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ESTABLISHED JS39
UNIVEoF(ty
OF
MICH G
L
Minus
mm
libkar:
Financial
JLJTmkJLji
JLJL\ JEmmJL
JL
Reg. U. S. Pat. Offioe
Volume 176
New York
Number 5176
Price 40 Cents
7, N. Y., Thursday, December 11, 1952
Copy
a
EDITORIAL
Bond Price
We See It
As
"We
must
not
deal of the
of
the
ber
Investment
was
the keynote of
Association
of
The results of the
be
cannot
interpreted,
Manufacturers
voting in Novem¬
so
of
several
the
sive
speakers emphatically asserted, as providing a
green light for a return to past practices and
policies, so far as these do not conform to present
day conceptions of right and justice. American
business is on trial for the next few years, they
said, and the verdict will depend largely upon
the results obtained
fare and "social
will
venture
the
too
progress."
Bennett, at
one
National
Association
of
a
States
United
low for
much
too
long
are
perceptible,
Continued
on
3.33%,
up
issues
to
3.20%
spectively...
T
-
%%
almost
now
It is
trial
rate
a
2.25%
flat, from 2.05%
curve
will
be
may
bills to 2.72%
is
one
that
become
concave
at the
this is
armies
the
become
a
a
indus¬
upon
consequence,
a
nation and its
shots
at
taken
Security Traders Association of New York
have
power
become
one
page
the
appear
Annual
on
pages
the
into
of the leadership
leadership of the
is
longer
no
in
now
range
inescap¬
indisputably clear
being,
freedom's
Douglas MacArthur
standing
the
the
nor
naval
frontiers,
vast
and
air
forces
which stay the
bloody spectre of willful aggression, but rather a realistic
looking
appreciation of
moment, although
on
it
which
and that the short
our
massive potential of industrial power
Continued
36
on
page
32
•An address
by Mr. MacArthur at the Annual Dinner of the 57th
Congress of American Industry, sponsored by the National Asso¬
ciation of Manufacturers, New York City, Dec. 5, 1952.
address
ISSUE—Candid
THIS
has
As
able. It has become
York
IN
become
other is not only logical but
the
on
by Mr. Townsend before the Mid-Year
Meeting of the National Association of Mutual Savings Banks, New
City, Dec. 8, 1952.
32
main line of
a
depends
now
supremacy.
inseparable.
The integration
Townsend
W.
of
higher than the long but
an
so
finds
and
W.
Continued
of
do
events,
the battle line to the assembly
that
It has
industry
industrial
long Governments,
on
on
little too far down the road
"'Abstract
of
teaches
war
the armed forces of
entirely within the bounds of possibility that the
interest
in the march
unassailable truth that the
of
campaign
'
long Governments.
same
address
I
,
about
to
that I
major element in the science of war.
The successful conduct of a military
more
Bills
on
distinction
rare
who,
modern
defense.
an
science
rapid and the inter¬
est "curve," which was convex, from
the
PICTURES
It is
The rise in the short rate has been
somewhat
of
bulwark of human freedom.
and
re-
For
national
the two next
finds
page
the
2V2%
and
2%%
time President of
and
Senator from Utah,
on
from
quality
sense
industry has become
highest grade corporate bonds from
best
urges
of the nation's industrial great.
Soldier
Old
an
line.
it
2.40% to 3.10% and
a
service has shifted from
much
not
with
this gathering
than 10 basic points per annum
has taken the yield on the
more
but
averaging
is
It
to be almost im¬
as
must not sacrifice our resources
enterprise must be preserved.
can
of
period
a
we
capitalist system both at home and abroad, and
as
of World War II
Manufacturers
election returns merely show that
that the
bricklayer. The wages of investor capital
of partnership capital are dividends and
capital are profits. All three
warns
granting foreign aid. Calls attention to encroachment
sharp reorientation of government's course toward indus¬
try. Lauds industry's accomplishments, and holds Ameri¬
The upward trend of interest rates,
particularly in the case of the longer
bonds, has been so slow since the end
practices of American business
immediately ahead.
Wallace F.
now
in
of time.
should be in the years
the
policy, and
long-term obligations.
of these wage scales have been much
in terms of individual wel¬
generalities as these make sense or not,
to us, depending upon the meaning as¬
signed to the words used. We can not readily
think of any term that has been used in recent
years to give expression to more nonsense than
this one of "turning the clock back." Yet there
is a good deal that the business community would
do well to bear in mind about the dangers of
return to any sins of the past, and about changes
which run too strongly counter to what has,
rightly or wrongly, come of late years to be
regarded as fitting and proper. It is well, there¬
fore, to inquire very briefly—for space obviously
precludes any full treatment of so vast a subject
—into the matter of what the attitude, the pol¬
and
the
interest,
v
Asserting he has clear and definite solution of Korean
conflict, Gen. MacArthur calls for changes in foreign
on
seems
icies
of
use
General of the Army
Chairman of the Board, Remington Rand, Inc.
Capitalism will not work unless capital is at work and
capital will not work for starvation wages any more than
Such
it
DOUGLAS Mac ARTHUR*
By
Townsend, after discussing trends in interest rates,
finds downward impact on bond prices of lower intuest
rates may be offset by investment needs of pension funds,
insurance companies and savings institutions.
Points
out, however, heavy loan accounts now held by commer¬
cial banks may force borrowers to resort to more exten¬
good
a
Counselors, New York City
Mr.
soul-searching at the annual meeting
National
last week.
President, Townsend-Skinner & Co., Inc.,
try to turn the clock back,"
This, in substance,
Revamp Our Foreign Policy
That Is Leading to World War
Prospects
By W. W. TOWNSEND*
Business
Meeting
of
21 to 25 inclusive.
DEALERS
State and
in
WESTERN
U. S. Government,
State and
Municipal
Securities
telephone:
STATE
Pacific Coast &
AND
Hawaiian Securities
MUNICIPAL
Municipal
OIL & MINING
Bonds
SECURITIES
BONDS
HAnover 2-3700
Direct Private
Wires
Bond Department
Chemical
BANK & TRUST
COMPANY
Dean Witter & Co.
BROAD ST., N. Y.
THE NATIONAL CITY BANK
ESTABLISHED
Principal Commodity
OF NEW YORK
and Security Exchanges
San Francisco
Los Angeles •
•
•
Chicago
Honolulu
Bond Dept.
NATIONAL BANK
Tor Banks, Brokers
and Dealers
to
the
Government
Kenya Colony and
Head
Branches
Burma,
in
Pakistan,
Ceylon,
Aden, Kenya, Tanganyika,
Zanzibar, and Somaliland
Members
Members
30
York Stock Exchange
New York Curb Exchange
New
Broad St.
Tel. DIgby
4-7800
New York 4
Tele. NY 1-733
£2,281,250
Fund
The Bank conducts every
banking
description of
MEMBERS NEW
business.
115 BROADWAY
Trusteeships and Executorships
also undertaken
'
DEPARTMENT
ESTABLISHED t891
£3,675,000
and exchange
BANK
OP THE CITY OF NEW YORK
other Western Cities
*
Central Maine
Power Co.
NEW
YORK
YORK STOCK EXCH.
t NORTH LA
COMMON
Ltd.
GOODBODY & CO.
£4,562,500
Paid-up
Reserve
10
NATIONAL
Denver
Spokane
Ltd.
Sherritt Gordon Mines,
CANADIAN
Protectorate.
Authorised
Capital
Capital
and
,
BONDS & STOCKS
Natural Gas Co.,
Uganda,
Hardy & Co.
CHASE
CANADIAN
Uganda
26,
India.
Los Angeles
Peace River
in
Bishopsgate,
London, E. C. 2
Offitfii
Teletype: NY 1-708
Albercan Oils
of INDIA. LIMITED
Bankers
BROKERAGE SERVICE
50
THE
1915
Principal Exchanges
BROADWAY • NEW YORK CITY
Members of All
Salt Lake City
Boston
STOCK and BOND
J. A. HOGLE & CO.
N
Members of
BOND DEPARTMENT
30
Street, New York, N. Y.
14 Wall
Prospectus
Doafuox Securites
6rporatio?t
40 Exchange Place,
New York 3, N. Y,
CHICAGO
Teletype NY 1-702-3
WHlteball 4-8161
request
ira haupt & CO.
Members New
York Stock Exchange
and other Principal
.
Exchanges
Ill Broadway, N. Y.
WOrth 4-6000
SALLE ST.
on
Boston
6
Teletype NY 1-2708
Telephone: Enterprise 182Q
2
The Commercial and Financial Chronicle
(2213)
The
and
POSITION
WE
Security I Like Best
IN
TRADE
This
Forum
A continuous forum in which, each
Arkansas Missouri Power
week, a different group of experts
field from all sections of the country
in the investment and advisory
participate and give their reasons for favoring
Central Public Utility
particular security.
a
Central Vermont Public Service
they to be regarded, as
are
Duquesne Light
intended
he, nor
offer to sell the securities discussed.)
an
joint
a
G. FREDERIC HELBIG
not
are
to
Mount
has
that
venture
built
Eastern Utilities Assoc.
Common
Mount
Conv.
&
Helbig & Co., N. Y. City
Mills,
Vernon-Woodberry
Not
Iowa Public Service
the
to
"The
^at over the
I
Security
enron-
^
ie,
Portland General Electric
y
°
t r +vf
hue
tho
cump
security
Puget Sound Power & Light
been
s
mentioned
the
Curb Exchange
wiriP
re^e
?s,
„
to
avoid
tion for reader interest.
At
PONNELL & CO.
New
York
Stock
York
Curb
5
2-7815
Vernon
its
Mills,
Inc.
the
Alabama-Tennessee
has
been
common,
nual
20
I
Gas Co.
is
and
is
dividend
quarterly).
Commonwealth Natural
rate
that
split
stock
new
around
Natural Gas Co.
Since
annum.
stock
Trading Markets
for
2
Sept.
the
30,
corded
Scott, Horner &
Mason, Inc.
selling
$1.50
a
an¬
still the security
is
months
nine
1952,
sales
the
ended
company
re-
of
in
LD 33
JllllllllllllllilllllllllllllllllllllllllllllL
the
income
company's
$3*5n E?„r share
mg
r640,000
thue outstan<?-
on
common shares. Note
nine
months figures
these
well
history.
$2,329,000, equal
was
•°
were
twice
over
the
annual
$1.50 regular dividend rate. For
the full year 1951, net sales were
a
record $62,900,000, and net income was
LAMBORN & CO., Inc.
NEW
STREET
YORK
5, N. Y.
$8.13
on
property sold (net
plicable taxes), there
stock
is
after
still
—
Liquid
three
over
out of
times
last
"
Anyone familiar
with
the
de-
pressed conditions within the textile
industry during the past two
might well raise
years
DIgby 4-2727
the
at
of
eyebrow
-
The explanation lies in the
fact that this company specializes
in fabrics for industry, as distin-
1856
guished
from
the
home-furnishing
H. Hentz & Co.
\
an
foregoing accomplishments
Vernon
Woodberry
Mount
Mills.
Established
an
apparel
textiles,
ment
is
experienced, capable,
Mount
Vernon
Stock
Exchange
York
Curb
Exchange
fine, modern mills
Exchange
Baltimore, Md, Columbia,
York
Cotton
Exchange,
Commodity
Inc.
•
Chicago
Board
'of
Trade
1
New
Orleans
And
Cotton
other
Exchange
Exchanges
and
produces
over
structions for
trial
is
Exchange Bldg.
"
NEW YORK 4, N. Y.
CHICAGO
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
-
are
grouped at
S,
C„
The company
2,000 different con-
experimental policy
while
the
the-codnter), I think it still offers
logical yardstick for
parison.
a
West
Point
is
great
bulk of production is of
cotton, an
increasing proportion is made up
of various synthetics. A
good example of the forward looking attitude of the management, is found
in the company's
participation in
York
Since West
widely known
more
in investment circles (traded over-
new
a
of
heavy
ex¬
duty
nine
HAnover 2-0700
New Orleans,
Vernon.
Net
ore' which has been under con"
rent
West
probably require
tkan Mount
Vernon and
competitors
could
duck
more
in
of
assets
From
analytical
an
viewpoint,
Mount
value
Conv.
or
Vernon's
tive
3%'s
&
1967
Cleveland Electric
Common
Pacific
of
offices
Rgts.
;.
Illuminating
&
Rgts.
Telephone
Common
book
Point
with
dividend
yearly
10c
branch
our
&
Rgts.
*
cur¬
were
$15.50
for
Prospectus
on
request
True, West Point's
Mount
a
to
^Consolidated Gas of Baltimore
*
$10.54, compared
its regular
all
produce
year
wires
month later.
a
value of Mount
Mount Vernon.
NY 1-1557
La. -Birmingham, Ala.
Mobile, Ala.
Direct
earnings of $3.62 for the
months ended
the
sideration f0r the past few years,
Exchange
currently selling
Aug. 31, 1952, West Point earned
$2.32, as compared with* Mount
Vernon's
Curb
St., New York 4, N. Y.
com¬
mines- The Proposed conveyor West Point has a book
^elt system from the Great Lakes $18.50, a little over half
basis
share
a
$1.50 annual
is
$1.60
than
more
highly
conserva¬
rate.
However,
Vernon-Woodberry would
compare most favorably with any
the earnings margin is so substan¬
tial that Mount Vernom may be
other
Gersten & Fbenkel
Members
150
N.
Y.
Security Dealers
Broadway
Assn.
New York 7
Tel. DIgby 9-1550
Tel. NY 1-1932
expected to increase its dividends
textile
stock
book
share
3(j
Sept
value
per
common
$35 and net current
was
as-
after
sets
deducting
long-term
payable and the unimpor-
notes
tant
amount
of
preferred stock
equivalent
to
outstanding,
was
$15.50 per common share,
Two
years
parison
of
I
ago
made
a
with
consistently
in
Mfg. Co., the former's
the
rate
in
form
the future,
of
either
higher
a
annual
in the form of extras. Both
or
methods
have
been
used
in
Sargent & Co.
Delaware Rayon "A"
Brilhart Plastics
the
past.
Yes,
com-
Vernon
Mount
West Point
Mills
Mount
is
Wealden Company
Vernon-Woodberry
still
the
security
I
General Fuse
like
best.
—————_______—__
T.
R.
Carborundum
After
&
29
York City
consideration
be
given
to
a
1947,
1948
research
and' 1949. *; In
products and to broaden, the
of
particu-
about
began
three
Since
joyed
a
increase
trend
in
the
Year
Si
hasic
"•?
72,213,000
4.24
1.25
4.93
.67
1949—
56,683,000
38,714,000
.97
.08
43,450,000
.69
.67
-
*Six
„
necL
mc.iths
tAdjusted
stock
\
??u
^
•
some thing
Reid
T.
^
ment
o
offset
Thu-
any
is
fiber.
tw
t
greater volume of sales could be
to
whole
a
shrinkage
aales °£ the regular prPdUCtS-
common
tions
is
with
for
403 W. 8th ST. IOS ANGELES'TU-5630
ceramic
a
p\)R
insulating
unlimited applica¬
a
new
industrial
for
as
field for develop¬
"Fiberfrax,"
This
material
well
fnira/e in/ve&to'iA
present
products, offer¬
new
new
IN SOUTHERN CALIFORNIA
HARRY AND MYRON KUNIN
1952.
reflect
Rankin
ing
"e™, whflch ™dVP™
operations.
June
to
to
)
outstanding.
One of the
a/
OF SEASONED COMPANIES
$1.40
1948—
nrny
11aa
BLOCKS OF
Per Sh.
$1.63
1950
a
per Sh.t
$35,825,000
1951_1_
"r1;
?°
Net Sales
en¬
sales.
An. Div.
1952s!:__
nu,.5
wnlliS
in
Earned
business
„lirw
sales.
has
company
steady
results
increased
downward
uses
period
a
the
years
1950, the
any
resist
Within
reflect
to
t0
reason
1-1895
a
department was set up
developing new
for its abrasives.
some
NY
for the purpose of
company
has
1950,
CO.
Teletype
Telephone
which
jar
&
BROADWAY, NEW YORK 6
HAnover 2-6525
which has been
a
iong upward cycle, it is important in selecting an investment
that
CAPPER
RANKIN
C o., New
Company
market
a
REID
M. Horner
jn
use
in
purposes
jet engine
as
ex¬
haust.
"Life" magazine (Nov;. 10)
devoted three pages to this new
Growth companies alone aie
no^
complete answer to the product. It absorbs heat in ex¬
Problem, for while sales may be cess of 2,000 degrees Fahrenheit
exPocted to increase as acceptance without losing its qualities,
of the product becomes more uni- whereas most presently compet¬
versal, there must be a period ing materials break down at much
where earnings are plowed back lower temperatures.
to expand production and conAnother new product is "Zir¬
struct larger manufacturing facil- conium," a new atomic metal used
ities. Many investors cannot af- by the Atomic Energy Commis¬
ford to forego dividends while a sion. A new contract has been
company of this type is passing
signed whereby the Commission
I
be-
Jieve Carborundum Company offers the attractiveness of a regular dmdend-mcome pius unusual
^row
potential,
For
over
a
and
competitor.
Point is much
York Stock Exchange
In its fiscal year ended
diversity of indus- Company
applications. An ever alert factor' in
followed
Steiner, Rouse & Co.
25 Broad
berry 20).
quantities
through the growth stage.
Tallassee, Ala.
research and
N. Y. Cotton
ag-
Woodberry's
York
New
to
gressive and conservative.
Members
New
<■
and
and
equal degree that its manage-
New
'
of
chief
tensive
expected
vear'Q pqrninog
Exports—Imports—-Futures
New
(Mount Vernon-Wood¬
use
Quoted
Members New
apwas
Thus,
the
selling only
currently
slightly
Refined
—
Co.,
25
present share outstand-
ing. While $1.60 of these earnings
represented a non-recurring profit
left $6.53 per share earned
normal
operations.
SUGAR
Raw
$5,218,677, equivalent to
per
&
around
(payable
second
that
Lynchburg, Va.
WALL
com-
use
wv,
systems
and
$41,000,000, the
highest volume for a like
Net
Horner
(Page 2)
$2
period
Moore Handley Hardware Co.
99
develop-
the
1
again
on
basis
It
was
time
like best.
For
M.
City.
conveyor belts for materials handling. Such belt
selling around 20 and
was
regular dividend
per
miiiiiiimiiimiiiiiimiimiiiiiiiiiiii'
Dan River Mills
I set forth
ago
so
which had then been listed only
recently on the New York Curb
Exchange. At that time, Mount
Exchange
YORK
or
Woodberry
Exchange
New
years
preference for Mount Vernon-
my
Members
Tele. LY 62
Perhaps the
single
is the sharply x
rising
^
pany
J
1952,
rate, I shall be an exception to the rule by repeating
myself this time.
any
Two
REctor
p
,se7
,
repeating securities previously reviewed out of considera-
Since 1917
Tel.
"hMf'
1
„
Personally,
however, I
think it is only natural that the
contributors to this column prefer
Rights & Scrip
NEW
promising
Mount
ment that should benefit this
wnicn> would
,
lh
...
BROADWAY,
*
sionai ana
curities.
Specialists in
R.
to Pittsburgh for transporting iron
t
sionafanalysts
ysis
Teletype NY 1-583
G. Frederic Helbig
120
Hi/
m-en
vf«
Broadway, New York 5
BArclay 7-5660
mogt
augurs
of
mocjernizati0n of the English coal
na
120
future
duck' Mount Vernon-Woodberry
nflho exported considerable quantities
pose
o^ tne 0f sucj1 materials for use in the
comment
was
1920
Y.
Bought—Sold
Members New
rv/Cc
Corporation
N.
for
Louisiana Securities
2)
expan-
Thpnur
nru-P
New York Hanseatic
Established
wejj
than
more
Member
rpjie normai gr0wth and
sjQn 0£ jnciustry generally
"Th01^ Vernon-Woodberry.
in th
the
l c
has
Best
Like
Pacific Power & Light
Associate
kin,
York
,
period that this column
extended
Michigan Gas & Electric
(Page
lonS 2^0 1 read a com-, ture ^as j-,een
highly successful,
s0
ment
Mills,
Carborundum Corp.—T. Reid Ran¬
production, world cotton prices
and wage differentials. The ven-
Inc.
,
T
Alabama &
\
»
Vernon-Woodberry,
City.
a
Africa, thus
giving them experience in foreign
Selections
Inc.—G. Frederic Helbig, Baron
G.
Helbig & Co., New York
•
modern cotton mill in
Baron G.
Week's
Participants and
Their
•
(The articles contained in this forum
Thursday, December 11, 1952
...
60
years,
Carborundum
has
a
been
a
world-wide
leading
market
will take 150,000
pounds annually
at not less than $15 per pound.
new
plant is being built
acre
site
cost
of
to
at
Akron
(N.
approximately
produce
on
an
Y.)
A
18-
at
a
$2,500,000
Zirconium
and ' Haf¬
nium.
Carborundum Co. is also work¬
The product is an
ing with Bell Aircraft on a new
absolute necessity and must be
constantly replaced. Having at- process for tapering aircraft metal
internal
versely
organization
affected
the
which
earnings
ad-
in
"skin"
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
12-Year Performance of
for abrasives.
tained an eminent place in this
field, the company in 1947 under,
its new management revamped its
N. Q. B.
35 Industrial Stocks
FOLDER
ON
REQUEST
by using abrasive belts in¬
stead of
ditional
milling machines, and ad¬
new
products
Continued
are
ex-
National Quotation Bureau
Incorporated
46 Front Street
on
page
5
New
York4,N.Y.
Volume 176
Number 5176
.
.
The Commercial and Financial Chronicle
.
(2219)
We Musi End Handouts
INDEX
Of United Stales Dollars!
Chairman of the Board, Armstrong
—Gen.
Cork Company
data,
tariff
intelligent estimate
no
reductions.
has become
The United
States
is at
turn¬
a
S. and
velopment of the
The emergency precipi¬
by the biggest and most de-
program.
whole
tated
help—and
•
,
*•
,
-
structive
.
in
time
on
In that
years.
lavished
$ 3 8
leave.
gifts
and' supplies
allies
and
in
is
Our
no
critical
a
the
foreboding
Best
Hope for World
aid
turned
the
munism.
hope for world
the
their
which
within
and
cannot
their
not
it
made
possible
Instead
for
World
chance
to
cling
make
System
their freedom
to
start
new
a
on
the
of
16
to
is
asking
its
earn
for
Seat Reduction Plan Narrowly Approved
'Nuff Said! (Boxed)
1
"There Won't Be Much of
Cites
__L
61
BO 9-5133
18 '
from
our
is
that
clear
Teletype NY 1-3370
Philadelphia
25
31
their
Detroit
and Research
(Editorial)
—Cover
Bank and Insurance Stocks____
Business
Man's
♦
Cinerama, Inc.
goods,As We See It
Corp.
Fresnillo
20 '
Bookshelf
Reeves Soundcraft
44
_
•
healthy
a more
relationship.
Lbs Angeles
Associated Development
Regular Features
Canadian Securities
Unfortunately, our country has
29
a
bad reputation abroad
.../Coming Events in Investment Field.
8
respect to our tariff policies.From London to Tokyo and from Though a creditor nation continu¬
Dealer-Broker Investment Recommendations
8
Stockholm to Johannesburg and ously since World War I, we have
Einzig—"No Atlantic Payments Union Likely"
28
Bio de Janeiro the demand is for pursued the consistently irrational
From Washington Ahead of the News—Carlisle
leadership, not gifts; for assistance procedure of lending without al¬
Bargeron____ 10
in
rebuilding
and
expanding lowing our borrowers sufficient
35
world trade so that every nation chance to repay us by selling- us ^Indications of Current Business Activity..
■'/ Mutual Funds j
can
share in
the
business
and adequate supplies of their goods..
!___
30
clamoring for
•
29
we
to
•
26 '
Working Capital Need Causing Corporate Borrowing
that this
from all sides that we lower our
emergency period must end.
Our
'allies are protesting our-charity, tariffs or scuttle them completely.
not aid" is the slogan of
Direct Wires
20 !
John E. Whiteside Urges Reciprocal Free Trade With Canada
they have no way in which to
repay us.. There is the demand
today
Recession, if Any!"
Claim of
us.
markets
them
friends
a
Finds Inflation Curb in Flexible Reserve
Open Market Policy
so
economic
Broadway, New York 6
a
close
threatened
sides.
and
18
High Cost of Corporate Equity Capital..
give! them
offer them loans but we
is
J.F. Reilly&Co.
Chicago
being
by
way
allowed to trade with
a
healthy national life in
Stalin's cold war which
it
Helicopter
Incorporated
NYSE
receiving alms from
world
money or
But
Hiller
16
Christmas Trade May Equal Record High
strong, free
a
spite of
,
.
14
Forecasts Continued Good Business in 1953
\
continue
our
all
<
13
*
We
sound and
daily has
Warrants
Orval W. Adams Urges Preservation of
Independent Banking
/
world need to be redirected.
us
and
&
.
s;s
..
i
in¬
sound
means.
should
efforts to build
our
And
war.
other friends throughout the Free
to
Common
18
-
from the chaos of
have
Jessop Steel
14
—
A Re-Appraisal of Inflation
They must learn
economy.
live
to
has
self-created
own
ternal
which have enabled Europe to re¬
they
Lear, Inc.
•
lease,
Marshall handouts of United States dollars.
Aid, the British loan, Point Four.- Our economy, strong and rich as
NATO, and the Mutual Security it is, cannot stand such a- dramProgram—these
are
the
moves indefinitely. It is clear today that
cover
;
13
...
Security Analysis for the Trust Company—Lincoln W. Hall-
peace
the
postwar tide of Com¬
Lend
i
12
must
all
—
11
__
'
''
The Future of New York City—Curtis V. ter Kuile
Peace
and
it
'■>
Foreign Aid Has Not Weakened Nation!—Harry A. Bullis_
have not been
we
faults
accompanied
Cenco, Inc.
Quebec: Clue to Canada's Future!—Cyrus S. Eaton
ex¬
spite
inevitably
4-6551
Policy in Labor Relations?—Leo Wolman 10
An Economic Policy for a Free World—Walter Liechtenstein
;
come
from the increasing
strength of friendly"nations.
And
their
strength must grow from
waste
STREET, NEW YORK
9
of them must
our use
with
us
Our best
program—de¬
H. W. Prentis, Jr.
WALL
Telephone: WHitehall
7
A New Government
will—
who's
Obsolete Securities Dept.
99
can
there been any consistent pattern
in our efforts.
doubt but that
vast
4
But
OBSOLETES?
4
Financial Leadership—W. Harold Brenton
sufficiently vigorous or in¬
genious in applying them, nor has
;
this
Canada
have.
the
got
3
More Imports—Less Foreign Aid Gifts—Herbert V.
Prochnow.
•
There
We
Dollars!
either
the'Free
World.
But
knowledge that
friends
our
disposal.
amination of
billion in
on
States
x.
6
of the
unquestionably
'
Municipal Bonds for Bank Investment—Austin Jenner
We have all of the tools at
us.
our
have
we
'
responsibility for pro¬
viding aggressive leadership rests
seven
•
World.
Handouts of United
Prentis, Jr
WHO'S GOT THE MONEY?
but the real
war
history has
lasted
Free
End
MONEY, MONEY
Cover
Post-Election Employment
Outlook—Roger W. Babson
healthy de¬
a
economy
AND COMPANY
Cover
\
Let's Give Them Credit—Ira U.
Cobleigh
foreign countries."
to set the climate for
ing point in its foreign assistance
Must
—H. W.
Says, despite obstacles, foreign investment
"must for both U.
a
We
be made of effects of
can
Douglas MacArthur
Bond Price Prospects—W. W. Townsend
Though upholding U. S. foreign aid program as turning back
postwar tide of Communism, Mr. Prentis asserts it is clear this
must end, since "trade, not aid" is
slogan of hour. As means
of increasing world trade, Mr. Prentis recommends
thorough
statistical study of United States tariffs,
claiming without ade¬
quate
Page
Revamp Our Foreign Policy That Is Leading to World War "
!
By H. W. PRENTIS, JR.*
licHTtnsTfin
"
Articles and News
U.
1
_
Airlines
S.
gained
"Trade,
the hour.
in
___,
•
»
build
the
self-respect that
comes
from earning its own way
in the
Since
We have
of
aid
has
-
of
the'
trade"
world
constant threat.
a
these
very
continuing
Communism
to
breeds and flourishes
trade
where
main reasons
norance are
be
particularly
disease, and ig¬
the way of life. It can
poverty,
when
stemmed
taught how to build
for themselves.
when
in
It
can
is
directed
and
are
better life
be stopped
a
initiative
individual
motion
people
put
toward
The
United
States
is
the
Such
hauling
least
for
of
But before
let's
*An address
by Mr. Prentis at the 57th
Congress of American Industry,
sponsored by the National Association of
Manufacturers, New York City, Dec. 3,
of
a
,
of the
are—on
grown
last
15
Prospective
the
Public
/
on
schedules.
carefully
review
Utility
The
29
'
imports ' have
38
j
Continued
New York
*
•
on
page
3J
44
Not available this week.
|
Stock
*
■
The
COMMERCIAL
FINANCIAL
•
'
Weekly
CHRONICLE
;
Reg. U. S. Patent Office
•
B.
25 Park
DANA
Place,
*
j
COMPANY, Publishers
New York
7,
N.
Chicago
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CROW ELL, WEEDON & CO.
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I
LOS ANGELES, CALIFORNIA
Drapers'
WIITTAM
WILLIAM
TL
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DANA
a
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SEIBERT,
rv
U
Y.
Thursday, December
1
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E.
C.,
Eng-
4
Company
J
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COMPANY
FUNCTIONS
OF EVERY KIND
March 8
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President
11,
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London,
Reentered as second-class matter FebruaiY 25> 1942> ** the P°st office at Ne*
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Pr-eM.nt
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Gardens.
Copyright 1952 by William B. Dana
„
REctor 2-9570 to 9576
TELETYPE N. Y. 1-5
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and
HERBERT D. SEIBERT, Editor & Publisher
Exchange
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8.
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Countries, $52.00 per year.
Pan-American
Dominion
neo
1952
Other
rooms for 10 to 3000.
Wonderful values! 5min.from
downtown N.Y. Clark St. sta.
7th Ave. IRT sub. in hotel.
MA in 4-5000.
f
-
Every
Thursday
(general
news
and
ad*
SMLlSSi •£JZL12S*2J5S1
statistical issue—market quotation
plete
Private Wire to
36
'
—
Nashville
5
-
(Walter Whyte Says)
f-
•
!
:
Washington and You
ST., NEW YORK 4, N. Y.
Boston
•
2
:
they amounted to about $2 billion
TELEPHONE HAnover 24300
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'*SavIMG**
*
The State of Trade and Industry
Tomorrow's Markets
Spencer Trask & Co.
Albany
25
•_
Security I Like Best
WILLIAM
BROAD
2 41
Securities.^
.
25
26
Offerings
Securities Now in Registration
the
•'
Members
ho*>" wDf
Security Salesman's Corner_____
PREFERRED STOCKS
specialized in
•
42
Governments
Security
Published Twice
have
Exchange PL, N. Y. 5
;
5
Railroad Securities
.
almost fantastically in the
years.
Prior to the war
1952.
For many years we
40
Teletype NY 1-1825 & NY 1-1826,
"
undertake any such
States
27
Our,.Reporter's Report
Our Reporter
'
United
HA 2-0270
;
a
tariff
our
we
"
8
______
Observations—A. Wilfred May_
compelling
complete over^
—
Singer, Bean
& MACKIE, Inc.
years.
Growth of U. S. Imports
only
Annual
one
Notes
News About Banks and Bankers....
wny our taxes are so
statistics
at
argument
free country with enough strength
*
NSTA
<
$38
expensive way of
enjoy a favorable
balance, and it is
surface
move
war
balance
<
postwar
facts.
self-emancipation.
(■
high.
last
totaled
"favorable
•
for
is
This
the
That just about equals our
so-called
special obligation in
a
areas
Where the spread of communism
a
end
billion.
backward
is
the
foreign
our
world.
i "<
3
S2£>«iraKT£2 XT?
city news, etc.).
Other
Offices:
Chicago 3, 111.
135
South
clearl118''
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Salle
St.,
(Telephone: 8Tate 2-06131*
Other
Publications
MOTEL
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(Foreign postage extra.)
Notei-Onaccount of th°
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oe made In New York funds.
st.George
Clark St.,
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1
C. R. Maison, Bqt. Mgc.
BlNG, Inc.,
Management"
The Commercial and Financial Chronicle...
4
and
think
today's
prompted
First
review.
and
research
brisk
the
was
cam¬
had
American
debt
in
gone
in
$400
credit
was
Personal Loan
and
usually loan money to individuals
in much smaller amounts, started
highs;
i
g e r
stag-
a
$23
n g
billion
by
Christmas.
T h
t's
a
of
lot
a
for
money
Ira U. Cobleigh
other states followed,
mort¬
day,
gaged, and a lot of buying power
locked in for several months to
What's
come.
Well,
credit
52%
was
enterprises
less, down to as little as
"easy monthly
payments" — cars, televisions,
washing machines, etc. (where the
payments
comes in has always baffled me).
23% was in store charge accounts,
V2%
on
things
on
record
And these are
2/3rds of the
divided almost equally
supplying
dough
was
between
t':e
billion, the burden
the four
Of
over
finance
consumer
This is democracy
and
banks
commercial
companies.
could
nies
20%
date
the
out
with
note
the
or
finance
family
of
either
use
of,
companies.
seven
them
will
this
the
con¬
One
sign
year,
a
the
borrowing will be around
average
Carolina, opened the first instal¬
$250, and the note, if not renewed,
will
get paid off in about
15
months.
Typical loan payments,
principal and interest, will not
ment
personal loan department in
commercial bank; and on May
4, 1928, the National City Bank of
N. Y. launched the first special¬
any
or
burying a sad sack
hiring a lawyer.
underestimate
sumer
emer¬
like
necessity for,
could clutter up the bank's
ledgers with checks drawn at ten
cents a copy. Then in 1917, the
Bank
of Morehead
City, North
bank
the time to
debts; 18% for doctor,
hospital bills; 22% for
travel, repairs and clothing; and
Don't
you
ized
of
licensed
6,000
over
personal loan department of
major bank. The fantastic
growth in this field is now
$20
make
loans
nice
last
extras
big
the
along
NYSE
at
as
has
Finance
Household
done
the
on
loan
parade
which
Loan
earn
common
is
(3/1/52)
on its
shares. It op¬
652 small loan
States
and
in
offices
61
Canada.
Financial position is excellent and
that
by the fact
is indicated
progress
volume, number and size of
loans have shown
a
steady upward
curve.
Profitable earnings results
go
back
way
have
dends
here
and divi¬
paid uninter¬
1914;
to
been
years.
convertible
There's also a
preferred sell¬
looked into these se¬
Investment
Counsel, Inc.
discharged.
admit that
ers
workers
good
continuing
investment
of
a
states.
offices
to 272 offices
up
(This
includes
Domestic
of
55
Finance
67.9%
of
the
outstanding
shares.)
individuals, corporations,
pen¬
Company attitude respecting its
personnel is forward-looking, the
policy being to develop managers
®
and executives from
within, and to
provide favorable employee bene¬
fits
such
creased.
5
LINE
East 44th
INVESTMENT
Street
•
New
SURVEY
York
BUILDING
as
pension
and
other
have
ing
17, N. Y.
to
stage
become
and
profit-
In
not
ucts
have
tion
con¬
long
as
t h
a s
Gov-
e
ernment's
hold
Military
Industry will
remain, to a
limited extent,
to
certainly
and
come,
many
years
will
not
be stopped all at once.
tell
is
gram
a
that
the
armament
being carried
now
wasteful
very
pro¬
on
due
manner
in
to
the haste. When this rush is over,
expenses
materially
be
can
cut.
Therefore, barring World War III,
many
workers now directly, or
indirectly engaged in armament
production will be discharged.
The
above
labor
explains why
unions
raises.
get
ment is
have
been
the
In
end,
many
able
to
employ¬
subject to the old Law of
Supply and Demand. Unions can
temporarily take advantage of this
law and push up wages, but ulti¬
mately wages
down
come
unemployment
or
Next
will
Government's
to
80%
31,
then
The
to
the
offset
taking
from
52%
review
the
entire
cor¬
ex¬
tight employment situation,
high
wages,
has forced manu¬
facturers to order
ing
devices.
not
be
they
new
Most
delivered
are
labor-sav¬
these
of
until
1953;
delivered
present
Also,
will
but
will not be
during the recent
lush years, much money
wasted
in
connection
has been
with
secre¬
taries, travel, hotel bills, telephone
calls, relatives, etc. Cutting down
unemployment.
fact always of importance to
details of
eign competition. Washington
a
prospectus dated
July 9, 1952, which lists the
seven
spread of communism—our
ernment
to
must
supply
years,
foreign manufacturers to make
is
their
only
possible
U.
like
much
S.
this
been
and
higher
customer.
manufacturers
will
ask
for
duties
import
on
these foreign products.
will
ton
Washing¬
fight against higher im¬
port duties, believing such would
result
in
counter
World
move,
War
III.
As
a
manufacturers
our
will strive to reduce their produc¬
tion
costs. This may
duced
employment
Surely
wages.
result in
these
re¬
reduced
or
rapidly
in¬
creasing foreign imports, plus do¬
mestic
keen
competition, will result in
price-cutting, forcing lower
labor costs and
consolidations.
The National Retail Dry Goods
appoint
a
partment
facturers,
has
already asked its
ize
committee showing de¬
stores,
and
how they
also
manu¬
cut
can
ex¬
These big merchants x*eal-
penses.
that the nation's
defense
will
be
build-up for
reached
1953, resulting in
late
in
possible fall¬
a
ing off of retail trade. They want
to
plan
be
how
now
reduced
expenses
can
to
this
safely
meet
coming change.
This
this
that the readers;#*
means
column
should
or
her
last
in
may
the
production capacity of most con¬
has
Gov¬
machinery
goods to send to the U. S., which
who
work
considerably
in¬
his
ting
now
harder
to
have
jobs,
hold
his
job. The old idea of "the
should
not
be
the
first
cut"
followed.
The
effi¬
be
loyalty
and
individual
industry
will be
Now
each reader to
During the past few
cerns
au¬
thorities state that—to prevent the
considered.
Severe Competition Ahead
capitalization,
manufacturers'
our
obliged to meet for¬
many
employees
needed.
will
President, Mr. George Hanson, to
penses.
with
year,
Association
of their profits. Their at¬
and
alone
cause
Warning to Readers
far, employers have taken
action
this
also be
occurs.
Unemployment
radical
replace
else
Machinery May Cause
Thus
from
don't
people, however, further
me
tion
Naturally,
Haste Makes Waste
These
to
such things.
Armament In-
for
such prod¬
order
ex-
that
feel
ers
in
—
products—begun their
manufacture. Hence, the competi¬
Fur-
up.
the
industry
many concerns which
before made
be very severe; especially as most
families have already purchased
thermore,
many employ¬
new
manufactur¬
production output.
res
military
pen d i tu
a
cleaners
appliances
outmoded
will
tinue
Roger W. Babson
their
to
addition,
ciency,
investors in any enterprise.
may
vacuum
and
have
each
large stockhold¬
this
household
added
space
these expenditures will cause fur¬
are
please refer to
bea
will
Companies making wash¬
machines,
ther
For
borrowing
crave
warns
ing
sharing. The principal officers and
ers, a
VALUE
families
stockholders.
directors here
THE
the
they'll
maybe
and this situa¬
when
.
profit sharing funds, trusts and
from
uate
are now scarce
situation, after which many
porations will radically cut
owns
9,000,000
thus, in 1952. So let's give
they grad¬
Says high taxes and labor-saving machinery may
Sees more foreign competition for our
policy of progressive
American, either by
acquisition, or the opening of new
Vice President
the
manufacturers.
Company
Corporation, wherein American
Hanning, Vice President
is
unemployment.
titude has been to wait until Dec.
loan
office
of them). Arrarigloans is not lonesome
military expenditures,
(171,761), to borrowers
earning between $3,001 and $3,600
20
loan
one
engaged in armament production will be
many now
no
in
Sweetser, Vice President
institutions.
change and
through a
subsidiaries, ranks
among personal
year.
in
Mr. Babson, in pointing out current tight labor situation arises
operating
Illinois,
number
(or
ing small
work, for
High Taxes and Labor Saving
common
sion and
a
appears
offices in 430 cities in the United
offices, has built
counsel for
you
from heavy and wasteful
about $3.65
likely to
3,428,753
erated
need
By ROGER W. BABSON
a
pretty good job of satisfying both
customers and stockholders.
Beneficial
real
type of lending.
gets a little short
Post-Election Employment Outlook
(plus
preferreds which you. can buy
little over 4%.
By
expansion,
Bernhard, President
and
give
the lower bracket stage,
at
route, and
to yield you a
a
Specialized
will
number
Planning Service
William Rand, Assistant
three
pretty good idea of consumer fi¬
business,
$2.40
paying
48,
Second
of
ap¬
them credit. And when
finance en¬
terprises in America, having made
588,512 loans in 1951, the largest
the incorporation of
A.
These
Vital Function
a
extras). There are also two series
of
on
Quite
car.
is
personal
a
borrow
Serves
2,767,597 common shares out¬
standing and now selling on the
of
announces
Harold
24% paying $1.60.
its
third
Frank Eliot
sells
It
common.
earned $4.25 on each of
year
American
Arnold
answer
Company
today around
profitable business, too. House¬
hold has paid dividends without
a
miss since 1917 including some
curities.
Value Line Investor's
to
to American Investment
total of personal
loans
last
year,
and aggregate
loans of almost $527 million. Yes,
small
just
assignment
motor
America for this
considerable investment substance
1,871,915
ficial if you
Investment
a
given
complicated; but the earn¬ Almost everyone
ings, management, record of sub- once in a while, and could use a
stained growth, and 21 years of fast advance for a tax bill, or per¬
dividends,
without hiatus, give haps a Christmas purchase. A trip
largest
a
COMPANY, INC.
is
in this field with
ing around 105. It might be bene¬
Personal
there
borrow -money in the
U. S. and Canada; it made a fab¬
$3.25
its
parently
The financial set up
can
ulous
is
by
or
little
"em¬
During my last trip through
ployed assets" in 1951 of $316 mil¬
the Central West, I have system¬
lion, $199 million being supplied
atically inquired about the em¬
by borrowed capital. Household
ployment situation. Most employ¬
offers altogether 573 offices where
you
credit
or
cause
Household Finance is the
company
where
furniture
provide
leverage for 1,992,806 shares of
common.
and in that order.
through the
ARNOLD BERNHARD &
debentures,
which
shares
we
month, and will, in ruptedly since 1929. Present rate
of $2.10 suggests a yield of about
any event, average less than 7%
of monthly income. People from 5.70%. In addition to cash, some
stock dividends have been paid
every walk of life are customers;
exceed
the
and
signature
preference
nance
companies in the U. S.,
of course,
and,
notes
series of preferred and
"Big Three"
are
small loan
or
relative
sick, than
baby was
consoli¬
old
dentist
commercial bank and borrow $300
because
1%% of the
and
gencies,
into a
no more go
would
the balance of the time for
applied, not to
politics, but to economics. Why in
1910 you
default
experience of recent
years is below 1%. Part of this
loan quality is due to good screen¬
ing, part to efficient servicing,
but principally because John Doe
is, at heart, a very honest fellow.
He goes to personal loan compa¬
today.
of
good.
the
Over 20
amazingly
total,
going to kick around
we're
There
of
three
and
on
are,
probably not exceed
roughly 18% (about $4 bil¬
lion) was for personal loans,
where for the most part, nothing
what
loans
payment
years,
ance,
bought.
$300.
above
amount
small
These
again to buy goods; 7% was in
single payment loans, and the bal¬
was
the
Payment Record Good
"ease" of these monthly
new
to
borrowed
or
buy
$300
from
of
sum, $5,000 in California. Interest rates
run
from 3 to 3¥2% a month on
cozy
money
$100
to
loans
maximum
permitted
are
was
Of that
billion.
$21.7
about
legalized
companies. Variously,
loan
these
1952, U. S. $500, in most states, with top
actually limits of $1,500 in Nevada and
Sept. 30,
on
consumer
that, to¬
so
have
all,
in
33,
small
anyway?
it all for,
fair
at
funds
lot of future
income
provide necessary
rates
multiplied,
and the need to
people to owe,
a
repay¬
asset—
time
couldn't pos¬
as
a
result of a study showing sibly cover them all here. Most
their need, by the Russell Sage are
privately
owned,
with
no
Foundation, in 1907. This report shares on the market; so we'll
led to the passage of "Small Loan confine ourselves to the Big Three
Laws," first in Massachusetts —Household Finance, Beneficial
(1911). Later, as years passed by, Loan, and American Investment,
might
reach
prompt
life
a
The
which
Personal loan companies,
soaring to alltime
builds
Companies
that consumer
that
realize
they
ment
good personal credit.
1951;
The
This finance company way,
will pay off at so much a
month, and the average interest
cost will probably be about 2% a
month. The key to this whole deal
is that the people borrow
only
when
they really need it, and
they
with National City still
perhaps the largest, and hundreds
of banks throughout the country
second
and
they
back!
giving out money on the strength
of good signature, an honest face,
and a steady job.
argument that the average
paign
on
smart. If they did that,
figure they'd never pay it
they're
history,
month
Two headlines of the last
be more likely, say,
their insurance, but
they'd
borrow
to
time of year
a
afforded. You'd
tape, and privacy
"Expanding Your Income"
when everyone needs money, a look-in on
personal finance companies may prove interesting and perhaps
profitable.
At
and
they go to the personal fi¬
companies because of speed
funds' receipt, minimum red
of
By IRA V. COBLEIGH
Author of
series
nance
Let's Give Them Credit
a
Thursday, December 11, 1952
(2220)
so
is
the
of
car^fuLy
time
for
qualify to hold
position when the r-ice- "'tprogram starts.
Volume 176
Number 5176
.
.
.
The Commercial and Financial Chronicle
(2221)
Continued
Steel
The
The
Carloadings
Retail
I Like Best
Index
Price
Industry
Business
Failures
pected to be developed from time
J
Due to the
of the
observance
Thanksgiving holiday by many
plants, over-all industrial output in the period ended on Wednes¬
day of last week showed some slight recession. It was, notwith¬
standing this decline, close to the highest point attained since the
close of World War II and about 8% below the all-time high level
reached during that conflict.
showing
claims are
slight increase in recent weeks, they held close to the
a
the
.lowest level
Steel
in
fact
seven
net
unemployment
that
insurance
years.
production this
million
93.3
year
is expected to total
close to
very
of
tons
ingots, states "The Iron Age," national
metalworking weekly. This will be the third highest year in the
history of the industry, topped only by 1951 (105.2 million net
Had it not been for loss of
duction due to strikes last
19 million tons of pro¬
than
more
output this year would have
wide margin. "The Iron Age" estimates
summer,
all-time record by a
an
the industry could have produced as much as 112.3 million tons of
steel this year if there had been no shutdowns because of labor
trouble.
Production
losses
attributed
to
total
strikes
46
million
steel
for
outlook
next
is promising for both con¬
sumers and producers.
Steel industry people think they can pro¬
duce as much as 118.8 million net tons of ingots in 1953—if needed.
Military and atomic energy uses, as now planned, will take no
more
year
than 14 million tons. This would leave
for
tons
other
million tons
purposes—one-third
more
as
much
than
104 million
as
estimated
the
which will have been available for nondefense
80
uses
forecasting their production potential for next year steel¬
makers are counting heavily on their expansion programs which
are fast reaching a climax.
Capacity at the beginning of 1953 will
be close to 116 million net tons, a gain of well over 7 million tons
in a year. Early next year total capacity will spurt close to the
industry's goal of 120 million tons, according to this trade maga¬
zine.
demand to reach
that they expect
consumer
pressure to diminish somewhat, and they wouldn't be
surprised if the ingot rate were to decline moderately. But they
are nevertheless looking forward to a good year, notes this trade
about
generally
expect
supply
of
middle
the
year.
the
and
After
authority.
•
Reports from major steel consuming centers this week indicate
that consumers are still on the prowl for maximum possible ton¬
and early delivery
on
of an end to controls, seasonal drop-off in oil well
drilling, and supplemental allotments are combining to encourage
oil country people to thread out inventories and try to get away
costs, hope
from conversion.
At least one converter is expecting demand from
his oil customers to
But this doesn't
be off 50%
spell the end of steel conversion for oil coun¬
try goods. If demand for petroleum products meets the expecta¬
of Petroleum Administration for Defense (many doubt it
will) and their future well drilling goals are met, conversion will
to
out integrated
help pad
pipe capacity,
concludes "The
Age."
Automotive
production in the United States last week rose
about 11% above the preceding period week when there was one
the Thanksgiving holiday.
less work day because of
"Ward's Automotive Reports" stated that U. S.
plants
assem¬
week, compared with 86,403 in the pre¬
bled 96,164 cars the past
ceding week.
ample
plants,
having
two
some
million feet of floor space, are lo¬
cated in the United States; and
through
subsidiaries, plants are
operating in Canada and in Eu¬
That there is
large
and profitable equity in these sub¬
sidiaries
is
shown
by the fact
rope.
Although truck makers are finishing out the year with a fast
production, only 1,210,000 trucks are expected for this year
compared with 1,412,000 in record year 1951.
rate of
individuals continued to climb in October,
This was $2,000,000,000 above September pace and $14,000,000,000 higher than in
October, 1951. Wages and salaries in private industry set a yearly
gait of -$154,000,000,000 up $1,500,000,000 from the preceding
reaching
month.
a
record annual rate of $276,000,000,000.
a
very
expenditures
in
the first
months this
11
year
the United States
Commerce and Labor Departments announced. The increase made
it practically certain that 1952 will set a new record for money
to $29,800,000,000, up
5% from
a year ago,
The two Federal agencies have predicted the
spent on building.
May?
HOUSE, HARRIMAN, New York—Equally interest¬
ing and important as the substantive conclusions, were the psycho¬
logical reactions to inflation revealed at the American Assembly on
inflation
the Harriman campus of Columbia University over the
on
weekend.
For the changes in attitude and re¬
expectations of the cross-section of
economists, businessmen, professional men and
women, journalists, labor union officials, and
round-tabling
housewives,
in
the
Ramapo
Hills' Arden House under the aegis of General
Eisenhower,
typify
significant
characteristic
esses
of
throughout
thinking
mental
proc¬
discussion
much
economics
and
and
finance.
The practice of suiting economic
analysis,
interpretation
sheet
relevance to the stock market in this column of
approximately $12,500,000. Dur¬
ing the five-year period 1947-
manifested
1951
wow-ing last May. In the document, A Review
A. Wilfred May
of Developments Bearing on Inflation Since
May, 1952, which was prepared by Edward H.
Collins as the basis of discussion for this follow-up meeting, it is
frankly stated: "It would be highly unrealistic to pretend there
had been no change in the public attitude toward the inflation
question. Perhaps that change can be summarized in the fol¬
lowing way:
while
the
value of the
sub¬
as of Dec. 31, 1951 at $3,105,352, the net assets were reported
as
inclusive, Carborundum Co.
received
$8 million
over
investments
income
as
and
foreign
subsidiaries.
Like
"old
line"
panies, the management has
a period of
years been very
many
com¬
over
con¬
servative in depreciating plant fa¬
cilities.
While from 1947 to 1951
capital expenditures amounted to
$23,688,000, the balance sheet
31, 1951 carried net prop¬
erties at only $23,047,113 after de¬
preciation reserves of $16,231,000.
So it is quite obvious that not
only is there a large equity for
Dec.
Carborundum
balance
common
beyond the
sheet
valuation, but the
earnings permit develop¬
of its new products without
ment
news
of
the
Continued
on
page
34
ago, has likewise been typically
here, particularly in the alteration
group's reaction since its initial pow-
"Last May, if you were in the habit of
Nineteen fifty-one sales of
218,000
net
was
$4.24
after
and
come
to
To keep
$1.40 is being paid
abreast of the demand
for its abrasive
is
business, the
bonded
is
interests
the
with
eardrums
your
shall
(or can)
of
of
in
Carbo¬
Robinson,
General
Capitalization of the
At
$1.40
paying
share,
a
of
Six months
aftermath of
a
to
a
dividend of
4.5%.
a
Attrac¬
potentials and the
of
increased
future
growth
possibility
dividends
paying
available
are
without
sizable premium.
a
meeting has
prospective post-arming peak
in-flation
was on
the chronic
as
Now—de-flation is being stressed as the after¬
Of
course
there have been
some
relevant events—as the Re¬
tionary elements in the situation has increased.
Factors No Surprise
Deflationary
But it must be realized that in the first place
not
constitute
winner
and
ever
a
surprise.
Eisenhower
was
these events did
regarded
as
a
likely
since his announcement of availability last February,
stimulation
is
de-flation
to
Administration's
neither
is
there
arming peak.
market
Cushman McGee will
by the
offset
the
from
landslide result's
infiltration
anything
Fair
by
unex¬
revelations of the new
Deal-ish
unexpected
about
Dewey-ism.
the
In the second place, as has occurred in the stock
intervening
rationalize
an
fn-flationary trend had
commodity price action and other indices
casting
on
of
Gee has
number
of
effective inflation, the attitude
changes we are citing are concerned
Jan. 1
partner in R. W. Press¬
been with the firm for
of
or
past, inflation course.
contradictory
follow
predictions;
the preceding
with the future, not the pres¬
Similar premises are the basis for
and
again
analysis
and
forecasting
action of "the market"!
a
We take
years.
pleasure in announcing that
ROBERT E. TOOLAN
A
Complete Set of "Chronicles"
from
1925
to 1938 in A-l
Irving J. Rice Go.
Condition
has become associated with us
New Wire Connections
Available
This set
at
a
Broker's
Office
in
New
of "Commercial and Financial
York
City.
Chronicles",
ST.
Rice
Bank
canvas
bound,
is
a
terrific
buy.
Phone
or
write
PAUL,
&
Bonner &
nections
Irving
—
J.
to
New
is
now
York
on
City,
De¬
troit, Chicago, St. Louis, Denver,
and
Los
Angeles.
Wainwright, Ramsey & Lancaster
First National
the
Gregory-Dempsey-Tegsystem, with direct con¬
Building,
eler wire
Edwin L. Beck, REctor 2-9570, 25 Park Place, N.Y. 7.
Minn.
Company,
been
importantly must it be remembered that in the fore¬
the future course
prich & Co., 48 Wall Street, New
York City, members of the New
York Stock Exchange.
Mr. Mc¬
"FOR SALE"
And
prospect of an
conversely, these same factors would not have prevented
"economic interpretation" to
the
subsequent
already running in that direction instead of "stabilization."
Pressprich to
a
weekend's
this
publican election victory, and industry's progress along the arming
timetable—to warrant the conclusion that the weight of the defla¬
ent
become
to follow the
ago—the emphasis
war.
And most
R, W,
of "Climate"
at
math of armaments.
pectedness
the stock offers
close
Change
discussion
stock outstand¬
common
present prices, around $32
return
tive
company
of Dec. 31,'1951.
share, and
the
business recession
Brehon
is
modest, consisting of $11,500,000
long-term
debt
and
1,528,095
as
was
(with 1953 corresponding to 1946. but forgetting how the experts'
predictions went awry in that early period), not only has the
general emphasis of the Assembly as a whole, but also some of its
constituent groups, changed from "inflationary" to "deflation¬
ary" anticipations between May and December. This is not to
imply that there has been a complete shift from black to white,
but rather a distinct change of emphasis.
Co.
shares of
of
course
repetitiously
fully conformed to this prefatory document's depiction of the re¬
versal of the inflation "climate." Stemming from widespread fear
President of Koppers
Somervell,
most
do about inflation?'."
we
Drastic
The
the
reflected
directors
and'
to
on
abrasives.
rundum: Mr. Clinton F.
President
con¬
plant
new
association
close
of
two
plant and is
another
manufacture
Mellon
com¬
radio in
your
the question, 'What
Recently, on the other
hand, this tacit acceptance of inflation as the enemy at the gate
has undergone a sort of stage-by-stage transformation. Instead of
'What can we do about inflation?', the question began to be
asked, 'How long will the rearmament boom last?'; then, 'What lies
ahead for the country—inflation cr deflation?' and more, lately, in
some cases, 'What can we do to head off deflation?'."
ing
doubling the capacity
now
of its Vancouver
The
Taxes,
$6,474,692 equal to
Against this a mod¬
est dividend of
pany
Profits
Excess
share.
a
all-time high and
all Federal In¬
an
profit,
$72,-
tuning
forums, debates, and other discussion of public issues, you would
soon become aware that one of the two or three questions assail¬
the
necessity to pass through that
expansion period needed by most
"growth companies."
and
weeks
two
Half this rise centered in durable goods manufacturing.
Construction
You Did in
forecasting to the
prior movement of prices, as was noted in its
that
ing
Income payments to
as
ARDEN
versals of
Six
structing
in the fourth quarter.
tion
rose
old
an
is
815.
amounted
nearly all steel items.
Though demand for oil country goods remains intense at mill
level, conversion steel demand lor these products is easing. High
Iron
is
there
sizable
Steelmakers
have
Co.
and
working capital available to de¬
velop new products. On Dec. 31,
1951 working capital was $24,427,-
on
In
nage
Carborundum
company
some
during 1952, declares this trade weekly.
balance
Do You Love Inflation in December
through research.
from its
tons since World War II.
The
to time
sidiaries is carried in the balance
tons) and 1950 (96.8 million tons).
set
By A. WILFRED MAY
Auto Production
and
Despite
Observations...
Security
Trade
Commodity Price Index
Food
2
page
Production
Electric Output
State of Trade
jrom
5
CONSULTANTS ON
70
PINE
MUNICIPAL FINANCE
NEW
STREET
Telephone WHitehall
4-3540
YORK
5,
N. Y.
6
The Commercial and Financial Chronicle
(2222)
when
the country.
The most recent rec¬
shows that the
median for municipalities of:
ord
Municipal Bonds foi
100.000-250,000-
By AUSTIN JENNER*
Mr. Jenner, in stressing
First National Bank of Chicago
role of municipal bonds
Revenue
of
features
scribes
and
that the per capita
as
tional
think
and
about
do
them,
faults
or
municipal
market
looks
what is ahead. Most
within
cured
were
terest
a
paid
was
bonds
are
a
unpaid
the
on
principal and interest. Despite this
of my
remarks will be concerned
with general obligation bonds, but
I
will
touch
on
the subject of
revenue
bonds, later on in this
excellent
municipals
they
while
of
Municipals
marketable
are
don't have
they
We,
State
of
in
has
know,
almostin
been
long
as
existence.
it
as
As
you
deal in them actively in
we
ing
Bond Department and we also
our
forced to borrow heavily
are
population.
community is
Stability
aspects
nicipals,
municipal investments.
tained
a
always have main¬
substantial portion of our
investment
in
account
of securities.
this
class
industries?
the
lished?
At the present time,
consider
we
they
What
in
How
class
employ?
the
of
of the important
one
have been steady investors in mu¬
and
expand¬
an
bonds,
place
the
of
in
available
which
tempts
States.
It
our
to
us
average
municipal
our
34
on
than
greater
a
amount
invest-
Municipalto
seems
me
our
long
of
How
own
What
are
estab¬
people
do
home
residential
many
just about half of our investment owners? How good a
account, other than Governments, community is it? What is the trend
is in
municipals maturing from of the population? How have tax
one to ten years.
We aim to stay collections been over the years?
within
10
this
materially
for
of
feature
be
continue to
of
geographical diversification
municipalities ^ just as advis-
able
active
diversification in any other
as
investment.
of
form
It
may
re-
years
giving
are
than
return
us
purchased
in
Railroad
are,
the
rities
often
most
eration
return
in
the
market
every
to
year
re¬
place maturing bonds. As a result,
purchase the longer maturities,
there
in
ever
in
the
capita
been
a
debt?
default?
making
an
Has
All of
investment
municipality.
we
within
the
get
a
we
could
10-year range,
better
rate
of
so
than
over
short
rolling
bonds each year. This
maintains about the
and
return
by
also
process
same
average
maturity.
Many cities have overlapping
taxing bodies, such as school dis¬
tricts, park districts, sanitary dis¬
tricts, etc. In considering the debt
ratio
of
overlapping
cluded
Investment
Characteristics
municipality,
any
to
debt
arrive
should
at
We regard 10%
including all overlapping debt as
yard stick, and when the total
a
As
feel
:m
medium of
a
that
investment,
municipal
desirable
any
bonds
we
have
characteristics:
is
the
fact
that
they
bank
investment;
excellent
payment
years.
*An
tbe
address
First
long
a
During
by
prompt
period
of
of
Mr.
Bank
National
is
depression
the
of
there
of
record
over
Conference
The
then
Jenner
before
Correspondents
Bank
of
and
within
period.
same
as
deciding whether
also
use
as
a
guide
10-year
a
in
maturity.
compare
both
with
AA
classification.
This
median
is
a
figure compiled by Dun & Bradstreet,
of
an
average
representative
same
an
as
of
cities
population bracket.
actual
average
of all
a
group
in
the
Railroad
1 Year...
3 Years..
5 Years.
1.03'
1.25
1.30
1.30
1.40
2.85
1.37
1.55
.'3.10
1.49
_
10 Years-
each
higher
maturity
net
return
from
is
the
a
mu¬
Diversification
In
making
our
total
investments
in
one
issuer
or
section
of
in
of
us
something
and
we
feel
to
favor
of
the
sive.
You
prices,
know most about,
more
secure
in
cities
nicipalities close to
us.
bonds
over
this
the
saw
investments
ing bonds of cities and other
school or a new playground or
evei] a .new highway, and the use
the
community credit to
private industry.
may
high
short
buy¬
recall
point
resulting
supply
of
in
payable from
that
1946
rapidly
taxes and the
bonds.
In
April,
1946. the Dow Jones Index showed
municipals
20-year
mu¬
at
New Issues
volume,
some in-
fluctuations
Jones
Dow
1.37%
a
yield.
With
increased
prices receded and with
Very often
the
find
we
average
for
20-
bonds in November, 1952, at
2.44% yield. The current year
year
a
particularly the last
Federal Land Banks
instances,
there
has
six
months
declining market, which
seen a
which
where
99%% and accrued
interest
are
to
Banks and
are
are
needed
their
high
Due May 1,1958
volume
be
31
December 9. 1952
Nassau Street, New York
5, N. Y.
spite
has
absorbed
price
growing
created
buyers
by
with-
States
debt
limita-
for
necessary
bonds
revenue
It
of services
has
been
our
bonds,
revenue
in
the
appraising
soundness
bonds,
revenue
of
the
project
and
and
management
supervision are
prime importance. The type of
project—whether its service is es-'
0f
sential,
water
as
jn the nature of
should
be
should
also
electricity, or
luxury, such as
golf course—'
or
a
swimming pool
a
or
considered.
be
raised
Questions,
to
as
political the management
how
may
be
ancj whether the
project is subject
to the jurisdiction of a regulatory
body that might raise
doubt
a
as
has
many
other
local
im-
provements, and there is insistent
issuing municipality being
The
fulfill
and
proach,
of
general
obli¬
bonds
thus
revenue
somewhat different ap-
a
as
must b8
main-'
covenants to
appraisal
gation
requires
every
judged
revenue
upon
regardless
of
its
bond
own mer-
the
general
credit of the issuing community.
shortages in school facili-
and
the
jts?
population
will
You
and
about
more
the
probably
pressure
hear
revenue
increases
issues
for
_
more
as
new
these conditions be highways and
new
bridges and
speedily. New bond is- other public facilities susceptible
sues are being proposed constantly
to tolls.
In addition to the cornto meet the requirements of grow- ments made
above, it should prob¬
ing
communities,
and
there
is ably be here noted that there is a
demand
that
remedied
still
indication that 1953 will
greater volume of
Agent,
;
$ 10
new
see
is-
restriction
imposed
on
National
banks in the purchase of any one
forecasts go as high as
issue of this type of bond and that
billions, and if this material-
frequently Examiners require de-
sues—some
izes, it appears that long-term
Macdonald G. Newcomb, Fiscal Agent
some
expansion
citizens.
be
to
policy to confine our municipai investments to general obliga-
to
concessions.
a
Nation-wide Selling Group of recognized dealers in securities,
much to
In
year.
this
municipal
The
are
eligible for investment by savings banks under the statutes of a
majority of the
including New York and Massachusetts. The Bonds are also
eligible for the investment
1of trust funds under the statutes of various Stares
a
last
taxes,
too
compared
year,
out
joint and several obligations of the twelve Federal Land
issued under the authority of the Federal Farm Loan Act as
amended.
with the assistance of
a
ordinary
99%% and accrued interest
Land Banks through their Fiscal
to
from
is
rates.
been
the secured
offering is made by the twelve Federal
and
is-
0Wn
tain
billion
every
This
in
low, it is
to
of
The Bonds
States,
facilities
service
resort
abie
ties
The Bonds
revenue
amply protected by
debt
Also,
cities
to
justified
constitutional
tions
for
is
sound
the
derived.
to
$3,100,000,000,
$131,000,000
Dated January 2, 1953
revenue
of
the
issues have been coming into
market
at
a
rate
of
about
the
2%% Bonds
Due November 1, 1954
of
are
earnings
be attributed to the fact that
$5
2J4% Bonds
source
many
may
Consolidated Federal Farm Loan Bonds
January 2, 1953
a
this
are
that
sues
new
Dated
Bonds
other than general taxes. In many
municipal
from
income
termediate
$100,500,000
pro¬
new
a
approximately $10 V2 bilperiod, which makes tion bonds with very few excepfigure tions, although we recognize that
$27 billions still more impres- there
are
many
well protected
in
mounting
we
between
the increase to the present
country. It is the normal tendency
of all
and
programs,
maturing
out
the
carry
of
lion
endeavor to avoid
we
issues
new
to
time,, volume has gone up
each year,
to reach the present
figUre of over $27 billion. Since
1946,
retirement of outstanding
bonds through maturities is estimated at a rate between $1V2 billion and $2 billion annually, or a
nicipals.
municipals,
of
labor
that
1.65
there
difference
the desirability of financing a new
Revenue
issues brought down the total
outstanding to $15 V2 billion. Since
1.10%
2.60
_
considerable
of
new
Municipals
2.70
_
_
8 Years..
In
52'v
2.15%
__
of
excess
After
Return
Maturity
volume
and
improvement
Equipments
Taxable
the
materials
It is not
in
home, and
their taxes
decreased, due to unavailability of
concentration in the obligations of
population
at
pay
neighbors.
your own
years,
ratings:
any
same
to
municipal bond is issued has al¬
wa>;s been a matter of prime importance, not only to the buyer,
but to the issuer, and there is
Volume of Municipals
The
palities
the
likely
wh\ch could undermine municipal
credl>. T,heu Purpose for which a
During the past six years, the
The
foregoing comments have
volume of municipal financing has to
do
with
general
obligation
increased steadily.
In 1940 there bonds.
There is a growing tenwere approximately $20 billion in
dency on the part of municipalibonds outstanding—the high point ties to finance
their requirements
up to that time.
During the war whenever
possible
with
bonds
the net
median per capita debt of munici¬
of
those
from
as
doubt that this practice serves an
essential municipal function, and
share the concern of those who
^eaf ^ rnight easily lead to abuses
the
recent
on
we
the
of
been
a}s fhus obtained. There is some
mote
offerings of rail¬
road equipments and municipals—
willing to invest in the bonds.
We
Chicago,
Chicago, 111., December 2, 1952.
just
special attention to other ele¬
ments before
are
available in maturities suitable for
of
very
are
First
the
debt exceeds that amount, we give
ferent
net
maturities, although
some
industrial, rail¬
utility bonds available
are
road
in¬
of the tax burden.
of
Municipals
there
appraisal
an
have
you have found them to be
progressive, sound commu¬
nities, with people not much dif-
bank range of
the
be
happen
both
or
one
you
good,
securities
available
following figures
thus
we are
Per
in
If
there,
obligations
in general, the taxable secu¬
these matters should have consid¬
and
even,
Debt
uation?
been
cities.
equipment
proximately
debt?
better
a
other
any
What is the
record of payment of
ratio to assessed val¬
those
munici¬
our
have
to
great
a
deal of interest unless you
pals purchased within the past 10
and, with a few
minor exceptions, have not gone
beyond that period. We also try
to keep our maturity schedule ap¬
years
Boise, Idaho, don't excite
lower
investment
our
that
of leasing such plants to
private corporations or individua^s' the bonds being payable
solely or primarily from the rent-
municipals should
important. A
showed
account
or
express
purpose
very
review
recent
manufacturing
in
the foreseeable future,
taxes over
of
industrial plants with the
that
and
volume and close markets of Gov¬
prospect
During the past year considerable attention has been directed
to still another form of municipal
acquisition
yield
purchased
to furnish facilities for
bank
ments in them.
However, we do
diversify, and a recent check of
our holdings showed
that we had
local
record,
be
not
in the
reflected
are
of maturities, and it is not
unlikely that the next year may
range
afford further opportunities for
attractive purchases of municipals
bonds of in the 10-year range,
municipals ernments, there is enough interest quire more time and study to seblindly, in tax exemption to assure a good lect bonds of relatively distant
especially in a period such as the secondary market. The tax-exempt municipalities, but we believe it
present, when many new munici¬ feature has, of course, appeal for is the sound program to follow. If
talk..
palities
are
springing
up
and all of us and, unless we can per¬ you live in Pennsylvania or New
Our bank has been interested in others are growing so rapidly that suade ourselves that there is
good York, bonds of Greeley, Colo., or
should
bonds
ourselves,
for this is perhaps the
reason
favorable
ities
Marketability
the
for
bonds of States and/or
the
legal opinion
Municipals
Iowa
financing. This is the use of municipal credit and income tax
immunity to encourage the development of new industries in a
community. This is accomplished
by the issuance of revenue or
general obligation bonds of a municipality for the construction or
One
ready marketability.
year
two, and in some instances in¬
etc.
in
Price changes in the long-term
words,
Iowa,
other State, and we usually
carry
a
substantial
amount
of
Chicago and Cook County bonds,
2%, with few exceptions, the de¬
and then to venture some ideas of
at present and
of this
outstanding, and
bonds
of
municipals than
knowledge of the
nationally recog¬
is not only a
contributing safeguard to the in¬
vestment, but is a requirement for
and
issued,
were
few—probably less than 2% of the
amounts
how
the
delays
other
In
State
those
from
interest
more
sources.
any
le¬
probable that there will be
seems
have larger investments in Illinois
debt increases
which
under
laws
the
Wisconsin,
gal opinion accompanying any of¬
fering made to us. The legal fac¬
tors require expert study and
a
comprehensive
issue
good market for
a
in
Wisconsin
124.82.
We also carefully screen the
nized
Municipal Bonds
is a broad one, and I thought my
best approach to it would be to
tell you what we at The First Na¬
is
81.19
the size of the population.
with
Housing Authority bonds.
the 1930's, defaults or
The subject of
originated.
bonds
You will note from these figures
bank invest¬
ments, describes investment merits of Municipals, and lays
down rules for selecting issues. Says Municipals have good
marketability, and, considering tax exemption, offer compara¬
tive good yields. Opposes use of municipal credit and tax im¬
munity to encourage new industries in a community, and de¬
"
issue
102.25
55.86
98.96
250,000-500,000
Over 500,000—.—
municipal
a
find the best market still
the city and state in which the
in
there
Included
$86.86
Net
$39.28
55.37
Population—
50,000-100.000
buy
we
for resale, we
Overlapping
Bank Investment
Vice-President, The
have (1951)
we
.Thursday, December 11, 1952
..
mu-
information
tailed
on
these
hold-
nicipals will have to compete with
corporate bonds to attract insti-
ings, which information is not al-
tutional investors.
form.
more
institutional
There has been
interest
in
ways
mu-
nicipals, recently, than for many
and if the volume of new,
easy
Among
known
to maintain in current
the
larger
revenue
and
issues
.
better
there
is
years,
financing
meets
expectations,
it
1
/
Continued on page Zu
Volume 176
Number 5176
.
.
The Commercial and
.
Financial Chronicle
(2223)
plete collapse seemed but
More Imports—Less
ter
of
months
the
at
it
losing its gold and dollars.
year
Foreign Aid Gifts
mat¬
a
rate
was
In the
ended June 30, 1952, Britain's
gold and dollar
$3,876
fell from
reserves
million- to
tially stopped, and there is some
hope because of better financial
management.
in its
of
at least that outflow has been
par¬
the
At
Vice-President, First National Bank, Chicago
Foreign banking
of
that rate, it faced complete
bankruptcy in nine months. Today
By HERBERT V. PROCHNOW*
million.
$1,685
.
a
of dollars and
reserves
$128 million.
over
management in nations.
Canada
managed its economy well,
has
In fact, for Novem¬
ber, 1952, Britain reported
and investment funds have flowed
gain
gold
into
Canada
world.
v
ada
If you were to come to this
part
the world, you would also see
from
all
separate times and has at the
Continued
importance of sound financial
on
Chicago bank, after reviewing fiscal
and economic policies of Western
European nations, points out
our
foreign aid will be useless, unless these nations are enabled
permitted to
or
their increased production for
exports.
use
buy
we
foreign goods to aid in closing dollar
more
Says
Urges
goods is bad for U. S.
mere
stresses need of balanced world trade to
bring about
:-
Chicago, Rock Island and Pacific Railroad
Equipment Trust, Series O
peaceful
a
and stable world.
In
August,
ended.
The
1945,
World
summer
looked
down
world.
There
War
sky that
upon
II
at
year
distraught
a
t
m e n
in
the
Thirteen
mil¬
lion
dead.
and
Great
cities
were
vast
piles
tighter
that
will
finally
of
rencies
had
tions
ment
t
a
no one
g-
people
refugees.
a
duction
dollars.
i s s i pated.
Millions of
For
wa'ched
and
political
social, economic
structures crumble.
Into
that
the
billions
vent
distress
United
of
and
dollars
in
sistance
tween
took
1945
various
and
to
and
M.
S.
few
A.
We
minutes
propose
to
By
the
middle
production
of
1952,
in
Western
agricultural output
12%
ahead
of
production
is
since
over
1948.
The
United
is up about 29%
over
only about 12% since 1948.
On
the
tion
of
Western
industrial
Europe
has
nomenal progress.
sufficient.
to
now
If
stand
plant
made
of
phe¬
But that is not
these
countries
are
their own feet,
production
must
help them to increase exports and
this
on
increased
reduce imports
sufficiently to bal¬
their accounts with all other
ance
nations.
that
It
is
not
enough to
production is
industrial
stored
if
stand
these
say-
To
have
their
internal
sound
Priced
at
have not
have the
management
perity,
but
it.
A
nation
appearance of pros¬
actually be fac¬
ing economic difficulties.
Let me
When
a
problem.
nation
in
for example,
rope,
anced
Western
has
Eu¬
unbal¬
an
budget, it is not taking
much money out of the
the
FREEMAN
set
of
an
money
forces
as
to
prices
manufactur¬
try to import large quantities
ers
of
raw
materials
to
a
quite
by Mr. Prochnow
of
the
make
at
the
Bank
into
Sixth
Corre¬
spondents of the First National Bank
Chicago, Chicago, 111., Dec. 3, 1952.
& CO.
THE
&
CO.
& CO.
ILLINOIS COMPANY
WM. E. POLLOCK
&
SON
CO., INC.
MULLANEY, WELLS & COMPANY
$8,520,000
financial
good
out
its
ex¬
It followed
Great Northern
a
It
recovery.
after nation.
nation
in
Railway
Equipment Trust of 1953
gold
in
million
gold
2%%
Equipment Trust Certificates
(Philadelphia Plan)
Germany has
outstanding example.
hours there are long.
Working
No
would
one
;
To
of
mature
$284,000 semi-annually July 1, 1953 to January 1, 1968, inclusive
have
guessed that
the German reichmark which was
almost worthless
would
To be
quickly
guaranteed unconditionally as to payment of par value and dividends by endorsement
by Great Northern Railway Company
become a good
currency. The Oc¬
cupation Authorities with the gov¬
MATURITIES AND YIELDS
ernment of Western
Germany de¬
stroyed approximately 90% of the
currency and savings accounts of
the country.
ure,
but it
It
was
has
hard
was a
made
(Accrued dividends
Today
2.15%
July
January 1954
2.25
to
be added)
2.70%
July
January 1959
2.75
January 1964
1958
a
2.875
1963
1954
2.30
July
2.775
July
January 1955
2.35
January I960
2.80
2.90
January 1965
July
remarkable
She will be
1953
J»iy
meas¬
successful.
progress.
1959
2.90
1964
2.925
1955
2.40
July
2.80
July
January 1956
very difficult competitor, as Bel¬
gium has been, in world markets.
2.45
January 1961
2.825
January 1966
2.95
July
1960
1965
2.925
British
the
ments,
losses
markets
of
her
ventures
the
nomic
necessity
measures.
for
hard
They
July
1966
2.95
2.85
January 1967
2.95
1957
2.60
July
2.85
July
1967
2.95
2.65
January 1963
2.875
January 1968
2.95
from
those
is unfortunate
raw
a
great
1962
such
of the undersigned and other dealers
as may
lawfully offer these securities
in
such State.
eco¬
diverted
HALSEY, STUART & CO. INC.
Britain's
who
it
R. W. PRESSPRICH
Britain
say
because
materials to export.
overlook
1961
Issuance and sale of these Certificates are subject to authorization
by the Interstate Commerce Commission.
The Offering Circuldr may be obtained in any State in which this announcement is circulated from only
were
unfortunate. Free spectacles, wigs
and teeth temporarily
glossed
over
2.825
January 1962
January 1958
invest¬
and
socialistic
July
2.55
July
property in
the War, has been
very serious.
We must be sympathetic with
her,
but
2.50
July
Situation
situaton, because of
tremendous
1956
January 1957
The
The British
&,
CO.
L. F. ROTHSCHILD
BAXTER, WILLIAMS &, CO.
FREEMAN L COMPANY
GREGORY
IRA
&
CO.
WM. E. POLLOCK & CO., INC.
has few
But they
&.
SON
HAUPT &
CO.
HAYDEN, MILLER &. CO.
INCORPORATED
entirely that Britain has
resource—a pool of
is
Conference
L. F. ROTHSCHILD
HAUPT
good.
import manufactured goods to sell
talk
&
The Netherlands record has also
been
manufactured
A
INC.
INCORPORATED
held, for example, in France.
goods to sell at inflated pi ices in
country. -Retailers also will
*
by the Interstate Commerce Commission.
'
financial policy.
to $573
the
Annual
CO.
&,
outstanding
are
means
to authorization
these
goods
which
subject
a
There
That
are
they fol¬
holds $718 million
compared
up
people'
goods
2.90%, according to maturity
December 10, 1952
urgent
produce more and more
at lower and lower costs.
buy
dividend payment date thereafter.
any
internal¬
attention
higheri
to
IRA
HUTCHINSON
GREGORY
need—to
excess
Certificates
COMPANY
&,
McMASTER
in¬
pockets of
the
or
HALSEY, STUART & CO.
nation
the people in taxes as the govern¬
ment is giving the
people.
The
use
1958
yield 2.15%
R. W. PRESSPRICH
of
may
illustrate the
1,
Europe in
undersold
now
finances, with bal¬
taken
to
Issuance and sale of these
Europe is
some
supply.
Western
Germany
budgets. This is the next
imperative step for those nations
that
redeemable at par as a
maturity) in inverse order
earn
anced
may
are
para¬
the
It squeezed
economic
in
a
competitive
accomplish this, they
must
led
re¬
alone
world.
1962
production^
the policies
of
money
cannot
nations
1,
been another
records, the reconstruc¬
the
after July
remarkable recovery.
did -not
have
had
a
strict internal
Kingdom
prewar, but
a
is—are
of
Belgium is
program.
cess
It
131%
or
guaranteed unconditionally as to payment of principal and dividends by
Chicago, Rock Island and Pacific Railroad Company
high produc¬
Western
Look
illustration
It
and
with
question
nations and
50%
prewar
To be
prices
to
have
you
in
that
lowed.
production
Italian
42%; German production is
44%
up
almost
now
above prewar.
is up
French
prewar.
on
in part (but not less than the whole of
any
the pro¬
abroad
finances
Those
Eu¬
about
was
The
trouble.
indus¬
rope was 40% above prewar levels
and
or
producing
lower
at
sold
nation
ly has had
in
has happened and what
may logi¬
cally be the next step.
trial
whole
employ¬
sound financial
program
what
see
full
Every nation that has
time, the assistance
largely under the E. C.
these
Certificates maturing
January 1, 1965, inclusive
to
sound?
1948
to the present
has been
A.
goods
be
nation
a
up.
be¬
From
$185,000 semi-annually July 1, 1953
and
everyone
Thus,
ternal
as¬
forms
1948.
of
pre¬
That
recovery
its
enough to say that the
poured
aid
dangerous unrest.
mature
...
(
devasta¬
States
of
can
dox—a
in
has
man
(Philadelphia Plan)
of maturity on January
tion, full employment, high wages,
inflated prices,
increasing imports
but
decreasing exports, and a
steadily
deteriorating
financial
position.
The result finally is fi¬
nancial bankruptcy.
So it is not
hungry
the second time
his
tion,
savings
destitute,
generation,
that
d
were
To
vise
wishing to shift to
their
Prochnow
economic
an
have
may
with
gered under
debt
with
H. V.
high-
own
goods to sell in that country at in¬
flated prices and
profits, and with
e-
Na¬
s
Equipment Trust Certificates
„
seriously impair its fi¬
At the same
time, the
country
bauched.
in
delay
nances.:
Cur¬
d
3/4%
may
rubble.
been
2
With its
priced goods abroad. So its im¬
ports rise and its exports fall. The
country is then squeezed tighter
lay
men
difficult to sell its
more
men.
ness
Conse¬
internal prices rising, it becomes
weari¬
hearts of
prices.
tries for goods imported.
and
deep
inflated
quently, the imports of the nation
rise, and it must pay other coun¬
sad disillusion-
was
the
:
$4,440,000
and
gap,,
THE ILLINOIS COMPANY
skilled
McMASTER HUTCHINSON & CO.
labor, and that labor when put into
highy
goods at
exportable
low
THE
costs
The present government has
taken
some of the first
steps to
its economic
uation.
and
A year ago
WILLIAM BLAIR & COMPANY
MULLANEY, WELLS & COMPANY
McCORMICK & CO.
December 5, 1952
financial sit¬
Britian's
F. S. YANTIS
&
INCORPORATED
strength¬
en
MILWAUKEE COMPANY
commodity.
com-
VP
CO.
the
over
In the last five years,
its tax load
has reduced
expert of
fear is false that
importing
7
Can¬
four
same
page
28
D
The Commercial and Financial Chronicle
Thursday, December 11, 1952
...
(2224)
Reorganization—Analysis—Vilas
Pacific
Missouri
Dealer-Broker Investment
Co., 115 Broadway, New York 6,
Works—Bulletin—Daniel F. Rice
Company, 141 West Jackson Boulevard, Chicago 4, 111.
send interested
to
Stocks
and
Bulletin
—
—
First
209 South
Inc.—Report—Hunter
Corporation, 52 Broadway, New York 4, N. Y.
investing—Discussion
City Company, Limited, 544 Howe Street, Van¬
The Western
method of
a.
135
Fifth
(25 cents to
W. Axe & Co., Inc., 730
Avenue, New York 19, N. Y.—50 cents per copy
Profits
Collons
Tax
Discussion
—
P.
Radio,
63
R.
Hoffman &
Warner
Collins Radio,
Swasey—Walston,
&
Goodwin, 265 Montgomery Street, San Francisco
Oil
14
Street, New York 5, N. Y.
Over-the-Counter Index—Folder
showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period—
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, New York.
Over-the-Counter
counter
stocks
Bulletin
—
discussion
how
60
Pont
&
Inc., announces the incorporation
of its Personal Investment Plan¬
available in the current issue of "Market Pointers"
cussion of the Natural Gas
and
industry,
a
is
Counsel, Inc.
Officers
Arnold
hard,
&
dis¬
of
at
Federal
i
n
dents;
list of Growth Stocks,
n
g
,
-
and
William Rand,
Natural
end
of
Power
Gas
the
Companies
year
Vice-Presi¬
Arnold Bernhard
dent.
(No.
113)—Smith, Barney & Co.,
Wall Street, New York 5, N. Y.
status
n
Assistant
Earnings—Bulletin
Statistics
a
Vice-Presi
Ratio—Bulletin—Oppenheimer, Vanden Broeck
Co., 40 Exchange Place, New York 5, N. Y.
14
Presi¬
and Harold A.
H
Price Earnings
Railroad
Bern-
Eliot Sweetser,
suggestions for Tax Savings.
some
are
dent; Frank
Also
a
Value Line
as
Investor's
over-the-
Wall Street, New York 5, N. Y.
1
Service
ning
of
Commission —-
—
1951
operations
and
140 natural gas companies—
Publications Section, Federal
Power
Commission, Washington 25, D. C. — $5.00 per copy
(order No. FPC S-98). A 25-page summary of the report,
priced at 25 cents per copy, will be available in January.
The
or¬
offer
trusts and institutions. Offices
at
5
44th
East
Hanseatic
Alleghany
•
American
Pearne
&
Co., 25 Broad
has
Richard
become
A.
has
meeting at the
of America winter
Edgewater Beach Hotel.
May 7-8, 1953 (San Antonio, Tex.)
been
elected
a
Texas Group
Vice-
Investment Bank¬
Association
ers
President of
American
of
Spring Meeting at the Plaza HoteL
of the agency,
May
itisannounced
Investment Bankers Association
Calkins, chair¬
man.
Mr. Kem¬
the
National Security Traders Asso¬
ciation 20th Annual Convention.
Bond
stment
of
Bank
Nov. 29-Dec. 4, 1953
Lucrezia
Kemper
has
agency
(Hollywood, Fla.)
of
America, Keystone Bros., and the
San Francisco Stock Exchange
and
at
Sept. 14, 1953 (Sun Valley, Idaho)
accounts, Miss
Saylor's Choc¬
n ve
meeting
Spring
Greenbrier Hotel.
the
handles
among other
I
America
of
per
olates,
(White Sulphur
1953
13-16,
Springs, W. Va.)
by Howard W.
been
associated with the
Investment Bankers Association
of America Annual Convention at
the
Hollywood Beach Hotel.
since 1940.
1|If. C. Jones Named
V.-P. of Lanston Co.
FRANCISCO, Calif .—Law¬
rence
Skalowsky is
with
Walter
connected
Harrison,
1953 (Chicago, 111.)
Investment Bankers Association
Guen-
-
ther Law, Inc.,
SAN
SACRAMENTO, Calif.—John R.
A.
with
Cyanamid—Memorandum—Hirsch
of the
Albert
Joins Walter Gorey
(Special to The Financial Chronicle)
Corporation—Bulletin—Dreyfus & Co., 50 Broad-
of
Street, New York
Joins R. A. Harrison
•
New York 4, N. Y.
.way,
Frank
office
Security Dealers As¬
Annual Dinner at
27th
Feb. 13-14,
—
(Special to The Financial Chronicle)
5, N. Y.
*
Francisco
San
sociation
the Biltmore Hotel.
are
Tables of Related Values of
York
Lucrezia Kemper, manager
City.
rights expiring Dec. 11 to 19—New
Corporation,
120 Broadway, New York
Calif.
FRANCISCO,
Division
new
specialized
and continuing investment counsel
for individuals, corporations, pen¬
sion
and
profit sharing funds,
will
ganization
SAN
1953 (New York City)
New York
Kemper V.-P.
Of Albert Frank Agency
Company,
&
Bernhard
might benefit from elimination of E. P. T.—
Co.,
Baltimore
Lord
the
at
Hotel.
Mrs. L.
Counsel Inc. Formed
Arnold
Troster, Singer & Co., 74 Trinity Place, New York 6, N. Y.
du
(Baltimore, Md.)
16, 1953
Security Traders As¬
sociation 18th annual Mid-Winter
Corporation—Analysis—Barret, Fitch, North &
Value Line Investor's
Penny Stocks Worth Dollars in Tax Savings—Bulletin—Francis
I.
Yacht
Baltimore
Jan. 16,
Limited—Copies available from Wood, Gundy & Co., Inc.,
Wall
Jan.
Trust Company of New York—Bulletin—
Dinner
Figures About Canadian Oil—Brochure by Imperial
and
Francis
St.
Club.
Co., 1006 Baltimore Avenue, Kansas City 6, Mo.
>
4, Calif.
Facts
the
at
party
of expiration on
Towmotor and
Mallory,
annual
Association
14, Calif.
Whitaker Cable
Security Traders
Christmas
San Francisco
—
Penn Hotel.
(San Francisco, Cal.)
Dec. 19, 1952
Corporation—Analysis—John H. Lewis & Co.,
Wall Street, New York 5, N. Y.
Los Angeles
and Warner &
265 Montgomery
Street, San Francisco 4, Calif.
Excess Profits Tax—Discussion
P.
dinner at the William
Conrad, Bruce & Co. of Los Angeles, 530 West Sixth Street,
of expiration on
effects
Towmotor
Goodwin,
&
Hoffman
Swasey—Walston,
of
MaJIory,
R.
Corporation
Title Guarantee and
public libraries and non-profit institutions).
Excess
Co.,
Securities
Oklahoma,
of
Pa.)
Pittsburgh Securities Traders
Association annual election and
Temco Aircraft
Electronics Industry—Study—E.
San Pedro
on
12, 1952 (Pittsburgh,
Dec.
Analysis — Rothschild & Company,
South La Salle Street, Chicago 3, 111.
Studebaker
1, B. C., Canada.
couver
House
Party
Avenue.
Chicago 4, 111.
La Salle Street,
Oil
Sterling
16, N. Y.
as
10 Post Office Square, Boston 9,
Company—Analysis—Cruttenden &
Production
Southern
Balance
Christmas Party at
the
Broadway, New York 6, N'. Y.
Re-Examined—Articles in "Bank¬
for December 1952, 12 East 36th Street, New York
Dollar-Value
Women of San An¬
Annual
tonio
Corp.—Analysis—Sulzbacher, Granger & Co., Ill
Rome Cable
Corporate Bond Experience
ing"
Investment
Analysis and review of the Cement
—
1952 (San Antonio, Tex.)
Dec. 11,
First Boston
—
Mass.
Inc.
culators,
Cement Co.
Industry—Lerner & Co.,
California
Company, Incorporated, 300 Montgomery Street, San Fran¬
cisco 4, Calif. Also available is an analysis of Marchant Cal¬
Bonds
Memorandum
—
Corporation, 100 Broadway, New York 5, N. Y.
parties the following literature:
Riverside
Convertible
Electric Co.
Gas &
Field
Investment
In
Chicago 3, 111.
Co., 135 South La Salle Street,
Oklahoma
EVENTS
and
Service Co.—Memorandum—Dempsey &
Northwestern Public
will be pleased
understood that the firms mentioned
COMING
&
N. Y.
Engineering
Northern
Recommendations & Literature
It is
Co.—Memorandum—Goodbody
Casualty
Amsterdam
New
Hickey,
&
New York 5, N. Y.
49 Wall Street,
2200
Building.
He
C.
now
Gorey
was
affiliated
Co., Russ
formerly with
—
Aubrey G.
Lanston, President of Aubrey G.
Lanston & Co. Inc., has announced
that
the
elected
Schwabacher & Co.
16th Street.
CHICAGO, 111.
Board
Willard
Directors
of
C.
of
Jones
had
the
Chicago office, 231 South La Salle
Street, New York 4, N. Y.
Street, of that organization to be
American Marietta
Co.—Analysis—A. C. Allyn and Company,
Inc., 44 Wall Street, New York 5, N. Y.
an
Assistant Vice-President.
American Metal Products
Company—Report—Gartley & Asso¬
ciates, Inc., 68 William Street, New York 5, N'. Y.
Arizona Public
Service Company—Analysis—G. A. Saxton &
Co., Inc., 70 Pine Street, New York 5, N. Y. Also available
is a tabulation of Public Utility Common Stocks.
Two New Partners for
Notes
NSTA
Electric & Gas Company—Analysis—Central
Company, 209 South La Salle Street, Chicago 3, 111.
Central
Ill
Railroad
of
Nebraska
Natural
Gas
Co.
Libby, McNeill &
Memorandum
&
Co.,
Lentz,
Building, San Antonio 5, Tex.
—
—
Libby—Memorandum—Auchincloss, Parker
Redpath, 729 Fifteeth Street, Washington 5, D. C.
Baltimore
Security Traders Association will hold their
on Jan. 16, 1953 at the Lord Bal¬
18th Annual Mid-Winter Dinner
timore
New
Newton & Co., Alamo National
&
Republic
Jersey—Review—Ira Haupt
Broadway, New York 4, N. Y.
Kansas
BALTIMORE SECURITY TRADERS ASSOCIATION
The
Central
Hotel.
Howard
L.
Kellerman,
Alex.
Brown
&
Sons,
Security Traders Association of New York (STANY)
ing League standing as of Dec. 4, 1952 is as follows:
Hunter
Bowl¬
44
Filtrol Co. of California
(Capt.), Smith, Valentine, Meyer, Farrell, Brown
Meyer (Capt.), Kaiser, Swenson, Frankel, Wechsler, Barker
Serlen (Capt.), Gersten, Krumholz, Rogers, Gold, Young—
Leone (Capt.), Greenberg, Tisch, Werkmeister, Leinhard,
Corby
Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Huff
38
36
35%
26
24
21%
20
(Capt.), G. Montanye, Voccoli, Siegel, Reid.^
(Capt.), Frankel, Strauss, Nieman, Bass, Krassowich
Growney (Capt.), Craig, Fredericks, Bies, McGovern
Krisam (Capt.), Ghegan, Jacobs, Gannon, Cohen
Bean
Troster, Singer & Co.
Members:
74
N.
Y.
Security Dealers Association
Trinity Place, New York 6, N. Y.
Con"«on
38
Goodman
Burian
Corp.
INC.
41
(Capt.), Klein, Weissman, Sullivan, Murphy, Sea-
right
American
Exchange, effective Dec. 31.
is
Points
Team:
Gavin
North
Stock
Brooks
SECURITY TRADERS ASSOCIATION OF NEW YORK
(Capt.), Demaye, Whiting, O'Connor, Rappa, Seijas
Murphy (Capt.), Manson, D. Montanye, O'Mara, Pollack,
Minerals Separation
A.
Oakley
Chairman of the Entertainment Committee.
Donadio
Primary Markets
McCluskey, Jr. and
will become
partners in Wood, Struthers &
Co., 20 Pine Street, New York
City, members of the New York
A.
Canada
Southern Oils, Ltd.—Analysis—Leason &
Co., Incor¬
porated, 39 South La Salle Street, Chicago 3, 111.
Wood, Sirulbers Go.
William
Atlas Corporation—.Review—Sutro Bros. &
Co., 120 Broadway,
New York 5, N. Y.
5 Point Club
200 Point Club
Richy Goodman
212
George Leone
Joe Donadio
Price 5
Stock
Cents per Shore
e*e«fed bjr
order,
35
31
phone
Kfione
or
write
CO.
&
[teller 1
I
MO
Broadway,
New
.
.
u
v
Volume 176Number 5176
.
.
The Commercial and Financial Chronicle
.
(2225)
Financial
pendent upon
security.
Leadership
President, stressing the broadening horizon of banking in
strides
forward
their
in
ing
with
the
public. This is
because of the
in¬
greatly
of
ume
trust
assets and also
due
the
to
fact that trust
assets
and
public
rela¬
tions
have
been
increas¬
ingly
well
handled. More
and
more
peo¬
ple
are
de-
pending
Harold
on
Brenton
bank
trust
officers to manage at least a part
of their assets—the assets which
for
may account
of
their
sizable portion
a
income.
appropriate
So, I feel, it is
talk to trustmen
to
about
leadership, as each year you
are occupying
a more important
place in the financial leadership
of
communities.
your
Moreover, in the last 25
the
whole
field
broadened
started
bank,
its
in
out
the
of
has
When
little
a
I
country
of the homespun
was
Nowadays, however, our
variety.
customers
foreign
these:
as
aid
stand?
in
come
questions
can
with
such
How
Why should
much
to exceed
labor
thus
push
kind
I
deflation
or
continue
Will labor costs
What
make
an
higher?
still
investment
maintain
to
value of my
These
productivity and
prices
of
the
can
present
a
few
of
the
vital
questions nowadays, and they are
questions right in the banker's
lap.
It takes more than a horse
variety of understanding
answer
the public's demands
'n buggy
to
which
drain
off
of
some
re¬
their
in
position
key
a
to
dollar.
that
You
bilities
sitive
dollar. You
our
face, daily, people who have en¬
trusted you with the funds that
furnish them with their spending
Many
money.
the fixed
of
them
rely
income from funds
der your management.
on
un¬
When that
fixed income depreciates through
the lowered value of their dollar,
then
best explanation is to
your
point out
are
of the factors that
some
causing
that
less
valuable
dollar
and
power
from
their
investment.
citizens
want
to
our
the
lower
purchasing
protect
If
the
future purchasing power of their
dollar, they must understand cer¬
tain things and do their part.
The
public
should
understand
that
we will eventually have more
price increases and recurring in¬
flation if we keep on with our
deficit financing. A government,
the
same
as
business,
individual
which
or
continues
an
to
that
out
its
credit
also
becomes
impaired.
Government Expenditures Should
Be Kept
Down
sen¬
dollar
bankers since it is so
other
in
tide
closely
more
of the
the value
with
daily
your
work.
We
-
up
this
in
important population
dependent on retire¬
income provided
through
country
of
building
an
persons
ment
The
pension plans now in
pensions and social security.
number
of
American
in
operation
has increased to about
business
15,000. An¬
nual contributions to these private
The people of this country and
elected representatives, the
Congress,
should
exceed $2 billion
now
will
the
>An
beneficiaries
the
that
demand
dollar
address
be
by
the
Mr.
tures to
and
value
Brenton
with
amount
an
prudent
With the
through
be
we
you
tional
ments
trust field have visualized the de¬
bilitating
effects
departments if
No
business
able
to
would
be
more
the
trust
banks
build
if
an
"A
Inflation
only
our
our
resources
are
dangerous
are
of
else.
essential
to
and
program,
only
as
the
be
can
is
it
successful de¬
any
United
as
strong
home.
at
Weak¬
ness
undermines
lomatic
for
efforts, or appropriations
or
gifts can create the
loans
same
confidence
and
the
same
the
responsibilities firm support as maintaining the
and the role of world
leadership moral,
economic,
and
military
which history has thrust upon us.
strength which is so vital to us
America has been the outstanding and to
every one else.
May we
example to the world of a free, have the wisdom and the courage
dynamic, productive nation.
Our to do it!"
greatest desire should be to con¬
Gap in Potent Business
duct ourselves so that other peo¬
ples
will
want
for
themselves
Leadership
a
type of free productive
Now, let's evaluate our situa¬
economy.
To gain such leader¬ tion, as we are just emerging from
ship, a nation must follow an ex¬ a 25-year gap in potent business
emplary pattern of conduct. Are leadership.
the American people willing to
Back in the late 1920's, you re¬
exercise
the
self-restraint
keep
to
our
own
member,
neces¬
and
economy
healthy and strong?
businessmen,
Dollars cannot
buy, or military
force, leadership
world. It is "by their fruit
bankers,
all kinds of people went too
heavily into debt.
of
quence
their
What
As the
excesses
conse¬
dawned
of the
blueprints and
bankers
have
for
do
next
25
One
of
the
greatest
taxes,
the issues before
us.
We must do
everything possible to show our
people how to keep our economy
stable.
Public
opinion is the controlling
Our people,
whole, simply do not com¬
prehend the magnitudinous char¬
force in this country.
as
a
acter
of
our
nationwide,
wide economic threat.
must
sues
upon a
a
cannot
nation.
Our allies like
superior economic
them, people reduced
spending in order to pay
on
if
they
to
are
guide
Every
power of
fense for
decision, is the last de¬
a
free world.
Looking ahead to the next 25
years, the bankers' plan should be
should
men
be
for
leadership. They
trained
what makes
to
understand
tick and
understanding
to the people of their communi¬
to
interpret
or
economy
their
ties, large and small.
Entire staffs of officers and key
employees must be better trained.
I contend that it is just as much
the executive bank officer of any-
the principal exponents
sized bank will not be considered
interpreters of a new econ¬
Continued on page 16
omy.
These false prophets did a
But,
resources.
their
and
our
$6,360,000
should
then,
and
now
that
says
over
Wabash Railroad
a
prevails.
Prices
higher as wages
tivity.
is
If
will
be
a
each
up¬
(Philadelphia Plan)
•
••
•
'
'
Y.
'
v
.
■
■
$212,000 semi-annually July 1, 1953 to January 1, 1968,inclusive* Y
mature
To be
guaranteed unconditionally as to principal and dividends by endorsement
by Wabash Railroad Company
Priced
this
as
to
think
increases
yield 2.20% to 2.975%, according to maturity
fully provided in the Agreement, on and after January 1, 1958, the
maturing on or after January 1,1964, are to be subject to redemp¬
Company at any time prior to maturity either as
a
whole or in part (but not less than the whole of any maturity), in the
inverse order of maturity, on any dividend payment date on thirty days'
published notice, or on any other date on sixty days' published notice, at an
amount
equal to the principal amount thereof, plus, in each case, accrued
and unpaid dividends thereon to the date designated for redemption.
more
Certificates
tion
as
temporary and something we can
through without much
muddle
But the dan¬
lies in the succession of such
to
*As
of
of
price
•
.
To
you can see
inclined
are
wave
Equipment Trust Certificates
'
what it
to the value of your dollar
period of years.
will do
over
such
2%%
forced
pushed
are
course
a
continued,
Equipment Trust, Series D
some
gradual
a
at
the election of the
permanent damage.
ger
inflationary
now
and
periods,
then by
interrupted
short periods of
Issuance and sale of these Certificates are
subject to approval by the Interstate Commerce Commission. The Offering
be obtained in any State in which this announcement is circulated from only such of the
undersigned and other dealers as may lawfully offer these securities in such State.
Circular may
stability.
Even with the inflation
people
are
we
at
at
of
a
the
save
and
have
questioning
provide for their future.
If the dollar
depreciates still
HALSEY, STUART &. CO. INC.
R. W. PRESSPRICH
L. F. ROTHSCHILD & CO.
&. CO.
BAXTER, WILLIAMS &.CO.
FREEMAN & COMPANY
IRA HAUPT &. CO.
WM. E. POLLOCK &. CO., INC.
HAYDEN, MILLER &. CO.
more
through planned price rises, pri¬
vate initiative will
be stifled and
people will become de¬
is¬
intel¬
ligently the course of our econ¬
omy.
The informed citizen, with
became
gen¬
our
adequately our
domestic, military, and foreign
requirements.
price rise
world¬
Our people
understand fundamental
of funds
we
services
that bankers today can offer their
customers is the clarification of
a part of a banker's
responsibility
nowadays to understand how our
their
economy works as it is to under¬
ye shall know them." We are de¬ debts. This sudden change brought
stand
how to invest our assets
pending too much upon dollars to unemployment
and
depression.
and operate the mechanics of our
do everything for us, but dollars New pseudoleaders appeared, as
banks. The day will come when
alone won't buy respect for us as they do in depressed periods. They
might
manage¬
amount
past.
plans
the
years?
to train
similar
sary
literacy and the necessity
informed citizenry in order
an
to avoid the fallacies
to
here imperils freedom every¬
where. No amount of words, dip¬
were
home; it also af¬
standing abroad. Let us
overlook
one
abroad
economy at
fects
not
not
that
States
thwarted.
our
own
strong economic foundation
fense
severely
depart¬
estate
our
ele¬ for
the
security of ourselves and
every
is
incentive
meet
economist
re¬
leaders are coming to the front.
They recognize the need for eco¬
nomic
protecting
inexhaustible
the
so
phase of the banking
and
save
trust
your
that people
and provide for the
couldn't save
to
on
of
delusions
set of conditions
a
promulgated
were
affairs:
"Without
strength, we
cannot provide any real or lasting
the help to other nations.
And, any
in
men
of this country's rec¬
authorities on interna¬
afford
can
financial
ment.
even more
,
cannot
Undoubtedly
be
can
amount which is consistent
an
sue- *
a
are
one
ognized
Inflation,
easily be
—
Mid-Continent Trust Conference of
the American Bankers Association, Dal¬
las, Texas.
As
include
maintained
21st
maligning
their
assume
the advisability and advantage of
saving and providing for the fu¬
about 25% of the industrial work¬ ture. A constant price rise would
rock the very foundations of our
ing force of the nation.
This individual
incentive system. Our
group of people constitute a tre¬ competitive
economy was based
mendous pressure group, and they on the theory that people should
and
of
responsibility and undertake to
keep our governmental expendi¬
now, many
plans
they
job
their
We
are
can't who is
erosity and the benefits from
ward—pushed upward more rap¬
trust responsi¬ idly than the increase of produc¬
probably
are
to
than
with
men
started,
out concerning the mone¬ affected than
tary and business operations that ments of our
affect the value of
you
pregnant.
speak
period of years
for information.
would be good. Just recently, one
of
this
country's
best
known
Banker's Creed to Protect Dollar's
economists has been arguing in
Value
the press on the thesis that a de¬
It has always been a part of
liberate, but slow, rise in prices
the banker's creed to protect the of from 2
to 3% a year is a prefer¬
depositor's dollar. The banker is able course for our economy. Here
now coming into a position where
is what will happen if that theory
he can be of some help to the
people in protecting the value of
bit
future.
are
than
more
any
You
shut off.
substance.
You
dollar.
sound
little
ex¬
covetous of
are
raised
dollars?
are
their
ceiving maximum value. They are
jealous of the competitive factors
for
pay
we
inflation
Is
ahead?
They
money.
economy
our
arming the world? How can we
cut down our huge government
debt?
tion
sensitive about their
are
little bit of planned infla¬
a
ounce
of information I overspend and overwaste will find
kind
needed then
years,
banking
horizon.
People
vol¬
creased
with
a
a
pected living standards.
impor¬
tance to banks and in their stand¬
W.
expect
have
spending should be
Advocates better training of banking personnel.
consistent
thorough
cessful business leaders.
.
last quarter-century, finds vital economic questions now "in the
banker's lap," and points out new role of banker is
protecting
the depositor's dollar. Says government
level
when
resources
rec¬
eco¬
sult;
businessmen
and
bankers
dissipated through overspending pretty much retreated and started
Investing
and
inflation.
They
recognize to recoup their resources.
The people who save and invest
signs of instability, and it weakens
Through these intervening
are the backbone of this
country's their
confidence
in
American years,
businessmen and bankers
productivity; and if they are will¬ leadership.
have done a tremendous job of
ing to stand by meekly and allow
Here are the words of our form¬ rebuilding their forces. Now ar¬
these
manipulations, they can't er ABA President, Joe Dodge, ticulate and enlightened business
President, State Bank of Des Moines, Des Moines, Iowa
In the last 25 years, trust offi¬
cers
of
banks have made great
through experience, they can
ognize what happens to such
nomic
By W. HAROLD BRENTON*
kept down.
government
Importance of Saving and
President, American Bankers Association
ABA
their
for
»
MULLANEY, WELLS
FIRSTOF MICHIGAN CORPORATION
December 11, 1952.
,
"
.
..'I
COMPANY
Chronicle
The Commercial and Financial
10
...
Thursday, December 11, 1952
(2226)
seized, the entire foundation of
or
A New Government Policy
government is put in
In Labor Relations?
law, became more concerned with
promoting trade unionism than
Federal agencies
toward
labor
and
is
lations
they
that
can
government pol¬
labor
organization
about
made
icies
concerned with promoting trade
of self-organization.
important
observation
useful
and
be
more
ensuring individual's right
most
the
Probably
of being
to¬
After
years
of
discussion,
experiment,
practice and
the
it
Leo Wolman
and
radically
as
continue to
which
irrelevant to current problems
If, then, those who
undertake to make policy in this
troublesome area are concerned, as
they should be, with the public in¬
terest and the basic rights, duties
responsibilities
they will
policymaking to the
ing problems which
and
citizens,
labor
in
•events
since
relations
has
do with the rights of the in¬
The first of these problems
being,
governmental
past
by
which
are
policies of the
The meth¬
decades.
several
ods
plished
this
accom¬
was
familiar to everyone.
They have run the whole gamut
deliberate
address
Annual
of
and
Prof.
Congress
planned
of
ef-
4,
does the law express
Nor
for
erence
as
tional
of organiza¬
kind
one
pref¬
against another, for a na¬
against a local union, for
or the AFL or what not.
these
Whatever
statutes
may
say
employee to make this decision so
vital to him under duress, under
bodily harm,
that his
the impression
under
him to
wanted
government
join
union rather than another.
them,
of
consideration.
the
do
fail
Adoption
ones
will certainly
worse.
But, what¬
of detail, we
to grips with
wrong
things
we
shall
by
to
way
come
of
present and
future troubles in labor relations.
the real
source
our
aim
to
are
we
for
peace
and
between
relations
first decide the goal of our
law
unmistakable terms.
very
else.
For
have
well
it
is
plain
in
said,
is it to
use
the prestige and force
government to enhance the
power of organized labor?
If we
propose through public policy to
the
employ
instrumentalities
the
promoting
in
government
of
.
membership, strength and author¬
ity of labor unions, then we must
resign ourselves not only to the
persistence
of labor strife
but
also
much
to
croachment
more
on
the
radical
going to be what. This is the interim between election
inauguration when usually there is a
steady trek of the job seekers to the man on
high.
But Eisenhower barricaded himself to
all but a chosen few at Augusta and New York
and then took off for Korea. One of the most
and
important items in the papers these days is the
those accompanying him; they are the
list of
authority
of
have yet seen.
we
and
the
of our government to give
these rights. They are rights
14
Wall
of the New York Stock
Exchange,
will
Terrie
admit
limited
right
Cabinet.
In the past
tics
to
not
on
in order that the
moment
last
begin shooting at them before
not
Henry
L.
to
partnership Jan. 1.
clearly apparent that while there is no reason
disposed, there are those in his confidence who
Because of this man's intellectual
It has become
to believe he is so
determined to deflate Taft.
are
capacity I doubt this can be done, but the
part of some around the General is clear.
One
government that is to take
place, is the experience of Governor Fine of Pennsylvania. For
months before Chicago he basked in the beautiful sun of heading a
large and probably decisive delegation to the convention and of
playing coy about his intentions. The national magazines wrote
him up, he was widely photographed and his life history, an
American
the
was
be Ike
story, was given considerable prominence.
success
Taft.
or
time for the convention neared,
As the
clear
to
nor's
coyness,
Washington political
the
delegates
majority of the delegation, were to be thrown to Eisenhower. In
that the Governor was in the General's
but he wanted to deliver the delegates in a big surprise move
psychological effect. Senator Jim Duff of Pennsylvania, on
the other hand, was early on the Ike bandwagon and confidently
camp
for its
predicted all the time that these delegates would go to the General.
In
the
early test votes in the convention, Pennsylvania voted
pains, by way
with the Eisenhower forces but the Governor took
continuing to play his little game, that these votes were not
significant as to where his delegates would land on the roll call
for selection of the nominee. The first roll call showed Pennsyl¬
of
Fine intended to switch the vote before the roll call
announced and with
a great show of having thrown the nomi¬
Eisenhower, vote the entire delegation for him.
But Joe Martin who was presiding wouldn't let him have the
nation
floor.
to
With Fine waving
frantically and pleading for recognition,
that delegation, which
for Stassen, went the honor of putting the General
Minnesota
had
recognized instead and to
was
voted
Crudgington Opens
AMARILLO, Tex.
—
Crudgington is conducting
vestment
If
Charles A.
business from
in¬
an
offices
621 West Fourteenth Avenue.
-
at
we
read and hear
recognize Jim Duff
aright
the Eisenhower forces
now,
Governor is being given credit for
nothing.
General had the nomination in the bag.
it
is what
the record
holding,
as
the record
as
be
the
in
This is not the real story
shows, and the Eisenhower forces
they do
in
the courts,
seen
that
you
Cabinet, he has
the Governor's
claim against the
no
are
can't go
name
He is
Presi¬
new
make stick.
can
To me, it is a bloomin' shawm, as
In the division between Eisenhower sup¬
porters and Taft supporters, the Governor finds himself in neither
He is without friends in the
camp.
thizers in the other.
Equipment Trust of 1953
(Philadelphia Plan)
*
nor
to go.
mature
and without sympa¬
can
get together and
There is nowhere for the Gover¬
•
can
make.
$162,000 annually October 1, 1953 to 1967, inclusive
of par value and dividends by
York, Chicago and St. Louis Railroad Company
guaranteed unconditionally
The New
yield 2.20%
H. Hentz to Admit
to 2.95%,
4
according
H.
Hentz
Street,
to
maturity
are
&
Co.,
of the New York
on
Jan.
1,
Jr.,
Stock
will
to
60
City,
New York
Lewine,
of these Certificates
With Dempsey-Tegeler
■
.
as to payment
'
.
to
-
people
We cite this experience of the Governor's as a little human
interest story in the great struggle of American politics. For sheer
drama there is nothing like it.
To guess wrong at the National
convention is just about one of the worst mistakes a
political
leader
To
.
one group
At least the Taft
another's shoulders.
cry on one
27/s% Equipment Trust Certificates
members
Exchange
admit
(Special to The Financial Chronicle)
Beaver
Jerome
LOS
McMASTER HUTCHINSON & CO.
FRESNO,
Colerhan
Merrill
has
Calif.
—
joined
Robert
Rudolph
(Special to The Financial Chronicle)
M.
staff of
Lynch, Pierce, Fenner &
Beane, 917 Divisadero "Street.
Calif.—Esme
with Dempsey
With Paul C.
Adds
the
now
Tegeler & Co., 210 West Sevent
subject to authorization by the Interstate Commerce Commission.
HALSEY, STUART &. CO. INC.
is
Street.
partnership.
Merrill Lynch
ANGELES,
M. Guerre
(Special to The Financial Chronicle)
Insofar
outside of Pennsylvania, since the convention.
dent which he
York, Chicago and St. Louis
Railroad
December 4. L952
to
reads, he couldn't make up his mind until after it was clear the.
not to
5
are
the big political cheese in Pennsylvania. The
as
the British would say.
Issuance and sale
it had become fairly
observers that, despite the Gover¬
whom he controlled, more than a
other words, it was clear
in the papers,
-Priced
Here
who would likely say whether the nominee was to
man
behind the record. I don't believe I have
To be
struggle now for
the great
in
ironies
bitterest
the
of
determination on the
political recognition in the overturn in
seemingly
New
Bargeron
opposition could
they were confirmed. Appar¬
ently the type of the General's appointments leaves him nothing
the
until
known
but
$2,430,000
Carlisle
across.
arbi¬
government,
and made public his entire
it has been a rule of poli¬
make the Cabinet appointments
he went
was
& Co.,
away
of authority,
been
single one. But the General was faced with
naming two key men, his Secretary of State
and Defense Secretary, and once he got started
Street, New York City, members
against abuse
have
would
The names of
leaked out but likely
no certainty about a
two might have
or
there
President's
new
known.
be
now
the
of
none
Cabinet would
one
throne.
the
to
Ordinarily
vania split.
Harris, Upham Partner
Harris, Upham
power
granted us by the Constitution.
They are not the government's to
give away, since their possession
is
the
protection
a
man
has
close
men
en¬
business to manage its own affairs
anything
within
But among
out.
way
to who is
of
It could not
said
not
public
Is it to protect the rights
and liberties of the individual, or
policy.
than
the
its
politicians there is a lot of anguished writhing as
the Republican
to fear on that score.
as
the CIO
as well as by private
organizations like labor unions.
Once such rights are surrendered
1952.
boy¬
secondary
employees and business, we must
thing.
In¬
American
re¬
proposals, and others like
deserve
careful and
in¬
formed
trary and tyrannical practices by
dustry, sponsored by the National Asso¬
Manufacturers, New York City,
exten¬
undoubtedly feel relieved
and relaxed now that the New Deal is on
These
constructive
So
or
on.
If
one
—
a fresh approach to the prob¬
of emergency strikes, and so
join. Nothing in
before
Wolman
ciation of
Dec.
a
These rights have been,
whittled away by
the
numerous
powerful
unions
which were created and nurtured
are
S7th
cott,
lem
the
of
him to join any¬
or
dividual.
the
from
threat of reprisal or
Rights of Individuals
*An
fit. He re¬
law freedom of
sees
of American on the matter, it certainly could
address their not, and should not, have been
few underly¬ their intent or the public policy
the course of of the United States to require an
1935 has thrown up.
Jrom
definition
the law requires
tion
proposals
repeal of the Taft-
or
tion he wishes to
developments
foreseeable
to
the future.
by
he
as
to
injunctions,
labor organization, and if
he elects to join an organization
he is accorded a wide range of
choice as to the kind of organiza¬
leading institutions, the major pro¬
and
the rights of indi¬
are
so
Hartley Act, reinstatement of the
ever
changed
legislative
of
make
deal with old issues, most of
to
are
—
trying
unsuccessfully
so
amendment
choice, the right to join or not to
join
issues
Each year witnesses a new
crop
ceives
posals of public policy
in
and
do.
completely as any of the country's
are
which they
the law of the land
right of self-organization, to
exercise
rela¬
been
have
we
solve.
or¬
ganized labor and labor relations
labor
labor
in
government
which
is granted by
Prof.
and
of
to
o u
have
of
with
The individual employee
viduals.
the
of
centralization
g h
ought
T h
written
labor unions.
not
were
benefit
rights
concerned
not
what
statutes
the
pow^r
to
rights or priv¬
Wagner Act, prohibition
organizations of labor. sion of the use of
to
The
the country, is
Jar from clear
about
in
done
been
has
These
govern¬
if
this
ileges
for
sive
hard
grant any peculiar
rience
ment,
public agencies of one
another form of compulsory
of
rise
labor—the
of the national union, the progres¬
The majority of the country's voters
recommendation and tions, the increasing intervention
to the
All
.20
p e
of
spite of the fact that neither the
Wagner nor the Taft-Hartley Acts
uncer¬
tainty.
e x
lems
membership.
doubt
by
and
of em¬
that
process
the great current prob¬
come
the unionization
promote
this
of
out
have
ployees, through the general use
of force, coercion and intimida¬
or
is
It
government agencies to
by
sanction by
that
are
forts
tion,
re¬
day surround¬
ed
safeguarding the individual's
right of self-organization.
with
BARGERON
By CARLISLE
the
law, by their powerful aid to or¬
ganized labor, and, in" their in¬
terpretation and application of the
dividual in labor relations being
unionism than
of
purposes
and liberties of individual. Sees rights of in¬
"whittled away," and accuses
protect rights
to
and
be made whether government
enhance power of organized labor or
its influence to
use
intent
the
Dr. Wolman holds decision must
is to
of the News
Federal Government that distorted
University
Economics, Columbia
Professor of
it
Washington
Ahead
it is not too much to say
was
the agencies of the
Yet,
that
From
Law
Federal Agencies Distort
YVOLMAN*
By LEO
system of
jeopardy.*'
American principles and
SAN
JOSE,
Rothschild
is
Calif.
with
—
Harry F
Paul
C.
Ru
dolph & Company, Bank of Amer
ica
Building.
u^il
Volume 176
.
Number 5176
.
.
The Commercial and Financial Chronicle
.
1
J
(2227)
An Economic
V
I. think in such instances it is
Ut quite in order to demand that such
Policy
For
"-•small
*
try
as
than
more
posed,
is
clear
we
fair,
and
do
we
not
have
can
— *
SIT/ Sharply between
domestic and
foreign as¬
pects because,
after all, they
are
lated.
In
said
be
that
now
of
we
eco-
international
be
to
of
any assistance
to other coun¬
have
those products which
the
tariff
^
rates
lowered
they
not
duce?
Let me emphasize the fact
I, myself, do not believe actually in complete free trade. Theoretically, there are many argu-
That, it
to
seems
me,
without
goes
saying.
economicallv
keen
our
whifh
Walter
ments that
sound
oueht
we
finances
own
in
to
about two decades
the
It is true
collaose
of
some
thereafter
UlCiedlUJI
our
UUI
have
Ildve
kent
Kepi
that
1929
could not oossiblv for
be presented
can
as
we
vears
budget
DUUget
you
as
■
0f C0Urse'there
true
be
Great
with
and
economic
did.
we
far
I
re-
it
a
was
mistake to go off the gold stand¬
ard
and
tent
of
to
the
change the gold
dollar.
think
I
con-
of the other measures which
of
all
kinds
were
neither
order to build up other countries,
being made in a number
American countries, in
of
taxation
the
we
were
undertaking
an
nessee
Valley
R.F.C.,
and
the
as
the Ten-
development,
abortive
the
attempt
control
to
practically all private
N.R.A., fortunately declared unconstitutional
by the U. S. Supreme Court. Iam'
quite ready to argue about ther
undesirability of all this, certainly
enterprises by the
Be
it
for
wish
copybook
granted
to
me
go
arguments
Abolished— '
Tariff Preserved
*
standard
been
that
you
into
the
/blame
sure,
are
we
doing
pretty
well
in
factors
path
own
economy
very enthusiastic
imn
/ wrecked by foreign coin-■
petition, and what would happen r,
to/e employees of such concerns,:
wh° Perhaps have spent the bet-^
ter .Par, °f fheir lives learning-.a v .
Parflcula^ job, and are too old^o.
equivalent and comparable
elsewhere., Do youthl"k that either the investor in.
sueh as case or the employees/riv°lve(f could be expected to be*
■
i
d
we
ourselves
w
Douglas, whom i -uC ....
I admire in-
will
.
„
■
would
be
the
country in
/
While
I
by
a
large-scale
gear that
situation
I think very much, if not
directly,
for
one,
this kind
mine
our
certainly
regard
developments
I,
of
being likely to underfinancial strength, with-
as
,,
y*An
indirectly.
address
,
M
by 'Mr.
..
.*■
-
.
.
Lichtenstein
of the World Institute,
IIL November 22, 19S2.
meeting
-
at
Moline,
by
country
in
trade
private
nomic
or
what
Private
does
enterprise
that
on
bonds
27/8%
V
■
the.;;
will/
To
To be
mature
thpir-
the
have
the
know~liow to develop these
re-
technical
items,
The
'sources themselves and they are
by deriving relatively e n o r m o u s
and.tta
P10tlls ootainea. pertainiy ror xne
on
the
open
market.
Continued
Are
on
page
Chattanooga & St. Louis
Equipment Trust Certificates
(Philadelphia Plan)
$176,000 annually
on
each December 15, 1953
to 1967,
and
to
yield 2.25% to 2.975%, according to maturity
HALSEY, STUART &. CO. INC.
"
thereby 5
^
inclusive
-r
'
'
.
R. W. PRESSPRICH
& CO.
-
'
WM. E. POLLOCK & CO., INC.
McMASTER HUTCHINSON
on
major. industries Pf ..Other
Countries.
or
of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may lawfully offer these securities in such State.
..
»
facilities
Issuance and sale
a very smalP"
industry prevents
the adoption of rational tariffs
particular
to have no
possess
large
corporaprpt
satisfactory,
seem
guaranteed unconditionally as to payment of par value and dividends by endorsement
by The Nashville, Chattanooga 6* St. Louis Railway
Priced
-
either from an eco- v
political standpoint. I'/
our
very
"'"si""® that they
mean',
any
take
I know, the situation
The Venezuelans
do not like it when
segment of
as
enter--in Venezuela is
tod/Tf/om
The Nashville,
..
a
As far
us
as contrasting
Railway Equipment Trust, Series H
■ •<
this/
in
are not dutiable. You
important
examples.
'
Now
trying to make it
free
those two countries
And, ' what
politicians^ talk -about the desira-c find, if you go through such lists,
bility of free enterprise, and prac- that nearly all the articles -that
tically none of them really wants come in free of duty are not pro¬
"it. Now, you may ask what does duced here, or produced in such
this have to do with international small quantities that they are not
affairs?
done
but . let
resources;
eco-.
$2,640,000
the transition period?
am
stated
wrecked
are
prise;
'
ways, when he advocates,
continued existence of -the-
fact is that most businessmen and
be
;■//
«
theoretical sense is not a practical
Proposal, nevertheless we ought in,
E.F.C.
Entirely aside from the. ma"y instances to reduce our ;.
fact that I regard it as economi- tanffs and probably place many..:;.;
eally unsound, I should say that-on the free list that are not /
under
existing conditions it is there now. I am not impressed
practically impossible to conduct'by the arguments so often adit without danger of having more' vanced,
that the greatest peror less corruption.
You know, the centage of imports cming into this •/
inany
the
I
ment will do it, but rather that it
i
I have little patience with Sen-'
ator
as
we
a
except
ev^/hough they themselves.. ;
nature?
rocnnrnpc
:
martyrs to the cause that
they "would advocate free trade
human
pro
that
I do not think the- borrowing money from banks
r^ritish economic problem can be insurance
companies,
or
selling
capl;31m tnose enterprises wmcn
^vou d Is not that
be the sufferers .and- the
losers?
about those in-
t° do something of the same type
Brazil, that is develop the na-
and,
our
nomically.
pf course, Point IV.
does not envisage that the govern-
in
w
is
at
wrecking
rulJ
// This is, probbaly not the place scale is in the hands of
3
e dead.
In the meantime,* to pv,t01,
rHcnncsinn nf thnt
tinns. Thnsp pnrnnratinnq
enter
,wh»t happens to the people
personal^
funds
of Latin-
shall certainly not
be able to help the free world if-
of
who.^V^a///bfec^TufI°/ay
Considerable
*>eem to be there. Undoubtedly in
the course of time we may be able
without
the outset,
are
involved
mind.
that
tit.
this
not to
for this situation. There
many/other
some
countries
classification
vestments? Oh, yes, we have deregard. In one way or another we' veloped the oil industry in Venehave given away since the end zuela, and we are in the process
of the war something
like $40 °f developing in that country the
C
°
orpcit
of
why this - the ^British situation besides our
is so.
For, .the long run, it
ail-.tariffs and administrative regulasounds well; but, as Lord -Keynes
~tibns.'
of
Should
.f
•
,
take
asking too much
for any long period of time.
R.F.C.
,
not
decent
a
in
more
the
investment of American
other parts of the world. We have
_
'/ living. To be
have
of
un-
coun-
I do not believe wfe are that
spite of
altruistic; therefore, I do not be- some unfortunate experiences that
lieve it can be done by govern- investors in those countries have
ment subsidies handed
over
to had in the past. Are most people
'
~j.
Latin-American
into
were
authors
developed nor backward
tries. Perhaps somewhat
not going than those just mentioned,
of
of
are
which
the
are
This is what creates the
burden
a
and
those
ready to acentirely in foreign
.producemaintain
we
but
might fall
stand
Zea-
number
a
to
,ir>nn
enforced,;
huge sums were spent on needless,
works after the pressing need had
passed/and private enterprise was
handicaped by government competition of every kind and type.
To
illustrate, I might mention
such
I
do
than
and
countries;
New
France
which will deprive them of those
luxuries which have come to be
regarded as necessities, simply in
™
,
and
of
even
Britain
in
0Sce.sa*j'
many
adopted "were kept" in force'much
longer than was advisable
Controls
T
nevertheless
believe
h
Australia
and
do
riJl
more
inherent
quickly than
more
still
fewer
less
strength,
•;
recovered
much
much
Canada has
hardly the countries
people. Just as a
matter of practical politics, I am
convinced that in the long run
—•
sources
are vestments
that
we
from
or
are prepared to,
them
enough
to
period
in the minds of
Point IV. Those
well-meaning
j13'd a complete- those countries whose currency isthe fiscal policies of the New Deal s^ftem of frees .trade. F -know.vit is ,.-based ion the pound sterling
merely tended to prolong the de-'-?u
S? we should produce-:, mustrmake all sorts of sacrifices
pression. I wish to call your atthings for which we^ are besL,0rder to obtain the food and the
tention to the fact that European ^JulPPed a£d exchange them[ for, raw materials which they require
in?JaLr.in*[^uroPean those which others can
countries,
of
land,
am
.
!
who believed from the outset that
safety
foreign^aoitaF T^a
^eSrpf
i S thaf mly be saTd to^bl
the
again somewhat less
enthusiastic than many other very
are
and
lesser
Is
should
am
the American people
of
some
that any of us
We know
I
are
other in the form of dividends
a
afraid that when it gets to that other
subject, I
at
make.
countries.
think
unprofitable
prospect
return
some
assist in the development
backward
to
money
you
capital, and with probabilities of
'
aware,
we
be
reasonable
Point
well
are
lend
domestically
or
internationally
unless the investment offers some
of
in
to
to
which
or
agen-
cannot get investment funds either
;
so-called dollar gap. I suppose you
have all read in the newspapers,
pncp,
world
bankers
are
therefore not able to repay either
capital or meet interest payments
when due? In other words you
of
free *rac*e *s desirable. But,- and e s p e c i a 11 y in economic
may have been true, or periodicals like the London "Econmay n?w
*ru? theoretically, omist," of the difficulties that
J71311^ important industries have Great Britain faces by not having
J3.6611 built UP which employ mil- a;>sufficient amount of dollars or
,s
Pf0P*e anc* which. g0}^ reserves. It means that Great'
?ou d n°t have rrmld nnt Pnntirmo. Britain and other countries in the
been created, andln
free
problem
proposal made that
Dollar Gap
cept payment
to
a
of^hT so-called
wk3*ever
order
have not bpen doinfj for
we
after
Lichtenstein
To be
going
Point IV Program
Pnint iv Pmon-am
most instances to be
currency.
the
fundamental
the
prepared
enterprises
•
in dollars because
buy
of
in
maintaining
you
pay; us
pro-
being
as
importance
omy
that
tries.
If
cies
perhaps
between
wars.
policy
the
■
The
;
and
period
that is another story. I may sum
this part of my paper by saying
that I do regard our commercial
them
us.
,
„
by
Have,you
on
to
make about
,
War,
the
complaints that foreign countries ready to
nearly
trade
.
World
up
are talking about econin a free world, this sort of
lowering the tariffs.
thing is of fundamental imporever
f o u n d, businessmen
who,/tance., Nearly all countries need
faced by foreign
competition, wish some of our production. They must
nomical ly
sound if we
are
are
of the constant
is one
those of you who
representing other lending
I am perfectly
willing to
that, as regards the future
of sterling/1 am a confirmed
pessimist; but, as I just indicated,
the
or
pany
a
admit
proper time for selling them has
believer in the free
a
the
accept
tCohiusneThere°™reeeC°n°miC ^ '
passed. This
system, and/no/one
wants it. Likewise, there is continual talk of opening up the
ayenues
place,
just
is
two
un-
of what
long that the articles spoil,
enterprise
the
must
is
°™nt Now let me.proceed to
I
interre¬
first
That
another.
everyone
necessa¬
rily
life.
means
that is putting money into
foreign country without much
hope of getting any returns? Are
to
which
in
even
stances where the clearing of shipments 'is deliberately delayed so
cannot
national
prevent
to
First
country with
our
products, we
from doing so,
by
dis-
economic
compete in
our.
play the role*we should in inter-
to
im-
subjecting us/to
charge that we
even
by
that,
to
less
ready
of you here present prepared
buy shares of stock of a com-
any
million
permanently a much
of living than the
they
were
accustomed in the years before the
hypocrites. Many of you are probably aware that even when foreign countries, despite our tariffs,
pol-
icy,
duties
being
Britain,
20
as
failing
or,
or
one
we
justifiable
Says American people will
support Point IV program, and there is no need to en¬
courage foreign investment through government
subsidies, if
conditions of safety of principal and income exists.
Holds
grandiose plans of international cooperation fail, while creation
of specialized international
agencies generally succeeds.
it
actual
Great
lower standard
and
others quite rightly regard as
not
which
the
<
British
have sinned by issuing
administrative regulations which
permit greater imports.
out
investors
many
as
more
coun-
employees of such enterprises. Far
Criticizing New Deal domestic and foreign policies, Mr. Lichtenstein points out we must be
economically sound and keep our
finances in order, if we are to preserve a free world.
Opposes
government in business, and advocates tariffs, but with adjust¬
I should like to
analyze what
has been and is our economic
reimburse
from
people,
economy
whole. Perhaps the gov-
a
to
cases
Formerly Vice-President, First National Bank, Chicago
to
our
eminent should undertake in such
By WALTER LICHTEN STEIN *
ments
of
suffer for the benefit of the
Free World
a
segments
emigration
perhaps
11
V
'
^
December 9,1952
& CO.
33
12
The Commercial and Financial Chronicle... Thursday, December 11, 1952
(2228)
five
Quebec: Clue to Canada's Fntuie!
By CYRUS S. EATON*
Mr. Eaton points out
in Canada is "the most
progress
Canada's
deposits is making
ore
supplier of iron
merce
The
I
question
to
pose
this:
is
you
like to
how can
would
place
perature
to
boyhood,
Province
my
and
way
is
that
oc¬
farming, mining and
impressive than it
their
industry
few
a
is in the Province of Quebec. For
more
miles
south
this
over
the
look
into
Canada's future.
border
miles
States in order
Quebec
almost
profit¬
employ¬
Cyrus S. Eaton
and
in
For
example, I
an
to
square
area
larger
Finland
Slightly
Sweden,
than
and
Denmark combined, Quebec has
Upon finishing school,
less than one-quarter of the com¬
I went to Cleveland, where the
bined
population of those four
two
best
known
citizens
were
northern European countries. No
John D. Rockefeller, the richest
Lajoie,
in
less favorable
world, and Napoleon
in the
man
the world. Nap, as
he
is far
player
baseball
best
the
I
af¬
was
was a
and the ideal of
Cleveland youth.
It
was
in
in
climate, Quebec
northern nations
comparison,
because
it
considered belief that Que¬
destiny lies in the full ex¬
ploitation of her own vast north¬
treasure
ern
world
employment with Mr.
was
being located near established
mining communities, while ours
in
are
the
determine
we
suited
best
to
our
Iron
so,
herculean
task,
of
iron
steel
and
hence
and
modern
of
the
industry.
making furnaces of the
alone
States
consume
immense
house.
supplier
Already a
vital
of
although
I wel¬
millions
direct
grade,
shipping
production, and with the
ore
have created
we
in
the
Private
initiative,
demand
the
and
year,
such
competitive with other new
sources of ore in
South America,
Africa and Asia.
a
be, has been the prime mover at
Steep Rock. And Steep Rock is
now on the high road to success.
But
business ventures,
new
espe¬
cially in the mining field, involve
heavy risks, and for every success
like Steep Rock, there are bound
to
fail
to
such
is
Distance
a
matter of serious
laying the plans
in
development of the northern
areas of the Province of Quebec.
for
instance,
for
ince,
Montreal
the
offer
Again
Winnipeg.
to
I
example of Steep Rock
that
From
products
early as¬
executive
natural
the
on
development of
it
and
illustrate what
pan
to justify government co¬ company's headquarters ought to
operation with promising new en¬ be located at Cleveland, the ac¬
terprises, and ample returns to the knowledged iron ore capital of
entrepreneurs.
The
Others of our eastern
the world.
Province
of
Quebec is
the threshold of tremendous
on
iron
friends urged
the establishment of
elaborate head office in Toron¬
an
was
giants of his stature who led the
United States to
ness.
Since
came
under his
never
the
missed
industrial great¬
time
that
I
opportunity
the northern
of
Canada
to
turn
her
cut
off
that she could occupy
Timmins
from
the
and
our
major
iron
nected
her de-
producer,
also to be
soon
con¬
by highway. Our original
mine, which has been in volume
Mr. Eaton at meeting
of the Quebec Board of Trade, Quebec
City, Dec. 4, 1952.
Other
American
new
production for several years, will
be
joined in the near future by
be
Ore
the
to
moved
of
of
sources
iron
there.
ore
One
undertook
of
four
to supply the funds for
large-scale investigation south
years ago
a
of the
gave
the speculation
but
area,
up as a
fail¬
after the expenditure of half
ure
a
Hanna-Hollinger
million dollars
period of
three years. In the past two years,
my son and I and our associates
over
and
tary
searching
in time, a
are
established
companies
our
Iron
Quebec and,
number
will
of
groups
northern
ore
connected with the outside world
address by
Supplier
outside
Today, Steep Rock is Ca¬
by rail and
i *An
of
scene
action
these
shares.
The
offer to sell
an
offering
These securities
nor
made
is
arc
a
only
offered
as
solicitation of offers to buy
by the offering circular.
a speculation.
any
of
a
I SSUE
the
discovery of
tonnages of medium
very
and
posits
299,970 SHARES
ore near
have been conducted. The de¬
ore
engineers,
dents,
chemists
in
live
of the
MAINE SLATE PRODUCTS CORPORATION
are
Common Stock
Price $1.00
so
located
that
water
-
per
follow.
First, however, extensive
facilities and elaborate and
expensive
processing equipment
and machinery would have to be
installed
Share
make
W
to
participate
concession of 20c
;
per
The financing of this
with
to
it
'
it
CHARLES J. MAGGIO, Inc.
Meinbers, National Association of Securities Dealers, Inc.
I
120
BROADWAY, NEW
YORK, H.
Y.
•
REetor
the
2-8071-2
is
ago
there
now
was
fine
a
which
the
Steep
facilities
fering
Let
and a vast territory of¬
most profitable market."
a
pay one last compliment
climate, to me the most
invigorating in the world. Both
to
me
your
and
winter, hundreds of
thousands of Americans and Cana¬
dians
other Provinces flock
from
to Quebec for their vacations. For
more
than
dren
and
15 years,
then
my
first
chil¬
my
grandchildren
have
the
joined me in schussing down
skiing slopes of your Province
the
December holidays.
people do not overlook
opportunities for wholesome
during
Your
the
own
recreation afforded by your won¬
winter weather.
There is
derful
Quebec Is
Richly
a
Rich Empire
endowed
resources
with
natural
and possessed of an able
and industrious
ince
of
people, the Prov¬
Quebec is destined for a
brilliant
economic
future.
The
creation of vigorous new commu¬
nities,
all the way to the far
limits, will increase the
business of Quebec City, will fur¬
nish a constantly expanding mar¬
ket not only for manufactures, but
northern
also
for
the
of eastern
farm
products of all
Canada, and will make
rich
a
Westheimer & Go.
Rock
wilderness, there is
of 3,000 people,
to 25,000 before
town
will grow
many more years pass.
new
communities
can
Many such
be
created
in northern Quebec.
Consider
spirit.
then how much
of the time of women is occupied
with pots and pans,
the lives of
how much of
Sam B. Gertzman
is spent in pro¬
men
viding housing, clothing and food.
(Special to The Financial Chronicle)
project
cept
technical
in
before
can
may
realization
and steel
in the
or
the
to
blast
conti¬
and
osophy, art and architecture, coin¬ nut Street, members of the New
cided
with
Athens'
period
of York and Cincinnati Stoct
Ex¬
greatest material prosperity, based changes. Mr. Gertzman was for¬
bustling trade with the far merly manager
of the trading
on
corners
problems of
ore
"beneficiation,"
the
trade,
are
as
re¬
our
scope
of the then-known world.
of the
under¬
Your wonderful
combines
in
an
toric
bring travelers from far and
It has been my custom to
sail from Quebec on trips abroad
wide.
so
course
are
currently
of expending $1,000,-
culture
Your his¬
ments
opportunity
iron
and
manner.
buildings, parks and monu¬
that
American
City of Quebec
commerce
admirable
be obtained from the
companies
department for A. & J. Fra^k Ck
Quebec City Combined Commerce
With Lester, Ryons
and Culture
Ungava Bay
go forward. Some con¬
of the
taking
ore
of Pericles in Ath¬
CINCINNATI, Ohio — Sam H.
the era of the greatest Greek Gertzman has become associated
masterpieces of literature, phil¬ with Westheimer & Co., 326 Wal¬
investigation and study
called
quired
raw
for
of
processing,
•I
the
desirable
Further
of
issue has been
treat
England
nental Europe.
a
share.
arranged through the undersigned
J
skilled labor, cheap power, excel¬
lent water and land transportation
ens,
to Europe would
logical route for them to
furnaces
2
the
The golden age
the
power
invited
of
by the presence of these able men
and their wives.
Where 10 years
transportation
are
assured
the civic and cultural life
community is strengthened
area;
be
Dealers
is
best advantages, such as abundant
of the needs of the mind and the
for
Ungava
Bay. Costly pilot plant tests of the
'
center
Perhaps you may feel that I am
laying too much stress on the ma¬
terial side of life, to the neglect
lower grade iron
,r.
progressive
a
industrial
and
industry
new
superinten¬
geologists and
have supplied substantial sums to
Canadian geologists and prospec¬
large
NIW:
own
possibilities for the
trade,
commercial
your
"Businessmen will
magnificent harbor
with extensive
maritime
treasurer,
tors
This advertisement is neither
a
Steep Rock
un¬
limited natural wealth to account
so
our
nada's
the statesmen and business¬
men
here
wilderness, I call
attention to
world.
to
urge
be done
can
Mayor Borne:
find
S. H. Gerlzman With
first
influence, I have
an
developments. I have
ore
distinguished partici¬
Monseigneur Vandry,
your great Laval Uni¬
of
rather than remain remote and the Province
Quebec
Secretary of the Treasury George,
inaccessible in London.
empire in her own right.
Humphrey have been playing such
Iron Mines in western Ontario.
Our Steep Rock head office is
an important part.
Ten years ago, Steep Rock was a
located at the mines.
Our presi¬
lake surrounded by moose pasture
Quebec Can Become a World
dent and general manager, secre¬
in
your
and
resources,
aluminum
of
as
the
To
based
was
asbestos,
as
and
was
in
the
no
more
delightful and thrilling
the
insisted spectacle than the throngs of gaily
In evolving
organization
of
guidepost.
a
as
is from
it
as
to or Montreal. The argument was
visited
advanced that many of the world's
properties of the Iron Ore
newsprint, she is no novice in
Company of Canada, and I should great enterprises at distant places
sociation, I obtained a broad per¬ manufacturing
and
marketing.
have
been
successfully directed
like to pay tribute to the courage
spective of business and industry The sound experience she has had
from London. My answer to that
and resourcefulness that are being
with these commodities has paved
that has had a profound and last¬
was
that they would have been
put into that joint Canadian and
the way for rapid and
orderly
ing effect on my entire career.
American undertaking, in which conducted with considerably
procedure with new products.
Mr. Rockefeller's business life
your
distinguished citizen Jules greater success had the officers
Rockefeller.
pants
Rector
home
One of the most cul¬
and
tivated
Common¬
summer
Steep Rock company, I
dressed Quebec youths gracefully
that we follow the philosophy of
likely prospects that local direction and control. Some gliding down the sunlit snow-cov¬
ered hills on a Sunday afternoon.
out. The hazards are of our friends thought that the
other
be
Nova Scotia.
summer
It is as far from Montreal to the
should northernmost outpost of the Prov¬
it
as
my
opment of our country and where
a
consideration
Canadian
wilderness.
at
is
coopera¬
tion of the Federal and Provincial
Governments,
new
industry
wealth,
likely to go higher. England ur¬
high Northern Quebec Will Have Many
New Communities
into
of
reserves
of the British
versities
surely to become one of the lead¬
ing factors of the economic devel¬
130,000,000 net tons of iron
of dollars at Steep Rock to bring
our
to
following statement of
material
basic
the
is
ore
foundation
ore
We have spent
cultural
life.
it was my privi¬
entertain the Executive
your
our
Bay area.
gava
about
Canada's
to
wilderness.
absolute
process
needs, it is
United
Positive
a
prosperity
a
comed it.
resources.
chosen
bec's
good fortune to find
my
immediate
this
is my
native of Quebec
fans,
richer
have
for
fectionately called by the Cleve¬
land
Makes
and second
case.
own
Canada's
it
population among Canada's 10
Norway,
cite my
can
well
clue
people, Que¬
4,000,000
Provinces.
ment.
may
a
600,000
bec ranks first in
to find
able
to
world
for
the
reason,
With
United
the
Ore
At the time when I first turned
coming into her
now
expansion
in
curring
forced
make
ores
of
The steel
Prosperity
part of Canada is the re¬
no
markable
often
as
not
as
In
yours
were
to
of
women
American
gently needs iron ore as do Hol¬
my hand to Steep Rock, in the
own.
The
most
significant eco¬
land, Belgium and France. There
'forties, Canadian interest will be a world market for the
nomic phenomenon in the world early
in iron ore was negligible. The
iron ore of Quebec provided the
today is, in fact, the industrial
project appealed to me as a posi¬ costs of
revolution that is taking place in
production and transpor¬
tive opportunity to contribute to
tation
in Quebec can be made
Canada.
Canada is
the young men
and
tem¬
comfortable, and
going forward full
was
Into Its Own
prosperity? In
my
Comes
Economy
a
was
Contribution
en¬
material
joy
Canadian
ores of
Michigan. These
have the advantage
and
of
richness
hope that our large versity.
quantities of easily mined ore will
For an apt description of the
be the basis of an important new commercial
attractions
of
your
full industry in the far northern Un¬ city, I cannot improve upon the
speed.
Iron
The
Council of the Association of Uni¬
35 below. Everyone
was
job
everything
tion.
and daughters a ready oppor¬
tunity
January, I spent
the
on
Canada make accessible to all her
sons
year,
I
there last
first rank na¬
a
as
lege
Minnesota
the
day out of doors when the
a
served
winter
always make a point of
there during the coldest
part of the winter. While I was
world
a
the
being
great center of com¬
and agriculture.
and Quebec City
ore
become
can
there
ing the lower grade iron
Nevertheless, when
and
positive contribution
a
Holds Quebec
in
swift
is
The
set
Three years ago
regular intervals around the
significant economic phenomenon in the
prosperity.
slackened
have
we
is
our opera¬
000.000 to develop commercially
practicable methods of beneficiat-
months. Our pumps operate at 50
below zero. I visit Steep Rock at
today." Tells story of Steep Rock Iron Mines, in Western
Ontario and other similar developments, and asserts explora¬
to
at
that
out¬
our
a year.
climate
handicap to
Steep Rock.
pace
world
tion of her iron
winter
of
serious
not
and prosperity,
the industrial revolution now taking place
calling attention to Canada's recent
In
Severity
no
tions
Canadian-Born American Industrialist
mines, to bring
more
put up to 10 million tons
that my family
could have the
appreciate the
beauty and the glory of your an¬
cient
City. I
to
am
also aware of the
(Special to The Financial. Chronicle)
LOS ANGELES,
Desbrow
Lester,
has
Calif.—Paul H.
joined
Ryons
&
the staff of
Co.,
623
South
Hope Street, members of the New
York
and Los Angeles Stock Ex¬
changes.
Mr. Desbrow was previ¬
ously with Morran & Co. ar:d HiH
Richards & Co.
Volume 176
Number 5176
A
.
.
.
The Commercial and Financial Chronicle
Re-appraisal of Inflation
(2229)
to
Foreign Aid Has Not
American Assembly meeting at Columbia's Harriman
Campus
finds immediate inflationary
dangers have moderated, but first
step toward international monetary stability isl internal control
of inflation in individual countries. To
supplant aid with trade,
The
American
Assembly's
ond
meeting on
monetary policies
Dec.
5-7
at
Arden
the
Harriman
(New
York)
U
i
n
Attended
70
our capacity to produce as well as to
Points to large European investments abroad prior
to
1914.
to
aid wisely.
We
We
were
were
market
and
operations
with
over con¬
residential
tend
to
an
aid
grants to
some
$110
It
has
This
been
re¬
rate
paid.
national emergency. It was agreed
that these selective credit con¬
it to be repaid.
trols should be suspended
prompt¬
During
ly
pa
if
such
is kept busier and more prosper¬
ous because of its trade with
us.
allies
our
aggregate total of
billion.
not
and
I
doubt
we
effect
the
in
of
productive
economy is
doubt of greater importance in
no
international
expect
high
a
American
affairs
than
under
the
largely
are
the
us
in
during the century
ways
1815
aid
which
which aided
1913,
our
international
shrinkage. In pursuing these
times, we require huge loans, which
objectives, primary reliance should policies have required us to ex¬ imports and the rest of the world ured on the
At
mortgage
credit used only at times of clear
from
1913, which exceeded U. S. foreign outlays.
Plan
countries
various
from
countries
our
pay
sumer
and
men
women
The
received
being able to
open
by
sig¬
nificant.
same
Since
ther
selective credit controls
ersity.
v
for
One additional fact may be
new
a
America.
other countries, we lifted
be placed on the discount rate and
Campus of
Columbia
are
Marshall
Reserve is to protect the purchas¬
ing power of the dollar from fur¬
from
on
area,
we
along
Prominent industrialist contends, in undertaking burden to aid
consume.
In this
course
have
and
held
House
world and at the same
ing at home.
moving
By HARRY A. BULLIS*
important function of the Federal
great deal of aid to the
time enlarge our standard of liv¬
Chairman of Board, General Mills
sec¬
inflation
was
a
rest of the
Weakened Nation!
advocates reduction of tariff rates and
procedures, with in¬
creased private investment abroad.
Urges reform of U. S.
debt management.
give
13
that
used
fortunate in
back all of the
large
basis
of
as
meas¬
values
of
those times, and which, calculated
in terms of today's price levels,
equaled
amounts
annual rate of
far
aid
beyond
the
have given
we
in past years.
tariffs
During the period from 1883 to
1913, the countries of Western
peculiar fact that the Europe were pouring out for in¬
United States, which has poured vestment
in the rest of the
world,
out aid in such huge amounts, has
including the United States,
not been weakened thereby.
If amounts annually equivalent to
anything,
we
have
become 20 billion of
today's dollars. That
stronger. The countries which we
is a large figure compared to our
had hoped to strengthen by our
and
trade treaties.
.
many parts of
the country
and
both
st
seven
gency
parties,
representing
business, la-
by
amounted-
bo r,
International Relationships
farm
groups, Gov¬
to
is
a
Assembly emphasized that
than $35
billion. Carry¬
the first step toward international
ing out inter¬
They have
monetary stability is the internal
national
control of inflation in the individ¬
ual countries.
icies
which should, as quickly
Therefore, when we think of fu¬
possible, be brought to a close
ture
private investment abroad,
for their
The
ernment, edu¬
cation,
and
the
profes¬
Philip
Young
sions, the group re-examined the
findings of its first meeting, held
last May.
In
international
our
and
text
emer¬
conditions, but that stand¬ years the aid
authority for such controls we have ex¬
tended
has
should be provided.
po¬
litical
The
the subsidence of
upon
It
the
financial
economic
relationships
conclu¬ Assembly urged shifting the
of its formal
more
the
pol¬
high
not
stronger. average annual assistance of onedependent in third of that amount since 1945.
become
become
as
good and for
costs
In
Harry A. Bullis
aid
surely
must
have
tremendous
a
have
a manner
which
require such
em¬
sions follows:
aid
effect
on
our
our
undertaking
to
of
the
our
good.
burdens
countries,
capacity to
result
economy at home.
other
we
produce.
of
we
need
to
think
in. terms
even
lifted larger than the best years of
As
the
our
private foreign investment in the
continued high employ¬
phasis from aid to trade. As spe¬
past.
ment and
high wages, we also
The
American economy
The conclusion of the Assembly cific means of furthering trade to
itself
lifted our capacity to consume. It
has
after reviewing economic devel¬ mutual benefit among the
enormous
impact upon the
nations,
J. C.
is probable that the lack of
pro¬
opments since the meeting last the Assembly favored simplifica¬ rest of the world. When our econ¬
duction during the depression of
WASHINGTON, D. C.—James
tion of customs
May was that immediate infla¬
procedures; reduc¬ omy is hitting on all eight cylin¬
the 1930's was more costly in a C. Strong has opened offices at
tionary dangers have moderated tion in tariff rates with due re¬
ders, our trade with other coun¬
but that forces making for infla¬ gard to the effects on American
purely economic way than the 4606 Thirtieth Street, N. W. to en¬
tries gives them great assistance.
tion are still present. It was agreed business, agriculture and employ¬
production which we gave away gage in a securities business. In
that inflation may break out anew ment; reconsideration of the prin¬
■"Excerpt from remarks by Mr. Bullis
In any event, the past he was with Bache &
with any sudden or serious in¬ ciple of quota restrictions on im¬ at the 57th Congress of American In¬ during the 1940's.
we have proved that we were able
ports; an intensified program of dustry, New York City, Dec. 3, 1952.
crease in international tensions.
Co., and R. H. Johnson & Co.
technical assistance accompanied
Budget and Taxes
by increased private American in¬
Strong Opens
effort should be made to balance
vestments abroad; and larger
pur¬
chases abroad by American
the
curement
It
agreed that
was
Federal
determined
a
budget
by
expendi¬
purchases
ture reductions.
The
profits tax should be
excess
allowed to expire and other emer¬
the
increases
tax
gency
Revenue
Act
imposed
of
by
should
1951
IDENTIFYING STATEMENT
pro¬
agencies
where
such
effect savings.
can
This is
A
fects
American
on
culture
and
the
budget.
It was
further agreed that the tax system
should
be
thoroughly re-exam¬
view to removing in¬
and strengthening eco¬
ined, with
equities
a
made
in
eration
the event of
the
Congressional"re¬
review cannot
without adequate
Thor¬
achieved
be
staff assistance.
that
recommend
we
Committees
of
Congress
charged with responsibility for
appropriations set up a permanent
The
Assembly
weak¬
staff
Taxation
Internal
on
—
to
work
agencies
at
budgetary
closely
the
1,250,000 Shares Common Slock
stage
every
the
of
process as well as in its
It
combat
Price
should
to
urged
Administration
business
Share)
recession,
was
promptly set in motion a
comprehensive study of methods
to
per
in
should
recession
the Public; $1.00
per
Share
Standard Sulphur Company was organized
on August 18, 1932, for
producing, selling and exploring for crude sulphur. This
the Company's first public financing and there has hitherto been no
the purpose of
in
is
order that appropriate action
may
be ready should it be needed.
market for the Common Stock,
•j '
Importance of Increased
As of October 27,
1952, the Company had outstanding 1,750,000
Stock, excluding 1,250,000 shares held in the
treasury of the Company.
Productivity
shares
Technological developments,
improved skills, research and in¬
creased capital investment should
be encouraged
presentation to the Congress.
(Par Value 10c
that
agreed
Government
new
with
and
Sulphur Company
the
American
on
take positive action.
that
Revenue
departments
Government
Standard
consid¬
alleviating
business
a
National
joint staff—along the lines of the
joint
They are subject to the registration and prospectus
Information about the issuer, the securities and the
ment.
machinery
the
sell these securities.
Proposed Study
view of requests for funds.
Accordingly,
with
effects
consequent
Control of Government expend¬
itures can be improved by better
ough
to
to
of the offering is contained in the prospectus ivhich must be given to the buyer.
business, agriculture and employ¬
nomic incentives.
for
event
given
offer
business, agri¬
employment"
any
an
circumstances
ens
the conclusion unduly;
also
be
permitted to
the
lapse, as
scheduled, but not at the cost of improvements suggested should be
unbalancing
not
requirements of the Federal Securities Act.
strong minority felt that the
phrase "with due regard to the ef¬
of
Common
to create increased
t
productivity and
Direct
On
the
trols, it
question
was
of direct
con¬
without
impose
stand-by authority to
controls should be pro¬
(Soecial
support
was
expressed
policy which would
burden
of
the hands
reduce
early
and seek to shift
and
maturities
more
of the debt
of
individual
savings institutions.
interest
should be
to
The
Financial
DENVER, Colo.
flexible public debt manage¬
ment
ers
a
Lawrence has
General
into
population
tive.
com¬
to
rates
and
staff of
sen,
geen
to
The
DENVER,
Bachar
if any,
Chronicle)
added
the
to
Reserve
System
is
now
Gearhart & Otis, Inc.
Manage't
Chronicle)
James
—
with
the
cost,
supply
availability of credit and,
conduct
of
its
NEW
operations,
Hamilton
445
me a copy of the proposed forhi of prospectus relating to
Sulphur Company.
Please send
(Special
and
to
WINTER
The
Financial
PARK,
Standard
Chronicle)
Fla.
—
Name
Ben¬
the jamin A. Simms and Charles J.
should Wray have become connected v/ith
—
*
in
H.
Euclid Avenue.
present juncture,
an
NEW YORK
Street.
seek^to promote economic stabil¬
BROADWAY
120
NEW YORK,
YORK, NEW YORK
R.
Corporation,
ity.
At the
F. L. Rossmann & Co.
NASSAU STREET
45
Two With H. M. Grove
has primary responsibility for in¬
fluencing
that will be available for distribution by this firm.
Copies of the proposed form of prospectus may be obtained from:
Monetary and Credit Policies
Federal
publication of this notice is no assurance
proposed offering will be made or as to the amount of securities,
Margaret A.
Financial
Colo.
Management
Grant
The
has become effective. The
Inc., 740 Seventeenth Street.
(Special
Both
maturities
purchase the securities will be accepted until the registration state¬
Peters, Writer & Christen-
With Hamilton
sav¬
shaped to these ends.
—
registration statement covering these securities is not yet effec¬
or sell the securities should be made and no offer
No offer to buy
that the
Peters, Writer Adds
Debt Policy
the
The
higher real in¬
a
entire
ment
that
a
the
continually rising
agreed that price and modity price level.
vided.
for
for
come
ceilings should be removed
wage
but
Controls
M.
Grove
&
Associates,
801
Address
L
'
1
-
|4
The Commercial and Financial Chronicle
(22—
The Future of New York City
J.
which led to the upbuilding of
Mr. ter Kuile reviews factors
York City,
New
and
Income
Tax
finds conditions which impede its
now
K.
(3)
When
Questions
with
—
fall
and
of
Orval W.
independent correspondent banking system, with local
ownership and control, is bulwark against banking monopoly.
the
at
cial
(4)
New
11,
Washington Bridge and the
Bridge,
by
whose
these
5:20
p.m.
j
rh
r»f +h£» Tnctitnto
01 tne lnStllUle
Hell
use
rr,
York
times.
materially
ness.
The Port of New York
are
sibly
at
cara¬
1914.
This
routes,
products
and
of
agricul tu
was
pos-
in the year
prior to the
just
of the first World
was
harbor
the
filled
docks
and
War
r e
mines
great ports
Curtis
Kuile
ter
departed
to
all
of
the
their
that
been
School
New
by
of
is
It
tries.
upon
and the packing houses,
plan was rejected because
ranges
the
seizure of thousands of operators
was impracticable. Let us maintain that spread in the banking
field
and
for ourselves
preserve
security
which
seemingly alone saved the cattle
that
men
factor
of
of this country from confis- *
when Socialism came into power,
There were only five banks to
take over. Let us keep our 15,000
local
and
virile,
banks
This embraces
spread over the great expense of
knowledge
^ree America. Their independence
of local condi-
is the surest guarantee of our free
a
from
Orval W. Adams
strong, and
and
responsibility,
Approved
an
dispatch
of
control
local
Associated
Cleveland
Bankruptcy Referee Carl
to
According
Press
erican
cation by the government. Ponder
well what happened in England
concept
Drop Reorganization
Plan
basic
Am
Otis & Oo. Petition to
has
Eng-
indus-
our
founded
-
destroyed.
and
growth
rapid
Wilfred
A.
be
the
sound
"Investing Today" given at
were
commerce
practically
Lasser
safe just
are
maintain the 15,000
as we
the
with
wars
which
.
no
degree,
must
Univer¬
is guest
speaker in the
sity
May, economist and editor,
shipping from great
European countries like Germany,
France and Italy that have now
been
so
reduced
by two world
helped to build
shipping
its pinnacle
outbreak
harbors,
K.
J.
series
long
so
knncoc
it, in
credited
the
stories
how
York's great-
New
to
sys-
easily through holding com-
operations. We
i.
.
To
small
Taxation, New
tory there
from
banking
Federal
on
and the South can be
expedited with safety and at rea¬
sonable cost, all of these added
many
and
independent
more
tem bas been an integral part of independent banks inviolate. In
our system of free enterprise upon OPA days, when the government
which our economy has been built, attempted
to
seize the cattle
Ar.pmintnnt
,
England
In ancient his¬
van
The
.
pany
Chronicle:
Certified Pubi•
;
complacency toward "creeping socialism."
Editor, Commercial and Financial
Lasser,
through freight to and from New
socalled
safe
Warns against
Research,
Thursday, Dec.
Mr.
Adams, of First National Bank of Salt Lake City,
says
School for So¬
could
modern
up
o
Problems"-
Gate
repeated in
of
t
Year-end
possibly
and
ago
not
be
one
rise
"Your
Particular
on
Reference
of the Erie Railroad to Jersey
City and later the construction
of such important crossings as the
Holland
Tunnel,
the
George
reads in history
about
great cities
like
Carthage and Ninevah, the
almost invariable feeling is that
such things
happened long
the
EDITOR:
Independent
Banking System Be Preserved
"Your
of
Tax," will speak
adjustment of
an
pier rentals, port charges and cost of ship repairs, and
more
expediting of customs and health inspection.
THE
Questions Western Banker Asks
author
Lasser,
growth and may cause its decline. Points out neglect of ship¬
ping and warehouse facilities, and lists as corrective steps.
(1) better management of warehouses and piers; (2) a cam¬
paign to attract commerce to the port;
TO
Answering
Year-End Tax
KUILE*
By CURTIS V. ter
LETTER
Lasser
Thursday, December 11, 1952
...
enterprise system.
The protagonists of nationalizamine,
repeated plagues of
standing in world trade due to 8 that Otis & Co., petition for re- service
to
the
Hon of industry have been remsects, droughts, the change in the decline of their
empires, and organization be dismissed and that maintain those personal man-to- pudiated at the pells; but we must
the course of
a
river
or
a
shift
dictatorships in such countries as the firm be allowed to reopen.
man
relations
between
officers n°t be lulled into complacency
"ui duties or routes, unreason- Russia and the Argentine have
caravan
However,
Federal Judge Em- and clients which are inevitably and conclude the trend toward
able
confiscatory taxa- greatly curtailed the export and erick B. Freed must make the lost when remote or
holding com- creeping Socialism has been artion, earthquakes, one or more of
import business of those nations, final decision in the case.
pany
control is substituted for rested
The ideology which has
^ started to gnaw at But despite the effect of wars
The investment banking firm of local management.
flourished for the last 20 years
the
economic
foundation of the
and dictatorships
the decline in otis & Co
applied for the dis- Th#> inHpnpnripnt svsfpm h-is af
under government sponsorship is
SSM "2? 6Ptwas lt,UnJil thS the Port of New York may be missal after a $3 200,000 court
34 destroyed
us all the benefit? 0^1
® deadly threat to our Ameriwhole
structure
largely ascribed to U. S. Govern- judgment
in
favor
of
Kaiser- niiatP hankim? service
a
nacan way of llfe" Now is th? time
and now nothing remains but a
known world.
ot
[an(j
Yet the exhaustion
ios^
and
Holland
in
have
turn
great deal of their former
a
a
Federal
Freibolin
recommended
,
Dec.
on
ability
tions,
to
efficient
community and
render
and
prompt
.
,
j
on
bureaus
rnent
series
of
ruins
for
go explore. Of
been
many
been
archeologists
our
course there have
of cities having
by a conquering
cases
destroyed
army, but more often the destruction was economic.
economic
All of this may seem irrelevant
to modern people and so it
may
come
as
could
not
surprise to
many
take
a
hi
place
when
have
seized
cotton, rubber and certain other
commodities normally handled in
bulk
great
firms
private
by
business
pycpssIvp
Mnrpnver
tava
turns. Moreover, excessive taxa-
tlon and duties,
and
hlgh port charges
pier rentals, excessive wages
of stevedores, all of these things
have helped to turn away trade
da1
this
which
City of New York. For here history is repeating itself, but on a
wanna
a
because,
Rome
and
been
city
a
wealth,
so
Athens
there
withstanding,
Recently the Delaware, Lackaand Western Railroad took
before,
has
not-
a
and
commerce
of financial experts
specially arranged trip on
group
of their ferryboats. It
never
great in population,
area
was
and
novel
experience.
was
as
"New York.
fitted
out
like
a
on
one
great
The
otis" &
first
a
Co
Corn's
repudiated
derwrit^
uerwriting aeai
tbe
un-
companys
js
pending
stock.
jn the
I-'chance^ Commission
class
you
Photic
Association
Bankers
said'
I
"A
see
ever
nn
spread
buffet
by the historical
p\/pntc
events,
its
tho
the
position
of
great
past time.
2,000
to
It
years
preeminence
attain
and
took
York
Boston
York
1,000
zeniths
of
of
outranked
commercial
Philadelphia
New
activity.
the
>
terns, which, unless curtailed, will
full
to
.
u.
,
A™erican
of state Rlghts than any other
form of caPital concentration."
standing in the securities
inc,l,stiy
tern
is
Ball, Burge & Kraus to
to
survive,
the
from
The
extension
path
nell
Engineering
York
has
Society
Security
and
the
we
business
for
many
con-
£
'
'
r *t
Dac 1a1e952i y-
Wall St. Anchor Club
Building, members of
the New York and Midwest Stock
Exchanges. Mr. Augustus is Manafpr
of the
firm's Munirinal
Dpager of the firm's Municipal Department.
Mr.
Gaither
has
L !L
W!
"
Wall
wat
COmDinat OnS OI Da
g
ithi
spring'up
Street
Branch
18
No.
of
the
Supreme
Anchor Club
of
r^i
%t t
b
America, Inc., has elected the folalareeDor- lowing new officers:
•romu;nations of banking
been
Elects Officers
1)51
if
th
re:sources
SO
—
ru
—
^
fuUdto^fioarcimBlnies1^
" ? g„ ?
„
New York.
this
""a
"
_
very
vciy
interesting
imcicsung
"
terest. It was a most informative
C1'uise and on board the boat
was
»[■
ior
our
has
We
tern
Exchanges"on'jan.T.
Plark
some
has
been
with
the
the
Port
of
firm
has been with the firm
will
Mullaney Wells
to The Financial
New
on
York
page
18
our
Such
has
become
i
of
"
i
associated
Company, 135
The
v
,
*
__
x
Hayden, Stone Adds
to the
With Barret, Fitch
an
KANSAS
...
.
.1
destruction
spondent
banking
.
A
in-
local
into
holding
finally to
lead
of
is
with Barret,
now
of banks Fitch, North & Co., 1006 Baltimore
—
mlh'wrpqt.
Ave:nu^e, members ot tne Miawes
of
banks
would
CITY, Mo—Ralph E.
the
system.
corre-
These
xronno
momnprc
,
r\r
t
,
,
no
stock Exchange,
Joins
Uhlmann-LatshaW^
(Special to the financial chronicle)
KANSAS
CITY,
Mo.
Francii
banks, home owned and home K Justus, Jr. is now associat®d
Burke, Jr. has been added to managed carry out the great con- with Uhlmann & Latshaw 111 W
staff of Hayden, Stone & Co., cePl
°£
decentralization,
the Tenth St., members of the New
PORTLAND,
M.
financial Chronicle)
c•
absorption
dependent
the
!
Harrington',\
°
SJ.
'
,
(Special to The Financial Chronicle)
implica¬
political activity, and the
^companies
(Special
Ir
interests
expanded
for the nationalization
—
with will be intensified.
South La Salle Street.
Brank Grande, W. P. Hoffman &
^°-» Second Vice-President, Jo-
unthinking and unwarranted urge Weaverling
CHICAGO, 111.—John J. Walsh,
m.-owm,
'
.
any
& Company; First Vice-President,
inevitably bring criticism of
tion
Chronicle)
7
that
preservation
the
a
estate
time.
Hme
Joins
(Special
the
Continued
from
T
President, Peter Brochu, AHe^
as
California?
in
understand
must
is
case
banking; there will be
v.iew outboard
members
the
been
departure
delightful, but the
|.'aised in ,Ner York and comes
Hom 3 shipping family. He re-
years.
has
ADAMS
W
"
Mr
During
New
Society of
Analysts, and
engaged in engineering and the
ORVAL
Ter'easurervewillifm
"
"
been
investment
which
f the independent banking welthreat to
future sys-
a
is
system,
several
and return to the American
years,
Commerce
was depressing and
sinister. The writer was born and
with
banking
sorbing as they grow a arge p
tion of
independent banks,
everything
♦The
writer, who is connected
Haiigarten & Co., New York City,
preservation of the correspondent
so much to the economic
turn virility of our great nation,
must
we
monopolistic
have followed for the past
Mullaney, Wells &
other hazards.
buIwark
■^"pend'enTbanking'sys- tributed
?
Jr.
and
a
sgsuist the ever-present danger of
stru^tive
be
actl0n w0 u l d automatically be
interruption
blockades
will
we
SnnVnuTd^mltomaticanv
triP> after tbe delicious luncheon
changed the was oveL an expert on New York
whole
picture,
for
by its use Harbor gave a running commenireight from
the
Middle
West ^arY over a Public address system,
could
be moved cheaply to the telbng about the various docks,
Atlantic Ocean with
very
little terminals and other points of inice
company
doing
create a money and creditmonop- a banking and credit monopoly and
oly more dangerous to and de- at the same time guarantee the
years. The Erie Canal
from
holding
so
claJ Street slip,
not
largest seaport in the country for about 100
was
In
ten', and finally back to the Bar-
years
power
did
and
combines.
far as 96tb Street, crossed over with the firm for some time.
t0 the New Jersey side and sailed
down Past Hoboken, Jersey City,
Blunt Ellis to Admit
Greenville, all the way to Staten
Island- There it crossed over to
Robt. Gtark as Partner
BaY Ridge, sailed past the Bush
Terminal, Gowanus Bay, the At-
commerce.
actually
greatly
in
delicious
llP alonS the Manhattan shore as
has
Babylon about
domination
New
most
imaginable. The
boat left from the foot of Barclay
most
and Rome
their
the
New
rapid of
anywhere in any
city
of
Ameri¬
«,ao
mStreet nn t.hp Hudson River sailer!
York to
Street on the Hudson River, sailed
of
probably been the
any
of such
measure
rise
one
luncheons
farsighted
whicb is
jf Judge Freed accepts the
a
_i
banking
revoke Ot
York
l
and
"to lca" eanKS a,re,lnaePenaenl,oanKS! strengthen the independent bank-
action
hat-check girl on a ferryTwo Partners
local ownership and local
or have
adopted it as their boat?
Wel1 there were two of
home—and they are often the most tbem
011
board, complete with
CLEVELAND, Ohio- On Jan. 1
must be fought on
enthusiastic citizens—usually feel uniforms, coat racks, checks and Albert A. Augustus, II and
Paul.,■thp'SatP ^PveV'arweil a7'on the
that all this
size, business activity a11- In the uPPer cabm tables had H. Gaither will become partners National level what will it Drofit
hppn
PrPrtpH
and
thpm
in
Roll
R,,rcro
Sr
K-vonc
TTnirvn
^ailOndl leVfcU. Wlldl Will 11 piUlil
and
"white lights" have
always been erected and on them was in Ball, Burge & Kraus, Union
f.
..
born in New
were
to rally our forces and unite all
.
®rae^e^Saj^ty of thS !5,000 Amer-
nrnr^Hintfs
cnrno
tirme
w
+p,
^ °bjf
as
involving saie or
automobile
There
+
centra ization o co
cang -n a drive to nmit, through
a? HnnSnn tJx^s fn C<um
Legislation> the further encroach£ Houston, i Texas American
in 1937 as
t
f centralization of branch
preSident
of the
!nc.
that
stock
i
1
tl0n,al Sf
of
out
claim
a
3
re-
was
boat
floating restaurant. Did
Persons who
Kaker-Frazer
it
ret
case
recommendation of the referee
and dismisses the reorganization
A Feir.yboat Excursion
far greater scale than
against
Torn
^e'
standing of this
reat cit
and age is actually in the
process
right here and now in the great
ever
Fraver
entire foreign trade in copper,
Maine—Lawrence
477 Congress Street.
enemy
of monopoly.
alization
of
banking
The nationcould
come
York
and
changes.
Midwest
Stock
Ex-
Number 5176
.
.
.
The Commercial and Financial Chronicle
During the past 60
years,
Philco Corporation has enjoyed such spectacular growth
T
that
today it is
a
of
K
■
'f-
■
■
quality products for the home and industry.
Foundation for this tremendous
in advanced scientific
and
i
world leader in the development, manufacture, and distribution
research, and the constant development of
marketing methods that
Leadership is
television manufacturer
famous Philco
.
year
after
year
new
manufacturing
have raised the standards of the entire industry.
Philco tradition. Here is just part of the record: World's largest radio and
a
.
growth has been the pioneering spirit of Philco
.
leader in
room
air conditioners for 15 straight years
...
creator of the
Dairy Bar Refrigerator, by actual sales records the most wanted by American
Housewives in 1952
..
.
new,
exclusive achievements in electric
ranges
and home freezers
pioneer in the development of microwave relay and other communications equipment...
vital research and
Yes, these
are
production for the government's defense
the fruits of Philco leadership
..
.
program.
leadership that is constantly
expanding the frontiers of better living.
On
this, its 60th Anniversary, Philco reaffirms its policy of ever-broadening the
horizons of scientific
to the
,
research, to bring the highest quality, the most advanced products
public and industry
TELEVISION
•
..
.
RADIO
ELECTRIC
ELECTRONIC
constantly fulfilling the responsibilities of leadership.
•
REFRIGERATION
RANGES
PRODUCTS
FOR
•
AIR
•
HOME
FREEZERS
CONDITIONERS
INDUSTRY
AND
ARMED
FORCES
16
-
Continued
from
page
9
/ /'
.
..
S.
Forecasts Continued Good Business in 1953
Weinberg Opens
good enough unless he has an un¬
nancial
and
structure
is prepared
explain it to his customers and
his
exployees.
In the past,
few
who
have
there have been too
bankers
this
over
had
country
comprehensive
a
understanding of our economy.
Now, how can bankers acquire
enough
economic
understanding
and
interpret it to the public?
Tnere are many ways of doing it.
essential
is
banking
responsibility of
while vis¬
partment of Monetary Policy to
the president of one
study the impact upon our econ¬
of tne large banks of the country,
omy of such factors as
govern¬
he
told
me
of
his
amazement
ment
expenditures,
government
when
he
of
discovered
the
woeful
understanding among the
officers of his bank regarding
the
rise in value of the Canadian dol¬
over
our
realization
The
dollar.
own
him
to
came
that
if
stand
S. Weinberg & Co., 60 Wall St.,
and
ton
money and credit supply, and the a mining and oil stock department
impact of selective credit controls under the management of Irving
of
management
an
Appoints Three V.-Ps.
_T
has announced a^ointmen
Overseas Organ
bank
enlarged
and
to demand
educational
an
structure,
a wing
that will include
one
for
bosses
more
economic education. We
lar.
The
have
a
turning
bankers
than
soundness
just in the foundation stage,
and
but
I
the
the
the
presidents;
of
of
that
we
are
on
tremendous
a
educational
bankers.
There is
ance
son,
tee
a
danger that
facilities
our
edu¬
be
ex¬
will
without
adequate guid¬
and planning. For that rea¬
the Administrative Commit¬
of the American Bankers As¬
service
are
who
and
will
income
be
trust for
on
Stonier, of a plan for the develop¬
ment of appropriate curricula for
economic study.
These findings
chasing
will
the
banking
made
school
available
all
to
leaders.
tion has additional plans that
contribute
It will
to
will
banking leadership.
a
Department of
establish
kWHUUHHUWHW
city's
in
branch
National
of
charge
in
Vene-
Caracas,
has served in five National
branches during the
City overseas branches during the
zuela
citv
nvprsens
the
held
in
to
in
the
protect
pur-
of their dollar.
the
made
k;
X,:-
,
Christmas Trade
May
Equal Record High
The
value
in
sales
the
of
department store
States re-
United
last
25
add
to
increase,
says
the
Alexander
Hamilton Institute. As compared
in with sales in October last year,
.years
assets
and
usefulness
our
showing more than usual seasonal
sales in the
same
month this year
showed an increase of about 6%.
This increase, however, was not
sufficient
to
bring
the
total
for
will level
off later in the year as the high
point
in
defense
spending
is
greater
public
ac-
the
first
Scott
wholesale
Average
—
commodity prices are expected to
show a moderate decline for the
elected
were
63
Wall
the
Street,
firm
announced.
has
Cluett
Mr.
Incorporated,
New York City,
been
Manager
of
the
syndicate division since
whole — with chief
weakness
in
agricultural items. July 21, 1948 and, except for four
The
Bureau
of Labor Statistics years of military service, has been
wholesale price index will prob¬ identified with the Syndicate and
ably decline 3-5% during the next Sales Divisions since joining the
12 months.
On the other hand, organization in September 1935.
as
year
the
a
BLS
(cost of
price
consumer
index is expected to edge
living)
slightly higher in 1953 due mainly
rising rents and costs of mis¬
to
Profits
Dividends
and
Total
—
corporate earnings next year are
expected to
results.
primarily
5-8% above 1952
run
increase will be due
The
to
relief.
The
expire
June
profits
excess
is
EPT
tax
scheduled
to
is expected
30—and
be
to
substantially eased even if
continued by Congress. Full year
corporate dividends are expected
to show
8-10%
an
payments
—
gain
1952
over
all-time
new
a
high.
should
reach
1953
ingot
are
the
93
will
controls
they
ended
advances
be
controls
end,
out
next
in
1952.
million
senger
year
be
5.6
Output
of
pas¬
expected
is
cars
should
against
trucks
and
cars
Buying
De¬
1936.
municipal division since
has
and
1951
identified with
been
the
Municipal and Canadian Divisions
formation
since
the
pany
in June
time he
was
of
the
com¬
Prior to that
1934.
member of the staff
a
National City Company of
York.
of The
New
Central Nat'l
Corp.
Elects D. E. Peiser
Donald
Assistant
Peiser
E.
elected
was
Vice-President
of
Cen¬
National
tral
Park
Corporation,
100
Avenue, New York City.
Kidder, Peabody Open
and
Automobiles—About 6.2 million
new
tile
March
Mr. Walsh has been Manager of
the
San Francisco Branch
moderate.
turned
in
zation
by
selective
after
will
be
price
Some
probable
but
with
partment since joining the organi¬
tons
million tons
produced in strike-depressed 1952.
Civilian
supplies
will
become
progressively more plentiful, and
mid-year.
of military service, has been
years
output
110-112 million
compared to
CMP
has been Manager of
public utility division since
1947 and, except for about four
which will lift dis¬
to
bursements
Mr. Judy
the
identified
cellaneous items.
to
rise
from 4.4 million this year to about
10
new
three weeks of Nevember indicate
Walsh
Vice-Presidents of Har¬
Assistant
SAN FRANCISCO,
Calif.—Kid¬
& Co. have an¬
opening of a new
office in the Russ Building under
the
management
of Arthur A.
Peabody
der,
the
nounced
Mr. Laibly formerly was
Laibly.
associated with the
of Kidder,
J. H.
Chicago office
Peabody & Co.
Remington With
Burgess & Leifh
to
the past.
Cluett, John B. Judy
M.
John
and
riman Ripley & Co.
Prices
horizons are a chal- the cumulative total. The prospect mand will be good, but sales con¬
ditions will become increasingly
banking leadership, is not too bright that this decrease
Bankers must develop a skill and will be overcome by the end of competitive.
training undreamed of in days of this year. Returns for the first
Building—Volume of new con¬
These
l^nge
Ripley Go,
Elects Three Officers
W.
Business
policies.
months of this year 5 million in 1953. Truck produc¬
ceptance of bankers as sources of up to the corresponding figure tion should about equal the 1.2
economic know-how and know- for last year, and the period million this year. Car prices will
why.
ended with a decrase of 1% in not change much next year.
De¬
the
Harriman
confidence in Washing¬
more
Steel—Total
steady
building of public acceptDuring the next 25 years,
through
.
They are asking covered in October from the setreceptive to, informa- back in September, with sales
have
must
we
n0w
banking
upon
dollars
handilng of their
the
ton
bank
a
our
the
power
progress
ance.
Central and South
America since 1920. Mr. Swinnerin
served
them.
Bankers
in
The American Bankers Associa¬
a
dependent
from
how
be
or
bank
now
tion
Harold
had
never
into
der
Dr.
all
coming into our
trust depart¬
ments. There is an ever increasing
number of people in this country
banks
are
of
boards
mean
the need for
or
for, and
guidance
I
who
sociation has just authorized spe¬
cial committee consideration, un¬
the
the
of
just
mean
and
1937
since
Chile,
Santiago,
has
past 36 years.
People
account
cational
panded
by bankers I don't
officers.
for
facilities
other group,
any
chairmen
develop¬
ment in the number and quality
believe
of this
country
greater opportunity in rethe nation to financial
are
verge
arms
reached.
and
National City Bank
more
increased
of
new
that New York City, members of the
debt, extent and type of taxation, New York Security Dealers Assothe
extent
of
foreign aid, the ciation, announce the opening of
debt
bankers
show
or
one
highs in personal
income, ending of most controls,
output,
Irving Stein
upon the economy.
Stein, formerly of Stein & Co.
didn't under¬
This new department will not
interest, we
be
an
investment
department.
could
not
expect the public to
Rather it will be of help to Asso¬
understand
the
principles
that
ciation committees and to its in¬
govern their free economy. That
dividual members and to those
bank
decided
to
do
something
who
represent
the
Association
..
.
n..r ~
.
» ATqt„
about it.
The
two
top officers
before Congress in the developThe National City Bank f New
assumed the responsibility of de¬
ment of information and opinion
-°^T
veloping a
thoroughgoing pro¬
on
monetary policy and its pracResident Vice- es e ts,
gram
for their entire staff to¬
tical effects upon banking.
J? the bank s
zaward an understanding of the fac¬
•*T
,
.
s
tion. They are: John B. Arnold,
Now to summarize.
tors affecting our economy.
jn charge 0f the bank's operations
Business leaders over this counHere is another source for ac¬
jn Argentina and Uruguay; Joseph
quiring economic insight: Bankers try are realizing their responsi- p. Dawson, in Chile; and, Chester
bill ties for
are
improving the eco- T. Swinnerton, in Venezuela,
starting to school again. In
of
our
people.
banking, we now have 26 schools nomic literacy
Mr.
Arnold
has been
in the
for educating bankers at all levels. Bankers must visualize their part bank's Overseas Division 22 years,
The big job now is to convince in protecting the value of the dol- Mr. Dawson has been Manager in
important
good
stimulus
the
with
lack
lar
against any big new round of wage
1953 will be
boosts next year. Unemployment
for business.
will remain low, and the supply
Activity for the full year is ex¬
of
skilled
workers
will remain
pected to show a moderate (3-4%)
tight.
gain over 1952. Activity will rise
gradually in the first half under
Business—The year
another
It will be the
this new De¬
Here is one: Recently
iting
than
pro-labor
attitude.
special Annual Outlook rather
issued Dec. 8, the United This will have restraining effects
Business Service makes the fol¬ on unions. Wage controls will be
ended.
Prospects, however, are
lowing forecasts for 1953:
its
In
Report
chartered
the
to
system.
Washington
Expects business to taper off later in year as high
point in defense spending is reached.
policies.
to
that
activity will rise gradually in
ending of most controls and more confidence in
banking thought and action in
this
important area of finance.
Our monetary policies have had a
far reaching eifect not only upon
commodity prices and volume of
production and employment, but
upon the operations of the banks
themselves. Such policies also af¬
fect the banks' ability to attract
and maintain the private capital
our
says
under stimulus of increased arms output,
first half of year
Monetary Policy to give direction
nationwide fi¬
derstanding of
Service
United Business
Dept. Under Stein
Financial leadeiship
to
Chronicle... Thursday, December 11, 1952
The Commercial and Financial
(2232)
(Special
to The Financial
Chronicle)
struction in 1953 should total about
PROVIDENCE, R. I.—J. Herbert
One of the most important con- that sales for
the month were $33 billion against $32.5 billion Remington has become associated
cerns should be to train
men for
lower than a year ago, and it is this year. Residential outlays are with Burgess & Leith, Hospital
banking leadership—leadership of Questionable whether Christmas likely to be off about 5% and Trust
Building.
Mr. Remington
a quality sufficient to
building
down
15%.
understand trade at the best will do more industrial
was formerly Providence manager
and cope with the demands of our than equa1 last year's record high However, utility outlays will show
for Coburn & Middlebrook Inc.,
a
10% gain and public works ex¬
vast
and
confusingly
tangled December figure,
and R. H. Johnson & Co.
penditures a 5% increase. Com¬
economy.
I have full confidence
that
bankers
will
continue
lic
mercial and institutional construc¬
to
strengthen their position of pub¬
trust.
Miltendorf, Niehoff
tion
V Ps. of Weil, Roth
With Reid, Higbie
rSnpcial
to
The
DETROIT,
CINCINNATI, Ohio
—
John
N.
been
Campbell is with Reid, Higbie &
must carry on
I
of
Company,
Dixie
bers
of
Ford
the
Building,
Detroit
mem-
Stock
Carl R.
Mittendorf and Karl Niehoff have
Financial Chronicle)
Mich.
—
Ex-
change.
appointed
The Weil,
have
been
year.
Building.
associated
of
curbs,
more
areas
Retail
are
will
next
Trade
be
ended
Full-year 1953
expected to reach
$170-$172
the
firm for many years.
billion
a rec¬
in
1953
ables should be up
4-5%, with soft
goods sales showing
a
slightly
smaller gain.
Retail prices will
tend upward in the first
Four With
ST.
LOUIS, Mo.—Lawrence D.
Boyer, Helga K. Moore. Alfred S.
Rosser
and
Robert
With Collin, Norton
Slay ton
(Special to The Financial Chronicle)
L.
have joined the staff of
Thompson
(Special to The Financial Chronicle)
TOLEDO,
now
has
Ohio—Carl
become
R.
affiliated
Collin, Norton & Co., 506 Madison
and Midwest
half, but
likely to weaken later in the
year.
Urban
trade
prospects
Stock Exchanges.
keen.
City
of
will
have
join
a
new
Vice-President in charge
as
has
credits
and
loans
He
Dec.
on
connected
been
with
15.
the
Guaranty Trust Co. of New York,
the
First
National
Bank
of
Ho-
boken, later merged with the First
National Bank of Jersey City, and
the
Reconstruction
Finance
poration, where he is
as
Manager
of
the
Cor¬
serving
Philadelphia
now
agency.
R. E. Evans Adds
(Special to The Financial Chronicle)
SAN
Labor Conditions—The
ministration
Batchelder will
are
Kal- brighter than rural. Trade buying
will
remain
conservative,
and
with
competition will continue to be
Slayton & Ave., members of the New York
Co., Inc., 408 Olive Street.
are
B.
the First National Bank of Jersey
year.
—
Join Bank in Jersey City
Harry
in
against an estimated $165 billion
Both this
year. Sales of consumer dur¬
with
H. B. Batchelder to
10-15%
gain next
Costs will show little change.
a
controls
ord
ending
by
show
Rent
Vice-Presidents sales
Roth & Irving Co.,
Terminal
aided
should
Ad¬
neutral
DIEGO, Calif.—Joseph P.
Rockwell
is
now
R. E. Evans &
connected
with
Co., 202 Broadway.
Volume 176
Number 5176
.
.
The Commercial and Financial Chronicle
.
(2233)
supervision
Robt, Toolan With
the
of
Farm
Credit
Administration, which" is under
general supervision of the
the
Wainwright, Ramsey
Robert
E.
has
Toolan
Equip. Tr. Glfs. Offered
Elected Directors
Halsey, Stuart & Co. Inc. heads
become
Street,
70 Pine
consultants
on
municipal
fi-
nance.
C.
Albert
President
Boston
McMenimen,
V i
Comptroller
and
Edison
Company
an
underwriting
group
which
yesterday (Dec. 10) ofered $4,440,of 000
Chicago, Rock Island and
and Pacific RR. series O 2%% equip¬
c e-
George K. Dorsey of Reynolds &
Mr.
Toolan,
formerly
i n
municipal
the
bond
depart¬
ment
of
the
Co.,
Philadelphia,
elected
directors
of
have
been
International
2.90%, according to maturity. Is¬
Wendt,
Jr.,
C
President.
of
yield
the
from
2.15%
Boston Ins. Trusts
certificates
Tenn.
—
authorization
is
sub¬
by
the
Interstate Commerce Commission.
-
NASHVILLE,
to
Boston
Certificates maturing on or after
July
1,
1962
will
be
redeemable
1,
1958 at the
Insured
municipal
an
bond
fices in the American Trust Build¬
option
ing.
The issue will be secured by new
for
seven
E.
Toolan
M
u
i
n
of
the
R.
are:
Slock
under¬
W.
Co.; L. F. Rothschild &
Co.; Freeman & Company; Ira
Haupt & Co.; The Illinois Com¬
Goodbody
Being Offered
PressTellier &
&
licly "as
a
Co.
are
offering pub¬
speculation"
c
vices, Inc., of Brooklyn, N. Y., at
five cents per share.
The net .proceeds are to be used
working capital and
of operations.
He
is
graduate
a
University
University
of
The corporation was organized
Goodbody & Co., 115 Broadway, in Delaware in February, 1951, to
York City, members of the manufacture
and
develop
elec¬
New York
Stock
devices
and
Exchange, on tronic
component
Jan. 1, will admit Hubert K. Reese parts for
military and civilian use.
Trusts, Inc., is conducting
investment
business
from
of¬
and
on
after
of
the
Jan.
railroad
company.
to
limited
Rushton
partnership. Joseph A.
and
Robert
general partners,
on
The
the
Goodbody,
the
date
same
corporation
has
manufacture
of
School
will become limited partners.
ture of selenium
of
{. The firm of Wainwright, Ram¬
&
sey;
Lancaster
palities
specializes
states
and
as
The
munici¬
fiscal advisors.
as
he
IBA
Meetings Are
CHICAGO,
ment
111.
Bankers
America
will
Association
hold
its
guards
»s
U
twice
"is
The Invest¬
—
yeasf
v.
Announced for 1953
age
of
winter
T»
meeting
February 13 and 14 at
Edgewater
Beach
Hotel,
Chicago;
a
whiskey
maker, ycast
the
■"
The
held
Spring
-May
brier
meeting
13-16
in
will
the
Hotel,
White
Springs, West Virginia.
Sulphur
s
The
will
1953
again
annual
be
3
be
m
Convention
?ioPed
held at
the Holly¬
Hotel,
Hollywood,
Florida, Nov. 29 to Dec. 4.
wood
th/vi;
sold, it i8
:s^ti„fcnne„ti„gfine
Green¬
Beach
per.'
a
In New Quarters
ST.
PAUL, Minn; —' 'Juran &
Moody I have announced the re¬
moval of their offices to new and
spacious quarters at 93 East
The firm deals -ex¬
more
Sixth; Street.
;
clusively
all
~
*
in
municipal
of
bonds
types.
*
•
■
-
-
-
'
•
,
'
»
.
-
,.Fm"»t
*
'
«J,'
fat
Large Offer Made by
Federal Land Banks
.
hons of
cells in the
Wtv.w. *2K&:
.The 12 Federal land banks are
offering publicly today through
fcMeysns;e
Macdonald
Fiscal
dated
<G.
Newcomb,
their
Agent $100,500,000 consoli¬
Federal
farm
loan
bonds to be dated Jan.
}eas•
21/2%
•
•
•
2, 1953, and
•
of the
the rmest
•
the purest
he£
.
water
to mature Nov.
1, 1954, and $131,000,000 consolidated Federal farm
loan 2%% bonds to be dated Jan.
rp °f lite comply nc;;w*
Lst:
s
2, 1953, and to mature May 1,
*1958. Interest on both of these
Lm
issues will be payable on May 1,
.1953, and thereafter semiannually.
The 2,1/2 %. bonds of 1954 are being
Thus
terest, and the 234% bonds of 1958
99%.%
The
on
and
bonds
are
'assistance
of
s:|i!
accrued interest.
being distributed
nation-wide
a
basis
with
.
the
r
/ Y/y
- /
used
to
dated/Federal
ywhich mature
which
are
on
redeem
hand
the
farm
on
are
8
1
ss-
Cymakes«r.
tl,at you get
the utmost
,
every Jrinfc.
.
tm°St
drop
~
r
Distillers,Inc., N.
C.
to
consoli¬
loan
S.-I
,
/J/C/i/L^
Du'n'r Taki Sch™ley
r
3 j Net proceeds from the sale to¬
gether with cash
,,
is
l IalCr',the
in
e,;joyinen t i„
01
of recognized-dealers in securities/-
be
tain,
-large selling group
a
f Jm ,s
Srowntill,
offered at 99%% and accrued in¬
at
ru*
-e",ey
,1
whisk'*cs
tflc tl,ne
the grain i,
whiskey
|
bonds
11
Jan. 1, 1953, and
outstanding in the
ap¬
proximate amount of $185,800,000
•
to
and
provide
approximately
$45,700,000 for repayment of com¬
mercial bank borrowings and for
lending operations.
The
consolidated
bonds
being
offered are the secured joint and
several obligations of the 12 Fed.eral
Land
Banks.
They
are
not
guaranteed
by the government.
The banks are Federally chartered
institutions and operate under the
GPIJT7XTT T7V
OOJlxJ2i.LNju.Cj X
Nature's
unhurried
;
goodness
Schenley's
The best-tasting
uninatehed skill
whiskies in ages
automatic
rectifiers.
Business.
consultants to
commenced
an
resistor machine and the manufac¬
Columbia
Graduate
ex¬
*
New
Fordham
the
and
for
pansion
to Admit
Council of New York.
{
issue of
an
3,000,000 shares of common stock
(par 1 cent) of Electronic De¬
the
ipal
founded_
\
prich
members
group
and
years
Robert
Other
writing
to
cialized in the
business
Elecfronic Devices
less
•
New
York, has spe¬
to
suance
ject
o m-
of
pany
not
as
nounced
Charles
equip¬
cost
$5,920,000.
trust*
priced
by
estimated
pany;
McMaster
Hutchinson
&
Co.; Wm. E. Pollock & Co., Inc.;
certificates, maturing
semi-annually July 1, 1953 to Jan; Gregory & Son, Incorporated; and
Mullaney, Wells & Company.
1.
1965.
The
certificates
were
ment
Glass Fibres Corp., it has been an¬
Guaranty
Trust
railroad
to
than
1
Secretary of Agriculture.
associated with Wainwright, Ram¬
sey & Lancaster,
New York
City,
standard-gauge
ment
Rock Island 2%%
1%
IB
The Commercial an& Financial Chroniclet
(2234)v
.action
to be retired. No
In
of security
formed that due to the lack of in¬
analyses.
terest
Security Analysis is based pretty for what we sometimes call the
much the same whether performed three A's of our work, which are:
by a
bank, insurance company, Acquisition, Analysis, and Appli¬
brokerage office, investment trust, cation of investment knowledge.
or
other
Acquisition is performed by those
who are specialists along certain
groups. The
lines such
as:
industrial stocks,
most impor¬
tant
part
to
the
assess
the
it
of his monthly floor commis¬
W.
Hall
be
common
a
,
knowledge
other
on
investment
for
accounts.
Lincoln
specific securi¬
policies in
application to specific
The application of this
opinion
and
form
security,
whether
4%
performed by an¬
who are experienced
group
preferred stock, or bond, is studied
all by itself or in a vacuum. The trusts,
religious
and
charitable
individual security has to be re¬ organizations, and insurance com¬
lated to the capital structure of panies among others. This group,
the
consultation
after
the company to its
company,
and
discussion
from the
analytical point of view,
general economic conditions of the are then in position to more ef¬
fectively choose the investments
country.
for specific accounts.
Process of Operations
We think that this type of or¬
The fundamental problem of a ganization
is both compact and
trust company such as ours is how flexible.
The flexibility is quite
industry, and the industry to the
to
secure
wide
a
of
range
eco¬
evident in the fact that all of
our
nomic, industrial, and security in¬ accounts receive the individual
formation and apply this informa¬ touch, and the choice of securi¬
tion
in
effective
an
to
manner
number
a
efficient
and
of
different
types of trust and agency accounts.
To do this
ties
be made for the best in¬
can
terests
of
financial
beneficiaries,
committees, and other
owners,
highly organized parties in interest.
we are
$500
bills.
sion
sales
of
orders executed
After
considering
determined to take
In January,
thorized
no
of
On
Dec.
4,
Keith
G.
Funston,
period
President of the New York Stock
plete
a
Exchange, announced that the
proposal to retire 50 memberships
for
over
year
has
five-
a
prov
of
the
ship
vote
the
two
565
committee
t
Keith
member¬
Funston
membership announced today,
will
provide for the retirement
maximum of 50
Jan.
period of five
1,
memberships,
1953,
over
a
years.
members
began
voting on
Nov.
21,
and
voting continued through the close
of trading on Dec. 4.
to
memberships to be retired
be
can
-purchased
exceed
(1) the
tion
change
a
will
be
received
from
by
an annual
period
the
members
by
Ex¬
elected
years,
plus
contribution of $180
from each member
year
not
The seat
financed
during the next five
(2)
price
of $1,000,000 in initia¬
use
fees
at
$45,000 each.
retirements
to
the
at
least
memberships
reviewed
five times
has
by the
or
for
including the present survey.
1938, a special committee
In
over
the five-
such
shorter
*
sonal
Stabilization Board to the President.
study, during which the views
of 403 members had been received
and per¬
the committee
appearances,
reported to the Board that while
there was a very definite interest
the
on
the
part of
large portion of
for the submis¬
a
membership
sion of
plan
could
It. further
under
funds
serve
from
14
page
seat retirement fund, and
method
for
The Future of New Toik
that
should
allocated
be
--'i
be, agreed
concluded
circumstances
no
portion of the Exchange's
any
Continued
•
seat retirement plan, no
a
workable
upon.
Of course!
the
to
that
any
a
plan
financing
vividly in what may be called the
"good
old
days." For then
it
a
seemed
Liberty
that
the
slips
were
crowded with vessels of all kinds
of their business.
This
committee
that
suggested
the part
on
large number of members to
a
plan presented,
peared .advisable for the
to follow through.
It
it
some
ap¬
Board
recom¬
mended that any
plan provide for
the retirement of at least 75, but
not
than
more
that
a
100
maximum
memberships;
price should be
established at which memberships
would be retired; and that funds
for
ion
of
the
berships
the
unanimous opin¬
that mem¬
committee
should
with present
not
be
retired
Exchange funds. The
Board
also felt that any retire¬
ment program could not be selec¬
tive. The Board
often famous for different reasons;
was
seat
a
retirement program upon the mar¬
ket for memberships could con¬
stitute
radical
a
cleanliness
of
the
little
Deutch-
land, the speed of the Mauretania
the cuisine
or
on
the De Grasse?
Obstructions to Foreign
In
those
Travel
it was a great
of the further pleasure to go abroad and all you
opinion that the effect of
departure
from
had
days
to have
was
the money.
One
did not need any passport or visa
receipt for his income tax. He
actually did not have to have a
or
cabin
reservation
or
a
ticket.
If
retirement of memberships be es¬
change policy of
a
tablished; that
market, with supply and demand
needed to do
governing price. The membership
and hurry down to the dock of the
be
paid
price to
for
be
committee
on
maximum price
a
memberships,
fixed
from
said
time
to
by the committee; that the
Exchange make a contribution
from its current assets of $1,000,000 to establish the fund; that each
member
the
make
fund
of
contribution
a
one
cent
to
each
on
transaction of 10 shares of stock
part thereof executed
on
or
the Ex¬
was
sion
free and
open
advised of the Board's deci¬
or>
May 13, 1948.
an
American citizen had
den
to
urge
go
was
abroad
the
sud¬
all
he
grab his money
liner next scheduled to depart. If
he missed
next.
one
Even
boat he got ol
the
he got there after
May, 1949, the Chairman of the gang plank had been stowed,
the Board requested a further ex¬ they would swing him aboard on
a
bo'sns chair or get a tug to
pression of opinion from the mem¬
carry him down the harbor and
bership on the same subject. Re¬ overtake the ship off Quarantine.
Once
part thereof of
par value of other
bonds; and that
the
cent
on
each
$1,000
or
part thereof of par value of
Government bonds and three cents
each
on
$1,000
in addition, members make a con¬
tribution to the fund of not more
than $250
.anrtu&lly, if and when
it
was
not
needed.
suggest
the
This
report
number
ci
did
.j-
ajs.
and
sponses
received
v ere
from
448
or
number of
cause
terest
memberships. Be¬
of the apparent lack of in¬
in
the
tion
Those
war
were
clouds,
commerce
subject,
determined to take
no
the
Board
further
ac¬
on the matter at that time.
Even
seemed
neglected
The
citizens,
ment
lack
the Port
the Statue of
look
to
There
as
desolate
sailed
we
of
Nieuw Amsterdam.
the
was
not
was
the appear¬
even
of the usual
activity around
ship repair yards and about onethird
of
the
available
floating
dry-docks were empty. It seems
that the high cost of wages and
materials have caused shipowners
to get their repairs and painting
done abroad whenever possible.
They are building tankers for the
Standard
Oil
Company in Hol¬
land, yet the famous Cramp's
Shipyard at Philadelphia was re¬
cently offered for sale. At this
rate it will not be very long be¬
fore they will be building United
States battleships at Bremen and
on the Clyde.
Do not forget that
some
of
the
largest
warships
Greece and the Argentine ever
had were built right at the New
York
Shipbuilding Company at
ance
Camden,
Piers
In
or
one
of New York!
over
New
Jersey.
if
on board, and with no ticket
cabin, the purser would fix
members of whom
158, or ap¬
him
up
somehow, perhaps even
proximately 35% of those who
making up a berth for him on the
responded, favored a reduction in billiard table.
change;
change has come
by.
activity was very
boats and other craft in the river noticeable. That is why the view
were continually forced to
dodge from the ferryboat- was depres¬
or circumvent
great ocean liners sing.
For on that trip covering
out in the stream, docking or de¬ over twenty-two nautical miles of
parting. There were a great many waterfront one saw a continuous
more
tug boats, car floats and procession of broken-down docks
lighters and the whole lower Hud¬ and vacant slips, with practically
son River seemed alive with ship¬
no
harbor activity.
There- were
ping activity. Many of the foreign about two United Fruit ships, two
of the Furness Line, the Vulcania,
ships, such as those of the North
German Lloyd, docked at Hobo- and two or three small freighters
ken, so that both sides of the river on the Manhattan side. On the
bristled with the sterns of ocean whole New Jersey shore the only
greyhounds.
These
boats
were
large commercial steamer visible
financing any seat retirement one was the largest, another the
program should be accumulated in
fastest,
another
had
the
best
advance.
cuisine or gave free wine, or had
The Board considered this re¬ the most popular captain. What
port on May 6, 1948, and con¬ voyageur could ever forget the
curred with
City
re¬
principle of Ex¬
a
$
We cannot
the fundamental
recommended that
time
amendments
The
report
activities
Exchange
not
Constitution which, by the vote of
the
a
been
amendments to the
the
The
mem¬
Exchange authorities since 1938—
ship for ballot¬
beginning
Board
month.
of
o
ing proposed
one
This question of the retirement
G.
a
its
of
Governors
of
must
on
once
20,
submitted
members of
allied
is-an
Board
Board
the
who
are
and
administer the mem¬
bership retirement program. This
de¬
On Nov.
Gratuity Fund
ber—will
fective.
the
Exchange
member
for, 556 against
and
provide
offset the loss of contributions
of Governors who
of
member¬
was
also
rata increase in dues and
ing of four members of the Board
Exchange.
The
amendments
pro
from retired memberships.
A rotating committee — consist¬
by
members
the
to
ap-
ed
a
is
through correspondence
of
see
program.
assessments for the
period
been'
The
action
of
problem. After several months
of
be required to com¬
as may
the
as
conscientiously go through the motions
administering a program which in effect no
longer exists. We are left with no moral alternative
but to resign."—Industry Members of the
Wage
the
because of the interest
Funston, President of the Exchange, reports vote
565 in favor, and 556 opposed. Limit of $45,000
placed
on
purchase price of membership.
again,
people.
only will there be no
provide for equal partici¬
from all parts of the world. Ferry¬
pation of all members of the Ex¬
Narrowly Approved
for the coal
approved
fraud upon the
*
special committee to again review
should
G. Keith
was
have
must advise
we
industry members of the Wage Board, we
cannot be parties to what we believe to be the
perpetration of a fraud upon the American people.
action.
appointment
excess
"As
1948, the Board au¬
the
in
you
those
the
change, regardless of the nature*
USE Seat Reduction Plan
this
on
the Exchange;
on
that
wage stabilization if
generally applied, but it may well
build irresistible pressures under
prices and once
again send inflation into an artificial but neverthe¬
less destructive spiral.
cent
one
value
a
"Not
report in August, 1940, the Board
is
in
the
operation of individual
trusts, pension and profit sharing
stock,
and
the
to
means:
may put into effect
of sound stabilization
both we and
public members advised in our coal ease
opinions, that wage controls become an empty shell,
basis, comparable to
registration fee,
each
on
contribute
action
your
the board's
committee be appointed; that each
firm
hand, if
far
as
as
miners, then
that each member contribute
ties
trends.
policy
Exchange; that a seat retirement
fund on a fee
the other
employers and employees
increases
sug¬
was
that 100 memberships be
retired; that a fund of $500,000 be
established by a loan from the
gested
and
group
individ¬
No
ual
it
all
report to
the SEC
formed
throw
light on
future
which
in
Board
the
"On
"Forum
a
member
a
disclosed
some
the
as
Committee," submitted
com¬
ing investment knowledge into a
The
past is
important, but
primarily be¬
cause the pat¬
terns
known
mittee
no
to make second-class citizens of all others.
unofficial
In June, 1940, an
specific account. Analysis is per¬
by a group of investment
officers experienced in coordinat¬
future.
may
further action would be
no
taken at that time.
particular reference as to how
it shall be applied in the case of
out
babilities
p r o
of
utility stocks, municipal
bonds,
corporation
bonds,
and
others.
Such knowledge is acquired with¬
is
effort
the
of the suggested
membership . was in¬
The
exces-.
a
paralyzing
longer exists the equality with 1:
which all law and all
regulation should be applied
in a republic. The
'equality of sacrifice' for which
you have so often pleaded becomes a pious delusion.
We cannot participate in a
program which would
require us to grant special privilege to a few, and
to all
opposed
to be* allowed whatever
are
strike, then there
questionnaire. A large per¬
of those replying were
plans.
Describes the three A's
accounts.
powerful
sive increases result from the threat of
,
centage
companies to aid in executing effectively and efficiently different
agency
big
and the
40% of the membership responded
points out nature of information required by trust
of trusts and
"If your action means that.the small and the weak
are to be restricted
by wage-controls, while the
-
suggested plans for the retire-"
ment of memberships. Less than
to the
types
,
eral
Fidelity-Philadelphia Trust Co., Philadelphia, Pa.
Mr. Hall
Jr.»
membership outlining, sev-.
the
to
Officer
Trust Investment
f
E.
Chairman
of the
Board, submitted a questionnaire
The Trast Company
>
i-
1939, TVIr.^E.
February,
Bartlett,
By LINCOLN W. HALL
i
;
taken
was
the- recommendations.
on
.Thursday, December 11, 1952
and
Business
Dock
looked
Terminal and
Bush
New York Dock
ties
seemed
have
at
.»
the
although the
Company proper¬
fairly
been
Facilities
slow
due
busy,
it
may
Government
to
business rather than private com¬
merce.
That is why the
impression
of
waterfront
depressing.
To
our
was
begin with, the greater part of
times; no the dock facilities on the Jersey
foreign shore appeared to be given over
by private to the
shipment of NATO supplies
wonderful
big
active
conducted
practically
interference
no
with
govern¬
business,
moderate taxation, freedom. What
to
Europe,
nf
r»ferc
and
onrl
a
large
1icrhti=rs:
number
wprp
nilprf
Volume 176w Number 5176
v/ith
huge
.
..
brief
this
From
get
ness:
T-
the
hauled
inspection one
tremendous
order
be
facilitate
to
in .world trade. If
we
are
to
survive the threat -of competition
over-,
bors
intthis - country^ it will be ;
necessary to make! many changes
in
involved
from
foreign aid
our
a
our
nection
As
has
repair
with
yards,
the arrival
will
start
have
We
slow
to
businessman,
already
down.
Every
every newspaper,
labor leaders
and
citizens
gener¬
before,
stated
been
ally will have to cooperate in
takes
endeavor to
long, sometimes,
for passengers to clear customs,
health and passport inspections at
it
nearly
all
politicians regardless of party, all
de¬
and
objective.
parture of aircraft. At present it
long time.
as
if
they
an
meet this threat. For
all pull together
eventually be too late
sence
and New York, once the greatest
the airports as was consumed in
ping, the dilapidated and vacant the entire
flight across the ocean. city in the world, could then take
docks usually given over to pas¬
It will all take time and hard its
place
among
the
hasbeens
senger and cargo boats in private
work, but it must be done if this along with Carthage and Ninetransatlantic and coastwise trade.
port is to maintain its proper posi¬ vah, Athens and Tyre.
The
economy
looked
false,
quite depressing—the ab¬
of truly commercial ship¬
all
was
Common Stock Offered
and sacrifices in order to achieve
of
also port
program. Apparently shipping fa¬
cilities are lacking for transport¬ charges should be brought in line
with - competition
from
other
ing these goods to their destina¬
ocean gateways. The customs and
tion. This is borne out by the ac¬
hoalth inspections must be reor¬
tivity along the Erie Basin at
ganized and expedited, and this is
Brooklyn where surplus freight
true not only as regards trans¬
ships were being reconditioned in
atlantic shipping but also in con¬
feverish haste after having appar¬
ently been out of service for quite
to
v
Charles J. Maggio, Inc. is offer¬
ing 299,970 shares of Maine Slate
Products Corp. 100 par common
lost much in oceanic and coast¬
stock at $1 per share, less 200.
wise trade, our shipyards are los-.
The proceeds will be used to
ing business and eventually the build a
mill, to buy machinery
whole economy of this great city
and for working capital.
railroads and trucks to the boats.
Costs
dise
now
do
not
it may
The company
our
ideas of a true growth
stock,, neither experimental nor
exploratory. The material for the
finished product is already above
considering the
is the
owner
of
surge
toward in¬
creasing building activity through¬
out the country, the prospects
a
a
10-year lease, with perpetual op¬
to renew every 10 years, on
ness
seem
highly favorable."
;
Just
slate
waste
estimated
to
contain
Chapin, Walker Co. Opens
14,000,000 tons of slate, with quar¬
nearby should the present
supply be exhausted. The waste
slate is to be crushed into granules
Md.
BALTIMORE,
ries
Walker
&
Co.,
has
railroads
and
and flour to be used in the manu¬
of felt
facture
base
shingles and
underwriter
The
to
engage
ness.
by-products.
states:
"We
in the securities busi¬
Bedford
Chapin is
pal of the firm.
•
rerouting of
potently! to
its pinnacle
of commercial supremacy,
just so
strong latent forces gradually
are
going to work to tear down the
structure
shift
of
-
our
and
economy
elsewhere.
it
Of
the
course
high cost of seamen's wages and
the exorhitant charges for steve-\
work
dore
their toll
taken
have
-
in coastwise shipping,
which can¬
with railroad
and motor truck competition. So
have the costs of dry-dock and
not
/
''V
w
Y;
compete
now
,
...
repair service driven away much
business. Also new motor
of that
truck
West to
to
port, and they will continue
so at an increasing rate as
do
turnpikes are built
Atlantic states.
toll
more
in
Middle
the
;
traffic
much
verted
;
have di¬
away
from
Philadelphia
and
more
this
leading from the
Savannah, Balti-
routes
Middle
Besides all this, those interested
Port of New
in the future of the
York
must
the
carefully
study
possible effect on this harbor of
the proposed construction of the
St. Lawrence Waterway. For
if
that
project is completed it is
new
large portion of
grain and other
safe to say that a
the
exports
of
products of the Middle West will
pass directly through the Gulf of
St. Lawrence into the Atlantic
Dakar, capital of French West Africa, one of the latest cities
all but the most severe
Ocean in
connected to the United States through Bell System Overseas Telephone Service.
months of winter. In that case the
decline of the Port of
will
be
materially
New York
and
hastened
picture a severe setback
in office rents, hotel, department
store and theatre trade and real
estate values on Manhattan and
can
one
A VITAL
PATH
SPEECH
environs.
its
What Can be Done
this
At
"What
point
one
ask
may
done
be
can
about
FARAWAY
TO
—
all
COUNTRIES
taken
to arrest the decline
and work
towards the rehabilitation of this
this?" What steps should be
great port with its wonderful har¬
bor and its ideal layout for the
conduct of world
World-wide events
The
of Overseas
answer
entails
is
not
varied
many
emphasize the value
shipping enter¬
prise?
easy,
Telephone Service
for it
factors.
To
begin with it is evident that the
management and operation of our
piers and warehouses is partly at
It would seem that all of
these facilities should
be taken
out
of
political
domination
the Bell
and
System inaugurated Overseas Telephone
Then there w^s
systemize and man¬
from New York
all of the shipping properties
the area. Moreover a campaign
to
only
should
be started to
merce
to
within
this
the
port,
country
In
calls
of union dominationover stevedores, shipyards, light¬
ers
and tugboats should be cur¬
grip
tailed. Pier rentals should
viewed and adjusted
be
re-
to place our
docks and warehouses on
a
Today this radiotele¬
1927, only twenty-three
were
ments
in the
quality of service and substantial
Here is
a
tool of increasing importance to
finance, industry and commerce
♦
t*
vital inter¬
and the
over
are
now
made
past
twenty-five
value
right
BELL
-
sound
a
Armed Forces. The
hundred Overseas
made. More than that
and
national voice channel for Government
TELEPHONE
growth of the service
years
the
is proving of particular
now.
.
.
paying basis. A campaign of busi- \
was
faraway countries and territories.
from
from
abroad.
The
link and that
phone service reaches, out to more than ninety
attract com¬
both
and
one
London.
age
in
day. There have been important improve¬
every
reductions in rates.
Service in 1927.
placed in the hands of an independent dual-state
authority
armed by law with the power to
rehabilitate,
strides have been made since
Great forward
fault.
SrSTEii'
f'
a
princi¬
.
have
so
build up New York to
formed
with offices at 100 East 20th Street
of the
the
served
Chapin,
—
been
construction of the
the
as
Canal
'
tion
been nearly at a standstill.
Erie
for
flourishing and profitable busi¬
projects
controlled
the great shipping facilities
Port of New York would
,
ground and ready to be used and,
and it seemed that were it not for
government
XI
are particularly pleased to be of- \..
fering this issue since it conforhis
Maine Slate Products
and from other har¬
from abroad
the
handling of goods; and
the transfer of merchandise
of merchan¬
amount
in
economic
slight impression of the
a
should
Jaws
(2235)
tion
promotion should be started
and
of goods awaiting
cases
bottoms to carry them over.
can
The Commercial and Financial Chronicle
•
j
20
The Commercial and Financial Chronicle
(2236)
"There Won't Be Much of
Chicago Exch. Firms
Bank and Insurance Stocks
Elect 1953 Officers
CHICAGO,
111.
Baum,
partner,
&
was
Co.,
of
the
Harry
—
Wayne
re-elected
Chicago
A.
This Week
of
Association
Hallowell, Jr., President of Standard Pressed Steel
Company, however, predicts inflation "as long as you can see
in the future," but
says solution lies in better machines and
'■
Chairman
Bank Stocks
—
change
Ex¬
at ion's
z
tions
an¬
nual
meeting
and F
r e
d W.
have
re-elected
or
Levy of Paine,
larged their payments to 11.
& Curtis
elected
.son
was
iP
certainly
Daniel F. Rice
Co.; Thomas Hosty, Jr., Sincere
Co.; Harry W. Puccetti, Horn-
&
stockholders
D.
Weeks; and George
or
a
this
Harris, Upham & Co. was named
upward, there
Chairman of the 1953 Nominating
Committee.
11
York
New
White-Phillips Go.
N.
Carl
Roy
Secretary;
maintains
a
would
Thalmann
&
Co.,
Street, New York City,
members of the New York Stock
Exchange, on Jan. 1 will admit
Carl K. Erpf to general partner¬
Jane R. Heimerdinger
limited partnership.
Mr. Erpf
and
with
been
of
firm
the
for
Opens
of Robert D.
was
representative
Co.
Brown &
Blyth
&
Co.,
Chicago Analysts to Hear
CHICAGO, 111.—David A. ShepPresident
of
Standard
Oil Company of New Jersey,
the
of
luncheon
Investment
Chicago
on
that
First
will
meeting
Analysts
of
Society
BANK
stock
a
in
1951
taken
The
the
was
likely
Korean* '■
extra
that
only
a
$2.00
extra#
of
Telephone: BArclay 7-.2i>00
$2.00
As
of
Instead
postponing
equipment
more later, he
It will cost
now.
warned.
Continued
reported that'
inflationary
jrom
that
This
means,/according
is
will
keep going
said,
wages
With
up.
Employment Act
can
Mr.
to
Hallowell, that prices and
"
wages
Full
a
the books, he
go no other way.
on
The only way to beat the squeeze
profits is to get
on
,
.
,
more
,
T
efficiency
\
j
j
now- he declared. Industry needs..
productive
more
output
organization
in
payroll hour.
per
6
page
long-
same
trend
visible in the American economy.
terms of
it
the present stdck to $20.00.
was
something of
>
:
/
w
Municipal Bonds for
Bank Investment
-
was
•
usually]'a secondary market, but est thing to such a guarantee, and
many
of the smaller issues are I believe any holder 'of jthese V,
sold
is
in
some
'
-
Thus the
showing
Also, it marks something of
over
declared
an
depar-
a
'
While earnings
25 years.
by
U.
S.
Trust
have shown
a
the
among
the
New
York
centennial
Banks.' Thus,
the
of
also
was
modest
one
the $2.00
institution
the
or
of the other
some
stock dividends had
of
extra
specific
action
varied
pay-
1
generally anticipated, although
slightly in
some
from
cases
Bank
of
Manhattan
35
cents
offer
additional shares
to
announced
40 cents
Manufactui
ers
dend from $2.60
a
increase
an
share.
in
the
quarterly
on
the
a
share to $2.80.
a
Housing
bonds/are,
/of/
bonds.
These
come
for
does
not
;
appear
logical, since I'm sure few
would be willing to buy any
very
of
This
them.
-
us
Housing Authority bonds without
the Public Housing Authority contract.
So far, only $650,27.7,000 Hous-
only income is from their housing ing bonds have been sold. This
projects. However, when they is- is less than 10% of the original
bonds
an
increase in its annual divi¬
New
York
of
Trust
increased
Joins
joins
this
Act
Calif. —Ar¬
ized is
per
to
Michaels'
is
MarrinnaU
MacDonald
a
Burke
which
sufficient
was
care
over a 4°-year Period.
&
MacDonald, 17 East 10th Street.
Investments,
paid
is 2%%. "
the
on
""" ~
.
The
contract
V
interest
bonds
must
be
made
despite
(Special to The Financial Chronicle)
the issuing local authority.
Witter
&
Dean
Specialists in Bank Stocks
Research
Corp.
p
v^O. romming
&
Co.,
York
members
Stock
the-
of
Exchange,
KANSAS CITY, Mo.—Mrs. Lillie
L. Peyton is now with Waddell &
Reed, Inc., 1012 Baltimore Avenue.
the Housing bonds
cally
.
guaranteed
Schiff, Gerald T. O'Connor,
bers
of
the
Joseph
Stock
will
mem-
Exchange, and
Silverstein. Limited part-
will
be
Sydney Lewinson,
Exchange member, and Lewis Van
Wezel, Messrs. O'Connor, Schiff
and Silverstein-are partners in;
ners
E.
H.
Stern
&
Co.
1
.
sold
contribution called foe in the
tract
was
Secu¬
o
OCniri
New
:/:
on
are
the
con-
part of
.
near-
Granger & Co.
firm
The
-
p
~
name
...
of
Sulzbacher,
„
,
.Granger & Co., Ill Broad way,-New
While -York
Federal
Government, they have the
:
any
not specifi-
by .the
To Be
that the
North
with
;rr
-
provides
breach of contract
National
of
Up to the
Present time,, the highest
Waddell & Reed Add
and
obligation
-
i
Schiff
and
calculated
take
to
Inc., 233 South Beverly Drive. Mr.
formerly
•
o
The amount author-
,
with
faith
Government
maximum of $308 million
year,
be
rate
CITY, Mo.—Eldon■ W.¬
now
full
those
than
general
municipals,
the
au-
the $7 billion program at a 3V4%
interest
rate,
with
amortization
(Special to The Financial Chronicle)
.KANSAS
the
grade
pledged to provide funds an- .be formed Jan. 6, with offices at
nually to meet obligations of the 25 Broad Street, New York City.
Public Housing Authority for the General
partners will be Stanley
which-may increase
&
&
for
favorable
more
high
was
coming month.
Rnrlcp
DlirKe
contracts
by Act of Congress, and
bond service.
Property/
as
were
security
contracts
credit of the Federal
.
the
payments
these
and
as
These
under
its
interest
mature,
pledged
thorized
still several banks in New
York which have
partici¬
Property
what
and
bonds.
share to $1.25 and in addition declared
nold North has become associated
&
The
of dealers,
group
bonds, as you know, are issued by
separate local housing authorities
created by statutes of the various
States, and they issue their bonds
as. their
own
obligations.
They
have no taxing power and their
are'
The Empire. Trust announced its
intention to pay an¬
one additional share for each
nine
With Real
rities
needs lose no sleep';over /
their prompt payment. //' ,"///'/
bonds
course, exempt from Federal iritaxes, but are in the same
position as any other municipal
bonds as to local taxes. The market differentiates between various housing authorities, but it is
only the market that does so.
Mesa, Ariz., has the same Public
from ad valorem taxes.Housing
Authority contract
as
Milwaukee, Wise., but many buyHousing Authority Bonds
ers prefer well known names and
I would like to refer briefly to are willing to pay higher prices
they
dividend equal to
are
Co.
or
cipal
shares.
new
Trust announced
'
Real
dealer
a
the necessary funds to meet prin-
250,000
one-for-ten basis. The increased dividend of
a
quarterly rate from $1.00
with
to
in which
event, except for the original purchaser; there is little if any secondary ; market interest.
Good
revenue
bonds
yield very little
more
than general
obligation
bonds, and for this and other reasons mentioned
above, we prefer
the
general obligations payable
sue
Also, the Bank stated its
rights to stockholders, to subscribe to
on
$1.60 is to be maintained
$1.00 extra.
instance through
sale
Public
rate from
of
first
or short-term notes, the
program, so we may expect many
Housing Authority, a Fed- more of these bonds to come into
eral
Agency, contracts with the the market.
This large volume
local housing Authority to provide will tend to make the prices some-
previous
expectations.
to
the
Housing. Authority
in¬
welcome
was
banks, the increases in cash
been
in
negotiated
a
small
surprise and indicates
a
-
foreign countries he visited
range
rid of the
old stuff" and put new
result the Bank paid a 200% stock
a
payment
unexpected.
Among
ment
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.)
more
use
modernization, Mr. Hallowell ad-
York
New
this year, dividend payout in recent
years has been
Exchange
BROADWAY. NEW YORK 5, N. Y.
machines
capital in relation
more
Bui/
Evidently condi¬
purpose.
along with most other banks
j BEVERLY HILLS,
Members New York Stock Exchange
he
vised companies to "get
or
been approximately equal to and
(Special to The Financial Chronicle)'
Laird, Bissell & Meeds
said, is better
better organization.
solution,
in the
in the future."
as you can see
labor.
to
The dividends of First National
unexpected.
National
largest
STOCKS
the
of
sizable extra
a
by the First National Bank
payment to be made by the bank in
INSURANCE
Bell
split
when
their distributions to stockholders
in
Curb
Although
pated in the improvement in operations and
and
120
the
recently he found the
Mr. Hallowell,
predicted inflation "as
Industry must buy
action
Hallowell, Jr.
it.
machines and
period of 1951.
that declarations in 1952 amount to $1-3.00
so
$2.00 extra
a
other stock
Dec. 11.
York
long
$2.50 share extra by Guaranty was also
a
improvement in operations.
There
New
by
didn't do it all." He
T.
H.
noticing
The
ture in dividend policy for First National since it is
the first extra
held.
Members
accelerated
been
by¬
may :
however,
different point of view has been adopted. V
a
than earnings.
payment of
ard, director and executive assist¬
the
years—increased;
inflation, he said, is a world-wide J,
phenomenon;
"The Deirioe^a^s/
in
Guaranty Trust.
the equivalent of $26.66 on
intention
address
if
next
even
including chemical,
dividend earlier this year and reduced the annual dividend
from
formerly Houston
for
lac.
the
"• '•
-
thought'
competition, higher ' costs,'-Jnfla-/
tion, and the profit squeeze—have;
the reces¬
sion,
without
news.
Texas—Robert D.
has opened offices at 711
Street, to engage in the se¬
curities business under the firm
to
short--
any
down/ "'
up or
would require 10
a
pass
;
e-
commemorating
Main
ant
are'; flexible'
War, Mr. Hallowell declared.
we
cor¬
the first
over
background, the dividend
$14.00
also somewhat
HOUSTON,
name
share
action
somewhat
Own Investment Co.
Mr. Brown
or
with
declared.
a
years.
Robert D. Brown
a
compared
as
crease
Brown
changes
^
aim of several
The developments many
won't
The bank last June raised the quarterly payment from
$3.00 to $3.50
years more
Board
number
changed
for several years have
To Admit Partner
increase
groups
particular worthwhile
any
good news.
The
Ladenburg, Thalmann
all U. S.
year
On several occasions in the past, the management
The declaration of
was
to
mod-/
develop"
■
Chicago.
38
serve
tions have
branch
Dearborn
South
at
Street,
3%
a
individual
Guaranty has denied that
Vice-Presidents;
-office
las
to
*
had been anticipated the five-for-one stock split had not been gen¬
of
Richard
T.
Crowe, Treasurer; and Gerald C.
Fiedler, Assistant Secretary.
ship
and
yet
more
or
range
working hard,
surprising developments during the past week
the action taken by
was
erally expected.
and
earn¬
enough to make stockholders pleased at this time.
of
Alexander
Ladenburg,
plants
enough to incorporate
if
keeping
and
A.
Phillips, Chairman of the Board;
Blair A. Phillips, Jr., President;
This is
many
against this
Blair
staff:
official
decline in
a
banks, including its general character, is unusual and' "
organization
following
25
were
One of the most
DAVENPORT,
Iowa — The
White-Phillips
Company,
Inc.,
First National Building, announce
firm
Steel,
year,";'and,
'..'-' C
November of this year than in the same
reason
The
Pressed
over-all long-range
forecast
y
its
years
Com¬
much of
a n
textile, food, beverage, and tobacco, which paid less from January
Viewed
New Officers of
Phillips,
the
of
recession,
While the general trend of payments was thus
months of 1951.
to
E.
what/will-
see
ernize
be
porations issuing public reports paid stockholders approximately
$6,535,000,000 in dividends.
Stutz.
said,
to
manufacturing plans that have an'
pany,
extras within the past 12 months.
or
So far in the current
year.
Eees, Shearson, Hammill & Co.
Richard
L.
Kennedy,
Jr., of
Robert
Standard
has gone ahead to.,
."there
tight cash position, been forced to reduce payments to
ings
their
Hallo^.
beeh'"sitting;
have
waiting
back,
we
Joseph A. Fagan,
the
charged,
he
Steel
in the past three
Many industrial companies have, because of
elected for three-year terms were:
&
well
happen.
Pressed
dividend.
].-•/
groups.
Governors
blower
Manage-
Standard
of the best showings among the major stock
one
American
H
3,
ident
distributions
in cash
increases
Only 6 of 17 banks in the city, have "
their dividends
not increased
This is
Harry A. Baum
Treasurer.
&
have announced
months, brings the number of New York banks which have en¬
Webber, Jack-
the
v
well, Jr., Pres¬
17 major New
within the past two weeks, 7 of the
fact,
at
v.
; Too many companies, Mr.
Thomas Hallo-
These combined with announcements made
Herbert
man.
.
ad-
Dec.
True, some of the distributions have not been
intention to pay a stock
an
Vice-Chair¬
opening
Association's manufacturing
c
conference in Cleveland, O.,
on
holders would have liked, but the actions taken.
some
as
institutions
York
Harris, Inc.,
was
dress
the
ment
generally been favorable.
In
.Sills, Fairman
delivering
stocks, there have
concerned.
are
liberal
as
Tairman, Jr.
&
few
been
In
disappointments this year so far as dividend declara¬
Among the holders of New York City bank
Firms
the organi-
at
better-organization.
-
-
f
'
Stock
Recession, if Any!"
a
H. Thomas
E. JOHNSON
H.
By
Hummer
Thursday, December 11, 1952
...
City, members of the New
York Stock Exchange,
will
be
changed
Company. "
*
.on
Jan. i,
to' Granger
./• : /"/
&
,/jg.
;■
Volume 176
Number 5176
.
.
.
The Commercial and Financial Chronicle
(2237)
21
Security Traders Association of New York
Col. Oliver J.
De
Hal
Murphy,
Commercial
Troster, Troster, Singer A Co.; Ernest Lienhard, Troster, Singer A Co.;
Socio, L. H. In graham A Co.; Mickey Pinkus, Troster, Singer A Co.
Jacobs,
Sidney
Jacobs
W. E. Hutton
Co.;
A Co.;
Sal
Rappa,
F.
S.
Moseley
A
Magid, Hill, Thompson A Co., Inc.; John J. Meyers, Jr.,
George V. Hunt, Starkweather A Co.
Co.;
Sam
Bernie Weissman,
Colwell,
Ogden,
Harry Casper, John J. O'Kane, Jr. A Co.
"Duke" Hunter, Hunter Securities Corporation; Ted Young, J. Arthur
Sam
Hans Ben, New York Hanseatic Corporation; Allen Broomhall, New York Hanseatic Corporation; Bert
Pike, Troster, Singer A Co.; Lester Frenkel, Gersten A Frenkel; Walter Filkins, Troster, Singer A Co.
Harold B. Smith, Pershing A Co.; Clifton B. Smith, Francis I. du
Pont A Co.; George Kranz, Putnam Fund Distributors, Inc.
Commercial & Financial Chronicle; Edwin L. Beck,
Chronicle; A1 Tisch, Fitzgerald A Co., Inc.
A Financial
Sid
Samuel
Warner A Co., Incorporated;
Gordon Graves A Co.;
Ed
Harry J. Arnold, Goldman, Sachs A Co., retiring President of
STANY; John Meyers, Gordon Graves A Co., President of STANY
Siegel A Co.; Earle E. Land. Green, Ellis A And"rson; Arnold J. Wechsler,
Wechsler A Co.; Edward W. Schaefer, H. D. Knox A Co., Inc.
Whiting, Carl M; Loeb, Rhoades A Co.; Ed Kelly, Carl M. Loeb, Rhoades A Co.; Cy Murphy,
John C. Legg A Company; Vic Reid, Eisele A King, Libaire, Stout A Co.;
Horace I. Poole, Eisele A King, Libaire, Stout A Co.
22
The Commercial and Financial
(2238)
Chronicle... Thursday, December 11, 1952
Annual Election Meeting
Henry
Larry
Kuipers, Lord, Abbett & Co.; Jim Durnin, H. D. Knox & Co., Inc.; Charles
Ogden, Wechsler & Co.; Roy Larson, H. D. Knox & Co., Inc.
Lyons,
Edward
Barney
Allen & Company; Syl Bies, E. S. Ladin Company;
Ladin, E. S. Ladin Company; Michael Voccoli,
Chas.
King Si Co.
S.
Nieman,
Gerard
John
J.
O'Kane,
Tom
Ogden,
O.
G.
H.
Walker
Si
Co.; Frank Welch, R. S. Dickson Si Co., Inc.;
Sid
Si
Siegel,
Co.;
Jr., John J. (YKane, Jr. Si Co.; Stanley Roggenburg, Roggenburg Si Co.; Murray
Laurence M. Marks St Co.; Alfred Powell, Alfred Powell Company
Griffin
D.
Soren D. Nielsen, New York Hanaeatic Corporation; Carl Swenson,
Carl Marks Si Co. Inc.; Ben Van Keegan, Frank C. Masterson
Burchard, Charles King Si Co.; James Siepser, Shaskan Si Co.
Barysh, Ernst Si Co.; Chas. Zingraf,
Greenberg, C. E. Unterberg
Siegel
Si
Peter
St Co.; Charles Jann, Estabrooh Si Co.;
Co.; John Halk, R. L. Day & Co.
John O'Mara, Good body & Co.; Frank E. Mulligan, Goodbody SI Co.;
Allan
Kadell,
Frank
Co.
Barken,
Peter Barken
Markham,
Edwin
Martin
King,
John
Oscar D. Griffin,
Homer O'Connell Si Co.,
Orlando, Goodbody Si Co.
Inc.;
Co.; George A. Searight; George Collins, Geyer & Co. Incorporated;
Wertheim Si Co.; Bill Boggs, Hill, Thompson Si Co., Inc.
Sutra Bros, Si Co.; Michael J. Heaney, Michael J. Heaney Si
Merrill Lynch, Pierce, Fenner Si Beane; John Heck
M. Mayer,
I
Co.;
Volume 176
Number 5176
.
.
.
The Commercial and Financial Chronicle
Held
(2239)
23
Friday, December 5th, 1952
'
m
ills-
<<■!;
'
rf*
'<
j|p
-
*
i
xi
f■
A
V
%
*
—
^
>
w
\
John
D.
Hines,
Charles
David
Everett R. Rubien, F. Daniel Wasservogel
Bruggeman, all of Dean Witter A Co.
Mitchell, Hill,
Gruntal
A
Thompson A
Co.; Ed Abele,
P. Fred
Fox, P. F. Fox A Co.; Eddie Ruskin, Singer, Bean A Mac hie,
Inc.; Martin Davis, F. Eberstadt A Co. Inc.;
Abe Strauss, Strauss Bros. Inc.
A
Company;
Joe
Irving A. Greene, Greene and Company; Joe Albert!,
Walston, Hoffman A Goodwin
Co., Inc.; Hoy Meyer, Nielson, Gordon A Co.; Fred Stern,
Tellier A Co.; Bill Carey, Albert H. Week A Co.
Hanns E. Kuehner, Joyce, Kuehner A Co.;
Ungerleider
and
Elbridge Smith, Stryker A Brown; Adrian A. Frankel,
Gerard Hulsebosch, God nick A Son
Cabbie,
Greens
Burns Bros, A Denton, Inc.; William F. Thompson,
Company; A1 Frank, Ladenburg, Thalmann A Co.
and
Jack
Gertler, Barr Brothers A Co.; Gus Schlosser, Union Securities Corporation;
Harry Peiser, Ira Haupt A Co.; Jim Musson, B. J. Van Ingen A Co. Inc.
John J. O'Kane, Jr., John J. O'Kane, Jr. A
Betty
Kuzma,
Antlers'
Mitchell
Co.; Louise Spinoso and
hostesses; Irving Feltman,
A Company
Bill Chave, Hornblouter A Weeks; Bill Eiger, Good body A
L. E. Copple, Smith, Barney A Co.; Edw.
Co.; Jim McGivney, Hornblower A Weeks;
Zinna, Smith, Barney A Co.
24
The Commercial and Financial
(2240)
Chronicle
...
Thursday, December 11, 1952
At the Antlers' Restaurant
Reilly, J. F. Reilly & Co, Incorporated; Arthur Schwartz, Bache & Co.; Hank Serlen,
Josephthal & Co.; Sidney Holtzman, J. F. Reilly & Co. Incorporated; Bob Herzog, Herzog & Co., Inc.
John
Catharine
Edna Chipak; Charles Carroll and
proprietors of the Antlers Restaurant
Schepf;
William
O'Connor,
Kenney, D.
Frank Eiras,
Ted
John R. Stein, J. F. Reilly £ Co. Incorporated; Samuel Weinberg, S. Weinberg £ Co.; John W. Bair,
M. Byllesby and Company, Incorporated; Douglas C. Alexander, Joseph J. Lann Securities, Inc.
& Co.; Harry
Michels, Allen & Company; Sam Milt, J. Arthur Warner & Co. Incorporated
Plumridge, J. Arthur Warner & Co., Incorporated; Ely Batkin,
Bathin & Co.; Sam Englander, Englander & Co.
Fitzgerald £ Company, Inc.; George Leone, Leone & Pollack; D. Raymond
Raymond Kenney & Co.; Jim Brewer, John C. Legg & Company
H.
Jim Campbell, H. C. Wainwright & Co.; John McLaughlin, McLaughlin, Reuss
Dick
Abbe,
Masterson &
Sam.
Gronick, Garfield & Co.; Dave Wittman, Stanley Heller & Co.;
Steve Blanchard, Sthuabacher & Co.
Shields & Company; Daniel G. Mullin, Tucher, Anthony & Co.; Joe Eagan, Frank C.
Co.; John French, A. C. Allyn and Company, Inc.; Pete Steven, A. C. Allyn and Co., Inc.
Henry
Oetjen, McGinnis & Comany; Louis Mcintosh, J. & W. Seligman & Co.;
Cappa, Bendix, Luitweiler & Co.; R. J. Petke, Garvin, Bantel & Co.
Michael
Volume 176
Number 5176
.
.
The Commercial and Financial Chronicle
.
(2241)
At ST ANY Business
David
Goldstein, Newburger, Loeb & Co.; Joseph Guiton, C'raigmyle.
Finney & Co.; A. Joel
Sartorius & Co.; Ed Jacobs, Steele and
Company; Bill Kumm, Dunne & Co.
Cites
when
Roland P. Soule, Vice-President of
Irving Trust Co., New York,
common equity capital is six times as expensive as borrow¬
Urges corporate executives
of return
rate
on
the
Speaking at the Winter Meeting
new
of
the
Manufacturing Chemists'
Association, held recently in New
York City, Roland P.
President in
Soule, Vice-
I
'
"The
a
and
i
r v
Trust
n
Co.
New
g
.
finan-;;;
cial
to
nize
,
that;,
stock
Roland
Soule
P.
will
.
has
Some
now
twice
as
much.
much
as
20%
as
on
equity-financed projects merely to
break even from the stockholders'
nnint
point
oi
wise
its
the
improving
(3)
capital,
risky
r
J
capital.
Mr, Soule
is
safe,
c
s
has
q
y
bor ow
in..the
y
,
by
some
ap-
trusts
pretax
a
.
of
18%
for
surtax rate of 52%.
the
He added) «In any one year the
more
favored stocks
consistently
command much
the
less
higher ratios than
favored
This
ones.
dif-
ference
in favor again seems to
be largely a matter of confidence.
the
^nd
the
confidence
companies
to
seem
the
is
highest in
whose
investor
earnings
to
have
the
highest 'quality'."
.,
.
...
.
u
to
j
be
j
determined
Mr.
Soule
said, by
things: stability and durabil-
'stability'
resistance
means
to
of
a
other
company are
more stable than
those
steel, machine tool or other
capital
goods
company
of
the
a
0r
pauper
ity'in earnings,
the
is
on
capacity
to
type.
'Durabil-
the other hand,
resist possible
Jong-term developments of
an
ad-
appearance
of
markets, the tech-
nological obsolescence of products
or pr0cesses,
and the appearance
0f
competition.
new
U(d
are
companies
in
Single-prodindustries
new
particularly vulnerable to such
contingencies,
whereas
well-diversified, well-managed and
growing companies in proved industries
The
are
much
stocks
of
more
the
immune."
well-diversi-
fied chemical companies have
considerable
was
last
common
week.
Presum¬
ably, aside from general
considerations,
many
market
traders
favorably
were
impressed with
earnings statement for
the
road's
the
month
of
October.
reported net
sinking funds, of
before
$1,852,103
almost
or
income
month
the
to
came
interim
the
like
brought
for
the
the
above
the
Moreover,
showing
results
well
Net,
in
earlier.
October
date
double
realized
year
a
cumulative
ure.
the
For
the company
month
1951
year
fig¬
sinking funds,
$2,957,987 for the 1952
before
compared with
$1,990,949
Coming
top
on
of
year-to-
a
gain of 160% in net income,
funds, in September, this
October showing has apparently
raised
hopes that for the year
year
before
1952
least
at
the
full
preferred
dividend will be earned, and paid,
and
that perhaps there will
be
something
equity.
left
For
available
after
for
dividend
income
allowance
other
calculated
sinking
and
Also, the
preferred
is
the
on
cumulative
only to
after funds,
earned,
agement
to
make
the
of
the
extent
and it has
practice of the man¬
not been the
excess
purposes
is
for
junior
funds.
reserve
dividend
the
payments
Thus, distributions in recent
have
been
In
1949
in
earned.
amount
years
erratic.
the
share.
Nothing
out
an
as
as/that of new comRemarking on the great diver"f|oth retained earn- gencies to be found among the $5.00, in the
new;|common stock are capital structures of 20 diversified 1950, also, a
cost' of
a
com-
—
when
a
the
common
more
pricestock
confidence toward both the
as
a
whole
and
mar^
individual
chemical
companies,
ll Itri 11 It-ctl
asked
this
by such differences
been
in
Mr.
WllljJCIIliCa,
whether
their
a
iVll
Soule
OUU1C
.
justified
there have
Capital
as
relative
structures,
in
may
more
due
can
rates
of
some
common
instances
is
no
structure
more
merit
conservative
than
to
an
to
earnings
made
during the
earned
distributed
on
Therefore, there
tions
on
the
stock
a
year
at
share
but the
$2.55
of
March
are no
Last
payment
amount
1, 1952.
accumula¬
the
heavy
were
and
the
were
its
a
as
snows
in
the
Missouri
River
floods.
Finally, the road
seriously affected, particu¬
larly with respect to its important
iron
ore
tonnage, by the pro¬
longed strike in the steel indus¬
try.
According to recent press
reports the management has esti¬
mated
that
the
combination
of
these
developments resulted in
the loss of between $6 million and
$7 million in revenues.
It was
further estimated that flood dam¬
inflated
age
by
expenses
approx¬
imately $1 million.
Chicago & North Western is
traditionally a high cost operation.
It
does
ger
a
relatively large
business, a substantial
tion
of
the
which
costly
is
passen¬
propor¬
represented
commutation
It operates
by«
service.
large amount of low
density branch line mileage. Av¬
erage
haul on freight is quite
short, as a consequence of which
a
the rapidly
mounting cost of ter¬
minal operations has weighed
par¬
ticularly heavily on the road. To a
considerable degree these are ba¬
sic problems, inherent in the na¬
ture of the property and charac¬
teristics
Thus,
the
of
territory
served.
with increasing diesel-
even
other
and
constructive
tio amounted to $46.7%. While this
represented
more
dropped,
No
there
favor¬
had
1952
was
ment
of
$2.55
There
has
in
in the winter months
spring
In
$1.50
the common
after funds, of
an
unneces-
was
year.
again
highly
Western
troubles
of
whole.
regular
on
to only
preferred.
the
entire
was
capi-
earnings
recent
For the nine months through
September the transportation ra¬
and
the
following
dividend
amounting
North
share
been
$0.15 a
on the
be liberal with stockholders.
was
un-
paid
with
earnings,
able,
have
steps operating costs remain high.
Thus, it can be seen that
when earnings have been there
the
management has tended to
include
equity without
only
was
paid
months
pre¬
$1.61.
on
unnecessarily
tal
every-
was
of
year
like
get out of date and
risk, he said.
"There
out
was
growth and other operating characteristics.
thing else,
share
on
to
accumulation
along
stock..
is the highest;"
Price-earnings ratios in Mr.
Soulet's..opinion, reflect investor
of :,fcet.
over
paid,
common
CUIIIIIIVII
While
year-to-year
comparisons
in
most
ization
earnings
stock but the $0.15 earned carried
i^kholdertheircost
this year.
,
for the first 10 months of 1951.
con-
same
time, except what may be earned
.
ern
in-
herently
prince
there
in
railroad
buying of Chicago & North West¬
to
,
interest
speculative
,
the ups and downs of the business
0f
more
stocks
net
±
appears
the revival of
income,
,
es 3uahty consist
«
Chicago & North Western
With
half higher than those of the DowJones industrial stocks, he pointed
earnings ratiq of its
'
cost
cost
equity capital, on the baonly of combined normal and
sis
amounted
familiar form
,
•.
the
now
stiU equWa-
ferred
stock is the lowest
or—expressing
the same
.
cost.^s w
invent
and
The ratio is
sistently commanded price-earnings ratios from one-third to one-
is always the lowest when
the 'earnings yield' of its common
interest y e
yields,, but
large
managements
relationship in
,
cost.of new preferred by preferred
dividend
A
pany
eyes
have
costof borrowed
-ured
alone.
capital. And the
common
equity capital to
P
stockholde^, P
common stocK, an
earnings
against
eqUjty
eommon
stock,
their
protection
merely uuiciljin. luinioui
different forms of
pointedout.
Yet
prac-
recent
in
ings and
only type of capital which
c°st.
,
a
of
however, have been used
mon
oriilltv
...
accountant
the
..
purpose
this
js
borrowed
r>/-»c.flxr
long-term out-
therammon
-
...
the
.
portion
a
to
increased
disposed to regard retained
earnjngs as free 0f an Cost, Mr.
Soule disputed this viewpoint. He
pointed out that in the eyes of
capital structures to
make sure the best balance exists
cheap,
as
While
ana
with
rose
verse nature- Such developments
might include the shifting or dis-
pear
y
p
c
examine
and
In contrast,
years has gone
plant expansion. When thus
used, the question of their cost
becomes important.
that this progre
fully reflected in highe P
for their stocks and lower costs of
capital
in 1951.
int0
progress so
between
common stock prices,
contingencies, Mr. Soule
Not all of their retained
said.
J
Keep
of
sarily conservative engineering high may become—at least from
design. Each must have an ade- the common stockholder's
point of
quate safety factor, of course, but view—little more than a
costly
a
safety factor which is needlessly waste," he said.
common
Dow-Jones index
retain
portion
be
equity
to
.
for
equity
q
fully informed of their
their
the
it
Statistics principally,
earnings,
a
business or.other-
a
in
pension
are
various
<
that
recognize
the cost of
earmngs,
^
.
to
earnings
iney
capital is one of the advantages ot
diversifying
because
companies
V*
It
Standard
,
tice
undei
(2)
in
yield"
taxes
Most companies make it
p
,
reduction
new
"Cost"
estimating what rate of return to
expect from new projects of certypes,
If
earn-
its
Retained Earnings Also Have
_
Many managemen s m g
itably take several steps
today s conditions he said
should
(1)
U eir
tain
Using the
VJes ,°
^
view
view.
of
with
earnings
taxes.
1937 to 20.9%
companies, he added, must
earn
When, for
the pretax cost of preferred stock
f°se only , from 5.3% to 8.3 Jo *n
the same period. The cost of longY dechned from<
**°/o
expensive as borrowed capital,
said, whereas before the war it
only
earnings
earnings to
sells
1951
of
efflct*'of "increaM^buv6
the
lent
1950,
stocks
Mr. Soule stated that the pretax cycie. Thus,-the
earnings
cost °f common equity capital rose pharmaceutical, tobacco or
from an average rate of 8.1% in consumer goods
important
held in postwar
financing, but industrial companies now find it nearly six times
cost
share
after
and
of industrial
stock and retained
earnings—deserves the
he
company
a
$10, the
10
bv
mfnt
average yields of tw0
A1 bonds and industrial preferred ity>
equity—in both the form
it
he said.
ine
fore taxes is 20%.
probably remain
on
a high level in the foreseeable
future, Mr. Soule pointed out that
position
common
its
S
mar¬
compared
In
50%, then the earnings yield be-
prewar
new common
a
$1
at
10%
is
,
greatly in cost
common
of
ings
eq-"
and
the
ratio of
price,
example,
capital
years
by
com-
measured, at
is
of
eyes
stockholder,
,'
has, risen
since
capital
the
in
*?' +°r
market
their
planning
as
.east
y
common
of
moiv. stock
new
■
.
recog¬
in
uity
Hence the cost of
1937.
7,
ZutTiT but thifis
has
type of ownership position which
ings.
,
well
stockholder
requires
recognition of his equity in earn-
of
managements will do
common
in
industrial
about
confidence
fully
cannot be valued in terms of dividends -alone ibut which
York,;;,
warned
not
must be considered.
Planning:;;of j
the
is
to
nearly
measured
by common dividend
yields, he saidf Something more
charge of Re¬
search
stock
common
Krasowich, Bonner & Gregory; Wilbur Krisam, Geyer & Co.
Incorporated;
Les
Gannon,
Morgan & Co.; Bill Swords, Zucherman, Smith &
Co.; Steve McDonald, W. E. Burnet & Co,
price-earnings ratio
Dow-Jones
15
sights in estimating
projects.
Meeting
Peter
the
sank
to raise>
new
Joe
stocks. The confidence in the
ket as a whole was lowest in
High Cost of Corporate Equity Capita!
Isays
ing.
Canter,
25
present
the
over
ratio
modest
a
a
was
than
improve¬
earlier, when
47.2%, it was still
points higher than
year
12
the Class I average.
wide
Some of this
disparity, but by
the major
rally
no
means
portion of it, is natu¬
to the highly seasonal
due
nature of the road's business. The
full year's ratio will not
likely be
as
low
as
45%.
Another factor to
be borne in mind is that the
pany will
it did last
retroactive
mail
pay
Thus, the chances of
on
the
main
com¬
not have this year, as
December, benefits from
common
increases.
any
earnings
this year must re¬
highly questionable.
The Commercial and Financial
26
Chronicle
Thursday, December 11, 1952
...
(2242)
Finds Inflation Cnrb in Flexible
Kuhn, Loeb Arrange
Federal Reserve
Reporter on Governments
Our
With S. G, Warburg
Co., investment
City, and
S. G. Warburg & Co., Ltd., Lon¬
don, have made arrangements for
coopera¬
is
tion
between
In
active side despite
close
Kuhn, Loeb &
of
bankers
To
give ef¬
The longer-term
Kuhn, Loeb &
as
G.
S.
re¬
Ltd.,
of S. G. Warburg & Co.,
man
residence in London.
with
newly eligible
Toronto with the
L N T North American
of
name
take
will
which
Holdings,
Ltd.,
industrial
and
financial positions
mainly in
the
United States and
Canada.'.; /'-»
V'''':
•,
on
of
520.000
Co. Inc. and
Stuart &
$8,-'
offered
Dec.'5
Ry.
Northern
Great
certificates,
2%% equipment trust
the standpoint
of new money purchases as well as switch buying, with the outof-town commercial banks supposedly the leading buyers of this
by the
City banks, have taken on quite a few of these
New York
The
bonds.
due
2V4S
priced to yield from 2.15%
Their
issuance
authorization
by
railroad
L.
will
estimated
to
Co.;
Following
such
Despite opinions that some of the lower coupon bonds,
as
stitutions, it
to
13/4S, might have more attraction for certain in¬
the IV2S and
appears
though the 2%s of 1958 continue to have
as
According
following among the deposit banks.
a
security
reports, this
is
still
the most active
of
one
eligible
good-sized two-way market is the leading characteristic
of this
obligation, with not only the commercial banks, but non-
bank investors showing an interest in
and out of the 2%s of 1958 have been
market that is around for this
this security.
Switches into
responsible for the favorable
security, although new money pur¬
Hayden, Miller & Co.; The Illinois
chases, according to advices, have also helped to keep it in good
Co.; McMaster Hutchinson & Co.;
shape,
The Milwaukee Co.; William Blair
were
&
Co.;
McCormick
laney,
Wells
Yantis
&
&
&
Co.;
Co.;
and
S.
are
not supposed to be as large as they
long ago.
so
despite
the
The
issues
well
been
have
bought
better return that has been available in the shortest Government
Co., Inc.
Federal Reserve and the
some
term
It is reported also that tax loss
obligations into the bills.
switching has in
U. S. TREASURY
some
instances enlarged the temporary positions
have tended to coun¬
the anti-inflationary effects
the economy
teract
Despite all the talk about what
be
in
1953,
brought
MUNICIPAL
SECURITIES
of
Some
went
there
is considerable
into
buying
the
those who sold
into
short-term
investments
and
money
market conditions may
bullishness
Government
longer-term
the higher income
which has
around,
obligations.
Treasury issues, and
securities, have disposed of the temporary
put the proceeds into
other longer-term Treas¬
praise tentatively its achievements
and
shortcomings.
Perhaps the
fact to be noted
is
a
fair amount of new money
people
the
pears
to be around for the higher income Government obligations.
State funds have again come into the market for some
of the
higher-income restricted obligations and, despite the thinness of
the
market
as
a
whole, it is reported
acquire the merchandise they
and without any too great
Savings banks in
8c Co.
INCORPORATED
ST., NEW YORK 5
WHitehall 3-1200
;
45 Milk St.
CHICAGO 4
4*
ST 2-9490
5
:
BOSTON 9
HA 6-5463 J
amounts of
ment
some cases
far
to
quotations.
have again been letting out small
Despite the increase in deposits, these
to have
plenty of channels, other than Govern¬
seem
can
put surplus funds.
the Treasury issues
are
on
the inactive side
concerned, with no change in this
status looked for in the foreseeable future.
subject,
Payne,
Turnure,
T. Veit, H.
Huntting, and George
it
is' under¬
stood, to the usual approval of the
New York Stock Exchange.
The
proposed partners are members of
Lawrence
Turnure
& Co.-Blyth
& Bonner.
is
It
also
of
offices
that T. L.
understood
will take
Co.
&
Watson
the
over
&
Turnure
Lawrence
Co.-Blyth & Bonner at 50 Broad¬
way.
Rogers Pres. of
Reserve
H. G. Flood Co. Ltd.
the beneficial effects on
claimed for it by
or
higher money
of
advocates
The government bond mar¬
rates.
ket and the
high-grade bond mar¬
general have not collapsed.
ket in
be
prices have declined,
has been only
in character.
Although
sure,
the
decrease
moderate
the Treasury has had to pay some¬
what
rates of interest on
higher
and medium-term ob¬
ligations, it has not found it diffi¬
cult to refund matured obligations
or
to borrow new money.
open
policy,
market
government
medium-term
obligations which were readily
taken by the market. At the same
prices
commodity
time,
reached
and
at
MONTREAL, Canada—John C.
the
Rogers has been elected President
C. Flood & Co. Ltd., invest¬
of H.
the
of
the
has
influence
as
increased
remained
of the
same
primarily
military expendi¬
before,
increase in
wages and in the cost of produc¬
tion, and the great activity in the
constant
the
construction
the writers claim,
market policy
moderate, and at times
flexible
has
been
Carl
open
It has not endeav¬
example set by
the central banks in other coun¬
Street,
members
York
New
of the New York
Stock
1, will admit
L. Loeb to limited part¬
Exchange,
Frances
Co.,
City,
Loeb, Rhoades &
M.
Wall
42
Jan.
on
nership. On the same dae, Theo¬
dore
Bernstein,
general
partner,
will
become
limited
partner.
Samuel L.
the
a
Hornstein, members of
Exchange,
and Everett
Cady, limited partner,
Ware
will retire
from the firm Dec. 31.
passive.
ored to follow the
tries,
which
credit
adopted
measures
an
merits,
in order to
adverse
balance of
The policy
desire
to
(Special to The Financial
payr
-
MINNEAPOLIS, Minn.
A. Stoner,
of the Reserve -of J.; M.
regain
Chronicle)
curb
authorities has been based mainly
the
Joins J. M. Dain Co.
restrictive
the forces of inflation and to rec¬
on
Board.
Loeb, Rhoades to Admit
industries.
On the whole,
the
tify
the
'
economy
forces
tures,
announced.
is
Vice-President
Flood, Chairman
Carson
H.
and
peak in
new
a
further points out
bulletin
basic
it
dealers,
ment
Terence C. Flood is
August, 1952.
The
Rogers
level have continued to
consumer
rise
C.
John
the
found it advisable, for
in many years, to
time
first
offer
In fact,
flex¬
of the
institution
the
even
investments.
securities, into which they
as
able
after without too much trouble
upon
Life insurance companies continue to be
as
been
Treasury securities, with the proceeds going into non-
Government
institutions
were
effect
they have
R.
Lawrence
William
Kerr,
economy
some
the
investors, because of the better feeling that ap¬
Federal
new
firm
the
John
market
policy
has
not
brought in its wake either the dire
consequences
predicted by some
under
certain non-bank
231 S®. La Salle St.
the
that
at present
Also there has been
in
Thurston W.
open
that
levels.
T. L. Watson &Co.
first outstanding
the
buying of the longer-term bonds both by commercial banks and
Audrey G. Lanston
market policy
authorities has now
operation for over one and
one-half years, the bulletin states,
and it is therefore possible to ap¬
uries, because they believe the higher income bonds are attractive
■
policy.
of the new
Treasury
Long-Terms Increase in Favor
STATE" ~
15 BROAD
influences operating in
since
bills and certain of the certificates.
•
and
points out, however,
bulletin
the
that basic
ible
in Treasury
Treasury
ending the controversy over credit
control and interest rate policies,
short-term
switching from other near-
obligation has, however, brought
To Be Admitted to
•
but
higher yields at which the Treasury bills have been going at.
short-term
L. Turnure Partners ^
inflation.
T. L.-Watson & Co., .40 Wall
In appraising the results of the
Street, New York City, members
policy inaugurated in March, 1951, of the New York Stock Exchange,
following the accord between the will shortly admit to partnership
To
not
The
MulF.
though these
even
in
combating the forces of
been in
Baxter,
& Son Inc.; Ira Haupt & Co.;
International
University r
the abandonment by the Federal
Reserve authorities of the policy
of supporting government bonds
at fixed prices has made the Sys¬
tem a more effective agency for
of New York
Finance
investors
the
general to their policies.
of
Institute
the
of
of
and
banks
Research Director,
Marcus Nadler,
watching the reaction of the
way,
Marcus Nadler
Rowland Collins
G.
of the Reserve
A
Inc.; Greg¬
'
The flexible open
issues.
Co.; Freeman & Co.;
Wm. E. Pollock & Co.,
Treasury and to keep the
The Reserve au¬
have been feeling their
by the
prices better than those currently prevailing.
& Co.;
R. W. Pressprich
Williams &
of in the not distant future at
the belief that they will be disposed
considerable of
&
Dealers, it is in¬
dicated, have taken modest positions in the 2V4S of 12/15/59-62 in
se¬
standard-gauge
new
equipment
Rothschild
F.
ory
be
participating in the offer¬
are
purchases have been responsible for the greater part of the
slightly enlarged volume which has developed.
2%s of 1958 Have Large
$10,655,500.
Also
ing
to
deposit banks
activity in this bond, but it is reported that new
Interstate
the
by
certificates
These
cost
subject
was
this
Switching has here again played a part in the some¬
Monday.
Commission.
Commerce
cured
to maturity.
according
2.95%,
acting well,
been
security, which will be eligible for purchase by the
money
were
likewise
have
12/15/59-62
that considerable attention is also being paid to
with reports
next
obligation is
exactly inactive as far as this
since it is indicated these institutions, led
semi-annually July 1, 1953 to Jan.
to
been
concerned either,
equipment trust of 1953, maturing/
The certificates
large money center deposit
However, it seems as though the
what increased
1, 1968, inclusive.
financing operations in order to
cash redemptions
avoid large-scale
thorities
fairly good reception, both from
have been given a
banks have not
Halsey,
principal buyers of the
eligible 2V2S due 12/15/63-68
According to reports, the nev/ly
.
issue.
Halsey, Stuart Group
Offers Equip. Tr. Cffs.
associates
2M>s of 1963/68 and the 2V4S
Eligibles in Demand
New
in
company
and thereby to keep the
market uncertain. At the
same time, the Reserve authorities
have regarded it as their obliga¬
tion to assist the Treasury in its
market orderly.
& Co. and S. G.
Warburg & Co., Ltd. have formed
a
con¬
pattern
interest in the
restricted issues and the 2%s of 1958.
Loeb
•Kuhn,
not
was
money
banks showing an
commercial
with
bonds,
tap
operations
rowing
sistent, varying from time to time
in order to avoid setting a definite
though there are reports that there
amount of new cash buying,
pension funds continue to be the
State
Warburg
Chair¬
mains
Treasury in its refunding and bor¬
of 12/15/59-62.
Siegmund G.
Warburg
through open market opera¬
tions and in general to permit the
ances
moderate increase in the
a
creation of reserve bal¬
the
over
the market as a whole, as far
especially in such obligations as the
the firm.
bulletin entitled
Market
a
Flexible Open
New
Policy," issued today by Dean G.
Rowland Collins, Director, and Dr. government bond market to seek
its own level.
The assistance the
Reserve authorities have given the
attention than in the
constructive attitude toward
quarters of the financial district.
activity is concerned, even
has been
of
name
According to
"The
issues have had greater
Switching is still very important to
of
Co. and to sign
the
the
certain
in
securities
these
act
behalf
short-term rates,
enlarged interest in these
higher yield that has been available in
because there is a more
recent past,
full
to
conditions are still pressing on
policy of Federal Reserve must meet
anti-inflationary effects.
new
basic influences, which counteract its
these obligations.
Siegmund
G.
Warburg will
power
point out, however,
brought about a somewhat
because of
securities
operation,
have
thin and rather in¬
market continues on the
bulletin of the Institute of International Finance of N. Y.
a
University, Dean G. Rowland Collins and Dr. Marcus Nadler
minor pick-ups in volume here and there which
attributed mainly to tax operations and year-end adjustments.
but this has
fect to this co-
on
The Government
The tight money
the two firms.
CHIPPENDALE, JR.
By JOHN T.
York
New
Open Market Policy
control
South
—
Jr., has joined the
Dain
Sixth
&
Company,
Street,
the Midwest Stock
Paul
staff
110
members of
Exchange.;
•
Volume 176
Number 5176
.
.
The Commercial and Financial Chronicle
.
promotion of four officers to the
post of Vice-President, ' the promotion of four other officers, and
the election of eight staff mem¬
bers to official positions; The new
Vice-Presidents, all of whom had
previously been Assistant Vice-
News About Banks
CONSOLIDATIONS
,
NEW
BRANCHES
NEW
OFFICERS, ETC. .'
%
Bankers
and
REVISED
Presidents,
CAPITALIZATIONS
r
Winthrop W. Aldrich, Chairman
of
the
New
Chase-National
.
York* announced
Bank
of
Dec.
on
6
that he will retire from all of his
posts
in
Chase
the
(2243)
will also vote at the meeting upon
a
proposal, recommended by the
Board, to
increase the
capital
stock of the bank by $6,000,000
by the declaration of a stock
Babcock,
Graham
H.
Brewer,
W.
N'eal
Fulkerson, Jr., and Robert B. Lee.
Additional promotions were those
of Frederick J. Behlers, Henry F.
Dobbin,
Assistant
Vice
ization,. effec¬
tive
each
members
On
that
19.
b y
J.
tions
Sidney
ing, which
holders
Mc¬
Cloy, formerly
President
the
The
f
o
tional
the
Bank
struction
who
and
City
bank,
Trust
Recon¬
to share¬
was mailed
Dec. 5.
on
Farmers
Bank
Company, and subsidiaries,
are
"participants in the bank's
Retirement
Plan, have reached
Developm e n t, Winthrop W. Aldrich
age 30 and completed five years
and more re¬
of service, is designed to supple¬
cently U. S. High Commissioner ment
the
Bank's
Retirement,
for Germany. Mr. Aldrich stated
Group Insurance and Hospitaliza¬
that the Chase board of directors
tion
planned to take action
under
to
his formal
accept
resignation
McCloy to be his
and to elect Mr.
successor
member
Dec. 10
on
Chairman
as
the
of
and
as
a
Plans.
the
to
Plan
smaller
combined
of
Profits
the
the
net
Bank
of
limited
be
3%
(a)
operating
of the
earnings
Trust
and
shared
be
to
will
L.
Company
N.
posi¬
Brandin,
Jr.,
John
Joseph C. Fox,
elected
were
Assistant
Treasurers; Quintin U. Ford
William
H.
Deale,
who
Assistant Secretaries,
named
were
Theodore
and
Spahn,
who
Manager of
Assistant
made
bank's
Mr.
office.
London
was
the
Bab¬
cock has been with the bank since
1948,
and
is
Rockefeller
since
the
1924,
with
be¬
bank
of the
Robert B. Lee
the
since
bank
1929
and
of the amount of such earnings,
lawyer and former member of the after applicable taxes, remaining
of Milbank,
Tweed, Hope, after deducting a return of 5%
Hadley & McCloy, which firm is of the combined average capital
legal counsel for the Chase.
Mr. funds of the Bank and Trust Com¬
ment
officer, associated with the
handling the bank's busi¬
Aldrich also
of
fective
board, both ef¬
McCloy is a
19.
Jan.
before
taxes,
(b)
or
one-quarter
Mr.
firm
same
firm,
was
member of the
a
which
known
was
as
Murray, Aldrich & Webb when he
left the practice of law in 1929 to
become President of the Equitable
Trust
Company a few months
prior to its merger with the Chase
National Bank
rich
said
in
that
Mr.
1930.
Mr.
Aid-
McCloy
President will be the chief
McCloy,
educated
is
who
57
years
Amherst College and
School after inter¬
at
Harvard
Law
rupting his law studies to
as
a
Captain of artillery
the A.E.F. in France.
mitted
the
to
New
After 20
1921,
tice
"National
share
law
of
He
years
with
serve
with
ad¬
was
York
Bar
in
in the
prac¬
New
York
two
the
at
profit
this
of
rate
rate
remaining
division is fully
basic
will
not
distributed
be
their
to
$6,000 at
ll/z% of the
over
to exceed
of
Any
monies
employees earning
a
of their
5%
to $6,000.
up
sharing
after
employees will
annual
salaries
$6,000,
or % of the residue
year's combined net oper¬
of that
Bank,
U.
appointed
for
sioner
S.
High
with
problems
a
Commis¬
re¬
Mr.
Mc¬
consult¬
as
the Ford Foundation
in
connection
relations.
ternational
is
was
Since
Germany
Cloy has been acting
ant
1949
Germany.
from
turning
in
and
with
Mr.
on
in¬
McCloy
member of the American Bar
the
Association,
Bar
Association
of the City of New York, etc.
*
«
New
has
York
*
National
Chase
The
Bank
announced
earnings, after applicable
remaining after deducting
5% of the combined average capi¬
taxes,
basis
the
of
bank's
profits
in
These
1952.
staff:
ficial
Salary
George
Jay
time
the
increase,
J.
Jaeger,
in
Administration,
and
Assistant
Department.
tf
Manager,
Foreign
ft
announced
*
on
by
voted
000,
to
$170,000,000, by transfer
approximately equal amounts
in
undivided
from
tain
profits
5
that
capital
funds
Trust
Farmers
Charles
S.
of
City
Bank
Company exceed
ft
ft
&
McVeigh,
McVeigh,
Senior
a
has
been
elected
a
Suites Trust
of New York, it is
nounced
by
President.
New
of
S.
Ban,
York,
York
University-
Medical Center
Sloan
•
an¬
Benjamin
Strong,
Mr. McVeigh is a Trus¬
at the annual meeting,
President
ci
13, an employees'
Association.
profit
sharing
which
has
plan
*
been
adopted by the Board of
-f
»
Trust
has
Assistant
Trust
been
Special
in
hundredth
The
Trustees
regular
England
States.
He
Assistant
dividend
per
1953
to
Dec.
also
share,
16, 1953.
the
.is
named
W.
head
Agency
of
Canada,
of
it
New
York
Bank
announced.
Agent
succeeds
E.
at
C.
retiring after
been
Royal
is
Ganann,
long
a
W. H.
Agent
New
of
Mr.
New
Holahan
the bank.
at
;
has
the
The
with
since
the
Manager's
Toronto.
In
1938
as
seen
General
department,
he
joined
the
Business Development department
at New York Agency, where he
appointed Assistant Agent in
was
1945
and
Agent
in
1949.
joined the bank in
Sharpe
at
Victoria, B. C.
at
a
Mr.
1925
He has served
number of branches in Brit¬
ish
in
an
appointed Assistant
was
New
at
York
Holahan
Agency
has
spent
in
his
with the bank's New
office, having
joined
it
in
ft
-r.
the
and
Down
Western
through
Germany,
the
United
Chamber
man
of
.
Commerce
in
New
York, is the sponsor of an
exhibit of West German products,
services and transportation facili¬
ties now on view in the 15 Rocke¬
New
Arthur S.
the
Town
i
Colt,
President
of
Ht
Company,
New
on
Germany by Mario Diez,
in charge of the
Vice-President
the
The officer in charge
Jr.,
Little,
is
office
new
James
G.
Vice-Presi¬
Assistant
dent, who recently returned from
his second tour of active duty as
a
Major in
the
United
States
Army Signal Corps, during which
time he
the
with
served
military
Advisory group assisting the Chi¬
nese
Nationalist
James G.
tary,
in
forces
Assisting
mosa.
For¬
Little
Mr.
is
Agnew, Assistant Secre¬
assigned
formerly
to
the
Fifth Avenue Office of the Manu¬
Fifth
Avenue
and 43rd Street and Miss
Virginia
Trust
facturers
L.
at
formerly of the 57th
Office, 741 Fifth Avenue
Kraus,
Street
at 57th Street.
:;s
Board
the
Board
ft
Savings
Bowery
York
Bank
December
on
of
of
The
New
elected
8
W.
Harry
Goat
and
Treasurer;
A.
Myers,
Elbert
B.
Edwin
Schenkel,
Vice-Presidents;
Outhwaite,
Aubrey
J.
it
and
F.
trollers;
Albert
Reilly,
S.
Deputy Con¬
Doolittle, As¬
Executive
Principal
As¬
sistants. Mr. Smith and Mr. Larsen
were
promoted
from
Assistant
Mr. Myers was
Dec.
8
the
promoted from Assistant .Treas¬
urer,
Mr. Goat from Assistant
Secretary and Mr. Schenkel from
Deputy
Mortgage
Officer.
Y.
of
Floral
Park,
-Franklin
Franklin
Na¬
Square,
written
on
Dec.
6,
"Open House" celebra¬
was
.
commemorating the occasion
held.
The newly decorated
was
and remodeled
was
in
the
office of the bank
the
to
open
public
morning
to
evening.
Arthur T.
dent
the
of
from
in
9
Roth,
Franklin
9
the
Presi¬
National
Bank, in his announcement of the
bank's program, issued an
to all to participate
invita¬
in the
tion
ing
the
on
tional
nounced
M.
on
appeared
in
While
refer¬
ence
to the increase in the
capital
of
1630.
page
the
Franklin
in
made
these
The
under
the
Nov.
Ac
title
New
Rochelle
Joscph
A.
plans
through the ranks to
He was elected
1942, Assist¬
Cashier in
1851, is one of the nation's largest
savings banks with resources over
$590,000,000, and surplus and re¬
serves over $75,000,000.
ft
ft
Heinrich,
Lincoln
Mr. Brooklyn, N. Y.
the
on
in¬
mer¬
in
appeared
ft
these
ft
ft
of
the
First
National
Bank
&
Trust Co. of Evanston, 111. by the
of
new
stock, increasing
$500,000 to $1,000,000.
ft
it
*
The recent increase in the capi¬
tal of the Hibernia National Bank
of
New Orleans from $2,000,000
$2,500,000 (by the sale of $500,000 of new stock), became effec¬
Nov.
on
24.
Details
ft
Dec.
on
of
the
ft
of
is
the
of
the
Key,
Jr.,
made
of
4
National
E.
Board
Bank
ft
of
The
of
Marshall,
'
b,y
Lockerby
been
1937,
his
in
that
of
already
duties.
the
he
as¬
He
has
since
International
was
the branch in Kobe,
the
operations.
Department
time
Executive
organization
in
in
recently
charge
has
new
the
and
Banking
At
in
international
sumed
Officer
Smith,
G.
of
Man¬
since
1948.
assigned
to
Japan, where
he served for two years as Assist¬
;
Vice-President
Bank of
Savings
was
Russell
Mr.
Association
announced
Vice-President
branch
National
Assistant
as
Operations
was
bank's
London
Savings
&
and
ager
Ellsworth
of America
Francisco
London
ft
of
the
to
the Bank
San
ant
The
in
An addition of $500,000 has been
made as of Nov. 24 to the capita),
Trust
Vice-President in
John
on
columns Sept. 11, page 1923.
of
Kaiser
ant
of
effective
latter
Co.
each. An earlier item
ger
Lockerby
1923.
Mr. Kaiser, who has been
with the bank for 27
Assistant
the
Trust
%
has
rose
of
creasing its capital from $500,000
to $1,000,000, in shares of $10 par
Appointment
associated
years
New
Texas.
PvpciHpnt
years.
the
Co., both of New
28,
following
the
action
by the stockholders of the
taken
Chairman
Trus¬
tee since
Huguenot
with
Rochelle, N. Y., became
Mr.
a
the
of
Trust
effective
been
Nov.
ft
Company
Rochelle
First
Board,
1.
ft
merger
Trust
death
of
also
Bank
columns
,
ft
ft
elected
the
National
Announcement
1 942,
Chairman
of
30,
President
was
issue
our
Oct.
Eldredge,
since
Floral
1835.
Elliott
9.
Dec.
of the
merger
enlargement of the capital were
given in our Nov. 13 issue, page
Vice-President
hardt,
Bank
when the
tion
of
the
and
tional
tive
an¬
was
Assistant his present office.
Hood
Company
Y.
to
of
Comptroller in 1943, Assistant
1944. Executive
in 1945.
In 1950,
sistant Secretary; Ralph A. Moller,
Stanford Holzman, Edwin W. Bill- he was elected a member of the
Board of Trustees. The Williamsmire, Martin J. Lindloff, Martin E.
Evers
and
Cortland
O.
Burck- burgh Savings Bank, incorporated
Herbert
Trust
Executive
Williams-
Montague T. Smith and John W. he helped guide the bank through
difficult
war
and
postwar
Larsen, Vice-Presidents and ap¬ the
pointed
merg¬
ing of the First National Bank &
ft
Trustees
the
$
chapter of the
*
Trustees, ef¬
fective Jan. 1,
Jan.
of
Serving
during
s|i
ft
from
burgh Savings Bank, of Brooklyn,
N.
Y. was elected President
by
Eldredge
The
Heinrich
The final
sale
sji
Joseph
A.
Kaiser,
Vice-President of The
ft
ft
•
announced
Western
bank's International Division.
of
Mr.
acting
the
New York.
Association
Glendale.
tary, Roger Saxton, Asst. VicePresident, East New York Savings
Bank; and Treasurer, William H.
Morrison, Asst. Manager, Corn
Exchange Bank.
]
States-Ger¬
vacated
Vice-Presidents.
ft
quarters
Officers
in
20, page 1933.
Office, 350 Fifth Avenue at 34th
in
of
>!«
Street.
Building,
Banks
resides
was
ft
1945.
only five days earlier by
Manhattan Savings Bank of
School
Park Bank with the Franklin Na¬
He
Street,
Electric
Graduate
treal.
Mr. feller Center windows of Colonial
Kuhn is in charge of the Foreign Trust
Company at Avenue of the
Department at the Empire State Americas and 48th
Secretary
suc¬
Vice-
event
with
drawings
for
five
major door prizes. An item bear¬
the
to
Mehldau,
Columbia, with the Assistant
Manager's
department,
Toronto, and at Head Office, Mon¬
General
an
United
promoted
ings
N.
has
the
of
and
service
with the bank at various branches
in Ontario, and in the Assistant
Ganann
Brooklyn. He
J.
of
Banking, Rutgers University, is a (l
past President of Group Five Sav¬
N.
Mr.
Carl
elected Presi¬
it
at the"
Kings County Trust
Company. Mr. Heinrich, an alum¬
nus
1951,
Agent.
1911.
of
ceeds
is
Sharpe, Assistant
will succeed Mr. Ganann
December 9
Towers Hotel,
York,
who
career
York
meeting held
President
«f
the ^annual " dinner
coming year will be: Vice-Presi¬
dent, Alfred M. Olsen, Cashier,
Lafayette National Bank; Secre¬
record
.jj
Ganann
at
with
15, 1952.
Joseph
of, theBankers .Club
Brooklyn
2,
Jan.
of
dent
of
dividend
payable
stockholders
York
background
and
was
a
of
declared
quarterly
$3.50
Company
with Manufac¬
a
New
of
;
anniversary) to stock¬
that Ernst
appointed
after
'•
■
declared
holders of record March
career
banking and brokerage in Ger¬
many,
4
Centennial
Mr.
Company. In 1923 Mr. Kuhn
Trust
■
$2.00 per share, payable April 13,
1953
(the Trust Company's one
entire
Vice-President
became associated
turers
Company
December
on
Agent
Manufacturers Trust
Stephenson
Partner of the law firm of Morris
Jan.
issue, page 1324), the shareholders
States
York
1951.
Kuhn
-
The Board of Trustees of United
President
announces
■
■
*
Flanigan,
Assistant
*
to approve
previously
an¬
(noted in our Oct. 9
*
C.
Horace
cer¬
$31,000,000.
tee
As
Southeast.
ft
and
After such
transfer,
with undivided profits estimated
at more than $60,000,000, the total
reserves.
Company
Dec.
the
000 shares of $20 par value each),
and surplus be increased $14,000,-
Bellevue
nounced,
stock
shareholders, capital be increased
$6,000,000, to $150,000,000 (7,500,-
the shareholders have been asked
Directors.
is
capital
Trustee of the United
The National City Bank of New
to be held
the
it
if
R.
son,
of
capital funds of the bank would
the exceed
$380,000,000.
The ' total
Thomson, Nationwide
Transfer Department, as Assistant
Cashiers; and Herbert P. Patter¬
York
at
of
following appointments to its of¬
Depart¬
ft
■■
York.
According to
Kleeman, President of Colonial
Manufacturers Trust Company
Trust, the display was arranged
of New York on Dec. 8 opened as a means of
tal funds of the Bank and Trust
illustrating the re¬
a
new
office at
570
Lexington cent progress made by West Ger¬
Company for such year.
It is
industry and is the out¬
estimated a full distribution at Avenue, corner of 51st Street, on man
these rates could be made on the the ground floor of the General growth of a recent trip through
ating
profit shares become
firms he left Cravath, De Gerspayable
to
employees
earning
dorff, Swaine & Wood in 1940 to
$6,000
or
under
annually
two
be consultant to Secretary of War
years
after Dec. 31 of the year
Henry L. Stimson. He later was to which contributions are related.
appointed special assistant to the Individual'
may request that pay¬
Secretary of War and in 1941 was ment be
deferred, as in the case
appointed the Assistant Secretary of
participants with compensation
of War. Leaving the War Depart¬
in excess
of $6,000
whose pay¬
ment in 1945 he joined the firm
ments
are
normally
deferred,
of Milbank, Tweed, Hope, Hadley
until their retirement, death, or
& McCloy.
Two years later he severance of
employment.
accepted the Presidency of the
"The Board has directed that
World
Banking
a
of New York
said:
City
annual salaries
amount
born in Philadelphia and
was
announcement
the
in
ness
F.
over
Mr.
bank's
further
5
ex¬
ecutive officers of the Bank.
old,
Dec.
of
satisfied
as
Chairman and Mr. Percy J. Ebbott
as
The
pany.
group
is
the
officer
1927; he is an
Department.
been
of
Trust
Fulkerson
with
Bond
has
bank
officer
an
Mr.
associated
came
Mr.
the
Personal
and
Department;
in
is
and
the
Office;
with
been
Pension
of
charge
Center
has
Brewer
in
ft
o.u
staff
Congdon,
and
Hood and Mr. Reilly were former¬
ly Principal Executive Assistants.
was
The
official
to
Donald
B.
Fenton,
who
to
Officer, who
Officer.
raised
are
and
profit sharing plan, which
officers and employees of
covers
Interna¬
for
A
summarizing
the
profit
plan and the terms of
the proposed stock dividend ac¬
companied the notice of the meet¬
be
assumed
John
outstanding.
-
sharing
place
as
Chase Chair¬
will
now
Leary
-
Trust
Trust
a
letter
date
his
man
24
made
J.
Treasurers
Presidents,
and
Lloyd, formerly an
C.
Chester
Assistant
Jan.
Frederick
and
Assistant
from
dividend of 300,000 shares, at the
rate of one additional share for
organ¬
Talbot
are
-
27
Manager and Operations Of¬
ficer, returning to
Head Office early
San Francisco
this
year.
The Commercial and Financial Chronicle
Thursday, December 11, 1952
...
(2244)
28
remain within the realm of
tical
Payments Union
Likely!
No Atlantic
By PAUL
politics.
schemes
posed
ideal
pro-
the
represented
from
solution
prac-
the
economic
an
point of view they would be impracticable from a political point
LONDON, Eng.—On the eve of
Commonwealth
Economic
Conference the
government was
inundated with unsolicited good
the
lowed
hand
free
from
A crop of pro¬
endorse
such
ed in the press.
the
ad¬
"listen
or
did
it
the
War
per¬
capital gains tax.
On the other
hand, Argentina,
would
put forward
neighbor, which is
the funda¬
all
from
historical record of the last
years
Those
seek
in
scheme
the
palatable
consumption
by
make
to
of
favor
it
more
those
maintain
who
individuals
like-
•
Dr. Paul
no
Einzi*
alone
Irre¬
recovery.
spective of the merits of these va¬
rious proposals they were, how¬
somewhat late in the day.
the delegates of the partici¬
ever,
For
had
governments
pating
been briefed and the
already
subject mat¬
discussions had been
of their
ter
out
thrashed
thoroughly
the
at
Conference of Commonwealth of¬
ficials held in London in Septem¬
ber and October, and, as
far as the
United Kingdom is concerned, at
the
numerous
meetings
of the
Commit¬
Cabinet and of Cabinet
that have taken
tees
place in
re¬
the
directly
view
that
international
to
been
discussed
well
in
it
been
good
a
thrashed
and
advance.
had
eliminate
the
well
so
before it
come
had
out
means
been
ever
All the subjects which
expected
were
hold
concerned
no
Conference has
prepared.
in
a
discussion
possible
to
proposals
many
of
such
By
which
would
Union
Clearing
the
of
favor
and
that
allow
determine
organization to
various
economic
its
s7u
u
American
of
Balanced
World
business
Trade
is
down tomorrow before
go
biles;
while
the
not eat
may
an
an
automo¬
people of Peru
American break¬
they
as
pops
pour
and
on
the
while the people of
through life ignorant
cream; and
India may go
so^al advantages of Lister-
?*
At the risk of over-simpli-
facts.
American
of
fast food tomorrow that
nevertheless,
Lifebuoy,
in^, a
an^ speaking seiiously balanced
tence.
When someone says that if world. trade-imports and exports
permit foreign goods to enter—J® imperative to a stable and
given
be
can-
in
one
sen-
lahnr
will
we
n,,r
our
be
American
markets
Peaceful .world, where Americans
markets, American labor will
unemployed and our markets
others
and
hot
are
to
be..called
five"years6 but^uhere6peopd
of
affairs.
internal
ably the
its
with
interference
external
conceiv¬
Quite
system is the
proposed
system of the future.
It
is
impossible, however, to
any Government in the
1952 to be prepared to sub¬
visualize
year
to
international
an
its
body
its capital investment
etc., for the sake of ad¬
program,
ditional
.natter
dollar
how
needed.
the
this
against
cism
French
in
reaction
violent
recent
France
of
they may be
point of view
badly
From
no
resources,
criti¬
American
is char¬
finances
is
alleged
selling
kets?
There
The
is
answer
that
in
the
Survival
two
plane
ica, in Asia, and in North America
because
nations
which
see
have
the
ten are broken down.
History is filled with the record
of nations that rose to power, and
then
died
because
their
people
maining
lacked the courage,
character and
willpower to meet their problems.
No nation in history has ever been
invested with immortality.
Weak
talk
nations
of
leisure;
^
25
more
or
per
was
on
other
firei"
was
teacher
0n
minutes
each
.
eighth-grade student in a spelling
test
to
his
name
father's
tion and spell the word.
student
E-R."
a
given this assignment to
a discussion on the infifteen
in
hurry, too.
;
Halsey, Stuart Group
Offers Equip. Tr. Clfs.
said, "Banker. B-A-N-Ksecond said, "Electri¬
No, I think it's E-Lteacher said, "Think it
I'll
in
would have been
occupa-
The
The
R."
situation
you
The first
E-E-L.
cian.
Gentlemen, I have
said, "Listen, son,
hurry too if your tail
Gentlemen, I have
a
spoken very hurriedly, but if you
complete
asked
to
that bird
fire!"
cent of their total
once
turned
"Boy
buzzard
you'd be in
production abroad in order to live, ternational
A
buzzard
fhe other and said
had been
must
^
out flame, smoke
Qne
sell
countries
some
fire
subject
limita¬
a story that
flying over a
when
a
big jet
at 500 miles per
by
dollar a foreigner receives for hour, shooting
ancj
the
were
state,
went
^
the
of
There is
buzzards
western
goods he sells here, he must spend
3 dollar for gooos in this market,
going on in
Western Europe, in South Amer¬
to
discussed
because
tions of time.
foreigner
major
now
have
hurriedly
answer.
For every
American market.
the
We
mar¬
our
dollars finally in
only spend
can
he will receive
goods
is only one
factor m the life or death of
nations, and it is one of the two or
three great problems of our time
Budget, its monetary policy, its
Tariff policy, its system of social
security,
it
lars
from
This problem of balancing world
trade between nations is today a
-
qualities to survive, and which
and
financial policies.
It seems
may be destined to die. The noted
utterly unlikely,
however, that
historian, Arnold Toynbee, studied
any
Government or Parliament
twenty-six civilizations.
Sixteen
would agree to such a degree of
are now dead and nine of the re¬
mit
cent months.
Those
if
that
nations
economically when ,they have'the
courage to follow sound financial
country
draw upon the facilities policies.
of the proposed
Clearing Union
The Problem
beyond a certain limit it would
Great tests are
have to relinquish its sovereignty
American
seven
stronger
~4.u
u
n
that
grow
for
suggesting
The
clearly supports the view of
should
for sur¬
man¬
world.
mental American attitude towards
there
let
well
so
the
over
of salvation is
vival
a
tial resources, is today beset with
financial problems because of the
ticular method
be
genius
leadership.
a
this
fication, the answer to this viewpoint"
assistance to Europe.
uncertain
hope
be
Foreign Aid Gifts
Mr. Herbert aged that capital has flowed to it
by
Feis—it is contrary to
terms that un¬
will
to
but
crackles
that
or
Congress
originally
was
during
of
less their par¬
adopted
practicable
bound
—
lines
adopted
ish," stating in
n o
is
solution,
cannot be helped.
will be flooded with foreign goods,
e"can
ever
pass it.
Although the idea manner in which its economy has ask that person
»mpje
exchange their goods freely, raise
had first originated in the United been managed.
Compare it with tion-What can the foreign seller thejr standards o{ livjng) and work
States
something
on
similar little Uruguay, its next-door do with the large number of dol¬ and hope with faith in the future.
if
even
posals appear¬
attitude
politically
outcome
compromise
More Imports—Less
draw upon time balanced its budget. Canada
United States has no excess profits tax and no
scheme
a
each year, will eventually be
son
the
While the jungles of Africa may
Administration great nation with a highly in¬
future
would ever telligent population and substan¬
or
an
to
task
not
States
United
present
unofficial
the
difficult
avalanche
automatically.
In official circles
it is considered inconceivable that
exhortations.
visers
with
The
a
economically .ideal fed, clothed, and sheltered through
7
page
to
the resources of the
a
and
of
the
on
Says present Commonwealth Conference in London is looking
toward better utilization of existing organizations.
Many
It is
reconcile
Imperative
Continued
advice
of view.
EINZIG
proposal of the London "Economist that an
Atlantic Payments Union, similar to the European Payments
Union, is only way of solving dollar-gap deadlock, Dr. Einzig
contends there is little chance U. S. will enter any such scheme.
Commenting
if
Even
back to you."
The
An
offering of $2,640,000 The
St.
Chattanooga
&
O-K-I-E, and I'll bet you two to~L0Uis Ry., series H 2%%"equipone the .'"other kid can't spell elec-Anient -trust
certif icates, maturing
T
trician.
suppose one could ibet v^riually Dec. 15, 1953 to Dec. 15,
over.
come
student
next
said, "Bookie.
B-O- Nashville,
"
naUons^al^of Spending'andTun- two to one that we will iiol change- >9«7i was made' on Dec. 9, by
balanced budgets^ strong nations for sometime our unwillingness; Halsey,
Stuart & Co. Inc. and
talk of
and'balanced
saving
budg-
to import freely. But it is equally, associates. The certificates were
certain that eventually our views ;priced
to yield
from 2.25% .to
will change, for they are economi- 2.975%, according to maturity. Is¬
The time for gifts to Western
caiiy unsound. For we, too, must suance of the certificates is sub¬
Europe should now be essentislly••■"giyg nwsy goods! ' free - or
sell ject torauthorization by the Inter¬
over, and any aid should largely abroad billions of dollars of-goods
state-Commerce Commission.
'
ets.
be
.
.
...
„
loans.
of
form
the
in
■
,
..
Nations
to keep
going. One
The-ee^fieates will .be secured,
bushels J of
by rtew ^standard-gauge- railroad
wheat; one out of every three
President down¬ so.
equipment^ e s t im a t e d to cost
preliminary agreement was citizens, from
pounds of iard; four out of every
members of the
rejected with scorn the
reached except in the sense that ward,
critical
observations
contained Major External Problems Abroad ten bales of cotton; one-fourth of
the
"are-' R
W
participating
governments
our tobacco; one-fifth of our tracunderwtltmg Co.; Wm. E. Pollock
?group are'
w'
in an American note.
Is it then
Pressprich &
agreed as to which subjects would
So much for the internal prob¬
tors; one-tenth of our farm ma¬ &
likely that the same people would lems of
be worth considering.
Co., Inc.; and McMaster Hut¬
foreign nations.
Let us
chinery; one out of every six chinson & Co.
be prepared to submit not only
One of the proposals which had
briefly look at a major external trucks; hundreds of millions of
to such criticisms but to action on
failed to survive the preliminary
problem of foreign nations, which dollars of heavy machinery, autothe part of the critics tending to
process
of elimination was the
determine
their
policies?
Any
idea
of
an
Atlantic
to fr0m
gooas
aoroaa.
ineir
aoiiiiy
10
Payments
Illinois, Indiana, Ohio, Mich-,,
...
Government that would be will¬
Union.
On the eve of the Con¬
sell goods abroad to earn dollars,
jgan
arid
Wisconsin
alone—all Weekly ririTU Changes
ing to do so would be swept out
have wasted the time of the Con¬
This does not
ference.
that
mean
acteristic.
France
is
dollars her
Although
desparate need of
in
which have not put
their finances
do
economy
our
of
out
three
every
in order should be expected to
dnd™wrmnJ^group
goods6 abroadm Theif abifity
ference it
was put forward
among
others by such authoritative quar¬
ters
the
as
ment
of
Special Dollar Supple¬
the
that there is
ing
the
"Economist."
forward
put
newspaper
no
That
the
case
other way of solv¬
present
office.
of
In
the
the acceptance
would
Mr.
be
sure
a
Aneurin
Britain
of
case
of such conditions
of giving
way
Bevan
a
chance
for
achieving power.
The
dollar-deadlock
minds of
ness
I
to
restrictions for the
remove
of
import
United
their
goods
One of the
States.
est fallacies in American
is the belief that
the Governments
into
the
great¬
thinking
importing goods
is bad for the United States.
s,.andNew York Stock Exchange
™obilTe,s,'.
Un¬
these and many more of our goods
must
move
to
foreign markets.
The New York Stock Exchange
In
has announced the following firm
1952, the United States will ship
billion in goods abroad, and
changes:
$21
will
import $15 billion.
ference,
or
$6 billion,
Transfer of the Exchange mem¬
The dif¬
represents
gifts for which the American tax¬
payer will pay and for which he
will get no goods in return. How
long will the American taxpayer
bership of
Robert H.
Robert V.
Nehrbas to
Wyshak will be consid¬
ered by the Exchange Dec. 18.
Common¬ fortunately, the view seems to be
Transfer of the Exchange mem¬
not
in widely held.
We apparently be¬
bership of
Henry
W.
Sage to
any event working in the direc¬ lieve that we are better off by
Harry W. Lunger will be consid¬
Community of nations.
In sub¬ tion suggested by the above pro¬ giving away our steel, wheat, cot¬
feel that this is sound business?
ered Dec. 18.
stance its proposal, and
or
that of posal
by
other
admittedly ton and automobiles as gifts. It is
Obviously, the business of the
other quarters thinking on similar brilliant and bold
Tuller, Crary & Ferris will be
proposals.
In an unbelievable philosophy—this world is not on a sound basis until
dissolved effective Jan. 2.
;
:
lines, amounted to the adoption of preference to
establishing new unwillingness to take goods in re- trade moves both ways,
a system under which the
United organizations they were inclined turn.
But it is significant that
In
this critical period,
world :
p iui
Dl_ri_ HirerlmStates would be prepared to ac¬ to
explore
the
possibilities
of both the American Farm Bureau leadership is clearly in our hands.;
uiatii i/ircuur
cept, in payment for their export better utilization of existing or¬ Federation
and
the
National Our machine civilization is irreE. M. Black has been elected to
than
through the application of
principles of the European
Payments Union to the Atlantic
participating
the
wealth
surplus,
ganizations.
credit
Clearing
balances
Union
largely
purpose
created
with
for
Keynes Plan rejected at
Woods.
a
that
the lines of the
on
The idea did
Bretton
occur
to the
experts of the Treasury and of the
Commonwealth Governments
long
before
it
gether
received
with
publicity.
other
ideas
it
To¬
was
duly considered during the Con¬
ference
ficials
of
but
Commonwealth
was
rejected
as
of¬
im¬
practicable.
Those
American
sions
United
attitude
about
the
States
cepting a
European
with
have
no
chances
of
Government
proposal
nations
under
would
the
illu¬
sistibly pushing its way into every
bring down trade barriers. eBusi¬
ness associations are also active in
sand crossroads in the world today
Daniel
there
nounced.
tary
would
be
the International Mone¬
Fund
the
and
International
Bank for Reconstruction
velopment,
the'
and
De¬
Governments
concerned were to embark on the
creation of
the
same
remember
international
new
ganizations
serving
purpose.
that
ternational
the
and
it
little
practical
new
international
as
use
an
or¬
substantially
It is
well
Bank
for
Settlements
existence
the
al¬
-
Grange have begun campaigns to
years ago
It
were
indeed
ac¬
which
be
the
strange if, having established six
in
acquainted
in
Conference
is
would
to
In¬
still
serve
create
organizations
purpose
to
alternative to making better
of
What
the
is
existing
even
this
direction
The
stricting
more
important,
■:
-
-
of
lower
than
our
We
people will
—
...
one
reason
a
be
large
not
a
,
„
s
are
weaving
economic life of the world
single
fabric.
businessmen
Perhaps
and
not
the
into a
140,000 people that are added
,
.,
,,
are
short of
forget
these
every week to the population of
southeast Asia and the two-thirds
of the
come
can
Seal-Kap Corp.; of Delaware;
A.
Mackin, President; an¬
Mr.
world's people with an
of only $30 to $150
in-
per per-
Black, who is head
department of Business and
officer of Ameri¬
an
Securities
bankers, is also
Corp.; investment
director of Lamb
a
Electric Co. of Kent,
America's
her politi¬
That's why
,
let's
machines
Our
factories.
American
cians hold the key to the solution
of the world's problems.
Perhaps
buy here, and that s
why they
But
from
came
a
goods at
higher cost
other nation.
other natio
dollars.
produce
world's
the
cost
anv
can
Industry and
The facts contradict
idle.
view.
flakes,
the Board of Directors of Ameri-
road machinery, tractors, automobiles, trucks and refrigerators that
that
that
corn
thou-
imports is that low-
our
part
radios, soap,
a
of the
put out of work and our factories
will be
are
At
fountain pens, batteries, elevators,
for
priced labor in other parts of the
world
can
produce ! goods 1 so
cheaply
world.
of the
re-
argument
familiar
ones.
the Governments concerned must
now.
corner
Ohio.
Spencer Trask Partner
SCHENECTADY, N.
dore H. Lydgate,
Y.—Theo¬
resident manager
for Spencer Trask &
Co., members
Exchange,
of the New York Stock
on
Jan.
1, will become a partner
in the firm.
Volume 176
Number 5176
.
.
The Commercial and Financial Chronicle
.
(2245)
LETTER
Public
Utility Securities
TO THE EDITOR:
Wants
District
The
company serves a population of about 300,000 in an
covering part or all of 23 counties in an area where Missouri,
Kansas, Oklahoma and Arkansas converge. This area is about the
ing
of
Massachusetts
and
being Joplin, Mo., with
The
of
the
125
communities, the largest
population of 40,000.
a
has received the
area
wide
contains
of
name
diversity of natural
"Empire District" because
which
resources,
include
lead,
zinc, coal,
limestone and timber. Some years ago the
company
generally known as a "zine-lead utility" since in 1945 it de¬
rived 29% of its revenues from the mines.
Since it was known
was
that
the
there
war
of
reserves
was
these
metals
declining rather rapidly,
might be hurt in the post¬
Chronicle:
period. However, while the percentage of
from the
revenues
lead and zinc mines has now declined to about
13%, other indus¬
trial power sales have increased from
16% to 24%. The
company's
business is now much better
diversified, and earnings should not
prove vulnerable to any further contraction of the lead-zinc
mines,
which
are
confined to
now
small
a
of 30
area
miles with
square
total
a
employment of about 1,800. Development of agriculture,
diversification of industry, and promotion of recreational facilities
in the Ozarks have far
mining industry.
than
more
Revenues
While
cused
have
outweighed the decline in the
increased
70%
in
the
postwar
period.
articles
the temperate
climate and the nature of the soil and
and
related
mercial
fertilizer
postwar
period,
(largely produced locally)
stimulating
farm
output.
has
Local
largely tied in with agriculture—production of
of
doubled
com¬
in
industries
and
processing poultry. The famous Ozark playgrounds attract
tourist trade of
attracted
over
$100 million
industry to the
efforts,
ing
124
over
over
twice
new
as
mining. Moreover, the
additional farms
Five
major
due
years,
people
as
in
part
are
company's
engaged in lead and zinc
during this period, making
of
the
into the area, employ¬
come
are
to
has extended its service to 5,000
company
industries
expansion
annually, and this in turn has
industries have
many
a
area.
During the past eight
in
are
feed for cattle and
poultry, plants for producing dairy products and frozen foods
for
the
a
total of 9,000 served.
planning to spend $12.5 million
now
plant facilities
in
the
Empire District—Vickers,
Inc., Spencer Chemical, Thurston Chemical, Eagle Picher and the
Missouri Farmers Association.
27,
40,000 kw unit
a
under
now
pany will have more than doubled its 1945
being geared to burn coal, gas
construction, the
capacity—the
oil. Including the
or
com¬
new
units
unit,
new
over
half the generating capacity will be less than four
years old. Fuel
consumption
per
kw is being cut 20%, and a further increase in
efficiency is expected with the
generated last year
was
preferred
stock
About
16%
of
power
hydro and 84% steam.
was
Empire District Electric
11%
unit.
new
and
has
now
35%
a
capitalization of 54% debt,
stock;
common
the
equity
ratio
The
mon.
appears
company has
obtained
com¬
$5 billion bank credit and it
a
unlikely that additional permanent financing will be done
before 1954. Average earnings and dividends have been
as
follows
in recent years:
express
Year
Per
Dividends
Share
Per
Per
Share
1951
$2.10
opinion
2.07
1.24
1949
2.40
1.21
be
now
2.30
basis
United
1.12
States
Every
dollar
for
1.85
1.12
the 500,000
on
average
of
Whiteside
a
product
United
the
foreign
ex¬
dollar that must be
a
for
spent
service
or
This
States.
fact
be too strongly em¬
Therefore, I propose
product manufactured,
grown,
raised, mined or other¬
wise produced in Canada should
hardly
can
phasized.
that every
admitted
be
United
the
into
States free of tariff.
$2.36
on
only by so doing can the economy
the United States be operated
of
its
at
efficiency and ca¬
insure the greatest
the North American
highest
pacity, and
security of
so
continent.
The
United
together
Canada
and
States
involuntarily
are
and
total
unescapably
drawn
into
competition with a certain
$1.40, reflecting
to indicate that
an
are
and
States
a
committed to the joint defense
Ogdens-
burg Agreement of 1940.
Conversely, I
that, for
propose
similar reasons, Canada should be
induced to allow every product
manufactured,
raised,
grown,
otherwise produced in
or
the United
to
States
admitted
be
year—although in the postwar
tween 47% and 65%. The stock is
York Stock
years
seem
time
payout has ranged be¬
selling around 25^2
Exchange.
some
on
the New
the
Then
Canada
new
to
to
would
efficiently,
.change
them
and
the
with
the
for
country
the
economically
that each can
things
more
e*
and
States
United
each
the
will
to
Staff
HOLLYWOOD,
M.
Flash
has
been
opinion
tives.
to
the
PROVIDENCE, R. I.—Alfred F.
Anderson
has
become
associated
products
supply
can
more
the
under
existing
same
the
among
the United
of
under
every
some
which
gold
sell
from
individual
will
of
be
most
have
the
mine
small
in
the
mining execu¬
however, that
or
been
mines
so
selling
their
the free market will again
on
to
the
2,
and
formed
E.
WHITESIDE
1952.
and increased costs that the mines
have
Canadian
mint,
producers.
Those
have
been
along
the
to
mines
barely
last
continue
spokesman
which
able
few
to
get
will be
years
to
said,
operate, one
but
if
they
haven't been paying dividends in
the past the new assistance won't
give
them
dends
in
enough
the
to
during
the
last
years."
Mr.
that
Cox
the
expressed
increased
indication
attitude
toward
the
of
the
of
the
the
is
air
the
of
government
of
use
view
subsidy
reversal
gold
a
as
medium of exchange.
Through
comes
Nov.
Reuter's
a
that
word
27
Richard
ment
in
despatch
London
on
Labor Member of Parlia¬
Stokes
urged
the
Government
to
try to get the
of gold revised and thus
enable shut-down Canadian gold
price
mines
to
normal
resume
opera¬
tions.
some
The increased assistance will be
of most benefit to the
marginal
able
sustained
few
Stokes
divi¬
pay
future.
only
68
claimed
at
that
mines
gold
Canada
of
the
"artificially
fixed"
is
not
the
of
running.
extraordinary
gold, which is
forms
price
In 1942 there
an ounce.
160 mines
"It
the
production is higher than
gold—$35
were
are
because
present
cost
there
operating in
that
valuable that it
so
basis
of
currencies
of
many countries, is now so costly
that no one can afford to deal in
it?" he added.
the loss in
the mines
by
the
of
that
also
increased
freeing
of
United
Canada
by
this
re¬
suffered
revenues
as
result
a
of
for
the Canadian Metal Mining Asso¬
ciation,
said
the
Canadian
ernment's
increased
Canadian
gold
ably
will
Gov¬
assistance
mines
will
to
prob¬
at least five mines
suspending operations, but
to provide incentive to
save
fail
mines
reopen
because
of
profits.
gold
that
have
inability
Since 1949,
in
closed
to
reap
than 50
more
operations
cluding
Canada, in¬
established
mines,
30
have shut down.
pointed
mining
that
out
the
States
in terms
has
price of
currency
the
average
year
to $34.50
with
official
in
$36.85
1951.
The extra aid of $1 an ounce does
not
bring the price to last year's
level.
Government's
increased
assistance,
tion
which
production for maximum security
maximum
from
depends,
this
would
efficient
trade
between
Canada
be
increased
integration.
the
would
United
ease
by
Free
an
de¬
the
the
of
cost
operation
an
$13.50
of
one-half
the
with
ounce
with
ounce,
an
cost
a
ounce,
$22
maximum of
over
For
means
most
mines,
mining
change
the
additional $1
an
an
ounce.
executive,
H.
of H.
Cox, President of the Quebec
companies doing busi¬
Association, states that
proposed
additional
government
assistance
to
the
The
currencies, the standards
gold mining industry "recognizes
of living, the political ideals, and
the serious plight of the industry,
many
in
staff of H. Hentz & Co., 1911 Har-
with J. H. Goddard & Co. Inc., 17
the
Exchange Place.
United
both
international
States
interests
and
of
Mining
while
countries.
of the
Canada
the
it
cannot
be
to
meet
the
considered
decreased
adequate
revenue
of
the
these pessimistic views
to the expansion of the
Canadian
gold
mining industry
were
being passed around, The
Metal Mining Association of Can¬
ada
urging
was
Government
be
to
to
the
Canadian
permit
disposed
of
fine
gold
the
free
on
gold markets of the world.
the
Canadian
sistance
Mining
subsidies.
As¬
on
The
the
pro¬
Mining Association
follows:
as
(1) Marketing
by
selling
ducers
fine
of
gold
permitting
encouraged
the
on
markets to sell fine
be
pro¬
premium
gold.
Fine gold be minted in Can¬
(2)
ada for
in
Under
not entitled to the
are
government
are
Gold
Act, mines selling
free market
general purchase and sale
forms
suitable
to
the
market,
the
price to be freely determined
between buyer and seller.
(3) Foreign purchasers of new¬
ly-minted Canadian gold and for¬
holders
eign
to
store
a
$11.50.
States
and
$18
over
variation
production level.
While
ounce,
an
British
respon¬
relating
increased
value of Canadian money
United
sible
the
be
cannot
posals of the
Canadian
Canada
upon
that
the
gold
capacity of the United States and
together,
said
Canadian
The
productive
also
Commenting on the gold min¬
ing subsidy revision, V. C. Wansbrough,
Managing
Director
of
trade.
industrial
total
shut down.
He
Government
recently
announced,
changed
the
rate
of
assistance
to one-half the cost of produc¬
The
have
in¬
creased costs."
gold this
States.
of
wealth
net
ciprocal
risen Street.
in
re¬
Canadian
extent
It may mean,
of the dozen
decreased
ness
("Special to The Financial Chronicle)
Fla.—Malcolm
added
Joins J. H. Goddard Co.
the
Although
each
benefit
The
other
now
crease
(Special to The Financial Chronicle)
of
subsidy formula, the extent
Another
H. Hentz Adds
interest
the
of
some
which
of
and
.
of
effect
Act
benefit
from
into Canada free of tariff.
be
relatively low payout, which would
States
be
Kensington Place
Dec.
to
very
Canada
of North America by the
would
increase might logically be expected
United
should
Syracuse 10, New York
the
mining company in Canada,
which elects to accept the assist¬
ance granted under the
Act, will
up
United
The
shares. (On the 600,000 out¬
present dividend
the
area,
authority.
and
The
of
"It is a distinctly helpful step,"
the said an official of the Canadian
In
reply, Reginald Maulding,
parts of which are not separated Metal Mining
Association, "but it Economic Secretary to the British
by tariff barriers, and which are is by no means the answer to all Treasury, stated that he didn't
under a strong aggressive central our
problems. It will help make know why Canadian gold mines
land
Eurasian
States
600,000 shares in 1953.
to t
single specific ob¬
reciprocal free trade
JOHN
229
thought.
My basic reason for this radical
proposal is that, in my opinion,
earnings q£J2.33 were
forecast earnings of $2.25 for the calendar
year on average shares
I
association
immediately.
Emergency Gold Mining As¬
compared
standing shares, the figure would be $1.94.) President McKee in
next
creates
economically,
bis recent talk before the New York
Society of Security Analysts
peo¬
dictatorship.
an
Both
make
na¬
economy
the
for
of
gold
J. Elton
product
states
reported based
by
that
Canada
opportune
item
the
Government.
61
For the 12 months ended Oct. 31 share
enforced
between
prosperity.
subsidies granted
sistance
spent
Cana¬
a
The
rate is
the
U. S.
service
or
is
vision in
47
194.5
most
current
Canada
the
55
1.12
ples
jective
those
countries.
enjoy
conditions
time
ucts
2.03
2.38
about
these
system of free exchange of prod¬
1946
diverse
By WILLIAM J. McKAY
and Canada.
that
1947
and
All
present
A
trade
of
other
49
of
Canadian Securities
50
1.12
The
the
between
60
.'<•4
1948
in
two
now
should
would
65%
compliance
a
work
approxi¬
than
on
what
produce
Payout
$1.36
1950
Cent
of
an
supply
Earned
National
like
to
mined,
increased in June this year
by sale of 150,000 shares of
the
other
any
countries
1952,
would
I
large
Generating capacity is being substantially increased, and with
the addition of
the
Thursday,
Nov.
milk
use
to
to
Financial
change
section. The
fo¬
other
that
two
superior
Chronicle of
of
one
been
nearly
more
each
show
of
is
Co mmercial
water, the area has developed into one of the leading dairy and
poultry regions in the nation, with the greatest concentration of
production in the country in
has
foreign trade by the
Foreign Trade Convention
dian
Due to
mate
attention
upon
were
fear that the company
some
it will extend North American trad¬
Editor, Commercial and Financial probably
area
size
says
must
we
cooperation
tions
and thus furnish better competitive position against
large Eurasian land region.
area,
free
believe
John Elton Whiteside
Electric
Company has been engaged
the
electric utility business for 43 years but was a
subsidiary of Cities
Service Company until 1944, when it was
merged with several
other subsidiaries and the new
common
stock was sold to the
public.
Together
the
Trade with Canada
Empire District Electric Company
Empire
begin
this freer trade relation
between the U. S. and Canada.
Reciprocal Free
By OWEN ELY
29
keeping,
will
be
it
of
in
who
gold
Canada
wish
for
safe¬
receive assurance they
permitted to export such
gold when they desire.
(4) Cost-aid assistance to those
mines electing to receive such aid
be increased and made more ade¬
quate to the current crisis in the
industry.
Of
estimated
the
ounces
year
mines
of
gold
3,700,000
produced
this
in Canada,
74%
is from
receiving cost-aid and pro¬
may be expected to de¬
duction
cline
ance
sharply
unless
is adequate.
that
assist¬
20
The Commercial and Financial Chronicle
(224C)
in
Gordon M. Averyt
eastern sales
for Investors Diversified
Gordon M. Averyt,
manager
Inc.,
is in¬
Invest¬
leading diversi¬
fund, stated Wed¬
luncheon at the
Bankers Club. This trend, he said,
"is evidenced by the fact that ap¬
dtolor or
open-end
New York 5, N. Y.
of
out
one
10
every
the United States
stockholders in
&
CtlobJithtd 1930
a press
proximately
Pointing to the increase in the
assets of mutual investment com¬
panies from $440 million in 1940,
to
over
$3.5 billion today, Mr.
Coleman
drew
the
tween
analogy
an
impressive
materials, especially
raw
be¬
growth
of
com¬
reserves.
Continental
Research
the
of
manager
DELAWARE
Fund.
new
FUND
has
been
re¬
this past month as
sharp
prices,
D.
result of the
a
industry
advance
in
stock
Barringer,
Chairman of the Board, said in his
investment
report
to
directors.
Mr.
Barringer said the Fund has
continued
ics
reduce
to
its
electron¬
holdings. Recent sales included
Products
and
all
its
of
Admiral Corp. shares.
Other
due
was
Its theme is the "unfriendliness to
which
and
with
changes
automobile from
after a small
an
down
mutual
funds today make it possible for
the investor, through very small
investments, to acquire an inter¬
est in the shares of leading Amer¬
ican
payment,
so
many
mutual
included
fund, Mr. Coleman
instrument of democ¬
is
racy.
"It is sometimes forgotten,"
declared, "that the basic prin¬
includes the
principle of equality—equality of
ciple
no
obligation please send
prospectus on Canadian
■e a
Fund.
of
democracy
opportunity as well as of liberty.
If private industry is to continue
to expand, business must through
sense
a
social
of
velop practical
conscience
ways
for
de¬
and
more
millions of people to partic¬
more
ipate in the ownership of Ameri¬
Address.
industry—that
can
curities
City
of
is,
in
American
the
se¬
corpora¬
tions."
the
he
r
investment
continued,
equality
of
practical
method of
supplying
opportunity
body & Co.,
a
Custodian Funds
vestment
policy
forth in
me
prospectuses describing
Organization and the shares of your
Funds.
ten
D-oo
unquestionably
read,
statement
still
leads
Rehm,
a
continu¬
combining
day over WOR when guest-ap¬
pearing on the radio program
"American
of
pos¬
and
which already
over
$90,000,000 in to¬
nental Fund.
per share during the
ending Dec. 22. Man¬
agement has announced
ments
will
be
made
no
World
have
dieselized
at
been
a
cost
during
this
Policy of the management, the
stated, will be to invest
substantially
II
War
spent
diesel
new
more
alone, railroads
than
engines,
passenger
billion
$7
new
freight
equipment,
freight yards and many other
money-saving improvements."
new
Admitting that opportunities for
improvements exist, Mr.
further
;•
show
in
single form of investment.
example, an investment'that
any
in
stable
likely
not
times
bad
is
tests:
ability to increase
an
or
at
least
maintain
ability
today, and so forth."
This
booklet,
"The
CustomFund," says that the
Made Mutual
he wants most and then select the
to increase
or
maintain
of the company's product,
price
and to be in
unit
output,
an
a
elimination
or
each plainly
increased
hold¬
our
each of his
the
dairy products, auto
electrical
and
utilities,
tobaccos,
.
equipment-
labelled
dealer
ment
dustries
chains,
designed
to its pri¬
as
ASSETS
NET
Series
fit
to
the
needs
Despite
October's
Group
market,
Distributors
ported
"bad"
Group
sales
stock
Securities,
that
which
manages,
month
re¬
to
as
National
of
according
&
Shareholders
HOW A TRUST company devoted
and
24,759,
of Nov. 30, last,
as
During
an
the
three months,
past
investment
the
management
trusts makes its investment facili¬
National Stock
ties available to the small investor
to the investments
is told in
four-page folder pub¬
a
Hudson
(135
Fund
South
Distrib¬
La
Salle
the
food,
rubber
within
York
Ward
wards
of
for
cares
now
up¬
has
of the
steel,
auto
railroad,
parts
increases
to
groups.
holdings
period include the follow¬
ing common stocks:
*
Shares
Baking Company
___
8,000
in
million
title
of
the
total
U. S. Rubber Company.—-
12,000
22,000
is
"The
Bethlehem
folder
Steel.:
in
6,500
Fund, Inc."
Delaware & Hudson
2,000
railroad management has
improved perhaps more than that
in any
those
companies
other line of business.
example of what
can
"An
be done is
indicated
by the New Haven RR.
reports that some of its
which
self-propelled
diesel
of 24 hours
day, compared with
a
the three hours
freight
car
a
Briggs Manufacturing
HOW ELECTRONICS is
day the average
7,360
Union
6,500
an
A
eight-page folder titled "Elec¬
tronics—Its
sense,"
best
years,
many
sell
good
at
Mr.
railroad
prices
which
re¬
said
that
stocks
still
appear
low
Rehm
in
many
and
excerpt
as
the
to
man's
You."
seventh
"It is the
cases
the only
has found to supplement
senses
are
is
the folder.
says
and
way man
the
cent
Importance
"Electronics
Citing the increase in the price
levels of railroad securities in
6,000
Mead Corporation
lives is discussed by the Tele¬
vision Shares Management Co. in
his
travels."
changing
our
passenger
actually traveling 17 out
are
'
varied
sensory
nervous
continues.
as
and
the
system,"
"Its
uses
functions
of
system
nervous
see,
Electronics
hear,
feel,
helps
smell,
accept and evaluate
things
stimuli
over
and
growth of Affili¬
Fund, Inc., issued yesterday
by Lord, Abbett & Co., managers,
states that in the ten years
assets
of
$3,000,000
shareholders
with
$223,470,374,
ranking
assets
it
the
country.
During the
to
creased
by $72,798,191 and share¬
to
holders
by 31,105.
and
It does
wider ranges
distances
ended Oct. 31,
1952 net assets in¬
COMMONWEALTH Investment
Company
on
Nov.
reports
1952
30,
that net
reached
American
upon
request
Corporation
1925
★
&
Co.
Milwaukee 2, Wisconsin
Loud, Ahbktt & Co.
New York
Prospectus
on
request
Dealers' inquiries invited
—
year
taste,
I'rnspccitt?
Ricker
of
the
fourth largest investment company
General Distributors
Michigan Street
as
to
be obtained
ar,
110,486
to
net
Business Shares
or
ending
Oct. 31, 1952 the Fund has grown
from 12,000 shareholders with net
man
data,
greater
OF
ated
in
itself.
Bag & Paper Corp.
RECORD
FUND
Berkeley St., Boston, Mass.
FOUNDED
2,500
.—_.
Chic. Rock Island & Pacific
Investment Fund
U
of
addecj
funtl in
Republic Steel
$200
property.
The
Series
paper,
and
Substantial
Street, Chicago 3, 111.).
The company in question is the
Fiduciary Trust Company of New
which
Securities
increase of over
60% from the Jan. 1, 1952 figure.
exclusively to the management of
individuals
Vice-
Hare,
National
Research Corporation.
be
totaled
for
Wain
to
of
Story of the Formation of Hudson
A Mutual
Parker
Stock
of Nov.
President
highest since mid-1951.
MUTUAL
The
of
customers.
A
200
mak¬
30, 1952 were at
a
new high of $53,021,000,
an in¬
have a high combination of these
crease of over 65% from the $31,desirable factors."
961,000 level as of Jan. 1, 1952,
electronics because they appear to
of
may
to
ing it practicable for the invest¬
ings of selected stocks in such in¬
as
is
investment objective,
mary
have
that
fund
mutual
give him just that. It further, de¬
scribes the variety of investments
position to benefit offered by Group Securities, -Inc.,
of EPT.
all these
from investment dealers
not
to
likely to provide generous in¬
come
of
well
up
make automatic decisions.
Prospectus
to
Rehm declared that "over the last
invest¬
period.
company
have
railroads
substantially
prefer stocks
which
investments
Money at Work."
booklet
15 years
diversification
FUNDS,
$5
the
of
Company, a leading
mutual fund, voiced Sun¬
Boston
cars,
The
net
at
Vice-President
Keystone
for
weeks
man.
the
reasonable
not
combinationfof these three prudent investor will decide what
a
Inc.
assets, is offering a new
portfolio known as United Conti¬
two
State
to
known
Such is the judgment of Theodore
which
such
fered
City
of
passengers
A.
improved," the
but .our 'analysis
.
to
us
utors,
The initial offering consists of
2,000,000 shares which will be of¬
Address
means
and
cars
Name
efficient
transportation of both goods
is
,
of
has three mutual investment funds
Please send
your
impressions of
American railroads
most
set
con¬
position in
new
Group,
principal,
"it
provide for growth in
"The atmosphere has changed, good times; one that offers excep¬
the climate for business is now tional opportunities for growth is
"We
were
mass
obtain
aggregating
executive
by
current letter to dealers.
a
by
supervision."
tal
Fund
for
is
Distributors
of
from the reduction
TO
inefficiency,
could
COMMON STOCK FUNDS
Company
a
called
is
view
food
CONTRARY
funds
sible
50 Congress Street, Boston 9, Mass.
sale
and
expect a high degree of all three
For
lished
capital, he said, "makes
UNITED
through
change in in¬
Eisenhower's election.. This, is the
parts,
large aggregate of invest¬
a
the
S. Rubber.
of
BOND, PREFERRED AND
The Keystone
Delaware
the
moderator of the
was
SIGNIFICANT
NO
the speaker stated. "Since the end
the funds of many small investors
into
Oliver
in
Investment.
ings except for
are
.
purposes
prompt people to invest.
Citing three reasons for invest¬
ing, stability of principal, gen¬
erous
income, or growth of in¬
declares
approaching three billion dollars,"
individually."
ment
investment
purchases mostly
investors
few
very
and
reduction
fined to additions to existing hold¬
U.
-i
those
of
another"
one
come
a
supervision
ous
said
none.
program.
investing by
degree of diversifica¬
tion of investments and
eystone
such
switch
a
from
Southern
Pacific; and
trimming in the United Air
Lines
companies,
"provided
Depart¬
some
some
"Your
Mutual
portfolio;
slight
railroad
of
Federated
Chalmers
a
The
said,
an
Allis
Corp.,
corporations."
The
he
to
privileges
Fox-Martin, Kidder, Pea-
companies
of
the
from
special
advantages for
Milton
in
purchase
Group Secu¬
the sponsors of
transportation may compete fairly
aggressively for available
Gas
his monthly income,
by
subject has been published
usual
Federal
both
—
rities, Inc., a leading mutual fund.
ment Stores and Northern Natural
to
regula¬
a
each form of
make it
buyer
advocated
atmosphere
elimination
car
in the expanding
of electronics.
AN ORIGINAL booklet on an un¬
largely to financing policies which
possible for the
earning
Moreau
part of the investment in Sylvania
automobile
in
to
on
goes
that will astound many in¬
and State—in which
appraising its investment positions
Electric
dustry. Just "as the growth of the
tory
result
and
mutual investment companies and
GENTLEMEN: At
various
pos¬
discuss
investment
in
the
electronics
field. Its publisher is the invest¬
ment manager of Television-Elec¬
tronics
Fund, Inc.,
the mutual
fund whose objective
is invest¬
folder
business
United Accumulative Fund wil be
the
the
growth of the automobile in¬
will
Rehm
Mr.
Corpora¬
tion, managers of United Science
Fund, United Income Fund and
recent
mutual fund shares."
owns
RESEARCH CORPORATION
•
Commonwealth
of
nesday, at
NATIONAL SECURITIES
120 Broadway
power
ment Company, a
\
the
vestors."
dent
^UTMUNVEmiHjmiNO
regulate
is otherwise
than
space
The
field
panies with programs for increas¬
fied
Approximately S4.21 per share
a
ment of its assets
ing
panies, S. Waldo Coleman, Presi¬
SERIES
have
we
in
sible."
generally
sic
shares of mutual investment com¬
SPECULATIVE
years," he
forms of transportation, I believe
the basic efficiency of railroads
creasing its ownership of the na¬
industry
by
purchase of
NATIONAL;
earnings.
10
"provided
fairly
more
which search for and produce ba¬
tion's
your
current
good level of business activity, a
reasonably favorable labor atmos¬
phere, and some legislation to
By ROBERT R. RICH
PUBLIC
AMERICAN
THE
Prospt&iui from
to
continued,
Mutual Funds
with headquarters
in Harrisburg, Pa., fell to his death
while on a trip to New York.
Services,
relation
"Over the next 5 to
1952
Thursday, December 11,
...
Chicago
—
Atlanta
—
Los Angclc*
assets
a
new
Volume 176
Number 5176
.
.
.
The Commercial and Financial Chronicle
(2247)
58TH
CONSECUTIVE
QUARTERLY
The Directors
DIVIDEND
Chemical
of
Fund,
Inc.,
today declared a dividend of 180 per share
from net investment income, payable on
December 26. 1952, to shareholders of
record December 15,1952.
DANIEL
December 10,
BREITBART,
Secretary
1952
CONSECUTIVE
(QUARTERLY
DISTRIBUTION
lOVifi a
■o
share from investment income and 9140
share from
capital gains has been declared,
payable December 22,1952, to shareholders
.tof record December
4,1952,
mmm
jubushed
prospectus from
your
investment dealer
PHILADELPHIA
3, PA.
31
32
The Commercial and Financial Chronicle
(2248)
Continued from
to carry
first page
risy than that which flows from
who castigate private capi¬
all this sort of thing to the extremes which have
it in recent years.
those
been forced upon
We See It
As
people "have tentatively agreed to take an¬
other look at private enterprise, to see whether the things
we
have been telling them are correct.
They are not
going to trust themselves very far from the shores of
government paternalism until they see what private en¬
terprise can do.
"Will there be another depression? Is my job safe?
Will my
standard of living continue to rise? If I decide
not to look to the government for help, will private enter¬
prise deliver the goods?
Of course, the self-interest of the businessman must
enlightened. Without question at times "enlightenment"
includes recognition of the existence of a state of
public
opinion even when it is not soundly based upon fact or
logic. The businessman no more than any of the rest of
whole
knows how
these
people."
Other
>
In
broadly similar analysis of the situation, Earl
Bunting, Managing Director of the National Association
of Manufacturers, warned that "if we disregard these op¬
portunities for public service, we will remain headed
toward a purely socialistic state leading to oblivion for
free enterprise."
But Mr. Bunting is optimistic. He is
certain that "industry can well lead the way in health,
safety, good neighbor practices, resistance to monopoly in
any form, and provision of opportunities for people to
build security for people by people."
There were other contributions, sometimes by very
practical executives who have evidently been thinking
hope
the
of
none
on their own. Thus Howard M.
the Carrier Corporation, says:
things
Vice-President
of
us
autocratic
thinks
can
we
now
Dirks,
"Let's
return to some of
paternalistic methods of dealing with
employees practiced in the past. We have learned a lot
about good employer-employee relations in recent years,
and we dare not step backward.
We must continue to
move
forward." Then there was John R. Suman, VicePresident
of
or
the
Standard
Oil
Company (New Jersey),
objective (in foreign rela¬
tions) must be 'Trade, not Aid.'
As we stop giving and
start buying more from our friends abroad, we will be
helping them along the road to economic recovery. We
can do that most
effectively by reducing our own trade
who
observes
restrictions.
that
"our
Thus
to
new
make
world
trade
flow
in
freer
channels,
the
we ought to start by examining and altering
trading policies of the United States."
Hard
Sense
Now, obviously there is a thread of good hard sense
running through most of this. Willingness not only to
suffer competition to exist but to
encourage it and then
insist upon
it—as has not always been true in the manu¬
facturing world — is a most worthy goal not only for
manufacturers, but for all business at this time. For
manufacturers
as
a
to take the initiative
group
Most
in
re¬
But there is,
or ought to be, reason in all things.
would be foolish in the extreme to suppose that
changes, or anywhere near all of them, that have
occurred during the
past decade or two are good or worthy
of perpetuation. It
may be that business must not expect
to revert to
ago,
some
of the labor
but it is certain that it
practices of
cannot
to submit forever
(if it
can
tices
been
rammed
which
have
help it) to
the New Deal and the Fair Deal.
afraid it is true, that as a
escape
a
half century
reasonably be expected
down
some
its
of the prac¬
throat
thinks
Continued
incessant encroachment
policy.
This has left our
badly bruised and
economy
sorely tried. The assault has taken
various forms. For political expe¬
baser purposes,
constantly been made
and
diency
it
even
efforts have
by those in power or those seek¬
ing
in
be
to
power;:to f provoke
distrust and strife between indus¬
trial
and industrial work¬
owners
between
and
community
propose and effort which so
logically must exist between these
two great segments of our indus¬
trial economy. The effect of this
has been to produce a sense of
unrest
and antagonism where a
ers,
management
breech
the
of
from first
page
Revamp Our Foreign Policy
That Is Leading to World War
alliance
confident
and
firm
built
mutuality of faith and un¬
derstanding and a community of
which
is so
capable of rapidly society—the owners of industry, purpose will not only serve the
mounting the means to retaliate the workers in industry and the interests of both, but further the
and to destroy.
public served by industry. It has well-being of the third great eco¬
nomic
been well said in describing it:
segment,
the consuming
Industry has thus become the
"This
is
America's
Age
of public.
leavening influence in a world
Another and yet more seriou3
where war and the threat and fear Triumph.
The brain of man is
form of assault upon the capitalis¬
of war would otherwise complete¬ abstracting from the Universe its
tic system has been the increas¬
ly distort the mind of men and fundamental secrets. There are no
ingly oppressive government
violently react upon the peaceful limits any more to production.
levies
upon
both
capital
and
Historic deficits
are
transmuted
progress of the human race.
into future surpluses. So fast is profit. The principle underlying
In the mighty and almost limit¬
such levies has not been to equal¬
less potential of American indus¬ progress that today's wonder is
ize the
burden of meeting the
tomorrow's
obsolescence.
More
try — the brilliance and rugged
legitimate costs of government by
its
of
determination
the
leaders;
and more!
has
workers—there
almost
an
against
who
defense
impregnable
designs
evil
the
of
the
threaten
would
any
security
continent.
American
the
of
welded
been
It
is
upon a
Better and better!
a
"These
skill, energy and patriotism of its
are
free
men.
of
ments
not
things
merely the
one's
in
mind
design originally evolved by Karl
worship
to speak
places,
public
unmanacled.
about
move
to
way, or
own
first
to
Marx
Thus,
weaken
and
then
capitalistic system.
of
our
tax
laws
the
destroy
or
It
just and uniform assessment, but
conspiratal
has followed instead a
is
Freedom
right
God in one's
to
the achieve¬
many
is
amount in practical effect to a
importantly, the right series of graduated penalties upon
vincing argument yet evolved to to create, the right to work and the efficiency and the thrift which
restrain
the
irresponsibility
of the right to possess the fruits of produces profit and accumulates
those who would recklessly bring that labor. Economic freedom is
capital—penalties which strike at
down upon the good and peace- the basis of all other freedoms.
the very roots of the incentive to
loving peoples of all of the nations
"It is this fundamental liberty labor, to create and to cheerfully
indeed the most forceful and
the
earth
the
of
con¬
of total
disaster
war.
I
say
behind
the peace-loving peoples
the
the
Curtain
Iron
the
of
masses
long for real
fail
who
just
as
world
free
It is political
great con¬
peace.
leaders
this
chanics of
have
talents
unable
been
solve
to
the risks and hazards of
enterprise in the traditional
American pioneering spirit.
Karl Marx shunned the use of
that is the driving soul of Ameri¬
accept
true solution.
a
me¬
Indeed,
achieved
the
proportions which permit the
un¬
literate
ity of
has
statute
as
war
arbiter of inter¬
an
national discord, our industry will
be the
continue to
Its mighty
only imposes
best deterrent.
potential, which not
almost impassable
an
barrier before the tides of modern
war,
but also insures
human
continuity
must be pre¬
progress,
in
be
unimpaired
left
full
a
readiness.
served
as
It
an
in¬
Must Preserve American
Industry
But to preserve it, we must un¬
derstand
it.
We
must
that it comprises not
understand
only
a power
that
ernment.
In
progress
are
are
repeatedly
seize
same—to
the
of
in the
or
economies.
masquerade
Fascism
purpose
wipe out
a
threat is
They
the
primary ele¬
it for
the State. The
are
terrifying because it
the certainty
or
is
ment of Freedom and usurp
ries
car¬
of disaster.
"It is imperative that we stand
militantly
for
the
most
vital
quality
of
Americanism
Eco¬
—
their
has
even
by
Communists,
travelers
the
some
the
oy
fellow
Socialists,
tacitly repudiated
themselves.
a
loyalty to
practice which has
them
served
well
and
built
being, but a reserve power this nation far beyond the wildest
capable of being quickly mounted dreams of its architects. It has
overcome
any
eventu¬
failed
never
condition of readiness
born of American enterprise and
represents
a
maximize
to
ality. We must understand that it fruits of human
energy
and
the
resource
American
ever
increasing standard
man
life.
in American
It
has
never
for
an
for hu¬
failed
to
provide the sinews for victory in
war
product of the capital¬
and has become
great
istic system. This system embraces
American
Was
hope
in
the
now
the
struggle
one
for
peace.
every
segment
of
our
the principle of
with
Nihilism under which the
Communism
was
far more success¬
ful. The minority in many
ever
greater hypoc¬
sectors
where
the
able to establish
the majority. Only
concept
of
human
liberty
was
most
of the globe was
rule
over
rooted
deeply
greatly advanced were such
minority pressures decisively
and
thrown
Such
where
back.
the case in this nation
was
economy,
our
built
upon
principle of private capitalism,
became
recognized as the great
barrier to the universal enforce-*
ment of the theories of modern
Communism. There followed re--
the
peated
diversified efforts to
and
by
of
it. Resort was
private profit
the Marxism-inspired device
confiscatory taxation and the
wealth by
direct
privately accumulated
of
absorption
private
inheritance, gift and other
levies upon
resources.
there
control
public
policy
was
sought
through terrorism and assassina¬
tion. This combination known as
of
had to the control of
provide
nurtured
It is the
Marx
to
and incentive and tinding
its ultimate strength
the
crea¬
War.
combined the theory of
was
Karl
reduce and destroy
energy
will and determination.
the close of the First World
Then
tive enterprise. It has never failed
vision,
upon
-
they
propaganda,
to
theory and
both
the
system
capitalists
have waivered in their
a
and
capitalistic
been
Succumbing
the human
however, rejected this prin¬
ciple and the element of force was
injected by the Bolshevik after
its
nomic Freedom."
-tfeiaborea
production. The in¬
of
means
com¬
the sources
race,
their
the State.
of
ownership
a
be
Socialism,
and
erected.
the politicians
titanic struggle to
Communism
of
munal
to
voluntary
principle of
nate common sense of
control
it
acceptance of the
over,
engaged in
Whether
barriers
area
in
to meet and
violence and sought the
"It is the Age of Triumph—in
everything except the art of gov¬
must
dynamic
a
promise to foster good and
nothing is left but the shadow of
hope.
yet For, the world
as
the
until their spiritual and moral and
of
most
canism. Degrade or abolish it and
of all of the nations, for the masses
do
also,
It may be true, we are
allegedly growing out of its "social responsibilities," but
scarcely reasonable to expect it willingly to continue
it is
free
give the
or
wit¬
the capitalistic system
through the direction of our own
prevent
during
practical matter business cannot
in the degree which used to be the case burdens
an
».
have
years
upon
labor—to
herent threat to repel evil.
last week.
all the
not
20
past
nessed
do any such
thing. This, as well as the
worthy objectives now being laid out for business
will best be attained, so far as
they can be attained, by
attending assiduously to business and avoiding excesses.
equivocal recognition of the futil¬
practical likelihood that
anything approaching a state of
"innocuous desuetude" by
any manner of scheming or
indirection. The state of public
thinking about employeremployee relations is such that a return to many of the
practices of the past simply is out of the question, prac¬
tically speaking. Recognition of this fact is hardly more
or less than hard realism on
the part of business. And
so it is with a number of other
questions which came in
for a
good deal of discussion among the manufacturers
man
System
The
to
here to stay. Neither is there
any
it can be reduced to
Any
The Encroachment on Capitalist
public
cept—whose
^
which
thinking.
moving barriers to freer trade between this country and
the remainder of the world would not
only be a break
with the past but v/ould
signal a fresh and constructive
attitude in this highly important area of business. Labor
unionism, whether we like it or not, is without question
,
riding
important of all, perhaps, at this moment, busi¬
must not delude itself that it knows how to
ness
ot' such
source
while scoffing at and de¬
the very institutions by
those goods are produced?
goods
other
Comments
a
about these
of fallacious
the
wealth—those who seek American
for
depressions. Equally important is it that it
public the impression that it either knows
must
while denouncing and
condemning
though
public prejudice which
owes its
origin to rabble rousers. At the same time, it is
equally clear that he need not be an abject slave of the
whims of vox populi, or that he must not
join hands with
the intelligent elements of the public to
change the course
name
evil to be renounced
an
ills
nomic
us—indeed much less than many of the rest of us—can
afford to fly in the face of public opinion even
the latter be but another
as
by human society while avidly
seeking to ensnare its benefits—
those who regard American dol¬
lars as the panacea for all eco¬
be
prove that our free economy can solve
problems for the people, that it can produce jobs and
prosperity and raise the standard of living. We must have
a sense of social
responsibility to see that our economic
machine is operated for the benefit not only of our stock¬
holders but also of our customers and employees and the
"We
talism
Enlightened Self-interest
American
Thursday, December 11, 1952
...
Most
government
over
officials
of
our
the past years
Volume 176
Number 5176
...
The Commercial and Financial Chronicle
(22
will deny, and justifiably, any in¬
dependent
upon
strong and vi¬
a
tent to establish in this nation the
brant
basis
a
a
competitive system of private cap¬
italism.1 We must by exemplifi¬
cation encourage other nations and
peoples to build soundly for their
the protection of Korea and the
in
omy, soundly rooted in a free and
for
the
Socialistic
of
emergence
or
eventually
even
Communistic state, but the course
of fiscal policy has done just that.
Government's Course
Should
Be
clear
fact
if
that
tem— free
preserved
tions of
unmistakable
is
the
capitalistic sys¬
— is
to be
the
future
people, the
our
government must
reoriented
trial
and
enterprise
to
and
leadership
invincible
genera¬
course
of
be sharply
now
America's
must
indus¬
assume
an
uncompromising
that
system.
Only
of
thereby
may
preserved
there be fostered and
incentive
adequate
to
thrift, the industry
and the adventure which brought
our
nation
to
its
present pre¬
encourage the
eminence among all of the other
nations of the earth and which
alone
it forward in
and security and progress.
can
peace
In
carry
with
accordance
tutional
precepts,
about to send
a
consti¬
our
we
now
are
Administra¬
new
tion to Washington to assume the
Must Not Sacrifice Our Resources
in Foreign Aid
While
helping to the extent rea¬
sonably possible, we must not as¬
purely
sume
risks
and
tion
our
ernment and
lighten the existing
taxation; that it will
unnecessary
control by
of
abolish
government
otherwise
business
upon
and
curb
unjustifiable
in¬
by
government
in
terference
private affairs; that it will stem
the spiral of inflation and through
fiscal
sound
policy gradually
store the lost
the
the
purchasing value of
and that it
dollar;
re¬
of
advance
will stop
socialism
in
this
liberties
own
in
the
il¬
our
will alone suffice to
the liberties of others.
must
help themselves
help them.
We
have
only
as
faith
of America's in¬
wit¬
the ques¬
Few
are
so
to wish to isolate this
as
nation from the
community of
na¬
tions drawn close by the advance
of modern communications.
But
review
need
we
than
those of 20 months
ago when I left
the scene of action, and the solu¬
tion then available and
capable of
success
is not now
entirely ap¬
plicable.
A
present
solution
basic decisions which I
involves
recognize
improper for public disclosure
or
discussion, but which in my
opinion can be executed without
as
either
an
unduly
friendly
heavy price
casualties
creased
or
in
in¬
any
versal
danger of provoking uni¬
"Our
Course
World
Leading
to
War"
hand,
our present
mounting hatreds
inspires, is inevitably
course, with the
which
it
leading toward
greater
fallacy
world
a
No
war.
exists
respected
President-elect
national
too
in¬
integrity
much
of
danger to our
from yielding
our
sovereign indi¬
vidualism. Few realize,
however,
that the effect of our foreign
pol¬
icy over the past years has been to
join in prayer that
safely pass through the
may
hazards
involved
of
the
possible
of
dislocation
our
economy
now
largely resting upon the pro¬
in massive quantities of
duction
the
sinews of
fear
end the
to
We must not
war.
reckless
and
ex¬
hausting extravagance of govern¬
ment merely because it may force
upon
increase of frugality.
an
us
Better if need be we increase
thrift
own
ren
than
leave
and children's children
of these
All
reforms
cannot
be
in the exercise of its great power
and influence, not only to support
the
new
forts
to
Administration in its ef¬
existing
eradicate
eco¬
but to see to it that
Administration does proceed
nomic evils,
and
accomplish
certain the investors would not
be satisfied to receive their
profits
in
Brazilian currency deposited
in Brazilian banks. After
all, the
benefited
responsi¬
bility America's industrial leader^
ship
cannot abdicate and cannot
There
is
involved
not
alone
a
sharp revision of domestic policy,
equal importance, the re¬
of foreign policy to
conform to realism and the unmis¬
takable lessons of history.
We
but of
orientation
must recognize
vival
best
that the very sur¬
as the concept
of freedom,
ensuring
human
the
progress,
is
bank.
This
vails in
now
sort
of
is
his
credit
a
Brazilian
a
situation
pre¬
good many parts of the
world, and there is even worse,
as
you know.
a
Foreign
Confiscation
In
other
the
only lost
many
the
collective
expression
all
of
the
of
the
comprise
it,
emotions
individual
which
mind.
As
a
word
for
confiscation, and
foreign owfters have not been
their
losses.
I
refer
to
what
took place in Mexico not
so
many
the
flower
of
American
barren
wastes
of
unfriendly
occasional
an
un¬
before
rest
re-entering the
valley of the shadow of death.
easy
it
So
weeks
now
has
been
and
these
months
which
into years
grown
endless
have
since
Red
China initiated war against us in
Korea, and the indecision of our
leaders
committed
the
to
us
ter¬
rible blood tribute exacted by this
type of stalemated attrition. Never
before
has
this
nation
been
en¬
and,
ago
do
we
much
more
about that?
I
re¬
venture
suggest that if
we followed, as
feasible, the policy of the
British during the period of their
hegemony in the nineteenth cen¬
far
as
tury it might in the long run be
easier for us to help some of the
undeveloped and backward
tries. The British in their
quite
were
ready
to
coun¬
heyday
protect
the
investments made by their citizens
in foreign lands. They
supposedly
did not undertake to protect them
against
ordinary
business risks,
always draw
sharply. They cer¬
tainly were ready to step in to
prevent confiscation of the prop¬
but perhaps did not
the
line
erty
very
their
of
nationals.
On
the
other
hand, we have followed
extremely vacillating policy.
an
bear
themselves
are
borne
by others; and that a na¬
tion's loss of self-respect more of¬
ten
than
not
is
translated
and vacillation of
our foreign pol¬
icy, is forcing us into isolation just
as
surely as though we deliber¬
ately set out to sever our foreign
history's
about
teachings
Korea?"
keep faith
with
Today
old
of
else
those
stand
we
a
can
we
we
ask
to
will
none can
What
They
vast
before
open
us
there, just
beyond
the
horizon, just over
there, and they are of a magnif¬
icence
and a
diversity far be¬
yond the comprehension of anyone
here today.
Our progress up to
say.
has
now
been
in
followed
are
direct
ratio
to
should
is
in
the future
will
no
the
progress
can
we
progress
determined
be
in identical fashion.
tions of the world.
fails
shows
there—and
few
signs of
thus
far
it
succeeding—
will
fail
everywhere
failure
will
become
and
With freedom
be
limit to
no
make.
can
The
world that lies before us has
new
boundaries.
izons.
Its
It has
no
like
its
I
have
future
an
of
grounded
great contributing causes for
na¬
acter of
to
withdraw
For
one
again towards
is the very op¬
posite of the other. This
be
seems
to
little
recognized, for it is not
the least of the strange anachron¬
isms of these strange times that
those who advocate most
strongly
the principle of collective security
in the protection of Western Eu¬
rope
are
either lukewarm
or
ac¬
are
as
have
Franklin
now
argu¬
have
been
bribed
cessions
to
to
have
officials
make
con¬
investors
favorable
too
There
there
native
foreign
much
them.
that
to
on
the
latter. On the other hand, I should
not think there would be very
much enthisiasm aroused by urg¬
people to put their
risky
enterprises
when
that
is
it
we
money
abroad
perfectly well known
are
just
as
likely
as
not
in the future to have administra¬
tions
following
a course
somewhat
like that of Presidents Wilson and
lost hor¬
Roosevelt.
broad
You
cannot
have
it
both ways.
as
Federal
of
be
it.
It
give the
the
huge
wields, and
now
that
too
much
has been granted to it. But
power
that
made
to
years
it
the
adopted
think
us
today
when
government
which
power
fact
was
165
it
as
may,
progress
was
rather
slowly. Even in my
boyhood days—that is, within the
period
of
life—the
one
citizen had almost
average
contact with
no
the Federal government.
On the other hand, the
League
of Nations and the United Nations
have
sprung like Pallas Athena
full grown from the head of Zeus.
I believe both institutions would
more satisfactory
originally little more had been
attempted than bringing together
if
those
international
ready
in
the
agencies
al¬
existence, such as the
Union, the Health Office,
Postal
International
which last to be
Labor
Office—
did not exist
sure
prior to the League of Nations—
and
other similar organizations.
If
they had all been located in one
an opportunity thereby
this
the
Now,
abiding faith in the
nation
—
a
faith
in the invincible char¬
American
people. It
triumph in our
adversity and
place and
of
the
wish
be
what
Proposals
concrete proposals
In stating some, I
that they are not in
the least original. As far as I am
can
to
world
to
meet
to¬
gether to discuss simple problems,
there
might have
this
of
developed out
gradually more and
cooperation.
more
international
It
to
seems
like
this
be
field.
economic
that
me
might
something
in the
done
The
European
Union seems to be a
good start. It furnishes for Euro¬
Payments
countries a place where a
international currency
problems can be solved. Countries
do not feel that their sovereignty
is invaded by the actions of the
European Payments Union any
more than they feel that to be so
pean
good
in
many
the
of
case
International
the
Bank for Reconstruction
velopment
Bank
and De¬
in earlier days, the
or,
Settle¬
International
for
ments. Even countries behind the
Poland and
as
Czechoslovakia
have
membership
in
—
accepted
the International
De¬
Bank for Reconstruction and
velopment, and the Soviets them¬
while not members, took
active part in the establish¬
selves,
a
very
both
of
ment
International
the
tical, everyday ones, in which di¬
visions
of
a
an
made?
say
not
are
likely
so
to
be
ideological nature. It is not
question of Communists on one
side of the fence and those of the
Free World on the other.
When
you
start
settle fundamental
by trying to
political prob¬
without any prior experi¬
testing, you run into
difficulties. So I rather believe
lems,
and
ence
what
that
should
be
done
is
to
support organizations similar to
European
Payments Union
and the International Bank, You
the
might begin, as has been sug¬
gested by others, with separate
and
groupings
Concrete
the
tions
limits
to
when
terms
not
spirit and the imagination of
of
one
taken
some
actual
Fathers
as
different
very
people have always Bank and the International Fund.
foreign countries as we The
problems considered are prac¬
times
into
of
rate
am
been
ing
Our
President
question
no
the degree of human freedom af¬
assured, there
it
has
a
it
what
Founding
be
can
our
in
acted
forded
us.
by
D. Roosevelt. I
ing that
the thresh¬
on
life.
new
panoramas
if we would
preserve a pos.ion of leadership
and respect among the other na¬
In
How
die in that distant land?
into
antagonism against its benefactor
just as is that of the individual.
in
Iron Curtain—such
President Wilson as good as an¬
that nations recoil foremost in their deliberations and
against arbitrary dictation by the question must be asked and nounced that American capitalists
abroad need not look to this gov¬
others just as do individuals; that
repeated time and time again of
ernment for any protection. To a
nations lose their self-respect just those in
authority and responsi¬
as
do individuals if the burdens
bility: "What do you intend to do great extent this policy was also
individuals;
they should
from
is
have been much
Investment
consequence of
the rising
spirit of nationalism, investments
have in many instances been na¬
tionalized, which is simply an¬
to
not
of tually opposed to the successful
largely application of the same principle
continuity
receiving
established for Kim in
soil, with only
isolation.
avoid.
by
document
than
Constitution
our
It
men
it
a
stockholder
contrast.
had been furnished for the states¬
it has been charged
This is
American
average
not
man.
and entrusted.
to
am
off
chewed? Take
a
that similar methods
may be fol¬
lowed in other countries. What
forthcoming, hundreds of thou¬
sands of
the
toral process
comparable
Venezuela, I
bitten
is
If
reasonable
be
been
cently, in Iran. The fear prevails
diligence to the
task with which under our elec¬
the
Brazil
to
were
venture to assert, not very
Isn't it that more has
me
successful?
years
Korea, the principle of col¬
lective security is now on trial.
with
in
sums
those invested in
hold
have
we
overnight.
It will
take time to avoid a precipitate contacts. It bespeaks the utter lack
cure
which
might prove even of realism
underlying the
ap¬
more exhausting than the disease
proach to our foreign affairs and
itself. But it is the responsibility gives clear warning that we must
of America's industrial leadership get back to the fundamentals of
accomplished
country. If
invested
For
faith abroad due to the weakness
her¬
the
can
This, coupled with the loss of
a
to
youth must continue their fight to
our
itage of want and despair.
it very difficult
be able to send profits outside
establish the very basis for isola¬
tion whether we choose it or not.
child¬
our
existing
make
Free World
a
let
his self-appointed task with vision
and wisdom. For until a solution
duty as citizens to rally in firm consequence, one finds in the ex¬ gaged in mortal combat with a
support of the new Administration perience drawn from the relation¬ hostile power without military ob¬
and give it every chance and as¬ ship between individuals a gen¬
jective, without policy other than
sistance within individual and col¬ erally accurate guide as to the re¬ restrictions
governing operations,
lective power to fulfill its pledge actions to be expected in relation¬ or indeed without even
formally
and restore to the country a pros¬ ships between nations.
recognizing a state of war. Wher¬
This should have taught us that ever
perity based upon sound rather
and
whenever
Americans
nations are just as sensitive as are
than illusory considerations.
foregather, this issue should be
cause
under
Brazil
adequately, if at all, compensated
the
see
the
so
which
conditions
Brazil?
for
All
with
be¬
temporary
laws
with
he
advanced
relations and commitments
our
rule
this land of normalcy merely
it
than
by
those who for
varying reasons tell
you otherwise.
Our
has
is
dividends in the form of
conflict.
Present
How
of
abroad.
system of government and in the
We must not fear the return to
Foi
the
all Americans
most
American tradition, it becomes our
our
further
no
Policy
weaknesses
own
ternationalists, wish in varying
degrees to circumscribe the nature
the
even
which
For under
our
go
An Economic
Conflict
would frankly face
we
11
page
has announced his intention to go
there in search for an honorable
end to so tragic a slaughter, and
all,
individuals
dustrial leadership.
and
we
abroad, but weak¬
country and re-establish measures
ened many friendships which we
designed to encourage the devel¬
still retain in varying degree.
opment of our traditional free
This could have been avoided
enterprise economy.
This pledge accepted by man¬ had our leaders but recognized the
date of the electorate is deserving simple truism that a nation is but
the full
Korean
Indeed, if
from
Solution to
a
On the other
on
isolationism.
foolhardy
even
recently
sharp debates
of
They
former friends
of
There Is
se¬
resources
cure
tion
public administration; that it will
sharply reduce the costs of gov¬
the
right¬
lusory belief that the pledge of
nessed
corruption, waste, in¬
competence and subversion in the
altruism
which
ship and universal respect may be
purchased for a price. We must
not hypothecate beyond
redemp¬
people in reliance upon the
pledge that in domestic affairs it
will root out
from
burdens
fully belong to others. We must
abolish the idea that world leader¬
ministration chosen by the Ameri¬
can
Continued
Far East.
security and economic prog¬
great tragedy of Korea. While it is
and scrupulously avoid the
well known that
my own views
underwriting at our own jeopardy
time being, I should
have not been sought in
say that the
any way,
of any ill-considered experiments
yet I am confident there is a clear large corporations such as the oil
with
economic
theories already
companies and steel companies of
and definite solution to the Korean
tested and found wanting in the
this country feel
conflict. There has been a mate¬
perfectly safe
crucible of experience.
in Venezuela.
rial
change in conditions from
reins of government. It is an Ad¬
burdens
econ¬
ress,
and
defense
industrial
own
Sharply Reoriented
:
The
American
33
not try to
worldwide.
them
As
you
makestart
in various regions—let us
say a group in Europe, another
in Asia, another in Africa, etc.—st
may
be
that
gradually thc^e
groups
cooperate, and in time
develop a real interna¬
peril; and, as it has in the past, it ficulties, it seems to me, in all tional organization. It require:
will again restore to our land the these discussions about foreign af¬ patience, but I do not think you
serenity of hope without fear. To fairs—whether they be in respect can expect suddenly to change the
has
never
hours
such
of
failed to
national
happy indeed to
distinguished a com¬
pany as this, charged in the serv¬
ice of our beloved country with
so primary a responsibility for the
course
of our destiny as a free,
end, I
am
be among so
happy and prosperous people.
concerned, there is nothing orig¬
inal
to
about
them. One of the dif¬
military arrangements, cultural
arrangements,
or
economic ar¬
rangements—is that we start off
with
too
grandiose plans. Take
League of Natm is
and United Nations. Why did ine
groups can
you
world. If too much is
why is the latter,
ventured at
outset, and the scheme , re¬
lapses, you make it just that much
the
more
for instance the
former fall and
may
v» e
difficult to attain the goala
all desire. Every failure makes
Continued
on
page
J4
34
The Commercial and Financial Chronicle...
(2250)
Continued
from
Continued
33
page
from
Leading grain markets closed the week with moderate net gains.
5
page
Thursday, December 11, 1952
Despite the improved outlook for Winter wheat
An Economic
For
'*
nations
any
Free World
a
hesitant
more
The State of Trade and
Policy
to
support
kindly souls
would
always
paint.
I
am
sur¬
prised by the enthusiasm of some
in
supporting such schemes as
"Union
Now,"
"World
Federa¬
tion," and what have you. Do they
really think that by getting to¬
gether and whooping it up, the
Soviets will suddenly change and
give up all their present policies?
Do
the
know
of
are
in the vast,
the
ideas?
various
these
even
I
there are some who do.
they of any consequence
suppose
But
Russia
of
people
seething population of
Soviets
satellites?
their
and
Do you suppose
that the Chinese
fighting in Korea has the
faintest notion of such plans? I
world
you
is
won
is no need
in the
and that if
a
sufficient
there
everyone
over,
convince
can
number of the leaders in the vari¬
countries you may get some¬
ous
where.
what
But
makes
convince the lead¬
ers?
I
suppose
I
am
just
a
Doubting Thomas; but I do wish
drive home this—namely,
to
often
people
well-meaning
that
do
by trying to force
perfectly good plan at
the
wrong
time in the wrong
place. This is a hard world and, if
you look over the long period of
history, it has taken often decades
and in most instances centuries
harm
great
through
a
progressive ideas to prevail.
pendulum swings backward
and forward. The old proverb—
make haste slowly—is the one to
total will be
is
nothing
Capacity
experienced.
These,
however,
Domestic
the
are
hope prevails that controls will be removed to large
Administration takes over. Yet, such
Strong
action
markedly,
improve
enlargement of the
if
Korean
as
The
American
Iron
and
Steel
Institute
that
announced
loan.
tons
of
ingots
Electric Output
and
steel
for
the
previous high level
vember
of
kwh.
attained
Car
on
464,287,000 kwh. above that of the pre¬
the
members
of
Stock
Exchange.
Bldg.,
Midwest
Robbins
was
Mr.
formerly with Ball,
Burge & Kraus and prior thereto
his
conducted
investment
own
business in Cleveland.
mond J.
Calif.—Ray¬
Roberts, Jr. is now with
Building, mem¬
Kaiser & Co., Russ
bers of the San Francisco and Los
Angeles Stock Exchanges.
With Salomon Bros.
(Special to The Financial Chronicle)
SAN FRANCISCO,
ert
Parish
L.
with
is
Salomon
Calif.—Rob¬
&
Hutzler,
Russ Building.
made
of 96,164
to
SAN
liam
,
Veith
is
connected
with
Waldron & Company, Russ Build¬
ing.
Atwill and
affiliated
'
cars
did
not
cars
(Special to The Financial Chronicle)
CITY,
Neb.—Earn¬
.
Inc. of Kansas City, Mo.
^
BEACH,
Fla.—Edward
Since
more
-
;
a
earlier.
year
-
,
'
\
;
\
was
from
the
level
near-record
..
.
>
.
of
.
the
-
.
much less reluctant to augment their inven¬
were
record
in
were a year ago'; their earlier expectations of a
Christmas shopping appeared to be
justified. The
purchasing of Spring merchandise was noticeably earlier than in
Recent delivery snags due to delayed ordering
spurred buyers to anticipate their needs.
;*
•
.the last few years.
Department store sales
>
the
Federal Reserve
1952, decreased
July 4, 1950, in Latest Week
on a
country-wide basis,
Board's index for the week
14%* from the
level
the previous week an increase of 9%
~
1951.
For the
of the
was
as
taken from
ended
Nov.
29,'
preceding week.. Iii
reported from that of the
four weeks
ended
Nov.-29, 1952,
sales declined 4%.
For the period Jap. 1 to Nov. 29,.
1952, depart¬
ment store sales registered a drop of 1% below the like
period of
the preceding year.
*
•
A decline of
wholesale food
one
cent last week brought the Dun & Bradstreet
price index for Dec. 2 to $6,22,
a
new
low since'
mas
July 4, 1950, when it stool at $6.19. The current figure compares
with $6.68 on the corresponding date a year ago, or a drop of 6.9%.
It is still 4.4% above the pre-Korea level of $5.96 on June 20, 1950.
some
Although movements were irregular, strength in some leading
a mild upturn in the Dun & Bradstreet whole¬
Levenson is with H. Hentz & Co.,
on
the corresponding date
last year.
about
even
with those of
.
commodities caused
414 71st Street.
were
As
a
one
consequence,
year ago.
store
Price Index Shows Mild Upturn
last week. The index closed at 285.27
week ago, but well below the 311.23
degree the expansion in dollar volume.
.According to the Federal Reserve. Board's index,.department
sales in New York City for the weekly period ended Nov.
29, 1952, decreased 24%* below the like period of last year. In .the
preceding week an increase of 2% was reported from that of the
similar week of 1951, while for the four weeks ended Nov.
29,
1952, a decrease of 11% was recorded. For the period Jan. 1 to
Nov. 29, 1952, volume declined 9% under the like
period of 'the
preceding year. ■
.
c
.
;
:
" «•
total of the price per pound of
general use, and its chief function is to show the gen¬
eral trend of food prices at the wholesale level.
: •"'
The index represents the sum
Wholesale Commodity
Retail 4rade in New York last week was stimulated
by Christ¬
buying, but unseasonably warm weather served to check in
the week's sales
31 foods in
sale commodity price index
on Dec. 2, up from 283.90 a
were
,
.
-
in the week
ended Dec. 4 from 127 in the preceding week, according to Dun
& Bradstreet, Inc.
While casualties were down slightly from a
year ago when 136 occurred, they were off considerably from the
1950 total of 170. Continuing far below the prewar level, failures
were down 60% from the 297 recorded in the similar week of 1939;
H. Hentz Adds
MIAMI
..
.
Merchants
In Latest Week
(Special to The Financial Chronicle)
-
tories than they
est Phares is with Goffe & Carke¬
ner,
-
As during the past few months, total orders continued to
out¬
number those of a year earlier..
'
*
*.
3,644 cars and 2,180 trucks against
and 3,275 trucks in the prior week and 2,807 cars and*.
Business Failures Continue Lower Trend
with
With Goffe & Carkener
Leather goods
*
in
appreciably
similar week of
Company, 605 Lincoln
CENTRAL
vary
prior week.
Wholesale Food Price Index Touches New Low
Road.
r;
reduced by the holiday in the week
ended this Wednesday, the total dollar volume of wholesale
orders
Commercial and industrial failures dipped to 120
BEACH, Fla.—Norman
now
parts.-
many
before.
Although trading time
.
Canadian plants turned out
3,256
(Special to The Financial Chronicle)
MIAMI
year
has the nation's first operating UHF station.
-
32,792 trucks built in the United States, against 86,403 cars
26,847 trucks the previous week and 90,306 cars and 22,159
trucks in the comparable period a year ago.
-
With Atwill & Co.
R. Kevers is
a
phonograph records were increasingly popular. Television sets
were
in higher favor than a year before with substantial
:rises
reported in cities with new stations such as Portland, Ore., which
and
Staff
FRANCISCO, Calif.—Wil¬
R.
bellr
a
household goods remained more avid than in
the similar 1951 week.
Giftware, small appliances, silverware and
new
(Special to The Financial Chronicle)
outerwear in
tinued to be close to the level of
1,660 trucks in the comparable 1951 week.
Waldron Adds
in
The interest
up
considered
purchasing of food on'the retail level declined slightly
from the all-time high reached during the
prior week but Con¬
Advances 11% in
was
usually
The
built, according to "Ward's Auto*
for the past week
Thanksgiving,
and
associated
now
Bros.
interest
production in the United States last week rose
when there was
one less workday because of Thanksgiving Day.
;
It aggregated 96,164 cars compared with 86,403 cars (revised)
in the previous week. This was about 6% more than in the year
motive Reports."
Total output
after
was
in demand than
car
cars were
Friday
,
11% from the level of the previous week,
week when 90,306
:
•
week.
ago
12,277,000 bales, the largest to that date
The buying of apparel rose considerably last week-as many
shoppers began to work their way down their gift lists. Tradi*
tionally popular items such as haberdashery, accessories and lin-igerie rose seasonally. The arrival of Winter weather stirred the
below the
Passenger
reported at
period ended on
estimated by Dun & Bradstreet, Inc., to be from
2 to 6% below the level of a year
ago. Regional estimates varied
from the year-ago levels by the
following percentages: New Engx
land 0 to —4; East and Midwest —3 to —7; South and Southwest
—2 to —6; Northwest —4 to
—8; and Pacific Coast —1 to —5.
corresponding week a year ago, which did not
holiday, and a decrease of 69,998 cars, or 9.5% below
the corresponding week in 1950, which was also a non-holiday
about
week earlier, and 64.200 two weeks
season
The total dollar volume of retail trade in the
Post-Holiday Week
(Special to The Financial Chronicle)
SAN FRANCISCO,
a
current
The volume of cotton ginned prior to mid-No^-
season.
Wednesday
of
Joins Kaiser & Co.
For the
was
The
freight for the week ended Nov. 29, 1952,
holiday, totaled 670,167 cars,
United States Auto Output
some
ether of the entire shopping season, was marked
by new records
in sales volume in most sections.
*■
include the
Co.
with Prescott &
was
Mr. Rupple
18.4%
was
a report that the armed
substantial quantity of ducks and
easiness at times due to hedge-
a
w
140,755 cars, or 17.4% below the preceding week,
largely due to the holiday.
The week's total represented a decrease of 151,609 cars or
decrease
There
Shoppers increased their spending noticeably in most parts of
on Wednesday as Christmas shop¬
ping started at a brisk pace. Although the total retail trade was
slightly less than a year ago due to the loss of a shopping day,
it was estimated that daily volume was well above last
year.
which included the Thanksgiving Day
a
ago.
the nation in the period ended
Loadings Decline 17.4% in Holiday Week
revenue
week
Trade Volume Rises Under Impetus of Brisk
Christmas Buying
distributed by the electric light
7,971,149,000
a
attributed to
was
in the market for
since 1937.
It was721,499,000 kwh., or 9.7%, above the total output for the week
ended Dec. 8, 1951, and 1,256,832,000 kwh. in excess of the output
reported for the corresponding period two years ago.
Loadings of
last
date
22, 1952.
was
slightly from
up
through Nov. 21, loan entries
333,300 bales, comparing with *790,000 bales to the same
totaled
industry for the week ended Dec. 6, 1952, was esti¬
8,165,463,000 kwh., according to the Edison Electric In¬
This constituted a new all-time high record and compared
the
Nov.
mixed trends in spot cotton prices last week with
bales, from 72,600
previous.
power
with
were
cloths.
to 94,500
In the week
Spurts Ahead to All-Time High Record
The amount of electric energy
and
castings.
year ago.
a
selling and liquidation influenced by continued slow export trade.
Sales in the ten spot markets last week were reported at
243,500
bales, as compared with 314,000 the previous week, and 464,700
in the corresponding week a year ago. Entries of cotton into the
government's 1952 loan during the week ended Nov. 21 increased
starting
Dec. 1, the rate was 105.0% (revised) of capacity and actual out¬
put totaled 2.180,000 tons. A month ago output stood at 106.6%, or
2,215,000 tons, while a year ago when the capacity was smaller the
estimated output was 2,081,000 tons with the rate at 104.1%.
000
were
Further support
services
according to the Association of American Railroads, representing
Tower
Oats
week
cxford
steelmaking
capacity for the entire industry will be at an average of 105.5% of
capacity for the week beginning Dec. 8, 1952, equivalent to 2,191,-
Saunders, Stiver & Co., Terminal
associated
become
export account.
Early strength in the market reflected firmer outside markers
and a more rapid movement of the staple into the government
operating rate of steel companies having 93% of the
with
have
the
There
and, manufacturing needs seem to be gaining rather than dimin¬
ishing. Defense needs have not yet attained peak. And virtually
every civilian durable goods manufacturing line, with the possible
exception of farm equipment, is pushing the mills aggressively for
every possible pound of steel it can get now and in the near
future, reports "Steel" magazine.
The current total
T. Robbins and Edward R. Rupple
and
rose
bookings
closing quotations
Currently, steel is being consumed in almost as great volume
it is being produced. Consumer stocks are rising ever so slowly
William
—
domestic
prices
Lard was weak as hog prices in the early part
slumped to the lowest in more than two and a half
years.
Steers and lambs were strong and finished moderately
higher for the week.
of
war
certainty, this trade magazine asserts.
Chronicle)
(Special to The Financial
both
easier for the week.
reasonably expected only if world political condi¬
be
can
is
averted, and if further stretchout of the defense program can be
safely effected. Continuance of controls until Jan. 20 is a virtual
tions
ceding week when output amounted to 7,701,176,000 kwh.
CLEVELAND, Ohio
for
of hard wheat bakery flours remained
very limited, with bakers and jobbers displaying little interest
despite a large potential demand due to generally small balances
carried on mill books.
The export flour market continued very
quiet. Cocoa prices advanced sharply toward the close of the
week, influenced by lower-crop estimates for the 1952-53 season
and increasing strength in the London market. Warehouse stocks
of cocoa were lower, totaling 36.275 bags, against 37,987 a week
earlier, and 122.442 bags a year ago. Trading in coffee was quite
active with prices holding firm; Domestic raw sugar was
slightly
extent after the Eisenhower
had better adhere.
Stiver
article
51,500,000 the week previous, and 61,000,000
clares.
stitute.
With Saunders,
cash
in active demand and
despite continued arrivals
Rye showed strength along with other grains, while
barley prices were about unchanged. Average daily sales of grain
and soybean futures totaled 59.200,000 bushels last
week, against
the" horizon to indicate any substantial
on
is
supply
of
loosening
The
William T. Rabbins
the
were
mated at
we
the result
strengthened, largely due to the apparent breakdown in Korean
negotiations. Corn prices advanced, reflecting good demand
for
exceptions, the majority withholding their views beyond second
quarter pending developments after Jan. 20 when the new Repub¬
lican Administration takes over the reins of government, it de¬
for
which
as
days, prices for the bread cereal
truce
easing in demand pressure for the major steel products until well
into the second quarter of 1953, states "Steel," the weekly maga¬
zine of metalworking.
Some steelmakers think it will be beyond midyear before
anyone
think you can
Output Scheduled at 105.5% of
Steel
There
coolie
recognize that
waiting until
the past ten
snow over
from Canada.
venture.
that this is not the
new
Industry
year's outlay will reach $32,300,000,000, and the 1953
even higher—about $33,500,000,000.
I recognize
kind of picture some
of rain and
*In using
.
year
ago
.
..
comparisons :for the weeks ending Nov. 22 and Nov.
29,
allowance should be made for the
fact
that
in
observance' of the
Thanksgiving
holiday, store closings occurred in the week ending Nov. 24, 1951, whereas this
they occurred in the week ending Nov. 29.
year
Volume
176
Number 5176
.
.
The Commercial and Financial Chronicle
.
Jhe following statistical tabulations
Indications of Current
Business
(2251)
latest week
Activity
week
or
or
month available.
month ended
Latest
Indicated
stee)
Equivalent
Steel
operations
Crude
PETROLEUM
oil
and
42
gallons
Crude
Week
Ago
(net tons)
Dec. 14
(bbls.
average
*105.0
106.6
2,191,000
*2,180,000
OF
of that date:
Previous
Year
Month
Ago
MINES):
6,246,350
AMERICAN GAS ASSOCIATION—For month of
Nov. 29
(bbls.)
6,668,550
Nov. 29
6,662,550
6,549,050
117,143,000
7,076,000
6,892.000
24,107,000
23,842,000
23,687,000
2,842,000
2,946,000
2,587,000
Nov. 29
10,939,000
10,857,000
9,907,000
76,882
85,175
69,429
12,438
19,842
14,327
3,464,037
3,316,416
3,147,700
3,282,775
3,152,189
62,451
58,184
2,945,500
94,100
118,811
106,043
108,100
211,057,000
206,537,000
210,178,000
192,798,000
188,868,000
18,232,000
17,628,000
193,201,000
16,969,000
27,000
41,000
8,000
19,596,000
18,519,000
9,122,000
16,404,000
7,639,000
223,804,000
219,145,000
224,148,000
14,488,000
15,033,000
10,217,000
80,588
(short tons) end of Sept.
(bbls.)
Nov. 29
Stocks at refineries, bulk terminals, in transit, in pipe lines—
8,942,000
8,885,COO
8,525,000
9,180,000
Nov. 29
Nov. 29
126,833,000
123^85,000
120,563,000
122,893,000
32,190,000
32,086,000
33,760,000
32,545,000
Nov. 29
Nov. 29
117,990,000
117,834,000
120,267,000
102,722,000
53,001,000
52,081,000
53,292,000
September:
10,271,000
47,904,000
*
(BUREAU
2,081,000
2,215,000
are as
Latest
ALUMINUM
Production of primary aluminum in the U. S.
(in short tons)—Month of September
Nov. 29
oil
of quotations,
cases
Month
104.1
Nov. 29
Residual fuel
in
or,
either for the
are
of
each)
Kerosene output (bbls.)
Distillate fuel oil output
*
that date,
Stocks of aluminum
output—daily
to stills—daily average
output (bbls.)
Gasoline
(
Dates shown in first column
Ago
105.5
INSTITUTE:
condensate
runs
:
Dec. 14
on
production and other figures for the
cover
Year
to—
ingots and castings
AMERICAN
of capacity)
tpercent
Month
Week
AMERICAN IRON AND STEEL INSTITUTE:
Previous
35
(bbls.)
output
6,700,000
22,346,000
,
Total
therms)
gas
(M
Natural
2,627,000
gas
sales
Manufactured
Mixed
sales
gas
(M
therms)
sales
gas
(M
therms)
therms)
(M
*
Finished
and
Kerosene
unfinished
(bbls.)
Distillate
fuel
Residual
ASSOCIATION
(bbls.)
oil
OF
(bbls.)
at
at
freight loaded
Revenue
ENGINEERING
Nov. 29
(no. of cars)—Nov. 29
of cars)--
(number
CONSTRUCTION
—
810,922
862,012
821,776
654,949
698,403
663,772
646,877
ENGINEERING
U.
4
$344,173,000
$203,025,000
$195,442,000
220,700,000
129,149,000
120,681,000
240,813,000
and
Dec.
4
123,473,000
73,876,000
74,761,000
4
78,856,000
40,426,000
57,272,000
54,044,000
4
44,617,000
33,450,000
17,489,000
29,253,000
Nov. 29
Nov. 29
9,000,000
10,425,000
9,220,000
12,189,000
653,000
809,000
849,000
1,076,000
-Nov. 29
82,400
*95,300
65,300
148,100
municipal
Federal
COAL
OUTPUT
Bituminous
(U.
coal
BUREAU
S.
and
lignite
Pennsylvania anthracite
Beehive
coke
STORE
EDISON ELECTRIC
Electric output
FAILURES
(tons)
AVERAGE
Nov. 29
100
—
__Dec.
INDUSTRIAL)
AND
—
DUN
(barrels)
imports
consumption
all
AMERICAN
(barrels)
138
134
115
161
8,165,463
6
7,701,176
7,806,795
7,443,964
&
stock
domestic
ZINC
INSTITUTE, INC.—Month of
zinc
smelter
Stocks
COAL
output, all grades
*
(tons
of
at end of
orders
OUTPUT
2,000
period
4
120
127
143
136
Dec.
2
4.376c
4.376c
4.376c
4.131c
Dec.
2
$55.26
$55.26
$55.26
2
$42.00
$42.00
$42.00
of
(BUREAU
and
coal
steel
Pig
(per
iron
Scrap steel
METAL
lb.)
iper
ton)
gross
—
(per gross ton)
CONSUMER
PRICES
(E.
M.
&
J.
QUOTATIONS):
OF
tin
(New
.
Lead
/
Lead
(St. Louis)
,
Zinc
(East
York)
(New York)
St.
103.000c
14.000c
13.625c
19.000c
3
13.800c
13.800c
13.425c
18.800c
3
12.500c
12.500c
12.500c
-
3
24.200c
24.200c
—Dec.
96.88
96.82
Jec.
—Dec.
9
109.79
109.06
113.39
113.12
113.31
——Dec.
9
112.37
112.37
111.81
112.19
9
109.24
109.06
108.52
107.44
Bonds
■-
-
—
-
-
-
—
Baa
U.
S.
Group
102.46
104.48
9
107.09
--Dec.
Dec.
9
109.60
112.37
109.79
109.24
$21,661
$19,585
15,196
13,196
8,669
8,339
7,355
4,892
4,708
4,134
3,777
3,631
3,221
6,926
6,857
5,841
6,716
6,465
6,389
4,071
3,848
3,868
1,494
1,470
1,413
1,151
1,147
1,108
Loan
112.00
9
2.72
2.72
3.18
3.18
9
2.97
2.96
9
3.04
3.04
—Dec.
9
Dec.
9
—
—
-
A
*
2.68
loans—
3.07
All
3.21
3.22
3.25
3.51
3.54
3.60
——Dec.
9
3.33
3.34
3.38
3.48
Dec.
Dec.
9
9
3.19
3.04
3.18
3.21
3.25
3.04
3.06
9
404.7
407.8
410.5
FOR
IN
MODERATE
LARGE
CITIES—
of Oct.
as
15:
190.9
Meats
and
bakery
194.1
1
products
274.1
,
products
Dairy
—
Fruits
and
216.1
——r_
—i—„——„—„:
Eggs
233.2
194.3
,
190.8
232.4
——
Cereals
Fats
463.9
and
227.3
oils
Utilities
Public
Group—
Group
-
COMMODITY
MOODY'S
_——
INDEX—.—
—
^
ASSOCIATION:
PAPERBOARD
received
Orders
(tons)
Production
(tons)
Percentage
of
activity
orders
Unfilled
__
.'
end
at
(tons)
—
period
of
205,897
226,485
179.689
248,614
244,854
AND
AVERAGE =100
194J)
138,958
228,894
-ov. 29
lov. 29
91
98
97
DEALERS
LOT
EXCHANGE
SPECIALISTS
AND
Number
of
502,963
452,959
365,363
Dec.
109.20
5
109.24
109.86
114.82
fuels
Housefurnishings
of
COTTON
142.4
138.2
147.6
144.6
99.0
210:1
165.8
156.3
204.6
205.0
210.4
174.4
.
LINTERS
AND
value
31,032
22,637
923,384
$40,314,408
648,337
694,152
618,109
$28,623,489
$30,480,614
$27,462,391
29,894
19,383
20,797
16,917
other
Number
1
j
—Nov. 22
——-—;—Nov. 22
173.8
166.6
Round-lot
Number
shares—Total
Short
sales
Other
Number
TOTAL
;
<
-
199
Round-lot
AGRICULTURE—Estimates
THE
ON
as
589,974
462,304
$23,838,174
$19,954,455
Nov. 22
—-Nov. 22
271,220
144,590
170,310
126.020
271,220
144,590
170,310
126,020
INDUSTRIAL
OF
353,980
271,040
279,150
251,720
SYSTEM,
NEW
ACCOUNT
sales
-—
—
OF
Active spindle
404,060
205,290
6,048.480
5,331.990
7,047,560
6,253,770
5,568,530
transactions
Total
initiated
on
|
'
■
v
^ja
625,210
616,870
225,980
116,940
122,310
500,980
619,580
652,980
543,620
439,570
878,960
660,560
153,970
116,000
160,040
36,400
8,100
nfnn
[PQ
_
luZ,OUU
•
-NOV. 15
Gshnrt
calps
Other
sales
Total
s&lcs
—
—
—
—
——
—
—
i-
.
,
Total
.i
NEW
SERIES
—
206,199
40.3o0
45,050
22,330
39,140
285.075
325,780
240,520
Nov. 15
Nov. 15
Nov. i5
■*
^
330,125
348,110
279,660
U.
S.
DEPT.
1,?cr n^n
897,475
1,063,52j
1,241,067
964,910
983,109
307,430
147,370
173,050
1,098,405
1,025,800
802,400
1,405,835
1,173,170
975,450
OF
Farm
products—
Processed
i
Meats
f
All
foods—.—
—.
——
————
commodities other than farm and foods
Dec.
— Dec.
,_Dec.
—Dec.
o
2
2
2
2
•„—_'_Dec. 2
1in9
110.2
*110.0
110.0
102.6
91,'?
101.7
104.7
*104.5
105.5
96.2
113.0
*96.2
99.2
113.0
112.1
tlncludes 605,000 barrels of foreign crude runs.
$1,332,534
30,640
39,328
343,722
339,800
413,947
692,017
691,515
112,633,085
853,001
106,439,230
100,349,123
106,402
912,280
99,712,148
67,713
945,366
97,511,473
61,634
675,235
$942,13.9,287
674,576,858
71.60
$965,810,712
696,947,250
72.16
$139,823,853
$129,932,014
$124,998,764
120,668,578
92,000,000
120,912,578
95,000,000
125,802,327
102,000,000
$267,482,827
extended
hand
$264,964,296
6,175,061
$259,646,943
4,624,091
$258,789,235
$255,022,852
,.
net debt balances
customers
to
in banks
of customers'
.
in U. S
__
free credit balances—
value
of
listed
shares
value
of
listed
bonds-,
Member
borrowings
Member
borrowings
RAILROAD
U.
on
Govt, issues—
S.
other collateral
on
EARNINGS—CLASS I
SOCIATION
OF
AMERICAN
ROADS
Total
operating
Total
40,316
(AS-
RRS.)—Month
operating expenses
revenues
-
^
Operating ratio
Taxes
-
—
before charges
(estimated)
Net
railway operating income
Net
income
UNITED
after
STATES
charges
GROSS
of
Nov.
General
balance
-1
debt
Stocks
at
2.345%,*
.
2.349%
'
(BUREAU OF MINES)—Month of
...
(short
"short
end
*Revised
$259,846,858
rate
September:
Shipments
7,635,969
-
annual
Production
AND
omitted):
30_
fund
OXIDE
DIRECT
DEBT
GUARANTEED—(000's
ZINC
$1,290,774
■
October:
of
As
-
omitted):
(000's
and
of
'
"Revised figure,
218
222
$1,315,863
GOV-
EXCHANGE—
31
customers'
Computed
rw
*226
*231
$985,214,968
707,482,556
71.81
OF
RESERVE
carrying margin acounts—
Market
Net
LABOR—(1947-49= 100):
^Commodity Group—
All commodities
^
—
sales
PRICES,
223,700
263,995
304,345
I
Total sales
260,747
of members—
sales
WHOLESALE
if
•—
.
133,910
Vov. 15
purchases
Short
Other
1
—
———
Total round-lot transactions for account
122,310
164,500
Nov. 15
Nov. 15
lm,m
-
——
156,400
196,750
994.640
-------»»v.l5
160,350
»9.600
OV, lo
—
.
7100
23,182,000
20,394,000
.10,721,000
460.3
112,151,693
BOARD
FEDERAL
Market
11,600
—
TrtiaSteU
THE
STOCK
firms
561,880
v,0V- \
-Nov. lo
sales
PltVipr
826,350
118,600
the floor—
purchases
-
Short
6o6.510
20,041,000
9,134,000
—
on
Total
*ov. 15
23,122,000
20,215,000
11,525,000
498.6
adjusted
Total of
Cash
^
15,144,000
hours per spindle in place Nov.
October
Member
Credit
—Nov. 15
—Nov. 15
—Nov. 15
—
of
As
236,540
6.643.500
14,905,000
COMMERCE):
OF
PRODUCTION
Unadjusted
221,636
5,996,720
6,213,350
15,038,000
227
231
(DEPT.
Spinning spindles active on Nov. 1
Active spindle hours (000's omitted) Nov
MEM¬
—-
-
12,804,430
*
■
1:
Spinning spindles in place on Nov. 1
Seasonally
YORK
sales
Total sales
*
1935-39=100—Month of Oct.:
ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
—
——
Other
Dec.
bales—
gross
SPINNING
COTTON
BERS, EXCEPT
\
of
539,063
500-lb.
Production
NEW YORK
FOR
274,000
OF
$22,128,328
J°v. 15
T°,r- 15
^ov> 15
TRANSACTIONS
Other
DEPT.
S.
4,843
854,007
-
Short
13,419,943
U.
—
$34,239,581
sales—
Total sales
✓
PRODUCTION
COTTON
ERNORS
SALES
21,895,000
COMMERCE)
OF
1__
Dec.
to
6,429
sales
ROUND-LOT
bales
4,281
sales
Other
(DEPT.
GINNING
Running
3,949
—
STOCK
ROUND-LOT
Short
COTTON
16,713
—————
shares
21,398,000
88,000
468,73:*
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
Total
21,432,000
of September
of Sept. 27
as
20,673
purchases by dealers—
of
month
994,000
3,312,000
116,000
27
spindles active
594,255
sales
:
721,248
744,383
814,000
1,795,000
95,000
528,000
27
19,264
sales
Round-lot
124
of Sept.
as
3,977,000
577,000
public storage
949,000
22,305
dealers—
by
205.8
,.
of Sept. 27—
as
543,012
-
sales
of
v—
97.4
■K
.
736,248
—Nov. 22
i—t-w,——Nov. 22
—
Customers' other sales
.
,
Nov. 22
Customers' short sales—
Dollar value
119
'
COM-
146
29,748
sales——— Nov. 22.
*
r
establishments
Sept.
OF
September—
858,850
——
—
sales——_—
shares—Total
of
of
Nov. 22
short sales
Customers'
'■*
—Nov. 22
DEPT.
—
BALES:
month
Nov. 22
Customers'
-
-
*
25,139
Nov. 22
-
—
In consuming
Stocks
—————————Nov. 22
Nov. 22
shares—
Dollar
160.6
187.0
208.9
166.3
:
—
Miscellaneous
Cotton
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales——
141.1
190.4
212.8
—;
Linters—Consumed
STOCK
—
—
345.8
99.0
refrigerators
electricity
;
.
In
COMMISSION:
purchases)
(customers'
orders
Number
N." Y.
ON
EXCHANGE
SECURITIES
—
by dealers
Odd-lot sales
346.6
80
457,365
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
?
210.8
'
202.3
143.0
and
Lint—Consumed
——
207.9
243.4
227.6
192,085
Nov. 29
4ov. 29
INDEX—
PRICE
REPORTER
DRUG
.
148.4
Fuel, electricity and
MERCE —RUNNING
PAINT
OIL,
i'
,
221.4
\
140.7
Ice
NATIONAL
189.4
281.0
216.7
*
190.7
Rent
Other
229.2
-
202.1
Sugar and sweets—
Clothing
Gas
187.4
■<
278.5
.
346.3
*
Industrials
...
230.6
—
vegetables
Beverages
2.99
Dec.
.-L——--—
INDEX
FAMILIES
foods
All
3.31
3.51
PRICE
items
3.05
9
-
1935-39=100—Adjusted
2.99
9
credit
INCOME
3.24
Dec.
-
Railroad Group
credit
payment
CONSUMER
'2.70
3.22
3.00
J
Dec.
:
—-
!
accounts
Service
'
Baa
.
—
credit
Charge
113.31
-——————Dec.
—Dec.
—
credit
Noninstalment
108.52
112.37
—.
*
Aa
103.47
106.21
-—Dec.
.1
—
credit
RE¬
short-term
30:
15,595
l
Bonds
corporate
Aaa
103.97
AVERAGES:
DAILY
YIELD
Government
103.97
9
—
;
Group
BOND
Average
$22,311
FEDERAL
Oct.
■
97.09
106.92
————
.
Utilities
97.47
——
Group
Industrials
Dec.
———
—
Railroad
of
as
108.70
9
109.79
113.70
-Dec.
,V.
9
THE
Estimated
—
millions
Single
A
MOODY'S
632,900
4,675,000
credit
Sale
PRICES DAILY AVERAGES:
Aa
Public
*396,400
Other
19.500c
3
.
at
corporate
Aaa
46,870,000
*3,705,000
*51,797,000
4,113,000
tons)
Automobile
27.425c
121.125c
Dec.
Dec.
Dec.
.
at
Government
Average
;
34.675c
121.500c
3
34.725c
121.375c
14.000c
34.950c
Dec.
at
at
Louis)
MOODY'S BOND
24.200c
3
OF
SYSTEM
in
Instalment
24.200c
Dec.
—Dec.
refinery at
Export refinery at
S.
32,480,000
(net tons)
(net
OUTSTANDING—BOARD
GOVERNORS
Total consumer
Domestic
U.
66,293
tons.)—
CREDIT
SERVE
Electrolytic copper—
Straits
42,791
(tons)
MINES)—Month
lignite
(net
Credit
'
23,084
37,533
319,400
period
OF
anthracite
Beehive coke
$42.00
73,583
94,541
October:
Bituminous
$52.72
Dec.
79,432
78,129
(tons)
end
at
76,019
84,548
90,581
pounds)
COMPOSITE PRICES:
Finished
*
Dec.
(tons of
pounds)
Shipments
Pennsylvania
BRADSTREET, INC
AGE
export
(barrels)
'
IRON
and
7,783,000
October:
2,000
of
(in 000 kwh.)
(barrels)
(barrels)
output
(barrels)
INSTITUTE:
(COMMERCIAL
output
(barrels)
products
Unfilled
INDEX—FEDERAL RESERVE
SALES
SYSTEM—1947-49
,
(tons)
(tons)
DEPARTMENT
gasoline
oil imports
Increase
Slab
MINES):
OF
oil
83,297,000
Dec.
crude
output
Crude
$324,110,000
4
.
construction
State
Benzol
(barrels of 42 gal¬
each)
Indicated
Dec.
Dec.
construction
construction
Public
August:
lons
Refined
Dec.
S.
Private
INSTITUTE—Month
Total domestic production
Natural
670,167
NEWS-RECORD:
Total
of
PETROLEUM
Domestic
freight received from connections
CIVIL
AMERICAN
RAILROADS:
AMERICAN
Revenue
«
at
at
oil
fuel
(bbls.)
gasoline
figure.
tons)—
,
*
'
tons)
month
•
(short
tons)
..
2.307%
'
.
'
"
.
14,633
17,613
*13,378
17,408
1° ""li
18,300
21,280
20.310
*
.
15.705
^
The Commercial and Financial Chronicle
30
Thursday, December 11, 1952
...
(2252)
throughout off the top and any new buy0
hein? repeated all
Deing reDeated an
Tomorrow's
.1
•
„
lurtner
miliar
Whyle
"New
xms is Demg wi uk
,
market
oils
the
then
back, and so
thosye
with
any
of the
They are preseniea as
iney are presented as
of the aut or on y.]
ose
within
-
past
well
I'm
aieath.
has
too
aware
that
ders
well
today.
in
rising
are
fW
the
building
point whether
i
ii
the
been
a
is
entirely
reason
a
apart
might take with respect to
requirements.
serve
-lu
the
optimistic.
are
papers
heads
hirrw
"qtnpk Prirps
nr
,,CK
TT'i
New
Hits
"Market
as
Highs
.
daily
gin in the account consists of his
capital
funds.
the account
in the
com-
last week.
i
™
if
,n„rc0
Ul course
be
*
*
*
fn
bonnprr
II you
are
The securities in
his earning assets.
World tio of capital funds to earning asthe eounb-v
wSTbout
l
tne country was about 1
would have
order
tice
that
they
interested
not
are
w|th
perhaps
one
two
or
turn-
Loans which
at most.
overs,
can-
the
public
first
as
matter
a
banking and, second
g00Q
to
win
the
war
protracted trend of interest rates let that margin position
been brought about by the low today's level.
activities
of
these
institutions
The next question at
Happen 10
are
be
a
funds, will be
to"^
to b.
the
absolutely
essential
*
the
collapse
of
commodity
the
is a
g0ld
which had
monetized
been
This is the distortion from which
is
fact
sad
for
that
«»vprv Qfook which is at a new
every stocK wnicn is> at a new
in
can
the
pos-
This situation is not
likely to change for
some
month3
L. W. Simonds, Director
Leonard Spangenberg President
an-
as
to how
we
now
are
annKf
nn
that
it
a
director. United Stores
and
laminating response. It
"All stores, McCrory Stores Corpora-
was,
to
is
in The question at
not
therefore,
issue,
of
dearth
a
supply
but
a
drop beis
to prove a
of
& Co., Boston, since 1944, prior to
which for 15
brokerage
Conn.
never
a
few
tributed at lower prices and higher
longer
of
issues
new
now
mu.
in
1953
unless
all
visible should fail.
under the
Babson
If, for example,
wise, necessary or
— * —-
seem
,
hpinpri
mem-
Institute of Business Ad-
ministration,
p.
A
.
,,
c
--
Davies Adds to otaii
(Special to The Financial Chronicle)
SAN FRANCISCO
Califs
Howard T. Snedicor and William
R. Whitehead
are
connected
now
with Davies & Co., 425 Montgom-
Street, members of the New
ery
York
and
viously
domination
ing possibilities.
it would
Hartford,
ber of the finance committee of
than
basis points too high, in the esti-
no
in
trustee and
a
Thp
Francisco
San
with
Snedicor
Wilson
.
The demand for securities result-
he was in the
years
business
He is
This ures and will have to be dis- Exchanges. Mr.
up.
situation which almost
charge of the brokerage divi-
a
more
that they arate issues, all priced only
so great
in
sion of Brown Brothers Harriman
trend relikely
transitory phenomenon
This is
versal.
issue
picture
apparent
pany, operating over 400 stores in
38 States. Mr. Simonds has been
has occurred previously and which yields.
Higgins.
is highly improbable at present.
Interestingly enough, the activiNormally, the flow of funds to the ties of the Open Market Committhrift institutions is calculable, tee of the Federal Reserve Board,
Globus
suffering some in- signs
escapable consequences, although
is
Masses
t!6 ma''k,et ca" .possib,^ take" tion and McLellan Stores Com-
about five us win
under it. cheap money at the bank"means
If you've taken the trouble to cheap money at thebakeshop and crease their deposits by about $1%
read an analysis issued last °ur P™?™1 5« cent dollar is also billlon this year> may dupUcate
week bv the New York Stock jFaceabl.® to the bond pncc infla- that performance in 1953, or even
T^armP 1™ Iv have no° the middle and late 30s*
exceed it. The corporate pension
Exchange, you may have no t-resentouuookrorBonarriccs funds should increase their assets
Outlook for Bond Prices
Heed a statement which
there
high
he
short- 0f United Stores Corporation,
back, the headlines will into the banking system in 1934 ing from this increase has been of the Treasury Department, have
poor substitute.
and which produced the greatest met and more than met by new produced a situation or prospect
*
*
bond P"ce 1?flatl?n of all timp issues. There will be no dearth which is fraught with far-reach*
The
is
In
to bid against each
H?e P°?Jwar liquidation in 1919, thereby force the price
o
nigns out l»oi ana iur-
v
funds
obligations
sibly obtain.
der to make r00m in the banks for
equal force to the cheap money other in the open market for out- mation of the institutional buyers,
of 1900, the money panic of 1907, standing issues of
bonds
and have been almost complete fail-
mav
ther
buyer
of
whether the tremendous inflow of and the tipoff to that development
funds to the thrift institutions of lies in the obvious fact that withthe country, including the pension in the past two weeks three sep-
with will be forced
applied
This
part.
a
a
f
his
employing
is
shortest
in or-
escape
stock which isn't credit pyramid in 1922, the secumaking these new highs, in rity credit pyramid in 1929 to
fuot
Bp nnHpr not onlv
1930 and tbe fuhle effort of the
inco
u*
u
u
iop;i
A fn/
commercial banks to invest the
lyoz
long of
security
municipal
the
broker. Historically and until the much this funding of bank loans Corp owns a controlling interest
outbreak of World War II, the ra- might amount to elicited an il- in two of the largest variety chain
Such rather than by the activities of
New tbe d11^ institutions, as they are
Makp commonly
designated, and of
,
which the Mutual Savings Banks
plentiful
were
parlous
not be pr0mptly repaid must be to come.
mar- funded by the saie 0f securities to
ning a margin account. The
brought the rental value of risk-
•
financial sections of the
a
.The commercial banker is run-
Intprest
^VenVjf contfnuel
this trend, it continued
wlthout interruption,
In
in
jt
headlines
remain in
by the mathematical calculations
j
Even
will probably
S^lndlhis^entom^tS
the consequences of the dearth of demand and the only
fact all the
statistical data less credit to something just over worst of all possible evils—-which thing to watch is the ebb and flow
that I read almost dailv can 3% by 195°*
would have been to lose h—the 0f the new issue market in respect
Ko ^nctrnprl^ as-filpl for a rnn" is interesting to note that commercial bankers allowed this to quantity. Funds flow into the
toe construed, as I
every
time the trend has been ratio to get down as low as 1 to thrift institutions in a pretty even
tinuation OI a bull market, or interrupted it has been through 13. It is now about 1 to 11 and stream. The new issue market is
in any case an advancing mar- the intervention of the commer- nothing short of a national emer- very spotty and for the past 60
cial banks.
In fact, it may be gency, such as another war, would days there has been a dearth of
*
*
*
stated that every pronounced or possibly induce these bankers to sucb issues, which has created the
in
three-quarters
about
is
The market for the tax-exempts
they
Commercial Loans
We now return to the problem much in doubt at the moment that
reserve
past 70 years there
broad, slow, secular
the
2?s and
Doom
ascendancy.
its
this
long.
in- 5% hi the Pre- and Post;
hnnm
huilHin<*
fho
that
m0Qt
Q
the commercial bankers
dustries, hard as well as soft,
is still
.g
from any action the Federal Re- jn anything but short obligations,
credit from approximately 6% in
the'80s and the Gay'90s through
or-
many
recognized and acted
be
u
Xm
business
new
its
and
is altogether too real
which has been interrupted rom cash. The money he owes his de- term loans that will be coming nounces the election of Laurence
tim?
tlme but which has car- positors is the same item as the along next year. Inquiry among w. Simonds of Newton Centre,
ned the rental value of nskless money the speculator owes to
he
doesn't
aoesnt
underneath"
unaerneatn
it
it
apply
this development
of
consequence
the sale of new securities and averted.
it
bave obtained in this fashion.
t
trend toward lower interest rates, He does not need margin against
the phrase "little to substan-
^ifciate
tiate
the
at
Qver
that
aware
the
of
securities,on balance,rather mercial banks. These institutions either sitting on his cash and
than buyers and the reason for bave put their customers on no- awaiting further developments or
Lo,,g"Tcrm Rates ot Interesl
£'"'d
little to substantiate it under-
it ity
will need to raise about $8 billion pated
tinue to mount, they will be sob" of commercial loans
f
characterized bv a
cnaiacLeiizea uy a
Nothing
be predicted with abso-
ers of
than
bubbling on top with
find
billion out of earnings after taxes, not to
the
0f
was
conceivably
mjgb{;
^
is
points.
5
almost
sort can
although this is debatable. They upon. Any danger clearly antici-
gORd PllCC FlOSpeClS
internal
of
sign
weakness
weaKness,
violent
such
behavior
wheel
the
often
.
,
the
A
■
H
might
will be able to obtain much of this
J
1
de-
them
money by the sale of equities. In state until the new tax schedules
recent years they have borrowed are announced. These yields are
about ten times as much as they influenced not only by quality but
be well to note that
approximately 40 such
curves which have persisted since
the
turn
of the century long
.
i
enough to be charted, half of them
Wheel- bave been higher at the short end
#
*
j*
,
r
J
one
market
continued.
and
coincide
at
Cnntinned from first vaqe
another S eps
impression
the
advancing
an
As
etc
group steps out
In
l
milling about. First
rails, then the motors,
is
it is the
*»wi
thin
necessarily
Chronicle
chronicle,
^as ^een
cream
e
Ume
that
however,,
nuwcvc
me
me,
provide
might
outstanding bonds of
programs, loss in tne
accelerated
amount
possible to plow back another $8
nsa.n9
It
headlines
Highs"
to
to
this
they
up
L
plete their expansion
preciation
for potential with as much as $12 billion and lute confidence but the probabil-
£-a.
thic ic hpintf writtpn the
Ac
of
go
may
averages
ments and to continue or com- that would represent a market
Qf
profits.
sppm«?
seems
By WALTER WHYTE =
55
fa-
again and give rise to more
Says—
risks
more
usually inherent in the
is
any buying or selling
thp
fopf
Tn
_
rise.
than
rule out
doesn't
This
P
*
*
*
Markets
Walter
nr*wnt<5
nere presents more
the market.
,
Johnson
Joins Dreyfus
ctnHr
nf
firm
Drevfus & Co
York Citv
&
,
.
_
.
Stock
was pre-
5n Rroadwav
Npw
announced that Morton
qi0uuL"Xi
a
/i^ompA'
hrotpr
r'
Vnr
vos>rc
ror ine pasi Ilve years' Mn
are
others that
are
way
by about
biUion<
The
state
uaUonTn whVch thT20-year
should sell on
a
issues
2.75 basis, the 10-
issues on a 2.50, the 5-year
issues on a 2.35, the 2-year issues
year
on a 2V4 and the 1-year issues on
a 2y8, with the Bills on a 2% basis.
If you will take a look at the
bee^actWe^n th^sicurife bust3
nes^foriT
securmes busi
ness tor. 7 years'
Irwin L. Fife Opens
Q
ahoma
r t t v
nna
OKLAHOMA CITY, Okla. —
cuTitief1 hn<Jfnp?/^™ ^ff^
number of stocks
S! and Federal pension funds could yields now current on these very
selling consider- pr^nt o^
II^VdeTnfS tolky selling
ew^s the
He
ably below the "postwar high The remarks up to this point have ?heSesou?clsshouldTesubstaT points of exfetly those yields, all
f°r
and only moderately above been prefatory and for the purtidily less than $10 billion. Time the way down the line. This means,
arrett Herrxck & Co., Inc.
the low for the same period." p?se y establishing a framework deposits jn the commercial banks quite simply, that the Government
pointed out
which
a
Petroleum^^iZg
were
*
*
The
assumption, I
ic that these
ISinattnese
ket
*
issues
which
*
.
,
From where
I
Sit
there
little attractive about the
is
cur„
.
<nw
195o
make
that
...
.
automobile
it
up.
,
,
moaeis
motor
in
"think
pears
:
u
prices.
the rate of
new
family
formation is the primary deterhome
minant
in
than
as
a
labor
buyer
construction,
or
material
there's
.
a
rrL
ac
i\S
a
a
or
a
seller is
put
associations
will
increase
With Waddell & Reed
in
® KCea
J**'HfLL?' Ca2lf;~Ed"*
)Ym p*,.CaJ®y bas been added to
Ioiq
sonable probability.
S T
Heed, Inc.,
wiisnire Boulevard.
wik-
With F
7
/f,
this year by
Its impact, however, on the corabout $3 billion, but they almost porate bond market would be ternever buy corporate bonds.
Their rific. Corporate bonds due in 1982
mercial
banker is presently pre-
self-liquidating credit
"
F
Math#>w-
mdinews
fairly substantial supply, and they
to business. The loans in the com- might conceivably enter the
merciat hanks of the country ag- ket for $500 million worth of
gregate
about
$62
billion, which
ernments, but
0°£f theTtoMearning
assete
no more.
yield on Government bonds due
in 1972. The discrepancy between
Gov- Governments and corporates is
mar-
So much
present.dfsire
holdings.
In fact,
if
loans
con-
about what it should be, but the
basis of comparison is completely
haya to raise m f3. accord- ^^
their expressed mtentions,
about $28 billion to
cover
replace-
would.,
a
\X7;i.i-
U-n-.L.j
T.JL
«
"un oannarora laioou
(Special to the financial chronicle)
LOS ANGELES, Calif.—William
Pyea[d Jr. have been added to the staff
move
3.15 to
o
" Lfin^apnea'r- F' Marsha11 and R°ger M" Uptoa>
The corporations of the county
spurt in oil They have no
or wlR
na+tarn
^n^en^0n
increase their security m°
Ane pa^twrn lb
been
the Principal determinant in cur- their share capital
piece" about oils ap- is about equal to their total hold- for demand.
Stock prices.
market has
loan
as
short-term
in a widely read pub-
SLn,
.
i
sxock
bond
financial chronicle)
BOSTON, Mass.—Guy M. Gray,
As occupied with his primary pur- primary investments are mort- have been priced consistently at
is now with Edward E.
.
Pose in life, which is to supply gages, which now promise to be in about 40 basis points above the Mathews Co., 53 State Street.
nit
the showrooms there's a spurt
.
^jid
market
Just
4
rent interest trends and the com-
,
rent market and many ot the
stocks
same
$25 biUion that they
.n 1952
but these deposits carry relatively
readiness for a long-term 3% obligation, without any disturbance
low rates bf interest and are re- to the other Government issues
invested in relatively short obli- presently outstanding and there
gations so they do not serve as a are so many reasons why such a
competitive factor in the long move would be desirable that it
bond market. The savings and could be characterized as a rea-
rather
attractive.
*
could increase again by the
costs, so the appearance of the
commercial banker in the bond
suppose,
"behind-the-marDen
i
are
discussion
to follow.
is
wS
a
almost- at
once
from
°f Hannaford & Talbot, 634 South
3.40 yield basis—and Spring Street.
,
Volume 176
Number 5176
.
.
.
The Commercial and Financial Chronicle
(2253)
Continued from page 3
dependent
imports for
upon
sub¬
a
stantial part of our requirements.
This analysis of our market for
We Mas! End Handouts
minerals already is imposing. But
when the special Paley Commis¬
sion
Of United States Dollars!
made
its
forecast of
quirements in
of
on
really
citing proportions for
a
the
effects
year; now they top $10 billion.
Of all our imports last
year, 55%
entered this country free of duty.
of
The
gently needed.
remaining
tariff
hurdle
12%%, with
45%
jumped
averaging
a
specific
whole
tariffs
our
industries
American
With
only
of
and
on
on
forecasts always need to be taken
grain of salt, but according
to the Paley report, even without
in
further
1943
33%.
was
It is impossible to
how far
say
our
imports would expand if du¬
ties
effects
We
Mr.
of
European
Economic
which reads
Cooperation,
follows: "However
as
much
annually
readily find, when
increase
is
ports
to
in
if
too
should
we
find
otherwise,
and
businesses
tunity to determine afresh wheth¬
they are willing to support ex¬
isting tariffs in the light of today's
essential
imports. One of the
responsibilities of Eu¬
rope is to produce at competitive
prices the goods which the rest of
essential
the world needs."
Certainly no responsible manu¬
facturer is going to propose that
the
United
trade
ther
States
basis,
drastic
without
free
go
cuts
on
we
that
or
make fur¬
in
a
tariffs
our
full examination of the
a
possibly dangerous effects on lo¬
producers of competitive goods
cal
and without
estimate of the
some
beneficial
effects
economies.
No
on
overseas
figures are avail¬
to how much of our
able
today as
dutiable
imports are subject to
tariffs exceeding 100%, 75%, 50%
or
25%, for example. Without such
figures no intelligent estimates
can
and
Study
I
I would, therefore, like to
pose that we undertake a
thorough
tariffs from
statistical study of our
the point of view of
remind
make
the
affected
the
team
that
this
study, however,
that what we are searching for is
a
rational tariff policy and
not
one which
blindly seeks the elim¬
ination
labor
of
security
of
tariffs.
and
Our
of
allies
high
national
there
and
question
no
either.
Our
our
responsible for
are
tariffs
our
be
all
standards
some
should
These
which
the
are
to
seem
Our
national
the
defenses
friends
opportunities
their
In
sales
this
the
us
against
the
rising tide of Communist ag¬
gression.
before
of
know
we
the
re¬
tariff
our
study I would
another
far
more
that
United
to
boost
United
have
we
really im¬
States.
made
even
the
are
survey for them.
Tariffs
minor item on most of these
a
commodities
almost
now;
surely
will want to reduce them fur¬
we
ther
as
home
our
supplies
near
exhaustion.
The
second
in
which
de¬
don't
smelt it
And yet dozens of us in this
here.
we
today
room
even
in
nickel
use
products we manufacture.
import any more if
wre
the
tariff
on
would
nickel?
increase
Would
we
I
the
if
and
would
we
big item from
our
have removed
our
tariff schedule.
No nation in this world
ford better than
one
can
af¬
the dozens of
we
gross
trade
is
relations
overseas
on
value
of
sume.
In the field of minerals and
we now
of
the
all
material^ we
import nearly
we
con¬
one-
rich
oil
fields
we
are
now
importer of petroleum. Dwin¬
dling domestic supplies of iron ore
will
by 1955 be supplemented by
significant imports from Canada
Venezuela.
Though
as
re¬
luxury items made abroad.
Eu¬ cently as 1938 we exported copper,
rope is filled with them, and Eu¬ today we import 7%
of4he world
rope—more than any other part supply instead of exporting 17%
of the world—needs to
There is
sell to
security angle
no
on
us.
this
of
it.
More
chrome
than
is
ore
sumed
that
private
was
risk
as¬
capital
domestically
with
protecting
these
high
duties?
A
balt,
and
come
from
Indonesia,
word
of
manufacturers
caution
may
to
98%
of
bought
industrial
our
abroad,
Bolivia send
be
of
in¬
tin.
diamonds
the
Belgian Congo.
Malaya, Nigeria, and
foreign
well
our
us
The
entire supply
Caribbean
provides
jected here. They must constantly us with 65% of our bauxite for
keep in mind that imported goods the burgeoning aluminum indus¬
*
per se no longer enjoy the pref¬ try.
erence
ed
they
States.
ducers
are
had in the Unit¬
Hence, if foreign pro¬
to gain access to any
once
Few
United
of
us.,
States
realize
today
that
can
the
meet its
entire local demand for only two
America, they must of¬ industrial minerals (except coal).
fer goods that in design and price They are molybdenum and
mag¬
are
adapted to the needs of the nesium. For 36 materials we are
markets in
American
consumer
truly
respect.
competitive
are
and
in
which
every
now
wholly dependent
sources.
Even
in
such
on
foreign
staples
as
lead, zinc, cadmium and bismuth,
Two developments demonstrate our consumption has so far out¬
dramatically why the new study paced production that we are now
their
is
requirements.
of the surest ways of
one
ing
other nations
selves,
of
to
went abroad
There
are
in the 19th Century.
number
a
of
reasons
why this has not happened.
is
the
our
unprecedented
own
to absorb new
Another is the fear that
economy
capital.
the
One
capacity of
cold
will
war
become
hot
a
Others^are the inconvertibil¬
one.
are going to be with
u$>.
long time. They are the in¬
a
evitable
places the responsibility for
on us.
It
help¬
help them¬
the sending
responsibility
the
of
Military aid will
go on as long
Stalin threatens aggressive ex¬
es
pansion.
Today's
pattern
may
shift but for the immediate future
it is likely to follow
pretty much
though
along the lines of our present op¬
capital abroad will erations.
But
our
non-military
increase the necessity economic assistance program must
even
American
gradually
of
our
accepting
imports in
more
order to pay a return on such in¬
vestments.
Almost
the
is
of
investment
willingness
our
"know-how"
our
first
with
modern
it.
When
dyestuffs
plant
near
Bombay, it invested rela¬
tively little in the project. Indians
provided
the
bulk
themselves.
staff
train
of
What
from America
the
capital
they
wanted
modern
plant,
experts to start it and
of
local
was a
engineers, and
corporation of
a
con¬
techniques
new
as
they became available.
When
of
one
banks
cattle
largest Wall
our
introduced
loans
the
the
to
idea
capital-
pinched farmers of Panama it
was
considered locally to be a radical
experiment
United
to
which
States
do.
of
rich
a
could
a
competing vigorously for
are
must double in the next 20
years,
where
More
the market.
can
get what
we
vital:
much
as
can
as
we
so
need?
we
possibly
get
have of spe¬
must
we
cific items in
short
a
time?
Obviously the whole direction
our
foreign economic effort
must be changed. Instead of bol¬
stering a wobbly foreign govern¬
of
ment
here today, and
sending a
shipload of wheat to another to-
'
morrow,
we
rjeed to
think
in"
terms of what these
people might
supply us that we must have.
Then, with the dollars they earn
from the sale, they can
buy what
they need. No such constructive
planning can possibly be achieved
so
long as our foreign economic
is administered,
program
I
therefore, that
urge,
be
agency
our
in
created
foreign
it is
as
today, through more than
of Washington agencies:
afford
result of the
experiment, local
taken up the program
as
the
banks have
and
only
bank
Today,
success
cial handouts must give way
very
to a constructive, long-term
soon
than program fitted to today's changed
capital conditions. "Trade, not aid" is the
to send key to the future. If our imports
the American Cyanamid Company
built for an Indian industrialist
the
change fast. The period of finan¬
important
more
export
itself
of
private European capital
as
a
score
single
a
which
economic
all
policy
is
coordinated and reoriented to this
new
concept—a
single agency to
which
all of us in business can
currencies, fear of na¬
When Sears Roebuck extended turn when we need data
about
tionalization, local discrimination
their chain store business south overseas plans and
against foreign capital, and the
conditions, one
of the Rio Grande they set out to
unstable position of many foreign
agency to which we can turn for
ity
of
governments.
stock
v
Foreign Investment Becoming
a
"Must"
little
local
But
luck
bags—knew
quantity
the
metropolitan
though
eral
to
how
handful
turers
have
in
Mexico
been
States
local
of
and
producing
to
trained
Gen¬
economic
who
United
the
now
are
expanding
flow of well-made, mass-produced
merchandise. Sears has introduced
than
more
chain
the
assume
responsibility of the Pentagon in
the military field, but it should
pride
manufac¬
and
plan¬
licate action and expense.
We in the NAM have a double
stake in seeing that our
gradually
a
order
This agency would not
Today,
Brazil
and
sent
in
own
our
stand¬ cooperate with it to eliminate dup¬
centers.
satisfied,
point with
can
need
we
they
from
far
Wood
a
quality
facts
ning for private foreign business.
produce. in
to
the
local
few
intelligently to do
how to test style trends in
or
all of
very
alligator hand¬
or
fixed
to
had
whether
—
made furniture
ards
merchandise
they
because
manufacturers
need in the next 20 years are scat¬
far
much
as
possible.
as
store
foreign
soundly
at
policy
is
revamped
and
promptly. Exports
levels are essential to
today's
of us if we are to keep our
industries functioning at economic
levels. But without
growing im¬
many
ports these levels cannot be maintained—unless we are willing to
Africa, Latin America, and Asia.
chandising to Latin America; they
indefinitely subsidizing
exports through grants in aid
These vital supplies will be most
have helped to establish efficient,
high taxes.
beyond these
areas—in
mer¬
small industries which will
if
tually become the backbone of
United
and
States
know-how
local
interests
job
on a
To
private
join
capital
forces with
do
to
overseas
even¬
a
sound local economy.
the
In the current fiscal
year
about
partnership basis.
$350,000,000 has been appropriated
this development we for Point Four aid in underde¬
need cooperation from veloped areas. More than 900 tech¬
urgently
Government
in the form of nicians are in the field teaching
capital going abroad poverty-stricken farmers in 40
on
basic
development projects. countries how to get bigger crops
Even more importantly we need as a result of
deep plowing with
the fullest cooperation both from
steel-tipped plows; how to boost
Washington and from the govern¬ cultivated acreage with modern
our
tax relief for
ments of other countries to create
inviting
more
a
invest¬
how
tractors;
streams and
to
create
climate—one
freed of crip¬
tems; and how to
controls, of dis¬ strain of their stock
criminatory
legislation
against of their seed.
foreign citizens and enterprises,
ment
exchange
I
unreasonable restrictions
ings
and
tate
and
earn¬
profits,
attempts to dic¬
managerial policies.
our
part
sponsibility
countries
about
of
that
groundless.
far
ment
is
proving
their
the
to
re¬
other
apprehension
We must demonstrate
foreign investment is
different
exploitative
half
there
admitting foreign capital is
that modern
the
on
of
uninformed
For
a
transfer
the
century
of
millions
during
our
in
our
institution
adventures
ago.
own
The
from
of
a
develop¬
country—with
investment
formative
capital
years
com¬
am
not
sure
small
dam
irrigation
sys¬
improve
the
or
the
quality
,how
effect
ment
most
me
of this
that the long-term
$350,000,000 invest¬
to
creeping communism. If at the
same
time private business sup¬
vised
drive
"show-how"
Roebuck and
have
that
need
for
responsibility to
this
to
our
nation
country
makes
raw
no
be
longer
will
our¬
to
see
adequate
materials
we
producing
at
home.
On
sound
our
problems
tual
now
handling of these
will rest the
security of
the long-term
even¬
our
country and
strength of Ameri¬
industry.
can
Yuma Inv. Co. Formed
YUMA,
Ariz.
Yuma
Invest¬
Company has been
ment
formed
—
with offices in the
in
a
Flamingo Hotel
securities business.
With Hamilton
Manage't
(Special to The Financial Chronicle)
DENVER,
Bakula
has
Hamilton
Colo.—Walter
joined
the
Management
M.
staff
of
Corpora¬
tion, 445 Grant Street.
government-superwith
kind
the
typified
other of
by
our
of
Sears
private
industries,
we
shall
gradually
a foreign assistance program
as
a
and
provision for the
Inv.
beneficial to
expanded
us
and
markets
Service
Corp. Adds
(Special to The Financial Chronicle)
DENVER. Colo.—Gene E.
skie
build
that is
and!
effectively
is going to be one of our
important counter measures
plements this
our
Looking farther into the future
we
to engage
this job is being done but it seems
plausible to
go on
selves
speed
pling
we
meet
for
world's No. 1 power.
our
it
Assistance
cap¬
a
war
Economic
built
never
doing the job squarely
much
of
are
This
Street
overseas
What
to
would flow from the United States
to develop the world's resources
business, but duties are very high largely from Turkey, Cuba, Africa,
—quite often in the neighborhood and the Philippines. Uranium, co¬
100%.
ital
a
net
and
have
speedily and efficiently produced
use.
The whole world is beginning to
feel the effect of this shift. Despite
our
America
adequate supplies of local
up
Imme¬
diately after the
tered
metals
Latin
Africa, Asia, and
once.
tinuing contract for technical ad¬
foreign vice to
keep the plant operating
sound basis
efficiently and to assure the in¬
investment.
effectively to put
are
opening to alert
suppliers.
importers of 9% of the
killed" third
doubt
purchases
very much on this score alone, but
we
would be paying less for it
we
net
Foreign
development jobs that need to get problems
started at
we
Despite these formidable ob¬
Raw Materials Problem
reducing or
stacles, it is generally recognized
Gradually over the last twenty now that foreign investment is
removing them completely when
they are protecting no domestic years the United States has begun becoming a "must," both for the
industry or where our own to run out of adequate supplies United
States
and
for
foreign
of some raw materials to feed our¬
shrinking
reserves
of
strategic
countries, if we are to keep the
From
materials make it no longer wise selves and our industries.
Free World on a functioning basis.
1900
to
1920
the
United
States
to maintain a barrier to soaring
Further, this flow of investment
was
a
net exporter of all mate¬
demands for imports.
capital cannot follow the narrow
The
research, I warn you, is rials combined. The surplus going
channels of the last few years—
going to surprise a good many of abroad amounted to nearly 15% of
largely to the Middle East oil
us.
But now,
Why, for instance, is there our total production.
fields and to Canada.
The raw
a cent-and-a-half per pound duty
despite the fact we have vastly
materials
we
shall
desperately
on nickel?
We mine none in this increased our production, we are
country;
foreign investment.
Problems Will Continue
Europe was too impoverished
by the war to have adequate sup¬
There is no question today but
plies of local capital for the big that foreign economic assistance
a
field
for sales to the
avenue
and our
security as it is to our lessbest, fortunate overseas friends.
of the importance
demonstration
of
our
market
States is
overseas
their
the
to
facts
offer
to
portant
Free
are
main bulwark for all of
Even
predicted
me
overseas
endangering
in
World would gain nothing if we
jeopardized either of these prin¬
ciples in order to buy from them.
promising
pro¬
for
present
cisive action must be taken if
would
may
sults
Needed
today's changed do¬
demand
suggest
Tariff
A
of
imports.
be made of the actual effects
imports of tariff reductions.
on
taxes
example,
our
nickel, triple the in¬
er
mestic
of
double
ing
from Britain,
France
Switzerland—should be the
100%.
that
suppliers.
for
means,
shall
imports
we
themselves should have the oppor¬
all
This
we
flow of cobalt, and boost our de¬
mand for chrome ore by at least
any
our
taxpayers
European exports to the
dollar area might be
expanded,
they would not suffice to finance
that
these
great difference to
the
90%.
vast
particular im¬
limited to make a
consume
we
shall need to up our purchases
by
$5
a
all of the data at hand,
ability
But
General
collected
may
have
our
Marjolin, Secretary
the Organization for
share of
bill—by reducing still
the
relatively
small
through tariffs?
on imports of our existing
tariffs is exaggerated by our Eu¬
ropean friends. This view is con¬
firmed by a recent statement of
Robert
his
us
in 1950, and for minerals alone
tax
amount
were
completely eliminated. I
personally feel that the deterrent
each of
billion
a
all-out war, we will be using 53%
more of all materials than we did
total of about $600,- about $5 billion a year over the
000,000 collected in import duties. last few years, would it be pos¬
The extent to which tariffs have sible to save this amount—and thus
save
ex¬
eager
with
a
already been cut is indicated by
the fact that the average
duty paid
any
Long-range
ur¬
foreign aid averaging
our
supplier.
our
is
economy
overseas
re¬
1975, the potential
market took
our
our
»
now
and
Jonathan W.
connected
our
Service
and
Street..
with
Szyn-
Wilson
are
Investment
Corporation, 444 Sherman
'
r
38
Financial Chronicle
The Commercial and
(2254)
t J
•
,
■■
■
...
Thursday, December 11,
1'
* INDICATES
Now in
Securities
American
*'
stock
record
shares
held; rights to expire
Price
Dec. 16.
on
—
December
$11.50
Southern
share.
Proceeds—To increase working capital. Un¬
derwriters—American
Securities
Corp. and Hirsch &
per
Ry.-N'ew Orleans &
Northeastern
(Bids
8
filed
100,000
public offering.
shares of
>
stock
common
New England
(par $1).
1
be
supplied by amendment. Proceeds—To
part of purchase price of assets being acquired from
pay
Noma Electric
Co.-___Com.
Telephone & Telegraph
Offering
underwriting)
stockholders—no
to
Preferred
Texas Telephone Co
Beissner & Co.)
(Moroney,
Corp. Underwriter—Putnam & Co., Hart¬
December
★ Arcol Oil Co., Denver, Colo.
Nov. 26 (letter of notification)
Standard
stock. Price—At par ($1 per share). Proceeds—To pur¬
chase oil and gas leases and for working capital. Office
—714 E. & C. BJdg., Denver, Colo. Underwriter—Carroll,
Co.)
&
Common
Sulphur Co
(Gearhart & Otis, Inc. and F. L. Rossmann & Co.)
Weld & Co.)
(White,
December
Nov. 24
Lodge Oil Corp., Dallas, Tex.
(letter of notification)
Consolidated
per
10,500 shares of common
(par $1). Price—At market (approximately $2.87xk
share). Proceeds—To the Tioga Petroleum Corp. of
Erie
Meter Systems,
Stores
Franklin
(Merrill
Inc.)
Debentures
Inc
(Smith
Dallas. Office—301 Mercantile Commerce Bldg., Dallas 1,
Tex. Underwriter—None.
Root 1
&
filed
28
Bristol
Oils
Common
Corp.__
Lynch, Pierce, Fenner & Beane)
December
Ltd., Toronto, Canada
common
Price—Approximately 64.48 cents
Diana
stock (par $1).
share.
To
Fluor
acquire leases
writer—None. To be named by amendment.
investigation of potential oil areas and for general
corporate purposes.
Underwriter—Gordon Graves & Co.,
(12/16)
stock (par 50
cents). Price—To be supplied by amendment. Proceeds—j
To purchase vacuum equipment business from Kodak's:
Distillation Products Industries. Underwriter—Blyth &
Engineering Co.
225,000 shares of common
filed
25
Nov.
Co., San Francisco and New
★
Corp., Ltd._~_
Nov. 24 (letter of notification) 20,000 shares of common
stock (par $5) to be offered first for subscription
by
stockholders of record
shares
new
Dec.
15.
for
each
five
Dec. 2
shares held;
Commonwealth
rights to expire
Price—To
Garrett
Proceeds—For working capital.
Office—21 East
Street, New York, N. Y. Underwriter—None.
New
(Bids
Byrd Oil Corp., Dallas, Tex.
* "+
•
ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription
by common stockholders at the rate
of $100 of bonds for each 28 shares of
stock held (for
a
14-day standby). Certain stockholders have
their rights. Price—At
par. Proceeds—To repay
500 of outstanding notes and for
&
drilling
Underwriters
—
Dallas
Dallas, Texas; Carl M. Loeb, Rhoades
January
(Offering
to
Common
\"
1
•
'
expenses
Rupe
Straus, Blosser & McDowell, Chicago, 111.
—Postponed until after Jan. 1, 1953.
★
Consumers
Offering
(par 33
cents), of which 235,000 shares are to be issued upon
exercise of share rights and 68,595 shares are to be sold
for account
of
selling stockholders.
plied by amendment.
Price—To
be
sup¬
Proceeds—To company to be used
for operating expenses to
pay for future exploration and
development of leases, etc. Underwriters—White, Weld
& Co., New York, for an undetermined number of
shares;
balance
through
Canadian underwriter to be named
Offering—Not expected until after Jan. 1, 1953.
later.
★ Cenco,
Dec.
1
a
invited)
be
11
1953
Bonds
invited)
a.m.
to
be
(Offering
26,
Common
to
11
a.m.
Bonds & Pfd.
CST)
Davison Chemical Corp.
12{#iled 160,666 shares of common stock
$2,500,000 of 10-year convertible junior
Aug. 1, 1962. Price—To be supplied by
issued to the Ports¬
mouth Steel Corp.
Underwriter—Halsey, Stuart & Co.
Inc., Chicago and New York. Offering — Temporarily
postponed.
25
filed
Proceeds—To pay notes
22
filed
Electric
shares
common
at the rate
of
stock
common
one
new
stockholders
share for each
shares held; rights to expire on Dec. 19. Price—
$43.25 per share. Proceeds—For property additions. Un¬
derwriter—None.
^ Coca-Cola Bottling Co. of St. Louis
Dec. 5 (letter of notification) 2,500 shares of common
stock
(par $1). Price-—At market (approximately $25
per
all
offices
Proceeds—From sale of stock, together with other j
share).
stockholder.
Wm. F.
Proceeds—To
Underwriters
Dowdall
&
Willard
—
to be obtained through long-term debt,]
expansion program. Underwriter—Alex. ]
G.
H.
R.
Cox,
Walker
the
&
Co., both of St. Louis, Mo.
selling
Co.
and
Wichita Falls, Tex.
^letter of notification) 299,500 shares of common
* Denrnan Oil & Drilling Corp.,
Dec.
5
(par 10 cents). Price—$1 per share. Proceeds—
driB oil and gas wells. Office—332 Nacol Oil & Gas
stock f.
To
Bldg.f; l^ichita Falls, Tex.
ties Corp., New York.
1
Underwriter—Hunter Securi¬
^
.
Devil Peak Uranium, Ltd.
*
(Nev.)
April ^ {letter of notification) 600,000 shares of common
(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.
stock
i
to
fourj
16. Price—$34.50 per!
capital|i Offering—Expected before Oct. 15.
(no par)
five
Private IVires
held; rights to expire Dec.
Browh&& Sons, Baltimore, Md.
*
Illuminating Co.
557,895 shares of
of record Nov. 24
Chicago
(oar $1)
»
debentures due
Cleveland
Proceeds—To Bernard N. Cohn, a'
Underwriter—None, but Bache & Co. will act
broker.
Decirpark Packing Co., Port Jervis, N. Y.
March^l (letter of notification) 235,000 shares of com¬
mon stock
(par 10 cents).
Price—$1.25 per share. Pro-1
ceeds^f|To repay RFC loan of $41,050 and for working
being offered for subscription by
Pittsburgh
held
shares
.
will be'hsed for
Cincinnati Enquirer, Inc.
July
Oct.
San Francisco
two
the preferred stock).
share.
underwriting)
stockholders—no
Iowa-Illinois Gas & Electric Co
Proceeds—To Kenneth P. Milliken,
Boston
each
recordtfpec. 1 at rate of one new share for each
1953
January 27, 1953
Cleveland
Philadelphia
:
funds expected
amendment.
New York
for
;Price—For preferred, $8.50 per share, and for:
$6.50 per share. Proceeds—For working capi-:
Inc., Hartford,;
Nov.
invited)
Culver Corp.
(Bids
Under¬
stock
being offered for subscription by common stockholders of l
January
Corp., New York.
each five shares
share for
common
+ Davega Stores Corp. (N. Y. )
9 {letter of notification)
550 shares of common
stock (pdr $2.50) and 125 shares of 5% cumulative pre¬
ferred stock (par $20).
Price—At market (estimated at
$8.871/2 per share for common stock, and at $14.50 for,
Equip. Trust Ctfs.
(Eids
(letter of notification) 100,000 shares of common
10 cents). Price—At market (estimated at
Securities
of
January 22, 1953
(par
writer—Hunter
preferred
share
director.
EST)
Southern Ry.
Inc., Colorado Springs, Colo.
Vice-President, who is the selling stockholder,
one
common,
as
(letter of
20 cents per share).
Manufacturing Co.
Dec.
Bonds & Preferred
★ Century Natural Gas & Oil Corp.
stock
to
(Bids
notification) 1,250 shares of common
stock. Price—At par ($20 per share). Proceeds—To
pur¬
chase bank building.
Office — 215 Mining Exchange
Bldg., Colorado Springs, Colo. Underwriter—None.
Dec. 9
Common
Ohio Power Co
of
one
Conn.
1953
City Power & Light Co...
(Bids
]
tal. Underwriter—Coburn & Middlebrook,
Co
January 20,
Kansas
Underwriter — None, but
& McKinnon may act as
(par $1) to be initially offered to stockholders at
stock
held.
invited)
Edison
(Bids to be
stock
common
1953
January 15,
California
Thomson
6
rate
Common
to be
(Bids
Co., and
(letter of notification) 5,526 shares of class A
preferred stock (par $5) and 10,000 shares of common
invited)
Power Co
Canadian Prospect Ltd.,
Calgary, Alta., Canada
303,595 shares of
to
January 14,
Southern
Nov. 24 filed
&
and
and
Son.
be
selling stockholder.
Danielson
Nov.
by Merrill,
Co.)
Preferred
(Bids
the
brokers.
•
Common
Ohio Edison Co.__._
waived
is
1953
13,
&
3,000 shares of common
Price—At market (about $6.75 per share).
Proceeds—To Louis Daitch, Chairman of the Board, who
Hirsch
invited)
stockholders—underwritten
Turben
Crystal Dairies, Inc.
stock (par $1).
.
National City Bank of Cleveland..--
& Co., New York;
and
*
be
k
*
:
.
$1,014,-
working capital.
Bonds
>,
to
to reduce
Underwriter—
expansion and investments.
Co., Inc., New York.
(letter of notification)
20
Nov.
1953
invited)
be
to
Ohio Edison Co
&
Daitch
York, New Haven & Hartford RR
(Bids
Oct. 22 filed $1,750,000 of
10-year 5Vi% convertible sink¬
7,
for
Hodson
Co.)
9
share).
,
Debentures
January
Co., Inc.
(letter of notification) $250,000 5% subordinated
debentures due 1983. Price—At par (in denomination's of
debt,
Freightlines, Inc
&
Crown Finance
ex¬
Underwriters—
$1,000 each). Proceeds—For working capital,
1952
29,
(Allen
(letter of notification) 50,000 shares of common
(of these, 163 shares have already been sold and
being reoffered hereunder). Price—At par ($5 per
30th
Co.,
December
stock
are
Inc.)
Common
(Blyth
Proceeds—To finance
Nov. 19
per
★ Buyers Cooperative, Inc., N. Y.
Dec.
&
Co.)
Corp.
stockholders, $10 per share, and to
share. Proceeds—For working capital.
Underwriter—Lee Higginson Corp., New York.
public, $11
&
stock held; rights will expire
Price—At par (flat).
Dec. 18.
Common
Graves
$16,484,300 of 3V\%convertible debentures due
18, 1967 being offered for subscription by common
stockholders of record Dec. 1 at rate of $100 of deben¬
pansion program and repay bank loans.
Halsey, Stuart & Co. Inc.
1952
18,
Nov.5 filed
tures for each 30 shares of
Oil Co
(Gordon
Filtrol
Co.)
EST)
noon
December
„
basis of two
on
&
_Equip. Trust Ctfs.
(Bids
Bryant Chucking Grinder Co., Springfield, Vt.
common
Common
Staats
R.
v
Dec.
...
(William
York.
Electric Light & Power Co. of
Baltimore
..Common
Alstyne, Noel & Co.)
New York Central RR
by amendment. Proceeds—
cent). Price—To be supplied
17, 1952
Corp.__
(Van
Proceeds—
and for corporate purposes. Under¬
per
Stores
(12/18)
(par one
150,000 shares of common stock
Consolidated Gas,
Sept. 25 filed 1,000,000 shares of
Miami, Fla.
Commonwealth Oil Co.,
Consolidated
Common
Engineering Co
(Blyth & Co.,
stock
1952
16,
Proceeds—To fi¬
New York.
Kirchner & Jaquith, Inc., Denver, Colo.
Beaver
by amendment.
purchase by a subsidiary (Colorado Steel Corp.)
and inventories of John A. Roebling's Sons
Underwriter—Allen & Co., New York.
For
Preferred
.
all plants
Nov.
Western Natural Gas Co
.
Price—To be supplied
Preference
(Steele
125,000 shares of common
securities to broker-dealers for
nance
Co.
1952
15,
Multicrafters, Inc
filed
8
Dec.
Underwriter—None.
equipment.
Fuel & Iron Corp., Denver, Colo.
340,000 shares of common stock (no par).
* Colorado
of
ford, Conn.
•
Manufactures electrical
1952
12,
shares of 6%
500.000
Company intends to offer
EST)
noon
December
it Ansonia Wire & Cable Co., New York
Price—To
Bonds
RR.
Co., both of New York.
Dec.
1952
11,
ISSUE
Philadelphia, Pa.
cumulative preferred
stock (par $1) and 255,000 shares of common stock (no
par—stated value $1) to be sold in units of two shares
of preferred and one share of common stock.
Price—$3
per unit. Proceeds — For working capital.
Business —
NEW ISSUE CALENDAR
(par $2) being offered to common stockholders of
Dec. 2 at rate of one new share for each eight
REVISED
Corp.,
Products
filed
1
Dec.
18,978 shares of common
PREVIOUS
ITEMS
•
Code
Seal-Kap Corp.
(letter of notification)
ADDITIONS
SINCE
Registration
'
Nov. 24
1952
•
'Pn
Diania
Nov.^28
'
5
Corp., New York (12/17)
100,000 shares of common stock
Stores
filed
cents,) Price—To be supplied by
(par 50
amendment. Proceeds—
To Mrs.»i|elma Beck Oritt, the selling stockholder. Bnsiness-fChain of women's wearing apparel stores. Under¬
writer—Van Alstyne, Noel & Co., New York.
Volume 176
Number 5176
.
.
The Commercial and Financial Chronicle
.
★ Ekco Oil Co., Philadelphia, Pa.
Dec. 4
stock
(letter of notification)
(par
99,000 shares of
★ Hemisphere Western Oil Co.,
Oklahoma City, Okla.
common
Price—$3 per share. Proceeds—
To acquire leases and drill wells.
Underwriter—Hopper,
cent).
one
Dec. 3
10
mon
1,200,000 shares of
Bldg.,
N.
Y.
writer—I. J. Schenin Co., New York.
test
Price—At
No.v.
1967.
1,
ceeds— To
Price—At
$300,000
dated
par
of
Smith
15-year
Corp., N. Y.
Office—50
Broadway, New York,
Co., Inc., New York. Of¬
Corp.
filed
200,000 shares of common stock (par $1).
market
(on the San Francisco Stock Ex¬
Proceeds—To selling stockholder
MacBoyle
Betchtold,
of
Francisco-
1, 1952 and due
and accrued interest. Pro-
Equipment Acceptance Corp., Peoria,
wells.
testament
6%
Nov.
Calif.
Errol
executrix
as
Bechtold,
of
the
(Gwendolyn
last
deceased).
will
Underwriter—None.
25 filed 30,000 shares of common stock
(par $10)
14,000 shares of preferred stock (par $50) of which
28,000 common shares and all of the preferred stock are
to be offered in units of
shares
of
common
Of
remaining
2,000
common
shares, 500 have been sold to directors and 1,500 are to
be reserved for directors and sales
representatives. Price
—$70 per unit. Proceeds—For working capital. Under¬
Underwriter—Paul H. Davis & Co., Chicago, 111.
★ Feldt Manufacturing Co., Inc., Temple, Tex.
★ Inter County Telephone & Telegraph Co.
Dec, 3 (letter of notification)
stock (par $10) to be offered in units of a $1,000
bond and 60 shares of stock.
Price—$1,750 per unit. Pro¬
common
share).
Television,
(letter
of
debentures and
be
W. Freeman &
Inc.,
notification)
Hollywood,
$182,000
stock
(the stock
Fabrics
Corp.,
17,650
shares.
general corporate purposes.
At par. Proceeds — For
working capital. Offices—1041 North Formosa St., Holly¬
wood, Calif., and 19 Rector St., New York, N. Y. Under¬
—
Oct.
653,500 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To At¬
lantic Co., F. Eberstadt & Co., Inc. and Lazard Freres &
Co. and certain individuals. Underwriters—Blyth &
Co.,
Inc., San ^rancisco and New York. Business—Produc¬
tion of clay cracking catalysts for
petroleum refin¬
ing, etc.
\
-
/
Nov.
Corp., Ltd., Los Angeles, Calif.
(12/17)
26 filed
Price—To
exceed
100,000 shares of capital stock (par $2.50).
supplied by amendment (estimated not to
per share). Proceeds—For working capital.
be
$17
Underwriter
—
William
R.
Staats
&
Co., Los Angeles,
Calif.
"Food
Fair
Stores,
Inc.,
Philadelphia,
100,000 shares of
par
None.
filed
26
Price
Stores
Corp., New York
oil
(12/16)
common stock
(par $1).
by amendment. Proceeds
To
—
Executors of Estate of Marcus Rubenstein. Underwriter—
Merrill Lynch, Pierce, Fenner & Beane, New York.
•
General
Nov.
26
stock
Steel
Castings Corp.
(no
Baldwin
Securities
★ Gripso
4
stock
Corp., the selling stockholder.
Co., Philadelphia, Pa.
'i!
(par
10
of
Un¬
&
Flat Clasp,
(letter
Inc.
(N.
Y.)
50,000 shares of capital
Price—$1 per share. Proceeds—
cents).
working capital.
Office, New York,
Underwriter—None.
Israel
,
13 filed 350,000 shares of class A
common/stock
(par $1), of which 50,000 shares will be issued to stock¬
holders, directors, officers and employees for services
rendered and 300,000 shares will be offered to
public.
Price—To be supplied by amendment.
Proceeds-—For
engineering and construction of prototype coaxial heli¬
Office—St.
James, L. I.,
N.
Y.
Underwriter—
None.
★
,
.
%
r
•
.
y...
Nov.
25
(letetr of
notification)
Price—At par
construction.
($100
per
Office—9425 N. E.
291
shares
share).
of
common
Proceeds
—
For
Prescott, Portland, Ore.
Underwriter—None.
Hawthorne House of
Nov. 17
stock.
new
Room
-
Nevada, Inc.
(letter of notification) 30,000 shares of common
par
($10 per share).
Proceeds—For
Price—At
construction
4.
Lester L.
and
furnishings of motel.
Office—
Bldg., Las Vegas, Nev. Underwriter—
LaFortune, Las Vegas, Nev.
"
Cornet
&
Mineral
Development Corp.
★ Kropp Forge Co., Cicero; III.
Dec.
3
(letter ol notification)
10,000 shares of common
Price—At market (approximately
stock (par 33% cents).
50, 111.
Underwriter—None.
WHitehall 3-2181.
McGraw
Offering—Date indefinite.
(F. H.)
Co., Hartford, Conn.
Sept. 10 (letter of notification) 5,000 shares of common
stock (par $2) and warrants to
purchase 20,000 shares
of
common
one
stock
share
at
and
$6
per
warrants
share to be offered in units
to
purchase four additional
Price—$19.87V2 per share. Proceeds—To Clifford
S. Strike, the selling stockholder.
Underwriter—Granbery, Marache & Co., New York.„
.
★ Mercast Corp., New York
Dec.
5
G.
J.
(letter of notification)
(par 10 cents).
12,200 shares of
Price—$5.87 V2
per
common
share.
Proceeds
selling stockholders.
seven
Underwriter—None, but
Co., Inc., New York, may act as broker.
White &
★ Lassiter Corp., Charlotte, N. C.
Dec.
4
(letter of notification) 14,344 shares of class B
common
stock
(par $5) and 2,500 shares of class A
common stock
(par $5). Price—$10 per share. Under¬
Nov.
S.
Dickson
&
Co.,
Charlotte,
N.
C.
Paper Co., Vicksburg, Mich.
13
Mex-American Minerals Corp., Granite City, III.
3 filed 113,000 shares of 6% cumulative
preferred
Nov.
stock
10
(par $5) and 113,000 shares of
cents)
to
offered
be
class of stock.
Price—$6
in* units
per
unit.
stock (par
common
of
one
share
of
each
Proceeds—For work¬
ing capital. Business—Purchase, processing, refining and
sale of Fluorspar. Underwriter — To be
supplied by
|
&
Refining Co.
(letter of notification) 400,000 shares of
Nov. 10
stock
:
>
.
Mid-Gulf Oil
common
(par five
cents). Price—60 cents per share. Pro¬
ceeds—To acquire additional properties. Office—927-929
Market St., Wilmington, Del. Underwriter—W. C. Doehler Co., Jersey City, N. J.
Mineral
July
Exploration Corp., Ltd., Toronto Canada
29
filed
to
have
2,000,000 shares of common stock, each
attached an "A," "B" and "C" warrant,
giving the holder the right to buy one additional
share for each two shares purchased in two, three, or
five years, at $1, $2 and $3 per share, respectively. Price
—For 2,000,000 shares, $1 per share—Canadian.
Pro¬
ceeds—For exploration, development and acquisition of
properties. Underwriter—Brewis & White, Ltd., Toronto,
share
each
Canada.
Names of United States underwriters to be sup¬
plied by amendment.
(letter of notification) 30,000 shares of
common
Mississippi Chemical Corp., Yazoo City, Miss.
common stock (par $5),
849,038 shares have been subscribed, paid for
and issued, and an additional 107,550 shares have been
subscribed for as of Aug. 28 and will be issued in con¬
nection with expansion of ammonia plant.
The remain¬
ing shares will be offered for sale primarily to farmers
and farm groups. Price — At par. Proceeds — For new
Sept. 29 filed 2,000,000 shares of
of which
stock to be offered for subscription only by stockholders
of record Aug. 18. Price—At par ($10 per share). Pro¬
construction.
ceeds—For
★ Modern Ladders, Inc., West Somerville, Mass.
Dec. 2
(letter of notification) 400 shares of common
stock.
Price — At par ($100 per share).
Proceeds — To
working capital.
Underwriter—None.
.
E
Nov. 6
(letter of notification) 30,000 shares of 5% cumu¬
stock being offered for sub¬
lative convertible preferred
scription
1952
on
by
shares
stockholders
common
basis of 4%
held
of
Nov.
record
preferred shares for each 100
(with
15,
com¬
oversubscription privilege);
rights to expire Dec. 31. Price—At par ($10 per share).
Proceeds
To pay loans. Address — c/o S. H. Collier,
an
—
President of First National Bank, Mercedes, Tex. Under¬
writer—None.
Underwriter—None.
perfect aluminum ladders. Office—71 Raymond Avenue,
Somerville, Mass. Underwriter—None.
West
Montana Basin Oil Corp.
(N. Y.)
Sept. 19 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds—
For
exploration and development expenses.
Corp., New York.
Underwrite*
—Aetna Securities
★ Mosser Oil Corp., Yakima, Wash.
(letter of notification) 240,000 shares of common
Nov. 25
21
stock
(A.
J.)
&
stock
(letter of notification) 6,510 shares of
(par $1). Price—$2
Julia
Hoverson Co.
Lindemann
per
Amendt,
Underwriter—Merrill
the
Lynch,
common
share. Proceeds—To Mis.
selling
Pierce,
stockholder.
Fenner
&
Beane,
Milwaukee, Wis.
★ Louray Gas & Oil Corp., Phila., Pa.
5 (letter of notification) 290,000 shares of capital
stock.
Price
At par ($1 per share).
Proceeds — To
acquire and drill wells. Office—2717 Fidelity-Philadel¬
Dec.
—
phia Trust Bldg., 123 So. Broad Street, Philadelphia, Pa.
★ Hasco, Inc., Portland, Ore.
stock.
Corp., New York.
Industrial
Oct. 6 filed 30,000 shares of class A stock. Price—At par
($100 per share). Proceeds—For industrial and mineral
development of Israel. Underwriter — Israel Securities
Corp., New York.
Nov.
Nov.
(par 25
—
amendment.
Israeli enterprises and to purchase crude
products for resale in Israel. Underwriter—
Lindemann
Gyrodyne Co. of America, Inc.
copter.
&
for
oil
Israel Securities
mon
notification)
For equipment and
N. Y.
(12/20)
notification) 434 shares of common
Price—$21.50 per share. Proceeds—To
par).
Underwriter—Douglass
Leon Land & Cattle Co.
(letter of
derwriter—Drexel
Dec.
oil
and
Lee
95,225 shares of
be supplied
—
Office—119 South Beverly
filed
writer—R.
Franklin
Nov.
29
crude
stock
(par $1)
to be offered to certain employees pursuant to the terms
of stock purchase plan.
Price—$3 below the average
market price for the month in which
payment is com¬
pleted.
Proceeds—For general funds.
Underwriter—
common
par
$3.75 per share). Proceeds—To Roy A. Kropp, the sell¬
ing stockholder. Office—5301 West Roosevelt Road, Ci¬
Pa.
(Glenn), Inc.
corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50
Broadway, New York, N. Y. Telephone
—To
49,500 shares of common stock. Price—At
($100 per share). Proceeds—To finance purchase of
cero
Sept. 9 filed
Beverly Hills, Calif.
Ispetrol Corp., New York
(12/18)
Nov. 28 filed
Fluor
Price—At
Drive, Beverly Hills, Calif.
Co., Beverly Hills, Calif.
writer—Bruns, Ncrdeman & Co., New York.
Corp., Los Angeles, Calif.
McCarthy
Underwriter—H. O. Peet
June 12 filed 10,000,000 shares of common stock
stock
shares; and to public, 275,000
($1 per share)r
Proceeds—For
bentures purchased).
Filtrol
Un¬
(letter of notification) 299,635 shares of com¬
stock, to be issued as follows: To William Hoeppner, 6,985 shares; to stockholders of Soft-Flex Glass
by J. H. Skirball who will issue, without
charge, five shares of class B stock for each $500 of de¬
•
of James C. Shepherd.
Co., Kansas City, Mo.
mon
offered
Price
per
Sept. 22
Calif.
of subordinated
1,820 shares of class B
cumu¬
($25
Co., Fort Meyers, Fla.
International Glass Corp.,
for
Price—At par
Proceeds—For general corporate purposes.
derwriter—H.
being made.
to
6,000 shares of 5%
lative preferred stock, series B.
ceeds—For acquisition of assets of predecessor
company.
Underwriter—John L. Hall, N'ew York. Offering—Now
1
Estate
&
shares.
(letter of notification) $100,000 of 6%-10% par¬
ticipating 15-year debenture bonds and 6,000 shares of
★ Films
,
★ Marsh Steel Corp., North Kansas City, Mo.
Dec. 1 (letter of
notification) 4,500 shares of common
stock (par $10).
Price—$20.50 per share. Proceeds—To
of
writer—None.
Nov. 25
Dec.
capital. Office — 532 Security Bldg.,
Underwriter—Weber-Millican Co., New
Ariz.
York.
share of preferred and two
one
stock.
working
Phoenix,
Price—$2 per share. Proceeds
For drilling of
exploratory wells, acquisition of leases and for general
Nov
III.
—For
cents).
and
(letter of notification) 2,000 shares of common
stock (par $50). Price — $60 per share. Proceeds — For
working capital. Office—3500 North Adams St., Peoria,
Nov. 12 (letter of notification) 553,500 shares of common
stock (par 10 cents). Price—50 cents
per share. Proceeds
and
Office—San
★ Insurance Exchange Corp., Walla Walla, Wash.
10
111.
6
change).
(12/16)
bank loans and for working capital.
Wagner Avenue, Eric, Pa. Underwriter—
& Root, Erie, Pa., will act as distributor.
-1602
Farm
notification)
—
Magma King Manganese Mining Co.
Gas
Idaho Maryland Mines
repay
Office
Nohe.
Oct.
of
&
Underwriter—Teden &
June
debentures
Oil
drill
600,000 shares of common
stock (par 5 cents). Price—50 cents per share. Proceeds
—To drill well. Office—Mayo Bldg., Tulsa, Okla. Under¬
fund
Underwriter—
fering—Indefinitely postponed.
Nov. 6 (letter of notification)
(letter
City, Okla.
(letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
Empire Oil Corp., Tulsa, Okla.
9
Oklahoma
Pro¬
Office
Nov. 24
—To
sinking
common
share.
per
acquire working interest in oil wells.
Horizon
ment.
Dec.
cents
Paramount, Calif.
2
(letter of notification) 1,380 shares of common
stock (par $1).
Price—At market (approximately $9.50
to $10.50 per share). Proceeds—To
Francis E. Cornwall,
the selling stockholder. Underwriter
Dean Witter &
Co., San Francisco, Calif.
com¬
(par one cent). Price—25 cents per share.
Proceeds—To expand current operations and for work¬
ing capital. Underwriter—To be furnished by amend¬
★ Erie Meter Systems, Inc., Erie, Pa.
Price—25
Winner & Meyers.
stock
(letter of notification)
cent).
one
—Cravens
Electronics & Nucleonics, Inc., N. Y.
Nov.
(par
ceeds—To
★ Macco Corp.,
;
Dec.
(letter of notification) 1,196,000 shares of
stock
Soliday & Co.. Philadelphia, Pa.
*
;
39
(2255)
|
★ M Bar Oil Co., Newcastle, Wyo.
(letter cf notification) 173,200 shares of common
Price—At par ($1 per share). Proceeds—To drill
Dec. 3
stock.
well.
Underwriter—Carroll,
Denver, Colo.
Kirchner
&
Jaquith,
Inc.,
Corp., Paramount, Calif.
(letter of notification) 1,470 shares of common
(par $1). Price—At the market (about $10 per
share). Proceeds—To Mrs. Helen R. Davis, the selling
Nov.
4
stock
stockholder.
Underwriter
Francisco, Calif.
—
Yakima,
Dean
Witter
&
Co.,
10
Price—15 cents per share. Pro¬
Office—Room 217, Miller Bldg.,
Underwriter—None.
cents).
wells.
drill
Wash.
Multicrafters,
Inc.,
Lincolnwood, 111.
(12/15)
(letter of notification) 99.900 shares of 6% con¬
vertible prior preference stock. Price—At par ($3 per
share.
Proceeds — For new machinery and equipment.
Oct. 28
Office—3517 Touhy Ave., Lincolnwood,
—Steele
111. Underwriter
& Co., New York.
Multiple Dome Oil Co., Salt Lake City, Utah
Sept. 8 (letter of notification) 150,000 shares of common
stock.
Price—At market (approximately 10 cents per
share). Proceeds—To George W. Snyder, President. Un¬
derwriter—Greenfield & Co., Inc., New York.
Nash Finch
Oct.
Macco
(par
ceeds—To
stock
21
Co., Minneapolis, Minn.
1,000 shares of common
Price—At market (estimated at from
(letter of notification)
(par $10).
$17 to $20 per share).
the selling stockholder.
Proceeds—To Willis King Nash,
Underwriter—J. M. Dain & Co.,
Minneapolis, Minn.
San
Continued
on
page
40
(y
40
Continued
Nevada
it Rochester-Monroe Dairy Products,
from page 39
Nev.
Tungsten Corp., Mina,
shares of com¬
mon
stock (par one cent). Price—Five cents per share.
iJProceeds—For working capital. Underwriter—Tellier &
6o.,
New York.
(12/12)
capital stock to be offered
shares of
subscription by stockholders of record Dec.
one
new
share for each ten shares held;
10 at rate
rights to
will be issued on
($100 per share). Proceeds —
To repay borrowings made from American Telephone &
Telegraph Co., the parent (owner of 69.15% of the pres¬
ent outstanding stock), and for other corporate pur¬
expire
Jan. 12. Subscription rights
on
Price
12.
Dec.
—
At par
Nielco
Inc.,
Chemicals,
Sept. 12 filed 1,900 shares of 4% cumulative preferred
$100) and 18,000 shares of common stock (par
$5) to be issued to James A. Dick Investment Co. (for¬
merly The James A. Dick Co.) in exchange for inven¬
tories, fixtures, operating supplies, good will and other
assets of Dick. It is anticipated that the Dick Company
will sell all or a substantial part of these shares from
time to time on the New York Stock Exchange. Under¬
Price—At par
Oct.
Boston, Mass.
Proceeds
1,000,000 shares of capital stock (par 20
cents—Canadian) and subscription warrants for 600,000
filed
21
subscription warrants for
shares, of which the stock and
400,000 shares are to be offered in units of 100 shares
of stock and subscription warrants for 40 shares. Price—
(par $1—
Pro¬
stockholder, who
50,000 shares of common stock
Ken
Curb
York
the
Kelman,
the shares
offer
selling
time
from
Exchange
to
time
in the
or
either
on
the
over-the-counter
17
(George)
Sons,
Inc., Fremont, Neb.
(letter of notification) 989 shares of 6% cumu¬
lative preferred stock. Price—At par ($100 per share).
Proceeds—For working capital. Office—108 East 6th St.,
it Scott Paper Co.
memberships in the company's
1953 and 23,529 shares of com¬
^ Northside Improvement Association,
Lincoln, Neb.
Dec. 4 (letter of notification) 5,000 shares
None.
purchase producing
mon
stock
purchasable
Seaboard
of common
stock.
Price—$10 per share.
Proceeds—To purchase
property and building housing units. Office—1319 O St.,
Lincoln 8, Neb.
Underwriter—None.
Telephone & Telegraph Co.
703,375 shares of common stock being of¬
fered for subscription by stockholders at rate of one new
share for each nine preferred or common shares held on
Finance
under the
plan.
Underwriter—
parept, presently owns more than
Price—At par ($100 per
Proceeds—To repay advances and bank loans
Telegraph
Co., the
90% of the outstanding shares.
share).
for
and
Underwriter—None.
construction.
new
Seacrest
100.000 shares of
Seiberling Rubber Co.
common
Getty, Presi¬
sales to be handled
the New York Stock Exchange.
Underwriter
brokers
(par $4).
stock
Price—At the market. Proceeds—To J. Paul
dent,
on
—
None,
by
Oct.
filed
1
ment.
Proceeds—To repay $1,200,000 loan and for work¬
ing capital.
Underwriter—Blair, Rollins & Co., Inc., New
Offering—Postponed indefinitely.
Valley Oil Co., Reno, Nev.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per share). Proceeds—To drill six wells
on subleased land and for other corporate purposes. Un¬
derwriter—None, with sales to be made on a commission
basis (selling commission is two cents per share).
Of¬
fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.,
139
N.
Oct.
mon
share
new
expire on
Proceeds
Dec.
For
—
for
15.
new
each
Price
(letter of notification) 2,044 shares of com¬
(par $1). Price—At market (about $17 per
share).
Proceeds—To John W. Leslie, trustee of Walter
S. Underwood and
Emily C. Underwood.
At
par
held; rights to
($100 per share).
Underwriter
construction.
—
None.
Underwriter—
Ames, Emerich & Co., Chicago, 111.
Nov.
shares
five
—
9
stock
Petroleum
Oct.
29
ferred
shares
(par $1) and 100,000 shares of
stock (par 10 cents) to be offered in units of
ferred and one common share.
Price—$1.25
10
to be
filed
298,735 shares of
common
offered to certain officers and
stock
(no par)
other employees
of
the company and its subsidiaries under the Stock Pur¬
chase and Option Plan.
Price—$39.50 per share. Pro¬
ceeds—For general corporate purposes.
Underwriter—
None.
of
pre¬
common
one
per
pre¬
unit.
operating capital. Address — c/o N. A.
Mercantile Securities Bldg., Dallas, Tex.
Underwriter—Garrett & Co., Inc., Dallas, Tex.
Tinker,
it Smith Investment Co., Milwaukee, Wis.
(letter of notification) 14 shares of common stock
(par $10). Price—$6,350 per share. Proceeds—To Estate
of Lloyd R. Smith.
Underwriter—Gardner F. Dalton &
Co., Milwaukee, Wis.
Standard
For
—
Jr.,
Nov.
common
ord
or
stock
Dec.
1
at
60,000
shares
of class B
being offered to all stockholders of
rate
B share held.
of
one
new
rec¬
sh^re for each class A
Officers of company have waived suffi¬
cient of their preemptive rights (33,078 shares) so that
the remaining stockholders may subscribe on a one-forone basis.
Price—At par ($5 per share). Proceeds—For
expansion and modernization of plant and for working
capital. k Office — 403 Oliver Bldg., Pittsburgh 22, Pa.
Underwriter—None.
•
Powers
Manufacturing Co., Longview, Tex.
—
Underwriter
—
Dallas Rupe
& Son, Dallas, Texas.
Offering—Expected in January.
-k Premo
Dec.
stock
per
Pharmaceutical
Laboratories, Inc.
(letter of notification) 8,000 shares of common
(par $5) to be offered to employees. Price—$12.50
Proceeds—For working capital.
Office—Len-
ning Street, South Hackensack, N. J. Underwriter—None.
it Prestole Corp., Toledo, Ohio
Dec. 5 (letter of notification)
20,000 shares of common
stock (par $1). Price—$5 per share.
Proceeds—To pur¬
chase factory building. Office—1345 Miami
St., Toledo
5, Ohio. Underwriters—Ball, Burge & Kraus, Cleveland
Ohio, and Collin, Norton & Co., Toledo/.Ohio
'
'
named
Office—Houston,
by amendment.
-Of¬
Fort Worth, Tex.
with
(par
cents). Price—25 cents per share. Proceeds—To drill
and gas well. Underwriter—Peter W. Spiess Co., New
it Texas Oil Exploration
10
011
Co.,
York.
Western Oil Co.,
Inc., Houston, Tex.
notification) 100,000 shares of common
Price—50 cents per share. Proceeds
—For working capital. Office—1 Main St., Houston, Tex.
Underwriter—Scott, Khoury & Co., Inc., New York.
Nov. 12 (letter of
stock (par 10 cents).
TexSoDak Oil Co.,
Products Co., Inc.
$5,000,000 of 5% convertible subordinated
•
Standard
State
24
Torhio Oil Corp.,
Street
Investment
180,556
shares
Corp.
capital stock
being offered for subscription by stockholders
1952, at rate of one new share for each
held; rights to expire on Dec. 20. Price—At
Nov. 5,
value
in
effect
are
investment.
when
properly
executed
(no
par)
of record
10 shares
net
asset
subscription
received from stockholders. Proceeds—For
Underwriter—None.
it Transue & Williams Steel Forging Corp.
(letter of notification) 368 shares of aapital stock
it Sterling Telecasting Co., Spartanburg, S. C.
2 (letter of notification) 60,000 shares of common
stock.
Price
At par ($5 per share).
Proceeds — To
—
television
station.
Street, Spartanburg, S. C.
Co., Spartanburg, S. C.
Office—124V2
East
Main
Underwriter—A. M. Law &
Chicago, III.
Aug. 27 (letter of notification) 2,367 shares of common
stock (par $50) to be offered for subscription by common
Union
rate
Bag & Paper Corp., New York
253,008 shares of capital stock
of
one
new
Under¬
(par $20)
filed
7
Nov.
being offered for subscription by stockholders of record
28 at rate of one new share for each six share.3
Nov.
will expire
on
Dec. 15. Price—$42 per share.
working capital and expansion program.
Underwriters—Morgan Stanley & Co., New York.
Equipment & Service, Inc., Baltimore, Md,
of notification) $238,400 of 6% bonds'.
par
(in denominations of $100, $500, $1,000
and $5,000 each). Proceeds—To reduce outstanding notes.
Office—629 Title Bldg., Baltimore, Md. Underwriter—
>
United
20
Nov.
(letter
Price—At
None.
United Petroleum &
Mining Corp., Bismarck, N. D.
17
(letter of notification) 150,000 shares of class A
voting stock and 150,00 shares of 4% class B non-voting
stock.
Price—$1 per share.
Proceeds—To purchase oil
Nov.
and gas
Office—222 Main Street, Bismarck, N. D.
Co., Minneapolis, Minn.
leases.
Underwriter—John G. Kinnard &
Victoria
Copper Zinc Mines Ltd.,
Montreal, Canada
filed 1,050,000 shares of common stock. Price^.
be taken down in 10 blocks ranging from 50,000 to
22
200,000 shares at prices ranging from 15 cents to $1 per
Estimated
to
who
public offering prices range from 35
Proceeds—For mining opera¬
Rogers, of Montreal, Canada,
is the "optionee" of the stock to be taken down.
$1.50
Video
Oct.
per
share.
Underwriter—Jack
tions.
3
Products
Corp., Red Bank, N. J.
75,000 shares of common
Price—$2.50 per share.
Proceeds
—For
working capital.
Office—42 West Street, Red
Bank, N. J.
Underwriter—None.
(letter of notification)
(par 50 cents).
it Virginia Iron, Coal & Coke Co., Roanoke, Va.
(letter of notification) $64,000 aggregate amount
of common stock (par $10). Price—At market. Proceeds
—To Samuel T. Brown, the selling stockholder. Office—
Nov. 26
310
Campbell Avenue, S. W., Roanoke, Va.
Underwriter
Okla.
3,000 shares of common
stock (par $3).
Price—At market. Proceeds—To J.^ A,
La Fortune and Mrs. Gertrude La Fortune. Underwriter
Warren
7
Nov.
share
for
each
four
Petroleum Corp., Tulsa,
(letter of notification)
—Harris, Upham & Co., New York.
West
Coast
Nov. 20 filed
15,
Pipe Line Co., Dallas, Tex.
$29,000,000 12-year 6% debentures due Dec.
1964, and 580,000 shares of common stock (par 50
to be offered in units of one $50 debenture and
cents)
~
at
entitled to receive fractional
shares in connection with recent stock dividend.
•
Streeter-Amet Co.,
stockholders
Price—At market (estimated at $23 per share).
(no par).
Proceeds—To stockholders
—None.
Dec.
construct
Ltd., Toronto, Canada
Dec. 2
stock
of
Underwriter—None.
public. Price — 60 cents per share. Proceeds—For ex¬
ploration of oil and gas properties, and to drill a test
well. Underwriter—None, but offering to public will b#
handled through brokers.
cents
filed
Sioux Falls, S. D.
Aug. 21 filed 300,000 shares of common stock (par $1) to
be offered first to stockholders and then to the general
share.
Offering—Expected today (Dec. 11).
Sulphur Co., New York (12/15)
Nov. 7 filed 1,250,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For construction
of plant and purchase of new equipment and for working
capital. Underwriters—Gearhart & Otis, Inc., and F. L.
Oct.
Price—Of class A stock, at par.
Office—1213 South
Underwriter—McKelvy & Co., Pittsburgh, Pa.
To
debentures, to repay bank
for working capital; and from sale of stock,
selling stockholders. Underwriter—F. Eberstadt
and
Co., Inc.
the promoter.
as
it Thrift Investment Corp., Pittsburgh, Pa.
Dec. 3 (letter of notification) 25,000 shares of convertible
preferred stock (no par). Price—$10 per share.-Proceeds
—To reduce bank loans and for expansion of business.
loans
&
1,000 shares of class A
to be offered for subscription
(par $25)
Hawthorne Ave.,
Oct.
to three
stock
2,679 % shares of class A common stock and 13,750 shares
of class B common stock (par $1) to be issued to G. L.
1967, and 250,000 shares of com¬
(par $1). Price—To be supplied by amend¬
stock
Sioux Falls, S. D.
(letter of notification)
24
by stockholders; 6,226V2 shares of class A common stock
in
exchange for leases and beneficial interest; and
ment. Proceeds—From sale of
warrants
8
share.
Coil
19 filed
Rossmann & Co., both of New York.
Sept. 25 filed 250,000 shares of common stock (par $1).
Price
$2 per share.
Proceeds — For machinery and
equipment and new construction.
Business—Production
of heavy duty power transmission
chain, prockets, gears,
etc.
be
The company on Dec. 5 filed a letter of notification
the SEC covering 1,200,000 shares of common stock
debentures due Dec. 1,
mon
•
Pittsburgh Reflector Co.
Dec. 2 (letter of notification)
Underwriter—To
fering—Tentatively postponed. Statement may be with¬
Dec. 1
stock
Proceeds
buy property for oil prospecting.
Proceeds—For
^
,
Statement effective Nov. 12.
Service, Inc. (Texas)
(letter of notification) 100,000
To
Tex.
held. Rights
Sinclair Oil Corp.
Peoples Gas Light & Coke Co.
one
Production Co.
writer—None.
Signode Steel Strapping Co., Chicago, III.
Virginia St., Reno, Nev.
Oct. 24 filed 186,715 shares of capital stock being offered
for subscription by stockholders of record Nov. 19 at rate
of
$3,750,000 convertible sinking fund deben¬
1, 1967. Price—To be supplied by amend¬
tures due Oct.
York.
Paradise
Productions, Inc., Newport, R. I.
Sept. 8 (letter of notification) 5,000 shares of non-voting
common stock, series B (no par).
Price—$10 per share.
Proceeds—To acquire real estate and buildings, convert
sound stages, install recording equipment and cameras,
and for other corporate purposes. Office—73 Bliss Road,
Newport, R. I. Underwriter — Kidder, Peabody & Co.,
Providence, R. I.
Pacific Western Oil Corp.
Aug. 5 filed
General
Proceeds—To drill and equip wells.
working capital. Office — 945 South Flower St., Los
Angeles 15, Calif. Underwriter—None.
filed
3; rights to expire on Dec. 30. American Telephone &
Dec.
For working
2,500,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds—
Clifton
Co., Los Angeles, Calif.
Nov. 14 (letter of notification) 14,000 shares of common
stock (par $1). Price—$20.75 per share. Proceeds—For
Pacific
24
—
filed
4
common
Stock Purchase Plan for
Oct.
Texas
June
Nov.
Dec. 5 filed $1,000,000 of
per
to
Proceeds
capital. Underwriter—F. W. MacDonald & Co., Inc., New
York.
Offering—Probaby some time in October.
Fremont, Neb. Underwriter—None, but Ellis, Holyoke &
Co., Lincoln, Neb., will act as broker.
unJLt. Proceeds—For drilling of additional wells
wells. Underwriter—M. S.
Gerber, Inc., New York.
$52
■and
July 29 filed 375,000 shares of common stock (no par).
Price—To be related to quotation on the Toronto Stock
Texas
Schweser's
Oct.
Ltd., Calgary, Alta., Canada
Northland Oils,
Nov.
Oils, Ltd., Toronto, Canada
Sweet Grass
market. Underwriter—None.
59,000 shares of beneficial interest.
—For investment.
Underwriter—None.
Dec. 8 filed
Underwriter—None.
Chicago 13, 111.
drawn.
Price—To be supplied by amendment.
ceeds—To
will
Detroit, Mich.
filed
28
Canadian).
New
it Northeast Investors Trust,
Proceeds—To in¬
share.
per
equity capital to take care of increased business
and increased costs.
Office—4101 Ravenswood Avenue,
crease
Sapphire Petroleums Ltd., Toronto, Canada
19
Underwriter—Smith, Hague & Co.,
Thursday, December 11, 1952
Exchange at time of offering.
Inc.
stcok (par
Detroit, Mich.
(letter of notification) 34,800 shares of common
($5 er share). Proceeds—To liqui¬
date notes. Office—8129 Lyndon Ave., Detroit 21, Mich.
Nov.
stock.
Office—35-37 N. Washington
Underwriter—None.
writer—None.
Underwriter—None.
poses.
Stores,
Safeway
Telephone & Telegraph Co.
Nov. 20 filed 232,558
of
Rochester, N. Y.
Street,
New England
for
working capital, etc.
—For
...
Price—$100
shares held.
Inc.
(letter of notification) 750 shares of 6% cumula¬
tive preferred stock (par $100) and 750 shares of com¬
mon stock
(par $10) to be offered in units of one share
of each class of stock.
Price—$100 per unit. Proceeds
Dec. 8
(letter of notification) 4,000,000
21
Nov.
Chronicle
The Commercial and Financial
(2256)
I
T1^.
Kn
niinrilia^
Kv
omon^l.
Volume 176
Number 5176
...
The Commercial and Financial Chronicle
(2257)
ment.
Proceeds—From sale of units and 1,125,000 addi¬
common stock and private sale of
$55,000,000 first mortgage bonds, to be used to build a 1,030mile crude oil pipeline.
Underwriters—White, Weld &
Co. and Union Securities Corp., both of New York. Of¬
fering—Not to be made until after Jan. 1, 1953.
tional shares of
•
West Coast Pipe Line Co., Dallas, Tex.
Nov. 20 filed 1,125,000 shares of common stock
after Jan.
Offering—To be made
1, 1953.
cents).
Beane, White, Weld & Co. and R. W. Pressprich
& Co. (jointly); Morgan Stanley & Co. For debentures,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
•
Consumers
Nov. 26 it
Power
Price—$10
stock (par 50
Proceeds—To nine selling
share.
per
Miami, Fla.
Business—Amusement park.
rights to expire
Is
owner
(12/15)
preferred
able bidders:
subscription by
common
stockholders
at rate of
share
record
Dec.
15
preferred stock for each 20 shares of
one
common
Culver
Corp., Chicago, III.
John
Himes
R.
for
services
rendered).
Proceeds—For property
Office—349 Plant Ave., Tampa,
equipment expenses.
Pla. Underwriter—Louis C. McClure & Co., Tampa, Fla.
Wisdom Magazine, Inc., Beverly Hills, Calif.
Sept. 17 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
stock. Price—$110
common
unit. Pro¬
ceeds—To publish new national picture magazine. Un¬
derwriter—None. An earlier registration statement filed
July 14, 1952, covering a like offering of preferred and
common shares was withdrawn
Aug. 1, 1952.
per
Wyoming National Oil Co., Inc., Denver, Colo.
Sept.
it
3
Utilities
and
leases. Underwriter
gas
Yardley Water & Power Co.
5 (letter of notification) 2,000
Price—At
($50
par
construction.
per
a
share-for-
Underwriter—None.
—
R.
L.
shares of
share).
common
Proceeds—For
Office—College Avenue, Yardley, Pa.
Underwriter—None.
that
amended
plan
of
amount
bidders:
Halsey, Stuart & Co. Inc. (for bonds only);
Brothers; Estabrook & Co. and Stone & Webster
Securities Corp. (jointly); Glore, Forgan & Co. and Har¬
riman Ripley & Co., Inc. (jointly).
Nov. 20 it
was announced
company may offer early next
$10,000,000 of preferred stock. Proceeds—To repay
$8,000,000 of bank loans and for construction program.
year
Underwriters—May be determined by competitive bid¬
ding. Probable bidders: Blyth & Co., Inc.; Kidder, Pea¬
body & Co.; White, Weld & Co.; The First Boston Corp.;
Lynch, Pierce,
will vote
Fenner
Jan.
20
&
Beane.
Meeting
authorizing
on
an
—
issue
$20,000,000 preferred stock.
Underwriter—Gearhart
&
Otis,
Inc.,
New York.
Garrett
Oct. 17 it
for
Freightlines, Inc.
(12/29)
announced company
outstanding debentures and preferred stock and for new
equipment and working capital. Underwriter—Allen &
Co., New York; Peters, Writer & Christenson, Denver,
Colo.; and Edward D. Jones & Co., St. Louis, Mo.
The
Nov.
acted
ers
as
Boston
Corp., and A. E. Ames & Co., Ltd.,
dealer-managers in stock offering to stockhold¬
in Oct. 1951.
-A: Bank of the Manhattan Company
Dec. 2 it was reported Bank plans offering of
250,000
•additional shares of capital stock to its stockholders on
a
one-for-ten
Boston
basis.
Underwriter—Probably The First
Corp., New York.
California
Oct. 7
it
was
Electric
Power Co.
intends to sell early
approximately $10,000,000 of additional new se¬
curities, viz: $8,000,000 of first mortgage bonds and
about $2,000,000 of common or
preferred stock. Proceeds
—For
new
construction
ding.
Probable
&
Co.
foonds
and
IBeane
and
bidders: (1) For bonds only—Halsey,
Inc.; Salomon Bros. & Hutzler. (2) For
stocks:
Dean
Merrill
Witter
&
Lynch,
Co.
Pierce,
Fenner
&
(jointly); Kidder, Pea-
Ifoody & Co.; Blyth & Co., Inc.
Central
Maine
Power
Co.
tSept. 2 it was announced company soon after March 1,
:i953, intends to issue and sell $6,000,000 of first and
/general mortgage bonds and sufficient common stock to
;yield approximately $5,000,000 to refund the then out¬
standing short-term notes. Underwriters—To be deter¬
mined by competitive bidding. Probable bidder—(1) For
bonds, Halsey, Stuart & Co. Inc.; Coffin & Burr, Inc. and
The First Boston Corp. (jointly); Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane and
riman
Ripley
&
White, Weld & Co. (jointly); Har¬
Co.,
Inc.; Salomon Bros. & Hutzler.
<2) For stock, Blyth & Co., Inc. and Kidder, Peabody &
Co. (jointly); Coffin & Burr, Inc. and The First Boston
Corp. (jointly); Harriman Ripley & Co., Inc.
•
Charter Oil
Co., Ltd.
be
named
to sell around
later
$49,000,000 of bonds, debentures and pre¬
ferred stocks and GPU will furnish about
$16,000,000 to
them. GPU expects to obtain the funds from bank loans,
the sale of debentures, the sale of common stock or a
well
into
these.
of
next
year,
If present conditions
continue
GPU would expect to offer addi¬
tional shares to stockholders rather than resort
in
1953
was
to bor¬
some
To repay
Michigan Electric Co.
bank loans and for
writers—May
be
construction.
new
Under¬
determined
by competitive bidding.
(1) for bonds—Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; The First Boston Corp.; Union
Securities Corp.; Harriman Ripley & Co., Inc.
(2) for
preferred—Lehman Brothers; The First Boston Corp.;
Smith, Barney & Co.
Probable
bidders:
Iowa-Illinois
Nov.
26
$8,000,000
first
preferred
stock
loans
Gas
directors
and
for
& Electric
approved
mortgage
Co.
plans
bonds
(par $100).
new
(around
$1.70
and
issue
60,000
construction.
sell
shares
repay
of
bank
Underwriters—To
be
Columbia Gas System, Inc., N. Y.
Oct. 10 it was announced company plans to issue and sell
common
stock and additional debentures early in the
Spring of 1953.
Proceeds—To repay bank loans and for
construction program.
Company has sought SEC author¬
ity to borrow from banks an aggregate of $25,000,000.
Underwriters—To be determined by competitive bidding.
announced that company intends to bor¬
from
The
Chase
National
Bank
of
the
City of New York, the loan to be later funded
through
form of permanent
financing. Probable bidders for
bonds: Halsey, Stuart & Co.
Inc.; White, Weld & Co.,
Kidder, Peabody & Co. and Shields & Co. (jointly). .
1
it
was
reported the company plans issuance and
Spring of 1953 of $10,000,000 first mortgage
Underwriters:—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
W. C. Langley & Co. and The First
Boston Corp. (joint¬
ly); Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Glore.
Forgan & Co.; Lehman Brothers; Equitable Securities
Corp.; Union Securities Corp. and Salomon Bros. &
Hutzler
(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Harriman Ripley & Co., Inc.
sale
in the
bonds.
Narragansett Electric Co.
Oct. 7 it
was
reported company plans issuance and sal©
of about
$10,000,000 first mortgage bonds, series D. Pro¬
To repay bank loans and for
—
new constructionUnderwriters—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and
Glore, Forgan & Co. (jointly); Salomon Bros.
&
Hutzler; Kidder, Peabody & Co. and Stone & Web¬
Securities Corp.
(jointly); Lehman Brothers and
Goldman, Sachs & Co. (jointly); Union Securities Corp.:
The First Boston
Corp.; White, Weld & Co. Offeringster
Expected late this
National
year or
early in 1953.
City Bank of Cleveland
(1/13)
Dec. 5 it was announced
company plans to offer to
stockholders of record about Jan.
2, next, 125,000 addi¬
tional shares of capital stock
(par $16) at the rate of one
new share for each six
shares
held; rights to expire on
Offering is subject to approval of stockholders
Price—$36 per share. Proceeds—To increase
capital and surplus.
Underwriter
Merrill, Turben &
Co., Cleveland, Ohio.
Feb.
2.
Jan. 13.
New
Orleans
Public Service
Inc.
July 24 company announced plans to issue and sell
$0^000,000 of first mortgage bonds due Dec. 1, 1982. Pro¬
ceeds—For
construction.
new
Underwriters—To be de¬
termined
by competitive bidding.
Probable bidder*:
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Kidder,
Peabody & Co. and Stone & Webster Securities
Corp.
(jointly); Equitable Securities Corp.; Union Securities
Bids—Originally scheduled to be received on
Corp.
Dec.
15 have been postponed
the first quarter of 1953.
• New York
Central
Bids will be received
to
noon
(EST)
on
dated
from
around
the
end
of
RR.
(12/17)
bfy the company in New York
up
Dec.
$11,625,000 equipment
be
until
17
for the purchase from
certificates, 1953 series, to
Jan. 1, 1953 and to mature
$775,000 annually,
1954 to 1968, inclusive.
Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
31
it of
trust
Halsey,'
York, New Haven & Hartford
it
was
announced
company
RR.
(1/7)
plans to issue and
sell $14,000,000 of bonds.
Proceeds—Together, with other
funds, to refund $14,482,000 Harlem River & Port Chester
first mortgage 4% bonds due
—To be determined
May 1, 1954. Underwriter
by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Kuhn, Loeb & Co.; Morgan Stanley & Co.; The
bidders:
Co.;
First Boston
Corp.; Smith, Barney & Co.; W. C. Langley
Bids—Expected to be received on or about Jan. 7.
& Co.
by competitive bidding. Probable bidders:
bonds, Halsey, Stuart & Co. Inc.; Harriman, Ripley
Inc., Union Securities Corp. and White, Weld &
Co. (jointly); Equitable Securities
Corp.; Glore. Forgan
& Co.; Harris, Hall & Co.
(Inc.); Lehman Brothers;
Blyth & Co., Inc.; The First Boston Corp.; Smith, Barney
& Co.
For preferred, Blyth &
Co., Inc.; Merrill Lynch,
Pierce, Fenner & Beane; Glore, Forgan & Co.; Lehman
Sept. 18 it was reported company may issue and sell
shortly after the close of this year some additional pre¬
ferred and
stock. Underwriters—May be Cen¬
(Inc.), Blyth & Co., Inc. and Merrill
Lynch, Pierce, Fenner & Beane.
common
tral Republic
Co.
For
&
Ohio
Co.
Edison
(par $100) and 479,846 additional shares of com¬
(par $12), the latter issue to be first offered
subscription by common stockholders of record Jan. V
stock
l-for-10 basis at
company.
(CST)
Dec.
2
on
it
received
at
11
a.m.
Jan. 27.
was
reported
raise about $2,000,000
stock).
be
company
(about 60%
plans late in
1953
to
in bonds and 40%
in
Underwriter—Blyth & Co., Inc., New York.
Kansas
City Power & Light Co. (1/20)
19, H. B. Munsell, President, announced company
to issue and sell $12,000,000 of first mortgage
bonds. Proceeds—To repay bank loans and for new
construction. Underwriters—To be determined by com¬
Nov.
plans
(1/13-1/7)
stock
mon
for
on
to
Co.
Nov. 20 company sought SEC authority to issue and
sell,
early in 1953, of 150,000 additional sha 'es of preferred
Corp. (jointly); Kidder, Peabody & Co.; Harriman, Rip¬
ley & Co. Inc. Registration—Expected late in December.
it Jamaica Water Supply Co.
—
was
Northern Indiana Public Service Co.
and
determined
balance to be offered in Canada.
Not expected until after Jan. 1, 1953.
Offering
c
a
(1/27/53)
to
Proceeds—To
Bids—Tentatively scheduled
per
& Co.
was
$2,800,000
Oct.
reported company plans to issue and sell
bonds and/or preferred stock. Proceeds—
share).
Proceeds—For expansion program.
Underwriters—Leh¬
man Brothers and Bear, Stearns & Co. for about 800,000
shares;
row
New
Indiana &
(R. H.)
Missouri Power & Light Co.
rowing.
Nov. 6 it
Boston
reported company may do some
financing
in 1953 in the form of
debentures or long-term bank
loans.
Previous financing was done
privately through
Lehman Brothers.
;
Brothers; Salomon Bros. & Hutzler and Union Securities
Nov. 18, it was reported that company plans to offer and
sell 900,000 additional shares of common stock (no par).
Price—To
15, A. F. Tegen, President, announced that its do¬
subsidiaries may spend around $80,000,000 for
new construction in 1953.
Of this total, $15,000,000 will
be provided internally leaving about $65,000,000 to be
financed by the sale of securities.
Subsidiaries expect
mestic
and
repayment of bank loans.
Underwriters—May be determined by competitive bid¬
Stuart
General Public Utilities Corp.
combination
announced company
in 1953
Macy
Nov. 13 it
authority to issue and sell $1,100,000 6% convertible
Oct. 15 directors expected that additional financing will
fee undertaken in 1953 to meet the major part of the in¬
crease in the estimated cost of the
expansion program.
First
First
—
has applied to ICC
debentures due 1967. Price—At par. Proceeds—To retire
Aluminium Ltd.
The
Hutzler and Union Securities
Corp. (jointly); Equit¬
Securities Corp.;
Lehman
Brothers
and
Bed#,
Stearns & Co.
(jointly); Harriman Ripley & Co., Inc.
Bids—Tentatively scheduled to be received on Jan. 20.
on
was
(jointly);
able
•
European American Airlines, Inc.
was reported company plans to raise an ad¬
ditional $400,000 of equity capital. An issue of $200,000
of capital stock was just recently placed privately at
share.
Co.
ceeds
Equitable Gas Co.
per
&
&
Lehman
$7.50
Freres
Corp.; White, Weld & Co. and Shields & Co.
(jointlyJ;
Smith, Barney & Co.; Kuhn, Loeb &
Co., Salomon Bro«.
Dec.
reor¬
of common stock to raise approximately
plan further provides that Blackstone Valley
Co., Brockton Edison Co., and Fall River
Electric Light Co. issue mortgage bonds. Proceeds—To
repay bank loans.
Underwriters—For EUA debentures
may be determined by competitive bidding.
Probable
•
Prospective Offerings
Lazard
• Monongahela Power Co.
Associates
June 11 it
Dec.
mew
on
Gas & Electric
Merrill
Hughes & Co., Denver, Colo.
stock.
stock
common
ganization of this company and subsidiaries calls for is¬
suance by company of
$7,000,000 debentures and a suffi¬
Stockholders
oil
that company proposes to
about Jan. 26, 1953, a total of
announced
was
of
500,000 shares of common
(par five cents). Price—25 cents per share. Pro¬
For
or
Street, Chicago, 111.
Eastern
Nov. 17 (letter of notification)
—
on
basis; rights to expire Feb. 9.
Price—At par ($2
share). Proceeds—For investment. Office—105 West
Madison
.•stock
ceeds
announced
was
bidding. Probable bidders: Halsey, Stuart &
Inc.; Glore, Forgan & Co.; Blyth & Co., Inc. and
Co.
Nov. 24 it
$2,000,000.
common
share).
per
and
it
(1/26)
share
cient
(of which 1.250 shares will be issued to Dr. Samuel
($10
22
of
writer—White, Weld & Co., New York.
^ Westshore Hospital, Inc., Tampa, Fla.
JDec. 3 (letter of notification) 30,000 shares of
share of
supplied by
Lehman
23,640 additional shares of
stock held.
Price—To be supplied by amendment. Proceeds—To re¬
tire outstanding preferred stock and bank debt. Under¬
one
l-for-10 basis;
be
Brothers; Morgan Stanley & Co.;
Ripley & Co. Inc. and the First Boston Corp.
(jointly). Bids—Tentatively expected to be received on
Jan. 14. Registration—Expected about Dec. 16.
per
stock (par $30) to be offered for
and
a
Proceeds—For expansion program. Under¬
waters—To be determined by competitive bidding. Prob¬
of
Underwriter—Floyd D. Cerf
Chicago, 111.
Western Natural Gas Co., Houston, Tex.
Nov. 25 filed 183,002 shares of convertible
Hibbs
on
common
petitive
amendment.
offer to stockholders
Price—At par
offer 617,669
(no par) to
Jan. 30. Price—To
on
Nov.
stock
stock
stockholders of record about Jan. 14
West Flagler Kennel Club.
<G.
(1/14)
common
Jr. Co., Miami, Fla., and
of
Co.
announced company plans to
was
Harriman
West Flagler Amusement Co., Inc.,
Nov. 20 filed 170,000 shares of common
stockholders.
&
additional shares of
(par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line.
Underwriters—White, Weld & Co. and Union Se¬
curities Corp., both of New York.
Probable bidders: For stock, Merrill Lynch, Pierce, Fen¬
ner
41
a
a price to b:
determined by th©
Proceeds—To finance construction program.
Underwriters
To
—
be
determined
by
competitive
bidding. Probable bidders: (1) For perferred stock:
Morgan Stanley & Co.; Lehman Brothers and
Bear,
Stearns & Co.
(jointly); W. C. Langley & Co.; Gin 2,
Forgan & Co. and White, Weld & Co. (jointly); The First
Boston Corp.
(2) For common stock: Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); Lehman Brothers and Bear, Stearns & Cck
(jointly); Morgan Stanley & Co.; The First Boston Corp.
Bids
For preferred, expected Jan.
13; for common
—
Jan. 7.
*
-rr*. ■*
Continued
on
page 4£
42
The Commercial and Financial Chronicle
(2258)
ner
(1/20/53)
Ohio Power Co.
i
plans to issue and sell
Oct. 28 it was reported company
$22,000,000 of first mortgage bonds
and 100,000 shares of
(par $100). Proceeds
To repay bank
loans and for new construction.
Underwriters — To be
determined by competitive bidding. Probable bidders.
preferred stock
Sinclair Oil
Oct.
bonds, Halsey, Stuart & Co., Inc.; The First
Union Securities Corp. and Salomon Bros.
Hutzler (jointly); Kuhn, Loeb & Co., Harriman Ripley
Co., Inc. and Stone & Webster Securities Corp.
For
(1)
&
&
bank
of
it
13
stock
common
at
issue and
one-for-ten
both
tric
New
of
Nov.
it
California
Edison Co.
Quinton,
(1/15)
Toledo
Executive
plans
company
Vice-President, an¬
issue and sell 500,000
to
stock.
common
Proceeds—For
Oct. 3 it
bonds, to be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp. and Salomon Bros. & Hutz¬
ler (jointly); Carl M. Loeb, Rhoades &
Co.; Kidder, Pea¬
body & Co.; The First Boston Corp. and Glore,. Forgan
(jointly); Union Securities Corp.; Smith, Barney
Co.; White, Weld & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Lehman Brothers. The com¬
mon stock offering may be
underwritten by The First
Boston Corp. In 1950, the following
group bid for com¬
bonds
as
Co.
&
&
may
mon stock issue: Merrill
Lynch, Pierce, Fenner & Beane;
Blyth & Co., Inc.; Smith, Barney & Co. and Collin, Nor¬
ton
& Co.
(jointly); Lehman Brothers, Harriman Ripley
Bear, Stearns & Co. and Carl M. Loeb,
Rhoades & Co. (jointly); W. C. Langley & Co. Offering
—Of bonds probably early in 1953; and of stock, late
be appropriate at the
&
Co.,
in
Probable bidders for bonds:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; The First Boston Corp., Blyth
& Co. Inc. and Kidder, Peabody & Co.
(jointly). Any
stock financing may be via stockholders.
1952.
—
both of New York.
Peoples Gas Light & Coke Co.
announced that company and each of its
other
debt
^Southern Railway
construction programs.
Dec. 5 it
Nov.
Underwriters—To be determined by
22
on
an
&
Bros.
Halsey, Stuart & Co. Inc.;
Hutzler; Kidder, Peabody & Co.
it
3
announced
&
writers—To
tures
be
determined
by competitive bidding.
Probable bidders: For bonds, Halsey, Stuart & Co. Inc.;
The First Boston Corp. and Coffin & Burr, Inc. (jointly);
Kidder, Peabody & Co.; White, Weld & Co.
For stock,
Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly);
Harriman Ripley & Co. Inc.
•
21
Co.
(jointly); W. C.
Corp. (jointly).
raise about $24,000,000 in the next two years
through sale of bonds, and preferred and common stock,
viz: $5,500,000 of first mortgage bonds and $5,500,000
prefererd stock in 1953 and $6,000,000 bonds, $6,000,000
preferred stock, and $1,000,000 common stock in 1954.
mon
pects to
The
3Y4%
top bid
interest
per
of the five
public
the
utility
year
•
went
"Man-o-War"
had
little
status
of
or
to
be
the
last
underwriting for
through like a
this
week.
effect
no
recent
But
on
it
the
offerings which
have been slow to catch
on.
New England Telephone & Tele¬
graph
its
Co.
received
five
bids
bids
was
over¬
-
„
-
,
number
of
issues which have
to
marketplace
Pillsbury
a
some
been
recent
laggard.
"Quickie"
had
Pillsbury Mills, Inc.'s offering
planned reoffering on almost the
of $17,000,000 of 20-year
sinking
same basis as fixed by the winner,
101.721 for
the
a
lowest group
fund
yield of 3.15%.
debentures
quick operation
Dealers
which
explained
market
the
the
resale
celerity
as
re¬
cast
on
inquiry.
the
proved
as
basis
another
had been fore¬
of
year
debentures.
And
the
range
of
bonds
stock.
of
and
An
from
banks.
bidding.
Co. and The First
preliminary
•' '
•
like
financing, if negotiated,
of
number
may
shares
of
common
early in 1954. Stock
be handled by The Fjrst
or
Boston
Corp. and Robert W. Baird & Co. Probable bid¬
bonds: Halsey,' Stuart & Co.
Inc.;"; The First
Boston Corp.; Union Securities
Corp.; Kidder, Peabody
& Co.; Shields &
Co.; Merrill Lynch, Pierce, Fenner &
ders
for
Beane; Harris, Hall & Co. (Inc.); Carl M. Loeb, Rhoades
&
,
Co.; Salomon Bros. & Hutzler.
annually year-end
through 1972.
little
a
Corp.
$2,000,000 to $3,000,000 of preferred
indeterminate
approaches
competition
is expected to be keen.
Reinvestment Demand
Next Week's Features
Corporations
needs
to
speculative
go
shaping
into
with
new
up can
money
be expected
registration
in
the
appeal
weeks ahead with a view to catch¬
bring public
offering of West Coast Pipe Line ing the "reinvestment demand"
which normally
develops during
Co.'s $20,000,000 of 12-year deben¬
1
tures with warrants for a share of January and February.
next week is slated to
common
for
each
$50
principal
Dividend payments
slightly ahead of last
amount of the debentures.
This underwriting is being un¬
dertaken to put the company in
funds to build a crude; oil pipe
customary
heavy
bursements
will
go
running
are
year,
and the
interest
out
over
dis¬
the
year-end, giving recipients a prob¬
lem of deciding how best to em¬
had" line from West Texas to California.
ploy such funds.
New
is
York
slated
to
Central
de¬
meanwhile
bids
One
company,
Southwestern
Public Service Co., already has in¬
dicated its intention of filing n£xt
for $11,- month for some $20,000,000 of new
Carrying a 3Ys % coupon and 625,000 of equipment trust cer¬
securities,
probably
$12,000,600
priced at 100%, the offering met tificates, and while there has been
bonds, $2,000,000 preferred ..stock
The issue had "name ap¬ with
quick oversubscription.
A slight backing up of such
paper, and the balance in common to be
and
the
maturity
fitted sinking fund provides for retire- along with
'
other_types,.jas the offered on a "rights" basis.
Falling into that category were
peal"
Service
stock may be offered late in 1953
■
1957
offering of $20,000,000 of 25- banks, pension funds and savings
of these tenders indicated that all
Public
the fact that this was a
Interest in
this business
"special" paper which ap¬ been building up steadily from the The stock warrants are not
pealed to institutions which have time of registration and the un¬ tachable until July 1 next.
not yet closed up their books.
dertaking was foreordained for
flecting
sort
Under¬
?
competitive
bidders:
ment of 5% of the bonds
from
but 17 cents noticeable interest in
by
was announced that
company plans permanent
financing prior to June 1, 1953, which may include the
issuance and sale of between $7,000,000 and
$8,000,000
Underwriter.
portfolios.
success.
for
a
l-for-15 basis.
a
Nov. 26 it
York.- Registration—,
i'_
into
on
determined
was
according
And
promises
nicely
First
-
com¬
an
101.411 for a
Even though it required but a
That of the few hours to bring oversubscrip-
was
$100 under the top.
discussion,
What
pretty rather
The
Corp.
Wisconsin
3 it was reported company plans to issue and sell
early in 1953 between $25,000,000 and $30,000,000 of first
mortgage pipe line bonds. Underwriters—May be deter-
to
be
There isn't too much fat left on
only seven cents tion, the quick success of this
$100 lower while the lowest operation failed to generate any this year's hog but for those who
runners-up
per
New
and
W. C. Langley &
(jointly); Lehman Brothers and Goldman,
Co. (jointly); and Harriman Ripley & CoInc.
Registration—Expected late in December.
if Tennessee Gas Transmission Co.
of reasoning,
rate.
Probable
Boston
Dec.
disposed
line
(with
construction.
new
& Co. Inc.,
Expected in January, 1953.
(jointly); Stone & Webster Securities
Corp.; Lehman Brothers, Bear, Stearns & Co. and A. C.
same
basis
Co.
&
Sachs &
(about 293,500 shares) to
l-for-12
a
—Dillon, Read
Hutzler
were
on
early in February
writers—To
privilege). Bond and preferred stock fi¬
previously done privately. Proceeds—To
nancing was
repay back loans and for
expansion program. Underwriters — For
bonds and preferred stock may be determined, by com¬
petitive bidding. Probable bidders: (1) For bonds—Hal¬
sey, Stuart & Co. Inc.; First Boston Corp. and Salomon
much the
stockholders
subscription
Proceeds—For
groups
holders
may
was
reported that the company's financing
tentatively involves offering early in 1953 of
$12,000,000 bonds and $2,000,000 preferred stock in addi¬
tion to about $5,500,000 to be raised from the sale of
stock
Langley
was reported
company plans to offer about 264,000 additional shares of common stock to common stock¬
it
common
share.
per
if West Penn Electric Co.
program
additional
$32
—
and surplus. Underwriter
Dec. 1 it
(in addition to .the
Southwestern Public Service Co.
Nov.
Rockland Light & Power Co.
&
arises
include Halsey,
& Co. Inc. and Morgan Stanley & Co.
Nov. 12, F. L. Lovett, President, announced company ex¬
Bros.
need
issued, probable bidders
are
Stuart
the
16. Price
Securities Corp. and Lehman Brothers (jointly);.
Blyth & Co., Inc., Smith, Barney & Co. and White. Weld *
proposed issuance to its parent, American Telephone &
Telegraph Co., of $85,000,000 common stock.
If deben¬
as
on
Union
if Southwestern Bell Telephone Co.
applied to the Missouri P. S. Commis¬
issue and sell $186,000,000 of addi¬
securities
100,000 additional
a
one-for-five
$10)
3 it was reported company ma.y issue and sell in
June, 1953, $10,000,000 of first mortgage bonds and be¬
tween $14,000,000 and $18,000,000 of debentures. If com¬
petitive, bidders may include: Halsey. Stuart & Co. Inc.;
sion for authority to
tional
(par
for
Dec.
Nov. 28 company
company
stockholders of record
subscribe
stock
—Equitable Securities Corp., Nashville, Tenn.
Salomon
plans to issue and
$5,000,000 of bonds in May or June,
1953, and in the latter part of 1953 to issue sufficient
common shares to raise about $4,000,000.
Proceeds—To
repay bank loans and for new
construction. Under¬
was
sell approximately
to
if Washington Water Power Co.
Boston
Public Service Co. of New Hampshire
right
common
Bank, Memphis, Tenn.
common
basis; rights to expire Dec.
(1/22)
bidders:
the
of
National
offered
Proceeds—To increase capital
reported company expects to open bids Jan.
issue of $3,600,000 equipment trust certificates.
Probable
competitive bidders.
Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
25
shares
was
Probable bidders:
Planters
Dec. 1 company
joint 25-year mortgage bonds due Nov. 1, 1977. Proceeds
—For refunding.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co.; Morgan Stanley & Co.;
Kidder, Peabody & Co.
Bids—To be received by John
B. Hyde, Vice-President,
Room 2018, 70 Pine Street,
New York 5, N. Y., up to noon (EST) on Dec. 11.
Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades & Co.,
Nov.
Inc.,
Union
Southern Ry. (12/11)
it was announced company, and New Orleans &
Northeastern RR. plan to issue and sell $15,000,000 of
Nov. 2
(probably around 500,000 shares to be offered to stock¬
holders on a l-for-2V2 basis. Price—About $7 per sharfe.
Proceeds
For construction program.
Underwriters —
or
additional
time.
Sulphur Co., Dallas, Tex.
bonds
Co.
company to construct pipeline
cost
$32,518,500.
On Sept. 15
announced that the company expects to
to
securities in such amounts
23, J. R. Patten, President, said that it is planned
float an issue of over $3,000,000 of common stock
mortgage
been
Gas
stock. Proceeds—For construction program. Un¬
common
during the first six months of
permissible under its mortgage
indenture, and to provide for other permanent financing
by the sale of additional first mortgage bonds or other
Oct.
issue
Natural
Co.
reported company plans issue and sale of
first mortgage bonds and 500,000 shares of
derwriters—For
authorized
estimated
Edison
was
$7,500,000
new
Underwriters—To be determined by com¬
1953 in the amount then
Financing is expected to consist of first
mortgage pipe line bonds and preferred and common
stocks, and is expected to be completed by April, 1953.
Underwriters—White, Weld & Co. and Kidder, Peabody
& Co., both of New York, and Dominion Securities Corp.,
Ltd., Toronto, Canada.
will
had
sell
is $179,000,000.
securities. Proceeds—To finance
FPC
3
facilities
Estimated overall capital cost of the project
subsidiaries
Service Co. plan new financing totaling about
$53,to finance, in part, a $69,500,000 construction
000,000
Registration—To be filed Dec. 12.
Southern
was
was reported that this
company, Texas Power
Co., Dallas Power & Light Co. and Texas Elec¬
& Light
—
Pacific Northwest Pipeline Corp.
Oct. 24 it
construction,, etc.
if Texas Utilities Co.
petitive bidding. Probable bidders may include Blyth &
Co., Inc.; The First Boston Corp.; White, Weld & Co.
Bids
Tentatively expected to be received on Jan. 15.
by
Pan-American
new
Nov. 26 it
Underwriters—Smith, Barney & Co. and
that
construction.
Aug. 29 company filed a second substitute application
with the FPC proposing to construct a 1,384-mile trans¬
mission line extending from the San Juan Basin in New
Mexico and Colorado to market areas in the Pacific
Northwest.
For
—
Underwriter—Moroney, Beissner & Co., Houston. Tex.
& Co. and Harriman Ripley & Co., Inc.
ney
25,000 shares of 6%
($20 per share). Proceeds
stockholders at rate of $100 of deben¬
shares of stock held. Price—To be de¬
additional shares of
competitive bidding. Probable bidders:
Lehman Brothers; The First Boston Corp.; Smith, Bar¬
to
subor¬
time in January. Registration—Expected
Harold
2
nounced
(2,411,945
determined
(12/12)
announced
program.
shares of common stock outstanding).
Proceeds—For new construction. Underwriters—May be
basis
18.
Southern
a
issue and
convertible
Lynch, Pierce, Fenner & Beane,
Registration—Expected Dec. 19.
Jan. 20 at 11 a.m.
about
plans to
Merrill
York.
announced company plans to
was
new
was
a
some
Dec.
after
Dec.
additional
of
Telephone Co.
it
which
later date. Proceeds—To retire $40,000,000
loans and for expansion program.
Offering-
Expected
Oklahoma Gas & Electric Co.
sell
company
$101,758,900
comon
termined at
(EST). Registration—Scheduled for Dec. 18.
Nov.
of
25
company plans to issue, and
cumulative preferred stock of
15,000 shares will be offered publicly to residents
of Texas only and 10,000 shares will be sold to Citizens
Independent Telephone Co., an affiliate. Price—At par
sell
announced
was
scription to
and Salomon Bros. & Hutzler (jointly). Bids—
Tentatively expected to be received on
Texas
Nov.
Corp.
tures for each 12
The First Boston Corp.; Union Securi¬
Lehman Brothers;
it
total
a
White, Weld & Co. (jointly).
dinated debentures, which are first to be offered for sub¬
(jointly); BIyth & Co. Inc.; Glore Forgan & Co. (2)
For preferred stock, Blyth & Co., Inc.; Dillon, Read &
Co., Inc.; Harriman Ripley & Co., Inc. and Stone &
Webster Securities Corp. (jointly); Glore, Forgan & Co.;
ties Corp.
28
sell
Boston Corp.;
Thursday, December 11, 1952
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Stone & Webster Securities
Corp. and
Allyn & Co., Inc. (jointly); Merrill Lynch, Pierce, Fen& Beane; Estabrook & Co. (2) For preferred—Stone
& Webster Securities Corp.; Lehman Brothers; W. C.
Langley & Co.; Estabrook & Co. and Kidder, Peabody &
Co. (jointly).
Common stock will probably be offered
for subscription by stockholders.
41
Continued from page
...
,
open
,,
Volume 176
Number 5176
.
.
The Commercial and
.
Financial Chronicle
(2259)
With Williams Inv. Co.
American Nat'l of
Chicago Elects
Herbert
elected
F.
director
a
Gatzert
has
and
National
been
Walter
Vice-President
a
American
Trust
Murphy
of
A.
the
Bank
and
JACKSONVILLE, Fla.
jamin
x.ir.
Murphy
a
and
Co.
is
director
and
James
Company,
Barnett Building.
Kurtz,,
phone
replaces William O.
former
Executive
Vice-
Company,
from
the
tors
bank's
after
spends
from
Hamershlag,
and
11
who
is
of
Chicago.
his
Mr.
direc¬
Exchange,
Gatzert
mail
and
from
company,
he
store
1933
became
In
20
City,
York
Stock
will
admit
1,
of
main
office
four
past
G.
in
announced
two
new
Hackett,
adviser
Mr.
R.
Montreal
as¬
the
since
for
the
William
and
years,
bank's
1943.
has
in
become
affiliated
succeed
for the
Love
etta
in
County
the
claims
for
Marietta,
of
Bank
Oklahoma
All creditors
therefore
are
National
State
hereby
of
the Association
notified
payment to
the
closing
CALUMET
&
HECLA,
with
A
dividend
be
of
paid
fifteen
NO.
INC.
to
present
undersigned,
at
Oklahoma.
the outstanding Capital Stock of the Calumet
Hecla, Inc.,
at the close of business December
Checks will be mailed irom the Old
1952.
Cclcny Trust Company,
NOTICES
J.
Boston,
Mass.,
Boston,
H.
Mass.
ELLIOTT,
December
regular
Wis., December 8,
dividend
holders
year-end
of
of
1952
record
December
87l/2C
12, 1952 and a
share upon the
per
NOTICES
The
Board
of
Directors
DIVIDEND
EQUIPMENT CORP.
Bryan, Ohio
•
The Board of Di¬
rectors
B.
PETERS,
Secretary.
SUPERHEATER, INC.
December 5,
THE
business
December
OTTO W.
12,
1952.
W.
ary
holders
of
record
STRAUSS, Treasurer.
quarterly
L.
1952
HAWK
a
meeting
Directors held
Sec.-Treas.
idend
of
share
on
Stock
the
AMERICAN
mu
Board
the
Directors
of
following dividends
A
EXTRA
share, payable
per
the
on
dividend
the close of business December
REGULAR
of 40c
ber
per
Board
QUARTERLY
share, payable
cents
22,
17,
1952.
12,
&
(50C)
dividend of
share
a
the year
ber 29,
record
on
the Capi¬
close
of
business
19, 1952.
DIVIDEND NOTICE
declared
on the date below,
dividend of $1.00 per share on
a
the
capital stock without par value of this
corporation, payable December 24, 1952, to
stockholders of record at the close of busi¬
December
ness,
G. C. SCHEUERMANN, Treasurer
\
December 8, 1952
CORPORATION
1952,
this
the
1952 and
The
DIVIDEND No. 42
the
(25(9
dividend of 30 cents per share on the
Common Stock of the Company, pay¬
able
extra
busi¬
divi¬
share
on
outstanding
December
the
of
of
December 31,
1952 to stock¬
ness on
December 19, 1952.
Board
of
busi¬
the
dend
of
7%
EATON, Treasurer
of
and
J.
The
15
15
cents
of
the
on
both
payable
1952.
dividends
holders
dividend
share
per
Stock,
27,
a
share
per
year-end
cents
December
J.
O'BRIEN,
payable
record
stock¬
to
December
V.
STEVENS,
19,
Secretary.,-.
Secretary
Electric Storage Battery
OLIVER
1952.
Common Stock Dividend:
The Board of Directors
209th Consecutive
Quarterly Dividend
The Directors have declared from the
Accumulated Surplus of the Company
year-end dividend for the
fifty
cents
($.50)
per
on
Reynolds Metals Building
Richmond 19, Virginia
a
a
COMMON DIVIDEND
The regular dividend of one dollar
thirty-seven and one-half cents
($1,375) a share on the outstanding
5
Preferred Stock Dividend:
the
The
Vi%
cumulative
tive Convertible Preferred Stock has been
of
15,
declared payable January 31, 1953, to
shareholders of record January 15, 1953.
December
at
December
on
1952. Checks will be mailed.
N,
ALVA W. PHELPS
Chairman of the
Philadelphia, December 5, 1952.
A. KING McCORD
President
record
share
yBoard
of
business
twenty-five cents (25<)
outstanding common
been declared
cember 24,
at
close
the
on
stock has
the
at
17, 1952.
A dividend of
a
H. C. ALLAN,
Secretary and Treasurer
pre¬
ending December 31, 1952,
payable January 1, 1953, to holders
quarter
the
business
convertible
ferred stock has been declared for the
regular quarterly dividend of
$1.12'/2 per share on the 4'/j% Cumula¬
of
DIVIDEND
PREFERRED
December 5, 1952.
1952 of
year
share
has declared
COMPANY
-
quarterly dividend of 60 cents per share
on the Common
Stock, payable January
2, 1953, to shareholders of record
( ^ jra
payable De¬
1952, to holders of record
the close of business December
17,
1952.
"V"
OLIVER
THE
1>
js.
payable
declared
1952.
company
-
m
LJJj
de¬
METALS
1952.
*
Stock
also
extra
an
All
has
quarterly divi¬
share
on
the
1, 4953.
Directors
dividend
-
December 9,1952
1952.
per
Preferred
The
Common
JEROME A
Directors
of
regular
$1.75
January
of
12,
record
close
on
holders of record at the close of busi¬
payable Decem¬
holders
at
12,
a
pay¬
of
per
stock
to be
The Board of Directors has declared
common
of
an
Cents
stock
December
Company
close
business
of
to
said
of
REYNOLDS
BRAMLEY,
■» m
Vice President and Treasurer
18, 1952. Transfer books
Checks will be mailed.
will remain open.
1952, to stockholders of record
DAVIS,
LANGLEY, Treasurer.
The Board of Directors
Common Stock, payable December 22.
M
C.
TOBACCO AND ALLIED STOCKS, INC.
Corporation for
1952 to stockholders of
the
December 24
the close of
Fifty
1952, payable Decem¬
at
at
LOUIS
ST.
Twenty-five
common
close
of
on
close
at
Decem¬
December 5,
of
has
per
of
27, 1952 to stockholders of record
GAYLORD
a
Directors
on
record
16, 1952.
This distribu¬
the final dividend in respect
the year 1952.
DIVIDEND NOTICES
Secretary.
17,1952.
at the close of business December
of
of
December
on
Capital
December 30,
FREDERICK
dividend
on
stockholders
.
of
December
on
to
final div¬
a
in respect of
payable in Ca¬
com¬
27, 1952 to stockholders of record
A
the
Montreal, December 8,
YEAR-END
40c
on
Directors of this company, at
day, declared a dividend
per share
on
the out¬
year-
Secretary.
shares
of
(10(9
of
the
of
as
JOHN
Ordinary
1952,
p.m.
declared
stock:
mon
a
authorized the
all
on
such dividends
By order of the Board.
has
New York 11, N. Y.
December 9, 1952.
declared
was
Y.
this
represents
earnings for
By order of the Board of Directors.
funds
on
February 27,
1953, to shareholders of record at
3.30
DIVIDENDS
TFie
of
today
the
Ten
Notice
seventy-five
year
N.
($1,00)
tion
NOTICE
1952,
share
shares
ness
nadian
CORPORATION
of
shares
RAILWAY COMPANY
At
of
held
Dollar
business
Board
COMPANY
dividend
a
per
of
ber
PACIFIC
Dividend
L.
Corporation
13th St.,
December
declared
Directors
outstanding
December
ness
1952,
business January 2, 1953.
Nov. 25,
of
ment
Cents
as
CANADIAN
of
November 29,
on
all
of
close
the
Board
dend
payable Janu¬
15th to share¬
at
One
1952,
Electric
Board
Meeting
of
standing capital stock, payable
Henri Sadacca
HAMILTON,
RAILWAY
The
stock
dividend of 20c per
share of common
Stock
The
a
Noma
clared
of
5,
401
1952.
MINNEAPOLIS
V
quarterly
dividend
of
seventy-five
cents
175c) per share on all the outstanding stock
of
the
Company has
been
declared
payable
January 22, 1953 to stockholders of record at
close
York
WAGNER BAKING
A
•he
New
DIVIDEND NO.
dividend No. 886 of sixty-five cents ($.65)
share of $12.50 par
value Capital Stock,
payable December 22,
1952 to stockholders of
record December
15, 1952.
Checks will be mailed by Irving Trust Com¬
pany,
Dividend Disbursing Agent.
JOHN
has declared
regular
a
Broadway,
end
Dividend No. 196
The ARO
Honduras Rosario
December 19,1952.
COMBUSTION ENGINEERING-
NOTICE
&
886
has
DIVIDEND
QUARTERLY
York
120
Secretary.
COMPANY
NO.
NOTICES
per
1
WM.
DIVIDEND
MINING
DIVIDEND
$12.50 par
value
Common
Stock
Company has
been
declared
payable
1, 1953 to holders of record December
this
12
j
1952
matters.
of
dividend cf
January
New
President
outstanding
G. C. McMAKIN,
Liquidating Agent.
DIVIDEND
.
1952.
4,
Mont¬
spoken
Can¬
on
NOTICES
Company
$1.75 per share upon
the outstanding Preferred Stock of this Com¬
pany has been declared payable January 1, 1953
to
DIVIDEND
tal Stock of this
($0.15) per share
26, 1952, to holders
of
and
economic
on
r~
cents
74
cents
December
on
HOMESTAKE
Racine,
A
extensively
written
Mining Company
NOTICES
&
Mari¬
at
is
has
During his
Bank
the
ada's National War Finance Com-
declared
15,
its affairs.
he
the
ap¬
of
The
(Incorporated)
The
Mr. Hackett has served
past two years,
cf
J. I. Case
real,
Board.
with
W.
Building.
NOTICE
was
the Wartime Indus¬
on
Control
service
Montreal district branches.
Mulholland, who has been
Ottawa
will
DIVIDEND
president
later
years
the
as
1944 he be¬
the
to
New
55 W.
Thornburgh Co., Union
con¬
served
superintendent
manager of the bank's main office
DIVIDEND
Trust
three
pointed
in
T.
CINCINNATI, Ohio—Robert O.
Buse
and
economic
To
also
Corner, the bank has named
D.
DIVIDEND
business.
LIQUIDATION
has
Thornburgh Adds
The W. C.
sultant and specialized in the oil
Montreal
appointment
(Special to The Financial Chronicle)
order
financial
a
the
of
Mr. Corner has had wide branch
W. C.
was
1951.
to
Jan.
on
MONTREAL, Canada.—The
Bank
he
assistant
came
away
Secretary and Treasurer of Spiegel,
retail
York
Co.,
Ryder Stern to partnership.
now
time
New
Street,
&
members of the New
John
and
years,
much
retiring
of
board
Broad
Borg
tries
where
and
bank's third agent. In
sistant general managers — Allan
T. Corner, manager of the bank's
Hamershlag, Borg Admit
Sears, Roebuck
Appoints Two
H.
O'Reilly have joined the staff of
Williams Investment
Vice-President
of
President of the Illinois Bell Tele¬
1951
Troemel
Company of Chicago.
and
Inc.
H.
mittee and
Newfoundland,
York
Ben¬
—
experience in Ontario, Quebec and
Bank of Montreal
(Special to The Financial Chronicle)
43
The transfer books will not be closed.
Checks will be mailed
CORPORATION
by
the Manhattan
Bank
of
Company.
ALLYN
Chicago, Illinois
DILLARD, Secretary
Dated, December 4, 1952
1952
GENERAL
TIME
TEXTILE and TIRE YARNS
CORPORATION
Mining and Manufacturing
Dividends
Phosphate
Potash
•
Industrial
Plant
•
Minerals
The Board of Directors has de¬
Foods
Amino
•
Chemicals
•
INTERNATIONAL
Products
*•
SHOE
clared the following dividends:
Dividends
PREFERRED
AMERICAN VISCOSE
CORPORATION
Dividend Notice
A
?
'
f
,
Directors of the
cose
on
December 3,1952, de¬
year-end dividend of
a
stock,
cent
pay¬
COMMON
dividend
cents
shareholders
(50()
per
share
on
the
50
cents
of
per
2, 1953
record
De¬
common
stock, payable
on
De¬
cember 23, 1952, to stockholders
Secretary-Treasurer
December 3, 1952.
of record at the close of business
A
December 12,1952.
-
-
WILLIAM H. BROWN
Secretary
BIG
HAYD0N
CONSECUTIVE DIVIDEND
are
Common Stock
stockholders of record
at
the
close of business Dec. 12, 1952.
Checks will he mailed.
Robert
A
the
P.
payable January 15,1953
outstanding 4V^%
lative preferred stock,
the
1953
Resch
payable
to
on
January 30,
stockholders of record
the close of business January
5, 1953,
was
declared by the
Board of Directors.
Company to holders of
Vice-President and Treasurer
& CHEMICAL CORPORATION
been
declared
15, 1953,
mon
on
stock
the par
Chicago 6
pre¬
December
26, 1952.
per
share has
payable
January
50<f
the outstanding
of
the
value of $1.00
per
of
share,
stock
of
on
to
holders
of
com¬
Company,
record at the close of business
December 26,
common
1952.
ROBERT
December 10,
1952
"
December 2, 1952
on
A dividend of
AND|EW W. JOHNSON
INTERNATIONAL MINERALS
cumu¬
series A, of
ferred stock of record at the close
quarterly dividend of 60<f. per
share
at
BEN
General Offices: 20 North Wacker Drive,
period
dividend
quarterly
declared
of business
payable Dec. 30,
RECORDERS
MOTORS
167™
Share.
THOMAS
STR0MBERG
,
t.'
SETH
of
rent
on
per
Regular Quarterly Dividend of
Forty Cents (40<f) per Share.
to
quarterly dividend
$1.12 Vi per share for the cur¬
ending January 31,1953, has been
Consecutive Regular
Both dividends
The -regular
jp
St. Louis
Vice President and Treasurer
WESTCL0X
on
.V
COMPANY
follows:
Quarterly Dividend of One Dollar
1952,
John H. Schmidt
,
as
$5.00 Par Value Common Stock
STOCK
of
share payable January
to
20, 1952,
($1.00)
i
,,
43rd
1952.
cember 19, 1952.
fifty
Nov.
4% Cumulative Preferred Stock
January 2, 1953 to share¬
holders of record December 19,
Vis¬
A
meeting
per
-
American
Corporation at their regular
clared
the 4 lA
he ■
by the
on
_
on
cumulative preferred
able
declared
Board of Directors
The regular quarterly dividend
of $1.06%
:
STOCK
were
S.
MILLER
Secretary
The Commercial and Financial Chronicle
Thursday, December 11, 1952
...
(2260)
ftt
well
BUSINESS BUZZ
as
"taking
perhaps
Mr. Roosevelt, however,
Washington
A
Behind-the-Scene Interpr etafiow
proved that fighting Congress is
a
painful and not entirely suc¬
cessful enterprise.
zr
gl Y'/)||
l\A/
xJL I
Capital
(ton the Nation's
•
•
•
(This column is intended to reflect
"U/
M.
when
except
forced, provided the alternative
to such a liaison. That is to fight.
scene" interpreta¬
the
"behind
the
tion
WASHINGTON, D. C.—There
is
that there is a
uneasiness among the
ignoring
no
growing
newly-
the
of
well-wishers
elected
Administration
in
this
Capital
over
the
of
Mr.
lishing
delay
estab¬
in
far
thus
Eisenhower
adequate liaison be¬
an
himself and his receptive
tween
This is rather a constant topic
The
conversation.
current
of
only visibly
happy persons are
numerous
devotees of the
the
with
prematureness
eager
seeing
Martin
there
only
concern,
was
not serious
little disappoint-
a
Eisenhower
the
that
Secretary
as
that
find
could be
selections
the
For
bailiwicks, prior to making
the selections public.
Whatever disappointment this
omission caused it was offset by
the
greeted
of
names
Cabinet
chief
the
which
reaction
favorable
the
of
most
selected
men
Durkin
however,
of being
appointment,
the appearance
gratuitous slap at
gave
a
back to try them
then in
Rep¬
upon
pressures
against
operate
have more
tangible, and inescap¬
local interests which cannot
definite,
able
incident,
Durkin
the
as
it, is merely a sign
General
Eisenhower has
that
Congressmen
grade
political
second
the
occupationally
are
of the ne¬
aware
to
intended
in
promote
tensely disliked by the greatest
majority
the
not be expected, so long as
a
vast
legal
in
bedded
advantages
the
em¬
law for
present
the
labor
organizations.
tightening
up
would
a
been
Such
have
politically unrealistic in
of
the
precarious
GOP
view
hold
it was
ruled out anyway by Mr. Eisen¬
hower's campaign avoidance of
Congress,
on
and
The appearance' of the
attempt to quarrel
with the accomplished fact that
gratu¬
ley repeal
of
named Secretary
was
Labor.
Taft-Hart¬
of
The
appearance
was
heightened by Senator Taft's
quick reaction thereto. Some of
the Senator's friends wish "Bob"
the
bided
could
his
time
until
he
straighten it out with Mr.
Eisenhower.
There will be
no
such "split,"
however, unless General Eisen¬
hower
has
forgotten
generous and
his
both
politically realistic
-declaration of dependence upon
Mr. Taft, or, unless the obvious¬
ly
ascendant
Dewey
in the saddle in the Administra¬
instinctively
They
Avoid Leadership Interference
The
key shortcoming, as it is
the
Congressional
from
viewpoint, is the absence of any¬
crowd
entourage who has a
Congressional view¬
personal
feel for the
a
high and there is
great amount of patronage to
be dispensed.
forgotten his pledge of
tion
would
or
coopera¬
countenance
a
drive to "cut down" Mr. Taft is
something
take
vince
a
which
lot
of
will
proving
still
to
con¬
of the less mercurial
some
followers
it
in
Congress
of
the
newly-elected President.
Trumanites
in the
is
not
a
question
of
Mr.
Taft
personally, while they try to egg
a split.
They know that the
is
It
sense
like
feel
the
merchant has of
Ohio Senator stands for
a
view-
because he is rated
as
the most
able
spokesmen for that view¬
point.
That
viewpoint is that of the
successful
a
brands
new
or
thing a capable Con¬
gressional liaison would be dog¬
matic about is that it is as futile
out a grudge in politics
to carry
it is for
as
stock
merchant to over¬
a
item
slow
a
because
it
catches his eye.
which demonstrates this.
the
latest
O'Conor
Senator
when
One of
Maryland,
in
was
heave-ho
by
the
State party organization because
he wouldn't rally to the organ¬
ization
in
or
scrap
an
intramural
party
wouldn't defend Tyd-
The organization's man
won the primary and the result¬
ing wounds in a large part lost
them the Senatorship to Glenn
ings.
Beall.
Such
such
or
man
a
would
specific
of
hundreds
in
liaison
a
He could also advise
of
hower
fairly
political
these is
of
well-
principles.
not to
the
with
fere
untutored Eisen¬
some
established
the
inter¬
Congressional
leadership except at the peril of
lost
progress
in
considerable
a
constantly-
Roosevelt
York,
who
was
Truman
that
working
probably
along on three
as
things.
neither
The
he
be
ever
once
nimble,
alert,
Senator
Mississippi,
cut
GOP
to
it
to the
than
deleterious
less
political
the
by
book
science
that
said
which
the
Executive
Legislative departments of
and
Government
the
and
refused
He
separate
the
twain
were
should
never
meet.
to
bail
help
t>e boys, and this was a
out^
landslide
his
in
victory
gradually lost
the
personal
he
1923,
regard,
and
mity, of his
own
nominal leaders
in Congress, in some cases.
ing at the White House during
the consideration of the Tariff
Act
into
of
1933.
pretty
developed
This
much
Senators
an
and
tives had their local interests to
cater to.
by
The President appeals
occupation
the
under
vented
from
choice
for
across
these
in-
Harrison
Pat
who
brilliant
did
ground
Hoover,
decline,
political
even
if
he almost seemed to be
on
imprecations
daily
Trade-
Press, 28 East Jackson
Boulevard, Chicago 4, 111.—paper.
Academy
Problem
Leonard—R.
York
S.
Madison
400
17,
New
Avenue,
D.
Associates,
&
Aries
Costs,
Maintenance
of
The—Jackson
N.
Y.—
Productivity
andi
paper—free on request.
Progress
in
Pay, All U. S. Manufacturing Com¬
bined— The
Eddy-Ricker-Nickels
at
for
its
and
Congress
only
learned
cannot
be
eminent
experience.
It
science.
learned
qualities
the
ablest
of
the
greatest
one
to
be learned out of books
political
on
subjection
by
parochial
long
Property
Square, Cam¬
Rights
by
as
cannot
It
such
pre¬
being
governors
States,
one
of one
or
being
of the country's most adroit
convention
and
campaign
man¬
agers.
D.
Roosevelt,
N.
—
—
-
on
The
Educa¬
Hudson,
-
Y.—paper—no charge for single
copies; quantity prices on request.
Regulations
Concerning
Deal¬
ings in Gold and Foreign Exchange
in
Belgium—(2nd
Bank
for
supplement)—
Settle¬
International
Switzerland—paper
—Sw.
francs
15
(the complete
work
original compilation with
the two supplements — is Swiss
ments,
Basle,
—
francs 32).
Staffing the Presidency—Brad¬
ley D. Nash — National Planning
Association, 1606 New Hampshire
Alternative to Liaison
Franklin
Humanr
and
Paul L. Poirot
Foundation for Economic
Rights
tion, Inc., Irvington
feel
A
who
Ave., N. W., Washington 9, D. C.
neglected to cultivate harmoni¬
ous
and smooth working rela¬
tions
with
Congress,
giving
as
TRADING MARKETS
Gear Grinding Machine
Riverside Cement A & B
Crosse & Biackwell A & B
Mb
FOREIGN
Seneca
Falls
Machine
National Company
FIRM TRADING MARKETS
Gorton Pew Fisheries
SECURITIES
George E. Keith Pfds.
Middlesex County Nat.
Bk.
Rumford Printing
r.ARL MARKS & r.O. INC
of
53 BROAD STREET...NEW YORK 4, N. Y.
Deerfield Glassine
Plymouth Rubber
FOREIGN SECURITIES SPECIALISTS
much
under the
so
was
pre¬
being the obvious
Senate
Principles of Import Procedure
—Juvenal L. Angel—World
bridge 38, Mass.—paper—$2.50.
later
old-fash¬
Representa¬
—paper—$6.00.
Company, Harvard
ioned log-rolling party. Individ¬
ual
Pennsylvania Railroad in the
Year 1953 — Thomas G.
ver's
of
This correspondent recalls be¬
—paper—25^.
characteristic factor in Mr. Hoo¬
initial successful
Despite
South La
3, Illinois
party's prestige.
Mr. Hoover at that time went
re¬
nor
tee.
The
the
that
excuse
a
gained con¬
trol of the House Rules Commit¬
to
would
was
an
from under the local
and the resulting act
out
get
have
would
gent
political
out of four FDR
late
MC's
order
in
sideration,
workings is something which is
liaison.
120
Chicago
whip Congress on the tariff bill
while it was still under con¬
of
O'Connor
John
Chairman
sult
even an
Institute,
Street,
Coming
notably
Hoover
Herbert
Machinery and Allied
Campbell—Visual Valuations, Inc.,
80 Wall Street, New York 5, N. Y.
trated.
lacked
Salle
Tax
Federal
Improve
—
begging for Mr. Hoover
to "interfere," that he publicly
House
"purge d"
legislation
and
plaguing feud.
Thus,
White
ver's leaders came to the
even
only give sound ad¬
not
cases.
New
Products
By the time the Act was in
Senate certain of Mr. Hoo¬
the
Congress when he became frus¬
Hoover Lacked Liaison
to
How
Policy
was
the
given
broad sector of the
a
pressure
Every election provides a case
finally incurred the private en¬
merchandise that will sell.
on
point, and his prestige and his
standing arises in a large part
Another
sound
a
would have gone
Stress Personalities
of an in¬
of arriving
political judgment in
a
complex dealing with Con¬
gress
from having gone over
parallel ground before for years.
at
level
Mr. Truman's dispossessed ad¬
herents know, of course, that it
putting across New Deal legisla¬
tion. Alben wasn't up to it.
This feeling is sort
tuition
1, 111.—paper—$3.00.
whole nation.
shouting
One
That General Eisenhower has
be his chore boy in
Byrnes to
terests to
(now) Gov. Jimmy
called upon
point.
still politically
Eisenhower's
Eisenhower's
General
in
one
while
so
masterful Gov.
to the politically
vice
prestige is
recog¬
nize Eisenhower's enormous debt
should have the notion of trying
to
"cut
down"
Senator
Taft
General
definitely
crowd is
Dewey
tion.
had withheld his statement and
had
to
around,
seen
advocate
they
pushed
unnecessarily
not
were
could
GOP
of the
leaders
their
itous slap arose, of course, be¬
cause
of the fact that an out¬
spoken
Congress,
in
Dewey.
with labor.
quarrel
a
•
of
most
tightening up of the TaftHartley Act and a curbing of
1953
forming but pedestrian Alben
Barkley. As a result Roosevelt
Michigan Ave., Chicago
214 North
does
appreciate it, will
beyond
already
find
he
if
Eisenhower,
including Filled-In
Income,
Forms, Check Lists and Examples
—Commerce Clearing House, Inc.,
you're
"Apex Employment Agency?—I don't believe
really trying!"
estab¬
When such a liaison is
cessity for constant compromise.
have
1952
gress.
lished
1953 on
Farmers Income Tax for
delayed long enough in estab¬
lishing this liaison with Con¬
Although Governor Dewey is in¬
Taft.
New York 19, N. Y.—
paper—50c (25c to public libraries
and nonprofit institutions).
observers see
that
Fifth
730
Inc.,
Co.,
&
Axe
Avenue,
Sec Liaison Need
So
Industry—study—E.
Electronics
W.
The
A.
Robert
Washington 9, D. C.—paper—$1.00.
disregarded.
be
The
Bargaining:
Lapointe Machine Tool Company,
United Steelworkers of America—
National Planning Association,
1606 New Hampshire Ave., N. W.,
President.
a
Members of Congress
of Industrial Peace Un¬
Collective
der
distinct and dif¬
which
least by degree
Ohio Senator is not believed to
Senator
Causes
resentatives and Senators are at
not
l>y Mr. Eisenhower.
The
stands
Senator
the
sorely, if not in 1953,
1954, 1955, and 1956.
their
from
success¬
so
while they probably
immediately successful
things
for would come
en¬
own
views.)
Mr.
do
away with Mr. Taft as a prime
political force, they would only
not at least follow
the amenities by notifying Sen¬
of
imagined
be
could
tourage did
ators
own
fully unwise as to persuade
Eisenhower,
in effect, to
ferent from the pressures
the appointment of
Durkin
P.
of Labor
*'4'ment
are
"split" in the GOP.
a
until
Up
who
Administration
retiring
coincide with the
not
may
Congressional conservative Re¬
publican. If any group of men
the
following in Congress.
or
"Chronicle's"
Office
PeftSOAKVet <nAA)AG€fY5
from the nation's Capital and
may
Dfttwirrte's 0cpt. Stcrc
Democratic
leader in favor of the more con-
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Investment
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