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Z
ESTABLISHED 1S39
UNIVERSITY
OF MICHIGAN
AUG 8
mires
Tk e
1952
mmtuw
Financial
Reg. U. S. Pat. Office
Volume 176
Number 5140
New
York, N. Y., Thursday, August 7, 1952
Price 40 Cents
a
Copy
EDITORIAL
The
As
We See It
"The way to get a
living is to work for it,"
a
observation would have seemed
quite banal.
a
good many it will probably still sound
one
so.
To
Yet
lars
a
number of lands where American dol¬
being poured
are
erosity,
one must
out with
squeezes.
gen¬
wonder if this trite observation
should not be blazoned
see.
unparalleled
across
the
sky for all to
a
political scene. Note
the concern with which the
major parties view
the possibility of
losing the support of the farm¬
ers, and their willingness—particularly, perhaps,
the Democratic party—to
pay out huge sums to
help the farmer make a living. The agriculturist
has long been—we had almost said
always been—•
a
darling of the politicians. Probably no other
element in the population has for so
long been
so
heavily subsidized. Free seed, free advice, free
free that
are
a
one
amount
The
the
than otherwise would have had to be
my
no
small part
a
reasons
on
a
level
some
the
market
has
turned
sion—inflation—to
of
higher prices.
and
trial
the
*4
page Z(J
SECURITIES
talk
Bernhard
of
who
is
Tv.,..., /
1946
traded
are,
IN
REGISTRATION
—
well-advertised
mathemathical
At
in
gear
a
re-confirmation
upward trend.
also
President
on
of
page
Value
High
as
as
They
Look
the New York Stock Exchange and elsewhere
on
for the most part, better equities than in past years.
Because of reinvested earnings, the growth of the econ¬
omy
and the much higher standard of living, they rep¬
more
assets,
30
earning
more
power
Continued
and
on
more
page
19
Line
of Security Analysts, Schwartz's
*A
talk
by Mr. Hooper before New York Society of Security
Analysts, Schwartz Restaurant, New York City, Aug. 5, 1952.
Restaurant, New York City, Aug. 5, 1952.
NOW
now
Stocks, however, are not as high
L. o. Hooper
as
they look, and certainly not as
high as ii> 1930, or 1929, or even 1946.
The equities
June, 1946—were far greater than those
Mr.
■
t
are
Industrials, placing
with the Rails
establishing
Not
Arnold Bernhard
were high.
But the earnings and divi¬
prospect during the next 18 months—looking
by
cur¬
"right" stocks,
into
delu¬
a
its hope
And delusions don't
Jfun<L before the New York Society
the
index
resent
on
in
that
of the broad
Continued
price subsidies afforded the farmer during World
get
Share
and
earnings ratios
mnnn
decide what stocks
recorded
;
The present market is almost the exact
opposite of the
market of 1946. Then stock yields were low and
price
forward from
to
time, the Dow-Jones Rails
are
at a higher price than at
any
time since March, 1931.
Recently, according to orthodox
Dow Theory, a new high has been
'
in
be
mar¬
same
support
Converse
Emphasizing
spree.
highest price since April of 1930.
dividends,
to
they
Average is watched by
more
people than any other meas¬
urement of stock prices.
This aver¬
age now is around 280,
or at the
first,
are
as
cheaper
are
shortcomings, the Dow-Jones Indus¬
last.
dends
should
Regardless of its
60 points,
of
result of the loans and the
on
Dow-Jones Indus¬
drop of
ings and dividends, as will be ex¬
plained later.- Third, in the face of
paid.
Continued
a
high
likely to do in the future,
it may be helpful to study the present condition of the
market, and to do so in some detail.
Second, the market
earnings
speculative
not cash.
earnings
dividends is not holding and in
judgment will not hold in the
declining
objective
To
itself gives evidence of lack of con¬
fidence in the current rate of earn¬
contrary.
form of
emotional
rent
percentage
for this view
high
next 18 months.
The farm failures of the 1920's were, of course,
in
little
to
current
and
other, but in terms of higher prices
or
lived
basis.
abnormally cheap credit was provided. Heaven
knows what this type of subsidy has by now cost
the rest of us; cost the rest of us not
only in
losses on loans which had to be made
good by
some
In terms of the
as
ket's selectivity, Mr. Hooper concludes investor's
It is my view that the stock market will readjust to
level about 20% below the current price
level'during
months.
not
are
criteria of earnings and yield
on
than in 1929, 1930 or 1946. Predicts November election
results will cause no more effect than possible short¬
be a
minor upsurge of prices before the
drop
occurs
but
I
think
it
will
story which goes back
the memory of man runneth not to the
In President Wilson's
day, aid in the
look, and
look
market drop of about 20%.
a
trial Average, this would mean
from 280 to 220.
There may
Turn first to the domestic
and
Hence forecasts
the next 12
:
this
Market analyst maintains stocks
may
high in relation to the earnings and dividends that will
be reported next year. Maintains investors have turned
to the fleeting "delusion" of inflation to
support their
hope of higher prices. Foresees declining investment in
new capital
equipment and increasingly damaging tax
maneuvering of various polit¬
ically organized groups in this and other coun¬
tries, and if one gives heed to what is said and
Co.
Members, New York Stock Exchange
Editor, Value Line Investment Survey
Market economist asserts current stock prices
follows the
done in
By LUCIEN O, HOOPER*
Market Analyst, W. E. Hutton &
By ARNOLD BERNHARDT
panion
if
What'sAhead foitheMaiket?
In the Stock Maiket!
subway rider was heard to remark to his com¬
a few days ago. Some years
ago such an
sage
Coming Decline
Underwriters, dealers and investors in
cor-
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 25.
DEALERS
State and
in
U. S.
Government,
Stale and
Municipal
Securities
telephone:
STATE
Pacific Coast &
AND
Oil
Hawaiian Securities
BONDS
HAnover 2-3700
Direct Private
and
Direct Private
Dean Witter
14 Wall
Co.
THE NATIONAL CITY BANK
j. a. hogle & co.
OF NEW YORK
Street, New York, N. Y.
Members of
Members of all Principal Exchanges
Principal Commodity
and Security Exchanges
BOND DEPARTMENT
30 BROAD ST., N. Y.
San Francisco
/
Los Angeles •
•
Boston
•
Bond
ol INDIA. LIMITED
Bankers
BROKERAGE SERVICE
to
Kenya
Head
the
Colony
Office:
and
26,
London,
for Banks, Brokers and Dealer•»
Government
E.
in
Dept. Teletype: NY 1-708
Peace River
Natural Gas Co., Ltd.
Uganda
Bishopsgate,
C. 2
Branches
in India,
Pakistan, Ceylon,
Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-
Ventures, Ltd.
Bought
—
Sold
—
New York
Salt Lake City
Los
THE
1915
50 Broadway
Chicago
Honolulu
NATIONAL BANK
STOCK and BOND
Wires
Bond Department
&
ESTABLISHED
COMPANY
Bonds
Mining
Securities
Wires
Chemical
BANK & TRUST
Municipal
UTAH
MUNICIPAL
Denver
NATIONAL
land
Hardy & Co.
Spokane
Angeles
CANADIAN
El Paso Electric
Power
BONDS & STOCKS
Members
New
York
Stock
Exchange
Members New York Curb Exchange
30 Broad St.
Tel.
DIgby 4-7800
New York 4
Tele. NY 1-733
Paid-up
Reserve
Capital
Fund
£4,562,500
£2,281,250
£3,675,000
The Bank conducts every description of
Quoted
Analysis
Goodbody
&
Co.
ESTABLISHED 1891
also
undertaken
Doxraox Securities
Geporatio?!
MEMBERS NEW YORK STOCK EXCH.
40 Exchange Place, New
banking and exchange business.
Trusteeships and Executorships
115 BROADWAY
NEW YORK
Company
COMMON
upon
request
DEPARTMENT
Protectorate.
Authorised Capital
BANK
OF THE CITY OF NEW YORK
Burma,
CANADIAN
CHASE
York b, N. Y,
105 W. ADAMS ST.
CHICAGO
IRAHAUPT &co.
Members New York Stock Exchange
and other Principal Exchcmges
111
Broadway, N. y. 6
WOrth 4-6000
Teletype NY 1-702-3
WHitehall 4-8161
Boston
Teletype NY 1-2703
Telephone:
Enterprise
1820
The Commercial and
(474)
2
financial Chronicle
.
.
.
Thursday, August 7, 1952
-*L
WE POSITION and
IN
TRADE
Southern
General
participate and give their
Telephone
Eastern
they to be regarded,
are
Missouri
Arkansas
Power
Electric System
Southern Pacific
Recently
Public
Utility 5^/52
rails
to
new
Stockholders
shares.
315
approved
York
W.I.
about 60%
dieselized
was
total of some $180 million
a
estimated to have been spent for
Members New York Stock Exchange
Further
purpose.
rate
a
In
progress
much
gratifying
effects
on
oper¬
1920
Exchange
Pacific
at
York
New
Exchange
Curb
YORK 5
NEW
BROADWAY,
120
Exchange
York Stock
New
firmative
reasons
making
''
"
■
■
■■'
■
Trading Market»
occurred.
Accordingly,
relevant.
are
a
strength
in
its
in-
own
which justifies purchase in
of
canons
231
CHICAGO 4
it is
not
inaccurate
to
FRanklin 2-1150
CG 2197—CG1614
Direct
Wire
Singer, Beane
to
Inc.
Mackie,
Established
&
York
New
1856
*260
from
debt
million in
declined
in the
from
York
New
Commodity
Chicago
New
•
of
Cotton
other
Fixed charges
Atchison
91
of
distribu¬
population fac-
mainline
and
Its
12,423
extend
track
as
far north
77
118
Per Share
4.00
Denver
Rio
Grande
Union Pacific
NEW YORK 4, N. Y.
s
PITTSBURGH
GENEVA, SWITZERLAND
ton miles increased
7.1%
7.06%
as
.1946
1948—...
1950
1951
—
—
1952
Times
15.00
6.1
12.50
5.4
4.00
5.19
21.00
3.7
6.00
5.08
15.50
7.6
Available for
Fixed
Charge
Coverage
1950. Average revenue
ton-mile increased 1.3%
„
—
—
Foote Mineral
Georgia & Florida 6s, 1946 "A"
Missouri & Pacific R. W.
Common
Old
Wisconsin Central
Ref. 4s
&
5s
Gbbsten & Fbenkel
Members N.
Security Dealers Assn.
Y.
160 Broadway
Haw York 1
Tel. DIgby 9-1550
Tel. NY 1-1932
Pertinent income
averaged $12.25.
account items for
a
series of years
LAMBORN & CO., Inc.
WALL
99
shown in Table II.
are
STREET
NEW YORK
5, N. X.
For the first six months of 1952,
million, an
1951, with
earnings per share estimated at
$6.80 compared with $4.86 in 1951.
revenues
increase
$341
were
of
7.5%
over
On May 22 the quarterly dividend
raised to $1.50 from $1.25 paid
was
previously.
SUGAR
Raw
—
Refined
—
Liquid
Exports—Imports—Futures
DIgby 4-2727
Company
Sioux Oil Co.
COMMON STOCK
Inquiries Invited
JAMES M. TOOUN & CO.
67
WALL STREET
NEW YORK
HAnover 2-9335
5, N. Y.
Teletype NY 1-2630
physical property in first-class
For example, earnings
Cotton Belt
common
stock
av¬
eraged $45.17 per share during the
past five years.
Earnings
of Pacific
Fruit
Ex¬
have averaged about $5 mil¬
lion in the last three years, one-
press
Pacific. Dividends have been
Income
——Per Share
(Millions):{
$109.0
3.80
$80.3
628.2
61.4
2,49
36,7
25.3
* *-
Earned
Paid
Over-the-Counter
Quotation Services
for 39 Years
$22.65
$1.00
11.09
2.50
6.81
4.00
mea¬
ger or nonexistent, due to the fact
that Pacific Fruit Express has util¬
ized its financial resources to im¬
prove
and extend its fleet of
587.5
59.1
2.91
38.8
11.60
598.3
71.6
3.44
50.8
13.38
647.7
66.4
3.25
46.0
11.62
5.50
Continued
on
page
National Qnotation Bureau
Incorporated
re¬
frigerator cars. This task has been
4.50
almost completed, with the possi5.50
,
Producing, Refining
condition.
on
Net
2.09
A
and Distributing
half of which accrued to Southern
$472.7
48.4
.
over
net
the
Earnings
5.88
Fixed Charges
484.8
Teletype BS 259
:
Telephone WOrth 4-5000
Southwestern Railroad and* in Pa-
5.49
Revenue
—
Y.
Southern Pacific holds in St. Louis
6.1
Operating
1944
N.
1.374 cents.
the
TABLE II
1942
.
in
Port-
on
$14.00
$6.00
(Millions)
148 State St., Boston 9, Mass.
Tel. CA 7-0425
Many persons are unaware of
the important investment which
Trade
Exchange
request
industries
other
Southwest to
Yield
5.00
68
Exchanges
DETROIT
and
Pacific.
Annual
85
(Millions)
CHICAGO
Pa-
centers of population in the
Dividend
Chicago Rock Island
Inc.
■N, Y. Cotton Exchange Bldg.
new
cific Fruit Express. Each of these
companies is a substantial business
which is third highest in the in its own right, St. Louis SouthUnited States. Approximately 65% western, or Cotton Belt as it is
of total freight traffic handled is known, having revenues of some
originated on its own lines, and $70 million in 1951, and Pacific
over 66% terminates on the line, Fruit Express handling a vo^me
These are unusually high ratios.4 of business of some $64 million in
Major freight sources include Ore- the same year. Southern Pacific
gon (lumber); California (perish- owns more than 88%.of the com¬
Price
Exchange
Board
$705
1939 to $608 million at
same
on
land. Ore. Thus its average haul
for freight was 441 miles in 1951,
Current
Exchange
Exchange,
Orleans
And
Curb
550
period declined from
approximately $30 million to $20 ables, oil, miscellaneous); Arizona- bined preferred
and
common
million.
Southern Pacific's capi- New Mexico (perishables, miner- stocks of St. Louis Southwestern,
and it controls Pacific Fruit Ex¬
talization, after giving effect to als); Nevada
(minerals); Texas
bond conversions, consists of $608 (cotton, sugar, salt, lumber); Lou- press on a basis of equality with
million of system debt and 4,405,- isiana (agricultural products).
Union Pacific. During recent years
707 capital shares outstanding. A
Southern Pacific territory has St. Louis Southwestern has been
phenomenally profitable, with a
TABLE I
major portion of earnings being
Indicated
Estimated
utilized to reduce debt and to place
Price
Exchange
Cotton
York
New
and
Pacific Coast,
nominal
a
classification
Midwest
state
Southern Pacific
Stock
Southern
expended considerable
ingenuity in solv¬
Southern
miles
million, including $141 milin cash, on May 31, 1952.
Funded
Members
York
has
of
example, working capi-
H. Hentz & Co.
New
to
tors also add to the attractiveness
immediate probthe railroad has to
which
For
Circular
same
at terminals.
Territorial
are no
the close of June.
Telephone
Teletype
the
great centers of population
lion
SOUTH LASALLE STREET
1951
per
tion yards in the United States.
figure of $12.5 million in 1939 to
Securities
de-
ing this problem. At principal ter¬
minals it now has some of the
On the basis of
tal has increased from
Investment
almost
that
face.
Republic Investment Company, Inc.
enue
period
was
finest
lems
Request
this
and yield this stock is
relatively attractive. This is dem¬
onstrated by Table I, which shows
the performance of Southern Pacific as compared with other roads
in its general territory.
Physical and financial improve¬
ment
has occurred to a degree
that there
Chemical Corp.
has
reverse
about
At
cific
fi-
investment
earnings
Nuclear Instrument &
HOFFMAN RADIO
served by spur tracks were established by system lines in 1951, an
average of 1.5 for each calendar
money and more
going criteria.
LD 33
the
costs
Southern Pacific meets the fore¬
llllllllllllllllllllllllllllllllilllllllllll
As stated in
expensive processes. In fact the figures. Fixed charges were fairly
showing of one major east- well covered, averaging 3.02 times
ern
road is believed
to be ex- for the past ten years. For the
plained principally by excessive same period earnings per share
accordance with the ordinarily ac-
cepted
Lynchburg, Va.
whole.
poor
nance.
Scott, Horner &
Mason, Inc.
rapidly
Assembly of freight for long
Operating revenues of approxihaul shipping, as well as distribu- mately $648 million during 1951
tion at important terminals, are were about 40% above the 1942
ments, and to a record of achieve-
Hardware Co.
on
was
branch offices
activity
also
ability to tion, reached an average of 48,384.
specific investment handle traffic, with no great in- In 1944, the peak traffic year, the
meet the tests of crease in fixed charges or taxes, average was 3-3,301."
ized
being favorably priced in relation
to other stocks, of representing
ment
Circular
Fe
veloped, and Southern Pacific by
dustry, of more than usual ability
to
withstand
adverse
develop-
Dan River Mills
Tele. LY 83
Santa
our
traffic.
In addition to expansion of traf¬
utilizing this device increased its
ability to handle traffic by more fic, Southern Pacific has been
bull market has run.
than 70%, and at limited cost. In relatively successful in control¬
Investment conclusions must be addition,
Once
Santa Fe is weighted ling operating efficiency.
related
to
the
environment
in with the expense of upkeep for more to quote from the annual
which we live, to the major trends two tracks and taxes on its greatly report for 1951: "Gross ton miles
in industry, to governmental poli- increased
capital
investment, per freight train hour, the key
cies and to many other factors whereas Southern Pacific has real- index of efficiency of train opera-
unusual
American Furniture Co.
Moore Handley
when
centralized traffic control
new
vehicle should
Mlllllllllllllllllllllllllllllllllllllllllllf
be adduced
can
investment commitments, one would be well advised to give close attention to the
time and to the degree which this
for
selection of
"
time
Actually,
tage.
which
Tel. REctor 2-7815
Morris Peckman
Cumberland
W. W.
<.
the
to
40
It was sup¬
Total tonnage of revenue
posed that Santa Fe would have day."
an important
competitive advan¬ freight increased 8.3%, and rev¬
Specialists in
Members
Mobile, Ala.
Direct wires
expanded
than for the
a
than
More
engaged in this task.
N. Y.
NY 1-1557
Pacific is keeping
with increases in population.
pace
tion to double-track its main lines
ffopONNELL&fo
HAnover 2-0700
New Orleans, La. - Birmingham, Ala.
Southern
by
some
Southern
in financial posi
not
was
There is
fact that
in the
irony
Teletype NY 1-583
Since 1917
as
Exchange
help but have
on
economic
has
area
more
country
ratios.
classification yards.
5
Rights & Scrip
this
other
York Curb
25 Broad St., New York 4,
Otner
imnortant nhvsjVal
im¬ the annual report for 1951: "In¬
provements include installation of dustrial expansion in the western
centralized traffic control and and southwestern regions served
Corporation
BArclay 7-5660
This cannot
addition,
the
for
favorable effect
a
in
ating
11%
of
states.
with
New York Hanseatic
120 Broadway, New York
Steiner,Rouse&Co!
Members New
will be made in subsequent years,
Associate Member N. Y. Curb
Stanley Heller & Co., New
City.'(Page 14)
-
ner,
two-for-one
a
Pacific
Unless af-
early months of 1931.
that
Established
Bought—Sold—Quoted
stock gained in population three times
split.
as rapidly as the remainder cf the
One
of the major transforma- United States.
The eight states
tions of this road has been its ex- served by Southern Pacific showed
and industrials tensive program of dieselization. over the past decade a population
increase of 34%, compared with
highs since the At the close of 1951, Southern
5
»
poration—Stanley Heller, part¬
Aug.
on
with
Central Public Utility, Com.
Peckman, security ana¬
lyst, Ladenburg, Thalmann &
Co., New York City. (Page 2 V
of
w
Louisiana Securities
Morris
nor
capital stock will consist of 4,527,-
Security Analyst
Ladenburg, Thalmann & Co.,
New York City
advanced
Central
be,
to
$6,080,400 3% convertible
debentures remain to be converted,
and
when these are
exchanged
total
MORRIS PECKMAN
Puget; Sound Power & Light
New England
particular security.
a
intended
not
are
L
Southern Pacific Railway—Dr. W.
W.
Cumberland, partner, and
offer to sell the securities discussed.)
as an
W. CUMBERLAND
Partner and
Utilities
Southern
Alabama &
Selections
Consolidated Vultee Aircraft Cor¬
DR. W.
Conv.
Utilities,
for favoring
reasons
(The articles contained in this forum
Kansas Gas & Electric
Iowa
Participants and
Their
which, each week, a different group of experts
in the investment and advisory field from all sections of the country
Conv. Pfd.
4%%
I Like Best
Forum
A continuous forum in
Company
i
i
i
The Security
This Week's
14
Established 1912
46 Front Street
CHICAGO
New York 4,
N.Y.
SAN FRANCISCO
*
Volume 176
Number 5140
.
.
The Commercial and Financial Chronicle
.
(475)
The Motion Picture
Industry
INDEX
And Its Economic Future j
Articles and News
President, Motion Picture Association
of
America
•
—Eric
Stock
.
Today
the
I
want
the
tion
to
talk
to
you
present—and
future—of the mo-
picture. This is
I
of
going to be
Better
I
yet
hope
call
it
—
I
the
own
at
I didn't
here
few
be
a
Eric
A.
Johnston
spread
on
-mostly
now
I
amateur variety.
They've got Hoifestooned in black,
lywood
They're braiding what's left
over
think
you'd
the
and
the
about
motion
Ghouls
least
Grandma's
tast
bad
are
the
off
can
give
The
and
doesn't
the
when
motion
Kicking
picture
anybody
tell
is
very
in
market
the
it's
and
motion
not
probate
anything
you
The
headstone—
a
candidate
court.
dif-
picture is not
for
a
the
for
us
picture industry.
don't
that. We know
it.
:'
'
■
r>
+K-
*
,But
«««.
this
business
shivermg *
a
w
of
tell'
to
V-
*
-
w+'
lsnt.
ours
coldjrceat of feat,
And it Tsnl panicked,the por
of
,elements of.youthvth
Its
age.
ability
to
hazards of
economic
demonstrating itself
■I4 The
at
ures
us.
with
some
fig-
Now 111 agree that you
demonstrate
can
society is
figures.
almost
anything
there
But
address
by
Mr.
Moving
and
perhaps
something
10
that
11
N. Y.
c
two
are
Johnston
at
the
Picture "Machine
12
13
14
As We
Incorporated
See It
Broadway, New York
.
We have
theatre..
lost
In terms
the decline
15%
customers
•
.
...
.
'
number
total
of
32
Associated
.
*
12
Einzig—"Speculators
in
v
...
Mutual
Funds
Sterling"
Observations—A Wilfred
Bargeron_
Our
s?ld eyeiy week-right now-runs'
:
v*
,,
———,
6
* ">
Transcontinental Oil
"v• y:
5
HA 2-0270
.
on
Governjnients-^.-.
ajj
t^e
otj,er
40
Exchange PL, N. Y. 5
Private Wire to
when
wrong
Amer*icans
more
a
.together.
wide margin.
than 50 million*
think
to
seem
27
in
;
Sol ask you_can things be all'.
Public
Utility Securities--'-—
Railroad
TRADING MARKETS
30
Securities
Southern Advance Bag & Paper
15
—
—_
Nobody
Securities
persuade me that
any business with that many loyal
customers a week is ready for the
can
auctjon block!
right—and
so
some
motion
picture theatres around the
ers
P Cl0SinSkeep
SCOre
Salesman's Corner
Grinnell
13
Securities Now in Registration.—
Corp.
The
•
Read Standard Corp.
25
Penn Fruit
The Security I Like Best
2
State of Trade and Industry
1
5
COUn-
TJ?e CreP« ha,n,g-'
Tomorrow's Markets (Walter Whyte
Says)„
BOENNING & CO.
16
,
With macabre-llke
on page
24;
Washington and You.
■
■
■
••
Weekly
l
r
Drapers'
Gardens,
25
rv
B.
,
Park
DANA
and
CHRONICLE
Copyright
rv,
„
,
'
Place, New York 7,
.t
.
York,
,,
N. Y.
London,
E.
Schenectady
*
Worcester
CROWELL, WEEDON & CO,
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President
„
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under
the
in
Act
United
Territories
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and
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city news,
Offices:
Chicago 3, 111.
bank
•
Eng-
Pocono Hotels Units
second-class matter
Subscriptions
Every Thursday (general news and advertising issue) and every Monday (comRlete statistical issue — market quotation
news,
C.,
A. M. Greenfield 5s 1954
lSSZ^by William B. Dana
as
Y.,
Possessions,
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Other
corporation
"
of
Leeds & Lippincott Units
Febru-
March
American
8,
Annuity 4l/2's & 6's
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States
and
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clearings,
etc.).
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i
year;
of
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Note—On
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records,
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-
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'
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HERBERT D. SEIBERT, Editor & Publisher
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v
land, c/o Edwards & Smith.
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FINANCIAL
Philadelphia 3, Pa.
32
■■■'
.
The
TELETYPE N. Y. 1-5
•
Glens Falls
1
we're
'
right?
LOS ANGELES, CALIFORNIA
1-1826
17
—
Prospective Security Offerings--
spectator'
Dominion
/*
VY
-
■
.
ST., NEW YORK 4, N. Y.
•
-
Teletype NY 1*1825 & NY
Reporter's Report__:____^_^—29
Our Reporter
•
Singer, Bean
& MACKIE, Inc.
L 15
-
Reeves Soundcraft
18
———
<■r.
"•
f
23
—,
„_
May—L—1
:.
close to 55 million. That's a third of
u the peopie in the Unitedr
States. iAnd ifs many times more
6
News About Banks and Bankers—-——-.
.
8,
———————:L.—
admissions
Development
Research Corp.
Cinerama, Inc.
2
-
Indications of Current Business
Activity
ad-
and
32
From Washington Ahead of the
News—Carlisle
..........
Chicago
Angeles
10
Securities
receipts,
including
!;
Bookshelf
Dealer-Broker Investment Recommendations-
the,
$250 million below the 1946 record
the
Stocks_
Coming Events in Investment Field
h
on
$1,600,000,000,
Insurance
Man's
Canadian
the whole averages"
20%—or approximately-
to
and
Business
are-
at
•
;
of boxoffice
Bank
WILLIAM
BROAD
Los
Cover
*
-
-
New York Stock Exchange
TELEPHONE HAnover 2-4300
6
Teletype NY 1-3370
Direct Wires
(Editorial)
Reg. U. S. Patent Office
Members
•
61
We
we
Spencer Trask & Co.
...
'
Regular Features
Reentered
...
J. F. Reilly & Co.
BO 9-5133
WILLIAM
•
'
I
PREFERRED STOCKS
specialized in
Boston
*
12
Industry to Spend $5.6 Billion in Next Five Years
Published Twice
For many years we
*
Universal Major
Appliances
Gold Markets Diminishing.
•
Albany
.
City's Increased Financial
Tax
more
whatsoever.
Continued
25
:
Transcontinental Oil
on.
glimmer of where
a
MvUUiu,
have
-
'1
•
^?Lai A"^«TT^?ric°Il StLiTml ^
ployees
5
Eisenhower Lists Proposals and Aspirations
in an evolutionary era—m
full swirl of it right this
minute, I'd say.
'
So let's see where we stand—to
All
*An
Reeves Soundcraft
4
anew.
throw
mourners
the
meet
our
Gas
the
.
supple and adaptive. It embodies
more
_Y__„.
Market
on
Governor Dewey on
Premium
who
chew
amusements
pull
picture industry is. We're still tops
by
motion
Peaks
Corporate Bond Financing
Business
are
f
tents of tomorrow.
The
Industries
*
Urges Study of Means to Increase Sugar Use
..;
isn't.
It
outsiders
need
in
Warns
missi°n taxes.
T
s n°thing to cheer; about,
and I'm not cheering. But I: any¬
J10* panicked either.
'
*
get panicked because.;
that, it doesn't mean
I'm here to play Pollyanna either.
I'm not here to say that everything isi * fine and dandy in the
We
New Production
FHLB Notes
:
industry is going through
period of transition. There's no
a
of
.
J-* When I say
motion
*
Great American
;
attention
going.
.
rpuch alive and kicking. Don't let
ferent.
*
11
—„
Our
get
Alive
Trends
•
A Transition Period
doubt about
body is alive and kicking.
'
to
Babson
Philadelphia and
theatre
robber
shovel
the
them
W.
-
15
or
—
for
But
supper.
Cinerama Inc.
10
—„—
mo¬
enough, but at
'grave
for
Foresees
-
television.
substantial
limbo.
to
Dept.
7
curious and
alarmists
and
attic—
picture
shuffle
to
reach
in
Securities
STREET, NEW YORK
8
Shull
*
figures.
use
a
compete
the
tion picture was about to join the
stereoscope
Play
the
to
supply
steady rations of gloom for break-
To hear these death-watch out-
talk,
to
magazine
a
on
can't
with
into wreaths for the theatres.
siders
of
minutes
hangers right
crepe
satisfaction—and
This won't get me a three-column
head on page one—or the center,
over¬
stocked
WALL
Nominating Presidential Candidates
G.
^National Politics—Roger
industry.
hanger.
obsoTetes.
Telephone: WHitehall 4-6551
2
Otherwise—John Farrell.
it 'to
proving
I have tried what I believe to
be:
the honest way to look at
figures
about the motion picture
come
to
crepe
We're
—Frederick
seeking mind. You let the decimal points drop where
they may
—and abide by the result.
-'y
things clear.
to
us!
Obsolete
4
.
Thorneycroft,; M. P
or
A New Plan for
a
the
a
all
is to start out with
outset, I want
to make
at
The honest way
motion
comes
Wall Street
Cobleigh
Enterprise: Free
way.
delusion of o.thers who don't
keep
tabs on him.
picture dollar.
And
honest
trouble
about
Warrants—-Will-o'-the-Wisps of
—Hon. G. E. P.
it
See
3
——
99
humbug way—and the
the
his
can
mon-sense
talk
the
is
no
com-
a
sale.
Causes and Remedies of the Dollar
Shortage
conceived idea of what he wants
to prove. And he has
practically
and cents talk.
Johnston
—Ira U.
The
humbug—the
sleight-ofhand artist—starts out with a pre¬
dollars
a
call
other
pretty much
when
of using figures. One is what
ways
economic
economic
Cover
The Motion Picture Industry and Its Economic
Future
period, and cites growth of "drive-in" theatres and
improvements in moving picture play houses as favorable
developments, despite weakening of movie-going habit through
television, increased marriages, rising costs and higher taxes.
Calls for more
operating economies in moving picture industry.
about
DON'T BE HALF SAFE
—Arnold. Bernhard
transition
*
Cover
The Coming Decline in the Stock Market!
Asserting the motion picture industry is alive and kicking,
Mr. Johnston contends it has
ability and adaptive capacity to
meet economic hazards.
Says industry is now going through
•
Page
What's Ahead for the Market?—Lucien O.
Hooper
By ERIC JOHNSTON*
fluctuations
In
the rate of exchange, remittances for foreign subscriptions and advertisements must
be made in New York fundi.
Members
Teletype
PH
375
Phillips & Co.
Phila.-Balt.
Pennsylvania
Slock
Exchange
BWg., Philadelphia
N. Y.
Phone
COrtlandt 7-6814
3
4
The Commercial and Financial Chronicle
(476)
personnel
key
Slock Wanants-Will-o'-the-Wisps
01 Wall Street
field
the
in
finance briefly
of
most
the
minds
financial
holder at
lind
has, for years, sought tech¬
niques for benefiting by the price
advance, if
of common stocks,
any,
with
(1)
minimum
risk,
0
capital,
insolvent
licately called financial readjust¬
to
what have been de¬
pr
items.
ment
In
a
means
reward
of
Works had
lot of bonds coming
a
time when
at
a
on
cash. So they offered each
40 warrants to buy
ex¬
light
For
$100
reasons
new
Baldwin
have
he'd
take
into be¬
come
ing
number
a
of
of
poration
curities
cated to
one or more
First, and oldest,
the
convertible
long
cor¬
se¬
dedi¬
of these ends.
is,
bond
doubt,
no
popular
as
fifty years ago. Here the
main, or intrinsic security was a
as
,
bond, often
unsecured
an
ture,
convertible
into
stock,
usually
at
ance)
common
of issu¬
price somewhat above
a
existing quotations for said
com¬
Thus, both factions of the
mon.
investment market might find in¬
terest in the item—the investor
1937,
due
if
same
its
on
cruals
1944.
I
So
owe
(A word I define as:
$10; want to try for
in
$7
preferred got $25
debentures, $25 in
5%%
new
preferred, and 2M> shares of
common; Class A stock got
new
new
one
share of
new
warrant
to
and
common
worth
timing
your
is
a
buy lk share of same;
of
1067, convertible at 171/2.
Then,
less
frequently,
bonds convertible
v-rre
f' vr d stock. New Haven Railroad
Income
this
4J/2S
of
illustrate
2022
No
there
into Pre-
sort.
at
$5.25
of
of
of
Outstanding
Atlas
Corp.
Tri-Contlnental
Price
Stock
Warrant
Warrant
1,948,111
$25
27%
6%
Perpetual
1,008,642
$17.76
165/8
4%
Perpetual
6%
1%
1/1/55
.
Corp..
_
dreary history of the obstet¬
however.
Suffice
Stock Warrant Bond
intended,
to
it
they have been born
say
that
"sweeten¬
as
preferred issues,
bone thrown to down-trodden
as a
four
at
Atlas
hundred
Brill
$15
279,988
37,301
(for 1.47 share)
Ward
a
bond
appeared
stock
warrant
Southern
call
SX
a
share.
so
the
bond
The
I
to
believe,
I
mention, of
re¬
buy
to
$125
principle
was
over <
shares
new
the market.
mick, and
tives,
NYSE
down-graded,
on
company
of
at
stockholders
company
capital,
X number of
10%
(Also,
an
some
the
issues
to
subscribing to
rocketed
never
classic example.
looking
provide their
by
the orthodox
course,
short term offers
bankers
issue. Not to
an
due
price but still SX 4^s
a
underwriting
sloughed
common
the warrant
as
as
compensation to
as
for
4V2S
warrant
at,
The
of
and
1929,
In
issued,
a
common
off,
and
Pacific
bearing
serve
the bond with
—
attached.
$65 million
it,
1969,
sophisticated security holders in reorganization,
more
or
as
a
below
so
tax gim¬
incentive to
execu¬
240 companies listed
have
bought
Corp.
Baking Co
Business
war¬
(half the price of
25^,
mates
the
rants at
have
sold
both
and four hun¬
same
these
price,
economy
for
out
$10,000,
since
$12.50
hit
warrants
1946. Because of their fabulous
in
happen
their
little
on
splashy
per¬
in bull
money
warrants
they
Production
40
to buy common
at $10 until April
1, 1956. The warrant sold at $38 in
dips
the
below
According to a study
of
long-range
trends
compiled
by the Business Research Depart¬
ment of the B. F. Goodrich Com¬
Akron, Ohio.
pany,
Because
of
total
27%
For example, Univer¬
sal Pictures has 218,802 warrants
week
reach
if
even
hours.
be dynamite if you services
be riding them the a
to
1960 may
high
work
average
alluring; the
are
by
all-time
an
can
wrong way.
given options of
shares for purchase by
further
Warrants
certain
have
market
qualities of their very
own.
They always seem to sell
at more than they're worth. They
have sort of a built-in over-spin
output
per
of
worker
increase
in
goods
and
hour,
per man
a
to
direct Western Wholesale Distribution of:
worker's
FUND, INC.
NEW ENGLAND FUND
TEXAS FUND, INC.
omists
productivity,
And
say.
the
these
econ¬
develop¬
peaks possible while the average
working week drops below 40
A
shift
perpetual warrant is the
size
to
one
there's enough risk with¬
as
kets, and are seldom worth more
as
San Francisco Stock
Angeles Stock Exchange
•
the
subject
in
Department Office
300
Montgomery Street, San Francisco 20, YUkon 6-1551
August 1, 1952
pop¬
of
our
cording
to
and
the
as
one-half
increase
working
the BFG
times
in
volume, and the experts believe
this
trend
Tire
will
continue.
production is
expected to
jump with the predicted increase
of 14 million auto
registrations in
10-year period.- Although the
motorist will
average
in
more
his
1960,
drive
25%
expected
it's
will
that
least
that
last
tires
at
the
as
motorist
typical
in¬
his
mileage. This year,
example,
B.
F.
Goodrich
brought out a new tubeless tire
creases
for
that
will
15
wear
20%
to
longer
than 1950 tires.
If
the
rubber
company's fore¬
casts
are
tional
product of this country will
total
the
correct,
gross
$364 billion by 1960
kind
same
1950).
dollars
of
Disposable
come—which
(in the
in
had
personal
in¬
amount
left
the
is
we
na¬
after taxes—should increase from
$204 billion to
The total
services
in
27%
produced
is
1960
billion.
$256
volume of
per
estimated
goods and
hour
$1.51, or
man
at
higher than the $1.19 rate
the economists said.
of 1950,
Jos. McManus & Co.
the
force.
Ac¬
study,
Announces
the
Expansion
Graham
low birth rate during the depres¬
sion is responsible for the current
depressions and other events that and San Antonio.
economic
higher living standards would, of
sophisticated,
the
market
stock
warrants
technique
short
the
at
bulls
out
and
of
selling
1,600,000
about
62% more than pre-Korea
days. Tires, tubes and other rub¬
ber products used on motor vehi¬
ride
to
Trading Department, and
Sidney
cles
account
for
our
about
three-
rubber consump¬
Growney have become
associated with the McManus
Mr.
Feibleman
tinental
as
of
sort
a
Department for Stern & Co.
Growney
ates,
was
with
York
if
the
general
Inc.
As
in
this
are
pleased to
cold
fact,
for
Phone:
their
scarcity
talked
.prices,
value.
about
rants?
We
reflect,
element
an
Why
great big company pay
extra dividend
our
new
office in
St.
(9)
PEnnypacker 5-8700
perpetual warrants
Also Private
we've
the opening of
123 So. Broad
field, there just
outstanding; and I rather feel the
ones
announce
PHILADELPHIA, PA.
.
of
matter
a
We
market
can't
an
need
a
new
Manager: STANLEY W. JEFFRIES
of
some
Autumn
in "forever"
Teletype wire from New York office
war¬
entry—
Stanley Pelz & Co., Inc.
52 Broadway, New
York 4, N. Y.
Mr.
Affili¬
cost
low
or¬
was
formerly manager of the Trading
option warrant like Tri-Con-
solace (bought out of profits pre¬
in
tons—
ap¬
Feibleman, Frank Fitzpatrick and
ganization.
at
been
firm's
is
estimated
has
of. the
E. Michael
quarters of
an
Manager
pointed
try among others, the study shows.
Total rubber consumption in 1960
and
time;
like
benefit the rubber indus¬
the
buying
same
often
there is
course,
Dedrick
George
rela¬
to a planet.
a moon
the
For
variations.
They
common.
mathematical
a
aren't enough
Exchange
the age of our
Additional markets and steppedup industrial activity caused by
tionship to common stock, some¬
devotees
Midwest Stock Exchange
in
four
be
great
fourth of the market price
a
continues up.
Los
increasing
Walker, managing
having time run out on you.
partner of Joseph McManus & Co.,
Broadway, New York City,
Moreover, the early-ripening relatively low supply of employ¬ 39
members of the New York Stock
warrant may have to be excer- able people, while World War II's
bumper baby crop brings the per- Exchange, announces the exten¬
cised; while the perpetual variety
school and school-age groups to sion of the firm's correspondent
goes on forever like Tennyson's a new
wire system and the expansion of
high.
its Trading Department.
brook, and in practice it's almost
The rubber company's econo¬
New private wires now connect
never
used for actually buying mists based their
study on longthe firm with correspondents in.
stock. Hence, there's a lively mar¬ term trends in 10-year cycles and
on
the assumption that America Chicago, Dallas, Detroit, Kansas
ket in warrants "unlimited," sea¬
will not enter an all-out war. Our City, New Orleans, St. Louis and
soned heavily with optimism in
economy,
they say, has always Toronto, in addition to the former
up cycles. Warrants are the best bounced back to these long-range correspondents in Cleveland,
Houston, Pittsburgh
values in early stages of bull mar¬ patterns following wars, booms, Harrisburg,
out
First California Company
Members
in
rate
hours for the first time in history.
Private business may invest as
will
sumably)
Incorporated
household
and
much
ments may make new production
you're going to get into this kind
of
market marker, I think
the
sold
BLUE RIDGE MUTUAL
Industrial
on
the
Vice President
tion.
goods is fore¬
ulation by 1960, according to the
the surface, they all look report, will mean that the increase
little overpriced. Personally, if in the number of mouths to feed
and,
thing like
a
4/1/56
rubber goods have been
manufacturing
efficient
more
above the difference be¬
tween option
and market price,
GILBERT B. PEARSALL
has been elected
Perpetual
5%
longer than they did in
against a 15% increase in. 1950. The
study shows that manu¬
population from 1950 to 1960.
facturers have found ways to im¬
New technical developments and
prove tire life at about the same
tially
operate
to announce that
11
cast
cause
pleased
24%
18%
the
expected rise in
an
1945; and it's quoted at 4JA today. methods will
probably bring about
the
expected
increase
in
each
Current Examples
of
are
$27.41
$15
289,802
Research Department of B. F. Goodrich Co. esti¬
27% rise in production and 15% population increase
during decade of 1950-1960.
a
a
you'd have spent $200 for the bale;
but in four short years you could
than
!We
Expiration
Foresees New Production Peaks
dred Merritt-Chapman-Scott war¬
buy
Later,
Price
(for 1.27 share)
ACP
copy.
rics of warrants is here
ers" for bond or
The
a
Market
Price
which, under that gives them price, where no
more
Spartan treatment, might real value exists, and a premium
much
as
$200
billion
in
new
for regular coupon return; and the have been rubbed out altogether,
price when mathematical value
speculator
in
the
interesting got a warrant for % a share of can be established. Just look over plants and equipment needed to
continue the production rise, ac¬
chance that the stock,
and re- new common. Well, today, 7 years the accompanying current list and
cording to the analysis compiled
sultantly the bond, might both later. Ward Baking common sells you'll see what I mean.
by the rubber company to evalu¬
advance. Current examples of this at I8V2; and the warrant letting
ate the prospects and trends in
Virtues of Perpetual Warrants
type would be Dow Chemical 3s you buy one share, at $15 till
the rubber, automotive and allied
of 1982, convertible into common
Every
one
of
the
warrants
April 1, 1956, now sells on the
industries.
at 150. and Houston Lighting 3V4S
shown in the table sells substan¬
Y. Curb
about!"
Option
Company—
them!
and Class B common
N.
many
market
No. of Warrants
bury
to
praise
1942 you had
Why, if in
markets,
old
if
are
for
—Aug. 1, 1952—
but
time;
here not
to
but
rants
but
$5?)
The
definitely
are
and
here
Market
limit.
no
came
we
warrants
in
you
opportunigain. But
warrants are the last thing in the
world to "put away and forget
ties
Outstanding Price Performance
was
course.
good, there
Stock
corporation
a
limited
a
formance
against $1,300,000 net in
what to do! Reorganize,
million,
of
a
each leverage, and
for
1945, Ward Baking
heavily in the ruck
preferred.
Dividend ac¬
amounted to almost $2V2
Again,
Company
deben¬
time
(at
amount)
par
$5
(of
note
new
a
at
common
maturing item.
special
types
Cobleigh
were
holder
there
U.
they
due
ecutives.
these
by
swig of Bourbon)
Locomotive
Baldwin
1933,
worthy
Ira
let's look at the
calls. Now,
Warrants
watching,
(or shares) to the
certain price and us¬
for
But
So much for solvent creation of
stock
even
Thursday, August 7, 1952
.
and
f
and
(3)
low-tax
preferred
commons.
a
(2)
minimum
latterly
of
number
a
though it's
baffling and elusive of
things
sometimes with
preference stocks convertible into
a
of
(and recently) you'll
the late 20's
warrant quite
financial
will-o'-the-wisp. But,
bankruptcies to produce
them'
share
a
ually
of
our
no
.
pieces
to sell
ennial, the perpetual warrant
ingenuity
the
in
agreement
an
reviewed; and special emphasis is given to that hardy per¬
The
another
please,
find
we
entrenched
the
of
of paper we stash
away in our vaults. It's not a bond
nor a stock;
it's eternally devoid
of book value or lien. It's merely
"Expanding Your Income"
chameleons
volatile
These
So
95%
at about
price).
scheme of
all
By IRA U. COBLEIGII
Author of
market
.
Volume 176
Number 5140
.
.
The Commercial and Financial Chronicle
.
(477)
Trends in Corporate
Bond Financing
r
Steel Production
The
Electric Output
Carloadings
State of Trade
Food
and
Pamphlet
Price
Industry
industrial output for the nation rebounded
noticeably. However,
many steel consuming industries were expected to falter for at
least the next few weeks while the steel
supply pipelines begin
to refill. Meanwhile, aggregate industrial
output continues to hold
moderately under the level of a year ago.
the
ending of the steel strike employment revealed a
mixed trend.
Some firms stepped up back-to-work movements.
But others, their steel stocks
depleted, slated new layoffs. Three
railroads, the Pennsylvania, Baltimore & Ohio, and Reading, an¬
nounced
cause
they
were
by
bonds
since
nomic
implications
1900 and
tional
Bureau
of
under
teresting
with
1900,
high in mid-June, have gone up
Retail food prices rose 1.2% to record a
since then.
as
an
Opinion is divided
how long it will take to
on
the
a special sur¬
by "The Iron Age," national metalworking weekly.
Military
controls officials in Washington are most
pessimistic, esti¬
mating that production in some vital lines will be hampered for a
fluctuations
flotations.
of
runner
contain
Most manufacturers expect steel shortages for
six to nine
Steel
producers, strangely enough, are most optimistic
all, expecting the pressure to ease by the first quarter of 1953.
groups
however, shows the opinions
not
really far apart, states this trade
weekly.
Military and controls officials are pessimistic because
the shortest and most urgent items are
forcefully brought to their
attention—even though they frequently
represent minority ton¬
nage. When over-all production becomes more than
adequate these
are
people will still be concerned about spot shortages
hard-to-make alloys for, say, the aircraft
program.
of
special,
This week steel buyers are
descending on the mills in droves.
They are intent on preventing collapse of their
manufacturing
operations, or restoring production if plants are already
down,
states "The Iron Age."
Most of them will be disappointed, since
■
-
Warehouses
no
open
space
for the rest of the year.
cheered
were
by the first trickle of mill ship¬
ments. But these token amounts won't
go far toward healing their
inventory wounds. Warehouse stocks are now estimated be¬
tween 25 and 40% of normal.
ice difficult regardless of
Such limited
inventory makes
gate
is
back
with
bang. As usual, auto producers
are working it to the hilt.
Appliance manufacturers are also fol¬
lowing the devious conversion trails. But caution prevails. Manu¬
facturers
are
reluctant
a
to make
conversion
commitments
Continued
bond
fore¬
a
bearing
upon corporate bond is¬
These and other
publications
planned for the Corporate Bond
the
Project, it is said, will
and
new
economics
detailed
of
bond
by
corporations
States
The
in
Corporate
Project
of
another
link
on
beyond
page
16
light
on
financing
the
Bond
the
United
Research
in
forges
quantitative
its
research program on national in¬
prices, investment,
come,
markets and
In
of
money
business cycles.
tracing the trends
corporate
bond
and
cycles
financing, Dr.
developed
his
theme
against the broad
background of
development since the
economic
latter part of the last
century. The
data on which he based his con¬
clusions
were
cooperation
agencies
compiled with
of
and
the
numerous
public
investment
private
bw vices.
The paper is a
summary of a
larger study on the volume and
significance of debt, and invest¬
ment
experience in corporate ob¬
ligations. It touches on the broad
trends
of
indebtedness
and
with
the
aggregate
the
compares
those
shifts
of the
that
the major
Mrs. Kirk's down-to-earth account of
A. Wilfred May
series of letters
a
since
from
the
time
of
are
pleased to
announce
ample, one-fifth of the way through the volume she voices the
conclusion that, despite the many inconveniences, the generalbuilding-up of revolt is impossible because they are keyed to the
"hope that life will be better for their children. They are told it
will be, told over and over again with the same fervor with which
the priests once promised their fathers and mothers paradise in
heaven."
Of Sewage and Subway
"housekeeping" deficiencies recounted are the
faulty plumbing and heating in even the best Moscow homes,
which together with the city's crude sewage (leaving the streets
flooded in the April thaws) are significant because of their con¬
trast with the lavishly adorned, it abbreviated subway—the latter
being one of the Soviet Government's typical psychological invest¬
ments; a defiant gesture toward the West and "a promise of
things to come in a brave new world that is very convincing."
Similarly significant as well as interesting is Mrs. Kirk's
account of the lavish food-serving at official and semi-official
functions where foreigners are present—again currently exempli¬
fied for us by their lavish display of party hospitality to our
Olympic athletes, caviar-and-vodka treatment that, despite our
nation's so-far higher standard of living, we could barely offer
to reciprocate with a cafeteria lunch.
Among
the
That Unceasing Line-Up
To this columnist the volume's
in
occurred
cluded
is
now
with this
of
is
how
the
debt
York
Stock
series
39
We
has been
Canadian Securities
on
SIDNEY
Trading Department
BURNS BROS. & COMPANY
The
Limited
Members
Toronto Stock Exchange
is
become
GROWNEY
associated
with
situations
are
charts
and
TRADING MARKETS and RETAIL DISTRIBUTION
indicated.
illustrate
through
the
CORRESPONDENT
findings.
survey
WIRE
SYSTEM
to
contains much that
men
it
will
Ottawa
pensable
August 1, 1952
many
source
the
general
for ^professional
prove
an
of the accepted traditions of
on
—
McMaster Hutchinson & Co.
Kansas City
—
Wm. 1. Mericka & Co., Inc.
New Orleans-
—
iouthwestern Securities Co.
Pittsburgh
-
—
R. C. O'Donnell & Co.
St. Louis
-
indis¬
book. It explores
Continued
Chicago
Dallas
fotf
while
Cleveland
Detroit
illuminating
investor,
bond
us
bonds going into default,
of
fault
FEIBLEMAN
FITZPATRICK
E. MICHAEL
have
bonds. Interest
payments, the vol¬
ume
trends
is
and the time required to settle de¬
DIgby 4-3870
Winnipeg
information
the
aggregate ex¬
perience of investors in corporate
Numerous
Montreal
our
and that
FRANK
incidental
Affiliated with
Toronto
that
tween interest rates and
corporate
Burns Bros. & Denton, inc.
Ass'n. of Canada
announce
DEDRICK
appointed Manager of
financing gains fresh illumination
Members: Investment Dealer's
pleased to
GEORGE
analysis
behaved
organization
Much
BURNS BROS. & DENTON
Exchange
New York 6, N. Y.
are
are
associated
37 Wall Street, New York 5
New York Curb Exchange
—
Broadway
during business cycles and over
longer periods; The relation be¬
presented
in
Exchange
Midwest Slock
in the survey.
Dealers
page
MEMBERS
New
study. In¬
exhaustive
an
the
on
Joseph McManus & Co.
com¬
extinguished
Mr. JOSEPH C. CABBLE
Continued
/
1900,
industry and size
aspects of
attaching of importance to the
widespread queuing rings very true, as a cause of discontent.
principal factors influenc¬
further
two
Madame Vishinsky; women's clothes; the servant prob¬
lem; street traffic habits and regulations; Mrs. Gromyko's attitude,
and treatment of the foreign diplomatic corps at public functions
as Stalin's birthday celebration.
Midst the breezy account of daily doings, the letters frequently
intersperse wise yet simple political observations. - For ex¬
ing the volume of new bonds of¬
fered to investors and the volume
of
old
bonds
that
their
their
to
tea with
tive to other types of debt.
We
arrival
October, 1951.
ponents of the aggregate, and the
position of corporate bonds rela¬
The
their
levels
past. It studies
have
to
daughters and
final departure in
From her vantage point in that crucial period of
deterioration in Soviet-American relations, the author makes a sur¬
prisingly worthwhile contribution to our political and social under¬
standing by covering "the light side" details as conversation at a
son
corporate
current
page
29
ev¬
eryday Russian life is communicated through
Bureau
bonded
serv¬
priority.
Conversion
is
unprecedented aggre¬
of statistical and other data
Hickman
Optimism of steel producers at the other extreme stems from
confidence in the productive capacity of their own
companies, and
their expanded facilities. While some
people still think in terms
of 100 million ton
capacity, annual steel capacity now exceeds
112 million ingot tons.
the mills will have
corporate
paper
full volume which will
a
Research
three
in
The
an
throw
of reasons,
im-
plicationsof
and
these
economic
Hickman
vey
analysis
the
of
sues.
overcome
handicap imposed by the steel strike, according to
detailed
analysis
interpre¬
tation
18%
Wholesale prices also have pushed ahead for three successive
weeks, according to the bureau.
The upturn in the week ended
on Tuesday of last week amounted to
0.3%. This brought primary
market prices up to 111.5% of the 1947-49
average.
well
as
General
Moscow.
since
an
and
Dr. w
was
domestic
bonds
of
House, that immense neoclassic palace (built
in 1912 by a rich businessman who married
into nobility) which serves as our Embassy in
ience
corporate
a new
spurt in the price of eggs.
The bureau's food price index on
July 15 stood at 235.1% of the
1935-39 average. This was a 15.8% rise since
Korea.
of
p e r
impressions.
resignation
transferred from his Belgian mission to Spasso
investment
e x
the
Walter Bedell Smith in the spring of 1949, the
authoress with her Ambassador husband were
data
on
recent first-hand
Following
furnishes in¬
Sparking the climb
A
W.
own
disclosed.
of
superficiality, Mrs. Kirk contributes a shrewd,
able and quite important account of Russian
"housekeeping" details — authoritatively con¬
firming and elaborating on this columnist's
Hickman,
high in the first half of July, the Bureau of Labor Statistics
months.
Re¬
of
ex-Ambassador
Alan G. Kirk (Postmarked Moscow, by Lydia
Kirk; Scribner's, 278 pp., $3).
Despite her catty style and first-glance
Braddock
recalling thousands of workers furloughed be¬
Living costs, which hit
year.
brimming over
documentation, what
a light touch as
cheerful surprise it is to get a little book with
the compendium of letters from the
pen of Mrs.
a
direc¬
tion
on
more
"Postmarked Moscow"
Midst the various weighty tomes "on Russia"
with learned political theses and economic
ing," prepared
resume auto production and take back
11,000
Aug. 18 at its plants in Kenosha and Milwaukee, Wis.
West Coast assembly
plant, however, after operating
all July, shut down on
Monday of this week for the remainder
of August. Production cutbacks were
also announced by PullmanStandard Car Mfg. Co. and Allis-Chalmers
Mfg. Co., farm machin¬
ery maker, because their steel has been used
up.
new
new
Economic
Nash
some
the
of
eco¬
search,
entitled
"Trends
and
Cycles in Corporate Bond Financ¬
Nash Motors will
The
By A. WILFRED MAY
study just issued by the Na¬
of the steel strike.
employes
the
bond flotations.
A
•
National
perience with domestic corporate
J
With
issued
Bureau of Economic Research
furnishes data on investment ex¬
Index
Auto Production
Business Failures
Following the settlement of the 55-day steel strike over-all
.
•
Retail Trade
Commodity Price Index
Harrisburg— Blair F. Claybaugh & Co.
Houston
—
Crockett & Company
-
Burke & MacDonald
T. J. Feibleman & Co.
Blair F.
Claybaugh & Co.
White & Company
.
San Antonio-
Lentz, Newton & Co.
Toronto
Matthews & Company
24
5
6
Chronicle
Commercial and Financial
The
(478)
the effect they were to pay no attention
their contributions to the Dewey-Warren
who would be the distributor of favors in Tennessee
to Reece but should send
From
Washington
Ahead
Poll, sure to be.
Now
manifestly, the
of the News
Tom
his
out of the brains of
have never had any
come
who
Dewey.
ignorance of
to
hope to short-cut the old line politicians
Now,
let
what this
just
see
us
Committee for Eisenhower
eral
After
means.
deliberations at Denver,
been reached. It
that the appointed leaders of this great
days
of
a
called compromise has
whom the leaders
hero, the man with
Citizens
sev¬
so-
seems
Securities
Woolford
Mr.
Corp. also
he
in
when
1925
with
associated
became
in¬
the
entered
business
vestment
the
Guaranty Company of New York.
likely to defeat their
of this movement hope to
He
in
forsake their mere
to
the
to
has offices in Boston and Chicago.
citizenship status and come to be
political leaders. They are, in all truth, a pain in the neck to any
candidate and they will be more so to the General.
able
be
private
office.
York
American
South
123
at
direct
A
maintained
be
firm's New
.
personalities, but it is also more
not
and
and fortune.
fame
Street.
will
wire
anything like this and neither did
"citizens" movement in his behalf is not only in
our traditions that we elect parties in this country
The
standing in professional American politics but
who
Woolford
R.
Broad
certainly never said
Willkie
opening of a Philadelphia of¬
under
the management of
John
the Ameri¬
Roosevelt.
*.
It is a little disheartening to see, again, a "citizens" movement
to this end. General Eisenhower, to his great credit, has empha¬
sized that he is running as the candidate of the Republican party
But this movement will plague him throughout
nevertheless.
There is no justification for such
movements; they
smart organizers
the
fice
the
der fuehrer, in the same way
the same way in which
did under
cans
Dewey.
campaign,
the two-
concept of our government is
government, for a leader, for
Germans and the Italians did,
with the "Citizens Movement" for him than either Wendell Willkie
or
PHILADELPHIA, Pa.—Ameri¬
can
Securities
Corp. announces
..
.
I don't know just what you accomplish this time
bv voting for Eisenhower without voting for the Republican ticket.
If you simply vote for the General then you are voting for personal
unquestionably showing more finesse
is
.
party system.
By CARLISLE BARGERON
Eisenhower
General
New Phila. Branch
according to the Gallup
elected which he was,
when Dewey was
1952
Thursday, August 7,
.
American Securities
letters to contributors to
Treasurer
.
.
joined R. W. Pressprich & Co.
1931 and continued
January,
that
with
until
firm
to head the
he
resigned
Philadelphia office of
American Securities Corp.
in
Born
popu¬
Virginia, Mr.
Suffolk,
the
lar
Woolford
Committee
University of Virginia. During the
war he was on active duty (1942-
movement, seemingly self-appointed, in¬
sisted that although the Republican National
be
to
should
finance them,
they
Speculators in Sterling
should
completely independent and should "report"
directly.
Why? Should they
not be content as volunteer, nonpolitical citi¬
render
to
zens
service
a
the country?
to
Carlisle
No,
they want the General to know what they are
doing so they will be able to demand recognition.
the slightest
not
come
politicians.
Their
Bargeron
not service to
is
They thus be¬
the old line
the country but self
cern
My understanding is that some sort of
worked out
whereby there will be
a 50-50 arrangement
coordinator to coordinate
a
their activities with the National Committee. I
know just exactly
don't either.
what this
means and
am
not
sure
any
that I
exchange tacilities are reserved
Forward
down the road to ruin.
tent of its evasion
But
they can't for
can
some reason or
commercial
and
purposes,
another
for
dis¬
persuade them, not to vote for this or that Republican Senator or1
this or that Republican member of Congress, but to vote for Eisen¬
a
•
to work out, you can
were
imagine what
accomplish, perhaps Eisenhower with
a
Democrat
or
a
bring about. *In
Ohio,
would
Senator
Bricker
would
Jenner losing and Eisenhower
winning and
so
defeated
be
win; in Indiana it would be
on
sdme
the
in
many
overdraft
such
independent movement which is, of
other
this
in
1948,
in
were
state
the
and
The
Scripps-Howard
New
York
be
hindrance to him because Dewey was
heart and Reece was a reactionary.
And
ment
in
a
fice
period wit¬
speculative
"liberal" at
was the Dewey-Warren Move¬
the Chairman of which at one time sent out
British
Einzig
practiced methods is for importers of British goods and
their payments as long as possible
Sterling Area goods, in the hope of being able to buy
the aid of cheaper sterling. There is a limit to both
practices. Debts have to be paid sooner or later, and importers
stocks of British
'lieved
attain
to
very
or
Sterling Area goods have become de¬
considerable; figures
from
time
to
time
Allowing for speculation through evasion of the exchange regula¬
tions, the total amount involved must at times surpass the figures
•
of
speculative positions during the inter-war period, owing to the
j fact that in the meantime figures of international trade and fi¬
nance, like financial magnitudes in general, have risen consider¬
ably. There is reason to believe even in the absence of statistical
evidence that in 1947, in 1949, and again in 1951, the totals in¬
ran
into hundreds of millions of
these
On
•
three
occasions
the
drain
pounds.
on the gold
With MacNaughton Firm
(Special
and
dollar
greatly accentuated the effects of the adverse trade balance. In
1947 it forced the Government to suspend the ill-advised and pre-
Greenawalt & Co., Michigan
itself by now,
.
Two With Waddell Reed
(Special
ures
as
of
impelled to take
;
Mr. Butler did.
What is important
as
effective
Waddell & Reed, Inc., 1012
more
Avenue.
For Banks,
'
is to realise that the British gold
THOMAS
equanimity.
Sooner
or
later the
short
509 Madison
positions
PLaza 3-5282
Teletypes
'TEX"
TWX
—
N. Y.
Britain & Europe)
1-2345 !
PKL-NY
WE PURCHASE
a
UNDERWRITERS and DISTRIBUTORS
reserve there is every reason to
large-scale adverse speculative move¬
realtively small size of the British gold reserve is .in
encouragement to speculators.
with
concern
any
The
ment.
itself
an
One of the favourite arguments of those
to
the
"elastic"
opportunities for discouraging speculation against sterling
During the 'thirties the Exchange Equalization Account succeeded
in inflicting heavy
penalties
on
speculators
all
or
shares
So.Calif. firms
the majority
in sound
who wish to return
sterling is that it would provide the authorities
with
—
ing to the low level of the gold
view
Phone LD-159
(Gt.
in
though the authorities are
position to benefit by that potential1 reserve at will but
depend for it on the moods of the speculators. Unfortunately ow¬
•
Ave., N. Y. 22
"
tential increase of the gold reserve, even
Home Office: Atlanta
D. JENKINS
Broker
sterling have to be covered so that in reality they constitute a
hidden reserve. The larger the short positions, the larger- the po¬
not in
Brokers & Investors
& EXCHANGE
reserve
by speculators in sterling. If the gold reserve were much larger
the British authorities could afford to view these speculative move¬
with
Balti¬
.
FOREIGN SECURITIES
to
ments
C.
and Emmett L. Roach
have been added to the staff of
Dearing
meas¬
is
undergo fluctuations running into hundreds of millions
pounds as a result of the pessimistic or optimistic views taken
liable
•
to The Financial Chronicle)
KANSAS CITY, Mo.—Ernest
though it is not unreasonable to suppose that had
the General Election confirmed the Socialist Government in office
Mr. Gaitskell would have felt
Private Wires
Exchanges.
and Midwest Stock
convertibility of sterling. In 1949 it forced the Government
sterling. Had it not been for the measures taken by the
Government in 1951-52, that experience might have repeated
new
BONDS, STOCKS, COMMODITIES
Trust
Building, members of the Detroit
to devalue
BROKERS of
Chronicle)
Mich.—Ruben
is with MacNaughton-
Michelson
mature
-
of INVESTMENT SECURITIES
to The Financial
GRAND RAPIDS,
due to a very large degree to the attitude of those who
speculating against sterling in one way or other. This factor
were
Members New York Stock Exchange and Other National Exchanges
of Colonel in July
/
reserve was
BANKERS
Of¬
Staff, Wash¬
Chief of
the
of
1950.
or
volved
Established 1925
Gen. Eisenhower's
on
with the rank
Dr. Paul
with
later
•
INVESTMENT
Mr.
military service in both
In World War II he
ington, D. C., under Gen. Marshall
and Gen. Eisenhower. He retired
sterling. There are ways of doing
than selling forward sterling or
pleted have to replenish them sooner or later. Even so, the amounts
involved in these methods of speculating against sterling is be-
giving support to them
the state,
'thirtes
whose
a
Inc.,
SHAEF staff and later in the
in Memohis
Therefore, they campaigned for Dewey but in¬
Reece, the Republican candidate for the Senate,
A. Ward & Co.
municipal bonds.
R.
in
saw
served
of a depreciation or devaluation of sterling. Importers
who distrust sterling are also inclined to defer their puchases of
one state,
sisted that Carroll
would
Ward
Chattanooga
papers
"Times"-owned
engaged in the municipal
World Wars.
in the hope
ordered to support Dewey but were
given autonomy
affairs.
postwar
&
Roland
Model,
by
Broadway, New York
120
dealers
other debtors in sterling to defer
was
Tennessee.
Knoxville
Times"
other
the widely
clubs
iJi am.Particularly versed in how this worked out in
and
in.
thing
the
announced
ganized
be¬
grant
raids against sterling
1931 and on various
and
bond
general securities business for
over
25 years.
In 1938 he or¬
is,-therefore,
'twenties
municipal
borrowing spot sterling and selling it. One of
just
had in the 1948 campaign with the Dewey-.
throughout the country and there was the similar,
pronounced, situation in the Willkie campaign.
more
•
same
the
in
occasions
pressure on
practical, as the Republican organization is not endeavoring to
bring the Republican party to power, just Eisenhower.
Warren
bear
There
nessed from time to time sweeping
as
The
of
Nevertheless,
but
With
course,
facilities.
a
and
witnessed in
we
as
other
states.
You see, this
possibility
no
New Deal Congress and it is
my conviction that this is just exactly"
what some influential segments of our citizenry would like to
attain. Consider what this citizens movement, if it prevails, would
Eisenhower
banks are-not, allowed to
British
them
hodge-podgey
a
behalf their customers,
scale on
large
of
department under the manage¬
ment of Reginald A. Ward was
has been
overseas
cause
Opening
merly with The First Boston Corp.,
to prevent speculators
hower.
If it
of
City, members of the New York
Stock Exchange.
Mr. Ward, for¬
watertight the ex¬
large
from
but
■
Stone,
cannot be on a very
is nothing
scale. There
attempt to explain, vote Republi¬
this
if
even
crimination cannot be made
The purpose of the Independent Citizens Committee then is to
it would
He is
Club
Open Municipal Dept.
operating in sterling in foreign markets
banks are not in .a position to
cover themselves if they sell sterling short on
can.
Bond
Model, Roland, Stone
large scale speculative movement.
by the operation of exchange control, in spite of the restoration
of the London foreign exchange market towards the end of 1951.
perhaps the compromisers
it, the purpbse of this independent movement
is to take in voters who are fed up on the corruption of the New
and Fair Deals, who feel strongly that "Trumanism" is leading usv
they themselves
ex¬
LONDON, England — Speculation in sterling in the sense in
which it existed during the inter-war period is now strictly limited
As I understand
which only
the
of
Philadelphia, Racquet Club and
the Philadelphia Country Club.
possibility of bear raids against
sterling, such as occurred in 1931. Says, because of low level
of Britsh gold reserve, there is every reason to view with con¬
aggrandizement.
was
British
member
change, and asserts there is no
bit different in motives from
purpose
a
obstacles to speculation in
Dr. Einzig points out
at
1945) in the Naval Reserve.
EINZIG
By PAUL
General
the
educated
was
on
repeated occasions
by allowing sterling to depreciate first and then engineering
Continued
on
a
bear
page
29
Harry & Myron
Kunin
PRIVATE INVESTORS
403 W. 8th St LOS
ANGELES
Volume 176
Number 5140
The Commercial and Financial Chronicle
...
i„
*
(479)
nificant fact
Causes and Remedies
shift
to
Shortage
the
United
first
the
North and South America.
British goods, and
to
barriers and
to
consume
Points
than "taxes at home and
wars
It
30%;
only
world
war
U.
that the
world
like to
can't.
It
has
between
her
the
even
meant
A
States
huge
imports
has
covered
are
miles
thousand
formidable
Acts
be
can-
of
man-made
of
made
1951
for
whose eighteenth century
predecessors
true to say that in
were
-
which has enriched your
And in another field it is
tions
respousible-for its ere-
-
ation.
For
sad fact
since
and
the
respect
probably
cases
of
last
at
year
!sacrifice
tionary tendencies sufficiently in
for
America.
We
rely
on you
ern
own
economies to. .enable
only for defense aid, the result
the story of them to sell as much as
they ought-0f the
sharing of the resources of
Anglo-Ameri- to have done, despite the difficul-
trade
can
p y
simply
s
of
is
the
Thorneycroft
So,
a
to sell enough overseas to
pay for
food and raw materials and
not
only from
but
you
need,
from
and
Some
the
hope not many,
that if
this
battle
economic survival is
our
that
of
it is
ing. A quarter of
tional wealth
by
away
And
was
the
on
entire
our
can
before
year
1939-41
it
3.8%.
And
the
product. In the
the
further
in
moved
down
to
is
lieve,
as
you
trade
and
do,
expanding
restricting it. And
not
by increasing
exports to
our
States.
As
the
Mr. Butler (Chancellor of the Exchequer) has said, "Trade not aid,"
should be our slogan. And after
all, there would not seem at first
sight to be many reasons why we
can't increase our dollar exports,
Sales
of
British
manufactured
goods in the States amount to only
one-tenth of 1% of the sales of
And
our
to
3.3%.
applied
And
only
the
to
same
United
New
no
Zealand—with
less
than
smaller.
But
a
population
seventy-five
of
course
times
will
you
free
say, this is where we came in. We
ports from Western Europe before have heard all this
before. If you
peoples—the lack of balance be- the first world war amounted to -want to
buy our goods, get selltween the dollar and the non-dol- about 2% of the American
gross fog yours in the States. The marlar worlds. But you
might ask national product. In the nineteen- Jcets big enough. There is nothwhy the dollar world should be twenties this had dropped to
1%%, ing to stop you.
problem
of
the
concerned
by this. It never happened before the war; why should
you care if we can't keep up with
in the nineteen-thirties
just
say
before going
ther
that
and
dispassionate
I
shall
be
The
I
The
can.
isn't
there?
dollar gap by
second
significant fact is
the doubling of American
produc-
objective
as
as
cent.
per
fur-
any
But
three-
Let's
look
at
quarters of one per cent: after the what does confront a manufacturer
war to less than one-half of one fo Europe who tries to close the
the Transatlantic Joneses. And let
me
to
tion
selling to the States,
moment,
represents
without
doubt
of the main
reasons
one
dollar
shortage.
m
.
But
this
Commerce, London,
only
the
United
States
Engtifuly
22,
1952^
States has grown.
The third Sig-
CANADA—WARRANTS
FROB'SHER
.
FENIM0RE IRON
Common
Stock
stock
warrants
Exchange—many
the potential
investments
stock
CANADIAN
-
of the
in each
warrants
(all
•
DECALTA
all
more
the
trade
stock
Richfield
U.S.)
above
in
If
you
are
in
-
BA'LEY
BARVUE
trading
to
OF
Sidney
the
States.
Within
the
$44,000,
SELBURN
decade
R.K.O.
$85,000
and
be
to
sure
COMMON STOCK
Toronto
To. illustrate
last
$500
—
read
the
Fried
avenges
of
in
For your copy send $2 to the
publishers, R. H. M. Associates, Dept. C,
220 Fifth
Avenue, New York 1, N. Y., or send for free
descriptive folder.
idea
the
the
v/ith
to
United
import
United
that
going
of
served
ers.
It
in
of
pursuance
I have asked
for
they
<;cien-
use
the
those
traders—no
our
aims
today for
Knowing that
and
our
*oon
as
and
more
n0
to
way
its
against
close
the
outside
^an
world without
And the
are
a
^0me
of
depression.
And
seems
to
ignore all the fundamental
which
I
dollar
gap
the
increased
your
seems
ican
can
really think
best solution. It
that
is
no
United
States
should
themselves into poverty
that
the
their
soup
country might
kitchen
of
the
world.
great increase
revenue
on
in
repose
we
or
protec¬
to say: "We
the
fancied
forever sell
can
Canal
is
has
been
American
an
built,
Merchant
Marine, the Pacific cable has been,
if, fifty years after these
reflections
of
his
the
on
th^
our
America has expanded
growth
of America's competitive
is
part of
the
laid. And
bOpes and wishes that the citizens
0f
to
once only part of the Amer¬
dream, have come true. The
tthere
Europe'
thig
not
Panama
you'
Western
referred
between
outside
American
were
a
por
ft has meant taxes at
borne and charity abroad None of
us
in the United States' or here
in
relations
the
and
security that
problem with out of date
weapons. And what is the result?
elsewhere
wildest
dreams
to
position,
beyond his
become
of
power-house
words
become
Western
sidered
then
the
deserve
world,
to
be
now.
Equipment Trust Certificates
of
City of Philadelphia
and
Philadelphia School District Bonds
have
as
now
for
is
been
pretty
domestic
of June 30,
Noio available
many
True,
1952
for distribution
Write for your copy
recently
well
STROUD & COMPANY
re¬
Incorporated
manufactur¬
large field. In 1950,
Federal, State and municipal pur¬
PHILADELPHIA
a
chases amounted to fifteen thous¬
and million dollars. If we in the
NEW
YORK
•
tho
tax
in order
Semi-annual Appraisals
States
in
everything and buy little or noth¬
ing." Many of the projects men¬
tioned in his speech, and which
modern
or'
economic
must
vastly strength-
tackling
tariff.
afternoon
September,
be needed for
sell-
production'
States
sunny
tion, and then went
vastly increased
ened competitive position. It
to me in fact to be
Buffalo.
production; to the
possibility that tariffs might not.
mentioned earlier of the
your
United
in
causes
your
in
Pan-
a
in
of the main archi¬
one
He
to
sufficiency
was
great
a
this
•America
fact
me
on
great
a
century
far from
a
1901, the
President
of
the' United States,
William McKinley,
spoke about
industries want to
further and raise the
even
scene,
I think, as great
of his day. He
Republican
any
the
Buffalo
your
barriers. But this
of
It
of
in parting
you
was very
was,
as
fact
tects
more
In
in
statesman,
gap.
with the very trade
which date from the time
great
some
American
Exhibition
man
realist
was
tinker
the
g0
doing
the
The scene
unreal.
ago.
American
them
dollar
of
only ask
would
if
And
being
on
gigantic surplus with the
nWn_
0f
world.
all of
for
American speaking, half
The point I want to make
today
js that the United States seems to
h© trying to solve the
problem of
into
Thirdly, the
American Act and
firms
no-
ask this not
we
to remember, the words of
thev
barriers
be'raised
to
anything
legislation of
municipalities.
that
fair deal
a
ourselves alone but
I
That
many will be deterred.'And that's
managed to get sizable contracts
for United States government
pro¬
jects. But the field of public pro¬
to
a<?
new
States.
Buy
similar
states
two
Gettysburg
of
people,
people, by the people shall
perish from the earth." It is
not
our
makfL impressfon
market
Simplifi¬
cation Bill
recognized, is not ex¬
actly designed to make it easy for
anyone
market
advertising.
g°odsf Secondly, your Customs
dUJf,' uWhlCh ** th® .au0?°rS
of the still-born Customs
up
opportunities
right
to
cases
range
at
for the
realities
the
curement in the United States has
WARRANTS"
manv
some
common
$104,000
discusses
Warrants in their different
phases—explores
their
profitable purchase and sale
describes current
Warrants.
m
wide
joint pursuit of
our
outlined
Government
many of which are non-
Federal
MINES
on
United
capital appreciation,
MERITS
by
It
are
•
Oil, Tri-Continental and
appreciated
interested
the
warrant:
respectively.
"THE SPECULATIVE
EUREKA
•
ONTARIO PYRITES
for
common
of
Pr°ducts
could provide, the dependence of competitive
the rest of the world on the United
„
lunc^ofX' &
of
which
us
States
First> although the Smoot Hawley
tariff has been greatly reduced
°Xer foe, last eighteen years you
the primary producing countries
remain. high and
wanting industrial equipment prohibitory on a
a
for
friendship has been
only by the fire of
not
free
under the forced
draught of
increasing self-sufficiency of the the second world
war.
So that
not torget Mr. Paul Hoffman's
United States, about which I shall
with most of the rest of the world W°rcis of only three years ago that
have something more to
say in a fighting poverty and
inflation, and "many American tariff rates still
the
discuss
our
think that I have ignored the
colleague, barriers
my
enough to
things in the
you
United
the
be--
in
We
well
the
gef
two
our
satisfactory. We
1946-50, American manufacturers.
years
States
imports
from
Western
Europe is even more striking. Im-
eco-
onomic
countries
"that
unity
Berlin.
us, for our citizens and the Amer¬
ican taxpayer, for the whole of
bfgin
restriction
despite all the European dollar ex- exports to the United States are
port drives, it moved down still very little more than
they are to
is
only part of the world-wide
last
gross national
ratio
problem
the
—
years
•
our
and
other
but by
war,
of
for
use
other, don't, really
United
accounted for 5.2% of the Ameri-
breakfast. That's why we have to
wait four years if we want a new
course,
the
Norway and Belgium, for the
great depression, and the last year
before the Smoot
Hawley tariff—
war.
That's why our
weekly butter ration wouldn't do for a drugstore
of
called,
on
to
For
the. aim
means
hand, what-
that trade between
mean
30%, and in the
one
able
forged
spending money. A lot of
our
traders, as you well know,
and have been
doing that. But if they
one way we can and want to
alter the present state of affairs is
1929
|we have to pay our way
in these conditions in an
increasingly competitive world or starve,
But
is
of trade
most
steadily. Valuing this comparison
throughout at present day prices,
imports into the United States in
an
so
car.
For
it
ever
the
on
each
graveyard
east
something
^
of
United States it is not
only pretty
but it has been
going down
na-
world
of
to
But aid
be
the
want
that if
means
mUst studv the market
pathy.
more -
British.
the
whole
the Foreign
whole^TAS
the
for
manufacturers want to break into
you
through. And
taxpaying is something of which
that
low
shot and blasted
second
that
instance, about 40 to 50%. For the
Wyom-
or
that
know
we
Aid program can go
ratio of imports to
pretty high. For us
20
about
cases
United
States has to support itself
less than Colorado
is
a
the
steadily.
the
production
desperit's only because it's being
mismanaged by the generals. That
is very far from
being the truth.
Here on this island a
population
area
down
countries
for
ate one,
one-third
so
see
more
gone
of you, I
think
let's
from abroad the ratio of
her imports to her
production has
world.
may
this
significant fact, I think, is
although America is buying
the
we
said
But
this economic division between the dollar and the non-dol--we- have
great -experience
lar worlds came about. The first which
provokes us to ready sym-
oerate battle
the manufactured goods
having
how
des-
a
'freedom.
.
dollar
story of
-
Deal
that
reigns
less.
this
glory
today been frank, I
you would
really
prefer that to empty smiles. We
open.
prosperity of West-
Americans tell
more.
the free world for the defense of
the situation.
The Causes of the D.Har Shortage
a story
stoiy
problem,
G. E. P.
ties of
all
country's
of its
your
the
have
know
Europe,
And
I
that
us they would
strike a
heavy blow against our sol-
vency and the
in this
course now
country of
their
Fair
sure
don't
eleven
over
vorable to
very
If
am
But other verdicts we have to wait
for in suspense. If
they are unfa-
the way in which the New World
has helped to rebuild the Old. We
know that this has meant self-
na-
wishing to sell to the .United
and
Traders
directly
affected
Kingdom
export
trade,
United
valued
country.; generosity and farsightedness
States have failed to control infla-
the
that
is
some
honour
Wants
applications, of
and covered in a way
t
am iurf /ou W1B forgive me growth in self-sufficiency has won our admiration.
it T say-that I cannot
For do not nounced. We have been
help finding been at least partly due to techrelieved
a
peculiar irony in your
forget, when you hear a small to hear recent
decisions of the
inviting nological advances and the exploito talk on our dollar
minority in this country raising United States Tariff
problem a tation of new resources in the
Commission
shrill voices against
things Amor- dismissing applications in' respect
mender
oi
a
United States, to some
energetic fcan that the
great majority of our of motor cycles and blue
.Government twentieth
cheese.
century
pioneering citizens
expansion
applications
Aid, million dollars. In the last couple
which has of days yet another has been an-
.
mainspring of
tradition.
eight
the great concept of Marshall
.
competition which has been
the
tariff
been sixteen such
which
loans and
T
free
relief by
States industry. Over the
last, fourteen months there have
the
with gifts and
war
three
and
tension
and
which
exporters, for a
if we send goods across
3,000 miles of ocean, of free and
fair competition with
your own
producers. We ask in fact for the
chance,
only
United
gap
gap
be the long
run, we can buy more
from you. And so we ask for a fair
deal
for
our
ers, but they may be increased,
Under the Escape Clause procedure of the Trade Agreements Ex-
but
more
a
America's
exports.
United
charity abroad," and calls for "fair
deal for British traders."
buy
United
barriers against European export-
ef-
be-
States has to buy more American
than it can pay for, and
would
the.
Trade Barriers
there
goods
more
S.
ocean
trends
means
to
And that's not all. Not
the frontiers of the United
yond
exports
from
nothing remote about their
feet.
lower U. S. tariffs would be better
out
came
our
States.
and figures may
remote and barren. But there
seem
points to handicaps due to U. S. customs
"Buy American" acts of Federal and State
to
governments.
Wants U. S.
of
of
•
These
is
second
Be¬
half
World. We want to
pay our way,
to sell more to
you, so that in the
long run, and it must I am afraid
2%
Europe
war
imports
between the
15%.
Speaking before the American Chamber of Commerce in Lon¬
don, British cabinet officer ascribes dollar
shortage to: (1)
decline in U. S. foreign
importations relative to domestic pro¬
duction; (2) heavy increase in U. S. output of
goods since
World War II, and (3) shift of U. S.
imports from Europe
world
United Kingdom had secured
only
of that business in that year
we should have doubled the
value
imports
from
war
States
Europe;
since
(Great Britain)
States
North and South America.
fore
THORNEYCROFT, M.P.*
President of the Board of Trade
is, I think, the great
United
since before the
Oi the Dollar
By The RT. HON. G. E. P.
of
7
ALLENTOWN
•
,
9
PITTSBURGH
•
LANCASTER
hi}
con¬
8
(480)
The Commercial and Financial Chronicle
early April showed
cause
Enterprise—Free
of
Otherwise
or
if
year,
was
By JOHN FARRELL*
warmish
a
in
rain
northern
New
England, in Vermont where I
lived.
Vermont, in those days,
Executive Manager, Edes Manufacturing Company,
Plymouth, Mass.
far
was
Consulting Management Engineer,
the
from
removed
Euro¬
pean capitals—London, Paris, Ber¬
lin
and
Moscow,
from
Rome,
Singmaster & Breyer, New York City
on
completely
But
happening in
the world; events were in process
which, during that spring, made
themselves felt,
in Vermont, in
Oregon, in Texas, on Wall Street
for these evolutionary
changes, so that "big companies fell like flies before the in¬
dustrial unionism of CIO." Sees strong tendency toward So¬
cialism in U. S. and argues that profit is as essential to stateowned industry as to priyate enterprise. Asserts Union leader¬
ship is attempting to dominate the government, and warns if we
was
unprepared
things
and
in
had
been
gust,
of
with
tion to soeak to
The
a
of people.
group
matter of
mutual
inter¬
is
ests
i
volved.
n-
For
lifetime.
which
have
that
ance
I
you
talk
aoout
enterprise, about
I can assume that most
of you will bear with
me; because
any discussion of free enterprise
has to do
principally with business
Somewhere, just recently, I've
liberty defined as freedom
heard
domination
by government,
by the so-called State. And that is
essentially
what
I
want
about—Enterprise, free
to
talk
other¬
or
wise.
that I have done my
share
of
ranting
and
railing
against the situation in which we,
suppose
business people, find ourselves
I've damned the political
leadership, the labor leadership—
and the many factors which
hell bent to
seem
destroy the American
economy.
But this is
a
pretty silly way to
act; it's like Don Quixote tilting
at the windmills. If I believe that
free private
to
enterprise
public
enterprise
something about
unless
ment
fo
try
it
des¬
seems
become
govern¬
do
we
then
I
had
fmdout why I think
and endeavor to do
something
intelligent about preventing State
enterprise and socialism.
so
Thomas Jefferson wrote
a
country
the
most
he
good
can,
with the prejudices of the
majority 'til he
reason."
can
And,
nreindicts
of
lead them into
gentlemen,
tho
delude ourselves,
the
mainriUr
against mdvate business
aga nst private business.
our
We
Let's not
Let s nnt
have
job
a
hands.
The
You and I
are
matter
of
sorec¬
unfitted
for
to
any one
one
follow
minister,
reason
the
or
an¬
calling
lawyer, movie actor,
of
cupations,
a
number of other
drift
into
of
or
oc¬
business, in
one
capacity or another.
Many
such individuals have no
intention,
early in life, of getting into busi¬
but due to
another,
one
fate
force, they decide
or
circumstance
other
some
that
after
all,
tha7staSrvafng.laSt reS°rt' * ^
I
suppose
years ago,
An
an
in
economy
other
Oddly enough, or perhaps it was
surprising at all, this drop in
prices was about the same as that
not
level
and
that
It's little
Southeastern
Engravers,
that
back
25
or
many youngsters
address
of
men
It's
at
and
Biloxi,
the
little
30
Southwestern
Miss., June
16,
wonder
the
Photo-
1952,
that
of
some
which
existed
in
1915
which prevailed at the
inflationary point in 1919.
confused. high
were
"took the veil"
about
to
so
And business moved
more
or
less
speak
,
a.
it
wcta
a
iui 111
ui
cs-
,
,
trends that have grown out of the
past and which affect
us
rw
i
m?k
.
..
The economic
remembered as
.
became quite apparent.
r
Much of m
the literature of that time
pression
was
depressions
.
,
,
.
collapse which
the
is
de-
"great"
in reality
a series of
started
with
which
dealing with economics, sociology the stock market
panic of October,
and
political science has been 1929 and
continued, through a sewritten from the standpoint
of rjes 0f
events, in all truth, right up
academic theory without benefit
to the outbreak of war in
Europe
or
busi- jn
September, 1939. Basically, perAnd this liter- haps the American
phase of the
ature, much of it, has been written
collapse, which was world-wide,
to this day by men with a "leftwas due to credit inflation which
of
business
experience
philosophy.
ness
!^t point of view. I like to think should
2? TnTelle^uaHv ho'neS^Thev
simply^MtapdKtly
them.
see
I have
just spoken of
an
have happened
never
P\T'
in
aware-
Europe, and which
haps, to
were due, perill-advised attempt to
our
of
ness
economic, social and po- remake the map of Europe and to
litical trends. Perhaps I had bet- the
unrealistic economic proviter be careful. I believe that what sions of the Treaty of Versailles.
I
want to say
is this—neither
formal education
experience had
1929
j
think
were impending
E.
F.,
the
as a
was
war."
and
veteran of
that
America
America
would
As I recall, much of the trouble
which spread throughout Euro-
for Pean
us
that my Qwn at_
titude, in the '20s,
A.
our
business
our
prepared
the chan§es that
in
nor
was
show
the
economies started in central
Europe.
An early indication of
what was to come appeared with
the failure of Austria's largest
banking institution, the Credit
Anstalt. in Vienna. This happened
in
1930,
'31. The stock market
or
crash in New York, and European
world, if it had not already done
so, that here in this country we developments acted like a rapid
succession of economic blows, un¬
took prosperity,
opportunity and
freedom
But,
as
you
matter
a
see,
of
course.
lot of water had
a
gone over the dam since 1917.
appraisal of the
war
mediate aftermath
as
Our
til
the
various
backs.
leaders,
and its im¬
the
just
a
tern-
porary
to
world
eternal
in
the
promised
land
prosperity and "two
of
cars
garage" was
slightly
cock-eyed. But, let's look back to
,ust nrieflv anrl
1917, just briefly and consider the
every
W°"d ^ I
elie«s ot
spring months of 1917
no
weather
way
was
Perhaps it
remarkable.
average,
was an
I
were
The
suspect.
early spring be-
business
throughout
discredited
were
Stocks—Analysis of current outlook—First Boston Cor¬
Bank
poration, 100 Broadway, New York 5, N. Y.
Materials and U.
Canadian Raw
1, B. C., Canada.
Pi^e^T3?erf>,iriA^r?er+1Ka'
Act—th
Ne^ Deal^'
Wa§ner
liberals.
got multitudes of
placed
preters
These
of
many
are
Stock Warrants" by
Sidney Fried discusses warrants in their
describes current opportunities—$2 per
different phases and
copy—Dept. C, R. H. M. Associates, 220 Fifth
York
Dividends—Booklet listing common
Common Stocks and Cash
stocks
that have paid a
the New York Stock Exchange
on
Avenue, New
(Or send for free descriptive folder.)
1, N. Y.
cash dividend in every year
for 20 to 105 years—New York
Exchange, New York 5, N. Y.
Stock
Operations in 1951—Operating ratios
located in 51
cities—Horwath & Horwath,
Hotel
hotels
100
of
East 42nd
41
Street, New York 17, N. Y.
Investor—Booklet—Dept. CF-6, Kidder, Pea-
Inflation and the
45th Street, New York 17, N. Y. Also
Fifty an analysis of the 50 listed
body & Co., 10 East
available is The Favorite
Stocks
Insurance
management.
506 Olive
popular with professional
stocks most
—
Analysis
—
Company,
White &
Street, St. Louis 1, Mo.
Japanese Investment
Nomura Securities
Guide—Tabulation of Japanese Securities
Co., Ltd., 1-1 Kaputo-cho, Nihonbashi,
Chuo-ku, Tokyo, Japan.
Stocks—Tabulation—G. A. Saxton &
N. Y.
Public Utility Stocks—Tabulation of 15 issues appearing at¬
tractive—Walston, Hoffman & Goodwin, 35 Wall Street, New
York 5, N. Y. Also available is a bulletin discussing Chicago,
Milwaukee, St. Paul & Pacific Railroad and Chicago & East¬
Common
Utility
Public
Co., Inc., 70 Pine Street, New York 5,
Railroad.
Illinois
ern
interpretation of the
of share owner¬
ship—Doremus & Co., 120 Broadway, New York 5, N. Y.
World Sugar—Survey of prospects for 1952-1953—Lamborn &
Company, Inc., 99 Wall Street, New York 5, N. Y.
Ownership—Study containing an
Share
recently issued Brookings Institution survey
*
*
*
Shoe—Analysis in current issue of
American Brake
"Gleanings"
Wall Street, New York 5, N. Y.
Vanden
Electric Co.—Brief data—Oppenheimer,
Atlantic City
Exchange Place, New York 5, N. Y. Also
data on Electric Auto Lite Co., General Railway
Broeck & Co., 40
available
are
and
& Co.,
Chemical Co.—Memorandum—Graham, Ross
Street, New York 5, N. Y.
Augusta
82
Inc.,
Sterling Drug,
Co.,
Rand
Co., Ingersoll
Tennessee Corp.
Signal
Beaver
Corporation—Analysis in cur¬
C. Allyn & Co., 100
Monroe Street, Chicago 4, 111. Also in the same issue
analysis of Speer Carbon Co.
Central Vermont Public Service
of
rent issue
West
is
an
and
Chicago
"The Allyn Analyst"—A.
Air
Southern
Lines, Inc.—Analysis—Gartley &
Associate, Inc., 68 William Street, New York 5, N. Y.
Bonds—
of June 30, 1952—Stroud & Company, Incor¬
porated, 123 South Broad Street, Philadelphia 9, Pa. Also
available is a semi-annual appraisal of Equipment Trust
Appraisal
as
Certificates.
Colorado
Interstate
Gas
in
Company—Data
current
issue of
"Highlights"—Troster, Singer & Co., 74 Trinity Place, New
York 6, N. Y.
Also in the same issue is a brief discussion of
Westpan Hydrocarbon Company.
Dan
River
Mills, Inc.
—
Memorandum
—
J. Arthur Warner &
Co., 89 Devonshire Street, Boston 9, Mass.
Du Mont Laboratories—Review—Ira
way,
Company—Analysis—Ira Haupt & Co.,
El Paso Electric Power
Ill
Haupt & Co., Ill Broad¬
New York 6, N. Y.
Broadway, New York 6, N. Y.
Fairchild Camera & Instrument Corp.—Data—Abraham & Co.,
120
Also available is brief
Broadway, New York 5, N. Y.
Continued
on
Delhi
Oil
page
and
Over-the-counter
Hugoton
*
Primary
Oi7 & Natural Gas
Production
"Tennessee
Production
Natural
Markets
Gas
&
Securities
Oil
Kerr-McGee Oil Industries
*Prospectus
on
Request
so-called
latter
economic
events.
Ca¬
traded on the Toronto Stock Exchange
and in the United States—"Speculative Merits of Common
companies
nadian
pro¬
people dis¬
the businessmen as inter¬
economic
for
warrants
stock
Warrants—Common
Canadian
or
Messiahs and there came forth
leadership and new philoso-
we
S. Shortages—Analysis—The
Limited, 544 Howe Street, Vancouver
Western City Company,
iin?J: was npe
And
selected stocks
Street, New York 5, N. Y.
Bache & Co., 36 Wall
their respec¬
much
fessors, do-gooders
Effects of the First World War
The
on
Selected List—New mid-year edition of
Bache
were
Gradually,
pretty
interruption of America's
march
countries
pretty much flat
tive
pleased
the following literature:
City of Philadelphia and Philadelphia School District
Km,
ojofourme^ad' noYbefnto
econorT even*!?haV happened in
t
j wouid, differently than most
businessmen
firms mentioned will be
send interested parties
—Francis I. du Pont & Co., 1
Economic Collapse
vital-
so
ly today
indiof
day
generally levelled off at
a
half-way point between
briskly ahead.
and sought out the books of Tausnow * want to get on past
sig and Marshall, and even those the Years of the 20s, past that soof Marx and Engels—books of
recovery which began in
philsophers, of economists, of so- 1922 anc* culminated in the stock
ciologists. It was a form of es- m^ket crash^of^ 1929. Because ------—
it
capism. out uui of n all came en- was — 1929.that ~ *
<_apj.am.
But out ui it an
— ln
"
-—: events began to
v~
lightenment and awareness of the happen which had more direct
economic,
social
and
political bearing upon you and on me.
in
Convention
wonder that business¬
that
powerful
businessmen,
a
large numbers of people
or
un-
see
the
"won
ord that
ness,
not
was
hiss, "Profit taker!"
the
Businessman
called, and it is
other
It
the early '30s to
Prices
letter
(to Caesar Rodney) in 1805.
In
it, he wrote, "He who would do his
on
number of
any
fear that he might meet some New
Dealer who would snub him and
today.
must go
the
respectable man walk- which occurred soon after the war
furtively along the street for of 1812 and after the Civil War.
them
and with freedom to do business.
best
Business,
disasters.
mg
John Farrell
I
as
chosen
tined
in
of exploiting workers. Busi-
in
er,
business,
as
review
otherwise
v
inasmuch
I
day.
usual
Howe
from
to
nessmen.
other
interests.
to
need
no
become
to
Chicago fire, and
these
have
re¬
decline in prices that continued
nessmen, generally, were regarded for some 11 months and which
as
having caused the depression, saw the price level drop about
the San Francisco earthquake, the 30%.
no assur¬
share
desire
a
pense
of
but
is
then,
even
regard words, had surged ahead over the
profit, for example, as an evil period from 1915 until May, 1920.
thing accomplished only at the ex- But in that month, there began a
terested in any
things,
was,
the ''European mess."
as
It became the fashion to
ceivably, be
fanatically in¬
number
7
the
came
busi¬ detail the
history of events that
Business, believe it or grew out of that April. There was,
not, was at one time regarded as of course, the A. E. F., the arma
fairly respectable pursuit, but istice
of
November,
1918,
the
this state of affairs changed in the months
of
German
occupation,
early '30s when new economic and Then followed the inflation of
social philosophies came to be the 1919-20 and the
depression of 1921.
cated
order of the
example, I
might,
con-
April
on
at long last, to be drawn into
was,
There
responsibility goes
the acceptance of an, invita¬
Au¬
shock of realization that America
be lowered, and personal
considerable
since
up
1914, but now
J917
spring
ferred to
our
The events
building
this
accept economic domination by the State, living standards will
liberties curbed during
is understood that the
were
Washington.
that
It has always seemed to me that
Recommendations & Literature
to
businessmen, Mr. Farrell tracer ^ffects
of World War I, the economic
collapse of 1929, and subse¬
quent social and economic changes. Says business manage¬
ment
Dealer-Broker Investment
It
Vienna, from Sarajevo.
Deploring attacks
1952
trace
no
April 7 of that
correctly, there
and on
I recall
snow,
Thursday, August 7,
..
.
needs
Social
or
and
Troster, Singer & Co.
Members:
74
Continued
on
N.
Y.
Security Dealers Association
eco-
page
20
Trinity Place, New York 6, N. Y.
29
Number 5140
Volume 176
...
The Commercial and, Financial Chronicle
;
(461)
1
I
associates
This is
a
Investment
The
the performance of Associates
report on
Company in the first six months of 1952.
figures reflecting the progress of our business
in themselves
economy
significant
as
which they represent.
Associates Investment
Company keeps
money at
It functions with dollars—millions of them
the stockholders who
lions borrowed
dustrial
are not
the service to America's
as
supplied by
business and further mil¬
own our
from
work.
banks, insurance companies, in¬
corporations, pension funds, trusts and others.
These dollars channeled into the business world make
A
REPORT FOR THE FIRST SIX MONTHS
possible the purchase of hundreds of thousands of auto¬
mobiles and trucks
CONDENSED CONSOLIDATED
BALANCE SHEETS
*
ASSETS
Cash
June 30, 1952
$ 54,431,374
Our
motor
vehicle installment receivables....
motor
Direct and
$303,392,085
$270,239,748
41,992,017
51,378,761
30,946,220
20,951,522
28,637,896
Wholesale
28,252,307
personal installment loans
vehicle short-term loans
Commercial and other receivables
8,802,489
of
7,998,568
our
3,802,434
markets, makes possible mass pro¬
country.
There is
no
magic in this
capitalism. The
-
3,025,940
$440,205,585
a great cross
buy transportation today and
barriers that confront Mr. Average Ameri¬
creates mass
$347,097,627
Other Assets
to
duction, steady employment, the high living standard
15,726,143
$374,493,511
net.
time with
for it tomorrow. Installment financing pushes aside
the money
$370,822,338
21,672,218
Reserve for losses
receivables,
pay
can,
$404,968,218
Less: Unearned discounts
Total
job—keeping money at work—enables
section of the nation
Receivables:
Retail
on
June 30, 1931
$ 61,909,640
Marketable Securities.
and
by Americans who buy
installment payments.
$404,554,941
of credit,
tion
process
no
...
"ism" but American
is the sound and basic applica¬
and credit quite simply is borrowing
against the promise to
repay.
LIABILITIES
The
Notes Payable, short-term
Accounts Payable, Accruals and Reserves
Unearned Insurance Premiums...
20,210,135
$37,500,000 of
sue!!
new
16,434,088
40,000,000
22,500,000
22,500,000
of
.
subordinated
this
1957 to be
Subordinated Long-Term Notes
*
ment
19,765,300
40,000,000
Long-Term Notes ($4,995,000 due in
prepaid in August 1952).
22,581,461
—
obligation to
$244,553,000
$267,108,900
implies
us
never
repay
Company just
who
a
as
applies, to Associates Invest¬
it applies to
further obligation
keep
money
before that
—
our customers.
work to realize today
at
we must use
and restraint.
notes were is¬
in
July 1952, due in 1968, subject to an¬
sinking fund requirements of $2,500,000
beginning in October 1954. Proceeds were used
retire
$22,500,000 subordinated notes out¬
Associates Investment
standing June 30, 1952 and to provide addi¬
tional funds of $15,000,000.
Preferred
Stock
9,700,000
Company is prin¬
cipally concerned with the. time sales
9,800,000
Common Stock
10,418,240
10,418,240
financing of automobiles, and maintains
Surplus
47,686,849
41,084,313
offices in
"$440,205,585
$404,554,941
Operating
.
business, and
$ 30,246,761
19,105,365
$ 11,742,379
Provision for Federal income tax
Consolidated
personal and direct loans.
Major subsidiaries
5,680,000
6,200,000
$
5,542,379
earnings per share of common
stock after payment of preferred dividends. . ...
financing for
$ 11,141,396
count
Net income
percent of American
June 30, 1951
$ 37,703,868
expenses
Net income before Federal income tax
District of
population is concentrated. Operating
25,961,489
and other income..
and the
divisions include commercial
Six Months Ended
Discount, interest, premiums
states
Columbia where 81
CONDENSED CONSOLIDATED INCOME STATEMENTS
June 30, 1952
29
$
net
$5.12
ASSOCIATES
ASSOCIATES
$5.04
INVESTMENT
DISCOUNT
COMPANY
CORPORATION
and other Subsidiaries
South Bend, Indiana
are
Associates
Dis¬
Corporation and Emmco Insurance
Company.
5,461,396
as
credit with good judgment
nual
to
And
the obligation of all
The Commercial and Financial Chronicle
10
.
.
Thursday, August 7, 1952
.
(482)
Bache, Others Form
A New Plan ioi Nominating
Bank and Insurance Stocks
Presidential Candidates
By
This Week
Gold Standard League
One
w»th present method of
candidates for President and Vice-Presdent, Mr.
Holding general public is displeased
nominating
Shull outlines
provement over
been
public, having
opportunity to
American
The
accorded
an
witness, firsthand, just how great
in
operate
conventions
choosing.
political
the
for the
of
ex¬
dis¬
with
chooses
and
that
feels
him
a
is
to
a
plan
As
shall
we
following
the
propose,
inton
to
be
to
seem
Wash-
inclusive, who
elected, or otherwise
to
the Presidency, 23
Truman,
been
succeeded
had
plan
for the
of interest: Of the 32 men,
have
held
previously
office
as
Con¬
members of the Continental
U. S. Senate, or as Governors
gress,
of their
respective States; 3 have
of
members
been
and
the
of
House
(5)
As
for
The
classifications.
above
regardless of the method
selecting the nominees,
that,
chosen
the chances are,
choice
by long odds, the
by each Party as its can¬
didate for President of the United
States will be
who has served
one
state, or as
both. The
propose, however,
will
in
no
way
preclude
the
choosing
of
Generals,
Cabinet
Members, Members of The House,
or
prominent citizens in other
U.
S.
Senator,
plan we shall
or
as
lines of activity.
the
With
chance
the
for
either
70%
chosen
nominee
Presidency, by any
convention
of
than
better
the
that
be
whatever,
Senator
S.
U.
a
type
will
the
or
Governor of some State—but with
others
the
States
the 96
and
in
are
far
a
several
the
of
U.
that
feel
barred—we
not
Governors
Senators
S.
position
better
to
the qualifications of men
for the Presidency than local and
State Conventions choosing, and
pass
in
States.
play
prominent
so
The
part in
a
to
way
proposed
(2)
Congress
to
appropriate
the necessary funds for conducting
the entire program of nominating
men
for President and Vice-Presi¬
dent.
their
circuses
as
delegates
we
have
such
to
witnessed
stockyards these
past few weeks. Therefore, to save
from
Chicago's
justifiable, or
claims of "steals";
avoid
to
expense;
unjustifiable,
the
give
exercise
say as
they
its
public a chance to
right to have some
to the candidates for whom
their selection
make
to
are
Poors"
Each of the ten
of each
men
Party, chosen by the Senators
Governors, to be given 1-hour
TV
radio
and
tional
time
hookup, to
on
na¬
a
tell the people
why he feels he is best qualified
to be
President,
all others.
over
(4) And, after the nominations,
each
the
of
President
time
two
to
be
candidates
given
TV and radio
on
for
1-hour
of
national
on
hookup, to tell why he feels he
should be the people's choice in¬
stead
the
of
nominee
posing Party;
and,
the
of
op¬
similarly, for
the
Vice-Presidental
but
perhaps
not
over
1/2-hour of Air time.
While I
not
am
optimistic
so
gested herein will meet with
ceptance without
do
we
as
ac¬
modifica¬
some
it
recommend
shows
unnecessary
as
a
as
we
have had thrust upon us under the
age-old
feel
Convention
that
latent
such
there
public
While
the
election
of
elections—we
November
system.
the
points
study
the
out
the
48
let
States
the
meet
Governors
in
Wash¬
ington with the 96 U. S. Senators
from those States, for
the purpose
of developing a list of eligible men
whom they deem best qualified
to
serve as
President of the United
must
York have
adapted themselves to change and given
What
is
their
the
(2) Let
two
there
ballots
be
in
readiness
(preferably
of
the
Australian type), one bearing the
David A. Rogen has become as¬
names
and
of all Republican Governors
U.
spaces
S.
Senators—with
blank
for write-ins of other
pos¬
Bache
&
Co.,
36
Street, New York City, mem¬
of the New York
change,
tative.
as
Mr.
a
Stock Ex¬
registered represen¬
Rogen
York
Kaisha,
the
stock
of
Japanese
any
company.
Mexicana, S.A. will, en¬
in all phases of the exportimport business and will repre¬
the study, however, is that investors
stock
bank
investments in
view
the
of
on
Mexico
certain
leading
manufacturers.
Within
Mexico the company's trade name
will be "Daimex."
The
'V"
"Selection and Timing."'/' ^
in
sent
American
of
management
is
company
the
especially
new
interested
in promoting three-way trade be¬
tween
Mexico,
and
the
Japan
desirable to concentrate the effort on—"the selection of indi¬
ico to Japan will include rice, ores,
cotton
linters and
fibres, while
more
vidual
stocks
with
better
than
long-range
average
United States.
possibilities."
This contention is supported by figures and charts on individual
issues and the point that banking has a definite long-term pattern
growth.
ably
"Deposits of commercial banks have shown
steady
about 6%
and
strong
per annum
through
increase
the
imports
since 1875."
ports
"Timing of purchases, however, is still important for there
periods when even the best stocks are too high priced."
From
a
should be
Of
purchase
to
a
useful
course,
or
sell
bank
shares.
factor
The
the
to
United
States
PHILADELPHIA,
study of the chart together with the index of bank
stock prices, it can be seen that there are times when it is advan¬
tageous
of
Pelz
&
Co., Inc.,
vestment
yields
from
Broad
stock
Pa.—Stanley
dealers
securities,
opening
guide in selecting such periods.
the market action of each individual bank
Japan
Stanley Pelz & Co.
Opens Branch in Phila.
more
or
from
Mexico include fibres, waxes, fats
and oils, and food products.
are
As a general guide for the timing of purchases the report
suggests the measure of yields. As shown in one of the charts
bank stocks at various times have sold to yield as low as 3% and
as high as 6.5%.
The average over the past 17 years is about 4.5%.
During this period bank stocks have sold to yield 5%
approximately 25% of the time.
Mexico
chinaware, metal products, hardware,
canned foods, machinery, etc. Ex¬
averaging
years,
by
Exports from Mex¬
will include finished goods,
remark¬
a
of
an
Street
in
announce
office
at
the
under
does not conform to the general averages. This is where the selec¬
tion of a particular stock with attractive possibilities that
ment of
be undervalued is of importance.
123
in¬
the
So.
manage¬
New York Stock
Stanley W. Jeffries.
was
formerly
"Times" and
with
the New
with
Glore, Forgan & Co.
Exchange
Weekly Firm Changes
In addition to the foregoing, the R. L. Day & Cc. bank
study
presents an analysis of each of the 28 stocks. It includes comments
on operations, a record of earnings and
dividends, operating ratios
and
a
The
stock
The New York Stock
chart of the market action of the different shares.
study helps to correct
and
is
tional and
unquestionably
mistaken
some
ideas
has announced the
about
bank
from
.
FHLB Notes
on
Market
1
5«thfr°Tigh vVe[en-+Sm'T^'
agent, New York City. The
issues,
both dated Aug. 15,
the Federal Home Loan Banks to
their member institutions.
Upon completion of the financing, outstanding obligations of the
Federal
Home
Loan
Banks
partnership
Lindsay &
at
the
serve
Bank
nf
Npw
ship
in
Robert
William
Mallory,
Adee
&
Co.
{
will
BANK
Federal
and
Re-
Vnrir
INSURANCE
thp
Federal Reserve Bank of Chicago,
I?, 1952^ and°$76,500^000
3t the °pti°n °f the Sub"
ing Nov-
J.
July 31.
Delivery of the notes will be
either
in
Co. July 22.
I. Zabriskie retired from partner¬
aggregate $318,550,000.
made
Exchange
following firm
changes: Mason L. Carroll retired
valuable aid for both the institu¬
a
individual investor.
^915_2' con.sist ofQ $100,000;000 of
Associated
With Bache & Co. Staff
bers
a
common
reviewing the economic factors affecting bank earnings
at the present time, the report emphasizes that rather than place
too much reliance on short-term economic considerations, it is
two
Wall
the
Bussan
Daiichi
After
fiscal
with
of
by Americans in the
money
trading
interesting features of the R. L. Day & Co.
study is the discussion
have tried to portray
David Rogen
block
Daiichi
common
changed conditions with the point of view in mind that a better
balance in holdings might be achieved by including some shares
of institutions in other sections of the country.
•—
of
purchased
associates
of
gage
suggested by
re-examine
L.
The purchase constituted
new
excellent
an,
Harold
year
first sizable postwar investment of
sociological
and
and
Ltd.
much
be
herein.
sociated
States.
we
Co.,
stock
account of themselves.
proposing
tion that
year,
economic
Last
substantial
excellent market
We
sentiment for just
of plan as we are
type
a
the
Ltd.
Bache, senior partner in Bache &
which have benefited banks in areas away from New
York, the report is—"not meant to be a blanket condemnation of
New York bank stocks."
Certainly some of the banks in New
Public offering of two issues of
herein; and
we
are
non-callable
Consolidated
Notes
hopeful that that "latent public
propose
the
following
specific
of Federal Home Loan Banks tosentiment" may arise in support
plan:
to a plan bearing the basic founda¬ taling $176,500,000 was made on
(1) About July of a Presidential
in
Thus
Banker."
to Mistui & Com¬
successor
a
pany,
performance
"American
new
san
changes
starter toward getting away from
such
The
may
to feel that the detailed plan sug¬
tion,
of
resented in Japan by
gains made by many banks outside of New York City as well as a
few in the city are lost sight of in looking at the averages.
nominees—
limited to
the
and
and
of
of
C.
and
of
(3)
Republic
directors.
Taking 20 out of the 22 largest
has not been recognized
by many investors largely because of the action of New York
bank stocks which make up the market indexes of "Standard &
market
superior
Another
for
paved
be
herein by appro¬
priate Constitutional amendment.
plan
Secretary
company will be rep-'
Daiichi BusKaisha, Ltd., one of the lead¬
ing Japanese trading companies
posals
(1)
Gomez,
of the Treasury
Co. study shows that be¬
tween September, 1939 and April, 1952 the gain on these stocks
was
102%.
During the same period the Dow-Jones Industrial
should
communica¬
modern
on
sending,
to
candidates
daily lives, the following pro¬
are made, for full measure:
our
his
of
Governor
as
the
election, for Presi¬
Vice-President of the
that
Now
Other di¬
S.A.
Agriculture of
Mexico,
and
Carney.
Bache & Co.,
which has acquired a large interest
in the company, will be active in
the
management and will have
representatives on the board of
and
Henrv
banks in the country, the R. L. Day &
This
second
the
and
be
to
and
dent
for
used
na¬
a
the November
conclusion
these facts is
from
easily drawn
the
of
in
let
President;
members; and one, only—Chester
A.
Arthur
appears
to have
none
be
names
the public
highest, the nominee for VicePresident—and, similarly, for the
Democrat
Party nominations.
(6) The names of the men so
tions
—
their
Party
be the Republican Party's nominee
United
into
each
the Republican re¬
ceiving the greatest popular vote
primary,
in¬
and
Marte
include
the
interesting point presented is that with respect to
the market action of bank stocks.
result of the national
a
finance
former Secretary
Dallas, have grown considerably." As deposit
growth—"is the main determinant of long-range earnings growth"
—this phase of the study receives considerable emphasis.
Another
Sepulveda, long ac¬
business,
rectors
declined.
has
center
in
Daiichi Mexicana,
a
changes, the relative importance of New York as a
San Francisco and
primary.
Representatives; 3 have been mili¬
tary men; 2 have been cabinet
fallen
as
the
receive
on
let
to
As
banking institutions of the different areas.
Lorenzo
dustry in Mexico, has been elect¬
ed President and
a
Director of
Emphasizing this point is a comparison of deposits shown in
"From the late 1920's through 1939 about 35% of all
deposits was held by the New York District. By 1951 this.per¬
centage had declined to 25%. Meanwlhile other districts, notably
the
of
J.
tive
Average rose by 96%.
others,
submitted
consideration.
facts would
historical
Shull
tional
background
a
results
support
ballot,
Frederick G.
to
serious
merit
all
greatest
that
seem
else
someone
the
Record
above
suggest
would
so,
for
World War II.
these institutions receive a considerable
and
the
in Mexico to
since the end of
trade with Japan
the report.
balloting; select the ten men who,
My
here
purpose
do
to
vote
to
(4)
change should
made.
his ballot for
giving each a
if he
but requiring
on
thus
—
financial
well.
decided
be
choices,
in
reflected
result of these
chance to vote for himself,
present
system
ballots
firm, in con¬
It is the first such
formed
company
economic trends including the geographical
diversification of industry have been the dominant reasons that
some areas have grown faster than others.
This in turn has been
Population
members of the
Exchange, have
that the
Mexicana, S.A.
discussion of the operation of 28 major
a
in the report.
amount of attention
with Democrat
President
pleasure
includes
those in New York City,
and
Senators,
these 144 men
to indicate two choices, and only
siderable
Stock
Japan and the United States. The
new corporation is named Daiichi
principal sections of the country. As many banks
have established a better record of growth and expansion than
—require each of
two
R. L. Day & Co., investment bankers with principal
Street, New York and 111 Devonshire Street,
Wall
14
The study
ballot—Republi¬
secret
By
and interesting studies of
several years has recently
banks in all the
other,
with Republican ballots, and
pressed con¬
the
S.
comprehensive
most
Trading Go.
Co.,
junction with prominent Mexican
businessmen,
has
organized
in
Mexico a trading company to pro¬
mote commerce between Mexico,
Boston.
for write-ins.
Democrats
our
has
land,
U.
Governors,
spaces
cans
highest
offices
offices at
Democratic
all
of
names
(3)
nominees
of
the
the
and
the
of
been made by
says,
nominees;
sible
&
York
New
Bank Stocks
—
bank stocks to be published in the past
will be an im¬
the unsatisfactory convention system.
which, he
system,
new
a
JOHNSON
E.
H.
announced
G. SHELL
By FREDERICK
Chairman, Connecticut
New
Bache
STOCKS
of 2.30% series C-1953 notes mat¬
uring
April
priced at
Purpose
15,
1953,
and
are
d
of
l.
a j j
.
o.
Laird, Bisseil & Meeds
ct
cache Adds to Staff
par.
the
offering
is
to
provide funds required for the
payment at maturity on Aug. 15,
1952 of $120,500,000 of 2.20% series
G-1952
consolidated
notes,
and for making available credit by
Members
(Special to The Financial Chronicle)
Members
NEW HAVEN, Conn.—Abraham
H. Lebenson is with Bache & Co.,
199 Church Street. Mr. Lebenson
was
previously
with
Eisele
King, Libaire, Stout & Co.
&
120
New York Stock Exchange
New York Curb Exchange
BROADWAY, NEW YORK 5, N. y
Telephone: BArclay 7-3500
Bell
Teletype—NY 1-1248-49
(L. A. Glbbs, Manager Trading Dept.)
Specialists in Bank Stocks
Number 5140
Volume 176
.
.
.
The Commercial and Financial Chronicle
(483)
operate and to have confidence in,
National Politics
•
By ROGER W. BABSON
Mr.
Babson, in commenting
recent national
conventions,
matter which
no
on
says,
party wins, the
President is under obligation
make use of best brains in
new
to
both parties. Calls cooperation
parties
of
vital necessity.
a
Republican Party in its Con¬
vention at Chicago selected its can¬
didate for President of the United
'ine
*
Democratic
J'*
also
-
Chi¬
at
Ten
Commandments to guide
ting
we
bounded
are
by the set¬
that marks the limits of
sun
day. But the field of
our
coopera¬
tion is unbounded. If we carry on.
obedient to the laws of God and
Man,
we
which
will enjoy that freedom
comes
with
the
Brother¬
of Man.
What
the
world
needs today
is
cooperation in every walk of life
religion, government, politics,
fori business, finance, and labor rela¬
President. The; tions. Cooperation is the basis of
didate
Golden
of* the
Rule,, and similarly
it is the basis of prosperity. The
candidates
either
party
will not be
ac¬
President who will be elected this
to, coming November will face the
most serious problems. It will be
ceptable
millions of
voters.
The
up
national
elec¬
and
tion
Roger W. Babson
that
will
be
held
will select
didates
United
elected
not
will
of
the choice of
be
Cooperation
Vitally
Now
Necessary
After the majority of the voters
have elected the
him.
to him to cooperate with
'
'
practices
many
countries and
the
view
Economic
and
Research
to
increased
particularly
where the per
is
"
the
masses.
Philip Arnheiter With
Adams &
Division
.
in
sugar
those
•
has announced that it
curtail
its
areas
capita consumption:
Lamborn
points
World
out
Hinckley
—
become
Philip
P.
associated
ley, 24 Commerce Street, in their
trading
department.
Mr.
Arn¬
heiter has been in the trading de¬
partment
of
Laird,
Bissell
&
Meeds, New York City. Mr. Arn¬
5,700,000
heiter has been in the trading de¬
partment
sugar
consume over 100
per
of
Laird,
Bissell
&
Meeds, New York City, for many
years as an insurance stock trader.
pounds
capita, while
Lee
many
'
others
■
sugar
J.
going to
.
Sugars,"
that
to
crop
has
N.
with the firm of Adams & Hinck¬
Pointing out that the United
States,
England
and
Australia
normally
of
is
Arnheiter
•
its study "Greatly Needed—* of
Merchandisers
1953
' tons.
usage
low.
In
NEWARK,
to
to make exhaustive studies of the
barriers
in
result
un¬
International
a
prevail
which
an
Sugar Council,, 1935-1939, annual production aver¬
remedying the aged 33,900,000 tons.
situation, according to Lamborn &
Cuba, the world's largest sugar
Co., sugar brokers, 99 Wall Street,
producer, is now completing her
New York City. Lamborn has rec¬
record
crop
of almost 8,000,000
ommended that the Council add to r
tons, or 1,600,000 tons more than
its organization a Merchandising
last year's outturn. That
country
—
which
raising the price of sugar in¬
ordinately high—beyond the reach
indicated 1952 sur-i precedented figure of
44,400,000
plus sugar production of 2,500,000 ; short tons, or approximately
2,tons, plan to meet in London in: 500,000 tons more than are being
September under the auspices of consumed. In the prewar years
with
on
in
sugar,
is estimated to reach the
con-; son
taxes
discourage abnormal
trade
capita, Lamborn states that
use
less than 20 pounds per
cur¬
Aldridge Opens
SMITHBORO, N. Y.—Lee Al'dridge has opened offices here to
us.
production during the 1951-52
tailment is not the
sea¬
answer.
Rather,
engage
in the securities business.
the
voters—BUT!
millions of
up
to cooperate with
producers,
.
Ways and
developed to
exorbitant
sugar and to
of
World _sugar
cerned with
be
4,.
President
The
States.
us
eliminate
of the can¬
one
President
be
to
to
as
instead.
should
means
on
November
.1952,
factors in raising price of
"beyond reach of the masses."
the south, we are bounded by the
Law of Gravity that keeps our
on
the ground; and on the
increased
Merchandisers of World Sugars,"
—
abnormal trade practices
feet
cago, has se¬
lected its can-1 —in
J- /w S*
Co., of New York City, in study entitled "Greatly
says solution of"
problem of surplus production is not curtailment of output
but development of program to stimulate greater
consumption
throughout world. Cites exorbitant taxes on commodity and
Needed
positive, dynamic merchandising
appioach to the problem is neces¬
sary—that consmption should be
Lamborn &
by1
into paths of righteousness. On
us
Party in its hood
Convention,
~
this(
something. On the north, we are
bounded
by
the
Multiplication
Table, to make us exact as to facts."
On the east,.we are bounded by
the
a
Urges Study of Means to Increase Sugar Use
leaders."
Our progress and growth in
life is bounded on' all sides
west
The
biat.es.
their
11
Where the money goes...
to be Presi¬
man
dent, the cooperation of every in¬
dividual in the United States will
be necessary to insure our
demo¬
of life and our eco¬
independence.
The
new
cratic
How General Mills' sales dollar
was
way
nomic
President,
matter
no
of
divided last year
which
party, is under obligation, on ac¬
count of the present emergencies,
to
make
the
of
use
best
brains
parties.
Members of the Cabinet and heads
in
either
of
the
of
the
leading
various
agencies
of
the
Government should be selected for
their
ability
the par¬
regardless
of
handle
to
ticular
position,
party affiliation.
i
The intellect and ability of de¬
candidates
feated
wasted because
other party. A
should
not
be
they belong to the
cooperative Admin¬
best method of
the
istration
is
meeting
the
international situa-.
taxation problem, the
the
tion,
national
employer
other
debt, and the employeerelationship
and the
problems that will
serious
confront the
new
President. This
is the time for all good people to
the
to
come
elected
our
freedom.
and political
•
/
is
economic.
whoever
of
aid
insure
to
i
The
\
{
-
for
1953 to
Society
1957
The Village, the State, the Nation
are
tion.
■
Foundation of
all the result of coopera¬
The very term
States
"The United
of America" signifies the co¬
operative basis of our national ex¬
istence.
Back
tribal
in
days
the
hold was the right of
might. All tribes were natural
enemies. Not until, men learned to
right
to
other—cooperate—did
capital and
did the
factory system arise.
Not until
capital learned to cooperate with
trust
each
estates arise. Not until
labor learned to cooperate
capital did big business en¬
terprises arise. Men in all walks of
life must learn to cooperate with
and trust each other in order that
the brotherhood of man may arise.
other
'
In
1948
John
Stuart
famous economist,
Mill,
the
1952
Totql Sales..
Earnings.
1951
$468,864,838
......
.
$435,947,827
9,549,466
11,520,508
6,512,539
6,483,738
.
'
Dividends.....
announced the
principle that "growth in the ca¬
pacity for and practice in the habit
of cooperation, is the surest test
of advancing civilization." Newton
D. Baker, when he was Secretary
of War under President Wilson,
said to me: "Mr. Babson, you are
interested in business barometers,
let me give you the result of my
-years
YEAR ENDING MAY 31
of experience. IUis this: the
best barometer of a nation's future
is the ability of the people
to co¬
For
an
illustrated
annual
last fiscal year, write
report
of General Mills'
Dept. of Public Services,
»
»
'
<
1
..
,
General Mills
Minneapolis 1, Minnesota
iiiuiuMMjSSSsiuiu
12
The Commercial and Financial Chronicle
(484)
And the
resolved.
Seaway
in its
Warns
present and
prospective conditions not nearly
Canadian Securities
so
under
is
entirety
formidable
would have
an
undertaking
as
The tentative decision of Canada
undertake
to
the
construction
Lawrence Seaway
the St.
of
project
that
vessels
ocean-going
the Seaway
are
Harry L. Arnold, President of Security Traders Association of
New York, tells Governor measure is
driving financial con¬
cerns out of New York
City.
ity and promise of future devel¬
opment were viewed in a nar¬
not rower framework. On the other
hand, it is only prudent in an
and that almost half undertaking of such importance
despite the inability to obtain par¬
ticipation by the United States
the traffic foreseen is in iron ore.
Government has aroused consider¬
and
able
interest in Canadian
public
to weigh the pros and cons care¬
of the legislation fully."
Minister's remarks,
it is believed to be the intention
from the
business and financial circles. Ac¬
to
cording to the July "Business Re¬
view" of the Bank of Montreal,
Canal
factors
two
have
vital
been
in
bringing the matter to a focus at
the present time. These are: (1)
the recent rapid industrial expan¬
sion
of
Canada,
the de¬
the
deposits
(2)
and
sire to obtain a water route to
the
for
interior
in
rich
ore
Quebec-Labrador area.
the
industrial
expansion,
increasing dependence on
hydro-electric energy, has cul¬
"Rapid
with
minated
more
in
an
power
need
urgent
for
the Bank's July "Re¬
states. "This need
view"
can
best
text
the
From
on a
basis sufficient only to
service
debt
tional
Burns Bros. Denton
met
costs
by
in
ards
iron
still
and
ore
other
this
As
to
the
financial
success
presents
involved, remarking:
paying traffic
will use the system is, and must
remain, a matter of conjecture
until the Seaway has been built
and in operation for a reasonable
"What volume of
C.
Joseph
Cabbie
Open
time.
in unforeseeable ways, and
with unpredictable effects on ex¬
isting communities both large and
Puerto
small.
area.
indus¬
try
Added
to
this
view
are
doubts about the economic value
Introducing the Seaway leg¬
of investing heavily in a scheme
December, 1951, the that cannot operate during the
Minister of Transport mentioned winter
months.
islation
largest concerns of its
Ernst provides a
broad scope of accounting
and
auditing services on a national
basis to clients representing vir¬
tually all types of commercial
activity.
According to A. D. Berning,
partner, "the firm has long rec¬
ognized the growing potential of
of transportation and
in
Ernst &
type,
Rico
We
and
the
Caribbean
cognizant," Mr.
Berning added, "of that area's
expanding economy and of the
need
the
for
which
are
we
can
various
services
furnish."
"Few of the great constructive
achievements of the world would
ir
have
been realized if action had
been delayed until all doubts were
Kane, Hill Join
&
OPPORTUNITY
Provincial
PHILADELPHIA, Pa. — Bache
Co., members of the New York
Exchange, announce the
Stock
establishment
Municipal
LIES
Corporation
Canada's
Institutional
growing industry,
sound financial policies and
George J. Kane, Jr. will direct
the department, and William Pat¬
for
resources
opportunity
office at
Hill
ten
him.
will
For
have
been closely associated with
many
years
we
development
of
this
country, and our investment
A. E. Ames & Co.
complete.
If you are considering Ca¬
nadian securities, why not
write
incorporated
are
us
There
is
no
any way.
Two Wall Street
of
Members:
Boston 9, Mamtu
Toronto
Stock
Exchange
The Investment Dealers'
Association of Canada
330 Bay St., Toronto, Canada
Legislature, but that
the
a
now
or
Harry L. Arnold
pre¬
someone
the State
in
from the finan¬
groups
evident
Government.
that
any
function
anywhere,
need New
in
doubling
the
as
to
financial
State
such
Legislature
an
in
increase.
authorizing
in
excess
of
$235 million
moved
other business
it
does
can
not
York, but rather, New
York needs it.
"SECURITY
On July 1 four
Investment Funds with net assets
It is very
the financial indus¬
try, like
industry who testified
statement
by you.
high authority in
made
TRADERS
ASSOCIATION OF N. Y., INC.
"Harry L. Arnold, President."
Premium Gold Markets
Diminishing
"Monthly Bank Letter" of the National City Bank of New York
gives recent data on fluctuation of free market gold prices.
The
August issue
of
the .,:.
In every country, the best
"Monthly Bank Letter," published way to reduce the demand for
by the National City Bank of gold for private hoards is to fol¬
New York, calls attention to the low
budget and credit policies
recent
downward
tendency
of that will give people confidence
in
their
currency.
Nobody can
premiums on gold in the various
free gold markets throughout the have a good reason for hoarding
world and the significance of this. gold or paying a
premium for
development in reaching the over¬ gold in a country in which the
all
objective of a stable inter¬ currency will remain stable in
.
national exchange situation. Com¬
internal
and
external
value/
menting on this situation the
"As the 1952 annual report of
"Monthly Bank Letter" states:
the Bank for International Settle¬
Paris, now the principal ments says in its review of the
for private gold trading, gold movements and prices over
bar gold which was around $60 an the past year:
"'It is an object lesson for all
ounce at the end of 1946 dropped
to about $49 an ounce by the end and sundry that,
if supplies of
of 1948, reflecting the returning gold are allowed to move freely
"In
center
confidence
the
after
Marshall
if confidence in the national
and
adopted. However, un¬ currencies is restored, these two
der the influence of currency de¬ factors are capable of putting an
valuation rumors the price rose end to gold hoarding, after all at¬
above $50 an ounce by August, tempts at suppression by means of
1949. Renewed confidence in cur¬ prohibitions
and
controls
had
Plan
was
rencies
devaluations
the
once
failed.'"
'over and done with,'
coupled
with more plentiful supplies of
new
gold in premium markets,
sent the price down to new post¬
war
lows, until the Korean in¬
vasion
and
subsequent
inter¬
were
Equitable Sees. Opens
Philadelphia Branch
PHILADELPHIA, Pa.—Equita¬
ble Securities Corp. announces the
the
spring of 1951 reflected enhanced opening of an office in the Fidel¬
Trust Building
fears of the inflationary impact ity-Philadelphia
under the management of Harry
of
rearmament.
More
recently
S. Shevlin, Jr. Mr. Shevlin was
gold prices have again declined,
with the downturn in commodity previously with Reynolds & Co.
Sachs
&
more.
The
new
upsurge
in
prices and more serious efforts by
many countries to control infla¬
tion by balancing their budgets
resort to
and
ures
more
to restrain
active
meas¬
credit expansion.
"Thus experience so far has ap¬
peared to bear
these authorities
out the views of
on
C. M. Cushing Is Now
With W. E. Burnet Co.
Charles McKinnon Cushing, for¬
merly with Paine, Webber, Jack¬
son
with
right along that the 11
premium prices would melt away members of the New York Stock
once gold was permitted to move Exchange and the New York Curb
freely in international markets Exchange.
contended
to The Financial Chronicle)
&
Curtis, has become associ¬
W. E. Burnet & Co.,
Wall Street, New York City,
gold who have ated
and
fears
about
the
value
of
Page has become associated with
With Blair, Rollins
money began to wane. It supports
Eisele
the admission by
&
King, Libaire, Stout &
Co., 177 Church Street. Mr. Page
Ross, Knowles &Co.
The
Goldman,
NEW HAVEN, Conn.—Seymour
formerly with Fahnestock &
Co. and
(formerly Milner, Ross & Co.)
Fifty Congress Street
with
Eisele, King Adds
(Special
was
New York 5.N.Y.
1-1045
associated
very
first?
obligation in
be
Street.
Company.
the
facilities
Broad
They were both for many
with the Institutional De¬
years
investment.
121
partment
CANADIAN STOCKS
NY
an
Department in their Philadelphia
offer unexcelled
WORTH 4-2400
of
NORTH!
wealth of natural
city and state.
national tension turned it up once
Bache in Phila.
CANADIAN BONDS
Government
substantial loss
to this effect be made
business tax and of the New York
Columbia and Canada. One of
of
ance
the
City
America's
clear statement of the the present delicate economic bal¬
a
risks
-
to
revenue
the shortsightedness of New York
cial
advantages of the project to
of
busi¬
by various
ably, Canadians who feel that the
ation of an additional transporta¬
undertaking the project, the Bank tion facility might adversely upset
fi¬
on
dictions
com¬
country's intention to undertake parts of Canada would be remote
the navigation project on her own or even
negative. There are also
if necessary."
those who maintain that the cre¬
a
its present exorbitant rate be de¬
nied at the next session of the
out
un¬
some
country and of the world
We strongly urge not only that
permission to continue this tax at
"Recent
Ernst & Ernst, accountants and
hand, if the volume of paying
of a 2,200,000 HP joint traffic should be so low as to re¬ auditors, have announced a fur¬
power development has been de¬
quire a subsidy by the taxpayers ther expansion of operational fa¬
scribed as the greatest single step
of Canada, this would involve an cilities with the opening of its
thus far toward realization of the
element of cost which, from the new office in San Juan, Puerto
Seaway project.
national standpoint, would have to Rico.
"Canada's
Founded 49 years ago in Cleve¬
application includes be offset against the value to the
an
undertaking to proceed con¬ economy of accelerated develop¬ land, Ohio, the firm has steadily
currently with the construction of ment of a basic natural resource. expanded and currently operates
i n
all-Canadian deep waterway
"There are, quite understand¬ 59 offices in 28 states, the District
to
on
of
ness:
proval
as
and will result in
events bear
ada and the United States for ap¬
doubt
effect
the tax
Puerto Rico Branch
little
the
nancial
Ernst & Ernst
leave
of the
bling by New
City of
has stipulated that
modities as against fixed charges
Joseph C. Cabbie has become
to the power de¬
of the system; and with economic associated
with
Burns
Bros.
&
velopment under any scheme that
motivation always driving toward
Denton, Inc., 37 Wall Street, New
does not
also provide for deep
the cheapest way, time alone will York
City, dealers in Canadian
water navigation."
tell whether the system will be securities.
Mr.
Cabbie was for
As to the second factor, the "Re¬
self-supporting. If it is not so at many years with Abraham & Co.
view" continues: "The discovery
the rates initially set, any attempt as
Manager of the trading depart¬
of rich iron ore deposits in the
to increase tolls may quickly re¬
ment.
Quebec-Labrador area has signif¬ sult in
diminishing returns.
icantly altered the economic as¬
"It has been estimated that the
pect of the navigation proposal.
Seaway would permit the dou¬
The recent filing with the Inter¬
bling of the prospective annual
national Joint Commission of si¬
production of iron ore in the Que¬
multaneous applications by Can¬
bec-Labrador area. On the other
can
adverse
the financial center
as
re¬
York
it will not agree
ir-v-m Montreal to Lake Erie, and
most
a
recent dou¬
national Rapids
from Congress,
have
New York
E.
garding
seem,
construction
of
tinues, which it surely will unless
prompt action is taken, it will
Thomas
therefore, that
the bulk of the carrying charges
allocated to navigation (officially
estimated
at
about $16
million
annually, presumably on the basis
of December, 1950, costs) must be
borne by shipping using the Lachine, Soulanges and International
Rapids sections. The apparent ad¬
vantages of removing this 14-foot
bottleneck
seem
great but with
would
the
tel¬
egram to Gov.
section.
that
"it
sent
Dewey
developing the Inter¬
section of the St. determined; with the available
alternatives
in
other
forms
of
Lawrence River, but the United
States Administration, as distinct transportation; with the price haz¬
Le
30
contemplated
expenditure
Harry L. Arnold, of Goldman, their offices to another state. Last
& Co., New York
City, in week four other funds with assets
capacity as President of the in excess of one billion
dollars
Security Traders Association of closed their New York offices and
New
York,
will
confine
their
activities to
Inc., on July
another state. If this trend con¬
Sachs
his
following
addi¬
small
the
on
Jos. Cabbie Joins
plus
current operating costs
cover
in
Welland
the
in
tolls
charge
Thursday, August 7, 1952
.
Financial Business Tax
appeared a decade ago
productive capac¬
expected to play a major role on
.
N. Y. City's
on
it
when Canada's
By WILLIAM J. McKAY
Dewey
.
White, Weld & Co.
Chas. Scranton Adds
1
"
(Special
to The Financial Chronicle)
NEW HAVEN, Conn.—Bruce F.
Wilcox has been added to the
staff of Chas. W. Scranton &
209
Church
Street,
Co.,
members of
the New York Stock Exchange.
Co.
Mr. Ivar Rooth,
WASHINGTON,
D. C. — Blair,
managing director of the Inter¬ Rollins & Co.
Incorporated has an¬
national Monetary Fund, at the
nounced that T. Kevin Kelly has
conclusion last September of that
become
associated
with
their
body's four-year struggle against
Washington, D. C. office, 815 Fif¬
the premium gold trade, that—
teenth Street, N. W.
'The only dependable way of
getting rid of premium gold mar¬
With Waddell & Reed
kets and private hoarding of gold
is to create economic conditions
VALDOSTA, Ga. — Melvin E.
under which the private demand Thompson
is with
Waddell &
.
for
gold will become negligible.
Reed, Inc.
Volume 176
Number 5140
.
.
The Commercial and Financial Chronicle
.
13
(485)
Gas
Industry to Spend $5.6 Billion in Next 5 Yrs.
distribution
gas
facilities,
previous five
will
exceed
that
party enters the
Securities Salesman's Corner
of
nation's
distribution
gas
and
pipeline industry will spend
about $5.6 billion for construction
of
new
of
plant
facilities
in
and
expansion
the
five-year period
extending from 1952 through 1956,
according to the American Gas
Association.
This
construction
expenditures of $5.1
billion
beyond
the
are
pipeline
and
large
high
record
in
the
to The
Financial
Expanded
with
years,
in
offices
the
count
types of
about
will
gas
000,000
and
M.
in
toward
$150,000,000
production
will
and
go
reports
that
and other materials the gas in¬
dustry expended a record $1,461,500,000 in 1951 for construction of
This
exceeds
sum
the
previous peak established in
1950 by $263,200,000, or 22.0%.
Indications
be
that
are
P.
because
and
there
of continued
material
will
E.
Mr. Kirchner is
Secretary of the
Denver, an affiliate
the National Security Traders
third
greatest
an¬
expenditure in gas industry
history. A number of major pipe¬
completed in 1951 and
were
augmented
capacity of the na¬
tion's pipeline system in 1952 will
be
accomplished
to
a
greater
extent
than
stallation
pressor,
before,
of
through
additional
in¬
com¬
rather than pipe facilities.
Current plans indicate
record established in
broken
in
1953,
construction
line from
the
natural
a
from Canada
serve
that the
"save"
can
occurs,
will
you
effectiveness
your
and
Sales
Coast
(Special
to The
pipeline,
the
Chronicle)
Euttrick
with
Mass.
has
Wood,
State
become
the
in
partment
Laidlaw
Mr.
&
Co.
Co.,
Buttrick
It
time and
we
salesman
know
discuss
that
is
Prior
it
helps
Otherwise
seen
you
And
me.
75
will
conserve
you<
get through thii
can
office
of
see
him in about five minutes.
there
.
if
simple
saying
does
to
sug¬
is—-"Mr.
So
I
more
wonder
Mr.
see
I'll wait;
and
The
here
minutes.
you'd prefer
Jones
would
or
ruption
I
the
comes
faced
work
moments,
sale.
a
right
have
his
All the
example,
just asked
verification
form.
pen
were
can
us
say
your
advance
can
be
happen to
tation
a
when
occurs
decides
that
things that
good sales presen¬
he
the
the
minutes.
either/or
Ask
questions
wait,
Prospect
countered
inattention
Prospect
deals
his mind
something else
ard try
and make a
date for another time.
Then
goes
there is the prospect who
on
know
a
monologue.
him.
The
All
Substantial
completion
to
way
to handle
platform-type of prospect is to
advantage of something we
must do—pause and breathe!
all
It
does
not mean that you must
polite. Wait until he pauses
not be
then quietly interject—T can
and
your
You
are
As
matter of fact I'd like to hear
a
point, Mr. Robertson.
absolutely right on that.
about
more
it, but I know you'll
be
impatient if I don't get on as
to why I am
here/ " You will not
be able to use the foregoing ver¬
He calls for
Mr.
He
something like—"This is Mr.
up
.
.
you
interrupted
and
you
ask
right ahead with
your
order."
During the minute
or
whPe
so
you are waiting for the prospect's
associate, simply ask—"Mr. Allen,
wonder if you'd mind if I'd in¬
I
This advertisement is neither
of such
sus¬
these securities.
high level of anticipated
expenditures, estimated at $1,206,000,000 in 1954. Expectations for
the fourth and fifth years of the
period reveal decreases, though
prior estimates for the
derstated
more
The
un¬
subsequent
actual
ex¬
penditures.
Companies
billion
accounting
the
of
billion
total
have
concerning
plans
construction
for
$2.1
anticipated
indicated
their
financing their
These
programs.
companies indicated they expected
to obtain 34.6% of the required
funds
internal
from
*
word
of
*
about
*
the
America.
Sales
This
tion is doing
some
in
improve
excellent work
their
to perfect
efficiency. I
they have something
SAN
FRANCISCO, Calif. — J.
Co., 404 Montgomery
Street, members of the New York,
San
depreciation accruals. Of the re¬
maining 63.4%
to be obtained
from outside sources, about 46.0%
will be realized through long term
19.4%
from
common
or
Three With Income Funds
(Special to The Financial Chronicle)
NEW HAVEN.
Conn.—Philip N.
F.
Maltby and
Nelson H. Palmer have joined the
staff of Income Funds, 152 Tem¬
ple Street.
Costello,
Lucius
projected
1952
are
mitted
to
based
A.G.A.
representing
revenues
expenditures
on
of
the
reports
by
over
and
in
other
a
of
total
Stock
known
in
circles
for
West
28
solicitation of offers to buy
any
are
offered
as a
of
speculation
(A Delaware Corporation)
Common Stock
Coast
financial
Price: $1.00
per
years.
Rejoin Faroll Co.
(Special
to The
Financial
CHICAGO,
Copies of the Offering Circular
Chronicle)
111.—George
your own
H.
Investment Dealer
or
Share
may
be obtained from
from the undersigned.
Dunn and Dean S. Voorhees have
rejoined
the
staff
of
Midwest
Stock
Dunn has
the
of
Faroll
&
New
York
Israel &
Exchanges.
past
Mr.
was
as
MEMBERS
Mr. Voorhees in
of
NATIONAL
ASSOCIATION
SECURITIES
DEALERS
Kan¬
111
Manager
Company
UNDERWRITERS
recently been associated
kakee Manager.
the
and
Faroll
industry.-Fore- & Company's Fairbury, 111. office.
nor a
Trading
Department, in charge of Elmer
Weir, who joined the company
recently.
Weir
has
been
well
sub¬ with Daniel F. Rice & Co.
companies
95%
sell
to
L.
members
The actual expenditures in 1951
offer
offering is made only by the Offering Circular.
Sunflower State Oil Co., Inc.
Company, 209 South La Salle St.,
preferred stock issues.
and
Francisco
Exchanges, has opened
marily undistributed earnings and
debt and
&
very
valuable to offer those engaged in
the sale of securities.—(J. D.)
300,000 Shares
Barth
Insti¬
organiza¬
salesmen
assisting
Elmer L. Weir
pri¬
sources,
an
These Securities
re¬
have consistently
years
tying in
with
says
conversation.
your
tute
extended your Thomas, he's with the XYZ Com¬
then the tele¬ pany; he's trying to sell us some
." This sort of introduction
Without hesitation
you
can
readily see is damaging.
exactly where
either
the
us
Institute
Southwest, to
contributes
of
Sales
take
someone
enters, and
his damage.
be
can
with,
"Mr. Robertson,
you agree with that, don't you?"
If this fails, tactfully suggest that
believe
says
the
"Mr.
as
you want me to
would you prefer to set
or
the
order
such
very
of
another date."
up
and
for
one
pros¬
a
Robertson, would
A
individual he wants, and you
After a minute or so,
newcomer
and he
the
pect will have to leave in
few
prospect
needs
else in the discussion.
you
that
have
rings!
pick
prospect's office
in
both wait.
the prospect
on
the
told
batim, the skill is in
something the prospect
Prospect's Associates
One of the deadliest
time and
again—"If you'll verify this, we'll
go
that
for signature,
phone
you
You
let
with
The
interruption occurred.
For
Either
Institute.
the
at
have expended
you
continue?"
I
of the worst
one
into
is
see
problem—you'll
find it works," suggests the Sales
was
telephone inter¬
at
that
con¬
by the sudden de¬
parture of the prospect, due to a
meeting to which he has been
called, or when the salesman gets
you
still in control. "Use
technique when you are next
this
left.
.' does this job."
.
.
phrase —'As
Sometimes
the
to
injustice.
an
statement
five
now,
conver¬
gap
Other unavoidable losses of
trol are caused
suggests: "The best
than
through.
no
to base his approval as you have."
the
himself
you were cov¬
is
That way Mr.
will have the
same frame of reference on which
the salesman allows himself to be
lost, unless you do two things:
was
manager
of the municipal
(1) You must talk first. (2) You
bond
department
for
Whiting, must
bring the prospect back to
Weeks & Stubbs.
the exact point you were when
Gept. for J. Barth Go.
If
way you are
.
newcomer
rushed he loses control ard
demonstrate
the trend of the
up
sation
have told him to
you
bring
up to date.
Just
say—"Mr. Robertson, I wonder if
you'd mind if I cover the major
points I've been over with you?
the
on
secretary comes in
and says, "Mr. Allen, Mr. Jones
is waiting to see you." The pros¬
pect is likely to reply that he will
pick
he
Weir Heads New
joining
your
ask
you can see he has
the
prefer
possible
de¬ close
of
thereto
1
Secretarial Interruptions
Often
attention.
came
im¬
much faster."
was
municipal
of the Boston
&
I.
associated
Struthers
Street.
formerly
Herbert
—
warrant
the Pacific Northwest.
projects
$5.6
have
minutes?
tained
mote
to
you.
In this way you help the prospect
The
BOSTON,
too,
.
Financial
pipe¬
area
his
for
I
know you want to give this your
full attention. I wonder if you'd
Institute
compete
to
wouldn't
the
asking your secretary to
hold your calls for the next few
suggests,
quote: "Whenever a telephone call
interrupts your sales discussion,
you
have
we
portant
that
Prospect,
mind
Telephone Interruptions
The
Institute
what
accordingly.
power
go
Wood, Struthers Go.
total
as one new
Gulf
or
this
back to the point
ering before the call
H. I. Bultrick With
be
estimated
when
gas
you
Sales
say—"Mr.
Allen, this will really take
the Middle West and the initiation
of
why this of¬
Al ways,
when a prospect puts
down the telephone after a call,
1951 ma.y
expenditures
well
as
increase
earning
were
presentation it is suggested by the
gested
$1,681,000,000. This estimate re¬
for major expansions
of existing systems to be started
1953,
of
that you expect his full attention.
flects plans
in
number
a
Then
Association.
alloca¬
nual
lines
If
effort when
you
the
When
interview.
an
reasons
happens.
comments
of
difficulties.
estimated expend¬
iture of $1.17 billion in 1952 still
the
of
however,
unavoiaable
and
do
you
other than
prospects at times receive
telephone calls so frequently that
some of
it is almost impossible to make a
why sales¬
reasons
control
are,
actions
place
one
Bond Club of
However, the
represents
There
the
anything
using at the moment of the tele¬
phone call.
formerly with Boettcher and before I continue?' If this is done,
Company. Mr. Jaquith was with it helps in part to stop the
pros¬
Bosworth, Sullivan & Co.
pect thinking about the call while
temporary slackening
of
construction expenditures during
1952
lose
have made.
is
use
closing state¬
covered
we
avoiaaoie
men
Robert
Kirchner,
a
tion
the
week
not
were
Association
facilities.
Last
This
Jaquith, Sec¬ and particularly if the call is of
retary. Mr. any duration, it is a wise move to
Carroll
and ask the
prospect—'Do you have
Mr.
Kirchner any notes to make on that call
Robert Kirchner
storage
despite shortages of essential pipe
new
are
Richard
facilties.
The
Of-
Treasurer; and
estimated $302,-
an
by writing
ever
ment you
Carroll, Presi¬
dent;
Expanded distribution facil¬
ities will cost
securities
Howard
construction in the next five
new
years.
be obtained
can
ar¬
interviews from otherwise falling
into a complete waste of time and
ficers
ac¬
$500,000,000
Sav¬
business.
ad¬
an
the
Building
engage
in
the
$82,000,000 estimated for
for
entire
to
$415,000,000 allocated
other
The
ten
underground storage expansion.
All
Interview."
ings
five
next
in
Midland
estimated
an
to production facilities and
ditional
permission
me
presented
in
release
to
their
recent
them at Norwalk, Conn—-J.D.
with
ve
about
your prospect if he
would mind your reviewing what¬
Or repeat whatever
material
use
ticle
Chronicle)
formed
transmission
cost
$3,075,000,000
granted
of Amer¬
branch of the
gas
will
Institute
members, entitled, "Controlling
Jaquith Formed
000,000 in its five-year expansion
program, compared with $4,560,000,000 spent
in the
1947-1951
facilities
has
their
DENVER, Colo, -Carroll, Kirchindustry expects to spend $5,099,- ner
&
Jaquith, Inc. has been
period.
The Sales
the
gas
to
Then
PART 2
to
(Special
natural
Controlling the Interview
ica
Carroll, Kirchner &
Company. I
us."
distribution
companies.
say—"Hello,
is Tnomas and
and he feels it has sufficient
.,
interest
result
Association's Bureau of Statistics,
among
a
substantial number of
industry.
The
1952
special annual survey by the
a
.
.
the past five years, a
over
previous
with
compares
of
with the XYZ
been tening Mr. Robertson
years.
casts
my name
I'm
By JOHN DUTTON
The
When the third
room
Mr.
American Gas Association reports
outlay, represented mainly
by natural
troduce myself?"
New York
Broadway
DIgby 9-3484-5-6-7
6, N. Y.
Financial Chronicle
The Commercial and
14
rearmament
tion's
Eisenhower Lists Proposals
talk
In
Veterans
to
In
brief address
a
the
Veterans
of
D.
on
to
Wars
each
at
delivered
million
Aug. 5, Gen.
Repub¬
Eisenhower,
ana
laid
down
ten
"prop
and
1
o sa
shaping
tional
policy,
said
"are
attainable."
The
the
of
text
proposals
address
the
follows:
.
Thursday, August 7, 1952
.
undone
Under the
declines.
dustries
cur¬
"stretch-out" plan, Air Force
rent
treat
can
everyone
in
come
we
contact
of
in¬
of
group
every
strength reaches
maximum for which we can
good
it
our
other
index
America?
for
Ladies and gentlemen,
to make posal,
order
in
worthy
the
serve
is
there is no
which
by
pro¬
any
other yardstick by which
idea in the foreign or
no
strength will rise to 143 wings
the Navy's
by
leave
$61
billion to be carried over into
1954
fiscal
"(7) To
her policy,
strength,
certain that that
and to be
appropriations which
fiscal years,
later
and
will
That
1953.
added to any
henceforth be made. Under
consider¬
may
these circumstances, and
ing the present state of interna-?
tional relations,
defense expen¬
really
the
domestic
field
should
ever
be level off until 1953, and even then,
possibly have any use.
measured.
the overhanging threat of all-out
"(2) To win a just and lasting
"(8) We can insist on restoring war may result in an annual out-,
peace
secured
by
the
entire
lay of $40 billion for maintenance
honesty to government.
strength of the free world. Each
of our military strength.
"(9) To insure, by means which
of us can help to see that that
Obviously, then, the interme¬
guard our basic rights, that those
peace is not violated.
any
one
To build a prosperity not
on
war.
Each of us can
who
take the great resources of
country, the great geniuses
based
help
this
of
government
in
tion.
"(3)
people,
our
have
scientific
our
serve
can
a
ditures
for
future
better
and
himself
begin
not
may
makers
seems
assured, ^ under
,
conditions.;' And
world
if
even
to
of the airplane
term future
diate
present
To revive in every Ameri¬
the faith that he can achieve
"(10)
a
to
are
dedica¬
Americans of loyalty and
make certain that we
prosperity that brings to his family."
brains,
is
there
improve¬
some
the international picture,
ment in
pronouncements
by
leaders
of
both political parties indicate that
it will be a long time before we
again relax our air defenses.
Continued
jrom
Reflecting these factors, recent
market action of aircraft equities
2
page
has tended to become stronger. As
The
In
agination and other qualities which
should permit him to equal or exholdings and ceed the excellent record of his
dated June 20, 1952,
Southern Pa-
give? its land
their
distribution
"As
of
follows:
predecessors.
.
31, 1951, the com4,064,000 acres of land
Dec.
pany owned
located
as
as
chasing
follows:
'
■
nnn
o
1f?1
1
Nevada
6^3 000
Utah
175 000
Oreeon"
1
gas
—
common
for
stocks
pur-
at
the
3000
cific offers adequate inducements.
Whether on the basis of priceearnin§s> yield, competitive position' management, financial posi-
i o'nnn
19,000 tion> probable expansion of traffic
in Us optrating territory or possi.
rr*u7TiCftllT^V~
Lower Calif. (Mexico)Total
reasons
present time, and Southern Pa-
Acres
Location—
"In
affirmative
4,064,000
'
'
""ties connected with its large
land
holdings,
Southern
Pacific
addition, it has reserved oil, has advantages which exceed those
and mineral
heretofore
rights in 590,000 of most alternative investments,
acres
sold."
stocks
arid'others
leaders
In
Vultee
Consolidated
opinion
my
is
those
of
one
which,
thus far, has been
the group.
mine,
is
there
for
respond
proved
lagging behind
I can deter¬
one
overbearing
So far
as
stock's
this
failure
to
marketwise to the im¬
outlook for the aircraft
industry. That
reason
is
a
fear on
that the
en¬
their
in
filing
represents the first
development
and
space,
research
Convair
which holds promise for
diversification
into
ultimate
non-aircraft
fields.
In
1949, Convair built and flew
Air
Delta
Wing
built
was
under
This
contract.
Force
aircraft
type
in
an
of
in
the
management's
has
exceedingly
great
promise in the field of supersonic
speeds. Out of this project and
subsequent research and develop¬
ment by the company have come
additional projects, about which,
for
security
reasons,
virtually
design,
opinion,
nothing
be stated at this time,
can
that
be
for
contracts
not
the
extended
will
B-36
their
beyond
all
war-born
this
activity,
the company is not neglecting re¬
search and production of peace¬
time products. The new Convairthe older Convair-
Liner 340 and
Liner
lines
240
all
and
Convair had firm
1952,
for
orders
air¬
on
the world. At Feb¬
over
1,
ruary
service
in
are
149
the
of
340
said
has
management
liners,
when all of these orders are
will
Convair-Liners
be
that
filled,
serving
airlines than will any other
more
type of postwar transport aircraft.
tion than
to
less
discre-
industrial organizations
period of
turbo-prop
one
type
Corp., the first commercial
in the
sources,
on
United
States.
airliner
for
the turbo-prop,
engines
since it is felt
and not jets,
turbo-props,
malcy
in
in-
tric
Company,
tern^tional
employment relations and other
important managerial
decisions,
Nevertheless, management can by
relations,
the
the engines.
might not look
Convair
no
prices
means
for
their
be discarded.
the operations of
For many
Southern
assigned
particularly
inviting, may,
under
present
con-
nical
dition
of
war,"
take
Heller
Stanley
the
Pacific have indicated sound tech-
aircraft
years
and
financial judgment
on
the part of its officers, and today
the road is in prime condition. It
a
fair assumption that continued
good management may be antici-
lated, particularly
as
has
been
developing
one
of
the' first
in the research and
actively
one
de¬
a
more
"cold
or
attractive
result of this early start, Con¬
solidated
the first
the
which have taken
Research
on
because
new
of
specu¬
the
Na¬
to
be
Vultee
is
building
now
plant in the United States
constructed
exclusively for
production of guided missiles.
extremely
in
this
field
productive
has
of
been
results
for
end
to
year
November
30, 1952, may go over
$400 million mark, compared
the
with $322 million reported for the
preceding
the
last
rising
commen¬
a
earnings, prof¬
impiovement
$3.27 per share earned
show
may
over
prevent
increase in
surate
its
Although
year.
rates will
some
the
and
year,
dividend
annual
regular
should
$1.60
be
very
adequately covered.
At November
30, 1951, the com¬
pany's backlog of signed contracts,
letters
of
final
intent, and contracts in
stages
of
negotiation,
approximately $900
Despite the nearly $200
amounted
million.
to
million of sales turned out
to
six
months
unfilled
year,
approximately
orders
rose
billion dol¬
incoming
that
still in
are
in the
current
orders
one
indicating
lars,
the
of
of pro¬
excess
duction.
Of course,
these so-called "back¬
can be very mislead¬
ing, particularly in the case of
defense
production.
Contracts
log" figures
for
undertaken
the
Government
subject to cancellation at
are
time,
costs
work
done until the time of
cellation.
offer
of
rise
figures
backlog
clue
some
may
the urgency
to
as
can¬
the
Nevertheless,
fall
and
any
suitable provision to
and
profits on the
with
cover
with which products are required
and
inkling
an
will
plans
what
of backlogs at
ance
by
reported
ure
of
require
well
the
for
the
present
company
the huge fig¬
Convair
augurs
on
both of
The very nature of the
aircraft
company
counts.
industry makes Conwair a specu¬
lative security. However, it is my
been
greatly over-rated, and with
expanded sales and earnings like¬
ly
the medium term, I do not
over
believe
the
that
current
stock's
phase in the development of air¬
lines travel.
might
Convair's
balance
Since that
sheet
the
at
time, the need for more
with which
funds
to
conduct
gard
the formation
Since
idated Vultee
in
sult of
a
Aircraft
merger
Vultee
fortunes
sales hit
an
1946.
to
industry.
to
Net
$13.7
in 1944, only to
million
with the experience
increased
com¬
tended
in
Since that time, and
ments of
re¬
all-time high of mere
than $960 million
shrink
the
Inc.,
have
of the
follow those
the
as
the
fiscal
in line
of other seg¬
industry, sales have
steadily,
and
re¬
be
a
very
what I be¬
considerable
for capital apprecia¬
opportunity
tion, and its common stock repre¬
sents the security I like best at
the present time.
Kingsley Barham Director
Kingsley Barham, III has been
to the Board of Directors
elected
Research, Inc., Miami
development com¬
of Industrial
and
research
it
pany,
R. F.
announced here
was
by
Industrial
Sadler, President.
Research Inc. manufactures a cat¬
cap for automobile
batteries,, the Hydrocap,
alyst
storage
and is
undertaking extensive research, in
association with the University of
Miami Research Laboratories, of
a
of
number
the
same
member of
ing
firm
related
field.
Mr.
products in
Barham is a
the investment bank¬
Barham
of
and
Cleve¬
land, Coral Gables, which under¬
writes
distributes both retail
and
and
wholesale, whole issues of the
securities of various corporate in¬
dustries.
Mr.
Barha/m
formerly
was
partner of de Framery and
a
Co., member of the San Francisco
Stock Exchange, and
has been
as¬
earnings
sociated
with the P. W. Chapman
Co. and
between Consol¬
Corporation and
Aircraft,
pany's
1942,
normally
offers
now
lieve
to
not
attractive speculative
an
ex¬
Consol¬
of
perhaps
as
medium,
ing credit from $50 million to $75
idated
was
manufacturers to embark
aspect. I believe that particularly
appropriate examples of securities
the road has lative lustre
of
velopment of guided missiles. As
semi-peace,
on
which
duty
fiscal
price, around 18 V2, fully reflects
its potentialities. It therefore fol¬
lows
that
a
company
which I
will constitute the next important
although
all
of these
Convair would be ready: million,
begin production of its new funds have not yet been drawn
products,
as
current
pro¬
Sales
opinion that the B-36 problem has
well
to
research
that
manu¬
informed
Convair will concentrate
According
its
aircraft
turbo-prop
time,
in conjunction with General Elec¬
nor-
the
into
these
Motors
.
far
year.
powered Convair-Liner to General
inappropriate
STANLEY HELLER
YB-60,
an
all-jet,
swept-wing down.
to assume that important mineral Partner, Stanley Heller & Co., N. Y. C. adaptation of the B-36. Further¬
Book value, based on the com¬
developments will occur in this
Members, New York Stock Exchange
more, it may be said that Convair pany's latest
balance sheet, ap¬
is well along in the design of even
huge acreage belonging to Southand New York Curb Exchange proximated $17.58 per share of
era
newer and more powerful strate¬
Pacific, it would be equally c#ns0|jda,ad VuHee Ajrcraf,
stock
outstanding.
However,
it
improper to reach the conclusion
p
"
"
gic weapons, so that it is quite should be noted that the com¬
that oil or other minerals will not
corporation
likely that the company's compet¬ pany's plant, property, and equip¬
be found. A recent study of SouthIt seems obvious to me that itive position among American ment, which originally cost $22,ern Pacific comments as follows:
one's choice of securities cannot airplane
makers
will
be
kept 500,000, have been amortized and
"Whether any of this property will remain a static thing, and that an secure.
depreciated to a net figure of
ever become important oil bearing
investor's conception of what conHaving considered what I be¬ approximately - $7,900,000.
This
lands is a matter of speculation, stitutes a good
lieve to be the most serious objec¬
company owned plant, consisting
but the fact that oil companies are medium
for
tion to the stock, I think that it of approximately 2,500,000 square
active in areas reasonably close to his
would be well now to enumerate
funds
feet, of floor space, completely
some of the more constructive as¬
Sopac's lands, and that geological should
be
tooled and equipped, would cost
surveys indicate that some of the
flexible and
pects. First, consider the com¬ around $40,000,000 to replace. If
company's California and Nevada adaptable
t o
pany's research. Consolidated Vul¬ the plant, property, and equip¬
tracts are in a favorable region for new conditee has been selected to build the
ment were to be taken at this re¬
first plane in this country to be
possible o i 1 discoveries suggest t i o n s
Complacement value, the consequent
that at least the prospects of such mitments
powered
with
nuclear
energy. book value of Convair's outstand¬
discoveries are promising."
This project is to be carried out
which,
in
a
ing stock would be about $31.10.
have
come
this
late
already delivered
among
While it would be
Railroads
facilities
new
duction
to do in the future. The mainten¬
rank
panded operations has resulted in
to
opera¬
aircraft
Convair's pio¬
neering efforts, and turbo-prop
engine applications of the Convair-Liner have been ordered by
the Air Force. The company has
powered
Turbo-prop
also
the company increasing its bank¬
However, the same
said that by that
as
fiscal
-In
current
expanding and will ex¬
even more rapid rate
an
under way
require extensive new activity by
Convair in production phases.
out this
fear.
company's
are
pand at
first
already
in this connection will
present 1954 expiration date bears
announcement
The
tions
except that the program
close
of
the
last
fiscal
year
company's principal product, the showed current assets of $88,398,B-36
bomber, is nearing obso-' 000, and current liabilities of $57,lescence. And a recent announce¬ 400,000, leaving net working cap¬
ment by
the Air Force, stating ital of approximately $31 million.
the part of many persons
point.
tax
factured
laggards.
reason
As already stated, there should
be
become
have
recently installed a new President,
who has sound training, vigor,'im-
to stockholders,
statement
a
cific
be re-
during the current year.
sumed
in all group advances, some
Security Hike Best
that dividends will
bility
reductions
dous
have recovered from the 1946 low
a
companies to effect tremen¬
world. It
We
an
as
people, yet make the test of every
spiritual, creative and material
strength. None of us to leave any¬
thing
quite
able
the
neighbor
our
whom
terests
To in¬
American's
crease
plentifully forthcoming, and
likely to continue, even
beyond the time when the busi¬
ness
of other war-supported in¬
to be
called
instrument
machine. This instrument will
first
Eisenhower
D.
D.
"(1)
a
high taxes.
in
contained
make America's prom¬
support now appears,
makers. That
electronic
charactron, which may find com¬
mercial application as a business
air fleet to 16 groups
mid-1955. Approximate cjuras
an
equal and in doing so we rent strength of the Air Force is
will be elevating ourselves.
90 wings, and of the Navy air arm
"(5) To strengthen and extend 12 groups.
every
measure
for the security
It has
been estimated that a
and welfare of our people.
total of $120 billion is now avail¬
"(6) To protect
the earnings able for defense and foreign mili¬
and
savings of the people from
tary aid, of which not more than
the double toll of high prices and
$59 billion will be spent during
of'^which
he
this
so
are
for
forward
carry
to come, among them
the
with
na¬
all
it
industries
major
our
will
many years
and
equal.
s
for
a
in
develop
equality
treat
can
aspira¬
tions"
that
living fact for
every
single American. In this,
each of us can have a part. We
of
ise
Presi¬
dency,
us
if any
dependent upon government busi¬
ness and support as are the plane
is
To
Party
nominee for
the
of 156
most
to
of
which
an
It is well known that few,
country.
•
lican
of
the
people
possible
is
one
every
air¬
of
craft manufacturers.
10-point
national policy.
a
are
program,
the equities
by
afforded
Foreign Wars he outlines
of
Foreign
Los Angeles, Cal.
Dwight
and Aspirations
of "positive objectives" for
program
is
.
(486)
August Belmont and Co.,
New
York City.
Joins Lyons &
(Special
BOSTON,
Young
II
has
with Lyons &
Street.
with
Shafto
to The Financial Chronicle)
Mr.
Blair,
Mass.
—
become
Frank
L.
associated
Shafto, Inc., 79 Milk
Young
Rollins
was
&
formerly
Co.,
Inc.,
Bache & Co. and du Pont, Homsey
& Co.
\
Volume 176
Number 5140
.
.
.
;v
»?«f:)i\ciiv«vai^rr^i
The Commercial and Financial Chronicle
15
(487)
State
Bank
sequently
of
News About Banks
Detroit, and sub¬
the
tional. Bank.
former
He
as
CONSOLIDATIONS
of
manager
Holden office.
NEW
BRANCHES
NEW
OFFICERS, ETC.
Bankers
and
REVISED
First
joined
troit Bank staff in
De¬
October, 1934,
the
He
Na¬
The
Hamiltonmade
was
man¬
of the Grand River-Redford
ager
office in April, 1936, and has since
served in that capacity. Mr. Shep¬
CAPITALIZATIONS
herd
Seaboard Air Line
employed by the First
was
The
National Bank in
;
The election of Mario Diez,
a
Director of Colonial Trust Com¬
of New York has
pany
nounced
Arthur
by
President
the
been
S.
an¬
Kleeman,
f
o
banking
house.
Diez
Vice-
is
i
The
Public
National
Bank
September, 1923.
March, 1933, he was employed
On
Gersten, President of
in the discount department of The
and
up
final
step toward cleaning
Seaboard Air Line's debt struc¬
ture is
now
to be taken. The
com¬
available for
to
dividends, amounted
$3,067,000 last
restrictive
nated
in
year.
The other
provision to be elimi¬
the
has asked for bids on $25
refunding was the
of
new
25-year deben¬ special debt retirement fund equal
tures, the proceeds to be utilized to any amount in excess of $2.00
1942.
ment
of
Raymond J. Clark to
for redemption of the remaining paid on the common in any one
Vice
President
from
Assistant
At the present $5.00 divi¬
The Exchange National Bank of balance if the Income 4V2S, 2016. year.
Vice-President. Mr. Clark is iden¬
The new bonds will carry fixed dend rate this fund required pay¬
Colorado Springs, Colo., announces
tified with the credit and business
interest (rate to be determined by ment of $2,550,000 annually. Even
the promotion of the following on
development
activities
at
main
the successful bidder) as opposed the maximum annual sinking fund
July 11:
office.
Other
main
office
pro¬
to the contingent interest on the on the new bonds, which will re¬
Jasper D. Ackerman, to Presi¬
motions
are
Thomas
J. Eichler,
bonds to be retired and they will tire them by maturity, will be
dent; Grover L. Scott to ViceAssistant Cashier to Assistant
have a sinking fund sufficient to considerably less.
President; George L. Beardsley to
Vice-President
and
Raymond J.
retire the entire issue by matur¬
Aside from the financial prog¬
Ludwig, Supervisor of Credit De¬ Vice-President; Grant H. Winne ity. They will not be convertible, ress made by the road in recent
to Cashier; Norman A. Hoff to As¬
partment to Assistant Cashier.
as
are
the
present bonds, into years there have been other con¬
sistant Cashier and Auditor; and
*
*
*
common stock of .the
siderations
contributing
to
the,
company.
Roberc
D.
Copsey to Assistant
Seaboard has come a long way spectacular market action of the
Henry C a p 1 a n, President of Cashier.
since its emerged from receiver¬ common stock. The road has had
Mr. Ackerman has been asso¬
Henry Caplan, Inc., one of the
ship a few years ago. In addition one of the best traffic and revenue
principal
Chrysler - Plymouth ciated with the bank since. April,
to equipments,
it originally had trends in the industry in recent
dealers of New York
City, has 1916, and served the bank in suc:
$32,500,000 of fixed interest debt, years,
largely
reflecting
the
been appointed a member of the cessive
capacities leading to his
characteristics
of
represented by First Mortgage 4s. growth
large
Advisory Board of the 84 Broad¬ election as President. Mr. Scott's
These have been replaced by a parts of the service area ahd the
way
(Brooklyn) and North Side association with the bank dates
smaller amount ($29,390,000 as of consistent
development
of
new
Offices
of
Manufacturers
Trust from July, 1921; he became Assis¬
the end of last year) of new First traffic sources. From an earnings
Company, of New York, it was tant Cashier in 1940 and Cashier
Mortgage bonds with an interest standpoint this traffic growth has
announced by Horace C. Flanigan, in January, 1950.
Mr. Beardsley, rate of
only 3%.
The Income been augmented by the improve¬
President of the trust Company.
formerly President of the West- bonds were
in
operating
originally issued in ment
efficiency
*
*
*
cliffe (Colo.) State Bank, started
the amount of $52,500,000. By the brought about by the large sums
The
capital of the Mansfield with the Exchange National Bank end of last year this had been cut spent on property improvements
Trust Company of New York,
nounced
Aug. 4
on
the
an¬
Detroit Bank, and named manager
that
department : in January,
"of
advance¬
pany
million
-
Mr.
President
E. Chester
as
n
charge of Co¬
•
lonial's
Inter¬
national
sion
Divi¬
and
was
instrumental
in
the
found¬
ing of that de¬
and
partment
its
subsequent
world
wide
-
development.
He
Mario
his
began
D'ez
bankingcareer
with
Banco
Caracas
de
and
in
Venezuela
has
had
many
of diversified experience in
financing of world trade. Mr.
years
the
Diez has been
of increased
leading exponent
a
multilateral
trade
as
■
prime force for peace. A fre¬
quent
traveller to the
world's
principal trading centers, he has
also devoted himself especially to
a
emphasizing
United States
the importance of
buying abroad if they wish to
sell
abroad.
Only in this way,
contends Mr. Diez, can
overseas
business
friends
among
men,
the
of
enabled
to
United
the
earn
States
dollars
be
they
need, to continue as customers of
this
country. To
nial's
this
of
awareness
aid in fostering
concept, Colo¬
International
Division
pe¬
publishes international
monographs which describe trade
possibilities with various coun¬
riodically
tries.
The
distributed
world
tion
the
Division
tional
is
in
interest
stimulating
$1,200,000 from $600,of July 16, as a result of a
as
stock
dividend of
July
A
former location of The West
increased its
interna¬
understanding
Courier,"
a
000
to
dividend
stock
item
world.
Trust
meeting of the
of City Bank
Company
of
New
York, Alfred H. Howell, formerly
an
Assistant Trust Officer
pointed
was
ap¬
Vice-Presi¬
Assistant
an
*
The
New
the
of
Irving
in
York
its
staff.
William
Edwin
Plate
B.
Vice-Presidents.
merly
1934
and
Mr.
the
has
Smith
and
named
Smith, for¬
Vice-Presi¬
Irving
had
1
members
were
Assistant
an
joined
dent,
M.
Aug.
on
nine
of
of
Company
announced
promotion
in
staff
extensive
representing
New7
York
He is
states'.
now
the
other
and
in
ex¬
Irving
Eastern
attached to the
Company's Woolworth Branch Of¬
fice.
this
in
Mr. Plate
year
to the Irving
came
after varied experience
banking
and
in
key
positions
in industry.
assigned
to
Branch.
worth
and
Richard
Assistant
Assistant
same
the
I.
financial
He, too, is
Irving's
John
formerly
were
Vice-Presidents.
Robert
Wool-
F.' Lawlor
Palmer,
Secretaries,
time
of
19,
the
Federal
taken
.
was
over
American
the
operated
First
if
and
new"
equipment,
particularly
diesels,
benefited the
one
Reserve
on
Falls
as
Security Bank of Idaho.
*
si!
*
of
Directors
Francis
A.
Assistant
meeting
Fisher
from
Lee
W.
named
At
the
Adams,
Vice
As¬
29.
Cashier
-Joseph
F.
Vasquez
Albert
A.
Mr.
career
First
Fisher
National
became
started
with
Bank
the
in
has
been
of
ment
Supervision depart¬
Bank
San
America's
of
announced
by
L.
Giannini,
M.
President. Mr. Vasquez has served
as
officer
an
northern
for
the
California
in
bank
in
of
the
old
indenture
ganization.
large,
ous,
fund.
He
fice.
Cashier
former
1918.
He
became
in
with
the
his
Assistant
an
January,
started
1946.
banking
Detroit
Bank
in
in
Mr.
career
March,
World
The
Citizens
Bellflower,
was
1920. In February, 1925,
appointed manager of the
Hamilton
Holden office, and in
October,
1927, manager of
the
Grand River-Joy Road office.
He
was appointed
an Assistant Cash¬
ier
in March,
1948.
Mr. Dauer
-
started
as
for
former
the
with
Bank
a
messenger
Bank
of
in
ment
of
made
Assistant
The
1924
Detroit.
and
Detroit
Bank,
Manager of
was
that
in
September, 1948,
In September, 1951, Mana¬
Mr. Hall started his banking
the
with
in
employed
Federal
World
by
Reserve
May, 1917. After
War
I
he
the
of
over
was
the former Peoples
Bellflower
the California Bank
our
seem
bright
above the current $5.00 rate.
put it
the
potentially
and
Additions
This
and
the
seri¬
very
Betterment
fund, which is
duction before
reor¬
was
a
de¬
arriving at income
is
believed
the
that
in
stock
many
*
The
sale
of
amount
the
of
*
All of these shares
taking
by
will
probably
stock
has
analysts, the shares
attractive
rise
they
despite the
have
are
already
experi-
enced.
having been sold,
ot
record only.
increased
capital of the West Side Na¬
Bank
of
Yakima, Wash,
24),
from
OIL & GAS CORPORATION
$300,-
000 to $350,000.
COMMON STOCK
Thomas Ware Joins
Price $1.50 per
Slillman, Maynard
Stillman, Maynard & Co., 61
Broadway, New York City, mem¬
change,
York
Stock
announce
that Thomas K.
associated with
the firm. Mr. Ware has been with
more
Stevens
&
Clark
and
recently with the investment
department
Co., Inc.
of
J.
P.
National
Association of Securities Dealers
Ex¬
Ware has become
Scudder,
share
Willis E. Burnside & Co., Inc.
Members
Morgan
&
30 Pine
St.> New York 5, N. Y.
still
substantial,
THE PYRAMID
the
to
be
many
162,000 Shares
noted in
*
$50,000
bers of the New
Also,
Therefore, in the opinion of
this appears as a matter
bank
was
new
June
a
split.
of
tional
(effective
for
quarters
issue of June 19, page 2556.
December, 1933, he was as¬
signed to the accounting depart¬
ger.
prospects
common
Los Angeles. The proposed
In
department
the
further liberalization of dividend's
branches.
National
Cal.,
War
1, he returned to the bank in De¬
he
of
De¬
Lee
cember,
in
One of these
in
Bank
common,
restrictive provisions
capital
stock
of
$100,000,
was
July, 1.934, and in placed in
voluntary liquidation
April, 1935, was appointed mana¬ effective June
28, having been ab¬
ger of the Fenkell-Fairfield
of¬ sorbed
by the California Bank, of
troit
to
retirement
his
employee of The
an
Loan
Francisco Head Office, it has been
-
from
tion
J.
President; Theo¬
James R. Hall, and
Shepherd to Assistant
benefit
the Income 4V2S is in the elimina¬
to
Andrew
dore A. Dauer,
serving
elected
July
on
and
Assistant
Paul
were
at the Board
Another
stockholders
if
dent in
made
may
is
Bank
branch of the
a
promoted to Assistant Vice-Presi¬
Bank of Dallas in
June
President of
Bank,
of
Detroit,
Detroit
career
sistant Secretaries.
ap¬
Joseph M. Dodge,
The
George J. Adriance, Frederick H.
Quandt
of
i|s
Brownell, Jr., Eric O. Freund, and
E.
$40,553,900 and substantial fur¬
the current year to date.
On the whole, then, and
ity that the conversion privilege cash requirements for that pur¬
become valuable during the pose should be considerably less
30-day call period but the danger from now on. Reflecting that fac¬
Idaho,
National
Association
of
from this possibility does not ap¬ tor, as well as removal of restric¬
Boise, Idaho, The former location
tive provisions of the Income 4VzSr
pear acute.
now
1914. After service
perience
Auditor
Copsey has worked
June,
30, by the First Security Bank of
An
thereto
issue
our
banking
*
Trust
$100,000.
of
System
2556.
Cashier.
dent.
%
elected
was
appointments
Directors
Farmers
He
Mich, has announced the following
*
regular
of
reference
with
:|s
in the United States.
"Courier,"1 issued in seven
languages, is air mailed to readers
of
1950,f*.Mr.
member
In May, the bank's
enlarged from $100,$200,000 as a result of a
was
velopments
a
capital from $200,000
stock.
capital
peared
At
Shelby
the
7,
new
International
V
to
ther purchases have been made in
common stock.
For mon at $11.78 compared with $8.03
thing, additionally, retirement a year earlier. On the basis of re¬
for the bank for 13 years, and was of the new
outstanding Income sults to date, and prospects over
promoted from Head
Teller, to 4V2S
will
eliminate any danger the balance of the year, there ap¬
Assistant Cashier.
V
;
v
there may have been of dilution pears to be little question but that
through conversion of the bonds. full year's results will top $20.00 a
The bonds are convertible at the share by an appreciable margin.
The
American
Falls
Bank, of
rate of 10 shares per $1,000 bond. The property improvement pro¬
American
Falls, Idaho, a State
There is, of course, some possibil¬ gram is virtually complete so that
'J*
July
of
*
1936.
in
National Bank of Shelbyville, Ind.
page
Board
❖
'!•
Effective
contribu¬
the
and
Mr. Winne has been
in
Car¬
rollton Bank.
nificant business and political de¬
throughout
1.
branch,was established in the
$250,000 by the sale of $50,000
and
1942
$600,000.
to
"Colonial
in
Reflecting the traffic improve¬
employed by the bank since 1935,
giving ment and the favorable trend of
except for three years with the effect to the
operating expenses, earnings oi>
prospective refund¬
Armed Forces and has held the
Si:
•<;*
%
ing, the non-equipment debt will the common stock last year soared
office of Assistant Cashier since have been
reduced by over $30 to a new postwar peak of $17.93 a
The West Carrollton Bank, of
January, 1950. Mr. Hoff was as¬ million in the relatively short share, before sinking and other
West
Carrollton, Ohio, a State
sociated with the Red River Na¬ time that has
The rise has con¬
member of the Federal Reserve
elapsed since reor¬ reserve funds.
tional Bank of Grand Forks, N. D.,
ganization. It is not only with re¬ tinued in the current year with
System, was
absorbed by
The
for two years prior to his employ¬
spect to the reduction in debt and net for the first half up some 44%
Winters National Bank & Trust
ment with the Exchange National
charges that this debt program has and prefund earnings on the com¬
Co., of Dayton, Ohio, on
000,
monthly newsletter reporting sig¬
The
dent in 1950.
to
increased
promoting
amity
Cashier
Assistant Vice-Presi¬
elected
was
in¬
been
Assistant
as
of
Bank
has
in
bank's
in
the
National
Ohio,
Another
trade.
of
creased
widely
are
it is said to have
instrumental
been
significant
Trust
^
articles
and
Savings
Mansfield,
WHitehall 3-0852
16
The Commercial and Financial Chronicle
(488)
stock
market, either directly unhealthy, then certainly one
that calls for caution.
through mutual funds.
or
Tomorrow's
*
Markets
The
*
*
*
#
*
■
for this
My advice is to tread very
plus the carefully from here on. Let
larger income received from the next fellow make the ex¬
nany stocks. In tne past sucn
periments.
l situation was not considered
major
reason
Whyte
Says—
I The
lealthy.
There have been
By WALTER WHYTE
many economic changes in the
During the past week there past few years, but I consider
a
situation still, if not
were a couple of disquieting such
straws
in
the
peared
on
the ticker tape.
thousand
stocks
shares
that
of
let go,
were
though
wind
A
feeble
a
tically each
and
all
even
In prac¬
one.
high grade
case a
involved.
was
Without
having traced the selling too
close, I'm practically certain
it
from
came
fund for
By the
mutual
a
redemption purposes.
token I'm equally
same
certain that the recovery was
caused
not
necessarily at any
those of the
with
They are presented as
Chronicle.
those of the
author only.]
by another (or
of funds who
group)
doing the
were
a
buying.
It
might be argued that
buying is high quality.
It might therefore be sim¬
ilarly argued that the sell¬
ing that preceded< was of
equal high calibre. All these
arguments, however, are aca¬
such
demic.
The fact is that there
is
something in the wind that
doesn't augur well.
*
❖
*
from
page
As this is
being written the
averages are about
279, up against a previous re¬
sistance area that I previously
supposed
This
days.
Converters regard this as general distrust of the market,
dealing for six or eight months back
since the same buyers were
in
1951,
reports this trade authority.
lic that would
in
come
once a
each
well
over
$100,000, which had remained
accounts,
for
static
these
months.
trading
are
Though
accounts,
nothing has been
done
be¬
it required that some¬
cause
thing be sold before anything
could be
bought. And though
all stocks
in the
were
black,
a
theoretically
sale would put
them in the red.
*
*
Income is
a
❖
apparently today
And in this
prime factor.
search for
counts
income, savings
have
not
kept
ac¬
the
market has reacted
scrap
with the national personal in¬
come
figures which have been
made public. It can be argued
that savings accounts, are up,
and
they
are.
But the
percen¬
tage advance, in relation to
income, is out of proportion.
The money that usually goes
into
savings is
now
in
the
distributed by the elecrtic light
industry for the week ended Aug. 2, 1952, was esti¬
7,404,913,000 kwh., according to the Edison Electric
The current total was 76,682,000 kwh. above that of the pre¬
ceding week when output amounted to 7,328,231,000 kwh. It was
401,704,000 kwh., or 5.7% above the total output for the week
ended Aug. 4, 1951, and 1,157,449,000 kwh. in excess of the output
Loadings Declined Slightly in Latest Week
production, still hurt by the effects of the steel strike,
of September, since
it will take the industry that long to "start to roll," stated "Ward's
Auto
Automotive
revenue
affected
were
by
week's total represented a decrease of 213,205 cars, or
under the corresponding week a year ago," and a decrease
The
26%
of
will not return to normal until the first week
years ago.
freight for the week ended July 26, 1952,
the steel strike, totaled 607,271 cars,
according to the Association of American Railroads, representing
a decline of 1,686 cars, or 0.3% below the preceding week.
which
237,740
to the
pig iron shortage.
cars, or
28.1% below the comparable period in 1950.
United States Auto Output Drops to Lowest Point Since
Post-War Low in Week Ended March 2, 1946
Passenger car production in the United States the past week,
according to "Ward's Automotive Reports," declined to 14,450 units
compared with 29,882 (revised) units in the previous week and
86,277 units in the like week a year ago.
It
was
the lowest figure
1946.
reached since the post-war low in the week ended Mar. 2,
Total output for the past week was made up of 14,450 cars and
Reports" at the close of last week.
will be made in the
production was lim¬
ited to 160,000 cars and 38,000 trucks by lack of steel. By the end
of September, however, the industry will be back on its feet with
an output of 415,000 cafrs and 106,000 trucks, Ward's believed.
Only about 215,000 cars and 60,000 trucks
"hectic 30 days ahead," it added. Last month
drawn, the agency expects the industry will
4,150,000 cars this year, or about 22% less
This estimated 1952 volume, however, would only
be surpassed four times in history—1929, 1949, 1950 and 1951.
With this picture
be "fortunate" to build
4,595 trucks built in the United States against 29,882 cars and
6,450 trucks (revised) last week and 86,277 cars and 28,990 trucks
in the comparable period a year ago.
Canadian output which was also affected by
the steel strike
trucks. In the preceding
week 4,957 cars and 1,225 trucks were built and in the like week
a year ago, 1,358 cars and 385 trucks were turned out.
declined last week to 2,375 cars and 1,195
than last year.
business
New
issued
charters
in June
totaled
Bradstreet, Inc., disclosed, representing a drop of
7,835,
Dun
Business
1.0% from the
It was the lowest for any previous month
this year, with the exception of the short month of February.
The June total, however, showed a rise of 15.1% above the 6,810
company
formations recorded in the corresponding month a
ended
Steel Output
Rises Sharply to 83.6% of Capacity
For Current Week
steadily rising volume again,
"Steel," the weekly magazine of metalworking. But it will
at least three weeks before pre-strike production schedules
says
take
are
regained.
Last
national
ingot rate jumped 31.5 points to
47% of capacity.
It would have risen still more sharply except
some producers were delayed in resuming by local disputes over
seniority rights, incentive rates and other details in separate union
agreements.
The
impact of the strike in terms of its effect on the nation's
economy will not be possible to assess for weeks to come, con¬
tinues this trade weekly. The work stoppage was the most damag¬
ing in the industry's history, and the split decision which brought
the workers back to their job is seen as setting off another spiral
of inflation as the steel wage and price increases ran out to encom¬
pass related metalworking lines, eventually spreading to all busi¬
ness and industry.
Up to the end of last week over 17,500,000 net tons of steel
lost
were
tional
as
result
millions
of
of the
labor
will
tons
be
discord
lost
since last
April.
before the mills
Addi¬
regain full
production stride.
Loss in sales and wages in June-July shutdown
alone exceeds $4 billion, including time and production lost in
related metalworking lines for lack of steel, and by the railroads.
This figure will be pyramided as supply shortages restrict metal¬
working operations in
trade paper adds.
Effective
many
directions in the months ahead, this
is sought through emergency changes
regulations. These give priority to mili¬
tary and defense needs, but also take civilian requirements into
consideration.
Special consideration is being given small con¬
sumers, indicated by new regulations affecting warehouse re¬
ceipts and shipments. The principal objective of the new rules,
"Steel" points out, is to make up military steel
losses, if possible,
before year-end.
Military needs had been running just under
million tons
monthly before the strike.
Business
one
steelmakers' books will be handled in the order
received
far
practicable. No attempt will be made to wash
of unfilled orders before first quarter next
Fourth quarter advance allotments for civilian consumers
the
year.
as
on
as
125 from
a
However, first quarter 1953 allotments
be cut back, this trade magazine states.
are expected to announce new product price lists
this week. The increase is retroactive to July 26.
In general the
new ceilings follow the
industry formula. The overall average
increase, about 4.7%, comes out around $5.20 on carbon steel
items with proportionate increases on alloy and stainless.
The
$5.20 hike is computed by adding the Capehart increase of $2.84,
the recent freight boost of * 70 cents, and an allowance of
$1.66 to
Steelmakers
the wage
The
hike, concludes "Steel."
American
Iron
and
Steel Institute,
announced
that the
operating rate of steel companies having 93% of the steelmaking
capacity for the entire industry will be at an average of 83.6% of
An increase also took place among small casualties,
under $5,000, which rose to 27 from 18 but
1951 total of 34.
ago.
year
did not reach the comparable
Retailing and commercial services accounted principally for
More retailers succumbed than last
the week's rise in mortality.
year,
than
but all other industry and trade groups had fewer failures
in
1951.
geographic
regions reported
weekly rises in failures,
including the Middle Atlantic States. Small declines brought the
toll in the Pacific States down to 31 from 37, and in the East
North Central States to 16 from 19. Casualties equalled or ex¬
the
1951
level
in
except three
all
regions,
the Middle
Atlantic, Pacific and West South Central States where mild
from a year ago prevailed.
dips
Approaches 1952 Peak
Wholesale Food Price Index
food price index, com¬
piled by Dun & Bradstreet, Inc., stood at $6.63 on July 29. This
was almost equal to the 1952 peak of $6.64 recorded last Jan. 1,
and represented a rise of 5.1% over the year's low ($6.31) touched
Up 4 cents in the week, the wholesale
an
April 22. It compared with $6.91 at this time a year ago, or a
drop of 4.1%.
index represents the sum
The
of 31
foods in general use and its
total of the price per pound
chief function is to show the
general trend of food prices at the wholesale level.
Index Recovers From
Slump of Previous Week
The general price level moved upward last week after reach¬
ing a two-year low the week before. The daily wholesale com¬
modity price index, compiled by Dun & Bradstreet, Inc., finished
at 292.64 on July 29, up from 289.21 a week earlier. At this time a
Wholesale Commodity Price
it stood at 302.09.
registered further moderate advances the past week
bearish news in both wheat and corn. The movement
of the large winter wheat crop has about passed its peak. Market
receipts continued in good volume but were well below the record
Most grains
despite
some
arrivals earlier in the month.
The carry-over of
wheat in all posi¬
by the Department of Agriculture
bushels, as compared with 196,000,000 bushels a year
ago.
Corn prices made steady gains during the week, aided by
limited receipts of cash grain, including government-owned grain,
and a more profitable corn-hog feeding ratio.
tions
as
of July 1 was estimated
at 254,000,000
The general corn crop outlook continued
deterioration
will be allowed to stand.
cover
involving liabilities of $5,000 or more increased to
last week but remained below the 137 of this size
119
those having liabilities
carryover
may
Increase
152 in the week
of 1939.
year ago
distribution
in government allocation
to
sharply, 45%, from the pre-war total of 277 in the similar week
ceeded
the
week
rose
July 31 from 137 in the preceding week, Dun & Bradstreet,
While casualties were only slightly lower than in 1951
respectively, they were down
Five
Steel is pouring from the mills in
failures
industrial
Inc., notes.
Failures
month, except January, showing gains over 1951,
of new business incorporations for the first half of
1952 reached a total of 47,431, marking an increase of 6.0% over
the 44,761 for the corresponding 1951 period. Two-thirds of all the
states recorded a
greater number of charterings for the six
months' period as compared with a year ago.
and
and 1950 when 171 and 168 occurred
year ago.
With every
Further Mild
Failures Show
Commercial
&
May number of 7,915.
out
pace
Higher in Latest Week
Institute.
steel settlement with
resurgent strength.
"The Iron Age" scrap steel composite price
is now $42 per gross ton, up 250 from last week.
This reflects
full ceiling price for heavy melting steel at main consuming cen¬
ters.
Cast scrap is at the highest level since April as a result of
The
pre¬
heavily publicized resistance
area was negotiated.
In the
past few days, however, an in¬
ventory situation has come to
light that shows that much
more of the public is in than
was previously known.
One
large brokerage house, with
heavy business with the pub¬
lic, admitted it had three large
at
mated
Car
The State of Trade and Industry
90
avid buying pub¬
an
power
Loadings of
felt would be hurdled without
too much trouble.
and
5
the aggregate
familiar
Electric Output Pushes
The amount of electric energy
reported for the corresponding period two
Continued
a
seemed
that
do
coincide
in this
various
them recovered, the recovery
stock
time
expressed
ap¬
they were
sold
point, and most of
within
article
views
Thursday, August 7, 1952
capacity for the week beginning Aug. 4,1952, equivalent to 1,737,000 tons of ingots and steel for castings.
In the week starting
July 28, the rate was 42.9% (revised) of capacity and actual output
totaled 891,000 tons.
A month ago output stood at 14.2%, or
295,000 tons.
;s the fear of inflation
Walter
.«.
was
reported in dry
Oats
the
on
prices held
new
crop
the
average
areas
good although some
of Kansas and Oklahoma.
well despite heaviest market receipts of
Trading in all grain and soybean futures
up
season.
Chicago Board of Trade last week was equal to a daily
of 39,400,000 bushels, or slightly more than the previous
week and well above
a
year ago.
Activity in the domestic flour market was irregular and spotty
at the weekend.
Scattered fair to moderate-sized bookings of
spring wheat and rye flours were reported earlier in the week,
but interest in other flours
tinued rather slow.
in
a narrow
range and
Warehouse stocks of
was
small.
Export flour business con¬
Demand for cocoa was
showed
cocoa
a
quite; prices moved
further slight drop for the week.
increased to 120,281 bags, from
112,470
Number 5140
Volume 176
The Commercial and Financial
Chronicle
...
(489 >
week ago, and compared with
a
market
179,480
a year ago.
The
raw
dull and featureless.
was
Interest
in
refined
sugar
limited,
was
although shipments
quite heavy.
against orders previously booked continued
Andrew Dott Joins
Our
Reporter
Trading in lard was active with prices
moving substantially
higher. Live hog values also advanced sharply as market
receipts
continued to run materially under a
year ago.
Spot cotton prices were generally firm and
higher particu¬
larly in the latter part of the week, following
reports of deteriora¬
tion in the new crop due to
dry weather over much of the belt.
Early support was prompted by moderate mill
price-fixing, the
settlement of the steel
strike, and firmness in outside markets.
Inquiries for
with
strong
new
demand
cotton
crop
from
showed
shippers
for
considerable
high
quality
prompt shipments.
increase
cotton for
Demand from foreign sources showed
some improvement.
Heported sales of the staple in the ten spot markets
last week in¬
creased to 57,900 bales, from
48,000 the previous week, and 39,900
Trading in the cotton gray
rather dull but prices
generally held steady.
in the
corresponding week
goods
market
was
a
Trade Volume
year ago.
Holds at Reduced Level
The torrid temperatures
in the period ended on
the
preceding week
prevailing in many parts of the na¬
Wednesday of last week held retail
needs
clearance
of
the
sales
level of the prior week. As
during
shoppers restricted their purchases to
most
moment.
of
Consumers
seasonal
responded
merchandise
when
spiritedly
price
quite sharp.
Consumer sentiment improved substantially
which
cuts
the
week
a
was
year
estimated
to
be
from
Regional estimates
ago.
varied from the
comparable 1951 levels by the
following percent¬
ages:
New England 0 to
4-4; East —2 to 4-2; Midwest —1 to
4-3;
South 43 to
-f-7; Northwest 4-2 to -f-6; Southwest and Pacific
Coast 4^ to 4-7.
Shoppers bought about as much
apparel as during the
ceding week although merchants had to
resort to
clearances
men's
interest.
consumer
Sportswear, both
and
women's, remained the most popular*
Retailers of apparel
generally had larger
cities.
the
sustain
similar
1951
more
item
in
many
receipts than in
week.
The
last year's level.
Slightly
pre¬
reduced
many
to
food
was
purchasing of shoes
well
was
above
purchased than in the previous week
and in the
corresponding week a year earlier. Frozen
foods, dairy
products, and oleomargarine were in much
larger demand than
a year
ago. The prices of fresh produce
continued to increase as
crops were damaged by
dry, hot weather.
1%% obligations.
were room air
conditioners, washers
freezers.
Television
sets
continued
months ago, and used
car
to
he
more
popular
and home
than
few
a
prices inched upward
steadily.
The tempo of
trading in many wholesale
slightly in the period ended on
Wednesday as
markets accelerated
buyers made active
preparations for the arrival of the fall
selling season. The aggre¬
gate dollar volume of wholesale trade
did not vary
appreciably
from the level of a
year before and was about
10% below the
all-time high reached in the
first few months of 1951
when the
Korean crisis induced frantic
inventory building. Buyers were
less reluctant to order
beyond their immediate needs than in re¬
cent months.
Department
from
the
store
Federal
sales
on
Reserve
a
country-wide
Board's
index
for
basis,
the
taken
as
week
ended
July 26, 1952, fell 2% below the level of
the preceding week. For
the four weeks ended
July 26, 1952, sales rose 1%. For the
period
Jan. 1 to July 26,
1952, department store sales
registered a
decline
of 3%
below the like period of the
preceding year.
Retail trade in New York
last
According to the Federal Reserve Board's
index, department
store sales in New York
City for the weekly period ended
1952, decreased 10%
of
the
similar
a
below the like period
decline of 12%
week
July 26, 1952,
of
a
a
of
gone
to
over
the
Tight money conditions
are
put
damper
a
concerned
the market
on
and
it
likewise
far
as
tended
as
to
limit
volume
m
ment. Mr. Dott
pay¬
non-government obligations. The mild
rally that was
underway following this liquidation was not
strong enough to cope
selling that came into the market with the announcement
1951,
(revised)
while
decrease of 10%
last
the
four
In
year.
was recorded
for
was
in
was
the
government
activity.
because of tight
for
that
bond
and
of
ap¬
Man¬
of
company's
unicipal
depart¬
re¬
caution
Seemingly as a prelude to the refunding and
conditions, the market had a sizable shake-out ahead
time, when investors had to raise funds in order to make
been
ager
was likely
refunding. This
upswing in prices was
an
money
ments
has
pointed
one-year,
the reason for the
the market because of the
opinion that an increase
to come in the short-term
rate with the
impending
bond
depart¬
ment
of
riman
and
Har-
Ripley
Co.
from
to
1942.
1940
He joined The
First
the
Treasury was taking care of its refunding with a
2%
As a result, prices went
scurrying down with en¬
larged volume. A period of backing and
filling will no doubt take
place while the market is
trying to establish a new pattern of
yields and prices.
the
from that
in
weeks
ended
For the period Jan.
1, to July 26, 1952, volume de¬
10% under the like period of
the preceding
year.
1 9 4 2
Andrew
B.
Dott
and
served in its government bond de¬
partment until 1948.
Since tbat
time he has been with the munici¬
pal bond department of the Ma¬
Tight Money Policy Implemented
By refunding the Aug. 15 and the
Sept. 1 maturities of l7/s%
certificates with a one-year 2%
obligation, another turn was
rine
Trust
New
York.
Company of Western
taken in the
screws in order to make
the pressure of tight
money
bit more binding on the
money markets.
The Treasury by put¬
ting out a 2% certificate is apparently
going along with the cur¬
rent policy of
Federal, that of keeping the money markets tight.
The apparent reason for the
continued pressure on the
money
markets by the Central
authorities is the fear that another shot
of inflation is
going to be administered to the economy.
The
settlement of the steel strike with
higher wages and higher prices
could set in motion a trend that
has had inflationary
implications
in the past. Whether it will or
not, will be known only with the
passing of time.
-
However, until there is
clarification as to what is
likely
in the economy, it seems rather definite that
Fed¬
going to keep the pressure on the money markets in the
form of tight
money.
The Federal authorities do not have the
to
With Daniel Reeves Co(Special
instruments
had in the past, so greater
in
measures
order
to
do what
they
to
can
limit
retard
or
these
undesirable forces.
Beverly
what
issuance of
of
a
Exchanges. Mr. Fleg was pre¬
viously with Shields & Company.
With Hamilton
made
DENVER, Colo.—Vernon
come
refunding
tions to
attributed
was
raise
funds
that
to the need
had
to
be
by banks and
used
to
make
was
associated
with
Corporation,
With Waddell & Reed
(Special
to
The
DOUGLAS,
Guilford
Financial
has
been
added
a few Treasury secu¬
bought by the so-called strong holders as prices re¬
was supposed to be
especially true of the new 2%s as
they broke the 100 level. Although a mild
rally ensued after
the initial sell
off, the edge was quickly taken off the market
This
tificate
would
maturities.
Treasury
continue
be
A
used
For
pressed
and
prevail
refund
the
Treasury that a 2% cer¬
August and September
seems
these
as
are
as
in
result of
that
Buying
far
on
new
caution
government
far
of
the
as
institutions
the
commercial
will
most
tight
money
likely
Federal authorities.
As
the
will
obliga¬
though the bank eligible issues will
as
result
a
the
indications
the operators
attraction
because
for funds
there
among
while it
a
have too much
not
concerned
to
defensive market has been
financing
to
made by the
banks
be
are
hard
(Special
to
The
Financial
the potential
rush
into the
Waddell & Reed, Inc.
Join Hornblower & Weeks
(Special
to The Financial Chronicle)
CHICAGO,
Steed
and
have
become
Scott
111.—William
T.
past
&
was
in
the market for these
obligations. Nevertheless,
buyers of the higher income issues are not going to
market, according to advices, but will be more in¬
opportunities
are presented.
In nearly all instances the pur¬
exchanges will be the building up of income. To be
sure, some switches will be made for
maturity purpose, but it is
not believed this will be as
important as the income producing
operations.
associated
with
134 South
Mr. Steed in the
with James E. Bennett
Co.
U. S. TREASURE
STATE
and
MUNICIPAL
pose of these
Inv. Service Adds
(Special
to The
DENVER,
Filer
has
Warren Bayley Opens
Financial Chronicle)
(Special
Colo.—Gerald
joined
vestment Service
the
R.
staff of
In-
Corporation, 444
Sherman Street.
to
The
CHICAGO,
INGLE WOOD,
the
securities
(Special
111.—Thomas
A.
Harrington has joined the staff of
Dempsey & Company, 135 South
of
Calif.
the
to
The
with
723
Francis
East
I.
Green
du
LOS
Financial
connected
W.
Turner
with
Calif.
has
&
Co.,
Street.
(Special
Oscar F. Kraft
The
Merrick
—
&
curities
1425
is
the
need
to sell
quirements.
est levels
Co.
from
Francis
the
I.
The
at
was
pre¬
du
Pont
up
2%
reserve
requirements and less of
Treasury issues in order to meet these
same
re¬
Discounts and advances at Federal reached the high¬
since March 8,
1933, when they soared to $1,403,235,000
ended July 30.
discounts
and
As
a
advances
reflector of the tight money
at
the
Central
Banks
have
each week for the past five weeks from the recent low
point of $306,557,000 which
se¬
offices
Avenue. He
viously with
&
in
gone
Rex
—
Change in Rediscount Rate
higher rate for Treasury certificates, there has been
some concern about the
rediscount rate. The general opinion seems
to be that there will be no
change in this rate. By keeping it
where it is, there will be more of a
tendency to borrow from the
conditions,
Chronicle)
Calif.
engaging
business
Drake
Opens
Financial
BURLINGAME,
become
Co., 530 West Sixth Street.
to
SECURITIES
a
for the period
Chronicle)
ANGELES,
Clarence
associated
Pont
With
Central Banks in order to meet
Logan
—
No
333
Financial Chronicle)
PASADENA, Calif.
Shillinglaw, Jr. is now
Joins Oscar F. Kraft
to The
at
engage
business.
Rex Merrick
(Special
Warren
—
With Francis I. du Pont
Chronicle)
La Salle Street, members
Midwest Stock
Exchange.
Financial Chronicle)
Bayley has opened offices
Glasgow Avenue to
in
Financial
The
South
Dempsey Co. Adds
(Special
to
passing
of 1952/54,
date, Dec. 15,
interest rates.
up
was
registered
on
by the Treasury of the
option to retire the
1952/55 and the 2i/4s of 1952/55
was not
on
the
Aubrey G. Lanston
& Co.
INCORPORATED
15 BROAD
ST., NEW YORK 5
WHitehall 3-1200
June 25.
231 So. La Salle St.
45 Milk
St.
CHICAGO 4
next
call
unexpected in view of the higher trend of
F-
Wennerstrusx
Hornblower & Weeks,
La Salle Street.
clined to make commitments with
price recessions.
Considerable
switching and swopping is likely to be done b.y these operators as
the
Chronicle)
WAYCROSS, Ga. —Everett L.
Taylor, Jr. has joined the staff of
Price Recessions Expected
higher yielding governments are concerned,
particularly the ineligibJes, there has been and still is consider¬
interest
F.
the
policy of the
the
as
to
Waddell & Reed Add
not
were
was
Chronicle)
Ga. —Norwood
staff of Waddell & Reed, Inc.
payments for
Nonetheless, it is indicated that quite
when the announcement
Grant
corpora¬
municipal and corporate bonds. The market was thin and it did
much selling to
push quotations down rather rapidly.
rities
be¬
Hamilton
Forrest Drive.
take
ceded.
C. Eikcr
Weimer have
B.
Management
a
known
Darrell
and
certificate by the Treasury was some¬
surprise to the money markets,' despite the fact that
quotations of most of the government
obligations had declined
rather sharply before the announcement
had been made. The re¬
cession in prices of
Treasury securities before the
Managed
(Special to The Financial Chronicle)
Surprise to Market
a
2%
Co., 398 South.
members of the
Drive,
New York and Los Angeles Stock
at
2% Rate
The
—
Julian F. Fleg has joined the staff
some
to combat the forces of inflation
that they
use must be made of
money tightening
now
Chronicle)
HILLS, Calif.
of Daniel Reeves &
is
same
to The Financial
BEVERLY
take place
eral
able
registered below the level
Boston
Corporation
certificate.
July 26,
of
year ago.
clined
have
in
tions.
week held close to
that of the
previous week with food sales off
due to high
temperatures. Vol¬
ume was estimated
at 6% under the 1951
level.
preceding week
to
seems
higher one-year rate which the
Treasury had to adopt in its
funding operation. For a time, there had been considerable
The interest in household
goods slipped slightly last week and
continued to be
noticeably below the level of a year ago. Still in
demand, however,
market
™te & Co-.
Inc., 37 WaU
Street, New York
City, has annuonced
that
Andrew B. Dott
a
dollar volume in
5% higher than the level of
price
government
were
the long steel dispute had
hampered spending.
1 to
The
defensive, due mainly to the 2% certficate rate which the
Treasury
used in meeting the
August and September maturities of
to
in those cities in
_
Retail
J. G. White Staff
J-
By JOHN T. CHIPPENDALE, JR.
that
shopping close to the reduced
the
Governments
on
with the
Due to Hot Weather
tion
n
sugar
BOSTON 9
ST 2-9490
HA 6-6463
The Commercial and Financial Chronicle
18
.
.
Thursday, August 7,
.
1952
(490)
Mutual
Washington
With Kentucky
The
ville
Mutual Funds
T.
has become affiliated with
Kentucky Company, Louis¬
Trust Building, members of
the Midwest Stock
is
new
Ky.—Robert
LOUISVILLE,
believed
Fund
Chronicle)
(Special to The Financial
Vail
Co.
basic
funds
the
is
first
By ROBERT R.
Exchange.
this
of
balance
the
for
Product
NATIONAL
GROSS
year
will
in
in
On
United
the
exclusively
stock
an
"all-
The
diversification
velopments which impinge upon
spending by government, business,
initial
pol-
investment dealer, or
your
be
consumers'
with
securities &
corporation
National
research
120 BROADWAY,
NEW YORK 5. N. Y.
Based
and
consumers, the
Product will probably
spending by
tional
tain
i
the company
cp
S.
and
ONE
WALL
STREET
/"caxvim bullock
I
*
GENTLEMEN: At
me a
no
NEW YORK
obligation please send
Canadian Fund, Inc.
prospectus on
holdings of common stocks were:
Petroleum, 13.65% of total net as-
sets; Utilities, 13.54%; Railroads,
g.49%; Retail Trade, 6.92%; and
Chemicals, 5.76%.
During the three months ended
June 30«the mQst notab,e change
in the investments owned by
Dividend Shares was an increase
Under another contract, the in- of approximately 2% in holdings
vestment banking firm of John- of common stocks of utility comston' Lemon & Co. will serve as panies.
Purchases of common
^und s business manager, ren- stock shares during that period
dering various services including included Air Reduction Company,
the furnishing to the fund of the Incorporated,
7,000; American
tund's executive personnel.
Gas & Electric Company, 9,200;
National
Riggs
The
Bank
Officers
and
and
directors
the
of
is
effect
out
likely
Wisconsin
Po^
e-
'
Ele¬
*s
to
broader and
In this
by
ip L P Pt •!'.
fund
are:
James M. Johnston, wnSiT
wealth Invest- Chairman of the board, President
as
ment Com- and director; James H. Lemon, tNc
Coieman
10,000;
Bristol-Myers Company,
of
Washington
is
custodian and Commercial Solvents Corporation,
American Security and Trust Co. 22,800; El Paso Natural Gas Com°f Washington is transfer agent.
Pany, 10,900; Gulf States Utilities
President; Douglas R Johnston, other^ directorsLf1^^®rgen E<
Vice-President; Robert L. Cody, len, James F. Cummins Jonathan
Vice-President and Secretary- B. Lovelace, Jo V. Morgan, and
way the strike acts somewhat like
Treasurer; and Lewis V. Coleman, i>avis weir.
the 'stretch-out'
of the defense Vice-President. The Fund's board
The Advisory board consists of
plans and might push the attain- of directors
is composed of S. Robert C. Baker, Barnum L. Colment of the National Output peak Waldo
Coleman, George E. ton, Leo Goodwin, Robert P.
into the future."
Crothers, Roy W. Cloud,
Alan Smith, Frederic N. Towers, Wilwashed
fundamental forces.
more
"
Waldo
pany,
the strike is a transient
whose
factor
be
'
j ties
bonds,
0.12%
President of Common- Vice-President anddirector, BerCommon stock sales included
wealth Stock Fund. Other officers nardI J Nees, Executive Secretary, 8100 ghares Qf Doehler_Jarvis
are George E. Crothers, ViceXirenfSjronroo f ai' Corporation; 6.200 Deere & Corn-
higher than projected. The study
also points out that: "With all its
potency
,, r
S. Government
preferred
stocks,
U.
Common-
billion
$3
or
p
Company
and early next
$2
be
may
North
American
consumer
year
js
common
Fund S Investment Adviser.
Presi-
dent'of
reports.
the end of this year
e
Cole
man
at¬
billion
|
r
74
Mr
Na¬
possible, the study finds,
spending toward
is
It
that
a
S2i
final quarter,
in the
annum
per
$352
of about
rate
a
offer-
initial
level of private investment
moderately higher rates of
high
The
Coleman
continued
a
by
Waldo
S
mounting rate of de¬
a
on
expenditure,
fense
ment made
services."
goods and
announce-
an
concerned
demands
for
intimately
more
1952,
cksh and equivalent, '3.41%.
The five largest industry group
icy 0f the fund is to hold not
less than 40 nor more than 80
American economy."
output will
and the level of future
from
from
30,
holdings of Dividend Shares
of total .net
assets;
foreigners in the different issues in not less than 15
industries.
nffprim* of securities '
To Pr?videJor.the continuous
study on the subject by Catvm A PUBLIC ■otter
8
supervision of its investments and
Bullock. Thereafter, however, the »»
r!ZrZnwealth Stock Fund t0 con£ucf its investment prostudy points out that "—certain
Stocku > gram, the fund has entered into a
of the firm supports currently in was made Friday, through invest
cont
t with Capital Research
effect will be partially removed
arrordine to anci Management Company as the
Prospectus upon request
the same date
;
June
8.64%;
Federal consumers and
largely be determined b,y
spending for national defense and
security according to a current
on
accounted for 87.83%
legal" portfolio.
RICH
$29,643,808 compared
last year.
be
to
was
$18,506,266
with
a
mutual
understood
fund
States to offer
Investors June 30
represent
concept
it
as
to
pany;
16,900 Middle South Util-
Jnc. and 8 00() Southern
Railway company. Holdings of
the common stocks of the followjng companies were eliminated
from
the
portfolio;
Caterpillar
Creole Petroleum
National
Gypsum
Tractor Co.,
Corporation,
liam F. Vandoren, Dr. Charles S. Company, St. Joseph Lead Cornfund is under the White, and RogeEyv.. Whiteford.
pany, Sinclair Oil Corporation
supplL of g°ods" the company ^™fthmjann®|set™eenntt Comp^nT^ A PERS0N who si?ns UP t0 in~ HlUr'ited Stat6S GyPS"m C°m"
"Consumers
expectation
to expect
seem
indeed
and
adequate
of
Field and Charles Kendrick.
an
The new
plentiful
SfoOO.OMmutaal fuT o^'an*-
TuXr" drastic
ized in 1932 by President Cole-
price reductions such as have af-
vest regularly' under a mutual
P^-
^4^ ^heck^to meet his^om- ACCORDING to the semi-annual
mftments
ntt Wssarilt
^nfclpaPTn™ets reXhed
'tA
rni
^u, iyoz. lms
wjrXg
tht veaf 5hich
nectran
a
goods and a large man.
his
segmen
segment of soil guuusfm the past
ui soft goodsfin ine
" Commonwealth Stock Fund nwn
^ommonyveduii oiuck r u n u wn check> nv^r at tho rashipr's *50 026 373 on June oo iAro This
Over at the cashier's
30 1952
year.
We believe the price out- will invest its funds primarily in _fff nrnnh Securities thev
on june
look will be mildly encouraging common stocks of seasoned, wellrt
that such
investors fre.
of
refor consumer buying, but the as- established
companies,
Particu- quently send -along corporation
increase of 23%
LU
lilt;
rlitn^Anrl
surance
of ample
supplies will larly those which appear iu me HiviHpnf1 nKnnl'f eherks -PvAm 1 l Po
chock*
from life
The
report
shows
7,454,804
prevent any rush to 'beat the management to have better than 4ncljranrp pomnanies checks from
hoarders.'
No statistics are avail- average long-term growth possi- hrnkera^e firmS'antf checks writ- shares
outstanding as against
fected
able to
Name_
Address.
City
hard
measure
the
but
impression from
general
bilities," said President Coleman.
the level of goods
consumers,
our
held
actually
by
At
the
present
ten
individuals other than the
b
time Common- sender.
wealth Stock Fund Shares may
be checks
Prooerly
are
of
endorsed
course
these
acceptable.
6>212>732 on Dec. 31, 1951. The
number of shareholders amounts
31,500.
On June 30, 1952, the largest
expects the list of states to in- the investor is canny, suiting his industry holdings were:
Oil
over-stocked. Indications are that crease
substantially
during the 0wn
convenience,
and
perhaps (13.9%); Public Utilities-Electric
the high rate of personal
sayings next few months.
saving dimes by holding down the (9.3%);
Chemicals and' Drugs
last year was largely in liquid
North
American
Securities activity
of hisfown checking (4.7%); and, Public Utilities-Natural Gas (3.3%).
form and consumers liquid assets
Company, nationwide distributors account.
observation
local
sumers
that
is
well-stocked
are
fl^bimon/' thG
but
con-
soid
jn
13
The President At Group Securities they say that
states.
not
WGre 0VGr for Commonwealth Investment
certain firm SnTa^tives Tn^Ne^^York ^City,
TOTAL NET assets of Dividend
upward Boston, Washington, D. C., Chicag0) Dallas> St. Louis, Los Anremoved, the study declares. Our geies and gan Francisco, are also
Shares, a diversified investment
fund under Calvin Bullock management,
on
June
30,
1952
Referring
of
supports
the
to
the
current
movement which may be partially
A Mutual \
1S
Investment Fund
Prospectus may be
from
investment
The
Parker
obtained
dealers
or
Corporation
Berkeley St., Boston, Mass
200
s;
u
19 25
•FOUNDED
a
the present boom Mutual Investors Fund at a price date in 1951.
'
Unrealized: appreciation on
by a serious of $10.72 per share,
down-turn in business activity.
The fund, incorporated in Delis
to
followed
be
"Projections
any
Keystone
after the distributors for the shares of amounted to $111,007,668,.. equal
topping off of
future
—8—
ll?at
March, 1953, government expend- Commonwealth Stock Fund.
to $1.95 per share on the 56,839,ltures will level off and, of course,
042 shares then outstanding. This
provide less economic
stimulus JOHNSTON, LEMON & Co., as compares with total net assets of
than a rising trend of such spend- principal underwriter, is offering $92,087,858,
equal to $1.76 per
ing." The company adds that it a new issue of 380,000 shares of share on ' the ; 52,348,953 shares
does not wish to imply that the the. capital
stock of Washington outstanding on .the corresponding
as
economic
Vice
IIARE,
WALN
OPEN-END REPORTS
-
President,
National . Securities & Research
Corpomtion reports a
^/let assets of $103 417,921 on
J
*
lmnJ*1ft nno non
when the assets were $93,793,058.
During the past 60 days, investments in steels, railroads and auto
stocks were increased by the "National" management. One new
commitment was 10,000 Wheeling
Steel. Substantial additions were
to the course of aware, is an open-end diversified
activity can at investment company required by
its charter to hold only common
stocks eligible for the investment
often of trust funds in the District of
time be only tentative," the
concludes,
"and must be
study
constantly
reviewed
revised in the
and
light of current de-
velopments. We wish to emphasize the importance of constantly
attuning economic thinking to de-
1
Columbia and to maintain a fully
invested portfolio of such legal
issues.
The
underwriter
states
that
Canada
General Fund
Custodian Funds
inc.
BOND, PREFERRED AND
Affiliated
COMMON STOCK FUNDS
Fund
The Keystone
50 Congress
Street, Boston 9, Mass.
Please send
your
ten
Company
Prospectus
upon
Prospectus from authorized investment
VANCE,
request
Funds.
111
BOSTON
£>_46
NEW
Name
City
61
Lord, Abbett & Co.
,
State.
or
DEVONSHIRE STREET
prospectuses
Address..
dealers
SANDERS & COMPANY
describing
Organization and the shares of your
me
New York
—
Chicago
—
Atlanta
—
Los Angeles
CHICAGO
YORK
Broadway
iao
sirirp
"e?sa/fiaXs'i'0'°°0'0A0°f,lnon
Jisacak_y^
South LaSalle Street
LOS
Zio
ANGELES
West
Seventh Street
Number 5140
Volume 176
.
.
.
The Commercial and Financial
Chronicle
(491)
in
made
Great
Northern
net
Rwy.
preferred, St. Louis & San Fran¬
cisco 5% preferred, Delaware &
Hudson
Steel,
Co.,
Chrysler,
Republic
Steel
U.
Shares
compared with
1951.
share
was
asset
June
on
value
per
$27.02, against $25.13
earlier.
year
$2,024,000
Net
30, last,
On
June
30,
share
per
latest
was
fiscal
year,
and
income
$1.18 per share
,
year-end
the company s
about 95% invested-
were
42
common
preferred
stocks
and
1952
McGraw
QA„tuor„
Natural rod
Gas)
Southern
raaaa
IfWELUNCTON
aaaa
cd
■■■■
and
four
«■■■
Ijiii
nated.
WMummm
increased
were
■iiiaai
stocks
and
add-
were
elimi-
were
Also, 17 existing holdings
liliiil
■■•aaaa
Laaaaaaa
Electric
and
two
were
re-
duced.
■aaaaa
Kihi
mutual fund
its prospectus
wVsK
"
of
ot
selectivity
the
in
a
20,
1952.
2500
and the
on
are
a
new
re-
dated
reached
prospectus from
with
investment dealer
your
the
and
high postwar ground
new
steel
thp
strike
nomination
settlement
nf
"accent
or
June
on
revised
7,
23
recently
1951.
copies
its
&
latest
clark
Washington
Fund-
a
!umbia
Tnd
hish ernnnd
h.gh ground, and
which
which
one
one
is
obtainable
mutual
open-end
new
There
from first
fund
investment
tamed
has
^ themselves
rather
the
J,uly 3K1952'
trom
figures
prospectus
,c°ples *
may b<! ob- "'tely
Johnston, Lemon
regarding
and its
pany
at
shares, including
establish
the price and terms of offer¬
now
ing, is
are
available
upon
time
some
request.
Stocks
F.
EBERSTADT
39
Broadway
&
CO.
the past does not
stocks are higher
in
that
than
they
not the
earnings to offer
return
you
aver-
THE COMMON
average
somewhere
the Dow-Jones computaor
those of Standard
&
or Barron's 50 stocks, or
figures prepared by Moody's
Investment
just
Service,
about
the
arrive at
you
same
for
price-earnings ratios and dividend
yields.
STOCK FUND
of
The
Group Securities, inc.
and
narrowed
2^
yields
to
percentage
of
two
much
points.
the
broader
than
it
has
ratio
in
is
a
year
spread
at
still
of
the
or
is
stocks
top
of
bull markets.
previous
•
Distributors
63
Wall
Group, Incorporated
These
Street, New York 5, N. Y.
where
individual
-
,
for H.
□ INFLATION AND THE
INVESTOR
Explains what
the
do
can
1,042
to
Exchange
aS
are
protect
himself.
□ THE FAVORITE FIFTY—Analysis
of the 50 listed stocks most popu¬
with
professional manage¬
lar
values since
'47.
For your free copies of this literature
:—check items you wish—mail this
advertisement with your personal or
business card.
Kidder, Peabody & Co.
1865
Members New York Stock
Exchange
Uptown Office 10 E. 45th St., N.Y. 17
CT-ti
MUrray Hill 2-7190
Accord-
Com-
of
5% ahead of last year.
jn the absence of actual
figures,
under the
same
The
quarter unquestionably
extend
a year ago.
this
percentage of
larger figure for the
a
nine
period
months.
The
fourth
the
narrow
percentage of decline again, perhaps to around 15% to 18% for
the 12 months. I would guess that
payments this year will
the same as in 1951 in
65%
of
earnings,
viously considerably
but less
fact
they
me
surfeit of caution
To
paraphrase
have so manj
has
about
prevented
sc.
anc
market
Price-earnings
ex-
ratios
ticipation by sophisticated
arc
inves-
negligible interest b:
unsophisticated.
There
ha'
been
a
little
very
speculation.
vestors have been
This
In-
highly selective,
is
documented by the wide
of yields and price-earnings
ratios.
■
ft
may be estimated that aggregate
corporate
earnings in the first
half
of
1952
were
about
17%
wdi
It
has
but
more
the 47%-56%
been
next few months. Like the
rest of
I wonder what will hannpn
after
aitei
„
■ ■
Election Implications
A
said
that
ob-
liberal
to
suggested
will
and
at
the
published
be obtained
may
the
end
New
of June, 52
York
Stock
monthly York
for
fee)
stocks on
a
Exchange
or more, 46 were in
the 9% range, 116 in the 8%
range,
and
146
Only
were
187 of
One
a
of
analyst
in
the
return
the
7%
range.
dividend
payers
of
competent
has been
above average accurate in the
past,
tells me that up to the time of the
steel strike he
was
estimating that
earnings
on
the Dow-Jones Industrials this year would be $24.50
a
share compared with $26.69 a
share in 1951,
dependent
according to his in-
computation.
He now
estimates that the steel strike will
Stock
only
in
and
15%.
on
Exchange,
about
vanced
200
issues
amounts
Stocks
appraised
are
rather
than
timism
or
about
or
with
market
down
way
realistically
too
much
op-
COUraged.
It
statements
going
sh0uld
is
be
that
not
way
up
y-ffrS
people
will
begin
whether a change in
thing the majority expect
ad-
between
6%
issues,
or
merely document
Selectivity is further
^-evaluating the market
whole. The market's
'
.
*
+oda
.
of
as
present
.
.
nal,"
the
and
mented
by
ings ratios.
is
a
"Wall
still
Street
further
Jour-
docu-
study of price-earn-
I
vears
^an
selling
a^
at
nearer
2g9
you im th; passion out of
political interpretations of the in-
If
vestment
0gnjze
voice
outlook
that
jn
will
you
Stalin
has
determining
American
economic conditions
over
few
the
than
years
do
rec-
bigger
a
the next
voters
of
the United States. Neither Eisenhower nor Stevenson are isola¬
tionists,
0f
and
their
both
politically
extremist
stand
in
the
(in
spite
supporters)
middle
of
the
r0ad. Eisenhower is not far to the
right and Stevenson is not far to
the
jeft
Restraining every really
radical political move, as has been
case ever since World War II
js
Congress which is pitched to
a
tbe right of center because of the
tives.
I
conserva-
question,
therefore,
anything that happens in
whether
November
will
be
a
reason
for
should
broaden
speculative
the
could
in 1952
As
the
end
be
strength. It
now
there
year,
correction
a
it,
see
in
real
a
late
early in 1953.
however,
economic
cline
into
between
of ,the
quite
or
I
out
spree
nor
an
stocks
is
to
the
important de-
exists.
yet
see
that
right stocks,
go
into
neither
technical
to
not
cash
Our
investors
get
now.
-
is the market s weak-
bruise we can
have no
broad advance of the boom type
With Neary, Purcell
(Special to The Financial Chronicle)
LOS ANGELES, Calif.—John JL
Byrne has become affiliated with
Neary> Purcell & Co., 210 West
disposi- Seventh
Street, members of the
Los Angeles Stock Exchange. Mr.
is the market's strength because
1S u16 markets strength bepai
Byrne was formerly with Noble,
so
long as there is no over-specu- Tulk & Co. and C. A. Botzum Co.
until there
of
is more
a
tion to enthuse and take risks,. It
lation
there
is
isolated
and
incidental over-evaluation to
only
cor¬
rect.
Fourth,
the
stock
Shearson, Hammill
averages,
to
The
Financial
Chronicle)
market
ad-
NEW BRITAN,
U1^au
Boudreau
has
^
more
unlikely to
result from the things everyone
knows.
The
chief
danger of a
larger decline in market prices
of
Joins
(Special
broad
Main
Conn.—Irvin G.
become
affiliated
"Ha^min
ghgan;cm
are
from this level, and the chief hope
Perhaps the most remarkable
thing about this stock market,
20
tne Jack
in
lows pub-
wouid
jqq
selectivity own the
them to
documented every day by the list
new
oast
submit the Dow-Jones Industrials
temporary phenomenon,
of
highs and
the
over
it to do.
haveXard^tTx-
I
as
problem
a
a
however,
wonder
many Pe°Pje already ]}ave the
Jhing all doped out, and the marJ?* haJ a way of not doing the
background for
,
the New
to
Washington
is not deflationary and some will
stocks. The trouble with this
reasoning, it seems to me, is that
People constantly are reevaluating individual issues rather
movements,
accomplishing
vances or declines of 10% Or
in
re-
Presidential
that if General Eisen-
reason
than
These figures
lished
election
which
ug°.' ^
that some people will sell stocks,
They
dis-
kind
market
a
stocks listed, have declined since
Jan. 1 and only 191 have advanced
10% or more,
new
after
have
market
Republicans will be disappointed,
and
sweeping
th'e
.
is
few
a
pessimism.
Second
is n0*
have
At least 535
selectivity.
of
the
hedged platitudes, but I will not more than a short-lived
emotional
try to be a prophet.
spree in the investment markets,
First, psychologically and mathI
would
warn,
on
the other
ematically, the
market
is
not
hand, that if the present incipient
dangerously over-exploited, upward movement in stocks
range.
than half of all the common
more
less than 5%.
highly
friends, who
my
stocks listed
common
that
me
down
go
S-dless
investors
many
to
Northern and Southern
future,
generalizations would seem justified. I will try not to talk in well-
^ haS
this
the
"ess
are
great
continuing loose coalition between
Generalizations
Looking
According to Mr. Clayton's figures
(which
election
election.
Dressed
^
in
6%
V
low and dividend
yields are high
There has been an increased par-
scope
from
as
cesses.
Dow-
merce, total dividend payments in
the first half of 1952 were about
third
inflationary® UvhoVml^ve^fee
speculation is at once the 1JaaF"
K.el s weai^n.eSl,e J113 e. s
offered
Founded
rail shares.
Department
'
to
preventing
the
on
to the
a°^° ibu^Ko° more ^an ^an in late
were selling been down
much
is
shares and
5.99%, and only 158
as
The
1951.
Stock
as
still
tors and
ing
most
you
opinio^
in one
cautious
This
Jones Industrials, of course, do not
take
into
consideration
higher
dividend
payments
on
utility
issues
selling to yield
were
all
a
never
been
much.
probably will be at
with
even
for
York
yielded 10%
ment—relative
corporations
least
dollars
1916
jumbled
seems
investors.
Churchill,
Actually, this year's total diviin
these
It
there has been
com-
a
stock
New
do
people
payment
1905
merely document the things that
we all know. For a long time
year
spite of an.estimated 15% to 18%
decline in earnings after taxes.
The dividend payout still will be
relatively conservative at not far
Hentz & Co., at
only about 182 of
common
the
on
share
a
the
Thus, only 340 of the selective market. Since Jan. 1, the
1,042 listed issues sell near the Dow-Jones 70 Stock
Average has
average yield for the entire group, around 107, or about 10%. Of the
—Shows how all major wars since
1259 have caused inflation, and
investor
of
What
estimating
this
a in
« m
the
on
than 6.99%.
often devaluation.
<
the
to return
SERIES 1
r
issues
yields,
idea
poor
$15.25
fig-
1901
319%;
in
160%; in
'-iff /0!
share.
dend
1907,
In
bee^higher tha^^inone^ea^
Deen m&ner inan
year.
for
among
be about
the end of June
to
in
share in 1951,
and dividends in 1953 at $15.50 a
dividend
listed
1
CHECK LIST
$15.15
is
Dow
pared with $15.32
sell-
prepares
I
INVESTORS'
at
the
cited.
was
suggest?
source
on
call
share
a
be
the
on
1953
quarter probably will
price-earn-
averages of
a
same
dividends
ing.
According to the monthly
compilation which Harold Clayton
k_
professional,
of
averages
ings ratios and
however, give
Yield
in
into
earnings of $25
Dow next year.
first
.
Divergence
earnings
interesting
some
can
244%;
the New York Stock
on
turnover
being cut to something be$23 and $24 a share
His
decline to
request
from your investment dealer
defi-
some
trading
ures
tween
2%
bonds
favor
in
been
has
and
The
was
on
between
versus
it
as
but
ago
bonds
on
points
stocks
high
as
yields
somewhere
percentage
.iavor
not
between
spread
stocks
range
1952
projections
5.9%. Whether
use
tions,
Poor's,
the
an
of
and
in
The
the
on
per
share
Dow
stocks.
selling,
between 5.4%
on
They
age, at somewhere between 103/4
times and 11% times current
INC.
New York City
prospectus
then.
were
same
are
dividend
a
than
now
turnover
it.
prove
company.
of
result
and
a better business
earnings trend and tn a mnre
and
oi
its
idea of the change
which has taken place in the rat''
paying ability. Merely
that stocks are priced at
dollars per share
more
in-and-
as
developments,
to
and
SJibTto? trX °at.'raders' Analysts know it from hower wins, at least after the iniCvicE
co^ ^eir personal experience, and th< tial enthusiasm of a celebration.
first
in
Pleased,
..
Prospectus describing the Com¬
a"d
as permanen,
than
items
news
tne
of
owners
m°re
investors
com-
page
dividend
A
that
adverse
candidate wins. They reason that
if Governor Stevenson win^
thf*
u governor Stevenson wins
no
f
investors
What's Ahead for the Market?
say
comnared
can oe no ari?nment wit
argument
conclusion
Exchange,
to
he
ean
the
io
To give
Continued
traded,
Industrials
things point to
As
of all listed
22% in 1946 and 24% in
dated
from
investment
T/al
new
new
common
prospectus
14%
in 1942.
9%
Post 0I"ce Square' Boston- Mass'
able" candidates by both
political
parties. A list representative of
2, PA.
sievens
Fund's
1947,
and
opinion
my
Dow-Jones Rails are more
likely to advance than to decline
Stocks recently have
13% in
in 1940,
were
1950, 23%
as
were
1945.
stock
.
years
1941
stocks
may
any time in
,
low turnover
1949, 14% in
say
and sometime in
the
tended
or 21
years (on a dollar basis),
within striking distance of the
lowest level ever recorded. Othei
,
available
that
adverse
is
12% in
Minnesota fund,
prospectus of March
"average busing" would not he in
PHILADELPHIA
"has been at
20
now
quarter, it is
the
Dow-Jones
ignore
with the market higher
Francisco,
now
were
Quite remarkably, the turnover
1952. .this year,
California.
Arrii i, 1952, and is
hn<?
share once, provided there
duplications.
Lowered Activity
has
San
listed
every
no
July 28,
fund,
Building,
qcudder,
<?toek<5
talking.
Fifth, over the short term
ly eight years at the
rf trading to trade in
prospectus
copies
Russ
fraction
lifted
is
current rate
19
almost every market
commentator
fourth
T«f TfU°n
stock
Allen, President, pointed out that only a small
nf
this
York
between
stock
market, Hariand H.
of
New
words, it would take approximate-
e°eTSs2fecUv«7to^toek
gree
the
on
Exchange was at the annual
rate of only about 12%. In other
Jan. 3,
?pe"^enfd investmentnew
company,
leased for dealers
from
months
seven
turnover
PROSPECTUSES
commonwealth
May
first
year,
Shares
emphasis on
Growth Industry
ridge
pre-
pre-
the
1946
growth
its
revised
^ushls^Ho^da'power^me11
xerrtd,
its
Stock
NEW
blue
the quarter ended June
Industries,
Florida
Power
ferred, Mathieson Chemical
industries
far under
a
12.2% gain (including
distributions from capital
sources)
in net asset value per share during the 1951-52 fiscal year.
three
stocks.
During
be
showed
1950,
hiaaaa
non-defense
now
With
a1? 4capital sourJcexsthe
At
a
would
paiu durieng th.e year stocks,
funds
in
stressed
to peak.
$1.08 per share from invest-
ment
$2,911,000 at the end
were
the
80,560.
Industry
of its fiscal year on June
In
^res outstanding increased
107,746 from
were
NET ASSETS of Growth
value
S.
Steel.
30,
$21.30.
Inland
and
asset
&
^Co^
Street
Sweeney & Co. Add
(Special
to
The
Financial
Chronicle)
NEW
however, is the exceedingly low
larger advance, must rest in
things we do not know or suspect
rather than in the things about
BRITAIN, Conn. — Mart*
•
garet R. Wiecek has joined the
staff of Sweeney & Co., 55 West
rate
which
Main Street.
of
ownership
turnover.
In
a
almost
every
investor and
i
•
20
Continued from first page
for
?
We See It
As
War I.
The inflation thus
situation
injected into the agricultural
But it remained
going began to get rough.
themselves
for President Roosevelt to invite the farmers
to
provide them with
country should do
decide what the remainder of the
to
abundant life.
a more
Using Monopoly
Another element in the
years more
obtain
and
population which has of late
to depend upon monopoly to
would not otherwise bring is
more come
work
its
income
organized labor. An excellent and dramatic illustration
just recently been provided by the steel work¬
ers and their union—and the Administration of President
of this has
As
Truman.
in
workers
will be obliged to pay the
more than they
could have
result all of
a
the
us
mills
steel
pointing an economic gun under the
community—a gun provided and
loaded, as it were, by the Government of the United States.
The steel workers were already among the best paid work¬
without
obtained
ers
of the rest of the
practice of squeezing more and more out of the
.) for less and less work.
Such indeed has become
a
public
regular
a practice, incidentally, which is now regularly
pushed to the point where it no longer is to be regarded
as merely a load upon the employer.
practice,
And it
now
often is not
merely
a
living during the
working days of the wage earner, but at least part support
for him when his working days are over that is being de¬
manded—and
rather
than
obtained.
work
Men
and
who
women
demand
do
less
their
right that
employers shjall pay a substantial part of the cost of main¬
taining them when they are too old to work. And so we
might continue to list the various "benefits" which wage
earners expect for less work than they used to do without
these extras.
The economy is able to bear all this — if
indeed in the long run it proves to be able to bear it at all—
by reason of better tools, equipment, and organization, in
none
of which the wage earners have any-appreciable
more
now
as
The Veterans, Too
\
But it would be unfair to dwell too
long upon what
organized labor is doing in these respects. Space must
likewise be given to some recognition of the others who
expect at least a part of their living without working for
The veterans of recent
part constitute
wars
in which
we
have taken
saddening case in point. It would be
difficult to say how many votes these veterans and their
organizations really can or do control. Clear enough it is,
though, that the "practical politician" believes or is afraid
that they control enough votes to be well worth buying
and dangerous to ignore. There was a time when much
was heard about the "pension scandals" of earlier wars—
and they were scandals in every sense of the word.
So
some
bright mind came forward with the idea of having
these matters fixed in advance by "insurance" and the
like. Well, what has actually happened is that the pen¬
sioners
.
position to demand more than they earn. One can
scarcely believe that such countries as France, for ex¬
ample, is not playing us for all that they can get from
us by whatever device comes to hand.
Britain is far from
free from the same sort of tactics.
One would suppose
that it was not these peoples themselves who would be
the first to feel the brunt of any such attack from the
East as is feared.
Either there is no such danger, and
their
they, knowing it, should go about their business normally,
or such danger is real and they are the focal points of it,
in which case they and not the United States should be
the first to try
to fend it off. The way to make a
that goes for nations, too.
living
is to work for it—and
Continued from page
Thursday, August
.
cultural economy to an
7, 1952
industrial
craft unions come firs«'
and industrial unions follow at a
certain stage of industrial devel¬
economy,
Craft union membership
of the aristocracy of
labor, specialized personnel, who
have learned their trade through
appenticeship and journeyman
opment.
of foreign nations are copying
population which insist upon using
elements in our own
.
.
is
The requirements
of
workmanship developed by the
older craft unions tended to create
training.
a
type of attitude on
toward their
the part of
unions, an
likely to be
the
same
as
that found among
members of industrial unions. The
craft union man joined a union in
order to advance himself in his
workers
is not
that
attitude
particular line of work, * improve
his skill and standing in the trade,
protect going rates of wages and
the standards of work. But the in¬
dustrial union movement was an
organized
mass
movement de¬
signed to serve the interests of un¬
skilled as well as skilled labor,
and
8
,
made up
depending upon the power of
political power and coercion
mass
to achieve its ends.
Enterprise—Free or Otherwise
nomic trial and error became
the
than is the case
The
Lest
in our country, for the
I
be
CIO
accused
of
damning
generally, I
want to make it clear that the de¬
labor
movement
example, where 55% or 60% of
the population live in cities and
velopment of industrial unionism,
of change which af¬
where a very large part of the the
fected the status of the business¬
CIO, was, in my opinion, a
population is engaged in indus¬ natural evolutionary development,
man has probably been more ap¬
trial processes of production and and I suspect that the CIO suc¬
parent to many of you during the
commercial enterprises.
ceeded in organizing workers be¬
past five or six years than was
In the early phases in the de¬ cause
true
they simply took over lock,
during
the
earlier stages.
What I mean to say is that the velopment of an industrial society, stock and barrel, the methods of
government is likely to be inter¬ some elements of business man¬
process of big government and big
trade unionism started
in 1933, ested in activities such as legisla¬ agement, using favorable political
tion
affecting coinage,
national influence and coercive tactics to
and while it is true that the ef¬
order of the day.
The process
extent defense, the tariff, etc., without achieve their ends.
much
regard for the goings-on
I think we ought to understand
within
the
industrial economy. one thing clearly. There is not
big corporations, there was little
Government during such phases is much sense in trying to evaluate
talk prior to 1940 of socialism,
statism, or as a matter of fact, likely to be conservative having the relationship between business
been
produced by the votes of and
other "isms."
government,
between
the
farm families and a scattering of
Most of the discussion in busi¬
Economy and the State, so to
industrial workers. If there is any
ness
circles had to do with the
speak, unless one can approach
considerable political interest in
the appraisal without too much
aggressive tactics of trade union¬
the economy at all, it will have to
ism and the favored positions in
emotion. And the labor problem,
fects
were
felt
to
some
prior to the war, particularly by
the
which
unions
found
them¬
do
with
the
agricultural
econ¬
so-called, which is an important
and omy, not the industrial economy, element in the foregoing relation¬
and
with
tariff
legislation de¬
due to the friendly attitude on the
ship, has to be looked at very
part of government personnel to¬ signed to protect so-called "infant" clearly and very objectively.
The majority of votes
ward trade unionism. Let us look industry.
I have stated that the develop¬
at some of the elements of social will come from farm people, so it
ment of the industrial union, of
follows that there will likely be
change.
the CIO, was a natural evolution¬
maximum attention to farm legis¬
Elements of Social Change
lation. But once there is created ary development in the transition
to a highly organized industrial
In order to understand the na¬ an economy which is predomi¬
economy. Industrial unionism was
nately industrial, the picture
ture
of
the
changes that have
successful, in organizing the
come
about
since
1933
and
in changes. The predominant class of
workers of
industry, because it
order to define the position of the voters is industrial workers. They
was
carried out militantly, effec¬
businessmen today, it is necessary become organized and things be¬
tively and intelligently. And the
to take a look at certain elements gin to happen.
CIO was aided by certain malcon¬
Historically, our country, and
of social change as they are likely
tents who got into the labor move¬
to occur over a long period of time certain other countries, have de¬
ment and who were well schooled
in
any
country where there is veloped out of such agricultural in the Communist philosophy that
but
industrialization
transition from a predominantly economies,
the end justifies the means.
has gone much further here and in
agricultural economy to an indus¬
Another factor that had a place
trial economy.
But before going England than in other countries.
And with industrial development, in this whole situation as regards
any further, let's have a look at
the American economy as it is at there is likely to come the first negotiations between management
signs of trade unionism in the and labor was that the pattern of
the present time.
form of craft unions.
This type negotiation was not one of bar¬
The economy
is made up of
of unionism is made up of spe¬ gaining but of militant demand
some
10 million units or enter¬
and the negotiating people of the
prises and of these, about 4x/2 mil¬ cialists, so to speak. Carpenters
unions were instructed that the
lion are business enterprises, the form a union, machinists form a
a way to bargain is to ask for two
remaining 5x/2 million units being union, the millwrights form
or three times as much as you ex¬
farms and agricultural enterprises. union, sheet metal workers form
pect to get and hold your ground
Our economy can be said to be unions and photoengravers form
until such time as you achieve the
unions.
fairly well balanced inasmuch as
ends which you would normally
we have a sufficiently large agri¬
Craft unionism is usually the
expect to attain. I won't go into
cultural economy to furnish food¬ only
type of unionism to exist
the technical aspects of this par¬
stuffs for our population of 155 through a certain phase of indus¬
ticular method of bargaining, but
million people, and our industrial trial development, but once in¬
they are very interesting and de¬
gets into something ap¬
economy is more than capable of dustry
rive from sound logical and phil¬
turning out the goods and the proaching mass production, with
osophical doctrines.
services
required to satisfy the large numbers of workers of dif¬
The point that I want to make
needs of our population, to pro¬ ferent crafts working under the
selves due to the Wagner Act
part.
it.
Nations
thoughtful observers could scarcely escape
late
noticing how well a number
but they have not been alone in this
in the country,
living
And Foreign
Of
inevitably saturated agrarian districts and played
hob when the
a
ourselves. The way to
is still to work for it.
living upon what we do
our
make
nose
Financial Chronicle
The Commercial and
(492)
than
were
the
old
a
handed
some
terms
which sounded better
and they have
seized upon them to
justify and to obtain many, many times what the old
pensioners ever were able to worm out of the remainder
of the country—and they find it possible to hold their
ones,
heads up while
Of course,
they do it!
it is true as sometimes cited in defense
of all this chicanery that subsidies are not new, that a
good many who now decry largesse to other elements in
the population have been "aided" in one way or another
for a long, long time. There are manufacturers who in
times past have enjoyed something akin to immunity from
foreign competition by means of tariffs. Not a few of
them still enjoy something of the sort. It v/as this situa¬
tion that the farmers used to decry,
adding that the very
nature of their business and of the world situation made
vide necessary defense
here
and
ment, business management,
time produce a
shipments.
it
impossible for them to obtain similar protection. Then
followed numerous efforts to provide the
agriculturist,
with equivalent help, finally to be succeeded
by direct
payments. Shipping is another industry which has now
come to
regard subsidy as its right—partly, it is true, due
to labor
pampering in this country over which the industry
has little
or no
control and to laws which
prevent it from
getting labor where labor is cheaper.
But
all this
evils may
process
does
be cured
or
not
in,the least argue that these
rendered harmless by the simple
of adding others to the list. We
as a
be better off if
we, each and every one
of
people would
us,
depended
equipment,
But let's
of
of
economy
armament same roof or for one company,
and at the same there tends to grow a demand for
margin for export another type of unionism designed
to embrace all workers, regardless
consider
another
type
principally
made up
agricultural units
or
farms and
with little industrial development.
The type of country in which this
of whether
ists
or
In
the
union
they
are
as
industrial
the
United
States,
movement
was
union.
the
in
industrial
manage¬
was
and
completely unpre¬
pared
for
the
evolutionary
that happened, and big
fell like flies before
and aggressive on¬
companies
the
militant
craft slaught
process
that
utterly
craft special¬ changes
laborers. This type of union
is known
is
of
the
CIO. I can state
feeling that both
business generally
here that it is my
more
than
100
years
ago,
and the CIO and
very few cities
would have been better off in the
relatively small urban or gained great strength in the latter
long run, if businessmen had been
city population. The nature of the part of the 19th century. There
was
little
industrial
unionism schooled and better prepared for
people can be supposed to be con¬
the social changes that came about
servative, born of the self-reliance prior to 1935 or 1936 when the CIO
during the '30s.
was formed.
that seems to go with the agricul¬
Out of it all, we got big union¬
tural type of life. Democracy in
Now, it is probably a good idea
such a situation wherein govern¬ to stop at this point and untangle ism, and union leadership became,
occurs
and
usually has
a
ment is produced by
a
of
the votes of
entirely
different
some
of these matters.
The thing
and has continued to be, a power¬
trying to make clear is ful factor in our political, social
character that in the process from an agri¬ and economic situation. And the
rural population is likely to be
that I
am
Number 5140
Volume 176
.
.
.
The Commercial and Financial Chronicle
(493)
inevitable
by-product
of
all
this
this is
very, very important fact in this country for
everybody, but
big government, the so-called to get straight—to remember. The most of us believe
that it can be
Omnipotent State. This caused in- standard of living is determined
achieved, that the so-called lower
dustrial conflict.
by the volume of goods and serv^ third can be
brought up to a highwas
•
*
i
r
industrial
ices Produced within the
t\*-i
coniicit
An industrial economy is
nated by two types of
economy
and marketed to the public.
jt is customary to
regard
domi-
the
the structure of
our economy and
about economic
conditions
understanding of the I mean to say is that the
the political
er
standard
of
living
through business cycle will play an imtervening or interfering with busihigher production, greater capital portant part in
determining the ness processes, business oreaniza-
investment, and lower taxes with- rate.
standard of living in terms of out
disturbing, unduly, the incomes
The business cycle is,
to my
automobiles,
radios,
telephones, of the upper two-thirds of the mind, destined to
ment and labor, and since as far
play a part bemeat, wheat produced per capita; people. Those of us who have had
cause a depression can
bring about
back, certainly, as 1700, or before for
example,
all
things
being the
privilege
of
studying
the a real crisis. And because of the
the so-called industrial
revolution, equal, if you have 155 million whole
problem believe this pos- way things have
there have been conflicts between
developed, bepopulation and 155 million units
sibility to be so practical that it is cause we have
these two elements having to do of industrial
been, by force of
products or agricul- hard to understand
why anyone circumstance, led into a situation
principally with division of the tural products available for distri- would fail to see
this point of wherein
big government and big
product; that is, essentially, the bution, it's quite likely that peo- view.
unions dominate our social situacrux of the wage
problem. True, pie, generally, will live better than
Nevertheless, here is the very tion, these very forces will dictate
a plant does not
produce a thous- if only 50 million units were pro- core of the socialist and statist
that we can only go in the direcand pairs of shoes and then tell duced,
and,
comparatively,
an argument.
They claim that you tion of more government interthe workers, you take 400
pairs economy producing only 15 mil- cannot provide financial
security vention in econo m i c affairs.
and management and the owners hon units would have the
popu- for all the people except
by State Democracy,
in
crisis,
tends
to
will take the other 600.
No, of lation in a pretty bad way. But, regulation, ownership and control turn to some form of
totalitariancourse not.
Management produces even this doesn't give us the pic- of the Economy. They assume that ism.
1,000 pairs of shoes, sells the shoes ture as a whole. Now I want to they can take over the
Economy,
Nationalization of some indusand pays the workers the value of §ive you the Statist argument.
industry and agricultural life, run tries
and
socializing
of
many
400 pairs, using the remainder of
statist Argument
aS i* ls-uU1?ni?,? now and
features of our existence cannot
the income from the sale to
pay
+
redistnbute the product of the be avoided, unless there is a
lor
leather, supplies, plant exHf.re is how the social theorist Economy equally.
miraculous change in public opinpense, repairs, taxes, and man- handles this particular problem.
There are several reasons why ion which
certainly is not indiagement wages.
Re says\
Sure, the American jhis type of thinking is in error, cated today.
So, in effect, a wage dispute is a ecoiaomy ls a
,n^,' aa.
Flrst °f all. if the Economy is takPeople demand security and, in
claim for
and
workers,
or
What
relations
between business and
government
resulting from the government in-
so-called man-in-the-street. As to
the rate of change, I suspect the
personnel,
bosses
21
a
manage-
tion
business management occurred very, very little. Prior
tu
1930, there existed a climate or set
of
conditions
in
this
or
wherein
ly free.
enterprise
We have
country
relative-
was
now come
to free
enterprise,
Free Enterprise
*
„
.
.
,
•
,
hav® overall the highest stand-
larger part of the plant
in terms of dollars. And
a
output,
the
only
practical
dollars
more
to
way
available
shares
and
ers
shareholders,
workers-or
so-called, of
on
own-
"price"
pair of shoes This
a
plied to the economy as a whole.
Labor disputes grow out of dis-
tral
J0 Jf?
plon-,
J ^
developments
and
so-
never
getting involved in economics.
bett
to
SLS
overly-simplied one,
it.) By goods, I refer
an
use
tangible
production
such
|
,,
as
p
stoves, automobiles,
turbines
7
tbl.s.
thebasfs
but
meeting
the
nonulation'
it
"
*
eHectivenessin
requirements
must
be
.
_
,vF
made
and
-
-
nf
the
in
.
Hvintf
hf ?hP production
the n?odnct
possible
by
ir,
elements
That's
just
the
in
common
The economies of Cuba of
tx'-i..
sense
-_i-
e
Guatemala,
i
of
j
Finland,
or
Italy
determine the physical volume of
ii.
.
•
1
.
for
distribution
are
among
the population.
An
efficient
economy will prohigh standard of living and
If with a population
of 150 million people, the
economy
produces 1,000 automobiles a year,
you won't have much of a traffic
vide
a
vice-versa.
Jjuiinenr.v.v
ph losophy
hphin^
be
d
,
The
same
example and reasoning
applied to shoes, to hous-
can
be
ing
to transportation
or
to butter,
Viewed in this way, the American
economy is something to look
at with awe and wonder because it
rtu„ately
na-
me„ who have
lsm ln England where the govern- every seven years, 10
years,
or
14
m?nt °wns and operates the coal years; it just happens. And
the
mines,
transportation system, knows
1
n
•
_
it
_
people
who
aJe
are
for
those United
exactly
why
it
no one
happens,
The conditions which have seemed
to cause a specific depression may
not have been present to any influential extent
another
in
unfortunate
^
so
.
at
States^ No TeffnTte
in
_
the
reces-
of
living,
in
terms
rr^v/->rir.
this
have
them.
The
th^m-
The
nf
none
maior
these
at-
problem
in-
major problem
not
y
o
that
come
men are
the least likely to take
^tn
time
but
do have
definitive stand relative to
this
i
in-
+
we
+
a
•
r
*
ilfnf ou^worldfy
not, surprisingly enough, from the
government,
but
from
economic
activity within the economy.
And
or
the
term
agricultural
retail
a
iarge
is
store
railroad
unit
system
a
bank
a
a
photo-
a
engraving shop. And 'as I stated.
earlier, the economy is made up
0f thousands of different
types of
enterprises.
And
as
regards
the
word, "free," I understand that to
relative absence of restraint.
mean
Liberty has been defined
domi from restraint.
a
step further and
connotes
is
free-
as
We might go
that libertj
say
freedom
of
right to operate an enlong as that enterprise
so
operated
in
such
a
manner
as
not to interfere with the
rights of
other people. If I had the
time, I
would like to devote a
considerable discussion to this
matter of
enterprise
or rights.
and
social
But l think that
ground.
common
obligations
we
nQw
We
are Qn
understand
«
and
interferes
in
normal
enter-
prise management; if it regulates'
pricing production, procurement,
personnel
which
and
financial
matters
are
purely administrative
aspects
of
corporate
existence,
And we know too tbat since
1933
government, for
one reason or an-
0tber, either directly
bas come to pjay
indirect-
or
a
all
enterprise,
iarge
very
part in tbe operation of
and
any
industrial,
com-
business.
is
as
as
is
™Xctio°n reared to'provide'°a bonftly believe that things would Someone fwill say-to us, "How is
sa+;sfactorv standard of living for
better if the government had business.
And dependen
p
Ipiple
otheAvise woukf not more to do with the control and our feelings at that particular
..
_.
.
...
s:mDie
a
operation of enterprises. I don t time,
think
you
And
system of free capitalism and
the
we
may
answer,
will question that point, pretty good, good, or lousy
faculties
universities
of
our
filled
are
or free enterprise or under a sys- this type of Socialist.
tern where you have State owner- agreement on that?
ship
and
State
capitalism
State enterprise, the
essentially the same.
inevitably must be
The
Any
dis-
and
problem
whatever
a
,
our
have conditioned
thinking at that
ment
when
The Statist Trend and the
we
are
Business Cycle
is
our
own
result
^
and
reply, leave out any
with psychological
factor
that
may
schools
attitude or
particular mo-
our
made
the reply;
thinking about
little niche or particular
we
entitl^H
in such a way that it will not
to be grotesque, silly
pear
apor
nrothr
of
cfor>ovfji
Socialism,
Statism
irioo
nf
+V10
r)irop_
Totalitarianism,
whatever
ahle
generally
amount
of
economic
data,
government.
Back 30 years ago, this last conI doubt that there is any- to call it. It's likely to be a pecu- sideration was a relatively small
who would not like to bring liarly American form, suited to factor in any curbstone opinion
about a higher standard of living the temperament of our people, that a businessman might give
stupid.
or
you
choose
business
Since 1933, there has
powerful
a
or
emerged
within govern-
group
.
?
etatest
overall
planning
econ-
bv
B7wcon "in "an ^av'nn'
Problem
x-iuuxcxu
states th
'
of
ui
c
Full
run
e
f
ig
lan
nQt
baged
"Tho
Employment"
iMiipiuyinem
planning
''The private
tem is irrational
it
the
Rrbish
A British eennnnfist Joan
economist, Tnnn
A
fol-
as
eXrprk?
in the
'
an
se^^^^
that
conscious
Evervtbjng happens
as
a
re-
suit 0f innumerable individual decisions
Society is broken
up into
variety of groups with conflictjng jnieresiS) and economic life is
a
general game of catch-as-catch„
ca°
r_+Jnnal
CVcW
^a rational >economic sysiera,
she'continues,
me productive re-
^0l}FJ~es
society would be used
deliberately to meet the needs of
people.
a
V>e
for
Economic Planning
_
^
anv
,
sympathy
ment who would subject the
foregoing, it
1,iryHorCtQ^ri
control of business and agriculture, hard to understand whv wp
why we,
nontmi
j
bulinesfproblems
a
thp
the
hnsiness
higher standSo, where are we going? Well, business. In order to answer the
ard of living for people incapable I think I know, generally. But, question with any degree of inof earning a living,
paid
for unfortunately, I can't tell you how telligence, a person would have to
of through a lower standard of living fast we are moving. I have a take into consideration a considerhv nAnnId
out of the economy—
business
farm
ntiQ
volved>
}ookmg at thl"fsman- No one will argue that point. Do individuals, should be particularthls
that the incomes
way' is tbat the incomes Of man- we v.ixr r-.oooirY-.ic+i^
of
bave Socialists,
of
so-called, in ly pessimistic or optimistic at any
agers and owners and of labor this country? certainly, we do, given time about the condition of
have to be leveled off through probably millions of them; not business. It is
true, that hardly a
taxation in order to provide the actually members of a Socialist or day goes by that we don't express
government with the necessary Communist Party but people who ourselves regarding business.
wnnlH
point
goods
while'
because
mercial and agricultural.
So-called
out-produces any economy in the
world and produces the
highest
standard
tant
economists that the best qualified
"J
they
Inmsneets
™at }hey have none of these at¬ strong tendency in that direction, prospects of future
ha^e n01?e ot ;h!se at
ot future
tributes or do not want to use
tributes or do not want to use in the direction of government
In view of the
that
under
afford them.
and
an? PerbaPs all business and pri- ab°ut many of the characteristics
yate property, by 'Society' of these changes in the business
througb government ownership, cycle. It is suspected that there is
government enterprise. In other no periodicity in the cycle, that
70rds' you bave a form of soclal- 1S» we know that it does not recui
Socialism
Provide
people
can
is
Socialism™Well, Social-
is
.
r\r«
should
have it. it is that simple.
Whether this is accomplished
of
of
sion or depression of business
anywhere at any time when the
A change in the trend of
problem; and automobiles will be
so high priced that
very, very few
sort
imDor-
used daily
in conversation
nofe
aB the people understand
exactly
what it means. An enterprise
is a
way to create terprise
debasement
ly'th? effect of Soc!alism Prevails
in
labor
wav
•
goods and the services which
fvailable
through
is
not very good. Boiled down, I sup- derstood from this that Socialism better or worse will happen It
pose tbat thls means tbat people can be found in a variety of forms has been my experience in diswho've talent for management and and degrees of control.
cussing the business cycle with
clrillc?
tirnrlr
nnrl
rtnnnAmictc
skills for work and Kruxim for
brawn
Kocf
litlPn
Bo
we
have
on
pipmpnic
marketing
economy.
judged
®_.
"
ctanHowi
of
Enter-
very
^
it must be judged
ofits
"Free
thfc
b|isia*. V1®w beld in this country decisions of business as regards ness activities can be gradual or regulations and directives, togethponcies and practices, dewherein a man is entitled to what prices, wages, production and rt can be abrupt. But it is Pretty er
riye from government
personnel
be <;ai] earn and
u
f
of
marketing are under strict control difficult to state, even with all the wbo very oBen bave no
particuJvan.t to, w0^k» Re w0/?1 eat' atr of the government even without statistical data that we have avail- lar
knowledge or aptitude, or shall
leas* n0^ re8ularly and probably actual ownership. It will be un- able today, just when a turn for
that ecoform or an-
you
activity, in one
other, is as old as society itself.
And, if economic activity is to
be iudged at all
nn
£e<rds-.
And it will be imme-
nomic
crisis
Social unrest and insecurity are
pretty likely to result from such
policies. And a depression, with
that our
current
debt, inflation and
^he gas industry. You find Social® ^ ai
^
' J!m at its extreme development in
From each aero
hil Russia w
? there is no private
lty> aad to each accordi g tothis ownership of property. Essential-
society is
survive.
basic
..
if the population is to
survive, or
to use another
term, if
on
wfsrpr hp
nUnnbUnn ill
J?e population illihA
JPf~th\r<*
iLf*1 7°
I have in
transportation,
diately apparent to
woVild know that the surest
^
fh^
ifi/n
power presses,
amusements, retailing and wholesaling and one-arm lunch rooms.
The production and marketing of
goods and services are necessary
to
Pe°Ple
considerable
a
g0vernI
c°"° ?y' * ® jQg
j e.e a^2iff?rpnt
and—handkerchiefs; and
in speaking of services,
mind
banking,
to
Econ6 cie^t™"161^ enterprise is lneffl~ artificial price level, can easily
Socialism
Wiali^aPS assuredly lead us lnto
the
i{ th
SrSSSS6
but let's
access
deal would not work out
governmen^S^lated
g
simple and fairly acceptable
obviously,
have
pi?£®r dls^lbu: amount of the goods and services the currency, inflation,
million units of produced (Pareto s Law) and other tional insolvency.
ln between.
and nolitical changes without
A
re
good living. Some will be rich, peopte would have relatively litand some will be poor in terms of tie. Thafs what has happened in
worldly goods and some will be Russia. The third reason why the
organizes against management.
It's pretty difficult to talk about
industrial
ownership, you
going
agreement about the distribution
National production.
So labor
of
cial
ing
term
prise," is important
j
number
the
line of reasoning can be ap-
same
you
this
f
? rf11 sl(terable reason to believe that doxically, people will demand se- Liberty can be said to enterpriserequire thai
oaopJf m
co}^ ,ry'
.?° rfgar.
s of the type of social curity even if, in the end, it ruins a man be permitted to
buy, sell
^
r
m SPi
?]ru ur<; ba* y°u have, that oven them.
produce, consume goods and serv¬
°
ona-third ?
P°§U-u~
vf
from scratch (which
it can be stated here that Com- ices under conditions of minimum
?lon
ih-fod, dl-clothed and ill- would be practically impossible in munist economists and students of
restrain from the
government.
I
housed. In other words, he takes the first place) it would not be too economic history have held the
suppose that we might say that a
th(i P°s.ltl0n
Just so long as long before you would see the re- belief that, given time, we will
person or
enterPrise and marketing is in development of a form of social spend ourselves into disaster. They have the group of persons should
produce
or
same
hike
&0
?n.
distri-
management,
shoes with the
more
of
of
the world and
m
Pro^uc.e those 155 million units of
make
for
bution to labor is to cut down
the
aid of livmg
en over by the government or by the minds of
many, government is
the State, personal liberty goes out the
only source of the security
the window. Second, there is con- which they have in mind. Para-
Now
one
a™ so muc
;ae:
,
we
p
ave
a
a
so-
a
risibilities 'of
^a;.ana"stb®n pi uu
Productiveness
e
creasing
i
eness
in
01,
roomanialTthe miiril'furnishroom^and al^bef^a^tirtaSimMit
ings of life, and for entertainment,
one
Continued
on paqe
22
.
The Commercial and Financial Chronicle
(494)
22
Continued from page
.
.
Thursday, August 7, 1952
.
and
security,
was the order of the day, and the Birmingham, England, or Bakerslabor
leaders
and
intellectual field, Vermont. This universal of
human
action
transcends geog¬
tirely willing to trade such free- hangers-on were in top places,
dom
as
they had for expected
There is reason to believe that raphy and politics. It is a funda¬
governmental aid and security.
the middle class was frustrated, mental of behavior which will
them
would
bring
order.
21
They may have been en-
•
Enteipiise-Free
education and health services,
"Needs
re¬
enterprise. Talking before a group
in London in May, 1950, Professor
Robson stated that one must not
authority
In a rational
limited.
are
sources
and
boundless
are
set to
the resources would be
work to meet the needs on
some
system
economy
those
priorities,
of
judged the most necessary taking
precedence over the less neces¬
sary." (From "The Problem of
Full
Employment," page 17, by
Joan Robinson, published by the
Association,
London,
Workers' Educational
Drive,
George's
St.
38a
sound very well, but
of economic ac¬
That may
overall planning
change from pri¬
that the
assume
public enterprise cleans up
vate to
the
the subject of public
on
rela¬
industrial
of
problem
tions.
relations
dustrial
As industry
tration.
im¬
very
a
are
becomes na¬
tionalized, trade disputes become
more serious to the public.
There
high degree of integration
under
nationalization.
The
Na¬
a
overall control and tional Coal Board, for example,
activities means in¬ is a
single employer rather than
evitably, control of people. The the
1,400 private employers who
basis of control must be the judg¬
existed before, even though there
ment of the officials who dictate
were
industry-wide labor settle¬
control, judgment as to how the ments made
prior to nationaliza¬
factors of production are to
be tion."
utilized and judgment regarding
Organized labor has, in Eng¬
the volume of goods and the type
land, made the principal demand
K } of goods and services which are
for
nationalization. With
public
to be produced.
Inasmuch as the
enterprise, labor is aware that the
volume
and
the
marketing
of
tivity
means
the control of
goods and services determine the
of living, the standard
would be determined by the State
State direction and control of
standard
economic activity is the very
anti*
thesis of the American idea. Under
such
of
set-up, freedom of choice
a
ownership
free capitalism is
or
replaced by State capitalism.
Every element of production ex¬
which is present with pri¬
vate capitalism must be present
with State capitalism.
In manu¬
facture, for example, the prime
costs, made up of direct labor and
material costs, must be the same
or greater in a State owned oper¬
pense
The
ation.
head
same,
or
manufacturing over¬
likely to be the
costs
are
It
greater.
administration
eral
of
said
American
critic
sane
will
much
costs
higher.
Actually, whatever else
may
be
no
that man¬
agement is not interested in min¬
imizing
profit,
maximizing
anyone familiar
and
costs
will
nor
with
production argue that the
quality of product in this country
is inferior.
Profit,
must
is
gone.
longer
no
And when
emphasis on
what
it
you
will,
has ten
rights for himsel
refer to this
and tax become
at the point
tion
one
and the
when taxes
Even in
100%.
are
tax, but profit
as
a
same
profit
on
small opera¬
the Federal Govern¬
today,
ment may take 62%
of the profit
nothing of the amounts paid
government.
The whole question resolves it¬
self into a question of whether
to say
to the lesser levels of
direction
the
ductive
business
of
by
the
is likely to be pro¬
a
greater volume of
government
of
goods than would be the case un¬
der
with the
interests and incentives of private
ownership.
The answer to this
private
ownership
would appear obvious.
The volume
be produced
to
of
goods which
is
is determined by
the
market, in a free society. If
we
assume
that, under existing
conditions, the ABC Shoe Com¬
led to
process
there
But
freedom.
also
was
feeling of aloneness,
facing the world on his own.
greater
This led to
something, to seek
with
a
means
whereby he could submit himself
to
order
higher
a
of
things,
to
perhaps, if that were
the way to achieve social and economic security.
Professor Pear's
authority,
the
that
is
view
the less
greater mastery
over
nature
secure
he became,
ready for authoritarianism,
Tbe Middle Ages were char-
more
by the lack of personal
The
Church
was
all
acterized
the
consultation
with
on
all
of
matters
the
other
operation.
In
Union
and
the
words,
intervene
can
Union
welfare
ment is
a
operation. The agree¬
legal document and en¬
forceable in the courts.
There
of
is
no
the hands
freedom.
Whether
formation
or
of
effect
is
to
thing is apparunderchange.
Whereas
one
great
man's
he
course.
is
Re-
mankind
to
and his,thinking
man
went
boon
a
heresy,
a
the
regards
one
as
likely
to
greater
be
existence
called
was
now
upon,
as
an
overstaffing. All of this development.
Let us assume that the
ideoidds up to inefficiency of opera¬
tion.
logical conflicts of the present
The
efficiency
of
public
cor¬
Regardless of how
one
looks at it,
day date back to the Reformation.
We
have
process
to
the
that
conclude
"individuation" which
refers
to,
has
of
Pear
Professor
is
defi¬
nitely, "No."
One of the arguments for pub¬
founded.
Professor Robson of the
with
ideological
tion, and in the conflict of opin¬
regarding our economic sys¬
ion
Providence
tem,
lor totalitarianism,
found
on
vinces
will
be
likely
the side of that economic
social
and
which
system
con¬
people,
generally, that >it
way to substi¬
tute for their present
dis-satisfaction, wretchedness and hope¬
quires understanding of the situ-
the
offers
ation and the formation of policies
and plans designed to rescue the
individual, or-to help the indi-
surest
lessness, an environment of
curity and satisfaction—free,
vidual rescue himself. Those who
se¬
or
otherwise.
Modern
France
tend
democracies—England,
the
and
to
States-
along through
upon political ex¬
policies based
And it can be stated that man
will act to substitute a more sat-
United
muddle
pediency. They institute control
this, and control of that. They
of
nationalize
industry, the banking
less satisfactory
or
transportation.
And
will, it seems, system,
they may try a real dose of Social¬
sacrifice freedom for the promise
ism. During all this process, of
of security, if necessary. There is
little use in preaching the merits course, the government tends to
self in place of
condition.
of
a
a
Man
free
society,
free
of
intervene more
enter-
prise, of a free economy, un«
less these merits include security,
^he Need for Social, Political
And Economic Philosophy
The
nomic
•
best
with
And
;
each
each
election,
force
of
is
the
question
of
how far
just
communism
by
won
issue
mount
the government is
go in the direction of affairs
of the Economy.
Practically all
to
must
questions facing the people in this
country today, foreign as well as
Finally,
suited
to
there
the
character-
istics and form of modern society.-
role
that
philosophy
will
derive*
which states that
substitute
a
will act
sort
of
the
on
relative
to
And, I believe that there is such
to
general agreement, I'm afraid that
better state of affairs,
the
mass
of
people have bedn
sufficiently conditioned in their
thinking to believe that govern¬
man
for
himself, in the place of prevailing
uneasiness
or
unsatisfactory state of affairs,
is
some
part of the
the economic
of the Federal government.-'
And
from the concept of human action
require
domestic,
agreement
people
Man
eco¬
social, political and eco¬
philosophy
acceptable
emerge a
as
be
alone.
arms
with
battle
never
in
more
change of government, the para¬
.
wm
and
nomic affairs.
motivated
to
substitute
ment
on
intervene
must
more
unions
economic
look
more
and
matters.
The
to
a
satisfactory
more
fairs
for
a
-
less
UdTtodiSt'rf '
'°Jhe pe0ple
™?" Sf,
the
middle
tariat
was
class
and
the
Policy and Statism
prole¬
history of the future.
Political Behavior
the
thr0V«h fe?r to fpport a com-
has0naufmrtetiPth7ouBhhS SS
the essential clue to the
momenf'th'at
does
It
action
The whole question of political
behavior is of great interest and
of
was
Fascism
stim¬
was
not
not
too,
foretold.
us
people
The
in Italy
appeared quite
that the
dominate
the
capture it outright.
Itate"« }«*? ^
There are Jlfv,
P
growing indications that the
middle
class
of
the
individuals
It had been tired pf
thing that inter¬ methods
in the 1930s
that
clear
seem
to
entirely unexpected.
itself,
labor
country,
in
the
and
labor
sick
and
dominance
and
are
Fascism.
The
middle
class
was
the
excesses
of
labor
leadership; they felt they had no
future. They saw their traditional
German ideas of thrift, hard work
that Fascism and Fascist discipline
and order being derided. Inflation
against
^7^7
^on s y to *ee
as
Statism; such a term is ap¬
plicable to Fascism or Socialism.
Under such conditions, the gov¬
ernment
nomic
point*
your
-
Man
mistake on this
Man's Motivation
is
agination
motivated
of
a
set
~
runs
Freedom of
through communism they
will achieve a more satisfactory
ex^stence than would be the case
"nder conditions of a relatively
*ref privaVe enterprise economy,
us make no
The situation
today appears not
and in Germany unlike that which brought about
was
content, for the
enterprise is that under such most part. Many of us felt that
an
arrangement the problems of this just could not happen; man's
industrial relations will no longer natural bent is toward freedom.
exist. Such a hope is entirely un¬ But
perhaps these people believed
lic
side
enterprise
ested
Public Enterprise
the
on
artillery.
In
the
(system of doctrine)
phase of the present world situa¬
conditions become ripe
Pri0fVithisf7s C,
movement
answer
be
heaviest
linked up with the attractiveness
phenomenon
the
to
in
will
Providence
government and
state of af-i
the farmers look to government,
satisfactory. He
and -frankly, - too
many
of - the
may
be - restrained
in 'certain
is likely to tend more and more of
security. Perhaps those forms, countries from taking action, but business leaders stupidly look to
toward political domination of the of statism offer to people an esa
he will be impelled to act in the government. - It's
very,
very
relationship between management cape from having to care for }ong run in the direction of that sorry mess, but there you have it.
and labor.
At a certain point in themselves, an escape from freeOut of all of this, we would be
system, that philosophical frame-the development,
there will be dom. "Let the State take care of WOrk of ideas which seems most quite blind if we failed to see the
demand for nationalization of in¬
»/
us, of everything." "Let the State iikeiy to offer for him a more direction of things to come.
dustries.
The
so-called
labor do
the
economic
planning and satisfactory set of conditions.
Europeans and students of
leadership in this country seeks
politics have traditionally referred
nower,
more
and more power.
also, the whole it
to goverment, to centralized pub¬
This tendency has already created question boils down to the matter
wonders
offree
and lic
authority, as the State.
A
a
individual
feeling of antagonism on the of
security
and
as wonclers
ot tree enterprise and
wherein
the
State
expect that people are going to situation
nart of middle class Americans. stated earlier, the idea of "sellthrough dictatorship, benevolent
accept
the idea ori that
basis
Friedrich
Engels,
who
collab¬
alone. Granted, that mankind in or otherwise, and through gov¬
orated with Karl Marx, was cer¬ may well t"te„rE duck.
be a dead
ernment personnel, directs most
many sections of the world today
tain that this antagonism between
is coerced, dominated and held of the economic activity is known
Labor
trade unions in the United States
many
enterprise
the
£dual admit that he is "licked."
p enough people reach this opm-
quires better management than perhaps the temporary success of
private enterprise.
Fascism and the continuance of
Political action on the part of authoritarian communism is
inquiry into the matter
To any¬
conflict,
be found
P*31.11
Statism
J^hcates a failure of this nature,
St3tis.m HreSful+r,esf ^hat the indi,
tionalization
spread
social change. This
dynamic of human
It has been said that in war,
armed
dividualism is a better way to ex-
to
tability of employment under na¬ The
but only because no Reformation, was to place man
one
can
be
discharged, promo¬ "on his own." If doubt and insetions are slow and there is wide¬ curity developed, it was a natural
toward
politically,
socially
and
economically,
the
important factor in world
affairs today.
Both Fascism and Communism
think for himself.
intellectual importance of the
individual,
by action and
most
isfactory state of affairs for him-
had been pretty
management, of much mapped out by the Church,
The
consultation.
tie
Middle Ages and the present
in
the
degree
of personal
lies
ent:
*
the extent
limit to
the
ele¬
all
in
ments of the
knew his place,
ac¬
action is quite possibly,
,
viously the reactionaries of the
day. They assume that individualism has failed,
did give a
man
ulated by the rise of Fascism. The
less cost?
ments
feeling of solidarity. A
and kept it.
The primary difference between
arbitration of dis¬
putes. And the agreement must,
further, establish machinery for
for
provision
that
fundamental
represent a breakdown of individualism; perhaps failure of m-
*on>
knows
lower
favor planning, who would make
the State omnipotent, are ob-
law
for the
same or
"
"
the
state of affairs.
group
the
the
were
to
middle
requires, in the coal
England, that the Coal powerful; superstition of a sort
rife. "Thou shalt not" was
Board must enter into agreement was
with the Trade Union, and make the law of life. But the Church
The
produces 10,000 pairs of the
shoes which consumers require, is
it likely that the State can also
produce shoes of the same quality
who knows anything of State
means
that
another
stantly impelled to such action by
uneasiness with the existing order
of things. This is manifest at dif¬
ferent periods of history by move¬
It is
for this reason
that
and the political action of the future re-
achieved
man
opposed
early found the Nazi idea
d id
a
of
desire to associate
a
which
especially
classes
greater feeling of
a
a
know
of
action alone, is he able to change
his state of affairs and he is con¬
interested
The
throw
system - is
likely to result, for him, in a
Man
corporations
as
to
to
comes
more
that
middle
a
were
control.
and
the
of
the
once
ceptance
better
unions
movement
cjasses
sick
outset, the
end;
middie
situation in
pany
one
the
re-
,
The
miijtaiy
an
efficiency requires greater output
enterprise, because the need for per man-hour; it requires mech¬ brought forth a type of individual
expansion and improved machin¬ anization,
improved
skill,
and who is less and less able to take
ery must be paid for by the money
good management' And paradox¬ care of himself.
which the operation earns over
ically, it is now apparent, and
If
this
is
true, perhaps the
and
above
expense.
True,
you admitted, that nationalization re¬ social
psychologists
are
right;
may
the
at
ligious rights and social, economic
and political rights.
He came t
realize his own strength. And this
acquire
he
off
of authoritarianism
man
shackles
going,
essentially
was
revolt
in
b g
cause
itself.
wanted
indications
are
and
,
19th Century, man
In the
to
class
were
were
it
nature.
the
and
clagg
Chur
the
of
place for
a
revenge upon the labor leadership. They had no organization of
Nazism
individu
mercy
freedom.
State-owned
in
view
man
views,
become
the
in-
sought
perhaps,
There
religious
economic
profit, workers are encouraged in
their demands.
porations is questionable at best.
call
realized
be
is
There
production,
argue
business,
there
like¬
appears
ly, too, that costs of distribution
would be at least equal and gen¬
his
of going out that
threat of bankruptcy,
of
distinct from
In
it
relating to the de- thejr own
the individual as Way things
the mass of people.
of
velopment
of
process
a
that
char- And,
has
development^ of
as
dividuation,"
adminis¬
portant aspect of public
is
human ideas
to
Professor Robson, "In¬
To quote
the
acterized
London
the
Economics
of
School
of
Pear
Professor
for
administration and defense.
"
Otherwise
or
London School of Economics is an
the show.
enterprise, and
freedom,
fundamentals
continue
to
are
the
liberty. If we
accept
economic
domination
embrace
time
by the State,
Statism, you will
within
your
standard
eco¬
very
of
of
own
if
we
the
life when
living
see
will
go
down; when your personal liber¬
by his im— ties will be infringed upon and
of conditions, when your very right to worship
that will suit him better, and his
action aims at bringing about this
state of. affairs. This applies to
the man in Minsk, in Prague, in
God
It
may
can't
be questioned.
happen
The Hell it can't!
here, you say.
Number 5140
Volume 176
.
.
The Commercial and Financial
Chronicle
.
(495)
The
Indications of Current
following statistical tabulations
latest week
Business Activity
week
or
month available.
month ended
or
Latest
AMERICAN
IRON
AND
Indicated
steel operations (percent of
capacity)
Equivalent to—.
Steel
ingots
AMERICAN
Crude
42
and
castings
PETROLEUM
oil
and
gallons
Aug. 10
Monto
Week
Ago
42.9
14.2
output—daily
(bbls.
average
1,737,000
891,000
6,078,350
6,819,000
6,949,000
6,396,000
23,014,000
21,539,000
.
'
295,000
Gas consumption—Grand
6,204,600
ANKERS'
Daily average,
U.S.
Gasoline
__July 26
output
(bbls.)
July 26
Kerosene
output
23,413,000
(bbls.)
July 26
July 26
July 26
2,575,000
2,301,000
22,772,000
2,409,000
10,237,000
10,128,000
10,066,000
8,174,000
8,779,000
8,987,000
8,858,000
Domestic
warehouse
(gallons)
shipments
Domestic
total, U.S. (gallons)
Exports
8,776,000
to
runs
Distillate
stills—daily
fuel
Residual
oil
fuel
output
oil
(bbls.)
average
(bbls.)__
output
j.
(bbls.)
Stocks at refineries, bulk terminals, in
transit, in pipe lines—
Finished and unfinished
gasoline (bbls.) at
July 26
Kerosene
(bbls.) at
;
6,153,050
2,540,000
Distillate
fuel
oil
Residual
fuel
oil
ASSOCIATION
OF
(bbls.)
(bbls.)
77,361,000
July 26
51,052,000
49,596,000
64,143,000
44,972,000
July26
607,271
608,957
649,172
820,476
621,892
576,503
673,492
Dollar
(number
of
cars)
CONSTRUCTION
U.
S.
Private
(no.
of
cars)__July 26
Public
542,150
and
COAL
1
Bituminous
coal
S.
BUREAU
and
lignite
Pennsylvania
anthracite
Beehive
OF
"
.
TION
IN
EDISON
ELECTRIC
Electric
output
FAILURES
109,167,000
96,127,000
83,085,000
957,022,000
29,227,000
43,110,000
26,082,000
Additions,
JH
6,700,000
♦6,625,000
1,120,000
10,146,000
DIVIDENDS
BY
U.
S.
CORPORATIONS
687,000
867,000
861,000
PARTMENT
OF
19,600
•18,800
20,900
150,700
June
(000's
IRON
AGE
79
82
91
80
ERAL
RESERVE
As
June
steel
Scrap
steel
METAL
(per
&
Straits
COMMERCE
J.
,
4.131c
4.131c
(New
$52.69
U.
S.
Month
—
at
St. Louis)
BOND
121.500c
121.500c
U. S.
17.000c
16.800c
15.000c
15.000c
15.000c
5
97.59
98.28
98.26
98.02
5
109.79
109.79
110.15
110.34
5
114.08
114.27
114.27
115.04
5
112.19
112.19
112.56
113.89
109.79
109.42
103.80
107.27
106.92
109.42
109.60
110.34
Dairy
Eggs
Aug.
5
113.12
113.31
113.50
114.27
Fruits
Unfilled
5
2.67
2.62
2.62
2.63
Fats
3.18
3.18
3.16
3.15
5
2.95
2.94
2.94
2.90
Aug.
5
3.05
3.05
3.03
^
'
1949
AVERAGE
=
REPORTER
PRICE
dealers
of
(customers'
Y.
N.
by
dealers
short
Customers'
other
TOTAL
(customers'
total
$33,079,339
$30,376,295
$30,043,027
sales)—
sales
SALES
ROUND-LOT
OF MEMBERS
sales—
ON
THE
NEW
;
FOR
ACCOUNT
AND
OF
Total
on
Z.
off
$25,423,602
$23,265,275
$23,403,151
$26,161,921
171,140
160,850
157,230
174.960
171,140
160,850
157,230
174~960
HOUSEHOLD
STANDARD
LAUNDRY
274,960
251,670
23 8,530
318,500
153,100
178,900
159,300
131,500
161,100
128,500
54,600
42,300
32,000
28,200
5,100
19,800
3,700
18,900
10,800
274,457
213,668
17,654
31,720
12,652
28,812
518,710
ship¬
(units)
(units).
SIZE
(units)
AND
IRONERS
<AMERICAN
—
SERIES
—
U.
3,300
—
HOME
sales
of
washers
sales
of
ironers
(units)
sales
of
dryers
(units)
VEHICLE
IN
(units)
FACTORY
U.
number
,,
253,119
24,500
39,908
FROM
(AUTOMOBILE
S.
SALES
MANU¬
ASSN.)
of
—
185,250
198,080
339,520
Number
5,665,070
of
6,714,090
passenger
5,556,730
Number
of
motor
5,896,250
Number
of
5,534,950
5,850,320
6,912,170
Month
of
June:
vehicles
201,060
550,760
544,510
615,180
635,470
117,480
103,170
109,120
139,820
484,680
457,890
506,460
602,160
561,060
615,580
103,830
10,200
127,800
126,100
N
415,460
555,280
115,300
4,900
3,400
19,700
179,950
177,160
195,750
190,150
182,060
199,150
120,300
140,000
July 12
185,110
220,860
260,698
YORK
617,685
397,836
482,029
109,976
♦105,658
134,818
484
coaches
•503,917
408,250
cars
trucks
motor
STOCK
As of June 30
Member
423
838
$1,322,264
$1,311,845
$1,276,527
on
Total
Market
of customers'
value
of
listed
of
listed
Member
borrowings
on
Member
borrowings
on
38,600
42,180
32,060
77,270
273,983
366,866
250,336
RYS.
316,163
398,926
327,606
—Month of
844,700
166,280
893,170
1,001,978
986,462
150,250
144,580
236,790
SELECTED
Net
900,403
909,033
1,069,076
786,096
1,059,283
1,213,656
1,022,886
OF
INCOME
•338,346
364,806
713,874
•725,691
838,029
110,687,572
97,920,279
95,964,179
97,311,429
97,817,684
210,346
81,743
56,187
951,841
885,795
691,228
$72,337,896
$76,638,822
$72,689,500
16,981,617
89,671,117
4,413,152
37,926
Govt,
issues—
other collateral
OF
U.
Commerce
S. CLASS I
Commission)
April:
16,719,771
income
Miscellaneous
Income
Income
deductions
110.7
Depreciation
109.6
107.7
Amortization
109.7
109.2
108.0
Federal
July 29
115.3
113.8
110.1
Dividend
July 29
112.4
112.0
111.9
—
On
of
income
defense
89,497,082
39,820,844
53,133,419
2,894,617,
50,238,802
39,675,956
& equip.)
46,869,796
38,469,824
45,340,954
85,257,965
49,955,475
3,085,679
projects
taxes.^
38,499,561
55,343,676
40,097,763
13,409,440
18,745,474
7,853 422
2,926,979
3,720,306
1,991,118
2.32
2.46
2.42
appropriations:
common
stock
preferred
of
& structure
84,906,603
2,929,557
—
(way
4,151,064
93,538,194
4,041,112
48,270,511
income
charges
income
111.2
Ratio
from
fixed
charges
deductions
111.5
On
for
fixed
16,899,372
89,057,667
—
available
after
,109.6
runs.
S.
income
Total
Net
617,000 barrels of foreign crude
U.
railway operating income
Other
July 29
foods
33,191
362,979
114,488,919
shares
bonds
ITEMS
(Interstate
July 29
July 29
foods
32,051
free credit balances—
Market value
235,773
1,066,683
DEPT.
to customers
hand and in banks in U. 8
235,692
,
—..—July 12
S.
(000's omitted):
of
Credit extended
Cash
EXCHANGE—
firms carrying margin accounts—
customers net debt balances
Total
July 12
products
ASSOCIA¬
June:
Factory
Other
and
of
5,333,890
100 ):
than farm
MANUFACTURERS'
Factory
Total
July 12
fllncludes
122
131
ASSO¬
(tlftits)
Factory
NEW
July 12
other
115
112
shipments
equipment
burners
TION)—Month
MOTOR
Group—
commodities
105
108
37,000
heater
WASHERS
274,373
—
commodities
♦Revised,
603,560
for account of members—
•_•
=
107
95
96
113
shipments
furryices
boilers
July 12
Meats
All
553,456
July 12
—
NEW
96
98
May:
heating
Gas-conversion
___July 12
__
sales
Processed
547,472
floor-
the
,__
PRICES,
93
95
61,900
of
22,166
589,741
July 12
L ABOR—(1947-49
Farm
3,259
July 12
sales
All
2,058
July 12
sales
Other
Commodity
2,644
'uly 12
—
purchases
Short
Total
Gas-fired
Gas-fired
the floor—
sales
WHOLESALE
604
22,078
uly 12
—
round-lot transactions
June:
(units)
625,726
uly 12
purchases
sales
ments
19,960
registered—
sales
Total
85
range
central
556,715
~uly 12
sales
Other
gas
20,004
uly 12
purchases
Short
Total
22,682
MEM¬
.
initiated
165.0
SPECIALISTS
which
__
transactions
212.6
171.1
156.0
1947-1949
of
(units)
Domestic
549,530
July 12
sales
Total
206.2
97.3
202.4
*
FEDERAL
—
adjusted
water
FACTURERS*
sales
Other
Y.
Month
MANUFACTURERS'
gas
PLANTS
sales
Other
61
20,045
(SHARES):
purchases
Short
Automatic
21,231
July 12
July 12
Other transactions initiated
156.5
YORK
sales
Total
73
20,065
TRANSACTIONS
STOCK
BERS, EXCEPT ODD-LOT DEALERS
of specialists in stocks in
sales
206.1
105
seasonally
592,385
July 19
Transactions
Total
21,304
July 19
sales
Other
143.6
98.0
,
sales
sales
Short
N.
monthly), unadjusted
daily), unadjusted
daily), seasonally adjusted__
APPLIANCE
July 19
.
TRANSACTIONS
DISTRICT,
—
unadjusted
Gas-fired
July 19
dealers—
sales
(average
July 19
shares
Other
Sales
135.4
145.3
SALES—SECOND FEDOF
CIATION—Month
26.927
July 19
July 19
STOCK
(average
Stocks,
Stocks,
769,249
$34,542,153
—
ACCOUNT
Total
115.60
July 19
Round-lot
Total
110.57
22.041
sales
ROUND-LOT
•109.99
(average
140.8
98.2
171.4
100
=
Sales
July 19
dealers—
by
shares—Total
Short
Total
110.01
1
BANK
204.0
144.6
refrigerators
185.4
202.7
205.4
STORE
AVERAGE
,
176.7
186.2
203.1
RESERVE
Sales
642,683
sales—
ROUND-LOT
FOR
537,591
23.128
sales
EXCHANGE AND
Total
97
July 19
short
purchases by
of
231,788
82
345.3
143.1
5
141.3
and
electricity
RESERVE
200,421
651,861
sales
Other
ERAL
24.800
•
Number
181,072
705,032
sales
other
sales
Round-lot
180,413
July 19
value
Short
168,607
352,864
198.4
221.6
347.3
187.3
furnishings
Miscellaneous
July 19
shares—Total
Customers'
of
180,999
purchases)—
sales
Number
2.94
467.1
GAS
sales
Round-lot
2.98
80
;
fuels
435.4
July 19
Customers'
Other
2.99
201,443
203.5
165.9
247.2
139.3
sweets_i_
House
442.4
417,253
272.4
212.6
253.8
.
Ice
3.00
82
188.2
268.1
156.5
and
441.7
199,444
185.4
227.4
191.1
210.6
Oils
electricity
Gas
5
396,615
188.7
230.0
193.8
202.3
5
—-—July 19
Customers'
Dollar
3.15
STOCK
—
of orders—Customers'
of
3.34
3.19
-
value
purchases
15:
COMMISSION:
shares
Number
3.32
3.20
ODD-
orders—
of
Number
3.34
3.20
Vug.
Number
Dollar
3.34
5
INDEX—
100
Number
Odd-lot
5
July 26
DEALERS AND SPECIALISTS ON
EXCHANGE—SECURITIES EXCHANGE
by
3.52
July 26
DRUG
May
_.
Fuel,
3.20
3.50
July 26
period
LOT
sales
3.18
3.51
1,398
1,096
CITIES—
of
as
Clothing
DEPARTMENT
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
Odd-lot
3.20
3.52
July 26
of
LARGE
vegetables
and
Aug.
__
(tons):
AND
3.21
5
3,793
1,113
346.6
and
Aug.
end
IN
Adjusted
6,287
1,438
MODERATE
bakery products
and
Rent
2.96
5
ASSOCIATION:
(tons)
of activity
PAINT
and
Sugar
•
Vug.
Aug.
at
FOR
6,464
3,913
1,125
INDEX
—
3,980
3,268
164.0
Aug.
_.
Group
(tons)
5,672
1,441
products
Aug. ;5
Aug.
Group
orders
6,211
6,491
Beverages
Vug.
Percentage
7,248
3,925
Meats
106.92
109.42
Aug.
Production
12,920
7,109
3,954
3,155
271.7
104.14
106.92
5
Group
"
$19,207
13,320
189.0
5
Baa
received
$19,784
230.8
Cereals
AVERAGES:
INDEX
credit
foods
109.42
A
Orders
All
103.97
Bonds
COMMODITY
I_
items
109.24
.
NATIONAL PAPERBOARD
$20,258
13,767
7,393
short-term
May 31:
,
FAMILIES
1935-39=100
103.80
,
MOODY'S
of
as
credit
INCOME
All
5
Aa
Utilities
$331,000
4,147
PRICE
5
corporate
Industrials
Service
——Aug.
.
$510,000
RE¬
credit
Aug.
:
Public
FEDERAL
Charge accounts
Single payment loans.
17.500c
Aug.
;
DAILY
$1,134,000
YORK-
credit
Noninstalment
106.000c
16.000c
15.800c
-
Aug.
Group
Government
Railroad
Loan
27.425c
121.500c
:
YIELD
THE
Estimated
—
millions
CONSUMER
Group
BOND
Average
1
35.975c
AVERAGES:
Aaa
'
35.350c
16.000c
Group
Industrials
SYSTEM
in
consumer
Aug.
Aug.
Utilities
MOODY'S
■
34.850c
July 30
;
NEW
omitted)
OF
Instalment credit
24.200c
15.800c
at
DAILY
(000's
OF
Other
24.200c
16.000c
Baa
OIL,
24.200c
Aug.
Aug.
Public
Total
$43.00
15.800c
U. S, Government Bonds——
Railroad
,
24.200c
July 30
.
-
$39.17
July 30
PRICES
A
:
$40.75
r—July 30
_
$234,000
of
Sale credit
July 30
_
90,764
DE¬
Automobile
Aa
•
$41.75
July 30
York)
30
BANK
GOVERNORS
credit
4.131c
$52.77
July 29
Average corporate
,
171
$52.77
Aaa
•
OF
QUOTATIONS):
York) at
Louis) at
Zinc (East
MOODY'S
131
copper—
tin
(St.
137
4.131c
(New
Lead
152
$52.77
ton)
M.
of
7,003,209
SERVE
refinery at
refinery at
Lead
6,478,451
July 29
Domestic
Export
7,328,231
July 29
,
-
Electrolytic
*
PRICES:
gross
PRICES (E.
7,404,913
July 31
ton)
245,741
90,611
1
lb.)
(per
gross
2
&
.
COMPOSITE
Finished
Pig iron (per
465,821
198,888
REPORTED
—
omitted)
Aug.
BRADSTREET, INC.
$802,326
489,398
of
etc
PUBLICLY
—
661,000
kwh.)
DUN
$778,897
6,374
alterations,
July 26
—
$225,225,000
S.
nonresidential
139,237,000
V
INDUSTRIAL)
$429,710,000
3,246
U.
Month
LABOR
July 26
AND
30,970,000
$495,000
THE
residential
New
147,360,000
INSTITUTE:
000
242,000
43,104,000
92,526
OF
building construction
July 26
(in
36,574,000
$1,176,000
OF
New
118,133,000
(tons)
(COMMERCIAL
9,366,000
10,482,000
shipped between
omitted):
158,404.000
73,858,000
July 26
DEPT.
(000's
83,968,000
All
t
100
13,127,000
7,406,000
44,714,000
$829,974
and
AREAS
130,806,000
MINES):
=
$267,331,000
104,189,000
6,500,000
537,531
199,917
stored
URBAN
S.
April
1,030,880,000
(tons),
AVERAGE
$196,747,000
136,303,000
7,121,000
35,930,000
I~
goods
DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-49
$194,904,000
125,878,000
$415,953,000
on
$267,571,000
Tuly 31
(tons)
coke
"
credits
$223,205,000
July 31
(U.
OUT¬
30:
I
$278,166,000
July 31
municipal
—1
OUTPUT
June
".
U.
July 31 $1,131,612,000
Tuly31
100,732,000
_
construction
State
Federal
3,913,366,000 3,462,591,000 3,512,294,000
130,446,000
111,696,000
116,343,000
p
ENGINEERING
—
construction
construction
of
foreign countries
81,662,000
NEWS-RECORD:
Total
ACCEPTANCES
As
—
Total
freight received from connections
Ago
FEDERAL RESERVE BANK
—
YORK
exchange
Based
RAILROADS:
freight loaded
NEW
Imports
.
Year
Month
45,887,000
at
AMERICAN
OF
29,364,000
81,792,000
DOLLAR
STANDING
130,518.000
22,338,000
July 26
Revenue
ENGINEERING
120,902,000
25,128,000
at
Revenue
CIVIL
118,285,000
26,029,000
117,380,000
July 26
B
Previous
March:
2,021,000
6,070,850
117,103,000
Crude
of that date:
Month
A
of
July 26
either for the
are as
Latest
101.1
INSTITUTE:
condensate
each)
of quotations,
cases
Aero
83.6
Aug. 10
in
or,
are
Year
of
tons)
(net
Previous
Week
STEEL INSTITUTE:
production and other figures for the
cover
Dates shown in first column
that date,
on
23
income
stock
to
fixed
charges
The Commercial and Financial Chronicle
24
.
.
Thursday, August 7, 1952
.
(496)
theatre
local
The
3
Continued from page
local business of every
it
years,
Outlook ioi Movie
stimulates resourceful in utilizing new tech¬
kind. For niques today and tomorrow for
of the
Industry
communities;
drive-ins and their kin(Js and variety to locate nearby,
It's no longer simply a question
back at them witn Q£ jnjustice and unfairness. It's a
the facts about the new modern, matter of living 0r dying for many
comfortable conventional theatres in QUr industry. That's a simple
built for the greater convenience honest fact.
talking pictures,
average share of
nobody can
discount the grim reality of that
to the individuals concerned.
Granted that some theatres have of their audiences,
closed.
Many of them were old
Isn't this live and
And
booths.
from
times.
built
modern,
.attractive, conventional-type the¬
atres. Some hard-headed invest¬
ors must think there's a future in
The
pulsing proof
about two-thirds
thirties, following
share increased by 50%.
our
most
important
-
for
reason
was
the tech¬
improvement
boxoffice share of
expenditures is at
the same level as prevailed
the
consumer
about
to
the
before
advent
of sound.
the
tainment. I
than it
live.
1951, all con~
expenditures in the United
States increased b,y more than
millinery store folds up
a
its outlet
suburb, it may 40%—or
the business billion.
and heads for the
be
item
brief
a
sumer
the downtown drag
on
to
Between 1946 and
t»ave done it too.
When
on
by approximately $b(J
But our share 01 total
page—but let a downtown consumer expenditures fell from
up—and oh, brother, 1.09 to 0.66%. Our job is to recall the undertaker quick!
verse this trend.
Sometimes I think the moaners
There are many reasons why the
news
theatre close
—especially outside the industry movie-going habit has weakened,
—have been wearing blinders for
Television is certainly one reathe last seven years.
They have son, but it is not the cnly reason.
-overlooked—and I would hate to
Love is a reason too. We have
deliberately—one of the most
say
dynamic and encouraging developrnents
in exhibition
in our
times.
I
of Drive-in Theatres
talking
am
*
rm.
•
•
^
^
Growth
theatres—a husky
about drive-in like to emphasize
evidence of the reasons.
Ijook at
1946,
two of the top
prosperous days.
When • radio
developed
155 drive-ins
had
we
improve
sort of way
Today
that driveapproximately
picture. It helped it.
During the depression '30s, in
common with all business, we suf¬
But
fered.
craven
car
000
capacity of drive-ins is 1,600,cars.
Multiply that by the
of persons per car, and
number
what do you
you
4,000,000
.scnts
than
more
of
third
a
"total number of seats in
the
conven-
And it repthan the total
tional theatres today.
far
resents
of
more
through
lost
seats
the
close-
So what do we
down of theatres.
have?
We have
-a
gain—not a loss. It's
a
chart
rule to tell
patrons
tainment.
slide
that many drive-in
us
actually
are
motion
for
ences
or
picture
Drive-ins
audi-
new
enter-
attract
peo-
pic with young children, for inpeople
who
otherwise
.stance
—
might
think
we
sinet
has
to
be
not
the
all know
always
that
been
boxoffice—but
the drive-ins
a,)y/n®re-
I believe
rect
movie-goers.
are
I
the basa
hazard
is
a
perfectly
that
Well, it is approxi-
be
To
day
in
That's
just
*■
.
am0UI1t of their net profits. 1hat
apT
has
as
mowers,
sure.
am
trying
us,
dustry
are
the
in the future and not
past.
There
is
no
occasion
unreasoning alarm
Challenge
tonic
ways
to
put
has
this
today for
and
fear.
always
,
been
industry. It has
us on our
a
al¬
mettle.
Challenge seems to strike fire in
this industry. Sometimes we may
drive-ins
have
opened.
an
been built, especially in areas
where the population has shifted.
That's an upbeat.
The boom in marriages and bahies may be keeping a husky
share of people away from theatres That>s a downbeat. But the
boom in population means a vast
new
market for the future.
That's
upbeat.
serious and unnecessary damage pictures in
to all of us? I hope it won't be- upbeat.
longer than the next
session of the new Congress.
_
our
hungry for en-
history. That's
an
cor-
drive-ins
the industry—to get energetically
and wholeheartedly behind the
of its people,
there any
that is
of feminine gadgets
characterized by material
including
cooperative deficiencies in durable
such miscellaneous items as lawn
deep freezes, baby carriages, bicycles, fans,
and window
shortage, despite exhibitionistic displays as
the
skyscraper, continues pretty much
The medical service is
some
highly irregular, to say the least.
doctors quite good,
Our
with others described as
butchers.
Incessant
Surveillance
exposition of surveillance is Mrs. Kirk particularly ef¬
The incessant watchdogging is, of course, particularly
In her
fective.
severe
as
on
some
the diplomatic corps, with
of the embassy servants.
even
MVD police doubling
And the prohibitions on move¬
diplomatic representatives
ment and social contacts of the Western
authoritatively cited, with its political significance, we
to
hope,
During the Kirks' stay, travel was restricted
certain streets in the city, with an overall prohibition against
realized
fully here.
going more than 35 miles outside the city. I understand that this
has been somewhat relaxed since my visit there in April.
Contact with the outside Western world spells catastrophe
Soviet
the
for
citizen,
with
all
East-West
relationship
highly suspect; this even extending to the Ambassador's 20
sian servants required to take care of Spasso House's 10
being
Rus¬
bed¬
spelling-out of such items that makes it
crystal
only that the quality of our representation there is not
all-important, and also why the Western diplomat's turn in Mos¬
clear not
cow
is,
with its
dismal sameness,
a
stay of endurance against
monotony.
we nave aaaptea ana aajustea
ourselves to technological de-
we
are
likewise great
goods,
authoress found
,
%
Is
clothes
It is the vivid
^
that
necessities, is quite costly.
rooms.
that will never desert
this industry is the skill, the inOne thing
^
incessant
plumbing.
are
an
consumers' goods, housing,
unabated. Mrs. Kirk
reports great hordes of people living in small quarters, with
housing doled out by the foot. In fact, it is said that the available
living quarters per citizen is even less than in 1913.
The author's good style is particularly appropriate for pictur¬
ing the workers' general ineptitude in tasks ranging from sky¬
scraper
repairing to prevent its collapse, to fixing of house-
closed.
have
are
The housing
Moscow
to¬
That's just a fact,
ing over some bad bumps in the But a vast new audience around
road? Isn't it easy to see why the world is developing a hunger
some theatres have closed and for entertainment it could never
indulge before. That's an upbeat.
others are operating at a loss?
We
are
producing the finest
How long can this go on without
talking in dark pessimism about with a motion picture theatre has
shutdowns, I suggest you a stake in our well-being—and is
back at them with these hit when we're hit.
I
a
screens.
downbeat.
a
proximately $300 million.
Do you wonder that we're go- tertainment.
new
theatre
is
girdles.
There
loud and fearful
theatres
the
women s
consumers
quarters.
America is still
subtract
come
this
time,
trying times are yet ahead
the great days of this in¬
and
of
thing
one
bulky and shabby, costliness, and a paucity
upbeat.
New conventional theatres have
•*
0
industry
j
The
we
as
the downbeat
may appear
some
But
to*_ P.
*
Besides admission taxes, xne
theatres also pay substantial sums
Jn oca.. *axes' .a
Ml.
taxes—1* there is anything left
pa^ i?m 0Ilk
k-ti
t
^
up'
1)111 ®r
theatres is seven times the
pa^
This
sure,
Some
fiv.e hmes the net
a*res. total
re-emerge
back
door sever£d times through its histQr c,
Each time it has shaken
hands with
adversity, put. its
house in order and then booted
adversity right out of the yard,
all theatres in the Unted Sta es That's
a
will
we
customers and do not expertly-managed
campaign of}
at
from audiences at COMPO to repeal the 20% Fedvelopments in the past and used
conventional theatres. This stim- eral admission tax—and state and
them for the improvement of this
ulates the movie-going appetite, local admission taxes.
greatest of entertainment
Next
time
you
hear
people
Every community in America mediums.
bring in
of
their sumptuous party.
* urge all of you—everyone in genuj£y and the resourcefulness
.
it
conclusion
taled nearly $250 million,
Ho you know what that figure
wherever labor us any
showing, it's not
before.
The
again.
had adversity calling at its
exceeds, for instance, the the-
jtilus—not a minus.
We don't need a
But
As Mrs. Kirk
the Russians'
proclivity for putting-on the caviar-vodka "dog" for them. This
again has just been done for our Olympic Games athletes, with
us barely able to reciprocate with a cafeteria-lunch invitation for
were wrong
men
before.
have
^
fl^res *°
illustrate thejload of taxation. In
1951, admission tax collections torepresents?
get?
get the equivalent of
conventional theatre
-seats. This 4,000,000 figure repre-
Why,
none
implies, "visiting firemen" should not be misled by
survived and came
than
general
clothing,
anything outside
Now, in this new period of ten¬
and uncertainty, I am con¬
JHst a
.„Hare
Right here, we start to get into
.some mighty big figures. The total
we
stronger
out
On top of higher costs, weve
20%
of
gross
theatre receipts, had to carry a back-busting load
B»ive-ins have an
average
car of taxes—not only back-busting
capacity of 400 each. There's an but discriminatory and out of all
•estimated 2Vz persons per car.
semblance to equity.
for
account
I can¬
of
tell you precisely. 1 know
who can.
not
surveillance, workers' ineptitude, servant troubles, and quality of
medical help.
Food for Russian citizens, although improved over prewar, is
far below Western standards as to quality and quantity; and for
sion
Higher Admission Taxes
It's estimated today
women's
once
the crepe hangers were
busy practicing our funeral dirges.
But radio didn't hurt the motion
vinced
ins
of this evolutionary period,
end
Despite the over-all chattiness of Mrs. Kirk's composite cor¬
again
honest down.
simple
that
on
in¬
our
respondence, she meticulously sets down a miscellany of factual
detail.
Such items include significant information about food,
It went on to far more
it went in.
taxes.
few quick figures.
a
but I would
Costs have soared in a fabulous
throughout the whole
•—seven
years
later—there are American economy. In our busimore than 4,000. That's a whale of
ness we have to pay more for
a
jump.
The movies have fof- everything. And this means that
lowed the people.
The story of today we must do everything we
Mahomet and the mountain can t can to prune costs and keep them
In
ir* the whole United States.
ball that pre¬
Where
Observations
One is rising costs. The other
is taxes — especially admission
the
of
resistance power
motion picture industry.
supple
future.
the ordeal in better shape than
judg- clothing. We have more money
theatres spend than we ever had.
picture
the
our
on
hire babyare others
sitters.
There
That's good business
Motion
of that.
sure
stood
always should.
had a record number of marriages
—and a record number of babies.
Many young married couples with
children find it just too costly to
are
VJ roent.
am
we
of anything. It behooves us all to
be scorched by the fire, but we
In my remarks I have discussed
SparitpiUg 0ur efficiency and
use it as a forge to make tomor¬
eibninate waste wherever we can. some of the difficulties confront¬
row
brighter.
We've got to do that in every ing us but I want also to make
If
we
pull together, act to¬
branch Gf the business—in pro- clear that it is not our industry
duction> jn distribution, in exhibi- alone that is having its troubles. gether, work together great days
Motion picture industries in every are in store for the motion picture.
tjon That's essential.
As a child of America, our in¬
The evolution in which we find other country are having their
dustry
shall
grow
as
America
ourselves may be the greatest test troubles, too.
and irjai ^at our business has gether, work together, great days grows and expands and prosoers.
The rewards will be bountiful—
But there is a vast difference
ever known. It is not the first, by
any meanS) but it has all the between us. Every other maior greater than any we have ever
motion picture industry in
the known.
earmarks 0f the toughest,
Many of you here went through
revoiution from silent films
t0 sound films. You will remem- Continued jrom page 5
ber
aiarmist and defeatist attitude that prevailed at the time.
jusj. as now> there were those
•..
who gaid the industry couldn't
The Russian's incessant necessity for "lining up" from morn
survjve the tremendous losses
to midnite for purchases of everything from milk to diamonds,
that the change entailed. Timid
with the cumulative exertion cf pressure on the individual's time
men 0£ xittle imagination and less
and energy, is undoubtedly one of the chief long-term promoters
fatth were ready to give up.
of discontent with the regime.
Buj. £be industry emerged from
region to region—and our bustling and prosperous
is
steadily sprawling out- today. More of us have jobs at
ward to the suburbs. In hundreds better wages than
ever before.
of cities merchants in downtown Our people are living better in
jaccas
are
moving out to follow every way—eating better, living
thc
crowds—out
where
people in better homes, wearing better
from
cities
always
dustry will come out at the
in
By utilizing the vast techno¬
another side, ^ggegt pay cuts or longer hours.
status of the
But j did come to ask one thing, logical developments of this new
electronics age, we can make his¬
motion picture with the status of B ^ jjjjg.
the motion picture theatre.
the whole economy. Here we find
i urge ap in the industry to tory repeat itself in our industry
In recent years we have seen
in
this something of a paradox.
work twice as well and to think and vastly increase our share of
huge population shifts
Our country was never more 1Q times before wasting 10 cents what the public spends on enter¬
country.
People have moved
compare
for
I have no crystal
Though
Today,
total
have
feet and
dicts
turn to
Now let's
Let's
We
own
the
of
I hope we
government
and
ask
never
subsidies.
screen.
not in¬
did
I
ex¬
While other factors contributed,
the
crepe
a
Pollyanna tales.
not come here
tend to spin
And
be
I said that I did
hanger.
and the
National Economy
to
intend
not
did
consumer
industry is not subsidized
government,
shall
industry's
the
this great increase
that I
some
was
In
nological
outset I told you
At the
1%.
sound,
Operations
midnight?
Picture
Motion
been
have
Many
been
have
theatres
But
too.
6 o'clock to
of
Need of More Economy in
that not everybody is sitting
around in a darkened living room
theatres, outmoded and outdated;
uncomfortable, and
behind the
penditures
our
Our
by
During the twenties, prior
to
delight. You in IATSE don't need facts about
their helpfulness.
Some of your new patrons.
members have lost jobs in proAnd come
iection
not!
course
Take another brief look at
shops of all figures.
centers, it encourages
.
screen? Of
sub¬
government
on
sidies.
the advancement and enrichment
been a magnet to
in the small
and in the larger
has
draw in the farmers
lives
world
reason
to suppose
shall be less skillful
and
Pervading all Mrs. Kirk's
observations is devastating frank¬
punches pulled. No wonder that in Moscow
departure I found far and wide, among the
lowly service bureau girls as well as higher-up bureaucrats, a fury
of resentment against the reported "unethical, rude and turncoat"
Ambassador's wife, who had accepted their hospitality.
Perhaps
ness
and
wit, with
no
six months after her
Mrs.
effectiveness, as a needle, as well as
importance!
Kirk's
antees her
anything guar¬
-
J
Volume 176
Number 5140
.
.
The Commercial and Financial Chronicle
.
(497)
VINDICATES
Securities Now in
Admiral
Registration
Corp., Chicago, III.
June 2 filed
color film process.
NEW ISSUE CALENDAR
August 11,
exchange
offer will expire on Aug. 30. DealerManager—Dempsey & Co., Chicago, 111.
Statement ef¬
fective June
(Aigeltinger
ment
and
1966.
Price—At
Price—70
share.
writer—Frank P.
For
—
(Dillon,
(Paul
Inc.)
Davis
&
Co.;
F.
Common
Paine, Webber, Jackson & Curtis
S. Moseley & Co.)
Pacific RR.
Equip. Trust Ctfs.
(Bids
Lunn
CDT)
noon
Laminates, Inc
(S.
D.
Fuller
&
Common
Co.
and
Vermilyea Brothers)
corporate
August 18, 1952
Pillsbury Mills, Inc
Underwriters—To be determined by competi¬
bidding. Probable bidders: Halsey, Suart & Co. Inc.;
Equitable Securities Corp. and Central Republic Co.
(Inc.) (jointly); Lehman Brothers and Stone & Webster
Securities Corp. (jointly); Union Securities
Corp.; Blyth
& Co., Inc.; Merrill
Lynch, Pierce, Fenner & Beane.
to be received
Common
Co.
Chicago, Milwaukee, St. Paul &
purposes.
Bids—Tentatively scheduled
&
August 14, 1952
tive
o
H.
and
on
other
Read
Warren-Bradshaw Exploration Co
Proceeds—For
and
EDT)
noon
Texas Gas Transmission
Corp
Underwriter—None.
construction
new
Debentures
(Bids
August 19, 1952
Chemicals, Inc
__Debs.
August 20,
Armstrong Rubber Co., West Haven, Conn.
July 25 (letter of notification) 500 shares of class A
Hopwood)
1952
(Burnham
com¬
&
Price—At market (estimated at $21
Proceeds—To James A. Walsh, Sr., Chair¬
share).
per
man
Beaunit
of the
Board, who is the selling stockholder. Under¬
writer—None, but Gruntal & Co., New York, will act as
Common
Co.)
Weld
Co.
and
Peabody
&
Co.)
Preferred
(Dillon. Read & Co.)
V Atlantic Aircraft Corp. (Del.), N. Y. City
July 11 (letter of notification) 300,000 shares of common
stock
(par
Pacific
10
cents) under name of "Marine Aircraft
Corp." Prospectus under new name filed July 28. Price
—$1 per share. Proceeds
For working capital in the
Finance
manufacture
largely
an
York.
of
the
"Trimmer
assembly
Underwriter
—
Amphibian,"
Office—82
process.
Securities
which
(Drexel
&
Co.;
Lynch, Pierce, Fenner
Smith, Barney & Co.)
Tennessee Gas Transmission Co
Atlantic Refining Co.
Co., New York.
Barney
to
(Bids
(Bids
(Bids
to be sold to selected residents of Ala¬
bama.
Price—$10 per share. Proceeds—For capital and
surplus to operate life insurance
company.
Office—
1729 Vz North 3rd
Ave., Birmingham 3, Ala. Underwriter
•—None.
(Bids
(Bids
11
Office—511 Carson St., Carson
City, Nev.
& Co., Las Vegas, Nev.
Underwriter—
the New York
stock
Inc., Amityville, N. Y.
(letter of notification) 10,000 shares of common
to be offered for subscription by con*~
stockholders of record March 31,
1952, at rate cX
mon
(par $1)
two new shares for each share
held; rights to exptrt*
Aug. 15. Price—To stockholders, $8 per share; to public^
$10 per share.
Proceeds—For working capital. Office—
Zahn's
Airport, Amityville, N. Y.
Underwriter—None;-
it Crystal Oil & Gas Co., Inc., Las Vegas, Nev.
July 28 (letter of notification) 100,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—To
drilli,
well in Clark County, Nevada. Underwriter—None.
Decca Records, Inc.
July 2 filed 258,883 shares of capital stock (par 50 cento)
being offered for subscription by stockholders of record
July 22 at rate of one new share for each three shares*
held; rights to expire on Aug. 8. Price—$7.62
per share-
general corporate fund. Underwriters—
Reynolds & Co. and Laurence M. Marks & Co., both cX
New York.
Deerpark Packing Co., Port Jcrvis, N. Y.
(letter of notification) 235,000 shares of
stock
mon
(par 10 cents).
Price—$1.25
per
com¬
share.
Pro¬
RFC loan of $41,050 and for working
repay
•
Delta Air Lines, Inc.,
Atlanta, Ga. (8/12)
July 14 filed 100,000 shares of common stock (par $3)Price—To be supplied by amendment
(may be about $25
per share).
Proceeds — For acquisition of aircraft and
facilities and for other corporate
purposes.
—Courts & Co., Atlanta, Ga.
Underwriter
Devil Peak Uranium, Ltd.
(Nev.)
April 7 (letter of notification) 600,000 shares of common
stock (par one cent).
Price—50 cents per share.
Pro¬
ceeds— For
rehabilitation
and
development
program-
Office—Suite 839, 60 East 42nd St., New York
17, N. Y.
Underwriter—Gardner & Co., New York.
1
(letter of notification) 4,000 shares of common
(no par). Price—At market (estimated at $11.50
stock
share).
Proceeds —To Ernest C.
Geier, the selling
Underwriter—None, but Dominick & Dominick, New York, will act as broker.
..Common
be
to
& Notes
EDT)
a.m.
to
•
Duquesne Natural Gas Co.
May 28 (letter of notification) 92,783 shares of common
stock (par one cent) being offered for
subscription by
stockholders of record Aug. 1 at rate of one new com¬
share for each five common shares
held, two new
common shares
for each preferred share held and six
mon
new
Bonds
received)
1,
be
October
Utah Power &
1952
Carolina
15, 1952
Power
&
Bonds
noon
October
shares
ence
stock
of
stock for each share of prefer¬
(with an oversubscription privilege)..
Rights will expire on Sept. 15. Price
$1 per share.
Proceeds—For working capital. Underwriters—None.
common
held
to
Office—296 Elm St., New
Haven, Conn. Under¬
writer—Pulis, Dowling & Co., New York, N. Y.
20, 1952
be
it Eastern Industries, Inc., New Haven, Conn.
July 29 (letter of notification) 1,988 shares of common
stock (par 50 cents). Price — At the market
(approxi¬
mately $7 per share). Proceeds—To Charles D. Pulisi ai
director.
EST)
Light Co
(Bids
Bonds & Com.
received)
Light Co
(Bids
V Canadian Palmer Stendel Oil Corp. (8/20)
July 31 filed 3,410,000 shares of common stock
(par 25
cents) of which 2,000,000 shares are to be offered for
subscription by stockholders of Palmer Stendel Oil
Corp.; 400,000 shares to be sold to latter named com¬
Kalmanir, Kline
on
—
Proceeds—For capital expenditures and other
corporate
Underwriters—White, Weld & Co., and Kid¬
der, Peabody & Co., both of New York.
properties.
time
July 9
per
EST)
California Electric Power Co
purposes.
Canoga Oil Co., Carson City. Nev.
July 18 (letter of notification) 60,000 shares of
capital
stock to be offered
by Crystal Oil Co.
Price—At par
($1 per share).
Proceeds—To develop oil
Bonds
invited)
noon
October
Under¬
time to
Continental Oil Co., Houston, Tex.
May 14 filed $26,000,000 of interests in The Thrift Fta
for employees of this
company, together with 400,009
shares of capital stock (par $5) purchasable under tenon
of the plan. Underwriter—None.
Aug.
1952
September 30, 1952
Washington Water Power Co
V Beaunit Mills, Inc., New York (8/21)
Aug. 1 filed $6,000,000 of 5% convertible subordinate de¬
bentures, due 1972. Price—To be sppplied by amendment.
Price—At
sold from
it Duplan Corp.
September 23, 1952
Appalachian Electric Power Co
Bonds
common
(par $5)
Proceeds—To be added to general funds.
writer—Burnham & Co., New York.
-Debentures
September 10, 1952
Utah Power & Light Co._
ment withdrawn.
par.
Beane;
received)
be
to
be
stockholder.
&
pany; 400,000 shares to New Superior Oils of
Canada,
Ltd.; 370,000 shares to officers and
employees; and 240,000 shares to be under
option to underwriters.
&
Arkansas Power & Light Co
Offering—Postponed indefinitely; state¬
V Bankers Reserve Life Insurance Co.,
Birmingham, Ala.
July 28 (letter of notification) 20,000 shares of
be
September 9,
June 25 filed 1,000,000 shares of
common stock (par $10).
Price—To be supplied by amendment.
Proceeds—For
Underwriter—Smith,
Weeks)
Debentures
Merrill
(Bids
expenditures.
&
Scott Paper Co
is
St.,
Corp.,
Newark, N. J.
capital
Common
^
September 8, 1952
Beaver
National
August 26, 1952
Corp._^
(Blyth & Co., Inc., and Hornblower
—
stock
Kidder,
to
capital.
Debentures
Texas Eastern Transmission
Corp
agent.
New
&
shares
ceeds—To
August 21, 1952
Mills, Inc.__.
(White,
Colorado Fuel & Iron Corp.
11 filed 39,475 shares of common stock
(no par)Price—At market. Proceeds—To Mt. Oliver & Staunton
Coal Co., the selling stockholder. Underwriter —
June
March 21
Canadian Palmer Stendel Oil
Corp.
stock (no par).
mon
phia. Warrants—Will entitle holders to purchase 452,350
of common stock at war
($1 per share). They
are exercisable to
May 1, 1955.
Proceeds—For
& Common
(Glore, Forgan & Co.)
Sept. 9.
on
Common
(Goldman, Sachs & Co., and Piper, Jaffray &
Texas City
by Donner Corp. of Philadel¬
Convertawnings,
August 13, 1952
v Arkansas Power & Light Co. (9/9)
Aug. 5 filed $15,000,000 first mortgage, bonds due 1982.
Proceeds
Common
Co.)
Seaboard Air Line RR
par
exploratory
present holdings.
Under¬
Hunt & Co., Inc.,
Rochester, N. Y.
drilling and improvement
Debs. & Com.
Corp.)
Lines, Inc
&
Business—Two-
Underwriter—None, but unsubscribed
Stock Exchange.
CDT)
Securities
(Courts
Mines, Ltd., Port Arthur, Ont., Canada
May 8 filed 500,000 shares of common stock (par $1).
per
a.m.
ISSUE
Ncmjc,
Common
August 12, 1952
Delta Air
$100 each).
machinery. Business—Development of agri¬
cents
Co.)
&
Common
(Trinity
Andowan
Price—38
Peabody
Parsonnet TV-Film Studios, Inc.I
(in denom¬
Proceeds—To purchase equip¬
culture and commerce in Israel.
Pfd. & Common
(Bids 10:30
Ampal-American Palestine Trading Corp., N. Y.
June 16 filed $5,000,000 of 15-year 4%
sinking fund de¬
bentures due 1967 and $497,000 of
15-year 4% sinking
due
Brothers)
(Hickey & Co.)
Proceeds—For prospecting, drilling ex¬
penses, etc.
Underwriter—I. Nelson Dennis & Co., To¬
ronto, Canada.
of
Vickers
Mountain States Power Co
cents per share.
debentures
and
Motorola, Inc.
May 28 filed 2,079,871 shares of capital stock (par $1),
908,845 shares are to be offered to public by
company,
108,847 shares by underwriter and 666,171
inations
Co.
(Kidder,
Ltd., Toronto, Canada
of which
fund
REVISED
shares
Common
&
Huyck (F. C.) & Sons
shares to be reoffered under rescission offer.
ITEMS
shares will be purchased
1952
Chase Chemical Co
19.
Ameranium Minos,
PREVIOUS
Britain), Ltd. and for working capital.
41,669 shares of capital stock (par $1) being
offered in exchange for common stock of Canadian Ad¬
miral Corp., Ltd., at rate of one share of Admiral stock
for each two shares of Canadian Admiral stock held.
This
ADDITIONS
SINCE
•
Bonds
received)
Electronic Computer Corp.,
Brooklyn, N. Y.
July 25 (letter of notification) 52,500 shares of class B
common
December 15, 1952
Service Inc
New Orleans Public
(Bids
to
be
received)
•
Cincinnati Enquirer, Inc.,
Cincinnati, Ohio
July 25 filed $3,500,000 of 15-year sinking fund deben¬
tures due Aug. 1, 1967 and
$2,500,000 of 10-year convert¬
ible junior debentures due
Aug. 1, 1962. Price—To be
supplied by amendment. Proceeds—To pay notes issued
to
the
first
to
under the
class A
and/or class B stock held;
rights to expire
Continued
on
Steel Corp.
Underwriter —* Halsey,
Inc., Chicago & New York. Offering—Not
expected until
Cincinnati
some
time in September.
Enquirer,
Inc., Cincinnati, Ohio
July 25 filed 400,000 shares of common stock to be of¬
fered to employees and others. Price—At
par ($10 per
share). Proceeds—For working capital. Underwriter—
development
None.
Proceeds—For
expenses
and
general
P. Hunt &
corporate
purposes
Co., Inc., Rochester, N. Y.
•
Chase Chemical Co.
June 23 (letter of
mon
stock
—For
(8/11)
notification) 291,000 shares
(par 10 cents).
working capital.
writers—Aigeltinger
of New
Price—$1
per
share.
Office—Newark, N.
&
Co.
York.
and
J.
of
com¬
Proceeds
Under¬
Vickers Brothers,
both
•
Cinecolor Corp., Burbank, Calfi.
May 9 filed $452,350 of five-vear 5% subordinated sink¬
ing fund debentures due May'l, 1957 (with common
stock purchase warrants
attached)
being offered for sub¬
scription by common stockholders of record July 21 at
rate of $1 of debentures for each two common shares
held; rights to expire on Aug. 12. Price—At par. Pro¬
ceeds—Tq purchase voting control of Cinecolor (Great
New York
Boston
Philadelphia
Pittsburgh
San Francisco
Chicago
Cleveland
/
Private Wires
to
all
offices
on
26
page
Portsmouth
Stuart & Co.
•
stock
(par $1) of which 15,000 shares are to bo
persons who sought to purchase stock
offering which commenced in February, 1951,
but whose purchases could not be consummated.
The
other 37,500 shares to be offered to stockholders of record
Aug. 10 at rate of one new share for each four shares of.
offered
Bonds
Cardiff Fluorite Minos.
Ltd., Toronto, Canada
May 22 filed (amendment) 300,000 shares of
common
stock (par $1).
Price—$1.25 per share.
Underwriter—Frank
25
26
(498)
The Commercial and Financial Chronicle
Continued
from
International Technical Aero Services, Inc.
25
page
Feb. 15
Sept. 10. Price—$3 per share. Proceeds—For working
capital. Office—265 Butler Street, Brooklyn, N. Y. Un¬
derwriter—Pioneer Enterprises, Inc., Bluefield, W. Va.
if Electronic Devices, Inc., Brooklyn, N. Y.
Aug. 1 (letter of notification) 2,000,000 shares of
stock
(par
Brooklyn, N. Y. Underwriter—None.
is used, the name will be furnished
be Tellier &
Farm &
If
underwriter
an
Underwriter—None.
by amendment (may
Co., New York).
Phoenix, Ariz.
July 7 filed 1,613,168 shares of class A common stock
(par 25 cents) and 2,744,034 shares of class B common
stock (par 35 cents), the class A stock to be sold
only to
policyholders of The Farm & Home Insurance Co.
—At par. Proceeds—To increase
capital.
John J. Rhodes and James E.
Flathead
March
21
Petroleum
filed
Johnston Adding Machine Co.,
shares
of
(par
10 cents).
Price — 50 cents per share. Proceeds — For
equipment and drilling purposes. Underwriter—None.
•
General
for each share
Aug.
on
13.
expansion
of preferred
Price—25
of
Puerto
cents
per
share.
working capital and general corporate
and
writer—None.
if Grosse Point Yacht Club, Grosse
Point, Mich.
July 29 (letter of notification) $250,000 of 4%
10-year
high water disaster income debenture bonds to be of¬
Price—At
par. Proceeds—For repairs and
improvements. Office—
Lakeshore Road, Grosse Point
30, Mich. Underwriter—
None.
«
convertible
preferred
892 shares of class A
common
per
stock
stock
share.
(par
July
21
(letter
of
notification)
preferred
of common
of
$5)
3,000
6%
and
if Lawyers Mortgage & Title Co., N. Y.
Aug. 1 (letter of notification) 45,000 shares of
one
and
of
non-
(par $1) to be offered in units
share of preferred and one share of
type
Boston
—
Metropolitan
of
aircraft.
Airport, Norwood, Mass.
West & Winslow, and
Underwriters—Chace, Whiteside,
H. C.
Wainwright
Hixon
&
Co., both of Boston, Mass.
Hutzler
commission of 10 cents per share sold.
Brothers
Co., Baltimore, Md.
July 3 (letter of notification) $300,000 of
5% 25-year
notes dated
Aug. 1,
1952, to be offered for subscription
by common stockholders. Price—At
par (in various units
as determined
by thet directors). Proceeds—For additional
working capital. Office—212 N. Howard
St., Baltimore 1,
Md.
Underwriter—None.
•
Huyck (F. C.) & Sons
(8/11-15)
July 25 (by amendment) filed 750 shares of
$2.75 divi¬
dend class A preferred stock
(par $50) and 20,000 shares
of common stock
(par $5). Price
To be supplied
by
amendment.
Proceeds
To two
selling stockholders.
Business—Mechanical fabrics for
industry and blankets
and apparel cloth.
Underwriter—Kidder, Peabody & Co.,
(par $50). Price—At market
mately
$140
New York.
Idaho
June
6
Maryland Mines Corp.
filed 200,000 shares of common
Price—At
testament
of
Francisco.
Calif.
as
executrix
of
the
Errol
Bechtold, deceased).
Underwriter—None.
Inland Oil Co.
Feb. 26 (letter of
last will
and
Louisiana
Inland Petroleum
17
(letter
Corp., Miami, Fla.
of
notification) 27,500 shares of 6%
non-cumulative convertible
preferred stock, and 275,000
shares of common stock.
Price—At par ($10 per share
for the preferred
stock and one cent
per share for the
Proceeds—To purchase oil leases.
Office
"12
Congress Bldg., Miami, Fla.
n/rlns^ta,l!txBeverage'
Underwriter—None.
working
—
capital.
Office—2716 Country
Omaha, Neb, Underwriter—None.
Supply
Co.,
Lake
common
—
For
Avenue,
working
Inc., Balti¬
Mexico
Jockey Club, Albuquerque,
common
N.
M.
stock (par
Porter
Miller
of
Los Angeles, Calif., will be
"engaged
the public."
Statement effective
April 5 through lapse of time. Amendment necessary.
to sell the securities to
new
None, but
La.
share for each five shares
Office—306 Pioneer Bldg.,
Lake
Charles, La.
Underwriter—None.
•
share.
Lunn
Laminates, Inc., Huntington, N. Y.
July 17 (letter of notification) 149,500 shares of
stock
(8/14)
common
cents). Price—$2 per share. Proceeds—
working capital. Underwriters—S. D. Fuller & Co.
and Vermilyea
Brothers, both of New York.
McCarthy
(Glenn), Inc.
10,000,000 shares of common stock (par 25
cents). Price—$2 per share. Proceeds
For drilling of
exploratory wells, acquisition of leases and for general
June 12 filed
—
corporate purposes.
Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50
Broadway, New York, N. Y. Telephone
WHitehall
3-2181.
Offering—Date
indefinite.
Held
up
by SEC.
Mineral
share
each
29
to
Exploration Corp., Ltd., Toronto Canada
2,000,000 shares of common stock, each
have
attached
"A," "B" and "C" warrant,
giving the holder the right to purchase one addi¬
2,000,000
shares, $1 per share—Canadian.
Pro¬
exploration, development and acquisition of
properties. Underwriter—Brewis &
White, Ltd., Toronto,
Canada. Names of United States underwriters to be
sup¬
plied by amendment.
10-year
(in denominations of $500 and $1,000
10,000 shares of common stock (par $10).
Proceeds—For working canital
and
ex¬
pansion.
Office—208 Third Ave.,
South, Seattle, Wash.
Underwriter—National Securities Corp., Seattle,
Wash.s
Morrow (R. D.)
Co., Inc., Pittsburgh, Pa.
May 5 (letter of notification) 10,000 shares of b%
cumu¬
lative convertible preferred
stock.
Price—At par ($10
Proceeds—For financing of Master TV an¬
tenna systems in apartment houses on a
lease basis and
for additional
working capital. Underwriter—Graham &
Co.. Pittsburgh, Pa.
per
•
share).
Motorola, Inc., Chicago, III.
be offered
on
the basis of
of
Aug.
(8/11)
shares of common stock (par $3)
for subscription by common stockholders
one
new
cents
per
com¬
share.
Aug. 4 filed 185,000 shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds—To in¬
crease working
capital.
Business—Automobile sales fi¬
nancing and insurance. Underwriters—Blyth & Co., Inc./
and Hornblower
&
Weeks, both of New York.
if Pacific Western Oil Corp.
Aug.. 5 filed 100,000 shares of
common
stock
(par $4).
Getty, Presi¬
Price—At the market. Proceeds—To J. Paul
dent,. .^Underwriter
brokers
on
the
None,
—
New York
sales
to
be
handled
hy
Stock Exchange.
Pennsylvania Coal & Coke Corp.
July 23 (letter of notification) 18,612 shares of capital
stock (par $10). Price—At
market, but not less than $13
per share.
Proceeds—For working capital. Underwriter
—Blair/Rollins & Co. Inc., New York.
Feb.
5
stock
shares
per
Finance
Corp.
(letter of notification) 60,000 shares cf common
(par $1) and 30,000 warrants to purchase 30,000
of
share
common
on
or
common
stock
(warrants
exercisable
prior to April 1, 1954).
shares will receive
one
at
$7.50
Each purchaser
warrant.
Price—
$5 per share.
Proceeds—For working capital.
Office—
Oklahoma City, Okla.
Underwriter—George F. Breen,
New York.
Phillips Packing Co., Inc., Cambridge, Md.
July*"7 (letter of notification) 3,000 shares of common
stock (no par). Price—At the market (estimated a $7 per
share)Proceeds—To Levi B. Phillips, Jr., Vice-Presi¬
dent, the selling stockholder. Underwriter—Alex. Brown
& Sons,
Baltimore, Md.
Pillsbury Mills, Inc., Minneapolis, Minn.
July 29
filel
Price—To
be
(8/18)
160,000 shares of common stock (par $25).
supplied by amendment.
Proceeds—For
general funds. Underwriters — Goldman, Sachs & Co.,
N. Y., and Piper, Jaffray & Hopwood, Min-
New York,
neapoliSj-Minn.
Pure Oil Co., Chicago, III.
July 17 filed 85,688 shares of common stock (no par) to
be offered in exchange for 471,287 shares of Hickok Oil
Corp^class A
common
stock (par $1) at rate of
Oil share for each 5V2
Co.,
a
merger
of
one
Pure
Hickok shares, conditioned upon
Hickok
into
Pure
Oil
Products
wholly-owned subsidiary of Pure Oil Co. Under¬
writer—None.
r
share for each 10 shares held
11; rights to
as
expire on Aug. 25. Price—To be
supplied by amendment. Proceeds—For
working capital.
Underwriter—Hickey & Co., Chicago, 111.
Sapphire Petroleums, Ltd., Toronto, Canada
July 3 filed $2,000,000 of 10-year 5% convertible sinking
fund debentures due July 1, 1962. Price—To be supplied
by amendment. Proceeds—To repay bank loans and for
exploration, acquisition of interests in and development
of prospective and proven oil and gas lands and the
development of
existing properties.
Underwriters—
Frame
McFayden & Co., Toronto, in Canada; U. S.
underwriters to be named later.
Monty's Stores, Inc., Seattle, Wash.
(letter of notification) $100,000 of 7%
each) and
Price—At par.
Price—20
an
tional share for each two shares held in
two, three, or
five years, at $1, $2 and $3
per share, respectively. Price
ceeds—For
cents).
Co., Denver, Colo.
approvSl of
filed
10
if Pacif'c Finance Corp., Los Angeles, Calif. (8/26)
(par 25
July
(par
Proceeds—To carry on oil exploration
program.
Office
Mercantile Bldg., Denver, Colo.
Underwriter—
Forbes &
For
•
stock
mon
of two
—
Charles,
per
to
Proceeds
Club
Hober-
July 17 filed 175,921
lnc-» Omaha, Neb.
May 6 (letter of
notification) 30,000 shares of
(no par). Price
$5 per share.
stock
Edward
convertible bonds
of class A
and
Securities,
$1,000).
Price—At par. Proceeds—To construct
racing plant and
for working capital.
Underwriter—None, but Dr. Frank
approxi¬
(letter of notification) 10,000 shares of capital
(par $1) to be offered for subscription by present
May 16
common stock
(par 25 cents). Price—50 cents
per share.
Proceeds—For drilling and
equipping well and for work¬
ing capital.
Office—11 Commerce
St., Newark, N. J.
Underwriter—Weber-Millican Co., New York.
July
share). Proceeds—To
Price—$12.50
Office—San
(Nev.), Newark, N. J.
notification) 599,700 shares
selling
July 24
stock
—For
stock (par $1).
(on the San Francisco Stock Ex¬
Proceeds—To selling stockholder
(Gwendolyn
market
change).
MacBoyle Betchtold,
per
the selling stockholder. Underwriter
Josephthal & Co. will act as agent.
.
$2.12y2
Co., New
(estimated to be
man,
—
—
New
Petroleum
stockholders at rate of-one
June 9 filed 787,736 shares of
common
stock (par 10
cents). Price—50 cents per share. Proceeds—For min¬
ing development, etc.
Underwriter—None, sales to be
made through
agents, including officers and directors,
a
the
(Pa.)
held.
Placers, Inc., Seattle, Wash.
who will receive
Fromkes,
Development Co.
(letter of notification) 70 shares of capital stock
Aug. 1
con¬
com¬
Price—$25 per unit to subscribing stock¬
holders and $27.50 per unit to
public.
Proceeds—To
continue development of "Courier"
model aircraft and
to design
and develop "Helioplane"
Office
Proceeds—To/Harry
if Lock Haven
shares
stock.
mon
share).
per
York.
3,000
common
stock (par 65 cents). Price—At the market
(about
stockholders. Underwriter—Arthur I. Korn &
shares
(par $1)
St., Rockville, Conn. Underwriter—None.
Corp., Magnolia, Ark.
(letter of notification) 100,000 shares of common
stock (no par).
Price—$2.25 per share. Proceeds—For
exploration work. Underwriter—W. R. Stephens Invest¬
ment Co., Inc., Little Rock. Ark.
(par $1). Price—$5
stock
sisting of
stock
Main
Lawton Oil
Corp., Norwood, Mass.
cumulative
Underwriter—None.
June 9
will
Helio Aircraft
accessories.
—155 W.
Proceeds—For working capital. The class A
be used to pay certain
employees of the
company for services rendered.
Underwriter—Jackson &
Co., Boston, Mass.
shares
share
LaPointe-Plascomold Corp.
July 3 (letter of notification) 92,194 shares of common
stock (par $1). Price—$2.75 per share. Proceeds—To re¬
duce accounts payable and for
working capital. Office
fered to club members in units of
$100 each.
cumulative
equipment
new
—504
each
sion
• Gyrodyne Co. of America, Inc. (N. Y.)
July 31 (letter of notification) 34,300 shares
expenses,
Underwriter—Mitchell
Overfand Oil, Inc.,
Denver, Colo.
July 17 (letter of notification) 1,000,000 shares of
held, and 40,000 shares are to be issued
upon exercise of stock options by officers and employees.
Price—$2.75 per share. Business—Manufacture of televi¬
for
Under¬
purposes.
drilling
Md.
for
Proceeds—For
factory operation
Cromer
LaPointe-Plascomold Corp.
May 29 filed 230,485 shares of common stock (par $1), of
which 190.485 shares are to be offered for
subscription
by stockholders of record June 18 at rate of one share
stock held; rights to expire
Ricah
—For
March 17 filed 1,255 shares of
writer—Wachob-Bender Corp., Omaha, Neb.
Proceeds
—
if New Mexico Copper Corp.
July 21 (letter of notification) 496,000 shares of common
stock (par 25 cents). Price—50 cents
per share. Proceeds
Under¬
City (Kansas) Telephone Co.
(letter of notification) $294,000 of first mortgage
4%% bonds, series A, due Feb. 1, 1977 (in denominations
of $1,000 each). Proceeds—To retire bank loans. Under¬
share held and at the rate of 10 shares
common
(par 5 cents). Price—10 cents per share.
expansion of operations. Underwriter
Brokerage Co., Salt Lake City, Utah.
capital.
Junction
Fuse
11
Mining Co., Salt Lake City, Utah
For
more,
Feb. 29
Co., South River, N. J.
July 22 (letter of notification) 960,000 shares of common
stock (par 10 cents) to be
offered for subscription by
stockholders of record Aug. 8 at rate of one new share
for each
Carson City, Nev.
(letter of notification) 150,000 shares of capital
Price—At par ($1 per share). Proceeds—To pur¬
chase tools and materials and office equipment.
writer—None.
stock
common
repay
Nev-Tah Oil &
stock.
Monroe, Wash.
To
—
Bids—To be received up to 10:30 a.m.
(CDT) on Aug.
at Room 1100, 231 So. La Salle
St., Chicago 4, ill.
March 5
McNelis, officers and direc¬
Co.,
600,000
Underwriter—None.
Price
common stock (par $7.25).
bank loans. Underwriters—To be
determined by competitive bidding. Probable bidders:
Blyth & Co., Inc. and Dean Witter & Co. (jointly); Kid¬
der, Peabody & Co.; Merrill Lynch, Pierce, Fenner &
Beane; A. C. Allyn & Co., Inc. and Bear, Stearns & Co.
(jointly); Lehman Brothers; Blair, Rollins & Co. Inc.
Proceeds
—
(par $1).
Price—$1 per share (Canadian funds).
Proceeds—For
capital payments on property account and option agree¬
ments, purchase of machinery and operating expenses.
Underwriters—
(8/11)
July 7 filed 200,000 shares of
June 12 (letter of notification)
600,000 shares of common
March 20 filed 200,000 shares of common stock
Co.,
Thursday, August 7, 1952
.
stock
Jersey Yukon Mines Ltd., Toronto, Canada
Home Loan & Discount
tors of the two
companies.
(par 10 cents). Price—$1 per share. Proceeds—For
if Inventors Products, Inc., Bountiful, Utah
July 28 (letter of notification) 500,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
For building and other corporate expenses, and to obtain
patents. Office — 695 North Main St., Bountiful, Utah.
on Aug. 20.
Price — 5 cents per share.
working capital. Office — 429 12th St.,
For
—
common
.
Mountain States Power Co.
common
working capital. Office—International Terminal, Wash¬
ington National Airport, Washington, D. C. Underwriter
—James T. DeWitt & Co., Washington, D. C.
cent) to be offered first to stockholders;
one
rights to expire
Proceeds
stock
(letter of notification) 300,000 shares of
.
Savoy Oil Co., Inc., Tulsa, Okla.
July 14 (letter of notification) 27,250 shares of common
stock (par 25 cents). Price—$9.50 per share. Proceeds—
For general corporate purposes.
Office—417 McBirney
Bldg., Tulsa, Okla. Underwriter—None, but shares will
be offered by company on New York Curb Exchange.
,
if Seneca Oil Co., Oklahoma City. Okla.
July 28 (letter of notification) 100,000 shares of class A
stock (par 50 cents). Price—$1.75 per share. Proceeds—
To
reduce
existing bank loans and for general funds.
First National Bank Bldg., Oklahoma City,
Office—1361
Okla.
Underwriter
—
Genesee
Valley
Securities
Co.,
Rochester, N. Y.
Signal Mines, Ltd., Toronto, Canada
July 14 filed 300,000 shares of common stock. Price—
At par ($1 per share). Proceeds—For exploration, devel¬
opment, and mining expenses, and to reimburse Maurice
Schack, Secretary-Treasurer. Business—Quartzite min¬
ing. Underwriter — Northeastern Securities Co., New
York.
Volume
176
Number 5140
.
.
The Commercial and Financial Chronicle
.
(499)
Southern Discount
Co., Atlanta, Ga.
June 17 (letter of
notification) $100,000
tures, series F.
of
5%
deben¬
Price—At par.
Proceeds—For working
capital. Office—220 Healy
Bldg., Atlanta, Ga.
Steak n Shake of
Illinois, Inc.
July 11 (letter of notification)
22,000 shares of common
stock (par 50
cents) being offered to stockholders of
record
who
July 1
own
(excepting
about
share for
one
60%
every
of
20
members
the
the
of
common
Belt
stock)
family,
at
rate
of
shares
held, with an oversub¬
scription privilege; rights to
expire on Sept. 15. Price—
$3.30 per share.
Proceeds—For expansion. Office—1700
Washington St., Bloomington, 111.
Underwriter—None.
W.
Storer
Broadcasting Co.
IS filed 215,000 shares of
common stock (par
$1),
of which
200,000 shares are being sold
by certain selling
stockholders (170,000 to be
offered publicly and 10,000 to
certain
employees; and 20,000 shares to the underwriters
under option
agreement) and the remaining 15,000 shares
.
May
being reserved for sale by
company to certain employees.
Price—Of first 200,000
shares, to be supplied by amend¬
ment; of 15,000 shares by
company, $10.62% per share.
Proceeds—For general corporate
Underwrit¬
purposes.
ers—Reynolds & Co., New York, and
Co., Miami, Fla.
Oscar E.
Offering—Temporarily
Dooly &
postponed.
it Stuart-Hall Co.,
Inc., Kansas City, Mo.
July 30 (letter of notification)
8,333 shares of common
stock (par
$1). Price—$6 per share. Proceeds—To in¬
crease
working capital.
Business—Stationery manufac¬
turer. Office—3710
Main St., Kansas
City, Mo. Under¬
writer—None.
Suburban
July 24 (letter
shares of
"total
a
share).
Fropane Gas Corp.
of notification) an
unspecified
developing oil properties. Underwriters—Paul H.
& Co.,
Chicago, 111.; Paine, Webber, Jackson &
Curtis, New York; and F. S. Moseley & Co., Boston, Mass.
Davis
Whitehead Brothers Rubber
Co., Trenton, N. J.
(letter of notification) 4,540 shares of common
(par $10) being offered td minority stockholders
of record
July 15 at rate of one share for each five
shares held; rights to
expire on Aug. 15. Goodall Rub¬
common
stock (par
$1), sufficient to sell for
$20,675. Price—At market (around
$17 per
Proceeds—To SBN Gas Co., the
selling stock¬
of
Sunshine
Packing Corp. of Pennsylvania
July 3 filed $1,000,000 of 6% convertible
debentures due
ber
of stock
to be offered
are
in units of
$50 of debentures
and 20 shares of stock.
To increase
Price—$100 per unit. Proceeds—
capacity of plant and for working capital.
Underwriter—Weber-Millican Co., New York. Offering
—Expected late in August.
Sweet
Grass
Oils,
Ltd., Toronto,
July 29 filed 375,000 shares of
common
an
additional 7,490
shares not subscribed for by other
Price—$14 per share. Proceeds—To mod¬
ernize plant. Office—Whitehead
Road, Trenton 4, N. J.
Underwriter—None.
Exchange
at time
of
offering.
capital.
•
stock
City Chemicals, Inc. (8/19)
July 23 filed $3,000,000 of 5%% subordinated
sinking
fund debentures due Jan.
1, 1963 and 300,000 shares of
common stock
(no par) to be offered in units of
$1,000
debenture and 100 shares of
stock.
Price—To be sup¬
plied by amendment
(probably at $1,150 per unit). Pro¬
construction
of
contact
dicalcium
sulphuric acid plant.
& Co., New York
City.
gan
Texas
phosphate
and
Underwriter—Glore,
•
Texas
June
Gas
19
stock
company, together with one $9 note and
two common shares of Texhead
Royalty Co.
Price—
$20 per unit.
Proceeds—For acquisition of oil and
gas
royalties in the Williston Basin area.
Office—415 San
Jacinto
Bldg., Houston 2, Texas.
Underwriter—Rotan,
Mosle &
Moreland, Houston, Tex. (See also Texhead
Royalty Co. above.)
Proceeds—To
Texas
General Production Co.
June 4 filed
2,500,000 shares of common
stock (par 50
supplied by amendment. Proceeds—
buy property for oil
prospecting. Office—Houston
be
Tex.
Underwriter—To be named by amendment
(prob¬
& Co., New York
Offering—Tentatively postponed.
ably Hemphill, Noyes, Graham, Parsons
:
Texhead Royalty
Co., Houston, Texas
July 17 (letter of notification)
$135,000 of 3% income
notes, due July, 1962, and 30,000 shares of
common stock
(par 10 cents) to be offered in units
consisting of $9
principal amount of notes and two shares of
stock
of
common
this
company, together with one $9 note and
shares of the Wilhead
Royalty Co/\Price
—$20 per unit.
Proceeds—For acquisition of oil and
gas
royalties in the southwest.
Office — 415 San
common
Bldg., Houston 2, Texas.
Morelana, Houston, Tex.
below.)
Underwriter—Rotan,
(See also Wilhead
Jacinto
MOsle
&
Royalty Co.
'-'-i
ir Transamerica Corp., San
Francisco, Calif. ;
Jfily 29 (letter of notification)
1,000 shares of common
stock (par $2). Price—At
market. Proceeds—To William
G. Lagomarsino.
Office—Montgomery St. at Columbus
Ave., San Francisco 11, Calif.
U.
S.
stock to be
Underwriter—None;/
Airlines, Inc., Ft. Lauderdale,
Fla.'£t|
June 30 (letter of
notification) 200,000 shares of common
stock (par 5
cents) of which 100,000 shares each will
be offered in
behalf of the company and in
behalf of J.
A'. Wooten,
President. Price—60 cents
per share. Pro¬
ceeds—For
working capital. Address—P. O. Box
2247,
Ft.
Lauderdale, Fla. Underwriter—None.
Warren-Bradshaw Exploration
Co.
(8/13) * 1
July 23 filed 300,000 shares of common stock
(par $1) of
which 150,000 shares will
be offered by the
company and
150,000 shares by certain
selling stockholders. '-'Price—
To be supplied
by amendment (expected around $6.50
per share). Proceeds—For
general funds and
issued in units of
$1,000
a
a detachable warrant to purchase
shares of stock at $1
per share.
Proceeds—For
200
working
Office—139-8th St., Augusta, Ga. Underwriter—
Johnston, Lane, Space & Co., Inc., Savannah, Ga.
Wisdom Magazine,
Inc., Los Angeles, Calif.
July 14 filed 6,600 shares of 5% cumulative preferred
stock (par $100) and
6,600 shares of common stock (par
$10) to be offered in units of one share of preferred and
one share of common stock.
Price—$110 per unit. Pro¬
ceeds—For working capital. Underwriter—None.
Working Capital, Inc., Garden City, N. Y.
July 21
(letter of notification) 239,800 shares of com¬
mon stock
(par five cents), with 119,900 common stock
purchase warrants attached expiring Sept.- 3, 1963 to be
sold in units of 100 shares of stock and 50
warrants. Price
per unit. Proceeds—For working
capital. Under¬
—$125
writer—W. Harry Young Co., Garden
City, N. Y.
for^jrilling
—
Brothers, New York.
Offering—Expected in August.
Bryn Mawr (Pa.) Trust Co.
July 15 stockholders approved a
proposal to increase
(par $5) from 50,000 shares
The additional 20,000 shares are being
common
70,000 shares.
stock
offered
record
for
subscription by common stockholders of
July 9 on a 2-for-5 basis; with rights to expire on
22.
Price—$25 per share.
Proceeds—To retire
Aug.
50,000 shares of 4%% cumulative preferred stock (par
$5), and for working capital. Underwriter—Laird, Bissell
&
Meeds, Wilmington, Del.
Byrd Oil Co., Dallas, Tex.
July 22 it was announced stockholders will in the fall
receive the right to subscribe for $1,700,000 of 5V2% first
mortgage
(convertible) bonds on a pro rata basis for a
standby
(certain
stockholders
have
waived
rights). Proceeds—To repay bank loans and for
development and exploration expenses. Underwriters—
Probably Dallas Rupe & Son, Dallas, Tex.; Carl M.
stock
R.
(par $10).
M.
Rogers,
Loeb, Rhoades & Co., New York; and Straus, Blosser &
McDowell, Chicago, 111.
•
California Electric Power Co. (10/1)
Aug. 5, Albert Cage, President, said "it is planned to is¬
sue and sell 350,000 shares of common stock about Oct.
1." Further financing will be carried out
early in 1953,
the proceeds of which will be used to retire
tnen
exist¬
ing bank loans and
use the balance of the proceeds for
construction, etc. It is also planned to call for re¬
demption, shortly after the sale of the 350,000 common
shares, the balance of the two convertible preference
new
stock issues (5V2% and 5.60%).
Any bonds will be sold
by competitive bidding and the stock probably through
a
negotiated
Stuart &
sale.
Co.
Inc.
Probable
and
bidders
for
Merrill Lynch,
bonds: Halsey,
Pierce, Fenner &
Beane
(jointly); Salomon Bros. & Hutzler. Underwriters
stock: Probably William R. Staats &
Co.; Lester,
Ryons & Co.; and Walston, Hoffman & Goodwin.
for
Carolina Natural Gas Corp.
May 19
common
Price—$13.25 per share. Proceeds—To
trustee for Nancy Leiter Clagett and
Thomas Leiter. Office—21 East Van Buren
St., Chicago,
111.
Underwriter—Farwell, Chapman & Co., Chicago, 111.
company sought FPC
transmission
line
estimated
authority to a new 40-mile
to
cost
$3,150,000, to be
financed
by the issuance of $1,600,000 first mortgage
bonds, $750,000 15-year debentures and $800,000 common
stock.
Traditional Underwriter
—
R.
S. Dickson
&
Co.,
Charlotte, N. C.
Carolina Power & Light Co.
(10/20)
July 17 it
Prospective Offerings
due
tive
Aeroqulp Corp.
4,
Don
•ideration
T
McKone, Chairman, announced that conbeing given to the possibility of equity
was
On Feb. 18, stockholders voted to increase th«
tuthorized
common
stock to 1,000,000 from 750,000 shares
•nd to issue 37,500 shares
ivriter—Watling
was
5% stock dividend.
Lerchen
*«eda—For additional
nature
as a
& Co., Detroit,
working capital.
which
has
not
yet
Mich.
Pre-
Central
March
4
of
Hudson
it
was
Gas
&
reported
Electric Corp.
plans the sale this
company
about
$5,500,000 first mortgage bonds.
Latest
financing was done privately in March, 1951
through Kidder, Peabody & Co.
bond
some
been
financing,
determined
ir Central
July 28 it
Barge Line Co.
May 27 stockholders approved a proposal to increase the
authorized common stock (par $5) from 330,000 to
430,000 shares and approved a waiver of
preemptive rights
to subscribe for any of the additional shares. Proceeds
—To
finance purchase of equipment and terminal and
warehouse facilities. Traditional Underwriter—F. Eberstadt &
Oct. 20.
on
Fall
Underwriter—Blyth & Co., Inc.
American
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co. and First Bos¬
ton Corp.
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Equitable Se¬
curities Corp.; Smith,
Barney & Co. Bids—To be opened
Lehman Brothers;
Under-
Manufacturing Co.
reported company may do
of
was reported company is planning
registra¬
late in August of $20,000,000 first
mortgage bonds
1982. Underwriters—To be determined
by competi¬
tion
re¬
—Dillon, Read & Co. Inc., New York.
two
common
debenture, with
the
(par $5).
reported company plans to issue and sell
issue of about
1,000,000 shares of common stock. Pro¬
ceeds—For drilling and
exploration costs. Registration
—Expected
in
near
future.
Underwriter
Lehman
their
July 1 (letter of notification) $150,000 of 6V2% subordi¬
nate debentures due
July 1, 1967, and 30,000 shares of
class A
May 12 it
(8/13)
(Canada)
was
14-day
Willingham Finance Co., Inc., Augusta, Ga.
pay bank loans and for
expansion program. Underwriter
To
income
this
Allis-Chalmers
Transmission Corp.
cents). Price—To
of
Dillon, Read & Co.,
filed 350,000 shares of
common stock
Price—To be supplied
by amendment.
Banff Oil Co., Ltd.
May 6 it
an
to
3%
July, 1962, and 30,000 shares of common stock
(par 10 cents) to be. offered in units consisting of
$9
principal amount of notes and two shares of common
financing
—
planned in 1953.
the authorized
notes due
a
For-
Transmission Corp. (8/21)
July 28 filed 190,000 shares of first
preferred stock (par
$100). Price—To be supplied
by amendment. Proceeds—
Underwriter
any
Wilhead Royalty Co.,
Houston, Texas
July 17 (letter of notification) $135,000 of
an
Eastern
For general funds.
New York.
for
June
Texas
ceeds—For
and
Zeigler Coal & Coke Co., Chicago, III.
19 (letter of
notification) 7,000 shares of
Canada
(no par).
on the Toronto Stock
Proceeds—For working
Price—To be related to quotation
Co., parent, will subscribe for
shares
stockholders.
Underwriters—Prob¬
Smith, Barney & Co.,
Debt financing for
approximately $3,000,000
New York.
stock
1972
(subordinate) and 450,000 shares of common stock
(par 50 cents) of which the debentures
and 400,000 shares
ceeds—For construction
program.
ably Union Securities Corp. and
July 2
capital.
number of
holder.
Underwriter—None, but Eastman, Dillon & Co.,
New York, and/or Bioren
&
Co., Philadelphia, Pa., will
act as brokers.
•
27
and
Illinois
Public
Service
Co.
reported company plans sale of 50,000
shares of preferred stock (par
$100). Proceeds—For con¬
struction program. Underwriters—To be determined
by
competitive bidding. Probable bidders: Blyth & Co., Inc.
was
and The First Boston
Co.
and
Corp. (jointly); Kidder, Peabody &
Corp. (jointly); Lehman Bro¬
Union Securities
thers and Bear, Stearns & Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Beane.
Co., Inc., New York.
Central Maine Power Co.
American President Lines, Ltd.
June
12
it was announced Riggs National
Bank, Wash¬
ington, D. C., will advertise for bids within 90 days for
the sale of the stock of this
company at an upset
of
price
$13,000,000. Proceeds—To be divided equally between
the government and the Dollar interests. If stock is not
sold for $14,000,000 or
more, the stock would be divided
equally between the two parties, the Government to then
dispose of its holdings. Registration—Expected within
the next two months.
Appalachian Electric Power Co. (9/23)
July 25 it was reported that the company expects to
issue and sell $17,000,000 of first
mortgage bonds due
1982 and $6,000,000 of serial notes due 1956
and 1957.
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriters
To be determined
by competitive
Halsey, Stuart & Co. Inc.;
Corp.; Kuhn, Loeb & Co. and Union Se¬
curities Corp. (jointly); Harriman
Ripley & Co. Inc. Bids
—Expected to be received by company at 11 a.m.
(EDT)
on Sept. 23.
Registration—Expected about Aug. 27.
bidding.
Probable
—
bidders:
The First Boston
Associated Telephone Co., Ltd. (Calif.)
June 9 it was reported
company may issue and sell in
October about $8,000,000 to
$9,000,000 of first mortgage
bonds, series H, due 1982. Proceeds—For repayment of
bank loans and construction
program. Underwriters—To
be determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Paine, Webber, Jackson
Curtis; White, Weld & Co.
&
28
it
was
announced
$4,000,000 of preferred stock
company
some
preferred stock (par $100) from 300,000 shares to
330,000
shares.
sary
It is
this
estimated that additional financing neces¬
will be in excess of $8,500,000.
year
Century Food Stores, Inc., Youngstown, O.
June
30
it
was
reported
may
sell
time this Fall.
about
Pro¬
company
may
issue and sell
approximately $300,000 of convertible debentures. Pro¬
ceeds
—
For expansion program.
Underwriter
—
H. M.
Byllesby & Co., Chicago, 111.
Chicago, Milwaukee, St. Paul & Pac. RR. (8/14)
will be received by the company at Room
744,
Union Station Bldg., Chicago 6,
111., up to noon (CDT)
on Aug. 14 for the
purchase from it of $3,990,000 equip¬
ment trust certificates, series QQ, to be dated
Sept. 1,
1952,. and to mature in 30 semi-annual instalments of
$133,000 each. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Bear, Stearns & Co.
Bids
Citizens Utilities Co.
June
16, Richard L. Rosenthal announced that company
anticipated doing some permanent financing in 1952,
and it was planned that this would be in the form of
mortgage bonds and debentures. No common stock fi¬
nancing is presently contemplated.
Columbus & Southern Ohio Electric Co.
April 26 it
was announced company expects to enter the
permanent financing market later this year with not less
than 200,000 shares of new common stock.
Proceeds—
For construction program.
Atlantic City Electric Co.
April
May 15 stockholders increased authorized common stock
(par $10) from 2,500,000 shares to 3,250,000 shares and
Underwriter—Dillon Read &
Co., Inc., New York.
Continued
on
page
28
}
*(
28
The Commercial and Financial Chronicle
(500)
Continued
jrora
page
$20), but no preferred stock.
Connecticut Light & Power Co.
March 1 it
that it is
presently estimated
that approximately $11,000,000 of additional capital will
he required during the latter half of 1952.
was
announced
stock (par
Price—At a minimum of
$35 per share net to company. Underwriters — Latest
common stock financing in April, 1949, was handled by
Blyth & Co., inc.; Lazard Freres & Co.; and Wegener
& Daly Corp. Proceeds—To repay bank loans and foi
225,000 additional shares of common
about
27
Consolidated Gas, Electric Light & Power Co. ef
construction
program.
Industrial
Baltimore
Research, Inc., Miami, Fla.
cient to raise approximately $22,000,000. Underwriters—
For bonds to be determined by competitive bidding.
July 15 stockholders were scheduled to approve an of¬
fering of 225,000 additional shares of common Stock
(par $1).
Underwriter — Barham & Cleveland, Coral
Gables, Fla.
&
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
Co. and The First Boston Corp. (jointly); Harriman
Jan.
Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
The First Boston Corp., Alex. Brown & Sons and John C.
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last prefened
and sell in
Dec. 24 it
stated that company plans to issue and sell
both stocks and boiids during 1952 to an amount suffi¬
was
stock sale.
Proceeds—For
new
construction,
ir Continental Air Lines, Inc.
Aug. 4 stockholders were to vote
thorized
common
stock
from
on
400,000
increasing the au¬
shares to 600,000
shares. S. B. Redmond, Secretary, stated
that "no mar¬
keting arrangements of any nature have been made
contemplated at the present time." Traditional Under¬
writer—Lehman Brothers, New York.
or
Copperweld Steel Co.
April 30 stockholders approved
the
authorized
indebtedness
City Power & Light Co.
announced that it plans to Issue
1952 about $12,000,000 principal amount first
Kansas
4
^
company
mortgage bonds (this is in addition to present preferred
and common stock financing. Underwriters — To be de"
proposal to increase
from
$5,000,000 to $15,000,000 (none presently outstanding) and the author¬
ized preferred stock (par $50) to 137,727 shares from
37,727 shares, which are all outstanding. Traditional
Underwriter—Riter & Co., New York,
n* Creameries of
America, Inc.
April 14, G. S. McKenzie, President, stated that the com¬
pany may do some long-term borrowing in about two
months to finance expansion program.
Traditional Un¬
—
Kidder,
Peabody
&
Co.
and
Mitchum,
fully & Co.
•
Duquesne Light Co.
July 8 stockholders approved
proposal
increasing
authorized preferred stock (par $50) from 800,000 shares
to
1,000,000 shares, of which it is planned to issue about
140,000 shares. Underwriters
To be determined by
—
competitive bidding.
Probable bidders:
The First Boston
Corp.; Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Lehman Brothers; Kidder, Peabody & Co.,
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly).
•
Duquesne Light Co.
July 28 it
was reported company may issue
and sell
$14,000,000 to $15,000,000 first mortgage bonds.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld
& Co.; Drexel &
Co. and Equitable Securities Corp.
(jointly); Kuhn, Loeb & Co., Union Securities Corp.
and A. C. Allyn & Co., Inc.
(jointly); Glore, Forgan &
Co.; Harriman Ripley & Co. Inc.
about
European American Airlines, Inc.
June 11 it
was reported company
plans to raise an addi¬
$400,000 of equity capital. An issue of $200,000
of capital stock was just
recently placed privately at
$7.50 per share. Underwriter
Gearhart, Kinnard &
Otis, Inc., New York.
tional
—
Food Fair Stores, Inc.
July 17 it was announced stockholders will vote Aug. 19
on
increasing authorized indebtedness from $12,000,000 to
$25,000,000 and authorized common stock to 5,000,000
from 2,500,000 shares.
No immediate issuance of any
securities
is
contemplated.
Traditional UnderwriterEastman, Dillon & Co., New York.
Glass Fibres, Inc.
April 7 stockholders voted to increase authorized com¬
mon stock from
1,000,000 shares (approximately 938,000
shares
Traditional Un¬
111.
Globe-Wecnicke Co.
March 26 stockholders increased authorized common
stock from 300,000 shares (par $5) to 600,000 shares
(par
$7), placing the
to
time
company in a position to consider from
stock dividends and the
giving of stock
rights
or warrants to present stockholders. Underwriters
—May include Westheimer & Co., Cincinnati, O. Previ¬
ous public
financing handled by W. E. Hutton & Co. and
W. D. Gradison &
Co., also of Cincinnati.
Commission
to
stock (par $10) $1,450,000 of bonds and $300,000 of prom¬
issory notes. Proceeds—For expansion program.
was
Harnischfeger Corp.
June 30 stockholders
approved proposal to increase au¬
thorized common stock from
500,000 shares (285,219
shares outstanding) to
1,000,000 shares (par $10) and
pay a 100% stock dividend on July 25 to common
stockholders of record July 18.
They also voted to
waive their
preemptive rights to the remaining author¬
to
ized but unissued stock.
or
October
first
an
Iof common shares at $22.50
per share until Sept.
new preferred
shares will be offered first
stockholders. Underwriters—Robert Garrett
The
&
Sons, Baltimore, Md.; Kidder, Peabody & Co., New
Xorkjand Moroney, Beissner & Co.,
Houston, Tex. Offerlag—Expected in September.
Idaho
Power Co.
Feb. ?7 T. E. Roach,
President, announced that the
pany's present plans consist of the sale this
and later in year some
Proceeds—To repay bank
bonds.
struction.
September
undetermined number of common shares
stockholders
to
Underwriters
—
For
additional
loans and for new con¬
stock, probably
common
Blyth & Co., Inc. and The First Boston (jointly). For
bonds, to be determined by competitive bidding. Prob¬
•
Scott Paper Co.
July 28 it
(9/8)
reported company plans to offer $25,000,stockholders about
was
000 of convertible debentures first to
15-day standby. Registration — Expected
15. Underwriters — Drexel & Co.; Merrill
Sept. 8 for
about Aug.
a
Lynch, Pierce, Fenner & Beane and Smith, Barney & Co.
com¬
summer
of
(8/13)
Seaboard Air Line RR.
will
be
bidders: Halsey, Stuart & Co. Inc.; W. C. Langley
Co.; Smith, Barney & Co.; Blyth & Co., Inc. and The
First Boston Corp. (jointly).
received
at
the office of Willkie,
ner
& Beane
(jointly); Bear, Stearns & Co.
Socony-Vacuum Oil Co.f Inc.
July 18 it was announced company plans to offer to its
common stockholders about 3,180,188 shares of common
(par $15) at the rate of one new share for
Underwriter—Morgan Stanley & Co., New York.
ing—Not expected before early September.
was
announced company
Offer¬
Southern California Edison Co.
April 18 it was reported company plans to obtain be¬
tween $25,000,000 and $28,000,000 of new capital through
the sale of additional securities. Proceeds—For new con¬
Underwriters
Probably The First Boston
—
(Inc.) Offering—Expected in
Fall.
East Industries
Corp., N. Y.
plans to expand ill
capitalization in the near future and to register lta
securities with the &EC preliminary to a large publla
offering, the funds to be used to build new industrial
projects in Israel.
it
each 10
shares held. Proceeds—For expansion and improvements.
Corp.; Harris, Hall & Co.
Middle
income bonds due Jan.
1, 2016. Underwriters—To be determined by competitive
bidding; Probable bidders: Halsey, Stuart & Co. Inc.;
Union Securities Corp. and Merrill Lynch, Pierce, Fen¬
struction.
Oct. 31
Owen,
Farr, Gallagher & Walton, 15 Broad St., New York, N. Y.,
up to noon (EDT) on Aug. 13 for the purchase from the
company of $25,000,000 25-year sinking fund debentures
due Sept. 1, 1977. Proceeds — Part of proceeds may be
used in connection with redemption on Aug. 29 of $26,-
&
Southern Ry.
3 company applied
Commission for authority
July
Interstate
Commerce
to issue and sell
$46,000,000
to the
mortgage bonds, without competitive bidding, over a
period of about four years.
Proceeds—For retirement
of
in
part of certain outstanding mortgage bonds.
Minabi
Exploration Co., Houston, Tex.
March 21 it was reported early registration is expected
of 125,000 shares of common stock. Proceeds—To go ti
certain selling stockholders.
Underwriter — Moroney,
Beissner & Co., Houston, Tex.
Mississippi Power & Light Co.
14 it was reported company plans to issue and
sell in November an issue of $8,000,000 first mortgage
bonds. Underwriters—To be determined by competitive
bidding. Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C
Langley & Co. (jointly); Equitable Securities Corp. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane; Union Securities Corp.
March
New
an
it
was
announced
company
now
contemplates
additional issue of first mortgage bonds and common
stock in equal amounts, either late in 1952 or
1953. Underwriters—For bonds to be determined
early in
by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities Corp.; Kuhn, Loeb & Co.; The
First Boston Corp.; Merrill Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co. and White, Weld & Co.
(jointly). Proceeds—To repay bank loans (estimated to
be $11,500,000 at Dec. 31, 1952).
New Orleans Public Service Inc.
(12/15)
new
construction. Underwriters—To
be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart; & Co. Inc.; Lehman Brothers; Kidder,
Peabody & Co. and Stone & Webster Securities Corp.
(jointly); Equitable Securities Corp.; Union Securities
Corp. Registration — Expected about Aug. 14. Bids —
Tentatively set for Dec. 15.
Northern Natural Gas Co.
was announced that company is considering
possible offering, first to stockholders, of $20,000,000
to $25,000,000 in convertible preferred
stock, which may
be sold on a negotiated basis.
It is also planned to issue
and sell
$40,000,000 of 20-year sinking fund debentures
through competitive sale in October or November, with
probable bidders including: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; The First Boston Corp. and Kidder,
Peabody & Co. (jointly).
Parsonnet TV-Film Studios, Inc. (8/11-15)
it was announced company intends to file in
the near future a letter of notification to cover $300,000
July 21
mon
debentures, due 1962, and 120,000 shares of
com¬
stock to be offered in units of $100 of debentures
and 40 shares of stock.
Price—$100 per unit. Proceeds
working capital. Underwriter—Trinity Securities
Corp., New York. Offering—Expected week of Aug. 11.
—For
★ Peninsular Telephone Co.
July 30 it was announced company plans issuance and
September of 160,000 shares of cumulative pre¬
expansion. Under¬
writer—Morgan Stanley & Co., New York.
sale in
ferred stock (par $25). Proceeds—For
Permian Basin Pipeline Co.,
April 25 stockholders approved an increase in author-*
ized common stock from 266,000 shares to 350,000 shares.
Traditional Underwriter—Shields & Co., New York.
Tennessee
Transmission
Gas
Co.
(9/8)
July 9 it was reported that the company plans
sale of
first mortgage bonds. Underwriters—
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Stone & Webster Securi¬
ties Corp., and White, Weld & Co. (jointly).
Bids—Ten¬
tatively expected to be received on or about Sept. 8.
about $40,000,000
To be determined
Co., Houston, Tex.
applied to FPC for authority to con¬
1.350-mile natural gas transmission line extend¬
Texas-Ohio
Oct.
Gas
17 company
struct
a
Chicago, III.
April 1 company applied to FPC for authority to con¬
a 384-mile pipeline
system from west Texas and
struct
eastern New Mexico to the Panhandle
area
mated
to
cost
$184,989,683.
The project is esti¬
Underwriter—Kidder, Pea¬
body & Co., New York.
Transcontinental Gas Pipe Line Corp.
March
it
14
was
reported company plans issuance and
sale this Fall of an issue of convertible
of Texas at
preferred stock.
Underwriters—Probably White, Weld & Co. and Stone
& Webster Securities Corp.,
New York.
United Gas Corp.
was reported that the corporation may
and sell in the early Fall $60,000,000 of debentures.
July 25 it
ceeds—To retire bank loans and for new
July 24 company announced plans to issue and sell $6,000,000 of first mortgage bonds due Dec. 1, 1982. Pro¬
ceeds—For
Standard Forgings Corp.
ing from Texas into West Virginia.
England Power Co.
June 26
of 6%
Houston Natural Gas
Corp.
i
July 29 stockholders approved a proposal to issue 120,000
shares of 5% preferred stock
(par $25) with com¬
mon stock
purchase warrants attached to purchase a like
to common
Electric Co.
July 1, L. M. Klauber announced that of the more than
$18,000,000 required for capital improvements in 1952,
approximately $4,000,000 will become available from de¬
preciation reserves and earned surplus, while the re¬
mainder must be secured through the sale of securities.
stock
^ Long Island Lighting Co.
July 30 it was reported company may sell in
a
reported company may sell this Fall an
issue of convertible preferred stock. Traditional
Under¬
writer—The First Boston Corp., New York.
JO, 1957.
Co., Ashtabula, Ohio
received permission of the Ohio P. U.
issue and sell 10,000 shares of common
New York.
San Diego Gas &
June 11 company
June 24 it
Haloid Co.
June 18 it
$58,180,000. Probable underwriters
stock; Stone & Webster Securi¬
Corp.; and Glore, Forgan & Co., both of
931,800 general mortgage 4%%
outstanding) to 1,250,000 shares to provide addi¬
tional stock for future expansion needs.
derwriter—McCormick & Co., Chicago,
time
ties
(jointly); Equitable Securities Corp.; Lehman Brothers
Stearns & Co. (jointly); Harriman Ripley &
Co., Inc. Proceeds—For new construction.
and Bear,
1952
for convertible notes and
able
a
Thursday, August 7,
.
Bids
by
*
derwriters
.
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co. (jointly); The First
Boston Corp.; White, Weld & Co. and Shields & Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
omon
Bros.
& Hutzler
and Union
Securities Corp.
termined
Lake Shore Gas
a
estimated cost of
an
.
company
and its subsidiaries.
issue
Pro¬
construction by
Underwriters—-To be de¬
competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp., Hapi*
man Ripley & Co., Inc. and Goldman, Sachs & Co. (joint¬
ly); Morgan Stanley & Co., White, Weld & Co. and
Equitable Securities Corp. (jointly). Offering—Expected
late in September or early in October.
termined by
•
Utah Power &
Light Co.
(10/15)
July 28 it was reported company plans issue and sale
of $10,000,000 first mortgage bonds due 1982. Proceeds—
To repay bank loans and for new construction.
Under¬
writers
To be determined by competitive bidding
—
Probable bidders:
(1) For bonds—Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Lehman Brothers and Bear,
Stearns & Co. (jointly); The First Boston Corp. and
Blyth & Co., Inc. (jointly); Union Securities Corp. and
Smith, Barney & Co. (jointlv); Salomon Bros. * "utzler;
Kidder, Peabody & Co. Bids—Tentatively scheduled to
be received up to 12 noon (EST) on Oct. 15.
•
Utah Power &
sale
of
common
Light Co.
(9/10)
also reported company plans issue and
165,000 shares of common stock first to
stockholders of record Sept. 10, on a l-for-8
July 28 it
was
about
basis
(with an oversubscription privilege); rights to ex¬
pire Sept. 25. Underwriter—None, but if necessary, un¬
subscribed shares may be sold at competitive bidding.
Probable bidders:
Blyth & Co., Inc.; W. C. Langley &
Co. and Glore, Forgan & Co. (jointly); Union Securities
Corp. and Smith, Barney & Co. (jointly); Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; The First Boston Corp.
Vireinia Electric & Power Co.
reported company plans issuance and
of $20,000,000 first and refunding
mortgage bonds. Underwriters — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
May 26 it
sale
later
was
this
year
Volume 176
Number 5140
The Commercial and Financial Chronicle
...
(501)
Co. Inc.;
Kuhn, Loeb & Co. and Wertheim & Co. (joint¬
ly); Stone & Webbster Securities Corp.; Union Securities
W., C.
Corp.; Salomon Bros. & Hutzler.
27.
Washington Water Power Co.
July 24 it
first mortgage bonds
To retire part of
—To
be
outstanding bank loans.
determined
pany plans
Proceeds—
line
Underwriters
by competitive bidding.
Probable
between
Wink,
Tex.,
and
Norwalk,
Calif.,
maintain such a line. It was stated that
$88,000,000 of
first mortgage bonds have been
conditionally subscribed
for by The First National Bank
of New York, The Pru¬
dential Insurance Co. of
America, The Mutual Life In¬
surance Co. of New York and
the New York Life Insur¬
ance Co.
and another
$28,000,000 is to be
with
being arranged by White, Weld & Co. and Union Securi¬
ties
provided by
the issue and sale of
$28,000,000 of junior securities. Un¬
derwriter—Eastman, Dillon & Co., New York.
Corp., both of New York.
8
page
com¬
24-inch 953-mile crude oil
pipe¬
a
$101,000,000, is
Halsey, Stuart & Co. Inc., Blyth & Co., Inc.,
Smith. Barney & Co. and White, Weld & Co.
(jointly):
from
Co., Dallas, Tex.
construction scheduled to begin in the fourth
quarter of
this year.
The financing, totaling about
bidders:
Continued
to build
14 the
Canadian Board of
Transport Commission¬
conditionally authorized this company, an affiliate
of Sunray Oil
Corp. and Pacific Petroleums,
Ltd., to
build a $111,240,000 natural
gas pipeline on the Pacific
Coast, providing gas reserves were found sufficient
to
ers
July 14, L. M. Glasco, President, announced this
1982.
due
Westcoast Transmission
Co., Ltd.
June
Bids—To be opened about Sept. 30.
West Coast Pipe Line
(9/30)
reported company plans issue and sale of
was
$30,000,000
Langley & Co. and The First Boston Corp.
(jointly). Registration—Tentatively scheduled for Aug.
operation
by
Seaboard
Air
Line
RR.
Dealer-Broker Investment
The
road,
Firth
Company—Bulletin—Eastman,
Carpet
Broad
market
Railroad,
Dillon & Co.,
257 Church
Hoffman
15
Some
turn up
Street, New Haven 10, Conn.
in
'
Electric
Co.
—
—
Cohu
&
Co., 1 Wall
available
is
a
bulletin
on
cerned
Metropolitan Water
As
Corp.—Memorandum—Smith, Barney
Broad
Gas
Bros.
&
Co.,
to give
,
.
selling
discount
for
The
step
the
Cement
Federal
into
10 Post Office Square, Boston 9,
Royal Dutch Petroleum Co.—Memorandum—Burnham
Southern
Pacific
40 Wall
&
Co.,
Street, New York 5, N. Y.
Co.
—
Memorandum
—
White,
Weld
&
Co.,
Tintic Standard Mining
Co.—Analysis—J. A. Hogle & Co., 132
Main Street, Salt Lake City 1, Utah.
Also available is an
analysis of Utah Southern Oil Company.
United States Potash
Company—Bulletin—Remer, Mitchell &
Reitzel, Inc., 208 South La Salle Street,
Chicago 4, 111.
a
page
has
have
a
a
go short because
risk
would
increase
to
a
corresponding
degree.
think
the tactics which
were
be
a
mistake to
assume
in
a
successful in the 'thirties would be
short
in
though they
even
levels
may
are
over-full
employment, scarcity of
the
to reach
week.
The
of
sharp fall in sterling was
usually followed by a correspondingly sharp recovery through its
effect on exports, today this need not be the case. For this reason
the dice woud be loaded
today as much against the Exchange
Equalization Account as they were loaded against speculators
twenty years ago.
In the
a
circumstances,
as
a
a return to fluctuating sterling cannot
solution against speculative movements. The
for
even
with
bids
op¬
was
during
well
it
was
are
indicated
slowly taking
Brown
Chas.
is
W.
take
Financial
general
&
with
Co.,
137
Financial
financial process typically appears
to unfold as follows:
"Soon after the upturn in stock
offerings and while general busi¬
ness
activity is still falling, the
net changes in bond outstandings
turn
received
a
of
Bank
G.
H.
Walker
&
the
Co., 118
Street.
(Special
to The
Financial
BRIDGEPORT,
Chronicle)
Waddell
With
(Special
&
are
a
reported
was
tracted
cannot be made of its extensive
return of
brisk
NEW
ment
some
the
White, Weld
funded
of
debt
stock
from
offerings.
financing
their capital programs
bond market at this time,
via the
bond
bond
fiancing;
offerings
turn downward;
changes in bond out¬
standings continue to fall. These
and the net
movements
persist until a late
stage in business expansion, when
offerings
In
the
the
and
next
stock
stage,
stock
prices
proceeds
market
are
no
longer obtainable for the retire¬
of
ment
ments
bonds; bond extinguish¬
downward; and the
financing be¬
turn
net volume of bond
But
the
least
cyclical rule has at
important
exception,
one
occurred
market
after
the
stock
collapse of 1929. At first
the net volume of bond
the
in
result
the
financing
way, Dr.
usual
White, Weld & Co., 74 Elm Street.
badly as
tightening of the
of
markets
money
HAVEN, Conn.—John P.
deterioration
market
of
and
therefore
general
a
credit.
The
could
bond
not
per¬
form its typical
contracyclic func¬
tion
at
the
business
trough
of
Merrill Lynch Adds
(Special
Merrill
Bond
to The Financial Chronicle)
Carleton H.
associated with
Mass.
now
—
Lynch,
Pierce, Fenner &
Beane, 10 Post Office Square.
some
com¬
quarters that buyers
would
pick
a
but
go
through
up
an
(Special
at¬
moved
brought the
on
won't
have
of
finance
BOSTON, Mass.—Edward Chal¬
Jr. is now with Renyx, Field
& Co.
offers
run
get others.
to The
BOSTON,
Financial
held
Boardman
attracted
with Vance, Sanders
series
of
wide
bids, likewise is proving attractive.
111
has
Devonshire
become
to
sustained
weeks
are
Next
the
largest
Merrill Lynch Adds
recon¬
for
week
bring out only two issues of
size,
G.
connected
Street.
refunding
.is'
(Special to The Financial Chronicle)
to
impressions often
expressed.
defaults is
The
section
especially il¬
porate bond market for the first
three decades of this
century and
that one would expect them to
predominant position in
for
defaults.
he
states,
less
than
total volume of bonds
they
half of
ac¬
the
outstanding
in default
in the majority of the
from 1900 to 1933. Between
years
1931
and
bonds
dullness
ahead.
bond
counted
& Company,
Small Business Ahead
Bankers and dealers
and
Actually,
Chronicle)
Mass.—Arthur
company's preferred stock,
long-range study
practical guides that
corporate bond
With Vance, Sanders
(Special
a
some
counter
occupy a
A-
level
Analyzed
this
luminating. Dr. Hickman notes
that rail bonds dominated the cor¬
Financial Chronicle)
mers,
3.35% yield basis
that
Renyx, Field
to The
Defaults
For the investor and the student
on
With
3.35%, the
to
rated bond
any
of
proceeds
Since certain corporations are still
Hickman relates. But in late 1931
the bond market broke
Little has become connected with
to yield
demand and
out readily. This
ciled
immediate
possibly
increased
Reed, Inc.
to The Financial Chronicle)
with
100.47
issue
The
The
rise in
a
extinguishments,
induced by the repay¬
which
Conn.—Stanley
Borucki and John T. Corcoran
BOSTON,
paying 100.11
coupon
rate. Other Day, Jr. is
repriced at
which
is
gins to rise."
Two With Waddell & Reed
total
bonds
the
the buyers
to
downward.
from
Chronicle)
Lotker has been added to
staff
the
cycle at which
stock offerings turn upward, the
fall.
BRIDGEPORT, Conn.—Dorothy
M.
point in
business
turn from bond to stock
Chronicle)
affiliated
now
Scranton
to The
turning points),
cycles. If we
the
at
"As
stock
prices become in¬
creasingly attractive, corporations
Street.
(Special
stand
a
offerings continue to rise
through early business expansion.
bonds down.
re¬
3%% rate.
will
investors
with
market
it
for
3%%
a
several
facilities.
here
even
John
the
bids ranged down to 101.80999 for
is most
use
And
company
five
obvious solution would be the extensive use of the facilities of the
International Monetary Fund. That is what the Fund is
for, and it
unsatisfactory that such
Georgia Power Co.'s
offering of 3%% bonds.
the successful
group
seemingly
be recommended
bulk
unsold
with
1932.
ment in
depreciation of sterling. In exist¬
ing circumstances there .would be no automatic brake to a de¬
preciation. With their primitive instincts speculators are well
a
in the 'thirties
the
points
series
during busi¬
be gained," says
"by
comparing
in the bond and!
general business
cause
of
(Special to The
ceived.
ports that would result from
While
by
the
at¬
the only new
issue of any con¬
debt
sequence
materials and other reasons, it would be idle to
expect an im¬
provement of the balance of payments through an increase of ex¬
of this.
$10,-
BRIDGEPORT, Conn.—Herbert
somewhat firmer
a
tone
money
But
raw
aware
represented
the
re¬
to point to the
seem
prevalence of
success¬
Twenty years ago a depreciation of sterling had
its natural limits because it tended to improve the British balance
payments. Today owing to
bonds,
in
may
Hickman,
stock
hanks
that current
basic
Dr.
that
ful in the 'fifties.
of
over
of
With G. H. Walker
Conditions
a
Notwithstanding this, it would
issues.
just
in the short end of
many
corporate
the limit beyond
sterling cannot appreciate is rigidly fixed at $2.82. When
extent of the
$17,500,000,
equipment
total
consisted
recent
though E.
indica¬
were
active
was
gage bonds marked
only be done when the exchanges can fluctuate
fairly wide range. Now that sterling is pegged speculators
the
rail
the
to
Buyers for 3.35% Yield
the rate is quoted at its lower limit of $2.78 the maximum risk in¬
volved in speculating against sterling is 4 cents per £ 1.
If, on the
other hand sterling were allowed to fluctuate within a much wider
range
of
000,000
Pennsylvania Electric Co.'s $9,500,000 of new 30-year first mort¬
can
strong inducement to
And
close
tractive.
6
Speculators in Sterling
which
excluding
week
that such inventories
down
were
not
and well
in debt to the
Federal they are not exactly in a
position to do much buying of
v
within
it ^appeared
serve
-
This
on
seems
the list.
•
squeeze.
it
sec¬
erations out of the way.
from
shelves
and
Treasury's current refinancing
Continued
quan¬
Chas. Scranton Adds
situation
it
way
Treasurys
Street, New York 5, N. Y.
time
a
Reserve
the
that
With
Broad
limited
Turning into the current
.
serious disposition to
any
nominal
Mass.
15
the
just as
well, at the moment, that potential
buyers are not too numerous.
tions of the group.
shown
review of
down to
prevailing in other
early this week there
Industry—Lerner & Co.,
hoot." And,
bond' market
cycles
stock
tity of unsold corporate bonds
that
2%s
new
weakness
Corporation—Circular—Re¬
and
Considering
But
tions
Co.—Analysis
Street
the
turning
people in tenderhooks what with
Chicago 4, 111.
Cement
busi¬
no
the
a
public Investment Company, Inc., 231 South La Salle Street,
Riverside
construction.
dealers'
some
discounting others.
Stabilization Is Analyzed
"Some idea of the stabilizing role
ob¬
so
Remaining Inventories
Recent behavior of the govern¬
ment
market has been keeping
120
.
Chemical
&
and
funds
was
Corp.—Memorandum—Warren W. York &
Instrument
"there is
done
the
use
of
balance
Co., 203 Market Street, Harrisburg, Pa.
Nuclear
•y
remarked
will
ness
new
confirms
Role of Bond Market in Economic
tained for repayment of outstand¬
that
observers
seem
small
Company—Review—Sutro
Oil
&
con¬
while
Financing
and
issue of 350,000 shares
an
balance being in stocks.
Of the debt securities the
the
Broadway, New York 5, N. Y.
Natural
day bankers will
same
Corporate
Bond
of
investment
other half of the capital market."
a
Chas. Pfizer & Co.
Company—Analysis—Kalb, Voorhis & Co., 25
Biscuit
liquidation
they added, "neither do the major
institutions which make up the
Street, New York 4, N. Y.
National
parties
nobody
greatly disturbed.
being
ness
Missouri Pacific Railroad Co.—Analysis of
reorganization pro¬
ceedings—Vilas & Hickey, 49 Wall Street, N'ew York 5, N. Y.
Montana Power
will
ing notes and to finance projected
current
operations, but
remains
several
doesn't
Co., 14 Wall Street, New York 5, N. Y. Also available is
on
the
of
such
the other day,
Corporation—Bulletin—Sheridan Bogan Paul & Co.,
Inc., 1528 Walnut Street, Philadelphia 2, Pa.
memorandum
to
attitude
with
fact
seems to be
Ludman
&
comparable
the
District of Southern California.
Middle States Petroleum
required to
the last spell of dullness
corporate
underwriting
sophical
Long Beach Unified School District—Bulletin—Bank of Amer¬
ica, N. T. & S. A., 300 Montgomery Street, San Francisco 20,
Also
be
Perhaps the heat has something
to do with the
prevailing philo¬
Street, New York 5, N. Y.
Calif.
would
which
dearth of business.
-
Memorandum
the
field
Radio—Circular—Raymond & Co., 148 State Street,
Kuhlman
thumbing of the records
probably
Co*—Memorandum—Barnes, Bodell & Goodwin,
Boston 9, Mass.
for
which
of additional $5 par common stock
of the Texas Gas Transmission Co.
Street, New York 5, N. Y.
W. R. Grace &
funds
the
Trends in
will
outstanding debts.
On
Continued from page 5
new
debentures
provide
Recommendations & Literature
Wednesday,
$25,000,000 of
on
bids for
open
25-year
data on Missouri Pacific Railroad,
Pennsylvania
Phillips Petroleum and Union Carbide & Carbon.
29
ever,
1940
the
deteriorated
and
the
status
of
rail
rapidly, how¬
percent
in default
climbed
to 27.9 from 0.5. Over
the entire period 1900 to
1943, the
OAKLAND, Calif.—Margaret A. survey indicates that default ex¬
Nider has been added to the staff* perience was best on
utility bonds
of Merrill Lynch, Pierce, Fenner and poorest on bonds in the
in¬
& Beane, 1319 Franklin Street.
dustrial group.
30
The Commercial and Financial Chronicle
(502)
Continued
from first
its
page
still
Today, price earnings ratios
modest
dividend
and
yields
but the trend of earn¬
generous,
ings and dividends in prospect is
The
downward.
made
bad mistake in 1946,
as we see
in
delusion
the
that
an
more
a
respect
expenditures for dur¬
is a development
to
able goods. This
retrospect. The market then was
under
of many people and made
cautious attitude with
power
for
a
market
which
in¬
difficult
is
to
measure
dissi¬
way
There is no known
to predict what the consumer
pated, the market rose 40% above
its 1946 high. The market is now
discounting an inevitable inflation
which from this point will prob-
will
do
that
When
delusion
statistically.
imminent.
evitable depression was
was
will
he
that
inferred
be
on
can
draw
in order to protect
of living, but it can¬
his savings
his standard
with
said
be
not
assurance
any
ably not develop but which, even
if
it
does
develop,
need
not
that
standard of living if he
market
is
today
his
stock
level
the
dividends
reach levels
before recorded, as they did
and
ings
never
in 1950,
in
savings
draw
on
order to raise his
thinks that
pros¬
expendi¬
Buyers and in¬
usually
put
were
order to keep up
tors to build
country,
our
eral
dends that
with its competi¬
tising
capital
investment
have taken
the
past
of
rate
the
been
by
telescoped
This
two.
pensated
will
be
We
effect
tical
dividends
after
Advisers
they
did in 1950, shortly begin to trend
downward and
persist in their
peaking,
downward trend
as
as
has been the
for the past year and a
case
half.
Profit Squeezes
available
A
decline
has
lay
years.
In the
steel and aluminum industries, for
by
ported earnings.
Both because
buying new products, it
possible to maintain
be
on
able to maintain itself
by government edict.
keel
One of the chief
view
the
tax
that
after
1953
is
in
reasons
business
will
on
the
an
be
the
re¬
disastrous
think
we
the steel strike will have the ef¬
the
fourth
quarter. The "catch¬
up" boom will probably run over
into the first quarter of 1953 too.
But
"catch-up" business is by
definition
non-current
and
the
"save the boom" sentiment that it
may generate carries an overtone
of desperation.
While this
"catch-up" boom is
occurring, the market will be re¬
quired to face a series of dividend
cuts.
Now these
marked
in
cuts may not be
terms of the regular
rates, but they will almost surely
raise
havoc
extras. The
With
the
temporary
year-end
upsurge of
earnings
in
reflection
of
the
"catch-up" boom will have diffi¬
culty in inspiring confidence in
stocks at
are
a
time
when dividends
being generally reduced.
While
created
the
steel
shortages
strike
and
had
meet
to
challenge of the Korean
other
foreign
policy
the
war
and
if you build plants
will let you write these
plants off in a period of five years.
Since you are faced with a tax
of 82% on any
earnings above
an
accidental level, it will profit you
to build plants at a cost of 18c
on
the dollar. True, the govern¬
that
Share
But in
Price Range
16%-12i/2
$.90
1.18
.75
141/2-11
.711/4
13
.75
1478-1074
97s
.20
51/4- 37s
.91
.10
51/4- 17s
.85
Nil
requirements, in 1946
period when the
up, whereas
1942
It is
the
84
consumer
today most consumer
have been in ade¬
consumer
wait
to
and
not of the
sequence
opinion that
of events
will
as
recession
they are,
in
even a
business
could
minor
have
serious consequences
earnings
mon
and
in terms, of
dividends of com¬
stocks.
The
downward
in
earn¬
ings and dividends could be
coun¬
trend
when
it
lapses under the
terms
a
Business
tremendous rate
under
seemed to be "all set" to
possibly in the range of
was
(29%
dollars for construction—which if it had been done at
would have cost $68 million less.
1946 priees
Also in 1951 major items of oper¬
ating co^ts were $18 'million more than they would have been
at 1946 price levels. Still worse, the rise in the price of gas in
the field began to accelerate, and by the end of 1952 it is expected
that the annual cost of Columbia's purchased gas will be some
$16 million more than it was on Dec. 16, 1951.
/
Columbia recognized that it could no longer
absorb these higher costs through larger volume of business arid
increased efficiency and that something would have to be done
Over
a
year ago
about rate increases.
Efforts
were
made to obtain rate increases
in the various states in which retail operations are
conducted. This
proved to be an immense, slow and complicated operation.
The
system had to deal with the Federal Power Commission (on sales
to other utilities), seven state commissions, some 400 local munici¬
to go so far as to cause
major business depression. But
nerable
cents.
booming and revenues were increasing
in 1950 and 18% in 1951). At .this
point, however, inflation caught up with the company. Producers
of natural gas suddenly realized that they were selling their prod¬
uct at ridiculously low prices considering the nationwide market
being opened up by. the new transcontinental pipe lines. As .prices
in .the field were riot subject to uniform or consistent regulation
they began to rise sharply, though the effects were slowed by
long-term contracts at lower prices. The rapid rise in building costs,
in connection with the great expansion program, was also a factor;
thus during 1947-51 Columbia spent nearly a quarter of a billion
at
be
minor proportions
highly probable and the profit
margins of industry being as vul¬
1
was
$1.25-$1.50.
any
recession of
21/2-
interesting to note that the stock sold at 1 in 1942 when
A year or two ago the company had
.realize its normal share earning power,
to
is
81/2
-
properties, thus complying with the SEC divestment order
the Public Utility Holding Company Act.
save.
am
1—
-
earning 85 cents a share—and at 13 in 1949 when it earned
During the interim, however, the company had consid¬
erably improved its balance sheet and had finally achieved a
reasonable dividend payout. It had also divested itself of its inter¬
ests in two important electric utilities, Dayton Power & Light
and Cincinnati Gas & Electric, together with various smaller
it
we
durable goods
of
Dividends Paid
.93
was
reasons.
parnings
$1.06
1944
investment
quired for defense
the largest of the gas companies, with
1943
the statute.
practice, much of the expanded
sense has stored
up a measure of plant and equipment inspired by
(2) A considerable expansion in
deferred demand which can be ex¬
defense needs will eventually find investment in road-building, dams
in
sometimes able to
II1/2- 41/8
teracted by such a combination as
going to encourage this
the following:
in
new
plant
and
(1) Rescission of the excess
equipment only in those industries
where the expansion would be re¬ profits tax in June of next year
ment
are
.20
a
we
institutions
.98
allowed
now,
rise
because
institutional
buying influences their trend. The
may
1945
of Certificates of
in effect was,
sanguine about the out¬
earnings and dividends in
The blue chip stocks
1274-10
long de¬
for capital equipment
a
a
a
the
them
future.
14
try special subsidies, in the form
pand plant and equipment. What
the government said to industry
the
.75
such
ex¬
look for
run
own
.30
turned around and offered indus¬
Necessity, to
not
1.20
Un¬
years.
had
large deferred needs to make
I
are
1.36
we
had
exigencies,
smaller businesses and
1946
next few
had
for
mean
chips—fail to confirm the ad¬
in the blue chips? It means
1947
in the
1946 when
having levied the most dis¬ powerful and they point to
couraging
conceivable
tax
on mounting supply and no great in¬
enterprise
and
efficiency
then crease in demand. When prices
finding itself in need of greater trend downward the tendency is
resources
it
vance
that the businessmen who
.84
investment
ment
industrial
does
priced stocks—the
1.04
that
,
fect of throwing a substantial vol¬
ume
of "catch-up" business into
What
low
de¬
are
which, by paralyzing
quate supply for some time. There
third quarter of this year — a
economy and enterprise, has not
appears to be no deferred demand
powerful contributing factor to only aggravated the price infla¬
of importance to catch up with.
declining earnings will be the tion of the past few years but has
On top of all that, government
effects of the steel strike, which also distorted the
pattern of new defense
spending is scheduled to
was protracted and will leave its
capital investment to the preju¬
taper off beginning around the
mark
on
many
industries. The dice of the years that lie im¬
middle of 1953.
third
quarter earnings will not mediately ahead.
look as bad as they actually are
Downward Price Trend Ahead
The excess profits tax that we
because in the comparable third
now have
was laid for the most
Against that background of de¬
quarter last year, many corpora¬
venal of political motives. No eco¬ clining investment in new
capital
tions
accrued
taxes
that
were
nomic justification was advanced equipment,
declining profit s,
properly allocable to the first two in
support of the measure. It was greatly increased productive capa¬
quarters. Companies were not sure
frankly a vote catcher and ap¬ city not only in this country but
until the third quarter what the
parently a good one. But the reve¬ elsewhere in the world, it is hard
new tax law would be and so they
nues it brought into the
Federal to see how the price level in gen¬
had to lump into the third quar¬
Treasury, were puny compared to eral can rise. The wage increases
ter increased tax liability which
ihe extravagance, waste and in¬ recently
granted
in
steel,
the
jproperly belonged to the first two
efficiency
which
it
created drought, the temporary shortages
'quarters. Still the earnings will
throughout the private economy. induced by the steel strike—these
look bad enough even by com¬
Not only did the tax inflate prices admittedly will have "some infla¬
parison with a year ago.
but it had the. effect of forcing tionary impact on the economy in
Fourth
quarter earnings will :orporations
to anticipate their the short run. But the other facts
show sharp improvement because
capital requirements. The govern¬ are more persistent and more
policy
red
the
1948
our
even
down.
when
1949
sumers'
not
come
in
ferred need
margins resulted from ris¬
ing labor costs and raw material
prices and price ceilings imposed
major advance or it may mean
the high priced stocks will
that
policy, the stock has been a favorite with investors, sell¬
comparatively narrow range in recent years.
I
recently sold around 14%, the 1952 range to date
being 16%-14%. The record in recent years has been as follows:
However, the fact that
out of the restrictions
it is possible and that it could growing
due to the war and the low level
happen does not alter the prob¬
of investment during the Thirties,
ability that it is not likely to work
we
now
have a- phase in which,
out that way.
capital investment has been overDisastrous Taxation
anticipated. In terms of the con¬
sure on
a
plant and equipment will de¬
cline
mid-1953.
things: it may mean that the low
priced stocks are on the verge of
a
Year
profits
anticipated,
probable
new
an even keel even
like
spending tapers off in
on
after defense
been
and a
of two
one
mean
The stock
charges
it
attracted
be
This may
dividend
ing in
tion into
can
bull market of the last year
half.
system revenues of $188 million. an.d over 16 million shares out¬
standing. With an equity ratio around 50% and a conservative
1950
profit
—
if
amortization
heavy weight
a
with the high
priced blue chip stocks during the
Columbia Gas System
Columbia Gas System is
clining and because capital needs
margin squeeze which set in after
the first quarter of 1951. The pres¬
In the immediate future
and
level
will be
profits.
have not kept pace
By OWEN ELY
five
next
The
symp¬
earnings and divi¬
usually precedes a fall
The low priced stocks
Utility Securities
heavy
the earnings
burden of charges on
ness.
see
a
have
consumers
prosperity
the
been
current
we
acceler¬
successful advertising and promo¬
second contributing cause of
the
invest¬
that
1951
dividends.
for
Economic
points out that if busi¬
at the
ment
ings has been the
burden of
mounting taxation, which reduces
net
of
maintains its ra^te of
ness
should
One reason for the fall in earn¬
Council
The
believe
consumer.
Public
now.
the
of
ated amortization is to
counts.
They are especially skep¬
when
these
earnings and
on
to the
in
com¬
dends.
reassuring
nothing
en-
spend
of the loss of confidence
into
falling off in the
capital investment in
new
the
down
on
compared to the volume of busi¬
ex¬
to
now
in the level of
a
future, beginning
of
might
place in the next five
has
years
that
these
taught by
would
as
spending, inventory building and
net foreign investment. There is
been
that
consumers
Certificates
perience to be wary. They are
skeptical of the permanency of
record high earnings and
divi¬
have
campaign
courage
example, where the expansion has
been enormous, it will be found
that the earnings in the next five
years will be surprisingly small
vestors
Government.
on
plant and equipment
Thursday, August 7, 1952
toms
possible and to ob¬ money that they otherwise would
think
of
of
spending.
These
Necessity not
wherever possible just to make things might happen.
But they
sure
that
in a future economy are contrary to the probability,
their competitors would not have which is that there will be some
more
modern and larger plants measure of let-down all along the
than they. As a result, much of the line, from the government right
rapidly
as
tain
Another
powerfully in¬
fluenced by the trend of invest¬
ment in capital goods and in such
other forms of capital conversion
into income as government deficit
is
tures
it takes time for the mar¬
of income.
will
consumer
The trend of consumer
ket to accustom itself to such new
levels
the
prices will go lower and
perity may lose its bloom.
and
direction of earnings. When, earn¬
X'''
It
income.
his
with
directly affect stock prices.
The chief danger in the
«
competitive in
.
and
airports by states and mu¬
nicipalities as well as by the Fed¬
notice that
(3)
A
decision,
probably
it
if they did
not build up their would have to be government di¬
capital equipment as rapidly as rected, on the part of big industry
possible at the cost of 18c on the to expand plant and equipment
-dollar, they would later on after wherever possible in spite of the
the excess profits tax is rescinded, great anticipation of capital re¬
pected to stimulate the economy have to pay for their plants at quirements that has already taken
in the fourth quarter of this year the rate of 50c on the dollar. The place under the spur of the excess
and the first quarter next year, it incentive was strongly laid upon profits tax.
;
has also reduced the purchasing
(4) A highly aggressive adver¬
every
management
simply
in
actually being realized in the year
are
the
Industry being
economy.
companies
The Coming Decline in
The Stock Market!
1946.
for
production
into
way
civilian
.
.
-
pal councils in Ohio, etc. Thus, on July 1, 1952, there were eight
applications before the FPC, three before state commissions and
many local applications in Ohio. At that date the system had been
able to put into effect only $2.-3 million increased rates out of
$17.4 million requested; $5.6 million were also being collected
"under bond"—i.e., subject to delayed decisions, which if adverse
would require the refunding to customers of the amounts collected
under the rate increase. There was a lag of at least six months
in
obtaining even partial rate relief.
The company, recently put out a special pamphlet report to
stockholders (from which some of the above data were taken), each
page illustrated with varied cartoons of the hare and the tortoise,
with the caption "Why the Lag?". It is to be hoped that the vari¬
ous regulatory commissions will study this report carefully and try
:
to speed up their consideration of the various rate applications. In
the first quarter of 1952 Columbia earned only 49 cents vs. 65 cents
'last year; the secopd quarter figures are not yet out, but presum¬
ably will again tn&ke a poor showing as compared with last year.
This is, of cour&e,Relieved to be a temporary situation, but never¬
theless stockholders^don't like to see the margin of safety for the
90-cent dividend ;• rate whittled down. Should the stock show a
further decline, it'might interfere with the company's huge finanee
program in connection with its necessary construction program.
Number 5140
Volume 176
.
.
The Commercial and Financial Chronicle
.
(503)
the
take
long
very
look
they are satisfied that five
from
the national
now
States
United
the
if
and
years
income of
will
be
on
a
permanently higher level and that
the intermediate cyclical difficul¬
ties will by then have been over¬
come, they can
afford to invest
the
for
sake
of
of them
of
terms
fect
forced by the
are
their
charters
and
in¬
When inflation has the ef¬
of
reducing the dividend-
paying ability of the stock, it ac¬
tually causes deflation in the price
of the
stock, not
inflation.
an
Stock
Yet
the
most
popular
single
group of stocks in the market to¬
day, the petroleum stocks, are be¬
ing valued not on the basis of
their
dividends,
by
for
the
yields
paid
lower in relation to the
yields af¬
forded by other industrial stocks
the
valued by experts on the basis of
the estimated number of barrels
of petroleum held in storage un¬
businessman
investor
and
the
not
are
willing
put their money into the stocks
to
of the smaller
companies,
evi¬
as
denced
by the failure of secondary
which are not especially
interesting to institutional invest¬
ors, to rise as they normally do
stocks,
broad front when the market
a
on
is. genuinely confident. The ratio
of the prices of
secondary stocks
to the prices of higher
priced blue
chip stocks has been trending
downward
months.
steadily for the past six
The
conclusion
is
war¬
ranted, I believe, that confidence
in the earnings and dividend out¬
look is fading and that the
higher
priced stocks
decline
are
than
stocks
to
With
a
loss
of
priced
confidence
tendency
such delusions
the
low
rise.
the
detect
likely to
more
the
are
stock
to
rely
inflation to
as
market
I
upon
put
The fact is
up.
trial
in
yields
than
petroleum
before
ever
at
years,
least.
derground.
stocks
in
the
They
are
last
self
put
convenience
up,
be
able
to
and
DIVIDEND
income.
storage
The
to
foreign imports,
fact
above
share
for
that
ground
be
may
N.
stock just
Central has
share.
had
we
Between 1939 and
a
considerable
very
Y.
Central
Central
Y.
a
Homestake
considerable
the
purchasing
depreciation
But many
currency.
of
power
the
stocks went
don't
Mines
find
or
form¬
Pierce,
worth
investors
investors
Mining
companies
or
buying
Lake Shore
'other gold
any
On
With Coburn Middlebrook
confi¬
HARTFORD, Conn.
Dean Witter & Co.
(Special to The Financial Chronicle)
STOCKTON, Calif.—Stuart
has
become
NOTICES
associated
Bender
staff
Ross
mining
during that decade,
including such equities as Inter¬
of
national Nickel and Howe Sound,
which one would expect to
be
find them,
beneficiaries of
The
de
same
Other
went
wise
in
be
may
Pasco.
also
said
of
Cerro
moved
or
side-
of the
depreciation
L. S. Starrett and
of the currency.
Corn Products,
for
example.
In
every instance, when it is studied
individually, it is found that the
stock
in
term
tion
question
in
trended
eral
the
over
the
long
direc¬
same
its dividends., Unlike Gen¬
as
American
share
of
in
Yet
ular
valuing these shares
the
the
July
29,
1952
the most
of
investment
market
NOTICES
of
rather
assets
ings and to do
that
inflation
quarterly
a
1, 1952 to
close of business
will
remain
Stockholders of record
the
at
Sept. 17, 1952. Transfer books
Checks
open.
EDMUND
A regular
dend of 50</
will
be
mailed.
HOFFMAN, Secretary.
~
make
The stock transfer books will
E
E.
COMMON
A
on
W.
on
remain open.
tember 15, 1952, to stockholders
of record August 20, 1952.
WILLIAM A. MILLER
the
Common
25
of
September
payable
has
Stock
holders of record at
cents
per
1952
24,
The Board of Di¬
EE
stock¬
to
declared
has
PtPP^LL
dividend of 20
a
share on
been declared,
cents
NOTICE
rectors
of record at the close of business
dividend
A
on
•
stock¬
to
August 25, 1952.
on
Secretary-Treasurer
Bryan, Ohio
been declared,
1952
1,
September
stock
MANUFACTURING
pay¬
able August 8th to
shareholders of rec¬
the close of business
ord
AMERICAN RADIATOR & STANDARD SANITARY
the
at
sidewise
CORPORATION
COMPANY
PABBJCS
Boston, July 31,1952
of
close
did
Mills
the
the
stock
of
stock
of
upward
moved
•
JOHN E. KING
July 15, 1952
them
as
United
Fruit,
it
summary,
stocks
is
not
are
FINE
NO.
The
of
Board
of
has
a
25
divi¬
consistently
The purchasing power
of the currency has nothing to do
with
it
unless
the
purchasing
.
of the currency has some¬
do with the dividends.
thing
to
Where
depreciation
an
declared
cents
of
record
close of business
on
of
sion
next
of
prpfit margins,
relatively
minor
sion
could
be
business
reflected
MALCOLM G. CHACE, JR.
July 31,
the
price
to
Where
depreciation
of
has
no
effect
on
dividends, it
has
no
effect
on
the
currency
the price of
the
Department of State
}
I
Do
Hereby Certify that
dissolution
COMPANY,
INC.
this
therefrom
of
is
that
with
the
has
day
such
section
Stock
a
SWEENEY
of
department
plied
9q~K
certificate of
LITHOGRAPH
been
filed
that
and
one
in
it
corporation
hundred
this
appears
has
and
com¬
five
Corporation Law, and that it
dissolved.
Given in Duplicate under
my hand and
official seal of the Department of
State, at
the
City
July,
of
one
Albany,
this
thousand
fifteenth
nine
day
hundred
of
and
Thomas J.
Sidney
B.
State.
The
dissolution
is
Company
of
only
was
this
a
New
York
State
the
tion.
of
earnings
procedure;
reincorporated in the
dissolved
New
York
State
corpora¬
8
Mi
September
31,
confidence
the fu¬
earnings and dividends is
the f fact that the low
refused
with the blue
ing that
the future
advance
chip stocks, indicat¬
businessmen
are
long time
a
to
and
taking little
trend
of
specu¬
stock
in
earnings and
dividends. Institutional buyers
taking stock
but
they
are
are
doing
in part because they are forced
so
by
their
charters
and
indentures
CENTS
share on COMMON STOCK,
2, 1952 to shareholders of
1952.
G. F. CRONMILLER, JR.
Vice President and Secretary
per
September
payable
find
-
61
the
confidence
as
reliance
that
the
July 15, 1952"
fifty (50^) cents
per share has been declared, payable
September 25, 1952, to stockholders
A dividend of
is
placing
upon
inflation
equity prices.
This
is
to
now
bolster
being
rather strikingly illustrated in the
case
the
of
the oil
most
stocks, which
popular
single
group
at
the close of business
September 11, 1952.
c
JOHN G. GREENBURGH
Treasurer.
DIVIDEND
The Board of Directors declared
i
a
if
per
!l
record
if
9?yA
Mi
to stockholders of
.
M
III
declared
the
on
Sept.
15,
1952
to
stock¬
holders of record at the close of busi¬
Sept. 1, 1952.
A
na¬
principally
:
Public Loan Corporation
Domestic Finance Corporation
share
been
has
to
declared
the close
stockholders
of
of business Aug.
CLIFTON
Company
General Public Loan
Corporation
of
Sixty-five
on
of Directors has
quarterly dividend
a
cents
the
($.65)
per
capital stock of
quarterly dividend of $.50 per
the
on
Common Stock payable Sept. 10,
1952,
Board
The
declared
share
record
27,
at
W.
this
Corporation, payable Sep¬
tember
ers
10,
1952
M. W.
GREGG,
stockhold¬
URQUHART,
Treasurer.
Vice-President and Treasurer
Aug. 6,1952
to
of record August 15, 1952,
1952.
Corporation
Ohio Finance
<?>
dividend of $1.00 pet
been
has
$4 Cumulative Preferred Stock
ness
I'iiiaiming the Consumer through
—
quarterly
payable
_______
Loan Service
?§g
A
share
Treasurer
,
August 4, 19)2
tion-wide subsidiaries
fM
CORPORATION
D. L. BARNES, JR.
\
DODGE
PHELPS
cents
August 15, 1952.
i
Mi
a.
N.I
HAZA
share, payable September
1, 1952,
J#*'
KEW TOH
30 ROCKEFELLER
regular quarterlydividend on
the Common Stock of 40
i§
are
of record
ON COMMON STOCK
ft
wanes,
market
August 11,
Broadway, New York 6, N. Y.
°'
ip
m
symptoms of delusion in
record
Corporation
juihtssrc corporation.
OJ TH CONSECUTIVE
18
wfe.
Finally,
August 11, 1952
has
30,
THE FLINTKOTE COMPANY
p
in
priced stocks ftave for
lators
in
on
Tennessee
1952
declared
for quarter
1952 DIVIDEND of ONE
and
ONE-HALF
(V/2%) PER CENT or $1.50
per
share on PREFERRED STOCK, payable
October
20,
1952
to
shareholders
of
record
October <5, 1952.
Also declared a DIVIDEND of
FIFTY
Directors
,
now.
of
routine
State of New Jersey on December
26, 1951
and .as of January
1, 1952 the New Jersey
corporation became the corporate successor
td
from
loss
the
to
persistently
we
corporation
the
Curran, Secretary of State: By
Gordon, Deputy Secretary of
ii ''
im
few
-
of
OF ILLINOIS
and
to invest.
fifty-two.
i'Mi 'sMi..'Ziiijij&i/V.
SsM
n
ture
s.
'0.
dividends that will be reported a
relation
noted
}'
three o'clock, P. M.t
July 31, 1952.
INVESTMENT COMPANY
in
year
NOTICE
State of New York
July
■
earnings
Hence, though priceearnings ratios are currently not
high, current prices may look high
A
LEGAL
this day declared a cash
dividend^ on thi
capital stock of $1.00 per share, of which $.7.'
per share was designated as regular and $.25 pe
share as extra, payable on September 12, 1952
to stockholders of record at the close of bu i
Pennsylvania
;
Beard
and
rise.
in
dividends.
of
Pittsburgh
(mhicw
greater
rise,
the
causes
lias
REFRACTORIES COMPANY
Broadway, New York 4, N. Y.
fw
COMPANY
A. C. MINTON, Secretary
HARBISON-WALKER
C. EARLE MORAN
far
a
OIL
(Incorporated in New Jersey)
ness,
Secretary and Treasurer
25
I
decline
cur¬
rency causes the dividends to
it
then
President
1952
the
at
The Board of Directors of th«
STANDARD
Aug. 11, 1952.
August 26,
reces¬
in
1, 1952 to
1952.
the
even a
record
of
Common
ULflJLfi JLCJUULft 1UUUUUL0JUUL9 fL9J1
reces¬
view
In
year.
vulnerable
dividend
the
on
September
stockholders of
ending
business
regular
a
share
per
its capital stock of
on
stockholders
unprecedentedly high level
measure
£sso
Spinning Associates, Inc.,
Stock, payable
Seventy-five Cents ($.75)
share
Fine
for the past 15 months. We foresee
some
shire
the par value of $50 per share,
payable September 25, 1952, to
and the trend has been downward
and
Directors
has today declared
pany
in
the correlation between dividends
of
Anaconda Copper Mining Com¬
price-earn¬
ings ratios and to customary divi¬
dend yield.' But the current rate
to
INC
The Board of Directors of the Berk¬
recognized
now
SPINNING ASSOCIATES
177
July 21, 1952
per
high
Checks will be mailed by the Old Colony
Trust Company of Boston, Dividend Disburs¬
ing Agents.
Path. E. Crocker, Secretary
160 State Street, Boston, Mass.
AnacondA
DIVIDEND
was
power
Sec.-Treas.
record at the close of business August 8,1952.
earn¬
lation
prices.
One Dollar ($1.00) per
'
of earnings-and dividends is close
held
dividend of Seventy-five
year-end extra dividend of
share have been declared
payable August 15, 1952, to stockholders of
A regular quarterly
Cents (75^) and a
in
Sharp & Dohme, and many other
companies. Still, the only corre¬
that
July 28th.
L. L. HAWK
Vice President and Treasurer
relation to traditional
direction,
General
business
PEPPERELL
share of
per
common
September 3, 1952.
on
quar¬
cents and an
dividend of 15 cents per share
the common stock, payable Sep¬
The AR0 EQUIPMENT CORP.
DIVIDEND
the Preferred Stock has
a
terly dividend of 30
extra
ATKINSON, Treasurer
DIVIDEND
quarterly dividend of $1.75 per share
dend of
In
NOTICES
The Directors have declared
August5, 1952.
DIVIDEND
PREFERRED
Vulnerability
that
at
Dividend No. 61
quarterly diviper share has
been
S
EE
AMERicAN-^tattdavd
greater value because of the per¬
of the assets.
rate held fairly
steady between 1939 and 1949 and
whose price moved in the same
Tucker,
away
LANE-WELLS
ifiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiii
manency
Transportation
Baker,
TECHNICAL OIL FIELD SERVICES
declared on the Capital Stock of this
Company, payable September 16, 1952, to
stockholders of record August 29, 1952.
25
EE
stocks,
than
the
COMPANY
dividend
ss
Oct.
in the delusion
so
will
C.
DIVIDEND
pop¬
group
today, the oil
to
Middlebrook,
Anthony & Co., passed
STOCK
=
we
find a tendency on the part
of investors to value them on the
basis
&
Newcombe C. Baker
Newcombe
LION OIL
company
of
earnings and divi¬
case
single
dividend
whose
;are^applicable to each
outstanding stock. You
the basis of the
Coburn
Dorothy
—
added
Inc., 100 Trumbull Street.
'
industrial stocks
down
spite
inflation trend.
an
that
ore
been
with Dean
dends present or in prospect that
can
be derived from the assets.
down in price
has
of
the age of 56.
DIVIDEND
and three-quarters per cent was declared on
the Preferred Stock of this
Company, payable
the basis of the tons
on
tional Bank
Building. Mr. Layton
formerly with Sidlo, Simons,
Roberts & Co.
was
Stuart Ross Joins
one
of $137
is
by the divi¬
dend-paying ability of the stock.
You
very
was
Oregon, office.
the
re¬
supported
inflation in commodity prices and
in
He
Lynch,
COMPANY
because N. Y.
book value
a
N.
be
Merrill
Mason Brothers.
PREFERRED
as
duced by rising costs, are not be¬
ing given much consideration. But
you
don't find investors paying
a
with
Fenner & Beane in their
Portland,
usually
when
can
that the profits
or
distribution
a
Seventeenth Street.
erly
AMERICAN
it
markets may be restricted by pro¬
ration or by falling prices due to
$137
worth,
and
trending lower.
are
price
a
the tranfer of his oil from under¬
common
has
own
for it and realize the difference
the
of
earnings
periods
E. Ry¬
DENVER, Colo.
Robert S.
joined the staff of Bos¬ Layton has become
affiliated with
Sullivan & Co., Inc., 660 Forbes and
Company, First Na¬
—
der
earnings and divi¬ Witter &
Co., 16 North San Joa¬
dends is on the wane and when
quin Street. He was formerly with
earnings and dividends themselves Walston, Hoffman & Goodwin and
holders
1949
of
Joins Forbes & Co.
(Special to The Financial
Chronicle)
these
dence in future
could
that stocks pay.
regardless
substantially higher than he paid
on
of
Such delusions
accompany
payable
dividends
prices
level
dividends.
today because 20 is the price that
the
the
up
underground
trend
up.
bring
above ground, sell it at
ground
the
causes
31
DENVER, Colo.—Chester
in
stocks that have permanent assets
only
inflates
but that
which
process
Bosworth, Sullivan
(Special to The Financial Chronicle)
buys oil
underground, he will at his
dividend
before
ever
these low yields is based upon the
delusion that inflation will of it¬
only 20 in the mind of
it
than
With
other indus¬
The reasoning is that
oil
prices will go up,
Therefore if the investor
up
15
being
are
to
equity yields,
that inflation inflates stock
prices
if
relation
valuation
dentures to invest funds whenever
smaller
lower
other
Values
they have funds to invest, regard¬
less of any liquidity preference
that
the
managers
of the trust
might personally entertain.
But
smaller
institutional buyers, even
though their dividend yields are
among
the past 15 years. It is not
simply
that the
yields are lower than
Popular Delusion Over Oil
current
yield on
the expectation of better prices a
long way off. As a matter of fact,
many
stock.
July 30, 1952
«
32
The Commercial and Financial Chronicle
(504)
.
.
Thursday, August 7, 1953
.
BUSINESS BUZZ
COMING
Washington
A
Behtod-tbe-Sceno Interpretation*
from the Nation's
EVENTS
In
gA
^
jljL I V\Aj
Capital
A
wk.
Aug. 22, 1952
Bond
strike
C. —Any
D.
before
is
winter
not
World War II
"The years since
have demonstrated
that
*
eco-
our
capital, de- nomic system, reinforced by pubjspite the notice sent by President lie policy, has been able to avoid
John Lewis of the United Mine depression by keeping production
anticipated
by
this
<■■■
-of current usage,
Security Traders Association ot
New
York Outing at Richmond
County Country Club,
Dongaa
Hills, Staten Island.
.ground amount to
the
of
With
«
largest
in
use
84-day
an
supply
in
sup-
terms
history.
possibility,
coal
users
$>ected to boost their stocks
between
-roore
.•1ca£y c
<?. ^
ex-
know
what it
even
strike techni-
a
^ac?V
,said> there would
demand picks up.
For this reason
they expect the negotiation of
dispute
wage
to be
a
Bond
"The
expansion of the economy
Sept. 28-Oct. 1, 1952 (Atlanta
City, N. J.)
American
supporting any foreseeable
security
enable
to
^me
the
at
us
same
progressively
of living> to come
Oct.
the
6x54
P0<o:.
near
wiping out poverty within our
boundaries, and
to make
our
to
Lewis served notice
the
on
mines
Northern
owned
operators,
the
by
steel
Because of this, in part, indus¬
try expects at least a partial "pass
of
through" of the added costs of
OPS
that Lewis
was fort" to be carried on after milagreement itary security of the free world is
the Northerners, an agree- obtained.
,
viking
with
for
which
anient
quick
a
he
could
to
use
badger the Southerners into line.
By including the Southerners
Elatedly in
the strike
notice,
Xcwis has probably given up hope
of a quick agreement with the
northerners, it is said,
m
#
Tar
#
i
a...
^
Wilson Wyatt, whom Governor
Stevenson named
achievement
J.ustron
in
the
Washington
RFC
to
was
make
the
loan, whose dismal fail-
Sivf heartogsjeaCs parHf
JiVC
C
fte
investigation
investigation.
oiSf«*0rac ^
War cam^
f
a
Jw1
•
1+.
t
LclS
fltr
desperate for objects of exjoenditure and inflation - promoWets
lion.
Housing was the main reliance, and housing must be built
regardless of almost any considerx^tion, it was then demanded.
At that time
vision
of
Housing
ward civilian
law
there
was
under
Expediter
the RFC to make
a
pro-
which
could
the
direct
loan to prefab
The RFC balked
-**>anufacturers.
a
at making the loan to Lustron in
view of what RFC said was the
production, they
considerable part
a
,
.
^
rwPnlo
«
JSfsjJlSo
*
basic
S
10
to
wrrack itT\os°ses0r S°
oack
win
*
Largely
losses.
*
*
in
the
in
practical
effect
^ot
in the next six months, because
that Pr°duction was in major part
goin^
about
fast
as
as
it
rould
!nVwaroninventorv
L L inventory,
whether Eisenhower
or
Stevenson
will win the election next Novem¬
ber is
both
have
and the
long
advo-
the managed
economy the
Mid-Year report went into a
binge
o»i
this
subject.
The
managed
oconomy is successful.
the
depressions.
United
more
States
employed
billion
no
end of embar¬
The
come
Standard
consensus
will
be
is
that
Boettcher Co. Adds
out¬
the
determined
by
the
(Special to The Financial Chronicle)
DENVER, Colo.—Logan Shillinglaw, Jr., has become associated
with
the
There is
(5) In any case there will be
chaos and confusion,
arguments
are
that
industry, it
liberal
If
not,
or
will
they
year
Fall
meeting at the Ambassador Hotel.
Oct. 20-23, 1952 (Miami, Fla.)
National
Security Traders Amo-
elation Convention
at
the Ronep
Plaza HoteL
Oct. 24-27, 1952 (Havana, Cuba)
National
Security
Traders
As¬
sociation Convention tour.
Nov. 30-Dec. 5, 1952
J J
(Hollywood, Fla.)
Investment Bankers Association;
Annual Convention at the
Holly¬
wood Beach Hotel.
Friedman, Brokaw Adds
ST.
LOUIS,
Mouscher is
now
Mo.—Lester
with
G„
Friedman,
Brokaw
& Co., 711 St. Charles
Street, members of the New York:
and Midwest Stock
Exchanges.
Company, 828
Street, members of
I
For
WE
blunders
Business
should
actively
work
RIVERSIDE CEMENT CO.
A
leading
In
producer
fast-growing
S
STOCK
of
o
cement
ut h
e r n
California.
knowing what the
for him.
SUGGEST
CLASS B (common)
Man's
all about.
produc-
of
use
it
can
Exchange,
Governors
&
a
aas Passed.
of
Largo Appreciation Potential
of each.
bleness of not
steel.
Board
effectiveness of
S°ods,!° havf any id.ea what
®£ee supplies will be available to
?em' before another two months
by the end of the
Firms
the New York Stock Exchange.
suspicion that neither
candidate is a brilliant campaign¬
er, and both confess to the hum¬
pr°babIy catch up its
tion
Boettcher
Seventeenth
impression the candidates several¬
make, by
Calif.)
Association of Stock
(Special to The Financial Chronicle)
by the relative genius
As for the motor
Fall
Hopkin*
Investment Co. of Cali¬
fornia, 87 South Lake Avenue.
relative
candidates
(4) The set-asides and other
P^o^ty orders make it lmpossi?le for industry producing civil-
election.
Mark
Oct. 8-10, 1952 (Los Angeles,
the organizations they set up, and
ian
Exchanges
Governors
Bookshelf
Analysis of this Company and
review of the Cement Indus¬
a
try
available
on
request.
Availablo around
Speculative
Merits
Stock Warrants
of
LERNER & CO.
Sidney Fried —
Dept. C, R. H. M. Associates, 220
Fifth
14/^
Common
—
Avenue, New York 1, N. Y.
—$2.00 per copy (or send for free
descriptive folder).
Investment
10 Post Offteo
Securities
Square, Boston 9, Mass.
Telephone
Teletype
HUbbard 2-1990
BS 69
if NpA
conversion
be
another
Trading Markets in
was
Administration
quered
linois Governor
Mid-Year
Although the President
cated
problem of Truman,
who insists upon a "give' em hell"
for
the
100%
pure
Fair Deal,
something that may cause the Il¬
decidedly cautious.
With
ly
Economic story.
Retail inventories of new
the tone of that report Passenger cars are said to total
the managed
economy.
about 100,000 units, an average of
Kcport
the additional
(Special to The Financial Chronicle)
*
"moderates," and with both being
ed with inventory> way beyond virtually unknown as to their
current needs, before the strike.
views, this caution about predict¬
(3) It will be impossible to boost ing is natural.
defense production almost double
allows
overlooked
President's
out
*
its
the
steel
*hese ProducCTS heavi* overload"
RFC
xrying
having
PASADENA, Calif.—Theron R.
balance, private speculation
White has become connected with
around
this
capital city as to
,.
d
partmen't
OPS
Both have, of course, their spe¬
cial problems of unifying their
(6) Before long the labor unions
.small amount of capital put in
by will come along and rescue civil- dissident parties. Eisenhower has
the problem of trying to convince
^ya^ went to the ian producers of durables from the
white House and got the RFC orrestrictive steel orders, with the conservative Republicans not only
dered to make the initial loan to
help of Democratic candidates for that they should vote for
him, but
Jiustron. After it made an
initial
besides
On
/ox
f
the
since
are
unrealistic
the former Housing
whose
most
notable
Expediter
force
his campaign
blessing,
of the added cost of steel allowed
Stevenson,
problem of wooing the South, has
price rassment if Truman follows
ceiling rise. Another reason for through with this line.
*
*
*
this expectation is that OPS staff
(This column is intended to re¬
Now that NPA-DPA have got
officials feel it is justified.
The
flect the "behind the scene" inter¬
their orders written setting up a agency is fooling along with some
pretation from the nation's Capital
big preference in steel for defense weird formulas to justify the ceil¬ and
may or may not coincide with
production, and industry repre- ing price rise to fabricators.
the "Chronicle's" own views.)
sentatives have looked over these
Of course there will necessarily
orders, here are the conclusions,
be a lot of demagoging by OPS
(1) In spite of the apparent before the "pass through" is offi¬
With Standard Inv. Co.
reasonableness of these orders to- cial.
is
manager,
to
as
Stock
of
the
at
Francisco.
Hotel.
panies. Lewis at first ignored the sentiment, another statement
Southern Coal Producers Asso- the President was also overlooked,
steel. In other words, industry ex¬
ciation. The industry uniformally it was that economic aid to for¬
pects to be able to pass on with
feit, before the Southerners got eign nations must be a "long eftheir notice, too,
Board
meeting
this "we have done it"
Besides
Association
(San
Association of
proper
com-
5-7, 1952
Calif.)
Firms
contribution
toward
a
whose
association
is
heavily more
prosperous
and
a
more
weighted
with
the
"captive" peaceful world."
only
Bankers
Annual Convention.
total
short of
programs
Philadelphia anday at the Huntingdon
Country Club, Abingtoa,
Valley
Pennsylvania.
which we can achieve within this
decade
is
of
a
size sufficient,
wbiie
Club of
nual field
We
determined to take all necessteps to avoid that cost.
long- standard
a
drawn out affair.
Originally
are
sary
Sept. 26, 1952 (Philadelphia, Pa.)
But we would
would cost.
day at the Knoilwooci
Country Club.
Through neglect, we
have one.
l*e little point in an actual walkout of miners before the winter
coal
to
could
and the end of
now
^September, when
\
is
year
are
Municipal Bond Club of Chicago
annual field
it
unworthy of this great Nation
regard another depression as
circumstances,
these
"Under
unavoidable.
strike later in the
a
Sept. 19, 1952 (Chicago, 111.)
calamity," wrote the President,
coal stocks above
Denver-Rocky
Sept. 5, 1952 (New York City)
■
no-
Officials point out that in terms
of
Club.
/y
yMft/'t
and consumption reasonably in
lice of termination of the present balance.
Some maladjustments
wage contract in the entire coal have
occurred, but these have
dndustry at the end of September, been remedied in time to prevent
Workers, giving the 60-day
(Denver, Colo.)
Club
'-
WASHINGTON,
Field
Mountain Group of IBA Summer
Frolic at the Park Hill Country
-\C3
•coal
Investment
y fY§9
more
It has
It
persons
of
its
administrative
gress
propriations in half, necessitating
million
and
"gross
cut
con-
give
will
four
two cars to a dealer> versus a more
narmal inventory of 10 to a dealer,
or an ^gregate of 500,000 cars.
*
*
*
is all but folding up. Con-
$100
national
,
a
**
•
aym^ 0 ^
/
*
ap-
,
about half the
force- The best division chiefs in
product" by 1960—or this is what
OPS have been deserting the place
Harry Truman
as
says
is
so;
Kingwood Oil
FIRM TRADING MARKETS
FOREIGN
SECURITIES
HARL MARKS & PA INC
South Shore Oil 6* Dev.
Beneficial Corporation
FOREIGN SECURITIES SPECIALISTS
50 BROAD STREET...NEW YORK 4, N. Y.
TEL. HANOVER 2-0050... TELETYPE: NY 1-971
,
Thompson & Co., Inc.
Trading Department
70 WALL STREET,
N. Y. S
TmL WHltahall 4-4540
•
fast
as
they can,
,
@FedFRASER