282.40 4

2 dd
•"

29.

Peru

30.

A

...

Philippine

NOTES: (1)

Islands

Circulation of

i

(2)

I

National

I

(4)

Conversion

|

}

i

|

]

:

|

!

I

I

I

to

of

(5)

J

'

*

*

Redemption abroad
Redeemed in

gold

based

1932-34—59.9

together the pound has lost twothirds of its gold value since 1914.

212.50 3,4

0

n.d.

it

Even

192.50 4

2 dd

1930-33—54.5

172.00

1

153.604

1

1920S

2d

1930-31—48.7

-4 d

1949-52—56.2

41

-61

;

134.104

'

I-.;

"

122.90

51

107.70 4

0

i

105.30 4

141

of
bars

n.d.

.

(7) Fraction of value 50

likely

most

in

gold

1940

n.d.

(Rep)

Men and
Inflated
cates

n.d.

No

i

■

currency

how

years: ago.

•

*

f

an

additional

on

' i

•

i

.!

"

gold standard.
»

far

17

years.

.

•

•■■■.;'■

*

•

<-1-

•

'

••

f<~

i i

'

- >

•'

••

-

...

Year

5 Frank W. Fetter, "Monetary Inflation in Chile," pp. 8-9, (Princeton Uni-.
versity Press,

II

-

1931).

/ V

-

.

*

'

'Fineness

(Grammes)

1834

26.1 Gr.

2:„_L__._

1876

Value in
.Fine Silver

"

-

23.56 Gr.

902.8

25.0

1895"

20.0

1903

20.0

1910

12.0

~

-

1

:nr::.
7__.

c

.

started

over

with

new

Fraction following indi¬

monetary unit.

American?

.975

1915
1924

_

*

'

835.0

700.0

16.70

-

*

*

900.0

9.0
<

•

22.50

900.0
'

14.00

"
-

.

_1_J
.365

.

~

720.0

9.0

- =

.

6.48—™ir_r

500.0

4.50

.1054

.1217

9.0

400.0

3.60

-1932

6.0

400.0

*2.40

1932

Paper

*1953

1__

'

-

10.80

1927

9

"
.

Paper

v

,
-

.

"

Weight

r
-•

-

5
<■■■

■ <

.

,

'

10,J

'

11

•

1.

cen-

Depreciation of Chilean Peso, 1834-1954

8
to point of repudiation and
that has depreciated.

the

ling throughout monetary history.

recently

3—

for

y

'

„

Li—:

;

free.rate.

[

.i

,

.

.

.,

,

Monetary Fund, International

Financial Statistics, February, 1954
Yearbook, 1951* 1952 eds., passim.
Tables from other reports by D. L. Kemmerer.
Calculations by D. L. Kemmerer.
\
Nations, Statistical




' 1

•

over

any other currency> wWch ex_
plains the great prestige of ster-

TABLE

J

.

'

its record

of

Wars, royal

more

s0>

turies is probably better than that

in
in

'

data.

International
United

,'i

value

;
,

<'

\

timer

It is thus

its
its

"

.

women.

•

Sources:

—37.9

n.d.

,

s

of
of

"Encyclopaedia
Britannica,"
11th
edition, ♦ Vol.
XVIII,
702
(Cambridge
University Press, 1911).
-

No.
•

1/9300
1/9300

4

Mil;

circulation.

July of 1914.

extravagances, and

'

3d

in

than
man

Charlemagne

—37.4

stable during the

very

century, the franc in terms of

was

less

n.d.

•

years

remaining

•

n.d.

-

Id

,

O*) Europeans only.
(9)

'

1

•'

19th

1930-32—53.8

<

3d

95.00 4

put in

ever

"

.

4

Although

1926-30—49.1

•

,;

currency

for

95.iO

-

0

;•
on

franc
being worth 5 grammes, .900 fine.4

gold is today worth 1/120 of what

0

few

or
•'

.

September of 1949 it was devalued
31% or to .$2.80, and it has remained there since. The pound

livres,- the

1945-47—63.8 3

<

18

1951.

dollars

(6)

■'

I

|

gold coins circulated.

Income

81

to

3

-

15

gold1 coins discouraged,

Some foreign

(3)

francs

ratio of

213.75

25

3/8 7

/

sub-

was
a

3d

o

9

(Rep) 1/12

D

•

.

was

primitive

stituted for the livre at

'

I

its

.

Id

'

French

218.40

/

5

"

of

suspending cash
During World War I

2d

3

1/100

1/78

417.40 4

14

20

1/600

the

avoided

222.60 4

0

_

of

Britain

payments" in
resumed in 1821.
The

250.60

■"

14

A

t

time

them

(1790's) the livre

402.90

49

-

23

(Rep)1/7

the

;

131

22

1/35

A

By

shillings.

S°ld bullion standard on
28, 1925: That lasted until
Sept. 21, 1931. During the remaininS 1930's- the pound - fluctuated in terms of a dollar that was
devalued 41% itself after 1933-34."
** ranged from a low of $3.20 in
*932 to $5.15 in the spring of 1934
?fter the dollar's devaluation,
hovered around $4.90 during most
of the decade, and was pegged at
$4*03 during World War. II.
In

debaseof

21

101

20

1/3

20. Union of So. Africa —D

I

of'
19

on-

0

4

—

were

311.00

-

.

1

I

series

1933-38—55.9

"

14.
15.

t

long
There

n.d.

•

2 dd

438.10

"a

was

ments."

.

Britain went

she had to suspend but returned

between 1497 and 1602, for exam-

"—66.4

the

"cash

payments.

.1928-32—56.0

"

-

Britain

•

2 dd

.

1

i

the

3

613.40

42 6

•v

1941-45—67.1

2

"

667.65

Belgium

8.

!

..-u

of

ex-

♦

in-

of

1797 and
standard coin from 1816 on was
the gold pound or sovereign of 20
shillings. For the next 93 years

French
livre
(meaning
"pound"),
predecessor
of
the
franc, began as a pound of silver
under
Charlemagne
(768-814).
French
monetary
history
from *
Philip I to Louis XV (1060 to 1774)-

1934-38—65.5

1

!

guinea

suspended

an

tended to
few

value

There have been rel-

the advice of Sir Isaac Newton. The chief coin was the gold

more

more

a

also

which

on

The

1939-44—62.7

,

the

money,

value of its money has
decline. Let us look at

Male Life

Natl. Income

The

greater

(1543-52).

more

nation has depended on irre-

any
''

the

to the gold standard by overvaluing gold relative to silver in 1717

depre-

and to

of

atively few debasements in British monetary history. Edward I
debased
silver
20%
(1344-51).
Henry VIII and his son Edward
VI debased the silver coins even

they

More-

ma.y

reasons

time

were

pennies,

penny then.

Irredeemable

almost infinite degree.

There

gold

dicates

If they are not,

redeemable

the

of

a
silver coin in the Mid¬
Ages and the chief coin in

some

redeemor

silver

of

circulation.

over,
their depreciation is limited by the depreciation of the

E.

Approximate

Gold

Using

was
dle

That

"Primrose

the

ciate for various

Fraction

the
.

gold and/or silver depreciate
possibly if all other currencies

so

I

Money Now Is

i

for

able currencies depreciate only if

Other Factors in 30 Countries

Country and Type of Govt.

pound

Charlemagne.
The penny, of
which there are 240 to the pound,

to

they must
be completely managed. Redeem-

money

'

would

inflation.

gold and/or silver

not.

are

Correlation of Gold Standard With Per Capita National Income and

'

It

Path of Managed Currencies

Con¬

a

as

Congress

and values of 10 pieces of
I have before me.
(See

Table II.)
Great Britain's pound sterling is
likewise
a
descendent
of
the

could

pressure groups

avoid

Taken

gold

taxpayers

for

Histories

Have

the

An

easier

cen-

her money has
through
one
debasement
after another as may be dramatically shown by the weights, fine-

The easiest

Federal funds.

it

Case

of

those of

as

seeking
make

wishes

half

Otherwise

money

the

next

gone

nesses

sense

extent

For example,
centuries
the
English

1932.

coin standard. Then Congress

pro¬

the

briefly on the gold standard from
1895 to 1898 and from 1926 to

a

before 1933, or of

was

for

with paper money led to a series
debasements. Chile suspended
specie payments on July 22, 1878.
Since then she has twice been

ment to restore would be the

to

and

To the

currency.

it

to

of

govern-

local

referred

"a country which

as

tury, but then wars, internal dissension, and some acquaintance

being

expenditures
and

Finance

papGr currency

pendable

no

of

of

it

of these checks upon our Govern-

depre¬

to

of

as

He

one

and would
only at the point of a
bayonet."5 Her currency was de-

take

protection

gold coin standard.

a

to

n0

admit

balanced budget, of

a

state

by

ments

an

the

coins

Gold

resistance

strong

is

of

bulk

met

deprecia¬

limited

been

past generation.

reluctant

more

has

tion

That

circulation.

important

ob¬

more

the

During most of the last 200
gold

IT

■

has

desired

measures.

the

has

tradition

the history of the English stand¬
ard
appears
eminently respect¬

living.

these

oppose

for

Against these examples

pence.

currencies, however,

r

Minister

Chile in 1824

and grants.
The taxis generally too busy earn-

payer

American

the

grains of fine silver in
1785). Chile got her independence
from Spain in 1818. The Chilean

assist-

the

than

(374.37

hours, days

obtain

the Spanish sil-

was

dollar, by law slightly

peso or

|arger

at
the

ing his living to be able

TABLE

f

for

time out and go to Washington to

are

ling"

,

gold

m

wait

legislation

those who save same
by saving. of 13s 4d, was the ancestor of that
needed for invest¬ modern German mark, one mil¬

in

and suffering defeats

wars

and

Savings

have

rec¬

currency

banks

ance

and

probably of about the
value as the English mark

ing in

The

years.

paper

those

was

system has been likened to

of only IIV2

original unit
ver

Treasury and Congress to take the

a

were

ord of the first 15 nations for be¬

age

As

Fed-

over

national

the latter part of the last century,
in
all
Spanish colonies the

Whenever

economy.

a

O'Higgins and Cochrane) had a
fairly dependable currency until

the

position

its

in the 8th Cen¬
tury
the
same
unit. And
the
Cologne mark of the Middle Ages,

shilling

or

assures

over

aver¬

(two

sizable

early immigraEnglish, Germans and Irish
heroes are named

yon of

history hint. They had a hook-up with
through the ancient Venetian lira economy-minded orsound-moneyof the same origin.
French sou, minded Congressmen.
Italian soldo, and English solidus
Under present day
conditions
pound,

well, as
A. E. Feaveryear pointed out in
his book on "The Pound Sterling"

an

1933

that they will not lose

resist this tendency.

years

no sus-

better

a

of the stronger Latinnations, perhaps be-

one

0f

cause

spending or depreciation of
dollar,
they
could
redeem

Hieir

devalue ciation.
that
A few years ago a member of
those occurrences are avoided, the
Congress explained candidly why
money is more stable and depend¬ the
gold coin standard was a help
of nations on which data could
able.
Thus saving is encouraged, to
economy-minded legislators. He
readily be obtained, had per capita
capital is increased and the stand¬ said that in business it is profits
national incomes in 1950 ranging
ard of living is improved.
that count. Anyone suggesting to
from $95 to $282.
Male life ex¬
Of course over a long period of a merchant that he sell a certain
pectancy ranged from 37.4 years
to 63.8 years, with six nations not time any currency may be ex¬ product at a loss would probably
receive scant attention. In politics
reporting. Only two of these sec¬ pected to depreciate some.
But
ond
15
nations
had
consistent the stamina of a people and the someone proposing a measure that
democratic traditions. During the quality of their government may will cost a Congressman votes will
last 80 years these second 15 na¬ be measured by how well they also probably receive scant atten¬
tions had been

Before

in

enforce

the

a

direct descendant
The

a

drive.

were

they became disturbed

of the libra of Charlemagne.

and

a

capita national income in 1950
ranging from $311 to $1,635, and
male life expectancy (a good in<dicator
of
economic
progress)

per

the

to

relationship
standard

of

case

villa.

to

ers

Chile,

American

the

hook-up with the taxpaygive him strength in his

economy

French franc, which now goes 124

between
the
gold
a
high per capita
income.
A
dependable

currency

Standard
The

the

suburban

a

tamed

unfurnished

other currencies is far

logical to assume a casual

It is

in

do

to

job. The Congressman has

100-acre

scarcely pay a

now

connections

necessary

recorded

Book

*

rental of two

rooms

repudiation.

Standard,

Gold

Reasons for a

only moderately

There
was a big difference, however, in
the matter of currency deprecia¬
tion.
There were only three bad
inflations
among
the
first
15
(France, Belgium, Finland) and
no
repudiations, but there were
eight bad inflations among the
second 15 plus five instances of

such

prevent

to

payments

holding, will

(29 and 11).

15

the second

their gold or create a
panic. Governments suspend spe¬
acquire

Domesday

week's

favorable than the record of

more

to

was

The English pound,

...

the year's rental of a

as

for this depreciation,

Notes

which

withdrawals.

depressions have been responsible

Mercia

Bank

f

*

•

passim.
,

Collection
.

*

Originally
and

,

in

in

made

possession -of
for

Professor

-

W.

.0045 (Dec.)

____

Professor
E.

.0603 (Dec.)

-

D.

L.

Kemmerer

Kemmerer,

of

Financial

the

University

Advisor

to

of

Chile

Illinois.

in

1925

1930.

♦December

1953 free rate.

■

^

i

/

Volume

Number

180

5348

...

The Commercial and Financial Chronicle

not

Spain stands in rather, striking
England. The treasure
house of Europe for over two cen¬

were

built.io

Yet

turies, she has not had the moral

political

reasons,

fibre

the controls.

contrast to

in

to

70

the

new

Specie payments
Repeatedly during

resume

years.

late

the

1920's

ernment

its

intention

of

resuming but it was never able
to put its financial house in suit¬
able

order

goal.

so

achieve

to

as

this

longer has the

It had to face the humilia¬

centive

modelled

system,

has steadily depreciated.

Wars

•

the

on

depreciation

and

they

certainly

have been responsible
great amount of it.
Let let

a

look

us

tions

at

that

suffered

comparison

a

have

fought

of

na¬

and

wars

defeats. but

some

have

maintained the gold standard and
used

gold

coins,

with

equal

an

number of nations that also fought
wars
and suffered some
defeats
but

did

not

maintain

the

standard. It reveals that the
tries

that used

fewer

Lack

of

of

the

had

years

record

important

causing

on

as
subsidizing
nationalizing basic in¬
dustries
(government
generally
operates businesses it owns at a
loss, so that is a disguised form
of subsidizing the consumer).
As
prices, wages and income rise, the
taxpayer's income is thrown into
higher tax brackets and a larger

housing

or

part of it is taxed.

generally dic¬
shall be
spent.
It is not just coincidence
that Europe which has seen the
how

worst

the

in

seen

the

Currency depreciation is a
strong factor in making a country
socialistic
or
fascistic.
It
puts

responsibility in the hands

for

"No

Economic

Vacancy"
Education).

infla¬

most

half century has
sharpest trends in

toward

France

tended

fascism

and

toward

or

Britain

socialism;

Germany, Italy and Spain toward
On

fascism.

the

other

hand, the

correlation between stable money
and democracy, capitalism, and a

high standard of living is strong.
is brought out in Table I.

This

Latin

American

had

nations.

depreciated

a

Brazil

currency

a century; Chile's cur¬
has been depreciating for
all but nine of the past 75 years,
Argentina for all but 19 of the
past 82 years, Peru for all but 16,

rency

Colombia

for

all

but

livia for all but four.
ain's

pound,

the

once

11

and

Bo¬

symbol

reliability, has depreciated

of

more

in the

past 40 years, during which
Britain
has
been
on
the
gold
standard only six years, than it
did in the previous two centuries.
And

the

United

States,

which

abandoned the gold coin standard
in 1933, has had more enduring

Notice that the countries with the

depreciation of the dollar in the
last

democratic

more

the

that

ones

most

traditions

have

currencies
use

of

made

the

gold coins.

more

is

a

currency

habit

that

depreciation.
is

difficult

than

it

has had

time

since

at

Revolution.

the

Most of it took place, not

after World War

happened
we

to

In colonial times the gov¬

break.

any

but,

(7) Currency depreciation leads
to

years

are

had the most

and

15

during

did not have

dollars

into

a

during,

II.

It has

period when

convertibility of

gold

coin

in

the

General Mills' 26*

Currency depreciation tends to
effects

that

v

A full gold standard involves a
willingness to redeem one's money
in gold at home as well as abroad,
to

redeem

well
deem

it

for

as

it

for

individuals

central

in

gold

(1)

It

quid

within reach of the
as

well

average man
in gold bars which only

as

the rich

can

There is

afford to have.

one

attitude that char¬

acterizes almost all of the 22
of

discourages

saving,

of

at

a

strong and genuine fear

that the resumption will not suc¬
ceed.

Treasury

officials and
they will be
swamped with such great demands
for specie that they will not be
bankers

able

fear

to

meet

that

them.

is

It

standable that the fears

under¬

great¬
whose
responsibiliity it is to meet the
demands for specie. Yet the fear«
est

the

on

in

have

part

of

almost

are

those

every

instance

been exaggerated. That was true,
for

example, in Great Britain in

1821, in the United States in 1879,

Continued

United States.

on

page

year

steady growth

savings.

Why
lay
aside
money in a bank, buy insurance,
participate in a building and loan
fund, or invest in government or
corporate

bonds if it

seems

very

"General

Mills has

a

service to the public. But we cannot
and will not rest upon our past

smaller in the years ahead.

The future is

(2)

wipes out past savings.
cynically said in France in

that

1926

of

ways

there

losing

were

modest

a

fortune
In

addition to spending it on women

gambling there

putting it
ip "choice family investments."6
A 3% French Government bond,
worth

87.12

Was worth

gold

which

1926

was

francs

in

the

was

same

historian of the franc,
writing in 1933, estimated that the
loss of real wealth in France
inflation

from

hillions.3
tween

In

amounted

our

1939

and

to

the

1952

dollar

lost, on the average, 5% of its re¬
maining value each year, and
worth in

was

what
An

1952

about

52%

been worth

in

$483,067,177

11,188,853

11,468,171

we are

the

creating

6,626,342

Earnings reinvested
new

4,479,737

4,841,829

Stockholders' equities

120,646,000

116,160,000

products and processes upon

which progress

and employment de¬

pend. Through financial planning, we
are

6,709,116

New food

Expansion

processing plant in Toronto, Canada"!

laying the groundwork for future
New Products

growth. Through

a

planned personnel

program, we are

developing

management team

a

Betty Crocker Angel Food Cake Mix

]

sound

J

fof tomorrow's

Sugar Jets
New livestock and poultry feeds
New chemical

products

Cel-O-Sorb Surgical Sponges

operations."

f?

fJ.

0.71
for wear

President

and tear

of

1939.

o.9*

E

and

bond costing $75 in 1942,
supposedly paying the holder

the

at

had

it

$487,587,179

$50

country, be¬

own

"Through research,

as

Eleanor Dulles,

financial

1953

Dividends

1913

only 47.20 paper francs

6.88 gold francs.7

net

frontier.

three

now

instead of only two as before.

ih

1954
Total sales

record.

It

was

or

our

ENDING MAY 31

Earnings

likely that the purchasing power
of
these
savings
will
become

It

YEAR

rich history of

of

rate

redeemed

at

when

2.9%

10

$100

it

for future

development'

was

later,
him back only the

actually paid

years

1.4<

•purchasing

power equivalent of
$61.50 in 1942 dollars. He got no
•interest -and
lost
$13.50 of his

principal.9

•'

(

to

v

or currency

ciation,

if at all1
widespread

such
that

the

called!

depre¬

repaid,

stockholders)

3.0*

•

(3) Inflation

for taxes

causes

dissatisfaction

government

be

may

to institute rent

con¬

trols, price controls, wage
trols, and even interest rate

con¬

upon

trols.

con¬

Most

warring nations ex¬
perienced most of these to some
degree

the

in

Wars.

Britain

last
is

two

World

just getting rid

6f price controls.

We did

not get

fid of interest rate controls until
1951.

In France the rent

imposed in 1914 remained

controls
on

dur¬

ing the inter-war period

and

the end

French

rentals

World War

of

were

only 1

tenant's

average

or

II

by

2% of the

income,

houses

'

i
•

6 New

VIII,
,

York

"Times,"

May

30,

1926,

1.

p.

7 Reference

Service

on

International

For

an

illustrated annual report

Affairs of the American Library in Paris,
"France

(Paris,
.

}

and

1926),

Her
p.

Capacity

to

Pay,"

113.

8 E. L.

Dulles, "The Dollar, The Franc,
and
Inflation," (MacMillan, New York,
1933), p. 68.
\
9

My

sumer

How the sales dollar

of General Mills' last fiscal year, write

calculations

based

on

prices.




BLS

con¬

Public Relations Department,

General Mills
Minneapolis 1, Minnesota

1

cases

resumption that I have studied.

That is

are

the form of money or li¬

as

banks, to re¬
coin which is

harmful.

least in

*

Financially Strong

in

wars

a

Full Gold Standard and Be

Great Brit¬

highest standard of living and the

It
deJouvenel,

the

last

the

years

have

money

and

wars

stable

(6)

money, were unable to give it up.
This has also been true of many

10

The Best Was Is to Resume With

paper

depreciation.

currency

several

government

colony,

discovered

for close to

strings

purse

tates

also

additional respon¬

govern¬

they

once

the

socialism.

the

pass

ernments of almost every

has

Government

if

to

ment. This gives the government
greater power, for he who holds

taxes higher.

rise

thus

and

through the hands of his

tion

sibilities, "such

10 B.

taxes

recent

has to take

more

in

depreciation

What Currency Depreciation Does

have

in¬

taken

will, is

you

than

the

of the government, it causes more
of the individual's income to be

Currency

national' (Foundation

or

or

to accomplish.

expenses
••

means

worse

depreciation.

fibre

character, call it what
more

coun¬

much

currency

moral

gold

gold standard

a

makes

French

often blamed for most

are

currency

for

(5)

The Spanish currency, sup¬

posedly

government, for
dared not repeal

sometimes has to step in and sub¬
sidize
what
private
capital no

tion of admitting it dare not try in
1930.

the

(4)
When
economic
controls
discourage production by private
enterprise,
then
government

Spanish Gov¬

announced

being repaired, and few
were
being

apartments

(511)

was

divided last

yea^

20

201

The Commercial and Financial Chronicle

(512)

Continued from page

example in almost everything that

quickly and easily. Condi¬
as propitious as they are
likely to be. Fears that resump¬

County, Texas. On March 31,1954,

followed other financial leaders in

tion will fail have in the past been

the past who returned to

19

greatly

sidi^y, Malheur Home Telephone

do. They would

we

low

The Gold Standaid in

Historical
in

Italy

in

1833,

party." When the New York
Suh-Treasury opened at 10 o'clock,
with piles of

fore

It

about

before noon.

came

of

these

different

the

with

Treasury.

thing has happened elsewhere too
on resumption days. It is the rule
rather than the exception.
The study of 22 gold resump¬
tions strongly suggest that when
resumptions are unsuccessful, it is
because of demands for gold to
settle adverse foreign balances. It

do

to

most

Federal

of

idea

the

to

from

tions

in

unofficially
then announce its
do
so
officially.

gold

while,

a

to

coin

France did this in 1875 and did not

inde¬

an

resume

officially until Jan. 1,1878,

pendent Federal Reserve System.
Conditions will probably never

by which time the newspapers
hardly paid any attention at all to
absolutely perfect for a return the official resumption. France did
to the gold coin standard.
They it again, so far as foreign redemp¬
are
more
favorable ,to us
now tion
in gold was
concerned, in
than most countries in the past 1926-28.
We did it briefly
be¬
have had
them when
they re¬ tween Dec. 17, 1878 and Jan. 2,
be

likely to arise from heavy

♦^demands for coin at home. In this

connection, it is noteworthy that
have stood ready to redeem

other nations are very likely
Other na¬

now,

followed

generally

have

their fiancial leaders in the

intention

is sympa¬

Randolph Burgess. He
thetic

for

is

operations,

Reserve

exaggerated.
They
are
exaggerated today. Once we re¬
turn to a full gold standard, and
we are more than half way there
to follow our example.

(2) The Treasury might redeem
dollars

Treasury-

with

are

not

press.

'

has

tions

past.

turned to the gold standard.
The 1879.
the ex- United States was emerging from
(3) Congress might set a date at
<*iange rate reached the gold ex<- a long depression in 1878 before it some time in the future and an¬
port point, for the last 20 years. resumed in 1879; Japan was in a nounce the nation would resume
We have done so without question depression in 1897 and had small at that time. Great Britain
did
and
without
difficulty. All we gold reserves; Italy had an ad¬ that in 1819, choosing 1823 but
we

dollars in gold, whenever

the

in

County,

telephones

in

For

the

three

months

ended

March 31,

1954, the company had
total operating revenues of $38,580,062 and net income of $3,517,809, equal to $1.80 per share. For
were

$6.89

was

per

with 1952 operating

rev¬

$126,729,118 and net in¬
$10,169,486, equal to $6.82
share.
j
of

come

and accrued
to/ yield 2.95%.The
group won award of the issue at
competitive sale on Aug. 3 on a

$144,671,313 and net
$12,757,329, equal to
share.
These figures

of

enues

By Underwriters

per

•

•

Robert J. Brandt With

'

Pacific Coast Sees.

1989, at 101.086%

(Special to The Financial Chronicle)

,interest),

BEVERLY

HILLS,

Brandt has

Robert J.

Calif.
become

—

as¬

sociated with Pacific Coast Secur¬

100.66%.

of

sub-

Oregon, had 5,135

compare

Net

tele¬

its

and

service.

enues

Debentures Offered

bid

1,438,720

service

Co. operating in Malheur

income

1,

had

company

phones

the year 1953, total operating rev¬

Mountain States Tel.

A syndicate headed by Halsey,
quietly that dollars were redeem¬ Stuart & Co. Inc. on Aug. 4 of¬
able in gold coin again. It may be
fered
$20,000,000
of
Mountain
questioned how successfully this
States Telephone & Telegraph Co.,
could be "played down" in the
35-year 3% debentures, due Aug.

The

our

reached

was

sume

one

are

another.

More gold was deposited that day 'The present deputy of Secretary
than was demanded. This sort of of the Treasury Humphrey, who

is less

Some

ments.

Federal Reserve Sys¬
central banking sys¬
was a half hour be¬
tem, regained its independence in
1951
when an "accord"
appeared, and only 'March,

dozen

a

four ways

$15 billions in mid-

by the experience of
past, there are basically
of resuming specie pay¬

markedly

gold on view to meet
(6)
rush and 15 clerks to
out, there was just one tem,

another

the gold

(1) The nation might slide back
onto the full gold standard, rather
satisfactory but it is improving. unobtrusively as it did in 1919
Some 46% of our marketable and Then it was the export of gold
convertible securities have more that was
permitted again. This
than three years to maturity; some time
it would
be
domestic re¬
51% of them are held outside of demption (hat would be permitted.
commercial and central banks.13
It
could
simply
be
announced

"dull

■customer.

Perspective

Of the six conditions men¬
tioned
above,
our
public debt
situation
is
probably the least

porting on the resumption that
took place officially in the United
Stales the day before. It was a

it

Judging
the recent

(5)

J>aily Gazette" of Jan. 3, 1879 re¬

the expected

us

1953.12

1924, and in France in

hand

probably fol¬
in this respect too. They

standard.

amounted to

Sweden in
1926.
Typical of the situation is the
front
page
of
the
"Cincinnati
In

Thursday, August 5, 1954

...

the sale of ities Company of San Francisco.
applied b,y Mr. Brandt was previously man¬
toward repayment of ager of the local office of Hannafrom

proceeds

the debentures will be

the company

from

advances

parent organ¬

its

American Telephone &
Telegraph Company.
These ad¬
vances, which are expected to to¬
tal around $23,000,000 at the time
ization,

the

ford

thereto

Prior

Talbot.

&

he

with Paine, Webber, Jackson
Curtis.

was

&

.

..

With Reynolds & Co. .>

proceeds are received, are ob¬
conformity with an es¬

tained in

*

(Special to The Financial Chronicle)

tablished

practice Of the com¬
SAN
FRANCISCO,
Calif. —
and are used for general Julius J. Fulton has become af¬
corporate purposes, including ex¬ filiated with
Reynolds & Co., 425
tensions, additions and improve¬
Montgomery Street. In the past
ments to its telephone plant.
he was with Merrill Lynch, Pierce,
The debentures will be subject
pany,

the easier half verse trade balance in 1902 and then actually resumed in 1821. We
job, stand ready so did Sweden in 1924. Yet all re¬ did that in 1875, picking Jan. 1,
Fenner & Beane.
to redeem dollars in gold coin at sumed successfully.
1879. France also did it in 1875, to redemption at regular redemp¬
It is not necessary for one na¬
tion prices ranging from 104.086%
home on demand. This should not
choosing Jan. 1, 1878.
be difficult.
tion wanting to return to the full
to par, plus accrued interest.
Walston Adds to Staff
(4) The Treasury might make a
It may be asked what are the gold standard to wait for others.
The Mountain States Telephone
definite announcement, with little
(Special to The Financial Chronicle)
economic prerequisites for a suc¬ At least it has never worked that
& Telegraph Co. is engaged in the
preparatory discussion that it was
SAN FRANCISCO, Calif. —Jo¬
cessful resumption of specie pay¬ way in the past and no disasters
business of furnishing communi¬
forthwith
redeeming dollars in
ments.
cation services, principally tele¬ seph A. Brimo has been added to
Again,
judging by
the have taken place because most na¬
gold coin when requested. Great
studies of 22 cases, most of the tions did not wait and go back
the staff of Walston & Co., 265
Britain
returned
to
the
gold phone service, in Arizona, Colo¬
following conditions are desirable, onto the gold coin standard to¬ standard in 1925
rado, Montana, New Mexico, Utah Montgomery Street, members of
thus, Canada did
the New York and San Francisco
although it has been rare that all gether. The idea that that is
likewise in 1926, and Belgium did and Wyoming, in Idaho South of
were present.
sential seems to have grown up
Stock Exchanges.
in 1926. None of them was re¬ the Salmon River, and in El Paso

have left to

is

do

of the resumption

(1)
trade,

in

favorable

balance
of
unfavorable
owe.
It is hard to maintain gold
payments if large amounts of gold
A

the

Yet

1930's.

a

tabulation

of

turning to a gold coin standard,
adopting the gold standard however. Since we
already re¬
before 1914 and again in the 1920's
deem our dollars in gold abroad,
shows that generally the countries
and have only to redeem them in
returned to the gold standard in
are
constantly drawn abroad to
gold at home, this should not be too
ones and twos.
Only occasionally difficult. The chief
settle an unfavorable balance.
problem would
did they return in larger clusters,
be keeping secret the minting of
(2) An approximately balanced
and that was after the trend was
the gold coins which would have
budget. This is to inspire confi¬
well started.
dence so that people do not fear
to be gotten ready before-hand.
In the past the world's already
further inflation.
Secretary of the Treasury John
recognized financial leaders have
(3) Economic prosperity, or at taken the first steps to return to Sherman said in the 1870's, "The
least the absence of a serious de¬
the gold standard. Then other na¬ way to resume is to resume." By
that he meant that there comes a
pression.
tions
have
followed.
As
John
or

a

not

nations

too

time when

■

-

(4) Adequate gold

•ample

balances

reserves

Parke

foreign

of

and
ex-

United

Young,
States

economist

the

for

towards

Commis¬

Senate

one

his

must

goal

drive

ahead

not

and

lose

momentum
by
worrying
over
Inquiry
minor details. In this connection,
(5) A satisfactorily funded pub¬ put it in 1925, "Europe for several
the
earliest
possible announce¬
lic debt, as much as possible in years has been waiting for Great
ment that the nation was again
the hands of the people, and most Britain to act, and did not desire
to do much in the way o( currency willing to redeem dollars and de¬
off it not coming due soon.
reform until Great Britain set the posits in gold coin might be the
(G) A central bank relatively
best method. A particularly suit¬
example."
After the Napoleonic
independent of the Treasury.
able time could
be
chosen.
In

sion

<taange.

of

United

States

meets

most

procession
back
to
hard
money. They were France, Austria

requirements today. Tak¬
up in the same order as
have been mentioned, this

ing them

and

Our

favorable
m

Germany

balance

and

has

of

trade

The

been

is

budget

is

Britain.

shifted

In

the

never

was

from

1870's

silver

balanced

lowed these leaders until 41
on

(3) The country is not in a del&rcssion. The economic recession
1949-50

-and

was

considered

mild

the

present
"dip" is even
Unemployment reached
45 millions in January, 1950 and
milder.

averaged 3.4 millions in 1949. Un¬

employment

was

2.4 millions this

January.
very

Personal income is still
high.

(4)

American

gold

reserves

War

I

the

United

of

suitable

the

above
resuming is better than
resuming at all.

the

Professional Investment Man

a

Compromise With Amateur Advisors?
Every so often you will run in¬

steps
firms

are

where

case

a

taken

of

one

your

proposals

your

to

friend whom they believe is

some

competent to advise

them

on

the

of

ance

a

stable

of

one

your

of

safety,

greater

and

conservative evaluation of

more

you

have made to

lialf

the

to

money

stable

If

there

is

subject that

any

is

of 1933 just before we left
gold standard (9.5%).n Our

investments abroad

are

Reserve,
"Banking
and
Monetary Statistics," pp. 34, 544; "Fed¬
eral Reserve
Bulletin, 1054, p. 161,




willingly

of the highest stand¬
living. Others follow our
one

of

12 U.

S.

Department

13 "Federal

Reserve

of

14 New

IX,

p.

3.

,

York

Commerce.

Bulletin,"

179.

p.

"Times,"

•

less

3,

trust; the money that
saving. They will trust it
if they may have the stan¬

dard

coin—gold—any

time

want it,

1925,
-

are

most

•

1954,

........

May

un¬

they

they

ards

large; they

11 Federal

have

;

-

The United States

can

they

has

been

much

so

harm

done to

have gone to
their friends, etc., for investment
advice, that it is a wonder that
any
intelligent business or pro¬
fessional man would place both
people

many

who

friendship, and their reputa¬

their

self styled, advisors to cope

tion, in jeopardy by going out on
a
limb and prescribing a course

it

is

the

dividual
ments
at

of

one

as

any

the

to

that he

with,
advising any in¬

or

best

she

particular

invest¬

should

time.

I

own

have

just finished reading a short anal¬
ysis of company earnings made by
one
of the leading statistical or¬
ganizations and investment ad¬
visors in this country.
This re¬

and

we

a

far too complicated for part time,

money generally have the
responsibility of world leadership.
port goes into the effect of the
deposits
highest standards of living. That
(adjusted) were higher in Decem¬ .We have over half the world's is
repeal of excess profits taxes on
because high standards of living
certain
ber, 1953 (11%) than during the gold, we produce almost half the
company
earnings,
also
world's steel, we are by far the are built on lots of capital; capital accelerated
l>rosperous
period
of
1923-29
depreciation and its
results from saving, and people do
(7.8%) or than during the first- strongest nation industrially, and
resulting variations in net per
not save and invest

relative

investments as

of

proposals.

money.

gold

studies

their

prelude to an analysis of each in¬
dividual's needs as to balance in

own

them.

Such a
involves re¬

daily

the account between variables and
Sometimes it is a com¬ stable assets (bonds, preferreds,
mercial banker, a trusted friend commons,
etc.)
and such other
who
has made
money
in some fundamentals as proper industry
business
completely
separated diversification. Accordingly, I am
from
the profession
of invest¬ amazed to see with what temerity
ment analysis, or quite often it is certain people, who do not have
a
lawyer., This is done in good the training necessary for such an
faith
by your client.
Possibly analysis, rush right in and tell
helpless,
but
trusting,
they feel that they are being ex¬ some
investor,
that
they
tremely cautious and sound in so- would-be
should make a certain move or
doing, because they have the er¬
not make it.
roneous
Quite frankly, there
impression that such a

of

soundness

a

States

competent investment
working out in

that

client has

to

assurance

large nation to return full gold standard
standard, Germany demption of dollars in gold coin
went back in 1924, Great Britain at home as well as in gold abroad.
in 1925, France returned de facto Gold coin redemption provides a
in 1926 and legally in 1928. Again democratic
gold
standard,
one
most other nations followed the open to the average man, not one
example of these leaders. By 1931 whose benefits are largely limited
to financial institutions or wealthy
47 were on gold.
Today the United States is by persons, which is the case with
the gold bullion and the gold ex¬
far
the
strongest nation finan¬
cially. We have the burden and change standards. Nations with
to

Should

A full gold standard, financial
the proposals
history shows, is the best assur¬

were

the first

was

By JOHN DUTTON

double check will give them more

Conclusion

the gold standard in 1912. After

World

less

a

any

of

ways

not

at

But

of wars). Other nations fol¬

cause

within about 5%, or at worst 10%;

virtually bal¬

place

moment.

to

*

1fee "cash budget" is
anced now.

off

take

off gold,

gold, France and the United States
to
the
strongly returned
gold standard
from depreciated currencies (be¬

for many years now.

(2)

Great

Great Britain

Is the situation.

(1)

contrast,
choosing
a
time
six
months, a year, or four years
ahead might cause resumption to

the

off those

they

Silver

and

the leaders of that time led

wars

The

Gold

Securities Salesman's Corner

of action that could lead to grave

their

unsuspecting

You wouldn't go

to a doctor for

losses

for

friends.

legal advice if you had a serioua
nor
would you
lawyer if you were very
ill and needed medical attention.

legal
go

If

to

difficulty,

a

legal

need

you

advice

you

would, go to a 'lawyer,: if you . be¬
come sick
you would get a good

doctor,
ment

if

and

advice

you

go

to

want invest¬
a
competent

share, and then takes up the vari¬ full time investment man. Make
ous
complex
relationships
be¬ sure you have a good man, then
tween net percentages to dollars follow his advice. -That's the way
of sales 'for different companies to talk to your customers when
in

competitive lines1 of

today re¬ These

are

basic

and

business.

elementary

they
stray.

suggest Hhaf they

'

.

/Yr-r

want to

Number 5348

[Volume 180

The Commercial and Financial Chronicle

...

Continued from first page

/

(513)

odd things about his operations and their place in the

..

and

economic
t

[As We See It
increased—so that the faithful

can

be

taxpayers bear the expense of getting rid of

huge amounts of unwanted farm produce that may emerge
in the process. Of course, unemployment benefits are never
high enough in the eyes of political planners such as these,
and so-called minimum wages are always in need of up¬
ward revision. It is conceded by implication at least that
the present Administration has done a good job in offering
inducements to the public to coin all sorts of things into
money, but this group now insists that the public is entitled
to some sort of guarantee that the good work will be kept
up indefinitely.
Lower Taxes,

Once upon a

wells and the

numerous

a sense,

individuals who had rather live

the government than to adjust them¬
the economic situation of which they are a part!
of

Another
now

the

popular

misconceptions

prevailing

often in the past

as

of

abundance
somehow

money

is the notion that a vast over¬
and vanishing interest rates are

general economic wellbeing. Many popular leaders through - many ages have
taken this notion as the text for many economic homilies.
It was not, however, until the New Deal appeared upon
the scene that the doctrine was so generally and so effec¬
tively put into practice. It failed to work any miracles
during the 'Thirties, of course. In point of fact it succeeded
not at all except to "bail out" many who had unwisely
committed themselves during the orgy of the 'Twenties.
But the doctrine has taken hold deeply and widely among
always

conducive to

elements in the population. One is obliged to wonder
there is ever to be any real awakening in this matter,

many

if

until disaster has overtaken

the embattled farmer—since he is the cornerstone of

PHILADELPHIA, Pa. —Laird,
Meeds, Lincoln-Liberty

Bissell &

stock

announce

has .become associated with

these

proposals would for a time at least make life much :
easier for the farmer, give him many more of the comforts ».
of life, and relieve him of a good deal of the drudgery,
and, what is most important of all, give him a kind of !
security from economic ills whether or not he plans his \
operations with wisdom and foresight. It would be asking
a
good deal of a human being to expect him to look with :
cold, dispassionate eyes upon schemes which seem to do ;
all this for him, or to ask what the effect upon
the country will be.
1
And

population

are

a

ciated

with

a-■

t>

is

guson

L.

Halsey, Stuart & Co. Inc. and
on July 30 offered $25,000.000 of Illinois Central RR.
first
mortgage
26-year
3*4%
bonds, series G, dated Aug. 1,
1954
and
due
Aug. 1, 1980 at
99%%, to yield over 3.27%.
Is¬
and sale of the bonds

subject

authorization

to

Formed in
HOUSTON, Tex.—Magill, Ware¬
&

Co.

sincerely victims of this hoary old illusion, but one
must not overlook the fact that it, too, helps to keep the

general program of giving all things to all men on some
government desirous of spending
almost without limit can feel much surer of finding the

is

offer¬

pany

the

for

exploration

on

a

ests, the repayment of a loan, the
acquisition of additional proper¬

ties, and for other corporate

pur¬

;

:,,

19, 1954, for the purpose of ac¬
quiring sulphur interests in cer¬
The bonds will be* redeemable
tain properties and to engage gen¬
at the
option of the company at erally in the acquisition, explora¬
prices ranging from 1027/s% to tion and'
development of surplur
par and at par for sinking fund
properties.
The company has ac¬
purposes.
quired a sulphur lease on Hock¬
The net proceeds from the sale
ley, Dome, near the town of Hock¬
of the bonds iWill be .applied
ley in Harris County, Texas.
The
toward the redemption on Sept.
lease comprises in excess of 7,000
1, 1954 of all of the company's
acres, with 2,200 acres situated on
$25,000,000 consolidated mortgage the
Hockley Salt Dome.
30-year 4%%
bonds, series D,
June

due

1982

1,

at

plus

105%

interest.

accrued

The Illinois Central RR.

of

or

debt.

ceivership
required

interest
has

It

or

to

on

never

its

in
or

have

re¬

burn

been

Park

capital

&

Mr.

Inc.,

Executive

July 29.
the

for

J. F.

Vance, Sanders & Co., 11 Dev-

Santa

Street.

customers

t

for

gain of

electric

if it has already tinkered with the

banking system in such a way as to make an indefinite
increase in the supply of funds seem almost a matter of
routine. The struggle for independence of the Federal Re¬
serve, independence, that is, from the Treasury, has ended
in both becoming enslaved to an economic fallacy at least
as old as John Law. It is this that Mr. Keyserling and his

services

I.

The

Government
for

Puerto

Development
Rico

is

Authority.

With Allen In v. Co.
(Special to The Financial Chronicle)

BOULDER, Colo.
Hackstaff
with

has

—

Richard A.

become

connected

Allen

Investment Company,
Fourteenth Street.

1921

Gibbs & Co. Adds
WORCESTER,
P.

Brunell

has

with Gibbs &

Mass.

—

become

affiliated

Co., 507 Main Street.

associates wish to be assured will continue

The

June 29, 1953

June 28, 1954

June 29,1953

.

$33,097,583

$24,811,647

$59,038,163

$40,952,699

.

9,378,565

18,806,842

17,228,812

28,583,105

1472,567

1,581,986

2,782,615

2,632,461

Other work and

3,981,067

2,565,329

6,403,045

5,318,661

$47,729,787

$47,765,804

$85,452,635

$77,486,926

Shipbuilding contracts

.

*

Ship conversions and repairs

unthinking may well ask why these suggestions
seriously. Why, if they are so obviously unsound,

should there be any

great danger that they will be ac¬

operations

.

.

Totals

cepted by the American people or adopted by the govern¬
ment of the United States? Can it be that the rank and
file of the

people of this country are not able to recognize

the fallacies and indeed the serious hazards

of action
in the
not

as

manner

merely,

heals

courses

here

or even

the hurt

of such

proposed? The answer is to be found
in which these proposals are laid out. It is

are

chiefly, that the jingle of the guinea
least it is not so

that honor feels, or at

At June

Estimated balance of
the

period

Number of

.

.

.

$221,564,875

$248,687,120

,

*

#

14,811

16,263

income from-long-term shipbuilding contracts on the
vary

from the billings

on

percentage-of-completion basis; such income for

the contracts. Contract billings and estimated unbilled balances are subject

possible adjustments resulting from statutory and contractual provisions.

as




At June 29, 1953

.

.

period will therefore

.

so

,.!The farmer, for example, has long been

28, 1954

major contracts unbilled at the close of

employees at the close of the period

The Company reports
any
to

this old adage seems to suggest. It is rather that
many are placed in a position where they can not ap¬
proach the program with a dispassionate mind.
simple

Six Fiscal Months Ended

June 28,1954

Hydraulic turbines and accessories

indefinitely.

They Must Be Taken Seriously!

be taken

Major Contracts and Number of Employees
Three Fiscal Months Ended

July 28, 1954

told various

S..

-

•»

Richai^

Quarterly Statement of Billings, Estimated Unbilled Balance

Billings during the period:

fiscal

agent for the Puerto Rico Wafer

Newport News Shipbuilding and Dry Dock Company
of

1,14*

during May, 1954, increasing the
total to 227,063
compared with
210,515 a year earlier.

sort of feasible level. A

funds for the purpose

pre¬

,

net

a

(Special to The Financial Chronicle)

Drive.

Fe

energy

period ended
1954, totaled $16,343,122

vious year;
There was

*

DENVER, Colo.—James F. English is engaging in a securities
business from offices at 195 South

banty has been added to the staff

announced

electric

corresponding period of the

(Special to The Financial Chronicle)

BOSTON, Mass.—Kerry G. Sa-

of

months

compared with $14,736,943 in the

287

English Opens

Resources

Director

Sales
11

May 31,

was

*

by the

energy

Water

Authority in May, 1954, totaled
$1,496,667 compared with $1,342,165 in May, 1953.
Carl A. Bock,

Co-

Sideckas

Middlebrook,

Avenue.

with

Incorporated.

(Special to The Financial Chronicle)

onshire

become associated

Rico

Resources

previously with Bonney & Moor,

structure.

of

Puerto

WORCESTER, Mass.—Robert M.
Aleknas and Raymond B. Sideckas

funded

been

bankruptcy
readjust its

With Coburn Middlebrook

Co., in¬

corporated in 1851, has never de¬

pal

Electric Energy Sales
Sales of electric

Bank

(Special to The Financial Chronicle)

faulted in the payment of princi¬

A.

its

of

presently owned leasehold inter¬

of the
bid of

award

29

William

Agency
Reports Gain in

Sulphur Exploration Co. was
incorporated in Delaware on April

won

a

was

Puerto Rico

poses.

group

with

National

Building, to engage in the
business.

proceeds from the sale of
the stock will be used by the com¬

The

bonds
on
July
.98.839999%.

Union

as a

Vance, Sanders Adds

are

Co.

being formed

the

principal of the firm.
formerly President ©f
Bradschamp & Co.

Interstate Commerce Commission.

us.

"The Conference on Economic Progress"
the notion its own. Doubtless these gentlemen

&

is

in

,

Wareing is

Net

the

by

Mr. Fer¬

Magill, Wareing Co.

He

ploration Co. at $1 per share.

are

1942.

member of the Phila¬

securities

speculation 300,000 shares
of common stock of Sulphur Ex¬

associates

suance

Sherman

D.

a

delphia Securities Association.:

Bank

Common Stk. Offered
ing

Boyce.

-

Sulphur Exploration

Central Bonds

&

became affiliated with Stein

and

ing

Offer Illinois

Bros.

Bros.. & Boyce.in

,

Halsey, Stuart Group

Stein

He entered the securities field iit
1930 with Barclay, Moore & Co.

similarly placed. That is why real danger '
proposals.
V
1

lurks in these and similar

them

registered representative.;
Prior to joining
Laird, BisseR
& Meeds, Mr. Ferguson was asso¬

as

the rest of

the story goes. Several other elements in the

so

members
of
leading
commodity exchanges,
that Edwin L. Ferguson

and

■

nomics and indeed of civilization. Add to that the fact that

At any rate,
has made

eco-

Ferguson Joins j
Laird, Bissell Co.

Building,

offices

in substantial part on

selves to

most

More Revenue?

unfortunately) after we
had returned to normalcy after World War I, reduction in
Federal tax rates was followed by an increase in tax col¬
lections. Apparently no one ever forgets about this ex¬
perience, and everyone is eternally certain that tax reduc¬
tion would bring the same results again at virtually any
time in practically any circumstances. Mr. Keyserling and
his friends have not forgotten about it, either, although
they prefer to cite certain Fair Deal experience to prove
their point. At any rate, for them the way to reduce the
deficit—perhaps to eliminate it—is to reduce taxes and in¬
crease
expenditures! What a wonderful staging from which
to launch a program of extravagance, of largesse, of giving
large sums of other people's money to deserving ne'er-dotime (in

Physiocrats a couple of centuries ago. The agricul¬
producer has, accordingly, come to suppose that al¬
anything can be justified so long as it tended to help

tural

provided with things

people be favored with thinly disguised subsidies. And
the great rank and file, that, is to say the lower income
groups, must be excused from paying income taxes. The
farmer must have his income guaranteed at liberal levels
the

system of which they are a part.
Many of these notions have their origins in the thinking
of the

they would find to their liking, and large segments of the

while

E. L.

social

21

By Order of the Board of Directors

R. I. FLETCHER, Financial Vice President

22

The Commercial and Financial Chronicle

(514)

Continued from

timists.

people are bullish and yet,
decline, such as last Sep¬

most
after

a

opinion is almost

tember, public

entirely cautious and often quite
bearish.
The public is a pretty
fickle bunch and like

sheep they
Some

to follow the leader.

seem

cynic has said that if you

optimistic predictions

the

all

to

listen

hear and then do the oppo¬
site, you'll probably be right.
you

has been made
attaining profit¬
accuracy.
Psy¬
chology is the missing link. The
mass action of people, as reflected
in their changing mental moods,
is one reason why statistics and
economic
figures often go far
astray.
So, psychology plays a
most important role in determin¬
ing security prices.
I prefer to
Little

the years in

able

forecasting

to make a talk when the

psychol¬

ogy is unfavorable, not when op¬
timism is as rampant as today. I
"

jhave found

the years that
busi¬

over

economists,

js

in

have

ness,

forecasting
always been

more
and in fore¬

bearish than others,

casting the stock market, invest¬
ment analysts have always been
more
bullish.
They usually ex¬

market to sell higher
than business justifies. What it all
boils down to is that the majority
of us are too optimistic at times,
the

pect

and

other

at

pessimistic.

times

We

of extremists.

are

we;

too
nation

are

also a

We wait for some
of

uncertainty to
invest and
they are all cleared it is
usually a bit late. For, by that
time the market has probably dis¬
the

of

clear

clouds

up

before

we

when

The

counted the favorable event.

trick

is

to

endeavor

to

measure

these

and

psychological moods
time their various changes.
over

the

to use charts as a sort of
guide-post to keep my feet on the
ground and to attempt to measure
these
psychological changes in
years

Charts

mood.

are

of real value as

they enable you, to a certain ex¬
tent, to fight shy of personal opin¬
ions an4 preconceived ideas, hopes
and

*

perhaps wishful thinking.
They tend to keep you on the
Winning team and tell you when
to

leave and switch to the

side.
**,:

know well,

no one can

information on
existing companies.
I
That is why we in
office
have
many
security

all the up-to-date
so

many

certainly don't.
our

analysts—experts in their various
help us in our work.

fields to
I

like

"securitician"

word

for

a

lines,
the
type

coined

back

sometime

and

as

technical

along

specialist

of mys.elf

think

to

my

other

events, both economic and busi¬
ness, may not be the right pnes. If
the market had followed business

during the past 10 months there
would have been
have

no

advance such

Charts, like the
groundhog, sometimes provide the
shadow of things to come and do
reveal what buyers and sellers are
doing.
seen.

Use of Charts

interpret
psychology several things are
portant.
Firsrt, you should
read into a chart something
isn't there.

Swim

with

Do not

the

we

After study¬

meth¬

ing about 47 different chart

ods, I also believe that too many
different types of charts or chart
methods
are
bad, for one will

times contradict the other.

many

You

can

reduce to

never

mathe¬

a

matical formula

anything so var¬
iable as the buying and selling of
securities motivated by different
opinions. The securitician not only
examines the psychological state
mind

of

investor

the

of

relative buying

that

sures

occur

studies economic and

also he

but

reports.

company

little horse
he

thus

the

and

and selling pres¬
daily on the tape,

Coupled with a
and

sense

becomes

all factors that

definite forecast

little luck
of

correlator

a

go

a

into makings

on a

price

move¬

ment.

be

To

qualified

a

securitician

time-tested

must

have

had

of his forecasts go wrong.

many

He

he

must

have

missed

of

lot

a

putts, and he should tell his cli¬
ents
frankly when and if he
a
mistake.
Unfortunately

he doesn't often do this.
not learn to be

You can¬

securitician in a
hurry. You must first analyze the
economic trends going on around
you.
You must be a constant
a

reader and try to keep abreast

of,
not only the business news, but
all phases of international affairs
as
they may affect the market.
For background in arriving at any
conclusion
have

a

the

securitician

must

general knowledge of the

economic picture.

Inflationary

Purchasing

I am nor economist but

the

picture

today,

we

Power
as

all

I

know

half

are

normal

buying

Thursday, August 5. 1954

.

ated

a

lot

of

new

and if all this available credit and

is not used for the

sion of business then

some

expan¬

of it is

this

ties

im¬

tops have been preceded by

market.

Major bull

market

de¬

not
that

flationary
measures
in
money
market by Federal Reserve
by

tide.

from six weeks to nine months.
This does not seem likely to
hap¬
pen for some time.
The govern¬

—

times earnings.

this

450 and 500

But,

likely to be well main¬
military spending for

is

omy

tained

by

to come.
Right now, the
government
is
contracting for
about $2 billion of new orders a
month. The pendulum is swinging
to the optimistic side.
As against these favorable fac¬
years

tors

must be realistic in recog¬

we

nizing that many industries—es¬
pecially the auto, refrigerator and
other nondurable goods manufac¬
turers—have still work to do in
up

grade

more.

it

affects

level

same

period. Yields

leading stocks

in

as

the

of
today less

on many

are

than 3%.

Indeed, there are many
high grade bonds selling to yield
about
the
same
as
these
high
grade stocks today, .perhaps the
price of some of these high priced
issues suggest a reluctance on the
part of the investor to sell rather
than an eagerness to buy.
How¬
ever, on an overall basis, stocks
today still provide a return of
/about 2y2% more than high grade
bonds.

overall
still

are

Dow-Jones

about

averages

5%^.with

many

stocks

yielding 0%^'or more.<• In
the three preceding jnarket tops
just mentioned, thbwield at the
top in 1946 was $2$, in 1937 it

the big

Thus, the market?ismqt selling on
a yield basis that iiiMorically has
marked over-valuation and major

profit—is taking place and we
must constantly keep an eye on

this
of

yield

our

too

today more
is quite apparent that there is no
real justification for a great in¬
crease
in net profits during the
next six months, but we can be

judge them
past historical per¬

on

/

stocks offefr Sgfeater value
today than in pr^rbus periods
because

the business outlook, on examina¬
tion he does find many conflicting

patterns

that

make

it

very

difficult to arrive at

with

fhe largest short position in

def¬
inite conclusion as to the stock
market as a whole. Besides, inter¬
nally the market appears strong,
free from real speculative excess,
any

20 years and the relatively minor
increasein debit balances and large

increase

in

balances

credit

with

pared

the 33

com¬

rise

in ; the
the past

Dow-Jones averages oVer
10 months. However, I will try to

present to

you today as definitely
possible, what I believe the
picture unfolding before us "re¬
as

veals.
Some

astute advisor once
"Don't ever prophesy. If
you prophesy wrong, nobody will
forget; if you prophesy right, no
one will remember it."
Any gen¬
eral - prediction
necessitates the
very

told me,

of

use

an

which to.

average

my

have
use

This
has

investors,

Now, after examining some of

lived

business back¬

war

ground briefly, we come to the
most baffling and difficult corre¬
lating job of the securitician. We
have in the market today about
50 different groups of stocks di¬

fundamental improve¬

found, unlit recently,
in price because

reflection*

little

other alternative than to

no

the averages, so I will revert
Dow-Jones Industrials.

the old

to

I

have

for

several

believing

Industrial

JOnes

in

ever

j[sinc&4946, have

constant

classic

gomery

reasons
Dowaverages are in

these

slow process of reaching a tem¬

top

porary

month

area

during the next

twp. This has been an
amazing advance since last Sep¬
or

tember, particularly because there
been no real secondary cor¬
rection of any importance sjnce
it first began. There are certain
historical precedents for an-ad¬
has

of this kind
be

to

seem

Twice

which do-not

generally recognized.

within

similar

the

last

action

price

of

a

post¬

year

before

took place.

began

in

12

years

has

taken

a
serious correction
The bull market that

1942

reaction.

nearly:

ran

months before it had

a

14

substantial

Thus, by historical;

recession.

selling below
tal—a

market

that

thejlaifcge sums that* place. The bull market that start¬
plowecl b^ck into prop¬ ed in June 1949 ran for about a

an¬

;Many stocks are alogy, the present advance which
theirJ Working capi¬ so far appears similar, could

Ward.

example

is

Mont¬

Alsof'Jdon't forget

into

carry

late

August

Sep¬

or

tember.

that in the last 10
age

vided up about as follows:

ings

at all-time

ypars the aver¬
dividend pay-out ^rom earn¬
was 57% to 59%V It used to

be 67%

highs.

to

70%:

DrfSV Steel, for
pjdt only about

example, has paid

(2) Stocks that have not done
anything for a long time except
fluctuate aimlessly in historically

50%

of earnings.,

^

As I look at the

market today
standpoint of a securiti¬
cian, I find the market composed

from the

fight a trend. Too many
low zones and are not vulnerable.
top-flight services have tried to
(3) Stocks that have made their of many industrial
groups having
fight this upward bullish market ment by these recent moves has
highs several years ago, like the little bull or bear or liputral mar¬
for the past 10 months.
Second, created a more favorable and
textiles, drugs, and liquors and ket action within the-framework
you should not try to uphold or friendly background for business.
until recently have been in a con¬ of the
big market. ; jlyen within
justify a
previously
expressed This was most important and well tinuous downward trend.
the groups I find great divergen¬
opinion if it turns out wrong — timed on their part to turn a re¬
cies existing in individual stocks.
change to the winning side. No cession around, and it Was also
The "Analyst's Delight"
For example, look at. the
rails
one is infallible.
You are bound perhaps a
good political move.
This might be called a different with the
averages selling at a new
to make mistakes.
Thirdly, and The public doesn't like deflation kind of bull
rqarket than any one high, yet with Northern Pacific,
above all, do not join all the rest and won't accept it.
Finally, there that we have ever yet experi¬ Southern
Pacific, Chesapeake &
of the crowd who advertise and is also a
greater confidence exist¬ enced. But
every market is dif¬ Ohio, Pennsylvania* and St. Louis
always tell people how right you ing today that we'will have per¬
ferent and this one since 1950 has San Francisco
selling jiot far from
have
been.
They know when manent peace, and the cease fire been
the most highly selective one their lows.
With: the chemical
you've been right without your in Indo-China would seem to con¬
in
history.
Many
call
it
the group
selling
at K, new
highs,
advertising it, and they also know firm this.
"analyst's
delight."
Today iwe American Cyanamid£Air Reduce
that^ you wouldn't express an
Quite apart from this important have the averages selling in new
tion, Heyden ChemicaJ and Com¬
©pillion or write an article or money move there
is a budget high
territory since
1929, yet mercial Solvents are; selling near
make a speech or go to the office
deficit again this year of about within that same framework we
a
bottom area. vEvfen the steel
any more if you had always been $4 billion
which, although less have about 50% of the stocks sell¬ group shows jjreat^differences in
right. So let your actions speak than last
year, makes it look as ing below their. 1946 peaks of the
price action, with^haron, Wheel¬
louder than your boastful refer¬ though the
budget will be in the 212 Dow Industrial averages. The ing.. Allegheny Dumum, Crucible
ences to past performance, unless
red again next year. All this
adds market is not moving as a unit and Jones &LadghHn selling at
Jpu want to also mention all your up to another round
of inflation. as it did 10 or 15 years ago, and
relatively k)\£ Ieyel£




no

of

have been

much

erty.

are

relationshlp^in the back

many

Different Stpck Groups

Stocks that

3.30.

Aside from the. natter of yields,

ment

(1)

While the securitician finds

justification for real pessimism or
any danger of a real recession in

vance
.

lower than 1953.

economic and

was

minds and not

strictly

formances.

pretty well assured that earnings

the

it

market tops. It
^lee-seems to me
that we can do noMnqre than keep

corporations
than ever before. It

too

in the secondary stocks
seeing that these stocks will
not move have sought top quality.
and

a

the earning power of

be

3.70 and in

was

—

not

interest

„

the

Steel hikes its wages
from the unions
and yet the car manufacturers
still have to keep their price down
to meet the price demand.
The
inevitable result
a
squeeze in

will

Machine & Metals, Mueller
Brass, E. W. Bliss, Niles-Bementand
many
others.
These
stocks have been neglected. The
only answer to this is that lr the
public, until recently, has lost
can

Pond

of thinking is most unfortu¬
It seems as though we really nate.
This is particularly an un¬
cannot truly judge, the. marekt ©n
satisfactory way to forecast with
past
price-earnings relationship so many diverse elements in our
performance.
Lots of new fac¬ economic picture resulting in so
tors such as increased taxes have*
many different - patterns existing
entered the picture. The yields on
in individual stocks.
However, I

pressure

1954

and

40

over

way

companies.
under

has

there

.

Doubts About Past Performances

some

also

the

prewar

the

are

So

pricerearnings
these better
traded in today is

issues

at

now

affecting us with
every rise in the price of food,
subway fares in New York City
or a golf ball—even golf tees cost
economy

the

that

higher priced stocks

technical

this

of

150 stocks, and .the
in
many
of

of their inven¬
tories. Costs have been going up
and individuals like you and me
have a higher break-even point
after taxes and debt, just as the
big companies have. Price pres¬
sures
in this keenly competitive

clearing

can

Dow-Jones.

ratio

Consumers are buying

year.

we

would only be onestory. Until recently
this has been a high priced stock
market led by a handful of about

half

money

again as evidenced by the pick-up
in retail sales. The business econ¬

While

these same averages should
be headed for somewhere between

increasing.
more

earnings, in,J937 at about

then

about over.

are

saving

are

we

this comparison further, we
say that if the5 same priceearnings ratio now held good,

cre¬

purchasing
power. This money supply stands
close to an all-time high. Interest
rates are low and may be lower,
money

savings

Families

old

measurement,

also true

continued demand for the

a

50 and earning $6, and $7 a share.
Yet, there are many good stocks
selling at half the price which are
likely to have earnings for 1954
about $4 or $5. Stocks like Ameri¬

carry

in many other
the reces¬

be

we

an

of

times earnings and 1929 about

sion in such industries as textiles

to

an¬

It, is
been

can

The low point in

would, appear

to

17

loadings improv¬
inventories in televi¬

are

difficult

so

20

car

they

still

are

If

26 times

have been

settling down to a more
relationship to consumer

as

many

find that these averages are sell¬
ing about 11 to 12 times earnings.
Yet, in 1946 these averages sold at

definite

expected to move up to about
October. Construction and
home building figures are impres¬
sive— electric power output has

sion

that

to

question clearly.

yardstick

125 by

excess

the

take

is

ing,

must

we

the Dow averages as

swer

move,

refers

stocks

makes it

and

quite favorable. The Federal Re¬
serve
Production Index now 123

been rising,

why

market

obviously behind the market

very

all over the
for the first

far announced

so

that the Federal Reserve for the
second time in 12 months has

very

a

Earnings

country.

for
see

notice

now

the

individual

business improvement

Liquid

forest for the trees.

inflationary

reason

the

that "but" which

ahead. As a
policy and

years

attendant

that, otherwise you cannot see the

going to overflow into the securi¬

In using charts to

its

lines.

keep

the

in

one

question, "Do you
is- too high?"
Yes, the market is high butr-It is

result of this monetary

only about 400
charts and I do not believe that
one
should work on more than
I

work.

of

In essence, they arouse the

investors' suspicions that the most
obvious interpretations of current

as we

Obviously

makes

-

So I have been forced

off.

of these two factors that pays

progress

over

shrink

is

answer

think

and is likely to continue to

years

all, charts should
be used only along with the con¬
stant study of the basic statistical
and economic background behind
the market.
It's the combination
Above

errors.

all

forget the dollar has depreciated
nearly 50% over the last 10 or 15

Today and Tomorrow
We are a nation of op¬
Usually before a setback

that

Incidentally, the inflation that we
have pumped into the economy
for the past 20 years has never
been truly reflected until recently
in the stock market. We must not

first page

The Stock Market
possible.

..

if.

*

•

Technical Position Weakened
I believe that many

of the high¬
grade
quality
stocks
have
reached about as high as can be
er

projected, and while there is no
evidence of important distribu¬
tion as yet, I believe that defer¬
ring purchases in many of these
stocks or even selling a few on
periods of strength during the
period ahead might be advisable.
The

advance

stocks has

in

some.

served

to

these

of

weaken

the

market's technical position. There
is another seasonal reason for1 be¬

lieving that the market might
into

trouble

in

late

run

summer

or

early fall.
In the last 50
years reactions in late August or
September have occurred in twovery

thirds

of

more, the
tion year
cuse

fotf

those years.
Further¬
uncertainties of an elec¬
could well be the: ex¬

such

a

reaction

if

any

is

really needed after a
straight
line
uncorrected
ad¬
vance So, I would be on the look¬
out and get ready for such an in¬

excuse

.

termediate
next

.

month

setback
or

six

within

the

weeks,

and

Volume 180

perhaps

Number 5348 ...The Commercial and Financial Chronicle

put

"bay

some

In

the

barm"

rim

At this moment it is almost im¬

possible to answer the $64 ques¬
tion as to how far any such re¬
action should carry. This is be¬
cause
it is almost impossible to
pin-point the action of the aver¬
ages composed of so many diver¬
gent price trends. This is also be¬
cause
important
distributional
patterns have not had enough
time to form from which

defin¬

a

ite measurement of any downside

objective

be

can

projected.
It
however,

would not be surprising

for

the

Dow

Industrial

to test out the 315-320
was

averages

which

area

reached last June, and possi¬

bly react slightly lower before the
In any case, it must
be remembered that it takes

con¬

siderable time to form any major
bull market top formation and

late summer or early Fall in¬
terruption or correction would
certainly not mean the end of
any

this bull market.

Now, I want to make one thing
perfectly clear again, and that is
that when I talk about reaction, I
am talking about the Dow-Jones
averages which are largely com¬
posed of a lot of high priced
I

—

not

am

talking about

individual groups of stocks or in¬
dividual stocks—I am using that
"hut" again.

«j

During the early part of such a
distribution phase, some of the
relatively backward shares may
become more prominent marketwise, while the previous market
leaders

churn

about

highs and form

a

their

near

more

extensive

distributional

pattern,
while
others show substantial upside ac¬
tivity. There is plenty of room in
this

broad

bull

leadership

even

out-perform

for

new

that

will

market
now

the

recent

leaders.

the

cup

tremely

hign

there is

the

on

individual

markets

be

to

seems

cycle all its
to

seem

operating in

price

All stocks

own.

make

a

never

the

top

such

other

as

hand

both

indicate

higher levels later on and should
be purchased on minor setbacks
of one or two points.
Hold all

in

making

be

very

any

unwise

position in

to

sacrifice

a

good stock that indi¬

a

cates much

higher levels later on.
June setback, you
will remember that many indi¬
vidual issues reacted only onehalf point or a point and then
reached new highs.
Even

in

We

the

must

also

constantly

re¬

member that the main force pushr

ing stocks
steady

on

up
any

and keeping them
setback is institu¬

tional investment.

They pick the

leaders in the field and buy on a
scale down.

Federal

It is estimated by the

Reserve

Bank

that

pen¬

sion funds have assets of $17 bil¬
lion and are accumulating stocks
and bonds at

billion

New

York

$2 million
market.

number

taken

ing

an

or more.

of

out

in

bank

has

available

week to put into the

a

It

annual rate of $2
I understand one

.

follows, that

a

large

blue chips have been
of the market, result¬

shrinking

supply, and
these stocks are in strong hands.
Such possibilities should not be
a

overlooked.

secretly

feel

As

a

matter of fact,

that it

is

this

I

con¬

tinuous
cause

some

buying that has been the
of throwing out of kilter

of the very scientific mathe¬

in

50

that

so

stock

longer
term price appreciation of 40; Mo¬
torola
(43) for 50-52 and Ray¬
theon (12) for 14-16. Sylvania is
one of my favorites for long-term
appreciation
above
50.
These

icals, American Cyanamid, for
example, has a strong pattern for
an upward move above 60;
AirReduction
(26)
should
reach
above 30 again, and Commercial
Solvents (18) close to 25.
Inter¬

stocks should be held

national

temporary

reaction

a

through

any

for

and

ap¬

proximately the levels submitted.
Metals—Still look

little high¬

a

Minerals

for

Chemical

&

again

high

as

20

and

reach

Pan

American

price

a

There

is

Airlines

TWA should

18.

as

and

American

of

least

at

cross

should

17-18.

possibility of
Capital Airlines rallying up to the
14

level.
Trade

Retail

and

Department

Stores—Most of the stocks in this

indicate higher levels this

group

Fall.

Believe Gimbel will sell
above 20, Associated Dry Goods at
28-30, Federated Department and
Stores above 50, Marshall

Allied
Field
like

ing
one

37-38

at

and

even

price between 75-80.

a

available

This is

of my favorite groups for at¬

tractive yields and slow

price

ap¬

good

a

around

(37)

ap¬

purchase

if

for

10

35-36

a

point appreciation.
Electrical

Equipment

The

—

leading issues in this group should
be held for long-term growth. It
is
hard
technically
to
project
much higher levels than 48-50 for
General

Electric

75-80

and

for

Westinghouse. Square D at 38-40
also looks high enough.
Would
advise waiting for setback before
adding to position in this group.

stock

a

Montgomery Ward is project¬

before making any pur¬

St. Joseph Lead

like

pears

good

a

/

higher levels.

Chem¬
interesting

Victor

Air Conditioning

Another

—

long-term growth group. Carrier
is the leader, but would not ad¬
vise new purchases unless avail¬
able in the lower 50's. York 24 and

preciation.

Fedders

This group is selling
considerably
below
their
1946

strong technical patterns.

highs and

the field.

Drugs

—

a

long

Stocks

Abbott

La¬

boratories

Pfizer

and

low

look

far they have
definite signs of
price
appreciation

So

any

not
im¬
but

quietly accumu¬
lated.
For the time being new
purchases might be delayed.
being

are

Steels—Still

this

in
are

55

higher prices

and

group

indication

top

no

60, Bethlehem Steel 80Republic 65-70, Youngstown
and

Armco

Should

53-55.

prices
be
approximately
reached, would temporarily ad¬
vise lightening position.
Jones &
Laughlin also looks interesting
for a price of over 30.
Textiles—Low point

in this in¬

Sales for
pick up.
Many stocks indicate higher
levels.
American
Viscose
(35)
about 45-47, Lowenstein (38) 50
plus, Celanese (21) 25 to 28, J. P.
Stevens (25) above 30 again. They
should b*i picked up on periods
of reaction of one or two points
dustry

has

balance

and

of

been

seen.

should

patience

be

Well

re¬

warded.

Even

though
the
stocks in this group have shown
substantial price increase, there is
no indication that the majority of
these

—

have

shares

money

the way to

reached

more

higher levels.

For

example, the following stocks ap¬
pear interesting for higher levels:
Flintkote
(33) 40-42, Pittsburgh
Plate

Glass

Radiator

28-30,

utility stocks

sell

to

less

for

than

yield in view of the 3%
market.
The action of

these stocks has not been impres¬

sive, but they

slow,
like

City

to be in a
uptrend.
Stocks
Duquesne
Light, Kansas
Power and Light, Montana
appear

sluggish

Central & South West

Power and

(56) 65-70, American

(18) 22-23, Celotex (22)

Certain-teed

(18),

should

reach at least 25-26 and National

Gypsum (32) 35-40. Would advise
holding position in these stocks

minor setback.

through

any

Cement

stocks

have

The

discounted

improving business for some time
ahead. May be held, but new pur¬

Oils—The oils
troversial

Rubbers

have

The

—

had

a

stocks

rubber

substantial

upward

move
and
basically long term
position should be held. However,

it
is
difficult
to
project much
higher levels for some of the lead¬
ing rubber stocks at this time.
While no important distribution
has taken place as yet, would not
advise new purchases at current
high levels.

Papers

—

have

issues

Paper

are

Technically

a

levels

and

at

further

some

con¬

time.

price ad¬
present

great

no

indicated

is

very

this

at

group

vance

setback

probable in the next month
so,
for very obvious well-

known

fundamental

So

reasons.

far

there has not been important
distribution in this group so there

is

no seriously weakened technical
position. To be more specific—I

believe the oils

counting
able

are right now dis¬
of these unfavor¬

some

factors

and

should

recover

after

a longer period of price ir¬
regularity. The following prices
are as low as can be projected on
leading stocks in this group and
may not be reached: Pure Oil 5253, Gulf Oil 48-50, Sinclair 36-37,
Socony 38-39,
Standard Oil of
New Jersey 75-80, Cities Service
85-90, Standard Oil of California

and Union

53-55

Tobaccos

Tobacco

—

dividends

issues for

but psy¬
chologically this group will not
attract investment buying by the
trust or banking institutions.
For
the present would advise with¬
holding new purchases in this
group.
Of
the
group,
prefer
American Tobacco and Reynolds.
Farm

are

secure,

Equipment—Lower farm

income has affected the prospects

these

of

stocks.

the
leading stocks in this group have
been
slowly
accumulating
for
higher prices for some time. Par¬
ticularly favored is the technical
pattern of Deere & Company for
a price advance to the middle 30's
and for Oliver Corp. back to the
looks

also

like

good

a

devices used

ing the market.

in forecast¬

minor dips to the 29-30

reached levels of temporary over¬

slow

many

level for
back to

would

advise

caution about buying at these high
levels.
Understand
paperboard

backlogs
stocks

are

such

dwindling. Later,
as
St. Regis Paper

perhaps reach a long term
objective of 35-40; International
Paper
should
have
difficulty
reaching much higher than 80-85.
TTmon
Bag
and
Paper
points
higher.
Autos—As

a

dustry,1 General
performed

While
a

no

leader

in

the

in¬

Motors has out¬
is

evident,

price objective between 80-85 is

about

as high as can be projected
present. Chrysler on the other
hand, looks like it is in a buying
range between present price and
58-60. I am projecting price of at
least 75-80 on this stock at a later

at

date, and recommend purchase on
any

price

further

Studebaker

also

weakness.

looks

this

—Hold

appreciation

and




that

Electronics

(Radio & Television)

Miscellaneous Issues

limited. Be¬

appears

profits are expected to be
maintained, this group should
bought on minor setbacks for
defensive purposes.
In the can
division, American Can and Con¬
cause

be

tinental

are

selling

reaction

in

these

two

of several points.

well

also

stocks

grocery

and

little

tioned

valued

at

this

17-18

the

the stocks men¬

various

classifica¬

tillers (19); Remington Rand (20);
Solar Aircraft

(20) ; International
Telephone
&
Telegraph
(21);
Celotex (23); Filtrol (23); Master
Electric (23); Standard Packaging
(23); Ferro (24); Robert Gair
(25); Pittston (26); Robertshaw
Fulton
(26); Fairchild
Camera
(27);
General
Railway
Signal

(30); Garrett (33); Joy Manufac¬
turing (33); Western Union (44);
Belt
(45); Timken Roller
Bearing (47); and Western Auto
Supply (49).
In closing, I know that I will<^
rue the day when I stuck my neck

Link

out and gave you so many

specific

recommendations, but I hope that
in this basket Of fruit there will
not be too many lemons.

Central of

Georgia

Equip. Clfs. Offered
Halsey,
McMaster

Stuart & Co.
Hutchinson

Inc. and

&

Co.

holding.

on

Aug. 4 offered $2,655,000 of Cen¬
tral of Georgia Ry. series Z 2%%
equipment trust certificates ma¬
turing annually Aug. 1, 1955 to
1969, inclusive. The certificates
are priced to yield from 1.50%. to
3.05%, according to maturity. ;
issue

The

is

to

be

secured by

the following new standard-gauge
railroad

equipment estimated t©
$3,325,660; 500 50-ton Box:

cost

Issuance of the certificates

Cars.

is subject to the authorization of
the
Interstate
Commerce Com¬
mission.

With King Merrill
(Special to The Financial Chronicle)

DETROIT,
has

Deacon

Mich.— Joseph
joined the staff

FL,
of

King Merritt & Co., Inc.

r

(Special to The Financial Chronicle)

^

DETROIT, Mich.
Splane

is

now

ber, Jackson &

George W.
with Paine, Web¬

Curtis, Penobscot

Building.

Prescott Adds to Staff

too

(Special to The Financial Chronicle)

leading is¬

CLEVELAND, Ohio—Mrs. Rtttfc

Chain store
should do

S. Jett has become associated with.

like

Some,

i?mr

for

ceem

a.

Prescott

Bank

&
Co.,
National City
Building, members of the

New York and Midwest Stock Ex¬

changes.

little high at present levels.
Rails—The rail group, as point¬
ed

The Ohio Co. Adds

out, is also a highly selective

with

a

for

each

While

many

reached

of

peaks

different

the
for

is

many

major

distribution.

COLUMBUS, Ohio

road.

have

issues

indication

there

no

(Special to The Financial Chronicle)

changing profit out¬

group

look

years,

of

any

—

Robert E.

Bartels has been added to the staff;
of

The

Ohio Company,

High Street.

51 North
,

Purchase on

moderate setback is recommended,

under¬

level

in

tions, I am interested in the fol¬
lowing issues for further price
appreciation: Ratheon (12); Gen-i
eral Cable (15); Pepsi-Cola (15);
Certain-teed (18); National Dis¬

Expect

recommended

are

defensive

a

purchases.

high for new
sues

addition to

In

Price

groun.

well

the rest of the stocks.

distribution

buy the
buy indi¬

not

do

you

averages any more, you

vidual issues.

Paine,1 Webber Adds

sign of distribution as yet in
ipad*"g

appreciation

price

and

-

missed putts,

Remember

35-40.

no

With Francis I. du Pont
Francis I. da
La Salle
Street, announce that Warren JWeber,
formerly
with
A.
G.
Becker & Co., Inc., has become
CHICAGO, 111.

Pont

&

—

Co., 208 South

associated

with them.

|

—

-

be

have made new
this year.
That leaves a
rather large field of 72% of the
list to check over very carefully*

long

investment stock to buy on

term

valuation, and while there is also
fv>P

of the listed stocks on

board

big

highs

International Harves¬

15-16 level.
ter

However,

especially in Atlantic Coast Line,
Southern Railroad, Western Paci¬
chases should be delayed. Advise should recover to the 25-27 zone
fic, Great Northern new, among
caution.
over a period of time.
You may the
higher priced issues, and Bal¬
Survey of Individual Groups
to
be
patient in buying timore & Ohio, Chicago Great
Motion Picture—This group also have
Now having reviewed some of
pithp** Chrvsler or Studebaker, but
has a strong technical pattern in¬
Western and St. Louis San] Fran¬
the economic business background
I believe that
purchases will cisco in the lower
dicating higher levels. Loew's for
priced issues.
and forecast on the averages in
work out profitably.
example, indicates a price of 20
As stated above, one of the rea¬
this almost two-way market, let
Chemicals
This is known as
and Twentieth
Century - Fox
sons why I haven't been
us get down to cases and discuss
able to
the premier growth industry and
seems like an excellent buy for a
individual groups.
get bearish on the market for so
I will try to
the most diversified of all indus¬
of
28-30,
Warner
Bros,
be as specific as possible in what price
long is because so many of the,
should carry above 20. Paramount try grouos.
Some of the higher lower and
I see ahead for these individual
many other moderately
should reach close to 40. All these priced
leaders
such
as
Allied
priced stocks, not in the Dow
groups, and I know from past ex¬
stocks appear to be good buys on Chemical,
Union Carbide
and
averages, are still technically in
perience in going back over some
du Pont are showing some signs of a very strong position; have not
of my other talks that there will minor dips of a point or so.

matical

about 28%

the

Oil 39-40.

equally wel-known reasons have
sold off sharply and, from a tech¬
nical angle alone, any recovery
should
be
very
limited.
On a
value basis the stocks are cheap,

will benefit from rate increases.

temporary resistance area

a

as a

should

Building

than

5%

a

should

year

entitled

are

term
Trane
leader in

longer

Utilities—Electric

indicated: U. S. Steel between
and

on

(65) is also favored

like

Merck,

Parke-Davis,

shown

to be in

area.

appears

oversold

term

have

14

(39)
also
has
growth possibilities.

or

ing too high a premium for them,
at present levels. An examinationthat through the period
from the 1946 highs to 1953 only
reveals

Machinery (46),
(46) all should be held

seems

er.

tential and you still are not pay--^

Food

(33),

Mathieson

chases.

these

textiles
and
Therefore,
prediction it would

least

at

»

(515>

should be well supported at 38-40.
Some of the lower priced chem¬

mid 70's

a

indicate

and

airlines,

up.

of

reaction

any

30

in

are

55-60

gone

that

and Eastern should recover above

Airlines—All the airline stocks

85,

aircrafts,

Chemical

strong technical position
substantially higher
levels for the long trend. United

stocks in this group.

oils and tobaccos reacted and the

have

a

Dow

■'

I* ■'

be generously priced. I
long term objective on

to

ical

at once.
For example, in recent weeks the

steels

stock should be held for

seem

have

Anaconda (39) should reach
a
price of 44-45; Phelps Dodge
(40)
43-44; 'Inspiration Copper
(28) for a new high of over 30.
Kennecott (85)
between 85 and
90 looks a little high. Would wait
for a
reaction in this stock to

they

of

of

I believe
Douglas,
Aircraft, North American
and Boeing are reaching about as
high as can be projected for the
present. Grumman and Lockheed
stocks

quite interesting right
lots

while

important distribution,

that

portant

are

and

United

dium priced stocks, but many look

operating within the big market
as I said before, and each group

levels,

technical evidence

no

enough.

There

more

—

The public may have lost patience
with many of the lower and me¬

now.

that —These stocks at the present time

ones

clearly
that drop in.

than indicate higher price levels. Philthe ones
co (37) should reach 40-42; Zenith
Aircrafts
All stocks in this (73), a candidate for split, 78-80;
group have risen 65% since last Admiral (25) 27-28 and RadioSeptember and some are at ex¬ temporary resistance 32-33, but

fall sets in.

stocks

will remember the

you

j 1

resistance

and

distribution,

and

exhausted

their

longer term po¬

With Aubrey G. Lanston
(Special to The Financial Chronicle)

CHICAGO, 111.—Frank E. Loring has become. affiliated with
Aubrey G. Lanson & Co., Inc., 231
South La Salle Street.
He, was

previously with A. C. Allyn & Co.

B*

The Commercial and Financial Chronicle

(51«)

..

.

Thursday, August 5, 1954

Vance, Sanders Promotes Three

A MUTUAL INVESTMENT FUND

To General Partners' List

Mutual Funds

NATIONAL

SECURITIES
By ROBERT R. RICH

SERIES

A 12-MONTH INCREASE of

$82,-

500,000 in the resources of the
Wellington Fund
was
reported

FREE INFORMATION

Two-thirds

this week to shareholders.

WRITE FOR

Exchanged for Delaware

FOLDER AND

The

PROSPECTUS

assets

increase
to

total

boosted

net

NATIONAL SECURITIES &

CORPORATION

RESEARCH

Established 1930

York

120 Broadway, Now York 5, New

213

Dec.

on

on

1953,

31,

and

$252.-

wards

the

at

of

record

a

1,400

total

30.

last,

institutions,

of the 48 states

located

and

in 25

all

tal

foreign

Wellington's portfolio

as

A

fund

mutual

diversified

the

dorsement
and

The

for

common

capital and income

Prospectus may be obtained
from investment dealers or

lower-yielding food and elec¬
tric utility stocks.
investments

New

Berkeley St., Boston, Mass.

made

were

in

and

additions

selected

stocks

of

automobile,

machin¬

ery,

railroad,

agricultural
nonferrous metal,

1954
on

covered

leading crude producers and
integrated oil companies, while
stocks

made in other oil

were

with

Custodian Fund;

less

to

outlook

Some

COMMON STOCK FUNDS

low

cut.

stocks

The Keystone Company

of

were

made

were

sold

were

electrical
eliminated

ethical

your
ten

prospectuses

D-97

Name

—-

adversely affect their
ings."

-

share

per

month

paid

State

had

increased

corporate
stocks

the
at

bonds

from

the

from

a

the

and

33%

of

preferred

resources

year

at

to 42%

1954,

the

?

of

were

and

in senior securities

this year,

were

the year,

be

tribution,

on

of

June 30,

the

for

six

20.64%."

25 cents per
either in cash

of

paid

was

that
was

-37%

over

share,
or
in

the distribution

of

other

low

open-end

Dividend Shares is a mutual invest¬

(mutual fund) offering

company

investment in

a

SHARES

investment

Trust,

an

company

specializing in insurance company
and bank

stocks, reports total net

for

their

com¬

of 1954 appears to have

free copy

5,727 compared with 5,865.
On June 30, 92.9% of the fund
was invested in 100 stocks repre¬
senting
27
different industries;
7.1% was in short-term notes and

the similar period of 1953 and un¬

tinue

to

experience

growth in business
banks

in
and

porting

general,
in

other

substantial

written.

The

both in New
cities, are re¬

higher earn¬
ings than in the same period of

moderately

1953."
EATON & HOWARD Stock Funds

Semi-annual

Report

shows

share of $14.69,

30

was

$12.08

per

up from $20,beginning of the

$27,354,779,

860,870

the

at

in investments during
quarter of 1954 included the

«

Affiliated
Fund

bullock

Established 1894

A Common Stock Investment Fund
Investment
********

are

-

Please send
on

New York

amsm mama mm mwmwmmm mm mm mm —mm — -

me a

-

objectives of this Fund
long-term
capital
and
income

growth

for

its

shareholders.

» w

Prospectus

free booklet-prospectus

upon

request

StvMMd Shares.

Name.
Address.




mont, California.

National Deflates
Market Level
prices

market

stock

Current

high" when compared to
the 1929-1954 ratios for the vari¬
"are not

indices,

economic

ous

National

Securities & Research Corporation

in

says

a

newly-published study,
High?".

"Is the Market

5/

answering the currently con¬

In

concerning
calls at¬

question

troversial

market values, the study

the

tention

to

guards

built

safe¬

numerous

into

the

national

Harbison-Walker Refractories, LilyTulip .Cup,
Panhandle Eastern
PirvMine. economy, providing a greater
Puget Sound Power & Light, and United- market foundation than existed m
Steel.

States

,

Eliminated

Department

Philip Morris and-

tional Distillers Products,

Tobacco.

J.)

(R.

Reynolds

American;
Stores, Na¬

Growth

Stock

Fund, Inc., sponsored by

Hugh W.
21.3% in¬

DIVERSIFIED

Long and Co., reports a
crease in net asset value per share,

$7.23 to $8.77, between Nov.

from

30, 1953 and June *30, 1954, the
period covered in its Report to
Shareholders.
The interim report
a

months, "and reflects

seven

covers

in

change

year-end

fiscal

the

1929.

;

-

of

holdings

were

Federated

The

finds

analysis

current

market

-

that

.

while

averages

are

reaching close to-"the peak levels
of
historically high prices, the
thermometer of trading volume—
which

may

the degree

be

used

to

register

of speculative feverlevels of

is well below the danger
those summer days of

1929."

"It must be regarded as a

corol¬

the study adds, "that
present level of prices does

lary,"
seem

to be built upon

the
not

the unstable

from Nov. 30 to Dec. 31.

1954

assets

net

Total

June

on

30,

and
the
5,727.

$9,299,380,

were

number of shareholders,

of

widespread, ignor¬

ant and weak

public participation

foundation

According to the report, more than 70%
of

Fund's

the

assets

of

Thirteen
in

search

their

its

in

drug,

involved
fields,

allied

holdings

investment

51

companies
or

30 were in¬
electronics,"

June

oil and gas industries.

instrumentation,

were

on

chemical,

the

in

vested

atomic

in

to

of businesses.

other lines

These investments are common

THE FULLY

re¬

addition

in

ADMINISTERED

stocks of

Cyanamid
Company,
Beckman
Instruments, Inc., Calumet & Hecla, Inc.,

American

Dow Chem¬
Electrochemical
Co.,'
Oil Industries, Inc., Merck &

FUND

Company,

Tracerlab, Inc., and
Corporation.

New York

—

Chicago

—

Atlanta

Los

of

ments

of
Union Car¬

A Balanced Fund

in

the
the

months

seven

disposed

Fund

shares

of

-

.

.
1

•

the

of

banking

manage¬
its invest¬

institutions

public utility investments.
investment holdings were Calu¬

and of two of its

Added
met &

to

Hecla, Inc., and Sprague Electric Co.

REGISTRATION
lion

of

the

$47 mil¬

Television-Electronics
distribution

Islands

Angeles

•

Group Securities, inc.

Carbon

During
ment

Co.,

Corporation

Radio

Co.,

Lead

America,

for

Lord, Abbett & Co.

Chemical

Monsanto

Inc.,

National

&

of

Hooker

Co.,

Kerr-McGee

of the booklet-pros-

One Wall Street

following common stocks: Common¬
Life Insurance, Eli Lilly and Co.,

the

ical

pectus by mailing this advertisement to

calvin

the sec¬
addition

class B,

up

share at the
beginning of year—with both fig¬
ures adjusted for the 2-for-l stock
split on June 30.
Total .value of the fund on June
over

stock holdings

largest

Changes
ond

,

1954

The

industries were oil (11.6%),
power
and light, and insurance
(9.8% each), chemical (6.4%), and
banking (5.9%).
by

bide

\

for two years prior to joining the Vance, Sanders organiza¬
His home is in Pied¬

tion in 1947.

Consolidated Engineering Corp.,

Learn the facts about this mutual fund.
a

surpassed

investment

quality and income possibilities.
Send for

1,862,698 compared with 1,726,902
and the number of shareholders

Enka,

casualty insurance

total

outstanding

Shares

year.

"The volume of business of the

diversified list of common

selected

Sanders organization in
September, 1952. He is assistant

wealth

the current po¬

on

asset value per

and

Angeles
& Com¬

pany
-

Vance,

of

taken in additional shares.

Commenting

21%

bonds

Davison & Shatjoining the

Los

office of Mitchum, Tully

until

thereafter

tuck

the

with

associated

November, 1945, and was asso¬
with the Boston law firm

cash.

shares of the Trust, at the share¬
holder's option, the report notes

the report con¬
tinued, "the fund has sold several

CENTURY

1

close

when in¬

eased." Since the

yielding issues."

v

{

the

at

increase

would

convertible

|

$36,018,564

gain distribution
Jan. 28, 1954, were added

on

York

|'your fund benefitted
rise

terest rates

first

backlog of
grade

good

result," shareholders

last Fall

Dividend Shares?

stocks

30,

$20.21
against
months
earlier, and

six

fire and

year-end.

informed,

? What is

its

bonds,

beginning of the

"As

ment

'

to

during

branch

Thereafter, he was

World War II.

Investigation from 1942

Bureau of

derwriting profits also compare
favorably with the previous year.
The life insurance companies con¬

government

~

a

aviation

Navy's

Federal

the

of

Agent

Special

was

to the net asset value

earn¬

higher, Welling¬

-

graduate of the Uni¬
versity of California (Berkeley)
in 1939 served as a pilot in the
Willson,

1941, Haussermann served as a

in

panies during the first six months

were

graduate of Harvard College in
1936, he is a resident of Wellesley

"

Summarizing shifts in the hold¬
ings of senior securities, the report
recalled that last year when in¬
ton

Cty

7

with

Lieutenant

Farms, Mass.

graduate of Harvard College
in 1938 and Harvard Law School

of
insurance
and - banks
anticipation sition
which Stocks, the Trustees observe that:

in

•

A

terest rates

Funds.

Addrea

?

drug

of'

West Coast area.

competition

may

describing
Organization and the shares of your
me

in

adjust for the
in individual

Selected

increased

SO Congress Street, Boston 9, Mass.

'

company's head
office in Boston
Willson is a rep¬
resentative
of
the firm
in the

Pointing out that the latter dis¬

yielding

equipment stocks
or

June

on

1945, attaining the rank
Commander.
A

will •through

Smith

and

Haussermann

continue with the

1953.

pros¬

companies.

BOND, PREFERRED AND

a

cost

ciated

compared

months

favorable

changes

changing

on

Prior to the

"If the capital

,

Several

building stocks

was

without

adds:

the

reductions

basis

$41,755,496

Dec. 31,

value

made in somb of

were

pects.

Please send

by

current earnings.

K, :ystone

of

$16.96

Increases

exchange

The current semi-annual report
of the Trust states that net asset

dividends

*

'

of Haussermann,
assets

last

well

-

$20,700,000.

rubber and steel companies whose
are

New York State. Prior to his pressix mutual investment companies,
ent connection, he served with the
including Massachusetts Investors
"United
States Navy
from 1942
Trust and Boston Fund.

past

sev¬

eral

Corporation

The Parker
200

basic industries and reduced

sponsors

half years.

a

asset

•

war e
Fund, an open-end
mutual investment company,
has
assets
of
upwards of

holding up well.
In
following a slightly more
aggressive policy, the fund added
to holdings of common stocks in
were

long-term growth of

of Aug. 1, -Vance, Sanders since January,
Henry T. 1946 and represents the firm in
contacts with investment dealers
Vance, senior partner of the firm,
New
England '-and northern
which is principal underwriter for in

en¬

the

over

Mass.
Smith has been associated with

"home is in Wellesley,

it

exchange offer, ITS had ap¬
proximately $2,500,000 in as¬
sets
with
1,013,000 shares
outstanding.
It is now in
process of liquidation. Dela-

moderately early this year
when it appeared that most cor¬
porate
earnings
and
dividends

of

portfolio
selected

securities

its

of

the

His

Fund.

General

Canada

and

Boston Fund

Company, effective as
is
announced
by

exchange

with

to ITS holders.

stocks

a

and

net

commons.

increased

management

with

the

officers

two

stock position: "Your

common

shares of

new

shareholders

with

57% of its assets in

imsTons

90,000
under

offer made available to ITS

The report gave this review of
Mf I

of

Willson have
been admitted as general partners
in the firm of Vance, Sanders &
C.

Ted

Willson

C.

President of

the

to

Dickson

Haussermann,

and

Smith

to¬

a

Ted

Dickson Smith

A. H. Haussermann

termi¬

been

Delaware Fund had been is¬

63% of
total
assets
in
common
stocks;
24% in bonds and preferreds; and
13% in governments and cash. At
the start of 1954, the Fund had

imitPOIUTEl

1954,

30,

has

Arthur

sued

June

offer of

the

Mr. Nelson said that

The report listed some 315 secu¬
of

Delaware

of

that

nated.

countries.

rities in

and

exchange

an

in

shares

new

Fund

all-time high of 125,000, including
many

a

exchanged their holdings for

up¬

to

Shares,

Trust

pendence

of

Inde¬

fixed investment trust, have

month to bring

a

June

on

of

rate

of

shareholders

the

on June 30, 1953.
Throughout the, 12-month pe¬
riod
Wellington
added
share¬

Fund, an¬

two-thirds

that

nounced

Presi¬

Nelson,

dent of Delaware

483,390

holders

Linton

W.

June 30,
last, gain of $54,257,419 over the
-Fund's asset position of $280,894,$335,151,632

ITS

of

was

Fund

fn*the Hawaiian

announced by Paul A.

Just, Executive Vice-President of
Television
Shares7: Management

a prospectus on
from your

Distributors

request

investment dealer or

Group, Incorporated

63 Wall Street,

New York 5, N. Y.

Corporation, sponsors of the Fund.

I

Volume 180

Number 5348

The Commercial and Financial Chronicle

..

.

(517)

25

U-

—if this volume of

trading is

points

any

kind of reliable thermometer."

Many

investors

"their eyes glued to the price level
alone—and they tend to neglect
what
supports
that
level," the

study

states.

-

These

eral";

loans and credit

unemployment

in

insurance;
.

The

natural

by

tion.

factor alone—the

one

increase

We must

mands

and

desires

in

in

and

the

de-

needs

week

.-

.

translates

the

annual

total

census
on

.

.

the

today

Dow
we

population

of

for

28

the

of

486

needs

of

National

Product

first quarter of this year was

the

at

annual

which

of

$357.8
with a

compares

$103.8 billion for 1929.
Pointing out that by
should reach
tion of 200

an

a

•

'

"This

force
may

about

result in

of about

per

$3,200

as

followed

we

labor

a

million

This

six-1^-

.

_

.

—

Book
Net

both

the

meeting

on

Lester O.

prices
W i t h
industrial
production
as
measured by the Federal Reserve
Board Index (1947-49 equals 100),

rector,

National

Association

Guests

•

wide

Wilfrid E. Jones*-Director of Pubr lie
Relations, NALU.-*

'Carlyle::,M.T Ihmaway,

*".**'

NALU.

-

-

life

associations

Ratio

$309,978

$208,740

63,812

32,738

12.5

8.7

9.5

9.4

$94.62

Share

$43.10

$66.04

$85.48

$44.58

$3.16

$4.75

$5.88

$3.43

2.79

3.99

5.29

2.86

-

22,288

to

4.76

3.40

4.53

2.01

2.84

3.91

5.10

2.54

Divi¬

Earnings:
60.2%

63.3%

58.9%

52.7%

52.5%

70.4%

71.6%

60.8%

70.9%

13.5

15.0

13.2

11.6

14.6

Average

16.7

16.0

13.3

16.1

94.6%

79.6%

92.0%

65.3%

Earnings

Price

Average
to

Book

addition

Value—

to

118.4%

the

110.2%

foregoing institutions, the other smaller

Trust, First National Bank, Provident Trust Com¬

Trust

Company, and Market Street National Bank.

It

is

interesting to note that of the five banks listed in the

above tabulation, all have been involved in

during the past three

Of

years.

the

delphia

of the

or

six

more

not

mergers

listed,

three

it is considered likely that additional mergers will

area,

banks may

One

of

the

-

adjustment
,.-yean

was

Thus it is possible that some

become larger.

-

significant features of the above figures is

more

the trend of-earnings.

ford, Conn.

Company, Boston—"Paul F.
Clark, President; Clyde F. Gayf
;; Vice-President;
Clarence
W.
A". Wyatt, Vice-President; Robert

one

other

have effected mergers. Because of conditions
existing in the Phila¬

be accomplished in the near future.

-A John Hancock Mutual life Insur¬

12.0

Liberty Real Estate Bank and Trust Company, Broad Street

were:

Myrick, Chairman of the
Board,"T American College ~<©f
Life Underwriters, New York.

With the exception of 1951 when

slight

a

i)oted> per share earnings have increased in-every

for the five fcanksi since 1949....Indications are~that .earnings

for the current period will -also show, a- favorable trend in Tiioafc
instances. "'

—

'

.......

i

4w

ance

Y-

On ihe basis iof the

....

..

;

^-Massachusetts-Investors^
5aGrowth Stock Fund

■

a

~5

s o

IT/wj/

General

Co.—C.

ance

Massachusetts

figures Stroud & Company points out that

Philadelphia bank stocks

are

relatively

more

New York bank shares.

attractive than the

•

";^P. Kelsey, Vice-President
Connecticut

Vice-President.'

New England
ance

"

Century Shares Trust

*.

Life

table presented in the report shows the comparative statis¬

Insur¬

Manton

Eddy,

tical

position of the two

-

Yields

Mutual Life Insur¬
O.

Kelley
Anderson, President; John Bar¬
ker, Vice-President and Coun¬
sel; Lambert M. Huppeler, Vice—

Price

'

-

Times

Earnings.

Book

t

N«w York

Philadelphia

4.19%

12.4

13.5

92.4%

Values

Percent Pay-Out of Net:
Ratio

-

y

4.40%

Price to

President.
<+

groups.

'

-

Co., Boston

97.4%

54.4%

56.9%

Deposits-to-Capital

12.0

9.8

"V

-J

It

decided

was

Committee

Canada General Fund

consist

that

the

Joint

should, at the outset,

only

of

representatives

from the NALU and from the in¬
vestment

but

the

cooperation

companies,
early stages of

that

formal consultation with life

com¬

pany representatives might be de¬
sirable.

Bond Fund

Representatives of the NAIC
OF

in

BOSTON

the

Joint

Committee

will

on

be:

Messrs:

A prospectus

relating

investment funds may

to the shares of any of thesse separate
be obtained from authorized dealers or

Richardson,
Bradford,
Clark, Townsend, Vance, Charles
M. Werly, Trustee of
George Put¬
nam

Fund of Boston and Mr. Burr

(ex officio).

COMPANY

VANCE, SANDERS &
111

5'

BOSTON
NEW

6l

YORK

*

\

DEVONSHIRE STREET

\

Broadway




CHICAGO

lio

■

South LaSalle Street

;
»

2to

j

toS'ANGELES
West?Seventh Street

Those

the

NALU

Committee

Salinger,

will

on

be:

Fluegelman,

Schriver, Merle G. Summers, Bos¬
ton, Stanley J. Lonsdale, Bridge¬
port, William D. Davidson, Chair¬
man

t

representing

Joint

Messrs:

lic

of NALU Committee

on

Pub¬

Information, Chicago and Mr.
Jones (ex officio).

nr

2.17

2.48

'

2.21

5.04

7.66

i

Current

3.57
3.83

7.16

Average
of

2.85

2.92

pany,

York.

t.

4.39%

11.6

Earnings

In

insurance

Julian S.

w^

-

41

4.56%

••

,

banks covered in the Stroud compilation include Tradesmens Land

Management Association, Hart¬

<m

58,613

4.48%

7.35

1953

Charles J. Zimmerman, Managing
^Director, Life Insurance Agency

<•"»••>

77,559

68

$555,683

(000)

Capital

Title Bank and

the

4.21%

$735,554

7.36

Five-Year

Haussermann, Counsel,
&
Sanders
Company,

from

4.46%

$911,558

'

Holgar J. Johnson, President, Institute of Life Insurance, New

Counsel,

'

$1.80

Price Earnings Ratio:

home offices and from industry-

of

$3.10

62 y2

______

Five-Year

Boston.

Life Underwriters.

1828

$2.80

47 Va

_

dends

Joseph E. Welch, Executive'VicePresident,
Wellington
Fund,
Inc., Philadelphia.

Schriver, Managing Di-

1867

Operating Earnings:

Henry T. Vance, Partner and Ar-

be¬

Bank

1837

8.12

to

Per

Five-Year

Townsend, Vice-PresiAxe-Houghton Funds,
Tarrytown, N. Y.

were:

CentralPenn Natl.

Trust

$8.31

Value

Percentage

dent,

half of the Life Underwriters As¬
sociation

Phila.

1828

1950

Morris M.

H.

Fidelity

Bank

(000)

Deposits

1949

S. L. Sholley, President, Keystone
Custodian Funds, Inc., Boston.

Vance,

pertinent

$2.00

1951

.

businesses.

Attending

Girard

v

1952

P.

thur

the larger

112

1953

Robinson, Jr., and
K. Whitney, Trustees,
Massachusetts Investors Trust,

home offices in the New

of

.

^

George

in

five

1843

Deposits

Ratio

M.

Dwight

England area, was arranged on a
;
cooperative basis by leaders of

market

the study finds that for each point
industrial production in 1929
there was the ^equivalent of €.25

mi

statistical

a

area.

$5.00

Rate

Capital, incl. Cont. Res.

William A. Parker, Chanman, Incorporated Investors, Boston,

and

of

.

interesting in this

Corn Ex.

Price—Approx.

Boston.

meeting

Penna. Co.
For Banking
and Trusts

Since

Yield

R.

wril.

on
Wednesday, July 28.
luncheon, attended by repre-

company

Paid

Dividend

Current

Hunt, The George
Putnam Fund of Boston.

sentatives of each business and by

capita earnings
compared with

correlating

Dividend

TT

appointment

luncheon

are

have selected

we

Bank

,

William

tsu

.

a

the tabulation below

from

away

Stroud & Company, special¬

Natl.

Hughes, Lord, Abbett
Company, New York.
I

of^&

will

Committee's

Philadelphia.

Bradford, President,
Mutual, Inc., Minne¬

1953

The

$1,860 in 1952," the study predicts.
In

Albert

Boston

support
88.5

Association.
iA

business.

of

$700 billion.

should

of

Underwriters

Companies.

and

those in

are

centers

bank operations.

statistics.

Charles F. Eaton, Jr.,
Trustee, Eaton & Howard, Inc., Boston.
T

understanding of the operations,
objectives and services of each

estimated popula¬

of

In

York.

Monday in a
the National

committee

the

banks from the Stroud tabulation and
show certain of the

Robert E. Clark, Vice-President,
Calvin Bullock Company, New

field

man-

of

some

corresponding benefit to

Philadelphia bank stocks, has just published

Current

develop a program designed to increase mutual

million, the study finds

total

K.

apolis.

busi-

in

in

pronounced

a

areas.

that the growth of
deposits may con¬

Phila.

resenting each organization, will
study areas of mutual interest and

billion,

to

in

Sheffey, Executive Sec¬

Investors

investment

and

are

comparison of 11 of the major institutions in that

Burr, Director of Pub¬
lic Information, NAIC.

the

National

concern

the Gross National Product could
a

the

The 12

run¬

1975

ists

Companies and Vice-Pres¬
ident of Lehman Corporation.
retary NAIC.

life insurance

announced

was

Investment

a

the

possibly double in this period
attain

ness

and

its

total

business

of the

statement by
Association of Life

seasonally-adjusted

rate

the

joint

Jfor

in

connection

M.

City have become increas¬

One of the groups of bank shares that

of

ment

Joint Commit¬

a

representing

rr.

at

average

Chairman

National Association of Invest¬

Harold

as

thousand

point of the
high point in 1929."

ning

Dorsey Richardson,

of

more

New York with

Total

Average

thousand

319

each

Gross

stock

periods

Bank Stocks

recent years as investors have endeavored to
take

Current indications

Edward B.

forces

-

point

compared with the demands of

population-of

any

—

advantage of the growth of the economy in
outlying

Chicago, 111.

tinue to be

adjustment and resistance.

company

of

statesv

each

Industrial

have
*

the

its

Member,
Group In-

on

Those representing the investment company business were:

Joint Committee

tee

the official 1955

that

.

growth

larger than

was

population

established by

as

have

Appointment of

being created each

population in 1953

Reno>. Jr>>

of

attenin

NALU & NAIC

of

people than
country 25 years

Securities

.

phenomenon
will

note

a

as

John

this population growth into terms
of meaning that "about 50,000 new
are

on

calling
that

This Week

Bank stocks outside of New
York

ingly popular in
R

Organized by

1

ago."

customers

fact

By H. E. JOHNSON

y

NALU Committee

more

this

National

n,

Robert

popula¬

fill

now

about 40 million
existed

pause,

tends

however,
the

to

President,

D. Salinger, President,
New York State Association of
Life Underwriters, New York,

240-level.

study

caution,

underlying all these," the
market
"are the solid supports '

tremendous

Gutmann,

City of New York.

Benjamin

production at the peak

current

says,

cheated

the

Industrial Average today
capitalizing |ach point of in-

tion

*

i

of the

surance,

and

tures.
"But

K.

■

Bank and Insurance Stocks

Life Underwriters' Association

1929 ratio, the-Mudy then coneludes, the Dow Industrmls would
be sellinto for 781.25
nste

the

national
income,
and
personal,
private and government expendi¬

study

Harry

t't

Group In-

on

New York,

surance,

th| production in-

were

gen¬

personal

of its Committee

only 2J36 points of Dow
market price noiv prevailing for
each point in
are

dustrial

supports and strict regulation of stock market operations
by

insiders;

there

If the

farm

so-called

David B. Fluegelman, Past President of NALU and Chairman

at

dex.

factors, or
supports, include peak earnings
and dividends; insurance of bank
deposits; an "alert scrutiny of
brokers'

Industrial

Dow

its high.
The same
index for May
1|54 indicates that

keeping

are

the

in

Average

Certainly
are

on

the

attractive.

involved

more

in

a

the* basis of the figures the Philadelphia banks

decision

those interested

in

should be given to

as

Of
to

course

there

which

bank

may

be other factors

stocks

broadening their holdings,

Philadelphia bank shares.

to

some

buy but for
consideration

*'

26

L

r

Electric

4

Continued from page

(in five years), the tax
sharply, it further states.
off

The amount of

Industry

1954

Chronicle . v. Thursday, August 5,

burden of steel companies

475,000-unit level from June's

sales to the

additions to August

47-month high of 561,-

Failures Show Slightly
and

1939.

Failures

Wholesale Food Price

According to the Federal Reserve Board, consumers increased
indebtednes for the instalment purchases of automobiles,

Steel

at

contend, showed

Steelmakers

counting

are

on

a

that of July, seen as

The

5 to 10% rise in demand over

"Steel," the weekly magazine of metalworking the

or

lethargy, says
current week.

Commodity price
week and the Dun &

market

on

index

At best,

prospects differ widely, it states.

and

fidence returns to the business community.

the

situation is the way

products

appear

So far

can

as

about today's market
the recent price increases on the various steel
encouraging

most

to

been

have

be determined

no.

things

consumers, it adds.
serious resistance to the advances

accepted

by

yet developed. Such may come later, however, when fall
buying campaigns get under way and market influences come
into full play. Meanwhile, steelmakers, including the smaller in¬
has

terests,

just

have

completed

about

adjustments

warehouse operators over

Imports have, been bothersome
the past year or so, importers offer¬

and

Iron

Steel

Institute

the

that

announced

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at

beginning

week

Aug

an

average

2,

1954,

of 64.8% of

equivalent

to

1,544,000 tonse of ingots and steel for castings, as against 1,532,000
tons and

64.2%

based
For

duction
*

was

(actual)

a

week ago.

on

the

annual capacity of 124,330,410 tons as of Jan. 1,

like

week

1,430.000 tons.

month

a

A

year

ago

ago

the rate

comparable because capacity

was

was

decreased

pro¬

production

The operating rate is not

lower than capacity in 1954.

The

revenue
cars

to 0;

South and Northwest —2 to
-f-2; East 0 to -f 4.
The volume of

apparel sales was
than in

somewhat larger last week

week.

Successful

Summer

merchan¬

preceding

dise

of

in

occurred

many

of

parts

the

country, and sales of Fall
items improved. Coats, suits, dark

general sports¬

cotton dresses, and

sellers

best

the

were

wear

in

back-to-school clothes.

Department store sales on a
country-wide basis as taken1 from
the Federal Reserve Board's index
for the week ended July 24, 1954
advanced 1% above the level for

preceding week. In the previ¬
week July 17, 1954, an in¬
of 5% was reported from

the
ous

crease

that

of

the similar week

1953.

in

For the four weeks ended July 24,

1954,

an

1% was re¬

advance of

ported.
For the period Jan. 1 to
July 24, 1954, department store
sales registered a decrease of 3%
below the corresponding period of
•;

,

Retail

volume

trade

in

week

:

New

closed

York

City

the

about

even

with the similar week

year ago.

Following a fair pace

a

past

early in the week, humid weather
worked to

later

Board's

serve

store

curtail shopping.

Re¬

Federal

the

to

According

department

index

sales in New York City for

the weekly period

ended July 24,

1954, registered an increase of 4%
above the like

period of last year.
preceding week, July 17,
1954, an increase of 4% was re¬
ported from that oLJhe similar
week in 1953, while for the four
weeks ended July 24, 1954, an in¬
crease of
1% was reported.
For
the

In

or

change

was

of the

1953

week, and 201,728 bags a year ago.
Coffee was mostly steady but developed an

despite the seasonal influence of hot

narily stimulates consumption.

cotton

-

slightly

a

lower, after

lack of mill support coupled with

showing

crop

-

profit taking and

Withdrawals of 1953week ended July 16
12,478 bales, the smallest weekly volume for several
Daily average mill consumption of cotton during June,

hedge selling attracted by earlier advances.

cotton from the CCC loan during the

totalled

-

*

with

—

John

Merrill Lynch,
&

ner

Beane,

116

Pierce, FenWest Forsyth

Street.

Joins First Boston i
(Special to The Financial

CHICAGO,

111.

—

Chronicle)

E.

William

affiliated
with
First
Boston
Corporation,
231
South La Salle Street.
He
has

Strasser,

was

of

months.

-

finished

Chronicle)

Haynes has become connected

become

formerly with Lee Higginson

Corporation.
i

in early dealings.
There was increasing concern over
temperatures and the absence of any appreciable
rainfall over much of the belt.
Easiness in late trading was at¬

77,097 cars or 12.7% above the corresponding week in 1952, when

«r

E.

continued high

loadings were "reduced by a strike in the steel industry.

.

prices

weather which ordi¬

'

or

96,412 cars
increase

from

Lynch

JACKSONVILLE, Fla.

easier tone in dull

Sugar prices were firmer in the world market but domestic
raws trended
lower, reflecting disappointing demand for refined
sugar

Joins Merrill

as

tributed to

an

registered
period.

(Special to The Financial

strength

freight for the week ended July 24, 1954,
1.5% below the preceding week, accord¬

ing to the Association of American Railroads.
Loadings totaled 684,287 cars, a decrease of
12.3% below the corresponding 1953 week, but




Midwest —6 to —2; South¬
—1; New England —4

west —5 to

period Jan. 1 to July 24, ,1954,

Spot

Loadings Fall 1.5% Below Preceding Week
10,258

compar¬

the following

no

trading

percentage figures for last year are based on annual capacity of
117.547,470 tons as of Jan. 1, 1953.

Car

the

that

the week closed.
Clearance from Brazil last week
dropped to 123,000 bags, from 154,000 a week earlier, with United
States takings at 31,000 bags, against 34,000 the previous week.

1954.

60% and

the actual weekly

placed at 2,119,000 tons or 94.0%.

Loadings of

Regional es¬

levels by

1953

above the

1%

year ago.

varied from

the

last

industry's ingot production rate for the weeks in 1954 is

The
now

expanded sharply

flours remained on a handto-mouth basis as substantial price reductions failed to create
any improvement in demand.
A fair sized volume in soft wheat
flours was reported during the week.
Durham flour blends were
somewhat stronger reflecting supply tightness and the uncertain
new
crop outlook.
Cocoa prices continued to edge upward this
week on buying influenced by expectations of a tight supply posi¬
tion until late in the year when new African cocoa becomes avail¬
able and reports that Sanchez stocks at the source are very small.
Warehouse stocks of cocoa declined to 118,432 bags, from 121,085

Steel.

the

timates

a

Bookings of Spring wheat bakery

ing material considerably under domestic market levels. Now, it
appear, such stiff competition may be fading, concludes

for

Bradstreet, Inc.,

3% below to

be

level of

year.

would

capacity

independent strength as growers were
in grain and soy¬

impounding most of their grain. Trading
futures on the Chicago Board of Trade

purchases totalling 70,800,000 bushels, against
56,500,000: the week previous and 47,500,000 in \he like week last

swing in prices on imported steel.

American

mated by Dun &

re¬

esti¬

was

with daily average

Particularly significant in the market at this time is an up¬

The

Wheat showed

of the belt.

bean

schedules, it points out.

to

27.
the

prices fluctuated

still

price

their

in

at 271.99 on July
week earlier, and with 281.79 on

slight decline to.stand

a

markets last week
erratically over a wide range.
Impressive advances were scored early in the week, particu¬
larly in soybeans, corn and oats, as the result of continuing reports
of high temperatures and severe drought conditions.
i
Declines in late dealings, Jiowever, wiped out most of the
early gains and were influenced by reports of cooler weather and
substantial precipitation over a large part of the dry area.
Corn
was said to have suffered considerable, damage
in some portions

following model
changeovers, continued strong demand from the construction industries and quickening activity in general metalworking as con¬
of

registered

week

1953.

corresponding date a year ago.
Weather conditions dominated the grain

substantial buying pickup on low consumer

inventories, anticipated spurt in automotive needs

One

Index Irregularly Lower

movements were irregular during the past
Bradstreet daily wholesale commodity price

compared with 272.93 a

This

only cautiously optimistic for fourth quarter.

Most base hopes for a

r

raw

is to

the

of

volume

dollar

in

(

represents the sum total of the price per pound
foodstuffs and meats in general use and its chief func¬
show the general trend of food prices at the wholesale

The Past Week

dence, it reports.
Views

and beans were

index

Wholesale Commodity Price

Genuine revival,

however, now is not anticipated before September, possibly Octo¬
ber, with prewar seasonal market patterns increasingly in evi¬

trade authorities are

comparable 1953 figure

level.

month' will slightly better

the low point for the year.

31

tion

just about written off August as a recovery

While they have

still 6.6% above the

lambs and eggs.

coming weeks to pull the market out of its summer

month, they think volume during the

Index Hits Lowest Point

barley, cottonseed oil, cocoa

frequent.

Children's wear
was more popular than last week;
there was some early buying of

outweighed by lower wholesale costs for flour, wheat,
rye, oats, beef, ham, lard, sugar, coffee, peas, steers, hogs,

corn,

Level This Week

total

trade

credit

ago,

year

women's apparel.

heavily

Scheduled at Fractionally Higher

Output

$7.11, although it is

of $6.70.
Price advances in

a

more

clearances

Registering its sharpest drop since mid-June, the wholesale
price index, compiled by Dun & Bradstreet, Inc., fell sharply
to $7.14 on July 27, from $7.23 a week earlier. This put the cur¬
rent index at the lowest level since February 11 when it stood

appliances and the like by $178,000,000 in June. Officials
noted that the rise during the month compared with additions to
total instalment debt of $422,000,000 in June, 1953, and $732,000,000

were

The
tail

than

the

food

home

sales

to

continued

consumers

larger proportion of their

a

incomes

increased slightly

Since Mid-June

manufacturers up to and

1952. The lower figure this year, they
instalment buying was returning to normal.

$5,000 or more

week and 152 a year ago. Small
casualties, those with liabilities under $5,000 turned up to 28 from
25 but were below the 30 of this size last year.
Liabilities in ex¬
cess of $100,000 were involved in 13 of the week's failures as com¬
pared with 23 a week ago.

their

ago.

While
save

slightly below that of

ago,

year

to

trade

unchanged from a

was

.

with liabilities of

163 in the previuos

to 167 from

built by Canadian

week

—3;

195 in the
acording to
than a year
ago when 182 occurred or in 1952 when there were 152, they re¬
mained 33% below the prewar level of 291 in the comparable

operations

last week

a

services.

and

travel

dollar volume of retail

The

percentages: Pacific Coast —7 to

Higher Trend

industrial failures edged up to
week ended July 29 from 188 in the preceding week,
Dun & Bradstreet, Inc. While casualties were heavier
Commercial

is now running more than 18% behind
cumulative figure for the same interval of last year. A total

in June,

less to clothing and

directed

able

Business

month of

and 53,487 trucks have been
including last week.

turned out 5,600 cars and

1953 week.

Canadian production

cars

(revised) in the previous

week, against 6,228 cars and 1,727 trucks in the
preceding week and 8,772 cars and 1.504 trucks in the comparable

Studebaker's South Bend (Ind.) plant.

219,159

enthusiasm

consumer's

average
was

19,155 trucks

reported there were

against 17,387

1,577 trucks last

remained idle.

of

agency

in the like 1953 week.
"Ward's" estimated Canadian plants

Chrysler Corp. car lines returned to five-day operations
after being blacked out last week with the exception of Plymouth
who
worked four days.
Ford Division temporarily cancelled

the

the

week,

this country, as

week and 26,112

All

week and Kaiser and Willys

in

Although there was a pick up

apparel sales in the period ended
on
Wednesday of last week, the

recreation,

made in

week's volume,

Saturday operations last

of Last Year

Like Week

household items and more to food,

Last

despite the end of the
Chrysler Corp. strike, were month-end declines at General Motors
Corp. and Ford Motor Co. plus suspension of operations at Hudson
and at

Below

Slightly

but

Level

Slightly Higher in Latest Week
Despite Cutbacks and Suspensions
The automotive industry for the latest week, ended July 30,
1954, according to "Ward's Automotive Reports," assembled an es¬
timated 104,730 cars, compared with 105,402 (revised) in the pre¬
vious week. The past week's production total of cars and trucks
amounted to 123,885 units, a moderate rise above last weeks out¬
put of 122,789 units, state "Ward's."

schedules.

this

kwh., or 7.4%
kwh. over the

Output

U. S. Auto

"Ward's" counted 123,885 car and truck comple¬
tions in domestic plants last week against the 1954 low of 122,789
the week before and 157,991 a year ago.
down

36,000,000 above

Week Ago

Trade Volume Holds to

like week in 1952.

Meantime,

Holding

increase of

week and an increase of 627,000,000
comparable 1953 week and 1,734,000,000

the

over

estimated by Ward's

was

figure represents an

The current
the preceding

Automotive Reports on Friday, last.
The
weekly publication counted 12% fewer new car de¬
liveries by franchised dealers in July 11-20 over June 11-20, fol¬
lowing a 15% drop during the July 1-10.
In keeping with prospects for an orderly 1954 model cleanup
period, the industry is scheduling 431,000 cars for completion in
August (in one less work day) against an estimated 442,000 in
July, states this trade authority.
The statistical agency noted, however, that declining sales
could force stretchouts of several producers'
1954 model pro¬
grams, particularly those which recently made heavy unpublicized
000

This was
ended Jan. 16 of

kwh.

15% decline in July new car

industry a

automotive

Institute.

bales, or a drop of
1.2% from the average rate of 32,300 bales a day in May.

estimated at 9,139,000,00

week

the past year.
the

light

week ended Saturday, July 31, 1954,
kwh., according to the Edison Elec¬
the highest output on recordI since the
this year when it stood at 9,014,000,000

industry for the

power

tric

will go up

distributed by the electric

Census Bureau,

according to the
totaled 31,900

Week

Latest

and

September upturn in steel business after the sum¬
mer lull is strengthened by the inventory
situation of steel users,
it adds. Most of toem have cut their steel stocks to the bone. .LVen
a slight
upturn in their business will make some present inventories inadequate.
Inventories may thus prove almost as big a
factor in the market upturn as they were in the decline during

I

Commercial and Financial

Ail-Time High Record

electric energy

was

Hope for a

In

Output Attains
In

The State of Trade and

i

The.

(518)

Victor Sutro
I

Victor Sutro passed away
age

of 78.

retirement
the

Stock

tro

&

at the

Mr. Sutro prior to his
was
serior partner in
Exchange firm of .Su¬

Kimbley.

"

t

>

Volume

Number 5348

180

The Commercial and Financial Chronicle

...

(519)

The

indications of

Business

week

Activity
Latest

AMERICAN

IRON
steel

Indicated

STEEL

AND

operations

IN8TITUTE:

(percent

of

following statistical tabulations

latest week

Week

capacity)

month ended
Month

Week

on

that date,

AMERICAN
Crude

PETROLEUM

oil

and

(net tons)

94.0

Aug. 8

1,544,000

*1,532,000

1,430,000

2,119,000

AMERICAN

July
July
July
July
July

(bbls.

average

6,267,550

6,297,500

6,509,800

Domestic crude

of

Gasoline

output
output

(bbls.)

(bbls.)

Kerosene

(bbls.)

-

Distillate

fuel

oil

Residual fuel

(bbls.)
(bbls.)_

output

oil output

23
23

116,774,000

6,969,000

6,939,000

23
23
23

23,565,000

23,837,000

23,862,000

6,550,600
7,125,000
24,380,000

2,095,000

2,085,000

10,086,000

9,700,000

9,971,000

7,895,000

7,874,000

8,778,000

9,856,000

7,525,000"

Stocks at refineries, bulk terminals, In transit, In pipe linesFinished and unfinished gasoline (bbls.) at
July 23
Kerosene (bbls.) at
July 23
Distillate

•

oil

(bbls.)

fuel

(bbls.)

158,844,000

161,786,000

Benzol

AMERICAN

OF

Revenue

31,069,000

30,318,000

98.412,000

94,794.000

83,013,000

29,873,000
91,830,000

53,585,000

53,355,000

50,362,000

48,886,000

684,287

694,545

713,160

780,699

South

July 24

freight received from connections (no. of cars)

CIVIL

ENGINEERING

(number

of cars)

CONSTRUCTION

535,356

539,647

597,769

632,289

East

U.

S.

Private

construction

July 29
July 29

Public construction

$262,263,000

$259,290,000

$323,867,000

$311,332,000

143,154,000

136,166,000

173,228,000

167,693,000

July 29

construction

119,109,000

123,124,000

143,639,000
116,636,000
27,003,000

July 29

100,655,000

110,279,000

150,639,000
113,477,000

—July 29

18,454,000

12,845,000

37,162,000

State

and municipal.
Federal
COAL OUTPUT

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)
DEPARTMENT

STORE

SALES

AVERAGE

SYSTEM—1947-49

=

PERMIT

1

July 24

7,030,000

7,200,000

July 24

519,000

539,000

July 24

__

84

88

8,270,000

603,000

and

223,500,000
29,128,000

I™

VALUATION

INC.—215

DUN

—

Electric

output

FAILURES

(in

kwh.)

000

Atlantic

IIIII
-III!
IIIIIHI
IIIIIll-

(COMMERCIAL

AND

INDUSTRIAL)

—

DUN

BRADSTREET, INC
IRON AGE

New

steel

(per

Pig iron

(per

gross

METAL

PRICES

(E.

&

tin

(New

195

188

192

182

Lead

(St.

Zinc

4.801c

4.801c

4.634c

4.634c

$56.59

$56.59

$56.59

(East

$26.83

$26.92

S.

St.

BOND

millions

Total

U.

—

OF

THE

June

term

Other

goods
modernization

■

and

29.700c

29.700c

29.675c

29.525c

29.600c

29.450c

96.125c

95.750c

95.875c

79.250c

14.000c

14.000c

14.000c

14.000c

Charge

July 28

13.800c

13.800c

13.800c

13.800c

Service

July 28

11.000c

11.000c

11.000C

100.07

93.27

DAILY AVERAGES:

Personal

loans,.

Non-instalment

4,445

credit

6,588

6,776

2,215

2,181

2,197

accounts

2,679

2,639

2,781

credit

Single

1,775

1,768

1,798

payment

SEED

loans

AND

.Aug. 3

110.52

110.34

110.15

104.14

Aug. 3

115.63

115.43

114.85

109.06

112.37

112.37

112.19

106.21

109.97

109.79

102.96

Crushed

104.14

104.14

104.14

98.57

-Aug. 3

109.06

109.06

108.70

102.46

-Aug. 3

110.88

110.70

110.52

103.64

Stocks

.Aug. 3

111.44

111.25

111.07

106.21

COTTON

Received at mills

110.15

SEED

.Aug. 3

A

-Aug. 3
-Aug. 3

Group.

.

MOODY'S BOND YIELD DAILY AVERAGES:

Stocks

2.45

-Aug. 3

corporate

2.42

2.49

3.00

3.16

3.50

Stocks

(pounds)

3.15
2.88

2.91

3.22

Produced

3.04

3.05

3.38

Consumption

A

-Aug. 3

3.16

3.17

3.18

3.57

Railroad

Industrials
MOODY'S

Production

3.22

3.24

3.60

Produced

3.13

3.14

3.53

Shipped

3.09

3.10

3.11

3.38

427.3

428.7

434.7

420.6

INDEX

PAPERBOARD

Orders received

3.22

Au&-3

Group

COMMODITY

NATIONAL

ASSOCIATION:

.

July
July
July
July

(tons)

Percentage

of activity
: Unfilled orders (tons) at end of period

192,054

Stocks

204,836

239,499

199,338

250,255

88

24
24
24
24

71

92

185,853

AVERAGE

1949

=

935,273,000

151,578,000

96,142,000

174,462,000

75,610,000

198,062

193,472

June 30

370,844

411,856

Linters

161,713

99,667

145,980

117,945

123,884

122,901

67,992

61,300

81,522

46,731

60,317

(tons)

70,844

60,916

1

!.

(tons)

(running bales)—

Stocks

June

30—

176,279

Produced

93

325,610

107.21

July 30

107.04

106.49

Stocks

106.23

65,906

142,115

85,290

857

946

306

(1,000-lb. bales)—

June

30—

Odd-lot sales by dealers
Number of shares

SPECIALISTS

N.

Y.

Customers'

short
other

sales

Number

dealers—
of shares—Total sales

1

$38,764,551

1,175,227

918,902

797,701

488,900

7,592

6,425

7,062

6,07g

1,167,635

912,477

790,639

482,821

$49,653,011

$39,815,234

$33,963,305

$19,742,000

July 17

351,150

265,400

235,820

144,360

July 17

35 LI 50

265,400

235" 820

144~360

July 17

sales

359,310

326,310

320,240

248,550

OF MEMBERS

944

2,909

3.007

22,728,000

22,762,000
19,325,000

22,814,000

19,332,000

10,216,000

8,366,000

9,330,000

417.0

418.3

466.4

125

123

137

123

123

136

$1,859,455

•$1,840,702

$1,684,471

COTTON

SPINNING (DEPT.

Spinning

spindles

in

Spinning

Spindles

active

Active

spindle

Active

Short sales

377^900

204,920

9,580.810

10,368.110

9,887,280

4,510,360

9,927,390

10,775,370

10,265,180

4,715,280

346,530

Jujy 10
Ju}y J°

sales

July 10

spindle

ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
;. Total purchases
i

•

407,260

FOR

Total

.Total

sales

—

1,242,220

1,267,950

199,790

228,210

203,890

83,170

970,470

995,520

387,240

1,198,680

1,199,410

470,410

373,440

355,540

82,610

1,038,570
297,240

838,780
'

July 10

Short sales

Other

r

441,690

30

.—'July 10

28,100

13,400

307,140

95,440

330,610

335,240

108,840

transactions initiated off the floor-

Total

July 10

327,256

370,098

345,480

208,630

—July 10

39,470

58,800

38,310

38,200

July 10

484,749

530,080

372,854

240,450

July 10

524,219

588,880

411,164

278,650

purchases

Short sales

—

r

Other

sales

__

Total sales
_

Total round-lot transactions

for account of members—

Total purchases
Short sales

.

Other

1,626,656

*ZuJy JJ}
"Ju|y JO
—"July JO

—

sales

1,985,758

1,968,970

732,930

255,310

311,810

270,300

134,770

1,627,239

1,806,360

1,675,514

723,130

1,882,549

July 10

Total sales

NEW SERIES
LABOR—(1947-49 = 100):
PRICES,

—

U.

S.

DEPT.

2,118,170

1,945,814

857,900

firms

Meats
All

OF

hand

on

of

109.7

—

and foods

•110.2

94.1

105.5

87.3

92.1

.—July 27

114.2

114.2

109.9

*95.8

103.9

July 27

.July 27

foods-

commodities other than farm

value

of

value

1

110.5

94.7

104.9

-

-

Ulncludes 724,000 barrels of foreign crude runs.
Jan. 1, 1953 basis of 117,547,470 tens.

92.4

114.5

§Based on new annual capacity of 124,330,410 tons

reported since introduction of Monthly Investment Plan.




June

accounts—

of

listed
on

U.

S.

Member borrowings on other

CLASS

EARNINGS

SOCIATION

OF

•1,125,049

99,454,004
104,494
1,257,538

765,120,855

924,371,836

616,844,278

688,966,632

80.62

74.53

76,519,005

67,971,609

114,520,336

79,680,334

58,880,849

99,663,741

59,000,000

39,000,000

80.000,000

$674,939

ROADS

113,306,468

105,093,898

77.82

Issues

collateral

I

AMERICAN

:

Govt.

137,928,085

625,337,590

bonds

282,426
658,688

803,521,439

shares

34,654

•836,470

105,582,152
224,458

balances—

45,071

846,924

*

•313,426

1,235,918

S

312,301

139,187,897

U.

credit

free

listed

37,205

in

$668,533

$641,423

184,332

(AS¬

RRs.)—Month

of June:
Total

operating revenues-

Total

operating expenses

—

.Operating ratio
Taxes

—

'

-

Net

railway operating income before charges
Net Income after charges (estimated)
REAL

FINANCING

ESTATE

OF

AREAS

U.

S.

—

IN

HOME

NON-FARM
LOAN

BOARD—Month of May (000's
Savings and loan associations

BANK

omitted):

and

123,503

trust

savings

banks—
_.

Miscellaneous

lending

institutions

—-

132,771

317,314

112,049

110,861

231,372

companies

332,636

117,846

companies

130,353

330,171

326,668

239,230
310,190

250,687

$1,804,499

Insurance

$1,792,991

$1,698,634

$1,113,000
965,000

$1,388,000

$1,383,000

245,576

Total

96.9

V 114.3

1, 1954, as against the

tNumber of orders not

of

97.4

104.6
„

margin

banks

in

borrowings

UNITED

STATES

BUREAU

figure.

RESERVE

customers

and

Individuals-

;

•Revised
of Jan.

to

customers'

Member

Mutual

-July 27
July 27

products—

Processed

FEDERAL

carrying

extended

Market

Bank

'

Commodity Group—
All commodities.
Farm

19,824,000

place

Total customers' net debit balances

1

WHOLESALE

in

(000's omitted):

Member

RAILROAD

24,800
305.810

319,760

~

16,050

303,710

.

July 10

sales

Total sales
Other

■-

June-

EXCHANGE—As

STOCK

Market

1,002,160

JuJy JO

July 10

sales

purchases

THE

OF

YORK

Total

Other transactions Initiated on the floor—
.

spindle

per

3

July 3
omitted)

SYSTEM—1947-49=100—Month of May:

Cash

3u y JO
July 10
July 10

Short sales

•Other

on

(000's

hours

July

on

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

Credit

TRANSACTIONS

hours

COMMERCE):

OF

place

June

NEW

Total sales

ROUND-LOT

8.006

1,815

2,592

(SHARES):

Total Round-lot sales—
Other

6,623

1,376

Shipped

-

ERNORS

by dealers—

ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT

730

$26,585,273

TOTAL ROUND-LOT STOCK SALES
FOR

421

645

Unadjusted

$45,818,129

Ju}y 17

Round-lot purchases
Number of shares

608

Seasonally adjusted

578,884

'

.

Short sales
Other

851,534

$51,794,917

July 17
July 17

sales by

971,410

July 17
July 17

*

value

Round-lot

1,160,812

sales) t—

sales

Customers'
Dollar

■

Produced

July 17
July 17

—

Odd-lot purchases by dealers (customers'
Number of shares—Total sales

,

260
5,407

■

Motes, Grabbots, etc. (1,000 pounds)—
Stocks June 30

(customers' purchases) t—

Dollar value

.

ON

177

Shipped

STOCK
EXCHANGE-T-SECURITIES EXCHANGE COMMISSION:
AND

88,069

115,009

106,916

—

Produced
DEALERS

199,081

84,114

Shipped

>522,123

1TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

122,619

126,729
122,139

(tons) June 30

Hull Fiber

100

1,061,214,000

106,431,000

(tons)

Produced

237,654
■

74,529,000

139,760,000

'

OIL. PAINT AND DRUG REPORTER PRICE INDEX—
f

987,614,000

30—

(pounds)

(tons)

Shipped
203,751

103,821,000

Hulls-

1

(tons)

'

3.84

3.12

-

June

(pounds)

Stocks (tons)

Aug. 3

.Aug. 3

Group

163,177,000

Cake and Meal—

.Aug. 3

Group

Utilities

Public

84,728,000
124,212,000

56,418,000

94,884,000
•

3.04

3.50

197,208

114,426,000

Refined Oil—

2.87

3.50

43,605

207,564

556,447

54,013,000

30

(pounds)

3.14

3.50

22,110
356,184

307,496

i

(pounds) June
(pounds)

-Aug. 3
-Aug. 3

21,315
270,266

-

Crude Oil—

-Aug. 3

Baa

of

(tons)

(tons)

Aa

■

COMMERCE—Month

(tons) June 30

Shipped

-Aug. 3

OF

June:
Cotton Seed—

1

U. S. Government Bonds

Average

UCTS—DEPT.

>

PROD¬

Produced

.

Aa

9,692

6,669

,

*

COTTON

Group

4,117

loans

11.000c

29.700c

Average

Utilities

4,387

consumer

100.49

Public

5,335
1,493

■

30:

,

100.79

Industrials

1,565

,

credit

credit

.Aug. 3

1

20,635

9,838
5,142

RE-

SERIES—Esti-

credit

consumer

29.425c

at

Group

$27,411

20,932

OF

(000's

FEDERAL

intermediate

of

U. S. Government Bonds

Railroad

$27,520

9,980
1,563

DEPT.

June

Automobile

July 28

.

corporate

$1,234,700

5,122

S.

of

REVISED

and

as

Instalment

July 28

PRICES

$227,600

43,264,650

OUTSTANDING—BOARD

SYSTEM
short

July 28

.

at

$412,259,203

$27,779

City

Month

—

GOVERNORS

.Juiy 28

.

Louis)

$396,098,576

21,110

York

CORPORATIONS

SERVE

$44.92

at

Loujs)

$455,523,853

$1,252,000

New

Repair

at

$431,472,086
35,373,510

$520,959,882

City

CONSUMER CREDIT

$56.76

$27.33

1

York)

(New York)

MOODY'S

8,512,000

QUOTATIONS):

,

Lead

8,825,000

July 27

Electrolytic copper—
Domestic refinery at
Export refinery at
Straits

9,103,000

.July 27
.July 27
J.

M.

11,943,583
71,964,713

56,736,681

DIVIDENDS—PUBLICLY REPORTED BY

OF

(per gross ton)

22,844,154

$481,810,135

States.

COMMERCE

in

ton)

Scrap steel

29,662,286

12,921,549
81,350,212

77,107,380

93,670,999

United

mated

lb.)_.

89,526,564

106,229,302
74,491,792

107,649,034

—

York

CASH

COMPOSITE PRICES:

Finished

$21,787,064

71,572,574

41,269,931
112,266,117
64,233,097

39,149,744

ii.

Central

Total

83

9,139,000

July 29

$18,196,320

88,728,632

65,365,239

18,245,430

.

Central

Pacific

&
-

227,504,000
24,325,000

45,487,036

Atlantic

Central

U.

July 31

11,779,000

&

INSTITUTE:

ELECTRIC

235,012,000

CITIES—Month

omitted)
EDISON

42,000

21,798,000
12,170,000

11,260,000

export

Mountain

RESERVE

100

domestic

34,000

17,229,000

9,172,000

602,000

97

)

22,000

II

.

England

Outside

INDEX—FEDERAL

217,861,000
198,086,000
19,233,000

of June:

S. BUREAU OF MINE8):

(U.

19,828,000

21,957,000
9,694,000

™

(barrels)

•

BRADSTREET,

West

NEWS-RECORD:
Total

~

$24,706,132

consumption

BUILDING

South

ENGINEERING

—

218,302,000
198,440,000

20,362,000

~

(barrels)-.

(barrels)

Middle

freight loaded

220,977,000
200,593,000

—III.I

Increase all stock (barrels)

168,147,000
26,937,000

^

RAILROADS:

Revenue

output (barrels)
(barrels)

output

(barrels)-:

imports

Indicated

New

ASSOCIATION

Ago

(barrels of 42 gal¬

Refined products imports

July 24

;

output

Crude oil

July 23

at

oil

Natural gasoline

July 23

at

oil

fuei

Residual

Year

Month

INSTITUTE—Month

141,708,000

2,122,000'

1,910,000

July 23

.

of that date:'

Previous

Month

PETROLEUM

lons each)

output—dally

are as

May:

Total domestic production

INSTITUTE:

condensate

42

gallons each)
Crude runs to stills—dally average

of quotations,

cases

Ago

60.0

of

ingots and castings

in

or,

&

either for the

are

Latest

Equivalent to—
Steel

production and other figures for the

cover

Dates shown in first column

Year

Ago

*64.2

§64.8

Aug. 8

or

Previous

month available.

or

27

as

(000's

Exports

j

i

J.

Imports

OF

EXPORTS
CENSUS

—

AND

Month

IMPORTS
of

June

omitted):

829,000

933,008

r?9

28

The Commercial and Financial Chronicle

(520)

♦vi/ Continued

from

ports which

7

page

strictive

have

them

Economic Bases of U. S
the

fluctuations

fluence

of

domestic

our

which exert

great in¬
the course of world

upon

a

prices.

President,

has

as you Know,

indicated his determination not to

the

permit

development

in

proposals

the rate of economic

the

of

mately

fact

50%

exports

of

States,

Latin

sold

are

activity.
In
approxi¬

that

in

of

under consideration

now

would

these com¬

these

for

reason

various

proposals is the fact that the post¬
reduction

war

in

demand

has, in

commodities.

great significance to
addition, the President
a

hew "long-term" stockpiling pro¬
gram and has directed the Office

some

cases,

the

To

that

extent

the propsals would be effective,
however, they would improve the
position of our producers by

worsening theirs. There is
probably nothing in our economic
relations

objectives

can

in

the

to

minerals

40

light of broader terms of

reference.
and

35

In

minerals

acquiring
this

under

metals
new

se¬

curity

program preference will be
given to newly mined metals and

minerals

of

with

withheld

materials

from

ma¬

be

will

exerting

erally depressing effect
commodity markets.

gen¬

a

world

on

Since
«bout

the

producers of the commodities in¬
volved

is

warranted, it would

point

desirable from
of

all

of

States

the

takes

goods

ex¬

ported

by the Latin American
countries, it is only to be ex¬
pected that they should have a
great interest in the tariff policy
which
a

we

they

Especially at
present when

pursue.

time such

the

as

face

declining
prices for
many of their exports, and when
they know that without profitable
two-way trade with the United
States they cannot hope to main¬
tain
their
standards
of
living,
which, despite all the advances
they have made are, on the aver¬
age, still very

low by comparison

with ours, the trade

policy which

adopt is of very great signif¬

we

icance to them.

Their anxiety is

particularly acute at present be¬
there

cause

are

a

modities which

portance
Lathi

to

number of

are

one

of

American

of

more

or

com¬

major im¬

countries

the
con¬

cerning which there have for some
time been almost continuous
threats of tariff increases

or

other

restrictions.

These

commodities include pe¬

troleum,

upon

prosperity

which the economic

of Venezuela

depends

and which at present

underlies a
very favorable trade relationship

between

the

United

and

States

Venezuela.

Last
year
90%
of
foreign exchange
from petroleum and 24% of

Venezuela's
came

all its
the

petroleum exports

United

States.

came

to

They include

lead and zinc which together last

accounted for about 22%

year

the export trade
<of that

of

of Mexico,

Peru and

11%

16%

of Bolivia.

We

imported

about

1,050,000
barrels a day of petroleum prod¬
ucts in 1953, to meet a consump¬
tion

requirement of about 8 mil¬

lion barrels a day. In other
words,
imports supplied about 12% of our

consumption.

There

bills

are

now

before Congress which would shut
gout four-fif'hs of

ports

of

residual

our

current im¬

fuel oil,

which
principally from Venezuela,

^mes

ani3 which would

severely restrict

imports of other crude petroleum
predicts. Some would oblige the
Tariff

Commission

quotas
ever

increase

or

injury

can

to

impose

duties

when¬

be shown to any

"Ln-S'5
•trf

i

is

row

1/16

.about 8.2%

zinc is

now

per

a

duty

pound

or

of the 1953 price and

subject to




a

duty of

our

in

which

competitive

prevailed,

conditions

much mbre import¬

was

the fact

than

ant

tries

of 48 states,

that

indus¬

our

protected against
ports from other countries.

im¬

were

such

these, the position of the United
is

that

while

we

are

pre¬

could

largely for our
neighbors to de¬

The flow

of loan funds

undoubtedly

tia^ increased.

be

substan¬

Their

for

ability to
borrow depends, of
course, on the

sums

basic soundness of their financial

as high,
and in some
higher, than the rates that

position

and of the projects for
which they seek financing. These
depend upon many factors,

in turn

including not only the volume of

In

public

their

of

and

certain

fields,

utilities, the
United

such

as

rate

average

earned

re¬

by private capital in
is

States

considerably

exports

tries

be any

can

substantial flow of private

as

there

ability

until the situation is

their

radically al¬

number

basic

at

present

a

or

in Rio de

have

would

before

the

be

to

flow

overcome

of United

States

in

our

influence

may know, the United
and
the
other American

States

Republics

that

and

on

you

widely held in Latin America

are

attitudes

right to

our

coun¬

nations

close limitations

which

of

a

these

action.

As

also

are

To

Latin American

sovereign

are

investment funds into such fields
tered.

financial

extent

factors within the determina¬

are

tion of the

how there

their

stability.

considerable

very

it is difficult to

see

but

monetary

higher than in Latin America and

There

of considerations

view

In
as

States

termine.

is

could be earned in Latin America.

the

area

oppor¬

States

almost

cases

much more

large free trade

United

of capital at rates of return which

turn

likely that the devel¬
opment of our industry in a very

coun¬

of

investing exceedingly large

American friends refer, it appears

scheduled

are

to

meet

Janeiro, Brazil, this fall

Conference

a

Ministers

of

of

the

view¬
inter-American re¬

our

with

the Latin

Ameri¬

alleged

that

invading

ing

now

not
laterally to reduce
the

time,

same

uni¬

prepared

are

we

tariffs.

our

At

countries, are attempt¬
to control them, and do not

wish

them

ized

to

because

ting the report of the Commission

lieve that

they will be influenced
by the fact that in order to pro¬

comparison

vide

increased

States.

their

growing

Such

relief

be

President's

Congress

Foreign

30

with
the

to

message

March

on

would,

consistent

transmit¬

Economic

Policy. In
supporting the Commission's rec¬

dent stated
it is

tic

on

for

assuring

defense,

that he

raw

the Presi¬

believed

that

normally sound that "domes¬
for

sources

quired

for

materials

raw

military

re¬

purposes

should be assured by direct means
and

not

by

tariffs

and

tive

the

of

total

picture of

trade

our

relations with the other American

republics.
action

they

There

in

the

to

tions with

courses

field

their

of

which

pursuing which

are now

harmful

are

trade

economic

are

rela¬

and which

us

they seek
part to justify by allegations of

in

various kinds

to the trade

as

pol¬
For example,

icy of this country.
the

criticism

Latin

is

America

wish

them

often

that

not

industrialize.

to

do

In

support

of

this

pointed

out

that

higher

more

it

is

tariffs

products

materials,

their

position
our

are

semi-manufactured and

on

manufactured
raw

in

made

we

thus

than

on

making

it

difficult for them to process
materials before export¬

raw

populations

is

estimated

the

of

funds

economic

that

that

from

savings.

own

been

have

into
Latin

gone

in

Latin

America's

The remainder has

supplied

foreign inves¬
tors, private and public.
It is, of
course, upon Latin American sav¬
ings that the other American re¬
by

publics

must continue primarily
rely for economic development
funds.
The
United
States
has,
however, been a significant source
of foreign capital.
The increase
to

of United States direct

private in¬

vestment in Latin America of ap¬
per year

since the Second World

War, has
helped to finance a considerable
portion of the foreign currency
of

costs

their
Loans

economic
of

and

Bank

the

the

develop¬
Export-Im¬

International

Bank

argue that the United States grew
to industrial

Latin America's needs for

have

also

helped

supply

capital

goods from abroad.

help

United

of tariff protection for its
industries.
They therefore state

would

private capital
undoubtedly be available

that the United States should uni¬

to

the

Latin

laterally reduce its duties

in

a

ports

J(rom Latin America while

agreeing

that

increase their
from

im¬

on

they

maintain

tariffs

or

imports

on

the United States.

It

must

tariffs

do

be

admitted

make

it

wanted
be

States on

it harder for

countries

Latin

from

ports
are

Latin

favorable.

Ap¬

of such im¬

the free list and they
therefore not subject to
duty.
are on

Furthermore, the
duty

on

average

dutiable

Latin

America

a

much larger scale than

In

it

the

1953

done

United

ica

is

exceedingly small.

ment

private
have

we

America,

and

been built up to this

made

which

figure

in

has

over a

States

has

In

years

probably

respect to the alle¬

gation that United States

by comparison with domes¬

Latin

vestment

in

the

United

States

during 1953 in the amount of $55.7
billion.
The

Latin

would
from

American

undoubtedly
the

United

investment

countries

gain
of

much
further

States private capital. To
would
mean
increased

it

economic

development with the
many benefits that it brings.
In
terms

of

increased

income, how¬

is

belief

our

that

not

the

only

United States but the Latin Amer¬

ican

countries

Conference

should

go

the

to

with

positive
pro¬
grams for meeting the problems.
Their stake in maintaining and,
if possible,
improving the gen¬
erally
good
economic
relations

corpora¬

which

exist
is

areas

confident

the

between

great

as

as ours,

within

that

two

and I am

the

frame¬

American

Canada is approximately

times,

America
to

the

great

as

and

that

north

in

as

Latin

With First Southern Inv*

neighbors

our

would

(Special to The Financial Chronicle)

and

resent

BOYNTON

BEACH,

know to be untrue the allegations
that
our
investments
influence

Charles B.

their

ciated with First Southern Invest¬

economic life.

Although there were undoubt¬
edly abuses in the past, the record

ors

Barnhart

Corporation,

is

Fla.

now

—

asso¬

Southwest

First.

Avenue.

of United States business in Latin
America

good.

has

been

ican

rather
than
that the responsi¬
bility devolves for seeing that any
remaining abuse is checked and
our own,

that

business

in

conducted

terest.

the

Today,

fact that

a

Latin

national

with

in

measures

further

of the Latin

to

as

investment

materially

affiliated

&

12T

^

TAMPA,

Street.

—

Schuyler

with Merrill

S.

Lynch,

With Federated Mgt.

'5

(Special to The Financial Chronicle)

could

their

Fla.

now

Pierce, Fenner & Beanel.

discourage

which

facilitate

Kidder

Co.,

Hunter is

American governments have gone
so far in harassment and
restric¬
tive

George W.

—

become

(Special to The Financial Chronicle)

sinned

more

several

has
M.

With Merrill Lynch

it

foreign business in
is

A.

North Main

in¬

that

sinning and that

sectors

some

ORLANDO, Fla.
Newhart

countries

believe

I

America

against than

their

in

1

(Special to The Financial Chronicle)

,

governments,

upon

is

Kidder Adds to Staff

increasingly

It is upon the Latin Amer¬

WORCESTER, Mass. —John F.

eco¬

nomic

Morse

ever,

Management Corp., 287 Park Ave.

vestments

development.
It is, how¬
for them, rather than for us,

is

now

with

Federated:

to determine the rate at which in¬

should

countries

to

and

flow into
have

we

capital

encourage

that

we

to

do

not

wish

Joins Hayden, Stone

their

desire

no

go

the

into

Latin

*

(Special to The Financial Chronicle)

BOSTON, Mass.
Rose
&

is

now

with

—

Vincent

G.

Hayden, Stone

Co., 10 Post Office Square. Heformerly with Louis P. Motl

was

&

Co.

ize, to which I also made refer¬

Bank

com¬

States

actively formulating its
for the Conference.
It

over
work of our respective national
countries, it economic policies a good deal of
may be pointed out that on a per progress will be achieved at Rio
capita basis United States invest¬ de Janeiro.

the

field.

example, it is small in

thoroughly

United

very

position
is

to be

are

The

tions seek to exercise control

tic
private
investment
in
the
United States during any one year.

them

tariffs, especially

With

ization of Latin America and have

increased

manufactured products.
They
have also instituted a large num¬
ber of other restrictions on im¬

domestically in the United

small

parison with domestic private in¬

8.4%.

exceedingly small in
with the amount in¬

ference and

„

vested

sought to promote the industrial¬

very

was

pri¬

Latin

period of many years, is actually

generally

more

their

direct

For

than any major
trading
country of the world to reduce its
tariffs.
During the same

on

of

which

The $6
invest¬

from

addition, during the past 20

into

With reference to the allegation

imports

is

low.

rate of

flowing

ences
earlier in discussing trade
problems, it might be pointed out
that much of the private capital
that
is
now
going into Latin
America is going into industrial
undertakings. Further more, as a
Government, we have
steadily

against

billion

very

is

in the United States,
our
private investment in Latin Amer¬

the

general, however, the tariff
treatment accorded bv the United
imports

capital

States

American countries to industrial¬

States

is

vate

United

of

capital.
Measured
domestic private invest¬

In

America

amount

countries where it is not wanted.

ment

proximately four-fifths

source of raw materials

a

Private capital could

public

Americans
to
sell
semiprocessed and processed goods to
us than to sell us raw
materials.

to

wish them to be

available by the United

made

could

Latin

American

larger volume if they
and deliberately tried

to attract it.

our

that

States

much

ucts.

is

proximately $440 million

port

the

90%

industrial¬

become

we

market for industrial prod¬
As I have indicated earlier,

a

the

10

over

development

supplied

merely

ment in

America in recent years have been

ment.

with

they

effective

an

tion for their young industries and

greatness

for

this end.

to

is

tain

us.
They also main¬
they need tariff protec¬

income

Financing Development

ing them to
that

real

conditions

means

import
one part

are

ductivity and that encouraging in¬
dustry to develop under competi¬

It

however, only

we

must increase their economic pro¬

quotas."
This is,

you will make up
a large
part of the agenda for that Con¬

riers,

are

on

be

provided in
that would not restrict

imports.
the

to

the

capi¬
Latin

discussed.

talists

America

way

it

States

American

being retarded by a lack of tariff
protection.
In doing so, we be¬

for

United

Economy

countries, as with other coun¬
tries, for a reasonably orderly and
reciprocal reduction of trade bar¬
can

the Latin American countries have

subject to

cents

be

period,

domestic oroducer.

which

the
Latin

of

American

existence

the

and

of

of that

United States, to

growth

in

willing to
examine sympathetically with our
Latin American neighbors specific
situations where they believe that
their
industrial
development is

lations

materials

United

50%

policy may have had

industrial

American

Latin
the

tunities

America

Latin

with

ommendation
Trade

the

is

Latin

why additional
capital does not flow

increased. For example, it is often

that relief to our domestic

furthermore,

these

which trade

the

are

effect

the

to

into

ital, the rate at which additional
public loan capital will flow into

In fact one of the

reasons

United States

tries

investor

negotiate

these commodities. To the

on

the

terials

Ameri¬

materials.

raw

reference

Latin America.

principal

States

gain by investing in

take

extent

some

buys and stockpiles domestic

With

to

or Finance.
The prob¬
lems which I have been
discussing

of other areas, including
Latin America. To the degree that
Government

exportation of

United

little

private capital could be materially

dustries

States

Latin

exportation of
products than to the

has

pared, subject to approval by Con¬
gress
of adequate authority, to

highly

United

raw

the

ever,

Thursday, August 5, 1954

countries at the present time
that is as critical as the action we

origin. The
program will, nevertheless, have
indirect benefits to the mining in¬

domestic

the

on

not

the

to

manufactured

further

<of Defense Mobilization to review

for

agement

on

modities.
The

taxes

do

of

apply to
goods.
Many
of
them have multiple exchange rate
systems which, at times, have the
effect of giving greater encour¬

double

than

more

both of

on

should

the

has announced the initiation of

;

are

United

American

very

In

about

or

There

adversely affected our
producers, just as it has Latin
American producers of the same

this determination

them.

pound

per

the duties

this

country of any material decline in

be

cents

8.3% of the 1953 price.
which

The

view

7/10

export

res-

Some

manufactured

Latin-American Relations
economy,

more

tariffs.

which

materials

—

often

are

than

..

.

applauded

has
the

progress in this
the Export-Import

established

was

made
Latin

loan

in

1934,

commitments

American

than

countries

it
to
of

billion, of which
considerably more than one-half
has

been

These

$2

have

development
gram

since

committed

loans

made

stantial contribution

Our

in

a

BOSTON, Mass.—Abbott G. Allbee, Ronald J. McKinnon and
Irma I,.

O'Donoghue have become

associated

with

Investors

Plan¬

ning Corp. of New England, Inc^

68

Devonshire Street..

sub¬

to

industrial

Latin

America.

cooperation pro¬
has contributed substantially

to the same

objective.
case

With E. E. Mathews

1

(Special to The Financial Chronicle)

BOSTON, Mass.—Gene
mond

is

now

with

S.

Ray¬

Edward

E.

Mathews Co., 53 State Street.

1945.

technical

As is the

Planning

(Special to The Financial Chronicle)

their

Since

more

Three With Inv.

with private cap¬

With

Marache, Dofflemyre

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Daniel

R. Gorman is

now with
Marache,
Dofflemyre &
Co.,
634
South
Spring Street, members of;the Los

Angeles Stock Exchange.

!

yolume 180

Number 5348

29

(521)

The Commercial and Financial Chronicle

»..

California Investors Add
Chronicle)

(Special to The Financial

Public

Our

Utility Securities

Reporter

ANGELES, Calif—Meyer
Berner, Lew M. Matsumoto, James
LOS

Governments

on

A few years ago
tant electric utilities

standing in

the

certificates will be refunded by either a one-year

the over-counter* stocks of the three impor¬
serving the State of Connecticut were out¬

utility list

answer

made

comparatively little progress on the upside—in fact none of
to be selling higher than in the year 1946.
Following
the approximate price ranges as compared with the Dow Jones

to

seem

utility

2y8s, there will be an extension in
a favorable development.

new

average:
Connectict

Connecticut

1954__

Hartford
Electric

Power

Light & Power

42

18-15

-

38

58-51

60-52

1953—

16-15

41-37

54-50

16-15

39-36

43-46

53-48

15-13

39-34

49-45

47-41

..

'

money

market

is

1950—

16-13

38-33

54

44-37

to switches but also to new money

15-13

38-31

50-44

41-33

in

1948-

15-13

42-33

57-46

36-32

1947__

17-13

50-38

70-54

38-32

1946-

18-15

58-41

73-60

44-33

1945-

16-11

55-42

68-53

39-26

45

-

the

♦Hartford Electric

Light is also traded

utilities

Connecticut

have

would not be characterized

as

for the decade

were

ended

1953

the American

on

enjoyed

as

From

companies
in

100-200%

investment

an

standpoint,

are

the

however,

Connecticut

in

recent

years

in

issues

recent

years

has been their very stability, even

While

change. In 1953 Connecticut Light & Power's
earnings of $1.03 were the same as in 1950, but the dividend had
been increased from 82lkc to 88c. Connecticut Power Company's
dend rate
ford

derives about 40% of its electric
16% from commercial, and
30% from industrial sales, the remaining 14% being principally
sales to other utilities. Industrial service is well diversified with
metal

non-ferrous

products

the

largest

tomers.

that

bills)

along the savings to cus¬
with sales increasing

have

Light

Electric

insurance

and

Street, members of the Los An¬
geles Stock Exchange.

PORTLAND, Oreg.—Arthur W.
Abeita is now affiliated with Pa¬
cific Northwest Company,

have been

well

as

because commitments of

these

mainly in the tax exempts and stocks, with
preferreds being bought for income purposes.

King Merritt Adds
(Special to The Financial

FT. LAUDERDALE,

L.

vin

Atkins has

Chronicle)

Fla.—Mar¬
added to

been

Merritt & Com¬

Inc.

Joins Roman & Johnson
(Special to The Financial Chronicle)

FT.

Fla.—Ar¬

LAUDERDALE,

thur S. Pentland is now

connected

Johnson, 451 East

Roman &

Olas Boulevard.

gone

With Goodbody & Co*
(Special to The Financial Chronicle)

MIAMI, Fla.—Virginia R. Chastain has

Companies Acquiring Corporates

body

joined the staff of Good-

14

Co.,

&

Northeast First

Avenue.

largely into corporate bonds.

cleaning up

process

which has been going on in

both

and municipal markets will, it is believed, have
beneficial effect upon the longer-term government obligations.

a

U. S. TREASURE

It

STATE

reported that there are certain investors around now who have
making commitments in governments in preference to se¬
lected high grade corporate bonds.
is

Company

Wilcox

Building.

casualty companies have not been very

the government market

the corporate

been

according to
in the 1959 and 1961 maturities, and the new 2Vs% re¬
bond has also been well taken by these institutions in

Out of town

pany's business is entirely electrical with revenues of about $21
a year.
The company did its first equity financing since
1928 last November, with 98% of the shares offered sold by sub¬

advices,

million

funding

the "when

residential, 25°f0 commer¬
municipal and wholesale. The com¬
pany maintains close relations with Connecticut Power Company;
it owns about 60,000 shares of the latter company's stock and sup¬
plies the power requirements of a large portion of the other
company's territory on a continuing contract.

scription.

in

The

kwh.
raise. Moreover, residential costs

obtained its rate increase
about a year earlier than the two other companies, so that the
results were reflected in the 1953 increase in earnings. This com¬
Hartford

joined the staff of Hill Rich¬
&
Co., 621 South Spring

ards

pany,

companies
Treasuries,
with indications that there have been some fairly good-sized sales
which have taken place from time to time. It is also reported that
the funds released from the sale-of the government obligations

its rate structure for commercial and

was

Hefnej^

Holloway, Jr., John

E.

Jones, Jr. and John W. Tolly

have

banks,

According to reports, certain of the life insurance
of the intermediates and longer term

the equivalent of a
had increased faster, it was estimated.
to

recently offered railroad se¬

have been sellers

(adding about one-third of a cent per

customers

J.

George

Hanover,

Cornelius
W.

the staff of King

Life

Results have been very encouraging,

the fuel surcharge in

get funds that were put into

commons as

much as 23% in one

industrial

ANGELES, Calif.—Harold

I

concerns

division. The company planned to ask for
a'residential rate increase of about $1.5 million this year, feeling
as

S.

Las

Fire

general rate increase was obtained last October,

October and rates were reduced to pass

Chronicle)

(Special to The Financial

with

active

but
the company was allowed a return of only 5.6% on the rate base
presumably because of its unusually low cost of capital.
Connecticut Power Company also received natural gas in
A

Five With Hill Richards

time.

planning further expansion, with 217,000 kw. generating capacity
on order. The company now serves natural gas throughout its area,
which became available when the Algonquin line was completed
last fall.

with

Pioneer Enterprises.

ing higher income non-government obligations, so that they are
not likely to be buyers in the Treasury market for quite some

The company is

item.

making

according to advices, continue to be sellers
on balance in
both the intermediate and long maturities of gov¬
ernment obligations. These eliminations have not been too sizable
and the market has been able to take them in stride.
It is still
evident that these banks are not having too much trouble in find¬

business,

residential

are

Savings

$3.29, but the $2.75 dividend remained unchanged.

from

to

busi¬

With Pacific Northwest Co*

the important buyers in

Savings Banks Favor Non-Treasuries

the $2.25 divi¬

Connecticut Light & Power

revenues

exten¬

curities.

in the four-year period

Light's earnings increased

Electric

from $2.96 to

have

short-term maturities in

order to

With the aid of a rate increase, Hart¬

unchanged.

was

East

Street

investment

the

He has receently been

ness.

past, because they have been putting money into the new corpo¬
rate bonds. It is reported that both the public and private pension
funds were rather sizable sellers of the near-term Treasuries in

net

earnings in 1953 were $2.40 vs. $2.50 in 1950, and

City member banks, according to reports,

government market, with indications that the public
switches out of certain of their intermediate
order to step up income as well as
to nail down profits.
Private pension funds have not been as
active in the long government market as they were in the recent
and

earnings and dividends of some other companies have in¬
creased substantially in recent years, they have shown compara¬
little

in

engage

extend maturities

long

ones

share

tively

Virginia

1506

at

reopened

has

Norburn & Co. with offices

L.

R.

Va.—Ran¬

W.

Norburn

L.

(Special to The Financial Chronicle)

the

to finance construction programs.

though this factor is important from an investment angle.

dolph

LOS

Pension funds continue to be among

Perhaps the major reason for the relative lack of interest in
these

number of investors who do not want to

a

Pension Funds Active

bonds of all three
an important factor

All three companies have com¬
paratively high equity ratios although they have sold very little
stock

commitments in selected issues
appear to
have been

securities

ligations. There have also been reports of some maturity
sions by these same institutions in the tax-exempt issues.

appraising any utility stock.

common

distant

important buyers of the longest eligible 2y2S, with
the September 1967/62s being the maturity which has been getting
most of this buying. The loan trend in some of these institutions
has been down very sharply and, in order to protect earnings,
commitments are being made in the highest income Treasury ob¬

during the decade.

sound.

very

most

been among the

follows: Connecticut Light &

The mortgage
rated Aaa by Moody, which is

seem

The

The New York

growth but
Gains in revenues

88%, Connecticut Power 81%, Hartford Electric Light 60%.
During the same period the average gain for all electric utilities
has been about 88%, and a number of "growth" companies have
revenues

list.

CHARLESTON,

beyond the middle-term range.

Stock Exchange.

Power

increased their

Own Investment Co.

getting the bulk of the new money buying because investors are
income, and they have to move out maturities in
order to get it. However, this does not mean that the intermediate
term issues have not been in for important buying, because there

normal

"growth" stocks.

R. L. Norburn Resumes

still looking for

are

companies

Hill Richards & Co.

good condition, because

in

1949

The

Co., 520 South Grand Avenue. Mr.
Cole was formerly with California
Investors and Mr. Crozier with

This is con¬

maturities.

investors
have ample funds and these are being put to work not only in gov¬
ernment securities, but also in corporates and tax free obligations.
The volume and activity has been on the sizable side, due not only
The

54-48

1952__

ANGELES, Calif.—Don W.

LOS

Money Market in Good Condition

Utility Average

HammiH

Cole, Russell C. Crozier and Leona
L. MacGregor have become asso¬
ciated with Shearson, Hammill &

Dnw-Jones

Light

Wil-

3924

Investors,

Boulevard.

(Special to The Financial Chronicle)

sidered to be

Year—

1951

appeal to those that are looking for a bit more income
by the needs of short-term liquidity. Likewise,,
the extent that there will be an exchange of the 2%s for the

will have

and are not bound

the

to

With Shearson,

There were, however,

in the money markets who

some

However, it is interesting to note that while the rest of the
utility list has been advancing substantially, these stocks have

are

for.

had been expecting a one-year
The
1% certificate instead of the iy8% one which was offered.
Treasury, by giving holders of the maturing certificates an option
to take either a one-year issue or a short bond, have a package
deal which will appeal to most owners of the August and Septem¬
ber maturities. The 2y«% bond, which falls due on Nov. 15, 1960,

as

California
shire

just about what

a

the financial district has been looking

appeared to be that they were local favorites with
Connecticut institutions and private investors.

them

six-year and three-months 2Vs% bond, was

or

"blue ribbon" stocks. Sometimes
analysts found it hard to explain why these stocks sold so high in
relation to earnings and dividends as compared with other issues,
and the

iy8% certificate

D. Preston
staff of

Gilbert

added

been

have

announcement that the August and September

The Treasury

The Connecticut Utilities

and

Nolan

P.

By JOHN T. CHIPPENDALE, JR.

By OWEN ELY

and

.

commercial banks have been active,

issued" market.

MUNICIPAL
SECURITIES

Revenues last year were 31%

cial, 27% industrial and 15%

Says Mr. Rhee
the

(Special to The Financial Chronicle)

€23

Cottingham
South

has

Hope

Street, members

of the New York and Los Angeles
Stock Exchanges.

has

recently

Webber,
Hemphill,

Noyes

with

&

Paine,

Curtis

&

Co.

In

and
the

past he conducted his own invest-*
ment

business

in

LOS ANGELES, Calif.

Los

Angeles.




Franklin Delano Roosevelt

Riese

has

been

—

added

Henri
to

the

&

Curtis, 626 South Spring Street.

Ariz.

—

William W.

Lambuth has formed Lambuth

&

Inc. with
Security Building

Company

Investments

offices

the

to

in

conduct

ness.

with

Mr.

an

investment

Lambuth

Dean

Witter

was

&

busi¬

formerly

Co.

especially

Department, and that is one of the main
causes of Asian problems today.
"The Americans have not got the common guts to

the State

face

W. W. Lambuth Forms Co.
PHOENIX,

invited and allowed the

Communists to infiltrate the government,

staff of Paine, Webber, Jackson

Mr. Cottingham

been

Jackson

Paine, Webber Adds

(Special to The Financial Chronicle)

M.

Calif. —Harry
become asso¬
ciated with Lester, Ryons & Co.,
LOS ANGELES,

A.

i,

warnings and your fathers

warnings (of Communist

paid no

With
Lester, Ryons & Co.

H. A. Cottingham

...

heard
aggression), but you
attention. For instance, your late President,

"You heard the

the

problem

(of

meeting

the

Communist

its warnings
to the Communists because you don't really mean
them and the Communists know you don't mean
threat). The United States is so mild in

them."—Syngman Rhee.

Aubrey G. Lanston
/

8i Co.
INCORPORATED

15 BROAD

live, sir!

all, this is

a very

45 Milk St.

231 So. La Salle St.

BOSTON 9

CHICAGO 4
ST 2-9490

After

ST., NEW YORK 5

WHitehall 3-1200

real world in which we

.

HA 6 6463

30

The Commercial and Financial Chronicle

(522),

.

..

Thursday, August 5, 1954

* INDICATES

Securities

Now in

Registration

ACF Brill Motors Co.

NEW

ISSUE

CALENDAR

August 5

American-Canadian Oil & Drilling Corp.
May 12 filed 1,500,000 shares of common stock. Price—
At par ($1 per share). Proceeds—For drilling expenses
and acquisition of additional properties for development
and exploration, and related activities.
Office—Dallas,

(Bids

Bonds

increase

Palm Lane,

(Bids

Trans-World

(Charles

Office—373 E.
Underwriter—None.

subscription by

Co.)

$293,750

Phoenix, Ariz.

Tindell, both of Spokane, Wash.

Firing

Telephone Co

Webber, Jackson & Curtis and

Kopp

Scientific, Inc

•

filed 105,000 shares of cumulative preferred
stock (par $50).
Price—To be supplied by amendment
Proceeds
To
redeem
two issues of $2.50
preferred

$15,000

Corp.r__

(Teden

&

Merrill Lynch,

$297,500

shares

of common stock (par $1), the preferred shares
being offered for subscription to holders of outstanding
preferred stock of record July 7 on l-for-10 basis, and
the common stockholders to have right to subscribe for
Ifte new common stock on a l-for-10 basis; rights to ex¬
pire on Sept. 24.
Price—For preferred, $48 per share;
and for common $12.50 per share.
Proceeds—To reduce

bank

loans.

Underwriter—None.

Arkansas Natural Resources Corp.
June 11 (letter of notification) 299,500 shares
stock

mon

Underwriter—Eaton

New York, N. Y.

ic California Electric Power Co.
Jul.y 21 (letter of notification) 8,000 shares of common
stock (par $1).
Price — At market (on the American
Stock Exchange). Proceeds — To Mono Power Co. (an
affiliate)* to retire indebtedness. Underwriter—Wagenseller & Durst, Inc., Los Angeles, Calif.

$2,023,500

Preferred

Staats

&

Co.; Hutchinson & Co., and Rauscher,
&

Pierce

Canada

Co., Inc.) $1,500,000

United Funds Canada Ltd

ore.

(Glore, Forgan & Co. and Francis I.
about

duPont &

Co.)

derwriters—Bache

$25,000,000

&

August 12

program.

Underwriter—To

be

(D.

determined

★ Atomic Instrument Co., Cambridge, Mass.
July 29 (letter of notification) 31,632 shares of common

Gleich

Canada General Fund

Boston,
Amott, Baker & Co., Inc./
both of New
York; and Naumann, McFawn & Co., De¬
troit, Mich.

Mass.; Fahnestock &

Co. and

Automatic Firing Corp., St.
Louis, Mo.
30 (letter of
notification) $300,000 of

June

convertible debentures due
Aug.

$147,500

Limited

Blauner & Co.,

August 17
New

Common

(Bids

11

(Tuesday)

(Blair,

Rollins

&

EDT)

a.m.

Thompson-Starrett

Co.,

Co.

Inc.

and

$8,700,000

Deetjen

&

August 18

amount.

(Wednesday)

(Bids

be

to

invited)

Bonds

EDT)

noon

to

be

L_

Bonds
Bonds

(Bids

*

$25,000,000

Northern States Power Co

1, 1961 (convertible at

$20,000,000

u

each

tal.

Underwriter—White & Co., St. Louis, Mo. Dealer
Representative—Geo. A. Searight, 115 Broad¬
York, N. Y. (telephone BArclay 7-8448.)

way, New

★ Axe-Houghton Fund A,
Inc., N. Y.
July 30 filed 500,000 shares of capital stock.
market. Proceeds—For
investment.
Basic

June 28
mon

(par 10 cents), of which

(Tuesday)

California Electric Power Co
(Bids

to

be

invited)

(Bids

Western

be

to

invited)

are

to

(Bids

invited)

D. C.

Preferred

n

Natural Gas Corp., Santa
of n°tlficati°n) 748,000

.

(Tuesday)

New England Electric System
(Offering to

flve.cents>- Pr'ce—40

(Bids

Fe, N. Mex.
shares of

commoi

cents per share.

ceeds—To acquire
properties and leases.

Office

—

Pro-

Blatt

Cherokee Utah Uranium Corp.
June 24(ietter of notification) 6,000,000 shares of capital
stocki (par one cent). Price—Three cents per share. Pro¬

|

Common

stockholders—bids

to

be

to

be

invited)

September 30
Louisville

&

Nashville
(Bids

to

be

Bonds

invited)

$20,000,000

Bonds

invited)

stock (par
626,204 preferred stocki purchase war¬
rants .being offered for subscription b,y common stock¬
holder of record Aug. 2 on the basis of one share of
preferred and an option to purchase one additional share
of preferred stock (at 50 cents per share) for each two
50

4

$30,350,000

(Monday)

to

be

October

invited)

5

Bonds

$20,030,000

(Tuesday)

Indiana

11

a.m.

EDT)

& Michigan Electric
(Bids

11

a.m.

EDT)

Bonds

Co

Preferred

$4,000,000

Philadelphia
.

Pittsburgh

San Francisco

Private Wires




to

all

offices

Chicago

Cleveland

to

Bldg., Santa Fe, N. M.
Corp., New York.

be

invited)

Bonds
$18,000,000

Underwriter—Hunter SecuritJei

stock

—For

(par 10 cents).

Price—25 cents

mining operations.

per

share.

lege);

Office—Salt Lake City,

Statement effective July 28.

Vc Chute Canyon Uranium Co.
July 26 (letter of notification) 1,500,COO shares of.common
For

drilling and

par (10 cents per snare).
Proceeds—
exploration. O fiee—334 Judge Bldg.,

Underwriter—James E. Reed Co.,

Salt Lake: City, Utah.

Cdfisol. Edison Co. of New York, Inc.
April; 7 filed $50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds---To be
applied towards cost of redeeming $27,982,000 New York
Steani Corp. first mortgage bonds and $25,000,006 West¬
chester

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of

purposes.

/Underwriter—None.

Salt Lake City, Utah.

$15,500,000

Wisconsin Power & Light Co
(Bids

shares held (with an oversubsciiption pr^v

stock/ Price—At

Indiana & Michigan Electric Co
(Bids

and

general corporate

Utah.

Public Service Co. of Colorado—.
(Bids

cefrits)

rights to expire on Sept. 30. Price—55 cents per unit.
Proceeds—For development program and working capital
and

Boston

Office—65 East 4th South,
Brokerage

Chief Consolidated Mining Co.
<f 24$ filed
1,252,408 shares of preferred

common

(Thursday)

RR

October

New York

expenses.

La^e City, Utah. Underwriter—Cromer

Co., Salt/Lake City, Utah.
•

$7,500,000

Northern States Power Co

22:w

Underwriter—None.

tal.

June

September 28

'

.'

Cherokee Industries, Inc., Oklahoma City, Okla.
May 10 filed 5,000,000 shares of class B non-voting com-,
mon stock (par 1 cent).
Price—$1 per share. Proceeds—
For cobstisiction, operating expenses and working capi¬

Salt

(Tuesday)

—

Washington,

stock (par $1).
Price—$5 per share. Proceeds
working capital. Office—1334 Oak Street, Kansas
City 6, Mo. Underwriter—Paul C. Kimball & Co., Chi¬
cago, 111. Offering—Expected in August.
common

ceeds—For mining

$16,000,000

invited)

be

and

i

Bonds

1

be

may

Debs.
-

$55,000,000

Oklahoma Gas & Electric Co

for the account of the
company and 21,700 shares for the
account of selling

stockholders. Price—$1.50 per share
Proceeds-For mining expenses.
Office—111 Broadway!
New York, IL Y.
Underwriter
Albert Kravitz
Co.,

shares

(Wednesday)

September 14

com¬

170,000 shares

170,000

Maryland Ry
(Bids

of

Common

Southern Bell Telephone & Telegraph Co

September 8
Price—At

Atomics, Inc., New York
(letter of notification)
191,700 shares

stock

August 31

York

—For

Preferred

to be invited)

corporate

Jackson

Century Acceptance Corp.
May 27 (letter of notification) 58,000 shares of class A

$7,500,000

invited)

expenditures, for
stocks of subsidiaries,
purposes.- Underwriters
J—
in

& Curtis, of New
Bostort; and Loewi & Co., Milwaukee, Wis.

August 24 (Tuesday)
(Bids

construction

investment

and

Paine,3 Webber,

(Bids

Relations

to,

for .general

and

$30,000,000

Arkansas Power & Light Co

Paine, Webber, Jackson
books). Sponsor — Vance,

Co., Boston, Mass.

Proceeds—For

advances

Southern California Edison Co

Niagara Mohawk Power Corp

°I on? s!lare of
Par class A common stock for
$2 principal amount of
debentures). Price—At par
(in units of $1,000 each). Proceeds—For
working capi¬

,

$1,450,000

(8/10)
seven-year

Co.)

and

Central Telephone Co., Lincoln, Neb.
(8/10)
July 19 filed $1,500,000 of convertible subordinated de¬
bentures due May 1, 1969. Price—At 100% of principal

..Preferred

Emanuel

Co.

(may be around $4.50 per share). Proceeds—For work¬
ing capital. Office —One Park Ave., New York, N. Y.
Underwriter—Fulton, Reid & Co., Cleveland, Ohio.

__Bonds

Inc._____

&

it Catalin Corp. of America
July 28 (letter of notification) 65,000 shares of common
stock (par $1).
Price—To be supplied by amendment

Inc.) $299,550

Jersey Power & Light Co

(8/16-17)

July 8 (letter of notification) 250,000 shares of common
stock.
Price—At par (10 cents per share.) ProceedsFor mining expenses. Underwriter—None. Office—600
Utah Savings and Trust Bldg., Salt Lake City. Utah.

(Bache & Co. and Paine, Webber, Jackson & Curtis) $25,000,000

(Milton D.

Ltd.

Carpenter-Morrison Uranium & Oil Co., Inc.

(Monday)

(1954)

(1954)

handling

(latter

Sanders &

Supermarket Merchandisers of America Inc.__Com.
>

Curtis

Common

Co.)

August 16

(par $1) to be first offered to stockholders at the

rate of one new share for each four shares held.
Price
—To be supplied by amendment.
Proceeds—For work¬
ing capital.
Office—84 Massachusetts Ave.,
Cambridge,
Mass.
Underwriters—Chace, Whiteside, West & Winslow, Inc. and Draper, Sears & Co., both of

(Thursday)

King Copper Mining Corp.

Fund

General

July 23 filed 2,500,000 shares of common stock (par $1).
Price—$10 per share.
Proceeds—For investment. Un¬

Common

,

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; The First Boston Corp.; Lehman
Brothers,
Stone & Webster Securities Corp. and White, Weld & Co.
(jointly); Blyth & Co., Inc., Equitable Securities Corp.,.
and Central Republic Co., Inc.
(jointly); Merrill Lynch,
Pierce, Fenner & Beane and Union Securities Corp.
(jointly). Bids—Expected to be received up to noon
(EDT) on Aug. 24 at Two Rector Street, New York, N. Y.

★

$5,000,000

Southern Colorado Power Co

—

stock

Bonds

(CDTi

noon

(Offering to stockholders—underwriter Kuhn, Loeb & Co.)

Inc.,

Arkansas Power & LlgTit Co. (8/24)
July 23 filed $7,500,000 of first mortgage bonds due 1984.
Proceeds
To repay $4,900,000 of bank loans and for
construction

(Wednesday)

Pittsburgh Metallurgical Co., Inc.-_-,-__Debentures

R.

of com¬
Proceeds

Co.,

&

(Bids

(Stone & Webster Securities Corp.;
Paine, Webber, Jackson &
Curtis; Boettcher & Co.; Bosworth, Sullivan & Co., Inc.; William

(par 25 cents). Price—$1 per share.
—For expenses incident to drilling for magnetic iron

Office—Rison, Ark.

August 11

Chicago Great Western Ry

(par $50),

totaling 98,800 shares. Underwriter —
Pierce, Fenner & Beane, New York. Of¬
fering—Temporarily deferred. (See also proposed issue
of 107,000 shares of common stock under "Prospectus
Offerings" below).

Common

Inc.)

Co.,

22

—

Rhoades & Co.) 1,000,000 shares

Uranium

(latter hand¬

Electric Power Co.

California

April

stock

(Carl M. Loeb,

$8.10 per share to

$1,500,000

& Co.)

Loewi

Common

(McCoy & Willard)

Republic

—

Straus, Blosser & McDowell, Chicago, 111.
ling books).

$300,000

New York Capital Fund of Canada Ltd.__Common

Co., Los Angeles, Calif.
June 11 filed 32,669 shares of $3 cumulative and par¬
ticipating preferred stock (no par value) and 52,876

Price

Aug. 11.

on

stockholders, $9 to public. Proceeds — For payment of
notes and accounts payable and
for working capital.
Underwriters—Dallas Rupe & Son, Dallas, Texas, and

Debentures

Co.)

&

(Paine,

Arden Farms

share for each 2.5 shares held; with

Debentures

Corp

(White

Central

stockholders of record June 15

common

new

one

rights to expire

August 10 (Tuesday)
Automatic

of

rate

at

Common

capital and surplus.

Apollo Oil & Uranium Co., Denver, Colo.
May 27 (letter of notification) 12,500,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining activities. Office—602 First National
Bank
Building, Denver, Colo.
Underwriters — M. A.
Cleek and J. Russell

Byrd Oil Corp., Dallas, Texas
shares of 6% cumulative converti¬
common stock (par $7.50)
being offered for

ble class A

$30,000,000

Corp

Weinstein &

N. Y.

85,000 shares

June 15 filed 260,000

186,683 shares

—Bonds

EDT)

noon

Uranium

Forge Co., Buffalo,

filed

7

Proceeds—To 11 selling stockholders.
Under¬
& Weeks, New York. Offering—
Postponed indefinitely.

Common

—

(Carl M. Loeb, Rhoades & Co.)

Co., 242 N. University

,

offering.

(Monday)

Co.__

*

writer—Hornblower

Pacific Power & Light Co.

ceeds—To

Investment

ISSUE

of common stock (par $1).
Price—To be related to current market price at time of

$3,650,000

EDT)

noon

August 9

Harrisburg Steel

Buffalo

July

(Thursday)

Lakefront Dock & RR. Terminal Co

Tex. Underwriter—None.

it American Savings Life Insurance Co.
July 16 (letter of notification) 500,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬

REVISED

Ave., Provo, Utah.

Underwriter—Elliott & Co., New York.

director.

a

PREVIOUS

ITEMS

•

Underwriter—Weber

(letter of notification) 2,000 shares of common
stock (par $2.50).
Price — At market (approximately
$8.25 per share). Proceeds—To William S. Wasserman,

July 19

ADDITIONS

SINCE

Lighting

Co.

general

mortgage

bonds.

Under¬

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
common

Proceeds

Address—Box 77, Provo, Utah.

& Co./ The First Boston Corp. Offering—Originally set
for May Jl, but has been postponed because of market

conditions.

No

new

date

set.

/

Volume

180

Number

5348

.

..

The Commercial and Financial
Chronicle

Crown Uranium Co., Casper, Wyo.
11 (letter of notification) 2,400,000

ders:

June

stock

mon

(par 5 cents).

Price

10

—

shares of

cents

Stone
&
Webster
Securities
Corp.;
Lehman
Brothers and Equitable Securities
Corp. (jointly); Kuhn,
Loeb & Co.; Glore,
Forgan & Co. and W. C.

com¬

share.

per

Proceeds—For mining expenses.

Office—205 Star Bldg.,
Casper, Wyo. Underwriter—Forbes & Co., First National
Bank Bldg., Denver 2, Colo.
Danaho

,

June

$625,000

up
to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70
Broadway, New York, N. Y., but of¬
fering has been postponed. Meeting—Stockholders will

vote

of

6% debentures and 375,000
(par 10 cents) to be offered in

per

ments.

May

Underwriter—None.

unit. Proceeds—For

Danaho

additions

and

improve¬

14 filed 110,000 shares of common stock,
(par 10
cents). Price—$2 per share. Proceeds—For additions and
improvements. Underwriter—None.

ploration
5th

and

($1

par

drilling

per

share).

Office—1408%
Underwriter—None. ♦;#

expenses.

St., Las Vegas, Nev.

for

purchase

per

by

subscribers

convertible

are

into

to

6%

ible

(one cent

par

share).

per

due

and

for

general

corpo¬
com¬

bidders:

(Md.)

Gas Co.

to

to

be

offered

public.

accounts

first

to

Price—At

and

for

stockholders

common

Proceeds—To

par.

working capital.

pay

Underwriter

Baltimore, Md.

★ Hamilton Fund, Denver, Colo.
July 28 filed $15,000,000 of periodic investment plans

at

certificates.

Proceeds—For investment.

if Hamilton Funds, Inc., Denver, Colo.
July 28 filed 1,000,000 shares of series H-C 7 capital
stock and 1,000,000 shares of series D-A
capital stock.
Price—At market.

com¬

•

Pro¬

Proceeds—For investment.

Harrisburg Steel Corp., Pa.

(8/9-10)

July 14 filed 186,683 shares of common stock (par $2.50).
Price—To be supplied by amendment. Proceeds—To cer¬
tain selling stockholders.
Underwriter—Carl M.

—

Sparks, Nev.
Credit

then

current

ceeds
For mining expenses.
Office—2215 Duff Ave.,
Cheyenne, Wyo. U n d e r w r i t e r—Underwriters, Inc.,

Financial

1983,

Probable

—Alex. Brown & Sons,

debentures

common'stock

notes

and

Price—At par. Proceeds—For general
Office—4902 Lawrence St., Bladens¬
Underwriter—None.

Price—At

due

bonds

$10,000,000 of 3%%
$10,000,000 of 3%%

Loeb,

Rhoades

Corp., New York

&

Co., New York.

Jan.

29 filed 250,000 shares of 7% cumulative
sinking
fund preferred stock. Price—At
par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬

Imperial Uranium Co., Salt Lake City, Utah
July 13 (letter of notification) 5,000,000 shares of com¬
mon stock (par one
cent). Price—Three cents per share.

tain & Co., Inc., New York.

Proceeds—For mining operations. Office —
Bldg., Salt Lake City, Utah. Underwriter
Pett, 345 State St., Salt Lake City, Utah.

★ First Kaiircad & Banking Co. of Georgia

to

13

shares

of

tain

stock

Uranium Corp., Denver, Colo.
July 26' filed 500,000 shares of common stock (par $1).
Price—$2 per share.
Proceeds—To repay bank loans,
on

for

other

general

corporate

1

if Gas-Ice Corp., Seattle, Wash.
July 26 (letter of notification) $150,000 of debentures
hnd 1,500 shares of common stock
(par $1) to be offered
in

units of

$1,000 debenture (valued at $990) and 10
shares of common stock
(valued at $10).
Price—$1,000

per unit.

a

Proceeds—For note retirement, working

cap¬

ital, construction and expansion.
Office—200 A Medieal Arts Bldg.,
Seattle, Wash.
Underwriter—None, of¬
fering to be made through Albert T. Hoppe.

★ General American Transportation Corp.
July 29 filed a maximum of 2$2,750 shares of

(par $2.50)/* Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Underwriter—Kuhn,
Loeb & Co., New York.
General Gas

Corp., Baton Rouge, La.

March 19 filed 100.000 shares of common stock
(par $5).
Price — To be supplied
by amendment. Proceeds
To
selling stockholders. Underwriter—Kidder,
—

Peabody &
Co., New York. Offering—Postponed
indefinitely.
★ Globe Hoist Co., Philadelphia, Pa.
July 26 (letter of notification) 12,000 shares of common
stock
(par $5).
Price—$12 per share.
Proceeds—For
working capital and refunding. Office—1000 E. Mer¬
★

Ave., Philadelphia 18, Pa.

Underwriter—None.

Gray Manufacturing Co., Hartford, Conn.

June

10

58,119 shares of common stock (par $5)
being offered for subscription by common stockholders
of record July 29 on the basis of one neW
Share for each

held; rights to expire

on Aug. 20. Price—$10
Proceeds—For general corporate purposes.
Underwriter—None. Statement effective
July 22.

per

share.

(par 2V2 cents).

Co.

July 22 (letter of notification) $299,000 of 6% converti¬
ble

secured

debentures.
Price—At par.
Proceeds—To
present debt and for working capital. Office—916
Republic Bldg., Oklahoma City, Okla.
Underwriter—
pay

Harrison & Co.,
Gulf States

Philadelphia, Pa.
Utilities Co.

Proceeds—For

*

exploration and development expenses.
Office—623 Judge Bldg., Salt Lake
City, Utah. Underwriter—Thornton D. Morris & Co., same
city.,

★ Keystone Fund of Canada, Ltd., Montreal, Canada
Aug. 2 it was announced this Fund contemplates a public
offering of between $10,000,000 and $15,000,000 of capi¬
tal stock.

Price—Approximately $25

—For investment.

Underwriter

—

per

The

share.

Proceeds

Keystone Co. of

Boston, Boston, Mass.
King Copper Mining Corp. (8/12)
*
2 (filed under Regulation
"D") 295,000 shares of
capital stock (par $1). Price—50 cents per share.
Pro¬

June

expansion, diamond drilling, working capital
Office—1519 Pine Ave.,
West, Montreal, Canada.
Underwriter—D. Gleich Co.,

and general corporate purposes.

New

York.




market.

Proceeds—For

investment.

if Marie Antoinette, Inc., Fort Lauderdale, Fla.
July 26 (letter of notification) 3,000 shares of common
stock.
Price—At par ($100 per share).
Proceeds—To
purchase Marie Antoinette Apartments.
Office—22222
N. Atlantic Blvd., Fort Lauderdale, Fla.
Underwriter—
None.

River Uranium Co.

Marion

June 14 (letter of

notification) 300,000 shares of common

stock
For

(par 10 cents). Price—$1 per share. Proceeds—
development expenses. Underwriter—Crerie & Co.,

Houston, Tex.
Metal

Mars

Corp.,

Francisco, Calif.

San

July 23 filed 121,000 shares of class A stock (par 10 cents)
and

3,000,000 shares of common stock. It is planned to,
per share 75,000 class A shares privately,
remaining 46,000 shares to be issued to provide
working capital or funds for investment. Of the com- •
mon stock, 320,000 shares are to be reserved for holders
of class A stock; 172,000 shares for issuance at 10 cents
per share pursuant to stock options given to certain key
employees; and 100,000 shares are reserved for issuance
at $1.50 per share during the years 1955-1957 upon the
exercise of a like number of warrants granted to certain
dealers in connection with public offering by F, W. Ste¬
sell

at $2.50

the

phens Co., New York, of 199,000 class A shares.
The^
registration statement may be amended to change thd*
designation
when

the

of

121,000

shares

of

class A
$2.50

Price—Of common, may be

class B stock.

stock to
share

per

offered.

if Mayrand, Inc., Greensboro, N. C.
July 26 (letter of notification) 1,000 shares of 6% cum¬
ulative preferred stock (par $50) and 2,500 shares of
common
stock (par $10) to be offered in units of 10
shares of common stock and four shares of preferred
stock.

Price—$300

per

1020-42

—

Proceeds—For develop¬
pharmaceuticals.
Drive, Greensboro, N.
C.

unit.

sales of ethical

ment, production and

Westside

Underwriter—None.

Kopp Scientific, Inc. (8/10)
July 23 (letter of notification) 30,000 shares of
stock

(par

McCluskey Wire Co., Inc., New Haven, Conn.
notification) $95,000 of 5% debentures,
series A, due July 1, 1962, and $95,000 of 6% debentures,

June 21 (letter of
series B,

10

cents).

Price—At

market

due July 1, 1970.

—527 Grand

Barnes,

Proceeds—To acquire assets "
Office

& T. McCluskey & Sons, Inc.

Avenue, New Haven, Conn.

common

(50

share to underwriters).

cents per
Proceeds—To Lucien D. Lamar,

the selling stockholder.

Underwriter—McCoy & Willard,

Boston, Mass.
ir Lake Lauzon Mines, Ltd., Toronto, Can.
Aug. 2 filed 660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents per share, U. S. funds.
Proceeds
For development and exploration expenses.

Underwriter—

Bqdell & Goodwin, Inc., New Haven, Conn.

if Mid-Atlantic Corp.
July 26 (letter of notification) 120,000 shares of
stock.

Price—At

Bradford, Pa.
Bradford, Pa.

(50 cents

par

per

share).

common

Proceeds—

Office—2 Main

Underwriter—William T. Bowler &

St.,
Co.,

Midland General Hospital, Inc., Bronx, N. Y.
May 17 filed 900 shares of common stock (no par). Price
—$1,000 per share. Proceeds—To erect a hospital in the
Borough of Paramus, N. J., and for working capital, etc.
Underwriter—None.

-*

Mission Indemnity Co., Pasadena, Calif.
March 29 filed 600,000 shares of common stock

(par 6$
cents) to be offered first to stockholders and\ to gen-*
eral public. Price—$2 per share. Proceeds—To increase
capital and surplus. Underwriter—None.
Missouri

^

Service Co.

Public

of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds—To redeem outstanding first preferred stock
April

filed

23

shares

50,000

$750,000 bank loans and the bal¬
program.
Underwriter—Kidder,
Peabody & Co., New York.
Offering — Postponed in-.—
($3,475,000), to

repay

construction

for

ance

•

Underwriter—To be named by amendment.
Las

Vegas Continental Hotel, Inc.
May 17 filed 500,000 shares of preferred capital stock
(par $9.90) and 500,000 shares of common capital stock
(no par—100 stated value) to be offered in units of one
preferred and one common share. Price—$10 per unit.
Proceeds—To build and operate a luxury hotel and for
working capital.
Office—Las Vegas, Nev.
Underwriter
—Lester L. LaFortune, Las Vegas, Nev.

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock

~

'

May 14 filed 160,000 shares of preferred stock (par $100).
Proceeds
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of
^$105, $105, and $105.75, respectively.
Underwriter—To
be determined by competitive
bidding. Probable^ bid¬
—

Price—At

For investments in other businesses.
com¬

Price—Three cents per share.

.

Gulf Coast Western Oil

if Managed Fund, Inc., St. Louis, Mo.
Aug. 2 filed 2,000,000 shares of several classes of stock.

definitely.

Monterey Oil Co., Los Angeles, Calif.
2 filed 257,338 shares of common stock (par $1).
Price—At the market price then prevailing on the New
York Stock Exchange, or through special offerings or
lecondary distributions. Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
of their immediate families (150,458); and The Lehman
Corp. (106,480). Underwriter—None. No general offer
Feb.

planned.

—

filed

four shares

stock

ceeds—For
common

stock

maid

mon

purposes.

Underwriter—Campbell, McCarthy & Co., Detroit, Mich.

^

if Lucky D Uranium Mining Co., Cortez, Colo.
July 20 (letter of notification) 1,500,000 shares of Com¬
mon
stock
(par one cent).
Price—10 cents per share.
Proceeds—For exploration and development, expenses.
Underwriters—Brereton Rice & Co., Inc^ Denver, Colo.,
and James M. Toolan & Co., New York, N. Y.

and business of H.
i

stock

if Kanab Uranium Corp., Salt Lake City, Utah
July 19 (letter of notification) 5,0u0,000 shares of

contracts for purchase of certain claims and

and

Utah

10,000,000 shares of com¬
(par 1 cent). Price — 3 cents per share. Pro¬
ceeds—For mining expenses.
Underwriter—Cayias Bro¬
kerage Co., Salt Lake City, Utah.
mon

Four Corners

note and

Securities, 508 Atlas Bldg., Salt Lake City, Utah.

Interstate Uranium, Inc., Salt Lake
City,
June 14 (letter of notification)

not

properties;

& Co., Houston, Tex., and Peter Mor¬
& Co., New York.

Office

Proceeds—For mining expenses. Office—240 S. 2nd
St.,
East, Salt Lake City, Utah. Underwriter—Rocky Moun¬

through
who will

common

Judge
Arthur

Uranium, Inc.
(letter of notification) 5,000,000 shares of capi¬
tal stock (par one
cent). Price—Two cents per share.

shares to be offered to public at
$4.50 per share
also purchase such of the
546,000 shares of
sold upon exercise of warrants.

J.

Inland

stock, and one $250 5%
collateral trust bond due Aug.
1, 1983, to be offered for
each of the 42,000 shares of
outstanding common stock
pursuant to plan of readjustment; also 756,000 shares
of common stock, which includes
546,000 shares subject
to subscription upon exercise of warrants
and 210,000
Ga.,

gan

June 17

common

Johnson, Lane, Space & Co., Savannah,

623

—

July 30 filed 42,000 units, each consisting of one share
of common stock, one warrant to subscribe
at $4.10 per
share

writers—French

•

share).

stock.

mortgage

July 12 (letter of notification) $100,000 of 5% convert¬

Eureka Uranium Corp.,
Cheyenne, Wyo. .;
July 12 (letter of notification) 30,000,000 shares of
mon

bidding.

Hagerstown

corporate purposes.

burg, Md.

first

ex¬

South

bentures due 1964, $150,000 of 7% convertible debentures
1964 and 596 shares of common stock
(par $1) re¬

debentures

of

Halsey, Stuart &
Brothers; Merrill Lynch, Pierce, Fenner
& Beane and
White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union
Securities Corp.; Kuhn,
Loeb & Co. and A. C.
Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70
Broadway,
New York, N. Y., but
offering has been postponed.

due

(7%
$50

$24,000,000

Underwriter—Jp, be determined by

if Entron, Inc., Bladensburg, Md.
Kf
July 26 (letter of notification) $149,000 of 6%vprior de¬

served

filed

petitive

common

Proceeds—?For

14

Co. Inc.; Lehman

Denver Northern Oil
Co., Denver, Colo.
July 7 (letter of notification) 6,000,000 shares of common
stock. Price—At par (five cents
per share). Proceeds—
For mining expenses. Office—300
Kittredge Bldg., Den¬
ver, Colo.
Underwriter—H. Carl Aiken, Denver, Colo.

Price—At

issue.

first mortgage bonds
rate purposes.

June

stock,

on new

June 1, 1984. Proceeds—To redeem
first mortgage bonds due 1981 and

Refining Co., Houston, Texas

if Ebony Petroleum Corp. of Nevada, Inc.
July 19 letter of notification) 200,000 shares of

Aug. 17

Gulf States Utilities Co.

units of $50 of debentures and 30 shares of stock. Price

—$100

(jointly). Bijs—Had tentatively been expected to be

received

Refining Co., Houston, Texas

filed

14

shares of common stock

Langley &

Co.

31

(523)

(par

one

cent).

Proceeds—For mining

Price—Three

operations.

cents

per

Office—402

share.

Darling
Uranium

Bldg., Salt Lake City, Utah.
Underwriter —
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
Loma Uranium Corp., Denver, Colo.
18 filed 1,000,000 shares of common stock

June

(par 10
Price—$1.25 per share. Proceeds—For explora¬
tion and development costs, purchase of
equipment, and
reserve for acquisition of additional
properties. Under¬
cents).

Mountain States

Uranium, Inc.

May 19 (letter of notification) 30,000,000 shares of com¬
mon stock.
Price—At par (1 cent per share). Proceeds—
For
mining expenses.
Office—1117 Miner St., Idaho

Springs, Colo.

Underwriter—Underwriters, Inc., Sparks,

Nevada.

if Mountain Valley Oil Corp., Denver, Colo.
July 19 (letter of notification) 299,000 shares of common
stock.

Price—At par ($1 per

drilling.

Office

—

701

share). Proceeds—For well
Kittredge Bldg., Denver, Colo.

Underwriter—None.

Natick Industries,
March

Inc., Natick, Mass.

(letter of notification) 58,800 shares of com¬
(par $1). Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
Boston, Mass.
mon

10

stock

National Tank Co.,

Tulsa, Okla.

July 20 (letter of notification) 6,800 shares of common
(par $1). Price—$29 per share. Proceeds—To two

stock

Continued,

on

page

32

/

The Commercial and Financial Chronicle
32 '

-•

Celling

'

31

Continued from page

•

Y"

Schneider, Bernet &

Underwriter

stockholders.

*

Hickman, Dallas, Tex.
'

Ligiit Co. (8 17)
20 filed $8,700,000 of first mortgage bonds due
Power &

New Jersey

July

Aug.

$o,out¬
Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.; Kuhn, Loeb &
Co. and Lehman Brothers (jointly); Equitable Securities
Corp.; Union Securities Corp. and White, Weld & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane. Bids
—Expected to be received up to 11 a.m. (EDT) on Aug.

Proceeds—$1,585,000 to repay bank loans,
4'/4% first mortgage bonds now
standing, and $1,615,000 for construction program.
500 000 to redeem

—

'

17 at 67 Broad St.,

New York 4, N. Y.

Carrizozo, N. M.
June 14 (letter of notification) 198,000 shares of fc&pital
stock (par 25 cents). Price—50 cents per share. Proceeds
—For acquisition of power plant, improvement of mill,
development of properties and general corporate pur¬
poses. Underwriter—Mitchell Securities, Inc., Baltimore,
New

Mexico Copper Corp.,

Md.
•

New

York Capital

(8/10-2.1)

■

.

July 27 filed 1,000,000 shares of common stock. PriceTo be supplied by amendment.
Proceeds—For invest¬
ment. Underwriter—Carl M. Loeb, Rhoades & Co., New

by common stockholders at the rate of $100 of deben¬
tures for each 25 shares of common stock held (for a 14-

Price—$100 per $100 principal amount.
Proceeds—For working capital.
Office—Niagara Falls,
N. Y. Underwriter—Kuhn, Loeb & Co., New York.

stock

(par

&

Underwriter—Philip Gordon
York. Statement effective July 28.

E., Albuquerque, N. M.

Co., Inc., New

■'V

North-West Telephone Co., Madison, Wis.
July 30 (letter of notification) 3,000 shares of common
stock to be offered for subscription by stockholders.
Price—At par ($50 per share).
Proceeds—For capital
improvements. Office—119 Monona Ave., Madison, Wis.
Underwriters—Harley, Haydon & Co. and Bell & Farrell, Inc., both of Madison, Wis.

(Minn.) (8/24)
cumulative preferred
(par $100). Proceeds—To refund a like amount of

* Northern States Power Co.
July 29 filed 200,000 shares of
stock

$4.80 cumulative preferred stock, presently outstanding.

competitive bidding.
Co.; Lehman Broth¬
Bids — Expected to be

Underwriter—To be determined by

Probable bidders: Smith, Barney &
and

ers

Riter & Co.

received

(jointlly).

Aug. 24.

on

(8/9)

July 2 filed $30,000,000 first mortgage bonds due Aug. 1,
1984. Proceeds—$24,934,542 to be used to refund all out¬
standing bonds of Mountain States Power Co. (merged
with Pacific Power & Light Co.), and for new construc¬
tion.
Underwriter—To be determined by competitive

Halsey, Stuart & Co.

Probable bidders:

bidding.

Inc.;

Blyth & Co., Inc. and White, Weld & Co. (jointly); Kid¬
der, Peabody & Co.; Union Securities Corp.; Lehman
Brothers, Bear, Stearns & Co. and Salomon Bros. &
Hutzler (jointly). Bids—Expected to be received up to
noon (EDT) on Aug. 9 at Room 2033, Two Rector Street,
New York

City.

holders in the ratio of

($100

one

share for each

Proceeds—To
ings.. Underwriter—None.
Pacific

Western

"June 25 filed
Price—At

shares

Price—At par
reduce bank borrow¬

share).

per

seven

and/or preferred stock held.

common

time

Oil

Corp.

100,000 shares of
Shares

market.

to

common

be

stock

offered

(par $4).

from

time

to

the New York Stock

on

fered to specific persons,
the-floor

sales.

Exchange, and may be of¬
firms or corporations in off-

Proceeds—To J.

Paul

Getty, President.

Underwriter—None.
*

Peabody Ccal Co., Chicago, III.
July 14 (letter of notification) 17,300 shares of 5%
vertible prior preferred stock (par $25). Price—At
ket

(estimated

tal.

capi¬
Tex.

mar¬

at $11.75

warrants

subscription

outstanding

(dates advanced

to

period July 15 through Oct. 15). Proceeds—For general
corporate purposes. Underwriter—None. Statement ef¬
fective July 6.
1
Republic Uranium Corp., Mcab, Utah (8/10)
June 28 (letter of notification) 1,190,000 shares of com¬
mon stock
(par five cents).
Price—25 cents per share.
Proceeds—For
mining expenses.
Underwriter—Teden
&

Co., Inc., New York.

9

common

Mining Corp., Santa Fe, N. Mex.
600,000 shares of cumulative sinking fund
stock

stock

shares and
ceeds—To

stock, for
ers,

Underwriter—None.

filed

preference

one

to

and

300,000

be offered

in

shares
units

of

of

10-cent

Productions,

share.

two

Price—$3

retire 40,526
power

equipment .and machinery, exploration and working
Underwriter—Barrett Herrick & Co., Inc., New

capital.
York.

.

★ Phanton Creek Copper, Inc.
July 15 (letter of notification) 100,000 shares of
stock (par five cents).

Priee—12V2 cents

per

ceeds—For mining operations. Office—321
Cle Elum, Wash.
Underwriter — S. J.
address.

common

share.

Pro¬

WTest 4th St

Holden,

same

(letter

15

of

to purchase
$2 per share.
Underwriters—
Co., Inc. and Batkin & Co.,
warrants

notification)

Mortimer

Burnside

B.

&

—

both of New York.

Savage Industries, Inc., Phoenix, Ariz.
(letter

Phoenix, Ariz. Underwriter
Co., San Francisco, Calif.
Shasta Water

—

Pacific Coast Securities

For

mining operations.

Brothers

&

Underwriter

Co., Salt Lake City, Utah.




—

Harrison

S.

—

To be supplied

by

$1,000,000 bank loans
purposes.
Underwriters—

both of New York.
Titan

Manganese Mining Corp.
(letter of notification) 299,000 shares of com¬
(par one cent). Price—$1 per share. Proceeds
mining expenses. Underwriter—A. L. Albee &

July 12

stock

mon

•

Trans-VVcrld

Uranium Corp. (8/9)
(letter of notification) 1,175,000 shares of com¬
mon stock
(par one cent). Price — 25 cents per share.
Proceeds
For mining expenses. Office — 402 Boston
Bldg., Salt Lake City, Utah. Underwriter—Charles Wein-

July 17

—

stein &

Price—To be supplied by amendment.
Proceeds—For capital expenditures and working capital.
Underwriter—Davidson & Co., San Francisco, Calif.

stock

(par $2.50).

Somerset Telephone Co.,

Norridgewock, Me.
June 11 (letter of notification) 2,200 shares of capital
stock. Price—At par ($5 per share). Proceeds—For ex¬
pansion and new equipment. Underwriters—E. H. Stan¬
ley & Co., Waterville, Me.; and Clifford J. Murphy Co.,

—

Co. Inc.; The First Boston Corp.; Morgan Stanley & Co.;
Kuhn, Loeb & Co. Bids—Expected to be received up to
11 a.m. (EDT) on Aug. 31.

California

Edison

Co.

(8/18)

July 27 filed $30,000,000 of first and refunding mortgage

bonds, series F, due 1979.

Proceeds—To retire $6,000,-

Underwriter—To be determined by competitive
bidding. Probable bidders. Halsey, Stuart & Co/Inc.;
Kuhn, Loeb & Co.; Blyth & Co., Inc.; The First Boston
Corp. and Dean Witter & Co. (jointly). Bids—Tenta¬
tively scheduled to be received on Aug. 18.
gram.

■*.

Southern

Colorado

Power

Co.

incurred for construction.

Underwriters—Stone & Web¬

ster Securities

Corp.; Paine, Webber, Jackson & Curtis;
Boettcher & Co.; Bosworth, Sullivan & Co., Inc.; William
R. Staats & Co.; Hutcl>*nson & Co.; and Rauscher, Pierce
& Co., Inc.
1

July 9 filed 621,882 shares of preferred stock (par $10),

621,882 shares of common stock (par one cent) to be

offered in units of

—$10.01

per

one

share of each class of stock. Price

unit. Proceeds—For purchase of land and to
equip a luxury hotel. Underwriter—None.

f8/lA)

July 15 (letter of notification) 199,700 shares of common
stock (par 10 cents).
For

working

3219

"B"

capital

Price—$1.50 per share. Proceeds—
and business exoansion.
Office—

St., Philadelphia, Pa.

Blauner & Co.,

Underwriter—Milton D.

Inc., New York.

capital.

Underwriter—Graham

&

Co.,

Pitts¬

21

cents),

filed

of

new

are

share

which
for

Sulphur Co., Houston, Texas

shares of common stock (par 10
385.000 shares are to be offered for

455,000

subscription by

common

each

4V2

»•

to

the

Montreal,

common

Canada.

stock

market

Underwriter

—

To

be

named

by

ir Underwood Patented Barricade, Inc.
July 26 (letter of notification) 1,000 shares of 6% cumu¬
lative preferred stock (par $100) and 1,000 shares of
common stock (par $10), preferred stockholders to have
option to purchase one share of common stock. Price—

Proceeds—For manufacture

par.

barricades

Union

shares

and

sale

of

street

appelated products. Office—Crowley, Arca¬

dia Parish,

La.

Underwriter—None.

Compress & Warehouse Co.

June 25

(letter of notification) 30,000 shares of common
(par $1). Price—$10 per share. Proceeds—To 35

selling stockholders. Office

—

Memphis, Tenn.

Under¬

writers—Leftwich & Ross and Mid-South Securities
both of

Memphis, Tenn.

held:

and

Co.,

.

Union Life and Casualty Agencies, Inc.
July 20 (letter of notification) 50,000 shares of common
stock (par $1) and 1,000 shares of 6% cumulative pre¬
,

ferred

stock

(par $100).

general corporate

Price—At par.

purposes.

—534 West Adamas

Benefit

Proceeds—For
Underwriter—None. Office

Street, Phoenix, Ariz.
Fire

Insurance

;

.

Co., Omaha,

Neb.
(letter of notification) 25,000 shares of common
stock-(par $7) being offered first to stockholders of
record July 1, 1954 on the basis of one new share for
each two shares held; rights to expire on Aug. 10. Price—•
$10 per share. Proceeds—To increase capital and surplus.
Office—2565 St. Mary's Ave., Omaha, Neb. UnderwriterStewart, Smith & Co., Inc., New York, N. Y. ,
June 14

•

United Funds Canada

Ltd.,
Toronto, Canada (8/11)
July 16 filed 2,000,000 shares of common stock (par $1).
Price—To be supplied by amendment (initially expected
to be $12.50 -per share).
Proceeds — For investment.
Underwriters—Glore, Forgan & Co. and Francis 1. duPont & Co., both of New York.
V
t-\.v'
United States Air Conditioning Corp.

.r..

/

,

filed 500,000 shares of common stock (par 10
Price—To be supplied by amendment. Proceeds
For working capital,
Underwriters — Mortimer B.

July

19

cents).
—

Co., Inc. and George F. Breen of New York,
purchase 100,000 shares, with an option
buy the other 400,000 shares. Offering—Expected early
August. ':
*

who agreed to
to

in

Utah

Uranium

Moab

June 28 (letter of
mon

stock

(par

Proceeds—For

Corp., Provo, Utah
notification) 1,200,000 shares of com¬
cent)/- Price—25 cents per share.

one

operations. : Office—47 N. Uni¬
Underwriter—A. J. Shapiro,
Securities Bldg., Seattle, Wash.
mining

versity Ave., Provo, Utah.
Utah National

May 27

Uranium

Mining Corp._
1,199,600 shares of com¬
(par one cent). Price—25 cents per share.
For mining expenses.
Office — 402 Boston

(letter of notification)

stock

mon

Proceeds

—

Underwriters—Carroll,

Building, Salt Lake City, Utah.
Kirchner

&

Jaquith,

Inc.,

Denver,

Cromer

Colo., and

Brokerage Co., Salt Lake City, Utah.

70,000

.

..

Co., Newcastle, Wyo. 1
July 1 filed 336,800 shares of common stock
Oil

Voss

Price—To be related to market.

(par $1).

Proceeds—To 40 selling

stockholders. Underwriters—John R. Lewis,

Inc., Seattle,

Middlebrook, Inc. and Glidden,
The registration state¬
of common stock which
may be offered from time to time (but no definite plans
are
given).
Y :
,
Coburn

and

&

Morris & Co., both of New York.
ment also covers 2,413,200 shares

•.

^Washington Mutual Investors Fund,
Washington, D. C.
.
r
July 28 filed 250,000 shares of common stock. Price—
Froceeds—For investment.

At market.
West

Nov.

due

20,

Coast Pipe Line Co.,

15,

intendment.

additional

shares

Weld

York.

mile
&

to be offered in units of one $50 deben¬
Price—To be supplied by

Proceeds—From sale of units and

shares

crude

Co.

1

share of stock.

of common stock

and

1,125,000

and private sales of

to be'used to build a
pipeline.
Underwriters — White,
Union Securities Corp., both of New

555.000,000 first mortgage bonds
1.030

-

1964.

(par 50 cents)
one

>

Dallas, Tex.

.

filed $29,000,000 12-year 6% debentures
and 580.000 shares of common stock

1952

Dec.

one

stockholders at the rate cf

for account of certain selling stockholders. Price—To
t.

related

purposes.

ture and

burgh, Pa.

June

offering.

be

_

Taylorcraft, Inc., Conway, Pa.
April 30 (letter of notification) 150,000 shares of 6%
cumulative convertible preferred stock, of which 100,000 shares will be offered to public and 50.000 shares to
creditors. Price—At par ($2 per share). Proceeds—For
working

Corp.,

(par $1),
price at time of
Proceeds—For development costs and general

To

—

Wash.;

Supermarket Merchandisers of America,
Inc.

Price

Burnside &

(8/11)

July 21 filed 30,000 shares of 4.72% cumulative preferred
stock (par $50). Price—To be supplied by amendment.
Proceeds—For payment of obligations and bank loans

and

Petro-Chemical

April 30 filed 500,000 shares of

United

+ Southern Bell Telephone & Telegraph Co. (8/31)
July 30 filed $55,000,000 30-year debentures due Sept. 1,
1989.
Proceeds
To repay advances from American
Telephone & Telegraph Co., parent, and for general cor¬
porate purposes. Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Southern

Co., New York.

Trican

stock

Co., San Francisco, Calif.

July 15 (letter of notification) 22,000 shares of common

Texas International

—

Price
repay

and
for
general corporate
Blair, Rollins & Co. Inc. and Emanuel, Deetjen & Co.,

At

of notification) 4,000 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—For working capital. Office—306 Heard Bldg.,
July 8

,

* Pioneer Uranium Corp., Moab, Utah
July 19 (letter of notification) 1.400,000 shares cf capital
stock (par 15 cents). Price—20 cents per share. Proceeds

(par $10).

Proceeds—To

amendment.

Inc.

23,029 shares of common stock. Price
Proceeds—To two selling stockholders.

par

preference
per unit. Pro¬
shares of outstanding preferred
line extensions and electric transform¬

common

preferred stock

corporate

^ Steward Uranium Drilling Co., Inc.
July 27 (letter of notification) 300,000 shares of common
stock (par 1 cent).
Price—$1 per share. Proceeds—For
mining operations. Office — Citizens National Bank &
Trust Co. Bldg., Baytown, Texas. Underwriter—Baruch
Brothers & Co., Inc., New York.

June

'

• Thompson-Starrett Co. Inc., New York (8/17)
July 29 filed 145,000 shares of cumulative convertible

Co., Boston, Mass.

+ Perkin-Elmer Corp., Norwalk, Conn.
July 27 (letter of notification) 7,385 shares of common
stock (par $1) to be offered to employees.
Price—$7.50
per share. Proceeds—For working capital. Office—Main
Petaca

tember.

—For

construct and

Ave., Norwalk, Conn.

Underwriter—Vickers

Development, Inc., Albuquerque, N. M.
June 16 filed 908,967 shares of common stock (par $1)
to be issued and sold at $1 per share upon exercise of
Pubco

ris & Co.,

-

by amendment. Proceeds—For exploration
drilling, and payment of bank loans and advances.
& Co., New York, on a "best ef¬
forts" basis. Offering—May be made same time in Sep¬
be supplied

Underwriter—None.

Stardust, Inc.. Reno, Nev.
con¬

per share).
Proceeds—To cer¬
selling stockholders.—Underwriter—Fairman, Har¬
Inc., Chicago, 111.

tain

par

000 of short-term loans and to finance construction pro¬

Pacific Telephone & Telegraph Co.
May 7 filed 1,004,603 shares of common stock to be of¬
fered for subscription by common and preferred stock¬

of

($50 per share). Proceeds—For working
Office—Room 505, Amarillo Bldg., Amarillo,

—At

Portland, Me.

Pacific Power & Light Co.

•

A

non-cumulative preferred stock, 300 shares
of series B non-voting cumulative preferred stock and
300 shares of series B non-voting common stock.
Price

July

Co., Inc.

750,000 shares of common
10 cents.) Price—40 cents per share. Pro¬
mining operations. Office—501 Aliso Drive,

ceeds—For

■

Thursday, August 5, 1954

and

amendment.

non-voting

Rockhill

July 13 (letter of notification)

N.

standby).

^ Ptains Mobile Credit Corp., Amanita, Tex.
July 15 (letter of notification) 300 shares of series

York.
North Park Uranium

f

(8/11).f'

•

Ltd.

Fund of Canada,

Pittsburgh Metallurgical Co., Inc.

July 23 filed $2,023,500 of convertible subordinated de¬
bentures due Aug. 1, 1974, to be offered for subscription

day

1984

1

...

(524)

oil

Offering—Postponed indefinitely.

Volume

Number 5348

180

West Coast Pipe

The Commercial and Financial Chronicle

...

Colorado-Western Pipeline Co.

Line Co., Dallas, Tex.

Nov. 20, 1952 filed 1,125,000 shares of common stock (pai
60 cents). Price—To be supplied by amendment. Pro¬

ceeds—Together with other funds, to be used to build

Underwriters—White, Weld & Co. and Union

pipeline.
Securities

Corp.,

both

New

of

York.

Offering—Post¬

poned indefinitely.

March 5 it

applied to Colo¬
authority to build a $21,500,000 natural gas pipe line, in Colorado, to be financed
through sale of about 70% of bonds and 30% of equity
capital.
John R. Fell, a partner of Lehman Brothers, u
Vice-President.

standing preferred shares ($125,000), to repay bank
loan, etc. ($2,500); for purchase or acquisition of addi¬
tional mineral interests, leases and royalties
in the
United States and Canada and for other corporate pur¬

Underwriter—Irving J.

Eagle Uranium Co.

Underwriter—Arlin Davidson, 39

Exchange Place, Salt Lake City, Utah.

Stevens H. Hammon, Chairman of the Board.
writer—Shearson, Hammill & Co., Chicago, 111.

Under¬

(par

Price

cent).

one

—

Three

com¬

cents

and development ex¬
Newhouse bldg., Salt Lake City,
Underwriter—P. G. Christopulos & Co., same city.

Utah.

Office—3?3

Co., Salt Lake City, Utah
July 14 (letter of notification) 12,400,000 shares of
stock

Proceeds

(par

cent).

one

Price—Two cents

For mining expenses.
Office
Bldg., Salt Lake City, Utah. Underwriter
—

com¬

share.

per

721 Judge

—
—

James

D.

Co., Salt Lake City, Utah.

Heed

Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For

mining

operations.

Underwriter—Sheehan

&

Co.,

1

Boston, Mass.

if Zonolite Co., Chicago, III.
July 30 (letter of notification) 6,000 shares of common
stock (par $1).
Price—At market (estimated at about
$4,124 per share). Proceed* — To Philip D. Armour,
Chairman of the Board. Office—135 S. La Salle St., Chi¬
cago, 111.
Underwriter—None.

April 28 stockholders
shares

enable

to

when

approved

common

the

proposal

to

increase

to sell additional shares
will probably be made to

present stockholders. Proceeds—To subsidiaries for their
construction

programs.

Underwriter—None.

New York.

finance construction program.
termined
by competitive

was reported 160,000 shares of common stock
publicly offered—100,000 shares for account oi
and 60,000 shares for selling stockholders. Price
—In neighborhood of $10 per share. Proceeds—For gen¬
eral corporate purposes. Underwriter—Ira Haupt & Co.,

American

Telephone & Telegraph Co.
reported the company is planning a huge
straight debentures. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc. and The First Boston Corp.
(jointly); Morgan Stanley & Co.
June 30 it
issue

was

of

Louisiana

Arkansas
Feb. 22

it

Gas

Cp.

reported Cities Service Co. may sell its
holdings of 1,900,000 |hares of this company's stock.
If
gold at competitive bidding, bidders may include Smith
Barney & Co. and Blyth & Co., Inc. (jointly).
was

if California Electric Povyer Co.
July

29

company

annourfced

(8/31)

that

it

and sell 170,000 shares of common stock

plans

to

(par $1).

issue
Pro¬

ceeds—To retire 37,600 shares of $2.50 sinking fund pre¬
ferred stock (par $50) shortly after Oct. 1, 1954. Under¬

Union Securities Corp. and

J. A. Hogle &

Co..(jointly); Lehman Brothers; Kidder, Peabody & Co.;
Merrill Lynch, Pierce, Fenner & Beane and Dean Witter
& Co. (jointly).
Registration—Expected Aug. 6. Bids
—To be opened Aug. 31.

Central
Dec.

9

it

Illinois Electric & Gas Co.

was

sell

15

300,000 shares of

Underwriters

per

share.

to 400,000 shares of common stock. Price—$1
share. Underwriter — Elder & Co., Chattanooga,

300,000

•

^

General Telephone Co. of Upstate New York
company

Green River Steel

basis

rata

pro

12.

was

Price—$25

and

approved; rights will expire
share.
Proceeds—To increase

per

surplus.

Underwriter—Cyrus J. Lawrence

Corp., New York.

Louisville & Nashville

RR.
(9/30)
reported that the company may issue and
$30,350,000 of new first and refunding
bonds due 2003.
Proceeds—To retire $24^-

July 7 it
sell

was

late in

mortgage

610,000
bonds

1954

Atlanta, Knoxvil.le & Cincinnati Division 4%
May 1, 1955, and for general corporate pur¬
Underwriters—May be determined by competitive

due

poses.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White. Weld & Co. and Salomon
Bros.

plans to issue and sell
50,000 shares of 5% cumulative preferred stock (par
$25). Underwriters—Paine, Webber, Jackson & Curtis
and Stone & Webster Securities Corp., both of New York.
reported

a

Securities

Lauderdale,

Tenn.

on

Aug.

&

Hutzler

McBride

(jointly).

Oil

&

Bids—Expected Sept. 30.

Gas

Corp.
June 23 it was announced
1,500,000 shares of capital
stock will be publicly offered this month.
Price—$1 per
share.

,

t

Proceeds—To finance improvements. Underwriter

Corp.
reported company is planning to issue
and sell $2,000,000 of 15-year first mortgage convertible
bonds.
Underwriter—Equitable Securities Corp., Nash¬

—Kramer, Woods & Co., Houston, Tex.

ville, Tenn.

construction program.

it

9

was

Hudson

Fulp & Paper Co.
June 28 it was reported company may be considering
some new financing.
Underwriter—Lee Higginson Corp.,
Indiana & Michigan Electric Co.

To be determined

by competitive bidding.

Probable bid¬

For bonds—Halsey, Stuart &

Co.

Union
Securities ; Corp.
Registration —
Sept. 3.
Bids—Tetnatively expected to be
received up to 11 a.m. (EDT) on Oct. 5
Brothers;

Planned

for

Kansas

March 8 it

was

announced that company may

sell in th«

part of 1954 $16,000,000 first mortgage bonds. Pro¬

ceeds

—

To repay bank

loans and for

new

construction

Underwriters—To be determined by competitive bidding

Probable

bidders:

Halsey,

Co. Inc.; Lehmar
Brothers and Bear, Stearns & Co. (jointly); Kuhn, Loet
& Co., Salomon Bros. & Hutzler and Union Securitiei
Corp. (jointly); Glore. Forgan & Co.; Blyth & Co., Inc
and The First Boston Corp. (jointly); White, Weld & Co
and Shields & Co. (jointly); Harriman Ripley & Co., Inc.
Equitable Securities Corp.
Meeting—Stockholders on

April 27 aprpoved
Kansas

&

financing.

new

Power &

Stuart

construction purposes.
done

Underwriter—Previous

bond sale

Kentucky Utilities Co.
it was reported company plans to issue and sell

$15,000,000 first mortgage bonds, series F.
be

(jointly); Kuhn, Loeb & Co.

and Salo¬

Bros. & Hutzler (jointly).

Montana-Dakota Utilities Co.
8 it was reported that company

July

plans to issue
September $12,000,000 of first mortgage bonds
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriter
To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Go.

and sell in

—

Inc.; Blyth & Co., Inc., White, Weld & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blair, Rollin*
&

Co.

Inc.

National Fuel ©as Co.
June

25,: L. A.
plans

if/*r

to

offer

additional

stockholders this Fall

common

program.

Underwriter

determined

by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Harriman Ripley &
Co. Inc.; The First Boston Corp. and Lehman Brothers

1

'■

Underwriter

common

stock

Ito

a l-for-10 basis
(with
Proceeds—For construc¬

on

oversubscription privilege).

tion

z'r:'

Brown, President/ announced that the

company

None.

—

Registration—Ex¬

pected in October, 1954.
New England Electric
System (9/28)
April 29 it was announced company plans
its

stockholders

common

stock

on

l-for-10

a

9,108,824

next

basis.

shares.

common

There

to

offer., to

additional

Fall

common

are

Proceeds

—

outstanding
For

construction

of subsidiaries.' Underwriters
To be deter¬
mined by competitive
bidding. Probable bidders: Blyth
& Co., Inc., Lehman Brothers
and Bear, Stearns & Co.
(jointly); Carl M. Loeb, Rhoades & Co.,
Ladejiburg,
Thalmann & Co. and Wertheim & Co.
program

—

J\?erriH

Lynch, Pierce, Fenner & Eeane, Kidder.
Peabody & Co.
and
White, Weld & Co. (jointly).
Bids—Tentatively
expected to be received
New

Feb.

8

Orleans
it

on

Public

Sept. 28.

Service

'

-•

■

Inc.

<

.>

was

reported company plans to offer for sUe
mortgage bonds due 1984 late this
year.
Underwriters—To be determined by
competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Equitable Securities Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc.
(jointly); Lehman Brothers;
Kidder, Peabody & Co. and Stone & Webster Securities

$6,000,000

privately through The First Boston Corp.

June 21

—To

and Drexel & Co.

(jointly);

Light Co.

May 4, D. E. Ackers, President, announced that the com¬
pany plans to sell approximately $10,000,000 of bonds
later vthis year. Proceeds—To repay bank Loans and for
was

Underwriters—To be determined
by competitive bidding'.' Probable bidders:
Halsey, Stuart
& Co. Inc.; White, Weld &
Co.; Kidder, Peabody & Ca

an

City Power & Light Co.

Co.

was

reported company may sell in 1954 about
$3,500,000 first mortgage bonds due 1984. Proceeds—For

(10/5)

announced company plans to sell $16,500,000 first mortgage bonds due 1984 and 40,000 shares of
cumulative preferred stock (par $100).
Underwriter—
was

(1)

16 it

mon

New York.

July 8 it

Metropolitan Edison
Dec.

of

first

Corp. (jointly); The First Boston Corp.; White, Weld &
Co.

.

ceived in October

mortgage

construction.

Underwriters—To

bidding.

Probable

be

bidders:

> Chicago Great Western Ry.
11

Price—$1

,

July 12, Earle J. Machold, President, announced that the
copipany plans to issue and sell $25,000,000 of general

determined

Halsey,

Co.

Aug.

stock.

Long Island Trust Co.
*
July 27 the offering to stockholders of record July 20
of 11,500 additional shares of
capital stock (par $10)

and

General Beverage Canning Co. of Tennessee
15 it was reported company plans to sell around

was

To

—

bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blyth
Co., Inc. and The First Boston Corp. (jointly); Smith,
Barney & Co.

capital

June

per

; Proceeds

Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. Bids — Expected to be re¬

(8/11)

for the purchase from it of $5,000,000

lateral trust bonds due 1969.

col¬

Price—To be named later.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,

Peabody & Co. and White, Weld & Co. (jointly); Blyth
& Co., Inc.; Giore, Forgan & Co.
I
Citv Title Insurance Co., N. Y. C.

May 20, it

or

November.

June 21 it
its

to

was

reported company plans to issue and sell

common

either

on

stockholders
a

l-for-9

or

an

a

additional

l-for-10

common

basis.

At

1953,

stock

offering, in April,
underwritten by Blyth & Co., Inc. and J. J. B.

was

common

Hilliard & Sons and associates.

Kimberly-Clark Corp.
was announced stockholders will vote Aug. 17
increasing the authorized common stock from 6,000,-

July 21 it
on

00a

shares

(no par value) to 12,000,000 shares

was announced that company is planning to
issue and sell not to exceed $1,000,000 of new preferred
stock.
Proceeds—For working capital.
Underwriter—

share

Chilson, Newberry & Co., Inc., Kingston, N. Y.

New York and San Francisco.




some

April 30, 1954, there were outstanding 2,286,784 shares.
Underwriters—Previous

two

for

new

(par $5),

shares to be issued in exchange for each no par

now

future

held, and to provide additional capital shares

financing.

r

Niagara

bank

Kentucky Utilities Co.

stock,

Bias will be received by the company up to noon (CDT)
on

common

Roman and Johnson, Fort

—

bonds.

Underwriter—To be de¬

an issue of $4,000,000 firat
Proceeds—To repay bank loans and for

by
Stuart
Inc.; Stone & Webster Securities Corp.; Kidder
Peabody & Co. and White, Weld & Co. (jointly).
&

Beverage Canning Co. of Florida
was
reported company plans to issue

it

rhortgage

intends to offer and

company

gell around the middle of 1954

competitive

Aug.

New York. Proceeds — To refinance $12,500,000
outstanding 4% sinking fund debentures due Feb. 1,
General

$20,000,000

(jointly); Union Securities Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.;

announced

mortgage bonds.
new

vote

& Co.,

writer—To be determined by competitive bidding. Prob¬
able bidders:

stockholders will

increasing the authorized indebtedness from $25,000,000 to $65,000,000. In February, L053, a $12,500,000
4% debenture issue was sold through Eastman, Dillon
on

June

issue

to

&

latter

*

if Lindsay Chemical Co.
Aug. 2 it was reported that this company is said to be
considering .the
sale
of
additional
common
stock
.

(jointly); The First Boston Corp.; Harriman
Ripley & Co. Inc.; Kuhn, Loeb & Co.; (2) for preferred—
The First Boston Corp.; Smith, Barney & Co.; Lehman

company

Offering

necessary.

a

bidding. Probable
Salomon Bros. &

Hutzler; R. W. Pressprich & Co.; Blair, Rollins & Co.
Inc. and Baxter, Williams &
Co. (jointly); Harriman
Ripley & Co. Inc. Bids—Up to noon (EDT) on
Aug. 5.

New

to be

&

stock from 4(000,000 to 5,000,000

by competitive
Stuart & Co. Inc.;

Halsey,

first to stockholders.

Beverage Corp.

Co. Inc.; Union
Securities Corp., Goldman, Sachs & Co. and White, Weld

American Natural Gas Co.

the authorized

Tellier

May 5 it

ders:

Prospective Offerings

first mortgage sinking fund bonds due
Aug. 1, 1974. Proceeds — To repay advances from New
York Central RR. and Baltimore & Ohio
RR. Underwriter
—To be determined

company

are

June

Zenith Uranium &

sell, $3,650,000

Underwriters—Lehman Brothers of
York, and Farwell, Chapman & Co., of Chicago. :
Long Island Lighting Co.
April 20 it was announced company plans later in 1954

Cott

July 2 it

Uranium

Yankee

mon

per

Proceeds—For exploration

share.

penses.

be

Fla., and possibly Aetna Securities Corp., New York.

if World Uranium Mining Corp.
July 21 (letter of notification) 9,996,000 shares of
stock

May

—

1973, and for expansion.

if Whiting Corp., Harvey, III.
July 27 (letter of notification) 6,200 shares of common
stock
(par $5).
Price — At market.
Proceeds — To

mon

&

24

(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses. Office—351 S. State St.,

July 12

Salt Lake City, Utah.

sale
of

stock.

Food Fair Stores, Inc.
June 18 it was announced

Rice & Co., St. Paul, Minn.
White

and

,

Co.

May 24 filed 100,000 shares of common stock (par $1).
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬

Office—Glendive, Mont.

Inc.

the issuance

in connection with the acquisition of Uranium Mines

America, Inc.

Plains Oil & Gas

authorized

of not to exceed $6,000,000 convertible debenture bonds

Underwriter
Co., Jersey City, N. J.
.

Office—145 Horton St., Seattle 4, Wash.

Underwriter—None.

poses.

stockholders

23

July

33

if Lakefront Dock & Railroad Terminal Co. (8/5)
July 27 it was announced company plans to issue and

bidders:

Consolidated Uranium Mines,

if Western Gold Mining, Inc., Seattle, Wash.

Western

.

announced company has

was

rado P. U. Commission for

a

July 29 (letter of notification) 150,000 shares of common
stock.
Price—17% cents per share. Proceeds—For min¬
ing operations.

(525)

Underwriter—Blyth &

Co., Inc.,

Mohawk

bonds

loans

and

due
for

Power Corp.

Aug.
new

1,

1984.

(8/24)

Proceeds—To

construction.

repay

Underwriter—To

be determined by

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn.
Loeb & Co. and Union Securities Corp.

Stanley & Co. Bids—To be received
Northern

Pacific

on

(jointly); Morgan
Aug. 24.

Ry.

July 23 it

was reported that company is contemplating
the issuance and sale of $52,000,000 in new bonds. Pro¬
ceeds—For refunding.
Underwriter—To be determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan
Stanley & Co.; Blyth & Co., Inc.
Bids—Expected to be received in September.
Northern

July 2 it

was

States

Power

Co.

(Minn.)

(9/28)

'

announced company is planning the issu-

Continued

on

page

34

:

(

34

Continued from page

Bros.

gage

bonds due 1964 on or about Sept. 28.

Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);

Corp. and Union Securities Corp.

Equitable Securities

(jointly); Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and
Wertheim & Co. (jointly).
(9/14)

& Electric Co.

Gas

Oklahoma

new

July 12 it was reported company plans to issue and sell
75,000 shares of preferred stock (par $100). Previous
preferred stock financing was done privately through
Kuhn, Loeb & Co., New York. If competitive, bidders
may include: The First Boston Corp.; Smith, Barney &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Lehman
Brothers and Blyth & Co., Inc. (jointly). Registration
Expected Aug. 16. Bids—Planned for Sept. 14. Com¬
mon Stock Financing—First to stockholders, expected in

•

additional

stock.

Underwriter

—

April

27

1955.

approved

authorized

Pan-American Uranium Corp.,

Salt Lake City

has

privately owned and financed, will have authorization
for the issuance of 5,000,000 shares of stock. Any punnc
financing may be handled by Kramer, Makris & Co.,
Houston, Tex.

proposals
from

which

July 13 it

was

June 21 it
of

be

was

reported

(10/4-8)

Western

—If

May 24 it
of

Probable

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Corp.; Harris, Hall & Co. Inc.; HarriRipley & Co., inc. and Union Securities Corp.
(jointly); Lehman Brothers; Kidder, Peabody & Co.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly).
Registration—Expected in September.
Bids—Expected

issue of about 200,000 shares
registered with the SEC. Price

Proceeds—To

ible

investment

concern

company to
and to make a public

register as
offering of

was announced stockholders will
on Aug.
17
increasing the authorized preferred stock (par
$50) from 14,000 shares to 50,000 shares, and the author¬
ized class B common (par $1) from
950,000 shares to 2,000,000 shares. Underwriter—Stroud & Co., Inc., Phila¬

March 16 it
to

Rochester Gas

May 17 it
year

& Electric

some

construction.

bonds to be determined

by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly); Salomon

for

things that
about
currently

materialize,
bulk

of

such

nebulous

One
the

but

of

in the under¬

writing business when dearth of
issues leaves plenty of time

new

for

gossip and the usual bumper

crop

of

rumors

of

impending

or

potential undertakings.
This
quence

is

of

especially
the

fact

so

in

that

conse¬

the

last

fortnight has brought pretty much
of a general cleaning up of un¬
derwriter
As

one

and

dealer inventories.

observer

of

long

perience put it "this is the




ex¬

time

the

for

to

suance

in

are

temporary

to

the

its

re¬

Ford

the

of

at

here

it

is

the market.

evident

that

longer the
policy of the country's exchanges
to list issues without
voting rights.
The

Ford

story,

Telegraph
Co.'s, $20,000,000 of 35-year de¬
bentures attracted widespread in¬
terest

with
were

to

market

for

an

per

But

develop

between

Another
the market

"likely
sees

now

and

the

quickly closed.

as

things is Phillips

at

a

price

indicated

yield

of

of

101.086

2.95%.

winner and
in

the

the

case

of

runner

up.

Northern

Illinois Gas Co.'s block of 233,974
shares

-

candidate"

that

bidding only about 64 cents
$1,000 bond separated the bids

persistent with best guesses
being
that something
along that line
will

result

In the

of the

the end of the year.

the

Underwriters brought this issue

is

however,

&

of

publicly
were

bit

common

at
on

$21
the

a

stock, offered
share,

slow

things

side.

The

$12,500,000

Probable., bidders:

Co.

new

securities.

Proceeds—

Halsey,

LyncifrPierce, Fenner

offer

W. Baird &

block

was

underwritten

of\: 400,000

shares

leaving

in

Edison

distribution

some

Co.,

5,000,-

for

4|to its

First

Boston

Beane; Robert
& Co.

paid off.
Slim Week Ahead

ulti¬

Direct^ Placement

financing

operations,

rectly

the

to

$73,000,000 of
sinking fund

went

lenders

nev|;

di¬

with

25-year 3%%

The only corporate issue of
any
is Pacific Power &

insurance

existing

group

[companies,

with

the<~ Same

fixed

for

of

an

funds

is

intended

for the

outstanding issue of Moun¬

tain States Power Co. bonds.

tions

there
to

the

several

were

list

of

propects

for

Telephone & Telegraph went into
registration to cover a planned

institu¬

issue of $55,000,000 of debentures.

ahead.

Southern

Bell

This, the largest of current fil¬

ings, is designed to put the

the

pany in funds to repay some

first

not

-

addi¬

out¬

weeks

fund ^"requirements

off

to

retirement

the

10

years

though the company has the
pay

operation

re¬

•-*.
sinking

This

provide

us¬

obligations

tions.

Light Co.'s $30,000,000 of 30-year
first
mortgage bonds on which
bid? will be opened next Monday.

But
a

ing $52,590,000 of the total to

standing

its

debentures.

It placed this issue with

to

must be

common

Regis Paper|Co., which put
through the largest of the week's

tion

&

consequence

Large

are

The

$13,800,000 in that period. But in
the final 15 years 95% of the issue

the^hands of Com¬

St.

No

by

Co., Inc.; and William Blair

was| marketed last

holders.

finance

Stuart & Co. Inc.; Merrill
Beane, Salomon Bros. & Hutz¬

Corp.| Merrill Lynch, Pierce, Fenner

issue

of nine

&

an0 Union Securities Corp. (jointly);
White, Weld &
Co.; Kidder, Peabody & Co.; Kuhn, Loeb &
Co.; Dean
Witter & Co.; The First Boston
Corp. Previous common

shares

The Mountain

a

lot of spade work would have to
be done, since it is no

this

of

mate

offerings, rath¬
best, encountered

Telephone

books

But

on

Reception

new

mixed reception.

States

holdings

stock

limited

er
a

with

do

of

non-voting

Mixed

about

ler

Securities

000

This week's

of

Service

reported company is considering the is¬

refund $8,000,000 outstanding first mortgage 4Vs%
bond^tie 1983 and for new construction. Underwriters
—Fo&fe£bds> to be determined by competitive bidding.

monwealth

the

Public

was

To

April at 15%,

of the

eye

last year and $10,000,000 for new construc¬
be determined by competitive

^Underwriter—To

★ Wisconsin

being talked

"gleam in the

,

jProceeds—To redeem $8,000,000 4% first mortgage

stock!

hopefuls."

(10/5)

announced management is planning issuesale of $18,000,000 first mortgage bonds due

July £8 it

original

a

by

I| F; Rothschild & Co. (jointly); Union Securities
Corp.;* The First Boston Corp.; White, Weld & Co. and
Kiddejr, Peabody & Co. (jointly); Smith, Barney & Co.
and
Robert W. Baird & Co. (jointly); Blyth & Co., Inc.
Bids-fExpected about Oct. 5 with registration on or
aboutfSept. 9.

than

stage.

place

Ford Motor Co.

Webster

Light Co.

handled

was

and

Petroleum Co., but here again the
idea seems to be nothing more

probably
will
right now the

intention

Foundation

stones

choicest morsels of
has

&

&

1922

Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Salomon Bros. &
Hutzler;
Lehm$n Brothers, Bear, Stearns & Co., Reynolds & Co.

Tri-Continental Coip.

ideas

the

moment

ported

are

misty

or

Stone

Power

in

permanent

Underwrit¬

bidding.

course, some

Ultimately, of

of the

season

1984.

plans

company

was

bonds rsold

March 30 stockholders voted to
reclassify 500,000 shares
of presently authorized but unissued
$6 cumulative pre¬

looking under all

bait."

This is the

repay

announced

was

Proceeds—To retire bank loans.

$nd

tion.

reported company plans later this year

permanent financing to

it

Wisconsin

ance

early date 145,000 shares of convert¬
(par $10). Proceeds — To retire

White, Weld & Co. and
Corp., both of New York.

Underwriters—(1) For

of

•

stock

was

sqme

28

July 26 it

loans necessary to pay for new construction esti¬
mated to cost about $11,000,000 for 1954. Underwriters—

Corp.

reported company may issue and sell this
additional bonds and preferred stock. Pro¬
new

do

&

Electric Co.

er—Previous bond financing
Dillon, Read & Co. Inc.

bank

was

ceeds—For

June

finnacing.

Transcontinental Gas Pipe Line Corp.

delphia, Pa.

Rollins

Bear, Stearns & Co. (jointly).

Wheeling

-

mon

on

Blair,

Stuart & Co. Inc.; Union Securities Corp. and Glore,
Forgan & Co. (jointly); Blyth & Co., Inc.; Lehman

proximately $292,000,000, which would be financed
through the issuance of about $36,500,000 each of com¬
stock and debentures and
$219,000,000 of first mort¬
gage bonds. Underwriters—Lehman Brothers and
Wood,
Gundy & Co., Inc., both of New York.

Ritter Finance Co.
June 8 it

and

.

Pacific RR. Co.

Brothers and

Trans-Canada Pipe Lines, Ltd.
March 26 it was annouced that the cost of the
building
of the proposed cross-Canada gas
pipeline would be ap¬

Fund, Ltd.

Co.,

sey,

Underwriters—Blair, Rollins & Co. Inc. and
Deetjen & Co., both of New York.

Emanuel

&

•

termined by competitive bidding. Probable bidders: Hal¬

bank loans.

securities in the United States.

vote

preferred

Peabody

and sell $6,500,000 of these bonds. Proceeds—To re¬
imburse company for capital expenditures already made
and for;'future improvements.
Underwriters—May be de¬

was

an

Kidder,

sue

$20,000,000

issue and sell at

by

to sell first and refunding bonds without obtaining
approval of preferred stockholders. It is planned to is¬

Thompson-Starrett Co., Inc.
July 1 it was announced new Thompson-Starrett Co.
(following merger of Roberts & Schaefer Co.) plans to

& Webster Securities Corp.

an

Co.

pany

selling stockholders.

C.

competitive
bidding.
Probable
bidders:
Halsey,
Inc.; Stone & Webster Securities Corp. and
White, Weld & Co. (jointly).

Puget Sound Power & Light Co.
April 5 the directors approved a program designed to
refund the company's long-term debt. Bidders may in¬
clude Halsey, Stuart & Co. Inc.; Lehman Brothers; Stone

April 27 the SEC authorized the

Electric

June 30 stockholders approved a proposal to allow com¬

Stuart & Co.

first week in October.

determined

Corp.;

to

bidders:

Resources of Canada Investment

Massachusetts

Co. Inc.

Tennessee Gas Transmission Co.

Underwriters—

bidding.

vote

competitive bidding, probable bid¬
ders may be: Halsey, Stuart & Co.
Inc.; The First Boston

by

competitive

bonds.

new

July 12 it was reported company is planning sale in
September of $6,000,000 debt securities. Proceeds
To
repay bank loans and for new construction. Underwriter

Western

man

construction.

new

by

of

r

The First Boston

for

and

Morgan
Sept. 21
Bids—Expected

Meeting—Stockholders will

approving issuance

Sept. 8>

★ Suburban Propane Gas Co.
July 26 it was reported company plans to issue and sell
100,000 additional shares of common stock. Underwriter
—Eastman, Dillon & Co., New York. Offering—Probably
in September.

reported company plans to issue $20,000,bonds, due 1984. Proceeds—TO repay

determined

$12,632,000 of first mortgage bonds,
1976, and the remainder used to reimburse

Inc.;

reported company plans issuance and sale
of debentures later in 1954 (in addition
$25,000,000 bonds filed May 26 with SEC). Proceeds—
For new construction.
Underwiters—To be determined

loans

(9/8)
company

for

Stanley & Co.
on

Allyn & Co. Inc. and Dempsey &
Co., both of Chicago, 111.

000 first mortgage
be

4,100,000 shares of
public. Proceeds—To

expenditures for capital improvements.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co.

an

stock will be

common

Underwriters—A.

of the unsubscribed shares.

To

and

the

to

To redeem

r—

company

determined

—To be named later.

—

bank

sold

announced

was

series B, due

Standard Coil Products Co.

—

was

be

to

plans to
serial notes; $71,000,000
and $24,440,000 in sub¬

plans to issue and
$16,000,000 of first mortgage bonds due 1979. Pro¬

sell

ceeds

by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Drexel & Co. (jointly); Morgan
Stanley &
Co.; Kuhn, Loeb & Co.

announced company plans to issue and
sell to its stockholders an additional 1,200,000 shares of
capital stock on the basis of slightly less than one new
share for each four shares held (with an oversubscrip¬
tion privilege). Price—At par (25 cents per share). Pro¬
ceeds
For capital improvements and working capital.
Underwriters
Consolidated Coppermines Corp. and
Burnham & Co., New York, have agreed to purchase, in
proportions of two-thirds and one-third respectively,

July 28

stock

*

company now

—

derwriter—To

Progas of Canada, Inc.

Public Service Co. of Colorado

14,

Western Maryland Ry.

in¬

5,000,000 to

treasury for capital expenditures previously made. Un¬

(Western) Ltd. of Toronto, and Carl M. Loeb, Rhoades

•

common

Washington and

.

& Co. of New York.

any

September

a natural
gas pipe line from the
Canadian Peace River field to western

★{Southern Pacific RR. Co.
July 28 it was announced company has applied to the
ICC for authority to issue and sell $21,091,000 first mort¬
gage bonds due Jan. 1, 1996.
Proceeds—To reimburse

jointly by Mannix Ltd. of Calgary, Dome Exploration

July 13 it

in

may

additional

finance construction of

Blyth & Co.,

Co., Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.

Pipe Line Co. (Canada)
announced company has been granted
the right to obtain a permit to build a 72-mile pipe
i-line to transport crude oil from the Pembina Oil Field
in Alberta to Edmonton.
Financing will be handled

company
and sell

issue

to

stockholders.

common

Drexel &

was

reported

1953, it was announced
$29,000,000 in l-to-5V2-year
in 20-year, first
mortgage bonds;
ordinated long-term debentures

Pembina

April 14 it

to

was

plans

issue

specific

no

it

York.

Inc.

West Coast Transmission Co.

Oct.

financing program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953, was underwritten by
company

appropriate time, when conditions warrant.

Underwriter—If underwritten, it
may be Laird & Co.,
Wilmington, Del. Two previous
offerings to stockholders were not underwritten.

shares and the authorized indebtedness of
company
from
$25,000,000 to $50,000,000.
The

the

presently

announced that this company

was

14

stock

10,000,000

June 30 it

a

Oregoh. Underwriter—Eastman, Dillon & Co., New York.

stock

common

an

announce

Scott Paper
creased the

at

June

Inc., San Francisco and New York.
Co.
stockholders

value, into 1,000,000 shares of

We|ex Jet Services,

Electric Co.
announced company plans to offer early
(first to stockholders) 800,000 shares of

common

Thursday, August 5, 1954

.

Underwriter—Union Securities Corp., New

was

October

in

.

cjass of preferred stock, $50 par value, making
a
refunding of the outstanding $6 preferred

stock

San Diego Gas &

Aug. 3 it

.

possible

Joseph Light & Power Co.
March 30, C. A. Semrad, President, announced that the
company may raise new money this year through the
sale of $1,000,000 first mortgage bonds or from tempo¬
rary bank loans for its 1954 construction program, which,
it is estimated, will cost $1,661,000. Underwriters—May
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co.,
and Glore, Forgan & Co.
(jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp.

& Co. Inc.; Lehman Brothers and
(jointly); Smith, Barney & Co.; Glore,

Co.

&

ferred stock, without par

St.

toiuart

naisey,

Riter

Underwriters-^

competitive biddings. Probable bid¬

To be determined by

Boston

Hutzler; Shields & Co.; Blyth & Co., Inc.; The
Corp.; Union Securities Corp. and Equit¬
able Securities Corp. (jointly). (2) For preferred stock,
The First Boston Corp.
1

approximately $20,000,000 of first mort¬

and sale of

&

First

33

ance

ders:

andCjFinancial Chronicle

The Commercial

(526)

more

op¬

than

com¬

$52,000,000 to American Telephone &

Telegraph, parent firm.

Volume

Number

180

5348

The Commercial and Financial Chronicle

..

.

(527)

DIVIDEND

Int. Tel. & Tel. Unit

Allegheny Ludlum Steel Corporation
Pittsburgh,

In Switzerland
.The

International

At
of

a

meeting

of

debentures

in

the

aggre¬

amount of

75,000,-

Swiss Francs (approximately
17,500,000 U. S. dollars, at the cur¬

ments

exchange).
this

for

Arrange¬

transaction

were

the

share

holders

of

close

tember

1,

The

be

amounting

issues:

two

July

on

PREFERRED

of

the

On

the

on

($1.09375)
tive

Sep¬

on

of

be

of

three-eighths
cents
the $4,375 Cumula¬
the
Corporation,
15,
1954,
to Preferred

record

September

EDMUND

the

at

1,

S.

of

close

A.

these

banks

declared

share

Y.

51

record

20,
the

at

27,
of

1954
close

1954^

Atlas

holders

of

25

cents

pay¬

G.

CHACE,\JR.
President

business

of

on

Pittsburgh

of

Directors

ONE-HALF

Also

for

CENT

declared

DIVIDEND of

a

FIFTY

Common

a

G.

F.

CRONMILLER, JR.
and Secretary

President

Vice

ploration

and

for

the

of

Preferred

per

Stock

The

are

payable

October

for

holders of record September 2,

books

transfer

E.

F.

will

The

Duectors

have

share

Page, Secretary and Treasurer

the

on

conimon

do

exploration

Plateau

business
in

and

in

the

company

out¬

owns

Wyoming

and

has

ac¬

quired by purchase 24 unpatented
tracts and 440 acres of ground on

the Colorado Plateau.
The

authorized

capital

the

of

company consists ,of 5,000,000
shares of common stock, of which
there are
presently issued and

outstanding 1,750,000 shares.

Joins Ball, Burge Staff.
(Special to The Financial Chronicle)

CLEVELAND,
Guthery
ptaff

has

of'

Ohio —John

been

Ball,

added

Burge

to

&

Building,

bers

York

the

west Stock

Nbw

Exchanges.

B.

payable
to

stock¬
A

record

August

17,

URQUHART,

July 29, 1954

regular quarterly dividend of
3ll/±c per share on the 5% Con¬
vertible Preferred Stock has been
declared payable September 1,1954,
stockholders

to

of record August

13, 1954.

regular quarterly dividend of
share on the Common

per

has been declared
payable
August 31, 1954, to stockholders
of record August 13, 1954.

Pullman

M.

MILLER

Consecutive

Cash

Year

E.

GRIFFIN,

Secretary-Treasurer.

Incorporated
Quarterly

I lied

of

Dividends

paid by Pullman Incorporated

hemical

and

THE FLINTK0TE COMPANY
Notice to

tmnusu corpora! ok

predecessor companies

Security Holders

mem¬

TENNESSEE

regular quarterly dividend of
(154)

cents

CORPORATION

per

share will be paid on Septem¬

Allied Chemical & Dye Corporation
' made ' generally
available to its
security hoklers, in accordance with
the provisions of Section 11 (a) of the
Securfties Act of 1933, as amended,
an
earnings statement on a consoli¬

30 ROCKEFELLER

NEW YORK 20,

PLAZA

N.Y.

July 20, 1954

ber 14, 1954 to stockholders of
record

A dividend

August 20, 1954.

cents

CHAMP CARRY

A

beginning after the effective date of
Company's Registration Statement
filed on March
11,
1953 with) theSecurities and Exchange Commission
(SEC File No. 2-10125) relating to
$200,000,000 Twenty-five year 3y2%
Debentures due April 1, 1978. Copies
of such earnings statement will be
mailed upon request to the Company's
security holders and to other interested
parties.

has

declared

been

on

the

record

the

ness

Stock payable September 1^5, 1954
stockholders

to

of

record

close of business September
A

at

the

has

declared

been

John G. Greenburgh

on

the

m

61

TRAILMOBILE
v

j

•

ber

10,

1954,

record

at

August

27,

to

stockholders

close

the

of

t,

Treasurer.

,

Broadway

New York 6, N. Y.

Common Stock payable Septem¬

DYE CORPORATION

the close of bush

at

September 16, 1954.

1, 1954.

quarterly dividend of $.50 per

share

ALLIED CHEMICAL &

61

Preferred

Cumulative

$4

fifty (50^)
share has been dc
payable September

28, 1954, to stockholders of

quarterly dividend of $1.00 per

share

of

per

clared

President..

dated basis for the twelve-months' pe¬
riod ended June 30, 1954, such period

of

business

1954.

Broadway
CLIFTON W.

New York 6, N. Y.

GREGG,

Vice-President and Treasurer.

By W. C. KING, Secretary

Common andPre/erred Dividend

August 4, 1954

August 2, 1954.

Mid¬

and

A

seventy-five

has

the

Kraus,

Union Commerce
of

1954

a

Colorado

right 94 unpatented tracts in the
of

of

10,

and

The

State

the capital stock

on

Corporation,

the

of

Wyoming

province of southeastern

Utah.

this

Stock

Secretary-Treasurer

development of
its uranium properties located in

Wyoming

of

stock, pay-'

A.

HANNAN,

divi¬

40 cents per

able

WILLIAM

March 8, 1954 and qualified to
business in Utah, will be the

on

share

per

September 15,1954, to stock¬
holders of record August 18/1954.

July 28, 1954

H.

Notice

July 28, 1954
!

The Board of Directors of the
DISSOLUTION NOTICE

Company has declared
following quarterly dividends, all payable on
Sept. 1, 1954, to stockholders of record at the close
of business Aug. 6,J95.4:..,
*
* Amount

'

the

—

STATE OF NEW

•STATE,
I

DO

cate

of

YORK, DEPARTMENT OF

ss.:

HEREBY

CERTIFY

dissolution

""

that

a

certifi¬

and

that

it

corporation

appears

has

Law,

and

GIVEN

that
IN

It

Department
of

State)

with

that

section

such

CITIES SERVICE COMPANY

the Stock Corporation
is dissolved.
\
under
seal

of

nine

hundred

declared
share
ber

J.

CURRAN,

Secretary
By SIDNEY B.

of

State.

GORDON,

Deputy Secretary of State.




Board

on

a

of

Directors

of

Service

Cities

quarterly dividend of

one

dollar

its $10 par value Common stock,

7,

1954,

to

stockholders

of

record

($1.00)

per

payable Septem¬
at

the close

TEXAS

EASTERN

C.

CHRISTIAN,

/ta^z^nAufiofZ'

of

August 13, 1954.
ERIE

•

■

^

SHREVEPORT.

business

-

Company has

and

fifty-four.
THOMAS

The

$1.18%

Stock, 4.75% Convertible Series

-

my hand
the De-

partment of State, at the
City of AlbanV> this twentyflrst day of July, one thousand

Preferred

Stock, 4.50% Convertible Series —$1.12%
Common Stock
-$0.35

,

offical

Share

Preferred

1

Dividend Notice

per

,

PreferredStock, 5.50% First Preferred Series $1.37^2

one

of

DUPLICATE

and

(Seal

therefrom

complied

five

Security

of

BARCHESTER PUBLICATIONS, INC.
has been filed in this department this
day

hundred and

at

Aug. 6, 1954.

of Sixty-five Cents (65(f)

30c

declared

quarterly dividend of

open.

stockholders of record

to

the close of business

A

1954. The

remain

dend

Dividend No. 69"-

to

per

KENNETH

COMPANY

of

organized

UCC

of Directors has

third-quarter

a

M. W.

LANE-WELLS

the

1954

1,

Board

88th

principal

on

Vice-President and Secretary

Treasurer.

share

Stock have been declared. Both divi¬

mon

dends

The

declared

TECHNICAL OIL FIELD SERVICES

184

75^

DODGE

1954.

such properties.

company,

business

AND CARBON CORPORATION

«>

holders

ex¬

development

and

of

Union Carbide

1954

PHELPS

September

quarter ending September 30, 1954 and a
dividend of 20^ per share on the Com¬

stock

claims

or

Dividend No.

dividend
the

on

The company intends to use the
net proceeds to acquire and main¬
tain certain
oil, gas and mining
leases

quarterly

Securities

share "as

the Old Colony
Dividend Dis¬

•

share on COMMON STOCK, payable Sep¬
tember 1, 1954 to shareholders of record August
10, 1954.

American

A

per

close

Plaza, New York 20, N.Y.

bursing Agents.

ONE

CENTS

Preferred Dividend No. 194

speculation."

pay¬

record

or

Company

Corp. at 20 cents

the

of

quarter
of

DIVIDEND

F'ER

per

Hunter Securities

cents) of Mountain Mesa Uranium

business

of

close

the

at

Checks will be mailed by
Trust Company of Boston,

CORPORATION

declared

1954

$1.50
per
share
on
PREFERRED
STOCK,
payable
October
20,
1954
to
shareholders of
record
October 6, 1954.

a re¬

(par five

record

of

August 9,1954.

1954

has

30,

(IV2%)

Bank Note

stock

stockholders

Pennsylvania

September

ending

Telegraph Corp.

common

holders

HARBISON-WALKER

August 2, 1954.

sulting increase in the working
capital of International Telephone

shares of

July 29,

Fifty cents
share on the outstanding
capital stock of this Corporation
has been declared, payable Sept. 1,

REFRACTORIES COMPANY

indebtedness

Corp., New
York, is offering publicly 1,434,275

on

September 10, 1954,

NOTICE

regular quarterly dividend of Seventyfive Cents (75fi) and a year-end extra dividend
of One Dollar ($1.00) per share have been
declared payable Augus.t 16, 1954, to stock¬

on

the Common

Corp. will apply the net proceeds

Hunter

on

A

Corporation.

Electric

with

a

capital stock of

August 9, 1954.

(504)

July 29,

to the parent company,

to

30 Rockefeller

of

to

and

&

dividend

a

the Common Stock,

on

issues.

current

the

A cash dividend of

Walter A. Peterson, Treasurer

principal and interest

its

on

Boston, July SO, 195k

DIVIDEND

Berk¬

Associates, Inc.

MALCOLM

Board

against

Directors of the

able September 1, 1954 to stockholders
of record August 10, 1954.

Common Stock

September

Stock

Standard

declared

Paul E. Crocker, Secretary

August

International

has

PEPPERELL

regular quarterly dividend of 50£
per share has been declared, payable

other

and

jersey)

INC

ASSOCIATES

Spinning

has

No.

new

$1.15 per share

A

Corp. for

a Swiss syndicate. In¬
Telephone and Tele¬
Corp." will guarantee pay¬

for both

of

Fine

per

members of

ment of the

Board

33 Pine Street, New York 5, N.

ternational

graph

SPINNING

Atlas Corporation
Dividend

in

The Board of Directors

business

at

July 29, 1954.

two

of

Secretary.

MANUFACTURING

shire

public distribution in Switzerland

by

close

the

STANDARD OIL COMPANY
(incorporated

stock¬

Cash Dividend

McCASKEY, JR.
Secretary

sold to Credit

Bank

at

W. B. ASHBY,

IPE-PPE-BXLLI

The

on

were

1954.

the Com¬

1954, * to

15,

of

the

HOFFMAN, Secretary.

busi¬

1970,

of 3i/2%.

Swiss

record

of

PA B dlCS

other, maturing on July 15,
amounting
to
15,000,000
Swiss Francs, at an interest rate

and

holders

August 27,

Stock of

September

on

Checks will

open.

1954.

1960,

Both issues

payable

pany,

declared

1954. This dividend is

TNE

the

Suisse

Capital

on

1954

per share

COMPANY

60,000,000
Swiss
interest rate of 4%;

an

been

29,

dividend

able

to

Francs, at

STREET

July

of

one,

15,

remain

Pa„

mailed.

on

Stock

declared

was

RACE

2,

quarterly

has

one

Company, payable
October 1, 1954 to Stockholders of record at
the close of
business September 16,
1954.

the

dividend

a

cent

per

NOTICES

COMPANY

Fifty Cents ($.50)

the Preferred Stock of this

and

share

September

on

business

declared

nine
per

stockholders
ness

at

three-quarters

STOCK

quarterly dividend of

a

Transfer books will

also

Preferred

payable

record

July 27, 1954

and

Cor¬

1954.

Board

dollar

one

of

City, with the coopera¬
tion of S. G. Warburg & Co., Ltd.,
London, England.
will

declared

Stock

Common

New York

There

Phila.
A

poration, payable September
30, 1954, to Common stock¬

negotiated by Kuhn, Loeb & Co.,

maturing

can company

Directors

of

DIVIDEND

Incorporated
1513

Board

was

NOTICES

METER

AMERICAN

July 29, 1954, a divi¬
dend of fifty cents (50c) per

un¬

000

rent rate of

DIVIDEND

Penna.

today,

Standard

graph Corp., has sold abroad
gate principal

NOTICES

Allegheny Ludlum Steel Corporation held

Electric Corp., a subsidiary of In¬
ternational
Telephone
&
Tele¬
secured

DIVIDEND

AMERICAN

Sells Debentures

;

NOTICES

35

Secretary

LOUISIANA

Secretary

(^oytotaAcon*

36

The Commercial and Financial Chronicle

(528)

of the

BUSINESS BUZZ

Thursday, August 5, 1854

...

with

charges of "give away,"
fight offered to the

no

enemy.

(This column is intended to re¬

Washington... , J
from tbe Nation's

\ ffii

X " Cv

to have risen to

seem

challenge,

not

least

at

wind-up has been the remark¬

the

able degree to

loud enough to impress any one

which the Demo¬
of

in favor
ownership of

flatly

ment

other

neck

been

and

power

"give
by the
aggressive left-wing crowd.

that

been

im¬

not

has

at

hurled

of

them

,

Eisenhower

the

Administration

blows

demagogic

the

away"

feature

concurrent

joined.

be

will

arguments appear to have
to
fend
off defensively

Their

govern¬

or

issue

the

that

activities, and—

Another

Jhas

its

stuck

has

left

cratic
out

Washington observers
willing to join the
issue, and hurl the challenge
squarely at the opposition and
take a four-square stand in op¬

There

being

this

position to government owner¬

government
always
been

Heretofore,
and

>4ftid not

come

into being for the

of putting the govern¬
the business per se

purpose

into

ment

generating

electric

ing

horn

the

vast

empire

TVA

Guide

related

mendations
leum

minous

servation

dams

not

would

will

Boss

the

much

be

when

surprised

he

generation

of TVA

into

run

them¬

line

by

•First, they said it was a "give
away" for the President to be¬
upon

contract

a

to

had

the

TVA.

Thus,

^with privately-generated power
becomes,

as

such,

"give away."

a

Second, the Democrats have,
the process of saying that
sharing of atomic secrets for
private power generation be¬

ural

its

of

States

become

limited

as

is

that

ting

of

of

out

^Provides Clear-Cut Issue

lacu:

of

have
as

•

caution,

come

or

out for

article

an

zeal

of

of

on

and

Not

faith

of

earth

up a

Democrats
afble
w Li

to

plenty

a

is

always
such

been

charge

a

tion
*

lot of stuff, that this

It's

one

the

of

who

its

inform

news

living

Now anyone

served

'that

not

they

has put

£"

only subordinate

rol, irrigation, soil

vatioa

or

navigation.




to

flood

conser-

of

the

U.

S.

to

ergy
an

not

the

So

It's

the

public

a

than

asked

would

they

on

or

off

a

a

record

clear that the

to make it

REA

is

Ohio —Philip

J..

Ohio

with. The

now

Company, 51 North High Street.

With Link, Gorman
(Special to The Financial Chronicle)

GREEN

Reinhart,
ciated
&

asso¬

BAY, Wis. —John C.
Jr. has become asso¬
Link, Gorman, Peck

with

Co., Northern Building.

Edward J. Karl
Edward

Aug.

1

J.

Karl

r

passed

at the

long illness.

power

kite.

ment

48

their

REA

that

on

age of 55 after a*
Mr. Karl was asso¬

ciated with Sutro Brothers & Co.

and

answer

It's

the

again

face

to

REA

move¬

recent

these

a

We have available copies of

stands,

was

"no comment."

48

These

properly

the

representing

association's

national

not

was

a

ward

Analysis of

frightened

•'
case

an

of covering
off

the

hurt

RIVERSIDE CEMENT
CLASS

B

COMMON STOCK

recently prepared by

THE OVER-THE-COUNTER

■

'

SPECIAL SITUATIONS SERVICE

beyond page 2 of
release, and
beyond paragraph 2.
press

did

was

This analysis shows why this
stock offers

portunity

impression

was

not

a

up

REA

an

for

excellent

co.pital

op¬

gains.

con¬

Secretary

want

lot

A

of

S^Pl

about

Carl Marks & Co. Inc.

some press

FOREIGN

trying to conceal the

SECURITIES

50 BROAD STREET

TEL:

Assn.

Plump for Public Power
Example No. 2 of the timidity

of the Eisenhower Admiaistra-

SPECIALISTS

NEW YORK 4, N. Y.

•

HANOVER 2-0050

TELETYPE NY 1-971

copy

will be sent

on

request•

LEANER & CO.

•!

Tnve-f-TKiDt Securities

13 Post Office Square, Boston

9, Mass.

.

^
.

P

'*?■'*'

V

Telephone

....

A

r~
....

....

i

;
..

|
i

%.
-

L
-.■■■■

'

M
.jm

•

away

with knowledge of its members

a

certainty

knew

even

f,

.»

COLUMBUS,

De¬

sponsor

the

Company;

(Special to The Financial Chronicle)

the REA movement.

comment

being made the tail

story.
Let

is now with Harris, Up¬
Co., Johnstop Building.

With the Ohio

the

nasty cries coming
"give away," or (2)
man

DURHAM, N. C.—Theodore W.
Atwood
ham &

na¬

veyed either that (1)

McKay

Harris, Upham

go

official

often

Cen¬

Omaha

Company,

Ad¬

However, when officials were

•

Wcs

Electrification

bureaucracy is not happy
the
possible
equivocal
position in which Clyde Ellis

condition to get¬

as a

more

were

on

become

must

line

associations

about

the

Gray

(Special to The Financial Chronicle)

Howell

pretty good cinch that

a

Rural

ciation

re¬

through

D.

with

bers."

working

a

Republic

Now With

straight

a

about

electrification

rural

"936

is

REA

associations with 3,600,000 mem¬

that

discover

real meat

associated

become

tral

though the national

bucking Dwight D. Eisenhower
on the sundry issues of the day.
It's also a good guess that the

to

point is that in every
Clyde purported to repre¬

"member"

of

on

National Bank Building.

partment of Agriculture is not

to
bill

of

about mine

5

the

daily press, seldom have the en¬

on

system, but the

have

answer

just

and

state-owned elec¬

tric generation

led off with

to

that

perhaps subsidiary to

was

building

sent

production

survey

some

Guilders

charged

peace

case

In¬

premise of
Washington that the Newspaper

the

should give the Republicans the
break they have long wanted.

bringing

does

is

It

power

To many working around the
Capitol, it has seemed that this

always

release
the

oil.

,Sc- .ate minority.

They

the

page

lease

purpose,

public

until

there

a

business

as

ministration

Another called upon

ting electricity.

process, therefore, of
adapting "give away" to atomic
energy,
the Democrats, either
excess

by

safety inspection.

the

an

press

support

to

movement,

the

shelve the atomic
because of its
naughty private power features.
energy

minor metals and conducting an
educational

Iron

the

Wednesday

has

membership

public power outfit.

bill, brother

the

of

giving

private

AEC, and over

for the

Congress

innocuous stuff about get¬

some

for

contract

the

the TVA.

terior Department

used

looks

REA

The

issued

electric generation.

In

the

own.

However,

of

be developed by the people for
profit, even a profit as regu¬
and

de¬

to

Oscar.

the government and should not

lated

trying

United

the

monopoly

a

of

synthetics industry on

a

the furore

the midst of all

over

This, it is scarcely doubted, is
something of a clear revolution
in policy since the days of Hon.

a

resources

business

velop

"give-away," have
clearly recorded themselves as
■of the philosophy that the nat¬
comes

Clyde caused to be issued sev¬
eral pronunciamentos 100% in
favor of public power.
One of
these
in particular called for

the

in

being

it

the atomic energy

In

research

basic

their

However, in the public prints,

,

power

ing

$3.50
Statistics

Avoids Issue

into prob¬
lems of recovery and refining
of oil, and get the heck out of

business

any

is

a

oats.

group,

Facts:

(Special to The Financial Chronicle)

dozen of whom are

a

that

aware

probably

members,"

half

a

perpetually
hungry mule has for a bag of
that

power

traditional business of sponsor¬

by the
Atomic Energy Commission via
needed

not

the

endorsed
by Mr. McKay, was that the
bureau should get back into the

additional

furnish

electricity

associations for

member

great crusade for public power.

lic

but the bureau has

this

of

tions

referred

not

were

"3,600,000

has

statements

consistent and avid love of pub¬

One of the basic recommenda¬

private group the

the

(cloth)

approval and certainly not to the

Executive Man¬
is
THE
National

who
Electrification,

ager,

Rural

policy

to

Ellis,

Clyde

success.

some

of

Y.
Car

With Central Republic Co-

Clyde had all

particular

Inc.,.

Street, New York

OMAHA, Neb.—Dean

These

sociation.

gress to "pilot plant" the new
synthetic
industry, which
of
course
would be beholden to

Uncle Sam,

local

Mc-

—

(paper)

the oats.

thereby

Rural Electrification as¬
sociations
belong to the Na¬
tional Rural Electrification As¬

Mines

of

Bureau

48 oat-lovers, and

REA)

to

from

one

There were

fication Association.

what

pay

their

in

members,

state, of the national board
the National Rural Electri¬

of

"coopera¬

become

the

were

$5 meter deposit

a

"shareholders"

indifferent success
wheedling funds out of Con¬

in

upon atomic energy their
newly-developed battle-cry of
1853 against the "give-away."

stow

the

far

to

and

apiece

the

members

(the

amounts

has had only

straight
bestowing

taking the

Socialism

tive"

of

90%

Some

drive

about

was

and

Stryker

Fortune

of

Building and Car Repair¬
ing 1953 — American
Railway
Car
Institute,
19
East
47th.
Stjreet, New York 17, N. Y.

each

trification Administration.

out of oil.

So

worked

Democrats
selves

over

now

—

power.

nation

the

the Rural Elec¬

relates to

tion

government - controlled
syn¬
thetic oil industry on the theory
that

Management.

Car

attractive we've made it!"

more

N.

Railroad

how

sees

petro¬

Under the lu¬
Secretary
of

ceaseless

a

W.,.
(paper)

C.

D.

Modern

Editors

36,

in

(it probably started under the
late Mr. Ickes) to build a huge

firm power, then
came the cry several years ago
which ushered in "standby"
steam

in

engaged

pro¬

able supply of

40%

Interior

6,

330 West 42nd

recom¬

to

Progress,.

Graw- Hill Book Company,

Oscar Chapman,
Department was

Interior,

the

adequate and depend¬

an

Truman

the

product of soil and water con¬
duce

synthetics.

to

the

'

When, as the utility industry
predicted from the beginning
would happen, it became obvi¬
ous that hydro power as a by¬

Pro¬

Our Na¬

End

Methods—Perring

'*Bet

major

the

of

One

Democrats said.

Full

and

to

Economic

on

Washington

McKay that
"implemented"

effect,

How

25c.

sound to

so

(meaning put into
English) at once.

the

so,

or

—

mittee

Secretary

he ordered them

and

streams,

navigable

Interior

regulating
bring¬
of plenty to the

floods,

controlling

looked

mendations

—

1001 Connecticut Avenue, N.

of Mines

energy;

center

tional Economic Deficits—Com¬

expert survey of the Bureau
activities. The recom¬

an

and distributing
this was sub¬
ordinate to conserving soil,
of

Employment

duction:

reorgani¬
zation of the Bureau of Mines.
An Assistant Secretary of the
Interior ordered last November

TVA

concealed.

masked

Full

1 related to the

No.

business

a

Chamber of Com¬
merce,
15 North Sixth Street,
Richmond, Va.

matic.

has

as

Richmond

the issue
on
public ownership, not as
spectacular as the defense
against the opposition on atomic
energy, but perhaps as sympto¬

ship.

-ownership

Va.

ti¬

Administration

about joining

midity

Booklet

—

brief pertinent in¬
formation concerning Richmond,
containing

other evidences of

are

same

Handbook

Executive's

Elsewhere

Defensive

pressed

with

.

not coincide with
own views.)
f

the "Chronicle's"

wThe Administration, however,
does not

session

the

of

features

the

/

C. —One

WASHINGTON, D.
-of

Capital

and may or may

A y* fj
jLjL § l/Vi/

Behind-the-Scene Interpretations

lied the "behind the scene" inter¬
pretation from the nation's Capital

HUfabard 2-1990

Teletype
BS 69