The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
*2
UNIVERSITY
OF MICHIGAN
INVESTMENT BANKERS ASSOCIATION CONVENTION ISSUE
DEC 14 1951
BUSINESS AJMINiSTEA
LIBRARY
a
Commercial
j.
Reg. U. S. Pat. Office
Volume 174
New
Number 5072
EDITORIAL
We See It
As
of the fact.
aware
Revelations, grow¬
ing constantly in number and often in degree of
seriousness, are repeatedly shocking saner ele¬
ments in the population. The President has be¬
gun a sort of housecleaning, which doubtless he
hopes will redeem his party, politically speaking,
before next November, and he has from time to
time tentatively undertaken a sort of counter of¬
fensive as in the case of his allegations against
the TafF campaign last year. What all this may
come to in terms of political effectiveness remains
for the future to disclose. Judged by other stand¬
ards it is weak and impotent—almost pitifully so
—up to the present moment.
It
is
By HARRY A. McDONALD*
elected in his
circles
a more
tration of
privately placed securities but that initiative in
by securities industry itself.
Sees changes needed in SEC statutes, particularly thoserelating to the prospectus, -"tombstone" advertising,
proxy rules, insider trading, investment trust supervision,
that direction must be taken
and investment advisors.
condoned and
even
in
1928.
with it
the
heard.
economic
well
as
pay
>■.'
Association
Bankers
of
America.
You
a
great work.
me
Pierce,
Fenner & Beane,
City.
The principal speakers at the con¬
vention, in addition to Laurence M.
Marks, the retiring President, and
New York
year,
>
New
York,
so
Joseph T. Johnson, the incoming President, were
part the moral laxity of the 'Twenties had
Harry A.
McDonald
the New York Stock Exchange.
kid of about 17, I used to
Continued
on
page
submitted
75
course
Continued
on
IBA
page
85
talk by Mr. McDonald before the 40th
Investment
Bankers Association
of
America, Hollywood, Fla., Nov. 28, 1951.
♦Stenographic report of
Annual
Convention
of
thelF reports to
of the
meetings.
The various committees
the Convention
during the
(The texts of most of these reports
given elsewhere in this issue of the "Chronicle.")
a
the
Continued
SECTION—Pictures of incoming Officers and Governors
PICTORIAL
of the Invest¬
of the
64, incl.
Association of America, also candid shots taken during course
Association's recent Annual Convention at Hollywood, Fla., appear on pages 49 to
ment
Geof¬
Harry
A. McDonald, Chairman, Securities and Exchange Com¬
mission, Washington, and G. Keith Funston, President of
are
what
Joseph T. Johnson
frey Crowther, Editor, "The Economist," London;
I think I shall tell it.
You know, when I was a
&
Lynch,
the Circuit last
on
Marks
Schmidt, Poole & Co., Philadelphia,
and Norman Smith, of Merrill
anything for my
friendship with "Mr. Philadelphia"
—Mr. Hopkinson, Mr. Julien Collins,
Mr.
Whipple, Mr. Armitage who
and Hal Dewar. I haven't seen
Hal this trip.
But our genial President, on my left, tells the best stories
and makes a great hit wherever he
goes.
He says he hasn't yet told
you the one about''Mayor Hylan of
Wise., who succeeds Laurence
Marks of Laurence M.
Pa.,
wouldn't take
traveled with
Beach
Co., New York City. The Vice-Presi¬
dents elected were Ewing T. Boles
of the Ohio Company, Columbus, O.;
Walter W. Craigie, F. W. Craigie &
Co., Richmond, Va.; George W.
Davis, Davis, Skaggs & Co., San
Francisco, Calif.; Walter A. Schmidt,
lot of them.
I
held at Hollywood
Joseph T. Johnson, President
Company, Milwau¬
kee,
M.
You still have a lot of work
I was interested in the report which we just
I think I could add a little
a
was
of the Milwaukee
tribute to this great organization,
certain
that it is impossible to be
scene
Association of America
Hotel, Hollywood, Fla., from Nov. 25 to Nov. 30, inclu¬
sive. The Association elected as President for the ensuing
that if you give me time, but
might I say that in this organization
you have great
people and fortu¬
nately you have had great leaders.
It has been my privilege to know
the
as
in selection and
to
sweeping Republican victory
political
done
do.
to
encouraged by public policies,
dominated the
Investment
have
By 1932 depression and all that goes
so
care
The 40th Annual Convention of the Investment Bank¬
ers
year,
suitable term for it) in private
did not prevent a
Urges
supervision of personnel by securities industry.
First, I want to
a
during the latter half of the 'Twenties,
Meeting at Hollywood Beach Hotel, Hollywood, Fla.,
Nov. 25-30, addressed by retiring President Laurence M.
Marks and by incoming President, Joseph T. Johnson.
Addresses also by Geoffrey Crowther, Harry A. Mc¬
Donald, and G. Keith Fnnston. Text of these addresses,
also Committee Reports and convention resolutions,
given in this issue.
Says Commission would support effort to compel regis¬
Corruption (it is difficult
large margin in 1924.
to think of
right by
own
integrity of his organization's
animosity against securities indus¬
try, which he praises as essential to our economic system.
distressingly evident that v^e have
here a situation strongly reminiscent of the Grant
and Harding
administrations.
Grant was re¬
elected despite revelations. Harding died prema¬
turely, and Calvin Coolidge took more convincing
steps than any that President Truman has yet
was
defends
Chairman
SEC
now
taken—and
40th Annual Convention
Chairman, Securities and Exchange Commission
staff and denies any
Copy
Association of America Holds
Securities Industry
becoming increasingly evident with each
passing day that the corruption-in-office issue will
be a live and dangerous one in the 1952 elections.
The President is giving every indication that he
a
The Investment Bankers
The SEC and the
It is
has become
Price 40 Cents
York, N. Y., Thursday, December 13, 1951
Bankers
on
page
77
State and
171
U. S. Government,
State and
Municipal
Securities
R. H. Johnson & Co.
STATE AND MUNICIPAL
telephone:
Head
INVESTMENT
SECURITIES
26, Bishopsgate,
London, E. C.
Office:
Colony, Kericho,
and
York 5
64 Wall Street, New
THE NATIONAL CITY BANK
Kenya, and Aden
Zanzibar
Subscribed Capital
£4,000,000
Paid-up
Williamsport
Wilkes-Barre
Bond Dept.
Teletype: NY 1-708
Canadian
Massachusetts
Pacific Coast &
Investors
Hawaiian Securities
Second Fund
ProypulM from
authorized dealers or
VANCE, SANDERS
Ill
& CO.
Devonshire Street
14
Members oi
,
Bought
,
and Bonds
t
Los
Angeles
San
Co.
York, N. Y.
Francisco • Los
Boston
•
Exchanges
Angeles • Chicago
Honolulu
NEW YORK
OF THE Cin OP
Central Vermont
BONDS & STOCKS
Public Service Co.
Sold
Quoted
CANADIAN
DEPARTMENT
Goodbody & Co.
Analysis
"
MEMBERS NEW YORK
115 BROADWAY
NEW
YORK
STOCK EXCH.
105 W. ADAMS
CHICAGO
upon
request
♦
PoKimoTi Securities
Grporahoh
ESTABLISHED 1S91
Principal Commodity
and Security
Chicago
-
Wall Street. New
NATIONAL BANK
CANADIAN
^
Stocks
Wires
Dean Witter &
BOSTON
New York
Private
ol
Trusteeships and Executorships
»
Direct
CHASE
also undertaken
Allentown
Washington, D. C.
£2,500,000
THE
£2,000,000
Fund—
The Bank conducts every description
banking and exchange business
Scranton
Harrisburg
30 BROAD ST., N. V.
OF NEW YORK
Albany
Troy
Capital
Reserve
PHILADELPHIA
BOSTON
BOND DEPARTMENT
Bind Department
Branches in India, Burma, Ceylon. Kenya
Chemical
COMPANY
Bonds
Kenya Colony and Uganda
HAnover 2-3700
BANK & TRUST
of INDIA, LIMITED
Bankers to the Government in
BONDS
Established 1927
Municipal
NATIONAL BANK
40 Exchange Place,
New York 5, N. Y.
IRA HAUPT & CO.
Members
and
111
Broadway, N. Y. 6
WOrth 4-6000
ST.
Teletype NY 1-792-3
WHitehall 4-8161
Boston
York Stock Exchange
Principal Exchanges
New
other
Teletype NY 1 -2708
Telephone:
Enterprise 1820
'
The Commercial and Financial Chronic
(2242)
This
MARKETS
TRADING
The
IN
Commonwealth Edison
$1.32
Conv.
Pfd.
Consumers Power,
Dow
a
(The articles contained in this forum
they to he regarded,
as an
offer
to
are not intended to he, nor
sell the securities discussed.)
Partner, Gruntal & Co.. N. Y. City
Members, New York Stock Exchange'
New York
Corporation
City
Member, New York Stock„Exchangc
Established 1920
First York
Teletype NY 1-583
Pittsburgh Steel 5(2% Prior Pfd. Stock
Corporation
When
$2 Div. Cum. Pfd. Stock
a
practically
with
is
issue
a
risk
no
good possibilities on the up¬
side.
Specialists in
defensive
ideal
security
and
the
At
time those
desiring a high
present
yield but un¬
willing to risk
Rights & Scrip
safety of princip a 1
are
1im
greatly
Since 1917
ited
-
their
in
choice
in-
of
a
and
new
Members
vigorous management,
>'.■
New
York
Curb
•
invest¬
offer
ment
fixed
H.
Albert
yield
Deuble
6%.
a
important steps to integrate
IlllllllllIlllllllllIlIllllllllllllllllllSlI
is
at
security which has high
least one
excellent asset
protection, a chance of consider¬
able price enchancement and a
earning
Trading Markets
American Furniture Co.
power,
return of about 6.6%.
exceptional stock is First
$2 Dividend Cumulative
This
Dan River Mills
York
Hardware Co.
Preferred Stock (callable at
$52.50
share and accumulated divi¬
dends), traded on the New York
Curb Exchange. For smaller ac¬
counts
it may be of particular
advantage that its. trading unit is
only 25 shares, so that the pur¬
per
—*.
Scott, Horner &
Mason, Inc.
chaser
can
odd lot
Lynchburg, Va.
First
save
York
investment
closed-end
tions
Bought
company
owning
a
substantial amount of good grade
marketable securities and govern¬
Airplane Corp.
Sold
—
Its
bonds.
ment
capitalization is
extremely simple: no funded debt,
98,141 preferred shares and 3,276,-
Engin. & Mfg.
—
a
special situa¬
on
nevertheless
but
is
Corporation
leaning heavily
Texas
additional
the
charge.
LD 33
iiiiiiiiitiiiiiiii it iiiiiiiii nun mi nun
iuscombe
128
tively
Quoted
shares
common
(traded
ac¬
the Curb at around 3Vs).
on
Total assets
about $17%
are
mil¬
lion.
andtoaddtoits
r
and
|
when
that
at
of
September 30,
1951, the
net asset value of each preferred
BUTLER,CANOEE&MOSER
44 Wall St., New York 5, N. Y.
BOwling Gregn
NY
9-0040
1-1862
It.is generally
recognized that a closed-end in¬
vestment trust preferred should
have
overall
aSset
coverage of
$175.16.
was
Aircraft.
(traded
Recently,
due
to
First
has
highs
made
new
impending split-up.
owns
213,938 shares
York
49.03%
or
of
capital (no bonds
are
outstanding).
Bought—Sold—Quoted
its
total
preferred
or
have been informed that it is the
intention
McANDREW & CO.
tion's
1S80 Russ Bldg., San Francisco 4
Tele. SF 370
of
the
management to
purchases of the Corpora¬
make
INCORPORATED
$2
Dividend
Cumulative
Preferred and Common
the
market
open
time.
This
is
Stock
in
time
to
from
added
protection
against market declines and at the
same
MARKETS
IN
time should
sell
to
TRADING
UTILITY STOCKS
Private
to
New
closer
$52.50.
to
cause
its
Dividends
earned
Direct
and
the stock
call
price of
have
paid regularly
been
the
on
preferred stock since its issuance.
First
Telephone
York
Preferred
appears
decidedly attractive. There
York
bank
CAnal 6-1613
The
11. Maguire & Co., Inc.
loans
or
asset
500%
over
income
prior
protection
are no
obligations.
is
400%.
21 Milk St., Boston 9, Mass.
Portland, Me.
<art(ord, Conn.
,<
Tele. BS
142
Enterprise 2904
Enterprise 6800
End Phone to New York Canal 6-1613
is
available.
plant construction
Pittsburgh will have
its
ingot capacity by
finished,
increased
of
a
,
flexible
a
position to convert
semi-finished
its
Bought—Sold—Quoted
Steiner; Rouse & Co
Members
•
protection
is
more
and
than
This
opinion,
to
-no
enjoy
risk
splendid
an
a
on
stock
offers,
in
my
excellent opportunity
ride -with
the
chance
practically
downside
for
and
profits.
*
a
New York Stock
Members
N»w
flat-rolled steel, 27%
21 % wire
The
security is ob¬
expansion
$56 "million
is
abnorm
ly
sity totaling some $38 million, per¬
low
$7 million
estimated
Information
Frederick
M.
Stern
new
sale to
insurance
sible for Pitts¬
burgh Steel 51/2% prior preferred
a
an
million
$25
20-year 3%%
million
$5
3%
of
bank
bonds,
loan
Stock Exchange at
if needed, to two motor car com¬
3%
to be
and
being available on the New
notes
a
low and
($100. par) of this issue in con¬
with acquisition of The
Thomas
Steel Company.
Many
ownerjs of the latter's
shares as
have
arbitrageurs
the securities
selling out
State
CA.
been
which
lifted—and
perhaps by the end of. the tradi¬
to
Common
Ferro
400,000 shares and the common
from
stock
There
is
1,500,000 to 2 500,000.
that
indication
no
der
strengthen
outstanding, is quoted
first
nine
only
one
71%
At this writing,
preferred is trading
yield 7%
to
per
be
senior
annum,
Strip
diversify
and
earnings
months
the
including
1951,
of
month
for
Division, amounted
normal
and
surtax
based
taxes
in
$35
the past decade for
ing
has
It
;
million
moderniz¬
integrating its facilities.
and
undertaken
additional
an
of
1951.
on
the
of
prior
is
This
Common
equal
involving
expenditure of about $56 mil¬
lion of which some $7 million have
an
been
150
Tel.
in
made
first
the
reported
in
as
increase is
Amalgamated Sugar
Utah-Idaho Sugar
income
industry
average.
further'
after >the
are
Established 1899
160 S. Main St.
Bell
Investors
on
looking for high
their
imum
hearth
latter
are
part
to
of
be
finished
cold-rolled sheet
mill
in
Pittsburgh Steel gained
Oldest Investment House in Utah
BUY
U.
S.
out¬
an
cold-
rolled steel strip, alloy
strip and
high-carbon spring steel, none of
a
Steel
new
note
taking
BONDS
the great
place
in
the
normally unprofitable, semi¬
finished
tive
manu¬
has
last
cold-rolled
steel
the
new
the
to
sheet steel
longer
Co;,
Thomas
■
Over-the-Counter
about one-third of its product mix
to
installed
SAVINGS
re¬
from
new
1953.
which had previously been
:f-
min-.
company's status and its changing
for its large excess semi-fin¬
ished steel capacity through
acqui¬
sition of the Thomas Steel
year
should
with
by the
let
factured.
risk
capital
a
1952,« and
Salt Lalce City 1
.
Teletype SU 464
restored.
betterment
open-
COMPANY
&
changeover is completed
by $3.7 million at full operation.
new
.v
EDWARD L. BURTON
Beginning
quarter of 1952,
substantial improvement
A
hot-rolled sheet mill, a new
—★—
7 V-
about the second
turn
a;:
Tel. NY 1-1932
of 1950.
uled
and
Assn.
better than
ation
furnace
Dealers
Now York 7
-
compared to $3,655,942
the comparable period
provide capacity to roll
all the steel produced. It is sched¬
blast
Security
months when net of $4,937,457 was
ment and
new
Y.
DIghy 9-1550
and certain incidental cuts in oper¬
pre-tax
Rights
nine
ing-slabbing mill has* been com¬
pleted to replace, obsolete equip¬
increase
&
Specializing in
six
or
should deriye from installation of
the new blooming-slabbing mill,
to
N.
Broadway
Act
expended from
A new bloom¬
retained earnings.
Rights
Gekstex & Frenkel
ments
the
already
Common
$25.09
to
stock,
preferred
national
needs
&
Pacific Tel. & TeL
196,841 outstanding shares
This 35%
defense
Rights
profits
excess
The Revenue
on
showing
.
largest steel
approximately
&
$4,-
to
spent
valuation. '
14th
Rights
times
5%*%
expectation for its
nation's
The
&
937,457 after provision for Federal
producer, Pittsburgh Steel Co. has
proper
i.
Thomas
the
-including the shares issued
in the former's acquisition. Earn¬
ings for the full year 1951 are
expected to continue" the favorable
my
w.
Indiana Gas & Water
Members
Consolidated
only slightly below the price of
the 5%%
prior preferred, thus
confirming the writer's opinion
that the latter is currently avail¬
able at an abnormally low, and
whereas. the
^
if Obtainable un¬
advantageous conditions, to
operations,
the junior 5%
259
steel companies,
The junior 5% class A preferred
stock *($100 par) of which 45,102
price.
BS
Corporation
Common
the
contemplates selling
management
further
are
Teletype
Dow Chemical
increase the authorized number of
prior preferred stock from 225,927
tional "tax selling season."
shares
:
*"V N. Y. Telephone WOrth 4-50Q0
they received in the exchange. A any of the new preferred shares.
to
substantial rebound in the price However, they may be used
level seems a reasonable prospect acquire other independent small
when this pressure is
St., Boston 9, Mass.
7-0425
a
nection
as
148
Tel.
sold,
price
yield panies in return for a 5-year sales
Present
in excess of 7% per annum. As contract for sheet steel.
of Sept, 30, 1951, the company has funded debt is only $217,000.
Stockholders have been asked to
issued
127,430 additional shares
would
request
for
company
$10 million
close to the year's
at
on
financing through
$40 million
tion is respon¬
well
7,
an¬
The company has arranged
unusual
York
f
THERMO KING RY.
This is
million
$2.5
over
U. S. THERMO CONTROL
nually.
market condi¬
stock
\.
over
in addition to normal depreciation
Best"
J
in 1953-56, and
year
a
in 1952,
million in 1957.
$5
some
in
forum.
An
amortization
accelerated
of about $2.5 million
Security
Like
I
branch offices
certificates of neces¬
by
mitting
price and
high
"The
our
tubular, and
covered
1
N. Y.
NY 1-1557
-
products.
an
a
'
""rrhange
Birmingham, Ala.
Mobile, Ala.
Direct wires to
mix of better
product
Exchange
Curb
HAnover 2-0700
New Orleans, La.
into
steel
York
25 Broad St., New York 4,
balance, roughly consisting of 52%
/
producing specialty grades of
about
the market price
'■Mmfozn Nat'l Assn. of Securities Dealers Inc.
71'd.. HUbbard 2-5500
Pittsburgh will
When
when
steel
additional
the
expansion program related to the
The stockholders of First York
ACTIVE
the
tainable at
Stock
an
Bell
of
stock
this
the New York
on
Exchange)
SECURITIES
TeL EX brook 2-7900
doubled
have
fhe accumulated dividend.
prior
earnings
of
preferred at < 73 % yields 7% %,• Nonconsolidated
which is certainly not a normal Thomas Steel during the first eight
situation. * Earlier^ this, year the months of this year are estimated
300% to be of good quality. First prior preferred shares were traded to increase this ample coverage
York's is almost 400%.
as high as 98,. and only recently
by about 20%. In 1950, Thomas
Since Sept. 30, asset values have declined to the low of 73. A level alone
earned
more
than
Pitts¬
increased substantially due to the midway between these prices burgh's
total dividend
require¬
share
fact that First York controls Bell
WEST COAST
•
time its senior
attractive
As
Teletype
which
of
shortages of supplies and could
to
be
all
operations
earnings,
return
of over
However,
there
'
\
>
capacity
and will be in
its
>
Tel. REctor 2-7815
Tele. LY 83
Louisiana Securities
only been partially used due
taken
inclusion
today
good
a
grade
Exchange
BROADWAY, NEW YORK S
Moore Handley
the
Stern,
M.
Y. City. (P. 2)
about 50% to 1,560,000 tons a year
yield, it
qualifies for
does
York Stock. Exchange
New
120
.
F.
—
rearranged its financial structure,
vestments.
■
has installed
company
Rarely
frfcpONNELL&fO.
r.
Alabama &
Co.,
&
■-
York 5
The
■
Steel
mill
steel
FREDERICK M. STERN
Partner, Oppenheiiiier & Co.,
New York Hanseatic
BArclay 7-5660
Pittsburgh
has
ALBERT II. DEUBLE
120 Broadway, New
•Deuble,
Oppenheimer
77 N. Y. City. (P. 2)
Gruntal & Co., N.
are
and
Selections
First York Corporation—Albert H.
different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
Chemical, Rights & Com.
Thursday, December 13, 1951
Week's
Participants
Their
in the investment and
Puget Sound Power & Light
\
Security I Like Best
A continuous forum in which, each week,
Common
Production Co.
Southern
Forum
\
'
*
'
v
2
more
business.
management,
lucra¬
Quotation Services
Thanks
for 38 Years
which
has only been in office some two
years,
Pittsburgh Steel Co. is no
the
marginal -producer
which it used to be, and I am con¬
that the market valuation*
fident
of the 5%%
pressed level but
this
1
basic
will eventually
improvement.
Incorporated
Established 19-J3
prior preferred stock
will not remain at its current''de¬
reflect
National Quotation Bureau
46 Front Street
CHICAGO
New York 4, N.
.
SAN
Y.
FRANCISCO
Volume 174
Number 5072
The Commercial and Financial
...
Chronicle
(2243)
A
Neglected Facet of Inflation
By MELCHIOR PALYI
i
'
'
,
rate than
The SEC and the Securities
physical volume of productive assets, and thus
A
A k-Allan Sprou.l
debtedness. Holds present inventory loans constitute most
the piivate
«r
t
Dynamic
to
It
the
word
describe
to
use
is
implies
continuous
production,
like
we
our
by growth of
economy.
in
growth
efficiency,
standards
etc.)
the
bonds would
with
ury,
This
ex¬
national
pansion of
our
about
trick
assets in phys¬
ical volume
well
as
in
as
value.
In
the
we
areless
con¬
cerned
with,
forget al¬
together,
is
the
fact
our
liabilities
that
volume
physical
productive
of
assets
dation
of
(tangible)
constitute
that
our
foun¬
the
wealth,
The
Pension
eco-
well
real estate,
indebtedness
It
Convention
of 1938 with $140.3
nearly
In
direct
and
significance
has
It
reached
the
The
by
or
sector
liabilities
lion
in
the
to
single
a
bil¬
$36
of
tune
the munici¬
year;
palities took the rest.
This
it
comes
a
increase of private and local debts
in
entire
the
five
period *1925-1929.
accumulation
debt
The
carried
years
of
the
those
biggest
I boom in all history previous to
War
World
that
II;
it
and
reason:
very
broke
for
having
for
ac¬
cumulated
:
(in five years' time,
such a huge volume
of indebtedness. Presently, we do
mind
you)
little
in
well
as
than
more
one
Even in terms of a constant
year.
;i dollar, this sort of dynamism is
a
Commerce
distinguish
between
and net debts; in the latter,
duplications are eliminated.
If,
for example, a city has $10 mil¬
lion obligations outstanding and
gross
$1
million
its
portfolio,, its
bonds
government
net-debt
is
in
$9
million.
In
instance,
one
official?" "net"
however,
figures
leading:
and
held
bonds
agencies
are
by
the
mis¬
Federal
trust funds
(postal
it will
lion
has
debt
vate
rise of
annual
over
be
shown
system,
social
24
25
been
deflated
lion
in
new
a
After
15
<
:
35
Attendance
See
Business
Securities
Mutual
Prospective
price — one price—we pay
rising living standards and
enhanced
industrial productivity
consists in mortgaging the con¬
sumer's and entrepreneur's prop¬
Railroad
mortgage
all of
us
security,
Continued
on
page
Security
Tomorrow's
Twiee
FINANCIAL
'*
*
-
'
WILLIAM
'
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B.
Park
/
Hubbard 2-8200
Albany
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Chicago
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Glens Falls
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DANA
t.
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:
Every
vertising
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York
New
7,
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"
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Publishers
N.
Gardens,
Edwards
c/o
ary*
'h ,1879.
N.
DANA
-
Editor
SEIBERT,
Publisher
&
!
RIGGS.
D.
by William
Company
Y.,
at
the
under
tlcal
Worcester
and city
Other
Chicago
new*,
Oil ices:
3.
111.
Union
of
135
South
'Telephone:
La
STate
Salle
St.,
2-0613»:
office
Act
ol
Stromberg-Carlson
Dana
Febru¬
at
Whitin Machine
New
March
8.
Rates
Other
$30.00
,
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Countries. $52,00
Bank
,
—
etc,)-.
B.
Works
Subscription
Canada,
Other
news' and ad¬
Monday tcotnmarket quotation
news,-b4nk clearings,
post
the
Pan-Arncrican
Manager
every
issue
Hoving Corp.
Eng¬
■
(general
and
issue)
C.,
Subscriptions in
United States,
U.
S.
Pos essions,
Territories
xnd
Members, of
President
Business
E.
Smith.
second-class matter
as
25. >1942,
Yoik,
Y
London,
&
1951
/•
,
.
Reentered
2-9.570 to 9576 ■**,..
Thursday
pteit.j»lau
state
Schenectady
Drapers'
Copyright
,
Oifice
*
COMPANY,
Place,
re-cords,; corporation
1-5
Teletype—NY
1
land,
and
Thursday, December 13, 1951
York Cvrb Exchange
Di-Noc
14
112
Domlnlcn
WILLIAM
50 Congress Street, Boston 8
HAnover 2-4300
Says)
.
Spencer Trask & Co.
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Whyte
Weekly
Patent
'
•'
•
KEctor
WILLIAM
Members New
Dictograph
2
11
CHRONICLE
U, S.
R^g,
'
HERBERT D. SEIBERT,
Stock Exchange
__L
J.
COMMERCIAL
PREFERRED stocks
York
105
Industry
(Walter
Collins Radio
84
_
78
25
Street, New York 4
93
Registration.
Markets
Baker-Raulang
89
___
Security I Like Best.
■
New
__108
Securities
Now
interested in offerings of
Broad
Offerings
Securities
in
Air Products
16
Washington and You
High Grade Public Utility and Industrial
Members
5
ill
The State of Trade and
•
25
_____101
Governments
on
Published
are
40 Exchange PL, N. Y. 5
_.103
_
May____—•
Salesman's- Corner.
The
A progres-
on
Wilfred
Securities
represented
by the national debt.
_
Report
Securities
top of the
,
Teletype NY 1-1825 & NY 1-1826
18
Public Utility
for
13
104
;
Reporter
depression.
MACKIE, Inc.
HA-2-0270
Activity_'
Funds
Observations—A.
The
&
19
Notes
Our
on
8
News About Banks and Banker*.".
core
Singer, Bean
9
r
Washington Ahead of the News—Carlisle Bargeron
of-debt liquidations, which
erty and income, this
94
________
Einzig—"Inflation and Deflation in Britain":
NSTA
Wyoming Gulf Sulphur
5
2____
Indications of Business
Corp.
Canadian Superior Oil
97
Dealer-Broker Investment Recommendations
From
Development
Research
Hydrocarbon Chemical
Coming Events in the Investment Field
process
a
and
Cover
_
Bookshelf
Reporter's
very
Spring Meetings
It (Editorial)
Man's
Canadian
and output, etc.,
"jumping" in these
the*
Associated
32
Bank and Insurance Stocks..
income
constitutes
26
___
Regular Features
We
Our
turn
Convention....
28
is what brings about the
of
IBA
at
fact,
in
Los Angeles
Artkraft
28
As
j
last five years, But what do
statistical comparisons mean?
of
and
31
___
IBA Governors Set Dates of Winter and
$16.7 bil¬
decline and
people,
(disregarding for the moment the
national government) are plung¬
ing into debt by leaps and bounds.
It could be pointed out that prices,
national
Philadelphia
30
1952 IBA Convention to Be Held-in Hollywood, Fla.
virtual stagnation, we, the
have also been
Teletype NY 1-3370
Direct Wires
29
.
'
Golf and Tennis Tournament Winners at Convention—.
of
years
BO 9-5133
33
1933, they came up with
high of $20.4 billion at the
end of last year.
Broadway, New York 6
32
In
quinquen¬
of
•
Request
Manufacturing Co.
$3; billion from
by
record
on
Reilly & Co.
28
Airline and Aircraft Manufacturing Industry
average
61
$20 bil¬
the postwar
boom-time
J. F.
27
____,
Praises Work of IBA Group Chairmen..
State and local obligations
started to move, too; after having
a
*Prospectus
23
Canada's Economy Reaching New Highs..
.
an
Leaseholds, Ltd.
22
The
We
21
________
Utilities Feel Impact of Taxes
than
more
Western
Banking
Warns Against Federal Tax Policies
that pri¬
noted
*
Industry—Harry A. McDonald-Cover
Investment
on
Railroads, the ICC and the Investor
-
jr savings
SEC and the Securities
Petroleum Industry's Profits at Peak
such
The
trouble with ajo overt-grown debtA Statistical Fallacy
structure is that it stays with us
| 1 A few words about the nature even if
commodity prices, dispos¬
of the statistics at stake. The an¬
able incomes and physical output
nual data of the Department of
decline. Such decline, as a matter
serious matter.
very
Addresses and Committee Reports
Incorporated
nium,
unique performance;
close to the $42.5 billion
was
100
____
Sees More Underwriting in Years Ahead
36.0 billion in 1950
Thus
yDome Exploration
81
_______
•—
Cedar Point Field Trust
16
...
The Municipal Bond Market in 1951
by over $38 billjpn,
almost 18%.
The private
of the
economy
incurred
Canadian Superior Oil
Cover
—____
(Boxed)
Unity in the Securities Industry—G. Keith Funston.l
6.3 billion in 1949
skyrocketed
WHitehall 4-6551
Primary Trading Markets
18
_
IBA Activities During Past Year~Laurence M, MarkS_-_-___*.
26.3 billion in 1947
20.8 billion in 1948
of
r-
Britain's Political & Economic Problems—Geoffrey Crowther.
$14.7 billion in 1946
business,
and
Dept.
17
;
—Joseph T. Johnson.
1916
to happen. The pri¬
vate debt alone jumped by;
municipalities,
indebtedness
net
individuals
Bell.....
Keep Public Informed
things began
and
in
that
Securities
STREET, NEW YORK
^Natural Gas & Oil
billion—which
double
Land, Water and Air
;
IBA
in
the
1950
noticed,
discussed,
scarcely
the
V
little
been
the
to
WALL
14
FIC Banks Place. Debentures
following
seven
the
reference
is
made
to
the,
years to 1945, it climbed slowly
Federal debt. But that debt, while and
hesitatingly, at an average
vitally important, only tells a part annual rate of $2 billion, almost
of the story.
The over-all debt entirely in the shape of shortis a factor of greater immediate term
corporate debts.
By
1946,
business picture.
Street!
12
...
of Canada—Bv
Opposing Factors in Inflation Outlook.......^
L".
v
peak of nearly $175 bil¬
still
Wall
Stock Market
Billard.^.-
Sound Analysis!
hit the bottom at the end
level.
obsoletos?
on
Automatic Escalation
on
Systems—Roger W. Babson.
The economic (private and mu¬
the
Obsolete
99
11
.__
Investment Bankers Association of America Holds 40tli Annual
'
Economic; Debts
1929
99
12
—Lawrence D.
consumer)
•
lion.
at
Looking Ahead 50 Years for Business and Industry
(state
the private v
as
debt.
nicipal)
dough
10
•
include '■!
latter
local)
as
quick
10
—Ira U. Cobleigh
;
outstanding municipal
was
t- In the main, if debt is discussed,
the *
other¬
the
rate than does
the
—Gordon Y.
it
use
and
faster
much
Dr. Melchior Palyi
we
(federal) obligations and the
(business,
Wage Policy Based
a
Bullish and Bearish Factors in the
present
unless
data,
debts.
lose
it
Telephone:
indicated, dividing them i&;?
political ?
nomic
Key to Prosperity and Peace—C. E. Wilson
Across the Dominion
net
II. Keyserling
—Leo Wolman
basic categories: the
two
grow at a very
1
at
smaller than
following
corrected
Leon
you
makes the net
appear
$39 billion
9
Consequences of
reality.
wise
What
oi
is in
debt
Find
__
Output Forging Ahead
—Charles E. Wilson, Director of Defense Mobilization.
-
means
LOST & FOUND
8
attached.
' strings
_AA-
__—-—-
Defense
belong to the Treas¬
no
curious
It
the
of
those
if
_U-___
Did
___ _
Trends in the American Economy—Julian D. Weiss.
part
as
Federal debt—as
net
living.
ca
counted
not
are
4
Bulwark of Our Private Economy
6
Productivity
real liabilities.
our
AND COMPANY
3
"New Economics for New Problems"
vul¬
debt structure. Concludes growth of
real wealth is outmatched
our
Industry—Harry A. McDonald—Cover
Canada's Astounding Industrial Development—H. A. Stevenson
stated, ?and gives data relating to total public and private in¬
nerable factor
Page
1952—and Beyond—Neil H. Jacoby.___
The Federal. Reserve:
,r
llCMEHSTfM
"
/Veu/»
Neglected Facet of Inflation—Melchior Palyi
Some Perspectives of
con-
neglected facet of inflation. Says Federal debt is under-
a
and
I"
Pointing to the rapid growth of indebtedness, both public and
private, Dr. Palyi contends our liabilities grow ai much faster
st.tule
ArticieM
•
' •'
•
••
■
,
3
and
pet
per
$48.00
per
vear;
per
fn
Publications
Quotation
Record
—
Monthly,
(Foreign postage extra.)
account of the fluctuations In
year.
'Note—On
,the rate of exchange, remittances for for¬
eign subscriptions and advertisements must
he
maae
in
New
York
tunas
Bought
—
Sold
—-
(Juotmd
year.
year.
THEODORE YOUNG & CO.
40
Exchange Place, New York 5, H»T.
WHiteh»U 4-2250
Teletype NY 1-3291
4
The Commercial and Financial Chronicle
(2244)
ditures
Now
(Special
Proprietorship
Peispectives of
C.
Paul
Co.,
&
Rudolph
127
By NEIL H. JACOBY*
Montgomery Street.
the rate of
around
national production
billion,
but
expenditures
military
to
rose
personal
rate of $202 billion.
in
therefore be expected to rise mod¬
erately
quarter of 1951
sumption
k
annual
an
During the
$328
Administration
California, Los Angeles, Calif.
come
(I) domination of international situation; (2) renewal of Inflafionary pressures; (3) continuation of high rate of private
^ ^x <savmge; (4) decline in new piant investment, except m defense
•v/*; industries; (5) increase in U. S. foreign investment; (6) firming of money rates; (7) decline in corporate earnings; and
-significant reduction ~ in home construction. ;Foresees
lessening of world tensions over longer term and replacement
^^iilitaiy spending by public works/ social welfare and
/
foreign aid.
and result in
fell
to
during
billion
rate
during
of
the
Plant Investment Will
Decline,
Except in Defense Industries
a
The
1952
second
major category
of
spending is private investment in
"producers'
construction,
new
increase in
an
annual
an
last quarter of 1952.
The build-up
outlays
to
$215
con¬
will assuredly add to national in¬
of 1952 mentioned hf Dr. Jacoby arc;.
^
billion.
$208
gross
Dean, College of Business
University of
running at
were
of
third
1952—and Beyond
sole proprietor
C. Rudolph is now
of
Some
to-fus Financial Ckkonicle)
FRANCISCO, Calif.—Paul
SAN
rate
Thursday, December 13, 1951
...
•
,.
;
;
personal
ture.
consumption
it
But
likely
will continue to
consumers
cise
seems
restraint
in
equipment
expendi¬
their
tories.
that
toward
spending.'
are:
The
of
consumers'
hands;
durable
ters
second,
You have asked
rmAoaniA
t VA.
to present
me
relations,; namely,
views about the future, espe- of the present
my
cially
probable
construction
developments
and
mortgage
ir^J'hot peace," of military engage-
ing.
I confess
tensions,
my
armament
cloudier
MANUFACTURING
at
is
obvious
big
we
different
much
sions
to
what
you
In
KEARNS & WILLIAMS
Dealers
future
I
the
in
which
live
•
buying
runaway
during 1952.
consumers
consumption
,
inventories,
which
physical quantity and
value.
Business inven¬
about
rose
year
private
Personal
expenditures
limited
Business
and
$11 billion dur¬
ended Sept. 30, 1951.
investment
will
Continued
;
may
on
DEALERS
•
decline
page
BANKS
•
Consumer
Spending in 1952 Will Again
Exert
I
fore¬
value.
to
that
assume
the
nature of foreign and international
events during 1952 is likely to
Neil H. Jacob y
He who wishes
A Word about Your Orders
Inflationary Pressure
venture
the
restrain
to forecast the
rate
increase
of
in Unlisted Securities
in
historian, spending, both by government and
military by private businesses and housestrategist, and a social psycholo- holds. I am inclined to think that
gist. It might even help if he were total
spending will suffice to
a psychiatrist! Any economist who create some inflationary pressure
Is not all these things will ap- on prices, but that this pressure
oroach the task humbly and ten- will
be moderate.
Inflationary
tatively, knowing that he may be pressure will not be as strong as
vrong because his basic premises appeared likely six months ago,
irove incorrect although his ecowhen the present defense mobilinomic logic is impeccable.
With zation
program
was
first an7our permission, I shall first prenounced.
lent
some
perspectives of
the
During 1952 we shall probably
coming year, 1952. Following this, be faced with a series of "peace
I shall take a longer view of the offensives"
by Russia and her
future should also be an
Placer Development,
Limited
LEAD-ZING
TUNGSTEN-OIL-GOLD
Analysis
available on request
John R. Lewis, Inc.
1006 SECOND AVENUE
SEATTLE
Teletype SE 105
ELiot 3040
scientist,
political
a
decade of the 1950's
International
as a
Affairs
COMPANY^
SENECA OIL
dominant
single
armament or
the
be
paying growth
opportunity in Crude Oil
state
of
toward
fairs been
ence
on request
so
upon
important an influAmerican
business,
This is true because the expenditure of our Federal Government
GENESEE VALLEY
or
SECURITIES CO.
military
peaceful
a
Kremlin
purposes
r
has become
AN INTERESTING
The
men
:
y
will not
believe
to
come
peace or
the
PRODUCERS
is currently dominated by
of international affairs,
international
de-
velopments should create general
expectations of early world-wide
OIL CORPORATION OF
peace,
sions, and greatly reduced
Is
it
rather
not
5 Cents
September 25, 1951.
down
or new
fall
tion,
is
of
New York 5, N. Y.
DI4-4740
Bell System
Teletype NY
1-1318
may
^
_
be
us
of
and bet-
•
months at least?
If
contrary
of
♦An
state
address by Dr.
number
we assume
of
the
international
Jacoby before the
in
duction
personal
ha~
heen
sharn
.
the
income
liSr
funds
available
to
aid
you
for
in
payment
in financing
your
•
Cage
personnel
and
facilities
handling
a
multimillion dollar nationwide business.
CALL US ON YOUR UNLISTED ORDERS—WE WOULD
LIKE THE OPPORTUNITY TO CONFIRM TO YOU THE
EXCELLENT
/v-
on
and
the
.
„
rise
.
..
saved.
During
the
the
,
rate
of
$319
SERVICE
WE
KNOW
Co.
&
Incorporated
Investment Securities
120
BROADWAY, NEW YORK 5, N. Y.
Telephone WOrth 4-2300
Philadelphia
Boston
TWX-NY1-40
Jersey City
Albany
Utico
Weilesley
Pittsfiefd
Rockland, Me.
Hyannis
.
first ?;
was
generating national production at
annual
AND
I.Arthur Warner
of
con-
in
MARKETS
WE CAN PROVIDE. '
rp
percentage
spent
quarter of 1951 our economy
an
unlisted
on
transactions.
the major
expenditure that
aevel°Pmenls nas been snarp re
being
than $1,750,000.
valuable file data
Arrangements
local
^ractl0n °f personal income that is
a
more
complete research unit staffed by 7 ana¬
lysts who have available all the leading
production,
develoDments
..
leading trading centers.
services and
by
spending in the
economy
in
A
make up total value of gross na-
tional
of
nationwide
on a vast
daily volume which itself
making good markets.
•
directing attention to
components
a
years
securities —all available for
your use.
specific
more
on
on
trading wire system with direct private
Boston, Philadelphia, Hart¬
ford, Providence, Portland, Me., Cincinnati,
Chicago and Los Angeles, as well as direct
ers
at a Hfeh Rate
Let
trading "know how" built
Working capital of
„
sumption,
for
you
private lines to 400 banks, brokers and deal¬
pro-
On this assumpit not clear that the total
decline,
assure
^
,
A
Portland
Hartford
•
would
Tel,
maintain to
us.
Connections to
pursued, although
be reduced.
ernment expenditure. > What will
be the probable movement of each
drastically?
rate
A
•
net foreign investment, and gov-
rnouels appeared; and tnat the
rate of expenditure by government for military purposes would
15 William Street
pace
This
program.
be
arma-
.er
E. E. SMITH CO.
xne
will
then sell down inventories to a of these items, on the basic asworking basis and reduce expendi- sumption that has been made
oures
for new plants; that con- about the state of international
sumers would adopt an attitude of
affairs in 1952?
restraint toward
spending until
Qne of the remarkable recent
prices came
For Information
mobilization
obvious
that American businessmen would
Last Dividend Paid
trade with
experienced staff comprising 25 traders
maintaining firm markets in over 400 issues.
Large blocks or odd lots traded.
u
aids in
namely, personal
consumption
expenditure,
relaxed international ten- private investment expenditure,
ments.
AMERICA
on
con-
state
Suppose that
I
because
and
we
you to
basis and
to abandon the current defense
private expenditure by
businesses
advantageous for
trading unlisted securities
Consumers Will Continue to Save
sumers
;
•
disarmament
gram
peace,
true
stating the simple facts to say
are
•
of rearmament
or
disarmament,
of
mounting or relaxing international
also
we
An
so
prospects of
American
SITUATION
•
in the
as
is
customers
clude the following:
so
strongly in
It
your
swift and efficient service in the unlisted market in¬
of
settlement
the rate of defense expenditures will be determined by the
and
the rate of
and
provide the kind of markets and service
The facilities and services
or not they are sincere
important as the fact that
their action will probably lead to
feelings of less urgency about defense
mobilization
among
the
Western powers. I am persuaded,
however, that the American peo-
is not
pie
dynamic elespending in the economy,
war or
think
that makes it
wish to create an
impression that they seek peace,
ment of
Teletype BO 87
we can
looking
tensions.
:
that
may
the most important
Powers Bldg., Rochester 14, N. T.
Telephone LO 3190
we
"peacetime" Whether
the state of international af-
'as
conferences
in world problems.
af-
international
you
customers' orders in Unlisted Securities.,..
And
limitation/and
arms
international
factor
important to
obtain the best markets and the best service
.
Will
1952
fairs. Never before in
dividend
Information
The
for your
all likelihood there
will be further proposals for dis¬
the economic outlook for 1952 will
CLASS "A"
A
in
that you
In
satelites.
whole.
Dominate Domestic
Business
We know it is
a
billion,
and personal consumption expen-
Direct
\
i
Clearfield*
lify A.'
to
third
The prospect is that the rate of
by
spree
in
dollar
ing the
pre¬
TO BROKERS
v
.
Federal,
today,
casting
DIgby 4-2066
a
.
becomes
sure.
pure
Y.
vent
in
tories
All
probably
the
we
economic
analysis has
11 Broadway
will
factors
totally different.
In this case one may well expect
further strong inflationary pres-
kind of world
Members of National Association of
probable amount
fourth,
quality and lower prices.
these
the
A substantial part of this
both in
rose
models, bet¬
newer
it fell
during
Our view of the economic
omy".
p e e r
into it and tell
-
about the
anticipation of
ter
conclu¬
of spending in the American econ¬
see.
Teletype NY 1-716
arrive
than
the
that
between
race
it
usual, but I
best
Bought—Sold—-Quoted
New York 4, N.
nations,
even
accelerating
an
shall do my
COMPANY
Securities
crys-.
tal ball is
of
and
fect of credit controls; and,
at
high investment took the form of
deferred
of
continuance demand; third, the continued ef¬ increases
a
of "cold war" or
le#$ifPments in limited areas, of high-
that
ALLIANCE
era
elimination
proceeded
1951/ although
billion
quarter.
pro¬
f
gressive
of
$55.7
in
goods
has
inven¬
domestic
billion during the first three quar¬
principal
first, relatively high
inventories
private
unprecedented annual rate of $60
attitude
,
reasons
Gross
investment
exer¬
business
and
Providence
|
private telephones between ffew York, Philadelphia, Boston, Hartford,
Providence, Portidtrd>Me., and Jersey City, N. J.
Coast-to-Coast Wire Service through direct private lines to
Paul H. Davis & Co., Chicago and to Morgan &
Co., Los
Westheimer & Co., Cincinnati.
Angeles
79
*
Volume 174
Number 5072
.
.
^
.
•
The Commercial and Financial Chronicle
(2245)
Telephone); and a "Red Chip" off-the-beaien-track
quick, liquidating-value company (Manhattan Shirt):
u. s.
Observations.
$6.50
$2.75
2V2%
$5
$4.50
2V2%
2%%
21/2%
$1.75
21/2%
(4) Ann. amortization res.
Our Method for Determining Common
ber of
Stock Value
appropriate now, following the suggestion of a num¬
readers, to "nail down" with a synopsis, including con¬
our value approach and technique for
our
5%
4%
4%
4%
4%
(5) Ann. deduct. (3) -f (4)
(6) Capitalization of div.
(2) at rate of (5) gives
the advantageous buy¬
7%%
6V2%
61/2%
61/2% -6%%
ing price
crete examples of method,
evaluating
earns.
varied
Fundamentally, our philosophy is based on
the invalidity of picturing the market as a
whole, as well as of attempts to time move¬
*
ments of the market
by "technical tools"
in
lieu
of
attempts
time fluctuations.
to
of
issues—with
time is
good value, and no time
elusion that
We believe that
;
a
overall
the
a
A.
Wilfred May
Thus,
bad value.
illogical attitudes of the investor constitute
61/2%
a
our
in-
dividend yield would in 25
years
of the money
use
(annual 2V2% of rental value plus 4% in
In
termination
period's
profit.
as
The
company's
balance
sheet
strength importantly influences the determination of the length
of the
interval devoted to the complete amortization of the in-
vestment.
As
!
an
can
one
/
alternative interpretation:—with a 6V2 % dividend yield,
conclude that he gains fair rental value for his money
plus an indeterminable increment ranging around the remaining
4%—perhaps less, perhaps more.
Representative
.
We follow with
•j tion
Calculations
(Montgomery Ward);
Copper);
a
Swiss francs (plus
postage).
Indus¬
1950—
Louis Dublin and Mortimer SpieHealth Progress Among
-
selling
Selling Action
or
an
portfolio—that is its over-all balance, diversification, etc.
buying and selling every time a security sells under or
over its advantageous buying price is not suggested.
Of course,
Fundamentally
or
in liquidating are also
dependent
on
the following surrounding
investing policy:
framework of over-all
Price
(2) Secondarily; maintain limits on the total of purchases of
in
accordance
with
pre-determined
proportions
between
Thus, 66%% might be the
portfolio's proportion of common stocks constituting the ceiling on
purchases, and 20% the floor under disposals.
fixed-interest and equity securities.
(3) This formula is always to be maintained strictly secondary
valuation by our above-specified criteria.
valuation
on
hard-and-fast following of individual
procedure with purchases and sales is the subjective
element of one's particular individual income tax bracket,
this
since
directly and inescapably determines his net "take-home" divi¬
dend pay. (Partial offsets to the tax-levy is the qualitative one
of the furnishing of the inflation-hedge gratis, and the quantita¬
tive one of the investor's partial possession of the amortization
fund
ton, Ohio—Paper.
In
;;
Lower!—Wil¬
Wages Are Going
liam J. Baxter—International Eco¬
Research
York
Bureau,
Joins Courts & Co.
(Special to The Financial Chronicle)
CHARLOTTE, N. C—Courts &
members of the New York
Exchange, have opened a
branch office in the Liberty Life
Co.,
Stock
Building
under
the
direction
a
heavily
a
ficers of R. S. Dickson & Co.,
Joins
(Special to
The Financial Chronicle)
BOSTON, Mass. — Henry
Vickers. is
with Aigeltinger
Co., of New York City.
capitalized
stable
utility
(American
•I. e., That number by which the annual earnings or dividends
plied to result in the price.
are
multi¬
$7,000,000
Central Maine Power Company
Two Winners!
WEST END CHEMICAL COMPANY
One
of
3
Glass
Bonds, Series T 3H% due 1981
First and General Mortgage
largest producers
of borates and
the
amazing BORON used increasingly in hardening
steel,
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
This announcement is not an
The
Due November
Dated November 1,1951
1, 1981
Industry and most other industries.
Strong financial condition.
Price 101.749% and
Trading Market
—
accrued interest
4-4 %
COLUMBIA MACHINERY & ENGINEERING CO.
Excellent
panies.
v
:
ation
new
clients—top
management;
No conversion
lately unfolded.
problems.
com¬
Unusual situ-
The Prospectus may
be obtained in
of the undersigned and other
State in which this announcement is circulatedfrom only
dealers as may lawfully offer these securities in such State.
any
—
Our detailed reports are at your
2%-2%
HALSEY, STUART &, CO. INC.
disposal.
DICK &. MERLE-SMITH
WILLIAM
Kobbe &
Company
BLAIR &. COMPANY
WM.
E. POLLOCK &. CO.,
INCORPORATED
55 Liberty St., New York 5
such
Bright future ahead.
Trading Market
B A relay
7-24Mt:t
December 7, 1951
AUCHINCLOSS, PARKER &. REDPATH
.
INC.
Inc.
Aigeltinger Co.
heavy industry leader
cyclical commodity stock (Ken-
of
S.
Carpenter & Michael E.
Berman. Both were formerly of¬
Miles
estimating the worth of our approach and technique, it is
speculative-investment approaches.
New
5, N. Y.—Paper—$1.00.
Carpenter, Berman
during its term.)
fully realized that some unavoidable forecasting imponderables
(as those connected with earnings-and-dividend projections)
exist here too, but they are far less decisive than those arising in
Education
Foundation, Day¬
Survey of Economic
—Foremanship
to the individual issues'
Another limitation
Controls, The—A Re¬
of
ington 6, D. C.—Paper—50^ (lower
rates in quantity).
teria;
sales
-
Society
of the Committee on Eco¬
nomic Policy—Chamber of Com¬
merce of the United States, Wash*
nomic
(1) Continually explore individual situations via value cri¬
reprinted from
port
continuing decisions for action in buying
our
—
Of Actuaries Transactions—paper.
the
other
%
(IX S. Steel); a retail distribution company with potential growth
necott
Depart¬
ment, Bank for International Set¬
tlements, Basle, Switzerland—14.00
specific examples of value-appraisal calcula-
of five representative companies:
elements
Supplement—
and Economic
Monetary
advantageous buy¬
owned security, as well as in buying, the decision
as to the degree of over- or under-valuation necessary to prompt
market action depends importantly on the instant constitution of
amortization), leaving the equity remaining at the amortization
.
an
ing price (rather than an appraisal furnishing a hard-and-fast
dividing line between continuing buying and selling).
completely amortize the capital invested after Compensating for
the
of valuation results in
Decisions for Buying
period of time is adjusted to the estimated risk.
price giving
a
Regulations
Exchange
Foreign
in Great Britain, 5th
gelman
a
Our technique
amount of annual reserve sufficient to amortize
a
the backlog of
11,
"net quick liquidating value" in excess of the price quo¬
Hence, in the case of all four issues excepting Steel, we are
willing to let the amortization period run for 25 years.
Specifically, we capitalize the expected long-term dividend
a rate embodying the pure rental value of our money
during
and Elm Ave.,
Md.-—paper—$1.00
mental Press, 32nd
trial Policyholders 1946 to
receipts at
vestment
as
tation.
continuing equity "as gravy." In stocks, as there occurs in real
estate, our buying price should provide for annual amortizations
from out of dividend payments sufficient to recoup the invested
capital within a reasonable time.
:
Market
Jr.—Monu¬
America's Biggest Stock
—William J. Hudson,
by the apparent permanence of the enterprise.
having
concretely, our methodology, which satisfies the need
concerning the concept of yield and multiplier*,
rests on the "hard boiled" common sense assumption that the
money-use and risk elements of one's capital investment should
be compensated for in the buying price; that the price should be
such that the buyer can foresee the probability of recouping his
principal-with-interest over a reasonable period plus retaining a
an
(inflation)
sheets; two of them—Montgomery Ward and Manhattan Shirt—
realism
plus
,•
of
The other
three issues represent companies with enormously strong balance
More
■-
potential economic elements
including
$27
number
percent is the annual amortization reserve apportioned
of Steel resulting from our estimate of 20 years as the
major component of the risk of investing.
for
a
case
offset
con-
good time to buy
011
(lower prices on quantity orders).
good time to buy a
a
$130
based
"run" of our investment, because of this company's heavy
capitalization combined with some uncertainty concerning its
status over the very long-term.
In the case of Telephone, while
we likewise
have a heavy prior capitalization, that drawback is
We
a
any
is
proper
following the proper evaluation
individual
of
,
$70
$77
earnings
management's policy in this regard as well
Five
that market price
of itself"
care
future
Baltimore
in the
tends to depart from
value, creating in this "spread" continuing
investment
opportunities.
Disregarding the
historical background of the price level, we
believed that the general market will "take
-
factors
of
financial strength.
"by ear." It is premised
disapproval of concentration on market
"liquidity" and changes in price.
Affirmatively, we maintain pervasive
emphasis on value criteria (specified below)
assume
$37
as_
.
$3
$8.50
they will affect the respective company; as well as the past *
Our dividend expectation takes into account evidences
on
t
inv.
$10
record.
Individual issues eiiher
or
or
as
cap.
estimate
Our
stocks.
common
Shirt
$8
(3) Rental val. of
By A. WILFRED MAY
seems
phone
$5
(1) Est'd future ave.
;(2) Est'd future ave. divs.
It
cott
y/ard
net-
Tele- Manhattan
Renne-
Montgomery
Steel
Issue
..
high
5
THE ILLINOIS COMPANY
THOMAS &. COMPANY
G.
&
6
The Commercial and Financial Chronicle
(2246)
issues. To make our policies
The Federal Reserve: Bulwark
the
ties
Of Our Private Economy
Federal
of
Reserve
officer of Cabinet rank.
sacrificed
altar
on
by single administrator
Stresses credit
of
cheap
money,
the
the
from
basis
Not
.
many
a
meeting
years
ago
such
a
counter
to
or
who
expansion
that
true
which in terms
addition
of assets and
tem,
principal function of the Federal
vide
Reserve
serves
have
had
about half of which
in terms of numbers are our mem¬
ber
would
to
This is
banks.
System is. to exercise an
begin by tell¬
ing you what
and
the
inflationary
influence
Federal
Reserve
tem is, how it
is
organized,
and
how
performs
been
sures
it
the
I
no
that
so
of bank credit,
the form of bank
reserves
on
pro¬
This
simplified picture has
been scrambled somewhat, how¬
that
ever,
Sproul
by
the
taken
Allan
longer
it
upon
necessary. The circumstances of
the war and postwar years have
tions
brought the Federal Reserve Sys¬
fact
that
have
we
ourselves to main¬
and
panies
in
another,
You
the
life
close
touch
with
been
concerned
our
with
the
par¬
generality of
sales
and
of
activities
in
your
the
of
true, of course, that
primary and direct concern is
12,
in
not
among
Government
aspect of this
has
come
the amount of
Government
or
our
able
ideas
price
of the
for
securities
opinion that the great growth
of the Federal debt over the past
own
15 years,
in
the
its dominant posi¬
whole
debt
longest
of
instruments
assumed
in
of
Federal
the
other
investment
the safety
these purchases
cessity.
life
At the end of the
"
insurance
basis
made most
pleasant
a
of
companies,
previous
in
Government
the
postwar
panies
years,
proceeded
to
ting
debt
and
money
life
your
com¬
redress
the
insurance
There
seems
com¬
to have
almost continuous process.
an
wide variations among
were
in the amount of Government
you
securities sold and
of sale,
but many of
impression
had
the
over
of
will.
the
you gave
feeling that you
Reserve, System
and
could
whack
Taking advantage of
market
treated
investments
of
bearing
interest.
are
concern
modern
war¬
our
•
1
have attempted to carry
out the task of maintaining order¬
we
ly conditions in
the
attractive
more
outlets
for
funds developed. They were even
made the basis, in effect, for en¬
into
tering
future
large scale financing.
You ? may
say
that this
engaged in from time to time.
is
a
prise system at work. Or
you may
the
that
blame, if any, was
supporting the market,
and giving assurances of support
everything we did, the way we did even
though these assurances were
it, and the timing of our actions.
only applicable to "existing condi¬
nor
to
try
to
buy these securities.
say
for
ours
justify
and
note
a
Shares
the
for
That
is
have
of
caution.
become
Many of
big, and the
so
all
of
inhibit
market
with
ties.
of
v
(v
,•
is
to
public
Charybdis
business
of
the
Scylla' of
regulation
of
falling
competitors in
the
and
behind
race
for
profits.
>
•
^
\
1,
»'"«r
the
<
to the above-mentioned shares
being sold by the Selling Stockhold¬
publicly offered by the Prospectus, the Company is offering 25,000
shares to certain of its employees upon the terms set forth, in the
Prospectus.
and
No
war.
pected
a
In addition
ers
at
which
you
war or
after
believe,
I
one,
you
ex¬
to remain frozen into
disproportionate holding of Gov¬
ernment
from
securities.
you
might
pected not to
have
been
ex¬
spigot
;
'
As
for
the
Federal
Reserve
System, during the postwar
it had
harsh
a
and
in the difficulties of
maintenance
"letting
go"
do
once
not
chastening
problems of
have
you
with
inflection,
this to agree
by
where
security market,
the
in
nancing of the
supply of the country,
public holdings of liquid as¬
money
sets increased
tremendously when 1
high and civilian
goods and services were lacking.
incomes
were
the
were
in
erated
held
not
removed
and
material
removed,
could
When
the
direct controls
job
our
be
to
in
war
were
not
was
try
to
and
reduce
%
drastically the war-swollen money
supply. The most that could be
attempted, by
to
credit
way
of credit policy, f
prevent increases in bank
from
adding unnecessarily
to the money
creating
which
supply, and to avoid
fears
would
creased
use—or
which
money
expectations
or
stimulate
i<
the
%
already in
ex*
If
chiefly had
j|
*1
What
this
in
to
do
to
country
those
grow
up
dislocation
should
|
velocity—of
was
istence.
as
;;:
in-
the
postwar
years
was
to the increase in
not believe that we could
securities
Jjj
rationing, price
controls, and other
as
not
gen-ft
check /but
in
by
measures.
ended, and
thus
pressures
were
direct
financing]!
economy. The
'j|
war
war-time
a
infla-jl
inevitable
in
quickly and with
.long-term
fi-:|
almost trebled
war
war,
expected not to try to
else-;*
or
The
economy.
suoply
oeen
re—in¬
supply after the
money
money
unload
have
solely to
what might in the Gov- ?
war, come
ernment
should
we
ourselves
ducing.the
]
then, and
"I told you so"
an
that
re-v
market.
a
mean
Government
a
those who argued
addressed
and
of
pegging
argue now
the
combin¬
effective credit policy with
an
sorted to
I
years,
thorough les¬
have
Copies of the Prosjjectus may be obtained in any State only from such of the several Under¬
writers, including the undersigned, as may lawfully offer the securities in such State.
f
v'
-
long-term Gov¬
as if they were
short-term investments. You might
use
ernment securities
but
ment Bond Prices
Looking at it
side of the fence, how¬
my
ever,
policy-*!
the
the
Policy with Pegging Govern-
was
securities
the \
bung.
inflationary
responsibili¬
the.„
Difficulties in Balancing Credit
and
the
no...
in
than
■
as
needed to chart
between
course
your
Share
per
loses at the
so
of capital funds
purchased during the
$17
inflation,
tionary factors
It is true that you could not
promise to hold forever the Gov¬
a
gains
These
are
recourse
degree
statesmanship
the
you
public
no
wise
A
ernment
_
to
holder
op¬
practices of investors with
business and
\
tribute
you
public interest,
a
your
increased
($1 Par Value)
"foreseeable
all
right as far
it goes, but I would introduce
to
Laboratories, Inc.
Price
stake
inflation
holder of a life insurance policy. ;
If practices which contribute td
a;
reduction of premiums also con- 1
with
security market, and more par¬ normal aspect of
your investment
ticularly the pegging of prices of
operations. You may say that this
the longest term securities which
is an evidence of the free enter¬
Common Stock
^
emphasized,
greater
prevention of
commitments
for
Government
a
,
well
so
a
when
and
f
has
security prices, and
experience with the
smaller aggregates
.
premium cost to your
policyholders. As you have so
often and
the
charged with
f ,i
of
one
reduce the
ing
erations
^
that
1
econ-
this* recognizing
your
aims was to
say
son
They
investments
as
higher
obligations,
for the
good
And T
omy.
were
as
v
for the
which
treated
ac¬
felt
you
little less,;:
a
corporate
industry and
our
long-term
reaching
of
be held profitably and dis¬
posed of readily, in large amounts,
ample
and
;
more
troversy,
term
in
placements, and mortgage
financing during periods of strain
upon
our
economic
resources,
might have been becoming to your
it
short-term
as
when
direct
Government
support,
were
rates
the method
Federal
barrel
a
bonds
in
securities
had to sell, and
one
panies together, this
been
ernment
returns
ment securities.
Taking all
day
conditions, a better marketing ap¬
proach to the liquidation of Gov¬
the
had
as
generated
possible.
have resorted
I
to
a
by
thejf
the
<J
little v;
still do
as
have
or
•£
drastic
v|
chunks of five, ten, fifteen, twenty
policy of deflation.
millions,
follow, with disheartening delays L
or
more,
on
short notice
whenever you wished. Such shifts
BROTHERS
in
in holdings, as some of you recog¬
LEHMAN
restraint
application,
011
a
We did try to
-
modest policy of
unnecessary
credit
nized, require time and marketing. expansion,
while
facilitating
a
Reliance on such heavy liquida¬ rapid
strengthening of our pro- A
tion
of
long-term securities,! to ductive capacity to meet accumu- >
meet immediate
December 11, 1951,
needs,
meant
authorities
vene
or
that
felt
lated domestic demands, and the
monetary needs of reconstruction among our
near-term cash
the
forced
to
inter¬
to preserve order in the mar¬
-
ment securities under present
the
And
1 '
concern-
ing the proportion of your assets K
which might be held in Govern- I
on
new funds to other assets,
by large net sales of Govern¬
and
,
war
standards,
treated
cake and have
your
Some revision of ideas
haste
securities.
being
were
trying to eat
you
with the appearance of a strong
private demand for capital funds
in
what
on
ne¬
overbalanced portfolio position
an
V
short-term investments. That is
could
for our
an offer to sell nor a solicitation
of an offer to
The offer is made only by the Prospectus.
Baxter
of the Gov¬
ernment's obligations,
of
outlets,
this action of the""*£•
on
it, too.
of the
support
companies and the war-time
as
est
as
patriotic
of
well
of
sug¬
,
securities
a
lack
as
cessation
temporary
monetary
authorities to enable
you
to
continue,
with
saiety,
drawing long-term rales of inter¬
of
effort. The sieauny increasing
of funds into the lite insur¬
war
flow
at
It is not my purpose here to rake
over
the
embers
of
old
con¬
is neither
100,000
purchasers
wholly
demonstration
future."
announcement
cake
Government
not
was
tions"
This
your
largest
long-term
structure
the
we
lowest desir¬
the
more
critics, in¬
cluding
some
from
your
own
ranks, have criticized the way. in
the larg¬
always able to
The
formance of this function. It is my
The
market,
1951.
securities.
and doctrinaire critics have
capital markets,
com¬
years
assum¬
challenged us to show any author¬
ity from the Congress for the per¬
which
recent
clearing
long-term
by Mr. Sproul before the
45th Annual Meeting of the Life Insur¬
ance
Association of America, New York
criticized for
secondary' obligation of
preserving order in the market for
or
you
eat
to
that
balance. They did this by commit¬
the
have
which you wished to sell, at prices
and yields which would conform
to our ideas of an orderly
*An address
Dec.
ing
the
grown out of the fact that the mar¬
It remains
City,
are
The most critical
relationship
term
Government
in
country, both public and
private, and the importance which
est holders of and traders in Gov¬
loans, direct purchases of capital ket was
issues, and mortgage financing.
close to
our
been severely
of
ernment securities.
widespread
field
Govern¬
Order
tion.
Government securi¬
with
during thepostwar period.
The Federal Reserve System has
rant
vestors, who
credit policies. We have been
with your purchases
ties,
for
market
net addition to bank re¬
some
tion
panies and other institutional in¬
concerned
and
the
inflows and
currency
Bond Market
operations of life insurance
one
ticularly with our open market
operations in Government securi¬
ties, and
in
orderly condi¬
preserve
in
Preserving
securities, extending
this
prescription, at times in the past,
to the actual pegging of market
prices. Right there we became
pretty directly involved with the
com¬
if only indirectly.
even
have
insurance
and
as
10
ment
tem
tain
result¬
reserves
bond support opera¬
circulation
well. Nevertheless, we did pro¬
severe
vided by the Federal Reserve Sys¬
tem.
securi¬
large part of the
bank
our
decline
a
be
may
be moderated. And it is
based
a
tions, and from gold
deflationary pres¬
the supply
deposits,
dele¬
assume
credit,
pressures
and of money in
gated to it by
Congress.
is
may
crease
have
~
bank
only the commercial banks of de¬
posit which can increase or de¬
functions
which
of
cost
able,
availability
the
upon
restrained and
Sys¬
because the
so
were
we
maturing
or
to
ing from
chose to speak on some aspects of
operations of the Federal
Reserve
Sys¬
the
try
This
a
ably relying
the life insurance companies were
through sales and redemptions of
short-term
most of
should
be
ance
is
It
might
the
possible
a
gests that some of you were prob-1 '
companies
among
oi
capital financing. And it also
The lesson for the life insurance
in¬
bank
of
and
com¬
as well as for "tne Federal
not
risks
the
temporary panic in capital values
a
Reserve System,
-
to peg prices in order
or even
avoid
to
and have it. During the war years
restrain
to
for the lite insurance
panies
contain
loans
credit.
policy should not be
and upholds present
country,
desire
our
unnecessary
with the commercial banks of the
speaker
this,
as
possible
a
bank
of
tendencies have been
present more often than not, dur¬
ing
the
postwar
years,
these
support
operations
usually
ran
ties, to offset
at
for
increase
and investments. And because
of Federal Reserve System.
structure
purchases
banks and pro¬
the
made
wnich
perhaps
ket,
how¬
lesson
the
reserve
flationary
policy. Says Treasury should
Reserve, and opposes replace¬
Board
had
vided
policies and points out
difficulties experienced in attempting to balance sound national
credit policy with Treasury's fiscal and debt management ideas.
Upholds independence of Federal Reserve, but says it must
ment
into the
we
in
sell
not
put
two
or
ever,
funds
banking system almost as
multiple
Mr. Sproul reviews Federal Reserve
conform to national economic
could
This
one
on
of this experience,
aspects
machinery, tne securi¬
direct
President, Federal Reserve Bank of New York
not be subordinated to Federal
you
market.
if
By ALLAN SPROUL*
.
dealer
touch
do want to
I
effec¬
purchasing^through
meant
tive
Thursday, December 13, 1951
...
friends and allies abroad.
only final and constructive
But the
answer
Volume 174
Number 5072
,
The Commercial and Financial Chronicle
;-V.
(2247)
,
to
the
the
lack
of
balance
supply of goods and
and
the
tion.^-
services
supply
expansion of produc¬
creased supply of goods and serv¬
ices growing out of increased
duction
effi¬
additions
and machines. That
men
from the
reserves
banking
system,
of
increased
the only way we could adjust
to the increase in costs which had
was
already taken place in
without
omy,
the
our
econ¬
hardships
under
banks
severe
had
been
to follow
much
a
course
in
trade.
If
financing
placed
dition—on
prices
securities
had
of
had
bad
to
have
amounts.
ful,
in
action
reduce
It
less
than
extremely
opinion, that
could
have
time
been
1951,"
and
a
faced
we
in
lot
a
tra-, tive
on
its
ward
timely and
Federal
Reserve
generated
believe
the
best
the
of
use
little
In any case,
the
to
supply.
money
concerned,
was
debt
the
centuated.
into
budget
than it
There
had been earlier.
Interest
following
application.
with
drastic
due
inconsistent
to
the
Treasury,
and
many
bankers
and
supply in the
years
following the end of the
war, without seriously hampering
money
the
to
differences
to
and
and
the
seemed
ineffective
public, because of
only
prices
were
features
of
vestors
our
practicable to
force
security
restraints
We
not
were
the
more
by
It
increased
predicted.
expansion of
private
en¬
to
pro-
of
Federal
Reserve
effective support of
a
.,
f'S"1, principal lenders,
„!?!?
your own. On this ocfSI°" we have been operating _ia
an atmosphere favorable to credit
resUamt and wth widespread un-
willingness of the public to
It was certainly high time
the
\
+u,
spend.
for
credit
coordinated
a
the
had
try to
general
severe
widely
rapid
a
System
get wholly out of the business
pegging market prices of Gov-
Continued
011
New Issues
;
':f-
$65,000,000 V
'
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'
'
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.
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,
,
,
-Vr'
v
,
.:y-VV.-/
V.V/L
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!•':
•
V
> •••..
:
-' '
•
•
■
£
■
■"
'
'.
■
State of New York
1.30% and: 1.5Q% Grade Crossing
y
Eliminatibn (Serial) Bonds
Doted December 15, 1951
Due December 15,
shown below
as
Principal iUul semi-annual interest (Tunc 15 ajVd poeembjrr 15) ,payable itv Xe\v Yodc City at: tlia Bank of tlic.ilaiiliattaiv Company. Coupon bonds in
I
I
Company.;
Uenoiirmafion of $1,000 eaeh, exchangeable for bonds
registered as to principal and interest in denomination of $1.000, $5,000, $10,000 and $50,000.
pr
- 1
- *
* ■ •
'■
...........
.
*d Interest
..<>■.
Legal Investment Jbr Savings Banks and 7
Acceptable
to
Exempt from
-
.
-
...
Federal and New York State Income 'J axes
present
Funds in New York and certain other States and for Savings Banks in Connecticut and Massachusetts
rust
the Slate of New York
and
...
security for state deposits, to the Superintendent of Insurance to
as
secure
policy holders,
the Superintendent <>J Banks in trust for Banks and Trust Companies
to
AMOUNTS, MATURITIES AND YIELDS OR PRICES
(Accrued interest to be added)
►
,
-
$45,000,000 1.30% Grade Crossing Elimination Bonds
Due December 15, 1952-61, incl.
Bonds maturing
December 15, 1961, redeemable, at the option of the State, at
accrued interest,
June 15, I960,
on
or on
any
par
and
interest payment date thereafter.
$4,500,000
1952
$4,500,000
1955
1.10%
$4,500,000
1959
4,500,000
1953
1.00
4,500,000
1956
1.125
4,500,000
1960
4,500,000
1954
1.05
4,500.000
1957
1.15
4,500,000
1961/60
4,500,000
1958
1.20
•95%
1.25%
@
100
1.35%
$20,000,000 1.50% Grade Crossing Elimination Bonds
Due December 15, 1952-71, incl.
Redeemable, at the option of the State, at
all of such bonds then
outstanding,
par
and accrued interest,
all of the bonds of
or
on
December 15, 1968,
or on any
interest payment date thereafter,
single maturity beginning in the inverse order of their maturity.
a
$1,000,000
1952
$1,000,000
1957
1-15%
1,000,000
1953
1.00
1,000,000
1958
1.20
1,000,000
ea.
yr.
1963-64
1.000.000
1954
1.05
1,000,000
1959
1.25
1,000",000
ea.
yr.
1965-66
1,000,000
1955
uo
1,000,000
1960
1.30
1,000,000
ea.
yr.
1967^68
1.55%
1.000.000
1956
1.125
1,000,0.00
1961
1.35
1,000,000 ea.yr.
1969-71/68
1.60
The above Bonds
ore
'•
Kuhtt,
& Co.
.i.'V:'-'yr/'
Hallgarten & Co,
•„
-
«
v
.
./%
-
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4.
&TrustCompany
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.Bear, Stearris & Co.
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Kidder, Feabody&Co.
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Louis'
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The Philadelphia NationaJ Bank
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1:40%
1.45
@
100
'
Barr Brothers & Co.
c
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of Western New .York
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r
R. W. Pressprich &
■»
s
'
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ManufpcturersTrust Company
Salomon Bros. & Hutzler
.
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Ladenburg, Thalmonn & Co.
*
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The Northern Trust Company
'
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:
Ingen & Co. Inc.
Geo. B. Gibbons & Company
Incorporated
Adams, McEntee & Co., Inc
.,,
'
Gregory & Son
: \
■....
'
• .;;.
,
' '
\
* Horhblower & Weeks
,■
..
Co. -..
A. G. Becker & Co.-
Bache & Co.
..
.
.■•"■V"'
W. E. Hutton & Co.
Incorperot.d
Carl M. Loeb, Rhoades & Co.
Incorporated.
'
t,
White, Weld & Co.
.
W. H. Morton & Co.
..
Hannahs, Ballin & Lee
-
..
R. L.
.'
incorporct.d
The Public National Bank and Trust Company
.
Day & Co.
,'V .:v;
ol New York
Detmer & Co.
-
Francis I. duPont & Co.
"
'
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'f: 'y. ''fNf','y}yf' ''V-\f
i
A".\:f.. VV.';'.,,
• ;
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Weeden & Co.
WptrcW
Green, Ellis & Anderson
■
.
.
,:■■■■;
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•
-
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12, 1951
'
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-
Inco'poial.d
i
^
State Bank of Albany
Fidelity Union Trust Company
;'A
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V
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Newark
Swiss American Corporation
of Albany
William Blair & Company
J,
Julien Collins & Company
Paul H. Davis & Co.
:'
Hoyden, Miller & Co.
Schmidt, Poole & Co.
J. G. White &
Company
Incorporated
New Yorli, December
'
Schoellkopf, Hutton & Pomeroy, Inc.
Laurence M. Marks & Co.
National Commercial Bank & Trust Company
'
*
A. C. Allyn and Company
'
'
,
L. F. Rothschild & Co.
L. F. Rothschild & Co.
Reynolds & Co.
First of Michigan Corporation
.
..
,
f
Buffalo
.
Stone & Webster Securities Corporation
■■
v
'
^
Manufacturers & Traders Trust Company
Kean, Taylor & Co.
'
t
B. J. Van
,
Harris Trust and Savings Bank
y/:y>'
,
-.v."
4
1
Co.
I
Hemphill, Noyes, Graham, Parsons & Co.
"
*
Bank of the Manhattan Company
r,
Shields & Company
'
'
The Marine Trust Company
.
Mercantile Trust
'
1 '
4
^
K
Estabrook & Co.
.
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.
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'.
,
Equitable Securities Corporation
,
v
Bfyth & Co., Inc.
'
i
Blair^ Rollins & Co.
„
'
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C. J. Devine & Co.
"
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(
1962
its and if issued mid received h;i us. mid subject to /trior sale mid ii/fjiroral of hi/uHlfi .by I hi' Atlornen (leu end,
of the
Jl is-expected that Interim Certificates will lie delirecnl in the first instance iwudiiuj preparation of Dejinitiee Bonds.
The Chase National Bank
Chemical Bank
$1,000,000
offered when,
Stale of Sew Yjirk.
•
•,
•95%
,
maintenance of orderly day-to3,ay conditions, and the Federal
R_eseryeregained, more completely
than lora decade past, the lnitiabve w!th rfP.ect t0 the.av?llabl1;
!ty a?d c°st of reserve funds. And
tbls freedom has been buttressed
supply growing out of
financing—not
longer out of defense financing — and,
market equally important, an increase in
accustomed.
were
become
involvement with the Government
market.
no
was
,
The Government security market
wa® tben set
t°r tbe
Deficits in the Federal
were
.
the money,
to' landscape to which traders and in¬
■
businessmen
and
fixed
expansion of plant and
were revised upward,
.
longer
the
supply of long-term Government
securities overhanging the market
byjneans of a conversion offering
and by Fedeural Reserve and
Treasury purchases of securities;
'r°m 'hose who ?tlU wanted eash;
led to
scarcity
inventory accumulation prorapidly. The residential
building boom, which had been
deliberately encouraged by very
liberal financing terms, was ac-
investor portfolios and better held
our
of
ceeded'
far
fitted
better
was
...
regained
were
period
a
on
.™1iwa= "lately worked out
with the Treasury; an accord was
reached last March. A final attemp,t was, made to remove the
test.. Strong
had
restraint
availability of credit.
and
war-
J3o
the
Consumers
that
ment and
long way to¬
a
up"
to
of
program
war
df'goods!and increases in prices
lay ahead and they acted accordingly. Business plans for improve-
the
the Government security mar¬
as
such a tradition, and. ket
question whether it has: term
it has had.
''growing
ernment securities, and to step up
its
.
^.e
m
imperative to put
it
program
facilities} and of housing and equipment
had," in fact, gone
ac-~
made
appeared.
have had
we
of
...
the ascendency. An insistent
largescale demand for bank credit re-
<
>
different situation
very
that which
up
doubt¬
taken
1950
face
,
inflationary forces
policy of modest credit restraint,' rates at short-term had already
the war, was tardy in moved upward, so that static rates
hesi¬
adequate
is
my
the
forward
come
to
than
failed,
belief that
The
may
made
immediate postwar years, the
supply ~ of
capital
for
business
tantly and in
build
you
in
the
might
holding
In
-
System has had little enough time
and
fall
Credit
;*£/y\■ ment Neededffz/iry/p
Our fail¬
we
be wise and-
effective.
Government
a
in
•
depends
the
tions will
a
business
nor
supply.
of
Restraint and Debt Manage-
available to the
to the extent that
central bank
restrictive
more
this
substractions
and
outbreak
-
Korea
Coordination
More
,
The
t/....
a
failure to gain sufficient- years following the war. - By 1950
understanding and acceptance for this • nation had achieved a tre¬
our
policies. The- influence of .a mendous expansion of its produc¬
drastic
credit policy, they would have had
by
pressure
nS^gemen?^^ P°hey and debt
the job we might
do
not
was
.
the
to
down the money
ure,
and
suffering and the economic losses
of widespread
-depression and un¬
employment..
If
We did
have done.
*
we did attempt, was not in
arithmetic; it was not in our
our
out
—
to create
the atmosphere of credit restraint.
which
pro¬
ciency of
able,J except occasionally,
C.
in¬
Where
we
fell
shorty1 in the
in¬ modest program of credit restraint
of money,
the war, was an
herited from
the necessay
between
page
98
I.
P
The Commercial and Financial Chronicle
(2248)
...
Thursday, December 13,1951
million for the parallel period in
Canada's Astounding
Industrial Advancement
1950, and since farm cash income
is
be
By H. A* STEVENSON*
cooperation
As
threat
of about
the
gressively outstripped those of the
f
democratic
to
powers
bring
to
previous
the
war
and
tion. It has been
in
Korea
to
other parts of
the globe. On
of
an¬
levels
in
unprece¬
last
real, Que., Canada.
Defense
Expanding Foreign
production,
put up
never
volumes
and
1935-39
con¬
its
of
the
production,
international
which 35% of
H. a. Stevenson
to
production at
registered
100,
equal
on
109.3 in the year
at
$4,614 -million surpassed that
for the similar
period last
by
year
ciliation be¬
1939 and 198.8 in 1944. In 194$ on 35%, a very heavy increase in¬
deed but one which nevertheless
fee achieved and the path to estab¬ peacetime reaction it dropped to
resulted in a balance of trade deflishment of more peaceful inter¬ 159,2, but at May this year it stood
national relationships broadened, at the remarkable figure of 223.4 icit of $332 million, as compared
feut hopes have hot materialized!
and is running slightly lower now. with a deficit of only $7.7 million
We have to be grateful for the
for the same period last year—a
It is not surprising as a con¬
courage
and
perseverance
with
the
United
Nations
have
been dealing with their enormous
task in the face of
difficulties.
ever-increasing
has
Trouble
been
notable difference.
rather
that unemployment has
sequence
been
Our
almost
negligible, and that
the latest labor survey shows that
all but 1.8%
of the country's en¬
months
seven
with
the
total
United
amounted to
trade
Kingdom
$596.2 million
an
—
blowing in from all quarters and
increase of $103.9 million over the
it is indeed regrettable to see-that, tire labor has been gainfully en¬
previous year's first seven months
recently, a strong wave of ex¬
gaged, and that total industrial
treme nationalism and insurgency
—with a resultant favorable trade
and' service employment has risen
has
been
overrunning
several
balance of $60.4 million compared
countries
of
widened
the
the
Orient and
breach
ominous way.
has
has
between
East and the West in
the
somewhat
a
The tension which
nearly
spreading
7%
that
above
a
to
Attendant
year ago.
upon
tensified
employment,
greatly
the
to
total
months
peacemakers,
naturally
has
and
of
this
year
is
the
also
furthered
their
rapid
The scale
the
necessity
which this has to be
diture
and
terial
resources
to
an
which
the serious
economic
Welfare
dustrial groups showed
riod
ending
July
approximately
ma¬
can
but
jriod
same
world
over.
the
a
upward
strong agricultural posi¬
en¬
clay's
Nov.
Bank
20,
Bar¬
For
the
Montreal,
was
million
{Canada),
products
as
Can.,
1951.
deficit,
$373.9
million
however,
mounted
reached
and
compared with
as
$87.5 million for the corresponding
of
proportional
Canada's
first
entire trade
months
seven
distribution
for
the
66% with
was
first
half
of
the
United
the
Kingdom
rest
21%
and
the world.
of
with
The per¬
approximately $1,246 centage of transactions with the
compared
with
$887 United Kingdom has declined and
tendency noticeable in recent
for
years
Canada
INTERNATIONAL ARBITRAGE
—
Foreign Securities
Foreign Coupons
trade and
to become
reliant
veer
the United
on
market for her
Scrip
away
States
becoming
the
interwoven
more
influence
ada's
de
37 WALL STREET
Telephone HAnover 2*5590
Jong
&
NEW YORK
Co.
5, N. Y.
Teletype NY 1-1401
for
affairs
more
fortunes
seems
exercised
by
neighbor to the
our
Stocks—Comparative figures—G. A.
Co., Inc., 70 Pine Street, New York 5, N. Y.
Utility
Saxton &
Common
assessing business prospects
selected list of securities with attrac¬
tive investment possibilities for 1952—Ask for Copy C—G.H.
Walker & Co., 1 Wall Street, New York 5, N. Y.
Securities Outlook—January issue
for the new year,
with
a
Street, Toronto, Ont., Canada.
Transfer Tax Rates—Booklet setting forth
State
Company, 50 Church Street, New York 7, N.
seen
♦
*
Acme Steel
current Federal and
original issue and transfer tax rates—Registrar
stock
and Transfer
that
an
Y.
»
Company—Bulletin—Faroll & Company, 209 South
La Salle Street,
In the same bulletin is a brief
Chicago 4, 111.
Corporation—Analysis—Dempsev
Admiral
Company,
&
issue of "Highlight"—Troster,
Singer & Co., 74 Trinity Place, New York 6, N. Y.
the same issue are comments on Reaction Motors.
Allied
Shoe
and
Broeck
as
our
on
Airlines.
United
Co.,
Ltd.—Memorandum—Oppenheimeiy Van-
40 Exchange Place, New York 5, N. Y. Also
memoranda on Anaconda Copper Mining Co.,
& Co.,
available
are
Natural Gas, Gulf
Paso
Oil Corp., and Texas Gulf Pro¬
ducing Co.
Company—Analysis—Eastman, Dillon & Co., 15
Street, New York 5, N. Y.
Gernon, 105
Caspers Tin Plate Co.—Memorandum—Dayton &
South La Salle Street, Chicago 3, 111.
Central
Service
Public
Vermont
Co.—Analysis—Ira
Chase
of
Bank
National
City
the
of
New
York—Circular—
Salle Street,
Remer, Mitchell & Reitzel, Inc., 208 South La
Chicago 4, 111.
Edison—Review—Dean
Consolidated
Witter
Co.,
&
14
Wall
Street, New York 5, N. Y.
Consolidated
&
Railroads
of
Cuba—Analysis—Bruns, Nordeman.
Co., 321-323 Broadway, New York 7, N. Y.
Electric—Circular—Hirsch & Co.,
25
Broad
Street, New York 4, N. Y.
Continued
on
page
are
and
that
Can¬
For Banks
Reaction Motors
Our Current
v"Highlights"
Comments
Brokers
and Dealers
Aircraft Radio
on:
Troster, Singer & Co.
still
Members:' N.
Y.
Security
'
r':
ever-increas¬
74
Telephone:
HA 2-2400.
48
Dealers
Asscciation
New York 6, N. Y.
Trinity Place,
-
page
110
a
ing proportion of our total interon
Haupt &
Co., Ill Broadway, New York 6, N. Y.
powerful,
destiny
Continued
New
Also available are data on American Brake
5, N. Y.
El
Also in
Stores—Data—A. M. Kidder & Co., 1 Wall Street,
York
135
Chicago 3, 111.
Aircraft Radio—Data in current
south is binding
and
226 Bay
Strategic Metals—Analysis—Rittenhouse & Company,
of
closely to theirs.
It is
N. Y.
Co., 1 Wall Street, New York 5,
Public
The economies of
interdependent and it
Albert
Profit—Suggestionsr—Ross, ICnowles 8c Co., 336
Bay Street, Toronto 1, Ont., Canada.
Potentialities in Tax Savings—Bulletin—Francis I. du Pont &
Portfolio
increasingly
Canada and the United States
Serving banks, brokers and security dealers
New York.
Inc., 46 Front Street, New York 4,
products continues
—and strongly.
and
1833, 1840 and 1858—National Quotation Bureau,
of the years
Cornell-Dubilier
to
from the old traditional pattern
Foreign Exchange
.
Bucyris-Erie
Importance of U. S. Market
The
the
.
beginnings in 1900 or earlier.
Twenty-three
of the companies have been paying dividends continuously
from seven to seventy-nine years. Of the other twelve, one
started paying dividends 119 years ago, and its stockholders
have received annual dividends regularly with the exception
nine had their
American Metal
joying high rewards for their la¬ the United States, 13% with the
year payments for the sale of farm
the
of
balance
Our
substantially
the Civil War and another
ancestry to years before
their
~
Broad
tion, and farmers have been
Mr. Stevenson at the An¬
of
approxi¬
period in 1950.
"Address of
Meeting
of
a
pe-
bors.
Shareholders
34.24%.
trade
Since the end of the World War
nual
increase
striking
mately
this virile and high¬
up
for the same period, showed
year
ly remunerative industrial condi¬
tion is
Canada's Continuing Growth
This, against $2,262.9 million last
at
continues.
Backing
United
the year was $3,037.6 million.
quite
figures
the
and
of
gains and
$5,460,000,000,
over
1950;
in
trend
detriment
the
31
Quotation Bureau Averages, both as to
yield and market performance over a 12V2-year period. Of
the 35 companies represented in the National Quotation Bu¬
reau's Over-the-Counter Industrial Stock Index, 12 trace
South La Salle Street,
a
expen¬
segregation of
a
All the in¬
the total for the seven-month pe¬
17.2% advance
continued must involve
redound
for
military rearmament.
on
billion dollars.
by al¬
appre¬
hensions of the democratic powers
and
a
year
the
with
trade
re¬
period last
same
most
intensified
Overall
up-to-date com¬
analysis of Southern Company.
States for the first seven months
having surpassed that of
of
the
for
period in 1950.
Ca¬
nadian labor income for the first
million
$52.6
this in¬
corded as
burden
of
one
same
has
abroad
of
the
the
of
by
seven
been
added
used in the National
>
For the first seven months of this
period year,, the turnover of foreign trade
the
using
Building,
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
from
population di¬
our
in the Bond Market—
Decline
the
and
Over-the-Counter Index—Booklet showing an
of
course
trade,-
Canada
in
Analysis—Saunders, King Limited, Montreal Trust
Toronto 1, Ont., Canada.
completely
tween conflicting ideologies might
which
Deflation
Canada has
more
a
the Outlook for the Government Bond
G. White & Company, Inc., 37 Wall
Street, New York 5, N. Y.
Looking at the whole picture of
internal
Program and
Market—Brochure—J.
Trade
our
Montreal, Mont¬
Canada—Monthly business review—Bank of
country's history. rectly or indirectly derive their
livelihood,.is worthy of reipark.
the
industrials production, - based
meas-
of
mre
this
and
Meeds, 120
Bissell &
Outlook—Bulletin—Laird,
Stock
Broadway, New York 5, N. Y.
The Bureau of Statistics index of
United Na¬
a
Bank
expansion and becoming yearly more dependent
on markets abroad for the disposal
endeavor,
reached
has
dented
good
ticipate that
through the
tions
business
tion
ap¬
to
reason
a
year's volume of national produc¬
Occasion, there
parently
to
Jr.—
Hudson,
Avenue, Baltimore 11, Md.
—$1.00 (lower prices for quantities.
intense activity in every line
of
been
superior
prove
is no excep¬ satisfactory performance, but, as
our country's economic "welfare is
period of great
economic
national
armed strife in
has
to
J.
Market—William
Stock
Biggest
Monumental Press, 32nd and Elm
of
excess
fashion and this year
end
an
remarkable
in
years
America's
Grading is also
crop.
be pleased
parties the following literature!
is
program.
which has attended the
of
year's
Canada has made astounding
II,
the
approximately
is
send interested
to
year's.
under review, feelings of great
industrial advancement: each
disappointment prevail at the lack
year's accomplishments have pro¬
of success
efforts
which
118,000,000 bushels in
likely
It is understood that the firms mentioned will
is
580,000,000 bushels is ex¬
pected,
last
Recommendations and Literature
A yield
anticipated.
Canada's
back at the year
and
completed
confidently
economic
Outlines rearmament
best remedy.
as
looks
one
for international
calls
and
Harvesting
largest wheat crop in history
and stresses rapid industrial
and agricultural advancement in recent years.
Points out
growth of Canada's foreign trade and its close link to American
and British economy. Explains Britain's economic plight, and
its impact on Canada. Says "world is astoundingly bullish on
Canada," as evidenced by inflow of foreign capital. Sees world¬
inflation
received.
practically
financial situation in his country,
wide
confidently predicted that total
viously
economic and
executive reviews
Prominent Canadian bank
can
1951 income will surpass any pre¬
President, Barclays Bank (Canada)
Dealer-Broker Investment
invariably greater in the second
six months than in the first it
Teletype NY
hPrivate
wires
1-376;
377; 378
to
Cleveland-Denver-Detroit-Los Angeles-Philadelphia-Pittsburgh-St Louis
*
Volume 174
Number 5072
...
The Commercial and Financial Chronicle
(2249)
been
"New Economics
COMING
EVENTS
face
ff
For New
Field
Investment
In
By LEON H. KEYS ERLING *
Chairman, Council Of Economic Advisers
(Cincinnati, Ohio)
Dec* 13, 1951
Cincinnati
Stock
Asserting
Club
Bond
&
need for these times
we
undesirable
is
that
in the
current world situation which we
economics, differing
a new
certainly have the highly
developed natural resources, the
highly advanced technology, the
highly developed plant and equipment, the highly trained labor
skills, and the highly efficient
organizational abilities, to give us
an
overwhelming potential prewe
ponderance-
the dark forces
over
criticism has
a place within,, re¬
sponsible free government as well
as
outside of the government,
Therefore, what I am going to say,
realizing as I do the great accomplishments, will pf necessity try
to point the way to further proggress, will of necessity identify
some broad areas in which I think
we as a
from the "moribund" economics of the
Jan* 29, 1952 (Chicago, III.)
dent's Economic Advisers holds "old economics? did not look
arrayed against us. If any sober
ahd patriotic American citizen Cant;
quently
enough ahead and lacked
to
of Chicago
Bond Traders Club
? annual
dinner
; Club:
•;
i
Furniture
the
at
"
range
'®./ -
•
Winter' Meetings of
Board
of
diffi¬
"
Governors of Investment Bankers
7
Association
-
,
'Beach' Hotel.'
th
at
-,
culties, and;
Edgewater
e
®;;. .7
;
-
Texas
'
Group
production and less
-
V If
Investment
Spring Meet-
of
Bankers Association
•
Ing at the Hotel Galvez.
i:
:
do
the
frotn
salient
®.®;
th e
of
we
:;®:, planning in
d e
r
recognizing the re¬
to try to fit separate
specialized undertak¬
ings, into the framework of
fied
such
that of the#
"Utiited States
u n
make it; and, third, plan¬
programs,
an
a
uni¬
and
consistent/ over-all ap¬
proach. r"? Tp v,
,•!' C X7"
®' ',v
-7 as
j
increased
means
viewpoint sponsibility
economy
-.7'• ^ 7r;
can
ning
characteristics of
!
Investment
Bankers- Association.''?7■
my
on
savings and individual sacrifice.
on
anything useful
it is to try to
Spring Meeting of the Board of
Governors
~
can
planners,
define what
are
:
May 14*17,-1952 (White Sulphur
Springs, W. Va.) > • •
>
I
among -;
|
\
;
view! rate of productive growth could he
doubled in next two years. Urges more emphasis
-
May 1-2, 1952 (Galveston, Tex.) 7
>.
expresses
-
! the
"Now; I think; that some eeonomists have been particularly dere¬
world condi- lict in not weaving into their work
> tions whichwe a sufficient amount of this kind of
X now face, and
planning;, as so defined; and I
h will face for a
think that this omission has had
>
Sept 28*Oct 1, 1952 (Atlantic v
'
■>;
.
'J.;
City, N. J.)
,
■*: American
>
:
■
Association
>7 *
Bankers
Annual Convention.
1® Oct* 19, 1952
®;:® ->£ • \
time
NationaFSecurity Traders Asso¬
ciation Convention at the Honey
Plaza Hfctel. v*
"
'.r ®7®; -®''/ -•
7; salient char® act eristics of
7
Ha.)^ ^
^
'
Nov. 39-Dec. 5,
1952
(Hollywood, Fla.)
Investment Bankers Association
»
•-
•
•
Annuafc Convention ;at the Holly¬
■'
wood Beach Hotel*
-
Stedman to Be Partner
In C. M. Loeb, Rhoades
Loeb, Rhoades & Co.,
42 Wall Street, New York City,
7 members of the New York Stock
"new economics" I do not mean
a
the economics of the
Stedman to
-
~
Mr.
partnership
Stedman
firm's
is
<
ait
one
time
was
1930s, which
called "the
can
planning
—as
reasonably
means
clear and
having
as
fluence upon economic
second,
see;
a purpose
courageous
byPlanning
Association Meeting, Washington, D. C.,
December 4, 1951.
policy have
tended to lag.
as
"'Partial transcript of an address
Mr. Keyserling at the National
Co., 509 Fifth Avenue,
New York City, members of the
New York Stock Exchange, on
Jan. 2 will admit Mabel Bleich to
This is under
a
no
solicitation
will see here by the old economics
special skills and all our spe- j include some of. the economics
competences; to weld those; 0f today—it contented itself with
together both at home and abroad
our
;the^yeiy interesting parlor,
into
unified and therefore
effective
dynamic and
undertaking
as a
that
we
have
I
made—and
set. But the better we do, the betwe
say,
should seek to do.
Let
me
here and now, that I believe
very
of
strongly that those In charge
operations under the great ef-
fort
we
done
a
are
making
now
have
superlatively fine job, tes-
tifying to their high fortitude and
capacity-and I
am
not on this
always beUeved that
And let me say this: The reason
why I believe that this lag has
was
a
public servant
not solely to be a
salesman,
and
that
casts - of the economic situation,
^
whole.
I do not share these doubts.
ter
offer to buy,
any
traveling
candid
precise timing'and direction of
price trends and production trends
ovexv^the next few weeks or
N"w this has m my, judgment
a cramping effect even in normal
tunes, and more so in an emer®ency l*11® this, upon national eco**®mtc policira. This kind of very
short-range forecasts, while they
va ua 'e t° the single
businessman insofar as they have
competence-! mean insofar as the
forecasts have competence; the
busineafaan certainly does have
-nonetheless they are not of much
va'ue *° a ^rea7 nation seeking to
Continued
self-
NEW ISSUE
$10,000,000
withdraw from the firm.
Two With Harris,
Upham
The Colorado Fuel and Iron
Corporation
(Special to The Financial Chronicle)
Fifteen-Year 43A% Convertible Debentures
BOSTON, Mass. — Charles F.
and Henry C. Flory have
become
associated with Harris,
Dean
-
Due December 1,1966
Upham & Co., 136 Federal Street.
previously with L. F.
Rothschild & Co. and Mr. Flory
Mr. Dean was
was
•'
with Goodbody & Co.
(Speoial to The Financial
Chronicle)
SAN FRANCISCO,
•
1
Price 100% and accrued interest
With Mutual Fund Assoc.
Calif.—
Copies of the Prospectus
Ewing Harper is now with Mutual Fund Associates, 127 Mont¬
may
be obtained from the undersigned only in suck States
where the undersigned may
legally offer these Securities in
gomery Street. He was formerly
with Paul C. Rudolph & Company.
_
compliance with the securities laws thereof.
With Hamilton Maiiagem't
.
Allen 8c Company
(Special to The Financial Chronicle)
Colo. — Donald A.
and William C. Wil¬
DENVER,
Lundberg
ling
are
Hamilton
now
connected
Management
Union Securities
Corporation
Carl M. Loeb, Rhoades & Co.
Bear, Stearns & Co.
Auchincloss, Parker 8C Redpath
Blair, Rollins 8C Co.
with
Corpora¬
Salomon Bros. 8C Hutzler
tion, 445 Grant Street.
Incorporated
With Gibbs & Coe
!
(Special to The Financial
Chronicle)
A. C.
Allyn and Company
Joins Bache Staff
(Special to The Financial
Chronicle)
BOSTON,
Mass.! — Peter
J",
Rosenthal 5s row affiliated with
f
v
wBache & Co*, 21 Congress Street.
Terry 8C Company
Incorporated
WORCESTER, Mass.—Frank W.
Harding, Jr. is now affiliated with
Gibbs & Coe, 507 Main Street.
Hirsch 8C Co.
Boettcher and Company
Gross, Rogers & Co.
December 7, 1951
E. F. Hutton &
Hamlin 8C Lunt
Company
°
,
•
as an offering of these Securities for sale, or as an offer to buy, or as
of such Securities. The offer is made only by means of the Prospectus.
31, Charles H. Gross,
the Exchange, will
game
sufficiently consistent andof .making .veryshort-range fore-
a
the function of
Realized
,
cial
Yet I have
Our Economic Potentials Not
an
do etreii
he may-doubt our ability, with all
operational line.
partnership in the firm.
of
.
circumstances to be construed
of
to
certainty of our winning
the long ruiT, it "OldEconomics" Did Not Look
just because he - doubts
Enough Ahead
our ability
to^ plan in the three
In; the first place, a heritage
aspects that I have; mentioned. He .^ich has come from the old ee&may doubt our ability to:
lookfar,„nomiesis the.unwillingness or the
enough ahead or want .to look ..farlack of desire to
look, far .enough,
enough ahead. He may d|pubt the ahead,: which I have called the
tenacity oF our purposes. m ad- first basic element in democratic
hering to the central task which planning in a free
country. The
we have set out for ourselves de0lCeconomics tended for the most
spite quick and superficial: oscil- part to. describe and
analyze the
lotions in what seem to be con-;
past:; Insofar as it• looked, ahead,
ditions- throughout the worldrand
it mostly contented itself—and you.
department.
Gross & Co. Admit
Dec.
seek
on
Gross &
On
new
planning,, and economics," but which I think -is
then relate as moribund related to the
present
Leon H. Keyaerlinf
77 them to spe¬ situation as the economics of 1900
cific problems! was in 1933*
of national policy, as follows: first,
In the three important respects
planning means trying to look which I have
mentioned, I think
ahead—as far and as clearly as
that some economists in their in¬
we
must
better,
Jan. 1.
Manager of the
institutional
member
as
-
Carl M.
Exchange, will admit Samuel L.
minute
a long-run
effect upon national;;
policy. I think that we need a hew will continue to make—enormous
economics for-these times; and by; progress in the task that we have
I my
belief. :
771 shall try to
'define these
(Miami,
a
be
think
in
for
as a gov-
the
must
significant
more
than control of inflation. Forecasts increasing manpower
"
even
we
this struggle in
approach in meeting current inflationary problem, hut
holds solving basic production problems is
111.)
Feb# 8-9, 1952: f Chicago,
have doubt
and planning. Favors long
purpose
nation and
ernment have not .done quite as
Well as our very best, and conse-
election of directors.
1930's, chief of Presi¬
|
Abraham 8C Co.
Peters, Writer & Christensen, Inc.
on page
82
Id
(2250)
The Commercial and Financial Chronicle
products
Productivity—Key to Prosperity
tion
in
And Peace
of
many
Still
President of General Motors
lists
of
essentials
as
•
American
our
industrial
Points out
and
consumers
consumption, and
expanding
an ever
is the full
dual
consumers
West Coast investment counsellor, in sizing up trends in busi-
recog¬
role of
work¬
as
the
affecting
ness
;
well
as
Investment Counsellors
our
pro¬
investor,
Sees high level
to
year,
In
mass
industrial
an
part of the
society the
peak
a
important
an
market for most
mass
goods.
consumer
consump¬
Products
In
must
of economic activity in 1952, leading
excepting only for corporate profits and divs.
light of the current extreme
problems without losing their freedoms.
It
as a pleasure and a privilege
participate in this First Inter¬
national
turers.
Conference
I
of
tries
are
you
that
\
en¬
ply the other fundamentals of
your
visit
the
are
s
their part
our
the necessity of
prises
in
ideas
which
the
with
to
stimulating
et
not fit.
urn
the
in
s i-
b
y our
u
nesses, and thus not only
improve
businesses but improve the
your
-economies of your
We
have
visitors
sent
booklets
in
The workmen
Important
to
each
During the last 40
American
twice
„
Industrial System
our
containing
with
General
dealing
of
The first essential of
ican
Motors labor contracts, personnel
policies, organization responsibil¬
ities, i. production and
economic
policies.
These booklets contain
ity
industrial
ceptance
petition.
system is the ac¬
Americans of com¬
by
The
responsibility
had
lor
individual
many details I do not have time
to discuss today. I hope that
they
trill
contribute
understand
you
fundamentals of
I know
visited
the
that
the
many
of
plants
and
area
have
America
to
with
in¬
Impressed by1
and
tion
are
our
to
think
that
the
is
the
of
essence
our
production system.
American
They will be
confusing the form with the
talk
by
international
Mr.
Wilson
sub-
Conference
the
at
of
First
production
that parts
so
of
effi¬
our
system
is
tional
care¬
same manner
Dr. Kettering likes to
say we publish automobiles. Mass
production also requires a careful
balancing and utilization of ca¬
pacity for the production of all
the
sary
ply.
things that
are
neces¬
level
now
have
of
the
be
to
In
addition,
of
more
our
would
as
This
of
animals.
It
human
to promptly deliver quality
is
worth
beings
Continued
on
structure. 777'7"
7:7' 777:
important to differentiate
re¬
Bank
traditionally
87
With
control
tion
minded.
1952
'
'
7'■■
To
'7 :'
mature
*
*
vV7"7.!''
■■
.
'
.
*
.
:/:'''
'
$65,000 semi-annually July 1, 1952
•
7.
v'
.
*
:.«
-
•
7
to
.
.
77''
'
"
'
.
■
■
-7%
»
Since
ojpar value and dividends by
Chicago and St. Louis Railroad Company
7 "•
"7
to
7
_
yield 2.15%
to
" .'"7
3.20%,
.~7-7
according
w
to
.:
-7
7
an J
sale
of these Certificates
are
R. W. PRESSPRICH & CO.
McMASTER HUTCHINSON & CO.
December 6,
have
•7
higher
The
pects.
;Y
political
as¬
admittedly shows political astute¬
part
the farm and labor groups,
entrenched
seg¬
ments of our economy have cer¬
on
inese
tain
strongly
vested
interests
which
atre
continuously being observed. More
and*
farm * products
have
enjoy price supports. It
more
to
come
be
can
assumed
prices
will
that
give
the
the
ceiling
farmers
a
lovely income and that food
prices, which ha\te agaih started
very
to advance, are
likely to edge up
further in the year to come.
As to labor—the
wage ceilings
look very nice on paper.
However,
that
trols
of
illustration
so-called
a
of
the
fact
government
con¬
only diminish the extent
trend, but cannot eliminate
can
it where there
are .strong under¬
lying forces at work. By way of
example, r the steel unions un¬
•
doubtedly will receive
that
crease
will/lift
the present
wage
another in¬
them
above
ceilings.
poses.
The social asoects
Continued
to
concept
been
John/
of
•I
'
;
•
economy
f"
our.
ad¬
t
Maynard
compensatory
•
is
at
levels
peak
FREEMAN & COMPANY
should
operate
pects to
our
this
tended
has
political,
work
'
-
in
only
.will
tend)
way.,
Stack
Exchange
7
New
York
CUrb
Exchange
V
New
„
York
Cotton
Commodity
Exchange
Exchange,
Board
Orleans
of
Cotton
other
Ihc.
'
Trade
Exchange
Exchanges
CHICAGO
to
When
N. Y. Cotton
Exchange Bldg.
NEW YORK 4, N. Y.
In practice
(and for obvious
one
York
a
economy.
reasons
,
New
And
budgetary surplus and, thus, im-'
part
some
anti-inflationary as¬
CO., INC.
Members
7
Chicago
and
on
H. Hentz & Co.
New
private spending ia large, the gov¬
ernment
90
page
Established- 1856
days,
have
the
on
pur¬
(and, ,of
'
>
levels: and, conversely, when the
& CO. Inc. ~
to the
Administration, which
infla¬
spending, i.e., that when private
expenditures tend
to
fall, 1 the.
government should promptly step
in and spend sufficient money to
keep purchasing power at high
maturity
WM, E. POLLOCK &
powers relates
farm
an
5
Roosevelt
Keynes
'
1951
govern-
government has
supporting
administrations
subject to authorization by the Interstate Commerce Commission.
HALSEY, STUART
the
dicted
"
Issuance
The
third
development stem¬
ming from increased government
77 Keynes' Concepts Prevail
To be guaranteed
unconditionally as to payment
The New York,
Priced
No
encouraging
in
.
ri'\
'
of
costs,
prices,, etc., all
tionary bias..-
January 1,1967, inclusive
^
/
'
raising
form
>labor
(Philadelphia Plan)
'
completely differ¬
results.
No
'
-7"
"' * 7/
Pressure Groups Protected
Administration.
present
the
'
a
prarty
While 7 It by now is quite obvious- to
.their words are of an anti-infla- •all,
that taxation is no longer
i
tionary character, their deeds in purely for revenue
$V$% Equipment Trust Certificates
'
'
of
not think in
7
concrete
wanted deflation—least of all the
•
Equipment Trust of
Government
regardless
the. present time affords another
government spending (and
of the credit mechanism)
ent, situation
York, Chicago and St. Louis
Railroad
expenditures.
bureaucrats,
on
optimistic
Vment in history has been contrac-.
New
tial
As
contractible.^
dominant,
so
y
been
outlook, they would call loans
initiate a deflationary spiral.
'
$1,950,000
have
loans
bankers became less
and
f
from
results
that
one
expansion stemming from governbooms, which were
privately: financed,
were
made
possible by expansion of bank
the
; ;
financed
privately
a
ment. Previous
:
sup-
page
of
private
loans.
be
deposits
bulk
individuals and thus
has been frozen into the economic
noting that
can
the
supply. As the money was.
it wound up in the hands
money
spent,
in
quired to produce feed for these
four
recognize that'it
"to kill the goose that
its voting
govern-, ness, recognizes that
is predicated in large
reflected in strength
bank
in
constitute
which
wartime
of
would
government bu¬
the
by
been
has
rise
great
a
result
a
at the
it
lays the golden eggs." Yet there is
no indication from
Washington of
any real desire to pare non-essen¬
Credit
government.
financing
'ment.
not
be
even
affiliation, simply do
✓
Government
to
by
deficit
food sup¬
people would
major implications to
huge credit expansion fi¬
a
curred
population
engaged
we
structure.
In large
part it resulted from the expan¬
sion
of
bank
deposits that oc¬
and addi¬
our
political,
our
economic
are
point,
would
is possible
present boom period stems
nanced
television
are
Due
The
have been able to replace 12 mil¬ ,7 It is
between
lion
or
15
million
horses
and
boom and
mules with tractors, and millions
required and for doing all
other
now
farming to produce
that
presses.
they
millions
would
be produced by
can
newspapers are printed on print¬
ing
Manufac¬
turers, New York City, Dec. 3, 1951.
essential
as
affected
and t
.
reaucrats
powers
great expansion of powers in the
Federal
government
has
pro¬
that
appear
wages
the
already
back-breaking
those terms..
nation would not be mech¬
our
anized
of
be derived from this are:
rarity.. The farms
human
of
machines in the
items
*,A
of
important
government. This
Federal
the
Some of the
by the mil¬
and
and another substantial deficit.
with
would
of
radios
$7.5 billion.
They now project expenditures of
$80 billion for the next fiscal year,
Since taxes
most
concentration
creased
social
If
producing automobiles by the
and
approximate $70 billion and there
would be a. deficit of
single trend has been that of in¬
from
sets would be a
engineering design, accurate
drawings, tooling and processing
produc¬
methods and
manufacturing
inclined
cient
mass
physical organization of the work
amount
same
to
we
instead
rent fiscal year, to end June
30,
1952, Federal expenditures would
77^77
Perhaps
the
Boom
real
down
ago,
apace.
Secretary Snyder
recently estimated that in the cur¬
.
foundly
had
shared
their
held
years
lions
more
been
and
thousands
of do¬
ways
has
their fathers.
as
in
Julian D. Weiss
in
of this point than the cur¬
period. Thus far, the increase
budgetary requirements con¬
tinues
for many;
years.
its services
better illustra¬
no
tion
econ¬
o u r
omy
work¬ 7;
years
workmen
not
been
40
be
ful
assembly, lines
our
progressive
the
Another
overly
are
better
of
effort.
in
spected many other American in¬
dustrial
plants.
Too
frequently
visitors
to
ing things and to accomplish
have
you
automotive
Detroit
the
productivity.
our
had
workmen
competition as well as
competition
between
companies
and business organizations stimu¬
lates the millions of Americans to
help
in
./
be
can
rent
been going on
in
of
scope
activities.
There
as f
has *
what
to
the results of increased productiv¬
Amer¬
our
of
much
as
panding the
and
perspective
must
this ac¬
in
Increased Productivity
generation
Essentials
of
when things are good and
private spending is high, the gov¬
keeps think¬
ing up ways and means of ex¬
the
ress
good, the govern¬
ernment nonetheless
p r ovi d e s
importa nt ?
their part
on
Workers Should Share
it is to have
as
sequence
countries.
envelope
an
States
t
not
are
ever,
<
our
it
men in
all manufacturing in thereceiving dock to
the shipping department with a United States have had oh the av¬
minimum of rehandling, there is erage an improvement in real in¬
much more than this to our Amer-r come of 21/2 % over the previous
ican mass production system.
year.
This has meant that each
Wilson
E.
C.
an¬
proach in that
flows from the
Ideas that will
you
United
of operations logi¬
cally laid out so that the material
home you will
do,
so
with
help
the
inflexibility of large completely cooperate
scale
progressive manufacturing tivity.
777:7.
and assembly line production does
and that when
your
in
an
long-term ap¬
they get.
We have worker and of ever striving to
successful, efficient enter¬ find better ways of doing things.
many
be
being
results
finding
the
exchange : o f
Americans
long-term
medi¬
system at the same time, they progressive and of providing bet¬
will be greatly disappointed with ter fools and more horsepower
per
here,
you
for
one
they believe that simply um of increasing real wages part
society and
new
values
achieved
installing assembly lines and of : the
their implica¬
progressive manufacturing they through greater productivity,
tions for the
will automatically get the same American workmen have acquired
future. It is
efficient production and low cost not only the desire but the ability
particularly
that American industry achieves.' to buy the products of industry.
important to
If they do not understand and ap¬
Employers
must
recognize
on
coun¬
joying
trends
propitious
by
from
other
:
have
come
things
alysis and evaluation of the major
most
a
stance if
Manufac¬
hope that those of
Who
designed and produced to sell
at prices which this mass market
can afford.
By employers sharing
,
ment spends at a high rate
and
thus stimulates the
economy. How¬
uncertainties, the present time is
be
with workmen through the
to
the
tionary price structure; and (3) impact of the international
without
workmen constitute
mass
America's productive capacity. Urges other nations under¬
stand and apply U. S. discoveries and
political precepts and
their
in
(2) infla- 7,
situation.
tion.
to
meet
basic changes
reviews
comprising (1) growth of big business;
economy,
achieved
has contributed
economy
the
of
of
First Investment Co., Los Angeles, Calif.
production and its
accompanying low cost cannot be
producers.
production cannot be achieved without
mass
essential
Economy
By JULIAN D. WEISS
ducers. ' Mass
(1) acceptance of competition; (2) careful engineer¬
ing design, tooling and processing; and (3) full recognition
as
cases
another
as
men
system:
of dual role of workman both
Trends in the American
willing coopera¬
of people—and
of thousands of
American system
nition
Wilson
the
Thursday, December 13, 1951
.
Another
customers.
is
hundreds
people—in a common effort to de¬
liver good products at low cost.
By C. E. WILSON*
Mr.
to
essential
..
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
1
Volume 174
Number 5072
.
(2251)
The Commercial and Financial Chronicle
.
.
Orders
r
Production
Steel
The
Defense
Electric
Output
Retail
Price
Auto
Production
Failures
Business
billion
-—.
outlay will be reached, but
per year
goal
warns
week. At the
per
for
tooling
and
massive '
up
our
preparation
massive job.
a
And
?
time
same
blueprints,
specifications, organizing
manpower
be
can
orders
have been drawing
factories—a
Says by 1953 peak of $50
the result of this prep¬
now
aration
increasingobtained only by "pinching" civilian production. Denies U. S.
requirements and
effort to meet both defense
an
the
writing
week, while deliveries
per
of $2 billion per month.
at rate
are
In
given out at rate of $1 billion
now
of this year, we
placing
bil¬
we
!-•
11
$1 Billion
at
lion
Addressing foreign industrial representatives, mobilization chief
reveals defense production has tripled in year, and orders are
'
Index
Food
the first
been
of
Week
stupendous rate of nearly $1
Price Index
Commodity
and Industry
Since
have
Director of Defense Mobilization
Trade
Rate
Per
By CHARLES E. WILSON*
Carloadings
State of Trade
Output Forging Ahead
At
3.1
is
becoming
evident
as
the end-items begin to flow ffom
the, eountjy^at^-;; :y, js "sponging up" world's raw materials, and expresses optimism
our production lines.
This flow is
large reflected, a moderate rise last week, in the wake of the
that increased production capacity, when arms output declines,
now
a
stream
which
is
everdowntrend in the prior holiday-shortened week. It continued to
can be absorbed by increased civilian
widening and will become in time
production.
be perceptibly higher than that of a year ago.- However it was
a
torrent.
still close to 10% below the record level attained during World
If that war were to be localized,
I am very glad to be able to tell
It is a fact that in certain essen¬
War II. Although there were, scattered reports of layoffs due to
if
its
repercussions were to be tial
you gentlemen about the progress
weapons
we
are
behind
conversion difficulties, total joblessness was well under that of
the
being made in the defense mobili¬ prevented from enveloping
demand; total industrial production for
-consumer
r
schedule.
"last year.
...
.
t•
zation
ingot output was off less than one-half point to 103.6% of. v V"
capacity from the all-time high reached in the-week" ended Dec^l.' .V
Steel
-
t
'
'
TV
/.
with
e m
facilities.
deliveries with scheduled start of new
are
V obtain the needed materials.
i
\ "'y
.<
makers r
crane
i|;-if '. tney,
«
Detroit are convinced that demand for cold-rolled,
v
Charles E. Wilson
caused
this
be
production shows more promise of making CMP A
Greater steel
"
Government steel distribution policies are meeting; growing
.
among
which, it, is; claimed, are contributing to shortages,*. harnper-
tions,
scheduling and
ing
•
forcing manufacturing cur¬
production,,and
our
of
growing
and
since the
According to .this trade magazine -majority.,
opinioii" in ihe in-
to military require-
favors limiting controls
dustry, it. appears,
ments, thus relinquishing the bulk of output for
distribution with-1
and
assist
various
coun-
additional
necessary
to
that theie is
invaded
and
was
year
of
clear
to
all
people that the Free World
our
*
^was
facing
mined
a
deterbe
and
savage
enemy
must
who
.of World War II, we had
of peace—but
swept
fire.
illusions
these illusions were
in
away
.'
products are in acutely short supply, some trade authorities
tain
the word.
•
in the truest
the overall steel scarcity .is not actual
feel
'
^
-«
%
^'
industry
^y.
the
International
bv
Some think supply is catching ^up
looking
CMP distribution distorting the market
ahead,
surpluses
see
Mr.
Wilson
Mission
Luncheon,
at
the
Productivity
Management
Nov. 30,
■,
Steel
authorities,
of
sense
address
pgr
Washington,
lines,
D.
C.,
1951.
ef¬
the
the expansion
fact
'«*■
metals,
of
and
the
'
i
is that
nearly
for
These
we
and"
the actual
de-
$2
billion
this
items have
medium
time
last
bombers,
various
year
included heavy
light
and
of all kinds
guns
fire—control "systems
nient,
worth
which is three times
was
rnedium tanks,
base—steel,
industrial
and
petroleum,
•>'
it
that
all—out produc—
into
in
program
our
basic"production
month
what
the
of
needs
our
civilian
radar equip—
types
missiles
of
We have been
since
aj.e
in
Korea
economic
spending the time
the
United
States into motion. Aside from the
it
industrialist
a
the
of
needs
has
gestation. As
It
armed
been a period of
foremost American
said
in
a
had
production
takes
still
make
similar
not
nine
begun:
months
to
baby." Well, the baby has
a
being successfully tested
.From now on there will be a
steady rise in production, to a
peak of about $4 billion a month
in 1953. You gentlemen witnessed
placing the great
forces; of
immediate
forces,
now
ip the deserts of the West,
the Korean gun-- period during World War II, when
complaints were heard that vol¬
cer¬
"'An
The
total
economy.
grimmer meaning. These cir¬
it
entire
for
Com-
of
swing
not for the
aluminum, electric power, chem- rockets, modernized warships and,
icals, oil drilling and refining, and 0f course, the products of atomic
so on. Finally, we must provide energy which, as you all know,
half
a
a
intervention
our
lines
so
mind
itveries of military end-items now
tion if required. We must expand
room
our
and
production
equipment
defense
could
we
per¬
in
expended
phases of
'
allies. Wc must develop
our
have
eiectricity,
likewise
must
weapons,
ume
While it is conceded
by the separate producers.
out strings
duction
of
types
coop—
vitally
made
modern
bear
installation of standby pro¬
—the
of
it
were
we
other
two
higher
us
*
Finally
could have produced more
we
forts
everything from clothing to
most
gives
weapons
and air force
the
visit will
Republic of Korea
cumstances
army, navy
constantly chang¬
we are
but
that
must
with
am
stopped at all costs. Since the end
tailments.
tion
well laid,
We
eye
bear in mind
.* '
.1
-
formance.
and
now
job:
are
five-sided
a
the
youi
It is not quite a year
and
displaying more annoyance over government regula¬
of steel are
is
the
gleam in the
a
.
being done. We piust supply our
munist China gave the war a new
.C^ntrpHed ^Materials
Both producers and consumers
is under increasing: attack.
Plan
so
awme
'Steel," the weekly magazine of, metalworking. .; ruthlessly
vcWith military requirements taking only a relatively small percent- > since the
total v output^1 less ^than- si5%*,-
It
maximum productivity. You
fully
criticism," says
V.* age.
platform of strength,
its foundations
for /such improvement.
re
;;
ot
improvement in
tries that is
are
^£^;;.k^Criticisms of Government Distribution Policies *1"
a
the
I
justice.
result
the
an
insure
smoothly than alterations in the controls themselves.
run
freedom
■
eration
restrictions on civilian vproduction?
government
by
sure
is—To what*extentJs
But the big question still unanswered
Free
cannot
everything they need,-and this is
principles
sheets is def¬
Some high auto executives have admitted this to
initely down.
the
It
that
of
ing design—which affects produc¬
through weakness; it
peace
build
of
preserving
.■
them.
for
peace.
and
munism
;
/.
wage
.
.
And
expert.
an
,1
mind
often at the
weapons, were
also that
.We have set about resolutely to
ining
a
that
S.oviet Com- iprovide the Troops in Korea with
can" y
-
t
view
of
V
in
bear
particularly
beginning only
way—and
ttinitf
point \of
necessary -
wage
newer
in this critical time—
me
to
for
loins.
their
/\T
V
But
schedules,
must wage peace through strength,
the
task
'great
1
gird
another
in
the
was
World
Free
in
is
to
men
it
f hil
.vrt
it
country
World
put
third
a
necessary
was
sustains
dependence of
c o n
According to this trade journal, steel officials who have visited
;■
•
The
Thatj
-promising delivery in 24 to 30 mopths.
in
inter-
the
free
this
it
war,
To
+ hic»
has.izes
p
the
■
in the holocaust of
all
of
some
problems
face. Your
this
match y;
changes" to
proposing
of
intention
the
e
.(presence
.
builders
major
we
s
of
11 y o u,
t
o
the
A shortage of .steel mill cranes has
•.
world
too, of
already: hurt the,i natioiVs ^ ;
steel expansion program, according to "Thei.Irori Age,'^; national:*^;
metalworking weekly.; Vitally-needed ingot production has been V;^
>
.lost. And it appears too late to avert further losses, although the .--,'
V industry is hopeful that National Production Authority,.will help :>
y keep losses from mushrooming by giving' it a better rating .so that
it can get needed materials, including steel. ' :
v,.-"v
>v"
"The Iron Age" states that in an effort to minimize steel proV
duction losses for lack of cranes, NPA is reviewing the order books
;
States—and
United
the
of
been born. From now on you
American
production miracles in
the last war. You are about to wit¬
ness
another performance
of the
phenomenon. We are going
not only everything
that is needed to supply our cur¬
rent forces, as well as to ship
s^me
tp
produce
arms
.to our allies, but we are
going to establish standby facili-
can
Continued
watch him grow.
on
page
92
on
^with': demand * with'
picture.
Before long, they
This announcement is not an
ofjer ojsecuritiesJor sate
or a
solicitation oj an ojjer to buy securities.
fear, with larger production scheduled for 1952, the industry will
be
Currently,
beating the bushes for orders.
some excess
lacking fo -permit sales to prospective purchasers.
being expanded.
is pouring from
,Steel
/facilities
r
as
/
Mathieson Chemical Corporation
;
.
steadily increasing number of
new
Convertible Preferred Stock, 1951
ingot capaciiy has been placed in operation
new
of
facilities
rently,
the
to
tons
industry's
being pushed
are
production
to
Short scrap supply continues the chief
,•
180,000 Shares
a
the
potential.
limit of availability.
threat to continued
over-
Price $100 per
ruptions due to work stoppages stemming from failure to salisfactorily
settle
differences
wage
in
now
Per Share
Cur¬
-capacity operations through the winter, barring, of course, inter¬
-
Series
4.25% Cumulative Dividends, Par Value $100
recent weeks, especially at Pittsburgh and Cleveland, adding
over
thousands
s'.'
a
be
the industry's expansion program begins to material¬
Substantial
ize.
•
.
will
the rate steel capacity is
of steel within five years at
surplus
■December 12, 1951
New Issue
David Austin,
Steel, thinks there
S.
of U.
Vice-President
Executive
tonnage
buyers for the reason authorized CMP tickets are
is begging for
negotiation,
share
plus accrued dividends from December
concludes
1, 1951
"Steel."
The
5
the
that
American Iron
and
steel-making capacity
Steel Institute announced
of steel companies having
operating rate
for the
industry
entire
will
be
or
tons
over
.
a
rise of
half
a
a
Pgi,point
and
castings
for
Corporation
»
is equivalent to 2,071,000 tons of
week's operating rate
ingots
Stone & Webster Securities
Dillon, Read & Co. Inc.
last week
Last
steel
of ingots and steel for castings
the
104.1% of
capacity for the week beginning Dec. 10, 1951, equivalent to 2
000
Copies oj the prospectus max/ he obtained from such oj the undersigned
(who ore among the underwriters named in the prospectus) as map
legally offer these securities under applicable securities laws.
this week
93%
entire
the
Industry,
compared
A. G. Becker & Co.
to
Blyth & Co., Inc.
Incorporated
»
Alex. Brown & Sons
Goldman, Sachs & Co,
*
104%, or 2,071,000 tons a week ago.
at 1,953,800
•
'
1
tons.
'
'
A year ago production stood
,
Hayden, Stone & Co.
'
^
Steel Output Sets New
The
greatest
production
States in 1951, will reach and
•
/
,
of
steel
quickly
v
in
Record
history,
surpass one
in
the
United
.
Merrill Lynch, Pierce, Fenner & Beane
Union Securities Corporation
White, Weld & Co.
Smith, Barney & Co>
Dean Witter & Cov«
hundred million
Continued
on page
95
-
12
The Commercial and Financial Chronicle
(2252)
Consequences of
Based
Wage Policy
a
By LEO WOLMAN*
w
//
,
a wage increase is general, costs will
fast and as much as wages, and will
surely raise prices. Points out automatic escalation, under
wage contracts, intensifies price, increase trend.
Holds higher
wages based on increased labor productivity may also results in higher prices, and points to "fringe benefits" as an addiUonat. •>
cost factor. Foresees breakdown of both escalator and produc, •
tivity principles of wage adjustments under present conditions.
-
Dr. Wulman,
«
lead
to
a
wage
settlement are
usually mixed. In recent years a
prime consideration has been the
By GORDON Y. BILLARD
pressing desire for as long a pe¬
J. R. Williston & Co., Members, New York Stock Exchange
riod as possible of industrial peace.
Many businesses have been will¬
j Stock market analyst lists bullish and bearish factors affecting
ing to pay a high
perhaps too
current stock market movements, and though not expressing
high — price for peace in labor:
relations because they know how ;
,r opinion; as
1o market's trend, advises careful ; review of >
costly long- stoppages s*re and be- ?t:. /-/A?^admdwdfoldings at- this time.
cause
they hope"; that a spell of•••
years^;relatively free Of;'demands
Numerousiactors will shape inother activities to-,avoid .tax
and: Negotiation,
5 w i 11
promote
* -liabilities."-/'j: r" i ;4 7'/tic:
quiet, harmony, and cooperation— ;.months. Sornel^^tlkiser^wdll
.-.of ;goods
to
all very ^valuable, assets rin runterialize, v.other45y;<-will-^a^f:-;^The:;/.c Armed Services-will be subning a business.
Anyhow this is paramount
'
■
stantially greater next year.. '
Professor of Economics, Columbia University
1
asserting if
likely rise just
most
as
.
•
Bullish and Bearish Factors
The motives which
term contract.
In the Stock Market
Automatic Escalation
on
or unwisdom of an employer's pol¬
icy which provides for automatic
wage adjustments under a long-
Thursday, December 13, 1951
...
-
-
.
.
policies. the risk men have taken and will factor is the
these continue to take and it is not an; u. S.- Russian
number of clear and: well-defined -influences.-fit- is constantly de- adequate,-nor entirely fair, crirelationship.
iuestions. t; The central question manding higher taxes; in order to ticism of their policies to say that/ There are two
si What ef> v \;
reduce, not raise, the available in- , the termfe on which they have set- f un d a m encome of individuals.. It, also,
:ect under
in- tied may violate certain accepted/tally different ;
ore vailing
sists that some, if not all, wage in- economic principles. ?•> concepts for
not increase costs. But'/- Important and practical as these
jon ditions,
creases, do
dealing w i t h
this is a specious argument for considerations are,
does tying
it is equally/ this
-problem;
the government knows very well important to recognize and admit
wages to the
;v;vy The be- ;
"that swiftly - rising- wages are an1 what the.expected' ecohomic con-;
cost of living
^ th i
and an annual
important cause of swiftly rising sequences of a wage policy are.
p
s^;j t:7
costs.
The increase in costs may Nothing is gained, and much con• {Jr
improvement
.
.
■
not be exactly equal to the t. in- fusion may result, by claiming for:
factor have on
; crease in wages, but, if the wage a wage policy more/than it deprices?
;ne
*
increase;: is
Put in this
general,
costs will serves, or by attributing to, it vir- ;
g 1 ? - n -- - ?
most likely rise just about as fast tues which other policies are
form,
it is
said/consPiracyV ^
title
This formidable
difficult
it
as
seems.
is
not
called
as
It raises
anti-inflationary
the
recognizes
a
'v', (5-)
____
of
potency
to
and
see
as
much
as
d
anyone
should have
,•».,
/. '. 'V, (a ^Dow-Jones
*
-1 HI
Wage Rises
;
There has, for example, been a
:ny
difficulty
A related question, though one lot of loose talk around about the
Prof. Leo Wolman
answering the
not so easy to answer, is whether
luestion.Wage
fvailability^ of; increased produc'ncreases. under present circum- the automatic type of wage adjust- tivity
as
the source of rising
will/surely^ raise prices/ment is likely, in these times, to
however the way increases are ar- raise wages, and, hence, costs and
ived at.
In this respect, wage prices faster than
they would
ncreases tied to living costs and^otherwise- rise/ This would not be
m annual productivity increment the effect of the improvement facvill behave like any other pure tor, since this adjustment : is in
ind simple wage increase of equal general made once-.a year; and in
imount. Wage increases of either a period when wages and prices
type raise prices because they in- are rising, under inflationary intances,
crease
costs and increase the total
income of the group
fluences,
it is by
no
means
un-
that receives
by all odds the largest share of the
common for wages to be changed
country's income.
calator adjustments
,
sequences,
powerful
These two
con-
,
taken
together
influence
prices. No
The
.
for
one can or
are
a
lifting
would deny
government, in its
so-
'
*An address by Dr.: Wolman at the
Congress of /American
Industry,
sponsored by the National Association of
Manufacturers, New York City, Dec^ 6,
within the
of
course
a
year.
Es-
are, however
5.61
2.59
3.71
3.30
1946—
source are commonly believed to
/
(6) The
ization of
be costless and
encouraged
are,
therefore, to be
thus be
a
tendency for
to speak, to
jump
L
wages,
gun
so
and for
22.7
in ^waSe rates
can be made with-
ereasfs^loste a™"6
Continued
would
be
donar
and
flight;from
Bridge, between
an
/and resort development in Southern New Jersey. The
Soviet
Money Supply
dictatorship
1939
more
page
110
uSted
is
to
adequate supply of electric
peached an annual rate of $225. 7
the
fhi! billion versus $207.1 bllUon in th
quarter of 1950.
same
(10) Farm income in September
at
was
billion
annual
an
versus
mean
indefinite
an
the
of
as
cold
pro¬
shortly get under
workers
steel
starting
way
the
suit. A further wage increase will
bearish
and
be permanently frozen into the
price structure, thereby adding to
costs and consequently prices.
(12) History proves that when
summarized below.
.
,
government
from
the
1939
product has
259%.
risen
,
A
,
rtrn'
United
States
The
porations.
large
very
own
/i0.
in
"Invest
an
movement
While
^5'000
the
sion
for
32%
are
non-taxable funds
funds,
trusts,
etc.)
the
rate
for
all
in¬
d
The earnings and dividend
;
.
:
Personal
1
Taxes
still pro¬
jecting record capital outlays.
(c) The excess profits tax will
;
;
aggressive spending by
corporations
on,;
research
and
qtr.
■'
'; •'
.
'V-
■.
■
J
•. -
Personal
Consumer
Savings
Spending
"$225.7
2nd qtr.
"Mstr. qtr.
1950
——2
*222.8
'
-
weekly basis have been in
uptrend from mid-June.
■?
result in
From
(in billions)
a
are
1950.
Income
v
(a) Incoming business orders
(b) Corporations
of
six times that of 1947.
1951-3rd
RESORTS
decade ago.
a
in¬
outlook for 1952 is favorable.
an
$3-$4,000,
April through November, personal
saving has been running at a rate
After
on
of
(14) Personal savings increas¬
ing. For the past six months, per¬
sonal savings have been double
creasingly potent in the demand
SOUTHERN NEW JEHSEV
with
while near]y
ag0>
incomes
for sound investment stocks.
(4)
compared
more»
years
compared with 12%
(pen¬
are
10
had
in
(common
wealthy
or
4%%
cor¬
high personal taxes
stocks
•
,
American families had incomes of
•
in
potentialities
for
„
Broadening income base.
Latest figures show that 20% of
on
stock
more
,
risen 150%
r?nn?nny spending units
°^*
°r-?
taxes
the national income.
Corporate profits after taxes have
risen
326% and dividends have
53,000,000
in
any deficit
j,y inflationary borrowing. Taxes
are
now
absorbing some 30% of
but gross
average
takes
than 25% of the national income
the trend is to finance
Leading stocks on the New York
Stock
Exchange
are
up
100%
vestors,
year
-
trend. Other industries will follow
CD The stock market has Jagged
behind
the
postwar
inflation.
(3)
SSSB5SS
$21.5
a
7. This will
major bullish
a
bullish
are
common
/SB
of
with
and
war
stocks).
♦
rate
$18.6 billion
ago.
offset the gross yield advantage of
AGRICULTURE
after
income,
beyond the ex¬
(11) The latest tax increase is
perimeter.
This concept the
prelude to wage increase No.
America"
ELECTRIC COMPANY
Z 63,300,000,000
Individual
'
smooth
important
/
States has done
overexpanded Soviet empire will
eventually fall of its own weight
KQ
area
__
(9)
,
V
'•*
$170,000,600,000
164,000.000,000
1946—
already
is
Russia has done
vears
thine the
ready for this development.
•
-
vastly over-extended and that in
national
important step in the advancement of industrial, agricultural
INDUSTRY
to Stock
Total Privately-Held
market factor.
connecting this Bridge with Metropolitan New York, marks
GRfATfR
Loans
Value
all-time peak of
r
ob-
(b) The belief exists that the/
would continue
Wilmington and Deepwater, and the New Jersey Turnpike
HELPING TO BUILD A
Ratla
Stock
,
*J " y D1,f110n*
the
fixed-income
mass
all
k-1
77 o
Bullish
ATLANTIC CITY
Loans
1950
Other
power now
Brokers'
ligations.
factors
an
"v
d-j
^ v1°ew SLlie^that'thl
on
P It O <■ It ESS
Equally important is
inherently sound Jh-
Ind.
,
permitted,Z there
if
on,
would
success.
w-2.82
taxes> for the third Quarter of 1951
On the average and in the
very
run the annual increase in
.
Later
longation
and from this diversified
SS..
3.30
Total
in /Korea, the -influence
isting
to
o.64>
mi
-19.2
-
-*
^
further breakout
flow of traffic
2.87
3.23
..
/ipunciai siruc^ure pr stock:
to guard our national
Safety, Since Red China's inter-
reoent.
has been said has little, if
Memorial
The
3.06-
5:61-
ill
Sept., 1929.: 381
(7)
Stocks
-6.10%
.
productivity, or efficiency, of in«us^ry- But this simple, and undeniable, fact does not make in-
long
Delaware
10.2
be destroyed 'May, i94s_„.2i2
if local wars are fought to prevent
the
Adv. for
.
wy
of
Pct.-Pt.
Ind.
9.9
if
;.
d-j
June, i950__ 22s
or even promoted. Ob-of this group has undeniably in-
mdkm
opening
—2.82
AVg.
" (in millions i
Values
many will ;favor w^ge inr: creased. The widespread repercus-;
$667 $108,911
0.61%
creases that do not, require price; sions of all-out war defy accurate Mar 1037 :
194
: r,075
i.72
62,616:
increases. It, is true^ of course, that c appraisal.; Because of these ; un- sept.Vi929 38i
7! 882
89,668
8,79
in the long run* rising wages and. certainties, outbreak of World War - ^
(8) The
advancing material standards of HI would probably have imme- -nnn|V.mcpprivately held money
hving depend on the increasing diate major bearish repercussions. supply rose $900 million during
anything, to do with the wisdom
The
0.64
/0.50;,
6.12
Times
Oct., 1951^. 275
\
viously
the wage movement to be acceler-
"what
;
2.87 r
a
"
Av*>'- Earnings Yield
-
thf
-3.17/
•-
relatively low capital¬
earnings and dividends.
Ind./
by" force through -all-out
Many prominent Americans argue
vention
,
d-j
Gordon Y. Billard
necessary,
>
212
-; >
Stocks;
3.21
Sept., 1929__ 381
''•
tage
/-for 77
•,
2.74
3.23v
Mar., 1947— 194
sohn be overthrown by force,
Wage rises credited to this
by their nature more frequent. If creased productivity, or manhour
jarge numbers are working under output, a piece of black magic by
escalator arrangements, there may which substantial annual increases
56th
1951.
wages.
,
Grade
'Bond
6.10% - 2.93%
June, 1950—■ 228
May,
'
Advan*
Yield v.; Yield
1951/1 27l/
Sept.,
w
,
/*•••'.
1'/////7 Industrial
' •"* •
•'
""
■
world and
Wages and Increased Productivity, must and can only
>!i.'
'j'
'
''
*
■
.
•' .
Automatic Escalation Intensifies
vhy
contrasted
yields.'
".Avg;,'
The
t h e
r-nnmipr
not to possess.
wages.
offered,-by
as
High
.
hard
yields
vV'f<-*',)V ♦*' ? Pct.-Point
•
this.
stock
with bond
*
,
The' advantage
common
$21.7
$204.0
21.1
201.7
9.3
208.2
1
•
*217.8
204.3
1947
.
-
-UiJ
1946'
*
Annual
;
'
.
rate,
6.2
180.2
188.4
7T//rr_r-
10.7
186.4
-
1949
1948
♦'
10.5
177.9
169.5
3.9
165.6
158.9
12.0
146.9
seasonally
Continued
193.6
adjusted, ii-';
on
page
102
A
Volume 174
Number 5072
.
.
,
The Commercial and Financial Chronicle
(2253)
anything, Charlie Wilson will
lose
his fight'to keep rearmament bal¬
anced
with
the
civilian
economy.
More
likely the scales will
tipped in favor of stepping up
Ahead of
armament
up
The News
point
to visit
never
he
might
Europe be¬
globalitis.
catch
Once, in fact, he declined the offer
of
national
a
'
magazine
of
$50,000
make
tightening
a
grow¬
that the p»esent balanced program
is causing unemployment and a
dwindling of profits.
Let's
have
faster rearmament spending,
demand.
they
pushed
school
thought contend that if
be
an
likely to be quite
For the life of
me,
stand why it
Tafts,
tax
I can't under¬
more
taxes
get
when
them,
he
or
knows
he
if
he
even
knew he would. You would think
that the very word at a time when
the headlines shout new revela¬
tions
in
corruption
would
But
the
an
al, won't let
he
will
him.
submit
TWIN
The
will
Melville Investment Co.
.
creased
tax
workers'
make
creased
theory is that he will
for, the
to
offset
deductions
the
from
envelopes.
pay
in¬
E. W. McRoberts & Co.
the
W. G. Oliver Opens
You
It's
campaign,
a
to
taxation, they will be
great game
as
long
as
told.
it lasts.
SONOMA,
•
Cal.—Wi
in the securities business.
his
always
liked
the
to
keep
visiting
foreign states¬
at
men
arm's
length.
It
v
ful
doubt¬
if
our
;
~
'
:
is
of
any
present
-members
of
Congress hold
to
Carlisle
Bargeron
this'atti¬
tude.
You get the
impression* in¬
stead, that a lot of them run for
Congress in order to see the world.
At
least
they
seats
warm
some
excuse
scarcely" get
before
to
they
cook
.
re¬
good 200 will have visited
a
Europe before Jan. 8, and
bet your boots
turn
COMPANY
up
•
In the present Congressional
cess
LOAN
their
abroad.
go
you can
that they will
re¬
deeply impressed with what
the Marshall Plan has done,
what the NATO has done and how
good
wmwev.
necessary it is that we continue
aid to prevent Western Europe
SYSTEM
our
from collapsing.
It is almost im¬
possible for tnem
to escape such
impression. From the time they
step off the boat or plane they
LINCOLN LOAN
an
taken
are
in
hand
not
only
by
busy bees from the foreign offices
abroad, but from our foreign of¬
fices
well.
as
complished
What
in
has
been
ac¬
the
OVER 700 OFFICES
past and the
great sunrise that lies just ahead
if
just don't let
we
in
up
our
is drummed into them from
ing
until
IN THE KNIFED STATES
aid
morn¬
'■
AND CANADA
night,
along with the
wining, dining and dancing girls.
Occasionally
get
the
up
these
countries
selves,
but
that
assured
to
must
he
will
they
them
Sovings Satiety
will
warn
that
of
one
nerve
crod
~
help them¬
be
are
promptly
doing that.
Thus he has done his
duty by his
constituents and he agrees that
the aid must continue.
WORKINCMEN'S
Two hundred members of Con¬
is more than a third of the
10AN ASS N., INC.
gress
legislative
body.
They will be
job next month, some
of them f'lusned with the
exciting
recollections of their first trip and
practically all of them imbued
back
on
with
and
the
exotic
with
beauty
;
„
•
inmi credit mmm
,
/
WW
/.■.yy.-yyS.yys-yw
mmmm
'
'iWWWW.
;'
<■,"
~
:
~
' >
.
,
k :
vr
<.v
>
>«*«<««?
'
>
--
V*/
Paris
of
touch of gay careless¬
their blood.
They will
a
in
ness
>
;
P"' "',
the
have been tapped or
re-tapped, as
the case may be, with the Old
World
on
culture
Europe
the
and
will
not
spending
be
curtailed
but increased.
When
these European govern¬
ments made their first'
approaches
for more money several months
ago, there was some lifting of eye¬
brows among our global planners.
There
as
to
was
a
doubt in their minds
whether
aid
more
any
authorized.
was
a
record-breaking
period of time.
there
will
be
more
7
spending
Europe next year, not less.
Mr. Truman is to
:'
no
will
up with
taxes which
expectation of getting;
be
more
tighter controls
forts
to
creasing
thing
on
come
another demand for
he has
and
hold the
•
about
stronger ef¬
line against in¬
inflation,
that will
talk
be
but
the only
accomplished
will be the increased
spending. If
more
loans
were
were
than
made
a
peo¬
million
in
1951.
family size,
aver¬
that
a
serves
loan is
beneficial
only if it
the best interests of the in¬
dividual. Families who seek loans
regard this symbol
the sign of
a
The
and
symbolizes their philosophy
their homes
carry
savings
organization rendering
per cent possess
:
;
;
life insurance
have
a friendly
helpful loan service geared to
loan beneficial
subsidiary companies
own
cent
Loans
on
These
need
a
are
28 per
;
accounts ; ; ; 20
savings bonds
postal savings.
or
>
Beneficial service is made
possible because thousands of in¬
vestors
responsible people who
temporary loan to meet
one*
71 per
This
character
and personal possessions
Beneficial symbol above iden¬
these
third
cent
/
tifies
take advantage of
opportunity. More than
a
as
family requirements.
When IS
emergency or to
an
long established and responsible
and
aging $297.
Congres¬
So it is being accepted as a cer¬
tainty in political Washington that
there
ple to whom
small
visitation, in fact, certainly
in the brief
Corporation passed the
now
A good
job has been done
with the Congressional
junkets; it
sional
Loan
These loans
they could get
But these doubts have been
erased.
THROUGH the doorsof Beneficial
sidiary companies of these sub¬
an
have
G.
Oliver
has. opened offices here to
engage
impressions.
He
F.
be
haveri't had to pay any of the in¬
issue
FALLS, Idaho—John
Melville has formed the Melville
formerly with
increases
wage
him wince.
have
et
bill
13
Investment Co. with offices in the
pitched to this tune: more corpo-.
ration taxes, more taxes from the: Twin Falls Bank & Trust Build¬
higher brackets. In the meantime, ing, to engage in the securities
the labor leaders will have
gotten business.
He was
5is considered good
politics for Mr. Truman to ask for
won't
issue that he is
trying to "make
the rich pay" and the
reactionaries
in Congress, the Harry Byrds and
to all-out rearmament.
fateful in this respect.
Wilson and those of his
of
on
The year 1952 is
.
.
"m
balance is tipped we shall
tour
a
write
and
further
For that matter there is
The late Senator Borah made it
cause
and
civilian goods.
ing agitation from segments of in¬
dustry and from organized labor
By CARLISLE BARGERON
a
on
be
re¬
the
made
their
savings
available, through these companies^
for this worthwhile
purpose;
14
(2254)
Montreal
Hettleman Go. to
Across the Dominion of Canada
Admit Daniel Gowin
;
By land, Water and Air
Hettleman & Co., 1 Wall Street,
York City, on Jan. 2 will
admit Daniel Cowin to partner¬
Mr.
the firm
Cowin
for
has
some
been
time.
In
the
last
Frank
the
ten
of
days
stock,
"Expanding
same way as
Canadian
has
the ticker tape,
over
(Special to Tiic Financial Chronicle)
been
all
in much the
Canadian Pacific, the
D.
.
Income'
Your
;.riAuthority.' If
.
Northern
to
as
box
to
Port
of
I
these
guess
second
;
vaj-e
like cushy, top
you
hefe.' "^
shares
enterprise
hadian
at
columns.
an
rail
the
July 26,
Split
1
too
n
.
,
U.
bearing
oeaiing
Well, let's
see,
iust
in our
it
what
.
,
CP to be
cutting these Canadian Capers in
the canyons of finance.
in
pears
ought
Seems
the
,
future
all
of
20%
area~
,
"railway"
ap-
the
around
now
owns
United
controls
or
States
(against
14,000 for Atchison). Its
transcontinental
main
line,
wick, in
the East to
few
show
up
value
differs
2,800
passenger cars. CP
most
through
sparsely
U.
settled
light traliic density; and it has not
dieselizecl to nearly the extent of
the average U. S. line.
Along with this railway, it
vides communications galore
pro,a
—
telegraph line, overseas cable, long
of America's
fifctvnc T5fnHS~r^w?adf telep.h°!ie'
teletype, and radio transmission
popular whiskies,
service; plus world wide wireless
pleasing
the
to
more
gimmick.
sold
grossing $8,500,000
„
If
can
favor
you
water
travel
supply that too. Has 40
auartef
straight "whiskies
in this product are
8
years
or
our 48
total pop-
a
in this
one company
dreamy,
a
neutral
spirits.
Jions
old,
these
not used
are
CP
Western
and
most
steamship division
$3,159,592 in 1950.
take'on
If
r6sort
you re
owns
of
some
ady^J?e^e
Chateau
the
At
^is vast
rest
is
finest
in all
—
CP
hotels
including
Frontenac; and such
the
this
heavy
yes,
buying
CP
in
Air
airways.
re-
by
Canadian
oper*
inter-
n
^uuuvu
a
...
profit.
.
„
.
Getting
from
away
transporta-
tion, CP gleans its most valuable
reserves
operations)
HOUSE
for
accounts
Lines, Limited,
net
THE
OF
RARE
WHISKIES
Distributors, Inc., New York, N.Y. '
(apart from railroad
from
its
51%
owner-
shipin Consolidated Mining
Smelting Company.
is
it
a
honey.
stood
ye*
Sclienley Reserve, Blended Whiskey 86
proof. 65% grain neulral spirits. Schenley
to
about finances. Well, they
ve
(plus
for
on
•
the books at
^n. ^e
is
was
was
this
the
million; yet its worth, at to-
what
all
55 M0
strong enough
up about
averages
five points was
cheering to
notice, assuming, of course,
you're bullish.
noted
as
one
of
$15,983,750!
the
is
el^tric
T
called
some
CP land has
be pay m in seven
_to
proved
present sectional
one
oil
fields
called Armenia
in last week.
Th
and
As far
as
no
part
*
| From
varied.
*
here
*
*
howeyer,-
on,
Tax
selling should in¬
between
crease
and
now
end of the year.
the
done,
»ower generation,
personal invest- would
your
the
Such antici¬
potential
buyers
place their bids under
board
ig
th
CP
your
this
price
account
probable
of
penned.
earnings
1951
and
of
divi¬
cash
Another
fundamental
at
want
i
parlay,
a
Canadian
hlehpr
ga
to
lahnr
anH
for
agency
CP
Sne\ratr ThTrP
been
feeling that CP
has
could
take
Pacific
make
better
a
of
rate
for
case
increases
not
so embarrassed
income from other smiTPPt!
various
rumors
in
one
at'110
the
if
ity
it
.
call
TTpyipp
about'placing
shares
economic struc¬
basic
y*u
(secured
by
4's)
a
the
on
plus
stock.
present
ture
^"fav'n^thk
I suggest you
rearmament.
read
your
news
about
proposed disarmament
plans with
each
qual!
a
$1,200
of
year
#
I
wish
I
pany) the
that I read
tban 5q%
0f total net.
*
•
nth in*
h^,
„f
^PhfJ.
,
.
f
dire^dI>iS
Canadlan Pacific! It's
if, in
any
management
echelon, you'll find such
gant r0ster of the
an
economic
.
some
the
slight
most
reasons
for CP
rail
spectacular
ele-
- £as£
gr0wing
country
producer of minerals,
bly
the
British
oil to replace
as
or as
future
a
possl-
source
of
Iran, CP appeals to
,.
of
the
largest Hotel
facilities for
-
banquets
meetings
r
office parties
Outstanding
or
,
,
small
values-for
large
groups! Clark St. sta.
7th Ave. IRT subway in hotel.
Telephone MAin 4-5000.
HOTEL
elite, the imaginative.- It's an across the
__
Presidents
N. Y.'s
offers foremost
vast
,
,
■
,,
,
as 1S contamed in the CP direc- board coverage of what's happentorate.' Among - other names are ing across Canada—by land, water
the
hand
sense
FROM WALL ST.
Performer on the Exchange (with
S the ' possible exception of NP).
S®"?'Whether viewed as a railroad in'a
ought ta lcok at that board^of
-^?
one
5 MINUTES
The foregoing account,
ceive
to'be
5
5
-
daily. On
—
«
f
*
I feel it doesn't make
sort
hotels, plus the ships, in
—
*
could understand
favor
you
'
.
Bank
of
and
air.
]
care.
selling all the diplomatic double talk:
seven
If
j
despatches j
Pr0baWy °UgW
one
pie;
com-
of
which, in turn, is built
a rapid
of newsreel summary of
another investment-type
company,
what's cooking in CP, is of course
jt does not appear
logical, how-"*. vastly incomplete. A number of
ever, that possibilities of corpo-' brokerage houses have prepared
Quite PYtpnslvp
on
rate fission here should be the ninfp extensive studies nn this
thi«
dominant cause of an upward property, .to.which I humbly refer
surSc in CP common. In 1950 rail- you. But even with what little is
road earnings alone produced more 3otteu down here, you must per-
land, the Smelting
cause
into
for
Currently
these 3,/2>s give
bond
Perpetual
by lush
corporate
bond-
technical.
than
a
Con¬
nnnimrtiWo
convertible
are
common—29
«.°°°
a
necessity
were
^Micyatirmc
obligations
ap-
more
our
April 1, 1959 these carriage-trade
it
labor costs, and it, too, goes
government
;
is
a
on
look
*
reason
It deals with
$1.50.
varinn„
you
■'
*
"
common, are
share
per
$3.50
dends
predicate The
■■
*
.
37%
was
was
purchase of CP
above
If
to
The
room.
'
to
should
th
°'n whic'h
you
when
ket.
45 seconds, the next
sit down in a broker's
every
«
I£ you Iike romance
in your investments
satisfy you.
world's
largest producers of lead zinc and
silver; and added to this, it is now
building chemical and fertilizer
It might
aside that
an
million for 205 000 horse-power in
time
Actually
$17,046,- doubtful
same year it paid
of
ll°m How conservative can you pations are no secret. It seems
get?( And Consolidated is grow- to me that if
any additional
ing'with a Present expansion program of $64 million including $30 important (buying is to be
in-
of
moment
ofToTonlv
looked at
come'"?ay *■™arket pnces' °Jer $30° ml
fancv
result
buying. The
Today they are a lit- there should be either a dull,
million. Also it is not
dead market, or a decline. The
conclude that balance
have b?en important- reasons behind this belief are
about
and
This holding
At the 1950 year-end
CP of
Cominco
carry
hay
week's
of the rally was
been fed
by short interests cover¬
charges stood at
SSr
Montana
some
between
Last
was
the
sound ah along, but great ln}~
ingprovement has been recorded in
^0past 12 years. For instance in
$2Mo<-»/7a7*
tle over
^correct to
sheet assets
is that the
reason
now
fact that it
be
which will flash before your eyes
the
old
is
grass.
in that
West
own
located, too.
and
as
transcontinental and
national air service—at a
|m] | l-l
^5V^li.ljiII IjAj 1
our
ot'ly understated. Mention was macfe
a while back, that the Consolidated
''Texas,
mlgnSude If
under
trains
ates
14
of
other minerals besides oil may be
the
Bottled-in-
%( .1-1
to
times.
,
and
/
ment entry into this picture is the market (in some
cases;
concerned, there are two mediums
recognized'that only a small per- that might be suggested. First, of some distance under) rather
centage of land held will probably course, is the: 13,400,000 shares of than bid for them at the mar¬
on
prove importantly oil bearing. But ''ordinary
stock, V quotations r,n
the
Pacific
and
Something surely should be said small
re-
see
"reservation.for exploration," and
it should In any event be frankly
there
conscious,
the
hostelries
And, oh
^fliriTI
opening
partes (actually bringing iri oil):
mpm
market
the rosiest predic-
stretch
Banff
ported
Boads.
the
its customary V«th royalty
interest
cieveiop
mmnarnhle
earnings,
earlier
a
in
parnin«o
tential earnmgs> comparable
at
acres are
Dakota) oil field
CP is in
netted
Swiss interests recently!).
in
as
If
the
Canada
North
true
ocean
just feeders
as
—the
(perhaps
Bottled
Bond. Twice
as
tpntial
were'
Pacific*
8 mill ton
calling the
To
as
with their alpine scenic grandeurs
Straight Bourbon
or
Rye Whiskey,
100 proof. 8 years
acres
f]pVfu0n_
ment of natural resources, and po-
con-
minerals
to
Canadian
are
Springs, and Chateau Lake Louise,
SCHENLEY
land
I
now
%
ton.
a
exquisite
OLD
that
so
*
The chief
horizon of to
of
IS
tt^Lo ,uture earning Power of Canadian vertible Fifteen Year 3V2% Col¬
fl"et Include? the luxurious Em- Pacific Like its Unlted States lateral Trust Bonds due Oct. 1,
press of Scotland, Empress of Canrailroad^Droblem8 "of 1966' Between April !, 1952 and
ada and Empress of France. And
more
old. 35% straight
whisky. 65% grain
rights
the North"
assets
Blended Whisky
86.8 proof. The
P
,
but there's
acres,
11,384,000
with
people
new
press company
taste.
P
•
lot of land
a
much
original inventory
an
million
S.
country.
It thus combines long hauls with
richer, milder, far
25
by
figures, railway assets
on the
books at a net
from
left, out of
0f
over
roads in
that it chugs for hundreds of miles
most
pp®n,
land
a
greater; than
nnnn1afi'
in, population,
£rowtn
wpstnrn
nnen
off
sisted of but 953,831 acres of farm
and
pasture land, -plus> 609,718
of this
locomotives, 77,300 freight
and
cars
1..
anybody, particularly myself.
re-
Vancouver, Alberta-deep in the heart of what
$1,100 million; and in1,880
steam
and
diesel-
electric
widp
1950. owned
tained
of
elude
31j
run-
British Columbia, in the West, is
the longest privately owned railway on this planet.
If you care
a
Dec>
Bruns-
ning from St. John, New
for
thr»
Settlers-so
to
v>
20,875 miles of railway in Canada
and
h
teresting.. But right
' ujatibn about even with that of strength
ulation about even with that of
grant New York
state a]one_i4 million. considerable cash
,
land
corporate name, we acres of timber land and town
talk about that phase sites. That doesn't seem very much
CP
1 y'-yi,
-:;'T
By WALTER WHYTE
Ca-
wrapped
Canada,
stateSj yet containing
its
to
first.
word
dpVfdon
spaces, CP sold
causing
the
Why te
V'
I
geographi¬
—
industrial—as is
1
develoP
is
toaay' J.usl ^"at/t.IS
been
Since
"*
*
'S
in this single package labeled
Canadian Pacific.
It's a call on
J00?
^ government when it Commitment
S
ed °}* Lying ^es—.25 P11? and offers, to the
0?acres to be exact
To colonize
j
mineral
mineral
on
*
whacking
a
Cobleigh
U
has
iv
up
Co¬
leeway!
much
u
cal and
split
a
in
another road, CP
many
ceived
brief reoort todav
U
'
but frankly you'll
little of immediate interest to
before you find so
way
much diversification
With
3-for-l)
was
long
go a
.
;
that
•'
,w''
trainsport assignment
program,
ar¬
Now let's talk about real estate.
let s
estate
Like
Ira
a
future ;profitreal estate.
Walter.
..
seek diversification in any invest¬
rea¬
ment
In
one.
"Stocks
myself
gave
'
lights to gold¬
based
oasea
The
minco before July 4, 1952.
head¬
ability
aDiiiiy
basis.
personal
a
in
(my
cars,
visions of
Markets
London
Another interesting sidelight is
the fact that this mammoth pri-
five-
a
Personalities," I predicted
switch
en
is
1951, entitled
locomotives
and
RESERVE
Tomorrow's
it places
ticle
items
their
one
the
^
great
Cominco announced
week
for-share
forget such
and
of
for-one split of its common stock,
son
encour¬
prosaic
Here's
and
■
Pa¬
aged investors
SCHENLEY
Ca¬
This is going to be one of
with Canadian National Railways,
a-value of about, a government owned and operated those columns
you can skip,:,
$36 on the new shares—suggesting ;!Wstem!
V 5
\^ ^ ^
with little regrets. Maybe as.
the possibility of offering minority '"—
'
It' has long been fashionable to I
holders CP common on a shareget into it, it'll become in¬
cific, south of
border, it
has
magnitude.
You perhaps noticed that just last
production
First,
the
tMUlGO&C
of
of
'.?■i'!•■■■ brass inrybiin.security holdings,';
V:
\
the
and
This is of interest for two reasons.
company, is
all over Can¬
associated with'
ada. Taking its
Newman and Co., In-,
c li e
from
Fla.—William V. Barn-
become
graham Building.
a«da,-
brother " you've got it
Pacific,
MIAMI,
Bank
Royal
.,
" Canada, General Motors of Can-
\
By IRA U. COBLEIGII
Author
with
Joins Frank D. Newman
stone has
the
and
the Presidents
nadian General Electric,
Canada,
Thursday, December 13, 1951
...
Chairmen of the Steel Company of
New
ship.
The Commercial and Financial Chronicle
.
Clark St.
Brooklyn, N. Y.
Bing & Ring, Inc., Management
to
Volume 174
Number 5072
.
.
The Commercial and Financial
Chronicle
.
V
(2255)
*
i
and
arm
re-arm
intend
we
strength; in
with
daily unless
to
Russia.
,e"
lead from
dickerings
our
.
Tar Not« Parlnorc
But: if
'
we
then
;
,
:
.
'•
.
Ten
r
;
mitted
new
to
fMajor industry throughout
•
country
seems
to
be
equally confused.. It has been
New York
New York
crease
production.
J".
nue,
partnerships
on
Jan.
will
*
.i
v
Some of these
to-Wall
came
undoubtedly kept markets
tenterhooks.
triotism
aside,
then
be
water and
the
.
fore
a
holds
and
joining Merrill Lynch
security
a
analyst
with
he
was
Moody's
Investors Service.
:
;
Austin
connected
A.
Graham
with
the
has
been
Pierce &
-
firm
St.
in
Co. in 1929
as
an
order clerk and is now in the
buy¬
to
become
Louis
1948.
,
office
He
manager
when
has
civic, 'charitable
the
of
was
President
of
own
emy and the University of the
South. He has been with the
firm
since 1932.
firm,
John j; Gurian first
entered the
investment
J. Lowell Driscoll has been with
the firm since 1939, when he was
business
-
joined
count
as an account executive.
He
graduate of the University of
Michigan and at one time held the
office of State Treasurer for his
native South Dakota.
He is now
a
Willis
has
been
the
in
was
Stanton
Military
attended
Academy and
to
sit
with
some
from
the
his
-
football
team.
Merrill
Savings Fund Society.
>
around
of
fancy dishes.
In any event some of these
selling will; in
my
opinion,
be sufficient to
stop any sus¬
tained
advance
for
the
time
*
being.; However, I think that
recent
purchases
should
.V
V
i
be
held intact.
[The
article
time
views
do
expressed
in
this
necessarily at
not
coincide
any
with
those
of
the
Chronicle.
They are presented as
those of the author only.]
Pacific Coast
Lieu
ri ties
Orders Executed
Pacific
Coast
Who Wouldn't
on
Exchanges
4
Crow About
Schwabacher & Co
Established
1919
INVESTMENT SECURITIES
Memb
New
York
York
New
Curb
San
Chicago
Wall
14
Private
Stock
Board
Ycik
Trade
Exchange
New York 5, N. Y.
7-4150
Wir^s
Exchange
oj
Cotton
Street
COrtlandt
San
Exchange
Exchange (Associate>
Francisco
New
v
$308 Million
rs
Stock
a
Teletype NY 1-928
to
Principal
Francisco—Santa
Year!
O/lices
Barbara
Monterey—Oakland—Sacramento
Fresno—Santa
SPECIAL
'i
Rosa
CALL
Par
•
OPTIO\S
100 Shares Plus Tax
That
•
Canadian Pac.@36
Feb. 14 $325.00
U. S. Rubber. @71 *<4Feb.
2 350.03
Sinclair Oil...@42
Feb.
9 262.50
Studebaker.. .@33
Feb. 11
Dist.
137.5J
Seagrams@25% War.
No. Pacific ...@70
Jan.
So. Pacific .1. @59
Feb.
10
:1
.@38% la*.
Mission Corp.. @27% Feb;
25
237.50
19
19
425.00
19
462.51
tions may
vest
Broad
—
$65 million in fruit and field
crops,
$243
362.50
3
territory served by West Penn Electric. A rich har¬
325.00
Gulf
Information
regarding West Penn Electric's
opera¬
be obtained at the Company's office, 50
Street, New York 4, N. Y.
387 50
Armco
the 1950 income from agriculture in the
was
Steel
Oil......@49%Feb.
Pbilip Morris.@46%Feb.
Imperial Oil.. @34%Mar.
So. Railway
.@59% Febi
Air Redaction.@26%Mar.
B & 0...
,;.@19%Mar.
.
Gen.
Motors. .@50% Ian;
lnt'1 Tel. &
Amer.
Tel.@16% Feb.
Woolen.@39% War.
Sutrjnt
to
prior
Explanatory
sale
or
pamphlet
9
225.09
262.50
15
300.00
15
200.00
8
175.00
17
287.50
19
212.50
15
200.00
price change
on
request
Put <fr
Calls Brokers & Dealers
Association, Inc.
Brnndwa* N. Y. 4. Tel. B0 9-8470
dairy products!
West Penn Electric power
serves
farms, orchards and
dairylands in Pennsylvania, Ohio, West Virginia,
•
THE
Maryland and Virginia. Cold storage and processing
of
fruit, drying grain and hay, lighting and venti¬
lating barns, milking cows, hatching eggs, processing
Electric
feed, driving machinery —electricity helps farmers
do all these
jobs better and faster. In
our
Company
five-state
■
THOMAS, HAAB & BOTTS
Members
million in livestock and
area,
agriculture is big business—with the
stay big!
' '
power
(INCORPORATED)
to
./ " :
Principal operating subsidiaries: Monongahela Power Company
*
The Potomac Edison Company
•
University
Before
he
Lynch in 1946 he
Vice-President ■' of Western
doubts added to the
year-end
tax
Portland, Orev
C.
be)
glass
a
he
ac¬
Thayer, is manager
Philadelphia office.
He
graduated
joined
he
an
of
Pennsylvania, where he was
All-American end and captain of
brokerage business for over a
quarter of a century and with
Merrill Lynch since 1927.
Born
Ga.,
as
in 1934.
He has
his life in the Pa¬
Northwest and is now man¬
George
of
in
when:
of
ager of the office in
the
Augusta,
Lynch
executive
most
cific
managing the Minneapolis office.
D.
Merrill
spent
hired
Francis
native of
attended Sewanee
Military Acad¬
Bitting, Jones & Co.
is
a
Tennessee
and
manages the Mer¬
rill Lynch office
in Memphis.
He
opened
active in
and
his
is novfr manager
Atlanta office.
John C. B. Burch is
the
it
been
Citadel, and
of the
,
financial
circles in St. Louis since
1919, and
before, he came to Merrill Lynch
investment
business since 1919, when he took
his first job as a
messenger with
Spencer Trask and Co.- He joined
E. A.
v
attended
Lynch's
big dinner and
a
asked
indefinitely
of
College
.
of Merrill
underwriting division. '"*•
Kenneth H. Bitting joined the
15
'*
4
pa¬
can't
one
one
He
•.
degree in business administration
from New York
University.
Be¬
Street
joined
years.
ing department
-
on
Morality and
prepared for
He
graduate of Yale Univer¬
sity and served for
many years as
a trust officer in
the Commercial
National Bank and Trust
Co.
./James D.
Corbett, Manager of
the industry specialists'
depart¬
ment, has been with the company
eight
Dartmouth
are:
graduation
security
is
a
for
1, 1952.
John F. Sullivan joined Merrill
things have
.
become
in ! firms which later became part of
the present
firm, in 1931 as a mes¬
come
He is
ad¬
Exchange, ■ it is
by Winthrop H. Smith,
who
senger.
*
V
Manager of the
firm's office at 575 Madison Ave¬
A '
plans called
as
4
be
Stock
Co<,
orders have not
Lynch
City, members of the
glance at various statistics, immediately after
from Harvard in 1929.
however, will show that the E. A. Pierce and
war
ir
will
The new partners in N. Y.
John H. Moller,
production and in¬
war
v
a
now
Manager of
department in the
firm's: security research
division.
managing partner of the nation¬
wide investment firm.
'. ;.
effective
for months to cut down
civilian
on
•
and
as
the ; pension
Lynch, Pierce,
Beane, 70 Pine Street,
Fenner &
The
the
?
partners
1945
i-in
analyst
Merrill
announced
told
■
are.
why sit. down and-talk.
cutting down our arms
production?
a"nerS
For Merrill
looking for increased strength
about
*
*
*\
Lynch
Wesf Penn Power Company
16
The Commercial and Financial Chronicle
(2256)
Our
"The basic and correct concept of
security is
something that benefits everybody; that everyone
should strive for, every one should have
and
that one should achieve through one's own efforts
and not at the expense of some¬
body else.
"In the
of
name
security and
.
boon of
lifted temporarily by the action of the monetary
stepping in here and there and taking securities in
order to keep the market orderly.
The opinion seems to be
gaining Strength that the long-term Treasury obligations are
establishing a stabilization area which should be a good buying
opportunity for those that are interested in income and modest
price betterment over a period of time.
Nonetheless, it is going
to take some time before the income-minded investor is going to
others.
we
the
at
In
of
expense
nation capable of
people generously
have artificial scarcity erea
'
Gen.
Somervell
and
our people are
paying prices
less and less able to afford.
"Because of similar economic fallacies and policies
based on political expediency, the security of
other groups ; is being steadily undermined.
The
wage earner, benefited temporarily by necessary
wage increases to keep pace with the rising cost of
living, finds that this, gain is illusory/-'—General
for food that
...
they
are
All this
seems
so
understand
-We
on
so
can
obvious that it is difficult to
the hold this false
many.
-
^
security
seems
to
'
only wish the General all
success
in
arousing the people to their danger.
lloins Charles Parcells
(Special
to
The
Financial
Swift, Henke
& Co., who
has served for
the past two
years.
Fred
Commercial
market from
ury
until
now
the
end
active in the Treas¬
more
the year,
of
according
to
reports.
It is indicated these banks, which have not been doing
very much in the government market, are taking losses for tax
the process of preparing for this operation.
being bought in place of the obligations which
being disposed of by these banks, are bills, certificates and
notes.
It is reported that many of these smaller banks are in the
excess-profit tax brackets and, in order to cut down the tax lia¬
bility, are evidently willing now to dispose of some of the higherincome eligibles upon which they have fairly sizable losses.
In
purposes
or
With Waddell & Reed
Chronicle)
mour
is
now
associated with Wad-
dell &
Reed, Inc.
Miss Seymour
was previously
with the Detroit
Stock Exchange.
Stock Exchange.
most of these cases, the bonds that are being sold will be repur¬
chased as soon as the 30-day period is over. A few of the
banks,
however, may be inclined to wait longer and take a chance on
picking the time and spot iii the market fot repurchasing these
securities. They feel that the market quotations are not
going to
register any important changes;. as far as the higher-income elig¬
ibles are concerned, because of the influence the 1952 eligible tap
issue will have upon the market trend of these
obligations.
Thompson,
has added to the already sizable buying that has been going
The fact that the smaller deposit banksv
have now entered this field has increased the competition some¬
poses
in these securities.
than
expected would take place, when, as and if
they came in for tax purposes. Corporations continued to keep
themselves will invested in the near-term obligations, with savings
more
was
in
these
these
issues.
than
to
general
partnership and John
Goodbody to limited partner¬
ship in the firm.
C.
Goldman, Sachs Co.
of the New York Stock
on
around to
There
much
1952
sizable
more
a
Exchange,
will admit Durwin D.
Algyer to partnership. Mr. Algyer
is Manager of the firm's retail
sales department.
Joins
(Special
to
Renyx, Field
The
Financial
Colo.
Chronicle)
—
John
D.
eligible
group
enough
of
Joins Schwanz Co.
in
(Special to The Financial Chronicle)
case
AURORA, 111.
is the
institutions evidently liking this
been
lister
has
Schwanz
these
&
obligations
However,
—
Hazel -D.
joined
the
Hol-
staff
much
chants National Bank
Building.
buying would be needed to give
improved
tone.
market
The
June
1959/1962s have been fairly well taken, but they do not have the
same
following
as
U. S. TREASURY
the 5/5/52 eligible obligation.
Market Briefs
STATE
#
Our clients
cause
routine
never
Pension funds and certain charitable organizations have been
blow their tops be¬
producing superior printing is
at
Sorg — even against the
sellers of the short-term
funds
same
most imminent deadline.
have
They know the quality they
specialists with
over
can
expect
thirty years'
corporate and legal printing and find
distinct
I
advantages in
handling of
design, printing, binding and mailing
all under
one
our
roof.
the
last
»t„ NEW
iai,
(aorftcrab 3ri*tn>s
Un4»* AmkJM*
McCORMCK o»d MENOWiSON, be.
The UAGftAVf P«$$, fc*.
MUNICIPAL
this
case
SECURITIES
in the
*.
insurance and casualty companies have been
buyers of
two
to the well
The
than
the
more
are
doing
2%s
due
usual
banks,
Accordingly, it
often, which is what
appears
a
1960/1965
with
many
of these
v
now.
amount
good
up
to be better to
of
the
continue
to
attention,
Cleveland
be
getting
institutions
a
bit
more
from
especially
the
mid-
reportedly
Atjbeey G. Lanston
& Co.
the
INCORPORATED
largest buyers at this time.
YORK GO, N. Y.
Oiico#» Awocfef*
/
.•
bonds in small amounts.
western
m SOUTH
some of
though it is much easier at this stage of the market to pick
concerns
PRINTING CO., Inc.
These
maturities of the tap bonds.
These purchases, al¬
though not very large, have been rather, consistent.
It seems as
go
SORG
stocks.
lower, which has been the
-
Fire
experience in every type of financial,
common
into preferred stocks, with more funds likely to go into
these stocks if prices drift
past.
and
obligations, with advices indicating these
going into high-grade
institutions, according to reports, have also put
money
from
been
Savings banks, it is believed in
some
quarters, will be fairly
sizable sellers of governments after the turn of the
year for tax
loss
and
in
order
to
get funds which
tax-exempt obligations.
will
be
used
to
pay
for
Some of these municipal purchases, it is
reported, have been made
on
a
delayed-delivery basis.
15
4
Broad
Street
NEW YORK 5
WHitehail
of
Company, Inc., Mer¬
supply is not too large and it is believed not too
of the real investment
obligation
the
was
keep quotations from advancing very much.
it is indicated the
this
more
have
1
Inc., 2239 East Colfax.
./ Although volume has not been too
day.
Jan.
are
The principal issue in the
each
Algyer
Goldman, Sachs & Co., 30 Pine
Street, New York City, members
in the center of the spotlight
passing amount of interest being shown
a
2i/2% due 1962/1967, with
bond
&
Menge is with Renyx, Field & Co.,
bonds, it has nevertheless been larger than
recently.
Bros.
Jan. 1 will admit Frank W. Bryan
.DENVER,
1052 Eligibles in Spotlight
eligible tap bonds
more
Lamson
Admit Two Partners
securities is in sight at the present time.
again with
three-
Goodbody & Co., 115 Broadway,
New York City, members of the
New York
Stock
Exchange, on
banks and life insurance companies also putting
temporary funds
into the short-term obligations.
No let-up in purchases of these
The 1952
Jr.,
To Admit
Demand for the short-term issues is still very strong, despite
tight money conditions. Switching by commercial banks into
these securities from the higher-income obligations for tax pur¬
what
for
Mr. Baum, Mr.
Goodbody & Co. Will
Short-Terms in Demand
on
elected
terms were:
Fairman,
Leonard
J.
Paider,
Goodbody & Co., and Edward F.
are
DETROIT, Mich.—Mary J. Sey¬
Parcells & Co., Penobscot Build¬
ing,
members
ot
the
Detriot
Harris, Upham &
elected Treasurer.
was
year
(Special to The Financial Chronicle)
DETROIT, Mich.—Richard E.
Schmansky is with Charles A.
Harry A. Baum
Richard
L. Kennedy, Jr.,
in
are
The issues that
Vice-Chairman;
Governors
banks, that is the smaller out-of-town institu¬
t
elected
was
Co.,
Selling by Commercial Banks
tions, have been and will continue to be
'
W.
Fairman,
Jr.,
Sills, Fairman
& Harris, Inc.
are
?
have
Tax-Loss
,
Brehon B. Somervell.
•
',
How¬
"... The short-term market is just about as vigorous as ever in
spite of tighter money conditions, with the liquidity and riskless
asset buyers as active as usual in these issues.
Small out-of-town
deposit banks are a new addition to this field, because of tax
operations.
;
ated by the most fantastic eco¬
nomic delusions
Harold
'
its
annual
Blumenthal of
greater stability comes into prices (as many believe will
case), the size of the commitments will no doubt be in¬
creased.
' •'
'V
all
Ex; -
■
succeeds
the
be
Stock
meeting. He
ever, as
one group se¬
of
Firms
at the
been
put much more than limited amounts in these securities.
giving
change
-
authorities in
price support for their
feeding
have
to
/
Association
cago
interim
an
elected Chairman of the Chi¬
was
market appears to have stabilized, at
period, just slightly above the lows of the
The pressure of selling, which has never been large, appears
year.
products.
curity
CHICAGO, 111.—Harry A. Baum,
Wayne Hummer & Co.,
partner,
The government bond
least for
farmers the doubtful
"This is
Chicago
Exchange Firm Ass'ii
Governments
on
By JOHN T. CHIPPENDALE, JR.
through the expenditure of bil¬
of all taxpayers,
the
economic
planners have
our
Reporter
.
lions of money
given
Thursday, December 13,1951
Baum Heads
Sound Analysis!
.
««•
3-1200
,
45 Milk Street
/"
BOSTON 9'
HAncock 6-6463
'
The Commercial and Financial Chronicle
Number 5072
Volume 174
should
Pension
Systems
By ROGER W. BABSON
Pointing out pension systems may
improve labor relations, but can
also result in colossal trouble,
Mr. Babson stresses need of cau¬
tion and research in setting up
Warns "all
pension plans.
ties involved
•.
sitting
are
par¬
keg
on a
of
dynamite" when investing
money
for thousands of wage
care
to
want
bonds, ignoring the continual de¬
cline in the value of the dollar,
whose
the
most
in
age,
All
be affected. When, how¬
bank is investing this
for
1,000
wageworkers,
families are depending al¬
a
de¬
PenSystems,
sion
V
greatest
dren may
with employees'
connection
dynamite! Hence, the
should be taken.
Some banks want to invest all
of
keg
a
payments
ever,
and very important
new
invests the money.
mittee, after employing
independent advice, to
outside
Carlisle & Jacquelin Admit
consult
with the bank about the policy,
to retiring em¬
the money in Government Bonds, and inform the wageworkers quar¬
ployees are made by the bank.
forgetting this policy was followed terly thereon. This cannot be done
Where Is the Dynamite?
by the big banks of Germany by using an insurance company.
The work of the Trust Depart¬ where these Pension Plans started.
ments
of banks has heretofore As a result, the money was en¬
J. H. Brooks Admits
been limited largely to handling tirely wiped out with a total loss
J. H. Brooks &
Co., 25 Broad
Family Trust Funds, serving as to everybody. Other banks want
Street, New York City, members
Executors of Wills, and operating to buy stocks now selling at an
of the New York Stock Exchange,
Agency Accounts. In these cases average of $270, forgetting that
on
Jan. 1 will admit Roland W.
only a few beneficiaries are in¬ these stocks sold at only $42 in
1932 and may again. Other banks Nicholas, William W. Stahl, Wal¬
volved. If the bank then makes a
The
money
A
paid to the bank and
mistake, only two or three chil¬
earners.
velopment is taking place in
investment
and
labor world
be
how the bank
solely thereon in their old
as
are
sitting
corporation
der
the
Henry Davis to part¬
120
"shotgun"
correct procedure
theory.
The
is for the Com¬
Mr.
Swan
in
Exchange.
and
Jan. 1 will become
New
York
Both have been active
Farr & Co. to Admit
Farr
Co.,'120
&
York
York
Stock
will
1
Wall
Exchange,
admit
importance to
em-
every
,
and
ployer
■
'
every
reader
ofco^umn
,^
w;
Bf
*■ B1
/-"IPB
'
-
Pension
Systems may
greatly im-
v'o jBB
mtk'M&tA Jli^B
labor
prove
relations,
can
or
result
in
colossal
trouble. At the
time
present
a r e
not
controlled
by
they
Roger W. Babson
1
and
e
g
i
s
lation
usually unsupervised by
corporations and wageworkers
enjoying them.
;
are
the
What Is
There
are
Pension Plan?
a
various forms of Pen¬
sion Plans and all should be "cus¬
tom made" for each different cor¬
poration. Usually they provide for
compulsory retirement at 65 years
of
optional retirement
of employment.
Each wageworker receives a pen¬
sion based upon his salary and
number of years of service, less
his Social Security Pension. A full
pension usually averages about
and
age
after
30
$150
a
and
years
up
month) for wageworkers,
$600
to
month
a
for
executives.
For
any
corporation without
new
a
back obligations, this is
a very
simple matter. Even for old cor¬
porations it is simple to care for
new employees and to make cur¬
rent appropriations for old em¬
ployees. But, when it comes to
providing the money to take care
of the
back years of old em¬
ployees, this requires heavy ap¬
propriations. To encourage cor¬
porations to adopt these Pension
Systems, the Government allows
(if definite rules are followed)
the corporation to charge all such
BELL
appropriations to EXPENSE. This
that
means
one-half
about
Sam
Uncle
of
the
will
bilL
which
may
New Gun Director Is
be very
that
tion
is to have a Committee appointed
—one
member
stockholders,
representing
one
It's
even more
a
factor in the last war. . . . The radar equipment
or night, and feeds continuous informa¬
planes, day
concerning their location into
a
computer or "electrical think¬
ing machine.".. , At the same time, data relating to wind velocity,
velocity of the shells, temperatures, etc., arc given to the computer.
The machine then calculates where a shell should explode and aims
Good News for the Country
of operation
proved such
locates hostile
ad¬
Method of Operation
method
"ELECTRICAL THINKING
effective than the Dell Laboratories' famous Electrical Gun Director
The
vantageous to all concerned.
The usual
NEW
MACHINE" AIMS ANTI-AIRCRAFT GUNS LIKE THIS ONE.
pay
corporation also can have the
Trustee purchase some of its own
stocks,
LABORATORIES'
TELEPHONE
the guns,
the
continuously and automatically, to bring the planes down.
member repre¬
senting the wageworkers, and one
member
tives.
representing the execu¬
Committee selects a
This
lawyer to draw up the proposed
Pension Plan, an Actuary to deter¬
mine the annual payments (un¬
less
an
insurance
company
is
used), and a bank to receive the
funds for investment. If the Com¬
mittee is wise, before any
plan is
adopted, it will first employ some
impartial statistical organization
to
give independent advice in the
parties.
interest of all
Some
Pension
Plans
Which
wageworkers make * a
tributory,"
in
are
"con¬
the
contribu¬
the entire
case
Call to Arms. Once
search and
System
again the
re¬
manufacturing of the Bell
are
mighty
weapons
in the
defense of the country.
More than twelve hundred
ects
for the armed forces
pleted in the last
assignments
war.
are now
completion. This
proj¬
were com¬
Many
new
being rushed to
new
Fire Control
System is already in production.-
Skilled Teams at Work.The Bell
the Bell
System's ability to serve the armed
forces comes not only from its unique
ing unit.
qualifications in the field of elec¬
tronics, but from the way it is set up
and
equipped to do the job.
Telephone Laboratories,
the research and develop¬
ment, work
hand-in-hand with the
Western Electric
Company, which is
own
this close, efficient association
development, and manu¬
of research,
helped to give this country
tjie best telephone
world. It is
now
tion.
After the above steps have
the work con¬
actuarial study each
sists
year
of
to
an
determine
how
much
BELL
service in the
helping to give the
nation the world's best
weapons.
tion, but in most cases
burden is carried by the corpora¬
been consummated,
manufactur¬
;/
facture has
The Bell
who do
System's
Service and Security. For many
years
TELEPHONE
on
Lawrence
Howland Dixon to partnership in
It is of Utmost
'
Street,
City, members of the
the firm.
Mr. Whitaker in Hazleton.
City,
individual floor brokers.
as
Scranton, Jan.
Wilkes-Barre
on
Broadway,
New
Stahl in
and
and
both
members of the New York Stock
New
Nicholas
Jr.
Stout,
partners in Carlisle & Jacquelin,
Mr. Davis will be in the
Insurance
Winkhaus,
Dominick
Exchange,
Swan, Arthur J. Whitaker
and William
Com¬ nership.
which follow all three policies un¬
on
ter P.
T.
members of the New York Stock
there are banks firm's New York office; Messrs.
Life
panies. Finally,
the situation is very different.
parties involved
the
do
only
buy
John
Bayard
SYSTEM
fighting
18
(2258)
The Commercial and Financial Chronicle*
leaving
looking Ahead 50 Years
For Business and Indnstiy
Aircraft
Bell
rise
Corporation
Prominent aircraft
manufacturer, assuming we can avoid an
long period of high degree of prepared¬
ness and creeping paralysis of communism, contends weare on
threshold of industrial and business, developments that will
'create a better life both at home and abroad. Advocates aid
to industrialization abroad and decries fears of overproduction.
annihilating
:
and
trying to look into the future
.pertain basic factors must be con¬
sidered before any clear vision is
possible. For example, in r what
1
of
kind
•
with
home
it
assist
in
is
fall
were
tive
We have
NSTA
happened
empires
the people'
because
targets for
easy
aggressive
which
race
any ac¬
virulent
or
SECURITY TRADERS
improve
Harry
standard
our
pany
living
of
possible
way
other nation in the world.
these
P. E. Hoffman Joins
nations
other
that they can help themselves.
They have no money to buy our
goods and
afford
cannot
we
NPA
'
Directors
Hearing Officer
as
for¬
were:
going
m
the future?
'Are
nihilating,
or
his
—
that
not permanent
he can support
enforcement
activities
in
its
for
of
over-production.
he needs and that will
Lawrence
D.
we
the
to
succumb
realizes
creeping paralysis of communism
that will destroy our individual
shoes
of
that
there
unheard of
was
ago and yet today in this
country millions of sets are owned
by people in all income brackets
from high to the lowest.
in
developments
If
business and industry are to
contribute the maximum to the
this
country that can make enormous
tontributions to a better life, not
welfare of mankind
only at home but throughout the
better
duce
,j.';
of
in
us
the
50's
well
can
progress
must pro¬
we
of better and
more
things at lower costs.
the
Un¬
productivity
of
the American people, individually
and collectively, has not kept pace
have
! made since the horse and buggy,
the coal oil
and
more
fortunately,
our
few
a
we
he
assistant
was
of
New
in
was
which
Commerce,
called
at
the NPA
by
York-New
in
-
backyard. Already in this country
we
have
progressed
in
many
that
world
have
every-day
life.
We cannot,
the
to
comforts
in
our
come
extent
unless
I
est
reason
-for
by
the
many
primitive
other
as
•Statement by
•Dec. 8,
Mr. Bell
Convocation,
the
at
If
meeting Dec. 7 at
Association
of
of Dec. 6,
as
New
1951
^
,
York
are
(STANY)
follows:
as
the
New
Points
'
Jersey region in
cases
41
of
priority
against violators
privileges,
of NPA regula¬
Krisam
38
34 "
33Vz
33
(Capt.),
Gavin, Gannon, Jacobs, Murphy
(Capt.), Lax, H. Frankel, Werkmeister, Ricd
Burian (Capt.), Siepser,
Gronick, Growney, Kaiser
Hunter (Capt.), Craig,
Fredericks, Weseman, Lytle
Greenberg (Capt.), Siegel, Cohen, Sullivan, Voccoli
H. Meyer (Capt.), Swenson, A.
Frankel, Wechsler, King___
tions.
Hoffman,
is
native
a
New
a
United
200
Jewish
the
American
Jewish
Club
5
George Leone
243
Point
..
32
Bean
Mr.
■
38
-
pension
of
350; members attended the annual
32
30V2
28
27
23
Club
Joe Donadio
BOND CLUB OF DENVER
The following officers
the Bond Club of Denver:
were
elected
at the annual
meeting of
Com¬
N.
the
of
are
the
execu¬
man
responsible for the
of
and
more
this
of
the
?
remuneration
the
to
better
unused
DES
higher
producers,
MOINES, Iowa—The First
Corporation has been
Iowa
formed with offices in the
Equit¬
able Bfiilding to act
as
under¬
writers and dealers in Iowa and
general market municipals, under¬
writers and distributors of
public
utility, industrial and railroad se¬
curities, and mutual fund shares.
Officers
are
President
IT'S
Corp.
Formed in Des Moines
of
frontier
much less time with much
Y.,
First of Iowa
who
capacity of all of us can be de¬
veloped, more and better and
cheaper goods will be produced in
the Niagara
•
team
of
automatic
goods at less cost.
coun-:
Buffalo,
1951.
a
production
life
tries.
Frontier
of
only
operate
machines, but also
nations
development in those
speaking
who
tive and the white collar
f:s the lack of industrial and busi¬
ness
not
am
workmen
we
belp the people of the less pro¬
gressive countries to share in our
good fortune. Perhaps the great¬
endured
productive
were:
things everybody needs and wants.? mittee.
however, enjoy this
fullest
more
elected
(Capt.), Ghegan, R. Montanye, Krassowich, Manson.
Goodman (Capt.), Weissman,
Farrell, Valentine, Smith_
Serlen
(Capt.), Gold, Krumholzy Young, Gersten
Mewing (Capt.), G. Montanye, M. Meyer, Lapaio, Klein
Leone
(Capt.), Tisch, O'Marra, Nieman, Bradley
Donadio (Capt.),
Rappa, O'Connor, Whiting, Demaye
Appeal
of
developed
to
the
button
pushing to the benefit of all concerned. It Greater New York and is a mem¬
stage. Through science and tech¬ is my opinion that the greatest ber of the national council of the
nology and the production facili¬ frontier of all, and it still remains Joint Distribution Committee. For
ties to implement this progress, to be developed, is the determined the past year, he has been Pres¬
-we will enjoy still greater con¬
passion of each individual to be¬ ident of the Essex County Chapter
and
Committeemen
Kumm
fields
veniences
About
TEAM
hearings
where the government seeks ad¬
ministrative action, such as sus¬
the
been
Pomeroy, Inc.
The Security Traders
Bowling League Standing
graduate of Dart¬
technological and mass pro¬
mouth College and the Yale Law
developments.
School and is a member of Phi
We./ are all familiar with the
new
He is a founder of
frontiers throughout the Beta Kappa.
lamps^wood burning
term
SECURITY TRADERS ASSOCIATION OF NEW YORK
duction
stoves and individual wells in the
t.wo-year
a
the Antlers Restaurant.
the presid¬
public
for
nates
general counsel
serve as
officer
F.
elected were: James F.
Fitzgerald, W. L. Canady & Co., Inc.;
Irving P. Grace, W. C. Pitfield & Co., Inc.; Cyril M.
Murphy, John
C. Legg & Co.; Barney
Nieman, Carl Marks & Co., Inc.; and John
J. O'Kane, Jr.. John J.
O'Kane, Jr. & Co.
i
hearing commissioner, Mr.
Hoffman will
ing
Alfred
and
Company, Inc. has been
Harry L. Arnold
Magid, Hill, Thompson & Co.; Edwin
Markham, Wertheim & Co.; and Stanley L.
''i
Roggenburg, Roggenburg & Co.
National Committeemen Alter¬
charge of the legal staff
serviced the Forest Prod¬
a
.
Samuel
ucts Bureau of the Board.
As
;
.
J.
of the War Production Board and
Yorker,
with
and
Mr. Hoffman, whose home is in
Orange, N. J., has a law office at
50 Broadway.
In World War II
years
Assuming that we can find a
way
to avoid these disastrous
situations, I fully believe we are
©n the threshold of industrial and
•remember
one
millions
millions of people jn the
World who do not have shoes.
ties and institutions?
world.
when
are
upon
activi¬ Television
freedoms and our private
business
come
more.
production
Will
never
because every one can always use
It is hard to visualize over¬
Bell
cf. ; preparedwar?
I do not be¬
lieve there can be over-produc¬ U. S. Department
tion until every one has the things announced. 1
long
a
York
New
Treasurer
elected
Ay. National
Jersey, John F. McKiernan, New
York
regional director for the
to the question
us
of
Zingraf
Edward J. Kelly, Carl M. Loeb, Rhoades
Hutton &
the
This brings
be
period of time
& high degree
|
Authority in connection with
family in dignity.
M.
Trustees of Gratuity
Fund, elected for a
two-year term, were: Samuel F. Colwell, W. E.
Hutton & Co., and John
Gahan, Schoellkopf,
commis¬
it
ever
■
hearing
a
States
to maintain
All
as
sioner for the National Production
Question of Over-Production
jrecessary
♦
pointed
*
,
Co.; Daniel Gordon Mullin, Tucker, Anthony
& Co.; Henry Oetjen, McGinnis &
Co.; and
Lewis H. Serlen, Josephthal & Co.
'
Philip E. Hoffman, New York
attorney noted for his philan¬
thropic associations, has been ap¬
war?
Will
crs
job
a
charity—so
annihi¬
-
lating
•
is
need
an¬
..rear
welfare. What the breadwinner
on
facing
we
all out
£n
>
ever to give them the goods. It is
comparable to supporting a family
itself
find
to
-
&
•
«3ustry
elected
was
Tiscn of Fitzgerald &
elected Secretary.
so
in-
Vice-President.
George V. Hunt of Starkweather & Com¬
pany,
to
'
YORK
elected First Vice-President and Charles
M. Marks & Company was elected •*
was
Second
opinion'we must
my
,
of Laurence
which is today far superior to that
of any
OF NEW
L.
Arnold, -Goldman. Sachs * & Company, has < been
elected' President of The Security Traders Association of New
York, Inc., for 1952. John J. Meyers, Jr. of Gordon Graves & Com¬
heritage and further
preserve our
ASSOCIATION
to
came
conquer.
Each of us needs to develop with¬
in ourselves a leadership that will
at
Notes
seen
lazy, careless and decadent
disease
progress
our
every
industrialize
cli¬
and
ness
Along
busi¬
is
mate
and
war or a
In
time
efforts.
We all know what has
in history.
became
;
leisure
more
in which to enjoy the
We must find
us
our
a way to develop more and
more
producers and less and less drones.'
By LAWRENCE D. BELL *
President,
much
for all of
fruits of
Thursday; December*
r; v
Harry
BEEN...
Roy
and
B.
Graef,
W. Leriche,
Treasurer,
and
Raymond Robinson
Vice-President
Secretary. Mr. Leriche was
formerly a partner in Leriche, Al¬
Company and prior thereto
officer
an
of
Wheelock
&
Vice-President—John
Cum¬
Des
increased
coupled with
service
its
Greatly
period
firm
our
the
at
brought about
since
demand
in
gas
render
rate
July,
the
.
our
.
has
are
of
gas
85,000
revenues.
.
customers,
approximately 33,000
and
and
&
gas
water
customers.
In
service
to
service
to
the
healthy
Indiana
tural
widely diversified industrial territory.
and
of
residential,
CHICAGO, 111.—Bacon, Whipple
Co., 135 South La Salle Street,
members
of
Midwest
J.
New
York
Committeemen
elected
agricul¬
and
With Eisele
R.
Shaw is associated with Eisele
King,
firm
for
(Special
to
The- Financial
HARTFORD,
Chronicle)
Libaire,
Stout &jtCo.,
isome time, Mr.; Bray as
.manager members of the New.York Stock
of
these
Statistical
Department Exchange. He was formerly with
and Mi". Wagner sales
Shields & Co. and Walston, Hoff¬
manager.
On Dec. 31, J. W. Marshall will
man
&
(
Goodwin.
In
withdraw from partnership In the
conducted
firm.
business-in Hartford.
.
"
his
Suffers Heart Attack
Conn:—Frederick
,
A
Stewart J. Lee
King
&
the
Robinson; Phillip
Co.; and Lloyd Hammer, Coughlin & Company.
Exchanges, will
admit Harold A. Bray,
Joseph E:
Rich and Leslie" Wagner to
part¬
nership on Jan..l. All have been
with
Mr.
were
;
Stock
the
National
Clark, Amos C. ;Sudler & Co.; Barnard Kennedy, Bosworth,
Sullivan &
associated
economic
area
Admit Three Partners
•
140%
-
natural
ert
Bacon, Whipple io
has
w
Campbell, J. A. Hogle & Co.
Directors in addition to the officers, are George Writer; Rob¬
Crist, J. K. Mullen Investment Company; Neil King, First Na¬
tional Bank of Denver; and Orville C. Neely, Merrill Lynch,
Pierce, Fenner & Beane.
*
,
best
.
company
1945.
served
customers
providing
Treasurer—Donald
v.-
service during the sis-year
resulted in a 42%
increase in the
now
Moines.
.
improved
increase in operating
over
equitable
healthy growth in
organization
number
We
natural
desire to
most
a
for
Alff, Amos C. Sudier & Co.
Secretary—Robert M. Kirchner, Boettcher and Company,
mins, Inc. Mr. Graef was pro¬
prietor of Graef. & Company of
The
Robert Kirchner
President—Raymond L. Robinson, Sidlo, Simons, Roberts &
Co., succeeding George S. Writer, Peters, Writer & Christensen,
Incorporated..
;
A
''-A '
and
len &
John H. Alff
the
past he
investment
own
,
Stewart J. Lee,
J.
60
Lee
&
Wall
suffered
fice,
1951.
head of Stewart
Co., Security Dealers at
Street;
a
York
New
Thursday^ morning,
He
was
Hospital, in
critical
City
heart! attack in his of¬
taken
to
Freeport,
condition.
Dec. 6,
Freeport
L.
I.,. in
Volume 174
{
if
Number 5072
""
.i
iTltlAllATI
.
.
The Commercial and Financial Chronicle
.
fl
V\
J
1
■■
LIPtlAtlATt
AAA
'
■
■■
©
Sit
IlUliVH^"*»■
■
^ and
•.
-
/■;/'to political suicide.
palxy of British Government as producing deflationary
effects, while higher wages and ■''over-employment" furnishes
inflationary pressures. Foresees public indignation if tightening
-
-
wave
Their writings tend to discredit the
government's policy of credit restrictions, because its opponents
are enabled to denounce'it as aiming at the restoration of mass
'
•;y:
the
According to their writings there was,
given period, either inflation or deflation or equilibrium.' It is only quite recently that the pos- - ,
sibility of inflation and deflation running sim- Vj
u.ltaneously in different spheres of the eco- . nomic system came-to be discovered.
Even i
-now
very little attention is paid to the pheJynombnon 7of - inflation and deflation running ; C
t concurrently.
Yet it is by no means a new .-j:
defense
any
over-full employment.
during
■
-
of
the
the
the
of
Exchange;
San
New
Palmer
William
and
partner.
firm
policy aiming at the perpetuation of inflationary
W.
On
will
the
same
ton
formerly
were
Davies & Co.
favoring full employment in defense of over-full employment.
;yw\w>>^Ar.
inadequacy of the output of
Asia
for luxury imports had resulted in
deflationary trend. It was confined, however,
to wholesale trade where payments were made
a
.-"*7
-:
i
.
Paul
Dr.
largely in precious metals changing hands by
weight. In retail trade payments were made in ^/;.
debased silver coins the silver content of which
Einzts
"
.
:
.
gradually
was
about 1% of their ;,'
which was increased accord-s ¬
reduced to
metallic value and the circulation of
therefore an inflationary rise in prices in spite
scarcity of precious metals. The same phe- Qs
nomenon repeated itself on many occasions during subsequent centuries when various kings debased their coinage.
>/
, \
•
Present-day Britain provides a striking modern instance of c
inflation and deflation running concurrently.. The new govern¬
ingly.
There
the
of
-•
was
deflationary
effort to curtail the volume of credit, o^atiiny
In view of the .-increase of
ment is
making
an
rate
orevent
its further expansion.
to
..
MSi
.
prices, there is bound to be a shortage of credit unless its amount
is allowed to adapt itself to the increased requirements due to
rearmament. Such a shortage will in due course. This is what the government is aiming at when adopting a policy of credit
restrictions. By means'of credit ; deflation it i»;ehdeaVbHn|^to^
reduce over-full employment.
The alternative methqd would be : i
a discriminatory reduction of credit facilities to industries produc¬
ing superfluous goods, or the adoption of physical restrictions of
their output.
Even the Socialist Government, with a declared r
policy favoring, controls, did not seem to have produced very im~.
pressive results with discriminatory credit control. The banks
'rising
.
and wages and to
prices
produce deflationary effects
tend
to
told
Mr.
Gaitskell that it
would be impracticable to fix officially
particular categories of credit.. That being so* *he'«0l'd**
method of "arming at an indiscriminate reduction' of
the limit of
fashioned
to.
policy of credit restrictions proves to be
effective its result will be a reduction of industrial activity. Fewer
new factories will be created and fewer existing factories will be "
the total of credits had to be resorted
In
far
so
the
as
new
expanded, owing to the difficulty of raising the funds required"
The shortage of credit will not prevent, however,
a
continued increase of prices due to the rising trend of wages.
Since the advept of the new government and the adoption-.of its
for the purpose.
proceeding at an
Substanital wages demands have been conceded
conceded. Higher wages to coal miners and
deflat'onary credit polity, cost inflation has been
accelerated pace.
about
are
or
to
be
railway employees are about to give the
vicious spiral of inflation
It seems that the new credit oolicy is unable
to prevent a further sharp increase in the cost of living.
That is,
it will be unable to do so if applied in moderation. The only pos¬
sible chance for checking the upward movement of the vicious
upward turns.
new
.ere
spiral would be through the administration of a sufficiently strong
dose of deflation to brirg over-full employment to an end.
The
of over-full employment
extent
ciently realized.
is
there
copper
between
full
employment
picture of ingenious "copper mining"!
precipitation plant
Yet in practice, and also In theory, the difference is
results in
fully as marked as that between full employment and large-scale
unemployment.
Full employment prevails when the number of
at
Butte, mine water containing
sulphate in solution is pumped from underground operations.
over
shredded, detinned
The iron frees the copper
over-full
and
a
As it flows
in Britain is not suffi¬
Indeed most people have not even realized that
difference
a
employment.
is
In this copper
mud-like
a
which has
a
from
precipitate
cans, a
copper
—
basic chemical reaction takes place.
sulphate in solution. This reaction
known
as
"cement copper"
—
75% copper content!
employable unemployed is approximately equal to the number of
vacancies to be filled. Unemployment prevails when the number
than the number of vacancies.
:of unemployed is larger
Thus, by an application of basic chemistry, Anaconda recovers about 750,000
Over-full
employment prevails when the number of vacancies is larger than
that of the unemployed.
According to official figures there were
in October nearly two vacancies for each unemployed. In reality
the
pounds of
it may be said
vacancies,
there must be at least
without exaggeration that
10 vacancies for each genuine unemployed. '
^Conceivably the proportion is as high as 20 to one.
So
are
over-full employment, they
state of
of unemployed
labor
raise
face
remains
wages,
of
classes.
the
ri~e
would have to proceed very far before
equilibrium between the number of vacancies and that
in a
strong
the cost
On the,,
affairs suits the interests of the working
as
in
current
by dozens of other
new
more
of copper-laden waterv
of 93% of the
copper
modernization and expansion program is,
developments in mining and metallurgy,
as
well
refining and fabricating operations. Thus is Anaconda continually
pioneering significant
new
frontiers in the field of metals.
well
as
employees,
The American Brats
AnacondA
of living wipes out from time to time the
benefits gained by wages
to adopt a
phase of Anaconda's
matched
bargaining position and continues to
costs of production and the cost of living.
Since, however, they are consumers as.
Even so,
:
ocean
is reached. Unless and until such a state is achieved
it this state of
in
plant, recently completed, handles
process recovers an average
precipitation
This
Even though credit restrictions reduce the extent of
restrictions.
a
.
bound to wipe out the deflationary effect of credit
new
day. .From this
water a
'which would otherwise wash away.
long as such a state of over-full employment prevails wages
demands
month! The
of mine
the
proportion is much higher. Allowing for the unemployables
figure of the unemployed, and for the large number of un¬
in the
registered
copper every
than 30,000 tons
increases.
it is politically
/...•■
" ;;;
\
.
•
-
impossible for the present government
policy that is liable to be denounced by its opponents
Andes
Chile
COPPER MINING COMPANY
Company
Anaconda Wire & Cable
International
■f
Company
Smelting and Refining Company
Copper Mining Company
Copper Company
■
"
-
Greene Cananea
partners,
a
limited
date
the
on
Exchange.
Messrs, Macauley and Codding¬
have protested against the misuse of his argument;
stances; outstanding amongst tnem is the in--, *'
of the decline of the Roman Empire. "V
precious metals and the outflow of gold to
Stock
Macauley,
acquire membership
the New York Stock
Were he alive he would undoubtedly have
stance
'fin payment
Francisco
York
C.
Mein,
phenomenon. Economic history provides many
i\
—
Street,
on
v
.For centuries the
Calif.
Pine
David C. Kuh, as general
reinterpreted his principles in the light of the changed situation
and he would
of
340
Exchange,
member
unemployment. The government is denounced for having reversed
thp policy advocated by Lord Keynes. Yet Lord Keynes must have
turned in his grave as a result of the misuse of his authority in
monetary trends.
Fay,
January 1 will
admit to partnership Hartley F.
Hutchings; Dave H. Coddington,
failed to make this distinction.
'
LONDON, Eng. — Until quite recently writers on economic
subjects were in the habit of over-simplifying their description ~
of
Stock
be the recognition
,.^v>meutr. Most .of those favoring a deflationary credit policy
produces
FRANCISCO,
&
members
:V;'--j,y • /
M
•
The first step in the right direction would
W*wef-the difference between full employment and over-full employf
unemployment. Distinguishes' between -"full
employment'' and "over«employmen^«
credit
SAN
Hooker
application of its policy the continuation of which would amount
new
19
Hooker & Fay Admit; Will Be NYSE Member
local
unemployment should.be created through the curtail¬
ment" of the output by some industrial firms for lack of credit
facilities, there is bound to be an outcry of indignation. Pressure
.would be brought to bear on the government to call a halt in the
By PAUL EINZIG
to
policy aiming at the return to large-scale unemployment. If
policy of credit restrictions should produce even partial results,
as a
Hflf A1H
Asserting present-day Britain provides striking instance of in¬
flation and deflation running concurrently, Dr. Einzig points
(2259)
■
/
.
Copper Company
f
partners
in
20
(2260)
The Commercial and Financial
Chronicle
For many
years,
the Stock Transfer Department of the Chase has served
hundreds of corporations as transfer
agent. It
corporations
as
well
as to
and stock brokers that it
national
can
has proved
to
these
security exchanges, investment dealers
be relied
upon to
furnish a consistently
outstanding service, freeing the companies from a constant burden
and
responsibility.
This
performance has been made possible through the
painstaking
a highly trained and versatile staff
qualified to
development of
handle all
phases of transfer work.
The fees for Chase stock transfer services and
for its other
agency
services are moderate and
usually much less than it would
a
corporation
Among the trust and
to maintain
agency
a
department
cost
do these jobs.
to
services offered by the Chase
the following,
are
Paying agent for principal .and Interest
Trustee of mortgage bonds, debentures and
notes
Registrar of bonds
and debentures
Transfer agerit of stock
Dividend
Registrar of stock
disbursing agent
Subscription
Depositary-exchange
agent under
recapitalizations and
mergers
Agent for trustees under voting trust
Agent under escrow agreements
THE
CHASE
agent
reorganizations,
agreements
NATIONAL
BANK
OF THE CITY OF NEW YORK
TRUST DEPARTMENT.
11 Broad
.
Street, New York 15, N.Y.
Member Federal Deposit Insurance
Coiporatton
\
...
Thursday, December 13, 1951
Volume 174- Number 5072
.
.
(2261)
.The Commercial and Financial Chronicle
Keep Public Informed
Investment Banking
on
If
By JOSEPH T. JOHNSON*
the duties that
Larry (Laurence Marks) is re¬
linquishing, I am mindful of the
In
assuming
all
We
rec¬
that
In
inaugural address
a
be
of
advocates investment bankers
new
the
worn
during the fortieth year of IBA
history to carry on in the tradi¬
tion of my predecessors in office.
Fortunately the President '■ of
'
Association
our
alone.
Presidents
Vice
Governors
of
tional
a
and
and
committees
our
resented
cabinet of
the
Board
a
together
Group Officers and the
individual member firms through¬
the
of the Association.
men
serve
with
The
as
Vice Presidents
already agreed to form a
working committee. Through our
composite judgment and combined
effort
we
hope to provide help¬
guidance for the coordination
the
of
■
:*
""Inaugural
the
40th
vestment
activities
various
Associat,v>n
and
address
Annual
Bankers
of
will seek
of
Mr.
our
to
ex-
Johnson
Convention
of
Association
the
of
at
In¬
Amer¬
as
Chairman of
Manual.
ica, Hollywood, Fla., Nov. 30, 1951.
represented
who now makes Phila¬ upon me carries with it ^certain
delphia his home, has long been grave responsibilities, particularly
active in IBA affairs. He served in days such as these that try
as
Chairman
of the
I say that not in
important men's souls.
erner,
standably has
in
tative
While
so
short
a
accomplished
seen
by
has
as
the
that
many
been
Education
particular
to take positive
corrective stepsi
Even those of you who share this
gressively and
persistent
.
conviction may not be willing
to;
follow me in what I am going to
propose.
...
lowed itself to be cast in the role
the
Mu¬
ship.
.
-
What
we
accomplish
at
working team.
'
\
p issues
of
our
Continued
times."
BOSTON
®
m
MILWAUKEE
.DETROIT
SPRINGFIELD
IvELAND
J&
EUREKA
NEW YORK
SACRAMENTO
CHICAGO
PITTSBURGH
J
PHILADELPHIA
\OAKLANO
INDIANAPOLIS
SAN FRANCISCO
•SAN JOSE
•
have .been
It is my belief that the
job of informing the public—the
public relations
aspect of our
"The banking community has
business—is but half, and the less
left it to others to propose broad
important half, of our problem.;
legislation programs
it has al¬ The
other half calls for leadership
by Committee under Norm's leader¬
MINNEAPOLIS
•
us
and
SPOKANE
I
of
of the need, our
SEATTLE
,
<
one of the last
of the essential groups in the fi¬
nancial community to move ag¬
excited
who ' heard
if,
York Federal Reserve Bank said:
committee
one
time
talk
beyond the circle of
bankers
him, Mr. Allan Sproul of the New
much
so
recent
commercial
In
only rarely
achieved by any
a
comment far
cabinet—Norm
have
in
In
second represen¬
a
industry
industry has been
under¬
the years that I have
active in this Association I
Smith.
been
the
Seaboard
today
aware
Legislation
Committee pessimism, but in realistic ap¬
and more recently has been one praisal.
of the moving spirits in establish¬
Bankers Must Have Positive
ing "Invest in America Week."
Approach to Present Problems
Eastern
our
business.
Federal
The
that
...
have
ful
is
Craigie, who distinguished
himself
really just a catalyst.
you
have elected to
me
South
conferred
honor you have
The
-r*.
es4
during the past
generation, or even during the last
ten or twenty years, we had stead¬
fastly pursued an intelligent and
comprehensive program of imforming the public
about our
responsibility of leadership in issues
Walter Schmidt, a Middle west:-
,*
duties
on
my
of the public.
'
of
opposition or resistance ' to
This responsibility
of leader-;
both change.
ship is infinitely more difficult,
nicipal Securities Committee in the national and
"A positive, affirmative ap¬
group
levels
for it implies that we ourselves
1950.
Under
his
chairmanship depends to a
very
considerable proach
is the plain duty of have been
educated; that we have
notable progress was made in ex¬
degree on the smooth functioning the banking community. (It should
asked ourselves such questions as
tending the recognition given to and the efforts of our staff mem¬
give) the public the idea that
special revenue obligations.
these: "What is the larger pur¬
bers in Washington and Chicago. banking stands for something be¬
George Davis represents the We are most fortunate in having sides its own special interests. pose of our industry? Where does
Far
West.
He
able and enthusiastic workers in I would expect banking to take
ignores distance
our industry stand with regard to;
and has an enviable record for Murr?^ Hanson, Bob Stevenson, its place with progressive indus¬
the economy as a whole?
What
attendance at Association meet¬
Dudley Smith, Erwin Boehmler, try and organized labor in trying
is the impact of our industry on
ings. George made that talk on
Gordon Calvert and their assis¬ to
influence
and
mold
public
salesmanship that has blossomed
the American people?
What are;
They make up a hard¬ opinion on the critical economic
out and reached full flower in a tants.
Walter
President is
The
He has been
vitalizing force in indoctrinat¬
The
country, really carry on
the work
rep¬
ing Group Officers and in stimu¬
lating Group activity.
with the
out
is
the cabinet by Ewing
Board of Governors.
competent na¬
who,
on
Boles, who deserves credit for the
inauguration last January of the
Group Chairmen's meeting as
part of the Winter Meeting of the
im¬
trust
industry welfare.
The Great Lakes region
stand
not
the
him with
in
posed
does
shares
He
be¬
All
quately demonstrated their ability
and
their zeal in working for
utmost
my
button
pf the incoming
Vice Presidents have already ade¬
and I will do
Joseph T. Johnson
President's
him.
fore
.
achieved
and those who have
said
during
teem
confronting their industry.
under Larry
criticism.
would stand in higher public
.
tend the notable progress
of
generally
frequent occa¬
almost thirty
years in our industry—and this
bears repeating as I assume my
of investment banking business and
assume
have
sions
Urges members of the Association take action to keep people
informed
same
I
a
criticism.
and importance
indictment
valid, I believe that we invests
bankers too are subject td
the
positive approach by bankers in facing public problems and meeting public
nature
Sproul's
ment
President of IBA, Mr. Johnson deplores lack of
as
Mr.
the commercial bankers
Incoming President, Investment Bankers Association of America
President, The Milwaukee Company, Milwaukee, Wis.
honor that has been accorded me.
ognize
21
FRESNO
LOUISVILLE
PASADENA
Blyth8.COm Inc.
b LOS ANGELES
PRIVATE WIRE
SAN
SYSTEM
DIEGO
Blyth[6. Co.. Inc.
Underwriters and
NATIONWIDE
fSrecurities
oi tsiD'
on
page
36
22
The Commercial and Financial Chronicle
<2262)
Thursday, December 13, 1951
...
Britain's Political and: Economic^Problems
In
of
session
this
the political situation
land and in particular of
; '
'
•
you
to
of Conservative Party.
election
eral
predicts
few
weeks ago. We
that
it
going
to
show
,
the
was
.
It
was
ion.
The
pre-
...
e
llr
a
n
♦
talked about
.
able
swing
over
Labor
party
party.
a
hmlnary f«re"
very consider-
of votes from the
The
were
to
a
tedious
the
Conservative
results,
therefore,
something of a disappoint-
6
:nerhan«;
the
^vgn "
ag
I think first I must try and give
explanation of why the
most
j
nerhans
change was so slight. The campaign played some part in it. The
against Mr. Churchill
-
imnortant
stan(j
cervp
as
before
and
you
visible
"I
Deputy Prime Minis¬
least
at
or
doing of,
be
at
present
large part of the
a
coordinating and leader^
work of the government,
f*
ship
third
The
member
is ' Mr."
ernment
I must ask you to believe that
nothing I am saying is to be ap-
Ri
of
the
hard
gov-
Justin
Butler. Though it was obvious beit was formed that Mr.
fore
Plied to any country other than Churchill would be number one
.
is
ber three-
He 1S
a
y°unger man
still in his
40's. One would have said of him
few words about the per* until quite recently that he
sonalities of the
Englishman
ordinary
*
^
,T
1 think you would like me to
say a
,
The
w
«
^ersonallties in New Government than the other two,
nrnof'
that it'can't be too bad
accusation
'ment.
is
and Mr. Eden number two, it was
not clear wnowas number three,
^ ^1CJ,
before. As far as the famous aus- *?r to° long. Therefore the
change be at tac ed to t e fact| that Mr.
terity is concerned, it is restricted thatwe havehad produces certain,. RichardJustin Butlerthe Chanto a few items, of which food is feelings, of pleasure.
-„V
cellor of f he Exchequer, is num-
these, 597 showed no change, only
the remaining 28 changed hands,
some
employment,
steady
is
That, Mr.
higher wages than he has ever niy own; but ceifainly m England
had before and a higher standard ye believe that its a bad thing
of living than he has ever had I°r any one party to stay in office
up
you
has
He
sit-'
business
do,
the
(1) rearmament 4o meet international
rate, not as far as the ordinary
working man is concerned.
change that the election
showed.
for which there
elsewhere.
central
'
through the night of elecchange m the
^on day listening to the results as
B r l t i s h
^hey came in. There are 625 seats
political opin¬ in the House of Commons and of
Crowther
to
chief inter¬
as
bear
must
unremitting
an
ter, which means that he will have
situation; and (2) restoring and maintaining balance in international payments.
ting
cast
drastic changes in British economic structure.. Sees
a
,
substantial
parallel
no
power
the convic¬
was
Geoffrey
no
country
week
a
Eden has undertaken.
Reveals personalities of leaders in British Cabinet, and
locking problems for Britain today:
election
that
tion
days
responsibility
eco¬
a
approached
in
Britain, particularly with reference to return to
charge of the foreign
any
He also
result
from the gen¬
just
leading English economic journal recounts current political and
nomic situation in Great
ex¬
can
pect
Editor of
in
man
policy of
seven
that
sequences
'
;
,
the
CROWTHER*
Editor, "The Economist," London
in Eng¬
the con-
on
GEOFFREY
By
it is
reports,
give you some report
job to
my
new
government,
Of course, there is one
personality
was a
whose intelligence was not
doubted at all but one wasn't sure
man
?
pretty content with his lot and the that dominates the picture. That ..whether he had-the firmness of
elsewhere,
the
forecast' of
the
recurrent crises that affect the na- is the old gentleman himself.
1; character
and- resolution
and
political arithmeticians was distional economy are, so far as he is
Mr
Churchill will be 77 in a moral courage necessary for high
appointing.
The
actual
direct
concerned, newspaper stuff that -few d
He is in quite remark- office.
turnover of votes from the Labor It's a monstrous charge and an,appears in the headlines and does able health and
spirit and shows.
1 think that judgment now has
to the Conservative Party was less
untrue charge and one he has re-. not affect the ordinary tenor of his an ast0nishing energy for an old to be modified. He started very
than half of 1%. The fact that the sented very deeply, but it does way.
;
gentleman of that age who has well, first of all by insisting that
position in the House of Com- bave this grain of —- I wouldn't
The Labor Government for six never attempted to deny himself within the Government he shall
;mons was just pushed over the say truth—but of similitude in years deliberately tried to shield the pleasures of this world.
n°t merely be Chancellor of the
watershed and that a microscopic "}at Mr. Churchill is a great solthe British people from the conseBut he has taken on quite a burExchequer in the old fashioned
Labor majority was turned into a dier. ™s &r<~at achievements are quences of these external crises, den. He is not
only Prime Minis- sense, as the accountant who takes
hardly larger Conservative ma- those of wartime and there is no and the high vote they got in the ter but also Minister of Defense. in revenue and pays out exendi-jority was simply and solely due doubt that it is in wartime that general election of last month was Translating this into American ture, but also shall be in the cop;to one circumstance, and that was "is gifts show to their best.
^eir reward for their success in terms, he has. taken, on the jobs *rol of .the economic policy of .the
As
has
been
known
to
happen
of being a "warmonger," by the
unanimous testimony of those who
were working in
the districts
played some part in the campaign,
1
that the Liberal Party,
the third
and.smallest, which at the pre-
i
don't think
cushioning the British electorate
against the realities of this cold
and cruel world; not, one may surmise> a policy that can possibly be
the President, of. the Secretary-Treasurer of Defense and
major explanation
quite a large part of the tasks of
put up over 400 candidates, that
ity 0f the vote. I think the major
the
majority ; leaders
of
both
•time put up 100 or so; and in
explanation is to be found
as, carried on indefinitely, but one Houses of Congress. That is quite
those 300 districts where there
hazarding a guess, it was to be *that they managed'to make work an assignment for a gentleman of
was this time no Liberal candidate
found in the equal stability of the for six years or so.
his age. It must remain a question
and the frustrated Liberal voters
vote in this country in the last
Well, in any case, the election as to how long he can stand the
myself that
issue
warmonger
this
really the.
of the stabil-
was
vious general election in 1950 had
0f
„
.
were compelled to choose between
the two major parties, they chose
*
Conservative in the proportion
of about 2 to 1. That almost
alone,
4Stenographic
Mr.
Crowther
vention
sociation
Nov.
27.
of
the
of
report of an address
at
the
40th
investment
America,
Annual
Bankers
Hollywood,
.
v
f
one
.
Situation of British Worker
v
,
political election,
in
that
old, served its major purpose of giving pace.
adage of A1 Smith's, that "No one us a new government and I think
The unchallenged second memever shoots Santa Claus."
the general reaction to that was- ber of the administration is Mr.
by
tonAs-
Fia.,
No doubt,
from here,
eco-
nomic affairs of Britain seem to be
those of constant crises and aus-
terity, but
land
1951.
seen
that
seen
is not
from inside Engso
at
all, at
any
of pleasure.
bas
as
been
If democracy is' Anthony Eden, and he also carries
defined,
a
system
of government by trial and
then
error,
frequent change of adminisis in itself a good thing,
tration
I realize that
to
a
I
am
getting close
delicate ground here.
heavy burden. He has taken
the job of Foreign Secretary
and it always seems to me that
to be in charge of the foreign affairs of a country involves details
a very
on
and
of
kind
is
that
not
other departments of
reflected
in
government.
...
.
.After all,
other government
offices, it is to S(>me degree, at any
rate, a matter of hard work for a
period, laying down policies and
then a relatively
Qnjct
of
sitting back while those policies
m
period
are
Underwriters and Distributors
In
executed.
.
is
outward
a
constant
stream of
inward
stl1* m
a considerable degree
for a politician, to put forward uqpopular measures if they are
necessary for the solvency of the
international economy.
These are the three mam members of the Government, though of
course, there are many other in-«
foresting personalities in it.
predicted
telegrams and
one
any
British
Changes in
Foreign Policy
I
want
briefly
very
^
to
will
you
in
see
British
Govern-
ment
policy as a result of this
cbange 0f government, first of all,
jn
forejgn policy, and then in
,n
kas
-
£oreign
aiways
that
in
of
hfe
.
made
th
that
.
o
he
come
it
quite
o
d relations with
st*t
,
.
asked
to
.
to
<
and
' be
the
on
page
★ NEW
Dayton
★
Portland, Me.
['■
65
Broadway, New York 6
At
,
x;
Chicago
-
'
*
■'
>
•
'
t
HARTFORD
j
BUFFALO
★ Lewiston, Me.
Easton, Pa.
Ilartford
Correspondents in
.r
★ Lojiisville
★ Sun Francisco
if I'rimlc If ire Otnncclions
CLEVELAND
Netr York Stock Exchange
Exchange
PHILADELPHIA
■; ;
★ Boston
★
A Detroit
Telephone: HAnover 2-4800
BOSTON
* Baltimore
★ Lexington, Ky.
Philadelphia
★
Corporation
Dealers
A CINCINNATI
YORK
★
Union Securities
•
CORPORATE AND MUNICIPAL SECURITIES
'♦A*
SYRACUSE
Memberships
New York Curb Exchange
,l*hil)ulcli>hiii~ tUihimore. >aock Exchange
^tiduest Stock Exchange
fact
o11„„,orl
allowed
^
to
Washington in January
Continued
Brokers
clear
vjew^
W. E. HUTTON & CO.
•
j
Churehill
the ve,.y key.
foreign policy for Great
Unite(J
...
Mr
ESTABLISHED 1886
Underwriters
eco-
nomic policy
;
Investment Securities
to
try
sketch for you some of the changes
Britain lies jn
and
of which may
carry
in it the seeds of a most
important decision of policy and
messages,
111
degree one might have wished, but
stone
foreign policies that is not so
There
.
willing, perhaps not m the fullest
unremitting responsibility
an
a
Government He fougjt that fight t
and won it. Secondly, he:has already demonstrated that .he^ is
(Jiicngn Board of Trade
Cincinnati Stock Exchange
''1:
66
Volume
Number 5072
174
,
The Commercial and Financial Chronicle
.
.
(2263)
IBA Activities
Looking through
old volume
an
''Proposal
cartoon captioned
mode."
It
depicted
la
a
front of
.
.
window
in
suit
against IBA, and
wed¬
huge
of
this
equally
experience,
certain
that
and
this
i
is
reflected
in their
teaching.
meetings of national or¬
ganizations in which we partici¬
Association's activities during past 12 months, retiring
on
to success
of efforts toward
obtaining
pated were three meetings of the
Conference of National Organiza¬
coopera¬
tions
tion of all segments of financial
community on legislation and other matters
of mutual interest. Expresses
pleasure at Government's decision to dismiss its
which reposed
a
feel
.
President of IBA calls attention
con-
a
result
Retiring President of Investment Bankers Association of America, and
President of Laurence M. Marks & Co., New York City
^
Reporting briefly
f ectioner's
•
v
Other
and
,
lady, fashion?.ably attired,;
"standing
in
4
*
^
young gen-
a
tleman
During Past Year
By LAURENCE M. MARKS*
of,"Puncn" recently, I came upon
a
23
pays
tribute
to work of
held
March
in
and
Atlantic
July
and
in
City in
Chicago*
in. November.
Joe
organization's permanent staff.
his
also
ding cake. ^ He
Johnson
Public
and
members
Education
represented
at
us
off
Committee
several
meetings of the "Invest in Amer¬
We have had over a dozen joint
City r on
ica" program in
Philadelphia, m
towards the address by the
March
6
and
ending with two meetings with these organizations which
Walter Schmidt is one off
cake with his1 Pace, Secretary of the Army, and meetings of the Canadian
Group on problems that affect all of us the
leaders.
'
several
most ; -interesting in Toronto and Montreal on Nov.
cane
and say- by
and to me this makes an awful lot
"was-
i
n
g
pointing-
"How forums.
,
it
about,
Laurence
thing?"
marks
in.
my
year
of the IBA you are
question.
same
report
briefly
as
months.
asking
the
me
possible
'••
on
the past
as
during
12
/.•;
'
First of
all, I am sure you are as
pleased as I am that the Govern¬
ment
its
fit
saw
suit
Nov. 19 to dismiss
on
against
sorry
it did not
wise
with
fendant
the
respect
firms.
IBA.
;
I
am
fit to do like¬
see
the
to
The
17
action
de¬
how¬
will obviously save the Asso¬
ciation
and
its staff much time
ever
and expense, which in turn can be
put
to
many
good
advantage on the
constructive problems with
which
we
Your
have to deal.
Board
of
Governors
has
first
gathering
Mid-Winter
"ern
attendance
an
14
the
was
Meeting held in Chi¬
was
Group- in
and
Kansas
•
15, Murray Hanson and I of
enthusiast have attended meetings of every some
meeting./; t / regional Group of the Association. hang
joint
a
We
meeting
have .thus
account
of
the
heard
first-hand
a
activities
of
each
from
two
Denver, which
is
afternoon
cooperation
each
of
these
gatherings
we
At
during
tration
conference with the President's
Council of Economic Advisers.
and
had
at
I
can
assure
pleasant
practically all of the Group
in
attendance.
They
thus
were
of
*
the
what
informed
their
Group
of
the
for
Association
the
year,
in
each
predecessors
had
done
plans
last
year,
the
projected activities of all national
committees,
and
they were then
better enabled to plan their ac¬
tivities for the year.
It has defi¬
The next Board
meeting
was
the
Spring
held
in
White
Meeting
Sulphur Springs for four days in
the middle of May.
^Remarks
of
Conver/ion
of
Association
of
Nov.
26,
This meeting
Marks
Mr.
the
at
Investment
America,
t
am
I
Annual
Bankers
Hollywood,
Fla.,
and
am
his
glad
adminis¬ security
to
you
but
our
it
had
was
business.;
report met with
a
most
This
course
enthusiastic
Firms.
not
'•
of
have
of
a
our
and
much
I
am
sure
more
financial
these
men
realistic picture
community
as
own
industry.
course
success.
students.-
We
We
was
an
had
had
outstanding
hoped
an
One
of
organizations
lack
continuity
is
due
Continued
a
that
to
on
inter¬
vj"''""-
real
sure
work
of
the
IBA,
as
you
directly in these
from
all
tivities
of
mittees
their
You
have
on
Hallgarten & Co.
Established 1850
reports
the
respective
their
and
ments.
ful
sessions
the chairmen
will
ac¬
New York
com¬
accomplish¬
that
see
all
of
been active and force-
in
fostering constructive de¬
velopment in our common interest
:
Chicago
London
in
tneir respective fields.
Regarding
the
work
of
our
eighteen Groups, and their local
committees, all of them have func¬
tioned
.
splendidly.
meeting
of
Starting with
the
Southwest-
State
United States Government
State, Municipal
fcV:-/-
and
and
Corporate Securities
F.H.A. Mortgages
wv'
.
Municipal Bonds
Mutual Funds
Municipal Bond Department
TELETYPE NY 1-708
v
■
y
Blair, Rollins 6- Co.
-i
..
THE NATIONAL CITY BANK OF NEW YORK
TvronpnoATF.n
.
44
Telephone:
WALL STREET,
DIgby 4-4000
NEW YORK 5, N. Y.
Teletype:'. NY
-
1-1109
Head Office:
5 5 Wall
Private IF ire Connections With
•>
•.
67
Street, New York
in
branches
Greater New York
»-.a
•
Boston
-Philadelphia
Los Angeles
Detroit
Chicago
San Francisco
St. Louis
MIMIIt
FEDERAL
DEPOSIT
INSURANCE
90?
the criticisms of volun¬
tary
very/much
common
for
attendance
of 106.
participate in this
course
our
The
re¬
Regarding the work of the na¬
tional committees, you will hear
a
1951.
ously,
committee chairmen report on the
,
that during the past year we have sponse and
will, of course, be con¬
continued this tvpe of rnnnprative tinued next
year.
Since its incep¬
team-work with the NASD, the tion we have had 34
professors
New York Stock Exchange, the and 25 students
all realize, is car¬
ried on first, by the national com- Z
mittees and secondly by the com¬
mittees of the eighteen
regional.
Groups.
them
nitely paid dividends.
'
The
the
Chairmen
to report that in my
Seminar
propose, 'as I said previ¬
to have all the national
Importance of Regional Groups
innovation,
an
that
together we'll hang indi¬
vidually."
I am glad to be able
School
While I
■
ests.
was the
suggestion of
Ewing Boles, Chairman of the
Group Chairmen's Committee, we
fact
Wharton
don't
.
A further feature of this meet¬
ing, and
we
.
worthwhile in
Meetings Productive
"If
ago,
.
only
record.
a
years
•
the last weekend in January. excellent opportunities to ex¬
The value of holding this meeting change points of view and discuss
the re¬
in Chicago, with its central loca¬ common problems with
New York
Curb
Exchange and
tion, was proven by the fact that sponsible public official dealing the
Association of Stock Exchange
most directly with our
we had five men from the Coast
business,4
Something of
175
view, all seg¬ activities of their respective com¬
of the Conference and Executive
Group,- and although their inter¬ ments of the industry are hanging,
mittees, I would like to comment
Committees held
in
Washington,ests and activities vary widely, together,
; on the Seminar held at the Whar¬
Oct. 29 and 30, which was also one can't
help but get the impres¬
ton School - of the
attended
University off
by a number
ofthe - sion that collectively
Educational Program Successful
they have
Pennsylvania by the Education
chairmen of the national commit-: done a
grand job for the industry.
As an example, we have con¬ Committee under the able leader¬
tees,
t
'!■ C-'-: t I think this is obviously due in tinued the
work of the joint edu¬ ship of "Norm" Smith.
This
:
meeting
consisted
of
a
large part to the ability and inter¬
As
cation program with these organ¬
you
know, the American
Monday
morning
meeting -and est of piir Group chairmen.
izations I have just mentioned and Bankers Association has held four
lunch with top Treasury
officials,
As you will
remember, the 1949 last summer the committee had a a number of years a two weeks*
an
afternoon
meeting witlr> the convention
(over which "Armie" most
successful
three
weeks' courseu at
Rutgers
Federal Reserve, followed by a
University.
presided) was keynoted by a call course in New
York,^ As most of This year our Education Commit¬
joint meeting of the: Executive for
unity of all segments of the you
tee for, the first time held a one
and Conference Committees.
know, this program consists
financial community on such mat¬ of
bringing
certain
That evening we had dinner with
professors week's refresher course at Penn¬
ters
as
education,
from ^universities
regulation,
all
combination
of
over
the sylvania—a
the
all five of the Securities'and Ex¬
legislation, and like matters where country, active in the teaching of theoretical contributed by various
change Commissioners. ,•* fcv - % v<% it is desirable to present a united
from
the
economics .and finance, and cer¬ professors
Wharton
On Tuesday morning we had a
front, Albert Armitage made great tain;
and
students,
to
elsewhere, and the
spend
three School
meeting
and
luncheon
at: the
progress in effecting this sort of weeks in the
practical contributed by members
World Bank and in the
operating end of the
cago
and
Benjamin Franklin said
sense.
most
a
worthwhile
mentioning
a
met twice.
Our
excellent
Honorable Frank
an
at / Another meeting which is worth
President
So I should like to
activities
our
as
by>
We. had
450 and
over
tic and
v
think
I
V
;
of
end
of
old
-
the
highlighted
was
CORPORATION
they
steady
page
66
-
The Commercial and Financial Chronicle
(3" (2264) 1
Thursday, December 13, 1851
...
Unity in the Securities Industry
"
I
happy to be here and to
am
President, The New York Stock Exchange
The
Recently installed NYSE executive upholds honesty and integrity of securities
York
New
Stock
with
in
you
industry set
important
our
ment
job of representing the
Securities
f
o
it
course,
be
would
quite
•
pre-
amone
Presidents
nnvthini* at this time
iSm+ht
T
Brnfpccinn
th^
dn
Qtnpb-
Fvphanup
nver
twn
more
than
anvthintr
the
have
terms
haven't
uttie
„
iwt
the
were
?J fL r^nst General
i?
nrnhiems
snlntions
the
ef
anv
T
are
tmtl thtak.I am getting an idea of
«®me
a man
main-
taming his ideals and his integrity,
could
have
those
ideals
ceived-
expectation
an
would
be
11 also seemed to
vitally sensitive
that in this group
JtfrharWM
r-iiritv
that
me
is
ihe-counter
nf
markets—the
.
to
business
this
chose
unrelated
our
from
a
field "be-
cause it seemed to me that the
Securities industry offered a real
opportunity to participate in a
service
vital
service
which
to
this
country,
needs
Is
^
going
"f
to
be
a
per-
also
to
Democracy
I
tion
Uon
of
me and said,
1
they doing?" I said,
cheering for you. Go
are
"They
are
and take
up
They
a
bow."
walked
that
me
completely
reS?+-
-°,
Fla.,
■
new
other
vista of
dav
?1u ? A.
^ tbe
f P
with
o
curities industry may play in this
,,ght We are having, this world-
whin
the
' twf
Sfnmen the engineer
'--'train
dispatcher -h"
dispatcher, who
through the barrier and
the
free
Europe
ago, paid
months
a
a
the
and
crashed
came
ml
Do
visitors'
on
the plat-
Donald vesterdav
fui
Archives Building in
is
listed
company
couple
of
visit to the
,
,
.
,
has recently
Stock
Ex¬
and
they
wanted- to
huv stock*'" Thev wanted to know
ho^ mueh It To^
and
The
in
past
Well, it
we
showed
was
making,
own
was
engaged in
we
once
others,
it
the time
was very
response
in
tion. We
are
inspiration to
an
a
thr
f
Capital Issues
Government
now
we
faTth
in what
what
and
our
our
eco-
a
story
was
very
the
and
I
customer
think
don't
Let's
test."
as
the fact that
need to mention
no
we are
all dependent
ing been in the manufacturing
world, I tend to think at this point
terms
of
industrial
relation-
Investment
sion
as
being
one
Banking profeswhich manufac-
securities
and
then
dis-
primary
mar-
ket.
RAILROADS
•
THE CANADIAN GOVERNMENT
MUNICIPALITIES
was
fair,
some
^ wasn't, but the point is, we
caught it and we caught it in the
0f
+
in Securities"
"Truth
was
of drinks.
They
him
gave
are
Available
BANKS
INDIVIDUALS
Era of "Punitive Attack"
Well,
maybe
it doesn't
it
is
along
Over
because
to me the
seem
has
There
I
that
general
impression
are
a
any¬
number
of
For example, we have a very able,
intelligent and cooperative administration of the Securities laws
made
great
for exam-
headway in
impressing the Congress with the
fact that the capital gains tax
should not be increased. It
creased
little bit but it
a
dicative
of
Congress in
increase
and
exchanges
provide for the
the
our
interest
in-
was
was
in-
of
the
problem that the
so
slight.
Twenty
they might have slapped
big tax on us just because they
was
distribution
of
mar-
a
come
thought it
those
secse-
curities. In other words, we are all
and the
reverse
is also true,
Now, let's review for a minute
just where we stand at the present
time, just what the recent past
history has been, in the hopes that
it may point where we should go
Port, Sherry and they
the cordials.
to
And
was
good for
our
,the market. Government attorhbys
have found that in antitrust suits
no
finally, in desperation, the
was giving him the test
him a glass of water. He
who
gave
the
water, put it .in his
mouth, swished it around and a
puzzled look
came on
his face. He
said,
I
know
it
"Well,
is, but I'm
it."
v.
longer
possible
to
don't
sure
you'll
•
•
say
anything against big business and
have a judge take it without
question. The Investment Bankers
Association
itself
has recently
to know what
I
take
it
all
Securities
BOSTON
broadening of the base of
PHILADELPHIA
.
208
1416
So. La Salle
St., Chicago 4
Chestnut St., Philadelphia 2
'
■■
y
owner¬
to do it not only for ourselves
vand not only to provide the serv¬
ice
to
our
customers, but be¬
doing, we defend our
private enterprise system. In other
by
cause
so
words, ownership speaks
much
louder than
ever
oratory. If
so
we
can get most of the
people in this
country owning securities and in¬
terested
have
of
in
stock,
then
we
will
accomplished the objectives
the
Socialist
Government
ownership state without having to
have
the
government
businesses.
The
the
run
of
the
country will own the businesses
themselves and there will be no
demand
for
people
government
owner¬
ship.
So
sent
I
I
take
are
united
a
came
that
it
that
united and
down
in
we
front.
thSriTUwere
that
area,
must
pre¬
Now
here, I
was
before
warned
irrecon¬
many
cilable groups on Wall Street, that
it was impossible to get the indus¬
try
together.
lieve
that
flicting
Again,
is true.
influences
4
•
don't
that
Continued,
75 Federal
314 North
I
The only
Street, New York 5
Foreign Exchange
CHICAGO
over-
ship in this country. We want to
bring in new owners and we want
Commercial & Travelers Letters of Credit
Repreaantativeu in other Citiea
the
the-counter market, are all agreed
that
what
we
stand
for
is
a
Street, New York 5, N. Y.
•
the In¬
us,
exchange's
Commercial Paper
Incorporated
going to sell.
of
Banking profession, the
DEALERS
Harriman Ripley & Co.
Securities 7
we are
that
vestment
v
30 Pine
sell
If we are going to influence
people and win friends, we have
to
CORPORATIONS
what
never
.
Broaden Base of
we
is
all those.
took
souls,
Legislation all over the country
[s permitting common; stock investments. The public is entering
it
went
even
He had
Ownership
have come into it so recently, but
we
Then they gave him some
wine to sample. He got them all,
*
dustry was punitively attacked. It
pie,
bon."
Investment Securities
63 Wall
whiskey,
some
FOREIGN GOVERNMENTS
•
bartender
they began to give him
samples of all the different kinds
adopted
Plac*
years ago
Then the over-the-counter
us
MUNICIPALITIES
at-
were
discredited,
and interdependent, one with the in Washington.
other. Most of my experience havin this last Congress,
together. You can't exist without
Our Facilities
you say you
the
So
said,
know
you
tender and
man
of punitive
I assume also that in this group
today I have
ondary
INSTITUTIONS
we have
probably
agreed. They blindfolded the bar¬
tightly
things which indicate that the era
attack for us is over.
Interdependent
ket and the stock
UTILITIES
regula-
very
were
Some of the attack
public
All Industry Branches
tributes them in the
CORPORATIONS
some
more.
and Dealers in the Securities of
•
bad and found
government
work where, if
nomic system stands for.
tures
PROVINCES
perhaps our
our
tacked and
get the story across to
has that effect of re-
the
STATES
of it
some
fault. The public reaction at
msPlration to me to know- that I attack the Wall Street crowd.
them
rather dif-
Underwriters and Distributors
PUBLIC
the
if
You
was
the,ir reaction and it was an was popular for demagogues to
see
in
INDUSTRIAL
industry
our
"Well, you can buy it for $15.00 or ;• The interest rate on bonds went
'2°
.? company you are from 6% to 2</2% and such is the
working for."
,
measure of the change. Our in-
ships. In other words, I think of
of
savs
do.
marked by difficulties. About 20
saX"i»
l
going to work in
^
'w
g?st"res
a"f th™ui?h interpreters but as
they stood out there and looked
Nov.
which
that the past is merely prologue.
,
™untry by ,a affirming their
the
on
are
,
have been hired
men
to telk *° them because
29, 1951.
Washington,
statement
a
the
on
wares,
sell.
much about this
as
in that delieht-
story told about how,
bar
"Well,
Mc-
Harry
wy T
TliTo
n£
.LdUB"fc"
know, "Can anybody buy stock? neck. The rule of caveat emptor
Can people who aren't citizens was done away with and the rule
factory. They were brought to
the Exchange by the officers of the
the
should
we
In
program.
about the
conceited.
He had been mixing drinks for
a
long time, and he thought he
knew all about it. He was brag¬
ging one night to a customer at
the
remember
you
our
to
bartender who
get there.
.
am
,
These two
Immediately
into
Stock Exchange,
around. At first it
Hollywood,
anything
remember
in the future and how
whole indus¬
our
forward together in
relations
,
to sell
now
:
there
the
to
concluded, "And
we come here, and this is.the sort
of reception we get.''
the
?phic*uep£nlh°aa tal.krby Mr'
the Investment Bankers A^odaAmerica,
a
change. They
'
of
got
been
Securities industry was an honest,
turned ^
x
to
men
from us," and he
Industry's Contribution to
,
seemed
then
form and waved their hands; the
to'be* ma?ntainec? 3nd br0tUght t0'h>S
r°
5 corporation Which
of maintaining , a free flow of
iguity capital, which is our-pritnary responsibili.y.
It
and
public
.
right, therefore, it
for
other words, we have the chance
protection for
more
move
a
move¬
^aMs a story we have to tell ^^hey^^mn^uMbey.^ regulatedof
industry
trying to take everything
Many
leaders
formed very ably. We all know of
system
floor
try does provide a vital service, stand it. The Communists 'have
1 don't believe the public has told us that Wall Street > and
anV idea °f the high code of these people here in this room in
ethics and the self regulation that the
Stock
Exchange
are
our
S°es on in our business. I think enemies, that they don't like us at
here,
imnor-
-
......
1
The
ml
is
to me,
After having been in the indus- cheering grew even greater. Then years ago, we really had a tough some rye, and he identified it
try for two months, I have been as we walked off,, one of them time. The Securities industry was right away. They gave him Scotch
reassured on these,- beliefs. In turned to me and through the in- caught in this cataclysm of eco- and he guessed that. They gave
other words, I am sure our indus- terpreter said, '"I don't under- nomic despair, not of our own him Bourbon and he said, "Bour¬
Se-vinsJration tiJe
over- i
P V?
the
teue of these mst.tut.ons
completely
the
\ on
"What
in this job
area
foreifin <lsms*
of the
or
nr
to get
T
savers.
?re !«rying,»to do to combat the rostrum, stood there
I don't need to belabor with you
the importance of the Investment
Banking profession
as
away
of the problems..
assume
down
re-
'
I
well
as
walked away, the crowd clapped
and cheered.
that
fairly
this Securities business of ours
iunior
FvnhanJ
nnv
where the ethics
one,
high and where
a
enmpHn^he Securities'business
in
jy conducted
?n<Lcertainl?
-o
*
the
spread ownership of equities
sumptuous
Funston
mnrh
united front to work out their differences and join in
individual
were
Now
Keith
Sees improved
all segments of the
urges
to
country.
G.
to
up a
In-
the
public of this
dustry
economic system.
our
public attitude toward securities business, and
-
time
seems
try to
industry, and stresses its importance in
Ex-
f change can
join hands
"
been acquitted from the antitrust
suit, which is all to the good.
By G. KEITH FUNSTON*
people of the Investment
Banking profession and to try to
find out some way in which the
meet the
"' -Mi
Street, Bostoh
Broadway, St. Louis 2
on
I
be¬
con¬
have
page
43
Number 5072
Volume 174
.
.
In
this
Industrial
of past
Se¬
Com¬
curities
by Chapin S.
Newhard, of
Newhard,
Cook & Co.,
St. Louis, Mo.,
-
-
,
thirty
will be
mittee, headed
,
it
•
a
.
,
years
larger and
+uACO
and concludes, despite obstructions and difficulties, there
profitable underwriting business during years ahead.
more
vparc'that the
during those years that the
was
New Deal introduced its
program
through
reauired
requnea
to
10
expand
exy
of
*
itself.
progressively tion jumped to $23 063
flowed by_,$2629
1947,
$29,615^mulio
eieht months of 1951 the average
eight
was
mo:ntns^ot iuoji ^ ave ag
$488,31U,UUU per monin.
:
too
,
_
$16,961 million in 1949, and $28,-
Thus
Much
Cash;
to
over-all as-
25
noted that net private
a
however,
ration
for
is
an
twenty-five
a
a
much higher current
normal
requirement
industrial
concern and if
the company does not have cash
the equivalent at least equal
current- liabilities, eyebrows
to
t
be
^
concerning
financial strength,
asked
questions
a
corporation's
This strong cash position, how*
will
m*\konmA959.
pd canital running some three times greater
s^tamed capital running sopae inree^im sg ^
at\.^annual r
the other hand corp0rate seestablished6 in 19 2 9 corporate curity flotations for new capital
esiaonsnea m 1V4V, ^ v
some
years ago, and if cash was 25%
of current liabilities the
company
was
in a secure position.
Now,
309
negligible amount, while it
In spite of this
increased the relative wages of the formation
the
satisfactory
In per month in 1950. During the first
Forma-
socialistic 1946, Net Private Capital Forma
higher income taxes and the foswidened the teririg of labor and farm demands.
scope of its This process reduced the accumufield and ex- lation of savings by the wealthy
amined
Chairmanship of Chapin S.
Newhard, of Newhard, Cook & Co., St. Louis, reviews investment market
Fla., the
at Hollywood,
meeting
the
Association,
Bankers
Investment
Industrial Securities Committee of IBA, under
the
to
report
year's
(2265)
Underwriting in Years Ahead
Sees More
Fortieth Annual Convention of
Chronicle
The Commercial and Financial
.
As
not
last
indefinitely.
capital formation
^
^
progresses
^ ^ and
accumu_
fated cash is gradually used to
finance a part of this expansion,
1Qdl_iQ4e;__ThP
r^ictriWinn
security flotations for new capital are running at only 60% of the those cash positions, which are
rfv!tmSnfn :he W'wwiutucsuuuuiuigiucwwj have run at a substantially lower 1929 figure. The difference is now fortifying. corporations exthe of wealth begun during the 1930 s have run at a
llgni
Ol
U«5
-fiver
exoeri^nce of was accelerated during the first monthiy average volume during being drawn from accumulated tremely well, will be eroded and
laborer and the farmer.
pects of securities
under-
_
_
,
...
,rmc
Chapin S. Newhard
structions, such as
ments
and
from
p
o
P
..
tated
-
fuU
establfshed
au
quotatio„s for new capital averd $719953000 per month as
ports on
retained
earnings.
$2P97,237,000
savings from the wealthy class to
farmer and laborer,
There-
month
in
per strong financial position in the
$402,587,000 per late 1920's would now be regarded
1947, $522,002,000 per as unusually weak by comparison,
month
in
1948,
with
"
f0re
much
a
proportion
larger
.,
.
J^e investment analyst will again
become content with cash ratios
of less than one to one. This
balance sheets themselves; what of course, presupposes that capital
was formerly regarded to be a formation will
continue at its
in
other re- of
the
of
through
month
of the report follows:
some
cash
that Other evidences of this strong cash
security position of corporations are the
During
corporate
the money supply is owned
securities of specific in- by the latter two groups,
Unlike
in 1929
liquid
of
accumulation
annual
ing xne years aneaa.
text
these postwar years than the rate
and provlded
This change,
important de-
xunus,
Pusmess
The
most
the
of
one
.
larger and more Pro1"
a
high taxeg
employment
cargo.■•tejmancj* ^PJ^^n^econmmc hfctory of America, has shifted the
surplus
pect for
despite
that,
conclusion
the
half of the 1940 s wjien the prosecution of World War" nec^sl:
three
last
the
Th#» mmmUtee came to
The Oommittee cam
*
„
decades.
Present pace.
What's Your
1946,
$430,052,000 per A current ratio of about two to our
.
Guess?
Some observers may doubt that
economy
MnnnBnftftn
34
month m 1949> and $380,878,000 one was regarded as being quite
of the Indus1946-1950 — Emerging from
Committee seems worid \yar
industry was conto "cover the waterfront.' There- fronted
with
the problem of
fore it seems appropriate to exam- serving the accumulated consumer
ine some of the overall aspects of
demand built up during the war
the
dustries
scope
Securities
trial
with reference to
general economic framework
currently exists.
As back-
underwriting,
and 0£
the
demand
that
accommoaating the further
based
upon
the
huge
m0ney supply with an increasing
ground let us trace a brief sketch veiocity of turnover. This necesthe securities markets and fi- sitated a hugh capital expansion
nancmg during the past 30 years.
_the first since the 1920>s not
of
of
Reminder
A
Thirtv
financed by Government. Much
of thls capital formation could be
Past
e
4u
•
^
tnoo
inq.
the
Years
Turning the pages of
1920-1328
history back 30 years we read of
the extended postwar period fol-
financed through retained earnjngg as pojnted out later in this
but the capital markets
were
caued upon t0 absorb the
repor^
lowing World War Imaiked
was
by
That
balance. However, the absorption
growth of the qUajities of the equity market
world kag ^en severely squeezed
a
United States as a nation of
power. Not only was the scope of
American power broadened on the
political
plane,
but its might as
the
through
redistribuprevious
That is to say, the
gradual
tion of weaith during the
fjHeen years.
nniinrpf|S a fn apmmn^Lmt" laboring man and the farmer
tSS
ra^ifairSl
were not acquainted with nor did
il Lfinp ss Ip totsl cost cox/in
which we define lc the Stli let they have any urge to place their
in
bh
SLCP°rrrl^SlU,S/ntd HE
ducers
dui able equipment, plus
stocks, and
the^an o/w'eaufhas
j
capital to invest,
business inventories,
A d y
t
k offerines in.
less depreciation charges and ford ^ 1946 t
fi
eign investment—progressed at a ~
.ra1 PXDanqion +hev were not
lively pace and the investing pub- reLilv absorbed—dealer inven-
changes
in
th|
tiese^ssuedStogflVance^ifmoLam —in
vLif
fact
toward
iqL'c
rf
reason
tories of unsold securities built
up"~the market experienced a
common
securities! pLtiaSrly
equitlest
latter
not regain an important follow-
the
became so great
disregarded.
Lr
feit
came
of'22 years
the intemperance of specula-
tion
revealed and the invest-
was
ing public was forcefully awakened in a shambles of its folly.
Thus began the
°
Tmtic/"nnfifJ
the bust! Dur-
that fateful fall
ago
in6 until
Meanwhile the Stock Exchange
was
1929—Then
ing
sharp break that fall—and did
unwinding process
j
^
T
rpdi^nfhntion of
4„n«ii,ratPd'advSJfic
campaign and a prograL of
a.
^ow had the money to £ot It
J
t!
now
invest.
pp!fnnrnv
Dealers in
United States Government Securities
nf
State and Municipal Bonds
„
fh
um'recedent^d nrosDerU^
to Um took those three
£rom 1946
jM^tserhmsdenressionofmod- to 1949' for that Program to reveal
econornic idftorv
its effectiveness, but during the
em
^
,
.
.
1930-1940—The boistenous par-
Past two years the demand which
formerly existed only in potentieipation in the security financing tiai form has now been partially
during the 1920s was succeeded converted into an active demand
by a lethargy bordering upon ab- for common equities and this has
horrence.
become
All securities seemed to been
curse
a
for
awhile
capital formation virtually ceased
to exist. It declined to a negative
figure in the early 1930s when
capital formation amounted to less
than depreciation charges and only
recovered
slightly in 1937 and
again in 1939.
Capital financing
during these years also declined
sharply from an average monthly
top of $719,953,000 of new capital
in
1929, to a monthly
a
factor
in
the
upward
and trend in stock prices,
of
Capital Expansion in Post-War
Years
just
private
Capital Funds $378,000,000
to the United States'
into the war during the
prior
entry
140 Broadway,
year
a
,
pany
of New York
capital formation
reached a peak of $8,629 million
^
1929, which was historically
high up to that time. This figure
was
not again duplicated
until
Net
1941, when the total reached
ovef $199'909'009
$11,307 million. However, during
1936 and 1937,s t,be best years of the active participation in the war
that decade.
f
1■
by the United States private capiDuring those lethargic years, tal formation was supplanted by
from the security dealer's point of government capital formation and
view, a vast change was occurring it was not until the conclusion
in the economy of this country, of the war
that industry was
average
Guaranty Trust Cor
Fifth Ave. at 44th St.
New York 15
Madison Ave. at
60th St.
Rockefeller Plaza at 50th St.
New York 20
New York 21
New York 36
Member Federal
Deposit Insurance
Corporation
i
26
The Commercial and Financial Chronicle
(2266)
Thursday, December 13, 1951
...
In Attendance at 1BA Convention
Boston
Inc.,
jBlyth & Co.,
United
Orleans
Puerto
ATWILL,
ACIIESON, A. GLEN*
Uache & Co., New York City
AUCHINCLOSS, Jr., REGINALD L.
Courts & Co., New York
ALDEN,
WILLIAM O.
Jr.,
O'Neal-Alden
&
Louisville
;
13.
Ray
Inc.,
C.
New York City
Stein
A. C.
York
AMES,
Barr
Incorporated, Boston
BOEHMLES,
S.*
New York
W.
Bartow
Group,
FRANCIS
D.
BOLGER,
Co., New. York
Leeds
Incorporated,
•v
Nashville
ARMSTRONG,
Boston
&
CROSS,
C.
New York
The
'
FRANK
Wachob-Bender
Mrs.
the
ELWOOD
&
Co.,
BRADFORD,
J.
'
;
.
Lynch,
Pierce,
Montreal
BRAJHJEY,
Paul
Corporation
H.
BRADLEY,
S.
&
The
"
&
P.
M.
-
GEORGE
Jr.,
WHITNEY*
BRAUN,
F. S.
us
s
San
DALEY,
Investment Bonds and Stocks
-
ROBERT
John
BROWN,
J.
Boettcher
BROWNE,
Bank
San
&
S
Cleveland
K.
The
Jr.,
Bank,
T.
S.
&
New
Dealer,
Cleveland
COLE,
Calvin
and
Development Bonds
.
-
,
r
>
Railroad
Public Utility
•
Inc.,
Co.,
;
&
Co.
Incorporated,
v.'y,
Canadian Bonds
*
DAY, JAMES
DEAN.
Incorporated,
De
E.
Distributor
•
*
HOWARD
Boston
Philadelphia
Pittsburgh
Cleveland
Private Wires to all
San
..V/'i'. "
officii
New York
Uphain & Co.,
Bankers
'
BARY, MARQUETTE
Smithers & Co., New York
DECKER,
Association, Chicago
GEORGE
PAUL*
O.
American
-
National
Bank <fc Trust Co.
Chicago, Chicago
of
K.*
Hutton
&
Pomeroy,
Inc.,
de
WALTER
COLLINS,
Julien
Association
Co.,-New York
DEMPSEY, L.. WALTER* ,
.<■
B. J. Van Ingen & Co. Inc., New York
.
dc
»
I.*
of
& Son,
Securities
JULIEN
Collins
COLYEK,
Central
Dlttmar
New
Montreal
CONDON,
Bullock, New York
J.
CON,DON,
B.
Company,
Wm.
Chicago
•
Cleveland,
Corporation,
s
P.
Inc.,
DOOLITTLE,
Doolittle &
*
V.
Ingen & Co.,
Chicago
Inc., Chicago'
HALSEY /
National City Bank of New York,
National Bank,
i
,
New York
v
DOUGHERTY,
A.
Webster
A.
WEBSTER
'
1
Dougherty & Co.,-
;
~
Philadelph5"
Continued
and Midwest Stock Exchanges
NEW YORK
Charlottesvilla
ERNEST O.
'
V
Moore, Leonard & Lynch, Pittsburgh
Corporate and Municipal Securities
INDIANAPOLIS
.
DORBRITZ,
Francisco
BOSTON
,,•„
.
ROY W.*
Co., Buffalo
F. S. MOSELEY & CO.
of
•
Mericka & Co., Inc., Cleveland
Dominick &. Dominick,
>,
New York
Harris, Uphaui & Co., New York
J.
Peoples
COOK, A.
The
BURNS. Jr., JAMES F.
,
DONNALLY, JESSE P.*
RAYMOND
Van
York
DOMINICK, II, BAYARD*
M.
Bank of
CONWAY, POWHATAN M.*
The Bankers Bond Co., Inc., Louisville'
BURNS, EDWARD
Inc., New York
J.
Securities
DOERGE, CARL H.*
McDougal «fc Condon,
Burke & MacDonald, Kansas City
San Antonio
& Company,
JOSEPH W'.*
American
Cleveland
PAULEN E.
OTTO
Swiss American Corporation, New York
DIXON,
H.*
&
National
'
NEUFVILLE,
DITTMAR, ELMER A.
Incorporated, New York
CHARLES
Development Bank,
Puerto^ Rico
HENRY WALLACE*
&
JESUS, ROBERTO
Government
Dealer
Chicago
Chicago
B.
Underwriters and Distributors
New York
York
Exchange,
F. S.
Members New York, Boston
Underwriter
"
;;';
-
.
Stock
Midwest
Harris,
Ripley & Co.,
-
;
Company Stocks
Foreign Dollar Bonds
V'
Rollins & Co. Incorporated,
York
JOSHUA A.
Reynolds & Co., New
SCOTT
XV.
Yolk
Bonds and Stocks
Bank and Insurance
Seattle "•
D.*
DAVIS.
C.
Chicago
COLLIER, W. T. K.
•Collier, Norris & Quinlan,
i
K.*
HOWARD E.
F. Eberstadt & Co.
Industrial
Rollins
New
WALTER
Gregory
National
BURKHOLDER, III, JAMES R.
Holton, Farra Company, Lexington
State, Municipal and Revenue Bonds
VIRGIL
Blair,
W.
COLEMAN, FRANCIS X.
S.
Southern
BULLOCK, HUGH*
BURKE,
,
DAVIS, JOSEPH D.
Beecroft, Cole & Co., Topeka
New York
Dealers, Inc., Chicago
International Bank for Reconstruction...
Cleveland
York'
Cohu
Atlanta
National
Co..
MORTIMER A.*
Sterne, Agee & Leach, Montgomery
Hutton & Company, New York
BUHSE,
United States Government Securities
'
,
>
-
E. MERRILL*
Kidder, Peabody & Co., Boston
York
COHU.
and
F.
DARLING,
C. COMSTOCK
Clayton Securities Corp., Boston
Schoellkopf,
A.,
New York
BUECHLER, RICHARD
E. F.
New
,
COHEN,
JAMES
Citizens
;/•;
,
N.
BRYCE, T. JERROLD
Clark, Dodge & Co.,
BUDD,
Philadelphia
CLAYTON,
Investment
E.
Plain
Co.,
"
BRUCHLOS, W. C.
JOHN
.
\
-
-
•
ROBERT E.
DARDI,
Company, Miami
COGGESHALL,
America,
The Bond Buyer.
'
Moseley & Co., Boston
Blair.
COBURN, MARY LOU
Francisco
BRYAN,
■
New
Hutzler, Chicago
Company, Denver
ALAN
of
York
Clarke & Co., Chicago
Harriman
FRED*
and
*
CLUETT,
Company, Denver
Bros.
&
JOHN
W.
Biyth &
HARRY
Salomon
and
CLEAVE,
York
DONALD F.*
BROWN,
y.;
?
Company of Boston
Pacific Northwest Company,
P.
Turben
CLARKE,
■
Bcettcher and
Clark
Atwill
E.*
Press, New
WILLIAM*
LEO
S.
F'.
CLARKE, Jr., IIAGOOD*
Guaranty Trust Company of New York,
New York v
Associated
W.
Merrill,
BROPHY, L. A.
BROWN,
SYDNEY
Baltimore,'^,
of
Co.
'
E.
BROOKE, Jr., FRANCIS M.*
Brooke & Co., Philadelphia
BROOME.
London
irust
Keystone
DANIEL,
CLARK, WILLIAM
BREWER, ORLANDO S.*
Phelps, Fenn & Co., New York
.
GEOFFREY
ANDREW G.
E. Ames & Co., Inc., New York
A.
.
BRAYSIIAW, DONALD B.*
Lord, Abbett & Co., Atlanta
_
Francisco
Tlie
GEORGE
CLARK,
;,.v;
DANIEL J.*
CUSACK,
ROBERT E.*
Calvin Bullock. New
FRED C., Jr.
.
CURRY,
CLARK,
Moseley & Co., New York
;;
&
H.*
Walscon, Hoffman & Goodwin,
.
New York
S.
cnicago
E.*
Adamex Securities Corporation,
New York
■
>
/
''' ' *""
Howard, Incorporated, Boston
Crouter
--yr'i--
Baltimore
-
■
Eaton
;;
■■.:;•
f
WARREN
'Mercantile'
&
CLARK,
Co., Chicago
Company, Detroit
Economist.
CHAPMAN, R. Ci >1;^
Fulton, Reid & Co., Cleveland
O*
MAHLON
Davis
'
Incorporated,
Crowell, Weedon & Co., Los Angeles
•
CULLEN,
C.
New York
New York
C.
GORDON
CROWTHER,
Fenner
Bank <fc Trust Co.,
Chemical
J. C. Bradford & Co., Nashville
J.
:
-S:K<
O.
CHANNER,
J
CRUNKLETON, JOHN R.*
CHAMBERLAIN,
-
I).*
Co.,
&
CROWELL,
i.
.
Beane, New York
City
4
York
Townsend,
Bodine, Philadelphia
CLAIR F.*
& Company, Inc.,
s.
.
RUSSELL D.
Greenshields & Co., Inc.,
BENDER.
CECIL,
B.
&
Crouse
Cassell
F
MILTON
DeHaven
Charlottesville
York, New York
BOYNTON,
Hallgarten
"
C.
'
,
(
JOSEPH
CROUTER.
^
CASEY, J. DOUGLAS
A. C. Allyn and Company,
Incorporated, Chicago
CASSELL,
National Bank of
Chase
of New
Company, Dallas
BELL.
York
♦Denotes Mr. &
Montreal
ANDREA
BELL,
Inc.,
' -
Merrill
FRANCIS
BOWMAN,
Co.,
THOMAS*
Montreal
Bleichroeder,
&
Co., Chicago
Bolger &
'
•
CROUSE, CHARLES B.
Research
&
of
York
New
LEE*
Securities
New
Harriman Ripley & Co.,
Newark
Atlanta
Co.,
KUFUS
Bank
WALTER J.*
Devine &
J.
CROSS,
V
Corporation, Los Angeles
BORKLAND, Jr., ERNEST W.*
Tucker, Anthony & Co., New York
ANDREWS
Beaubien
First Southwest
Co.,
HENRY II.*
& S.
G.
BECKETT,
L.
R.
Frederick
L.
&
National
F.*
BONNER, DOUGLAS G.*
Bonner & Gregory, New York
Hayden, Miller & Co., Cleveland
BEAUBIEN,
ALBERT T.*
Coffin & Burr, Incorporated,
AEMITAGE,
JOHN
Shillinglaw,
F.
DANA
Courts
CARTER,
Columbus
BOLTON, FREDERICK J.
H. V. Sattley & Co., Inc., Detroit
EARL K.
Company, New York
BASSETT,
BAXTER,
T.*
Company,
.
,
National
CROSS, CALVIN M.
Hallgarten & Co.,
CARTER, Jr., HUGH D*
EWING
Ohio
The
W. E. Hutton &
New
Lee
,
Jr., H. LAWRENCE
Eastman, Dillon & Co., New York
BARTOW, PHILIP K.
Wood, Struthers & Co., New York
HERBERT R.
ANDERSON, Jr., WILLIAM J.
Squltable Securities Corporation,
Arnhold
5,'
'
Jacksonville
Goldman, Sachs & Co., St. Louis
Co., Chicago
LEE W.*
Carroll & Co.,
'
<
JAMES A.*
Atlantic
CREELY,
C.
&
Nuveen
CARROLL,
BOGERT,
BOLES,
Co., New York
Jr.,
BARTOW,
York
A2NHOLD,
John
1
;
1
Jacksonville,
FREDERICK B.
FRANK
CARR,
W.
Association,
Hartford
Co.,
CRANFORD,
John Nuveen & Co., Chicago
.
;
Bankers
Chicago
.
Louisville
CHARLES A.*
& Savings Bank, Chicago
CARPENTER,
Bank of Cleveland,
"
i
Jr.
MORGAN,
&
V U'
Atlanta
Co.,
F.
/ ?
J;
.
York
New
The
& Son,
Harris Trust
B.
City
i.-,.
Chicago
MARION II.*
Hilliard
B.
-1.. CAREY.
Company, Inc.,
ERWIN
Investment
W.*
BARTOW, CLARENCE
C.*
JONAS
Distributors
Paul
ROBERT
National
Cleveland
New York
EUGENE
Drexel &
Xuhn, Loeb & Co., New York
Hew
The
P.*
Shields & Company, New York
Peabody & Co.,
ANDERSON,
BLYTH,
Chicago
New York
Co.,
J.
/'
'
CRAIGIE, WALTER W.*
F. W. Craigie & Co., Richmond
,
Burr,
ANDERSEN,
&
J.
SIDNEY S.*
H. M. Byllesby and
Philadelphia
Corporation, New York
Boston
CARDWELL,
BLAKE,
K.*
Philadelphia
Boyce,
S*
Kindred & Co.,
Harry Downs
AMYAS
Kidder,
&
First
"
W.
CRAFT, ROBERT H.*
;
Guaranty Trust Company of New York,
A.*
CAPEK, CHARLES A.
Lee
Higginson
Corporation,
L.
Howard, Incorporated,
&
York
New
F. SEYMOUR*
Brothers & Co.,
BARK,
AMAZEEN, EDWARD S.*
&
JOHN
The
Company, Chicago
Blair &
<fe
Putnam
Association,
,
York
New
RICHARD
COWLES,
L.
Bankers
FRANCIS
CANNON,
Boston
BARRINGTON, CHARLES
BARRY,
Ooffin
BLAKE.
T.
JAMES
Barcus,
ALTGELT, Jr., ERNEST J.*
Harris Trust & Savings Bank,
'•' Hew
Bros.
BARCUS,
JOHN W. i
Allyn & Co., Chicago
ALLYN,
William
Jr., WILLIAM
BARCLAY,
Company,
ARTHUR C.
A. C. Allyn & Co., Chicago
/ALLYN,
Buyer,
GORDON
>
&
Courts
.
%
Investment
McCORMICK
EDWARD
BLAIR,
Baltimore
H.
Co., Cincinnati
&
Michigan
of
Co.,
MALON C.*
Co., Atlanta
Courts
COURTS,
H.*
Corporation,
York
New
&
COURTS,
W.
DAVID
W.*
Jackson & Curtis,
DALTON
J.
Hirsch
•
PHILLIPS
Bond
The
ALLEN, HERBERT
&
Devine
J.
BARBOUR,
C'OUIG,
York
Washington
Law & Co., Spartanburg
Eaton
Inc.
First
CALVERT,
-
BLACKFORD, HENRY J.*
Winnipeg
A. M.
Chicago
.Allen
Sons,
&
Richardson
James
'
'
York, New York
JOHN
JOHN
Webber,
Chicago
Goldman, Sachs & Co., New York
Jr.,
J.
Paine,
Co., New York
New York
ROBERT II. '
Van Ingen & Co., Inc., Miami
CORRINGTOX,
DONALD
&
CALLAWAY.
the City of
Bank of
Chase
BAKER, RALPH D.
BANKER, HOWARD
Company,
>
A.
National
The
New York
BANEY, ARTHUR L.
E. R. Jones & Co.,
MONROE
E. RAY
Allen &
ROBERT
BIVINS,
New
Orlando
ALLEN,
Jr.,
,
Boston
Wheeler & Alleman,
"Leedy,
.
HOWARD M.* <
Whiting, Weeks & Stubbs, Boston
Reid & Co., Cleveland
Reynolds & Co.,
Barth
CALLAGHAN,
Company, San Francisco
First California
BISCOE,
B.
&
CAIIN. Jr., WILLIAM M.*
Henry Herrman & Co., New
THEODORE Jr.*
H.
s
BAKER, JOHN D.
ALEXISSON, GUSTAVE A.
•Granbery, Marache & Co., New York
F.
BIRR,
Denver
J.
IL*
Bingham. Walter & Hurry, Los Angeles
Atlanta
Company,
E.
FRANK
Fulton,
Detroit
&LDRICII, GEORGE I).*
The Parker Corporation,
ALLEMAN,
Butcher
CALDWELL,
New York
H.*
HAROLD
Spencer Trask & Co.,
COOK,
W. W. KEAN*
Sherrerd, Philadelphia
BUTCHER,
York
New
Co.,
&
A. J.
Brothers & Co.,
Barr
BINGHAM, CURTIS
DUDLEY F.*
Bosworth, Sullivan & Co.,
BAKER,
& Co.,
Aldinger
Fordon,
;
Inc.,
Co.,
Pressprich
W.
BIANCIIETTI,
MOLLIS*
J.
Tindall &
W.
R.
Miami Beach
Company,
BAKER,
CYRUS B.
ALDINGER,
J.
Bank, Boston
Atlas National
dockland
and
AUSTIN,
W.
JOHN
AHEARN,
Atwill
Bank,
Rico
L.
CHARLES
BERGMANN,
*
Jr., WILLIAM*
&BRAMS, Jr., JAMES S.
Allen & Company, New York
Boston
Investor.
States
COOK,
BUSCAGLIA, RAFAEL
'.(■ Government Development
BENNETT, CHARLES R.
ARNOLD, H. WILSON*
Weil, Arnold & Crane, New
M.
A35BE, CHARLES
CHICAGO
PHILADELPHIA
on
page
68
Number 5072
yolume 174
.
*
v.#
(2267)
The Commercial and Financial Chronicle
.
.
\
.
'■
■-
*
*'•
.,
j
'
r
"
.
'
"•
-n
;4
■
.
27
Petroleum/Industry's Profits at Peak
The
Oil
Gas-Se¬
Natural
and
whose
Chairman
Hughes
of Wagenseller &
"'
was
I
Oil
IB A,
William
n c
.,
in
-
Cal.,
report to"
a
t i
.
'
o n
result, oil and gas
highest levels in history. Sees, how¬
problems arising from Middle East oil disruptions.
>
equities,
company
Aisocia-
the
to'the
ever,
on average,
are
to
take
Ph
-•»' of the
accomplishments
of
the
American " petroleum industry in
1951 can be described only by the
liberal
use
of
superlatives.
In
PO""?®1.investments in other Mid- ■*.<
repercussions on Amerioil
The development of the Middle
die East'nations.
;
•
'■*. East.- into a major,- source of -oil
The importance of the Middle production, has also had a major
East in the world oil picture can bearing on
inter-continental oil
ev.ery division of the industry—
be clearly seen from the summary flow, particularly as it affects
production, refining, exploration, in the accompanying Table.
• r Western Europe. In 1938 the last
Th
The
Can
with
supply and, despite some narrow-
greatly
burden,
net
profits are expected to be larger
than in any past year. The stock
tax
these
recognized
has
market
continued flow of Middie East petroleum
Another im-
Eastern governments. The two
|audf Ar^^d8?^
-iraq) directly concern American
companies and presumably have
greatiy strengthenedthdrtMiticstl
in these nations
The
American interests in
Middle East oil are held bv the
fiye s0_called international corn-
^ "oum Uo/(/ ux
f.
,
,
.
nampH
the 1950 Middle East^'crude output,
■
name.d ^companies.
! peuoieum. aiiou.h mi
nmHiinfinn amnnntinfj to filO- Gulf Ql1 ls ^presented primarily
portant facet of the world petro- its production amounting to com-d 5Q% ilt f ... fhJ
blU, th
h
tnK
nnn harrpls npV Hav
This
JU /0
fWlin tne
leum picture disclosed in the tab- 000 barrels per day. Thisv com"' British-owned" Anglo-Iranian Oil
ulation is the fact that the Mid- prised 150,000 B/D of crude and
in Kuw t an ''Je
background, the industry is not die East contains half of the total? 460,000 B/D refined products from
also eouahv
without
current
problems.
The world oil reserves but accounts the famed Abadan refinery, the sbare an jndjrec, 233/,% stock inmost important of these, from the for only a little over 2% of delargest in the world. The Iranian Merest in the Iraq Petroleum Com
oil
and
achievements
many
company
-^
rf
t"
equities, on average, have sold at
Lt-.«:_-x.
;J
the highest prices in history.
Despite
this
most
favorable
f
.
standpoint of
—
RESERVES, DEMAND,
SUPPLY
previously exported
states
Net Excess of
■
''
*
United States-
Demand
Supply
59.1%
52.1%
2.6
Other North America.
63.9
54.8
11.2
6.3
41.3
70.2
13.2
1.6
U.S.S.R.
5.8
7.0
7.0
Africa
0.2
2.5
0.4
50.4
.2.3
1.5
4.7
capacity of about 200,000 B/D and
by
purchases from the United
16 8
_
East
Midd'e
Far
Hemisphere.
(excl. U.S.S.R.)
East—Oceania
Eastern
Hemisphere.
_
Source:
i
"World Oil," July 15, 1951,
^ Throughout" the'Ea'ste™
Hemi^nhPrP
Lastern
rLemispnereThe
relative
importance
major
^
100.0%
!
issue.
.
.V ,Y':
■//,
Sumatra by a joint affiliate ot
Standard
Oil
California
of
'
.
V~'
,
'
area
Company. While this
offers promise of substantial
output' and worthwhile fi¬
nancial
benefits
owners,
it is
•
praise
with
any
tainty
just
how
degree
ap¬
of
cer¬
important
this
region will prove to be in world
oil production. Investments in this
area
appear
to be subject to even
political
more
uncertainty
than
those in the Middle
of
the
more
East, but one
important facets of
this development is its proximity
to
rapidly expanding markets
in
Australasia, which will lessen the
dependence of these Far Eastern
markets "on
the
availability ' of
Middle Eastern crude oil.
Production and Demand
Domestic demand for petroleum
m
7,055,000
barrels daily,
8.4%
over
1951
is
products
estimated
at
gain of
a
the 1950 average.
Pro¬
duction for the current year is es¬
timated at an average of 6,150,000
barrels
last
daily, or 14% greater than
The increased supply
year.
together with imports has pot only
been
adequate to satisfy the
en¬
larged demands and offset smaller
net
imports, but has resulted iri
considerable
build-up
Since the first
of
PUBLIC UTILITY,
''
::
quarter inventories
of crude and refined products haVe
been increased
of
by
some
Continued
RAILROAD
INDUSTRIAL and MUNICIPAL
/
———
and
SECURITIES
PEABODY & GO.
$
W. Ci
txchangt
Chicago
pH,UDE,PH1A
,
T
Bedford
**•+*'■
Nc,
Members New York
re
115
y-'04*'fj0§:
•
.■ <
?
*/ff
yv-
Langley & Co.
Stock Exchange
VV«
■
/?
' As,
WRITE FOR OUR
•
...
/
BOOKLET
"SERVICES TO DEALERS"
Broadway
*
Tel.
BArclay 7-8800
a
stocks.
85 million
on
page
37
!
W
American
DEALERS
12,030
'P^'gOUNDED1«S
—
its
to
little early to
a
-
■
/--y';
'■ |
'
,DER
r
and
Texas
Foreign
Dollar
:
de¬
reserves
UNDERWRITERS—DISTRIBUTORS
^teRalSX^!trf '■%*:
Tork
oil
254,000
-:v
■, >,•
ux
publicity has
indicated
1,486,000
250,000
"
*
lo¬
been
242,000
'Wf?M
y/
Produc^lon» the American cornJffjnlii ^aVe ci®1!^teral tn^resfs in
of
the
these
addi-
world
have
the
to
,
1.236,000
25,000
229,000
28.3
■
•
refinery
,whi'r1?,.?per,ate,:: in
^,^t' IrJ ad^tion to these in¬
n,nHlirJ- ' fh1C
ar^e, y involve
■
-
100.0% 100.0%
Totals
velopment
in
the
in
reserves
given
of
quite substantial. 4
were
Considerable
been
cases
'
V
World
of surplus European
non-con¬
many
1,072,000
2.5-
29.7
58.7
Western
the
Hemisphere. Refined products
have been provided by the utllia-
71.7
0.8
Western
Eurooe
United
and increased
tion
16.9
_
Total South America..
®hip of "the Standard-Vacuum Oil
crude
830,000
30.1
Total North America.
from
to'the
to
591,000
239,000
2.7
4.8
,
for refining,
nroduction
—■—Barrels
Reserves
27.5%
'-'Lv'-i/:'
Supply
Demand
i!ir»o
i;»ro
I'stiniiited
■
^ ^ern ?ie?ds
diversion of Middle Eastern
distribution by Areas
Percentage
>
While this area's oil "roduc- "jcrease.
world oil
SoctoT
^e^^^euipcom-
crude' hasbeen replaced by an
im-mand.
its immediate
pact, is the disruption of
WORLD OIL
companvT
\w"k
XI
cated!
future
^Pectiye ^Middl e
^ investments Derhansl
upon
oil
tiqnal
full year oefore the outbreak of nanies* Gulf Oil Sornnv-Vannim
.World War II, over 75%_ of Eu- standard Oil Comnanv of Calione of the two major oil producrope's oil imports came from the fornja
standard
Oil
Comnanv
ing areas in the world Which has Western vHemisphere with only /jj.ew' jersev)
anri Thp Tpvas
a supply substantially in excess. 23% from the Middle East.
Last Comnanv The best known of
of its own requirements. ; The year, however, 69% came from
the
data also show- the degree to
Ttemiwherf% ownership of the Arabian Ameriwhich Western Europe is dependof can -0il Company
(Aramco) by
ent
only dividends
earnings
Elsewhere
The
p0Siti0ns
principai
(net
percentages
received from
enterprises
development and marketing—new "
As can be seen, from the data
historic records are being estab- in the table, the Middle East is
augumented
account
undistributed
50-50 profits split between the oil
,
ing of profit margins and a
into
dividends
These
companies and in
new iinanCial arrangements for a
tjated
of
taxes)*.
„lir ^ " JT consummatloa ot
j.
consolidated earnings
form
solidated subsidiary and affiliated
Probably second to the Iranian
nationalization move in its significance, to the world oil industry
.
pnnmimmaHnn nf
lished. Demand has kept pace
the
after
States. The PAD on Oct. 3 estimated that the United States was
supplying-190,000 B/D of refined
products and diverting to Europe
about 90.,000 B/D of crude previously imported from the Middle
East.
in wollcl oil affairs. The Iranian-up-trend which undoubtedly will
dispute' has emphasized the in* t^nue^less <^tu^i by po: all
segments P°itance^of Middle . Pastel n oil
. easily the most proryf
and> although United States prop- ^asl so lar 1S easily xne most proot thp inHnt;the indus
'
«•
William
«»«jSues
directlv
lific of the - world's three major
try, have esf*Iies aie n01 invoivea airectiy,
<• •
. regions
as can he
tablished new records both in ophe controversy is of vital concern
™"tnut
erations and in profits, despite a
toritwo reasons: (a
greatly augumented tax burden, th^sto nQ being placed
o" .5>000 ,ban,e!s a day against a
The full text of the report folIranian outpu(.- and (b). possible little oyer 200 B/D in Venezuela
up
con¬
by The Texas Company
in'
past year, indicating that'
"
for "Jersey"
approximate 25% net
actually
Convention at
~
to
1950
received
40th
s
in
tribution
at
hiarkets caused by;: the cessation .Hon is far in excess of its internal
Hollywood
of Iranian operations. Since 1045 requirements, its rank as a proFla
revealed the center of gravity of the Inter- ducer is far below its indicated
the'accom- na^ona' °'l- market: has been reserve position since last year it
plishrhents Of" shiftingfrom. the Gulf'ports to the,'.accounted for only
about ■ onethe oil indusMediterranean, and , the* -Middle sixth of total World output; Howtrv during the .East now holds-the key position -ever, production
is on a steady
'
income
companies
ranged from 7%
petroleum industry has established new records, and, as
of L o s
Angeles,
Hemisphere
American
Hughes, of iWagenseller & Durst, Inc., reveals every division of
William S.
Durst,
Eastern
Natural Gas-Securities Committer ofIBA, under Chairmanship of
and
the
of
Committee
curities
New York 6, N. Y.
1
.>
28
The Commercial and Financial Chronicle
(2268)
Warns Against
in
a
brief
of
report
summary
W.
Committee of the IDA, under the
Chainnanship of James M. Hutton,
Jr.
of
E.
W.
E.
&
Hutton
increase Capital
Gains Tax rate, and
Hutton & Co.,
Cine
tax
innati,
had
we
recommendations
to the proposal for the with-
(1)
many
tal
gains
rate
Jr.
J. M. Hutton,
Con-
be
creased
that
a
for
tax
We
in¬
on
our
efforts
to conthose
on
with¬
:
and
reduce
to
most
ties business.
The text
of the summary report
it will be recalled that Secreof the Committee follows:
tary Snyder, among other things,
\ Many of you will recall that in
recommended that the then existour report to the Convention last
ing capital gains tax rate of 25%
November we outlined a rather and the holding period of six
ambitious program in the tax field months be increased to 37]/2% and
iii .the light of then current and
one
likely future conditions and it is
something of a commentary on
is
the
profits tax credit of each
amount
an
year,
our
respectively. It was and
opinion that a
considered
lower rate than 25
or
26% and
a
Here again I am happy to report
that many people in our business
and others affected presented their
and neither of these proposals was
enacted into law.
1
(2)
A reduction in
gains tax rate,
a
the capital
shortening of the
*nS °.n the assumption that the
principal purpose of tax legislation is to produce revenue, we
SL? ^w^^with°
3„„,
..'
losses;
(3)
Relief from present double
t„„h
viewt hfthe
holding period, and an increased
deduction
against other income
for
^
-
nnhp
Pnnal
It
is
not
practicable in
a
report of this sort to
mary
all of the
sumcover
provisions of the Reve-
prepare such a summary which
sent to all members of the IBA
was
"Washington
as
No.
3,
and House have
d
t
Senate
in their view
that
it
t'war
0
?he
|; Very shortly after
last
our
c°™promise to
meeting
events in Korea
year,
mcrease me raie 10
/<?.
of the need for Federal
reached
oTdifinishing
to.increase the capital gains tax
raje and holding period, to with-
tax, reve-
very
directly affecting the securi- is considerable feeling, both withwe had not in and without the government,
but which, that if we are to raise substan-
faced with the ties business which
necessity for additional revenues anticipated last fall
we
were
to cover the cost of
ment program,
selves but for
a
vast rearma-
not only for
our
allies
as
our-
well.
after
consideration, and for
a va-
riety of reasons, seemed to us unsound.
We refer:
tially more
to
revenue we
Unless
our
we
directed
are
other¬
by the Board of Governors
this
or
Convention,
shall do
we
best and try to encourage the
membership and others to
the three
GENERAL OBLIGATION
MUNICIPAL BONDS
which
measures
oppose
we
op¬
unsound.
We
Bulletin"
shall
endeavor
year
Electric
Sewer
known
may
Mark
Hutton
&
or
& Company,
Rock, Ark.
Little
Charles
Chas.
B.
White
be.
them,
The
more
Co.,
IBA Governors Set
Dates of Winter and
of
Meeting of the
Governors
of
formed, and the end result should
be sounder
tax legislation for
ail.
Committee
strongly that
Municipal Department
V;
•
taxes
in
a
Associa¬
Chicago,
Edge-
8
and
9,
at
the
water Beach Hotel.
The
Spring
Meeting is
Sulphur
Springs, West Virginia, May
for White
scheduled
14 and
Co., Inc.,
17.
Charlotte, N. C.
Thomas
The
I §52 IBA Convention
Graham
Bankers Bond
Co., Inc.,
Again in Hollywood
Louisville, Ky.
The 1952 annual convention
John C. Hagan, Jr.
Mason-Hagan, Inc.,
of
Richmond, Va.
Association
be held at
Donald W. Hlnton
Conrad, Bruce
Seattle, Wash.
&
Investment
the
at
Co.
the
of
Bankers
America
feels
to the survival of
is
our
Hollywood
■IV
w
o
Specialists
Foreign Securities
Foreign Investments
very
on
necessary
free enter¬
possibility of securing such
&
Company
Established 1922
30 Broad Street
itation is
New York 4
through
amendment.
require
the
a
To
a
a
lim¬
constitutional
secure
this
will
INVESTMENT
petition of 32 States to
30 Broad
Congress. At the present time
25 State
Legislatures have already
passed
such
several
Beach
Hotel, from Nov. 30 to Dec. 5.
prise system, and that the greatest
qAllen
resolutions
others
and
resolutions
in
have
SECURITIES
Street, New York 4, N. Y.
Foreign Representatives
Adler &
Co., A. G.
Zurich, Switzerland
will
Holly wood, Florida,
^
top limitation
peacetime
us
the
Bankers
this, the better they will be in¬
Housing
V
tion will be held in
Co.,
Dickson
your
views
whatever they
of you who do
Toll Bridge
v
Houston, Tex.
Investment
Harris, Upham & Co.,
New York City
make
to
to
The
Inc.,
v
B. White &
The Winter
James F. Burns, Jr.
S.
Walton
Walton
Feb.
R. S. Dickson &
Sullivan, Jr.
Gus B.
Board
Cincinnati
Rush
Stutz
Spring Meetings
TAXATION
James M. Ilutton, Jr.,
Chairman
E.
'
Auchincloss, Parker & Redpath, Washington, D. C.
COMMITTEE
W.
N.
•
White-Phillips Co., Inc.,
Davenport, Iowa
of his time and energy in an effort
FEDERAL
Simonds
The
Committee
Respectfully submitted,
Company
as
and
ators
Carl
he has given most generously
THE
Mullins
P.
Baker, Simonds & Co.,
Detroit, Mich.
tremen¬
ment of our basic program.
National
Lemon
Ralph W.
If
during the
'
Pittsburgh
wishes to express its thanks and
appreciation to Murray Hanson
*or the excellent job^he has done
on °"r behalf. During the past
to
otherwise, of devel¬
they occur, and I can't
urge you too strongly to get to
know your Congressmen and Sen¬
opments
Water
In closing, your
II.
A. E. Masten &
weight with Con¬
posed this past year and any new
ones which
similarly seem to us
keep the membership generally
advised, through the "Washington
MUNICIPAL REVENUE BONDS
a
^
& Trust
Frederic
will have
to some sort of broadly
based consumption tax, although
there is considerable disagreement
as to
just where this should be
placed. "
come
wise
Dealers in
carry
.
•
Johnson, Lemon & Co.,
Washington, D. C.
gress.
short of
have
wp
indi-
ahd elsewhere changed the whole
Secretary Snyder also made a hold income taxes on dividends
picture, and instead of a lessening number of other recommendations and interest, and of course there
nues,
James
sound tax pro¬
■
members of the Cong ®&uas dis ready indicated that he will ask
S3SI55for additional new taxes, in spite
kne^-. and that the Senate of the let that leaders in both
worthwhile
by
it would
gram,
"
Co.,
Memphis, Tenn.
in the investment bank¬
ing business could sell everyone
dous amount of
Planters
Bank
everyone
a
{
Lancaster
Union
lon£ range program involving
a 6rcat deal of time, effort and
money- The most important contribution you can make to it is the
Now what about the coming coming year conditions may be
year? President Truman has al- more favorable to the advance-
constitutional rate and the holding period would
p0int
returns
produce less revenues, even UIKjer
our present tax structure.
V, (5) Opposition to the passage of though the Senate ultimately saw It ig more than
likely? however,
an excess profits tax.
fit to go along with the final Con- that an effort will be made again
here
James C.
favor-
of your customers.
'
Friedrichs & Company,
Orleans
a
Oct-23, 1951.S You can find to Let us all hope that
further our work,
'
(4) Support to the effort to Committee, particularly, was conlimit Federal taxation in times of vinced that any increase in the
to 25%
amendment,
Bulletin"
the story there.
the
pe9ce
is
"\[
Co.r
New
wherever possible.
of his customers
period shorter than six nue Act of 1951 which are of parin the interim when one considers months would produce more reve- ticular interest to the
investment
the things we thought practicable, nue than existing law and that
banking business, but we would
or at least worth working
for, at any increase in rate or holding
|0 can your attention to the
that time. These included:
period will reduce revenue. Go- fact that our Washington staff did
of not to exceed 50%;
secure
f..."
Howard, Weil, Labouisse,
ab|e action on such resolution
views directly and vigorously to
their Congressmen and Senators education
developments holding
(1) A top limit on individual
combined normal and surtax rates
"lent, in an effort to
;
'
-
Labouisse
P.
John
State bodies will meet
made to the Congress which equal to the surtax exemption of
We also have a problem of pubdirectly affected the securi- each such corporation.
lie education in the tax field. This
were
dividend
and interest payments.
world and domestic
them
among
excess
phases of the tax proposals which related corporation to
.
holding tax be levied
decided, therefore,
centrate
and
m
Kirkpatrick
R.
Omaha, Neb. ;
top limit of 50% on individ-
a
Utah
Kirkpatrick-Pettis
been
passed
in
one
legislative
body but have been defeated in
the other.
In view of the fact
that
City,
Hooper
Bank,
New York City
the
made
ses-
of
F.
First National
plank in our platform estimated would produce addi- during the coming year, it is our
tional revenue of some $250 mil- recommendation that the members
gress
renew
uals wholly unrealistic from a lion annually; and
of the IBA cooperate as closely as
his
recompractical political point of view,
(2) to require related corpora- possible with the American Taxmendation even though it still might well Hons
in
a
controlled
group
to Payers Association and Mr. Daniel
that the capi- have increased total revenues.
divide
one
surtax
exemption
Casey, its Executive Vice-Pression
Lake
Salt
,;v Stewart
Thus
Ilogle
Iiogle & Co.,
Leverett
dividends and interest.
on
of
next
seek to
proposal to enact withholding
renew
the from the President and the Secre- holding of income tax on diviTreasury tary of the Treasury for vast new dends and certain types of interest
Snyder would sums of money which, of course, payments and royalties which he
at
will again
E.
J. A.
the
expressed
view that See-
retary
James
headed by James M. Hutton, Jr., of
forecasts likelihood Treasury
Co.,
Thursday, December 13, 1951
Federal Tax Policies
Taxation Committee of IB A,
Federal
its activities, the Federal Taxation
...
SoHNUR, S. A.
;
*
.
,
Montevideo, Uruguay
Volume 174
Number 5072
.
The Commercial and Financial Chronicle
.
.
The
The Municipal
Municipal Bond Market in 1951
Securities Com¬
IBA
of
President of the First National Bank of
Miller,
Lewis
e-P
c
continual advance in prices
the
Na¬
First
Federal tax
tional Bank of
Chicago,
further improvement in
Holly
Fla.,
29
at
w o o
d,
of
the
ade is
likely to show
a
last
during
dec¬
past
decline in
which reacted unfavorably
after the unpegging of govern¬
ment bond prices by the Treasury
in March, has in recent months
showed renewed improvement and
legislation
and
reduction in visible supply of new
issues.
-
,
Following is the text of the
re¬
we
in
those
in
states
the
where
practice is indulged in.
sub¬
Report,
called attention
to
the
issues, points to
Annual
Report
of
It was
turnpike^ tolls.
that consideration was
being given to including service
This
the
situation
is
the
of
result
of
enactment
legislation au¬
thorizing municipal construction
of properties — industrial plants,
etc.—to
be
operated by private
companies or individuals under
charges for sewer rentals, garbage
"j;
adoption collections, etc.
Probably the most ridiculous
of such steps as may helpful in
overcoming this unhealthy prac¬ procedure attempted in this con¬
nection was one reported in the
tice.
June, 1951, issue of the "American
Our Federal and State
Municipal News." We quote: "The
Governments
reductio ad absurdum in the ex¬
There were several efforts made
tension of price controls is, per¬
during the year to establish Fed¬
haps, the effort of the OPS office
eral power over the states and
in St. Louis to prohibit the instal¬
their governmental units. Among
lation of parking meters by the
and
recommending
the
Buyer's" index of average yields
of bonds of 20 large municipal
units showed
a
2.23% basis.
a
Since
substantial
from the rentals.
derstand
from
is question
The Illinois law
For rate making purbring the large bulk of
fmunicipally owned utility
to its constitution¬
systems under Federal agency
enacted last
was
summer.
as
We
un¬
(a)
\
,
poses
that there
counsel
last
city
on
the
in
the ground that parking
of proposed meter
areas
installation
base
was
free
during the
December
January 25, 1951."
to
period,
An
19,
1950,
infringement of power was
and the OPS
19th Gen¬
eral
Overriding
Regulation 14,
Amendment 2, which specified the
exemption of our local govern¬
finally
issued
recognized
on
September
ments.
>
ality. California is another state
authority.
\
in the market and
in which a somewhat similar prac¬
the new tax bill, together with the
(b) Enlarge the jurisdiction
year it was pointed out that each
tice is gaining momentum as a re¬
of the Office of Price Stabili¬
year for the past decade, with the drop in the visible supply of new sult. of recent
developments.
zation by requiring these
exception of 11942, had been a issues, would appear to point to
On Sept. 13 the Chairman wrote
utilities to file notice with
record breaking year in the mu¬ some further improvement as we
to the members of our Committee,
the
Federal
agency
of any
;
nicipal field as to either price or go into a new year.
Council and Special Committee on
It is to be hoped, however, that
volume.
Each year, 1940 to 1946
proposed rate increase.
Revenue Bonds on the subject of
inclusive (1942 excepted), record- a price level may be reached and this
type of municipal financing.
Congress declined to subject the
high prices for municipal secu¬ maintained at some moderately He pointed out that although these operations of local governments
rities were reached. Then in each higher point without running the
legislative authorizations have in to Federal dictation.
of the years 1947 to 1950 inclu¬ risk of too rapid an advance. Ex¬ the main received
the approval
sive record-high figures in the perience would appear to indicate of the courts as to
legality in the
amount of new municipal issues that the high levels of the past
respective states there are, how¬
were reached.,
have resulted in a growing buyer ever, a number of practical and
-.
yW.V'.
our
and
rages
municipal bond
market after the opening of the
Korean conflict in July, 1950. This lease. Mississippi, Kentucky, Ala¬
them were:
advance continued until the early bama, Tennessee and Illinois have
(1) The Office of Price Stabili¬
part of March of this year when done so.:
zation sought Congressional au¬
it was reversed by the removal of
Mississippi's authorization is for
thorization
of power to control
the
peg
on
government
bond the issuance of general obligations
rates charged by publicly owned
prices and the ensuing sharp de¬ by local governments for the pur¬
utilities.
Expressed briefly, the
cline in the market on those se¬ pose of constructing the plants. In
the other states mentioned the se¬ OPS proposed amendments to Sec¬
curities.
tion 402 of the Defense Act of 1950
This
decline
continued
until curity financing is to be payable
which would:
about June 21 when the "Bond solely from the revenues derived
then there has been
port:
In
owned
municipally
parking lots, parking meters, ga¬
,
expects further gains as result of
tax
May,
veloped
ture,
Federal
Interim
the rapid price advance which de¬
the current year. Says price struc¬
new
our
mitted to the Board of Governors
municipal
issues
spread and carry with it an
unhealthy
effect
on
municipal
may
credit
In
the
volume
Miller
Housing Authorities.
Market
con¬
in
new
Oct. 23 $156,700,000 bonds
of 76 Local
tinuous in¬
crease
on
the
that
almost
(2)
Nov.
on
new
including
new
municipal bond price structure.
the
to
Convention
Lewis
bill, coupled with drop in visible supply of
Says
year.
apply to local govern¬
regulations of that,
office for certain service charges,
reported
re¬
ported
will not be duplicated in current
of
the
ments
res¬
of
ident
sought to
financing and
new
time, some officials of
Price Stabilization
a
Office
the
Chicago, reports that trend of earlier
with respect to constant increase in volume of
years
Assistant
V i
(2) For
Municipal Securities Committee, headed by Lewis Miller, Assistant Vice-
mittee of the Investment Bankers
Association of America, under the
Chairmanship
29
(2269)
improvement
Efforts to amend
provide authority
Federal
government to
31/3% excise tax on the
(3)
law
to
the tax
for the
levy a
electric
projects
produced by
local governments.
However, the REA financed elec¬
tric
cooperatives
were
to be
exempt.
Congress rejected this
energy
owned by our
proposed
levy
of-Federal
Continued
on
taxes
page
.
a portion of resistance and precipitated costly
remaining, it would appear adjustments in inventory.
While there is still
1951
that
no
record
of securities or prices
Municipal Construction of
Properties for Industrial
will be set
this year.
The amount of new is¬
sues of long-term municipal bonds
during the first 10 months was in
the neighborhood of
$2,703,400,000.
problems involved.
attention
rected
various
to
He di¬
detri¬
mental factors from the standpoint
to either volume
as
other
among
Purposes
over
a
comparatively
re¬
and
which
other
to
likely
afford
features,
continu¬
would most
that
were
of this practice
ation
Our Committee is seriously con¬
cerned
credit
of
a
increase
an
Reynolds & Co.
the
in
arguments for taxation of the in¬
terest
municipal bonds, and en¬
This compared with about $3,128,- cent development in a few of our
500,000 during the like period in states which is also a matter of courage arguments for the regula¬
He also di¬
serious concern to local taxpayers tion of municipals.
1950,
: rected
attention
to
"Moody's"
The largest sales this year in and others interested in the gen¬
eral welfare of their state and in writeup on "Industrial Plant Rev¬
the municipal field were: (1) on
enue
Bonds" in its Bond Survey
the future credit standing of their
of July 23 last under the heading
July 14 $170,000,000 of bonds of community.
Furthermore, there is
Recommended
for
Invest¬
58 Local Housing Authorities, and a growing fear that this practice "Not
on
Underwriters—Distributors
Members
•j
New York Curb Exchange
New York Stock Exchange
ment."
Operations of this character ap¬
to us to be questionable mu¬
nicipal activities. We believe the
pear
of
municipal credit in aid of
private industry is unwise. It may
readily become injurious to mu¬
nicipal credit and detrimental to
use
Philadelphia-Baltimore Stock Exchange
New York Cotton Exchange
Midwest Stock Exchange
Commodity Exchange, Inc.
Chicago Board of Trade
the best interests of the people of
the
respective municipalities.
In
our
opinion, and in that of
qualified municipal bond counsel,
this type of operation is neither
Underwriters and Distributors
essential
an
'
nicipal
°f
dure
nor
the
desirable
a
function.
in
Similar
past
has
120
BROADWAY
erable
municipal
.
NEW YORK 5, N. Y.
mu¬
proce¬
invariably
ended in confusion and in consid¬
Investment Securities
•
Branch
Offices
readjustment.
This is clearly
pointed out in an
article by David M. Wood of Wood,
King & Dawson, municipal bond
attorneys of New York, "Public
New York 1, N. Y.
Empire State Building •
Chicago, III.
Philadelphia, Pa.
Durham, N. C.
Aid to Private Interests Poor Pol¬
Allentown, Pa.
Bridgeton, N. J.
Shows," which ap¬
peared in the "Bond Buyer" daily
of Oct. 31 and weekly of Nov. 3.
Reprints of this article have been
Lancaster, Pa.
East Orange,
Pottsville, Pa.
Morristown, N. J.
Scranton, Pa.
Vineland, N. J.
Winston-Salem, N. C.
York, Pa.
Syracuse, N. Y.
Elgin, III.
icy,
Record
sent
to our
membership.
N. J.
Pinehurst, N. C.
Raleigh, N. C.
It would be well for each of our
members
Carl M. Loeb, Rhoades & Co.
42
STREET
WALL
NEW YORK 5, N. Y.
.
to
carefully
screen
all
financing for possible relationship
to this type of operation and to
use their efforts in educating the
involved to the possible
effect of public financing of this
parties
character.
*
i
ft
,♦
,
Your
./:/
our
strongly
rec¬
Board of Govern¬
appropriate resolution
be adopted and made available to
the entire membership and others
ors
that
an
interested, pointing out the inher¬
seriousness of this situation
ent
and to
our
Detroit, Mich.; San Francisco,
Committee
ommends to
Direct Private Wires to
All Branch Offices
Lincoln and Omaha,
Correspondents in
Calif.; Buffalo, N. Y.; ;
Neb.; Des Moines and Sioux
City, Ia.
71
SO
The Commercial and Financial Chronicle
(2270)
Utilities Feel Impact of
m
called
o
i
i
e
plants
affecting utility companies* ability to
f
atten¬
tion to tne
fair return,
earn a
Sees
aid in defense effort.
tensions and thus
a
c
finance
so as to
ex¬
this
'out
less than planned, and reports aggregate net income of electric companies
year
im¬
pact
on
util¬
reduced in current
year.
-
;• ;•
.
?
V
+ :+•
.■
A. Lynch
_
,
stressed
to
Works
9
vote.
Interior has
of
sought
timS
Vallev
central
•
d
once
th
in
f or th eS outti
Administration-
Power
.
nroieet
renneA^
were
re-'
f"
Congress
vested but they have also reached
y.
' .
in and taken away some of the
In a dissenting report signed by
earnings applicable to already out- most of the members of the Comstanding securities.
mittee who voted against the bill,
The
national : d e- law the combined normal and sur- followed rate widespreadWhile the'
by increases. applica-report
also lax was increased to 50%% in tions for
memorandum
and
electric companies were not exto pri- excess profits tax was left at 30%. empted from higher income taxes,
Inasmuch as most utility
com- the blow was softened by repeal
the
dangers of
of public power projects
vate
15
a
in 1950 and to 47% in 1951 and Congress was the strong testimony *
their
expari- the excess profits tax was revived'submitted by the private power
sion
program at the rate of 15% in 1950 and
industry that any further main hid of the 30% in 1951. Under the October terial increase in taxes would be*
earnings
efiort.
by
reported
Public
House
During the last 10 years the De¬
ond law was passed in October/tax paid by any other type of - a major factor in the decline, in
enacted
by 1951, making iwo tax increases privately owned utility company.,-profits during the current year.:f
..
Congress, enacted
within a single
year. Rather than extend this tax;; to ►These increased taxes have not.r lif
which
may
Under the first law the combined public
power
sales,
Congress. only prevented, the . companies
t
adversely af- normal and surtax on corporations - eliminated it altogether. Another from earning any return on the;.,
feet their net was increased from 38%
to 42% factor which probably influenced large amount of new capital in-.,
Willard
favorably
was
the
of
c|team-elec^^^^^
taxes*recently
fense
,
in the Pacific North¬
After four days of hearings
bill
partment
of higher-
ities
steam-electric generating
a
total capacity of.
with
j Committee
'
.
;
400.000 kw.
west.
utility construction this
new
the Department of Interior
of eight
;
As¬
Bankers
A
tion by
ship of Willard A. Lynch of W. C. Langley & Co„v says higher taxes are
report to the 40th Annual
at
Hollywood,
Fla.,
the
Public
Service
Securities
Committee
of
the
Investment
sociation
Taxes
Report of the Public Service Securities Committee of IBA, under Chairman¬
In its
Convention
.
Thursday, December 13, 1951
...
growth
utility operations.
52%
and
1.951
in
while the
1952
.
As indicated previously in this
there will be
a
FPT
duiw
taxes
f
ter
19=1
the
last
throughout
and
lfcen^es t^two
grantmS °f .FPC (1(censes to two
hydro-electric projects of 580,000
kw-total capacity in the same area
^one tp
owned by a municipal
fur-
ther heavv increase in Federal income
.
ciuar-
1952
accrued normal and sur- of the energy tax.
: /
to be offset in nart by elimination system al}d*heA <fer
Committee, Chairman of which is taxes during the first nine months
The total amount of energy tax of the 3%% Federal energy tax
bad be„enT blocked by
Witiard A. Lynch of W. C. Lang- of the current year at 47%, it will paid by the electric companies in
1 \
the Department of Interior even
ley & Co. New York City
iol- be necessary for these companies 1950 was $104,000,000 and the net
A number of the electric com- though these piojec s could be
lows:
'
'
to make retroactive increases to saving
(after deducting income Pan ® obtained rate increases this completed sooner than the Federal
Sinpp
fhp
nf
th*
ifnrpon
Jan*
1951taxes) due to its repeal will thus y.far ^ the earnings which are steam plants; (b) whether the
The
Wai
!
the
thp
the
of
text
of the panies
report
On
hc
taY
other
the
e
their
turn
ability
to
to
earn
a
fair
pealed
re-
fin-inee PvtonsinnQ
tax
tn
le^n
in
defense
aid tne aetoase effort
aia the
eiioit.
A
Federal
new
nasserl
passed
pat-lv
eaily
in
in
1951
law
and
a
and
a
publicly
was
nnwnr
cpp
powei
see-
le
was
1951.
be over $50,000,000. A prelimiindicates that for most
of the companies the increase in
nary study
.
,
f
47%
~2D/
f
This income taxes from 41/o to 52 h
jj
will exceed in varying degrees the dU 01
not^pSly
appiy
not
or
nor
to
to
savin^ on the energy tax but that
.
.
case ot a lew oi tne companies
similar the latter saving will exceed the
cooperative
was
-i
agencies nor was a
similar
increase in income
taxes.
.
+
New Construction
:/
this
Earlier
that
mated
the
would
1951-1953
Servicing
000.000,000.
Brokers and Dealers
Due
years
about
$7,-
shortages
to
of
steel and other materials,
copper,
it is
total
com-
that these
believed
now
con-
struction expenditures will be less
than
the
cording
Since 1878
amount
to
planned.
recent
a
Ac-
the
survey,
industry (including public
well
close
as
as
private plants) will
to
attaining its 75,000,000 kw. goal
for
1951
000
kw.
come
the target of 84,000,1952 may be missed
but
for
by about 4,000,000 kw.
Asiel & Co.
Members New York Curb
11
Wall Street
"
under
earlier
the
the
costs,
well
as
financing^ required
be
the
estimates,
these
of
private
thus
will
1952
there¬
for, will nevertheless be substan¬
N. Y.
Teletype NY 1-1110 & NY 1-1111
higher
taxes
nf
chmvin? the
intprnn
,necessltated• byhave already been for government steam plants these
the current de- request to Congress for (the
program
tense
lili,
comoanies
utilitv
until
not
them
in
financially
a
to use the
healthy condition.
requested authorization,
if granted, as an entering wedge
for the building of other steamelectric plants in the Sou'hweste Present huge war and de- ern states as well as in the SouthfenS(? programs have given the east and other parts of the country.
'
PiVhiin
•
-
Pow^r
»
Publ'c o.wneiship group an addedargument for increased governme1n1t. P°we.r plants. Of the many
Public projects which have been
proposed, we will touch on two,
°/ie °!u
^ ,1S st®arr|~9
an
the other hydro-electric.
,
Pri°r to the adjournment ot
Congressa bjll was mtrodjjced m
^be House to authorize construeTable I—Earnings of Class
rpjie
second
(70ngress for the further develop-
ment
of
this
river
through
hv^ro-electric
.
generating
Continued
r n
1951
$3 428,276,000
taxes"
280,343,000
382,394,000
738,138,000
735.562,000
553,517,000
534,878.000
Gross
Net
income
;
income
*Includes
excess
the
production
profits taxes of $156,000 in 1950
Change
+ 10.2%
+36.3%
—
—
of
vital war supplies can be
started it is first necessary to have
an
adequate
supply of electric
power
and that unless the utilities
and the manufacturers of electric
equipment
LEXINGTON
allotted the essen¬
materials, the defense
are
tial critical
will be slowed down all
program
along the line.
Lee Higginson Corporation
Earnings
TRUST FUND
The
condition of the utility in¬
dustry is usually best indicated by
its earnings. A brief summary of
the
earnings
all
of
class
A
and
class B electric companies for
first
months
eight
1950
of
the
and
1951, tabulated from figures pub¬
lished
by
the
Commission,
These
figures
income
but
it
to
Prospectus
may
be obtained from"
is
common
to
go
far
full
a
follow
to
INVESTMENT SECURITIES
Power
in table I.
as
get
necessary
as
net
picture
through
Underwriters, Distributors
stock.
Taking at ran¬
companies which have
10
dom
Federal
appears
and
Dealers
published income accounts for the
the Fund's New
Yorl( Office
months
12
the
or
from
••'
declined
.
an
Ira Haupt
Co.
exchanges
Broadway, New York 6, N. Y.
stock
as
number
and other principal
111
&
Exchange, New York Curb Exchange
standing
was
(7
of 9.2%
as
to
common
out
1951,
share
com¬
previous
due to
available for
well "
of
30,
eommon
the
This
net income
Sept.
per
average
with
pared
months.
Members New York Stock
ended
earnings
of
common
the
the
12
reduced
larger
shares
10
out¬
com¬
panies
sold
additional
common
stock during the period).
"
It
can
readily be
seen
that thg
increase in income taxes has been
NEW
YORK
BOSTON
0.3%
3.4%
and $7,898,000 in 1951.
many
/:
ca-
page
A and B Electric Companies
$3,110,604,000
income
the
construction of over 1.000.000 kw.
Electric operating revs.
Federal
we
River in ]sjew York. During 1951
^ree
kips
were
introduced in
1950
First 8 months—
which
project
wilj menfion concerns the Niagara
We would like to point out her£
before
^pn-
en, we urge .utility companies plants was not made until bepto press vigorously for whatever tember 1951); and (c) whether the
rate increases may be required to
Department of Interior planned
,
tial.
that
need
nigncr xdxeb pose ot latei on snowing tne neea
iu
While the
the
of
for
as
Exchange
costs
companies
aggregate
Exchange
New York 5,
Telephone HAnover 2-5000
construction
the
of
^
keep
it was esticonstruction ex-
year
penditures of the electric
panies
during
the
three
Members New York Stock
sh°w.n 111 *able 1 reveal that the Department of Interior had allorellf granted was e^irely made- cated' additional aluminum prow
?uatue t(? overcome the mounting ductj0n to the Pacific Northwest
tax burden. While it is hoped that jn the spring of 1951 for the pur-
discriminatory
did
cua
it
it
owned
nf?pnpip<?
commercial
energy
hiehlv
a
that
mat
levy
tax
iQ^ii
c
of Nov. 1,
as
was
and
3V3%
the
hand
leJ;In
texon domestic
ntnit?R afiects sales of electric
ectr
utility companies, as it xftrZ saL ot
'n
CHICAGO
74
yolume 174
Number 5072
.
(2271)
Chronicle
The Commercial and Financial
.
.
31
New Highs
In its report to the Annual Con¬
vention of the Investment Bankers
Association of America
at
tee of the
J,
A.
by
scheduled
-
Gaird¬
of
ner
veals that
IBA^
headed
Gaird¬
ner
&
Ltd.,
Toronto,
Co.,
presented
wealth
of
be completed within
to
4
titanium ore,
,
these
Says
years.
expenditures will
U.
from
sta¬
tistical data in
-
S. in financing expansion
support of the
and
Canada today affords
says
of
an un-
that
Canada
is
de-
under way and
as
a
supplier scheduled for completion within
of
basic
raw
four years.
The total is over $2 J/2
materials
and billion of which $233 million will
James A. Gairdner
manufactured go into aluminum and $150 milG
products. lion into other base metals, excluNoting that capital expenditures sive of iron mining which will
projects
now
•
of all kinds are
currently equiva¬
lent to 22% of the nation's
gross
national
product, the committee
stated that
construction
is
over
2M» billion dollars
realize
Canadians
as
j)ahies been offered for investment
being expended by various in¬
dustries
on-
expansion programs
for, completion within
scheduled
absorb
trie
gas
on
a
scale
suited
power
quire
.
million.
Chemical
unexcelled
;•"«
Text of
;.G.
•-
capital cvn<*ndifiiw»« Axrill
expenditures will
Thp^pThese
opportunity for profitable invest¬
ment."'
mnitai
'// produce
in
ranging from
between '8% and
27% for copper, nickel, lead, zinc
the report follows:
.
INTRODUCTION
and
In view of the keen interest dis¬
primary' steel.
Much larger
gains in capacity will
for
iron
ore,
aluminum,
percentage
played by the fraternity of invest¬
result
ment dealers and private investors
in the United States in Canadian
crude oil,
investments,
the
third
we
in
propose
Annual
Report of
Canadian: Committee,
in
Canada
and
to
which
nation into
supplier
of
a
is bringing
leading role as a
basic
and manufactured
The
rapid
raw
materials
products.
growth
of
"•
!
'
«
Canadian
industry is such that capital
ex¬
penditures of all kinds are cur¬
rently equivalent to 22% of the
gross national product.
The larg¬
est
proportion of the capital funds
being invested is going into the
soundest
type of project—those
G
'
.
the
of
„
.
--
,
.1
---
will
Western Canada, iron ore in Que¬
bec and Labrador, nickel in On¬
tario
and
electric
Manitoba, and hydro¬
for the production
of aluminum in Quebec and Brit¬
ish
power
Columbia,
are
familiar
panafj
toHav
Hon.
Production
gave
ward
the
end
some
-
D.
one
of
•
p-JLPfi listed
i:5tL
cerned
nn
on
snv
any
dnA
pv
up to
nearly 200,000 barrels dan^
means of
stock ex- which, granted further
the'change ta C8"8?®-.
'
'
transportation, places Canada haM
fi?verv Uiree rela«ve to the In the case o£ mmln& 0ll> PulP way toward self-sufficiency in its
%
y large re ative to t e and paperj and chemicals, the pic- reauirements for crude oil.
slze 0 our economy and becom; g ^.ure -js somewhat brighter from
What will the next few years:
° £ IxpecG that'^ movement the Canadian Point of view- A hold for Canada's future as an oil
wi
?££?? for the fm-eseeable number o£ the older companies producer? John R. White, Execi>.
^^ W ^
,
controlled by U. S. interests have tive Vice-President of Imperial.
reasonably large percentage of Oil, drew attention in a recent ad-
iuuire.
",.
Vr?
.
in
"Who's Who
of
These
business.
of
J
equity
capital available in ^
compared to the amount
Canada
-
1
Continued
on
the estimates
last spring.
Finance—Available
Underwriters and Distributors
statistics
insufficient for
of
to estimate
the source of funds
enabling this large in¬
are
vestment
us
to
be
effected, but it is
Canada,
to
Parliament
of
October
1 Sec
to¬
which
interesting
esti-
Table
2 Mid-Year
Public
ment
n>U
■
avail-
quickly toward the goal set
more
which
Howe, Defense
Minister
report
a
included
.fi>!
C.
not
an
accurately
Capital Projects in Progress
i«
1,350,000,000 barrels—up 23%,
1950-
over
in
defense is now
annual rate of over
billion dollars and is rising
running at
are
The
States
for
procurement
exam¬
ples.
.
f
UnitedP
but tt is ofe to rav that
made
by
defense industries or reads like the
United
States
develop our natural those supplying strategic raw ma¬
The federal government's
resources, of which oil and gas in terials.
which
'
As far as the investment activi- Canadian shareholders and in re- dress to the rising rate of oil ar.dL
Privaf® VT.
States cent-months several new issues gas discoveries—17 in 1947, 43 irk
$2i/2 billion over four years, make citizen is.concerned, this develop- made in connection with oil and 1948? 58 in 1949> 69 in 1950 and 54
up, of course, only one sector of JJ16
^ *1
pos® a^y problem chemical developments in Canada jn fhe first seven months of 1951.
total
capital
investment.
The b?.cau/?e he
mostly buying into have been effected in such a man- He gave his opinion that the curoverall investment figure for Cansuuations already existent and ner as to provide for Canadian rent production potential of 200,ada in 1951 is of the:* order of ^'Whicli there is already a sub- participation either in their senior 000 barrels daily could be doubled
$4,561,000,000 which represents a f;91?1?1 Canadian interest, but the securities or their equity financ- or trebled within the next few
record 22% of Canada's estimated U"lted
States corporation which ing.
years
gross
national product for 1951.
^[Jia^noDpra^0n nf the^arent ThlsGn our opinion, is a method Apart from crude oil consumed
Deducting capital expenditures by
nrohlem
° p.roc^dure ahat ^.so"nd—by the growing refinery capacity
governments, municipalities and comPar)y does provide a problem, nomically
and politically. Our of
prajr[e Provinces a large
certain other categories, the out- >
A study of fifty of the largest citizens are intensely interested in
^
Qur
wesfern production
lay by business is about $2,860,- United States manufacturing com- the development of their natural findg itg market in the refineries
000,000.2
Needless to say, a large Panies doing business in Canada resources and markets and while q{ 0ntario
having been transpart of this expansion is being through
subsidiary companies we realize fully that the amount ported by the Interprovincial Pine
i;ira
Wi,n»
Such projects as have been dealt
this,
in
the
foregoing, "totaling
the with
present
the highlights of the rapid devel¬
opment which is now taking place
our
cobalt and ilmenite (ti-
taniumore).i
'
the natural resources and indus-
.capacity"^
increases
volved.
funcis and the application of your
.vegtment
an
markets
the
<•
;$1,200
Canada, ac¬ plants, including petro-chemicals, know-how
cording to the- report, "provides will cost $127 million and primary G
t.
today, perhaps more than at any steel facilities a further $88 mil-
history,
to
and; refineries, - will and the defense requirements of vestment of Canadians in these
Hydro-elec- the Western World and we wel- ventures would not amount to a
installations will n*e- comeV the
investment
of
your tiny
fraction of the assets in-
$513 million.
the next four years.
time in her
at
subsidiary and in two of these
the amount held by Canais so small as to be of no
real moment—in all the total in-
the
Petroleum and need for external financial assist- cases
development, includ- ance if our development is to be dians
ing exploration, drilling, pipeline
,
In no instance whatever
have shares of the parent com-
being pro-vided internally the present rate
of progress would be impossible of
"attainment were it not for the
influx of funds from the great
reservoir of capital which exists
in the United States today.
G; We
natural re¬
or of in¬
Although it is hardly possible
in a review of this nature to.cover
effectively all those fields Lb.
which noteworthy capital expenditures are now taking place, a
brief reference will be attempted!
to those of special interest which*
are in progress or planned:
oil—It has been estimated ths-fc
total expenditures for land acquiisjtion, exploration and develop¬
ment in Western Canada will top*
$200 million for 1951. There are*
f49 geophysical crews in the field!
and 9f wildcat rigs at work and!
the number of both is increasing;
rapidly ,■ Reserves are now placed!
in
their
respective
groups . supply
anywhere from
25% to .100% of the Canadian
market in their field of endeavor,
In only eight cases out of 50 has
the Canadian public been given an
opportunity of investing in the
common shares of the Canadian
the companies
while
take $226 million.
natural
our-
markets,
our
or
Capital Projects in Progress
capital funds which quite
evident
that
various industries are employing greater proportion is
1 o p i n g
a
leading role in
v e
developing
companies thereof.
.
the
of
mates
V.
Survey,
Investment
of Aiade and
in
1951, Private and
Canada,
Depart¬
State, Municipal and
Commerce, Ottawa.
it if x.
Special Revenue Bonds
INDUSTRIAL, PUBLIC UTILITY, RAILROAD
and
MUNICIPAL
SECURITIES
Corporation Bonds and Stocks
UNLISTED TRADING DEPARTMENT
Laurence M. Marks & Co.
Members
v
New
York
Stock
Hayden, Stone & Co.
25
BROAD STREET, NEW YORK 4,
NEW YORK
Exchange
Aetv York Cnrh Exchange (Associate)
ALBANY, N. Y.
49 Wall
Street, New York 5, New York
Telephone IIAnover 2-9500
States
vesting in the shares of the parent-
>
view
United
companies formed for the purpose
excelled opportunity for profitable investment.
;
-
of
subsidiaries
of
aluminum, crude oil,
lead, primary steel and other .materials.
Cites role of capital
copper,
sources
a
limita¬
is constantly
widening, there is a growing feel¬
ing that our citizens should be
given an opportunity of partici¬
pating either in the equity shares
tion, and the bracket
on
produce substantial increases in capacity for
:
within the bracket of that
rapid development of Canadian industry, re¬
$2y2 billion is being expended on projects; now underway and
Ltd., of Toronto, commenting
Holly- y*
Wood, Fla., the Canadian Commit¬
available in the U.S.A. is limited:,
Committee of. IB A,; headed by J. A. Gairdner of Gairdner & Co.,
Canadian
Teletype N.Y. 1-344
BOSTON, MASS.
WORCESTER, MASS
PORTLAND, MAINE
SPRINGFIELD, MASS.
page
44
32
The Commercial and Financial Chronicle
(2272)
Praises Work of IBA Group
At the Investment Bankers Assn. Convention
calls the
"Iron Men," who have done
GOLF
1st—Charles C. Glavin,
Lillis, Bear, Stearns & Co.. New York.
2nd—Donald C.
to
report
the
what
had
other
40th
accomplished
been
in
Groups,
opportunities
Ch airmen's
of
first-hand information in detail of
Group
Committee
and
Truly this has been a great year
industry and some of the
for the
what
sult
the work of the
good work that has been done by
these
17 iron men was
in part
17 "Iron Men"
forecast
Associa¬
tion,
praised
by
headed
who
the
some
have
regional
during
by what had been done
of their predecessors. We
accustomed,
for
a
groups
Groups
past year.
In
Boles
Kruif
Curing Thomas Boles
very
ing
iron
who
men
tells
fine
Messabi iron range. We
tell you the story of the
17 iron men and of the great job
they did in discovering and
meetings
they
held
have
mendous
results
achieved.
ploiting the pent-up interest in
the 17 Groups of the IBA in the
But to
—
far
of
more
your
would
job that these
iron
men
-
17 "lean-bellied"
have- done
'
most wise decision here at Hol¬
a
the
length' and breadth of this
land in promoting not only inter¬
est and enthusiasm, in the IBA,
Winter
of the Board in
meeting
,
Chicago, where a special program
but bringing to their members a was set up so that each and every
solid and savory diet which not chairman could know, not only
Championship:
1st—W. Neal Fulkerson, Bankers Trust Company, New York.,
2nd—Andrew
r
K.
Discount
Marekwald,
Corporation,
New
York.
3rd—Theodore V. Low, Bear,
Stearns & Co., New York.
Ladies Low Gross:
Michigan Group: William M.
Braun, Bosworth & Co.,
Incorporated, Detroit.
New York Group: Amyas Ames,
1st—Mrs. James P.
,
Kidder,
&
Peabotly
<
.
Jamieson, Chicago.
2nd—Mrs.
Adams,
,
lywood last year in inviting these
17 iron men to attend the Mid-
throughout
Co.,
Low, Bear, Stearns & Co.,
deserve.
take
Board of Governors made
This
V.
Investment Bankers of Canada—Golf
them the enthusiastic salu¬
which, because of their
have achievements, they so thoroughly
,
the tremendous.
Theodore
Mrs.
and
New York.
this
done
.
New York.
2nd—Mr.
tation
time than this
of our crusading
occasion would permit.
President; Larry Marks, we have
From the lips
have
who
-
David B. McElroy, J. P. Morgan
and Mrs.
1st—Mr.
years.
men
Hutzler, New York.
Writer & Christensen, Denver.
Mixed Foursomes Tournament
give
chronicle these
activities
individual
,-
they
the Board and
outstanding job for you and your
Association.
We know you will
outstanding
speakers
they
have jiadr-r-the promotions they
have carried on—in short the tre¬
,
Handicap
Kickers
2nd—Gerald P. Peters, Peters,
listing here the names
are
the
Hole
1st—Benjamin J. Levy, Salomon Bros. &
Mid-
the
hope this may become a tradi¬
followed down
We
the
ex¬
2nd—Mrs. Allen
18
Group
all
attend
to
through the
of
.
Woollomes, San Francisco.
C. DeBois, New York.
1st—Mrs. J. Paul
tion which may be
Group—the
each
plishments? of
discovered
want
Chairmen
throughout the country.
We could go into great detail
as
to
the
outstanding
accom¬
a
want to
the testimony of
invite
to
again
interest¬
story of
18 Hole Handicap:
Ladies
that the Board will
sure
Winter meeting of
we
Lord, Abbett & Co., New York.
Allen & Co., New York.
l'
are
thusiasm,
the
background
and
training, of these 17 men to make
these
ideas
really
catch
fire
the great
United States.
We
but it took the knowledge and en¬
de-
1st—Albert R. Hughes,
2nd—Lawrence Wren,
sociation.
re¬
said:
Paul
18 Hole Handicap:
was
was
Mr.
his
t,
ly o r
1st—F. D. Farrell, City National Bank, Kansas City.
2nd—James" C. Ward, Third National Bank, Nashville.
ticipation there could be no suc¬
by the As¬
to certain of the
outstanding jobs,
doing
•
Memorial:
Robert E. Christie, Jr.
cessful progress made
number of years,
the
were.
going on. The final re¬
they felt they were made
an
integral part of the IBA and
that without their help and par¬
been
'
Prankard, New York.
Los Angeles.
1st—Mrs. Harry I.
2nd—Mrs. Wm. S. Hughes,
In addi¬
tion to that, they sat in on the
are holding securities in America's
meetings of the Board and got
greatest enterprises.
the
seven
Ladies Kickers Handicap:
but the details of
his duty, the workings of the IBA,
and just what his responsibility
Annual IBA Convention at Holly¬
the
First Boston Corporation, New York.
(Albert R. Hughes, tied, lost toss)
only meant increased prestige and
accomplishment lor the industry
in general, but bread-and-butter
wood, Fla., Ewing T. Boles of the
Ohio Company, Columbus, Ohi'o, ideas that help them to increase
>•"
the
head '% of the number of their clients who
brief
a
";
Alden II. Little Trophy:
an
outstanding job.
In
Thursday, December 13, 1951
Golf and Tennis Tournameni Winners
Chairmen
Ewing T. Boles, Chairman of IBA Group Chairmen's Committee,
heads of the Association's regional groups
...
J.
;
George
Schaust, First National Bank, Minne-
apolis.
,
New
Co.,
TENNIS
York.
Pacific Northwest Group: Willis
H.
Blakely, Blankenship, Gould &
Blakely, Inc., Portland, Ore. '
Ohio
Northern
S.
John
Group:
Men's Doubles:
First Prize—Malon
&
C. Courts and Richard W. Courts, Courts
Co., Atlanta.
'Second
Prize—Henry
Clark, Fahey, Clark & Co., Cleve¬
Firms, New
land.
W.
Putnam,
Stofck
Assn.
Exchange
Cleveland.
York; Jack R. Staples, Fulton, Reid & Co.,
Rocky Mountain Group: Walter
J.
Coughlin, Coughlin and
Denver.
Com¬
Eastern
Anthony
Tucker,
Boston.
Dominick
&
Dominick
Doubles:
Pennsylvania Group:
Gordon
Crouter,
DeHaven
&
Townsend,
Crouter
&
Bodine,
Philadelphia.
New England Group: Horace W.
Frost,
Mixed
First Prize—Mrs. Laurence M,
pany,
&
Second
Marks; Malon C. Courts, Courts
Atlanta.
Co.,
Prize—Mr.
National
and Mrs.
George B. Kneass, Philadelphia
Bank, Philadelphia.
Co.,
&
;
California
Sutro
Harter,
Robert
Group:
Co.,
&
San
L.
Underwriters, Brokers and Dealers
Fran¬
cisco.
LISTED and
Ohio
Valley Group: Campbell
Johnston, W. E. Hutton & Co.,
S.
Members New York Stock
Cincinnati.
Exchange
Southeastern Group: W. Payton
May
Corporation
Norfolk, Va.
Minnesota
York 5
of
Investment
Norfolk,
14 Wall Street, New
Donald
Group:
E.
McFarland, Kalman & Company,
Inc., Minneapolis.
Southern
Group:
EMANUEL, DEETJEN & CO.
New
Members
Dominick
P
R.
States Group:
e r r
Charles
Hornblower
&
i g o,
120
Southwestern
Rhoads,
Exchange
Exchange
Exchange
New
Broadway
Group:
Philip
National
First
Bank
York
5, N. Y.
Telephone DIgby 9-0777
Weeks, Chicago.
MONTREAL
Curb
Stock
Commodity Exchange, Inc.
Central
Corporation of Canada
Stock
York
Midwest
Nashville.
Affiliate
York
New
Ralph Owen,
Equitable Securities Corporation,
Canadian
UNLISTED
SECURITIES
J.
&
Trust Company, Oklahoma City.
Texas Group: Lewis F. Rodgers,
Investment Company of
Central
Texas, Dallas.
RAILROAD
Mississippi
&
Group:
Jer¬
F.
Tegeler, Dempsey-Tegeler
Co., St. Louis.
-
ome
PUBLIC UTILITY
■
Valley
Western
L.
Pennsylvania
Voigt, Hemphill,
Noyes, Graham, Parsons & Co.,
Pittsburgh.
INDUSTRIAL
Coming events cast their shad¬
BOND and STOCK
before and
confidently be¬
lieve the great upsurge of inter¬
est brought about b,y these chair¬
ows
BROKERS
men
that
★
will
their
to
be
we
a
terrific
successors
we
may
in
look
challenge
office
forward
& Hicicey
Members New
49 Wall Street
York
Stock Exchange
York Curb
New York 5, N. Y.
to
<
by
alone
this
means
that
our
and
this
BALANCED:INCOME SERIES
LOW-PRICED BOND SERIES
BALANCED SERIES
PREFERRED STOCK SERIES
COMMON
STOCKS:
•
STOCK SERIES
SELECTED GROUPS SERIES
•
SPECULATIVE SERIES
•
INDUSTRIAL STOCKS SERIES
LOW-PRICED COMMON STOCK SERIES
MUTUAL INVESTMENT FUNDS
—
PROSPECTUS ON REQUEST
portunities and responsibilities in
loved
trying times of this
America.
We
our
be¬
therefore, all
the
more
need
such continuing
leadership from our Group Chair¬
men.
NATIONAL
SECURITIES &
RESEARCH CORPORATION
Association
really and truly become a
great trade organization. Our in¬
dustry has great and grave op¬
can
these
Teletype: NY 1-911
is
means
'■
Exchange
Telephone: HAnover 2-7900
BONDS: BOND SERIES
great leadership at the grass roots
It
Members New
SECURITIES SERIES
and
level in all the efforts of the IBA.
Vilas
NATIONAL
Group:
Wainwright
120
Broadway, New York 5, N. YJ
(2273)
33
Railroads, the ICC and the Investor
In
presenting its report at the
Railroad Securities Committee of IBA, under direction of Charles L. Bergmann
Annual Convention of the Invest¬
of R. W.
of
Association
Bankers
ment
America
carriers
ment."
L.
Although recognizing
ties
of
Bergmann,
Press-
prich
&
New
that
plete
reasons
generally, report nevertheless
warranted.
not
are
instances
com¬
Contends large per share earnings in
by share increases via stock dividends
of
national
transportation
policy is essential to avoid
de¬
a
terioration of the railroads to the
point
will
public interest
that they be taken
where
the
require
over
by the government." "Viewed
the
superficially,"
report
stated,
net income of the carriers is some¬
what
impressive, although "when
measured in terms of purchasing
power" the results compare un¬
favorably with net income of ear¬
lier years. Acknowledging inves¬
tor apathy toward rail securities
the report,
the opinion
generally,
expressed
prices
prevailing
for
road income bonds
when
rail¬
unrealistic
are
funding
railroad
is
given
to
their underlying strength.
holders.
raised
offering
about
additional
its
to
Except
One
manner.
for this
stock¬
new
no
undertaken.
was
In
short, it is evident that the in¬
dustry has financed a relatively
small part of its capital expendi¬
tures program,
relying instead on
earnings and depreciation for the
part
greater
the
of
necessary
tificates will have been issued up
to
the
date
of this
report and
it
is likely that the total of this type
of
financing
approximate
$300 million for the full year. In
addition,
a
conditional
been
may
substantial amount of
sales
agreements has
negotiated
with
various
banks,
insurance
companies
Investor Apathy
The traditional types
ment
other
investors.
Complete
in¬
formation is not readily available
the volume of conditional sales
financing, but it is estimated that
the total may exceed $200 million.
Because of changes in the tax laws
and in the tax position of indi¬
vidual railroad companies the so-
called
"Equitable
Plan,"
which
described in last year's Com¬
mittee Report, has not been em¬
was
ployed to
the
any
large extent since
$33,347,000
was
issued for
While
discrimination
some
companies,
many of these reorganized carriers rank among the best in the
industry when measured in terms
of operating efficiency or rate of
growth. In spite of this their in¬
come
bonds
sell at
sharp dis¬
between
necessary
counts from their face value and
offer
a,
rate
return
of
substan¬
tially greater than that offered
by most other acceptable types
of securities.
::
split-ups.
in need of funds
can
secure
reasonable cost. The
a
the
cost
them
disparity
other
longto railroads and to
of
industrial
bor¬
money
other
of
types
bTa
well known rating agency,
These bonds
were
sold at competi-
tive bidding at an interest cost of
whereas
4.60%
bonds of public
similarly rated
utility companies
could be sold at the
an
interest
advantage of
road
time at
same
of
cost
3.60%, a disfull 1% to the rail-
a
borrower.
This is
a
striking
example of investor apathy toward
railroad
securities.
investor
in
and
railroad
the lack of
speculator
securities
interest
is
found in the low prices
many
ties stems from two main
to
causes:
the in¬
funda¬
mental problems that it is not a
good long-term risk.
(1)
conviction that
A
dustry is beset by
so many
The failure of investors to
recognize that in spite of the per¬
(2)
formance
industry
re-
railroad
to
creased
keep
and
as
problems
whole,
a
of
many
are
In
volume,
order
has
with
in-
Several
factors
':
be
to
properly
pre¬
pared for the transport demands
of
national
our
the
industry
large
defense
spent
program
unusually
for equipment main¬
sums
in
order
to
reduce
tion
Accelerated
privileges
tain
cars
the
to
a
amortiza¬
account of
the
level
which would
of
have
normal
ther discussion.
The ICC
and
R.
R.
Earnings
The Interstate Commerce Corn-
siuerdiion
would from their official income
require the carriers to exelude
of the industry's problems:
time it would appear
chSV™ww
railroad freight traffle for accounts those amounts by which
acceierated
amortization
of de-
At this
the
creases
year
1951
Will be approxihigher than the vol1950.
In
spite of this
mately 5%
ume
for
favorable traffic showing, estimated 1951 net income of $625,000,000 will be substantially less
than the $763,000,000 of net inreported
for
...
allowance
is
that
revenue
total
made
1950.
Even
farilitiM exceeds the normal
f
den/ecfation al^
SucT
procedure would have the
a
effect
of increasing reported net income.
However,
amount
inasmuch
of
the
as
accelerated
tion will be allowed
full
amortiza-
as
deduc-
a
the
fact
tion from net income for income
1950
in-
about
why the carriers' earnings
have declined this year.;
Mail Pay Increase
On
the
further
more
favorable
increase in
compensation
pay
to
and
January
made
1st.
part these
in
of
lost
revenues
general level ot lreIgM rates'
Income
Net
Inadequate
Viewed
superficially, net in¬
more
than $600,000,000
of
come
^
d°Ssfno} appear to be wbolly
satisfactory. It
with
the
come
of the
It
several
is
the
compares
average
preceding five
average
times
greater
annual
net
the
1930s.
bankrupt
In
most
railroads
instances
were
Underwriters
of the
and
Continued
Distributors
of
Investment Securities
bankruptcy proceedings and
further large modernization
pro-
Research
and
Advisory
Service]
Francis I. duPont& Co.
SHEARSON, HAMMILL & CO.
Members
New York Stock
Toundcd in 1902
,
.•••>
Exchange, New York
NEW YORK
CHICAGO
MONTREAL
LOS ANGELES
BEVERLY HILLS
PASADENA
Curb Exchange, Principal Security
NEW
and
ORLEANS
DALLAS
BASLE, (Switzerland)
MACON
MEMPHIS
Commodity Exchanges
EXCHANCE MEMBERSHIPS
One Wall
y
.
Street, New York 5, N. Y.
New York Stock Exchange
New York Curb Exchange
New Orleans Cotton
Commodity Exchange, Inc.
Liverpool Cotton Association, Ltd.,
v
New York Cocoa
Exchange
Exchange, Inc.
.
'
New York Coffee & Sugar
Exchange, InC<
Chicago Board of Trade
,
Memphis Cotton Exchange
New York Cotton
Midwest Stock Exchange
Montreal Curb Exchange
New York Produce Exchange
Angeles Stock Exchange
'
Offices from Coast to Coast
Los
Chicago Mercantile Exchange
.
than
income
on page
the
prac¬
years.
produced during the depression
decade of the 1930s. It provides
sound
of
un~
favorably
annual net in-
connection
reorganizations
because
°f the delay in ^u'ing a higher
eenerai ievei Qf freight rate<?
be
railroad
companies
that
were
bankrupted by the depression of
is
$75,000,000 to gross revenues, an
amount not insignificant by itself
but small by comparison with the
at which
essentially
are
issued
drastic
re¬
It
estimated that this will add about
railroad income bonds sell
securities
granted
was
during November
troactive
side, a
railway mail
in the open market. For the most
with
6Y2%
adequacy of the increases and the
delay in granting the full amount
finally
permitted
are
another
tax purposes, the amount of such
for
for
if
„
averaging
September 1st. The in-
vo
that
15% increase in freight rates.
a
The ICG granted a meager interim
increase effective April 1st and
late in August permitted final in¬
amount
^TnXrd^wSch
to
an
oraer
wnu.ii
in
es-
carriers early this year petitioned
for
earnings
been reported
depreciation poli¬
cies. This last factor requires fur¬
under
em¬
increased
were
creases.
To offset increased expenses the
and
facilities constructed have further
reduced
'
calator clauses in wage contracts
caused further; subsequent in-
cer¬
acquired
on
equipment
re¬
a
classes of railroad
many
reason
percentage of bad order
the
indi-
not subject to the full impact
earnings
pace
responsible.
are
vidual companies are capable of
above-average performance and
come
Another example of
of
thereafter
distortion will develop.
early
the year and the operation of
only a part of which
properly be attributed to 1950
operations, it is evident that the
level
and
years
ployees
can
failed
official in¬
attributable to wages. Wage rates
for
mail pay,
tenance
tically rebuilt before termination
early months of the year.
Long-term" debt in the amount
of
is
Apathy toward railroad securi¬
of equip¬
financing are practically the
devices by which railroads
only
and
on
some
eluded about $149,000,000 of back
minimum.
$1.5
ing these huge expenditures ap¬
proximately
$275
million
par
value
of
equipment trust cer¬
then.
have been continued since
Reasons for Investor Indifference
rowers is well illustrated by the
billion for the pur¬ recent sale of $14,950,000 Western
chase of new equipment and the
Maryland Railway Company mortconstruction of new facilities. As
gage bonds issued solely for rea part of the program of financ¬
fnnriinf* nnmn<?p<; and
mtpd
"A"
nearly
grams
funds.
term
During 1951 the railroads of the
United
States
will
have
spent
by
equity financing
at
the report herewith:
this
shares
common
between
Text of
in
company
$5,000,000
new
no
capital improvements
raised
was
but
purposes
for
money
however,
that low
many
consideration
or
the
The most important reason for
the decline in railroad income is
the increase in operating expenses
v
..
our
many
over¬
hauling
Charles L. Bergmann
five
verse
that low prices prevailing for
in
accounts, the reported earn¬
ings will be distorted upwards for
merely reflect small capitalizations and recommends "false impres¬
sions" be corrected
is made
ment
property invest¬
on
for investor apathy toward rail securi¬
avers
Co.,
asserted
"A
are
income bonds
York
City,
contem¬
come
is
Charles
the
"arbitrary and inflexible standard of rate of return
whose
Chairman
under
than by
Commit¬
tee,
reported
as
plated ICC accounting procedure.
Unless a tax equalization
adjust¬
Securi¬
ties
W.
would have to pay on net income
product of unrealistic national transportation policy. Says adequacy
of railroad earnings should be measured in terms of purchasing power rather
lywood,
Fla,. the Rail¬
R.
Pressprich & Co., New York City, contends that problems of the
at
Hoi
road
taxes the carriers will have to
pay
will be less than the amount
they
Exchange
42
91
The Commercial and Financial Chronicle
(2274)
the magnitude of 25
maturity at historical¬
ly low rates and thus insure rela¬
tively low interest requirements
on
the present
financing for a
rather long period of time. Taken
together, however, it is worthy of
note that the total percentage of
bond offerings in 1925, 1926 and
nancing
Continued from page 25
in
to 30 years
Sees More Underwriting
In Years Ahead
increasing manner to 1927 constituted about the same
through the issuance proportion that bond offerings did
of corporate securities.
And so in 1950.
tV>,
,r
our
industry should be prepared
Private Placements
to accommodate this growing de¬
Bond 'financing lends itself to
mand for public financing.
tention:
private placements. This form of
(1) The gold stock has expanded
Types of Financing
competition has injected a new
about 5.5 times since 1929.
The following tabulation pre¬ problem into our industry in this
(2) The active money supplysents the percentage distribution postwar
period.
Indeed, private*
demand deposits and currency in
of
corporate security flotations placements since 1945 have aver¬
circulation—has expanded about
aged approximately 40% of all
among bonds, preferred stock and
4 times.
common stock
during the some¬ financing, and as last year's re¬
(3) The velocity in turnover of
what comparable financing .pe¬ port pointed out the private place¬
demand deposits has diminished
riods of 1925-1930 and 1945-1950: ments of industrial issues alone
to about 50% of the 1929 figure,
expand, and it is not the intention
committee to debate this
question in this report. However,
a
few significant factors in our
economy are called to
your at¬
in
upon
fill
of your
the
an
gap
.
—Bonds—
-a-r.d
•'Com.
Pfd.
r';;
Long
(4)
vealed
Consumer spending,
by the figures -of
Gross
Short
Term
Term
63.3
7.2
15.5
63.6
6.4
12.8
14.2
67.0
re¬
as
5.0
16.5
11.5
1925—
1926
National Product, amounts to only
—
1927
-;/'•,
14.0
about $2.75 for every $1.00 of the
1928
45.3
3.6
19.6
31.0
active money supply as compared
1929———_
2't. 1
2.4
18.9
51.6
With
the
about
$3.60
during
average
1920's.
These
1945
■//
both
are
1947
-our
0.1
34.1
13.2
omy
1.0
20.8
20.6
in
1.4
12.4
13.1
at least the next four
five years
or
it does today. This might be ex¬
plained by the relatively low in¬
even
terest rates on long-term bonds
(f our economy develops in this at the
present time as compared
manner, the use of corporation with the prevailing rates in the
cash to finance capital expansion 1920's.
It could be reasoned that
might
diminish
very
substan¬ corporate management realizes
tially, and as it diminishes the that the current period offers an
present rate, and possibly
longer.
,
>
investment banker will be called
opportunity
to
do
long-term
fi¬
the
investment
do well to gear
may
underwriting
accordance
in
as
a
unfavor¬
and
sidered
by
should
un¬
be
then
and
us
of the
some
factors
our
with
con¬
.
,
Caution
..
Commitments Z
v
of
Before
a
word of caution
terminating this report-,
might be in or¬
der concerning stand-by commit¬
ments / while stock; Lights are out¬
standing. Now that the stock mar-I
ket
has
when
our
balance
cline should
a,
could
occur
stand-by
time
and
mittee closes
a
at
such
in
enhanced;
is
in
Earl
of
manner
The
and
offerings
common
the first
three years in the earlier period
as presented in* the above tabula¬
during
tion amounted to about the
same
proportions as they tiid last year.
This may be of some significance
inasmuch
it
as
could
make
the
present period somewhat compar¬
able
far
so
the
as
absorption of
Stock
new
corporate
say,
not
mon
Market's
stock
common
financing is concerned.
That is to
management
in
vanced
tively
1928
high
stock
as
and
was'
prices ad¬
1929
levels
to
rela¬
compared
as
with earnings and dividends. From
this point
of view the present
market
Hutton
W. Rufus
j
;
&
Co.,
City *'
Brent
Harold
H
Cook
Spencer Trask & Co.,
•
;//' New York City
W. Rex Cromwell
Dallas Rupe &
Dallas
fit
the
risk
Louis
in
as
dence
of
In
Clement A. Evans
Clement
Edward
it did
thus
the
for
with
ment
institutional
irritation,
Ilarry
complaint of
in
sented
our
of
porate cash is
used
up
A.
McDonald,
Jr.
Co.,
Cleveland
Stanley
N.
Pacific
Minor
Northwest Company,
Seattle
Henry Parish, II
Carl
M.
Loeb, Rhoades & Co.,
City
New York
strong
Frank
B.
Reid
Fulton, Reid & Co.
Cleveland
Eugene Treuhold
L.
business.
Murray
:
as cor¬
&
Co.,
City
NVard
Hill Richards &
.
;
;
F. Rothschild
New York
This improved outlook for our in¬
dustry takes two forms: (1)
MacArthur
Hayden, Miller & Co.,
re¬
industry as pre¬
of
previous
volume
W.
Detroit
reports
increased
Co.,
Los Angeles
in capital
certainly seems compar-..
middle, rather than "the
later 1920's.
in
Convertibles in Limelight
An
Corporate and Municipal Securities
important
feature
the
Rights -Scrip -Warrants
equity financing in 1951 has been
the
of
amount
convertible
ferred stocks which have
ISiet
f
of
pre¬
been is¬
sued.
Markets
to
in
This type of issue not only
provides a combination of quality,
Foreign Issues
coupled with common stock ap¬
preciation possibilities, but also
Institutions and Dealers
Corporate Stocks and Bonds
and
reflects
ment
an
to
awakening of
the
favorable
REORGANIZATION SECURITIES
manage¬
character¬
istics
HI R SCH
Members New } ork Stock
25 BROAD
a
CO.
Exchange and Other Exchanges
r
'
•
"
.
1
•
.
LONDON,
-
.
.
ENGLAND
-
K
;L-V
Kayser Building
Washington >6
Tel: National 2545
existing market, manage¬
ment seems to have become aware
Baltimore
Tel:
that
Teletype: N.Y. 1-210
'
-
Eye,St., IN. W.
2
Lexington 78G1
'*
-
.
,
.
• 1
»
.
I
1
"
208 Commercial
.
5-2317
ferred
Representatives:
GENEVA
Direct wire Service— New York, Washington
•
and
through
issue
at
a
in
effect
Members
can
New York Slock Exchange
convertible pre¬
some
.point above-
New
r
York
Curb
Exchange
current market quotations.
Until
level
to
are
—
stock
common
be sold
Building
Castonia, N. C.
Tel: GAstonia
JvJc ppNNELL & CO.
low the
STREET, NEW YORK 4, N. Y.
Telephone: HAnover 2-0600
1624
of this type of issue. Rather
than doing straight common stock
financing at a slight discount be¬
such
of
the
time
common
point
selling
than current
Baltimore
indicate,
or
stocks
where
on a
AMSTERDAM
as-the
a
Tel.' REctor
prices
much lower
amount
of
.
*=•■_' .v,
BROADWAY, NEW YORK 5
much .higher,scale.
BRANCH
price-earnings ratios
on
..
advances
stock
yield
basis, it might be expected that
increasing
120
general
these
an
con¬
254
Buhl
Park
Ave..
New
Building. Detroit,
York
—
Mich.— 1
.!•
'Galen Miller
look in order to prepare itself for
an
■ • ■; yt„
Kirkland
McDonald-Moore &
investors
yes, even a
-a
Hunt
Paine, Webber, Jackson &
Curtis, Boston
long as it remains,
will be faced with
competition of private place¬
—an
Jansen
Robert
years; and as
the industry
the
-
Jenks, Kirkland & Grubbs,
Philadelphia
several
next
Grubbs
Samuel N.
-
capital. We
main
M.
White, Weld & Co.,
New York City
dominated
total offerings of new
George
..;>/•
E.
nancing could be likened to the
corporate financing of the mid-
might -expect this condition to
C.
Jenks, Kirkland & Grubbs,
Pittsburgh
-
:
is evi¬
bonds
&
Ripley & Co.,
Incorporated, Chicago
M.
securities
when
Evans
Harriman
it might be ob¬
that present corporate fi¬
1920V
A.
"Company, Inc., Atlanta, Ga.
summary
served
Co.,
Chicago
While, at the moment,
inventories seem to be in
good shape, already there
Cross
Paul H. Davis &
1946.
dealer
J.
Sons,
able to the
Underwriters, Distributors and Dealers
'
Eastman, Dillon & Co.,
New York City
V
v
particularly eager to do com¬ years. However, there is a better
stock financing in the 1920's side to which our industry might
until such time
Basset
E.
New York
powers
private placements.
preferred
stock
K.
W.
effective date of
ment.
This would permit public
offerings to be made more in the
j
St. Louis
Sullivan)
being more
difficult to place. "Selling" is be¬
ginning to replace "order taking."
a registration
statement, but it is With the many new issues sched¬
suggested that the "ground rules" uled soon to be
offered, indiges¬
should be modified concerning the
tion could again set in.
20-day waiting period
and
the
burdening prospectus require¬
J:./, Summary
has
■
Newhard., Cook & Co.,
it
collapse
course,
years
'
COMMITTEE
;
would
that
a
larger
justified.
The
reasonable
' '
■
Chapin S. Newhard, Chairman
-
the event of management conten¬
tions with labor or the govern¬
ment.
aid-
INDUSTRIAL SECURITIES i
de7
a
(crime)
Furthermore it might be pointed
out that a relatively large stand¬
by commitment through the offer¬
permit the purchase of bonds for ing of rights on less than a foursinking fund on certain occasions to-one ratio increases the floating
at prices below redemption prices. supply rather dangerously.
This
(3) The evaluation of price by a also shall be considered in eval¬
free market for comparative pur¬ uating the risk entailed.
poses, is absent in the event of fu¬
A second caution is not to press
ture financing, and
the new-issue market to the point
(4) Private placement does not where it might
develop the allies of investors in
Com¬
Respectfully submitted,
time wheq
a
"
•
ment in the words of Gilbert and
(1) A few large institutional in¬
vestors may become dictators* of
corporate fiscal policy.
(2) There is no free market to
the report
so
Securities
the optimistic
on
ahead.".:"
ent time and therefore the under¬
seem
in'the flo¬
war,
develop
If
commitment
apparently
And
the Industrial
be-as
not
as
during the
this
peace
market.
stock
should
tation of bonds.
of
hangs/ in the
economy
reactions
sharp
financing
easily accomplished
vice, "Prepare yourselves for; ;a*
substan7 larger and more profitable under¬
two years writing business
past
between
considerably
financing
stock
very
during
and
more,
the
the
during
tially
or
advanced
work
common
will play more of a dominant
role,
and private placement of this sort
Stand-by
on
prices
higher,
profit should be
man¬
problem, of course, resolves itself
few, into "making the profit (punish¬
to the attention of industrial
,The SEC of
ESTABLISHED 1343
stock
this apparent* trend.
be called
agement. To ^enumerate
your committee suggests:
to accelerate the
Clark, Dodge & Co.
financing, corporate security flo¬
tations
will
aggregate a
larger
proportion of private capital for¬
mation, and (2) when, as and if
60 % -to 70%
'
at the
We,' in
business,
used
common
the
whole,
favorable
•
stocks.
be
securities.
73.1
i
might
straight
than
private place¬ writing/profit in such a transac¬
For the sake
tion appeared commensurate with
industry and also the econ¬ the risk. However, with the risk
of
ment
of
some
favorable
able factors
47.6
only a few "bench
0.1
6.9
85.4
1948,
:
.7.6
imarks" but it might be suggested
7.2
1949—,
80.9
0.2 "
11.7
that they could point toward a
1950—
2.8
12.4
70.3
14.5
7.5
1G.8
0.1
75.6
'1951———
much larger
economy
than we
*8 months.
Stave yet experienced and
such
expansion must be accompanied
It wil be noted from this tabu¬
by additional capital formation. lation that short-term bond fi¬
If these figures
are
indicative, nancing constituted a more im¬
such expansion could continue for
portant segment of the total than
are
issues
rather
operation a substantial loss could
develop to the underwriter. A few
of the total in recent years. From
years ago this risk did not appear
an
objective point of view there to be as great as it is at the
pres¬
have constituted
57.4
_
1946
vertible
Thursday, December 13, 1951*
...
2-7800
OFFICES:
Produce
Press
Exchange, New York
Place,
Asbury Park,
N. J.
?
,
Number 5072
Volume 174
.
(2275)
The Commercial and Financial Chronicle
.
.
Airline and Aircraft
Bankers-
headed
W.
&
both
to
danger¬
un¬
air-
for
wise
manu¬
and
facturers
airline
Henry
v» -nave
panies to vir¬
ignore
tually
Conu
the
to
obtain
The committee
public se-
they find it
Gurities market when
necessary
com¬
new
capital.
suggested that con¬
investment
bankers
to
the
possibility
of
achieving its objective via the
sideration be given by
equipment trust principle.
have
quire
the nexj
In
of
for
to institutional term
runs
loans and bank credit rather than
that
method of
some
1951 has been a good
The
manufacturing
division
Dec.
developed
Investment Bankers per¬
the
by
dicated
Trust device. As in the
Committee's
the
Division
The
in
manufacturers
aircraft
engaged prin¬
in
earnings. The air transport divi¬
sion has been slowly building up
Backlog:
1950
As
sales
result,
a
centuated by travel caused by the
Korean war and rearmament and,
ings have been excellent.
However, in spite of the
in
boom
Bankers
position to
Industry, the Investment
have
in
been
not
a
provide the industry with capital
necessary to finance the
expan¬
sion and the industry has had to
seek its funds elsewhere. The air¬
craft
manufacturers
have been
accommodation
securing
bank
loans.
capital
working
through
While the size of the
required
amounts
to
provide
finance
to
the
production is such that only gov¬
ernment action can provide
it,
the
industry could have
used In¬
Bankers in cases where
vestment
the manufacturer
assistance to the
indicated may affect ad¬
of
government
extent
at the
the
same
reaucracy
assume
a
industry.
profits allowed and
time provide the Bu¬
with
a
ready excuse to
greater control over the
The
Air
had
Transport
ac¬
in
bank
loans
guar¬
substantial
a
per¬
In¬
manufacturers,
airframe
12% for the machine shop
somewhat higher for
the specialties group.
ex¬
equipment.
A
Financing: The financing of the
added
be
the
to
Sept.
will
1951
30,
backlog. The indicated volume of
business has reached levels which
in
be filled within
obviously cannot
the
indicated
the
for
period, particularly
engine
electronic
and
The
will
and
presented
These
the
standby
that
were
remainder
eventually
ac¬
out,
available
It
purposes.
seems
these
for
likely
amounts
loans
to
are
be
made
the
by
with the Federal Reserve
assuming responsibility for a por¬
tion^ of the
loans and the loaning
paying the Federal Reserve
part of the interest received as
an ..Insurance premium. During the
bank
last
excellent
and
losses
infinitesimal
were
work¬
the record of such loans
war
was
total
the
with
remembered
It
used.
a
that
and
output
suffered
comparison
must
full
wartime
the
presently
projected amounts would have to
be. increased many times in the
event
of
aircraft
more
major
a
models
considerably
than the comparable
ment in the last
same
Present
war.
cost
war.
quantities
of
equip¬
Thus, if the
aircraft
were
ordered the dollar volume of busi-
it was
part of the working
and
Continued
effect will stretch out the present
million
1949.
in
the
By
dustry
the
of
end
finally
was
backlog
the
year,
offset
on
S.
ments
have
tional
the
position
facilities
its
modernize
did not
selves
facing
without
vious four years.
adequate
about
Plant
around
23%
in
Such a. volume
Account
$84
was
then
tion.
$69 million
increase
siderable
million—
of
government-owned
rather than
in 1949—but
represented
amount
new
a
the
con¬
As
a c
i 1it i
the
while the
earnings
those
from
New
Members
Stock Exchange
York
against 31% for
as
year
The
1950.
earnings for 1951 lor indi¬
Broadway, New York 5, N. Y.
120
even
may
of
Bell Teletpe NY 1471
Telephone: RErior 2-1600
Boston
Montreal
Rochester
Chicago
'
It must be remembered that
for 1951 for individual
year.
manufacturers
L. F. Rothschild & Co.
1951
sales may rise by 50%
companies will have wide
differences in comparison with last
construction.
aircraft
re¬
un¬
vidual
Following the Korean war out¬
break
first to
subcontracting
cross
first half,
actual
e s
of business
result,
a
last
decline
purchases of
f
part of
organize for piocluc-
to
volume of
over
from
that
industry
scramble the
and
securities.
and
the
quires
of current assets
cash
in
the report covering the airlines.
million
$290
The prospects of
further discussed
found them¬
expansion
finances
or
facilities. Year-end working capi¬
totalled
Investment Securities
business with the airlines will be
have
war
a
This
compares
equals the production for the pre¬
air¬
equity capital, the
manufacturers
for addi¬
equipment.
with the 1950
of 120 planes and just about
total
by
made
been
airline
backlog
improve
and
this opportunity and
the
on
postwar
in
able to strengthen its
was
ing new
up
195i, §76 units
of commercial transport, Were
ploughing back earnings and rais¬
being
pa go
Since that time, announce¬
financial
craft
on
—
order.
industry
period
as
year.
significance. While most of
great
and
period
longer
a
a
of June 30,
As
a
cumulative basis. This factor is of
U.
for
perhaps for
by the in¬
suffered
loss
postwar
handled
earnings
lakt war the aircraft
during the
luanuiacturing industry was prin¬
cipally
parts
60%
tractors from
WERTHEIM & Co.
Members New York Stock Exchange
.
of manufactured
being provided
ehJwiedcch
business,
assembling
an
about
with
by subcon¬
1884
other industries. To
fill the proposed orders on time,
the manufacturers will have to re-
,
.sort
again
tyforli. S/tod;
''
parts level.
industry- has
been
.
v
"
I
,
1
To date the
beset largely
by shortages of materials,
tools and
,/;
the
Stocks
engineering. It is likely,
profits
NEW YORK
way
to
should
being
reach
solved
the
•
Bonds
In
.Renegotialion:
1951,
Congress created a Committee to
see that
unreasonable profits are
made
not
V
date,
the
from
four
war
work.
members
.-
not
who
of the
represent
been appointed as yet.
^
'
.
Commodities
■■■■•v
voa</(Vff^,
b
c/f 'ew ^Vor/' 6, <s \( ^/.
fyer/:20, j\(
30
490A
Qtaanr
43,
«.AA ^J/.
To
the
Services have been appointed, but
a
Chairman from the Public has
Committee
'
and
levels
May,
•
cvry?
permitted by contracts in 1952.
-
'
Brokers in
machine
however, that by the end of 1951
-most of these difficiulties may be
on
/sat/try GxcAatif*
heavy subcontract¬
to
ing, perhaps to a 30-50% of manuiaclured
While
Chicago. Illinois
Connecticut:
*
* London, England \
Torrington
•
Hartford ]
Memphis, Tennessee (Cotton)
New Haven
*
Waterbury
Danbury
be
that at that time the
financed
loans
in
companies will have wide differ¬
ences
in
comparison
with
last
"epr.. It must be remembered that
a
of
as
banks,
As a result, no efforts
to
capitalize
the
program
and
may
not be adequate and may
have to be expanded further. The
made
expansion
on
partial
jority of the manufacturers do not
differentiate
between needs for
were
were
taken
with
In approaching
their financial problem, the ma¬
ing capital.
loans
commodations
facilities program.
facilities expansion and for
bank
revolving fund basis
September 3Uth, only
of business has
indicated volume
con¬
siderable part of this amount
Net
volume.
1949
8%
and
6%
progress pay¬
ments.
to
out
turned
a
$36.1
with
working
not beyond the normal
requirements. The
are
versely
1951,
30,
manufacturers
related
and
profit represented 4y2% of sales.
tal
on
Sept.
As of
aircraft
lion)
acquisition of plant and
dependence
to
equipment divisions. As a result,
a more realistic production sched¬
ule will be worked out, which in
capital
business
the
8%
(after taxes of $48.5 mil¬
increased to $62.6 million
over
profits
divisions of the Aviation
both
the
for
from
result, load factors and earn¬
a
22%
95
140
before
profit
time
between
continue to
present a problem from time to
time. The working capital of $290
million available at the beginning
tober carried a total of over $16
of 1951 was inadequate to finance
billion for procurment of airplanes
the production and expansion of
by
represented
as
87
possible
given the renego¬
last
that
at
been
as
similar
be
to
seem
reasonable
have
cluding ^Letters
of
Intent,
as
against $5.5 billion total at the
end of tne year. The current Air
Appropriation Bill passed in Oc¬
12 major
its
load
.factors
from
greater ^airplane
manufacturers
totalled
civilian travel. This has been ac¬ $1,388 million, an increase of only
as
to
up
(2) Advances and
directly
likely to be com¬
reasonable basis,
A
taxes
1952
be
tiation committees during the
58
soon
a
instructions
to
48
30,
the
following the outbreak of Korean
hostilities.
on
would
Korea_____
backlog of about $9.7 billion,
Manufacturing
the year 1950 were
pensated
are
people and
will deal
report
with each division of the Aviation
companies
1950
to
31,
will
it is likely to be a con¬
Committee.
Thus, the
war.
1951
As
structive
No. of Groups
31,
past years,
an
actual improvement
or
from the
by the
which
Oct,
haps by developing an Equipment
Committee
lar trends,
forces.
Air Force Strength
Dec.
cipally in filling orders placed
ever-in¬ prior to Korea for the moderniza¬
tion of the Air Force. The 1950
creasing backlog of orders for
military planes, with consequent business reflected very little the
expansion of production and in¬ large orders which were placed
receiving
been
and
done
was
centage by Government Agencies
and
secured
by a pledge of
Congress and therefore its
policies will have to follow popu¬
expansion program:
Prior
participation
in the financing can be
•,
aircraft
has
used
provide
This
Through
anteed
under
gauged
Date—
public financing. It is to be hoped
report;
for the Aviation Industry.
air
orders
be
can
Proposed
Industry separately.
The year
growth
Force
Air
further
purchases present following
equipment
thought
nations'
The
couple of years.
laying, plans
the
increasing
receiving
NATO-Pact
during
aircraft
additional
Following is the text of the re-
one
been
during the year has used
prosperity to pay off debt and orders to build up the Air Force,
Naval
Air
Arm
and
the
strengthen its position to ac¬ the
dustry
its
craft
(1)
be
may
to
credit
receivables.
that it was
and
Says this
be
not
had
needs
normal
,
contended
ous
could
two ways:
achieved via suitable equipment trust issues.
New
Co.,
Working' capital
great that
so
commodations.
participate in providing
may
funds needed by both divisions of the industry.
part of
Cohu, of Cohu
York City
whereby investment bankers
of program
ment
by
Henry
manu¬
that consideration be given to develop¬
facturers and the airlines. Recommends
ittee,
m
and problems of aircraft
progress
were
facilities
Government
wood, Fla., on Nov. 29, the Aviat on Securities
Coir
capital.
chairm-mned by Henry W. Cohu, of
York City, reviews
Cohu & Co., New
Holly¬
America Convention at
of
Manufacturing Industry
Aviation Securities Commi-tee of IB A,
to
the
Association
report
annual
its
In
Investment
35
•
*.
Merlrten
40
36
The Commercial and Financial Chronicle
(2276)
Continued
from
page
Sproul so rightly criticizes ob¬
viously provides no answer to the
problem that faces us. Our too
on
Banking
responsibilities in
our
time
a
of
hands, bewailing their lot, and
blaming everything on the Fed¬
eral
rainmakers.
There are, of
crisis?"
national
To provide
leadership we must
with answers that show
have faced up to the issues
be ready
we
in
involved
minded
realistic
and
Leadership
not
out
come
jntil
effort
make
of
It
is
not
answers
specific questions.
with
counsel
o
we
that
Rather I wish
and see if
stand to mold
you
ranks
our
the
be
miracle
a
Fall
the
Paris for
of
I
1952
Quite recently I
China
and
just
as
confused, just
has
said,
the
/
"Standing in Dead Center of
are
in
like the
center of
a
the
action.
If this
there
and
luck,
take
fellow
wouldn't
cried
portions
over
of
the
world,
challenge
we
as
a
of
labor
allies,
in
and
future
equanimity;
their
petty
business
with
some
reluc¬
as
efforts will be
behind
squabbles
the lines.
What, then, are our responsibil¬
ities as an industry? A negative
attitude has too long been prev¬
a
We
are
too
inclined
to
say
"The
public mind with
bad wolf." He charged
with the responsibility for cor¬
us
"big
but the
and
Montgomery
Street-
located, that is, in important busi¬
ness centers. But a truer picture of
our role in the economy would be
found
in
a
chart showing
the
yes,
thousands of in¬
banking Offices located
hundreds,
- vestment
the streets of smaller cities and
on
towns
nation.
the
throughout
These offices constitute a network
of
feeder
unlike
not
creeks
the
a
with
an
tional
modest
savings
vestment funds that vitalizes
done?"
Sure,
we
all decry
be
creep¬
ing socialism. But what have
we
our
incredible
challenge
our
'
the great
national
face
all
too
I
intelligence
with
the
Hoffman
platitudes: "Oh, there have
been crises before, and the human
has survived."—"The
race
defense
The
time-
worn
born and
be
die, life will go on."
here would
pride
any
the
to
Americans; it
simply not worth fighting for.
No! We base our optimism
is
as
she is:
the
If
this
is
role
our
and
a
Future.
clothe
our
and
industry
lubricates
this
statement of
valid
significance
in the
Unless
we
enjoy
hope, then we must
contribute the kind of leadership
of
our
profession,
are
in
above all
we
of
the
financial
opti¬
mists about the future and vitality
family
a
good
sense
of this
country.
Everytime we receive from the
farmer the profit on a wheat crop
we
to
take this money
yield
boy caught in
misdemeanor is long
Let us tell our own
the
people
large
just
system
of
and invest it
return—we are backing
more than our own competence as
investment men. We are actually
fortunate enough to
Here, I repeat, is the
task of that public educa¬
which
Association
our
segments of the national interest.
we
must accept the fact that
government
men
to
a course.
For
our own
say
a
nothing of the slave state
negligible. If in the
obituary of free
enterprise is written, and that of
our
industry along with it, then
we, the responsible leaders of the
banking
industry
at
the present moment, shall have to
bear a large portion of the blame.
Three Basic Affirmations
There
tions
labor
the
investment
three
are
which
can,
basic affirma¬
I hope, be
gratitude for
are
(1)1 affirm, firstly, that the in¬
with
vestment
industry should make
public recognition of its responsi¬
bility for leadership in this time
A
more
the
common
my
American birth¬
me
this tremendous
I
say
it
reverently—the
hope of mankind.
than
Investment Securities
Co.
Public
Members
New York Curb Exchange
Chicago Board
120
•
BROADWAY,
•
-
".'
of
NEW
•
Trade
YORK
<v,y-vs
a
5,
Pittsburgh
Boston
Providence
Chicago
Rochester
Cleveland
Toledo
Railroad
Municipal
N. Y.
scb0ellk0pf, hutton & p0mer0y, ing.
■
Private Wires
Atlanta
Utility
Industrial
Detroit
Toronto
Montreal
Youngstown
63 Wall
Street, New York 5
70 Niagara Street, Buffalo 2
BOwling Green 9-2070
Washington 8060
Teletype NY 1-2827
Teletype BU 122
Private
Wire
Between
Offices
heritage.
Whatever its faults, America is—
Distributors
and
atti¬
prob¬
right, for my heritage as a free
man
living in the most liberal,
the most stimulating political and
economic
society
that
human
genius has devised. You share
apathetic,
entrenched
de¬
fenders of "special interests."
crisis.
disinterested
more
another thought: that of profound
not
national
we
and
I
wish to leave you with a
sobering thought. As I stepped off
tjie
plane recently after three
weeks in the Orient, I had indeed
that sense of being at a sort of
mid-point between a pessimistic,
discouraged Europe and a restless,
seething Orient. But there was
try at large the fact that the in¬
of
confidence,
government
lems of the nation.
ac¬
bankers of America
a
tude towards
cepted by the majority of you, and
which may signalize to the coun¬
vestment
of
of
New York Stock Exchange
has
And, lastly, I affirm that
industry is willing to sit down
Here
Enlightened self-interest, if no
sentiment, would dictate
Underwriters
&
the
are
Telephone WOrth 4-4300
Pershing
of
what
the
free enter¬
in conference with other responsi¬
ble
groups
representing
other
other
such
accept the widow's mite—when
or
hiding in the wood¬
(3)
our
this country needs.
absolute cynicism on the part
members
in
system.
it.
proper
tion
on
suppose
an
other
ringingly
economic
atmosphere
of
shall inspire in
met
over-all economy, then we are
truly the Underwriters of Amer¬
ica's
Mr.
If we business leaders will take
the initiative in creating such an
feed,
and
of
framework of the socialist stated—
allies. It is
fuels
out
in¬
more
calibre
stressed in recent years.
our
future
to
of
material lot of the millions of
who
us
free people working out their
destinies in a free economy. And
dim
helped
con¬
prise has accomplished to improve
of
if this be
at
American
free country
a
am
errant
and
world
the conviction that America must
survive
an
past.
people
future
of
generations
time for
since
could leave
we
bad
some
I
soundness
hear
to
our
petty
s)ave state; it
a
heritage
a
with
of
life
to continue
want
the misery
us
say
the
come
some
continue to rise and set. Men will
But what kind of life? None of
of
of
shed like
will
sun
I
basic
like
would
dustrialists
easy,
ourselves
assure
the
industry itself.
scene.
poor,- even a
is
practice by
When
of
capitalistic system I mean, of
course, a
capitalism purified by
intelligent criticism from within
dangerous thing.
even in the
of the present crisis, to re¬
a
It
also
our
in
the
almost
3
Teletype NY 1-750
to
be frank
the
and
needs
•MHIMIIUUIlmiMlimiMlllaMMMIIMtMlltUUIMrMIIIIIIMMIH'
SECURITIES
vitiated
the
say,
the
on
to
loss
no
then, I
are
—is
arm
to the former, let us
of our domestic
organization ever
During World War II we
vast mechanism.
UNLISTED
We
optimists
requirements of our military in
various parts of the world — we
which
&
with
state
up
exces¬
indus¬
industrial
care
of
political in¬
our
stand
excess:
try in particular, the very possi¬
bility of
existence
within
the
gives us the
high level of goods and services
that we enjoy. We have the great¬
est
that
must
enough to admit that the Ameri¬
can
form of capitalism has been
vinced
can
free
a
we
praise and excessive blame.
for
peace;
stitutions
of
sorts
two
of
Here
and labor, too, have
intelligence and goodwill,
who are as sincerely interested as
we
in safeguarding the national
integrity.
industrial plants and
civilian
can
Street
productive use by industry
and governments throughout our
land. It is this steady flow of in¬
only took
"What
Main
of
the
into
and
lazy, too pessimistic, too
U. S. A. We
channel
bankers
investment
sive
concept
economy.
features.
is not
thousand rivulets and streams
avoid
As
•
that capitalism
adjunct to the
and
necessary
political
healthy enough to meet
the
even
a
American
forces
original vigor; that pur na¬
character is sound; our
economy
carries the flow
a
is
arming against war while sowing
America, which
not
been too
a
the
that
in¬
our
unshak¬
great nation have lost nothing of
their
in
of
tially sound
place
we
confidence
system of North
created.
indifferent to ask,
tough
LISTED
but
dollar
no
which combined to make America
great watershed
hopeless state of mind. We have
fool? Yet, too many of our busi¬
JMniiHiiMiHiiiiMmHiiiiHniiHiuiuiinii
able
impression still persists in
many
country is in a hell of a
mess." That attitude represents a
we
him
automatically
was
Street is Main Street,
spent
effective
his
of life to
way
of
the
the
face
tant
just stood
call
you
tarred
into the mighty Father of Waters.
It is in this
sense
that Wall
can
standing at deadtornado, who has but
to
is
no
States
it
ness—that
been
brush of big busi¬
government,
man
limited time
a
conflict
such
our
accept
alent.
United
extend
to
measure
Tornado"
Here
a
crisis
must
of
one
era
and the birtfipangs
another, whose ultimate shape
man may yet discern.
long
had
industry
with the black
united America. As equal partners,
con¬
end
by
other
fusing. There is a social and politi¬
cal unrest marking, as General
MacArthur
Street, U. S. A.
that our
actually Main
His point was, of course,
history,
vestment
is
are
My
as
Street
present
parallel
are
The
Street
too, seem to be
philosophy
of
tragic. If the America we know
and
love
is
to
survive, if we
different problem than in Europe,
but
is
Wall
that
the fact
to
tables.
But optimism without
including Agriculture. In a time of
have read—an altogether
us
this very
platform Hal Dewar called atten¬
tion
mu¬
joint enterprise.
(2) Secondly, I believe that the
free enterprise economy is essen¬
there
world situation is without
in
Just three years ago on
instead of being
.
which
for
places. Many of our larger
offices are in Wall Street, La Salle
national
brief visit served to confirm what
all of
U. S. A.
"calculated
called
Government, labor
advantage.
tually hostile, must recognize and
respect the intelligence and char¬
acter of the other partners in a
Eisen¬
General
essential liberties. '
distinctions. They are prone
see
this country divided into
three
powerful
but
mutually
hostile camps: Government, Labor,
and Industry in its broadest sense,
able to ob¬
Formosa.
has
hower
v
engaged in a
are
what
of
slave
motivated
conditions in the Far East—
Japan,
We investors
recting this erroneous impression.
group
a
was
Engaged In Calculated Risks,
There is much that we have done,
—
to
jf Western civilization.
serve
Street,
Street Is Main
lic
and industry,
•
the
Business leaders,
pervading
anxiety about the very survival
was
diamonds, not securities!
"vested interests."
financial
There
confidence in the is well represented. Investment
America, we ought our¬ banking leaders then constitute a
selves (like the nobility of revo-; national potential, a national trust,
lutionary France) to be buying which must be utilized to the pub¬
actuarial
Wall
within the larger
industrial group our own business
profound
risks"
people.
of industry, and
did not feel
we
associated in the
"special interests"
statements,
)ut rather in terms of a pessimism
irowing out of physical weariness
md. material and spiritual ex¬
haustion.
of
means
this
fools. If
or
be found in the ranks
acter is to
either
are
businessmen,
industrialists, bankers. Unfor¬
tunately, the average citizen iden¬
tifies our industry as one of the
annual
meeting of
Although
I had but little time, I did manage
to exchange views with men from
many
countries.
I came away
with a very distinct impression:
That the European situation was
extremely critical, not so much as
in
a
knaves
that,
voter. He credited his Admin¬
istration with being the protector
of tiie common man against the
in
was
simple
the
by
wrought
age
the International Bank.
•eflected
the American
we are not con¬
we
of
series
integrity of
and
the character
to
basically sound. If
vinced
We
America's Future.
of
if I may say so, the bondsmen
are,
representative proportion of the
nation's
intelligence
and
char¬
this free economy are
pitching at the level of the aver¬
understanding of this country.
the
a
public opinion and
Truman
President
real contribution to the collective
In
taking
shape policy. What a contrast
in the last Presidential campaign!
to
prepared
iive time and effort and make
not
are
to
within
leaders
must
writers
during World
executives
ness
cannot reach the common con¬
viction
ourselves as the
supreme optimists on the national
scene today.
We are the Under¬
should recognize
tremendous national
our
War II. But
American busi¬
ness is not providing the guidance
we have the right to expect. Busi¬
at¬
an
intension to ad¬
to these
my
specific
so
bankers
investment
We
for the most part,
much to
tempt to resolve these issues.
vance
contributed
who
others
and
manner.
public will
our
industry
ourselves
we
Hoffmans,
the
of
exceptions — the Paul
the Charles Wilsons
course,
Intelligent, high-
an
their
wringing
are
conviction that this
our
future of
must
by an enlightened op¬
be replaced
timism.
leaders
ness
pessimism
continued
long
expressing
nation and
negative attitude that Mr.
The
Investment
fiddled
have
We
Watched the fire.
and
Keep Public Informed
it?
about
done
21
Thursday, December 13, 1951
...
present
Number 5072
Volume 174
Continued
from
.
.
.
27
page
against
-
has backed
300,000 B/D
some
up
producible crude in the West
Mexico
Basin
and
of
Texas-New
100,000 B/D in the Rocky Mountain
production
latter
The
area.
should be available in the near future
been
has
steel
sufficient
as
Platte
pipe line
which will transport
Rocky Mountain crude to Midallocated
to
the
complete
West refining centers.
„
•
Iranian
Since the shut down of
+
deficiency. The PAD estimates
supply 280,products
000 B/D of crude oil and
for the
close the year with
and
inventories
products
current
the
remainder of
quarter
of
refined
million
522
of
and
barrels
crude
natural gasoline and
products) which compares
(excluding
other
inventories
with
of
barrels in October.
tion
be
would
million
560
Such
a
reduc-
equal to less than
40% of the increase in inventories
in the second
This
and
also
agency
third quarters.
estimates
that
assuming a balance between refinery output and normal demands, the United States
It is
,
apparent that
settlement
a
of the Iranian controversy and the
of
resumption
full • production
an important re-
would necessitate
within the oil indus-
adjustment
However,
try.
production,
both
domestic and foreign, is subject to
a
substantial degree of regulation,
South
American, and to a lesser
extent, Middle Eastern output is
controlled
As their
by American
concerns,
primary interest is in the
domestic market, it would be unrealistic
own
of
them
allow
to
counts
for
45%
over
Texas
of
the
United States production
Texas
Railroad
ac-
total
and the
Commission
©perated with marked
success
has
in
Louisiana
Commissions have
in
the
oil
market
would
not
be
The Independent Petroleum As-
sociation
mestic
7,755,000
of
estimated
demand
products
ter
has
will
B/D
1952.
for
reach
in
The
that
do-
Total
the first
total
of
peak
quar-
domestic
and export demand for the Oct.
1
to March31 period, which includes
ural
gas
Tennessee Gas Transmission Com¬
demand for nat¬
pany's extension across New York ural
gas continues to grow, the
State to a point of connection near
pipe line industry is faced with a
Pittsfield, Mass., with Northeast¬
shortage of steel in attempting to
ern
Gas Transmission Company.
meet this demand.
Most of the
accounted for 36% of the Latest indications are that Texas
projects of the major pipe line
amount
committed
in the
stock
total
Illinois
50 issues.
are
run-
for every million barrels
to
keep
pace
wells during
1952
subsequent years,
has established
The PAD
as
a
one-million-barrel-a-day expansion in refinery
facilities to be realized by the end
minimum goal
1953
to
a
meet
provide
begin to deliver gas
Chicago
will
from the Southwest to the
The important
normal
r e serve
31,
natural
100^
ever,
50,000
maintaining
of
While consumer
by dollar value.
position of petro¬
before. the end of the year.
area
growth
capacity
1951,
the
As of
market
total
Paso
basin
Natural Gas
Company's
line from the San Juan
area
in New Mexico to the
companies which had been
sched¬
completion in time for
for
uled
within their
enough steel to keep
Continued
on
page
gas
Underwriters
Total value of all
stocks was $96.4 billion dol¬
listed
of which
lars,
Railroad
19.5%.
Since
the fall of
upward
trial
trend
issues.
A
corrective
coinciding with
National
Chase
has
been
the
Dow-Jones
three
Bank
times
as
Bank
Stocks
Insurance
and
Unlisted
spring
Securities
read¬
a
justment of demand and supply
relationship, was followed by a
surge
that recently established
new average highs for oil equities.
Since 1940, the advance in oil com¬
mon stock prices, as measured by
the
and
move¬
ment from mid-1948 to the
1950,
Utility
Securities
Municipal Bonds
1940, oil stock
in a long-term
relative to indus¬
been
prices have
and Distributors
Public
Industrial,
oils accounted for
index,
great
Industrial
as
aver¬
and in the current year the
appreciation in oil stocks has been
over twice as great as the gain in
ages,
Laird, Bissell & Meeds
MEMBERS
YORK
NEW
STOCK
120 BROADWAY, NEW YORK
DU PONT
5, N.
95 ELM STREET
LINCOLN LIBERTY BUILDING
NEW HAVEN, CONN.
PHILADELPHIA, PA.
BUILDING
WILMINGTON, DEL,
EXCHANGE
Bell Teletype NY 1-1248-49
Telephone BArclay 7-3500
"'"v/
DIRECT WIRE CONNECTIONS
50 Congress
Street
Boston, Mass.
Crowell, Wecdon & Co.
650 S. Spring St.
Tifft Brothers
the Dow-Jones Industrials. •
1387 Main Street
This long-term
enhancement has
reflected the very great improve¬
ment in operating results. The 30
stocks comprising the Chase Na¬
tional Bank index reported net
TO
Tifft Brothers
9 Lewis Street
Hartford, Conn.
Schirmer, Atherton & Co.
Springfield, Mass.
;
.
Los Angelea, Cal. '/
•
•
earnings in 1950 that were 361%
larger than in 1940; dividend pay¬
gained 228%, and invested
capital, exclusive v, of
borrowed
money, had more than doubled.
The strong secular growth trend
ments
Municipals Public Utilities
U. S. Governments
Industrials
Railroads
Equipment Trusts
Preferred Stocks
Canadians
Bank
Acceptances
Bear, Stearns & Co
Members New York Stock
Exchange
Salomon Bros. & Hutzler
Members New York Stock
Sixty Wall
CHICAGO
BOSTON
CLEVELAND
r
Exchange
Street, New York 5,
bAtl
NEW YORK
38
Exchange
public utilities.
of
able to get
this winter have been
Arizona-California border to con¬
companies listed on
was $18.8 billion,
and compared
with $14.2 Pillion
for chemicals and $14.4 billion for
the
pecially stimulated and
drill
necessity
the
of
field pressures.
largest holdings as measured
Four of the first
five, and five of the first ten were
oil stocks.
In dollar value, oil
the
Oct.
$1,608.9
that
introduced to New
was
England following completion of
value of common stocks of oil and
of dollare.
estimated
Association, under¬
storage
ground
reported
companies
projects
major
American Gas
stocks in which
common
investment
4
44,000 wells will be drilled in 1951
as compared with 43,000 in 1950.
Wildcat operations have been es-
of
of the 50
9
naturally will depend in considerable measure upon the availability
of
materials,
especially
steel. The Petroleum Administration for Defense, through the National Production
Authority, is
exerting every effort to the end
that enough casing, tubing, drill
pipe, wire rope, etc., will be made
available, so that the industry can
attain its objectives,
A record to+al of more than
and
by
study-made by Aigeltinger & Co.
York Stock Exchange data.
gram
petroleum
a
basis.
supplied
12
Realization of the industry's pro-
to
is
143.0
!——
~^mms
and
on
evidence
a
company
continuous
equities
Further
a
investors
professional
been buying oil
have
indi¬
business
own
our
433-mile
with demand it will be necessary
unduly -prolonged.
of
that
cates
197.9
other
has
rience
million.
of
projects now.
planned will require the invest¬
Trans¬
ment of $500 million over the next
continental Gas Pipe Line Corpo¬
three years.
There is presently
ration's 1,840-mile line from Texas
stored in underground reservoirs,
to New York, and Trunkline Gas
about 350 billion cubic feet of gas,
Supply Company's 1,300-mile line which is
equivalent to over onefrom the Gulf Coast to its point
third of annual residential con¬
of
connection
with
Panhandle
sumption. All of this, however, is
Eastern Pipe Line in Illinois. Nat-,
not available for delivery because
El
of output
in the monthly quotas of those as compared with 22.1 wells per
States.
It
would
seem
likely, million barrels last year. The Intherefore, that any unsettlement dependent Petroleum Association
already ordered small reductions
high popularity of petroleum com¬
mon stocks.
In general, the expe¬
a
liveries during 1951 include
leum securities in national securi¬
"
drilling has not kept pace
with production; so far this year
there have been 19.4 wells drilled
and
continued
ties markets is evidenced by New
$??q8
ning 25% ahead of last year. How-
ply and demand. In fact, the Texas
the
to
million as compared with
$750 million in 1950.
In
varying degree practically all of
the
country's transmission lines
have shared in this growth. Major
new lines
which commenced de¬
?Z*
well
(lease,
to maintain
so as
published portfolios of in¬
vestment funds and institutional
attest
been
than
$1,000
The
investors
more
about
■
68,2
Producing
reasonable balance between sup-
adjusting output
a
their
operations to threaten the do-
mestic price structure.
of Total
»Amount
'\y'
slightly
at
estimated
Middle
situation in the
:■
storage facilities in 1951 have
the
of
outcome
the
to
There are a
for
which applications have been filed
with the FPC which are pending
authorization.,
!
;
/
The
development
of
under¬
ground storage facilities to solve
the industry's problem of meeting
peak-day requirements in cold
weather has accounted for an in¬
creasing proportion of the indus¬
try research and construction ex¬
penditures. According to the
dynamic postwar curve of expan¬
sion. Expenditures for natural gas
transmission and underground
Investor Attitude
percent
Europe
inventory position.
East.
the industry has embarked to increase refinery capacity and other
facditms and to provide for intenSlfl(;d drilling activity to increase
crude Production and reserves,
Magnitude of the expansion is seen
e 1951 total of capital exPcnddl!res esJln?ated a* so™e $?-'?
bllllon> ,wellr "J
of the 1950
aggregate of $2.45 billion and toppin§„ Ae P^e.vious spending Peak
$2.95 billion reached in 1948.
Current year planned capital out20 maJor ,c?mpan1ies(t>11^7
cently surveyed total yearly $1.61
bl!J10n; up
ur0n? 3
m
following rough breakdown:
,
can pro-
and
turbulent
Petroleum Industry Expansion
Confidence in the future of pe-
with 100,000 B/D
etc,)
through the first quarter of 1952 Marketing""!""!""
without endangering the domestic Transportation
vide
upon
the
years,
forward
substantial level of
number
industry
during the
year
will
another high record in its
though much will de¬
the availability of ma¬
year,
a
around $800
mark
speaking, match that for the cur¬
terials
close it can
a
several
looks
safely predicted that the growth
of the natural
gas
transmission
aromatics, such as benzene.
From all present indications, the
expansion in 1952 should, broadly
pend
1951 draws to
As
aviation gasoline
increase the output of the
and to
industry
continuation
expansion.
Transmission Industry Forecasts for 1952 place the level
of
construction expenditures at
for
be
of components of
.
,
Natural Gas
freely
most
been
have
com¬
pleted.
Although the 1951 level
pipe line construction expendi¬
tures may prove to be the peak
of
granted for additional production
exemplified by
f{0Vr~Jrear, Pr°2ram °" which
products to Europe to help meet
that the industry can
izations
been
has
area
San
the
serving
Company
of
pelling reasons encouraging con¬
tinued investment in oil equities.
certificates
of necessity allowing accelerated
amortization, though these author¬
rent
Francisco
replaceable resource, provide com¬
ably well in securing
1S bes*
output in July the United States
has decreased its imports from the
Middle East and exported refined
the
T
,
,
protection against infla¬
tionary trends
implicit in the
ownership of an essential and ir¬
the
will be enlarged.
& Elec¬
nect with the Pacific Gas
shelter
tax
industry has fared reason¬
The
the heating season, was estimated
at 6.6% over the 1950-51 season.
The Association's forecasts for individual products were an increase
of 7.8% for gasoline, 7.1% for
kerosene, 9.9% for light fuel oils
and 2.1% for heavy fuel oils. ; :
Military demand, although it has
been an important factor in West
Coast markets, accounts for only
an estimated 5% of national consumption.
of about
average
an
or
470,000 B/D.
Lack of transportation facilities
the
tric
and
and it is believed that
the program
industry,
provided by depletion allowance,
capacity made over the past
ery
five years
the
of
contingencies.
a r y
10% in excess of the
annual rate of additions to refin¬
Profits at Peak
barrels,
i 1 it
m
This is only
Industry's
Petroleum
37
(2277)
Chronicle
The Commercial and Financial
U
N. Y.
Privatt u/htt t*
CHICAGO
PHILADELPHIA
HARTFORD
SAN
FRANCISCO
,38
(2278)
The Commercial and Financial Chronicle
Continued
from
suits
37
page
for
the
will
year
be
held
export
before the end of the
gas
down by the effect of higher Fed¬
Petroleum Indulry's
Profits at Peak
construction
not all of the
completion this
pleted
Under
the
pipe
as
as
com¬
$456
Con¬
the
securities
The
are
tonnages which
ure
Of
the
claimed
PAD for the third quarter of
about
be
75%
observed
generally
by
1951,
million
million
that
of
the
has
1950
both
civilian
the
funded
preferred
common
common
importance
by
been
the
and
$45
preferred stock financing in
is up about 30% over 1950.
sources
ever,
plans
of demand for steel.
How¬
subject
curtailment
substantial
to
because
of
the
portion
The year has been an active one
in the volume of
It
now
financing under¬
appears
that natural
pipe line companies (includ¬
ing companies engaged predomi¬
gas
nantly in the- transmission end of
the business
as
distribution)
about
$420
distinguished from
will
have
million
of
the
other
of
total
financing
hand,
1951
The
as
issued
ural gas transmission
securities
continued into
ernment
should
established
for
the
June
to
the
effect
the
rate
In
base.
summation, the natural
line industry continues
pipe
be
at
While
gas
to
ac¬
will
MEMBERS
an
months, 957 wells
Alberta
wells, -78
holes.
of
York Curb Exchange
the
grant
ada
the
N. Y.
in
drilled
623
oil
*wells and 258 dry
October
rigs
110
a
Dominion
panies
decision
were
were
in
which
or
Canadian oil
CORRESPONDENT WIRES
reserves
estimated
are
1 Vz
at
cur¬
billion
.
developing the 5 billion barrel
erve
re-
minion
-
Houston
-
that
would
Cleveland
to make the Do¬
self-sufficient.
It is esti¬
mated
to
-
require
necessary
to
attain
an
this
goal
additional
in¬
vestment in the order of $1 billion
in exploration and
Oakland
development.
Currently, expenditures for these
running at
purposes are
rate
UNDifiH W11ITKRS
of
$200
an annual
million.
approximates
B/D,
Brokers
or
than
more
output of
'
areas
and
which
the
at
natural
Alberta's
fuel.
which
Special and Secondary Offerings
a
is
served
tankers and
Advisory Service
without
lead.
^
The
the
use
of
num¬
tetraethyl
-
National
Petroleum
Coun¬
predic-. cil predicts that the monthly avail¬
it involves ability of L. P. gas in 1952 will
be
tion
time
present
surplus
more
rate.
15%
facilities
2,300
to
than
Construction
has
special
over
of
the
for
plans
195,000
double
by
Great
is shut off
kept
pressure
in
service.
About
72%
of
for
been
totaling
have
suggested
Shields & Company
tanker and pipe line.
Several pipeline projects for the
Montreal
and
|
The PAD in the last six months
communities
alo^g the route, (c) east to
serve
has
approved
several
liquefied
petroleum gas underground stor¬
communities in Saskatchewan and
Manitoba and southeast to Duluth
age
where the iron
will store over
ore
industry would
also be supplied.
It has been suggested
that
are
plying British Columbia
State
of
Washington,
million barrels
Legislation and Regulation
natural source for sup¬
a
one
the
surpluses in the Peace River
gas
area
projects which, it is estimated,
of propane and butane.
and
while
the
There
was
no
important signif¬
icant
legislation affecting the oil
the industry in 1951. The important
Pincher Creek and those in the
south central parts of the Province
would be used for eastern
points.
unsettled
and
trade
issue
of
the
Tidelands
still
was
when
Toronto
is
another
matter
the
with
Canada
in
oil,
other
PRIMARY MARKETS
Lakes
during the
BANK STOCKS
announced
53,000
reached
construction
B/D.
INSURANCE STOCKS
definite
a
of
pipe
a
.
is
Corporate Dept. Teletype NY 1-1680
and
"■■■■'
,
BOSTON
TUCSON
HOUSTON
LITTLE
ROCK
already
LOS
BUFFALO
..
^
ANGELES
BEVERLY
ern
ican
under
under
plants
an
financed
A
i
V,
to
v
are
and
West¬
on
Institutional
Sulphur
operating
in
near
south¬
Edmon¬
■^1::.
GEYER & CO.
/
ton will produce industrial
organic
INCORPORATED
63 WALL STREET, NEW YORK 5, N. Y.
chemicals, from hydro carbons.
HILLS
Private
It is believed
of Alberta
will
Natural
Gas
that the Province
grant
a
■
Investors
products
$54 million Amer¬
plant
Canadian
Securities Dealers
important
way.
construction
Alberta.
-
;
of
chemical industry based
ern Canadian
petroleum
WHITEHALL 3-5300
"•
•
creation
extraction
■
PUBLIC UTILITIES
that the Interprovincial
Cities.
The
Office—HOTEL BILTMORE
P.
gas volume can now be moved by
tank
car
and
the
balance
by
pipe line might be extended to the
Twin
Members New York Stock
Exchange and
other principal Stock and
Commodity Exchanges
/
cars
L.
.
and
to ship Alberta crude to the
Pacific Coast.
It has also been
Uptown
cars
requirements, have bean added to the 10,000
line
•
and
pace
tank
plans have been made transportation of L. P. gas are
by several companies to pipe gas under consideration, one of which
(a) Vancouver and other Ca¬ would move from 10,000 to 20,000
nadian and U. S. Pacific Coast barrels
per day into the Chicago
cities, (to) east to serve Toronto area.
i
A 20,000 B/D fa¬
have
projects
stage
Municipal Dept. Teletype NY 1-1052
1951
transporta¬
purposes,
cility will be opened in the spring
and
Plans
NEW YORK 5, N.Y.
a
tractors, trucks and
year ago.
-winter months.
Commodities
44 WALL STREET
Re¬
as
make
gas
likely
as
propane
extremely high octane
ber
'
natural gas as
contain
of
developing rapidly.
Among the several advantages are
perfect vaporization, clean com¬
bustion, freedom from impurities,
permitted
-
.
«
gas
buses has been
com¬
operate the pipe
Refinery capacity within the
marketing area now amounts to
203,500 B/'D, about one-third of
Corporate and -Municipal Securities
Research and
be
the
P.
use
the
Congress
ad¬
journed. Approximately 70 bills
Potential production based on
The economic aspects of
supplying or resolutions relating to the oil
proved reserves is estimated at
the Pacific Coast are not a
prob¬ industry were introduced during
225,000
B/D,
which,
however, lem.
However, the building of a the Congressional sesrions and
cannot be realized because of in¬
line over 2,000 miles, considerable nearly one-third of them related
adequate transportation and re¬
stretches of which pass through to the Tidelands. Three bills
pro¬
finery facilities. Actual production
uninhabited territory, to Montreal posed
the
reciprocal
duty-free
currently
DISTRIBUTORS
Dkalkrs
will
difficult to
on
dis¬
we
to
reservation.
The head of Imperial Oil
Company's western division be¬
lieves tv ere is a good cba nee of
through
Pittsburgh
to
L.
use
motor fuel for
southern Alberta.
over
under lease
rently
-
now
cently,
lines and the markets to be served
tions
report
than last year when it
averaged
660,000 B/D. Over 7,500.000 homes
Government
as
to construct and
is
Spring
This growth has continued
unabated during 1951, and
output
is estimated at some 23%
higher
permit authorizing such export,
and the
our
ness.
ex¬
high namely, the Peace River, Pincher
operating, of Creek and eastern central and
barrels.
Harrisburg
the
record
a
2,500 wells are pro¬
ducing arid about 145million acres
proven,
RETAIL DISTRIBUTION
-
for
fields
are
Boston
Alberta Government
licenses
established
Apart from the
and 90 were wildcats.
In limited amounts now being made
Alberta alone, 48 fields have been* available to Montana for defense
Exchange
the
established, cussed the very rapid growth of
ruling is anticipated. the liquefied petroleum gas busi¬
through the Department of Trade
and Commerce will have to
grant
It
were
resulting
gas
In
210
which
New York 6,
a
L. P. Gas
In
provincial, national and interna¬
In the first tional situations. There are three
accelerated rate.
*
Broadway
be,
policy of permitting
a
porting of gas from the Province,
if gas is to be exported from Can¬
Oil
in
-
39
lished
industry has complished within, the limitations becomes the
problem of the Do¬
reimposed under our national de¬ minion Government through the
fense economy.
Board
of, Transport
'
Commis¬
McManus & Co.
Stock
would
"North America"
1951, although
ten
Midwest
shortly.
Canadian
reserves.
favorable
a
Development
of
the
Western
Canadian oil fields has continued
Exchange—Neiv
there
integrated
consequence.
where
rates
in
.
York Slock
that
or
30.
sioners.-'
New
made
of
period
Canadian
Joseph
be
recoverable
statements
record
an
outstanding achieve¬
1950. As with other industries, the
ment of growth. While the rate
pipe lines have had to pay higher of
expansion from here on seems
interest and preferred dividend
likely to be slowed for a while,
rates for new money raised since
primarily as a result of current
March of this year. Substantially
steel
shortages,
the
unabated
all of the pipe line financing this
build-up of demand from con¬
year has been for new money pur¬ sumers
provides a
background
poses.
'
/->;•-/ \:f' 'v..;;'
which assures continuing growth
Earnings progress of the nat¬ at the fastest rate that can
steel
shortage.
taken.
On
quarters
joint
increased taxes and other expenses exports when the Provincial
re¬
has reduced earnings to a level quirements
of
a
4,500
billion
below a "fair rate of return" on cubic feet reserve was
volume of debt financing in 1951
accounted for about the same pro¬
it is obvious that expansion
are
million.
months
Oil Journal reported the
creased
around
places it in a relatively strong
position in competition with other
12
construction of nearly
DeGolyer 4,000 miles of large diameter gas
1951, estimate as 13.707 billion cubic line could be avoided at a
time
were
prepared and released. As l'eet, of which 8,415 billion cubic of
intense
steel
shortages and
pointed out below, a number of feet was available for sale.
when the time element could be
As the Alberta Government has of distinct
companies have applied for in¬
$15
was
the
12
months'
financing in 1951
less than
total
for
had not been determined when the
considerably
when
that
earnings
$65
and defense segments of our econ¬
omy
fig¬
debt,
stock
aspects of shortage of
competitive pricing.
been
hoped
in
many
has
Power Commis¬
stock. The amount
stock
It
•
through invest¬
Of this latter
in
now
about the same amount.
These coverable
pipe line gas. The sec¬ sion refused to grant a firm-flow
comparisons, however, do not tell ond estimated t>at as of Jan. 1, export license of
Texas gas to
the whole story because final tax 195X, there were
11,062.8 billion Union Gas in Ontario. If a
'"North
rates applicable to the year 1951 cubic
feet proved and
probably American" policy could be estab¬
approximately $125 million is
represented
natural gas transmission industry's
in
bankers.
It may
allocated.
was
ment
deemed essen¬
tonnage
figures
privately, and
about $205 million issued publicly,
for the most part
tial.
1951
placed
screened through PAD whose job
it is to claim from the DPA the
are
whole
a
(are
.
approximately
1950.
Board
policy
for
whereby Canada
ended June 30, 1951, there was an :
At' the initial
hearings, which would supply the northwestern
lasted from Sept. 10 to Oct.
average gain of between 35-40%
4, two parts of the Continent and the
over the corresponding period end¬
estimates of Alberta gas reserves U. S. A.
the highly industrialized
ing June 30, 1950. A comparison were submitted: the first placed areas of
eastern Canada.
These
of net income for the same periods reserves as of
August 25, 1951, at hopes received a setback this
fall
shows that earnings were up by 7,811.1 billion cubic
feet of re¬ when the Federal
indicates
include about $215 million of debt
industry
line
year
with
A compari¬
from
steel end
of gross revenues of the major
progress) and the Board's recom¬
pipe line transmission companies mendation to the Provincial Gov¬
million in
trolled Materials Plan, steel needs
of
the
pared
Conservation
corporate taxes.
both
Hearings before the Alberta
son
com¬
will be
year
time.
on
for
schedules; however,
capacity planned for
year.
eral
Thursday, December 13, 195X
...
permit to
BOSTON
CHICAGO
wires
connecting
CLEVELAND
branch offices in
LOS ANGELES
SAN
FRANCISCO
Volume
than
174
Number 5072
lubrication
oil
fuel.
.
and
.
motor
One
the
of
lands
to
make
much a clarifying development which heavy increase in general taxa¬
tend
to
increase
the tion must be moderated by the
stipulations, including an should
agreement under;; which the pipe amount of natural gas available knowledge that this subject is by
Federal
raise
most
significant
to,,regulation has
line
company
required
be
capacity
could
for
10
purchase by interstate natural
means
dead
a
The tax
one.
of
it
to
Some
1951.
that by
on
39
current projects should
$1 billion by the end
and
year
.
broader
'
features related
(2279)
Commercial and Financial Chronicle
The
.
experts
believe
1960 petro-chemical plants
oil and oil products in world mar¬
(withopt gas transmission companies. The depletion allowances probably will will represent an investment in
recur from year to year.
In view the order of $6 billion.
to provide FPC has denied five applications
for a rehearing of its decision, but of the fact that the oil industry
The oil companies participate in
common carrier service for other
has made an outstanding showing
this
development in three dif¬
shippers of natural gas.
In any it'is expected that a court review
in earnings improvement this year
ferent ways: (1) indirectly as sup¬
long distance pipe line there are will'.be sought.
kets.
bound to be tracts of Federal
been
the
operation
encouragement
between
the
of
co¬
oil
major
companies in treating the problem
of
replacing
,
This
factors
this
supplies
was
of
the
of
one
in the skillful
Iranian
kev
of
solution
to
its
double
limit
as
to cost)
so
as
lands
along the route, and it seems cer¬
tain
these
that
new
In
while
Ad¬
Petroleum
the
August
most
other
industries' suf¬
pliers of the raw materials, (2>
directly, through chemical sub¬
sidiaries cooperating division, and
fered severely from heavier
ministration for Defense issued an
may
make
sary
provisions
uses
the
special
taxes,
protection
order restricting the sale of nat¬
of
existing
depletion
rates
a
(3) as partners with other indus¬
ural gas- to new house-heating
pipe line industry; To customers and large volume users greater target for future adverse trial companies in joint chemical
troduced on the subject of Natural
attention.1'■■•■X: operations.
■
Gas covering such matters as the date the authority of the Depart¬ within specified states and areas
Another matter which falls un¬
The oil industry's expansion in¬
right of companies to secure land ment of .the. Interior to require lying generally in the northeast
by condemnation for storage and pipe line companies to comply and central parts of the country der this < general heading is the to the chemical field is the logical
compression facilities, adoption of with the new regulations has not east of the Mississippi. A number government's intention to press a product of its extensive researchThe annual petroleum
of exceptions to the basic restric¬ program of development of syn¬ activities.
safety rules for pipelines, and di¬ been litigated.
A further development of wide¬
budget is in excess of
tions will tend to ameliorate the thetic liquid fuels from shale. The research
vesting the Department of the In¬
terior of authority over pipe lines spread interest in the natural gas situation in the case of communi¬ 011 industry has vigorously pro¬
$100 million, or about one-quarter
tested the wasteful and unneces¬
of
total
industrial research ex¬
crossing government lands. None industry was the decision issued ties
recently
converted
from
problem
by
A number of
the
industry.
measures
were
in¬
will be
strenuously opposed by the
natural gas
,
of these
measures
passed but will
probably be considered during the
next
does
session.
This
summer
Interior
by the Federal Power Commission
last summer to the effect that it
the Department of
issued
a
new
regulation
not
have
the- natural
gas
jurisdiction
over
production, pro¬
cessing and gathering activities of
manufactured
The
natural gas.
to
gas
consumer
for such
before
ability to expand their de¬
lines'
man¬
existing conditions
purpose. The Secretary
a
of the Interior in
pipe
from running away from the
materials and
of
under
power
designed to prevent
demand for natural gas
is
order
the
a
recent address
American
Petroleum
Institute expressed firm intention
Phillips Petroleum Co. The ques¬ livery capacity.
to go ahead with the program if
tion ©f whether or not the FPC
fects on natural y gas
pipe lines
A statute adopted in Texas this
has jurisdiction over independent
Congress will allocate the neces¬
applying
for
rights-of-way
year, r which" became
effective
■■C6.'
through public lands and reserva¬ producers and gatherers has been Sept. 1, levies a "gathering tax" sary funds.
a
matter of controversy
in the
tions. For many years natural gas
of 9/20ths of 1 cent per Mcf, ap¬
Petro Chemistry
Congress and
the
pipe line companies in obtaining Commission,
plicable to gas taken into pipe
In appraising the future of the
courts
for
several
years)
The
rights-of-way over Federal lands
lines, including gas moving in in¬ oil and
Kerr
gas business,
increasing
Bill, vetoed by President
were required to agree simply to
terstate commerce. The tax, which
Truman in 1950, would specifically
weight must be given to the dy¬
operate their lines as common
for some companies mounts up to
namically expanding petro-chemiexempted
such
activities
carriers in accordance with the have
a sizable figure, has been assailed
cal business.
Established only 25
Federal Mineral Leasing Act of from FPC jurisdiction. It has been in some
quarters as unconstitu¬
contended that many producers
years ago, the growth of this in¬
1920, but in most instances such
tional as applied to gas transported
have been' deterred from selling
dustry has been so rapid that sta¬
stipulations have not been consid¬
in- interstate commerce but this
tistics have never caught up with
ered as pf great practical impor¬ their gas to interstate pipe lines
question .has not as yet been liti¬ it;
for fear of being, regulated as a
Largely concentrated along the
tance, particularly since the pas¬
gated.
~
J
Gulf
Coasts
of
Louisiana
and
"natural gas company." The Com¬
sage of the Natural Gas Act of
Under various special provisions Texas, the petro-chemical indus¬
1938 giving to the Federal Power mission's decision in the Phillips
incorporated in the Excess Profits try is responsible for this region's
Commission its broad jurisdiction
case,
although representing an Tax law, practically none of the
becoming known as the "Golden
over the- interstate transportation
administrative
decision
as
dis,- natural gas pipe lines will be Crescent." The prewar investment
of natural gas sold for resale. The
liable for excess profits taxes this in the Gulf
region petro-chemical
new regulation requires the ap¬ tinguished from legislative action
year, and so long as existing pro¬ plants totaled about $65 million.
plicant for a right-of-way through or a court decision, was hailed as
visions remain unchanged the in¬ This
grew
to $750 million last
which could have far
reaching ef¬
.
penditures, and more than 15,00®
persons
formed
a
'
■;
the
2,00®
v-~
hydrocarbons
Petroleum
provide
some
.
,
now*
raw materials
of the nation's out¬
basic
for about 50%
Current
put of organic chemicals.
production of petro-chemicals is
estimated at 5 billion pounds an¬
nually and is destined to increase
continuously.
Whole
industries
are
founded on the products of
petroleum chemistry. Among them,
we
can
name
synthetic rubber,,
detergents whose production totals
about 1 billion pounds, annually
as
compared with 3 billion pounds
and plastics like vinyl and
polyethelene. Petro-chemicals are
also
widely
used in
synthetic
textiles, paints and other protec¬
tive coverings and pharmaceutic
of soap,
cosmetics.
and
cals
End products
Continued
on
page
be
On
in
of
producer
mass
items.
,
is
not
expected
to
heavily hit in future years.
staff its laboratories. Tne
in fact, trans¬
the modern refinery intco
oil technologist has,
the
dustry
the
increases
hand
other
normal and surtax rate are eating
line company
combined effect of
higher Federal taxes, the Texas
"gathering tax" mentioned above,
and
higher operating costs gen¬
erally has forced a number of
natural gas pipe lines to apply for
higher rates. Pending applications
heavily
into
profits.
The
rate
for
SERVING
amounted
increases
White, Weld & Co.
Members of the NetO
40 Wall
basis:
York Stock Exchange
IVe maintain active
companies
creases
applying
are
which
in¬
for
in
result
would
in securities
a
rate of return somewhat in excess
prevailed for
HORNBLGWER & WEEKS
^
Members New Ytri Steei
BOSTON
NEW
YORK
PHILADELPHIA
the
Exchange and ether Principal Exchanges
DETROIT
CHICAGO
PROVIDENCE
PORTLAND
generally somewhat
favorable for pipe lines sub¬
more
ject
Telephone: Dlgby 4-6600
to
than
in
the light and
of most of
utilities under state regu¬
lations, in that under the FPC
procedure it is usually possible
for
the
pipe line to place the
higher rates in effect six months
following the date of application,.
the increased rates being subject
CLEVELAND
BANGOR
refund
Chicago
Boston
such
to
extent
as
Philadelphia
'
Providence
New Haven
Amsterdam
London
may
.
C.s'i-
held not justified.
number of pipe line companies
ultimately
A
are
be
collecting such increased
now
rates
CoApcAxiium
jurisdiction
FPC
case
power
to
(Jmmican SeamiicA
Companies
is
increases
Street, New York 5, N. Y.
Natural Gas
number of years.
a
The machinery for obtaining rate
Underwriters and Distributors of Securities
of
standard which has
of the 6-61/2%
40 Wall
markets
higher cost of senior money, some
since 1888
-
.
Street, New York 5
recently
$106 million on
In view of the
to over
annual
an
DEALERS
pipe
UNE ERWRITERS
pending final determination
I of their rate
of
One
•
DEALERS
cases.
the
problems
Listed and Unlisted Securities
which
probably is a major factor in the
i consideration of rate increases is
the effect of the Commission's de¬
!
cision, discussed previously under
this heading, as to
its lack of
Complete Distribution Facilities
jurisdiction over producing prop¬
erties.
The question of whether
:or not the Commission will allow
Underwriters and Distributors
of
v
a
its
own
gas,
or
'
produced
INVESTMENT SECURITIES
gas
will include self-
in over-all
rate of
\ return calculations involves this
Dean Witter & Co.
j point and it remains to be seen
the Commission
how
the
'
to
CHICAGO
consideration of tax legisla¬
was made
reduce the statutory depletion
tion
NEW YORK
will handle
problem.
In
BOSTON
the
allowance
usual
effort
related
to
tion. The effort was
assurance
oil
i-
MEMBERS
NEW
which may be obtained
the fact that depletion rates
were
maintained in
the face of a
YORK
STOCK EXCHANGE
HONOLULU
and
SAN
NEW YORK CURB
STOCK EXCHANGE
SAN FRANCISCO
produc¬
defeated. Any
from
'
'
Private Wires
Direct
field nrice cost to a company for
other leading
FRANCISCO
SEATTLE
EXCHANGE
Security and Commodity
LOS ANGELES
PORTLAND
EXCHANGE
EXCHANGE
LOS ANGELES STOCK
STOCK
Exchanges
NEW YORK
HONOLULU
BOSTON
CHICAGO
4Qt
40
(2280)
The Commercial and Financial Chronicle
Furthermore,
Continued from page 39
Petroleum
increasing num¬
companies are
entering the petro-chemical field
ber
anesthetics to TNT.
has shared in the
benefits created by petrochemis¬
try through the availability of
cheap synthetic ammonia used as
from
Natural gas now pro¬
vides about 50% of the synthetic
a
fertilizer.
ammonia
output and
com¬
upon
pletion of projects now underway
will supply 75%.
that 68% of the
It is estimated
in industrial
increase
natural
gas
the past five
attributed to the
petro-chemical
industry,
which
consumption
over
be
can
years
material
raw
fuel
about 600
and
b.c.f.
both
as
consumes
now
an¬
nually. This is equal to about 20%
industrial
of total
that
evident
is
this
rapidly
expanding demand for natural gas
as:
chemical
a
important
Lyon
serves.
National
F.
30
the
gas
"If
cents
talk
recent
a
worth
is
gas
Mcf in the
per
New York City area after 22 cents
for transportation,
it
mately be worth much
more
10 cents if utilized
the
will
near
ulti¬
than
source.
And
there is plenty, of political
agitation in Louisiana and Texas,
to retain gas for the use of indus¬
try that may be induced to move
to Louisiana and Texas and there¬
by help those states grow."
Our economic
characterized
era
because of the
is
frequently
the chemical age
as
increasing depen¬
dence of all industry upon chemi¬
cal processes or products. The ex¬
tent
of
cated
now
appears
this
dependence is indi¬
by the Department of Com¬
estimate that chemical prod¬
ucts of all kinds account for some
merce
that the im¬
at least is well
own
rest
nation.
.Collateral en¬
the manufacturers be able to over¬
James Richardson &
supply, and
■gions
as
New York
and
utility
is
trade
public
Conversely, the older in¬
to
Continued
a
tal.
wealth
The
petroleum industry itself
has not been a notably good cus¬
tomer Of the investment banker
its
large
earning
favored tax
a
constant
as
and
power
position have provided
inflow
cash
of
with
Bank,
Harris Trust & Savings
does
not
obtain
in
the
petro-chemical industry. We have
already provided substantial
amounts
as
an
chemical
industry
in
which has been earmarked for
1951
ex¬
pansion of petrochemical facilities.
of
the
time
be
times
many
wartime
figure.
that
At
during the current
some
rearma-
ment program, earnings may reach
a
level which may cause the air-
craft
manufacturers'
stocks
to
Should
common
that
provide
sell
at
higher
levels,
the
Government
of the
one
Relations:
difficulties
is
such that the C.A.B. has made re¬
troactive
the pay
agreement
Army
The
aircraft
which
limit
scales considerably under
As
ties.
result, the
a
companies
have difficulty securing adequate
labor and there is a high rate of
was
reached
and the Air Force
the training and
tl}at substantial quantities of light
may be acqmred.
Helicopters: The performance of
helicopters in Korea has finally
proven
their reliability and adapto
r.
different
....
and
difficult
Co*
&
Established 1920
20 PINE ST.
TELEPHONE
NEW YORK 5, N. Y.
Bell System
WHITEHALL 3-3414
aircraft
by
the
on
Government
plants
the
Engineering Departments
difficulty of finding
adequate personnel.
"standard
ment,
the
While
for all work.
on
Municipal Finance
be
A Constructive Service to
Municipalities
work,
revenue
against 1,256,727 in
1949, and the International Divi140,123 against 126,672. In
sion
the
first
6.7
months
8
revenue
of
as
1950.
fare
passenger's
Average
from
5jq
in
cents
Domestic
Lines,
.
_
1949
and
TntPr-
no
change in the first class
structive
in
reorganization
the
Municipal Finance
planning service for Cities,
governmental
assistance
on
units.
we
render
a
represents
01
a
growing
Numerous
coacn
air
t av
routes
new
States and other
This service includes experienced
started in 1950, and have been in
operation
through
1951
.
j
pending
..
average
distance of trips has also
been declining
a
as
result of
amounts
in
development of plans for
of
existing
debt
financing,
new
structures,
planning
relations.
SECURITIES.
We
WE
are
DO
NOT
BUY
OR
SELL
pleased to cooperate with finan¬
cial institutions and investment
houses.
Missiles:
Passenger
Other
Mail
1951
(8
mos.)
1950
(8
mos.)
con¬
1950
1949
$431.0
*
*
■*334.3
Operating
Net
Factor
Profit
Income
70.0%
61.6
$71.5
*
29.4
*
$447.8
524.1
62.7
62.6
$30.9
414.8
(year)___ $46.3
(year)___ 45.0
*Not
Net
Load
Total
459.8
59.1
24.6
13.4
available.
on
arrange¬
The
coming
a
more
Aircraft
Guided
vision.
In
1949, $28 millions
earmarked for
in
wceau.
important part of
Manufacturing
Di¬
were
guided missiles and
REGISTRATION STATEMENTS
ANNUAL REPORTS
•
.
PROSPECTUSES
PROXY STATEMENTS
the current fiscal year the Air
and all related documents
Force has requested $130 millions.
From
and
the
the
reputed
performance
desired goals,
it is likely
that this part of the business may
eventually
Wainwright, Ramsey <Sl Lancaster
70 Pine Street
New York 5, N. Y.
Telephone WHitehall 4-3540
lion-dollar
major
develop
level.
aircraft
companies have
a
into
Most
the
bil¬
of
the
manufacturing
participation in
the program.
ing
the
current
Established 1923
71 THAMES ST., NEW YORK 6
WOrth 4-2900
The Light Plane Industry: Dur¬
year,
the
Light
es-
millions)
Missile program is constantly be¬
the
financing of self-liquidating projects, and financial
public
Guided
.
were
ments could be made which would
con¬
pas-
s«gerj»lare represents ® gl<™ "f
volume
help to solve jthe problem.
As Consultants
7.72
from
.
.
the
on
national. Actually, there has been
-Revenues-
covers
differentiate
satisfactory
per
mjie declined in 1950 to 5.50 cents
personnel be used
to
the
1951
miles totalled
against 5 billion in
passenger
billion
Should the Services
willing
this
a
work
equip¬
require that
Services
as
TABLE I
(Dollar
non-classified"
only "cleared"
total of 1,461,770
a
passengers
Operations of 16 Domestic Trunk Lines
Another labor bottleneck has been
siderable part of the
Consultants
paid
from
$1.05 to $1.35 per hour, under the
Walsh-Healy Public Contracts Act.
in
carried
,,
TT
.
working
contracts
because of the
Teletype—NY 1-S3S
and 1949 is shown in Table I.
In 1950 the Domestic Airlines
operating conditions. However, the final C.A.B. determination. The
The
to raise the minimum wages
Bolasid, Satfin
reduce
to
between
cost of maintenance and replaceindustry has re- ment of parts continues to be very
cently petitioned the Government
'
*
turnover.
the
for
the
"subsidy" factor.
'; /'
A comparison between the op-
covers
other industries in certain locali-
BONDS
reductions
rate
companies
major
the
a
controls
a
pansion in the earnings has been
ments. Since the postwar period
the business has been able to
digest the large finished plane
inventories which hampered production for sale in the intervening
years.
However, at present there
is consistent increasing demand
for light aircraft in agriculture,
forestry and other land-patrolling
which
large number
of trained personnel yet it operunder
load
additional
any
to
Plane Industry has been receiving erations of the 16 Domestic Trunk
increased business both from the Lines for the first eight months of
Civilian and Government depart- 1951 and 1950, and the years 1950
yard- the
of
the
labor.
once
development of personnel for this senger rate since September, 1948.
industry work, and as a result, it is likely The decline in the average pas-
One
which
over
industry requires
ates
MUNICIPAL
is
sticks used in renegotiation.
faces
1951
the breakthis level is
beyond
large extent to net
before taxes. As a result, the ex¬
Manufacturing Industry
would
ness
Labor
1920
factors
level, and
passes on
tal and the funds provided by tne
condition
The air travel created by
war has
pushed the
Korean
reached,
35
page
the
outside
the
slowly
been
has
the
break-even
load
following
the
postwar
load
important percent¬
age of the new capital raised by
normal growth.
capital the oil in¬
dustry has required has been ob¬
tained to an important extent di¬
rectly from lenders. However, this
What
to
traffic
slump.
materialize, it would
companies with an
opportunity, which should be
taken, to raise additional equity
capital in an amount adequate to
pay at least for the expansion of activities, as well as a good busifacilities
program.
Such action ness for executive aircraft. Exshould also prove beneficial in the perience in Korea has indicated
determination of profits allowed the
desirability of using light
on
the business, as the relation planes for artillery spotting and
between the companies' own capi- air reconnaissance.
Recently an
which to finance
civilian
reaching
factor
Kenneth V, Zwiener
Airline and Aircraft
is of primary in¬
new
Houston
Durst, Inc.,
1951
year
operations. The gradual growth of
Underwood, Neuhaus & Co.,
■
,
as
the
requires
continuous supply of new capi¬
of
New York City
Milton R. Underwood
Chicago
from
profession,
our
creation
Riter & Co.,
of 1950 and
date have continued to show improved airline
the
even
Certainly, this changing indus¬
terest
The closing months
—
bly be threatened with economic
panorama
Air Transport
City
Wesley A. Stanger, Jr.
Los Angeles
dustrial centers, dependent on ob¬
solescent processes, must inevita¬
trial
New York
a
being
forces.
and
deterioration...
is
Dominick & Dominick
NATURAL GAS
Wagenseller &
City
John W. Spurdle
and
business
other
services.
Smith, Barney & Co.,
New York
William S. Hughes, Chairman
for
need
attendant
City
Winfred II. Perdun
SECURITIES COMMITTEE
re-
there
being
into
come
the
created
industrial
new
large amount of
placed with the
producers, and with the companies
in
the
development
stage,
for
equipment of both the medium
size rescue working and evacua¬
tion models and the larger units
fojr
transporation
of
fighting
meantime,
orders
Katzenbach, II
White, Weld & Co.,
■
Respectfully submitted,
AND
the
L. Emery
great future.
OIL
come these factors, a major sales
territory would be opened up. In
Sons,
Winnipeg
financing.
Perhaps the most startling sta¬
tistic of the petroleum chemical
industry is that it consumes only
1% of the total petroleum output.
terprises using the basic products
of petroleum chemistry naturally
gravitate toward the source of
City
Noel M. Fowler
a
of the
high and until this can be over¬
come, the Helicopter is likely to re¬
main an expensive product. Should
Corp.,
raw
to
or-
on its way toward
If our imaginations require stimu¬
specialized branch of lation we
may consider the im¬
the petroleum industry. This de¬
plications of Dr. Conant's predic¬
velopment has far-reaching eco¬ tion that
by the year 2,000 70%
nomic significance. It is a major
of petroleum products would be
reason why the expansion of in¬
used as raw materials. Assuredly,
dustry in the South has been run¬
today's "fabulous fraction" has a
ning more than 40% ahead of the
becoming
re¬
of Chase
Terry
in
Bank
commented:
around
for
undedicated
of
owners
material has
raw
implications
provide their
New York
have required public
portant organic chemical industry
including 'transportation,
use
boiler fuel and refinery consump¬
tion.
It
it
George E. Clark
Adamex Securities
exploit processes
which are a logical extension of
their present business. These, too,
20% of total industrial production.
And
to
materials
Profits at Peak
range
an
industrial
either
Industry's
Agriculture
of
Thursday, December 13, 1951
...
71 CLINTON ST., NEWARK, N J.
MArket 3-4994
Number 5072
Volume 174
.
.
.
The Commercial and Financial Chronicle
(2281)
the
to
Thus, the difference between the
of
true progress on a short
present replacement costs of the
may
becoming apparent in the inter-
period basis, but comparisons of
aircraft and the amount at which
difficulties
national traffic.
figures
tendencies
Similar
are
the
they
lines
is
passenger
It
likely that in
seems
.airlines
mile traffic.
1951 the
finally surpass the
may
Pullman traffic.
The
operations
gains
continued through
non-passenger
have also scored impressive
and
1950,
1951.
millions
In
of
miles
ton
carried
by Domestic Airlines, air
increased from 40 in 1949
mail
to
46;
from
airlines
19
to
to
24,
The
44.
services
at
to
36,
for
great
as
increased
mail
and freight from
6 to 15, but express
49
27
from
express
freight from 94 to 113. Inter-
national
dropped from
increase
1951
in
these
likely to be
is
is very
have
been
rate
age
was
the
and
ments
physical
economical
itself.
by
found
.
operating
1950
(in millions of
approximately as
presented in Table II:
This
pay^
subsidy. In cal-
a
necessary.
Under
present
conditions, the costs of new aircraft and complimentary equipment are considerably higher than
in the immediate postwar period.
TABLE
H
to
seven
of Airline Revenues
59.3%
$155
82.1%
$428
$10
37.0%
46
Others
—
69
26.4
16
58.9
34
•
8.8
6.5
20
7.7
—
1.6
13
Express freight--
2.5
17
6.6
—
2.4
$262
$522
Total
further
the
In
helicopters—partic¬
feeder territories. In such
pur¬
substantial
chase price. However, in practice,
the amounts are just about ade¬
quate
to
first
conditions
take
the
of
care
tion of the equipment, and make
of
aircraft is to be
Regulations
lines operate
ings
a
basis
building
which
fund
will
which
and
half
of
1951,
earnings
can
new
Air¬
The
need
turn
in
be made from
for
become
results,
the
1950,
re¬
Excess
The
be
expended
Profits Tax Exemption:
have three choices
Comparative Figures
on
page
on
Airline Finances
Current
Current
Assets
Liabilities
Working
Capital
Long-Term
Debt
$98,429,000 $77,043,000 $148,017,000
130,112,000
73,907,000 135,843,000
175,535,000 81,048,000 139,654,000
earnings are used to
permit the purchase of equipment.
However,
the current boom
even
conditions
may
provide
not
the
the
opportunity to
lay aside enough funds to pay
even
a
relatively small part of
purchase
time
such
of
price,
and
at
should
in
acquisition, the fi¬
be stretched to
may
It would
Dealers
the
nancial conditions of the Airlines
a
critical point.
United States Government Securities
that this eventuality
receive recognition from
seem
State and
the authorities now, and a greater
weight should be given to these
factors in fixing the air mail l'ates.
Municipal
Bonds
Recently,
the C.A.B. differen¬
tiated
by administrative action
between
compensation paid for
the carrying of mail, and the sub¬
State and Municipal
sidy.
The Domestic Airlines
divided
Bonds
groups,
allocated
a
were
each
Newark 1, New Jersey
Telephones—Newark MI 3-4000—New York City BA 7-5928 Tele. NK 348
Federal Deposit Insurance
excess
the Domestic Trunk Lines owned
130
208
were
and
the
planes about
As of
about
were
576
commercial
on
point of view of operations.
likely that a move to jets
will be very gradual and slow.
Probably at first this may involve
the use of jets as boosters in pods
to supplement the present recip¬
rocating engines, and then perhaps
the development of a jet engine
which could be used interchange¬
It
PRIVATE PLACEMENTS
CORPORATE FINANCING
ably with the present one. This
conservative approach could be
disrupted if one of the major lines
Q\.
Stock Exchange
York Curb Exchange
Affiliates
a
major route.
Obviously, all the
competitors would have to follow
regardless of the economics in¬
volved.
5
Van Alstyne Noel Corporation
☆
seems
should start operating a jet on
Distributors, Inc.
Securities
the
SECURITIES
Delaware Fund
United States Government
order.
The present policy of the air¬
lines is to continue to acquire the
propellor driven equipment, as it
represents the most economic from
MUNICIPAL AND CORPORATE
\Jr JLaJLa
—SPECIALISTS IN—
Terri¬
acquired in 1950.
mid-1951
52 Wall Street, New York
2-2900
planes, the local lines 114, the
transports
UNDERWRITERS AND DISTRIBUTORS
New
HAnover
Equipment: At the close of 1950,
Corporation
torial 21. Of the total
'
1833
52 WALL STREET, NEW YORK 5, N. Y.
of this rate is to be con¬
International
Members: New York
SINCE
subsidy. The group No. 1,
consisting of American, Eastern,
TWA and United, is allotted $0.45
per ton mile on the basis of $0.34
revenue ton mile average cost fig¬
ure.
On this basis, the subsidy in
group No. 1 is approximately 18%,
and
compares
with the almost
95% subsidy in groups 4 and 5.
796
9
Harvey Fisk & Sons
certain
sidered
★
FOUNDED 1812
Member
seven
service rate. The amount received
NATIONAL STATE BANK
810 Broad Street,
being
group
in
★
into
In the past, the usual method of
financing the purchase of aircraft
has been through arrangements of
bank loans. Rarely have securities
been issued for that purpose. How¬
ever,
it would seem that a study
State
and Municipal Bonds
C. J. DEVINE & CO.
48 Wall Street,
Chicago
•
Boston
Cleveland
•
HAnover 2-2727
New York 5
•
42
m
recognized practice that
a
for
Airlines
Continued
TABLE
31, 1949.. $175,472,000
Dec. 31, 1950..
204,019,000
June 30, 1951—
256,583,000
to
plans.
of
charges
Dec.
action has
equipment according to announced
following
depreciation
no
Over the next three
of the
most
the
★
the
approximately $300 million
likely
are
finances
1950 and the first part
greater:
instances the
most
years,
1951 have shown good operations.
permit
equity capital, and it has
on
airline
an earn¬
should
bought, but to date
been taken.
An interesting study
difficult
factors.
fair compensation for the capital
Airlines with
$27
;
the
be
In
which
provide for
Finances:
up
acquired.
under
event
involve large capital expenditures.
loan
;
reserve
an
quantities of helicop¬
required and would
ters would be
provisions made for the acquisi¬
cluded
Local——
—International—
—Domestic—
Mail
for
years.
capital to finance the growth and
expansion of operations has pre¬
(in millions of dollars)
Passenger
foundation
services with
practical time period to from five
involved.
Source
the
discussions.
Obviously, within ularly between air terminals and the financial position improved
operating period
enough central port office—has been sat¬ but by $4 million. The actual fig¬
culating the cost of operation over that
funds have to be raised from de¬ isfactory and is being expanded. ures are shown in Table III. These
a period of time, a substantial
A number of shuttle service lines figures indicate the
heavy demand
amount has to be set aside for the preciation and amortization to put
obsolescence of the equipment the airlines in a position to ac¬ between airports and some central by equipment purchase on liquid
used. In the postwar period, the quire the new equipment. The city locations are awaiting per¬ assets.
A number of airlines have re¬
Airlines were able to acquire from present rates are being set up on mission to start operations. Should
the government aircraft at prices the basis which provides adequate these prove economical, helicopter quested accelerated amortization
which represented but a fraction amortization on the equipment as service could open up important certificates on equipment being
ment is called
indispensable at the time that
of
16 Domestic Trunk Lines. Yet dur¬
the
working capital increased by $7
An unknown factor covering the
million, but the long-term debt
include the pay for carrying mail, While the latter could allow a
much longer operative period, the equipment program is in helicop¬ also increased by $3 million;
and the payment for providing a
thus,
two former conditions limit the ters. Experimental short haul mail in spite of the excellent
service to the public, which is not
operating
tion of new planes when this is
rose
vide
wear.
1951, it was 20.91
breakdown
was
com¬
allowances for the
cents.
dollars)
by
petitive conditions, new develop¬
a
and
mile. For
1951 it
for
in
book item. The
life of aircraft is limited
in
apparent
are
funds, but an ex¬ ing the year, the financial condi¬
perience of handling second hand tions improved by only $9 million
equipment by small operators on with a reduction of $12 million in
relatively short-term trust basis long-term debt and a reduction of
is already a fact and should pro¬
$3 million in the working capital.
distorted, and
much as three
as
of
of
to 20.50 cents
revenues
be
may
four times the
or
no
19.48 cents per ton
The
actually
more
ment, and to set up a reserve fund
which could be used for acquisi-
for 1950 for all freight
September,
In discussing the Airline busithere is a very close relation
between government payment and
equipment. Government payments
ness,
even
the month
competitive, the rates
improving. The aver-
the first 9 months
of
indicate
represented by the postwar
While the freight
ness
II
Table
of their actual cost. Thus, the
amount set up to be depreciated
requires unusually low annual
charges. These charges in theory
provide the means to pay for loans
made for the purchase of equip-
rate as in 1950.
carrying busi-
a
in
equipment trust approach amounted to over $40 million and
advantageous.
Many net profits to $31 million for the
prove
creation of such
purchased by the Air¬
were
Pullman
and
difficult
generally
measure
1950, airlines carried about diminishing dependence of airof
combined airlines
and lines on government payments.
In
46%
in
is
It
tablishing "local" and "perimeter"
service.
41
Philadelphia
Cincinnati
•
St.
Direct Wires to
Washington • Pittsburgh
Louis • San Francisco
•
all Offices
-
42
(2282)
Continued
Continued from page 41
from
Railroads Indispensable
33
page
It
our
Airline and Aircraft
and the Investor
The average
earn-
ings method, the invested capital,
to
railroads.
contingent
and
fixed
for
cushion
comfortable
of
charges
ap-
ing
these facilities.
absence of
which in the
zation,
moderni-
for
expenditures
tation
a
under
to¬
would
be
false
impression.
large
per
result of
rate
policy is essential to avoid
deterioration of the railroads to
inaustry
equai
m
revenues
Because
taxaoie
a
ye
ductions, adjusted
nractice
In
less
'
.
is zero or
net
it
seems
folm
J
American and Eastern may
only
carriers subject to
that
Ko+u
be the
this tax
in 1951.
Respectfully submitted,
COMMITTEE
r-nhn
cohu
Coliu, Chairman
Cn"Now YoriTcitv
&
capital
a
co;f inew yolk cuy
Roger Cortesi
Auchincloss, Parker & Red-
and
credit
ancj because equity
is
industry s
readily
not
available,
large part of net income must
and
which
servjces
the
railroads
When
doubled.
than
meas-
financial needs of the carriers.
Because
the
extent
of
railroad
programs
is largely
geared
available
earnings
New York City
rather
York
Inc.,
City
Joseph A. Thomas
portation
service,
the
to
need
for
and
amount of income.
No other
corn-
petitive enterprise could long
vive
under
such
sur-
unbusinesslike
view
utmost
enterprise
and
concern
to
constructive
action
will
coming
and
attitude
#
justified.
-
opportunity and responsibility
an
to win
more
friends to their
Militant and
entations
cause.
straightforward
such
as
pres¬
made
one
re¬
cently
a
by a senior executive of
large eastern railroad are more
constructive
than
plaintive
ap¬
peals.
Frequently, in presenting
justifying revenue cases be¬
and
the
Interstate
At
City
indices
of
While
industrial
conclusions
production.
drawn
from
lems
Brokers in
which
beset
the
obsolete
for
policy.
Dealers and Dealer Banks
tion
their
discuss
not
of
policy
in
rail-
is
reasons
largely outside
which
large
shippers and travelers
and
deserve
measure
capacity
of
depends
the
on
carriers
in
financial
not
to
improve
regional problem. A westindustry ' directing a ship¬
a
coast
ment
the
final
is
the
traveler
too,
link
the
in
train.
the
destination.
If there
chain
discredit
try.
is
of
the
to
service
senger
seaboard
adequacy
with
concerned
So
eastern
the
to
it
of the
by
is
companies
should not view
more
per
in
one
pros¬
region
with detachment
the
problems of the less
ous
companies in another region.
Rather
it
should
be
effort.
to
It
well
may
promote
ordination
prosper¬
viewed
problem to be solved
as
of
a
by mutual
be
necessary
consolidations,
re¬
stocks. In
to
entire indus¬
Managers of the
perous
pas¬
weak
a
redounds
duplicate
co¬
services,
overhauling of rate division
prac¬
tices and special compensation for
iuiiiuh i n mi i mn m
We
are
buyers
OF
the
detail
transporta¬
wilh summarize
but
are
earnings
common
national
our
con¬
comment,
companies
large
very
in
national
transportation
In the interest of brevity,
will
we
errors
*
but
preceding
railroad
on
it
railroad
industry.
These
problems
are
caused primarily by the continu¬
ing effects of an unsound and
Municipal Bonds
the
porting
share
time
same
to
many
such
appraisals may not be en¬
tirely accurate, they are indicative
of some of the fundamental prob¬
the
trast
results of
operations,
Commerce
Adequate
efficiency. The main- other forms of transportation and
tenance of a high level of operating the failure of the railroad traffic
efficiency depends upon continu- index to keep pace with other
increasing
their plants. This is a national arid
Railroad managements also have
carriers overdo
a
viewing the
demand
pessimistic
railroads
by
their control. The improving serv¬
be forth¬
toward" the
less
a
such
correct
apparent
that carriers in some regions are
less prosperous than others else¬
that
assurance
Commission, representatives of the
im-
In
toad
their
ice
of
of
managers
can
impressions
where for
measure
The
return.
this is
a
the
capitaliza¬
outstanding
either by stock dividends or stock
split-ups.
V-
The fact that
prevent.
cases,
are
large property in¬
earning only an average
companies
false
should
do
small stock
a
increasing number of public
and private groups are aware of
fore
philosophy,
free
of
with
most
the number of shares
an
operating
Lehman Brothers,
New York
what level of rates should be per-
#
Angeles
Co.,
investment.
property
Further, present regulatory philosophy apparently gives much
friends
their pleas of dire
vicious circle is
Faulty National Policy
poverty and imminent bankruptcy.
earnings are
Those
who
are
prejudiced
Such pleadings are appraised on
one of the essential requirements
against railroad
securities
will
their merit by the well-informed
for re-establishing railroad credit point out that
inadequate earnings
ICC ,but
to investors they are
and
to
interest
equity capital, are only one of the reasons for
Earnings depend in part on the their attitude. They point to the persuasive reasons for shunning
railroad securities.
maintenance of high standards of increasing diversion of traffic to
Donald N. McDonnell
New
than
created.
Lester, Ryons & Co.,
&
to
provements,
B. P. Lester
Blyth
of
rate
volume is
ured
in
terms
of
purchasing- expected to make <up the defipower> railroad net income com- ciency. This would seem to imply
Pares unfavorably with the net that in periods of declining trafincome ^ eadier yearg and doeg fi<j volum(J> rateg should 5e raised
not
provide adequately for the in order to produce the required
modernization
Los
of
have increased tremen- mitted to produce a reasonable
dously in the last decade.
Box amount of income.
Under
this
cars have nearly doubled in price,
policy, rates do not keep up 'with
Average hourly wage rates have the cost of producing the trans-
Kuhn, Loeb & Co.,
,
on
and
arbitrary
standard
mUst buy
path, New Yoik City
Hugh Knowlton
return
the
by
not
inflexible
be ctewoted to paying for capital weight to the volume of traffic
expenditures. The prices of goods ]n prospect when considering
more
AVIATION SECURITIES
Henry W.
the
jow
deductible if after certain de-
are
railroad industry today.
,
,
.
.
reg-
regular
Under all three options,
lowances.
mail
a
10
of
such
credit allowed a reg
ulated
In
share earnings
vestment
the point where the public interest
proximately $475,(500,000.
Such credit must come from earnings,
comparisons seem to imply a sat.
stated
in another way, the will require that they be taken
jsfac^ory
earnings
performance adequacy
of railroad
earnings over by the Government.
The
normal and surtaxes, plus 7% of but fail to
give proper recognition should be measured by the amount nationalization of this
country's
invested capital, after certain al- to the conditions confronting the of
purchasing power produced railroads is a prospect which all
snecial
special credit allowed
or a
pros¬
tion against a
A complete over¬
national transpor¬
our
high level of
a
perity derived from a large return
on property investment. This is a
incentive tor private enterprise
undertake the construction of
hauling of
a
Yet
there
conditions
indicative of
that
function
cannot
instances this is considered
many
demonstrated
economy
day's
no
calculating their excess profits
tax exemption.
been
without
Railroads, the ICC
Manufacturing Industry
in
has
BLOCKS OF STOCKS
them by a quotation from a prog¬
ress
Exclusively
year
issued
report
this
and
Water
committee
mittee
in
October
of
of
the Domestic Land
Transportation Sub¬
by
of
the
Senate
Interstate
on
and
Corporations whose position
better management, merger,
Com¬
Foreign
can
be improved through
financial assistance,
or a
broader distribution of their securities.
Commerce.
This report notes that:
"Four factors mainly have been
J.
J.
Kenny
responsible
Co.
petitors
DIgby 9-1882
the
for
improverish-
ment of the railroads.
NY 1-3082
the
of
First,
com-
railroads
are
subject to less restrictive type of
regulation or exempted entirely
Hill, Thompson & Co., Inc.
70 Wall
from regulation. Second, the rail¬
roads
have
been
prejudiced by
Street, New York 5, N. Y.
Wllitehall 44540
the subsidization of many of then-
competitors. Third, railroads fre¬
quently have found it impossible
to compete because, in the matter
iiiiini'iiiiiiiinmimmimiiii aiiiiminunniniuinnii"1
of rate
determination, the exercise
managerial judgment and in¬
of
itiative
UNDERWRITERS AND DISTRIBUTORS
has
been
curtailed
and
and
as
have
a
brought into existence
the issuance of excess
certificates."
.
The
report
"There
are
goes
on
that
of
attributed
dividend
GREGORY & SON
to
lack
ress,
INCORPORATED
poor
NEW7 YORK
Your
Teletype
NY
1
-
1691
"
the
of
believe,
financial dif¬
railroads
and
other
advantages-to
.
and their stockholders..
can;; be
W rite for our free booklet setting forth the Current Federal
and
State
Stock
Original
Issue
and
Transfer
Tax
Rates.
rates,
imprudent
overcapitaliza¬
management,
potential
to
v
unreasonably
an
of
prog¬
or
sources
the
of
all
RFCISTRAR AND TRANSFER COMPANY
50 CHURCH STREET
Established
15 EXCHANGE PLACE
New York 7, N. Y.
is99
Jersey City 2, N. J.
;
Committee
report
ested
economies
not
equity capital."
'
afford
which
concurs
in
.these statements and recommends
Telephone Digby 4-1 ISO
We
financial
policies,
of technological
tion,
absence
do
the
the
to
level
factors
railroads'
We
however,
high
other
the
condition.
;
further
underwriters, distributors, corporations
influence
ficulties
YORK, N. Y. AND JERSEY CITY, N. J.
.1
state:
RAILROAD BONDS
40 WALL STREET
NEW
'
•
INDUSTRIAL BONDS
in
loosely,
result excessive facilities
been
through
PUBLIC UTILITY BONDS
AS TRANSFER AGENT
Finally, the necessity
convenience provision of the
law has been administered
STATE AND MUNICIPAL BONDS
un¬
reasonably.
who
in an excellent
problems confronting
portation agencies.
are
inter¬
study of the
our
trans¬
BEekman 3-2170
BErgen 4-8525
Over 50 Years of Efficient and Economical Service
Volume 174
Number 5072
...
The Commercial and Financial Chronicle
(2283)
the
costly elements of serv¬
more
ice, such
One
down
in
the
for
potent
within
seen
seek
who
those
the
rail¬
country's
1
summary,
intelligent
private
the
groups
the
concerted and
public and
and
individuals
railroads
to
any
accrue
L.
W.
ests
of
New
Ch'm.
Bergmann,
City
to
do
and
one
Whiting, Weeks & Stubbs,
there
in
Sumner B. Emerson
also
that
of
New
City
George
Struthers &
Wood,
New
H.
York
&
New York
City
New
w.
City
blocks
&
the
to
that
Ilenry S. Sturgis
we
&
on
them
us
Exchange
we
going
are
to
can
offerings
the Exchange
are
if they
be.
We in the Stock Exchange now,
have just
Co.,
(Special to Tw: Financial Ciikoniclc)
question
members
this
study
to
and
Committee
a
several
today,
tell
to
are
whole
whether
us
they think the changes that have
in the business
occurred
that
FRANCISCO, Calif.—Hart¬
ley F. Hutchings, David C. Kuhn
and Norman L. J. Lloyd have be¬
Hooker
appointed
which
of
with
if
large
possibly
City
Three With Hooker & Fay
in
we
&
an
can
mind
we
are
t
Another
Co.
in
which
.
has
requested
list
our
on
J
to
nancial
most
arrived
basis
for
at
lost
sented
man,
With
his
and
after. As I
capitalism
has
three
ducer,
legs.
is
one
third
One
the
is the
&
is
each
one
have
become
of
those
and
groups
a
long
run,
over
200 companies
S;SAN
times, the
some
you
New
York
to
The
Financial
Chronicle)
with
has
become
Stewart,
Co., 216 Montgomery Street,
bers
of
the
Exchange.
been
San
For
with
Francisco
Stock
he has
Wilson,
Johnson
(Special to Thc Financial Chi.onicle)
commission
structure
commission
is
Meloth, Jr., is with Paine, Web¬
ber, Jackson & Curtis, 626 South
these
we
together.
is of
major importance, and
With Henry F. Swift
eras
in the past, the
;;
(Special to The Financial Chronicle)
capitalist, the saver* played the
as to whether they want to par¬
SAN
ticipate or not; We are going back leading part—in the development
FRANCISCO,
Calif. —
to those 12 companies and, since of a new country, for example.
James
M.
Anderson
is
with
they may have had some mis¬
Unfortunately, in the past few Henry F. Swift & Co., 490 Cali¬
understandings,! hope we will be years, the producer and the con¬ fornia Street, members of the San
able to get them to go along.
sumer have been so organized that Francisco Stock Exchange. He was
Anyway, that is an example of they are getting more than theii previously with William R. Staats
what we must do to get facts in share, probably, of the pie and the Company.
one
who is being
order to arrive at decisions and saver is the
The
producers
have
agreements which will enable the neglected.
only 12 banks and industrial
concerns
have indicated any doubt
sumer
in
certain
;
Securities
to
present
a
We
have
experience
deavor
already
had
in
cooperative
which
has
been
some
en¬
very
our
approach
to the
being
held
at
a
farmers'
to
organize
Dean Witter Adds
through
(Special
unions,
through
their
labor unions and through
management, which can look after
its
own.
The
SAN
bert
-
gains
favorable
consumer
competition
where
where
or,
is
protected
in
isn't
there
there
are
those
by
areas
competition,
monopolies,
But the poor
is
M.
Hanson, Jr.
connected
with
has
Dean
Spring Street.
impresses
me
B.
things
the
or
best.
worried
bers
of
over.
the day come
New
York
him.
He
(Special to The Financial Chronicle).
•
I would
like to
when the entire
Cal.--Mor¬
Bailey &
Davidson, 155 Sansome Street.
row
FRANCISCO,
M.
Blaine
is
with
of
of
have to work
on
G. H. Walker & Co.
of the things that
most in that connec¬
ESTABLISHED 1900
INVESTMENT BANKERS
DOOLITTLE & CO.
Established
Members:
New York Stock
MEMBERS
MEMBERS
NEW
NEW
UNDERWRITERS
Primary
YORK
YORK
—
STOCK
CURB
EXCHANGE
EXCHANGE
DISTRIBUTORS
markets
in
—
TRADING
JOHN
A.
Underwriting and Re-offering of -Investment Securities
Dealers in Local and Over-the-Counter Securities
Telephone Washington 4970
'
BUFFALO
★
★
★
2, N. Y.
Bell Teletype BU 46
NEW YORK
ST. LOUIS
BUILDING, LOCKPORT, N. Y.
HARTFORD and
Direct
>
Municipal Securities
DEPARTMENT
★
Private
Wire
to
TUCKER, ANTHONY & CO., NEW YORK
Exchange
BRADT
LIBERTY BANK BUILDING
RIALTO
Exchange (Associate)
DEALERS
securities
all
Midwest Stock
(ASSOC.)
of Buffalo and Western New York
MANAGER
Exchange
1919
New York Curb
CITY
San
takes
have
All
and
With Bailey & Davidson
old saver—nobody
about
what is left
the
&
mem¬
Francisco Stock Exchanges.
that
type
become
Witter
Co., 45 Montgomery Street,
SAN
see
of
to Thf. Financial Chronicle)
FRANCISCO, Calif.—Her¬
by
the government.
Congress,
which resulted in the capital
tax
able
re¬
assuring. We heard yesterday, for
example, about the Educational
Committee, the fine work that it
is doing in joint committees. We
also joined hands this past year
in
been
their
industry
united front.
One
Cal—Harold
&
Higgins.
con¬
study
a
&
mem¬
many years
Studied
have
asso¬
Scanlon
is the question of
We
San
j
.
area
and
Stock
Taylor
ciated
all three of them have
peace
—
become
FRANCISCO, Calif.—Har¬
W.
ry
im¬
to be
normal
Calif.
has
with
the Bankamerica Co.
and
(Special
may
in
in
though the information is
Chronicle)
Stewart Scanlon
portance at any one time, but over
some
Financial
Taylor With
country,
paramount
or¬
be¬
get
Exchanges.
He
formerly with Dean Witter &
Co.
history
will note that at
our
to
pro¬
consumer
periods in
have
Kendrick
If you go back over the
different
Tin:
the
of
was
which
the
E.
Francisco
saver.
of economics you
and
going
Irving Lundborg
Co., 310 Sansome Street, mem¬
bers
looked
tripod
a
is
Irving Lundborg
associated
healthy Ameri¬
a
is
it
if
FRANCISCO,
Frank
repre¬
interests
it,
see
can
will
to
SAN
whereby the
be well
can
that
me
they
program.
(Special
in this country, who is now
saver
the
some
cooperation
basis
some
but
successful
successful, then the big
hind
community and attempt to
work out
be
too
impor¬
to the entire fi¬
go
to
ganizations
the Securities in¬
having
unity, to
the
the
been
seems
attempted in the
groups
going to study it.
commissions.
ANGELES,
and
small
going on in that, too. We haven't
definitely decided that the present
With Paine Webber Co.
LOS
of
data
board, and
and
of
Exchange to get infor¬
We
next
successful
the
no
past endeavor
any
level.
Exchange
Commissions Being
previously with Davies
might add that
tell me, has re¬
t r y
:0.
■;
Basis of Healthy Capitalism
The
by
that subject and
on
'
"
■
assure
Stock
the
open
that
Fay, 340 Pine Street, members of
I
u s
'
it
such
are
ought to change
we
rules.
our
the San Francisco Stock Exchange.
&
Stock
are
past
I think that is
course,
It has been
saver.
healthy, if our, capitalism is
going to be healthy. In wartime,
the producer is the important cog;
sound
a
those
here
were
stock
secondary mar¬
have to take steps to see
James D. Winsor* 3rd
All
the
handled
Baker, Weeks & Harden,
associated
of
sell
and
that
ket,
come
in
are
that
Biddle, Whelen
Philadelphia
blocks
listed
maintain
of
New York
York
large
are
believe
Bank
K. P. Tsolainos
New
sales
Many people
direct, off the board. Those of
City
National
take
which
Kuhn, Loeb & Co.,
First
securities.
an
to what is
to handle the
way
those
created
as
d
savings banks and try to build a
strong
representation
for
the
full part
not due for several months yet, we
have already acquired complete
and
in the investment profession want
City
Percy ML Stewart
New York
uncertainty
best
of
Hickey,
New York
Board"
has
stock
of
of
area
making
stockholders there
our
statistics from
scale of insurance com¬
panies, pension funds buying large
-
with all the other
are
behalf
on
have not
just the first step.
dustry,
Stockholders
of
of
tant step is for
1,100 companies—that is, the
Exchange itself has — all
Even
large
George E. Richardson
Vilas
"Off
:L V- ,</
500 banks.
The coming into the market on
Stearns & Co.,
York
am
Transactions
Low
Bear,
I
n
Stock
that
;
Discusses
Merle-Smith,
V. Theodore
future.
fraternity.
Co.,
City >
George M. Grinnell
Dick
the
for
i
Stock
speaking now between the Stock
Exchange
and
the
Investment
York
action
the
some
we
Morgan Stanley & Co.,
...,
response on
the part
f i n a n c i a 1
community
mation.
joint program
a
-
a
parallel
down
where
areas
have to work out
./V
speak
of
one
to try to find out exactly
many
and
the
know
I
some
are
of
execu¬
heard
have
week
survey
ceived
fiat.
on
I
on
L
:•
how
Now
the facts
get
I
Exchanges—wants to
Securities industry.
being made at the present
that survey, they
industrial
an
to
in this country. I
in¬
coop¬
on
rely
can
or
this
rely
efforts
that
Securities industry will take the
leadership and go to the insurance
industry and the banks and the
Exchange—and
this great group in present¬
ing this united front to the other
are,
Brookings Institution
a
posi¬
a
Securities
get the
Exchanges, the NASD, the banks,
industrial
companies,
and
the
manage-;
in
are
a
must
what
From
Boston
first
sure
am
here that the
say
Stock
with
in trying to
problems. You all
in cooperation
not integrated that
where
tive order
here
objective.
the
to
York
join hands and play
The New York Stock Exchange,
by the board
by
In
we
company,
M. Biscoe, Jr.
Rowland
just want to
of the other
difficult to find out
facts
Survey
all
have
we
so
time.
is, that in an
which is in¬
out
the
that is
Ex-
are
we
same
they
so.
we are
eration,
Taylor & Co.,
York City
Kean,
Howard
But
or
because
way
Stock
these conflicts of inter¬
directors
dustry,
George A. Barclay
New
the
way.
ironed
are
tion
Pressprich & Co.,
York
of
company
tegrated,
SECURITIES
ment
SAN
that
familiar, I think, with
for example, want to do
another
industrial
COMMITTEE
Charles
floor
The only difference
Respectfully submitted,
RAILROAD
one
trying to get the
singular selfish consideration.
will
the
it
over-shadow
that
are
the
change,
transportation system. The bene¬
"
is
analyze these
one
on
as
fits
industry.
any
viewpoint; the back
office people, the people who are
national
our
find in
you
have
way,
con¬
adequately
of
similar to the influ¬
are
The salesmen want to do it
by
functioning
backbone
R.
tion
Exchange,
what
a
effort
enable
tinue
Stock
facts. It is
ences
will
the
within the greater financial com¬
munity,
nationalize
In
I
Unity in the Securities Industry
weakness
component parts is
ammunition
roads.
24
page
I
national
the
tion system because of a
to
from
New
is certain, a break¬
transporta¬
thing
of
Continued
terminal expense.
as
43
BRIDGEPORT, CONN.
PROVIDENCE
44
The Commercial and Financial Chronicle
(2284)
Continued
from
1954, when the first shipments of
high grade iron ore from the great
deposits lying across the border
of Northern Quebec and Labrador
begin to move over the railway to
Canada's Economy
Reaching New Highs
Line and by lake tanker.
Every
link in this recently constructed
major oil companies
urgent need.
will fill
its
an
now being expanded—by
Natural Gas—Estimates of the
pumping stations and by
total proven and probable gas re¬
looping sections of the pipeline,
serves
of Western Canada vary
by increasing storage capacity at
widely.
Alberta's
Conservation
Superior, Wisconsin, and by build¬ Board has held several
hearings
ing more lake tankers. Major re¬
at
intervals
over
a
period
of
finers in and near Sarnia, Ontario,
nearly three years to determine
are adding to their
capacity and a the extent of reserves before au¬
pipeline
Toronto
to
is
A
small
western
the
thorizing export of gas from
The
Province.
for
market
esti¬
has
Board
Province's
the
mated
30-year
crude,
but one of great signifi¬ needs at 3.2 trillion cubic feet.
is being found in the United Ranking consultants fix current
States, radiating from the Inter- proven and probable reserves at
provincial Pipe Line terminus at eight to 11 trillion cubic feet—a
Superior, Wisconsin. One refinery figure which development activ¬
cance,
is
stream in
on
now
another
is
liveries
Superior and ity is raising rapidly.
were
planned.
must
surmount
and
it
that
de¬
stiff
a
tariff
Five
some
is
be
to
hoped
therefore
of
Canada
States.
tariffs
and
Without
the
tion—two
companies may be
major contenders in
three
Columbia
in
west
pipeline construc¬
reach
to
and
kets
United
adjustments
as
the field of gas
producing and refining facili¬
ties
six
or
numbered
progress will be made
before long by way of integrating
the
It appears
likely that a decision leading to
the export of gas will therefore
not be long delayed.
recently made in
This export of crude
Michigan.
oil
Tanker
and
States.
to
eastern
mar¬
supply British
the Pacific
North¬
While it is not pos¬
and
St.
the
on
Law¬
to
way
ore.-
Financing for
railway, terminal facilities,
hydroelectric installations, etc.—
totaling
over
$150,000,000—has
been arranged
by the Iron Ore
Company of Canada.
Shipments
of the
crude
will
the construction of
Edmonton
joint
to
a
probably
by
be
This
number
a
the
natural
struction of the St. Lawrence Sea¬
resources
way.
pipeline from of. the
Vancouver.
venture
of
newest
West
to
markets
on
both
Iron
and
It may be appropriate, how¬
ever,
to emphasize the point that
Steel—By the end
aluminum
and
plant
at
and
cost
a
of
raising the output
may
be the world's
commercial deposit of il-
menite,
$160 mil¬
are
what
largest
in¬
power
of
from
6f
source
iron
and tita¬
nium.
the complete plans call¬
L
Chemicals—The
ture
of
capital
na¬
producers
of
expansion
among
chemicals
and
for
allied
products
makes it unrepresentative to, sin¬
gle out certain companies.
How¬
ever,
Canadian
IndustriesLtd.
ports of primary aluminum to the
United States have roused protec¬
tionist sentiment but,
putting fac¬
should be mentioned in regard to
tional questions
expand its lead, zinc, and chemical national output of basic chlorine,
output in British Columbia.
Base chemicals.
These and many other
metal companies in
Quebec, from similar
Noranda Mines down to the jun¬
iors, have been exceptionally ac¬
tive.
Recent reports indicate that
construction
may soon
or
more
of
zinc
a
major base metal
one
com¬
plans
are
products manufactured in Canada
refinery and, to
be undertaken with
expansion
greatly increasing the quantity
and
diversity of the chemical
our
a
certain extent, reducing
dependence
on
imports in this
industry.
development of the great iron
par¬
Pulp and Paper—Any summary
deposits in Quebec-Labrador ticipating.
of the expansion being carried out
availability of this strate¬
Mention should be made of the
by the pulp and paper industry in
gic resource to the main centers Allard Lake area,
Quebec, where Canada would include mention of
of the primary steel industry of Kennecott
Copper Co. and New the $20,000,000 newsprint mill bethe United States will depend to a
TABLE I
degree on how soon the Seaway
ore
and the
•
.
receives
A
Securities
a
new
light.
official development in
green
the tortuous
Plan
came
nadian
Government
Provincial
that
course
Public Utility
of the
government
it
would
an
as
give
announced
up
the
joint
to power installa¬
all-Canadian
Seaway.
The estimated cost of the Seaway
and
power
projects is in the
neighborhood of $800 million.
State and Municipal Bonds
Impact
of
Canadian
Aluminum—In
Emi of Month-
Restrictions
June
Dec.
Jane
September
1950
1050
1051
1051
Chartered banks:
Commercial
and
public loans
outstanding in Canada
$2,293
402
Holdings of corporate securities
Holdings of provincial (long-
$2,651
$2,890
405
415
406
474
493
465
450
959
1,135
1,114
n.a.
51
65
60
83
.-
term) and munic. securities♦Consumer credit outstanding--Collateral loans
April
of
this
Aluminium Ltd. released its
plans for a huge project at Kitiyear
Credit
(Figures in millions of dollars'!
Seaway
tions) and seek agreement to con¬
struct
Statistical
recently when the Ca¬
plan (except
Municipal
outstanding,
$2,900
re¬
ported by members of the To¬
ronto and Montreal Stk. Exchs.
♦Stutistical
Summary, Bank of Canada, September, 1951.
Wood, Gundy & Co.
Incorporated
14 Wall
Street, New York 5
105 West Adams
Toronto
O^icet
Montreal
>
Street, Chicago 3
Winnipeg
Vancouver"*
BONDS
London, England
STOCKS
At
WINNIPEG
1hf toronto stmk
exchange
Markets maintained
VANCOUVER
momkal stock
VICTORIA
EXCHANGE
.
CANADIAN
in all classes
of Canadian external
and internal bond issues.
'
MONTREAL CURB
CAIGARY
SECURITIES
.
market
Stock orders executed
EDMONTON
calgary stock
on
the Montreal and Toronto Stock
exchange
GOVERNMENT
Exchanges,
vancouver stock
SASAitfOON
..
MOOSE
JAW
LETKBRIDGE
;
-
...
MUNICIPAL
net New York markets quoted
DIRECT
''
on
request.
PRIVATE
WIRES
CONNECT
OUR
NEW YORK, TORONTO, MONTREAL & OTTAWA OFFICES
exchange
CORPORATION
f§.
BELL
WINNIPEG GRAIN
SYSTEM
TELETYPE
NY
1-702-3
\ EXCHANGE
MINES, OIL, GRAIN
PORTAGE IA PRAIRIE
or
exchange
winnipeg stock
'
can ab1an commodity
SWIFT CURRENT
exchange inc.
COMMODITIES
KENORA
-•
Dominion Securities
the
investment deaurs'
KINGSTON
James Richardson & Sons
TORONTO
ESTABLISHED
WINNIPEG,.
MONTREAt
A
CHAIM
OF
-CONNECTED
OFFICES
8Y
OUR
MONTREAL
OWN
DIRECT
joe canada
-
investment bankers'
CANADA
FROM
association
Philadelphia
40 EXCHANGE PLACE, NEW YORK 5
London, Eng.
1857
TO
v
VICTORIA
FRIVATE
WIRES
association
of america
; \
widespread
expenditures
panies in the United States
the
sides of the Border.
of
first Jersey Zinc
large plants which it has under
aside, this alumi¬ construction
or
planned
for
num possesses an advantage which
Brockville, Ontario, Calgary, Al¬
of ore are scheduled to reach 10,- should work to the benefit of all
berta,
Edmonton,
Alberta > and
000,000 tons in 1956.
concerned—it is produced at low
Copper Cliff, Ontario.
Dominion
An
important contribution to cost derived from inexpensive re¬
Tar & Chemical Co., Shawinigan
Canada's growing ore output is sources of electric power.
It be¬ Chemicals and North
American
also being made by Algoma Steel comes increasingly
evident that
Cyanamid are also engaged in
Corporation and Steep Rock Iron the United States must depend on
large expansion programs.
Cana¬
Mines.
Algoma is developing sev¬ enlarged imports of this strategic
dian Chemical Co., a subsidiary of
eral ore properties in the Michi- material.
Celanese Corp. of America, has a
picoten area of Western Ontario
Base Metals—Among the base
$60,000,000 acetate and rayon plant
and greatly expanding its primary
metal
producers,
International under construction near Edmon¬
steel capacity.
Steep Rock has re¬ Nickel indicated that its
capital ton. Shell Oil and British Ameri¬
ported shipments of 1,325,000 tons expenditures for 1951
would ex¬ can Oil (the latter in conjunction
of ore lor the 1951 shipping season
ceed $20,000,000 and Sherritt Gor¬ with
Shawinigan Chemicals) have
and planned expansion will bring
don Mines announced that financ¬
important petro-chemical facilities
output up to 3,000,000 tons per
ing which would total about $29,- underway in Montreal East.
Ca¬
year by 1955.
000,000
had
been
arranged
to nadian Industries Ltd., Noranda
The primary steel capacity of bring its
Lynn Lake nickel prop¬ Mines, Consolidated Paper, RoyCanada is hardly sufficient to sup¬ erties in Manitoba into
production. alite Oil and Shell Oil all have
ply two-thirds of domestic de¬ Canadian National Railways be¬
projects in hand which will sup¬
mand.
The "Big Four" steel com¬ gan the construction of a 150-mile
plement the short supply of sul¬
panies—Steel Company of Canada, railway to Lynn Lake.
Consoli¬ phur in Canada.
Marathon Paper
Dominion
Steel
&
Coal
Corp., dated Mining and Smelting Co. Mils is
planning major capital ex¬
Algoma Steel Corp. and Domin¬ began a $64 million program to
penditures which will raise / the
may
bring this
western
the
be on ing for a total expenditure of
A further $60 mil¬
of the $550 million.
of iron lion was allotted for expansion of
-'Y'
'Y.Y: hydroelectric power and plant fa¬
the construction cilities in Quebec.
Canadian ex¬
quotas operators who sible to predict at time of writing
ion
Foundries
&
Steel—are all
only by the 49th what the outcome will
be, it seems
find
themselves
engaged in major expansion pro¬
clear, that, with the Conservation
pumping crude oil in opposite di¬ Board's
grams.
approval, upwards of $100
rections over long distances!
St. Lawrence Seaway—Full jus¬
million of capital investment will
The next important step in pro¬ shortly be
poured out in the initial tice cannot be done here to the
controversial subject of the con¬
viding
additional
markets
for phase of construction to
parallel
Columbia,
join the ranks
separated
are
British
stage of which will require the
construction by 1954 of a primary
estuaiy, Canada will
rence
adding
products
lion
Islands
mat,
world's greatest exporters
chain is
under construction.
stallations
Seven
31
page
Thursday, December 13, 1951
...
Ottawa
Toronto
~
Montreal
Telephone WHitehall 4-8161
Winnipeg
Calgary
Vancouver
Halifax
Victoria
Volume 174
Number 5072
.
.
.
The Commercial and Financial Chronicle
ing .built on Vancouver Island diately affect tjie U.S. bond mar¬
jointly by Crown Zellerbach and ket) Canadian long-terms dropped
trend has
Canadian
not
Another
Western
Lumber
within
Co.
of
MacMillan
Bloedel, Ltd., also
Island.
Red Rock, Ontario
and East
Angus, Quebec. Output of news¬
print and kraft board will be in¬
tion
capital cost of about
extensions
of
only
view
were
an¬
that
further increase dur¬
a
ing 1951 in the aggregate volume
ca¬
of
curities
whole.
and
loans
non-government se¬
would
be
undesirable.
holdings
are,
banks'
chartered
of
cluded:
a
to
coast
'
Specific recommendations, which
were
adopted by the banks in¬
coast, not
^
year.
con¬
Stock
Markets—In
markets
plete without mention of the most
collateral
stock
during
to
loans
50%
lar
Beaverlodge
Lake
area
in
around
Northern
Saskatchewan, which is now un¬
development, is greater, how¬
der
the
At
with those of the Bank of Canada
resulted
in
a
reduction
ever, and may after a few years the current demand for new
rank second only to the Shinko- porate securities.
During the
lobwe mine in the Belgian
Congo.
for
development at
Investment
Beaverlodge
the hands of
Lake
a
is
largely
ceding
in for
of
cor¬
pre¬
the funds which in¬
available
year
government corpo¬
investment
Bond
Yields-
Long-term bonds of the Govern¬
Canada declined steadily
ment of
during the final quarter of 1950.
The market for
of
active.
1951
Then
January and Feb¬
stable
was
on
but
in¬
March 5, follow¬
ing
a policy announcement of the
U.S. Treasury and the Federal Re¬
serve
by
Board (which
did
not imme¬
The
and
effect
of others
2.92
2.24
3.17
1944
3.10
comparable
U.S.
and
1951
Dow-Jones
industrials
tent.
The
240
and
lead.
to
indexes
stood
respectively
at 345
index
New
on
and* 260
York
This
rapid
Volume traded
changes has
record
at
the
in
of
these
taken
traded in
2.98
,2.37
2.95
2.63
2.15
2.52
290
1947
2.59
2.20
1948
2.93
2.41
2.35
2.24
2.93
1950
2.77
2.24
about
large.
the
a
3.19
end
of
com¬
can
AVERAGE
11)51
January
3.01
2.32
3.12
February
3.01
2.33
3.26
March
3.17
2.48
3.28
April
May
3.21
2.59
3.35
3.20
2.69
3.43
June
3.24
2.70
3.55
July
3.21
2.66
3.53
August
3.22
2.58
3.53
September
3.24
2.57
3.54
ex¬
A
new
the
To¬
*Canada
1938-1944
strong market oil Oct.
3% Perpetual s
1945
•3% 1959/62
1946—present
3% 1961/66
1938-1941
fUnited States
2%% Mar. 15,1956/60
1942-1943
2%% Mar. 15,1956/58
1944—present
2Vz% Dec. 15,1963/68
1939-1944
$United Kingdom
~3% July 15, 1954/58
3% April 15,1959/69
1945-1950
Pulp and paper stocks have
given a strong performance dur¬
ing 1951 to date, an index com¬
piled by the Montreal Stock Ex¬
change having opened the year at
648 and having reached 801 by the
end of October.
Source: Bank of
Canada, Statistical Summary.
CANADIAN SECURITIES
The index of western oil stocks
moved within narrow ranges, con¬
Govt, of Canada Internals
time of which the most
portant
;
MONTHLY
im¬ sidering the volatile nature of its
additional heavy tax¬ components, during the first seven
ation of individuals and corpo¬ months of the year.
This may
rations imposed by the budget of have been due in part to the fact
April 10, may be seen in part from that production had again out¬
the figures in Table I.
It will grown the immediately available
be
noted
from
the
table
that pipeline
capacity.
In August,
in the largest category, i.e., com¬ strength
appeared in the index
same
was
Canadian
Public
Oil, Mining
Utility & Industrial
Stocks & Bonds
Goodbody & Co.
ESTABLISHED
1391
MEMBERS
York
New
Other
Stock
Exchange and
Principal Exchanges
WEST ADAMS
105
115 BROADWAY
Tel.:
Tel.:
BA 7-0100
Direct Wire
to
CANADA
Service
CE
6-8900
Greciishields & Co.', Montreal
and Ross, Knowles & Co.,
Greenshields & Co
ST.
Chicago 3, 111.
New York 6, N. Y.
Greenshields & Co Inc
on
Toronto
^
—
all Securities
When you
Members Montreal Stock
Underwriters and Distributors
Exchange
The Toronto Stock Exchange
Montreal Curb Market
Canadian Security Issues
require information or quotations
Canadian Industrial, Mining or Oil
Company, our complete facilities are always at
on
any
your
disposal.
Consult
Direct Private
us—we can
help you.
Service to
Wire
Montreal and New York
507 Place d'Armes,
Montreal
Ross, Knowles
&
Co.
;.V '
(jformerly Milner, Ross & Co.)
Members: The Toronto Stock Exchange
and The Investment Deale^ Association
Ottawa
Quebec
Sherbrooke
,,
2.82
1949
-
2.61
2,
11, 1951.
measure^,
at
been
-
2.88
Oct.
Canadian
reported by
was
.
1946
Exchange, where min¬
ing share transactions contribute
substantially to statistics of vol¬
ume, when 7,537,000 shares were
had
business
on
2.86
2.89
2.49
1945
at
on
•:*'
3~.45
of
;
Jan.
advance
!
2.15
■VJ
ronto Stock
sales
^United Kingdom
ex¬
marked
a
pared to the New York index
:
Government
ruary
augmented
1.98
3.17
index of industrials has outrun the
out of their
However, a number of holdings of government securities.
small companies are also at work This trend came nearly to a halt
in the area.
—
in the case of their holdings of
Federal government bonds of long
; Review of Security Markets
maturities.
ration.
3.26
46
3.00
1943
companies had
surance
2.21
•
1942
insurance
time
same.
companies across Canada adopted
certain
policies
in
cooperation
which
2.38
3.39
1941
the year to
the Toronto Stock Exchange
ever,
Lake in the far northern basin of of instalment finance paper.
The poten¬
3.28
1939
1940
ruling made by Canadian stock to a
large degree be attributed to
important ore in the world today exchanges).
the growth economy of Canada to¬
—uranium.
Canada's present pro¬
(c) The freezing of the current
day and the consequent influx of
duction comes from Great Bear level of bank loans on the security
outside capital.
•'
tial production of the
last
2.61
followed
have
timing of American
below
(from 33%), (preceded by a simi¬
com¬
fUnited States
3.35
the
increase of chartered
June, 1949.
Since that date To¬
margin requirements on ronto has moved into an
85-point
banks'
Uranium—No review of Cana¬
the Mackenzie River.
reached
point
♦Canada
markets
date.
How¬
Canadian
the
general
(b) The
markets.
dian developments would be
low
•
29, 1951, • Going back over the
industry has moved forward loans or
purchasing corporate se¬ records of the two indexes it will
steadily during the postwar period curities of a
maturity longer than be found that Toronto was
slightly/
to keep pace with
the require¬ one
overseas
index's
general
1938
ing.
the
tinent and
the
May, however, which may be at¬
The important
group
of base tributed to the government's deci¬
metal stocks, as judged by the To¬ sion to allow export sales of gold
ronto Stock Exchange index, par¬ in the "free" market by mining
alleled
the
index
of industrials companies which choose to give
up any payments they may have
throughout the period to date.
been receiving under the Emer¬
Shares of gold producing com¬
panies failed to participate in the gency Gold Mines Assistance Act.
So far one major mine has taken
general market advance. A mod¬
•
,
omitting the two large pulp and
(a) The request that chartered
paper concerns in Newfoundland, banks refrain from
making term
ments of the North American
until
AVERAGE
which
credit
of
relatively small
part of that accomplished by the
pulp and paper industry as a
From
most quarters to
all
by the Bank of Canada on
Feb. 22.
The Bank expressed the
comparable
pacity which have been cited
of course,
in
hesitation
marked
a
nounced
$22,000,000. Manufacturers of fine
paper products have also under¬
The specific increases in
sufficient to bring
was
continued
setback which began on Oct. 19.
,
at
size.
re¬
and
45
the open market
policy of the Bank of Canada.
money markets in Canada, partic¬ Starting
on
Nov. 15 long-term est net gain has appeared over the
,Continued on page
ularly in new financing.
government bonds declined ap¬
TABLE II
A good deal of this hesitation proximately lVz points to about
was undoubtedly caused by certain
Long-Term Government Bond Yields
95%;' other high grades, munici¬
ANNUAL""''
measures for the general restric¬
pals and corporate bonds follow-'
about
by Brompton Pulp and
Paper Co. in regard to its mills
taken
the various
by
,
followed, it
big¬
nounced
a
reversed
strictions.
dealers to the tempo¬
At the time of preparation of
withdrawal of bids*by the this Report a further downward
of Canada
and, although adjustment of government bond
months of narrow price changes
prices took place, attributed in
and
of the
one
inflationary
the
far been blunted but
so
Bank
Vancouver
on
In the East
at
at¬
was
loans,
rary
gest programs is that recently an¬
creased
to
par
mercial
tributed by
addition
extension which will
double the output of the new sul¬
mill
from
days
This decline
about 97.50.
capacity will be the
mill
$16,000,000
phate
few
a
to
outstanding
western
(2285)
i
Toronto
*
330 BAY STREET
Hamilton
Brantford
A
*
.
'
of Canada
*
TORONTO
:
Brampton
Windsor
16
(2286)
The Commercial and Financial Chronicle
Continued
from
ture
45
page
into
Canada's
this
two
countries signed
two years
Budget
Rcently, however, the authorAn important provision of the
ity to waive U. S. tariffs on prime Federal Budget which was pre¬
of issue, and
public, including
institutions, accorded a warm re¬
ception.
which
one
Economy;
type
the
.
ago.
contracts
been
External Trade
placed
extended
in
to
advantage of this partial relaxa¬
tion
of
controls
export sale
bave indicated
an
by
making
to nonresidents in
such at
others
$400,000,000
to
$450,000,000,
month 3
1951,
63 %
total
for the
merchandise
12-
ending
period,
amounted
they will do tional income, compared with 8% United Kingdom.
in
only 2lk%
of the
na¬
1930.
United
dise
States
and
15%
rate issues has
Dominion,
Total merchan¬
imports for the
Dominion
iNet
during porarily reverse the position.
In
if the bond is turned in for repay¬ the year apart from the
period of the 12 months ended in July, 1951,
ment at par before
August 1, 1953. uncertainty as to the future course imports exceeded exports
by
In the field of provincial and of high grade bond
yields which $331,000,000. These extra imports
municipal new offerings, the year was referred to earlier.
The out¬ were partly counterbalanced
by
has been characterized by a large standing feature of this
market the inflow of capital from abroad
volume of placements in the after the fall of bond
prices in and
by exports of $159,000,000
American market with payments mid-March was the
popularity of worth of gold so that the effect
of interest and principal specified convertible
debentures. " In most upon the central bank's reserves
in U.S. dollars.
The total in this cases these were issued with con¬ of
gold and United States dollars
category up to Oct. 22 was $307,- version features initially effective was therefore moderate.
These
000,000 in which two issues by the at 10% or less above the current
reserves were reported as $1,610,Province of Ontario, one by Que¬ quotation for the
common shares.
100,000 at the. end of September,
bec and one by British Columbia Nearly all of these
convertibles 1951, compared with $1,789,600,000
were the largest.
had 10-year terms and
coupons a year previously.
The alternate Chairman of the varied from
3V2% to 5%.
Com¬
Foreign Exchange Control Board panies which made such issues
Rate of Exchange
pointed out in a recent speech were Abitibi Power &
Paper Co.,
Early
in
October,
1950,
the
that
these
borrowings
in
the British American Oil, Dominion Canadian Foreign
Exchange Con¬
United States represent the re¬ Steel and
Coal, Dominion Tex¬ trol Board stopped maintaining a
versal of a trend which has been
tiles, Brazilian Traction, Canada fixed rate of exchange. The quo¬
in evidence for 20
years or more Southern
Oils, Canadian Pacific tation for the U. S. dollar, which
but that the total of interest
pay¬ Railway and Canadian Breweries. had been
pegged at $1.10 Canadian
to meet the heavy
preparedness program
which
undertaken
taxation
was
of Canada
Total
including
the
Korea.
in
III
Provincial
(March
Debt
Faiidcd
after
hostilities
of
and
Debt
Municipal
v
31)
Con¬
tingent Liabilities)
1938
1939
4,516
1915
4,697
191 (5
15,116
Total
(Net
17,053
1950
16,744
'
Debt
including
%
Con-
1950
1939
1945
194<»
1917
1918
1919
2,001
1938
1,889
1,349
1,392
2,076
2,243
*
1,841
Total
Dominion
1938
6,358
6,998
Direct-
Liabilities
1938
Public
Sources:
19 47
1940
1950
18,987
18,494'
1949
li« »H
1950
961
932
905
862
866
Dec. 31,
19,129
Canadian
all
19 45
19 >9
at
1949
1918
19,569
(Dec. 31)
1,484
1,453
1917
194(i
19,747
17,005
Municipalities
2,493
Provincial
and
1945
J 939
♦As
*16,001
Liabilities)
tingent
•
Funded
1949
1918
1917
17,677
17,898
Provinces of Canada
tem¬
been active
costs of the
tra
(Millions of Dollars)
same
however,
only 2%
orders
consider-
April 10,
House on
the
to
1951, was the introduction of ex-
TABLE
Outstanding
Issues—Borrowings by
rate
,
for
States
sented
outbreak
the
Federal
makes the effective
M
field
United
the
to
period
Total
sales of new municipal
our
were $3,934,000,000—68% from the
government during the securities, excluding, provincials, United States and 11% from the
had amounted by Oct. 22 to
year were confined to short-term
$180,- United Kingdom. Except for com¬
discounts until the sixth tap loan 000,000, a moderate increase over
paratively short periods, Canada's
the same period of 1950.
About normal
campaign was begun in October.
trade position is a surplus
The 2%% coupon of earlier Can¬ 38% of this total was sold in the of
exports over imports. The ad¬
Further details ap¬
ada Savings Bond Series was in¬ United States.
ditional imports required during
creased
this year to 3
%
but pear in Table IV.
a
period of rapid growth such as
with
a
The distribution of new
special provision which
corpo¬ the
present may,
New
the
up
the
July, ably.
$3,603,000,000.
to
that
to
amount
from
has
in
of these exports went to
a
opening
ex¬
available
latest
and
likewise.
few
1951, estimated
Canada's
ports
Canada
sub-contracts,
..
Reaching New Highs
Thursday, December 13, 1951
...
1,112
1950.
Accounts
Statistical
Dominion
the
of
Canada
and
each
Province.
of Canada.
Statistics.
Bureau of
of
Government
Bank
Summary
.
.
.
TABLE
ments
be
much
very
case
to
in
ments
made
lower
1930.
of
abroad
than
In
fact
interest
now
was
The
is
total
financing
involved, funds, has since moved within a
$110,000,000, while not large range of $1.04 to $1.06 except for
about
the
total
pay¬ by the standards of U.S.
markets,
dividends represented a considerable ven¬
and
short
a
time
during
when the rate
June,
high
was as
as
1951,
$1.07.
tion bonds to date in 1951,
1949
as
fense
the
L. G. BEAUBIEN
*
C°.
LIMITED
goods placed
United
Canada's
kind
in
the
Government
Gov't
United
States
of
Canada
40,000,000
70 000,000
257,850,000
138,756,000
Provincial, guaranteedMunicipal
32,740,000
179.903,689
116.949,500
142,987,234
170,571,000
120,058,495
Corporation
334,665,000
280,215,303
Canada,
guar.
—
DEALERS
an
economic
principles
3 Late
Specialists in Securities Originating in the
9
—
Province of QUEBEC
figures:
CZ.SIS.ZOO.OOO.
$4,229,620,689 $5,653,002,037 $3,861,079,495
3,000,000,000
3,200,000,000
ing (less than 1 year)
between
the
months, 1951 exports
2,700,000,000
$1,029,620,689 $2,658,002,037 $1,161,079,495
the following amounts have been sold in New
Of the above,
York*
1951
agreement on
211,694,000
„
Less short-term financ¬
pur¬
chases in Canada 5 to 1, thus fail¬
and
$3,400,000,000 $4,820,000,000 $3,100,000,000
■ -
this
have
1949
to Oct. 34
282,312,000
of
Provincial
July,
of
outweighed the United States'
ing to implement
UNDERWRITERS
Since
purchases
1950
to Oct. 33
1951
to Oct. 33
in Canada by
States.
1950,
with comparative figures for 1950 and
follows:
Reciprocity in Defense Orders
It is encouraging to be able to
record that progress is
being made
towards increasing orders for de¬
IV
Reported sales of new Government, Municipal and Corpora¬
.
1950
Government
of
Canada
1949
to Oct. 33
to Oct. 33
to Oct. 34
$50,000,000
.
$100,000,000
$239,02o,000
Municipal
83,700,000
---—-
68,292,000
Provincial
19,000,000
5,571,000
-
2,500,000
20,000,000
35,000,000
$309,817,000
$170,700,000
$140,571,000
Corporation
Imports—$3,142,000,-
000.
Government, Municipal, Corporation,
Commissions, Parishes and Fabriques,
School
Religious Institutions.
221
NOTRE DAME
Quebec
St.
Ottawa
-
CANADIAN OIL SECURITIES
STREET, WEST
MONTREAL
I
Trois Rivieres
-
Hyacinthe
The
Shawinigan Falls
Paris
-
rapid development of the oil lands of Alberta has drawn atten¬
tion to the
Brussels
possibilities inherent in the securities of companies operating
in this field.
Through
information
Canadian affiliation
our
on
Canadian
oil
we are
securities
in
and
a
position to give pertinent
to
quote and
trade such
securities in American funds.
Underwriters
Orders
accepted
-
Distributors
-
Dealers
W. C. PITFIELD & CO., INC.
for execution
on
all
stock
exchanges
Wire connections:
Montreal
30
Phone:
•
HAnover 2-9251
-
Toronto
-
Broad Street
New York
Affiliated
Royal Securities Corporation
Street West
-
Montreal 1, Canada
Telephone lIArbour 3121
Toronto
Calgaiy
Halifax
Saint John
Edmonton
Quebec
Vancouver
Ottawa
With
W. C. PITFIELD & COMPANY, LIMITED
Limited
244 St. James
Teletype:
NY 1-19-79
New York 4
•,
..
...
•;
-
MONTREAL
•
.
•
.
Hamilton
Charlottetown
Winnipeg
St. John's, Nfld.
Halifax
Calgary
Moncton
Edmonton
Saint John
Ottawa
Vancouver
Cornwall
Kingston, Jamaica
•
Toronto
'
Winnipeg
London, England
r
Volume 174
Number 5072
.
The government resisted the pressure for the reintroduction of an
pected, the government now finds two countries.
itself with
record surplus which Reciprocal
a
Conclusion
Canada-U. S.
The
Tax Convention is, of
Stanley E. Nixon, V.-Chairm'n
Dominion Securities Corpm*.
\
Canada provides today, perhaps
Limited, Montreal
that may run as high as $400,000,000 course, the instrument designed to m0re than at any time in her hisby the end of the current fiscal eliminate all forms of double tax- tory, an unexcelled opportunity
wastefulness
and
blunted
effi- year on March 31.
ation and to ensure uniform and for
profitable
investment. • Alconsistent treatment in regard to though the greatest proportion of
ciency, and imposed a 20% defense
i;
/
;
^ *
all matters of capital and income, the capital funds which are resurcharge on all corporations and
Taxation excess
this
profit
type
tax,
of
indicating
taxation
invited
Frederick P. Ashplant
-
This
income
tax
payments.
corporate income
Canada to just over 50%.
in
A number of
brought the effective rate of
combined
cause
inability to hasten
procurement
and
also
tax
our
Be-
tax
in this
defense
of
because all
structure
these
bear
misconceptions are
effects of
about the
investments
on
country by Americans. One
is
idea
the
Canada
in
earned
incomes, corporate and personal,
reached
higher levels than ex-
double
that
income
have
may
to
taxation
owing to
overlapping of the statutes of the
TABLE
.
arise
apt to
V
Development of Strategically Important Resources in Canada
Part
SELECTED
Investment
in
Development
and
(Millions
1
example is the withholding tax
of interest and divi-
Building
Canadian
from
A
Machinery
1950-1955
is
convention
similar
(March, 1950)
the
of
When
1950
1951
(Actual)
Aluminum
smelting
or
Before
,
,,
.
$3.4
All other nonferrous
$18.2
$233
19.2
5.0
...
.
23.8
226
15.7
66.9
88
v
to be developed, in
unique ..frontier>. witi,out
the
62.4
70.9
21.5
37.7
32.8
fChemical products
64.3
300
.
the
$160.7
Hvdro-electric power
•Excluding
acquisition
land
$1,337
-
403.8
.1,200
to
SELECTED
(Thousands
Total
oi
2
Tons
Unless
Estimated
Percent
Estimated
Capacity
Capacity
1950
Increase
Capacity
1955
1950
1950-1955
80
80
250
210
395
415
603
45
3,617
3,617
f272
1190
19,000
430
300
10
205
262
170
ZinoKall forms)
Nickel (all forms)
311
f320
406
123
137
155
•
,
llmenite
Maximum
Source:
0.600
5.0
5.0
on
100
550
4,400
economic
same
•
•
•
■
•
W.
*
.
estimate
national
exceeds
*i
Denzil
James A. Gairdner, Chairman
Gairdner and Company,
R.
A.
Walker
Wood, Gundy & Co., Ltd.,
Toronto
Limited, Toronto
VI
TABLE
^
Canadian
Prairie
Development
Oil
1946
1917
1948
1949
1950
*1951
of acres)
Geophysical parties
Exploration & devel. expend.
(millions of dollars)
20
30
56
115
129
145
11
23
59
105
125
140
12
25
215
Oil wells completed
59
45
196
19
;
',
Lease and reservation (millions
:
Reserves (millions of bbls.)
Production
income.
of Canada's
450
when
In
for
product
advance
over
the figure was $17.8
terms
dollars,
of
constant
Canada's
1951
This marks
$21 billion.
considerable
potential
50
100
165
249
541
797
630
150
500
900
1,100
1,350
24
40
109
168
195
-
(1,000s
day)
-
Estimated.
national product is
double
Hansard, Oct. 19, 1951.
the
level
Ltd.,
as
Address by John R. White, Executive Vice-President,
reported in "Oil in Canada," Sept. 24, 195K
"s ?*\
Imperial Oil
a
1950
billion.
(1935-39)
current
gross
average.
quarterly rate of output during 1950.
& Co., Lt<L»
Pitfield
Montreal
COMMITTEE
-
Torrey
S.
C.
Product
___
rate—annual
of corporate and per¬
the
Limited, Toronto
Source:
21
81
bear through
class
on
latest
The
0
3,700
sulphur
the highest
•
*
95
,100
Elemental
f Based
0.313
1.8
-
a rec¬
Gross National
2
3,300
Primary steel ingot
*
-
CANADIAN
-
barrels per
gross
0.001
0.313
Cobalt
Magnesium
This marked
a
sonal taxes
13
0.001
as
the payment
27
Tungsten (W03 content)
intro¬
heavy double taxation which
8
Copper (all forms)
Lead (all forms)___
.
was
ognition, and partial reduction, of
investors
Douglas B. Weldon
Midland Securities Corpn..
faith
and
Securities
Corpn., New York City
Century."
tax credit on
10%
duced in 1949.
the
*
ore
the
to
The Dominion
the
to
matters
on
dividend income which
Otherwise Noted)
^Petroleum (crude)—
Iron
Canada
look
confidence
•
.v%
Actual
1,000s bbls./day
Primary aluminum
the
with
to
Respectfully suomitted,
1950-1955
Output
.
MATERIALS—
in
George P. Rutherford
war
Arthur
States
would be beyond
not
be "Canada's
suggest the attitude of taxing
tention
Capacity
'
v/
United
Wood, Gundy & Co., Inc.,,
New York City
in the belief that this will indeed
affecting incentives by calling at¬
MINERALS
Production
Short
future
ex¬
an
averted,
of this review, it is possible
scope
authorities
of
While
the
between
and Canada
flncluding petro-chemical projects.
Estimates
is
amination of the points of differ¬
rights,
Part
sible> if the threat Qf wld
the
for
greatest
Toronto*
Edward S. Johnston
political instability that term
the
R. Jarvis
Company, Limited,
a
industrial
for
regard
and
individual investor.
127
$286.8
344.5
of
corporation
Co., Inc.,
City
McLeod, Young, Weir &
our prox-
213
ence
Total
certain
a
New York
W. H.
nati°n in the world~i1: is impOS-
strnr-
tax
preservation of incentives both
for
*
shows
A. E. Ames &
-
of
implies, and add to them
business
general, Canadian tax struc-
ture
Petroleum and natural gas:
Canadian
crpiipral
Tn
ln
(a) Exploration & develop.
(b) Transmission & refining
the
fact
any
imity to
representing
and investors
metal
smelting, refin. & processing
Iron ore mining
Primary iron and steel
Curry
Andrew G.
from the harass-
pause
yet
,
and this position has been
groups
150
5.7
ous
we
& Quinlar\
Collier, Ndrris
Ltd., Montreal
economy, great natural resources
quite zealously protected by van-
i.
Montreal
W. T. K. Collier
assuring ments of short-range problems to
the policy count our blessings — a growing
government to tax capital
gams,
Completion in 1955
(Preliminary)
Greenshields & Co. Inc.,
as
"
Undertaken for
Winnipeg
states is by far the largest and
the most sustained, and it is naturai that this should be so. In fact,
The Minister of Finance is on
& Sons*
Russell D. Bell
Canadian taxes are
similar in many respects to those it js reasonable to assume that as
in
effect
in
the
United
States, the years go on the economy of
there is an important difference our two countries should become
in that we have no capital gains ever more
closely intertwined,
the House that it is not
Value of Expansion
Projects Now Being
-
force
•
Although
Dollars)
Investment
in
concerning succession duties.
.
James Richardson
when charged by one da needs and is receiving a flow
generally deductible 0f investment from other countries
payable in the other. 0f which that from the United
is
taxes
record
and
Ralph D. Baker
dends which,
country
York
New
quired is being derived from the
savings of her own citizens, Cana-
transfers
on
tax.
INDUSTRIES
New
of
An
Ashplant & Co.,
City
F. B.
.
personal
47
(2287)
The Commercial and Financial Chronicle
.
.
approximately
reached
in
1939.
Mills, Spence & Co. Limited
GOVERNMENT,
AND
MUNICIPAL
BONDS
CORPORATION
Capital For Canadian Industry
Utilities
Western
Sugar Refining
Fulp and Paper
Biscuits, bread,
Department Stores
confectionery, dairies
In
all
of
these
Oils
Wholesale
industries
there
arc
ST.
WEST
TORONTO
EMPIRE
MONTREAL
PLATEAU
Heavy industry,
foundries, machinery
Grain elevators
KING
25
Textiles
WINNIPEG
4-1341
923-385
8751
groceries
representative
Canadian
securities have been originated,
underwritten and distributed by Gairdner & Company Limited.
companies
whose
issues
Private
of
enquiries
in Canada
Gairdner %
320
as
are
to
financing
invited
Company Limited
Bay Street, Toronto
M'Leod.Youkg.Weir & Company
LIMITED
Association of Canada
Members of The Investment Dealers
PLaza 8011
Quebec City
Montreal
Kitchener
^
DEALERS IN ALL
Hamilton
CANADIAN SECURITIES
Calgary
Kingston
Direct
Gairdner, Son 8 Gompany
Exchange
Montreal Stock Exchange
-
Montreal Curb Market
.
'
e
50
Toronto
Montreal
Kitchener
Quebec City
Kingston
Hamilton
Calgary
Head
on
all Exchanges
Office
King Street West, Toronto, Canada
Br finch
-
Montreal
Montreal and
Corporation, New York
Stock orders executed
Member:
The Toronto Stock
wire to
private
The First Boston
Ottawa
Hamilton
Offices
London
Correspondents in London,
Winnipeg
England
New York
The Commercial and Financial Chronicle
(2288)
$8
Continued from
received
from
the
United export benefits and the stimula¬
States, Canada and the Common¬ tion given to United Kingdom cur¬
wealth countries
generally, had rent dollar income by the 1949
have proved
worked into a favorable balance devaluation
to be
has
aid
8
page
Canada's Astounding
Industrial Advancement
national trade is being conducted
with the United States and a de¬
country with Canada's po¬
tentialities as a world trader.
for
a
international
of
her transitory and that
payments,
and dollar reserves were
higher than at any time it
driven
the
in
past ten years, and a be¬
the turn of the year, how¬
Since
a
recession
and
to
the
of
of
trade
desirability
this
trend
protrac¬
diversion
Canadian dollar has
of the
well
exchange
The
efficiently.
and
value
been
the mind.
to
come
of
and
and
maintained
rate
have swung normally
blood—is
essentially
a
mutual within brackets of moderate vari¬
process, and the greater the num¬ ation.
International
trade
—
life
our
quotations
ber of countries with which Can¬
ada
exchanges
goods
the
Britain's Economic
better.
from various countries directly or
Devaluation to
duction and
secure
export advantages is no new de¬
vice but an old expedient with a
is
Plight
now
seems
if
as
thus
'
ended
Sept. 30 this year,
reducing
the
holding
total
■
Quinlan
&
MEMBERS
MONTREAL
STOCK
Although the announcement
this
EXCHANGE
sudden
in
reversal
the
a
than
anticipated and,
moreover, the official explanations
given at the time, vague as to
but
the
to
and
effect
that
temporary
accountable
that
and
the
to
ab¬
Quinlan
Investment
Dealers'
deterioration
Investment Bankers Association
of Canada
of America
Montreal
Toronto
d'Armes
320
HArbour 2201
Bay Street
WAverley 2984
the
in
large
this
year
ume
of money,
and
every
our
should
assistance
ablebodied
skilled people in the old world
who
anxious
are
one
new
to
emigrate
who
but
cial
means
to
do
so.
The Inflation Trend
has
Canada
tremendous vol¬
seeking both a safe
responded
world demand for greater
of
profitable investment
politically sound territory,
goods
and
materials
Continued
on
to the
supplies
with
page
Keeping up-to-date
and
sharply
rising
CANADA ?
due to de¬
exports
area
combined
area,
to
with
of
imports
from the latter area, and
that the
costs
problem of the dollar gap had
suddenly loomed up again in a
most menacing way, as it has also
done in other European countries,
particularly France.
You'll find
a
sis
of
monthly Business Review
our
help. It brings
great
Canada's
detailed
clear analy-
you a
economic
developments,
of industrial
and
com¬
mercial conditions. To receive
this
regu¬
surveys
larly, write
U.
S.
to
any
branches,
or
of
our
our
Canadian
Head
or
Office in
Montreal.
It is
obvious that the
now
new
British Government has inherited
national financial crisis,
dangers of which have been
recognized and openly acknowl¬
edged.
Extremely drastic meas¬
acute
an
Bank
the
Savard, Hodgson & Co., inc.
of The Investment Dealers"
Association of Canada
including great curtailment
imports from the dollar area,
are
being put into effect as the
step
vital
with
INVESTMENT DEALERS
on
towards
dollar
the
by
The
trade
viewed
be
this continent
pered
protecting
reserves.
which
possibly
-
Montreal
UNITED
STATES
OFFICES:
of
first
Members
or
Canada's First Banh—Coast-to-Coast
ures,
San
the
Chicago, 27 S. La Salle St.
Resources
over
Francisco, 333 California St.
may
$2,000,000,000
—
more
than 550 branches spanning
Canada
exporters
but be tem¬
can
appreciation
an
York, G4 Wall St.
regret
cut
by
New
of
the
dire
276 St. James Street W., Montreal
1181
St.
Catherine
—
Plateau 9501
Street West
necessity for it. The United
Kingdom is in the most serious of
economic
can
be
ures.
SI1ERBROOKE
TROIS-RIVIERES
predicaments and there
question of half
no
the
new
pected
handle
complicated
Dealers
in—
indication that
every
government
to
can
the
be
ex¬
country's
financial
and
Canadian
eco¬
economic
Hart
&
Members of
The Montreal Stock
Exchange
fore,
tempt to correct past mistakes,
salvage something from them, and
strengthen the country's financial
structure will be made.
The Montreal Curb Market
howeVer,
scramble
STOCK BROKERS
1181
St. Catherine
Plateau 9501
Street West
QUEBEC
TROIS-RIVIERES
~
SIIERBROOKE
ST.
JOHNS, P. Q.
not
are
and
a
Omelettes,
easy
colossal
to
task
ahead, with austerity taking
new
276 St. James Street W., Montreal
A
of
Prices quoted in Canadian Funds for
delivery in Canada, or New York Funds
for delivery in the United States.
un¬
lies
on a
Equitable Securities of Canada
lease.
fact
Corporation Securities
principles than hereto¬
that a courageous! at¬
and
Government, Municipal
and
nomic problems more realistically
and more in keeping with sound
Savard
f
meas¬
A bold start has been made
and there is
and
Underwriters
significance is
that, during the past two or three
months, Sterling has been show¬
ing signs
of weakness in the
(formerly Fairclough & Company Limited )
world's free exchange markets and
there have even been rumors that
another devaluation of the pound
Telephone: PLaza 1141
some
might be essayed.
Seeing that the
Limited
220
Bay Street
-
to
unfortu¬
nately temporarily lack the finan¬
in
a
on
be
extended to the many
refuge and
in
much greater popula¬
imperative; there¬
inducement and all
extent
reserves
measure
Sterling
dollar
old
507 Place
in
was
the
Association
been
a
indeed
reasonable
lie
since the end of World
II assumed particular impetus
in the dollar balance of payments
clining
MEMBERS
The
is
fore
underlying position
favorable, were not
reassuring.
It was subse¬
quently revealed that the startling
&
tion
hav?
arriving. The urgent need to
been
factors
some
very
Li mi ted
War
has
labor
not at all
was
;
good strides. Large numbers
the
which
of
is
it
build up
progress
as
normal
i.
The
insufficiency
pleasing to see that
personal immigration into Canada
from abroad has also been making
today,
borders and overseas.
"get into Canada" financial
complete surprise, the
magnitude of the loss was much
come
were
.Vv:
serious
a
our
movement
detail
Collier Norris
ment them and, as we
to
movement of the reserves did not
greater
MONTREAL CURB MARKET
which
requirements to imple¬
suffer from
manpower
and
are
beyond
of
Collier Norris
the full and rapid way
proving an irresistible
capitalists
resident
ahead
magnet
■
.
extraction
wealth
of
lion.
'
,
to develop her latent resources
overall def¬
an
from $3,867. million to $3,269 mil¬
'
and
needed, for Canada at present has
not sufficient capital of her own
a
months
T.
As such, it
urgently
industry.
welcome
most
in
that world
political and economic conditions
demand.
Incidentally, in some
spheres abroad where restrictions
a
time when confi¬ on export of dollar capital remain
year the United Kingdom's over¬ further at
seas
trade has proved most un¬ dence in Sterling is indispensable in force, there are many heart¬
satisfactory, there being an ad¬ to the United Kingdom's economic burnings that the golden oppor¬
verse
balance in the first eight rehabilitation.
"
tunity Canada provides cannot be
months
of
the
current
of
seized. England, ironically enough,
year
£808 million, compared with one
"World Bullish on Canada"
is a conspicuous example.
of only £270 million for the cor¬
The greater our capital resources
While touching on matters of
responding period a year ago, and international tone, mention should become the greater become our
it
Predominant
come
which
re¬
be made of the extraordinary but
part as the
icit in the country's balance of
fully comprehensible interest in
United States plays in our foreign
payments for 1951 is inescapable. our country that has
United States—to the detriment of trade and closely attuned as our
been in
Added to this dissappointing de¬ demonstration
throughout the
others, we run the risk of driving economy is to theirs, the fortunes
the other countries into a counter of Great Britain as a powerful velopment is the further one oc¬ globe. The world is astoundingly
casioned
by
the
announcement bullish on Canada: our rapid rise
exclusiveness which might lead to worldwide trader and leader of
the Sterling bloc—once our best that the Sterling area's gold and in place among countries of in¬
the permanent loss of external
customer and still our second best dollar reserves, which had been ternational importance, the suc¬
markets for our production in the
steadily
and
strongly cess which is attending the exploi¬
one—are
worthy of brief com¬ growing
years to come. Exclusiveness as ment.
During 1950 the United since toward the end of 1949, had tation and development of the
to markets is scarcely the policy Kingdom, thanks to the generous suffered a drain of as much as vast natural resources lying in our
$598 million during
the
three soil, and the glittering prospects
In tending progressively to restrict
our trade to one country — the
money,
has
of the world.
tion
has
.
This
proportion with the rest
The financing through the for¬ ever, the injection into the already
of the bad record. It has been tried in
Taking a short view, eign exchange market of the year's fully strained economy
it is gratifying that commerce with huge volume of exports and im¬ added claims of rearmament and the United Kingdom and found
defense expenditure, plus an ad¬ wanting, and any policy involving
our friends across the border has
ports has presented no difficulties.
verse movement
in the terms of a series of these enervating de¬
grown at such a pace and reached The market, liberated from the
such
tremendous
volume;
but, encumbrance of pegged rates, has trade, have led to a deterioration valuations could but undermine
taking the long view, doubts as transacted its business smoothly in the overall position. So far this the world's faith in the pound still
clining
from
seems
made in re¬
investments. attempted.
ginning had been
building
overseas
here
transferred
been
abroad.
indirectly, is in no sense "hot" or
ensued, speculative but destined for per-"
unlikely that any repeti¬ manent residence and long-term
tion of that optimistic but haz¬ employment in the promotion and
ardous 1949 experiment will be furtherance of our national pro¬
action
gold
violent
Thursday, December 13, 1951
...
Toronto, Canada
a
65
Volume 174
Number 5072
.
.
.
The Commercial and Financial Chronicle
INVESTMENT BANKERS ASSOCIATION
OF AMERICA
OFFICERS 195M952
President
Vice-President
V ice-Presid ent
Joseph T. Johnson
The Milwaukee
Company
Milwaukee
^
Ewing T. Boles
The Ohio
Walter W. Craigie
F. W. Craigie & Co.
Richmond
Company
Columbus
Vice-President
V ice-Presid ent
George W. Davis
Walter A. Schmidt
Davis, Skaggs & Co.
Schmidt, Poole & Co.
San Francisco
Philadelphia
Vice-President
Norman P. Smith
Merrill
Lynch, Pierce, Fenner & Berne
New York City
50
The Commercial and Financial Chronicle
(2290)
v":
•
.•
•
•
.
,
■
;
..
•
•'
-;.V
y
'y:.
...
Thursday, December 13, 1951
V,*';'*
•'
;•:
•
•
*
;:
••
•.
:•
r\; v
4..,
'
1
IBA GOVERNORS
Charles
Boston
Courts
Si
Atlanta,
Clarence E.
C. G. Fullerton
John L. Kenower
MacArthur
Detroit, Mich.
S5
Co.,
Goldsmith
M. M.
White, Weld & Co.,
New York City
Limited, Toronto
Russell A. Kent'
Bank
N.
of
T.
San
America,
Si S. A.,
Francisco
Si
Smith,
Co.
Cleveland
Pomeroy, Inc., N. Y. C
A. E. Ames & Co.
Clark
Grubbs
B.
Kneass
Bank, Philadelphia
L.
Sutro
Grubbs, Pittsburgh
George
New
James
San
H.
Lemon
Johnston, Lemon Si
Co., Washington, D. C.
Si
Stix & Co.,
St. Louis
J. G.
Harter
Heimerdinger
Walter,
Co.,
Woody Si
Heimerdinger,
Francisco
Duncan R.
Broome
Trust Co.,
York City
Benjamin F. Frlckf Jr.
Barney Si Co.
Chicago
Robert
Jenks, Kirkland &
The Philadelphia Nat'l
Guaranty
Boyce,
Holden K. Farrar
Leslie J. Fahey
Fahey,
Si
E.
Robert
Barclay, Jr.
Bros.
Philadelphia
Incorporated, Chicago
Schoellkopf, Hutton &
Co.,
Ga.
Kenower,
Peabody
George K, Coggeshall
Hugh D. Carter, Jr.
Stein
A. G. Becker & Co.,
&
Co., New York City
Kidder,
W. K.
Andrew M. Baird
Amyas Ames
Abbe
M.
Blyth & Co., Inc.,
Linsley
First Boston Corp.,
New York City
Cinn.
Laurence M. Marks
Laurence
Co., New
M.
Marks Si
York City
ft' f
Volume 174
Number 5072
.
.
.
The Commercial and Financial Chronicle
(2291)
IBA GOVERNORS
Harold M. Martin
Murphey
>.f
Favre,
Perrigo
Hornblower & Weeks,
Andrew S. Mills
Stanley N. Minor
Newhard, Cook & Co.,
Pacific Northwest
Preston, Moss & Co.,
The Illinois Company,
St. Louis
Inc.,
Spokane
Charles R.
(Continued)
Company, Seattle
Boston
Chicago
Ralph
Los
Chicago
E.
John
Phillips
j.
Quail Si
Dean Witter & Co.,
Angeles
Quail
Stuart R.
Co.,
,Paine,
Philip J. Rhoades
Walter S. Robertson
National
Scott & Stringfellow,
Bank
Si Trust Company,
Oklahoma
Richmond, Va.
Joseph
L.
Ryons
Lester, Ryons Si Co.,
Los
.
Earl
Moss
Reed
&
York
William
Curtis,
New
York
Rex
& Co.
City
M. Scanlan
Godfrey B. Simonds
Earl M. Scanlan & Co.
'
G.
H.
Walker
Si
Co.,
Providence, R. I,
City, Okla.
Raymond D. Stitzer
Charles W. Warterfield
Equitable Securities
Corporation, N.Y.C,
Corporation, Nashville
M.
Clark, Dodge
City
Denver
Angeles
George F. Noyes
Webber,
Jackson
Davenport, Iowa
New
First
W.
James
Hempstead Washburne
Cumberland Securities
Harris,
■'./'/ .7,
Hall
Si Co.,
Chicago
m
Chas. B. White
Lawrence B. Woodard
Ohas. B. White Si Co.,
Houston
Woodard-Elwood
/
Co., Minneapolis
Si
51
52
The Commercial and Financial Chronicle
(2292)
,
Laurence
New
M
York
Marks
Citv
Laurence
the
retiring
of office 'on Joseph T,
waukee
Company, Milwaukee,
badge
M
Marks
President
&
Co..
pinning
Florida
Julien Collins, Julien Collins & Co., Chicago, and
Edward Hookinson, Jr., Drexel & Co.. Philadelphia,
Merrill Lynch, Pierce, Fcnnar & Beane, New York
both Past Presidents, escorting Joseph T. Johnson,
The Milwaukee Company, Milwaukee, the newly
President
.
elected President, to the rostrum
,
Geoffrey Crowther, Editor,
London, addressing
Miller, First National Bank, Chicago; Robert H. Craft,
Guaranty Trust Company, New York; Laurence M. Marks,
Laurence M. Marks & Co., New York; Murray Hanson,
Investment Bankers Association, Washington, D. C.
Lewis
Joseph T. Johnson, The Milwaukee Company, Mil¬
waukee, addressing the Convention
Thursday, December 13,1951
New Vice-Presidents—Walter W. Craigie, F. W. Craigie & Co., Richmond; Ewing T. Boles, The
Ohio Company, Columbus; Walter A. Schmidt, Schmidt, Poole & Co.. Philadelphia; Norman P. Smith,
Johnson, The Milthe newly elected
Harry A. MacDonald, Chairman of the Securities
&
Exchange Commission, Addressing Convention
...
Installation
of
New
Governors
G.
Keith
Funston,
Stock Exchange
■
Municipal
Securities
Committee Breakfast Meeting
;
■
.V
"The Economist,"
Convention
President of the New York
addressing the Convention
,
Volume 174
Number 5072
...
The Commercial and Financial Chronicle
John W.
•
Mr.
&
Clarke, John W. Clarke & Co., Chicago; Mr. & Mrs. W. Leslie Douglas, Folger, Nolan, Inc.,
Washington, D. C.; Mr. & Mrs. James P. Jamieson, Glore, Forgan & Co., Chicago;
S. E. Johanigman,
The Milwaukee Company, Chicago
Mrs.
Mrs.
Mr.
(2293)
&
Gerald
Kurt
J.
P. Kynett, Brooke & Co., Philadelphia; Mr.
Huttlinger, F. P. Ristine & Co., Philadelphia
Paul Uhlmann, Jr., Uhlmann
Latshaw, Kansas City, Mo.
Mrs.
&
Howard
Inc.
&
Mr.
Mrs.
&
Mrs.
T. E.
William
N.
E.
Jack R.
Baker, Fu.ton. Reid & Co., Cleveland; R. C. Chapman, Fulton, Rcid & Co., Cleveland;
Staples, Fulton, Reid <ft Co., Cleveland; Gordon B. Duval, Guaranty Trust Company, New York;
Henry Grady Wells, Jr., Andrews & Wells, Inc., New York
Graham, First National Bank, Ft. Worth; Mr. &
Edwards, Wm. N. Edwards & Co., Ft. Worth;
Mr. & Mrs. Earl G. Fridley, Fridley & Hess, Houston;
Charles L. West, Russ & Co., San Antonio
W.
Hunter, Equitable Securities of Canada, Toronto; Harcourt Vernon, Wood, Gundy & Co.,
Chicago; W. T. K. Collier. Collier, Norris & Quinlan, Montreal; James A. Gairdner,
Gairdner & Co., Toronto; Mrs. Harcourt Vernon
Dallas; W. Carroll Mead,
Mead, Miller & Co., Baltimore; Mr. & Mrs. H. Warren Wilson,
Union Securities Corporation, New York
Jesse A. Sanders, Jr., Sanders & Newsom,
■
Frank
Joseph T. Johnson, The Milwaukee Company, Mil¬
waukee; Harry A. MacDonald, Chairman, Securities
& Exchange Commission, Washington D. C.; Robert
I. Millonzi, Securities & Exchange Commission,
Washington, D. C.
53
Wickliffe
George
Mr. & Mrs.
Mr. & Mrs. Joseph T. Johnson, The Milwaukee
Company, Milwaukee
Shreve, Hayden, Stone & Co., New York; Mrs. & Mr.
L. Morris, Hornblower & Weeks, Philadelphia; Robert G.
Rowc, Stroud & Company, Incorporated Philadelphia
54
E.
The Commercial and Financial Chronicle
(2294)
Jansen
Mr.
&
Hunt.
Mrs.
J.
White, Weld & Co., New York;
Woollomes, Wulff, Hansen &
Paul
Co., San Francisco
Mr.
&
Mrs. Howard W. Hunter, Equitable Securities of
Canada, Toronto; Mr. & Mrs. Kur; rl.
Grunebatim, New York Hanseatic Corporation, New York; Mr. & Mrs. Arthur C. Turner, New York
Corporation, New York; Mr. & Mrs. Jack C. Morris, Norris £ Hirshberg, Inc., Atlanta
Hanseatic
Edward
H. Hills, Eldredge & Co., New York; F. Bradford Simpson,
Jr., Aubrey G. Lanston. & Co., New York; Mr. & Mrs. Robert V.
Wehrheim, Philadelphia National Bank, Philadelphia; Mr. and Mrs.
John J. Kenny, J. J. Kenny Co, New York; Alex. Seidler, Jr.,
National State Bank, Newark
Philip K. Bartow, Wood, Slruthers & Co., New York; Mr. & Mrs.
Joseph W. Dixon, American Securities Corporation, New York;
Mr. & Mrs. Daniel T. Pierce, Jr., Hirsch & Co., New York
Andrew
Frank
E.
Midland
J.
Raymond, Dominion Securities Corporation, New York;
Baker, Fulton, Rcid & Co., Cleveland; Derek G. Simpson,
Corporation, Toronto; Mr. & Mrs. Howard W.
Hunter, Equitable Securities of Canada, Toronto
Securities
Mr.
&
nard
...
Thursday, December 13, 1951
Charles McK. Lynch, Jr., Moore, Leo¬
Lynch, Pittsburgh; Fred W. Hudson,
Ball, Burge & Kraus, Cleveland
Mrs.
&
C. Pierce, Rauscher, Pierce & Co., Dallas;
O. V. Cecil,
Lynch, Pierce, Fenner & Beane, Now York; Mrs. Charles C.
Pierce; G. Shelby Friedrichs, Howard, Weil, Labouisse, Friedrichs
& Co., New Orleans; E. Clyde Hawkins, Rauscher, Pierce & Co.,
Charles
Merrill
Houston
Hempstead Washburne, Harris, Hall & Co., Chicago; Mrs. Thomas
Beckett, Jr.; John H. Glc/issner, Putnam Fund Distributors, Boston;
Thomas Beckett, Jr., First Southwest Company, Dallas
Mr. & Mrs. John R. Crunkleton, Mercantile Trust Company, Baltimore;
Mr. and Mrs. Walter A. Schmidt, Schmidt, Poole & Co.,
Philadelphia
Volume 174
Number 5072
.
.
.
(2295)
The Commercial and Financial Chronicle
Mr. & Mrs. Herman L. Lind, Camo & Co., Portland, Oreg.; Mr. & Mrs. George A. Mcfraui,
McFaul, Portland, Oreg.; Mr. & Mrs. Dickinson C. Harper, Win. P. Harper & Son & Co.,
John
C. Hagan, Mason-Hcgan, Inc., Richmond; Mrs. & Mr. Joseph Ludin, Dillon, Read & Co., New
York; Mr. & Mrs. Allan C. Eustis, Jr., Spencer Trash & Co., New York; Mrs. Harold H. Cook; Edward
Prescott, Prescctt, Shepard & Co., Cleveland; Harold H. Cook, Spencer Trash & Co., New York
P. Sharpe, Mercantile Trust Comoany, St. Louis; Artnur C.
McCall, Alester G. Furman Co., Greenville, S. C.; Newell S. Knight,
Mercantile Trust Company, St. Louis; Alester G. Furman, Jr.
Alester G. Furman Co., Greenville, S. C.
Frank C. Trubee, Jr., Trubee,
Clarence
burg;
E. Taylor, Strader,
Chester
O.
Gale,
Ccllins & Co., Buffalo;
Taylor & Co., Lynch- *
Trubee,
Collins
&
Co.
James R. Burkholder 3rd, Holton, Farra Company, Lexington, Kv.;
Mr. & Mrs. John M. Heimerdinger, Walter, Woody & Heimerdinger,
Cincinnati*, John G. Heimerdinger, Walter, V/oody & Heimerdinger,
Cincinnati; Julian A. Magnus, Magnus & Co., Cincinnati
Montieal; John Clifford Folger, Folger, Nolan, Inc., Washington, D. C.; Mr. & Mrs. Jay N. Whipple,
Bacon,
Education
Arthur J. C. Underbill, Arthur Wiesenberger <6 Co., New York;
Charles M. Werly, Putnam Fund Distributors, Boston; Edson Gould,
Arthur Wiesenberger & Co., New York; William O. Cusack,
The Keystone Company of Boston, Boston
Murray Hanson, Investment Bankers Association, Washington, D. C.; Mrs & Mr. Julicn H. Collins,
Julien Collins & Co., Chicago; Miss Andrea Bell, Montreal; Russell D. Bell, Greenshields & Co.,
Buffalo
Committee
Meeting
Whipple
Hess &
Seattle;
Harold M. Martin, Murphey Favre, Inc., Spokane
P.
William
55
&
Co.,
J.
Raymond Smith, Weeden & Co., New York; John
Cooley & Co., Hartford; Spencer Phillips,
Emanuel, Deetjen & Co., New York
L. Gaerste,
Chicago
Breakfast
Meeting, Public Service Securities
Committee
56
Jesse
Mr.
The Commercial and Financial Chronicle
(2296)
A.
&
Sanders, Jr., Sanders & Newsom, Dal'as;
W. Carroll Mead, Mead, Miller & Co.,
Mrs.
Baltimore
J. Ernest Savard, Savard, Hodgson & Co., Montreal; P. R. Hampton, Bell, Gouinlock & Co., Toronto;
Mrs. G. C. Stevenson, New York; Andrew G. Curry, A. E. Ames & Co., Inc., New York; Mrs. Howard
Hunter, Toronto; Louis G. Mudge, International Bank, New York; Derek G. Simpson,
1
"V
Midland Securities Corp., Toronto
James H.
John
Mr.
Lemon, Johnston, Lemon & Co., Washington, D. C.; Mrs.
Hagan, Richmond; Mrs. James H. Lemon; Thomas Whiteside, Chace, Whiteside, West & Wipslow, Inc., Boston
C.
&
Mrs. James
Steele &
Alan
K.
F. D.
Mr. & Mrs. Philip M. Stearns, Estabrook <fc Co., Boston;
Mrs.
Harold S. Stewart, El Paso; Charles R. Bennett, U. S. Investor,
Boston
H. Scott, James H. Scott & Co., Pittsburgh; Mr. & Mrs. Harry J. Steele, Fauset,
Co., Pittsburgh; Mr. & Mrs. Arthur F. Humphrey, Jr., Geo. G. Applegate & Co., Pittsburgh
Browne, Bank of America, San Francisco;
Farrell, City National Bank & Trust Co.,
Kansas City, Mo.
&
Mrs.
Thursday, December 13, 1951
Albert T. Armitage, Coffin
Incorporated, Boston
&
Burr,
E. Clyde Hawkins, Rauscher, Pierce & Co., Houston; Mr. & Mrs.
Charles C. Pierce, Rauscher, Pierce & Co., Dallas; Elmer A. Dittmar,
Dittmar & Co., San Antonio
Herman A. Feldmann, Distributors Group, Incorporated, New York; Stuart R. Reed, Paine, Webber,
Jackson & Curtis, New York; Arne Fuglestad, White, Weld & Co., New York; Herbert V
B.
Gallager, Yarnall & Co., Philadelphia; A. Webster Dougherty, A. Webster Dougherty & Co.,
Philadelphia; Robert E. Nowlan, Stroud & Company, Incorporated, Philadelphia
Mr. & Mrs. John T. Knox, Federal Land & Intermediate Credit
Banks, New York; James S. Graham,
Allison-Williams Co., St. Paul; Mr. and Mrs.
George J. Schaust, First National Bank of Minneapolis;
Bernard B. Knopp, First National Bank of St.
Kalman
Mr.
...
Paul; Mrs. John Middlemist; Donald E. McFarland,
& Co., Minneapolis; Paul L.
Mullaney, Mullaney, Wells <ft Co., Chicago; John A. Middlemist,
Northwestern National Bank of Minneapolis
Clair F.
Va.;
Cassell, C. F. Cassell & Co., Charlottesville,
James S. Budd, Jr., Citizens & Southern
National
Bank, Atlanta; Jesse P. Donnally,
Peoples National Bank, Charlottesville, Va.
Volume ,174 "Number 5072
laicremmoCehT.
and Financial Chronicle
..
(2297)
57
_
.
Mr. & Mrs. Delmont K. Pfeffer, National City Bank
of New York
Mr. & Mrs. Irving J. Rice, Irving J. Rice £ Co., St. Paul; Harry H. White, White, Hattier & Sanford,
New Orleans; Mrs. Thomas Johnson; James £. Roddy, Scharff & Jones, Inc., New Orleans;
Mrs. & Mr. H. Wilson Arnold, Weil, Arnold & Crane, New Orleans
Mr. & Mrs. Walter W. Craigie, F. W. Craxgie. & Co+
Richmond; Russell D. Bell, Greenshields & Co.,
Montreal
Mr.
& Mrs. Julian W. Tindall, J. W. Tindall &
Co., Atlanta; Mr. & Mrs. J. Hollis Austin, J. W
Tindall & Co., Atlanta; Mr. & Mrs. Hagood Clarke, Jr., Atwill & Co., Miami Beach; Mr. & Mrs. Donald
B.
Brayshaw, Lord, Abbett
&
Co.,
Atlanta;
Mr.
&
Mrs.
J.
Fleming
Settle,
J.
H. Hilsman
£
Co.,
Atlanta
Susan
Finney, New York; Howard
York; Lee W. Carroll, Lee
Finney, Bear,
W. Carroll &
Stearns & Co.
Newark;
George F. Noyes, The Illinois Company, Chicago; M. Carter
Gunn, Scott, Horner & Mason, Lynchburg
New
Co.,
Henry V. B. Gallager, Yarnall & Co., Philadelphia; A. Webster
Dougherty, A. Webster Dougherty & Co., Philadelphia;
Edward
Glassmeyer, Blyth & Co., Inc., New York; ;
/
Arne Fuglestad, White, Weld & Co., New York
P. R. Hampton, Bell, Gouinlock & Co., Toronto; Benjamin'A. Walter, Bingham, Walter £ Hurry, Los
Angeles; Mrs. and Mr. William S. Hughes, Wagenseller £ Durst, Inc., Los Angeles; Mrs. & Mr.
W. Wayne Glover, California Bank, Los Angeles
Mrs. Hagood Ciarke, Jr., Miami; Quitman R: Ledyard, J. C. Bradford & Co., Nashville; Mrs. & Mr.
Roy W. Hancock, Hancock, Blachsto'ck £ Co., Atlanta; Mrs. G. Shelhy Friedrichs, New Orleans;
Carr Payne, Cumberland Securities Corp., Nashville; J. C. Bradford, J. C. Bradford
Co., Nashville
Thomas Whiteside, Chace,
Whiteside, West &, WinsloU), Inc.> \
Boston; Julian A. Space, Jr., Johnson, Lane, Space & Co., Savannah;
Robert L. Osgood, Vance, Sanders & Co., Boston;
E. Merrill Darling, Kidder, Peabody & Co., Boston
Cyrus B. Aldinger, Fordon, Aldinger & Co., Detroit; Mr. & Mrs. Kelton E. White, G. H. Walker £
Co., St. Louis; Ralph Fordon, Fordon, Aldinger £ Co., Detroit; Mr, & Mrs. Harry Theis,
Albert Theis £ Sons, St. Louis
58
The Commercial and Financial
(2298)
Mr.
&
Mrs.
Frank
H.
Morse, Lehman
Walter L. Morgan, Wellington Fund, Inc., Philadelphia; Sidney S. Blake, H. M. Byllesby & Company,
Incorporated, Philadelphia; William K. Barclay, Jr., Stein Bros. & Boyce, Philadelphia; Francis M.
Brooke, Jr., Brooke &. Co., Philadelphia; Mrs. Sidney Blake; Mrs. William K. Barclay,
Mrs. Francis M. Brooke; Mrs. Walter L. Morgan
Bros
New York
Andrew
Mrs.
J.
Bacon,
Raymond. Dominion Securities Corporation, New York;
Savard, Montreal; Mr. & Mrs. G. C. Stevenson,
Stevenson & Co., New York; J. Ernest Savard, Savard,
Hodgson & Co., Montreal
J.
Ernest
John
Co., New York; Richard K. Buechler,
York; Mrs. Herman B. Joseph; Thomas H.
T. H. Jones & Co., Cleveland; Herman B. Joseph,
T. H. Jones & Co., Cleveland
Wasserman,
Asiel
&
E. F. Hutton & Co., New
Jones,
Jr.,
Courts & Co., Atlanta; Harris B. McLaren, McDonald & Co., Cleveland; Mortimer
Cohen, Stern, Agee & Leach, Montgomery, Ala.; Lloyd B. Hatcher, Trust Company of Georgia,
Atlanta; Joseph J. Sheehy, Trust Company of Georgia, New York; Edwin B. Horner,
Scott, Horner & Mason, Inc., Lynchburg
James W. Means,
A.
Mr.
&
Mrs. Robert
H. Craft, Guaranty Trust Company,
New York;
Mr. & Mrs. Robert E. Broome, Guaranty Trust Company, New York;
Paul
Porzelt,
Emanuel,
Deetjen
&
Co.,
New
York
Mr.
&
Mrs.
Howard
W.
Hunter,
William
Mark
F.
A.
Hanni
Equitable
Chronicle
Mr.
..
Mrs.
*
Thursday, December 13, 1951
Laurence
Marks
M.
Marks,
Laurence
M.
& Co., New York
& Mrs. Woodford Matlock, Broad Street Sales Corporation, New
York; Bernard B. Knopp, First National Bank of St Paul, Minn.;
S. Whitney Bradley, Eaton & Howard, Inc., Boston; F. Seymour
Barr, Barr Brothers & Co., New York; F. Bradford Simpson, Jr.,
Aubrey G. Lanston & Co., New York
Mr.
Drexel & Co., Philadelphia; Robert A. Whitacre, First National Bank, Phoer.ix;
Lucas, Eisen & Waeckerle, Kansas City, Mo.; Donald A. Seltsam, Seltsam,
Co., Topeka; Philip J. Rhoads, First National Bank & Trust Co., Oklahoma City;
Walter I. Cole, Beecroft, Cole & Co., Topeka
Machold,
Lucas,
&
Securities
of
Canada,
Toronto; P. R. Hampton, Bell, Gouinlock & Co., Toronto; Mrs. &
Mr. Arthur C. Turner, New York Hanseatic Corporation, New York
Kenneth
Mr.
&
S.
Mrs.
Distributors Group, Incorporated,
Adolph Woolner, Bache <£ Co., New York;
Darnall Wallace, Bache & Co., New York
Gaston,
New York;
Mr. & Mrs,
Number 5072
Volume 174
...
Sidney L. Parry, Chas. W. Scranton & Co., New
Haven, Conn.: Mary C. Lincoln, Investment
Bankers Association, Chicago
:
(2299)
The Commercial and Financial Chronicle
Mr.
&
Mrs.
Albert
Investment Bankers
Company,
Webber, Jackson & Curtis, Boston; Mr. & Mrs. Gordon L. Calvert,
Association, Washington, D. C.; Mr. & Mrs. Philip F. McLellan, Fifty State Street
Boston; Mr. & Mrs. Edward S. Amareen, Coffin & Burr, Inc., Boston
Pratt, Paine,
Mr.
&
Mrs. Ralph
Co.,
Detroit;
59
W. Simonds, Baker, Simonds &
William L. Hurley, Baker,
Simonds
&
Co., Detroit
X-
Herbert
R.
Anderson, Distributors Group, Incorporated, New York;
O'Rourke; Herbert A. Feldman, Distributors Group.
Incorporated, New York; Mrs. William Cusack, The Keystone Com¬
T. Nelson
Mrs.
pany
of Boston,
Boston;
T. Nelson O'Rourke,
T. Nelson
O'Rourke,
Inc., Daytona Beach
Edward
D.
Jones,
Earl
M.
Edward D. Jones &■ Co., St. Louis; Mr. &
Scanlcn, Earl M. Scanlon & Co., Denver
Woolfolk,
Woolfolk & Shober, New
William A. Parker, Parker Corporation,
Boston; Frank B. Bateman, Blair, Rollins
& Co., Incorporated, New York
Robert
M.
Orleans;
Mrs.
Drobnis, Chicago; Miss Mary Lou Coburn, Investment
Association,
Chicago;
Erwin W. Boehmler, Investment
Association, Chicago;
Mrs. Elaine Holmes, Investment
Bankers
Association, Washington,
D. C.; George F. Noyes, The
Illinois
Company, Chicago; Alden H. Little, Investment Bankers
Association, Chicago
Gregory & Son, Inc., New York; Robert K.
Winthrop & Co., New York;
John V. Hollan,
Co., New York; Erwin W. Boehmler, Investment
Bankers Association, Chicago; A. J. Bianchetti, Barr Brothers & Co.,
New York; Walter Morse, Lehman Brothers, New York
George
Mrs. Mortimer A. Cohen, Sterne, Agee & Leach, Montgomery,
Ala.; Mr. & Mrs. Hugh D. Carter, Courts & Co., Atlanta
J.
Samuel
Francis
X.
Halloran,
Mr.
Coleman,
Robert
Brothers
Barr
&
&
Bankers
Bankers
S.
L. Varnedoe, Varnedoe, Chisholm & Co., Savannah; Milton
Trost, Stein Bros. & Boyce, Louisville; Carl T. Naumberg, Stern,
Arthur Nelson, Burnham & Co., New York
Lauer & Co., New York;
National Bank of the City of New York; Arthur C. Allyn, A. C. Allyn & Co.
Barringtcn, Harry Downs & Co., New York; Malcolm S. Prosser, SeattleNational Bank, Seattle; Alex. Seidler, Jr., National State Banh of Newark
Robert A. Bivins, Chase
Chicago;
Charles S.
First
Joseph T. Johnson, The Milwaukee Company, Mil¬
waukee;
Geoffrey
Crowther,
"The
Economist,"
Loudon; Laurence M. Marks, Laurence M. Marks
<&. Co., New York
0
The Commercial and Financial Chronicle
(2300)
Claude
F. Turben, Merrill, Turben & Co., Cleveland; John A.
Middlcmist, Northwestern National Bank of Minneapolis;
W. Thornburgh, The W. C. Thornburgh Co., Cin¬
cinnati; James S. Graham, Allison-Williams Co., St. Paul
Robert
Paul
E. Youmans, Bosworth, Sullivan & Co.,
Denver; Gerald B. West, Stone & Webster
Securities Corporation, New York
John
?
J.
Quail & Co., Davenport, Iowa; D. E. Bradshaw,
the World, Omaha; Dudley F. Baker, Bosworth,
Co., Denver; Joseph E. Refsnes, Refsnes, Ely, Beck
& Co., Phoenix; E. Ray Allen, E. Ray Allen & Co., Inc., Chicago
of
Sullivan &
Sc. Mrs. Eric S. Morse, W. C. Pitfield & Co., Inc., New York;
Sc Mrs. Harcourt Vernon, Wood, Gundy & Co., Inc., Chicago;
Mr, & Mrs. Arthur S. Torrey, W. C. Pitfield & Co., Ltd., Montreal
Mr.
Mr.
''s".-
'
W. Sydnor Gilbreath, Jr., First of Michigan Corporation, Detroit;
Mr. & Mrs. Thomas F. Troxell, Dillon, Read & Co., New York;
Allen J. Nix, Riter & Co., New York; Henry G. Riter, 3rd
Riter & Co., New York
James H. Scott, James H. Scott & Co., Pittsburgh; Nathan K.
Parker, Kay, Richards & Co., Pittsburgh; Milton G. Hulme,
Glover & MacGregor, Pittsburgh; Joseph C. Houston, Jr.,
Calvin Bullock, Chicago;
Henry R. Hallowell,
Hallowell, Sulzberger
A Co., Philadelphia
Thursday, December 13, 1051
E. Taylor, Strader, Taylor & Co., Lynchburg; Chester
Gale, Trubee, Collins & Co., Buffalo; Frank C. Trubee, Jr.,
Trubee, Collins & Co., Buffalo; F. V. Reilly, Commercial
& Financial Chronicle, New York
Clarence
O.
Frank Lynch, Blair, Rollins & Co., Incorporated, New York; Charles S. Parker, Jr., Chemical Bank
& Trust Co., New York; W. Neal Fulkerson, Bankers Trust Company, New York; George J. Gillies,
A. C. Allyn & Co.,~New York; Walter A. Schmidt, Schmidt, Poole & Co., Philadelphia;
William P. Sharpe, Mercantile Trust Company, St. Louis
Quail,
Woodmen
Marquette de Bary, F. S. Smithers & Co., New York; Gordon B.
Duval, Guaranty Trust Company, New York; George B. Gibbons,
Geo. B.
Gibbons & Co., New
York; Kenneth H. Wood,
J. C. Bradford & Co., New Ycrk
...
Andrew J. Raymond, Dominion Securities Corporation, New York; George C. MacDonald, AfcLeod, Young, Weir, Inc., New York; Andrew
S. Beaubien, L. G. Beaubien & Co., Montreal
William
R. Rovensky, Hornblower & Weeks, New York; Fred C.
Braun, Jr., F. S. Moseley & Co., New York; Robert B. Whittaker,
F. S. Moseley & Co., Chicavo; George T. Flynn,
Hornblower & Weeks, New York
Harold J. Schluter, First National Bank of Chicago, New York;
Delmont K. Pfeffer, National City Bank, New York; Lloyd B. Hatcher, Trust Company of Georgia, Atlanta;
Robert M. Goodwin, National City Bank, New York
..
■
Volume 174
Number 5072
.
.
.The Commercial and Financial Chronicle
(2301)
Jim
Daisies—Edward T. McCormick,
President of New York Curb Exchange; Walter L. Morgan,
Wellington Fund, Inc., Philadelphia; Alan K. Browne, Bank of America, N. T. & S. A., San
Francisco;
Crouter, De Haven & Townsend, Crouter & Bodine, Philadelphia; E. Cummings Parker,
Ames, Err.erich & Co., Chicago; Clement A. Evans, Clement A. Evans <£ Co., Inc., Atlanta
Gordon
61
Jim
Daisies—Edwin B. Horner, Scott, Horner &
Mason, Lynchhurg; Charles F. Eaten, Jr., Eaton &.
Howard, Inc., Boston; Robert B. Blyth, National City Bank, Cleveland; E. Kenneth Hagemann, G. H.
Walker & Co., St. Lous.
Standing: Rafael Buscaplia, Government Development Bank, Puerto Rico:
Robert L. Harter, Sutro & Co., San
Francisco; G. Keith Funston, President of New York Stock
Exchange; Robert A. Podesta, Cruttenden & Co., Chicago; Frank C. Carr, John Nuveen & Co.
Chicago
Carnot W. Evans, Harris, Hall &
Co., Chicago; Frank L. Reissner,
Indianapolis Bond & Shore Corp., Indianapolis; Newman L. Dunne,
W. Baird & Co., Milwaukee;
Edward McC. Blair. William
Blair & Co., Chicago; Louis G. Mudge, International
Bank, New York
Robert
Miss
Sallie
lottesville,
Horner,
Va.;
Lynchburg; Mrs. William S. Hidreth, Char¬
Mrs. Jesse P. Donnally, Charlottesville, Va.;
Edwin B. Horner, Lynchburg
'■
Mrs.
B.
Brayshaw. Lord, Abbett &
Co., At.anta;
T. Nelson
O'Rourke, T. Nelson O'Rourke, Inc., Daytone Beach; Mrs. Laurence
Chicago; Laurence W. Morgan, The Parker Corporation,
Chicago; Mrs. T. Nelson O'Rourke; Mrs. Donald B. Brayshaw
Donald
W. Morgan,
Mrs.
G.
Shelby Friedrichs, New Orleans; Char'es L. West, Rus~ &
Antonio; Robert M. Woolfolk, Woolfolk & Shober, New
G. Shelby Friedrichs, Howard, Weil, Labouisse, Friedrichs
& Co., New Orleans; Thomas Whiteside, Chace, Whiteside, West &.
Winslow, Inc., Boston; J. 'Wesley Hickman, Schneider, Bernet
Hickman, Dallas;
Mrs. Charles L. West; Walter H. Weed, Jr.,
Co.,
San
Orleans;
Union
Francis
Calvin
Goodwin, 3rd, Calvin Bullock, Philadelphia; Henry M. Ufiord.
Atlanta; Sydney P. Clark, £. W. Clark & Co.,
Philadelphia; Mrs. Robert E. Clark, New York
Bullock,
Securities
Corporation
Donald E. McFarland, Kalman & Co., Minneapolis;
Mrs. John A.
Middlemist, Minneapolis; James S. Graham, Allison-Williams Co.,
Minneapolis; Bernard B. Knopp, First National Bank of St. Paul;
John A. Middlemist, Northwestern National Bank of Minneapolis
Mrs. Herman B. Joseph,
Cleveland; Robert O. Shepard, Prescott.
Shepard & Co., Cleveland; Guy G. Wedthoff, First of Michigan
Corporation, Detroit; Mrs. Robert H. Warren, New York
New York
Mrs. Walter L. Morgan, Philadelphia; Mrs. Sidney S.
Blake, H. M.
Byllesby & Company, Incorporated, Philadelphia; Mrs William K.
Barclay, Jr., Philadelphia; Mrs. George W. Elkins, Jr., Philadelphia
Gustave
A.
A. Alexisson, Granbery, Marache <fi Co., New York; Julian
Magnus, Magnus & Co., Cincinnati; Eugene P. Barry, Shields <fi
Co., New York; Harris B. McLaren, McDonald & Co., Cleveland
62
The Commercial and
(2302)
Francisco; Mrs. John F. Egan, San
Benjamin A. Walter, Bingham, Walter & Hurry, Los
Angeles; Virgil D. Dcrdi, Blair, Rollins & Co., Inc., New York;
(standing) John F. Egan, First California Company, San Francisco;
John A. Kruse,
Prcscott, Shepard & Co., Cleveland;
George A.
McFaul, Hess & McFaul, Portland, Oreg.; H. Theodore Birr, Jr.,
Mrs.
H.
Theodore Birr, Jr., San
Francisco;
First
Samuel
William
California
Jamieson, Glore, Forgan & Co., Chicago;
W. Shannon
Raffcnsperger, Hughes & Co., Inc., Indianapolis; Edward
D. McGrew,
Northern Trust Company, Chicago; W. Sydnor Gilbreath, Jr., First of Michigan Corporation, Detroit; Guy D. Wedthoff,
First of Michigan Corporation, Detroit
James
P.
Hughes,
Company, San Francisco
L.
Varnedoe, Varnedoe, Chisholm & Co., Savannah; Mrs.
Gregory; Gvaham Walker, Jos. McManus & Co., New York;
George M. Gregory,
Gregory & Son, New York
William Gregory, Bonner & Gregory, New York;
Harry Brown, Salomon Bros. & Hutzler, Chicago; Theodore A. Von
Glahn, Salomon Bros. & Hutzler, New York; Rudolf Smutny, Salomon
Bross & Hutzler, New York; Benjamin J. Levy, Salomon Bros. &.
Hutzler, New York
Samuel L. Varnedoe, Savannah; Jerome F. Tegeler, DempseyTegeler & Co., St. Louis; John C. Hecht, Dempsey-Tegeler & Co.,
Los
Angeles;
Mrs. George
Gregory,
New York;
Mrs.
Graham
Walker, New York; Mr. & Mrs. Joseph W. Sener, John C. Legg
& Company, Baltimore
Mrs.
William
S.
Charlottesville, Va.;
Lvnchburg; Herbert V. B.
Gallager, Yarnall & Co., Philadelphia; Edward G. Webb, Scott,
Horner & Mason, Lynchburg;
M. Carter Gunn, Scott, Horner &
own
Mason, Lynchburg; William J. Price, 3rd, Alex. Brown at Sons,
&
iltir
Baltimore; J. Creighton Riepe, Alex. Brown & Sons, Baltimore
Hildreth,
Peoples
National
Bank,
Edwin B. Horner, Scott, Horner & Mason,
Financial Chronicle
...
Thursday, December 13, 1951
Rauch, Philadelphia; Kenneth H Wood, J. C. Bradford
Co., New York; Carr Payne, Cumberland Securities Corporation,
Nashville; Quitman R. Ledyard, J. C. Bradford & Co., Nashville;
Edward
D.
McGrew, Northern
Trust Company, Chicago;
J. M.
Maxwell, Northern Trust Company, Chicago; Mrs. & Mr. Andrew
S. Mills, Newhard, Cook & Co., St. Louis; William P. Shnrpe,
Mercantile Trust Company, St. Louis
Mrs. Alfred
&
Beckett, Jr., First Southwest Company, Dallas;
Mis. J.
Denver; Mrs. Thomas Beckett; Mrs. John S. Hilson,
H. Laurence Bogert, Jr., Eastman, Dillon & Co., New
York; Edward Glassmeyer, Blyth & Co., Inc., New York
Thomas
Fred
New
Brown,
York;
Theodore
C.
Henderson,
T. C. Henderson & Co., Des
Moines; A. B.
Morrison, A. B. Morrison & Co., Miami; S. Whitney Bradley, Eaton
& Howard. Inc., Boston; Charles F. Eaton, Jr., Eaton & Howard,
Inc., Boston; John L. Blake, Eaton & Howard, Inc., Boston
Volume 174
Number 5072
;
.
.
The Commercial and Financial Chronicle
Donald C. Lillis,
Bear, Stearns & Co., New York; Charles McK
Lynch, Jr., Moore, Leonard & Lynch, Pittsburgh; Saiim L. Lewis
Bear, Stearns & Co., New York; Ernest O. Dorbritz,
Moore, Leonard & Lynch, Pittsburgh
John
James
A. Cranford, Atlantic National
Bank, Jacksonville, Fla.;
George J. Schaust, First National Bank of Minneapolis, Minne¬
apolis; Stewart A. Dunn, C. J. Dcvine & Co., New York;
Jesse P. Donnally, Peoples National
Bank, Charlottesville, Va.
W.
Callaghan, Goldman, Sachs & Co., New York; Benjamin
Williams, W. E. Hutton & Co., New York; Frank L.
Newburger, Jr., Newburger & Co., Philadelphia;
L
¥««
LIT
fVT
A/ au!
William M. Cahn, Jr., Uf
Henry Herrman & Co., New York
Robert
D.
W7 lll*P>
-M
AMI
m
r
«« aA
a-a
Hi
(2303)
G. Rowe, Stroud & Company, Incorporated,
Philadelphia;
Ranch, Kidder, Peabody & Co., Philadelphia;
George L. Morris, Hornblower & Weeks, Philadelphia;
T a.L
C
M.
1
John E. Fricke, Thayer, Baker & Co., Philadelphia
Alfred
■»
'W I-
—
~
a.
D
W
.
_
„
/T
O
jm.
'
21— J
-m.
2
_
Andrew
K.
Marckwald, Discount Corporation of New
York,
New
York; Fred W. Fairman, Jr., Sills, Fairman & Harris,
Incorporated, Chicago; Philip K. Bartow, Wood, Struthers &
Co., New York; Robert Podesta, Cruttenden S. Co., Chicago
Charles L. Bergmann, R. W. Pressprich & Co., New York; Emmett
Lawshe, Carl M. Locb, Rhoades & Co., New York; Joseph D. Daivs,
Blair, Rollins & Co., Inc., New York; Reginald L.
Auchincloss, Jr., Courts & Co., New York
A1
•
!
W
.
V*
Lv
ffl'
.
f'jM
'
»
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Mrs.
Roy W. Doolittle, Buffalo;
Gerald Peters,
Peters, Writer & Christensen, Inc., Denver;
Mrs. Laurence M. Marks, Laurence M. Marks
&
Co.,
New
Mr. & Mrs. Sheldon R. Green, Chase National Bank
of the City of New York; Arnold Tschudy,
Bank of America, New York
,
York
Elvin K. Popper, I. M. Simon & Co., St. Louis;
Walter I. Cole,
Beecroft, Cole & Co., Topeka; Maurice H. Sandberg, A. E. Weltner
& Co., New York; Charles S. Werner, Wertheim & Co., New York
William
Harold
ville;
New
O. Alden, Jr., O'Neal-Alden & Co., Louis¬
Robert W. Ewing, A. E. Masten & Co.,
Wheeling, W. Va.; Edward Burns,
F. Eberstadt & Co., New York
Dalton
Couig, Hirsch
& Co., New
York; Edward
H. Hills,
Eldredge & Co., New York; Monroe V. Poole, Geo. B. Gibbons & Co.,
New York; L. Walter Dempsey, B. J. Von Irigen & Co., Inc. New York
J.
63
Mr.
&
Mrs.
V.
Mrs. William
Milton
J.
it-.
bchiuter, hirst National Bank
ot
Chicago,
York; Edward J. Jennett, First National Bank
of Chicago, Chicago; Charles A.
Capek,
Lee Higginson Corporation, Chicago
Theodore
Low, Bear, Stearns & Co., New York;
Henry Herrman & Co., ,New York;
Stein Bros. & Boyce, Louisville
M. Cahn, Jr.,
S.
;
Trost,
64
(2304)
The Commercial and Financial Chronicle
Herman
L.
Lind, Camp & Co., Portland, Oregon;
Theodore
Henderson, T. C. Henderson & Co., Des Moines; Herbert R.
Anderson, Distributors Group, Inc., New York;
Lawrence Wren, Allen & Company, New York
1
C.
Henry I. Prankard, 2nd, Lord, Abbett & Co., New York; Myron F.
Ratcliffe, Bache & Co., Chicago; Albert R. Hughes, Lord, Abbett &
Co., New York; Adolph Woolner,
New York
LORIDA
Jesse A. Sanders, Sanders &
Warren
H.
Crowell,
Mrs. Jesse A.
Mr.
&
Mrs. Graham
Bartow,
New
Jones, Cooley & Co
Hartford; Mrs. Clarence
York; James C. Warren, A. M. Kidder & Co.,
New
Ncwsom, Dallas; Mrs.
Los Angeles;
Reginald L. Auchincloss, Jr., Courts
York; Richard W. Courts, Courts &
G. Rouse, Federal Reserve
Bank, New York;
Robert
B.
Blyth, National City Bank, Cleveland; H. H. Sherburne, Bacon,
Whipple & Co., Chicago; Mrs. Karl P. Herzer, New York
Courts, Courts & Co., Atlanta; Wilbur E. Hess, Fridley &
Houston; Bill Doeg and Martin Buxby, Hollywood Hotel
Tennis pros.
v. 'V-
Williajn F. Machold, Drexel & Co., Philadelphia; Thomas S. Gates,
Jr., Drexel & Co.', Philadelphia; Clarence W. Bartow, Drexel & Co.,
New
*
A
Co., New
Atlanta
Robert L.
York; Robert E. Nowlan, Stroud & Company, Incorporated,
New York; Allen J.
Nix, Riter & Co., New York; Gustav A.
Alexisson, Granbery, Marache <fi Co., New York
.<
Thayer, Lehman Bros., New York;
& Co., New York
Maurice Meyer, Jr., Hirsch
Co.,
Sanders
Malon C.
Hess,
York
Robert
Thursday, December 13, 1951
Nathan K. Parker, Kay, Richards & Co., Pittsburgh; Milton G.
Hulme, Glover & MacGregor, Pittsburgh; Joseph C. Houston, Jr.,
Calvin Bullock, Chicago;
Henry R. Hallowell,
Hallowell, Sulzberger & Co., Philadelphia
florid
Mrs. Lcuis A. Gibbs,
W.
Bache & Co., New York
...
Mr. &
Mrs. Hugh Bullock, Calvin Bullock, New
York; Amyas Ames,
Kidder, Peabody & Co., New York; G. Keith Funston, President of
the
Mr.
&
Mr.
New
Mrs. Charles
&
Mrs.
York
C.
F. Brian
Stock
Exchange, New York
Giavin, First Boston Corporation, New York;
Reuter, Mellon National Bank, Pittsburgh
Volume 174
Number 5072
.
.
.
The Commercial and Financial Chronicle
(2305)
Continued from page 48
ambitious plans for
the
result of this
Astounding
available
self
Industrial
boom
and
year,
markable
tional
has given
production
and
re¬
a
of
demonstration
na¬
national
earning capacity. The country has
spiral
upward
designed
and
to
degree to achieve their purpose.
clude
ending
tracts for
supplies have, how¬
in the
way
essential
is
to
in
mind that
from
that
certain
it
or
been
relatively modest, there has
coincidental and extremely
lesser
within
ternal influences. All
and
are
exposed
acceleration
of
the
rate
now
bears all the well-
The
essence
inflation
of
disease, which is
sources.
The
rearmament
which
now
wars
engendered it.
with
its
as
old
which
that
always
History is replete
recurrences
and
that follow in its train.
parent
the hills,
as
have
the
the
It
ills
is ap¬
governmental
measures, imposed over a year ago
in anticipation of a spurt in the
is
Western
flow
of
re¬
of
war
and
pe¬
come
may
or
new
be
studied,
it is
as
launching
of excessive
one
world
con¬
The
evidence
consumption
pointing to
has
become
the
to
the free countries
main
made to find
it.
with
economies
and the
of
most
obviously
search
would
to
for
be
to
press
new
on
sources
supply and substitutes,
run
especially
and time is
best
lution
precious.
chances
of
the
of
democratic way of life, is com¬
patible with the full range of thft
expensive social services to whidif
Western
measured
into
first
by three
most
and
be
can
criteria.
obvious
The
of
all,
certain
materials
too
at
early
an
to the
of
purposes
-
consumption,
-
straining
mizing
of
may
to the
relation
MUNICIPAL
sacrificing
for
row
consumption
draft
improvidentljg
an
irreplaceable re¬
sources, a weakening of the capi¬
tal structure, and last, but by no?
means
least, a further general
undermining of the integrity and!
purchasing power of money. These
are
not the ingredients for any*
strategy designed to win the coMf
on
war.
|>
con¬
mini¬
of any plans for the
success
and
the
greater
co-ordinatiCHR
democracies'
economies^
other
amongst
things, ant
eye on inflation, would depend ont
their being of wide scope and
comprehensibility and
culcation
of
the in¬
idea®-
on
liberal
more
than pertain at present
in regard!
to the pooling and distribution dt
as well as material re¬
financial
The countries
sources.
must
the
world's
of
Danger of Economic Nationalism
to
still
come
the
aid
have not.
of
the
that
countries
within
of
group
the
be
found
so,
its removal would be
to the examination
of
Continued
many
might,
stumbling block.
a
on
a
R. A. DALY CO.
Limited
in
Members of The Investment Dealers' Association of Canada
underwriters
and dealers
in
Canadian
can
purchasing
of
power
the
money.
the effective demand for goods
If
is
and
44 KINO
Government, Municipal
Corporation Bonds
STREET WEST
ST.
414
JAMES STREET WEST
TORONTO
greater than the supply at given
MONTREAL
prices, the adjustment will occur
sooner or later by an appropriate
fall in the value of money.
BELL, GOUINLOCK & CO.
On
each
these
of
three
the charge that the world is over-
Established 1920
MONTREAL
R. A. DALY & CO.
counts,
LIMITED
consuming
and
trying
to
live
beyond its means can be sustained.
Particularly does the test of over-
TORONTO
WINNIPEG
Members of
The Toronto Stock exchange
consumption provided by the be¬
of prices and the cost of
Direct private wire to Burnham and Company,
Id Broad Street, New York 5, IV. Y.
haviour
living leave no doubts. The prin¬
cipal currencies of the world have
in
KING
41
STREET
WEST
TORONTO
-
recent
the
past continued to
purchasing power at rates
lose
rarely hitherto equalled in peace¬
time and touched only for very
short
periods at the height of
DEALERS
*
wartime
IN
A
Canadian
inflation.
blement
This
currencies
of
is
enfee-
causing
universally.
great concern
Inflation—an
NESBITT, THOMSON & COMPANY
International
Problem
Government.
Municipal. Corporat4€>n Bonds
The
world
flation
total
and
is
is
of
the
regarded,
it
will
handled.
never
When
UNDERWRITERS and DISTRIBUTORS
be
each
i'U,
•'v.•••■/•. vv.''•••*..:
r.';
every
insoluble because it lies beyond
the
Limited
and sum
of domestic
country does its antiinflationary duty conscientiously,
the
problem which now seems
so
fU
decisions and, unless it
effectively
and
of in¬
product
multitude
a
local
so
phenomenon
complete
country,
control
will
treatment.
begin
Within
of any
to
this
'V/,'*
"•
Public Utility &
Saunders, King Limited
r
:
■
•
'
i
;
»
.
MONTREAL TRUST BUILDING
joint problem of inflation and
over-consumption in terms of
resources
1. canada
-
plaza
8601
North
tion
MEMBERS OF THE
INVESTMENT DEALERS' ASSOCIATION OF CANADA
Industrial Issues
PHONE
(MONTREAL) HARBOUR 9221 •
By and large, the
Treaty Organiza¬
still
endeavouring to
Atlantic
is
superimpose
fort on top
355 St. James Street,
W.
-
Montreal
has been seri¬
ously tackled.
toronto
v.'A.;
"•'"/.v."
policies there is not yet
great deal of evidence that the
available
;
v.-
to
sphere of
domestic
a
;i + ■•
Government, Municipal,
one
yield
its rearmament
or a virtually
ef¬
un¬
66?
ES&BflBflT
to-mor¬
by what happens to
IR
chal—
page
consumption to-day.
seen
that?
demo¬
countries
tendencies,
lead
have
unsparingly
It is here that Economic
Nationalism
cratic
more
capital
Thirdly, over-consumption
be
the
inflationary
maintain
to
persistently, the re-*
be
must
fast
great
world's
as
beneficial results would certainly
ensue.
Such co-operation
could
Countries guilty of this are
assets.
SECURITIES
need
the
increase
and
too
be
continued
with,
eliminating
avoiding an
and
resources
rate and more rapidly than the
discovery of substitutes. The sec¬
ond criterion is that current con¬
sumption
is
arti
these
If
they clearly are*
the attempt to reconcile then©
and
of
so¬
seem
spheres of production,
sumption and finance, with
available
America.
North
closer
to lie in the establishment of more
a
CANADIAN GOVERNMENT
Europe is becoming ae«
or with the boom im
incompatibles,
The
in Europe,
Failing this,
predicament
over
relative
a
existence
Its
rearma¬
obstacle to this
decided dearth of certain key
materials,
the
satisfactory
and
more
the
of material
a
to whether the
query as
ment, indispensable to defend thet
rapid
extent
of counter¬
means
a
.The
but the short
is
example,
industry and civilian COW"
sumption which is roaring awaj?
over-
infla¬
which
it is hampering their
rearmament, every effort must be
ing
effort.
investi¬
gation might be made of the vital
an
civilian
to
express
Over-consumption is
term.
of
>
the
as
over
World Is Over-consuming.
standards
take
customed,
method
measurement, is that current con¬
sumption may be galloping
through given available reserves
AND
emergency
-
produce
since it does not involve monetary
PROVINCIAL
such
meet, they
wanting, and sadly
still found
so
sumption.
living, rebuilding the ruins of
last
are
so.
to
exhaustion
relief
discoveries
should
into
ready under great strain in main¬
the
against the
designed to
as
be said to have resolved itself
can
effort
is being under¬
economies that were al¬
taining relatively high
all
measured, as it must be, complete and more genuine inter¬
against the voracious appptite of national co-operation, the need
modern industry and the Weir ma¬ for which has been pressing for
a
long time. If the co-operation
chine.
already existing in the military
The problem of world inflation
sphere could be amply extended
Powers
taken by
when
weighed
they are
are
problems which confront the world
being made by the
the
of the
some
of the fundamental economic
one
the
is
with
and
new
ment
attempt to do too much too quickly
available
but
added together and
are
when
known hallmarks of this financial
the
of
scientific developments, but it is
high time this excessive encroach¬
Impact of Rearmament
The country's economic
condition
Inciden¬
uncomfortably short
Ultimate
from
susceptible to them.
of
inflation.
cloth,
the
measures
II,
of inflation
complete
an
riod.
a
acute
War
rapidly becoming depleted
goods
expenditures to date have
World
rate of extraction
present
ally independent brands of infla¬
and services are already threat¬ tion.
Every country's economic
ening to go into short supply. A condition affects the economic con¬
most
disturbing
feature
to
be dition of other countries, and no
noted, however, is that although country is immune from such ex¬
actual
to
To
suit
threaten
internation¬
no
signed
parts of the globe de¬
to cut the coat according
bearing importantly on thtf
global democratic
in
of
end
earth's primary vital commodities,
there are several which at the
is rampant throughout the
are
various
factors
and that its condition
world and from which every coun¬
try is suffering in greater
true,
con¬
despite the phenom¬
in production since
has its roots in this fact.
inflation
the
degree. There
in
to
There have been, it is
some
fiscal
measures
in
tionary cause is unmistakable in
the its testimony. Inflation is democ¬
world on balance has been overracy's first enemy, and seeing the
consuming its available reserves extremely dangerous menace it
integrated with and cannot be
disassociated
spending is commencing to make
felt,
that,
proven reserves
bear
last few months, and this defense
itself
is good reason
thinking of Canada's con¬
tally, according to recent estimates
of economic inflation, it is
of
which
war
serious way
a
When
dition
got well under
the
con¬
sumption.
advance
the
90% higher than it was in 1939.
1951 and 45.9% for the
following year), actual outlays in
the early part of 1951 were smaller
than anticipated. Substantial con¬
ever,
enal
for
There is little sign of any
there
and
The balloon of inflation has been
fense purposes (26.6% for the year
made
was
by contraction else¬
such contraction in
the age of high¬ swelling with astounding rapidity
ly successful postwar recovery into and the material purchasing power
an age of renewed military pre¬
of our currency has been falling
paredness, but although very heavy very discomfortingly. The cost of
percentages of total fiscal expen¬ living index is now approximately
been
room
made it¬
soon
rising commodity
bound to happen
was
demands
where.
it, have failed in marked
been passing from
diture have been budgeted for de¬
in
as
unless
moderate
competition for
new
evident
neglected
The immediate
resources
prices,
new
rehabilitating changed volume of civilian
more
of the world.
areas
Canada's
and
poorer
w
TORONTO
QUEBEC
"
HAMILTON
LONDON, ONT.
VANCOUVER
VICTORIA
WINNIPEG
CALGARY
OTTAWA
EDMONTON
SAINT JOHN, N. B.
Efi
IBA Activities
Hemispheres
complete
the
enough,
the
is
East
totalitarian
West.
compelling
defense
economic
The
a
in
responsi¬
heavy
bility for the construction of this
economic
Western
on
shoulders
the
world's
defense
rests
the
of
quence
statesmen, and
ther
tional
it.
drains
earnings
Canada's
Rearmament Program
Canada has
a
future
dence
of
It
pursuit of the democratic
welfare
entirely
will
governed
the
the
preparations.
After a somewhat
slow start, good strides are now
being made towards implementing
the three-year rearmament plan.
The originally estimated cost of
this defense program at $5
is vast enough in
billion
itself to
the
of
inci¬
defense
enormous
is
makes
almost
be
by
meetings with the other
segments of the industry, and with
with joint
cause
apprehension as to the strain it
will place on the nation's financial
but
felt
itself
on
the
consumer,
purse
every¬
body may be compelled to make
Austerity may be com¬
sacrifices.
ing into Canadian life, but wars,
whether hot
cold, can only be
to humanity at
any such sacrifices as
may be demanded must be stoi¬
cally accepted as the premium
payable for
the
insurance of
waged
at
large, and
or
loss
liberty.
CANADIAN SECURITIES
well
traveled
President,
the
with
will
Montreal Stock
Gordon has also
IBA
Fort
arm.
to believe that an Englishman
with both shame and
sudden crisis that
has blown up in our external fi¬
nances
to which I shall refer in
that
horror,
a
brings over the
possibility that we
have to apply to be readmit¬
few
minutes,
the
horizon
may
which
made such
we
a
is not what Mr. Churchill is com¬
ing to do as is shown by the col¬
is
he
think
I
broader and
coming
for
a
matter,
that
Mr.
often supported. I
mistake, however, to
has
Churchill
think it is a
that he intends to do any¬
about that at present. He
made it clear that for
that sort of an approach it will be
suppose
thing
has always
to bargain from
necessary
strength,
preliminary necessity is to have
the strength to bargain from, and
for that, the time has hardly yet
a
:
come.
I
quite certain that the re¬
am
ports I have seen here and there—
that if he cannot persuade
Mr.to
Truman
he
cow
a
the
of
tion
would
It
go
will
with him to Mos¬
alone—are false.
to be lunacy and
go
seem
to
contrary
directly
the
main
principle of his policy.
is not to:
However, my purpose
wartime
The
the mu¬
Boehmler, Educational Di¬
an
time
by
of
still
White, Weld & Co., 40 Wall St.
who
emeritus
Secretary
our
the forelock, to kpep
events, to think out
before they happen—that
wartime
relationship has rather
lapsed
it
in recent years and I am
is Mr. Churchill's hope
that it
it
so
will be possible to
that
take
after events,
together
not
to
restore
we
run
may
but to remain in front of them and
in mastery of
is any
point in trying to pretend
way
in which public
the
that
opinion in Britain looks upon the
situation in the Far East
with
tical
that
of
is iden¬
the American
opinion. It is not, but it is possi¬
ble
to
been
to
take
taken
more
stress the
and
pains than has
in the last
18 months
points of similiarity
agreement
between
the two
policies of the two countries and
them.
this organization nom in¬
adult
its
to
by
members
our
is
He
state.
and
consultant
valuable
our
beloved
from
coast.
coast to
UNDERWRITERS
Meeting with the Groups of our
the
Canada
and
States
United
of
has
sections
all
in
industry
Ontario
made to take
was
things
counsel,
word of praise
And I must say a
by
relationship
attempt
of
abreast
tion Committees.
of Canada
AND DISTRIBUTORS
CANADIAN
SECURITIES
to me the strength of our
business and the high character
Telephone—Empire 3-7151
proven
and
in
quality of the people who are
it.
I
...v;
understand
I
know
Burns Bros.&Denton
George
Santayana's statement that if you
LIMITED
around the world and meet an
you can
be pretty
man,
go
unkind
he
sure
&
chosen to
he has
him.
whom
leagues
sure
Offices:
Brawley, Cathers
triumphant
months ago. But that
exit only 12
rector, has done splendid work in
his untiring efforts on behalf of
the Education and Public Educa¬
Exchange
Street, Toronto,
from
Plan
Marshall
the
to
ted
which
concerned, and our newcomer,
one
Erwin
Exchange
Buffalo, Montreal, Winnipeg, etc.
Jordan
believe
fact, and I ask
a
confesses it
Mary
right
Dudley Smith handles
Telephone—WHitehall 4-4900,
6
It is
high level approach to Mr. Stalin..
That is a solution, a possible solu-.
a
work
this
all
In
fancy
and to
you
don't
I
support.
that is true.
is not
would
I
Company
and
meet
an
sure
the
around
Canada
and
unkind
absolutely
vestment
The Investment Dealers' Association of
Ccnada
American.
go
you
States
an
Members:
like to paraphrase that
if
say
United
Members Investment Dealers' Association of Canada
man,
you
can
he is not
TORONTO
—
MONTREAL
—
WINNIPEG
—
OTTAWA
and
an
be
in¬
banker.
With Mason Bros.
CANADIAN
(Special to The Financial Chronicle)
LUIS
SAN
GOVERNMENT-MUN1CI PAL-CORPORATION
1
OBISPO,
Alles
P.
James
with
ciated
SECURITIES
Oakland.
He
Calif.
has become
was
—
asso¬
Brothers
Mason
formerly
Burns Bros.t-
of
local
representative for Conrad, Bruce
&
CANADIAN
Members of The Toronto
Companq
Stock Exchange
Co.
Revel Miller Adds
BANK OF COMMERCE BUILDING
(Special
ADELAIDE
-
to try and build a channel of com¬
discuss this project of a so-called
munication, to lay the foundation
for a firmer relationship of mu¬ high level approach, about which,
to be frank, I remain obstinately
tual confidence between the two
quote: "I should also like to take countries. It would be quite wrong skeptical. I am not proposing to
discuss it but rather to indicate
this opportunity to tell you what
to say that relations between our
that you are going to see under
remarkable work was done by
two countries are bad. They are
the new government of Britain, a ;
both Mr. Hanson and Mr. Calvert
astonishingly
good.
When you
in connection with the preparation
willingness to take the initiative,
think of all the efforts that the
to take bold steps, and to offer
and trial of this case and to say
common enemy has made to drive
that the Association can well be
leadership that has been missing
a
wedge
between
the
United
proud of those two members of States and its Allies, and all the for some years past.
The next division of foreign af¬
its organization."
opportunities that the Far Eastern
fairs that I want to say a word or
No one who has not been Presi¬
situation in the past 18 months
about
is
Asia,
and
that
dent
can
really appreciate the have provided for such wedge- two
outstanding work uone by Boo driving activities, then it is really divides itself into the Far East
Stevenson,
our
Secretary and incredible how good the relations and the Middle East.
In the Far East, it will be my
Treasurer.
He not only handles between the United States and its
all the fiscal and administrative Allies, and particularly your prin¬ judgment that the policy of the
work of the Association, but also cipal ally, Great Britain, are to¬ new government will differ from
the old, not so much in substance
arranges all our conventions and
day -— but they could still be
as in methods. I don't think there
Board meetings with 100% effi¬
better.
in
is well described
nursed
to
nancial
suggestion that
going to propose to
the President his solution for the
cold war with Russia, namely a
have seen the
I
Mr. Churchill is
letter
I received Friday from Hugh Cox,
our
trial counsel in the case. I
William, Port Arthur, London, Ontario
Private wire
here to seek further fi¬
anti-trust suit.
the
of
part
This
Winnipeg Grain Exchange
Branch
that Mr. Churchill is com¬
over
higher purpose, and
that is to establish a relationship,
nicipal affairs of the Association,
to the great satisfaction of every¬
Investment Dealers' Association
ing
tendency in some
a
the American press to
ray and Gordon have put a tre¬
mendous amount of effort into the
:
Stock
assume
seen
in
accompany
WATT
Members
that first thing first.
great work in the field of
State Legislation. And both Mur¬
done
Established 1903
The Toronto
Charlie
from
see
Vrtis's report that
ciency.
&
Groups.
of the regional
meetings
You
miles
attending
50,000
over
Lincoln is his strong
WATT
he has
the course of the past year
logical
civilian
Furthermore, in
other industries.
cannot
to anticipate
cause, and it is no exaggeration that, when the full impact of the
to assert that the country's near fast
mounting costs of defense
ament in
in connection
York and elsewhere
might have eventually on the gen¬
eral standard of living.
rearm¬
innumerable
made
concern
dously important part to play in
national and international
way
but also has
trips to New
and relative matters,
contemplated without some
as
to
the
effect they
be
full and tremen¬
addi¬
country's
the
on
large
in a
such
Any
weighted.
articles
legislation
regulation,
to
respect
as
that the country's already
our
and supervises
Association in
Calvert,
meet the President shows that
the activities of the
warn¬
top-heavy load of taxation, actual
and estimated, may be still fur¬
free
it is fer¬
vently to be hoped they will not
shirk
a
the rearmament pro¬
gram progresses it
may become
necessary to revise the estimates
of its final cost in
an
upward
direction
and
with the conse¬
ing that
threat
totalitarian
This is
in the meantime.
to
he is putting
I have
General
Counsel, does a brilliant job.
He
not
only runs the Washington
serious doubts have arisen
office,
very
ably assisted by
Gordon
Economic Problems
this
excellent
an
Hanson,
Murray
sufficiency of the origi¬
owing to infla¬
having run away with prices
tion
Paradoxically
Powers.
22
I think
meets
successfully
IBA
problem by having
permanent staff.
nal cost estimate,
co-or¬
economies of the
of the
Western
from
is
page
1931
Britain's Political and
officers.
of top
change
about the
Western
between the Eastern and
the
clash April 1,
historically predicted
from
During Past Year
the
Unfortunately, it has
lenge which their leaders could resources.
scarcely evade with impunity, for been officially announced re¬
that, judging by actual
it is becoming blatantly clear that cently
the
safest
bulwark against the defense expenditures during the
beginning
tide of aggression and against the six months' period
Continued
23
Continued from page
65
Canada's Astounding
Industrial Advancement
dination
Thursday, December 13,
...
•
Continued from page
long
Chronicle
The Commercial and Financial
1(2306)
to
STOCK
BROKERS AND FINANCIAL
AGENTS
Thb Financial Chronicle)
5821
LOS
C.
ANGELES,
Carter
has
been
Cal.—Charles
added
to
the
TORONTO
staff
•
;
South
of
Revel
Miller
&
Co., -050
Spring Street, members of
the Los Angeles Stock Exchange.
44
KING
ST.
W., TORONTO
78
SPARKS ST., OTTAWA
Volume 174
to
Number 5072
.
The Commercial and Financial Chronicle
.
.
play down the points of differ¬
ence.
;
-
■'
tions
1
.
the part of the
on
I
company:
exploiting
concerned
with the resulting
so
much for the
There have been times when the' this morning
Labor Government seemed rather
position, not
to
be
For
trying to
do
the
itself, but as
to the political and strategic posi¬
petroleum industry
opposite.
example, I doubt very much
whether
the
Churchill
tion.
Govern¬
ment will be
Communist Government that
accorded
ment
by
feel
the
Labor
time
some
It
I
in
office
original
at
blunder
that
not
must
the
in
this
rapid
very
formed
no
part of my intention to attempt to
the sorry events of the
the
of
country of
Anglo-Iranian
In
event,
any
in
be
a
abolished
there
a
never
was
the
as
executive
Western
in
the
of
agent
Alliance
that
the
The
area
had
but
shall
we
part of
been
more
has
—
been
called.
has collapsed and
nothing in
You
have
heard
years of
faults and mistakes of British
the
eco¬
a
"Blunder of the Week Club."
a
have
they
to
that policy,
through thick and
agreed to
it
support
thin,
of
the
Western
specifically
selves with the role of
gets
have been made to close the
gap
between income and outgo.
'
First of all, in reducing expen¬
diture—and I am talking about
our
we
like
have
We also would
it.
butter on
some
our
through addiction to
socialistic principles; believe me,,
bread.
Not
that is not the reason.
is
simply
to
import food
that
we
unwilling
cannot pay for.
Continued
international expenditure—in
The reason
are
we
on
page
6S
mediator
a
the United States will have to add
its. already
That
won't
is
horn
for
comfortable
choice
that
dilemma
sit
to
one
Brokers
•
is
EUGENE
those
two
Underwriters
•
Dealers
a
but
upon,
the point I am trying to make is,
that in the next few months one
the other of
SPOKANE
and I
minute
a
the
of
PORTLAND
area.
painful
a
SEATTLE
direct
heavy
very
pretend
either
or
cause
like to
else if that is not agreeable,
—or
to
of
TRADING
MARKETS
MAINTAINED
policies
PACIFIC
decided upon.
NORTHWEST
SECURITIES
com¬
Alliance,
upon
it
when
and
into difficulties not content them¬
cutting down our imports, we
resolutely held the volume
our imports below the prewar
level in spite of the fact that we
have a larger population and a
much higher rate of economic ac¬
tivity. We have kept down our
imports to such good purpose that
we
are
still, I think, the only4
have
Nevertheless, speaking to this country in the world that main¬
audience, I would like you to take tains food rationing, and not be¬
to
side will have to be willing when
New British
the
Economic
I must
piece of machinery and
on the
most
our
on
have
we
will have to be
East.
case
have
allies that
our
policy. That impose?;
a
whole
¬
bluff be¬
proposed Middle East
mand is
not
which
world—in
part,
strength in
a
corporal's guard of troops
the Middle
simply
failure of public rela
earnings.
great deal in recent
nomic policy and I am not one to
Over-simplifying for the sake underrate those faults. Quite on
of clarity, it seems to me the real the contrary, I earn my living by
choice is this: Either Great Britain pointing them out every week. I
must be, so to speak, reappointed run what might almost be called
commitments in that
at the moment there is
I
into,
legally
vacuum
a
policy in the Middle
Political policy
show any sympathy with the idea
that concessions for the exoloitation of oil,
validly entered
because of
vast
Western
than
would not expect this audience to
can
its
that area—and it
a
case.
a
weeks.
through
night.
economically be¬
supplies of pe¬
but the position at the
of
cause
good
Africa,
position of the
The bluff of British
Oil
complicated and difficult
story and if you will go back far
-enough, I think you can state a
very
oc¬
East.
Company.
It is
into
or
moment is that there is
the actions of the British Govern¬
and
to
were
and move out into
Ocean
over
troleum,
of the criticisms that I have
and heard in this
at¬
It is also vital
cause
last six months except to
say that
I find it difficult to
disagree with
ment
area
are
vital link. If
Western Alliance would be trans¬
dliscuss
seen
that
Indian
a
armies
Russian
cupy
have
survey to the Middle East. It is
many
nations
the whole strategic
pass
your
convince all faults and blunders as read and
a policy I would like just very briefly to
there that they are prepared to point out to you the brighter side
of the mettle and the efforts that
support, and out allies on their
Western
free
the
been made.
I
United
the
on
the
tempting to forge,
time, that
would
see
States and
Kingdom, the most painful deci¬
sions of policy in the next few
the
also
certain that had
Conservative
Government
been
area.
geographically as you
by looking at a map. It is
United
the central link in the chain that
reasonably
the
vital
a
vital
is
can
was
Govern¬
but
ago,
v
The Middle East is
willing to withdraw
recognition of the Chinese
the
more
am
67
(2307)
on
not
to
sphere
economic policy in
serve
Policy
rapidly, if I am
outrun
my
time, to the
of economic policy. The
move
as
Britain might
example of the
paradox of the ir-
good
a
well-known
restible force meeting the immov¬
able
object. The irresistible force
is the apparent necessity of doing
Pacific Nortlnvest Securities
something
X
the
has
balance
BLANKENSHIP, GOULD & BLAKELY
MEMBERS
that
payments
New
m
be done.
Let
On
each
on
the
side
crisis.
the
will
You
remember
was
economy
all possibility of
remove
free
crises
eight
State and
used
to
occur
they
about
every
planned
the
Under
years.
to
seem
Certainly
autumn
of
come
there
the
was
1949 and
long,
•
SECURITIES
1947.
now
no
one
abstract
the autumn of
Those
Portland 5, Oregon
the
fact
crises
in
and
we
had the De¬
have
has
yet
noun
as
crisis to
a
applied
a
a
arrived
all
balance
sterling
of the
area
United
in gen¬
Kingdom
Now, when that happens,
income, there
when outgo exceeds
A.
T.
T.
Teletype PD 254
national bank
out of
of pay¬
particular refuses suddenly to
balance.
Seattle-First
title in
1951.
that the
ments of the
eral
We
so-
the
Crisis in the autumn of
valuation
which
U. S. Government Bonds
two years.
called Convertibility Crisis in
McFAUL
Municipal Bonds
capitalistic system, these
economy,
every
American Bank Bldg.
Telephone MUtual 1900
now
planned
going to
the
INVESTMENT
AVENUE, SEATTLE 4
running
to be our bien¬
is
into what appears
System Teletype PD 280
&
SECOND
of pay¬
of balance
Britain
ments,
that
HESS
T
MAin 3131
only two things you can do:
One is to cut down your expendi¬
DEPARTMENT
BOND
Seattle 4, Washington
Teletype SE. 489
are
Member Federal
Deposit Insurance Corporation
tures and the other is to increase
Government, State
and
SSSN O/.
(Associate)
very
the current economic crisis. Under
,
Exchange and New York Curb
Chicago Board of Trade
Teletype SE 482-4K3
speak
me
nial
-A
Stock
briefly.
BUILDING
PORTLAND 4, OREGON
it
York
object is the ver^ great
difficulty of seeing what it is that
can
INCORPORATED
of
suddenly reappeared. The im¬
movable
Bell
Municipal and Corporation Bonds
culties, to close the yawning gap
in
WILCOX
FOSTER & MARSHALL
diffi¬
the
resolve
to
Municipal Bonds
•
BOND
DEPARTMENT
NATIONAL BANK
OF PORTLAND
S. W.
5th, 6th and Stark Streets,.Portland, Oregon
* *
*****
m
The Commercial and Financial Chronicle
(2308)
Continued from page
planned
Britain's Political and
I Economic Problems
That
is
the
on
import side,
The
and
that resolution has been kept up
I
Ahead
Problem
sometimes feel
the
that
cor¬
rect comment is to be taken from
tor 12 years.
side, we are still Tennyson's poem:
"For all experience is an arch,
out our exports with
equal self-denial. I remember in wherethrough gleams that untravthe closing months of the War, the eled world whose margin fades
On the export
pushing
calculation
was
that if we
books in the
made
to balance our
silent
for 30
seconds or more,
criticisms of the giving you, I have perhaps been
and
Socialist too concerned with the trees to see staring out of the window, and
trend which you yourself would the wood. I may have perhaps left he saiu, "No. You are quite wrong.
out the vitamins that will deter¬ The President was fortunate, very
voice, but they find themselves in
an
exceedingly difficult political mine the effect of the new diet of lucky. I would like to have had
policy. One must remember that it that way."
position.
the head of the new government is
Another silence. "But evidently
For example,
they believe in
the man, perhaps the one man that
isn't the plan,
and mean¬
returning to the price economy
still
living in the democratic while, I follow my instincts. It
and abolishing government con¬
world, who has shown that he can is my instinct to drink cham¬
trols, but how can you do that
transform a position and inspire
pagne." I am glad to say it was
when you have a large rearma¬
the whole people by the simple
champagne we were drinking.
ment program and also an export
application of courage and person¬ "It's my instinct to smoke cigars,"
program to carry through?
ality.
and with that he lit up one of
Let me
briefly illustrate that
It is always said in England that
his celebrated two-footers. "It is
point. You, in this country, know Mr. Churchill is a grand man for
my
instinct to go down to the
what a rearmament
forever and forever as we move "
the
with
ciple
67
economy
program
in¬
volves. It involves using labor and
materials and
plant capacity and
for
postwar period, we would have to world in which we could afford to finance
something
which,
Increase our exportstol50% of the
though we believe it to be neces¬
consume our own goods. You can
prewar level, by volume I mean, buy
an
English car or English sary, does not pay any immediate
mot by value. I remember how im¬ woolens or
dividends to the standard of living
English China much
were
possible that seemed to be. Well, it
was done, but by the time it was
done, the terms of trade had
slipped away from us; that is to
say, the prices of things that we
buy, the foodstuffs and raw ma¬
terials, had risen more than the
prices of the manufacturers' prod¬
ucts that we sell.
Therefore, to balance the books,
toy the time we got the exports up
of the prewar level, the
to 150%
target had risen to 175%. Well, we
bave got that. The volume of our
exports today is 175% of prewar
Jbut when we got to that point, the
target receded once again.
Because of
a
still
furthej* rise in
foodstuffs and raw material prices
^relative
we
to manufacturing
should
now
to
have
prices,
export
something like 200% of prewar in
order to balance the books.
If we
managed to get to that point, I am
beginning to think that the target
will have receded once
again.
more
world
untravelled
The
is
a
easily in Miami or New York
Thursday, December 13, 1951
...
of the
people.
but
war
a
poor man
for peace, and
life provides
perhaps
evidence
some
for
can't
that
that
has
he
been
in
Providence
by
preserved
order
to
give
leadership
to
his
people
once
again. If the great Lord Chatham
start
Another
' silence.
long
if
see
about
row
a
thing."
opinion. But he is quite convinced
to
Commons
of
House
the record of his long
I
some¬
he
And
said, "But I would like to know
what the plan is."
I
think
the
human
personal
(interest of the coming month3
doing that too. We have had not invented the phrase, I am will be to see what the plan is,
of substan¬ sure Mr. Churchill would have
which we could get rid of our food tially the same size in proportion done so and said, "I know that I
rationing
and
other things.
It to our resources as your own, but can save my country and that no Continued
from page 26
seems
to go further and further we have another burden, on top other man can."
/
^
from us, the greater the efforts of that because of this export ef¬
I would like to finish by telling
that we make.
fort
which
constantly makes it
you
a
little personal
anecdote
The essential point to make in necessary for us to push out still about Mr. Churchill to
prove that
more exports. We have a second
England, which I make regularly,
point.
is that the efforts great as they burden because, when you have to
Some five years or so ago, I was
have been, have not been enough give to the outside world more of
one
of a small group of people
and that, in a cold and cruel world, your own goods in exchange for
who were invited by Mr. Chur¬ DOUGLAS, W. LESLIE*
is the essential point. But to this the same quantity of food and ma¬
Folger, Nolan, Incorporated, Washington
chill to dine at his country house
audience I would like for just one terials that you were importing,
to help him with a speech he was DOWNEY, NORMAN S.
minute to dwell upon the fact that the economic effect is v§ry similar
Union Securities Corporation,
;
' :
making. When the time came, it
a
New York
rearmament
the efforts made have been con¬ to
program.
It
turned out to be a really very
DROBNIS, GEORGE J.
siderable. That is one difficulty of means using labor, materials, plant
foggy night, one of those that some
69 W. Washington Street, Chicago
t
seeing what can be done by econ¬ capacity and finance for some¬
of you may have experienced. I Dubois, allen c.*
omic
policy,
the
difficulty
of thing which, though necessary,
Werthelm & Co., New York
think that fog, together with mar¬
knowing how much further it is adds nothing to the standard of
malade and jet engines, are the DUNN, EDWARD K.
of
the
people
at
the
necessary to go in restricting im¬ living
Robert Garrett <fc Sons, Baltimore
three things we can still produce
moment.
ports and pushing out exports.
DUNN, STEWART A.*
better than you can.
The other difficulty is the polit¬
C. J. Devine & Co., Inc., New York
So that you can see, I think,
But so thick a night was this DUNNE. NEWMAN L.
ical difficulty. I think that the roughly the
position that we are that most of the
Robert W. Baird & Co. Incorporated,
party abandoned
Conservatives who now form the in. If you imagined that on top
Milwaukee
government, will agree in prin- of your existing rearmament pro¬ it, but I was the young man who
was
so
conscious of his appoint¬ DURYEA, WRIGHT*
gram,
you
had another similar
Glore, Forgan & Co., New York
ment with destiny that I was de¬
program of the same size in order
DUVAL, GORDON B.*
termined to get there and, losing
to
maintain
Guaranty Trust Company of New York,
your
international
New York
my
way
and finding it again,
solvency, that is the position that
we
are
in. If some controls are crawling along through the fog, I EATON, Jr., CHARLES F.
Eaton & Howard, Incorporated, Boston
reached his house. Very apologetic
necessary for you
with—if you
for being late, I found I was the EDWARDS, JOHN H.
will forgive the phrase — your
R. J. Edwards, Inc., Oklahoma City
single rearmament program, you only guest, so that in that peculiar EDWARDS, WILLIAM N.*
way, I had the remarkable privi¬
can imagine how difficult it is to
William N. Edwards & Co., Fort Worth
lege of dining alone with Mr.
get rid of controls in
EGAN, JOHN F.*
than you can in London. That un¬
travelled
world
is
a
world
in
We
an
are
armament program
'
,
In Attendance at
IBA Convention
.
r
Our 24 Offices
my
provide complete
coverage
of
America's fastest
growing
are
.V*
';•
*
■'
•
our
country
double rearmament pro¬
Churchill.
say,
of
the
Conservatives
At
Or again, the Conservatives be¬
lieve in a reduction of the crush¬
what
was
ing burden of taxation, but the
only way in which you can do
Eureka
Reno
Sacramento
Santa Rosa
Stockton
Government
honestly is by reducing ex¬
penditure, and the only forms of
expenditure that could be reduced
that he
today
length
program—which we are not will¬
ing to reduce — or the various
However
San Francisco
one
Fresno
issue
an
Obispo
Monterey
Vegas
Bakersfield
of
themselves
balanced
in
when
a
very
political
tion
in
Or
broke
three days
or
he
had
served
see
of the
Stroud
and
out,
of V-J day;
for
the
exact
of Providence
in
they find
delicately
position
in
for 20
about
<fc
Incorporated,
Company,
^
Philadelphia
\
EUSTIS, ALLAN C., Jr.*
Spencer Trask & Co., New York
EVANS,
CARNOT W.
Harris, Hall & Company
'
Chicago
EVANS,
.
•'
1
(Incorporated).
;
v:: ;V?4
1
CLEMENT A.
Evans
A.
Company, Inc.,
Si
f
Atlanta
I
minutes
time
said
hadn't
I
or
anything
so—and
made
a
it
Mr.
Churchill
THOMAS
Co.
W.
Illinois
Continental
Trust
So
said, "Well, in that case, sir, I
am
very
glad
that Providence
didn't have the same plans for
you that it did for Mr. Roosevelt."
that,
EVANS,
was
remark.
I
At
Trust Company,
Francisco
ERGOOD, RUSSELL M., Jr.*
war,
the Hand
Well,
re¬
which the loss of only a very few
votes might cost them their posi¬
Santa Barbara
September 3,1939,
war
San
neither more
less, and it was difficult not
nor
to
the
LESTER II.*
American
had been dismissed with¬
two
that
Elkins, Morris & Co., Philadelphia
EMPEY,
this.
might wish to
it
in
day
GEORGE W.*
ELKINS, Jr.,
a
on
Company,
Francisco
Clement
duce those, one can hardly blame
the politicians for failing to make
San Jose
Las
our rearmament
social welfare programs.
Oakland
San Luis
either
are
the
San
I
peculiar thing
that he had gone into the
that
<■?'}
shall
was,
somewhat one-sided.
one point in it, Mr. Churchill
remarked
it
California
First
conversation
The
gram.
Efforts
lApV
??»
with
of
National Bank
Chicago,
Chicago
St
a :
\
•
EW1NG, ROBERT W.
A.
E,..Mastcn Si
Co.,
Wheeling
""
FAHEY, LESLIE J.*
p»b»v,
was
•
Clark & Co., Cleveland
ouiiotes
Mr. &
Mrs.
office.
once
again,
the
Conserva¬
believe in the philosophy of
Ventura
tives
Pasadena
rewards, incentives for effort and
Glendale
Los
Angeles
Beverly Hills
Whittier
Anaheim
Long Beach
energy
and enterprise,
but the
provision of rewards for those
things implies punishment for the
absence of them. A program of
reintroducing punishment is again
one that one would hardly expect
to see politicians putting forward
Underwriters
State, Municipal
when they are too dependent upon
Laguna Beach
a
San
Distributors
and
and
df,
Corporate
I
Securities
paint the picture
blackly for you. I think that to
judge by the way they have start¬
ed,
Conservative
Ministers
are
Diego
very narrow
margin of votes.
I don't want to
too
going
move
I
First California Company
Incorporated
INVESTMENT
SECURITIES
300
Montgomery Street
SAN FRANCISCO
make
some
attempt to
directions.
merely trying to explain
to you the reasons why you must
not expect too rapid
movement
and too bold steps in that direc¬
tion. How far they will go will be
the outstanding test of the courage
Members
San Francisco Stock Exchange
to
in these
am
with
Los Angeles Stock Exchange
647 South Spring Street
LOS ANGELES
wihch
they
approach
san
francisco
15DO
Mr. Churchill's Courage
The mention of the word "cour¬
me
Co.
\
members
los
exchange
stock
angeles
stock
exchange
their
problem.
age" reminds
Kaiser &
that in this point
by point survey that I have been
Russ
Building
Teletype
•
San
Franciscd
SF 1 72
J
Volume 174
Number 5072
...
The Commercial and Financial Chronicle
(2309)
69
v-
GRAHAM,
FAIRCIIILD, PAUL W.
The
First Boston Corp.,
GRAINGER,
Jr., FRED W.
Fairman & Harris, Incorporated,
Sills,
E.*
T.
First National
Chicago
FA1RMAN,
Chemical
Chicago
I.
Bank
&
Trust
Co., New York
of
the
Kansas
City
■
-
•
GREGORY,
FELDMANN, HERMAN A.
Distributors Group, Incorporated,
Gregory
.
Putnam Fund
Bonner
Distributors, Inc., Chicago
+
WILLIAM H.*
Jr.,
New
York
KURT
Atwill
and
J.
Miami
Company,
Hanrahan
&
FOLGER,
JOHN
Nolan,
Washington
s.*
Read & Simons, Incorporated,
Charleston
r
s.
White,
Weld
&
Co.,
Jr.,
W.
New
Ames
FULTON,
&
York
Dealers,
II.
of
Securities
Furman
GALE,
JAMES
and
New
Incorporated,
Barron's
JONES,
&
&
Co.,
T.
HORNER,
New
ROBERT
Chase
New
ROBERT
C.
National
L.
Bank
&
Jones
&
0.
Writer
JERRY*
&
Christensen,
of
the
City
JAMES M.
HOYE.
HUDSON, FRED W.*
jsdii, jtjurge ai Kraus,
CLYDE
Chas.
Management Co.,
KERR,
Cleveland
Bradford
&
Nashville
Co.,
S.*
Valley National Bank of Phoenix,
LEE, JAMES J.*
\ v\
Corporation, New York
Ira
Haupt
&
Arthurs,
Co.,
New York
GEORGE
E.«
Lestrange & Co., Pittsburgh
Biytn
&
Co.,
New York
Inc.,
LEVY, BENJAMIN J.*
Salomon Bros. & Hutzler, New York
Stearns
&
Co., New York
LILLIS, DONALD C.
\
Bear, Stearns & Co., New York
.
&
Linn, Chicago
Devine
&
\',:i'■;
R;'?p.v";.:
LINCOLN, MARY
'.
Chicago
G.*
Association,
' ,.;V
LIND, HERMAN L.*
Camp & Co., Portland
y
Co., New York
LINKN,
The
>
KENOWER, JOHN L.
Kenower, MacArthur & Co., Detroit
Co,, New Haven
C.
The
Investment Bankers
C.
.
WILBUR G.
W. Scranton &
Shares
KENNY, JOHN J.*
J. J. Kenny Co., New York
Farwell, Chapman & Co., Chicago
IIAWES, HARDIN II.
Harris Trust & Savings Bank, Chicago
'1}
Chicago
J.
J.
LEE, EUGENE
Bear,
Company, Cleveland
KENNEDY, FRANK T.*
Television
C.
Loeb, Rhoades & Co.,
LEWIS, SALIM L.
&
Jones
KAUFMAN,
HOWE,
Inc.,
Denver
JOSEPH, HERMAN B.*
Rodman
York
LeVIND, R. GEORGE
Company, Cleveland
Inc.,
H.
New
LESTRANGE,
Co., Washington
HOUSTON, Jr., JOSEPH C.*
Calvin Bullock, Chicago
B.
ROBERT
Jones
JUST, PAUL A.*
York, New York
E.
Sallie
M.
LEMON. JAMES II.*
Johnston, Lemon & Co., Washington
Hartford
C.*
HORTON, ARTHUR
Penington, Colket & Co., Philadelphia
Chicago
Rauscher, Pierce & Co., Inc., Houston
A.*
and
Mason,
Company, New York
EMMETT
HUDSON B.
Morgan Stanley & Co., New York
Co., St. Louis
HORNING. BERT H.
Stlfel, Nicolaus & Company,
Incorporated. St. Louis
Company of Georgia, Atlanta
Jr.,
B.*
&
WELLS
Bankers Trust
LEMKAU,
D.
Jones &
JORGENSON,
T.
L.
Co., San Francisco
LLOYD
F.DWIN
Scott, Horner
Lynchburg
York
City
LEES, LEON SM Jr.*
Publishing Co., New York
GRAIIAM*
H.
the
:
LEEMING, CHARLES E.
Chicago Tribune, New York
JONES, Jr., THOMAS H.
Philadelphia
Bank of
Phoenix
A.
EDWARD
IIORNBLOWER, RALPH
Hornblower & Weeks, Boston
National
York, New York
LEDYARD, QUITMAN R.
M.*
Cooley & Company,
Robert
Co.,
PAUL
EDWARD
JONES,
Co., New York
Lee Higginson
Edward D.
Morgan & Co. Incorporated,
Drexei
"
Lane, Space & Co., Inc.,
JOHNSTON,
York
Jr.,
Chicago
JOHNSON, WILBUR E.*
Johnson & Johnson, Pittsburgh
JONES,
HAWKINS,
Hartford
of
JOHN
Chase
New
LITTLE,
S.*
y
v
National
Bank
of
the City
York, New York
ALDEN
Investment
II.
Bankers
Association,
Chicago
WILLIAM ,D.
Continued
Bacon, Whipple & Co., Chicago
on
70
page
O.
Buffalo
Co., Philadelphia
KENNETH
r
S.
Group,
*'
P.
New
of
IIOPKINSON,
HASSMAN, ELMER G.
A. G. Becker & Co.,
of
Co., Greenville
Collins '& Co.,
Distributors
Struthers
Sutro &
The
GALLAGHER, FRANCIS P.
Kidder, Peabody & Co., New York
GASTON,
Bank
J.
Fairman & Harris, Incorporated,
HATCHER,
GALLAGER, HERBERT V. B.
Yarnall &
National
E.
Savannah
"
»
Co., Washington
Chase
of New
Carl
T.*
THOMAS
Johnson,
HOPKINS, JOHN E.
J.
Chicago,
The Milwaukee Company, Milwaukee
JOHNSON,
York
New
Company,
Goodbody & Co., St. Petersburg
Co., Seattle
St. Louis
Louis,
'
Co.,
Jones &
LAUD-BROWN.
of
'
P.*
LANE, ARTHUR D.*
The
Bank
"«
JOSEPH
Company, Toronto
CHESTER
Trubee,
C.*
Los Angeles
JOHNSON, ROBERT C.
Kidder, Peabody & Co., New York
New York
IIOLT, WILSON C.
PAUL
Boatmen's
Trust
GAERSTE, JOHN L.
Cooley & Company,
Gairdner
St.
Co., Boston
Brooke
Co.,
STERLING
Milwaukee
Intermediate Credit
&
GERALD P.*
& Co., Philadelphia
LAWSHE,
Chicago
B.
DICKINSON
HATCHER,
FIRMAN, ALESTER G., Jr.
GAIRDNER,
The
&
W.
V.
&
HOLT, ROBERT L.
Blair, Rollins & Co.
Exchange, New York
FURLONG, THOMAS R.
Chicago Tribune, Chicago
Alcster G.
ROBERT
P. Harper & Son &
Wood,
KEITH
Stock
A.
&
National
Land
Paul,
'
T.*
Shear son, Hammill &
EARLE*
JOHNSON, JOSEPH
Washington
WILLIAM
J.
Staats
JOHANIGMAN,
Incorporated,
Investment Bankers Association,
Globe-Democrat, St. Louis
DARKNESS,
JOHN
Brothers
First
The
Co.
HOLMES, ELAINE
Association,
HARRISON, MILTON S.
Washington
York
New
Bankers
York
Limited, Toronto
Association
FUNSTON, G.
Earr
MURRAY
DARTER,
Co.
&
JOHN
KYNETT,
JENNETT, EDWARD J.
The
KNOX,
KRUSEN, H. STANLEY*
Chicago
Jenks, Kirkland & Grubbs, Philadelphia
Peters,
NEAL*
WALLACE
National
HANSON,
Sills,
fullerton, c. g.
E.
Charlottesville
Co., New York
Bosworth
nOLLAN,
New York
Company,
Chicago
Bankers Trust Company, New
A.
&
R.
B.
KRUSE, JOHN A.
Prescott, Shepard & Co., Cleveland
Chicago
HODGE, CHARLES J.*
Glore, Forgan & Co.,
Atlanta
Jr.,
William
H.*
BERNARD
Robert C.
Cincinnati
Co.,
Hutton & Co., New York
JARDINE,
New York
HARRIS, DAVID
Chicago Daily News, Chicago
FUGLESTAD, ARNE
FULKERSON,
Braun,
&
'
S.
Mercantile Trust Company, St. Loufo
KREEGER,
JAMES M.
Hutton
E.
NEWELL
r£-
Bank,
KOERNER, IRVING
Allen & Company, New York
Co., Philadelphia
JENKS, MORTON*
HirKINS, CLIFTON A.
Limited,
DOUGLAS*
Shields
HARPER.
Frost,
W.
IIILSON, JOHN S.*
&
E.
&
JAMIESON, JAMES P.*
Glore, Forgan & Co.,
Co., New York
Bank,
Ristine
Co., New York
Banks, New York
IGLEHART, JOSEPH A. W.
.
Win.
P.*
W.
Eldreclge & Co., Inc., New York
Incorporated,
Co.,
HANCOCK, ROY W.*
Hancock, Blackstock & Co.,
HARPER,
Nolan, Incorporated,
Washington
National
EDWARD
Wertheim
Estabrook
Folger,
CHARLES
H.
&
Toronto
HAPP,
Howard, Weil, Labouisse, Friedrichs Ac
Company, New Orleans
FRYE,
WILLIAM
Bosworth
Braun,
Washington
Fridley & Hess, Houston
FRIKDRICHS, G. SHELBY*
john
HILLS,
Investment
FRIDLEY, EARL g.*
frosf,
Peoples
Hallowell, Sulzberger & Co.,
HANSEL,
Louis
FRICKE, JOHN E.
Thayer, Baker & Co., Philadelphia
ARTHUR
Pont &
P.
KNIGHT,
Federal
HUTTON, Jr.,
E.*
Schneider, Bernet & Hickman, Dallas
R.*
HAMPTON, PERCY R.
Bell. Gouinlock & Company,
FRICK, Jr., BENJAMIN F.
FRIEND.
HENRY
Chicago
FREDERICK, PAUL O.*
(Paul .Frederick & Company, New York
St.
du
Limited,
Baker, Simonds & Co., Detroit
F.
HILDRETH, WILLIAM S.*
HAMMOND,
Indianapolis
Co..
Francis I.
St. Louis
Canada
HUTTLINGER, KURT J.*
Moines
Fridley <Sz Hess, Houston
E. KENNETH*
Walker & Co.,
H.
Philadelphia
"
'
HICKMAN, J. WESLEY
'.L
•
Des
of
Wertheim &
KNEASS, GEORGE B.»
Philadelphia National
Philadelphia
The First National Bank ol St.
St. Paul
W.»
Securities
Corporation, Boston
KLINGENSTEIN, JOSEPH
KNOPP,
HURLEY, WILLIAM L.
Day & Co., New York
WILBUR
IIALLOWELL,
FORREY, GEORGE C.*
Indianapolis Bond & Share
&
L.
HALLORAN, ROBERT K.»
Robert Winthrop & Co., New York
Incorporated,
Angeles
Stix
R.
Va.
Jr.*
Toronto
HEWITT, CHARLES. L.
G.
forrest, george m.
Paine, Webber, Jackson & Curtis,
Corporation,
Co.,
F.,
White, Weld & Co., New York
HERZER, KARL P.*
Inc.,
Mason,
&
1IAGEMANN,
Cleveland
FORDON, RALPH
Fordon, Aldinger & Co., Detroit
Los
&
Henderson
HESS,
CLIFFORD
Folger,
Horner
C.
ARTHUR
JANSEN
Equitable
HENDERSON, THEODORE C.
T.
E.
HUNTER, HOWARD
Chronicle,
,
IIAGAN, Jr., JOHN C.*
Mason-Hagan, Inc., Richmond
FLYNN, H. LEONARD
■»McDonald & Company,
Co., San Francisco
,
,,
IIENDERSHOT, RALPH*
World-Telegram & Sun, New York
CARTER
Lynchburg,
FLYNN, GEORGE T.
Hornblower & Weeks, New York
York
New
MacGregor, Inc., Pittsburgh
Geo. G. Applegate & Co.,
Pittsburgh
HUNT,
.,
Financial
&
&
HUMPHREY,
t
G.
York
New
ARDNOLD, Jr.
&
M.
Scott,
Worcester
Co.,
Barth
GUNN,
-
BARRY
Commercial
-
,
GRUNER, GEORGE J.
Lee Higginson Corporation,
FLEMING, CHARLES J.*
HEMBURGER,
Corporation,
GRUNIGEN,
.
York
New
Woody & Heimerdinger,
Cincinnati
\
'
H.*
Hanseatic
Glover
PAUL*
Times,
Walter,
York
FISHER, CHARLES N.
,
, /
•v Singer,
Deane & Scribner, Pittsburgh
M.*
York
,
FISHMAN,
HENRY
Indianapolis
HULME, MILTON G.»
HEIMERDINGER, JOHN
Gregory, New York
New
Bear, Stearns & Co., New York
The First Boston
HUGHES, WILLIAM S.*
Wagenseller & Durst, Inc., Los Angeles
...
HEFFERNAN,
-
New
&
KING, THOMAS E.
Dempsey-Tegeler & Co., Chicago
Raffensperger, Hughes & Co., Inc.,
....
GRUNEBAUM.
FINNEY, Jr., HOWARD*
Cincinnati
GEORGE M.»
& Son, Incorporated,
GREGORY,
FINNEY, H. ROSS*
York
New
York
New
York
New
.
York,
New
KING, FRANCIS S.
HECHT, JOHN C.*
Dempsey-Tegeler & Co., Los Angeles
nEIMERDINGER, JOHN M.*
Walter, Woody & Heimerdinger,
City
'
of
HUGHES. ALBERT R.*
Lord, Abbett & Co., New York
HUGHES, W. SHANNON
Baltimore
GREEN, SHELDON R.*
The Chase National Bank
FARRELL, F. D.
City National Bank & Trust Co.,
HAYDEN, DONALD W.
Baumgartner, Downing & Co.,
Bank, Fort Worth
B.
Incorporated,
York
GATCHELL, EARLE
Hayden, Stone & Co., New York
Walston.Hoffmqii (r Goodwin
GATES, THOMAS 8., Jr.
Drexei <fc
Co., Philadelphia
GEDDES, EUGENE M.
Clark, Dodge & Co., New York
'
Harriman
eou<rt&eJ
r>.
GEORGE, EDW ARD C.
Ripley & Co., Incorporated,
Chicago
■
Carl
=
\
FRANK E.
Loeb, Rhoa.des -& Co.,
GERNON,
M.
New
York
San Francisco
Los
GIBBONS,
Jr.,
Inc.,
New York
GEORGE
Inc.
York
GIBBS, LOUIS Am*
Laird, Bissell & Meeds,
Angeles
Bakersfield
B.
-1Geo. B. Gibbons & Company,
New
Philadelphia
MEMBERS
of Michigan
Portland
Brooklyn
Corporation, Detroit
GILLIES,
C.
New
Pittsburgh
Beverly Hills
,
A.
GEORGE J.
Allyn and Company,
East
Orange
Erie
Inc.,
York
Eureka
GILLINGHAM, WILLIAM
Business Week, New York
Hagerstown
GLAV1N, CHARLES C*
Los
New York Stock
Exchange
Riverside
San Francisco Stock Exchange '*
•
Sacramento
Angeles Stock Exchange
New York Curb
Philadelphia-Baltimore Stock Exchange
•
Exchange
•
Salinas
Chicago Board of Trade
San
Fresno
GLASSMEYER, EDWARD
Blyth & Co., Inc., New York
Hartford
The
First
Boston
GLEISSNER,
GLOVER,
Corp., New York
JOHN
Putnam Fund
H.
Distributors, Inc., Boston
W. WAYNE*
Eank, Los Angeles
Commodity Exchange, Inc.
•
San Jose
New York Produce Exchange
Santa Ana
Seattle
Harrisburg
Stockton
Long Beach
Modesto
Sunbury
Oakland
Jr., JOSEPH A.
Blewer, Heitner & Glynn, St. Louis
Vallejo
Pasadena
Yakima
GOLDSMITH, BERTRAM M.*
Ira Haupt & Co., New York
GOODHUE, III, FRANCIS
Calvin Bullock, Philadelphia
GOODWIN,
>
.
UNDERWRITERS
•
DEALERS
•
BROKERS
ROBERT M.
The
National City
New
York
i..) tA.
Bank of New York,
Private wire system connects
GOULD, EDSON
Arthur Weisenberger &
all of our 35 offices
:
i
■
v.T;
Co.. New York
GRAHAM, JAMES S.
Allison-Williams
Company, St. Paul
•Denotes Mr. & Mrs.
•
Diego
California
GLYNN,
>i
S
Phoenixville
Bellingham
New York
GDLBREATH, Jr., W. SYDNOR
First
•
T
S *
i" *'
GEYER, GEORGE*
Geyer & Co.,
New York
s« 1
-
■
The Commercial and Financial Chronicle
MERRELL,
Continued,
from
69
page
MAURICE*
New York
& Co.,
Hirsch
Jn Attendance at IBA Convention
CARROLL
LITTLE,
C.
Little
H.
II.
LOOMIS.
The
JOHN
Illinois
Murphey
LORD, CHARLES G.
Baker, Watts & Co., Baltimore
V.
LOW,
Bear,
Kansas
Los
City
Laidlaw
&
York
New
Co.,
SAMUEL
Hamlin
&
The
Co., Inc., New York
Dillon, Read &
LUNT,
Lunt,
Buffalo
Alester
Chicago
McCORMlCK.
LYNCH, LAWRENCE J.*
Securities
Langley & Co., New York
C.
McDonald-Moore
&
Boston
Sha/to, Inc.,
Kalman
Lyons & Co., Louisville
L.
MacARTIiUR, ROBERT W.*
Paine, Webber, Jackson &
Hess
Curtis,
Boston
McLeod,
Young,
Incorporated,
Weir,
McGOVERN,
York
MAGNUS,
Magnus
JULIAN A.
& Company,
Clement
McDonald
&
Evans
Inc.,
Company,
&
Co.
v
.New York
Mr.
NOEL,
F.
Robert
Baird
W.
Sachs
RYONS,
ST.
The
Ryons
PETER.
REDMAN,
A.
ROBERT E.
&i Company, Incorporated,
York
Incorporated,
L.*
<
Angeles
Los
Co.,
&
CHARLES
Examiner, San
Francisco
Francisco
Co.,
A.
Philadelphia
F.
&
C.*
Sanders
C.
JESSE
&
SAVAR.O,
J.
H.*
Dallas
Louis
Dallas
& Co.,
&
Inc., Montreal
M.*
Scanlan
M.
Co., Denver
MORRIS
A.*
Schapiro & Co., Inc., New York
A.
M.
York
New
St.
ERNEST*
SCHAPIRO,
Pittsburgh
Inc.,
Co.,
Jr.*
A.,
EARL
SCAXLAN,
Earl
&
Newsom,
Savard, Hodgson
Philadelphia
II.
Co.,
EDWIN
Sanders
Co.,
MAURICE
Weltncr
E.
Edwin
C.*
SCHAUFLER, WALTER A.*
ANDREW
Dominion
York
G.*
JOSEPH
SAXDBERG,
ALFRED*
RAYMOND,
New
Weeks, New York
ROBERT
San
&
&
& Company,
Philadelphia
SANDERS,
Pierce
Bank,
Stroud
Lester,
Richards & Co.,
«
Detroit
G.
Reserve
Hornblower
J.
Securities
Biorcn
Corporation,
&
Co.,
Philadelphia
SCHAUST, GEORGE J.*
Incorporated,
Co.,
ROBERT
MYRON
NORMAN
Inc., New York
ROVENSKY, WILLIAM R.
Co., Chicago
JOHN
Co.,
Roney & Co.,
SANDERS,
&
York
WILLIAM C.
C.
Federal
York
&
&
MIDDLETON
Laird, Bisseil & Meeds, New York
IIARLEY L.*
Goldman,
I.
New
B.*
ROSE,
•
New York
<&
W
Minneapolis
Sons, St. Louis
&
Bank of Minneapolis,
Fiist National
GUY*
G., Edwards
REDWOOD,
Stroud
NOYES,
The
GEORGE
Illinois
Baker,
REED,
F.
STUART R.
Webber, Jackson
New
York
O'ROURKE, T. NELSON*
Nelson O'Rourke,
Inc., Daytona Beach
Refsnes,
REILLY,
F.
OSGOOD,
ROBERT
L.
Boston
REINHOLDT,
Blair
William
&
Reinholdt
JOSEPH A.
& Company,
OVERTON,
T.
H.
York
Corporation,
Incorporated,
Group,
York
SCOTT, BUFORD
Scott & Stringfellow, Richmond
JULIUS W>
Gardner, St. Louis
Jr.,
SCOTT,
JAMES
James H.
II *
Scott &
Co.,
Pittsburgh
Continued
Indianapolis
on
page
Cleveland
Jones
OWEN,
RALPH
Equitable Securities Corporation,
Nashville
PACE,
111
SUTTER STREET,
Garfield
SAN. FRANCISCO 4
Oakland
San
Orders
executed
Pacific Coast
on
Exchanges
Corporation, Boston
CHARLES
Chemical
New
York
New
AMORY
Parker
PARKER.
Jose
R.*
Week,
PARKER.
1-4460
The
Sacramento
CLARK
Business
Bank
S., Jr.
Trust
&
Company,
PACIFIC COAST SECURITIES
York
PARKER, E. CUMMINGS
Ames, Emerich & Co.,
Inc., Chicago
PARKER. NATHAN K.*
Richards
Kay,
PARKER,
Since
1858
Boston
W.
Scranton
<&
Co.,
Industrial, Public Utility, Railroad Securities,
New Haven
First
Boston
PAYNE,
.
,
Distributors of Primary and Secondary Offerings
Industrial Brokers
Corporation,
Commodities
Securities
PERRIGO,
CHARLES
Hornblower
PETERS.
&
R.*
Weeks,
Chicago."
GERALD-P.*
Writer
Peters,
Christensen.
: "■/'
&
Inc.,
■
PETERSON. E. NORMAN
Equitabie Securities Corporation,
MEMBERS
New
York Stock Exchange
San
New
York Curb Exchange
Los
Francisco Stock
Exchange
Angeles Stock Exchange
{Associate)
New
Members
York
PETERSON,
Putnam
WIILIAM
Fund
New
A.*
Distributors,
Inc.,
New
Chicago
FRANCISCO
4
LOS
'
ANGELES
14
'
VAN
NUYS
BUILDING
YORK
5
SAN JOSE
WALL STREET
BEVERLY
275
NORTH
4
SOUTH FIRST STREET
246
HILLS
CANON
DRIVE
Direct Private Wires
New
DELMONT
PFEFFER,
The
New
NEW
40
.
Corporation,
Nashville
Denver
SAN
Municipal Bonds
York
New
CARR
Cumberland
Investment Dealers and Brokers
407 MONTGOMERY STREET
State and
PATTBERG, Jr., EMIL J.*
SUTRO er CO.
—
A.
Corporation,
PARRY, SIDNEY L.
Chas.
Underwriters
Underwriters, Brokers and Dealers
Pittsburgh
Co.,
&
WILLIAM
Parker
The
National
K.*
City Bank of New York,
York
York
Stock
Curb
York
Exchanas
—
San
Exchange (Associate)
Cotton
Exchange
Commodity Exchange Inc.
—
—
Francisco
—
York
N 'w
Stock
Exchange
CTi'caao "Board of Trade
Produce
Exchange
Fresno Cotton Exchange (Associate)
York
14
PIIELPS, ORIN M.
Gordon
Graves &, Co.,
PHILLIPS,
Samuel
Miami
J.*
Phillips & Co.,
Wall
COrtlandt
EDWARD
K.
PHILLIPS, RALPH E.
dean Witter & Co., Los Angeles
New York 5, N.
Street
7-4ISO
600 Market
Philadelphia
Y.
Teletype NY 1-928
Street, San Francisco 4, Calif.
Private
Wires
to
Principal Offices
CORRESPONDENT OFFICES
HONOLULU, T. H.
:
MANILA, P. I.
San
PHILLIPS, SPENCER
Emanuel,
PIERCE,
Deetjen & Co., New York
CHARLES
Rauscher,
Pierce
C.*
&
Co.,
.
Dallas
•
>
X.
Chronicle,
REISSNER. FRANK L.
Indianapolis Bond and Share
The Bond Buyer, New
HAROLD
Distributors
New
Financial
Chicago
Company,
OTIS, C. BARRON*
Investment Securities
&
& Co., .Philadelphia
Poole
SCHREDER.
New York
Vance, Sanders & Company,
OSTRANDER, LEE II.
WALTER A.*
SCHMIDT,
VINCENT
&
:
E.
Ely, Beck & Co., Phoenix
Commercial
CO.
Curtis,
&
Schmidt.
JOSEPH
J.
Chicago
York
REFSNF.S,
HAROLD
National Bank of Chicago,
The First
Baltimore
Co.,
4
Paine,
Company, Chicago
Northern Trust Company, New
T.
SCI1LUTER,
JOHN, Jr.*
Watt
DANIEL
O'DAY,
&
Exchange Firms,
York
New
E.
NOWLAN,
New
ELWORTHY
& Co..
RANKIN.
RAY,
York
New
Roll
j.'.
Win.
N.«
New
J.
Co.,
.
Jones, Inc., New Orleans
Tribune,
RONEY,
Indianapolis
Co.,
BAUSCHER,
NORTH, LUDLOW F.»
JAMES W>
& Co., Atlanta
Courts
I).
Kidder, Peabody & Co.,
RICHARD C.*
Alstyne, Noel & Co., New York
Van
J.
ROWE,
<fc
RAUCII,
Milwaukee
Mrs.
&
&
>.
Dominick, New York
JOHN
ROUSE,
RICHARD
Kay.
Mead, Miller & Co., Baltimore
MEANS,
♦Denotes
Riter
&
DONALD
Herald
ROLL,
Davenport
Co.,
Rauscher.
ALLEN
NIX,
CARROLL*
MEAD, W.
Marks
Curtis,
'
AVERY, Jr.
.
•
Incorporated,
Bache
Chicago
Fifty State Street Company, Boston
LAURENCE M.*
DANIEL
NICHOLSON,
PHILIP*
McLELLAN.
York,
York
M.
Cleveland
York
New
ANDREW K.
Corporation of New
Laurence
Company,
edward m.
Webber, Jackson &
Paine,
Atlanta
MARCKW ALD,
Discount
&
Mclaughlin,
^
ROBY*
&
ROGERS,
.
York
Stock
of
RATCLIFFE,
Philadelphia
Co.,
WALTER* S.
JAMES
RASH, DILLMAX A.*
J. J. B. Hilliard & Son, Louisville
NEWHARD. CHAPIN S.*
Newhard. Cook & Co., St. Louis
mclaren, iiarris b.
W.
WALDO
A.
Company,
Trust
Newburger &
Baltimore
G.»
Robinson-Humphrey Company,
Scharff
Hartford
Co.,
&
FRANK L„ Jr.
NEWBURGER.
T., 2nd
Dominick, New York
WILLIAM
Dominick &
Sons,
Stringellow, Richmond
Dominick
RAFFEXSPERGER, G. WILLIAM
Kaflensperger, Hughes si Co.,
Rand
Houston
NEWBORG, LEONARD I).
Hallgarten & Co., New York
WILLIAM
Kuhn, Loeb & Co., New York
McINTYRE,
R.*
Neuhaus & Co.,
&
RODDY,
RAND, TIIORNBURN*
JOSEPH
Underwood.
Chicago
MALIK, JOHN S.
MALLORY,
ARTHUR*
Burnham and Company, New York
NEUHAUS.
Houston
New York
ROCKEFELLER,
QUIGG, JAMES F.
Paine. Webber, Jackson & Curtis,
Rand
NELSON.
Trust Company,
Baltimore
York
RAND.
Stern, Lauer & Co., New York
McGUIRK,
Cincinnati
Fidelity-Philadelphia
Philadelphia
Milwaukee
The
Chicago
Bank, New York
Mullaney, Wells & Company, Chicago
State of New York, Albany
Northern
The
Co., Inc., New York
NAUMBURG. CARL T.
Company,
Co.,
ROBINSON. EDWARD II.
Schwabacher & Co., New York
Bank, Seattle
T.*
ALBERT
Putnam
Quail <fe
G.
International
&
S.
New
Co.,
Association
MULLANKY, PAUL L.
EDWARD I).
McGREW.
MACHOLD, WILLIAM F,
Drexel & Co., Philadelphia
MARKS,
Minrteapolis
RAYMOND*
J.
Comptroller,
S.
Dillon & Co., New York
Eastman.
Milwaukee
The
C.
GEORGE
MacFADDEN. DONALD
New
&
Morton &
H.
<&
HENRY
Co.,
ROBINSON,
'
QUAIL, JOHN J.*
WILLIAM H.*
MUDGE, LOUIS
Company, Inc.,
GEORGE A.* ;
McFaul, Portland, Orcg.
McGEOUGH, ARTHUR N.
MacDONALD,
New
DONALD E.
<fe
McFAUL,
W.
&
Scott
PUTNAM, HENRY W.*
Brothers, New York
Lehman
Neuhaus
ROBERTSON,
Cleveland
WALTER E.*
MORTON,
Inc.,
T.
CREIGHTON
Erown
Riter
Graham,
Noyes,
&
PUTNAM,
FRANK IEBrothers, New York
MORSE,
\
Alex.
& Goodwin,
GEORGE
Parsons
New
Detroit
*
McFARLAND,
LYONS, Jr., WILLIAM L.
W.
York
PUR Y ES,
New York
Inc.,
Co.,
J.
RITER, 3rd.
Curtis,
&
New York
S. '
&
Sons,
&
Walston, Hoffman
Lehman
a.*
Co.,
Morgan
New
Chicago
Corp.,
P.
&
david b*
& Co. Incorporated,
Mcelroy,
J.
SAM B.*
Finance Publishing
LYONS,
ERIC
Piuield
C.
MORSE,
Mcdonald, Jr., harry
KEVIN
Lyons
W.
RIEPE,
DANA
PURKISS, ALBERT C.*
Atlanta
Inc.,
Co.,
Paul
RICHARDSON,
York
I.*
3rd*
MALCOLM
Hemphill,
Hirshberg,
MORSE,
Exchange Commission,
&
Washington
LYNCH, WILLARD A.*
LYONS,
Norris
Trust
J.*
Atlanta
C.*
JACK
MORRIS,
Brown
J.,
Seattle-First National
GEORGE L.*
Hornblower <te Weeks, Philadelphia
Co., Chicago
&
HARRY
Shepard & Co.,
I'ROSSER,
MORRIS,
DEAN*
&
Irving J. Rice & Company,
Co., New York
WILLIAM
Alex.
Chicago
Corporation,
Wellington Distributors, Inc.,
Philadelphia
iiarry a.
Mcdonald,
York
PRICE,
J.*
Bank
City
RICE, IRVING
PRESSPRICII, Jr., REGINALD W.*
R. W. Pressprich & Co., New York
St. Louis
MORGAN, WALTER L.*
McCORMlCK, EDWARD T.
New York Curb Exchange, New York
York
Dick & Merle-Smith, New
i).
McCormick
Kebbon,
LYNCH, FRANK
"
Blair, Rollins & Co. Incorporated,
New
Greenville
JOHN A.*
Company, Boston
Vance. Sanders &
<te Lynch, Pittsburgh
Prescott,
LAURENCE W.*
Parker
The
Furman Co.,
G.
McCANDLESS,
G.
MORGAN,
ARTHUR C.
McCALL,
LYNCH. Jr., CHARLES McK.*
Leonard
A.
Oklahoma
Boston
Jr., RICHARD*
Edwards & Sons,
MOREY,
WALTER
Shearson, Hammill <fc Co., New York
WALTER C.
A. C. Allyn and Company,
Moore,
Boston
M.*
PHILIP
National
First
Inc.,
PRESCOTT, EDWARI) P.
MOORE, RODERICK I).*
Branch, Cabell <fc Co., Richmond
MAYNARI),
D.
LYKLEMA,
Incorporated,
J. DENNY
Parker Corporation,
MAY,
LUDIN, JOSEPH*
Company,
PRATT, ALBERT*
Paine, Webber, Jackson
York
Peabody & Co.,, New
Kidder,
Chicago
WILLIAM
Underwood,
V.
WALTER
MOFFITT,
M.*
john
The Northern Trust Company,
V.*
2nd,
Lord, Abbett
New York
Trust Co.,
&
Clark, Dodge & Co., New York
Deetjen & Co., New
PRANKAKD,
L.*
& Pershing,
Mitchell
Angeles
maxwell.
L.
ROBIE
MITCHELL,
Hoffman &
Walston.
Inc.,
REX,
St.
S.*
Newhard, Cook & Co., St. Louis
£
Bank
PAUL
Emanuel,
MILLS, ANDREW
FRANK O.*
Goodwin,
MAXWELL,
LUCAS, Jr.,
LUCKE, FRANK
Atlanta
National
RHOADS,
Gibbons &
York,
BRIAN*
Pittsburgh
Francisco
San
New York
PORZELT,
F.
Mellon
News,
N,
Corporation of New
York
REUTER,
POPPER, ELVIN Iv.
I. M. Simon & Co., St. Louis
Exchange Commission,
&
Washington
Broad Street Sales
New York
MARK A.
Lucas, Eisen & Waeckerle,
Securities
WOODFORD
Corporation, New York
MATLOCK,
THEODORE*
Stearns <fc Co.,
Bank of Chicago,
ROBERT I.*
MILLOXZI,
Spokane
MARTIN, WAYNE
Milhous, Martin & Co.,
New
S.
MONROE
B.
HERBERT
Discount
PODESTA, ROBERT A.
Cruttenden & Co., Chicago
Geo.
National
First
The
JOHN
Francisco
POOLE,
Chicago
Inc.,
Favre,
San
Minneapolis
apolis,
HAROLD M.
MARTIN,
S.*
Company, Chicago
PIPER,
New York
Co.,
&
MILLER. LEWIS
MARTIN, GEORGE L *
International Bank, New York
Inc., New York
■
MIDDLEM1ST, JOHN*
Northwestern National Bank of Minne¬
of Lincoln, Lincoln
First Trust Co,
Jackson
Co.,
&
LOFTUS, EDGAR J.*
R. S. Dickson & Co.,
Laidlaw
REPP,
PIGOTT. JAMES M.
Central Republic Company,.Chicago
EDWARI) J.
MEYERS,
BENNETT S.»
MARTIN,
PIERCE. Jr., DANIEL T.*
Hirsch & Co., New York
ROLAND
Jr..
Higginson Corporation, Chicago
Lee
MEYER, Jr.,
W.
Thursday, December 13, 1951
...
(2310)
70
Francisco
—
Santa
Sacramento
—
Barbara
Fresno
—
—
Monterey
Santa
—
Rosa
Oakland
'
72
Number 5072
Volume 174
.
.
Commercial and Financial Chronicle
The
.
(2311)
Continued
from
Report No.
29
page
the
panied
The
mittee
Municipal Bond
th.a instruments of
upon
our
local
governments.
ment
obtain statutory
for the Federal govern¬
to levy upon the interest
from
state
rities
which, of course,
(4)
Efforts to
power
of
instruments
Here
ments.
municipal
and
our
again
secu¬
are also
local govern¬
Congress
re¬
days' hearings by this Committee
on the proposal.
Briefly stated, extensive factual
testimony was submitted to the
House Ways and Means Commit¬
tee by local governments at these
hearings through their governors,
attorneys general, finance officers,
mayors and other municipal offi¬
cial s.
Municipal organizations
were also represented at the hear¬
which
Act.
new
Shepard,
Cleveland;
Stone, Jr., New York.
accom-
The
Com-
Attention
stated:
"In
Maiket in 1951
781 of the Senate Fi-
Committee
nance
ments
made
are
exclude from
to
include stock
in other
cor-
porations, State and local government
obligations
and
partially
tax-exempt
Federal
obligations,
The
for this exclusion from
reason
invested
We have
directed
to
was
of such assets is
capital
that the income from
subject to the
them is not
profits tax.
"However, dealers in municipal
bonds are subject to excess profits
tax on their profits from the sale
excess
who
Those
really
las and Black of the U. S. Supreme
tion
pointed out to the Com¬
were
Springs case mittee, among them:
powerful instru¬
The unhampered power to raise
Court in the Saratoga
in
1946,
more
no
ment for centralization of govern¬
be devised.
ment could
We have in the past
the
that
mental
the
states
and
is
pointed out
their
govern¬
units realize full well that
assumption of such power by
the
absence of
a
in
Government
Federal
the
constitutional amend¬
clearly defining and limit¬
the authority and protecting
sovereignty
of
the
states,
would create a precedent—provide
a' medium
through which the
central
government might ulti¬
ment,
ing
the
—
levy
upon
the
states
and
their
mately:
of
the
mental
units
operations;
other
and
destroy
the
revenues
govern¬
of
their
indepen¬
dent home rule and sovereignty
the
states
making them
mere
of
in¬
strumentalities of the central gov¬
ernment
and subject
to its domi¬
nation.
the request of the
Department that Con¬
amend the tax law so as to
empower the Federal Government
to levy upon the interest of state
gress
and
municipal
the
bonds
House
Ways and Means Committee held
hearings
a
for governmental purposes'
vital attribute and the essence
of sovereignty.
its
Without control of
financing no government
own
can
continue
as
a
free
inde¬
and
on
that
subject as. well-
above
is
treatment
ipal bonds
eluded
are
from
required to be
taxpayer's
A
vested
capital,
denied
an
with
earnings
he
is
invested
which
to
in
his
offset
from
sale
the
credit
The
states
and
municipalities
such
This
under World War II excess
tax
cal constitutional
immunity.
Neither the House
nor
the Sen¬
proposed amending the income
tax law to include a provision to
tax
the
interest
on
state
romnlofplv Hknronnrtinnatp to
arp
are
completely disproportionate to
•
and
mu¬
the
low
should
with
arises
bonds
Profits
Tax
Of
particular
importance
to
dealers in municipals was the ac¬
tion by Congress in eliminating in
1951 Revenue Act a decided
sale
to
such
and
their
of
these
to
profit
on
other phases of the tax law.
Establishing
Fair
*
Methods of
ment
Enforcing Pay¬
Water
of
and
Sewage
Charges.
upon it and
the conclusions and
recommendations set forth do not
commit any of those organizations
jn
any way.
The Municipal Law Section of
the American Bar Association is
American Society of currently sponsoring another
a
broad study and again has invited
t.he Municipal Law. Section of the ug to participate in that under.
American
Bar
Association
and
taking.
It will be
study of the
a
organization^68 the America"® "Relief of Urban Traflic
wlter Workl AssociatiM- Nation- tion and the Fencing
works Association Nation gtreet
Congesof Off-
Parking Facilities."
?' ™soc'atlon. °.£ Rall'oad and
Utilities Commissioners; Municipal
Fi
offirpr* Assnriation- Fpd-
SersV'sfodation"ot Imerica" 4
1 America
Bankers Association
pleased
w
at
the
oonor-
pieasea at me ^oppor
tunity to have representation on
",1S
imnortant
important
commitfpp
Our
committee,
uur
^ent, ^"ce Marks has
Continued
"^
? page 72
on
■
result, section 508 of your
committee's bill provides, in ef¬
the
HANNAFORD & TALBOT
inequity existing in the 1950 Act.
bonds
admissible
as
vided
he
that
clude in his
assets
elects
A
interest
Corporation
pro¬
to
in¬
Investment Securities
profits tax net
excess
the
income
also
such
on
bonds."
UNITED
While
STATES
GOVERNMENT SECURITIES
interest
the
municipal
and
there
state
519 California Street
is exempt
profits tax net in¬
serious inequities
bonds
from the excess
come,
from
are
SAN
FRANCISCO 4
caused other holders of such bonds
by the lack of
sion
in
the
optional provi¬
an
similar
law
to
GArfield 1-8000
Beil
System Teletype SF 231 & 234
that
existing in the World War II ex¬
cess profits tax law, whereby taxexempt securities might be treated
\
STATE
"admissible assets" if the inter¬
as
cess
AND
MUNICIPAL
BONDS
them
from
est
is included
in
ex¬
J. Barth & Co.
profits tax net income.
Committee
Special
on
ESTABLISHED
Revenue
1883
Bonds
Members
We have
Specializing in
time
,
reported from time to
the
on
Committee
California Issues
That Committee
stituted
at
numbers
least
of
work
on
one
our
Revenue
as
Special
and
in
Exchang*
New York curb Exchange
Stock Exchange
(Associate)
con¬
includes
each
of
the 12 Federal Reserve cities. The
members
San Francisco Stock
New York Stock Exchange
Los Angeles
Bonds.
presently
18
member
Underwriters and Distributors of Corporate and
Municipal Securities
Stock Brokers
are:
Francis P. Gallagher, New York,
e
(Chairman);
LeRoy H. Apgar,
York; Oscar M. Bergman,
Minneapolis; William H. Clark,
Cleveland; Walter W. Craigie,
Richmond; E. W. Darmstatter, St.
Louis; O. Paul Decker, Chicago;;
Everett S. Emerson, San Antonio;
Herbert V. B. Gallager, Philadel¬
phia; William C. Jackson, Jr., Dal¬
las; Elmus M. Kalloch, Boston;
Chester W. Laing, Chicago; Mark
New
bond investment department
3Bait It of Aittcrtrtt
NATIONAL.
I&Hmnos
San Francisco,
ASSOCIATION
California
A.
Kansas City, Mo.;
Atlanta; Ferris S,
Moulton, San Francisco; Aaron W.:
Pleasants, Denver; Robert O.'
J.
Lucas, Jr.,
Means,
W.
,
Rates
and Rate Structures.
a
fect, that where tax-exempt bonds
are held by a dealer primarily for
sale to customers in the ordinary
We reported in our Interim Report A clear statement of the reason
course of his trade or business, the
the
amendment appears in
of last May quite fully on the two- for
dealer may
elect to treat such
as
Recommended Procedures
for
their
subject
is
income
Present Practices in Raising
Annual
Revenue
for
Water and Sewage Works.
Total
on
profits tax.
excess
"As
respect
from
j
tion; American Public Works As-
dealers since most
bond
Publlcly'
of
Annual
Revenue Requirements.
Fundamental Consider- dividual member of the group,
None of the listed organizations
have taken any official action
utions m Rates and Rate Struc„r„Water an'dScwa ge
Works.
Frank Gallagher, Chair™an °* 0LIJ Special Committee on
Revenue ^onds, was appointed to
seiZf °V1
* J01*", committee
T"e study was being undertaken
^,a
c°nslsUnS ^ a. ?om*
trpatmpnt
to
a
a u
-
were
municipal
tax-
on
surh
° xte'nded
be
years ago we
*lnance y1* cers Association, red
eration of Sewage Works Associa-
rates
honrk
pvpmnt
income
nicipal securities.
Excess
interest
couple of
study on
normal
of
studv
and
.
practice
capital
completed
As
in-
inequity did not arise
profits
because, under that law, taxare
fighting for the preservation
at their
of local government and all that payers were permitted,
it means under our constitutional option, to treat tax-exempt or partially tax-exempt bonds as admissystem. Under that system democ¬
sible assets if they elected to inracy itself is completely dependent
elude the interest received from
upon the continued freedom of the
such bonds in excess profits tax
states to carry on the functions of
net income.
Your committee belocal government without Federal
lieves that, while a similar option
interference.
So long as such a
should not be extended to all taxsystem is to be maintained, tax
interference
by one government payers under the present law, bewith
the functions of
the other cause the invested capital credit
rates, ranging from 8% to 12%,
can only be prevented by recipro¬
pendent state.
recently
intervals
The
pointed out in the report, it
^.e Municipal Law Secthe American Bar Associa- speaks only for the Joint Group
tion to appoint one of our mem- as a whole and does not necessarbers to represent us in a joint ily represent the views of any in-
ex-
the
at
Determination
mani¬
festly inequitable. Because munic-
bonds.
ate
Following
Treasury
money
"The
reported
developments
Own^TTtim^,
to form an idea of the progress
which the projects are making.
understand ings, speaking in opposition to the
The Special Committee
also
and
appreciate the fundamental proposed trespass by the Federal
of these bonds.
This is because wishes to remind those dealing in
principles of our dual form of con¬ Government.
In all, there were
municipal bonds are their stock revenue bonds of the availability
stitutional
government with its impressive arguments submitted
in trade or inventory and the gain of
our
Revenue Bond Report
valuable
checks 'and
balances against the proposal in the inter¬
on the sale of the bonds is treated,
Forms, Nos. 1 and 2, and their useknow full well that taxing power est of those
footing the tax bills
therefore, as ordinary income fulness and value in maintaining
in the hands of the Federal Gov¬ in our states and local communi¬
rather than as a capital gain.
It up-to-date information on reveernment over the states would, if ties and in'the interest of
preserv¬
is reported that municipal bonds nue
bond projects which they
gained, be one of the most effec¬ ing the value of our dual form of
frequently constitute 80% tos90% have handled.
tive forms of regulation and con¬ constitutional
government. Vari¬ of tne total assets of these dealers.
trol. As stated by Justices Doug¬ ous
Joint Studies
pertinent factors of the situa¬
jected the proposal.
the
on
Buyer" is joint report of that special group
providing a valuable service in was made. The report comprising
connection with reports on reve- 276 pages of printed matter is innue bond projects.
It publishes formative and reflects a thorough,
skeletonized reports of publicly study of various
pertinent phksS?
owned revenue producing projects of the subject.
Copies of these
whenever the information is made reports may be
had, as long as the
available to it for that purpose, supply
lasts, at a nominal charge
Your Committee again strongly of 50 cents per copy upon applirecommends that those represent- cation to the "Ohio Law Journal"
ing the issuers of revenue bonds Ohio State University, Coluihbus
and dealers avail themselves of Ohio. Among the
chapters in this
this service. It is intended that report of interest to dealers, in
sufficient information be given public revenue bonds are those on:
anyone familiar with such reports
Fivannirtn
the invested capital certain assets
known
as
'inadmissible
assets.'
These
again
D.
the fact that the "Bond
computing
the
invested
credit and in computing
additions, certain adjust-
capital
capital
is
Fred
71
SAN FRANCISCO: 404 Montgomery Street
Teletype SF 138
Telephone DOuglas 2-6400
NEW YORK: 14 Wall Street
LOS ANGELES: 210 W. 7th Street
Telephone Dlgby 9-3780
Telephone MAdison 6-4681
Teletype NY-1-348S
.tii
:"0
'
PRIVATE WIRE CONNECTIONS BETWEEN ALL OFFICES
/
i
,
The Commercial and Financial Chronicle
T2
Thursday, December 13, 195}
...
(2312)
Continued from 'page
Municipal Bond
by the 'Bond Buyer"
Maiket in 1951
?
A. Webster Dougherty
ments consists of
William
Banker" and
"American
Dougherty & Co.,
Philadelphia
Liptrott of the
E.
Upton
Inc.,
A. Webster
Law,
Frank-Gunther
Albert
of
of the "Bond Buyer."
The monthly winners this year
are listed
below. The award for
overall
the
and
success
of
this
undertaking.
subject of municipals was the year was made to the Northern
of the sessions by Trust Co., Chicago.
1
John S. Clark of Fahey, Clark & v* From ads entered in—
City Managers As¬
sociation; United States Confer¬
ence of Mayors; American Transit
Assocation; U. S. Chamber of
CSommerce and the American As¬
sociation of State Highway Offi¬
Band Institute;
cials.
Investment Banking Seminar
The
first
was
velop more effective methods of Chicago.
/
advertising municipal securities.
August: Hall & Company, New
Each month, January to Sep¬ York.
advertise¬
ment is picked by a committee of
judges selected b y t h e "Bond
Buyer," from the ads' entered in
inclusive,
tember,
an
The
ad considered to be the best for
originality, effectiveness and lead¬
ership is chosen. From these
monthly winners the annual award
the contest for that month.
Banking
Investment
Seminar which
held last June
pronounced success. As you
Jknow, it was sponsored by our
Association in cooperation with the
Wharton School of Finance and is made
was a
on
the same basis.
Last year the annual award was
Commerce, University of Penn4$ylvania. There were 106 repre¬ made to Ira Haupt & Co., New
sentatives of IBA member firms York. A plaque suitably inscribed
%n
attendance.
Our Education was presented to the representa¬
tive
Committee is to be congratulated
tapon the
caliber of the program
of
that
firm at our Annual
in
Convention
Hollywood;
also
T.
Other
&
The
were:
Phila¬
Bateman, Eichler & co.
Investment Securities
SOUTH
STREET
SPRING
ANGELES
13
NORTH GARFIELD
as
ANGELES
LOS
STOCK
EXCHANGE
ation.
JOSEPH
SETTLE,
Baltimore
FLEMING*
J.
H. Hilsman
<fc Co., Inc., Atlanta
SEVERANCE, CRAIG
Heimer¬
F.
Eberstadt <fc
Co.
Inc., New York
SEVING, FREDERICK
Butcher &
William C. Jackson, Jr.
T.*
Sherrerd, Philadelphia
SHANKS, Jr., WILLIAM
The Bond Buyer, New York
First Southwest Company,
SHARPE, WILLIAM P.
*
Mercantile
Wilson Lewis
Trust
St. Loulf
Company,
SHEEHY, JOSEPH J.
Franklin Maroney
,
Trust Company of Georgia, New York
.
SHELLEY, WILLIAM F.*
Blair, Rollins & Co., Inc.,
Vance, Sanders & Company, Boston
Pittsburgh
SHEPARD, ROBERT O.*
Prescott, Shepard & Co., Cleveland
James W. Means
Courts & Co.,
Atlanta
SHERBURNE,
HAROLD
H.
Bacon, Whipple & Co., New York
Andrew S. Mills
SHIELDS, CORNELIUS*
Newhard, Cook & Co.,
Shields &
St. Louis
Company, New York
SHREVE, WICKLIFFE*
SIMMONS.
RICHARD W.
Blunt Ellis & Simmons, Chicago
Brothers
New York
City
GODFREY
SIMON,OS,
J. Ludwig Mosle
G.
Rotan, Mosle and Moreland
Houston
H.
Walker
BALDWIN*
Co.,
&
Providence
SIMONDS, RALPH W.*
Baker, Simonds & Co., Detroit
Cumberland Securities Corp.
SIMONSON,
HENRY J.*
& Research
Corporation, New York
Paine, Webber, Jackson &
Curtis, Chicago
SIMPSON, DEREK
Midland
'1
G.
Securities
references to various
3
Jones, Inc.,
SIMPSON, F. BRADFORD, Jr.
Aubrey G. Lanston & Co.,
New Orleans
Inc.,
New York
.?
acted
in
the
states
City National Bank & Trust
SMITH, DUDLEY C.*
Chicago
n
SMITH, J. RAYMOND
Paul E. Youmans
Weeden
Bosworth
Association,
Bankers
Investment
Co., Kansas City
Sullivan
&
Co., Inc., New York
& Co.,
Denver
♦Denotes
Mr. &
Mrs.
/•
/
,
DISTRIBUTORS
of
SECURITIES <
INVESTMENT
Bingham,Titers Hurry
court deci¬
the
during
Member Los Angeles
Stock Exchange
621 S. SPRING-IOS ANGELES
i
TRinity 1041 ;
teletype la 224
portance and interest to the mu¬
UNDERWRITERS
-
There were several of im¬
nicipal trade in both categories.
.
Pasadena: 623 Security
t
Bldg.
—
-.
i
SYcamore 3-41W
Attention is directed to these de¬
cisions and enactments—Court De¬
and
cisions,
Appendix
1,
State
and
Legislation, Appendix 2.
DISTRIBUTORS
Respectfully submitted,
MUNICIPAL
in
Serving Southern California since 1927
SECURITIES
COMMITTEE
Lewis Miller, Chairman
CALIFORNIA'
First National Bank of
Chicago
Alan K. Browne
Bank
HILL
Los
RICHARDS
San Francisco
Angeles
621 South Spring
CO;
&
S.
Private Wires Los
,
.
•
,
Inc.
Investment Securities
bib S. SPRING ST., LOS
Cleveland
Craigie & Co.,
/
TRinity 5761
■
ANGELES 14
TELETYPE: LA 68—LA 35
Richmond
Ruth Cranston
MEMBERS:
Piper, Jaffray & Hop wood,
•.
LOS ANGELES STOCK EXCHANGE
Minneapolis
Member Los Angeles Stock Exchange
Member San Francisco Stock Exchange
WagensellerS
Fulton, Reid & Co.,
Pasadena
San Jose —Wiiittier —La Jolla
t
&
A., San Francisco
F. W.
—
T.
Walter W. Craigie
Angeles-San Francisco
San Dieco —Oakland —Lonc Beach
America, N.
R. C. Chapman
1 Montgomery Sfc,
St.
of
NEW YORK CURB
EXCHANGE
(ASSOCIATE)
Cecil R. Cummings
First of
Michigan Corp.,
Detroit
PASADENA
E. W. Darmstatter
*
Stifel, Nicolaus & Co., Inc.,
St. Louis
.
;
A
Albro F. Stepp
sions rendered and legislation en¬
year.
i
Corpn. Limited,
Toronto
James E. Roddy
Scharff &
Jr.,
National Securities
James F. Quigg
Court Decisions and Legislation in
the States
1
v
SIMONS, BURDICK*
Sidlo, Simons, Roberts & Co., Denver
Carr Payne
They are open to all.
Appended to the report are brief
n
Hayden, Stone & Co., New York
Frank H. Morse
Lehman
W.*
John C. Legg & Company,
Co., Inc.,
Walter, Woody &
dinger, Cincinnati
Dallas
Newark
The entries are not
he wishes.
limited to members of our Associ¬
MEMBER
&
Bank,
Seltsam, Hanni & Co., Inc., Topeka
SENER,
J.
especially for this contest. Each
contestant may submit for con¬
sideration as many advertisements
Pasadena
28
tising contest will be continued.
In order to qualify for entry in
this contest, an advertisement may
or may not have been
published
in the "Bond Buyer" or any other
publication. It may be prepared
Becker
State
SELTSAM, DONALD A.*
John G. Heimerdinger
Pasa¬
We understand that this adver¬
National
Chicago
delphia National Bank, Philadel¬
Francisco; Ira Haupt & Co., New
York; Wm. E. Pollock & Co., Inc.,
New York; Kaiser &
Co., San
Francisco; Commerce Trust Com¬
pany, Kansas City, Mo.; City Na¬
tional Bank & Trust Co., Kansas
City, Mo.; Lawson, Levy & Wil¬
liams, San Francisco; Stone &
Youngberg, San Francisco; H. E.
Work & Co., San Francisco; H. V.
Sattley & Co., Inc., Detroit; Stern,
Frank, Meyer & Fox, Los Angeles;
C.'N. White & Co., Oakland; and
SEIDLER, ALEX., Jr.
Elmer G. Hassman
A. G.
York
.
Smith, Barney & Co.,
New York City
phia; J. Barth & Co., San Fran¬
cisco^ Dean Witter & Co., San
New
.
C. Cheever Hardwick
A., San Francisco—
names
appearing on this
advertisement
SCUDDER, .DANA B.
The National City Bank of New York
;v "
Fauset, Steele & Co.,
Pittsburgh
S.
Jones, Cosgrove & Miller,
LOS
McKelvy & Company, Pittsburgh
America,
of
Bank
September:
N.
dena.
453
Boston
securities, is intended to lumbus, Ohio.
greater interest and de¬
July: A. C. Allyn and Company,
tising
arouse
SCOTT, WILSON A.
Joseph H. Fauset
The
,
IBA Convention
Lee Higginson Corporation
covered at one
^organization purposes.
January: Hornblower & Weeks,
Organizations participating inj Co., Cleveland, who spoke on
Obligations" and by New York.
the new study include the Munici¬ "General
Cheever Hardwick of Smith, Bar¬
February: The Marine Trust Co.,
pal Law Section of the American
Bar Association; American Society ney & Co., New York, who spoke Buffalo—The name of W. H. Mor¬
ton
&
Civil Engineers, Highway Divi¬ on "Revenue Bonds."
Co., Incorporated, New
sion; American Municipal Asso¬ Advertising Municipal Securities York, also appears on this adver¬
tisement.
ciation; Automotive Safety Foun¬
This is the second year that the
March: The Northern Trust Co.,
dation; Bureau of Public Roads;
"Bond Buyer" has conducted its
'Hie Eno Foundation; Institute of
Chicago.
'.Traffic
Engineers; Investment municipal advertising contest. As
April: Shields & Company, New
Bankers Association of America; previously reported, its purpose, York. #
national Safety Council; Regional in active support of that part of
May: Blair, Rollins & Co., Inc.,
the program of our Public Educa¬
New York.
3?lan Association, Inc.; American
tion Committee relating to adver¬
Automobile Association; Urban
June: The Ohio Company, Co¬
70
page
In Attendance at
Chester R. Durgin
t,
T. Hall, Jr.,
.represent us in this new joint
istudy.
He accordingly attended
rJhe first meeting which was held
2a New York City on Sept. 16, for
from
Charlottesville
judge the municipal advertise¬
Quentin L. Smith
to
Continued
Peoples National Bank,
the writer of the ad.
tee selected
The
J. P. Donnally
$100 is included in the award for
The commit¬
71
REDLANDS
SANTA MONICA
CLAREMONT
Number 5072
^Volume 174
.
.
.
The Commercial and Financial Chronicle
THAYER, ROBERT L.
Lehman Brothers, New York
SMITH, NORMAN P.*
Penner & Beane,
Merrill Lynch, Pierce,
York
New
•
JJ
Albert
SMITH, WINTHROP H.*
Merrill Lynch, Pierce, Penner &
'
THEIS, HARRY*
Inc., St. Louis
THEODORE*
G.
IBA PAST PRESIDENTS
Walker & Co., Hartford
H.
WALLACE,
Hayden, Miller & Co., Cleveland
SMITHERS, K. AMES
Wall Street Journal,
(2313)
WALKER, GRAHAM*
Joseph McManus & Co., New York
WALKER, LOUIS*
Theis & Sons,
THOBURN,
Beane, New York
{
Bache
DARNALL*
&
Co.,
WALTER,
SMUCKER, OTTO M.
Sun-Times, Chicago
THOMAS, WOODLIEF*
THORNBURGH, ROBERT W.
1949-50
Laurence M. Marks
Albert T. Armitage
WARD, JAMES C.
SMIJTNY, RUDOLF*
Salomon Bros. & Hutzler, New York
1948-49
1950-51
York
New
THOMAS, JOSEPH A.*
Lehman Brothers, New York
Chicago
Federal Reserve Board,
SNYDER, HARRY B.
Yarnall & Co., Philadelphia
Lane,
Johnson,
&
Co.,
Inc.,
Savannah
Cincinnati
Atlanta
Bank,
FREDERICK
Co., Incorporated,
STALKER, ALFRED*
Kidder, Peabody & Co.,
WARTERFIELD,
TORREY, ARTHUR S.*
W. C. Pitfield & Company,
E.
Allyn
and
Company,
Inc.,
Ltd.,
P.
Philadelphia
W. Clark & Co.,
New York
Digest, New York
Stein
Bros.
&
Louisville
Boyce,
TROXELL, THOMAS F.*
TRUBEE,
Dillon,
TSCHUDY,
Pittsburgh
San
of
Buffalo
ARNOLD
of
Bank
STEPHENSON, EDWIN A.
York
New
C., Jr.
Trubee, Collins Si Co.,
STEELE, HARRY J.*
America, N. T. & S. A.,
Francisco
TSOLAINOS, K. P.*
Baker, Weeks & Harden, New York
STEPHENSON, F. KENNETH
TURBEN,
Goldman, Sachs Si Co., New York
CLAUDE
Merrill,
F.
Turben & Co., Cleveland
STERN, RICHARD J.
New
Bankers
York
New
York
UFFOltD,
STEVENSON, 3rd, ROBERT
Calvin
Association,
Hanseatic
Corporation,
Company, El Paso
UNDERIIILL, ARTHUR J. C.
Arthur Wiesenberger Si Co., New York
VAN
STOCKBRIDGE, FRANKLIN
The Security-First National Bank of
and
Limited,
Company
Savannah
VINSON,
Auchincloss,
New
&
York
Strader, Taylor Si Co.,
B.
,
New
Inc.,
iplilpP^ ' :>;C
-K
,
y
<v
f
,
Development Bank,
Inc., Lynchburg
Sales
Corporation,
York
CHARLES
VRTIS,
Chicago
Beverly Hills
Dillon,
Read
WALBERT,
K.
Lehman
ARTHUR
Si
Co.
L*
Inc.,
RICHARD
,
Company, Inc., San Antonio
WEST, GERALD B.
Stone
Securities
Webster
&
Corporation, New York
WHEELER, HOWARD S.*
Leedy, Wheeler & Alleman,
Orlando
y;
Inc.,
WHIPPLE, JAY N.*
Bacon, Whipple & Co., Chicago
WHIT ACRE,
ROBERT H.*
National
First
of
Bank
&
Mrs,
Paul
H.
Davis
S. Garland
Charles
Hopkinson, Jr.
WHITBECK, BRAINERD H.*
The First Boston Corp., New York
&
Howard, Incorporated, Boston
New
WHITE, CHARLES B.*
Chas. B. White & Co., Houston
WHITE, HARRY H.
White, Hattier & Sanford, New Orleans
WHITE, KELTON E.*
G. H. Walker & Co., St. Louis
York
Mitchum, Tully & Co,
WHITTAKER, ROBERT B.
F. S. Moseley & Co., Chicago
WIESENBERGER, ARTHUR
Arthur Wiesenberger Si Co., New York
INVESTMENT
WALKER, CLIFTON P., Jr.
*Denotes Mr.
E.
Julien H. Collins
Arizona,
B.
Brothers, Chicago
Oominick <fc Dominick, New York
New York
CHARLES L.*
WHITESIDE, THOMAS
Chace, Whiteside, West Si Wlnslow,
Inc., Boston
S.
Glore, Forgan & Co.,
WADSWORTH,
pi if ~
WERNER, CHARLES S.*
WHITCOMB, STEPHEN
York
GLAHN, Jr., THEODORE A*
New
TEGELER. JEROME F.*
Dempsey.Tegeler & Co., St. Louis
MOLLIS
WERLY, CHARLES M.
Putnam Fund Distributors,
SALVADOR
Broad Street
E.
TAYLOR, HOWARD L.
Taylor and Company,
THAYER,
Chicago,
Chicago
VOORHIS, PETER A. II.
Talbot, Santa Rosa
CLARENCE
B.
Phoenix
Solomon Bros. & Hutzler. New York
TALBOT, LEONARD A.
Hannaford
Inc.,
k>;k
Puerto Rico
von
Company,
Co.,
v
Townsend, Crouter Si
Government
Sutherland Si Co., Toledo
TAYLOR,
1945-46
1946-47
1947 -48
Chicago
Eaton
VIVO,
»
SYKES, MACRAE*
<fc
■
-■
EGERTON
Bodine,
Parker & Redpath,
SUTHERLAND, WILLIAM G.
Shields
'
DeHaven Si
Washington
Chicago
Commerce,
VERNON, HARCOURT*
Wood, Gundy & Co., Inc.,
G.*
Toronto
Ryan,
of
VARNEDOE, SAMUEL L.*
Varnedoe, Chisholm Si
Los Angeles
SULLIVAN. Jr., MARK*
•
SLYCK, M.
Journal
-
If.
GEORGE
The First National Bank of
Russ &
PAUL, Jr.*
Uhlmann Si Latshaw, Kansas City
STITZER, RAYMOND D.
Equitable Securities Corporation,
STOCK WELL,
IBA PAST PRESIDENTS
WELLS, HENRY GRADY, Jr.
Andrews & Wells, Inc., New York
WEST,
•
STEWART, HAROLD S.*
Angeles,
Corporation, New York
WEHRHEIM, ROBERT V.*
The Philadelphia National Bank,
Philadelphia
Wertheim & Co.,
HENRY M. y
Bullock, Atlanta
UHLMANN,
Chicago
New York
Detroit
TURNER, ARTHUR C.*
Kansas City
STEVENSON, GETHRYN C.*
Bacon, Stevenson & Co., New York
Harold S. Stewart &
GUY G.
Boston
Stem Brothers & Co.,
Investment
WEDTHOFF,
Hal H. Dewar
WEED, WALTER H., Jr.
WENDT,
the City
York, New York
G.
Union Securities
Read & Co. Inc.,
FRANK
F.DWARD
Scott, Horner Si Mason, Inc., Lynchburg
First of Michigan Corporation,
TROST, MILTON S.*
Bank
WASSERMAN, JOHN
Asiel Si Co., New York
WEBSTER, BYRON G.*
Merrill Lynch, Pierce, Fenner &
Beane, Chicago
STEARNS, PHILIP M.»
Estabrook & Co., Boston
Chase National
WASHBURNE, HEMPSTEAD
Harris, Hall & Company, Chicago
WEBB,
STEARNS, JAMES p.*
Ball, Burge & Kraus, Cleveland
Fauset, Steele & Co.,
.V
CHARLES W.
Bank,
First American National
TREADWAY, A. RUSSELL*
Ball, Burge Si Kraus, Cleveland
Investors Dealers
GEORGE
Economist, Chicago
Gairdner
£idder & Co., New York
Nashville
TRIGGER, RAYMOND*
New York
STEARNS,
Los
M.
TREUHOLD, EUGENE*
L. F. Rothschild Si Co.,
STARRING, Jr., MASON B.
New
A.
Geyer Si Co., Inc., Boston
Montreal
.
New York
staples, jack r.
Fulton, Reid & Co., Cleveland
of
Nashville
Los Angeles
Co.,
WARREN, ROBERT H.*
TOWNSEND, WILLIAM H.
The
Bank,
&
WARREN, JAMES C.
Boston
The
Hill Richards
THORS, J. EMERSON*
Kuhn, Loeb & Co., New York
Robert Hawkins Si
C.
National
-
National
SPENCE, W.
A.
Third
WARD, MURRAY*
THORNTON, J. MILLS, Jr.*
Thornton, Mohr & Co., Montgomery
1
SPEAS, J. W.*
First
A.
TINDALL, JULIAN W.*
J. W. Tindall Si Company, Atlanta
A.*
Space
Jr., JULIAN
SPACE,
Washington
The W. C. Thornburgh Co.,
BENJAMIN
Eingham, Walter & Hurry, Los Angeles
& Co.,
Chicago
WILBUR,
Stein
LeROY
Bros.
&
A.
Boyce, Baltimore
WILLARD, FRANK A.
Reynolds & Co., New
SECURITIES
York
WILLIAMS, BENJAMIN D.
DEALERS
DISTRIBUTORS
BROKERS
W.
Hutton Si Co., New York
E.
WILLING, J. KENT, Jr.
Girard
Trust
Corn
Exchange Bank,
Philadelphia
WILSON,
Union
CROWELL, WEEDON & CO.
New
,
f
H. WARREN*
Securities
Corporation,
York
405
Montgomery
SAN
650 South Spring
Street
FRANCISCO
Street
LOS ANGELES
4
14
WILSON, WALTER W.
Morgan Stanley & Co., New York
Established 1932
WINSOR, III, JAMES D.*
Biddle, Whelen & Co., Philadelphia
650 SO. SPRING ST.
LOS ANGELES
Telephone TRinity 0281
14, CALIF.
Teletype LA 38
LONG BEACH
PASADENA
SAN DIEGO
LAGUNA BEACH
MEMBERS
LOS
ANGELES
STOCK
EXCHANGE
WITTER, Jr., DEAN
Dean
Witter Si Co.,
New
WITTER, WENDELL W.*
Dean Witter & Co., San
WOLFF, JAMES
York
Francisco
W.
Zuckerman, Smith Si Co., New York
WOOD, DAVID M.*
Wood, King & Dawson, New York
KENNETH
WOOD,
J.
C.
H.
Bradford & Co.,
WOOD, RICHARD*
Wright,
Wood
Utility-
Philadelphia
TO SOUTHERN CALIFORNIA
INVESTORS
HARDING C.
WOODALL,
Dealers in Industrial & Public
& Co.,
SPECIALIZING IN SERVICE
New York
Harriman, Ripley & Co., Inc.,
New
York
.
WOOLFOLK, ROBERT M.»
Woolfolk & Shober, New Orleans
Stocks & Bonds
PAUL*
WOOLLOMES, J.
Wulff, Hansen & Co., San Francisco
Active Retail Outlets
WOOLNER,
Bache
WREN,
Allen
BNAULf
% Ca
Si
ADOLPH*
Co.,
New York
FEWEL 6- CO.
LAWRENCE
&
Company,
New
York
WULBERN, EDWARD B.*
R. s. Dickson Si Co., Inc., Charlotte
Member Los Angeles
453 South Spring
Stock Exchange
Los Angeles
Street
13, Calif.
WYNKOOP, BROOKE L.
ESTABLISHED
Fahnestock
1931
[r
Si
Co., New York
Beverly Hills
YANTIS, F. STUART*
Russ Building:, San Francisco
4
F.
S.
Yantls &
Co., Incorporated,
Chicago
Telephone EXbrook 2-7484
Bell
System
Teletype SF 272
YOUMANS, PAUL E.
Bosworth, Sullivan & Company, Inc.,
Denver
»
Long Ben eli
Arcadia
North Hollywood
'•
•
'•
San
ki"'.
■
Diego
74
The Commercial and Financial Chronicle
Thursday, December 13, 1951
...
(2314)
Continued
from
only to nationalization of the elec¬
tric
industry.
The
investment
30
page
fraternity has a moral
responsibility to the millions of
investors who are owners of util¬
banking
oi Taxes
Utilities Feel Impact
of
thus to
a
larger
a
securities
build
in
1950
time when quotations for
and
preferred stocks
Harper & Turner, Inc.
Philadelphia
and
their equities at
bonds
up
James B. Harper
of
volume
than
.
R.
private utility companies.
the present
of
implications
gov¬
ferred
stock
to
Merrill
Federal
of
power
can
lead
Stern, Frank, Meyer & Fox I
Los Angeles
Lee H.
of last year
Table II—Financing by Electric Companies
,
First 10 months—
1950
Funded debt
Common
stocks
Change
$642,000,000
138,000,000
$1,170,000,000
303,000,000
Preferred stocks
—45%
was
—54%
serve
"pegs" from the government
bond
market
303,000,000
+ 16%
$1,083,000,000
-37%
262,000,000
bearing
on
$1,735,000,000
issues
new
removal
the
of
this
prices
<•}[
!-.
Kay, Richards & Co.
r
*
Ripley & Co., Inc.
City
-
Pittsburgh
Joseph E. Refsnes
Refsnes, Ely, Beck & Co.
Phoenix, Ariz.
Thomas J. Reis
Seasongood & Mayer
Cincinnati
David
Skinner
L.
held in abeyance
until the current
Harriman
of the large sub¬
New York
one
bids
received
sidiaries
for
$30,-
Richard J. Stern
000,000 new debentures. Inasmuch
as
the construction requirements
Stern
be
Brothers & Co.
Kansas
of the
system are still believed to
large, it is possible that other
City, Mo.
A
Theodore H. Wegener
Wegener & Daly Corp.
■: y'
Joins Sutro Co. Staff
Respectfully submitted,
(Special to Thk Financial Chronicle)
in
rise
the
interest
of
refunding
bonds
Inasmuch
debt sales in
funded
as
1950
in¬
for
re¬
$500,000,000
over
rates,
utility
ceased.
the
nancing in the
the
meantime,
funding compared with only $13,000.000
the
this
for
result of
in
purpose
ing
higher interest rates
readily be
can
of
preferred
SECURITIES
SERVICE
PUBLIC
COMMITTE
seen.
Several weeks ago a
block
Boise, Idaho
near
Woodard-Elwood & Co.
Minneapolis
$37,500,000
stock
of
W. C. Langley &
an
LOS
S.
Co.
has
Sutro
Street.
&
210 West 7th
previously witli. '
Wykoff & Co. and J.
He
Edgerton,
New York City
'
Cal.—William ;'
become
associated
ANGELES,
Cook
with
Willard A. Lynch, Chairman
4
Lawrence B. Woodard
1951,
the over-all volume of financ¬
on
Investment Bankers
'•
future. In
a
considerable
amount
of new securities,
both
bonds and stocks, continues to be
sold by various telephone com¬
panies outside of the Bell group.
cluded
formerly Brooke, Stokes & Co.
-
system companies will resume fi¬
practically
BROOKE & CO.
.;■
K.Parker
*
of
the
1912
Chicago
Nathan
nearly all fixed income securities.
With
ESTABLISHED
Re¬
consequent
the
in
year
Federal
the
and
decline
severe
Total
is given in Table II.
The outstanding factor having a
1951
'
Ostrander
William Blair & Co.
month when
compared with the same period
as
-
Louis Meyer, Jr.
According
to
the
Roosevelt- ownership over $23,000,000 a year
netting
over
$50,000,000,
which
ernment program.
proposal,
the
project in taxes would be paid to Federal,
suggests the possibility that other
would be built by the U. S. Corps state and local governments.
Financing
offerings of convertible securities
Consideration of the above bills
of
Engineers
and
the
power
In the face of an increasing vol¬ may be forthcoming in the near
turned over to the Power Author¬ for building steam plants in the
Pacific
Northwest
and
hydro ume of business in most lines of future.
ity of New York, a state agency.
However, advocates of the state plants in New York has been tem¬ industry, including the sale of
Telephone Companies
electric energy, the amount of fi¬
plan asserted their belief that if porarily postponed by the adjourn¬
Subsequent to the sale of $415,done by electric com¬
the project was built by the Fed¬ ment of Congress but they will nancing
1951 reflects a sharp 000,000 3%% convertible deben¬
eral Government, the latter would undoubtedly receive active atten¬ panies in
tion again when Congress recon¬ falling off.; A comparison of pub¬ tures by American Telephone &
retain complete control. The pri¬
venes
on Jan.
8.
In this connec¬ lic and private placement of secu¬ Telegraph Co. in the first quarter
vate companies offered to organ¬
tion, the Committee again wishes rities by these companies in the of this year, public financing by
ize and finance a new company to to
emphasize that further expan¬ first 10 months of the current year companies in the Bell System was
sion
Lynch, Pierce, FenChicago
& Bean,
ner
Lehman
build the project without any ex¬
City
Robert Mason
4&%,
yield about
.
Dickson & Co.
S.
New York
to either the Federal or steps are proper
It
is recommended the declining trend of per share
state governments.
A spokesman investment.
altnough a number of
for the private companies pointed that the dangers of expansion of earnings,
companies increased their divi¬
out that through past experience Federal power be brought to the
with the dends during the period. A large
these companies were best quali¬ attention of investors,
company
has just com¬
fied to construct and operate the request that members of Congress electric
project and that under private be contacted and advised of the pleted a sale of convertible pre¬
pense
parity. The Roosevelt-Lehman bill
provides for development by the
Federal
Government, the Cole>&ves bill for development by New
York State, and the Miller-Capehart bill for development by five
.
Edgar J. Loftus
v
reced¬
were
take whatever ing. The gain in common stock
to protect their sales was accomplished in spite of
to
securities
ity
dispose
these
Co.,
was
Henry Helser & Co.
electric company was
a
Members
Philadelphia-Baltimore Stock Exchange
sold through
underwriting repre¬
negotiated
William
kind marketed in over six months.
indication
Some
jj
N. E. Cor. 15th & Locust Sts.
300 N. Charles St.
§
Philadelphia 2, Pa.
Baltimore 1, Md.
of
decline
the
ferred stock
from the
MDiiiiillillllilliiiii
of
in
the
bond
prices
extent
and
Carl H.
with
compared
to 2.75%
yields
Wm. N. Edwards &
Ft.
Inc.,
quality which were offered about
year ago.
Recently two lots of
New
York
626
of
geles Stock Exchange.
Co.
"■
*i>.
Worth, Tex.
First Boston
South
Spring
the Los An- *
members
Joins
Charles C. Glavin
2.70%
of
is with Wagenseller
Durst,
N. Edwards
Cal.—Vincent
ANGELES,
R. Ericson
Street,
William
several issues of like
on
LOS
Inc.
^
4
(Special to The Financial Chronicle)
Cleveland
following comparison of
yields: An issue of electric com¬
pany bonds rated "Aa" by Moody's
has just been sold to yield 3%%
iiiiiiiiiiiiiiiiiiiiiiiiliiliii
Wagenseller Durst Adds
Doerge
Wm. J. Mericka & Co.,
pre¬
be obtained
can
M. Cahn
Henry Herrman &'Co.
New York City
senting the first large issue of this
Reynolds Staff
.-,7
(Special to The Financial Chronicle)
Corporation
CHICAGO, 111 —Ralph E. Vennum
is now affiliated with Rey-
City
J
a
Investment
electric company
3.55%
3.60%
Securities
to
yield
with
compared
2.85% to 2.90%
rated issues
block
of
a
on
year ago.
preferred
tioned above
was
tober
to
1951
against
other
BATTLES & COMPANY
INC.
sold
early last
to
90
Philadelphia 2, Pa.
New
Broad Street
York
4,
N.Y.
4.90%
4.59%
same
on
the
At
in
Established
can
vailing
that
willing, to
Philadelphia-Baltimore Stock Exchange
pre¬
same
yield
of
123
New
new
S.
BROAD
SECURITIES
ST., PHILADELPHIA 9, PA.
Aitoona, Pa.
York, N. Y.
Reading, Pa.
Manhasset, N. Y.
Private wires between offices
have
markets.
new
companies
taken
the
and
also be
can
recognize
when
1896
New York Curb Exchange
York Stock Exchange
New
interest rates and
when
money
Baumgartner, Downing
to
& Cc., Baltimore, Md.
are
changes
place
in
the
We believe that
is needed,
money
man¬
°r~)
agement should sell securities and
not
We
are
interested
in
securities either for
block
our
through
offerings of listed and unlisted
own
our
account
or
for distribution
temporize in the hope of ob¬
taining a better price at a later
time.
organization.
has
In
The
been
a
like
Experience of this
lesson
a
the
present,
instances the best
the
MEMBERS
not
way
Teletype
New York Telephone
COrtlandt
7-1202
been
strong
1421
Chestnut
TRADING
IN
which
stocks
during
year.
permitted7
utility
V
-
-•
UNLISTED SECURITIES
Our
competitive
part of the
Philadelphia 2, Pa.
Street
underwriting
for this type of
common
HERBERT H. BLIZZARD & CO.
to
We hope that both man¬
pressing
1
through
bidding
financing.
The drop in bond arid preferred
stock prices in 1951 did not extend
(ASSOCIATE)
to
PH 30
is
and
regulatory bodies
recognize the importance of
will
PHILADELPHIA 3, PA.
Bell System
stocks
agement
1606 Walnut Street
PEnnypacker 5-8200
negotiated
method.
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
NEW YORK CURB EXCHANGE
preferred
I
i
believe that
we
sell
Boenning & Co
year
in this
regard.
period of uncertain markets
in many
ESTABLISHED 1914
•••mv
be marketed at the pre¬
higher
preferred stocks
which
*
com¬
appears
amounts
marketed
Railroad, Public Utility and Industrial
,
Members
pre¬
it has recently been demonstrated
UNLISTED
:
Penington, Colket & Co
an¬
a
to
present time it
substantial
bonds
1949
.
-
4%.
even
that
against
as
offering of the
made
& Co.
as
offered in October 1951
stock
company
an
Bache
.
company
A large
year.
yield 4.60%
ferred
Corp., New York City
men¬
ferred stock issue of another
pany was
1528 Walnut Street
of
the
of
Street.
marketed in Oc¬
yield
yield
a
issue
stock
Co., 208 South La Salle ^
He was formerly
with >
&
Stone & Webster Securities
and
yields of
similarly
The large
some
nolds
Gail Golliday
bonds rated "A"
sold
were
the
>
Records
Market
oil
Unlisted ;
Securities have cumulated since 1922
just
name
it
—
we
have
a
sfjot
have
greater
Fortunately this
companies
-
to
Telephone LOcust 7-6619
Teletype PH 520
it
!
]
I :
i
1,1
Volume
174
Number 5072
.
.
The Commercial and Financial Chronicle
.
75
,(2315)
Continued, from first page
Marine
said,
pop
did
"Ted,
We
you
break that window?"
He
,
The SEC and the
said, "No, sir."
..The father asked, "Do you know
who broke that window?"
Ted
Securities
travel with
quartet
a
tauqua circuit.
i
who
;
the
We had
day, twice
every
speech.
same
/could
always
the
on
Chau-
a
nearly five years and I don't
know where the end is yet.
thing
in
which
we
when
I
would
I
I am
,
anything personal
out of this, but
want
don't
to
were
we
dilemma.
a
reminded of the story of
am
16 or 17 years
about
boy,
the
traveling from one stop to another, and start giving his speech.
That really got his goat. He didn't
to-goodness kid and they accepted
Well,
I
don't
President
•
this
or
best
stories.
you,
he
If
hasn't
took
it.
he
given
an
extent
the
number
talks
of
makes.* Then he tells about
he
York.
Wherever
the
he
a
would
tell
he
and
would pocket
the
Marines
the
in
married.
He
land duty, and
8,
a
The table had
Meals
military fashion.
the
he
•
-
-
read
type, and the Mayor always made
a
great hit.
On this particular occasion the
Mayor
-
;
They interpolated,
punctuated well, set it up in large
-
.
well.
going along fine. He
wore his pince-nez glasses and he
was* doing a grand job.
All of a
was
sudden he
came to a place where
the ghost writers had interpolated
a.
story.
The Mayor ran right
through that story, and when he
got
the
to
He
end
thought
a
of
it
If the
speech.
The ghost writers wrote well and
he
stopped.
when
certain time.
were
walk
would
he
a
lying around on
reading
the
funnies
boys
floor
in, they
would jump up and stand at at¬
tention until he said, "Carry on,
lads.
As you were."
Everything
military.
was
He
also had a terrific temper.
something had been happening
If
at home and he couldn't find out
what happened, he would fly
a
and
rage
quiry.
On
order
one
pane
could
military in¬
a
had
establish
occasion
been
Momma wouldn't talk.
and he said, "That
one,
one
wasn't it?
I
was
never
the
Securities
Commission. At
kinson
was
sociation,
and
Philadelphia it
as
a
with
there
him.
My
this
tention
pop
As¬
"How
her
do
So he
the
or¬
taxi driver.
driver
get
a
the
of
So
'
;
opinion of Washington at the
There
everybody
one
of
he
pointed
out
Finally they went
Avenue and
Pennsylvania
even
Isn't that right?
but
SEC,
dis¬
a
of
the
the
chief
chief
but
and one
gapers,
ahers
would
in
cause
a
you
ciate what goes
only see it and
Then
you
ain't
that
manner
I
to really appre¬
on
if
I
could
about it.
a
and
oohers,
'What
They tossed
themselves
their, mental
would appreciate
equip¬
a
on
yet'."
haven't
get too serious.
time, because
all gone now.
time
my
story I
is
a
the
you
before
was
and
saluted.
The
insurance
borrowers
in
see
and
not particularly interThen his father asked, "Do
I went down expecting to. have anything to add?"
the minimum
The boy replied. "No, sir."
sentence, but
time
as
became
went
on,
and
the
work
ers
better off
companies.
moved to
So Ted, the 6-year-old
.
came
the insurance
Commission, of course,
that
because
the
have
a
I
could
have
the
all
I
remark
I
am
to
very
to
make
this
industry in which
much interested. The
an
door
policy.
our
business
easier
be
but
to
see
it
to
other
argue
hand,
that
Sherrerd
that
should
it
people
after
these
who
five
one
sentence:
"What is
past is
dustry,
well.
prologue."
have
At
some
times
me,
I
MEMBERS
York
Stock
Exchange
1500
WALNUT STREET
•
we
have
dealers
obligations
of
a
an
idea
Continued
Utility,
and
Equipment Trust Certificates.
New York Stock Exchange
Philadelphia
i
1500 Walnut St.
Philadelphia Telephone
-
PEnnypacker
5-2700
Exchange (Assoc.)
(Associate)
2, PA.
Teletype
PH-4
New
York
Telephone
BArclay 7-4641
as
a
that
the
as
lot
near
Philadelphia-Baltimore Stock Exchange
PHILADELPHIA
that
Endorses Frear Bill
Philadelphia-Baltimore■. Stock Exchange
New York Curb Exchange
exposure
Now, about the Frear Bill, may
that
in,
SECURITIES
"
of
see
you
New York Curb
New
more
may
years
things
be
with
1910
MUNICIPAL
all
differ
Members
AND
there are
should
we
Now, there
Underwriters, Distributors, Dealers in
CORPORATE
the
shorter
prospectus,; and
registration requirements,
Industrial, Railroad, Municipal Securities
&
with
legislative problem.
In other words it is
to
line
in
is
simple generally.
just want
would
intent of the original Act.
and
said
we
sympathetic if there were to
come from the industry a proposal
for registration of all debt issues,
stood at attention and saluted. The
ESTABLISHED
•
be
Underwriters and Distributors of Public
Butcher
with
always
are
He said, "Excused."
interesting, and we
Washington, I got "Poto¬
more
to
way
that these borrow¬
doesn't follow
eating.
serve
have
potential
a
spreads, com¬
petitive bidding, and the like. It
Drexel & Co.
was
$20
avoid underwriting
His father asked, "Do you know
He said, "No, sir."
other
of
We have mil¬
them
break
who broke that window?"
routine
than it
in
—
companies
invest,
to
money
Robert said, "No, sir."
good for¬
year
have people.
Marine
you
New
I
just comment to this extent,
In Washington, if you ride down things are done to handle expe¬
that while I agree with the Frear
Pennsylvania Avenue you will see ditiously the legitimate demands
Bill in principle—there
may be
the Archives Building. Carved in and needs of an industry.
That
some
refinements necessary — I
stone on the building there is an is why the Congress created our
note that some over-the-counter
inscription which says a volume Commission. You folks, as an in¬
in
The
lit¬
a
gain
a
and
said, "Robert, did
all
a
lions more of outstanding policies,
according to the article, than we
who
But
A lot goes
but tell
of
showing that
last
more
there
On
I
time' I want.
dandy.
from
paper
year
those
a
and
can't help
$20 billion
was
could
nearly
speaking of what Securities and Exchange Commis¬
there, I am reminded of sion should have and has an open
because it
place¬
I have here
clipped
Sunday
dent
more
grand job,
importance-wise.
there,
I
private
registration
the coverage of life insurance was
couple of quick observa¬
is
is perhaps today
the center of the world, news-wise
on
notin'
seen
don't want to
make
Washington
and
piece
York
tions if Murray Hanson won't cut
me down on my time.
The Presi¬
you
know
the sacrifice young men make to
become government career men.
They do
tle
minute to talk to
a
about
versus
debt securities.
mean,
other
scientious people are serving their
government
ment
billion in coverage.
inscription, "What
past is prologue." One old girl,
He
said, "In Washington we
loyal, have a. funny
way of expressing
public-spirited, energetic and con¬ ourselves. What it means is 'You
the
briefly
you
Privately
of
Issues
Now the Commission—and I am
Finally, they thought they would
try the driver,
and they said: speaking for the Commission as
"Driver, what does that mean, Chairman—has discussed this, and
while I am not committing the
'What is past is prologue'?"
torted
only
Placed
words,
literary qualifica¬
tions were not quite up to the
average, you might say, and they
couldn't figure it out.
time
was
must not have
you
Registration
I shall take
into
ment and their
pres¬
honest,
was
happen.
Favors
;
is past is prologue'?"
it
around
among
say
a
never
in your business.
while
cannot
he
Washington taxicabs
they went. They oohed
aahed
"Potomac' awhile,
Washington, I must
We
with
us
thinking
they took the
said, "What does that
that you shouldn't have a distorted
ent time.
They
and
little
and away
of
you
Speaking
those
is
lousy outfit?"
Fever" in
when
gaping ride.
taxi
a
for half of that.
one
and replied,
transfer out
to
be
can
which bears the
said, "What do you
up
coming
they spied this Archives Building
add?"
boy looked
problems,
dissatis¬
of
industry.
that window?"
of
well acquaint¬
early
Even
military inquiry.
excused
you
peaple
lot
a
the
brought in
Robert, the 8-year-old.
Robert
came
in, clicked his heels to at¬
serve
resident
was my
tune to become very
ed
He
Exchange
that time Mr. Hopof
it.
the Momma in first and
interrogated her, but got nowhere.
and
President
a
broke
He got
before."
tEarly in 1947, almost five years
ago, I went to Philadelphia, the
on
who
dered
heard that
City of Brotherly Love, to
He
been broken but he couldn't find
good
a
he
win¬
broken.
out
up
a
easily that it had
he dropped his papers.
He looked
asked, "Do
replied, "Yes, sir."
father
The
to
said he would take the six of them
down
have to add?"
goes
particular
laugh. He laughed until
his pince-nez glasses fell off and
>
into
'
.
home and found that
came
dow
minute and then he
started to
Dick
And
to be set in a certain way.
manu¬
another
have anything to
The
two-hour
a
talked
pretty good job.
opinion of what goes on
everything in* because I am here to
say that not
His wife had to do
for
Mint, the Treasury, the Justice
Department, and he was doing a
boy said, "No, sir,"
The father then
6 and one 4.
one
had to be served at
make
had
course
To him everything was military.
time
and
to
He had three boys,
script and then would pick it out
of the pocket at the
appropriate
'
then
and
stationed
was
in due
little family.
one
him
where he was. going to speak and
what he was going to speak
about,
.
a
Officer
He kept a couple of ghost writ¬
They
The
and
within
these
prob¬
quickly legislated out
Washington. They went to of existence, but most of you are
a travel
agency and found it would old enough and wise enough
tqr
be $2 a piece to be taken around
know
very
definitely that that
the
who broke that window?"
was
Fi¬
Commissioned
lems
faction
see
and
said, "No, sir."
of this
Sergeant.
a
a
busy.
a
you
The father asked, "Do you know
matter of fact the expo¬
nally he became
could get 16 or 18 people to prom¬
to
remain
seated
for
any
ise
ers
a
He
discipline,
military
the
Corporal, then
a
Mayor
speech.
he did
and
Marine.
He grew a little older and he
Mayor
length of time, he would make
a
did him good and he became
truly
Hylan, the famous old Mayor of
New
as
sure
'
about
was
conscientious
was
accepted
you now.
quite
He
everything that he was told.
it is too bad, because I
goes on to
He
did
that window?"
him the full treatment.
and
Larry
He
good boy, and
"Dick,
said,
him
break
grumbling
dozen rubber-neckers who wanted
They all crammed
The military pop looked at
and
rubber-
of
have
saluted.
they
gave
is
going to give it to
am
him into the Marines, where
going to like
not, but this is one of his
it to
•
trudged in, came to attention, and
old, who wanted to join the Ma¬
He was a strapping, honest-
whether
know
Marks
young
brother Dick."
Dick, the 4-year-old,
little
So
rines.
like it.
•
.
Send in your
construed
be
asked, "Do you have
The boy replied, "No, sir."
Again, the father said, "Excused.
it has gone on
Now
day, gave
a
would be to get
train
Fever."
mac
for
lecturer
a
One
do
make him angry
up
on
thousands
coming there every day
and every week, and on one par¬
ticular occasion there were half a
to
anything to add?"
'
-
said, "No, sir."
The father
have
neckers
New York
5
14 Wall Street
on
page
76
76
The Commercial and Financial Chronicle
.(2316)
in the East
Continued from page 75
they
out with the
go
confirmation.
the
the
of
vocate
a
great ad¬
kills
size
that
fact
A thick
desire to read.
book
doesn't sell as well as a thin one.
Securities Industry
Facts
dished up in a
written and
in which
manner
definite obligation, a very
supervise.
You who have salesmen should
very
definite duty to
Furthermore, I am
The SEC and the
a
they
be ab¬
can
securities
the
whom
watch
are
being sold to and how often they
sold,
being
are
May I
that
and
should
you
accounts.
customers'
the
watch
quick side remark,
biggest trouble we find
say as a
the
Thursday, December 13, 1951
...
shares
investment
other
many
and
things
you
that
have
in
come
the over-the-counter market. You
have
great many problems, and
a
the
draftsmanship
which
a
will
be
a
but
I
and
make
say
you
of
anything
will be
panacea
I
work of art.
can't suggest
should
be
it,
alerted
ready.
sorbed, in my opinion, will inform,
I am not suggesting that you
them out of conjecture about, but I will say whereas excessive detail will de¬ with the houses who want to be
should be too much alarmed, but
that the Commission would be
business. I can't subscribe to that,
feat the statutory purpose of in¬ right, who are interested in doing
the right thing and who are sin¬ on guard, to see to it that this
having come from that field my¬ very sympathetic and would go forming investors.
with you to Congress if you want
cere
and honest, is their lack of great industry is prepared to meet
self.
I find trouble with the Tomb¬
but it must be an industry
I think that the Frear Bill only it,
supervision over the people they the problems confronting it.
stone Ad. I didn't know why we
have working for them.
calls for honesty in corporate re¬ move. I can't see where the Com¬
That is
can't liberalize it by interpreta¬
Lauds NASD '■'* ,/•;
"i"
mission could initiate such a move.
where they get into trouble.
porting. I think that the honest
Frear Bill would put
.
.
dealer
over-the-counter
am
wants
that
saying
not
disagree with
After five
I
all
he
the Commission
tainly have to be, you
know
can
which he sells to
bis customer or buys from his cus¬
tomer. I think that is a fair as¬
about any stock
of exposure to
years
problems of the industry at
table, I would cer¬
the
who
those
aren't honest—
me
know
to
and
—
defects in the statutes.
After five years
sumption.
gone
I find
myself not always agree¬
ing with the Commission findings
insider trading. I am
on
af¬
insider
I
day
table
the
results
of
competitive bidding among seven
bidders, and the bids were only
32/100 of 1% apart from top to
bottom.
Of
thorough¬
trading where there is in¬
side information that
be used
can
but I think that in
the Commission has
improperly,
fect
course
that
was
per¬
with
I
one
would do
be an
it you might say, law that isn't ex¬
that actly in keeping with the original
remark, however. Let
understood that anything
be
personally would not
intent of
the
statute.
attempt in any way to get
from the original intent of
Act, which is to inform the
unorthodox and the unsophisti¬
away
May 1 again
Disagrees
Administration of
on
Proxy Rules
the
haps a little closer than they gen¬
I find myself somewhat in dis¬
erally run, but how
did that
cated investor, to protect the un¬ agreement with the proxy rules as
happen?
now
interpreted
and
adminis¬
Let's not try to tell each other orthodox and the unsophisticated
tered. The proxy rules are sup¬
£airy stories.
The institutional investor. That is the duty of the
buyer—if there are any present, Commission, and that is your duty posed and were intended to pro¬
mote democracy in corporate af¬
God save them; you want to look in the relationship which exists
after them, they are good cus¬ between you and your customers. fairs. Coi-porations get large and
In
to you people
say
to
closing,
I
may
pay
tribute
this
great industry, and I say
an Association that if I
can
make any constructive sug¬
representatives, it is your duty to
see
to it that your supervision is gestion which you would be cap¬
able of carrying out in the near
exacting, because, as the previous
future, it would be that you see
speaker noted, the business has
who have
getting
placement for
Now,
Commission
little farther than
have.
your
business and which
back to private should be of much concern to you, many cases
I will say that I find a great deal made some interpretations over a
a
moment, the
Let me preface this period of time which have become,
saw
come over the of trouble.
Competitive Bidding Spreads
other
a
we
ly in accord with strict rulings on
of close obser¬
the statutes which
of
vation
that
disappointed
am
haven't
we
might say,
deaf, dumb and completely blind
were
I not conscious of certain
I
tion.
big houses, and to you
who have salesmen and
people
been
a
gone
through
"whipping
to you
to
as
it that
more
young
men
come
and has
into the business. They should be
vicissitudes.
That is the very thing that you intelligent and well-intended men.
I would suggest also that the re¬
must at all costs avoid, and you
must live up to your trust, for quirements be watched constantly.
I
think the
NASD
has done a
the sale of trust shares is generally
to new buyers, the unsophisticated grand job in this regard, but there
is yet work to be done.
buyers. Those are the people we
May I say that you, as an im¬
want to protect.
portant segment of American in¬
Duties of Investment Advisors
dustry and of the American econ¬
boy"
many
few omy^ should be proud of your ac¬
ad¬ complishments. You should have
better publicity for the great and
visors. We don't have so many of
things that you do.
them and they are a very small honorable
Your
shortcomings
are
always
part of the Commission's work,
I
would also like
words
the
about
to say a
investment
but investment advisors, in my played up, but the good things
done by this industry do not al¬
opinion, occupy a double relation¬
ship and have a double responsi¬ ways receive the same amount of
corporation managements, w i t h
tomers—has put his price tag on,
bility.
Their fiduciary relation¬ publicity and public attention.
Some Regulations Unrealistic
some instances of very little if any
and the service which you render
May I also salute you as people
ship to the people to whom they
I will say to you that there are ownership
of stock, perpetuate are
has
who have a definite part in the
been
minimized,
and
the
giving advice is very definite.
certain things over a period of 16 themselves in office. I am not op¬
service for which you are going
The Commission hasn't as much scheme of our national economy,
and say to you that the President
to be paid has been minimized. or 17 years in the working of this posed to that if they are good
control over that situation as it
trustees
and
statute that appear to be a
acquit themselves
bit
You are bidding that you can do
might have. I suggest that you of the United States in his rela¬
well in their stewardship, but 1
it for just a little less than the unrealistic, and not what the orig¬
tionship with me has always in¬
folks think about that.
inal framers of the Act intended. am opposed to their continuing in
<s> t h e r
dicated that he is very much in¬
fellow;
otherwise,
you
I am also aware of the fact that
I am going to pass briefly over office if their conduct isn't what
wouldn't have been in the low bid.
terested
in
your
progress
and
special treatment is necessary for
I am not disagreeing with that. Section 5, but it doesn't make it should be. The proxy rules, as
your business; and please do not
special segments of the industry.
X am not finding any fault with sense to me that in the Middle- we now have them, have some
feel that there is any idea or at¬
The reason why the industry can't
that. Whether or not compulsory west, where prospectuses are not things in them that allow cranks
titude of persecution or persecur
readily available, they go out with to use the mechanics of the proxy get together is the simple fact that tion or of trying to hold back a
registration of debt issues would
to the detriment of there is present the selfish desire
make it any better, I have some the delivery of the security, while machinery
great industry such as yours.
everyone concerned.
I am not in to obtain something which will
As I said in the beginning, I
favor
Dealers
of
know
and Brokers in
it.
that, and I want
Railroad
•
Industrial
•
and
Guaranteed
Securities
Television
Line
Leased
Equipment Trust
Stocks
Obligations
Mutual Funds
dle
not
am
sales
such
talking about.
going
you
to
dwell
who han¬
what
I
is
he
You
have,
municipals.
the
know,
you
as
You
have
corporate
selling
the
you
and I also
of
the
bring
staff
those
of
greetings
not
here
the greetings
the
Commission,
who have con¬
equities, and
and
the selling of them.
You have the
tacted them will agree that
and
actual
stock
market—the
tion of orders.
execu¬
Then you have the
are
a
of
you
of
it—should
make his
people.
intentions
known; but there are cases that
go far beyond what I think is the
We Offer
Complete Facilities for
statutory intent, and I personally
Charles A. Taggart
Members
& Co., Inc.
think
we
far to
reach out
a
Clearance Accounts
little bit too
them.
cover
Philadelphia-Baltimore Stock Exchange
I find
Investment Securities
myself in disagreement
great many times in
1500 Walnut
Street, Philadelphia 2, Pa.
Teletype
PH 677
Philadelphia Phone
KIngsley 5-1716
Dime
New York Phone
WHitehall 4-7000
sion of
a
On the
supervi¬
our
ple. This is
a very
PHIL A. - B A LTIMO RE STOCK
difficult prob¬
lem.
NEWBURGER & CO.
Building, Allentown, Pa.
Urges Caution in Selling Trust
MEMBERS
New
Shares
UNDERWRITERS, DEALERS and BROKERS
I
and
Public
Stock
Exchange ,.v,
say
I
to
in
you
people who
investment shares
say
this
after
thought; this is not
this
is
after
a
a
lot
Philadelphia-Baltimore Stock Exchange
are
1342 Walnut
—
of
quick one,
lot of thinking—
Street, Philadelphia 7
Teletype: PH 306
Telephone: KIngsley 5-4500
a
NEW
that the sale of investment shares
Utility — Railroad—Industrial
York
New York Curb Exchange
dealing
Pennsylvania Municipal Bonds
EXCHANGE
situations
and invite inquiries on local
the investment trust peo¬
YORK,
N.
ATLANTIC
LEBANON. PA.
HARRISBURG, PA.
Y.
VINELAND. N. J.
CITY, N. J.
bestows upon those who sell them
BONDS and STOCKS
Distributors, Dealers, Underwriters
Specializing in
Issues Free of the
Personal
Corporate & Municipal Issues
Pennsylvania
Property Tax
DeHaven & Townsend, Crouter &
ESTABLISHED
"Varnall
&
Co.
'J
Members of
to
York Slock Exchange
Philadelphia-Baltimore Slock Exchange
New York Curb
1528 WALNUT
Exchange (Assoc.)
ST., PHILADELPHIA 2, PA.
Bodine
1874
MEMBERS
NEW YORK STOCK EXCHANGE
NEW YORK CURB EXCHANGE
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
1500
NEW YORK
CHESTNUT
STREET
PHILADELPHIA 2
WILKES-BARRE, PA.
they
hard-working, fine group of
of the Act, and I am still in favor
Shares
the
you
intended by the framers
was
of
present,
corporate
debt
am
believe that the
when
bring
Commissioners
ac¬
thinking
control-holder
know
I
control-holder
—as
Bank and Insurance Stocks
the
that, but I think
on
and
I
Commission
of
some
sales.
and General Market Municipal Bonds
Electronic
myself not always in
with
cord
on
SECURITIES
New Jersey
business
individual
each
help
more.
I find
Publib Utility
to
you
STAMFORD, CONN.
Volume 174
Number 5072
.
.
.
The Commercial and Financial Chronicle
(2317)
Walter
Sachs &
IBA Holds 40th Convention
tion
adopted
a
special resolution
tion in
underwriting or market¬
ing such bonds, and
s
"Second, that each use his best
efforts to inform voters, state
Committee, which reads as follows:
"The Investment Bankers Asso¬
ciation strongly supports the main¬
tenance of a Federal Reserve Sys¬
tem
whose
dent
policies
Government and
are
units
branch
other
guided only
by the responsibilities delegated
the Congress: A
System free to
pursue the principal purpose for
Which it was created; the regula¬
tion of the supply, availability and
cost of money with a view to con¬
tributing to the maintenance of
a high level of employment, stable
values and a rising standard of
living."
resolution
Another
the
Convention
adopted
„
enacted
laws authorizing
A
members
to
Restraint
palities
to
construct
acquire
industrial plants
purpose of leasing
or
for the express
individuals and to finance such
construction
or
issuance* of
obligation
acquisition by the
revenue
general
or
Program
primar¬
ily from the rentals of such plants;
and
emergency
through cooperation with the Na¬
tional Voluntary Credit Restraint
Committee and expressed approval
this
of
method
rather
ernment-enforced
than
gov¬
or
;.''V7--v--77';--V7 -777777
"WHEREAS, if this practice is
it may react to the
Q.
&
of
our
present
of free economy and
system
further
may
&
Torrey, W. C. Pitfield & Company, Limited, Mont¬
real.
...Y
ney
Farrar, Smith, Bar¬
& Co., Chicago.
Crouter, DeHaven
&
Townsend,
Crouter
&
Bodine,
Philadelphia.
fore
■
"BE
&
Co.,
Inc., Detroit.
L.
\
Harter, Sutro & Co.,
& Co., Los
Kent, Bank of Amer¬
Angeles.
Central States
Holden
K.
Egan, Inc., St. Paul.
ler,
were
Committee
Oil and Natural
Kernan,
Co., New York.
Okla¬
ton
Chairmen
Securities:
Securities:
Charles
John J.
Research and Statistics: W. Yost
Hugh
Fulton, Fulton, Reid & Co., Cleve¬
&
Co.,
land.
S.
Legislation:
Charles
Forgan
&
Stock Exchange Relations: James
Conference: Albert T.
Armitage,
Coffin & Burr, Inc., Boston.
F.
Burns, Jr.,
Harris, Upham
Co., Chicago.
Farrar, Smith, Bar¬
Quail, Quail & Co., Dav¬
K.
Pennsylvania
UNDERWRITERS AND DEALERS
7■
Jr., Stein
Bros. & Boyce, Philadelphia.
Mississippi Valley
Barclay,
7
7-V"; ?.
7
7-V.-.
.
;•
"-7 7;
•
/•
7.- '
■.•7-
7 7. '
•
••••
'•
-v..
Industrial, Public Utility, Railroad and Real Estate Securities
Michigan
•
Edward
IT
RESOLVED,
that
the
D.
Jones,
Edward
John
D.
Jones & Co., St. Louis.
L.
Kenower,
Kenower,
MacArthur & Co., Detroit.
Investment Bankers Association of
America in
dealers
New England
convention assembled
recommend to its members and to
William C. Hammond, Jr.,
Minnesota
Weld & Co., Boston.
generally:
ACTIVE TRADING POSITIONS MAINTAINED
Lawrence B. Woodard, Woodard-
White,
Elwood &
Company, Minneapolis.
Established
BlOREN
Members New York and
1865
6-
Co.
Philadelphia-Baltimore Stock Exchanges
Associate Member New York Curb Exchange
1508 Walnut
STROUD & COMPANY
Street, Philadelphia 2, Pa.
PEnnypacker 5-9400
New York
Telephone:
DIgby 4-5632
Teletype:
PH 574
'
Incorporated
•
-77"77777J'
7'7-77-7".777
PHILADELPHIA
Call
JANNEY
Underwriters & Distributors
Bank and Insurance Stocks
active
,
trading
State and
markets
Municipal Bonds
Utility and Industrial Securities
Pennsylvania Tax Free
Industrials Rails
Utilities
Common and Preferred Shares
Equipment Trust Certificates
Public
City-County-State-Authority Issues
Guaranteed Rails
Philadelphia Bank Stocks
New York Telephone
WOrth 4-214Q
Bell Teletype System
PH 80
JANNEY & CO.
1529{Walnut Street, Philadelphia 2
^ftlttenhouse
NEW YORK
•
PITTSBURGH
•
ALLENTOWN
•
SCRANTON • LANCASTER
S.
Co.,
enport.
William
L.
Bergmann, R. W. Pressprich & Co..
State
ited, Montreal.
&
Corporation, New York.
Torrey, Vrtis,
Glore,
Company, Lim¬ Chicago.
&
Weld
New York.
Loeb
Arthur
Pitfield
Gas Securities:
White,
Service
Railroad
New York.
C.
of
Bank
Charles C. Glavin, The First Bos¬
announced
Securities:
Kuhn,
National
Francis
1951-1952:
year
Knowlton,
W.
First
Public
National
as
The
Chicago, Chicago.
Company,
following
Incorporated,
Municipal Securities: Lewis Mil¬
&
CHAIRMEN
The
Andrew M. Baird,
G. Becker & Co.
& Co., Chicago.
Eastern
G. Egan, Mannheimer-
Jr., Courts
'77
City.
Canadian:
ica, N. T. & S. A., San Francisco.
Minnesota
Richard
Trust
Aviation
Francisco.
Russell A.
ney
Michigan
Allen, Blyth
Convention:
Joseph L. Ryons, Lester, Ryons
Gordon
C.
&
Burr, Incor¬
Chicago.
NATIONAL COMMITTEE
Groups
to
Governors of the Associ¬
Robert
San
K.
Alonzo
Bank
beginning with the close of for the
•
Slates
A.
Southwestern
homa
California
Membership:
Lemon,
Johnston,
Co., Washington.
Philip J. Rhoads, First National
GOVERNORS
Companies: Edward
porated, Boston.
H.
&
Hugh D. Carter,
Co., Atlanta.
as
the
Investment
Southern
ation
Canadian
Holden
Lemon
Pennsylvania
respective
cisco.
S. Amazeen, Coffin &
serve
S.
Central
their
York
nati.
The following have been elected
by
William K.
Barclay, Jr., Stein Bros.~& Boyce,
Philadelphia.
Heimerdinger, Walter,
Heimerdinger, Cincin¬
City.
Scribner, Pittsburgh.
GROUP
Inc., Los Angeles.
G.
Co., Houston.
Western
Federal Legislation:
H.
Amyas Ames, Kidder, Peabody &
Federal
Taxation:
James
M.
Co., New York.
Hutton, Jr., W. E. Hutton & Co.,
Robert
E.
Cincinnati.
Broome, Guaranty
Trust Company of New York, New
Finance:
Charles R. Perrigo,
York.
Hornblower & Weeks, Chicago.
Stuart R. Reed, Paine.
Webber,
Governmental Securities: Rob¬
Jackson & Curtis, New York.
ert H. Craft, Guaranty Trust Com¬
William M. Rex, Clark, Dodge &
pany of New York, New York.
Co., New York.
Group Chairmen's:
Ewing T.
Northern Ohio
Boles, The Ohio Company, Co¬
Leslie J. Fahey, Fahey, Clark & lumbus.
Co., Cleveland.
Industrial Securities: Eaton
Tay¬
Ohio Valley
lor, Dean Witter
Co., San Fran¬
James
Richardson, Underwood,
&
G.
Southeastern
Charles N. Fisher, Singer, Deane
,
William S. Hughes, Wagenseller
Arthur
Bradford
& Waeckerle, Inc., Kansas
California
& Durst,
J. C.
Mark A. Lucas, Jr., Lucas, Eisen
Neuhaus
1951-
New
John
Texas
year
,.
Miller
Simonds,
Walker & Co., Providence.
Southwestern
following have been elected
their respective groups to
serve
as Group
Chairmen of the
ultimately endanger the valuable
position of state sovereignty as a
part of our constitutional dual
system of government; now there¬
R. Ledyard,
Co., Nashville.
The
the
Moore
New York.
B.
Woody &
by
unchecked
detriment
Carroll Mead, Mead,
controls.
CHAIRMEN
for
Stone,
Education: Norman Smith, Mer¬
Blyth & Co., rill Lynch, Pierce, Fenner & Beane,
Inc., Boston.
Southern
..
^
Stone,
& Co., Baltimore.
Eastern Pennsylvania
7 "WHEREAS, similar practices in
the past have had injurious ef¬
fects upon public credit; and
E.
Company, Denver.
Dana T.
GROUP
Richards
Southeastern
the Credit
during the
mobilization
defense
bonds of such munici¬
palities payable solely
and
of
upon
Merrill,
Rocky Mountain
Ernest
promote
such plants to private corporations
or
called
B.
Blum, Inc., Spokane.
W.
resolution
third
munici¬
or
&
inherent
and
dangers of public financing
"WHEREAS, the Legislatures in Association
1952:
some of the states have recently
manufacturing
Pacific Northwest
by
with Municipal Credit and Indus¬
trial Properties, and reads as fol¬
lows:.
of the
Stein Bros. &
Trost,
Beardslee
this character."
concerned
was
parties
S.
Boyce, Louisville.
government, and
interested
experience
past
to the System by
Federal Reserve
-
local
of
Shepard,
Ohio Valley
Milton
Charles M. Abbe,
Godfrey
Prescott,
Shepard & Co., Inc., Cleveland.
issuing
prospective
legislators,
indepen¬
of
are
Executive
the
of
O.
Robert
ment and exercise extreme cau¬
Securities
Government
its
from
Blaine,
Goldman,
Co., New York.
himself
adjourning, the Conven¬
New England
F.
Northern Ohio
"First, that each take it upon
to become thoroughly
informed on this whole develop¬
ADOPTED
RESOLUTIONS
Before
York
New
Continued from first page
77
Since
6-7700
?
,
1907—Underwriters, Distributors, Dealers, Brokers
&
The Commercial and Financial Chronicle
78
Thursday, December 13, 1951
>
..
(2318)
Continued
from
Neglected Facet o! Inflation
A
that a sharp
commodity prices should
of porate debts
loans
nearly as well
in view of the facts
may do
gigantic
a
"tenure"
last year
that the dollar value of total in¬
as
part of
future is
the
in
is
post-war year in which we
a
recession,
so-called.
That was 1949, when private debts
suffered
This
growth of
is
the
the
veil
ances.
further
expanding.
The Trend
•
The total.net debt of all kinds,
economic and
at
of
end
the
lion
political, amounted
1950 to about $515
debt is
than 2Vz times the
($191
billion). The
portion of the latest
total has just caught up with the
federal: $265 billion vs. $257 bil¬
lion.
What
matters
is
not
so
much this fact itself, important as
billion,
1929
or
more
so.
A new addition of $25
$30 billion to the net
to
economic
fair forecast for 1951.
a
the armament race continues, as
count
certainly will, business and indi¬
viduals
will
be
burdened with
more
and more debt.
Note how¬
non-federal
the armament boom
produces few assets to service the
that
ever,
added debt—td say
is; what matters is the inexor¬
able trend.
The liabilities of the
nothing about
it
providing
protection
against
sword
of
mounting. Damocles'
Cheap money, government guar¬ liquidations.
antees, accelerated write-off per¬
Liquidation?
mits, etc., serve as incentives; high
economy
"must"
If
it
keep
In
corporate
by a round
decade, the total
a
been dilated
debt has
and
should
keep
But
anJ West
Listed
Unlisted
and
Virginia
lenders
ness
Pittsburgh Slock Exchange
Chicago Board of Trade
New York Curb Exch. (Assoc.)
UNION
Bell
Butler, Pa.
TRUST
»
BUILDING
•
Erie, Pa.
PA.
19,
*
*
New Castle, Pa.
*
Warren, Pa.
Clarksburg, W. Va.
•
Winchester, Va.
Wire System
HARRIS, UPHAM &
CO.
candle
of
not
mean
might involve
a
a
"run¬
a
1931. But
"recession" of
la
Woe to him who
1938 order.
caught in it—in its debt-tangle.
Spelled out, a warning to busi¬
is
ness
check
infla¬
implied to check
short-
its
and
commitments
against
armament
boom
and
re-
long-term
—
the
to
be
day
the
slow down.
may
(in $ billions) AT YEAR ENDS
Other
Farm
Non-farm
No-n-farm*
Short
Debts
Mortgages
Debts
Long
1916.
29.1
11.1
7.8
8.5
20.0
1922
34.4
24.2
13.9
14.3
22.7
1929______
47.3
41.6
12.2
31.7
28.7
1939,
44.4
29.2
8.8
26.3
16.8
1940.
43.7
31.9
9.1
27.2
17.7
1945
38.3
41.3
__
1947
7.2
52.2
'
,
27.9
33.6
/
,
V
20.5
7.6
47.0
•
46.1
20.9
62.8
8.4
40.1
24.4
52.5
65.3
10.6
46.6
27.7
1949.
55.4
59.3
11.8
51.9
30.5
1950
58.2
76.8
11.9
61.1
36.9
1948
—
*Includes
Their future sound¬
-v
and
consumers
business.
non-incorporated
A. M. Kidder Branch
With
(Special to The Financial Chkonicle)
while
(Special
New
same
holds
for
which
have
risen
CORAL
consumer
five
in
by roughly 260% — to $20
billion last December.
But loans
to
The
more.
employment.
to
need
——Corporate——
&
York
opened
378-80
a
new
GABLES,
Co.,
new
is
Fla.—A.
members
Stock
Miracle
Newman
years
Correspondents and Private
it
in
TIIE NET PRIVATE DEBTS
Kidder
loans
That
a
deficit anywhere be¬ financial
$5 and $10 billion, perhaps prepared
values perverts
the outlook. Surely, it will depend
on
what happens to prices and
The
Meaclville, Pa.
•
Washington, Pa.
*
even
the inflation of all
Telephone ATlantic 1-3241
Teletype PC 466
Unior.town, Pa.
PITTSBURGH
gone
ugly
situation
a
scaling-down—substan¬
liquidation—is accepted as the
up
gives
scarcely be gauged
can
budget has
the
becoming a bit wary
are
them.
about
members:
Exchange
run
tween
gage loans are no panacea against
their inflation. Small wonder that
Securities
Kay, Richards & Co.
New York Stock
Federal
face
to
run-away
a
away" depression
the red; next calendar year it may
amortizable mort¬
that
of
"compensatory
1946
depth of the depression
in
idea
the
levels,
Ere long, we
alternative.
is
credits (owed to
evidence
boom
the
is
face
means
cost
unless
tial
Presently, both pumps are in
operation and will keep operating.
The
that
conflicts, etc.
meet
prospect of
slows
the
climb of housing
institutions) since
2 ^ -fold
A
This
famous
f
the
maintain
to
as
the
strongest
the
mechanism
budget"
possibly is
its weakest link,
once
credit
perpetuity.
hand, farm credit,
On the other
on.
Pennsylvania
so
expansion; the
wagging the
may
shall
down, the government steps in to
prime an artificial credit pump
(private) credit structure.
of our
Two-Pump System
short, whenever the autono¬
mous
present inventory loans constitute
the most vulnerable Achilles' heel
today, and it may
stay relatively strong; as to mort¬
gages,
the farms carry barely
more than 50%
of the amount at
But must
there be a
day of
taxes help to force the corpora¬
their peak debt-load of the early
Liquidation?
tions' hands.
1920's, while their productivity has
Patently, the present-day stock greatly increased since. Another
Take 1951. Currently, consumer
of our stronger links of the credit
debts are increasing again, though market is not built on the shifting
chain is the municipal debt.
So
for the year as a whole they may sands of $8 or $9 billion in mar¬
far, it is less than 25% greater
show a moderate recession.
Cor¬ gin loans, as it was in 1929. Call- than at its 1933 peak ($20.4 bil¬
lion vs. $16.7 billion). But it is this
sector that is perhaps most in need
of fresh money and for years to
UNDERWRITERS
DISTRIBUTORS
DEALERS
come.
It must expand from here
Western
In
debt
kept
private
more
economic-dog.
$8
appear¬
be
may
and
more
public
social
at
that
evident
be
of
tune
by
behind
i-1.
ever-rising price and
The
companying summary.
It
the
to
matched
hidden
inflationary
■
debt-tail
both
Real Liabilities.
our
appearances
by
up
of
at
Real Wealth
our
truth
-yy
The
billion.
$60 billion, the short-term contrib¬
uting the greater expansion, $45
billion—$17.5 billion in 1950 alone
—as shown at a glance in the ac¬
the
potential
debt
tional
Urban mortgages may
augmented by another $9 bil¬
be
of
better than
being
the
.
;;:yy yy;\
burning
.,yv.%y:'
.
one
the
In
be
ends. ;v\ ■.
The growth
process, prices would
be did not
decline, to be sure; actu¬
depressed, caUing fpr mote
ally, they rose, but by some $6
the cost incurred in the process of
liquidation, and so forth.
The billion1
"only."
This slow-down
ventories has not decreased to any whole
system of inflated raw ma¬
pushing artificially the creation
was disconcerning
enough to call
of more welfare and more arma¬ appreciable extent, and bank loans terial values would be doomed,
for an increase in the (gross) na¬
and corporate bond issues keep with incalculable consequences.
ments.
"
security
diminishing
lively
should
tion
self-
stretching, its political counterpart
virtually stood still—except in the
Inventories and inventory
would have to be liquidated.
occur.
underwent
ture
Suppose, however,
break in
while the "economic" credit struc¬
not start
ing brokerage loans could
much of an avalanche.
3
page
M.
Exchange, have with
office
branch
Mile.
Robert
associated
with
Financial
111.
CHICAGO,
Thomas
the
of
Barclay Inv. Co.
to The
—
Robert
become
has
Barclay
;
Chkonicle)
Co.,
39
at
South
E.
formerly with Harris, Upham &
Co. and Paine, Webber, Jackson &
the
branch.
La
Street.
W.
associated
Investment
Salle
He
was
Curtis.
;
non-incorporated business seem
billion.
stagnate around $15
points to bear in mind are
two.
First, what these figures de¬
note is not merely a state of af¬
The
fairs.
FAUSET, STEELE & CO.
Members
Pittsburgh
Stock Exchange
They
indicators of an
are
extraordinary dynamism, as men¬
tioned at the outset. We are add¬
THOMAS & COMPANY
UNION
debt perhaps
possibly also
next year and the year after.
If
everything goes well and no mis¬
hap occurs, the net debt of the
economy — sans
federal debt —
should approximate $400 billion
by the middle of this decade, more
TRUST
BUILDING
ing to the economic
PITTSBURGH
$30 billion this year,
Underwriters
Dealers
Distributors
Corporate and Municipal Securities
than
1812
First
National
Bank
1-3883
PA.
Municipal and Corporate
doubling the 1929 record.
Securities
and this is the
second point, asset values must be
stretched to match the liabilities—
which is the accountant's way of
In the meantime,
Bldg.
PITTSBURGH 22, PA.
GRant
19.
Teletype PG 381
defining
a
inflation
general
of
prices and capital values. "Water¬
ing the stock" is the vulgar term.
UNDERWRITERS
DISTRIBUTORS
DEALERS
prices do not rise, or go
then the liabilities
adjusted downward—
is the essence of a deiia-
if
But
into
reverse,
have
which
1877—SEVENTY-FOUR
YEARS OF
be
to
LEADERSHIP—1951
tion.
CORPORATE and
MUNICIPAL
■ft
In
short, liquidation would have
unavoidable were it not for
been
SECURITIES
another
have
so
factor
at
play which
we
That is where the
political (na¬
tional) debt comes in.
SINGER, DEANE & SGRIBNER
YORK
PITTSBURGH
NEW
YORK
CURB
STOCK
STOCK
'
EXCHANGE
prising thing
A
EXCHANGE
EXCHANGE
UNION
Wire to New
PG 477
A
PG
'
478
York
is its lopsided cor—
the economic debt.
has
depression.
It
was
and
cush¬
extent, by an al¬
most
equal rise of the national
debt during the same decade.
In
World War II, the political debt
went
19, PA.
Telephone
GRant
1-4700
some
MOORE, LEONARD & LYNCH
V: ■'■/'/[
New
buoy
economic
war
flation
(and
activities, during
the
thereafter).
basis
for
Since
in¬
1946,
'
York
Exchange
Union Trust
Pittsburgh Telephone
ATlantic
1-0358
Direct
\j
members
Stock
New
Pittsburgh Stock
through the roof, providing
practically all the financial fuel to
the
1 !•
Securities
sur¬
means
no
$34 billion (20%) private and
ioned, to
TRUST BUILDING
PITTSBURGH
Teletypes
with
Corporate and Municipal
The inter¬
municipal
debt
liquidation
•been underlying the deepest
(ASSOCIATE)
longest
Direct
by
though
relation
MEMBERS
NEW
esting
in
far neglected.
The Political Debt
j i
11
Underwriters, Distributors, Dealers
,
«
Private
York
Curb
Exchange
Exchange
Building, Pittsburgh
Teletype
PG
Wire
New
York Telephone
DIgby 9-3650
397
to
New
York
Office
Volume 174
Number 5072
.
The Commercial and Financial Chronicle
.
.
\
(2319)
Continued jrom page 4
of
expenditure, military spending
will
still
mount
from
Some
a
about
Perspectives of
$40
must
during
the
calendar
Construction
1952
below
Declines
tion
its
in
will
from
will
for
volume
bring
the
$22
1951.
total
1952.
will
Investment
be
in
that
businesses
seek
to
in
down
high inventories.
expenditure
off
billion
should
has
program
on
an
the
We
the
June
arms
superimposed
that had already
end
of
capital goods boom.
but
that
late
As
war.
such
as
last
Oct.
expansion
basic
level
endar
year
to
be
pleted.
in
here.
seen
of
extent
Defense
—
whose
view that
to
force
We
economy.
the
inflation
see
upon
the
the anomaly of
on
the
negative to the program during 1952 will proceed
$2%' billion at a slower pace than was planned
but it has become earlier. Up to the end of October
than
during 1950;
positive during
the last six only about $40 billion of the $110
months, with a shift toward a billion dollars of spending author¬
..growing e x p o r t surplus.
The ity granted by Congress had been
mounting difficulties of France obligated by the Department of
and
yand
Britain
stability
in
in
of -their
meeting
maintaining
currencies
and
Defense, and only about $15 bil¬
lion
of
debts
been
produced and delivered.
financial
even
with
their -external
j: makes it likely that
the
new
the
goods
ordered
reduction
a
in
have
of
the
between
between
for
8
and
by physical in¬
by price
increases in the
Large
the index
John Clifford Folger
of
during
1952.
Wholesale
should
moderately.
that
is
assumed
Wilson's
Mr.
illllllllllllllllllllllllllllllllllllllllllllllKfllllllllllllllllllllllllllllinilMlinHHHII^
increase
program
It
preventing substantial
THE
across-
MARSHALL
the-board wage increases will pre¬
vail, and that the average increase
in
John S. Fleek
prices
consumer
only
of
Jay N. Whipple
whole should not rise appre¬
a
hourly
What
wage rates will be held
are
1
since
and
mid-1950
rates have risen
rise
WE MAINTAIN MARKETS IN
I
|
UNLISTED WISCONSIN SECURITIES
1
Milwaukee 2, Wis.
E
the probabilities with
respect to money rates? Since 1949
short-term money rates have been
The
CO.
4%.
has
been
short-term
long-
moderately.
rates that
partially closed.
=
substantial
so
the
ab¬
normally large gap between shortand
long-term rates which has
persisted since' the '30s has been
The gap remains
E
765
NORTH
WATER
E
STREET
jjj
MARQUETTE 8-8130
TELETYPE MI
461
=
•/
riiiiiiiiiiiimiimmmiiiiiiiiiiiimiiiiiitiimiiiiiiiiiiiimiiiiiiiiiimiiiiiiiiiiiiiin:
abnormal, nevertheless.
The
of
prospect is a continuation
interest rates, with pos¬
firm
sibly
the
moderate
a
whole
further
interest
rate
rise
in
structure
during 1952, especially short-term
rates.
Since the well-known "ac-
But -cord"
the rate
be
likewise
t
'
product
level are
unlikely.
Food
prices will fall, in all probability,
for
armament
was
more
judgment
value
and the other half
increase.
term
military restraining its out¬
Expenditure
will
be, accounted
crease
rising,
free hand "to spend!
a
1941-42
Will
Money Rates Will Be Firm
r
as
1942 -43
beginning of 1952 and the end
1952
sound, non-inflation¬
a
Product
the
national
below
ary
economy
is the basis of
national defense, and is reluctant
to spend this vast sum so
rapidly
foreign investment by the
of
The
of
in
here
$100
lays while Congress has given it
Foreign Investment Will Rise
United States
over
rise
ciably
Congress—the
spending authority.
Department
45
-
all of the categories
up
prices
public welfare—
given the military
billion of
the
the
as
paradox
com^
$45 billion or less
during the final quarter of 1952.
Net
much
a
responsibility is the Military de¬
This sector of investment
rate
a
44
Moderately
of expenditure leads to a
fense of the nation—is taking the
expenditure will rise during 1952.
Taken as a whole, however, gross
private investment will, in my
judgment, probably fall to an an¬
nual
has
is
There
-
not
price
an
chem¬
only al?out 30%
was
the
is
during the next cal¬
than was originally
anticipated.
steel,
as
aluminum, petroleum and
icals
1
plant
of
industries
there
military expendi¬
In industries vital to defense and •guardian of the
planned
for defense
at $-35
fiscal year ending
1953,
lower
An offsetting
factor will be the continued high
rate of expenditure for new plants
30,
1943
that
will
10%, about half of which would
serv¬
budgeted
ture will be held down to
prolonged
a
the
for
indication
been
economy
reached
1952.
that
remember
al¬
and
goods
on
Cash payments
during
Adding
com¬
of
originally
further
of
to government
we come
were
has
Rise
gross
ices.
industries
Gross National
that
Finally,
But we
If so,
domestic
our
IBA PAST PRESIDENTS
$60
of
possibility
a
expenditure
of
rate
peak
a
Government Outlays Will Rise by
Less Than Initially Planned
Plant expansion
to
"hump," but will grow
slowly to a plateau that will be
maintained indefinitely.
foreign in¬
one
ready passed its peak and will fall
non-defense
have
paratively small magnitude.
will
confront
This will be
occur.
although
economy,
currently
rapidly,
annual
billion
military
the
by
1952.
net
sustaining factor in
a
during
general
their
reduce
extended
rise in
vestment will
inventory
the reason
negative, for
be
further
a
construc¬
billion
will'
aids
United States during
during
fto around $18 billion during
1951
in
off
residential
about
1952,
year
fall
quite
current
billion at the end of 1952.
1952—and Beyond
79
of
last
March
between
the
Treasury and the Federal Reserve
Board, rates on government se¬
curities
rise in
eral
have
been
Reserve
likely
permitted
"orderly" market.
an
to
authorities
Investment
Securities
to
Fed¬
are
their
reverse
The Milwaukee Company i
207
East
not
present
Milwaukee
Michigan Street
Wisconsin
::
policies and to return to the foi'-
BREW EMCH JENKINS CO
policy of supporting the prices
mer
of
bonds
government
fixed
at
Member Midwest Stock
levels.
They will permit interest
•rates to rise by '-hitches," if mar¬
ket conditions make for
rise, and
a
the structure of rates will be
per¬
mitted to assume whatever iform
Investment Securities
Exchange
Chicago Office
135
South
Saint Paul Office
LaSalle Street
144 Endicott
market conditions prescribe. Fed¬
eral Reserve authorities will con¬
Building
tinue to follow policies of credit
FIRST WISCONSIN1 NATIONAL 3ANK
BLDG.
business
MILWAUKEE, WIS.
Madison Office
restraint with respect to consumer
credit, home mortgage credit, and
credit.
The
First
Voluntary
continues
While
it
is
must
ury
to
true
be
.First American State Bank
Building
threat.
a
that
Wausau Office
Bank
Building
Credit Restraint Program will be
continued so long as price infla¬
tion
National
the
Treas¬
in
a
of
refinancing
of
on
a
huge
debts
due next .year, this will
•probably
be
done
at
current
amount
engage
falling
rates
Robert W. Baird
&
Co.
Members
Npic York .Stock Exchange
■
.
!
New
yield
JOan
basis slightly
rates.
If,
previously / sup-!
posed, individuals save a rela¬
tively substantial fraction of their ;
as
S/nfjuitieb Sttvifed us
current
have
we
MILWAUKEE
to
Exchange (Associate)
prevent
any
rise
severe
from occurring. Dur1952 it is not likely that the
Treasury will be obliged to en¬
SPtccfa
<
ing
in
gage
Robert W. Baird
&
Co.
:
the
rate
yields
Incorporated
high
come
Underwriters
Wisconsin Securities
Bought
—
Sold
Telephone: DAly 8-0525
Teletype: Milwaukee 291
amount
of
new
because moderation
of
from
spending
the
corporate
taxes
large
currently
and
will
and
the
Bank
and
^
-
Public Utility
Industrial
Insurance
Industrial
Municipal
Mutual
Institutional
Funds
very
in¬
personal
bring
in
Public Utility
con¬
solidated cash (though not the ad¬
ministrative)
close to
a
budget
reasonably
balance.
a
Earnings
Result
of
Will
a
confusing
MIDWEST STOCK EXCHANGE
Decline
223
Steep Taxes
To the investor in
corporate se¬
curities I suspect that 1952 will
present
I
a.®sw.&
MEMBERS;
Corporate
as
MILWAUKEE
large
a
WISCONSIN
in
money rates
financing,
&
SECURITIES
disposable incomes, this will tend
Midwest Stock Exchange
York Curb
or
higher
picture
of
sharply diverging trends of indus-
1%
MASO.\ ST.,
MILWAUKEE 2
Telephone* DAIy H-5.UI2-3-4-5-8
*
Bell System Tele. Connection—in 4tt
_
Chfcaco Phone—STute 2-0233
•
1
5
t
Continued
on
page
80
The Commercial and Financial Chronicle
€0
Thursday, December 13, 1951
...
(2320)
Continued from page
international tensions subside, as
designated as a decentralized in¬ considerably higher fraction of
dustrial area
favorable for the her national production for mili¬ barriers to trade are lowered, and
industry, tary purposes, although I know of as the internal political stability
expansion of defense
The time is of other countries provides assur¬
which
permits
modification of no reliable figure.
79
Perspectives of
Some
1952—and Beyond
The basic question is
trial earning power.
One thing
how many homes are likely to be
^appears almost certain—that net
built during 1952. A month ago
learnings after taxes of all nonEconomic Stabilizer Johnston
financial corporations will not in¬
proposed a slash in home construc¬
crease during 1952 over 1951. Div¬
tion to no more than 500,000 units
idend payments, however, may be
in order to prevent upbidding of
'fjustained at about the 1951 level,
owing to a reduction in the cash prices of construction materials.
Federal
Housing
Administrator
drain of financing new plant ex¬
Foley insisted, on the contrary,
tension
from
private sources.
that a minimum of 825,000 units
While burdensome corporate in¬
was necessary to meet the needs
come taxes will limit current re¬
of defense plant workers, and this
turns from investment, there is a
number would not put undue in¬
bright side to the picture. Firms
In defense industries, able to write flationary pressure upon available
materials. If Mr. Johnston's pro¬
all of you.
off their
new
plant over a five-
posals were realized, home con¬
period, will be building up
struction during 1952 would be
tDotentially large increases in real
cut to half of the approximately
ussets.
Of total new investment
one million homes completed dur¬
■in plant of $50 to $60 billion en¬
visaged for the post-Korean arma¬ ing 1951; while Mr. Foley's pro¬
ment program, nearly $10 billion posals would mean a cut of some¬
year
steel
programs—has been
covered by accelerated depreci¬
ation.
Firms in these industries
ivill come out of the defense buildlip period with plants expanded to
Include the newest and most ef¬
ficient production facilities, paid
for largely out of income tax sav¬
ings. If they have ample markets
for their products after the mobil¬
ization peak has passed, and if
ive may look forward to a reduc¬
—including almost all of the
and aluminum
<
restrictions
credit
what less than 20%.
Both of these
be evaluated in
estimates should
the fact that, at the
1951, governmental
administrators fixed the maximum
the light of
beginning of
the
Either they will pro¬
long the armament race, increase
the emphasis on military spend¬
ing in their national budgets, and
large part of the impending de¬
fense build-up lies in aircraft pro¬
duction, payrolls and personal in¬
comes in this area will mount rel¬
ative to
ttre
so
These "ifs"
returns.
important, however, that
the risks justify a
policy of accel-
be
Los Angeles Area Home
Fall
tion and
matter
Significantly
portionately less than in the na¬
whole, for several rea-
the mortgage market, action as a
of
immediate
Much
the Los Angeles area will be pro-
to home construe-
now
come
Construc¬
Decline
Not
Will
It is likely that the decline in
Will
concern
to
in¬
I envisage it, would
involve not merely direct invest¬
vestment,
as
ments in other countries by Amer¬
ican
corporations, but would also
ward
It is estimated that about
to¬
move
regime of world stability.
a
It
ernments.
is
difficult
not
to
conceive of net foreign investment
I am optimistic enough to believe exceeding $10 billion per annum
for an indefinite period of time.
in the Los Angeles area that the second course will be
The poverty that afflicts most of
during 1951. For the reasons men¬ followed. At least it is fruitful to
the world may only be relieved
tioned, this figure may be nearly discuss the economic consequences
The by a strong growth in production.
duplicated during 1952. The local only of the peaceful course.
This
requires capital, and the
mortgage loan market should ben¬ changes in the world and in our
efit from a sustained rate of new own way of life that would result United States is the world's only
pleted
mortgage loans.
another holocaust would
from
gage
so
The lush mort¬
market of 1949-50 is defi¬
nitely passed; but home mortgage
profound as to make
nomic speculations idle.
any
be
eco¬
Let
us
lenders in this area need not fear
large
Political
of capital.
source
financial
and
machinery
for
bringing together the vast latent
demand for, and the supply of
assume that, within the next few
demand for their years, the world will move in the capital will be difficult to devise;
services next year. It is estimated direction of stable peace and arms but I am hopeful that human in*
Need we then be con¬ genuity will solve the problem./
that 185,000 real estate loans in reduction.
On the assumption of a move¬
a
total amount of $1,600,000,000 cerned about the ability of the
collapse
a
of
1951 in American economy to maintain a
For the year high level of employment arid
1952 it seems likely that at least prosperity in the face of drastic
175,000 real estate mortgage loans, cuts in our military outlays? I,
for one, do not feel much concern.
aggregating not less than $1,500,000,000, will be recorded.
In Most emphatically do I reject the
line with interest rates in general, view that our economy has a
will
be
recorded
during
Los Angeles County.
vested interest in arms and war in
order
to
I fore¬
important reduction in the
no
see
rate of
expenditure of
Federal
As
our
Government during the 1950's.
outlays
military
outlays
larger
they
fall,
will
replaced by larger
on
public works,
probably be
expenditures
pension
for
and
depression.
I other "security" programs which
venture the prophecy that other already need readjustment to ac¬
types of demand would come to count for the price inflation we
replace
arms
demand, on
the have had, and larger foreign in¬
assumption of a peaceful turn of vestment. In short, the prospect
to
prevent
is
events.
Public
Works; Social Welfare and
Foreign Aid Will Replace
Military Spending
sought, excepting where they can
resold
ment toward world peace,
FNMA.
for
continued
a
large
Federal
budget which will be balanced by
revenues raised at lower rates of
taxation than those that
The
rent.
are
cur¬
the
that
expectation
In the first
tion
National Home Construction
that
Such
65,000 dwelling units will be com¬
be
1951.
crated depreciation.
I
15% below those completed in
safe.
are
bring on the catas¬ involve the flotation of securities
a third World War, or of the World Bank within this
else agreements will be reached country, and loans by our Fed*
to
reduce
armaments, to
limit eral Government to foreign gov*
population will be attracted which
will need housing and will have
incomes
permitting
it to buy miliary oultays, and to
homes.
funds
ultimately
those of the nation, and trophe of
production of n e w homes at
800,000 to 850,000 net units, but it
now appears that total comple¬
the prospect is that mortgage loan
tions will top 1,000,000.
On the rates will be firm and may rise
other hand,
even
the 1,000,000 moderately. This means that con¬
homes completed during 1951 rep¬ ventional
mortgage
loans with
resented a cut of 28% under the rates of 5% would be most at¬
1,400,000 units completed during tractive to lenders, that FHA 4V2%
1950. I am inclined to put urban loans will be next in the scale of
tion in the rate of corporate in¬
home completion during 1952 at attractiveness, and that VA loans
come taxation, they should be in
around 850,000 units, which would at
4%
will not ordinarily be
a position to earn and pay highly
satisfactory
ways.
investors
American
to
rapidly approaching when the big ance
nations will reach a dividing of their
and of FNMA
purchases of mortgages within cer¬
tain limits.
Secondly, because a
First,
sons.
this
area
has
been
place, I would an¬ United States will return to a $25ticipate a very great increase in $30 billion annual level of expen¬
the Longer Term
Federal
expenditures for high¬ diture is unrealistic. The Federal
So much for a short-run per¬ ways, dams, river valley develop¬ fiscal pattern of the 1950's will, I
spective of major economic events ment, and internal improvements believe, be that of the big bal¬
O u 11 a ys in public anced budget, in contrast to that
during 1952. May I now view in generally.
works would mount to levels that of the small balanced budget dur¬
longer perspective some probable
would dwarf previous programs. ing the Twenties and the deficit
developments
of the American
For example, there are plans for budget of the Thirties and early
economy during the decade of the
a Federal super-highway program
Forties. This prospect, however,
1950s.
■
World Tensions Will Lessen Over
r
Assuming that
our
defense
Looking For Distribution ?
we carry
present plans for
a
through that could take $5 to $7 billion should give no cause for alarm,
provided that balance is achieved
national annually for
by
establishment,
1953
period of 10 years.
a
Secondly, I should look for a very
military outlays will be consum¬ substantial expansion in the for¬
taxes
incomes.
Securities
At Retail In
KETCHAM & NONGARD
Securities
Investment
Harris
taxes
must
be
economy
observers
a
have
resigried
view that recur¬
price inflation will be our lot
indefinitely.. Writing in Lloyd's
W.
Review"
Kent
recently,
Mr.
T.
ironically notes that the
of postwar economic be¬
pattern
havior in Britain has been an in¬
flationary crisis every two years.
NEW YORK
.
corporate
rent
"Bank
St., Chicago 3, Illinois
INCORPORATED
:
our
themselves to
105 West Adams
CHICAGO
if
reduced,
Many
We Want To Hear Your Secondaries
&
Income
and
Finally, we may inquire what
is the long-run prospect for prices.
Illinois, Indiana and Michigan
Sills, L airman
Federal
current
personal
on
is to
maintain strong production incen¬
gross national production.
It is people. This investment will be¬
tives, efficient business manage¬
believed that Russia is spending a come feasible and profitable as ment, and an ample supply of
venture capital.
ing between 18% and 20% of our eign investments of the American
We Sell Corporate
lower than
with
Underwriters and Dealers
BONDS
"The economic cycles of
the inflationary age—the
and
more
STOCKS
•
He says:
cycle of
inflation—seem to
less
be much faster than the more fa¬
MUNICIPAL BONDS
REVENUE BONDS
•
miliar pattern
of the trade cycle
—boom and depression.
The kettle
perpetually
on the boil, and about every two
years it has boiled over."
This
summary does not fit American
inflation has
of
Central Republic Company
(Incorporated)
.'V-V'"
■
Teletype: CG 385
Telephone: DEarborn 2-6363
;;V\'' \
v-'-,
been
experience too badly.
209 SOUTH LA SALLE STREET
I think the odds are
CHICAGO
Underwriters
Distributors
UNDERWRITERS AND DISTRIBUTORS
Dealers and
'
-
of
INVESTMENT SECURITIES
•
:
•
INVESTMENT
★
DENVER
MINNEAPOLIS
DES MOINES
OMAHA
MILWAUKEE
Incorporated
Members Midwest Stock Exchange
Member of Midwest Stock Exchange
135
South La
ten
price deflation and to
price inflation. The economic
Salle Street
CHICAGO
pro¬
power of labor unions, the parityprice formula for supporting basic
agricultural commodity prices, the
propensity of government to keep
money cheap and to spend beyond
its means—all support this conclu¬
sion.
F. S. YANTIS & CO.
ST. LOUIS
higher
vent
SECURITIES
NEW YORK
significantly
from now than they are to¬
day.
Our economy has become
institutionally organized to pre¬
years
mote
Brokers
OF
a
will
be
strongly in
view that price levels
favor of
Equally important, the
United
States
is
part of
a
world
community of other nations beset
by
powerful
from which
inflationary forces
can hardly expect
we
to be insulated.
The
over
prospect
of
rising
prices
the long-term need not dis-
Volume 174
Number 5072
.
.
.
The Commercial and Financial Chronicle
if the rate of rise is small,
public does not believe
may us,
and if the
it
will
good
become
rapid.
indications
are
Britain and the United States dur¬
ing the early
rapid. Otherwise, how may one
explain the recent rise in saving,
it
and the general reluctance
of the
public to shift from fixed
dollar
such
life
as
insurance
and
bonds to real estate and equities,
in
even
war
the
face
of
post¬
severe
price inflation?
Two
dangers
are,
equally
re¬
mote; first, the danger of runaway
price inflation,
of China
after the pattern
the Central European
or
sec¬
Amer¬
the
ican public does not believe that
the future rise in prices will be
assets
I;
ondly, the danger of severe price
deflation,
such
as
occurred in
There
that
countries after World War
inflation is
has
Sharp price
1920's.
bad thing; but once
a
occurred
evils
its
are
(2321)
pected by some observers to grow
even
tighter. As bearing on in¬
ing
"The basic premise of
believe inflation will be
threat in the
prices.
produces
unemployment
and
dislocations
which are equally bad for the
economy.
My perspective of the
long-run course of prices is not
favorable when compared with the
optimum condition of price satbility. Yet it is optimistic in com¬
parison
w i t h
expectations
of
either
rapid
price inflation
or
sharp decline in the price level.
December issue of "The Guaranty Survey," monthly
defense
about
ernment
now
is
lion
at
of
"The
publica¬
Guaranty Survey," monthly pub¬
annual
an
is
deliveries
of
ment to rise to
lication of the Guaranty Trust
Company of New York, points out
production and
that
duction
"inflation
continues
to
be
a
of "concern,
despite '; -the
stability of the economy
during the past quarter," adding
source
relative
fit is
now
clear that the inflation¬
predicted earlier by
manygovernment ^and
private
economists had not developed by
autumn—mainly because of con¬
sumer
apathy and slower-thanary pressure
expected defense payments. Some
official
and
private
sources
now
such
per¬
of
will
their
is
in
and
wage
salary receipts due to longer hours
and overtime payments.
V';
•'
•
Other Important Inflationary
officials
however,
seems
nonfarm
prices
serious shortages of most
to
Connely
regarded
abnor¬
an
as
save
income,
MUNICIPAL BONDS
"Other
cur¬
gov¬
anticipate
fur¬
coming months.
The preliminary estimate
employment
of
sectors
opinion
Since 1885
re¬
spect the considerations mentioned
in
of
as
We
that
believe
to
will act
brake
a
future. In the whole
near
of total
of mid-
specialized
years,
of
in
Illinois
and offer
you
underwriting
the
municipal
andi
for 67
bonds
experienced, prompt service.
area
spending there is
consumer
have
distribution
inflationary movement in
any
the
tend
but
a
widespread belief that the market
close to being saturated last
H. C. Speer
spring
"Although employment is
rently at near-record levels,
increases in
Emmett F.
Factors Easing Inflationary Threat
was
Potentials
ernment
continue
disposable
other factors
■' f.':
power at a
amounts of
chan¬
greater
above
contributing factor also is the
;v-y«".'
sums
in
mally high figure.
pro¬
of
level
advance
will
increased
of these
purchasing
when
sonal income will continue to rise.
expected
annual rate of
result
A
ther
to be that, barring
the
rates
maintain that next spring will be
critical period. A growing belief,
a
as
equip¬
military
an
to
textiles, raise
as
about
rate of
$52 billion by next September. A
large portion
consumers
firms
as
the
at
$40 bil¬
over
rate, and pro¬
into
defense
production.
Finally, it is widely doubted that
defense
currently soft
conversion
complete
areas,
that
F. E. Frothingha*
gov¬
$20 billion. Present schedules call
for
9%
believe
by
neled
,■
economists
Jean C. Witter
actual
an
spending
considerably
which
issue
1937 -38
agencies. Such spending
curement
time
Guaranty Trust Company of New. York, points out
inflation threat has not vanished, but there are factors easing
December
1938-39
available supplies are being
tion of the
the situation.
1939 -40 -41
future revolves
near
undoubtedly
Opposing Factors in Inflation Outlook
the
those who
cancelled by a rapid fall in
consumer
The
during
incomes
greater
next year.
not
deflation
IBA PAST PRESIDENTS
flation, this is interpreted to mean
that more persons will be receiv¬
Severe
price
81
— especially for consumer
hard goods—and that replacement
will
be
gradual. The increase of
more than 10% in personal taxes
and the expected slow advance in
retail
Field
profit
135 So. La Salle St.
CHICAGO 3
Telephone
RAndolph 6-0820
—
•
,
in both
porate
U
1885
Building
prices will tend to limit ad¬
vances
Sons Company
&
ESTABLISHED
disposable and real
total war or a sudden change in October is 46.8 million, as com¬ income of consumers (unless total
consumer purchasing
habits, there pared with 45.9 million in Octo¬ wages and salaries increase ap¬
will be no drastic fluctuations in ber, 1950. The Defense Manpower preciably), and third-quarter cor¬
or
goods."
:
..
Continuing the discussion, the
article states:
-
"Those who believe that infla¬
tion may present a serious chal¬
lenge
to the economy point to
certain current trends which are
expected to broaden in the next
half year.
Personal income in
September
was
Administration
about
,
at the annual rate
of $253.3
will
has
million
two
employed
in; defense
between August and the
plants
end
this
of
By the end of
year.
next year officials believe that 2.5
million more persons will be re¬
considerations
suggest
be
drawn
from
goods
industries,
ready.
When
consumers'
and there is
evidence that this is happening al¬
to
increase,
cor¬
believed
period in 1950. Many
summer,
allocations
of
consumers'
likely
goods
they
as
do
to
raw
by
are
mid¬
the labor market is
ex¬
H. M. Byllesby
and
Company
(Incorporated)
employment will not rise appre¬
ciably in the months ahead. These
will
be
suggest
rising costs will reduce divi¬
Some an¬
alysts are of the opinion that total
dend income next year.
economists that
producers
responding
statements
that
quired for defense production. To
some extent additional personnel
materials
13% above the total for the
that
persons
be
level personal income
about
stated
more
billion, and for the first
nine months of the year it was at
the rate of $248.8 billion. At this
was
as
in
the
much
to
effective
six
next
greater
some
demand
months
will
it
than
not
is
stocks
bonds
at
present.
"Other factors
dicate
that,
are
taken to in¬
if the economy
to be put under additional
pressure
from
the
consumer
even
were
sector, there is sufficient slack in
productivity to offset greater de¬
mand without
Public Utility
—
Industrial
—
Railroad
Municipal Bonds
resurgent inflation.
It is pointed out that a great deal
plant capacity exists in
many consumer
many raw
Ames, Emerich & Co., Inc.
ESTABLISHED
those
1911
are
apparel,
UNDERWRITERS AND DISTRIBUTORS
many
:
OF INVESTMENT SECURITIES
■
■
;
'
■
in which
;-X
105
"• X-X XXX*-X M H
'
leather,
durables.
.
.
are
-
cases
X'.Xv"'XXX-XX'XXXX XXcX/'fX XX/'KXXV'.'
Telephone Financial 6-4600
New York
—
Philadelphia
—
Teletype CG 273
Pittsburgh
—
Minneapolis
and
It
has
ample, and in
some
embarrassingly large. Thus
imous,
Chicago 3, Illinois
opinion
is
that
*
I!
a
A.C.ALLYN"®COMPANY
unan¬
serious
Incorporated
shortages of consumers' goods and
a
precipitate
price
rise
are
un¬
Investment Securities
likely."
Fublic
Stocks and Bonds
—
Industrial
Utility
Railroad
Underwriters and Distributors
Listed and Unlisted
Chicago 3
also been noted that inventories at
Exchange
South La Salle Street
135 South La Salle Street,
textiles,
widespread, though far from
■
EXCHANGE
un¬
in¬
currently
include
furniture,
all levels
•
Member Midwest Slock
has
consumer
EXCHANGE
STOCK
industries and in
areas
These
STOCK
PHILADELPHIA-BALTIMORE
materials. Furthermore,
the
employment
creased.
MIDWEST
MEMBERS
of unused
Municipal
Municipal Bonds
Affiliated with
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Fidelity Fund, Inc.
—
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r
The Commercial and Financial Chronicle
62
reasons
burdens
of
which I have given, first, that no
from page 9
military
or
could
one
reason
for this is that
with
very
as
guide
a
look
long
they will take
to accomplish.
ahead because
considerable time
:
short-range
to
very
requiring legislation and other ac¬ other in the general field of basic
tion are likely to take place after
production planning.
the
very
short-range
develop¬
In the general field of economic
ments, even if correctly appraised, stabilization we were faced with a
have
come
and gone.
would
of
confluence
a
whether
standing areas in which we now
industrial
—although here again I think we
are
currently doing a good job—
nation,
the
civilian
or
by the
ought to be looking even a little
had to em¬ further ahead and begin to start
bark as a nation at the beginning plans even a little more effec¬
of the defense mobilization upon tively for making necessary ad¬
international,
or
except
production of goods.
Consequently,
we
infla¬ a production policy—not just a
tionary spiral. One can detect—in public
production
policy,
but
the quick oscillations of sentiment rather a
production policy based
with respect to inflation control,
preponderantly; upon private ac¬
in the oscillations swinging all the tion with some
public supplemen¬
way from Mr. Baruch's extreme of tation
or
rather
stimulation
freezing everything to the oppo¬ geared to the concept of a longsite extreme of decontrolling
range production build-up.
exerything—one can detect exces¬
I think that job thus far has
sive responsiveness to very short
been done very well.r. I think it
range and really not very signifi¬ has been a
grand job, compared
forces
a
which
at
month
forecasts, Problems of Economic Stabiliza¬
tion and Production Planning
short-range
policy changes, run into the obvi¬
Let me give two illustrations of
ous difficulty that even under the
this—one in the general field of
utmost celerity the policy changes economic
stabilization,
and
the
such
exactly the tim¬
guess
not the exact momeiit or the exact
For New
The first
the
and, second, that the great
•problem then confronting us was
//
compound viable policies for the
kind of tasks lying before us.
for
ing;
"New Economics
V*
short
fallen
have
Continued
cant
produce
an
changes from day to day
or
from month to month.
the
On
other
after
mist
hand, the
the
econo¬
outbreak
Korean
right after Korea last might have looked at the matter
The second and more important year
where the economist was in another way — and some did:
reason is that the most basic eco¬
tempted to do one of two things: Nobody could foretell exactly
situation
1951
Thursday, December 13,
...
(2322)
to
justments is in the field of man¬
power.
.
I think that,
face
to
problems.
manpower
have
now
in the period ahead,
going
are
we
a
increasing
While we
good manpower
very
this is an area which Iwould identify now, as I called
attention to the area of certain
program,
material shortages a few years ago,
where
ought to take an even
we
that we did in the longer range point of view than
past along similar lines.
The we are now taking. I believe we
simplest measurement of this fact should now speed up our efforts
is that we now stand, despite the voluntarily and carefully toward
job
any
greatly increased defense take as
against 1948, with a much larger
allocation"
current
of
achieving adjustments which can¬
not be made quickly. The task of
resources
will
adjustments
these
making"
hand, he was tempted when public psychology and eco¬ available for the industrial build¬ come upon us too late if we wait
appraise whether; over nomic forces were going to con¬ up, and with a larger line of until, six months or another year
not problems which can be solved the next few months and at just spire to produce an inflationary civilian
supplies. We have grown before accelerating v the pace" of
very quickly. They do not involve what period within the next few upsurge. But it did stand to rea¬
stronger in every way, year by our efforts to utilize' manpower
programs which can be executed months we would have a conflu¬ son, on careful analysis, that if the
more
nomic
problems
with
which we
have to deal in this emergency are
On the
to
one
try to
nation was entering a period of
They involve pro¬ ence of those factors which would
the most part which make for an inflationary spiral. years of full employment, a period
time to accomplish; Many economists tried to do that. of years of an expanding armed
quickly.
very
grams for
take some
which must be initiated with full
Some
were
successful
and
some
force
industrial
and
But the attempt to gear base,
mobilization
there
will be within that
recognition that we must have the national policy, if such an attempt period a basic inflationary pres¬
patience to wait until they can had been made, to that kind of sure. It did stand to reason that,
were
be
not.
accomplished; and; above all, short-range policy would inevit¬
which must
be
started early and
at
indeterminate
some
but
date
efficiently.
year.
But
think, because we
Now, moving over to the second
have done such a good job, that area I mentioned—emphasis upon
we have done quite as .good a job; purposefulness. ^Somebody
has
as we might have done if we had
coined
the
word
"disinflation,"
taken even a somewhat longer* and I am going to coin another.;
range outlook within the range of The old economics has made a
the do-able, and had started even "decontribution" to the problems
a
bit earlier to start those jobs of national economic policy in its
nonetheless at some time, such
It would forces would
conspire to move the which
price trend and other inflationary to do.
ably have fallen short.
trends
sharply upward; and,
sequently,
that
set *of
a
should be devised and rather
BLUNT ELLIS & SIMMONS
sistently
applied
situation
CHICAGO
con¬
when it occurred.
Such
to
contain
that
one
Midwest
Stock
Stock
Correspondent of
Exchange
Clarke,
Exchange
208
Dodge
New
&
to
what
expansion
programs, we
alleviated
earlier
have
which
the shortages
of
some
the
op¬
we
concentrated
has
upon
might do after the fact
remedy things which happen to
It has not stressed
willy-nilly.
us
enough the recognition that even
under a free system, and particu¬
commodities.
a
Co.
defense
the
size
the
of
are
still
the
and
program
intended
may
Street
of
Chicago 4, 111.
the
economy,
was
horse
a
entirely different color from
an
inflationary
World
War
voting
about
of
pressures
when
II
we
half
of
de¬
were
total
our
output to national defense proper.
difference
This
called
for
a
United States, is consider¬
the
in
ably subject to our conscious pur¬
industrial
Purposeness—An Essential
build-up against the present and
potential productive capacity of
York
the whole
So. La Salle
ex¬
certain
would
upon
posite of purposefulness. In other
words, to a great extent, the old
economics
of
York
outstanding
emphasis
excessive
pressing heavily upon us.
1
feel strongly about this, be¬ larly under a free system with the
some did
lead to the conclusion, cause I
got involved
in some great economic resources with
that the inflationary pressure in battles a few years ago with re¬ which we are endowed, the future
the long run, measuring the size spect to certain shortages of vital material destiny of man, at least
Municipal Securities
Members
New
time
long
a
ample of this is the fact that, if
we had started a little earlier with
longer-range appraisal,
in addition, would have led to the
conclusion, and on the part of
Underwriters and Distributors of Corporate
and
take
would
think
I
con¬
policies
-
don't
I
and efforts, instead of our
being merely buffered by fate.
poses
Planning Element
should like to turn your
Now I
I will now give a specific illus¬
of tration of this. I don't have to give
the essential elements of planning illustrations from the past, because
attention
as
to
the
second
phase
it bears upon economic
policy. they
This is in the field of purposefulness
—
are
obvious. But even in the
present, as we now appraise how
purposefulness being the
I mentioned, a long-
second item.
outlook being the first.
our
economy
can
in future years
the defense burden, and as
realize in common that bas¬
carry
milder,
range
set
ically it must be carried mostly
outlook, giv¬ with production strength, none¬
ing a current example so as not to theless some economists tend to
be
accused
of
using
hindsight fall into the pattern of projecting
I think one of the out¬ our productive potential on the
solely.
though nonetheless firm,
anti-inflationary .*• policies,
particularly in view of the fact
(Eljamtrr
(Emttpatty
of
that
would
we
would tolerate
to
have
policies which
upon
over
depend
free people
long period
a
a
I do want to say one
we
other thing
about the long-range
of time and which would be con¬
sistent with
great emphasis
expanding production.
Municipal, County and
Now
School Bonds
do
I
intend
to
short
necessarily here
which
argue
basic
two
not
upon
of
those
approaches—the very
or
the longer range—
run
BARCLAY INVESTMENT CO.
would have turned out to be more
39 South La Salle Street
Phone Randolph 6-3900
that
phasize
Teletype CG 540
placing
range
A
intend
I
correct.
CHICAGO 3
the
merely to
Trading Markets in
em¬
second—that
INDUSTRIAL,
is,
emphasis upon the long
approach — would in my
judgment
MUNICIPAL
closer to the type
come
UTILITY &
PUBLIC
ESTATE
REAL
SECURITIES
BONDS
of
policies needed for these times
than excessively short range at¬
tempts
and
United States Government
adjust
to
downward
policy upward
few weeks
few months in view of
superficial changes in the eco¬
or
39
South La
Salle Street, Chicago 3
every
every
Teletype CG 1384
Telephone ANtiover 3-7055
nomic climate.
."-v
..
State and
.
\
V,".4
i
•
••
-V
/,
•••
'•: :•.
•
Production
is in
other example I
the
tion
the northern trust company
TELETYPE-CG
368
I think is
strain
to
This
the long run
fact
there is
is
adopt
are
not
that
no source
all
in
YORK
13
HANOVER
2-15 72
•
REPRESENTATIVE
MUNICIPAL BOND DEPARTMENT
-
BROAD STREET
BELL SYSTEM
TELETYPE-NY
1-85 3
without
what
its product;
economic way of
increasing
that there
supporting
is
no
any
of
the
TELETYPE
material
CG
1751
UNLISTED TRADING DEPARTMENT
TELETYPE
of
it
produces;
that
there is no great way of increas¬
ing a nation's economic strength
except
DISTRIBUTION
UNDERWRITING
the economic strength of a nation
NEW
Chicago
oe
The most vital
have
Company
First Securities
even
fundamental fact in
economics.
SYSTEM
give
inflationary control policies—al¬
though these are important—but
brjsic
production policies; - basic
production policies resting upon
the most
Chicago
BELL
will
field of general produc¬
policy, which
more
significant.
policies which we
for this enduring
•
I
More
Control
•.
Municipal Bonds
2-7070
'
s
Significant Than Inflation
•
The
TRANKLIN
*
Problems
Members
Direct
134
Wire
to
SOUTH
Midwest
CG 1399
Stock
Exchange
Scherck, Richter Company, St. Louis, Mo.
LA
SALLE
STREET,
ANdover
Branch
CHICAGO
4,
ILL.
2-1520
Office—Champaign,
Illinois
•
Volume 174
Nuirber 5072
The Commercial and Financial Chronicle
...
(-2323)
basis of the "normal"
trends of the
past.
Instead, I believe that we
should set out with the
purpose of
analyzing carefully what, with
technology and our resources,
really
igreat
non-secret
United
■
Let
I
our
of
weapon
Statesits
:
the
fort.
*
'
.!'
*
'
training
economic
of
and
Double
Rate
much
so
social
and
interest of the nation
■
of Our'
achieved,
are
we
on
the
to
political
have
■mever
be
.may
relative
upon
vast
our
all
pull
of
use
late
and
total
1936
our
-
37
1935
36
-
1934
provide
the
ab¬
we
stimu¬
war—to
hold
together the moral
and
neglect 'energies
IBA PAST PRESIDENTS
what
upon
we
sence of total war, and,I hope
how those
economies
can
technology.
This would
a,
galvanizing force—in
the
*
fully
potential,
really do if
together with the full
very
of
people
productive
be
can
we
ican
econ¬
But I also believe that
traditional
Can
they
83
should strive even harder
to train the attention of the
Amer¬
misunderstood.
traditional
I believe they
important.
productive
be
these
wherever
achieved.
the
geflius—if we,really make the ef¬
•
not
me
for
am
omies
we
that
could
we
by the traditional economies.
save
do to release in full the
can
billion dollars that
every
support
of all our
people. I think that the full
ly less significant these "sayings" ^maintenance of this
support is the
J£said?before. I think that we have are than genuine productive
gains, j greatest single problem we are
'undercapitalized and underdevel¬ is undesirable. I think that in
a
going to face over the years in an
oped our greatest resource, of
all: sense America has been an incom¬
emergency of this peculiar and
:our
ability to expand production. parably great productive nation
•unique kind.
..."
<1 believe that
/
; v :/
'
Production Growth
As many, of
v
know
-you
I
have
"forced
pressures"
of
next
two
growth
an
the
'.
\
of
rate
as
as
even
Some
the
the
much
pencil
decades
enterprise
adjustment
of
But it
the
I
This
think
that
industrial
this.
of certain stra¬
point
we could lift
of
productive
about $10
billion
a
billion
our
a
year
year above the
great
by
that
of
a
they
our
proper
word.
But
it
-
would add
to
more
States
true
of the world.
this
eco-
has
become
is what
I
mean
it
is
much
sense
attention
which
upon
is
riveted.
lieve, roughly, that
I
could
we
so
ourely
in
our
the
in¬
public
Much
Now
to
the
sentiment—and
side
I
the
trag¬
is
inferior
so
to
Emphasis
again,
I
belts,
that
without
don't
we
things.
We
that
mean
mean
have
to
must.
to
The
With Singer, Deane
Financial Chronicle)
(Special to Tin-: Financial Chronicle)
COLUMBUS, Ohio—Branson
Yochum
Kraus,
the
is
16
past
with
East
he
Ball,
Broad
Street.
with
was
R.
Burge
CLEVELAND, Ohio
R.
&
In
John
that approach
the
as
means
approach
the
upon
we
Andrew
associated
Singer, Deane & Scribner, of
Pittsburgh. He was formerly with
B.
Joyce & Co.
Ginther & Co. and Otis & Co.
John
J. O'Brien
3rd
R. Edwin
Russell M. Chandler
•
Evans
Garn
Joseph M. Fitzgerald
Spalding
Alvin H. Hayward
JOHN J. O'BRIEN & CO.
Members
of
New
purposeful
crease our real
productive strength
by
that the economist must
recognize
the
Stock
Exchange
I am
getting a little bit tired of
hearing some people talk about
nothing but how much our defense
and
Exchanges
should all do together.
billion
York
Other Principal
do and must do and
can
—
become
I
of
affirmative
emphasis
things
has
do
But
struggle,
any such negative approach, should
take secondary place to the
posi¬
and
Field
with
overemphasis
any
winning this kind
tive
George W. Bovenizer
Economy
on
don't
that
don't have to make
sacrifices,
that we don't have to
tighten our
of
believe
Joins Ball, Burge
(Special
we
purpose-
side
side,
essential
as
respects
Orrin G. Wood
own.
Too
of
psychological
the
Hall
can serve;
of
nation
B.
great dangers
enough about
not
about
sential
and
moment from the
a
economic
be¬
a
upon
by any test than fulness.
by those economies in the
more
Turning for
Edward
dangers; too much
Russia, and not
fear
do
by
nomie strength
traditional
they must
ever
far ahead of the rest
I think that this em¬
so
"normal"
our
what
great as ours
seemed to doubt its
capacity
against a power which in all es¬
defi¬
is
and
enough
edy if
should be
we
any
face,
about
phasis is even more important in
rate, it is perfectly obvious
that these times than in the
past, and
.
about
the power which
they have to sur¬
mount these
with
agree
productive nation
has moved
$15
or
of
United
annual
growth
up
production, by moving ahead on a
big scale to do things, and not by
manicuring fingernails, that the
of
much
do without, and not
enough about
what they can
do; too much about
what they must
sacrifice, and not
suffered
the readers
history will
I don't think
nition
appropriate
public
policies.
be done.
the
economic
view, if
rate
with
too
I don't want to be misunder¬
stood,
balance, that the,
people have been told
on
husbanding what they enough about how
they
prudently, instead of let¬ too much about the
ting go a bit more to build
better plant and technology.
arise
can
From
by
much.
nations
have
think,
{American
than
too
.European
production—by pri- wasteful, under
vate
,
I
by
had too
careful'identifica-
tion and treatment
tegic areas of
of
over
least
harder work,
even
more
the
of
rather
way,
sharpening the
great
would
projection
"normal" rate.
big
a
re¬
productive
perhaps twice
would require
and
,
at
years
rate
mere
so-called
.
-
to
annual
-from
three
or
our
in
war
a
economy which we should not
sort to
now) we could over
expand
free
(entirely under our by being "wasteful" in dreaming
and without resort to big dreams and doing big things
^free system
;the
of the real economics of how
vast?
about
$10
a
year
for
importance of this—I believe
UNDERWRITING
DISTRIBUTING
•
costs, and
TRADING
•
to
do
done
whatever
as
people
our
the
retail
own
and
of
blocks
cheaply
say
feasible.
as
much
so
of
would
program
wholesale
offer unusual facilities for
placement
think that
careful about
Securities
RANDOLPH 6-8161
<1
&
e II
have
Omaha
if
omy
I
Chicago
New York
think that
wisely, and I
got
to
Members
pace
Neu)
DEarborn 2-0500
quences
would
Denver
Lincoln
about
what
the
whole
to
be
at
more
bust
our
.
;
Exchange
Midwest Stock Exchange
New
York
Curb
Exchange
(Associate)
econ¬
if
did
we
the
conse¬
free
world
do it
not
any
all, and maybe in
some
do
respects
York Stock
do any more at all, and
we
little
so
Chicago 4, Illinois
I
how it is going to
Exchange & Midwest Stock Exchange
Associate Member New York Curb
Exchange
Street
4-6300
got to be
carefully in doing it.
am
getting sick of hearing
people say so much about
some
<».
Members New York Stock
2(1*1 8. La Salle
WORTH
what
the extension of aid
have got to do it
that we have
But
<> II
YORK
WALL STREET
This
ourselves
11
14
cost.
we
think
i' ii
ST.
am
about
to other free nations.
we
C
NEW
SALLE
the program costs and
so
little
about how much
not doing
the
I
we
LA
getting
hearing some
SECURITIES
Through
S.
have got to try
job needs to be
we
is true
economy. But I
a
little sick about
LISTED & UNLISTED
distribution
CHICAGO
231
program costs. Now, we have got
to be concerned about how
much
it
we
Bacon
William
Kerr
D.
Jay
N.
Ernest F.
Whipple
James W. Marshall
Hartshornc
Robert B. Krell
have
little
Partners
William T.
tired
than
more
Francis R.
Schanck, Jr.
Harolcl H. Sherburne
done thus far.
»1Q-JS
■
And
TT
TM
of
I
am
hearing
these
fulness in
getting
those of
ideas
press
KIDDER, PEABODY & CO.
among
in
The
FOUNDED 1865
•
Members
1
New
York, Midwest, and
and
New
York
Curb
Boston
Stock
free
a
gerous
Exchanges
Exchange
economics
and
probably
elsewhere
its
Underwriters and Distributors
tional
Municipal Bonds.
SOUTH CLARK
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i
BOSTON
PROVIDENCE
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SPRINGFIELD fLOWELL
ALTOONA
upon
been
sufficiently
V
PHILADELPHIA
BALTIMORE
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NEW
BEDFORD
WILKES-BARRE
READING
A.
G.
to
in
try
na¬
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INCORPORATED
Underwriters and Distributors
of Investment Securities
its
to
Established 1393
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NEW YORK
SAN FRANCISCO
proven
genius in doing specific
specialized
and
compart¬
mentalized programs better than
this
BUILDING
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the
us
seriously in
impact
has
which
down,
woefully than
more
anybody else in the
STREET, CHICAGO 3, ILL.
"
let
and
What
33
in
weld together into some kind of
unified and consistent
pattern our
Industrial, Utility, Railroad Bonds and Stocks
NATIONAL
and
policy,
reluctance
of
FIRST
more
long-range
dan¬
quarters.
has
.if*1.
and
economy
aspect
old
ex¬
purpose-
people called
some
third
who
us
about
free
a
a
I
do
I
mean
world.
by
instance, by the old
do
not
Adam
mean
Smith
the
and
this?
In
Affiliated with
economics
economics
of
the other
G.
great
masters who did look at the
A.
Becker &
Co.
econ¬
A
omy as a whole.
I mean rather
the
economics which
developed
after
that
when, in response to
the highly specialized problems of
industry, economists became high¬
ly trained specialists in various
;
Continued
on
page
84
PARTNERSHIP
Members of
NEW
YORK
MIDWEST
NEW
YORK
STOCK
STOCK
CURB
EXCHANGE
EXCHANGE
EXCHANGE
I •»*'
Pi
program which
would be more
suitable to an all-out war, it is
"New Economics
and
of
were
utility challenge to every segment of the
great
such, but in that process came
regard those who wanted to
take a general view of the eco¬
nomic problems of the nation as
a whole and their relationship to
one another as being almost apos¬
as
to
tates from the field of economics.
■
-
the
Yet the great,
"master plan" and gradually
in 1940. We take increasing responsibility for
lot of good programs, but the affairs of localities and of pri¬
we did not sufficiently fit them vate
enterprise. I think just the
together into a good program.
reverse.V
;Whatever may be the case in a
I think there is nothing which
emergency came to us
a
non-defense
tainly
it
economy,
in
true
| gency that
is
defense
a
there
cer¬
emer-
is
an urgent
problem of coordination and cor¬
The
kind
of
planning which
affirma¬
looks ahead, which has an
tive purpose,
and which attempts
as
to who does
discriminate
to
what part of the job and how
the
jobs fit together, has enormous
to the common sense relevance to another great prob¬
of the average businessman than lem we face. It has enormous rele¬
appeals
:
•:
'
..
:
of
basic
I
programs.
X
think
that
this
kind
rapidly and
even
of
work
even more
more
the
scope
more
success¬
fully than it has thus far done.
think
that
this
is
I
tremendous
a
agriculture—and by
our
labor
sys¬
tem and by our local representa¬
tives of the people.
LOUISVILLE, Ky.—Wilhelmina
is
now
affiliated
with
Miller
Moore & Co., Inc.,
Perhaps the problem of price Marion E. Taylor Building, mem¬
control is a good example of this. bers of the Midwest Stock Ex¬
think
I
that
if anyone
now
dis¬
Berwyn
like to tell you
week I'd
This
about some of the
T.
change.
broad classes of
Purchasing and Distributing
State, Municipal, Corporation
Company
Founded 1898
Securities
BOSTON
NEW YORK
CHICAGO
^
PORTLAND
National
BANGOR
¥
MEMBERS—BOSTON STOCK EXCHANGE
NEW
YORK
CURB
EXCHANGE
Distributor
NEW ENGLAND FUND
Organized 1931
(ASSOCIATE)
MIDWEST STOCK EXCHANGE
The speculator
who thinks he is
buying an investment.
There is a
rather abundant group
of security
buyers who want to eat their cake
and have it too. Underlying the
of everyone of these
desire to
philosophy
BALANCED
FUND
& HOWARD
STOCK FUND
salesmen
New
of
people,
excellent inter¬
often very pleasant
who give
them
an
view but no business. It can save
them time and work that will not
them
pay
a
just reward, if they
avoid them.
speculator
The
are
makes
who
a
of special situations. There
limited number of security
study
a
enjoy safety, income, and large
capital gains with "peace of mind"
thrown in, and all for no extra
charge to anyone. Of course, this
cannot be accomplished, and those
ground and temperament to suc¬
cessfully dig into special situations.
They are interested in facts, in
comparative
balance sheets,' in
stocks with arrearages, in reor¬
know this to be ganizations and Vail the other
later you must factors that might briri .about a
Strike an understanding with such higher market revaluation at a
date.
They 'are
seldom
clients, and as was suggested last later
week, the sooner the better. After swayed by prejudices and they
all, most of these people are in¬ are just as interested in over-thetelligent—they know the score— counter securities as those which
they just don't want to admit it. are listed. Their knowledge of se¬
One of the best ways to clarify curities ? is keen; If [ you can de¬
the air is to suggest an analysis of velop some of these accounts, you
it
expect
who
Sooner
true.
or
with
a
of
minimum
Over emphasis
on
discussion.
percentages of
types of securities then becomes
the main issue rather than spe¬
securities.
cific
made
some
After
you
have
changes on a basis of
sound foundation,
a
you
can
are
indeed'fortunate. Know your
business
values
able
and
to
and
over
you
will be
profitable
much
enjoy
business
attractive
present
them
to
the longer term.;
Incidentally, you will sometimes
find that people who lean strongly
toward a search for capital gains
have incorrectly evaluated their
tax situation. This is an
important
point to
establish if you are
handling accounts which fall into
this
category. There are some
people, however, who feel that in¬
come
is
secondary
because
other personal considerations.
more
you
know
about
any
of
The
ac¬
count, whether or not it is specula¬
tive or in the investment class*
the better you and your
client can
understand each other.
,-jV
securities
buyer who wishes to try and make
some money out of capital gains.
The
unsophisticated
Those who are novices in invest¬
ment sometimes
s e c u r
it i
e s
wish to purchase
that
are
heavily
weighted with risk. Certainly, at
no time
should they be led into
such
a
situation without their
try to jump the traces later
-knowledge. A definite responsi¬
most people need is a
bility is incurred under these cir¬
plan and a program for invest¬
cumstances, and no one should
ment Once they become inter¬
delude themselves into thinking
ested
in
the
idea
themselves,
that just because things look right
their cooperation is assured.
today that they will stay that way.
The speculator who wants a
A few profits are very stimulating
quick turn. Often this fellow is a to this
type of account. It is com¬
"know
it
all."
But he
doesn't
paratively easy to encourage con¬
have any hesitancy in attempting
siderable trading, and although it
to pick up bits of information, may be temporarily profitable, the
tomer
What
stray gossip, or anything that he
mistakenly believes can be turned
a
profit for himself. You may
him in your
office this week
and somewhere else the next. Oc¬
EATON
effort.
buyers who have both the back¬
see
EATON & HOWARD
the
worth
should certainly become aware
so-called investors is the
into
.
spending too much time
on such accounts is not
but
him
these
on.
INCORPORATED
casionally you can do a trade with
recognize them quite readily I am
sure, because after all, speculators
are
about the same everywhere.
always come back to your original
understanding should your cus¬
HARTFORD
f
,
and effort
gradually - shifting
assets to a
point where the entire account is
and Public Service
"
'
_
'
speculators that you have met in
the daily course of your contacts
with the investing public. You will
on
COFFIN & BURR
■
.
.
.
Part 2
>
needs to move forward
/
,,,
Know Your Customers
proposition that, whatever the vance to the problem of being
of governmental activities, able, through some composite pic-'
large or small, they should be ef¬ ture, to formulate and conse¬
c think
that this is now being
ficient and consistent.
We could
quently to pass on to the Ameri¬ the entire account. Rate each se¬
f, accomplished better than in pre¬
never afford the real waste of one
can public as a whole a full un¬
vious periods.
I think we have
curity as to the degree of risk
step forward, one step sideways,
learned from our experience in
derstanding of what the job is all and the percentages invested in
and one step backwards all at the
about. Such understanding is nec¬
i: World War II that it was only
relation to the whole. Show the
same
time.
I think that this is
essary not only for their support;
when sizable progress was made
risk in this way and direct atten¬
doubly important in an emergency it is necessary also for their par¬
In this direction that we really
tion to the investments that are
of the current character.
ticipation. It is necessary, particu¬
got rolling on the stupendous job
sound, as well as those which are
More than this, I think that the larly, for the understanding and
we had
to do.
I think that we
too speculative.
kind of planning which I have de¬ for the cooperation of those great
are
doing a better job now.
At
People are prone to consider a
fined will not give us an expan¬ labor groups and business groups
i the same time, I
think there is
sion of the total role of govern¬ and farm groups whose coopera¬ security safer than it is after they
challenging need for even greater
have held it for a while. It be¬
•coordination and correlation be¬ ment or an expansion of govern¬ tion must be won and held, not
comes part of them. In this way
mental programs. On the contrary, by fiat, not by the handing down
tween
defense
activities
proper
they justify an unsound situation
I favor a gradual sifting out proc¬ of
and civilian
programs from above, but by
activities; between
and secretly hope for the best.
civilian cutbacks and the defense ess which recognizes that, to the participation in the doing as well
When you sit down with this type
Tjuild-up; between our domestic extent that the government does as in the formulation of programs.
of person and you show him the
economic program and our com¬ a few necessary things well, there
the true status of his account, the
mitments abroad, both economic may be a great many more things
With Berwyn T. Moore
weak spots stand out so clearly
and military—in so far as there left to be done by our business
that corrections can be achieved
(Special to The Financial Chronicle)
£s a distinction between the two. system — including industry and
relation
.■
By JOHN DUTTON
central problem
planning in a private enterprise
nation.
democracy is to separate the
things which government must do
There Should Be Coordinated
from the things which others can
Planning
do better. We must strive always
Now let me say one word of
for that division between central
warning to those who think er¬
authority and localism and initia¬
roneously that planning as I have tive which will
give us maximum
up a
bad
'
============E=====E
of
1930s, for example, we defined it means an ever-en¬
strength for the long pull. We
3had a plethora of specialized pro¬ croaching intervention of govern¬
must face up to the challenge of
grams—and some of them did a ment into the affairs of the indi¬
trying to do our public programs
Xot of good—but we nonetheless vidual or of business.
on
a
strategic basis, which does
Buffered gravely from the inability
I have noticed particularly that, not cover
everything but which
to weld
these different under¬ whenever I talk about this prob¬
singles out certain things which
takings together into a consistent lem of government doing in a co¬
by common consent cannot be done
and unified pattern.
This, I ordinated and interrelated fashion
elsewhere, and which leaves for
think, is the primary explanation those things which perforce it is
elsewhere the things that can be
of why, with all the good things
doing separately anyway and must done better elsewhere.
This, to
that were accomplished, we did do
in this emergency, there are my mind is a great problem of
«ot succeed as a nation in achiev¬ those who think that this means
planning in this kind of emer¬
ing relative stability and relative that the government should set
gency.
fiill employment until the defense
In
Securities Salesman's Corner
'
-
superficially seem
easier to try to control more things
than to try to figure out just what
things need to be controlled.
because it may
Foi New Problems"
fen
Thursday, December 13, 1951
.
plays any tendency in the current
situation toward a price control
Continued from page 83
fields
Financial Chronicle .\
The Commercial and
[(2324)
end
result
is usually very
unsat¬
isfactory. Common sense, and a
sincere
understanding of every
account
is the
answer
to good
client
relations.
With
the
unso¬
phisticated speculator it is a must.
LYONS & SHAFTO
Incorporated
PROSPECTUSES OF THESE TWO INVESTMENT FUNDS MAY
BE
OBTAINED
FROM
EATON
YOUR
&
INVESTMENT
DEALER
01i
State and
HOWARD
Municipal Bonds
INCORPORATED
BOSTON
24 Federal Street
BOSTON
333
Montgomery Street
BOSTON
HARTFORD
NEW YORK
SAN FRANCISCO
l,
■ w.
_
'
f*
Volume 174
Number 5072
Continued from
first
.
.
.
The Commercial and Financial Chronicle
ities of that day which passed
through government offices
and government officials, but
page
We See
As
It
no
it
in
contrary
to
sweeping Franklin D. fundamentally
Roosevelt and the Democratic solemn promises of his 1932
party
platform — at
such
party into power.
There
in
event,
definite limitations upon the
usefulness of any precedents
which the Harding, Coolidge,
Hoover regimes seem to af¬
ford.
It was Coolidge,
not
are,
any
moments
a
honor
of
set in the
new
low standard
and decency were
highest circles.
And what
of
(2325)
was
the reaction
one
was
more
than
a
for
corresponding fig1951, or even for the
pre-Korea
years, say,
Elaborate .statistical
tions— that
day
is,
elaboration
made their
the
the
1931-32
:
1947-49.
compila¬
started
off
us
on
another
era
this
jfe
;;
i
Hliiid
i
<
w;
..
•
•
;
:
.
Beginning with 1929, how¬
ever,
30
modern
had not
appearance when
great rank and file? Harding was
having his
Did they demand a return to
troubles, but here again no
of moral
-
—
moral standards formerly held
was the Repub¬
informed person can well
lican standard bearer in 1924. sacred by all right thinking doubt what the order of
mag¬
Need the answer be
The delinquencies of the lat¬ men?
nitudes was.
ter part of the 'Twenties were given?
The regime which
possible and encouraged
by lax tax laws, want of ef¬
fort by the Coolidge, and later
1929
,
Harding, who
made
1930 -31
frac¬
tion of the
ure
IBA PAST PRESIDENTS
could well doubt that
no
85
Allan M.
Pope
'"yv:
Henry T. Ferrlss
Trowbridge Callaway
situation changed.
degradation, and the The "take" of
government in "
leader of it all, were soon
1929 was about $11.3 billion;
from 1929 to 1948 or 1949 try, and when government is
the Hoover Administration, to popular heroes, and are pop¬
it was $69.8 billion in 1950.
come to grips with the situa¬ ular heroes to this day.
All It will be
was, of course, considerably permitted,
even encouraged,
substantially greater
smaller—the national product to spread itself out in this
tion, and by an over-riding manner of people rushed to this
year and next. In 1949,
mania for easy money and in¬ Washington
for
these
two
to "get theirs"
years
being way throughout the commun¬
before
Korea
and
rearma¬
flation for which the Wash¬ while the "getting was good."
$223.5 and $216.7 billion, re¬ ity, then the people owe it to ;
ment, it was $57.0 billion.
spectively. We do not wish to themselves to make certain
ington regime must be held in And it continued to be so at
Apparently from this time
least through 1948, when the
labor the point. It is evident that this giant octopus whose
very considerable degree re¬
forward and for an indefinite
sponsible—but the transgres¬ successor to Roosevelt and the
enough that there is a great tentacles reach everywhere is
period, we must count upon
deal more at stake (even pro¬ really a friend, not a foe.
sions did not touch the gov¬ great exponent of government
government levies of one sort
ernment
itself in any such by doubtful cronies was over¬
Of course, it is our settled :
or
another of six or eight portionately) when it comes
to corruption in government conviction that we must kill
direct way as is now the case. whelmingly returned to office
times those of 1929—and this
than ever before in our his¬ off the octopus, but if we are
by the great rank and file. does
not, of course, provide
Basically Alike
There are some- indications
to
tolerate its presence we r
for outlays which, according tory.
But in a more fundamental that the public is at length
must at least see to its be- '
to
schedule, must be made
Kill the Octopus
sense the situation now is one
havior
or die.
awakening at least to some of from
large deficits in the
All this, obviously, has an
with that of the 'Twenties as the crasser elements of the
well as that of other times. shame of the past two decades. years immediately ahead.
George T. Purves
important lesson when the
Let no one say that govern¬
It is one with them in that We can only hope that this
George T. Purves, partner in
question of managed economy
mental operations of this mag¬
is brought to the fore. Cor¬ Hemphill, Noyes, Graham, Parsons
official corruption, as were proves to be the case—but we
nitude are to be expected as
&
Co., New York City, passed
as a people can only
ruption and incompetence are away
private malpractices in the
hang our a result of
suddenly at the age of 55.
growth of the bad
■Twenties, has grown out of a heads in shame for our own
enough when industry,
economy or of higher prices. finance and trade are left to
set of standards
prevailing delinquencies which made
Eugene T. Roe
The fact is what is known
work out their own salvation
among the people of the coun¬ those at Washington not only
Eugene Thomas Roe, partner in
these days as gross national
with a minimum of interfer¬
Emanuel, Deetjen & Co., and a
try. The day that Mr. Roose¬ possible, but almost easy and
product (that is, the total out¬ ence and control
velt "repudiatedI the solemn apparently safe.
by govern¬ member of the New York Stock
put of the nation taken at ment.
When, more and more, Exchange, passed away at the
obligations as regards our cur¬
market
age of 48.
>
prices) rose from
More Damaging Now
government assumes responsi¬
rency
and ordered violated
$103.8 billion in 1929 to $282.6
Let us not forget, either,
bility to guide, not to say
(with later sanction by the
With Protected Investors
billion in 1950. The economy
direct, the economic affairs of
courts) solemn stipulations of that c o r r u p t i o n and even
(Special to Tkf Financial Chronicle)
of the country as measured in
contracts
a nation and to take a
SAN FRANCISCO, Calif.—Ed¬
long outstanding; carelessness and incompetence dollar
larger
output is, then, less
ward J. Fitzharris and Lloyd R»
the moment the then new in government are today in¬
than three times as large as and larger part in the actual Means are now
with Protected In¬
President began to subsidize finitely graver matters than
it was in 1929. The; growth process of operation of indus¬ vestors of America, Russ Bldg.
the farmers in sums thereto¬ in past decades—graver, that
t
—
hardly imagined; the is, as to the amount of damage
he proceeded with a they may do. Even rough esti¬
half hundred programs and mates are lacking of the pro¬
policies all diametrically and portion of the economic activ¬
fore
instant
FOUNDED
1925
WTe
Bond Fund' v
.-j i j J
j
aii
I-''
/.OF BOSTON
»
i
^Massachusetts Investors Trust
.
Massachusetts
Investors Second Fund
A Diversified Investment Company
Announces
a
new
SYSTEMATIC INVESTMENT
PROGRAM
A prospectus
investment
of these separate
be obtainedfrom authorized dealers or
relating to the iharei of
funds may
VANCE, SANDERS
any
CHICAGO
XIO
South LaSalle Street
Prospectus
may
be obtained
investment dealer
BOSTON
6l bicaoway
Purchasing its Shares
& COMPANY
ill DEVONSHIRE STREET
SEW
for
LOS ANGELES
iio Weit Seventh Street
200
or
from
The Parker
your
local
Corporation,
Berkeley Street, Boston 16, Mass.
The Commercial and Financial Chronicle
86
year
Colorado Fuel & Iron
used to redeem $14,437,500 cur¬
sinking fund 4*4% bonds and
$10,000,000 from banks rently outstanding first mortgage
be
to- borrow
on
a
collateral
and
five-year loan.
sinking fund
trust
Dec.
tures, due
and
accrued
ing
was
The
oversubscribed
The
plant
corporation
the
sell
proposes
privately $30,000,000
or before Jan. 1 in
thereafter.
proceeds from the financ¬
$500,000
each
also
first
mortgage and collateral
Net
will
BAKER, WATTS & CO.
ESTABLISHED
Co., Inc. and
Stuart &
on
Dec. 6 offered $1,950,-
York
Stock
Members New
Exchange
trust
of
York Curb
Issued
Bank Bonds
(Special to The Financial Chronicle)
.
Building,
Street.
secured by
are
standard
railroad
gauge
epuipment estimated
Trading Markets in
cost $2,-
to
follows: 7- 1200 H. P.
diesel-electric switching locomo¬
474,276,
Local Securities
;;
the
new
Slay ton Co. Adds
(Special to The Financial Chronicle)
■
The certificates
County and Municipal Bonds
With Woolfolk & Shober
the
under
offered subject to approval of the
Interstate Commerce Commission.
Listed and Unlisted Stocks and Bonds
Active
as
Mead, Miller & Co.
tives; 1- 1000 H. P. diesel-electric
CALVERT &
switching
REDWOOD STREETS
BALTIMORE 3,
locomotives; 91000
diesel-electric switching lo¬
H. P.
MD.
Other
York—CAnal
Bell
Baltimore—Mulberry 2600
6-7162
System Teletype—BA
&
members
include:
group
New
Members
New
&
Co.;
Curb
Exchange
Stock
(Associate)
Exchange
Stock
Exchange
offering
Pressprich
W.
Active Markets in Local Issues
Co.; Freeman & Co.; McMaster
Hutchinson
395
the
of
R.
York
New
York
Philadelphia-Baltimore
comotives; and 8-800 H. P. dieselelectric
switching locomotives.
Salisbury, Md.
Representatives: Clarksburg, W. Va.;
Telephones:
Ray Morris
NEW ORLEANS, La.—John B.
QUINCY, 111.—Louis K. Gantz v
Philadelphia Shober, Jr., has joined the staff of has become associated with Slay-. <
Woolfolk & Shober, 839 Gravier ton & Co., Illinois National Bank
certificates are being
2.15% to 3.20%.
Exchange
Plan,
Government and Federal Land
Hayes
equipment
maturing semi-an¬
1952,
Exchange
Stock
R.
York,
ment trust certificates,
1900
Philadelphia-Baltimore
Henry
Chicago &
St. Louis RR. 3Vs% serial equipNew
of
nually July 1,1952 to Jan. 1,1967
inclusive, at prices to yield from
Maryland
Pliny Jewell
Equip. Tr. Gtfs.
asociates
000
Associate
1925 -26
Halsey, Stuart Group
Halsey,
New
1926 -27
28
on
ing, estimated at $49,025,000,
trust 20-
Members
-
year
Offers
Members
1927
mill, at an estimated cost of $27,share thereafter.
'
fund has been pro¬ 720,000.
Net
sales of
the > corporation
vided for the debentures under
which the corporation
will re¬ during the year ended June,; 30t•
amounted
to
$191,444,412
deem $500,000 principal amount of 1951
the debentures on Jan. 1, 1958 and and net income to $10,044,728.
financing constitutes an in¬
part of a financing and
expansion program under
which
1964;
cue
sinking
A
books closed.
tegral
bonds
4%
and at $30 per
offer¬
and
convertible
into common stock at a
1966, at 100%
1,
interest.
debentures are
The
PAST PRESIDENTS
IBA
to prepay
conversion $8,400,000 outstanding promissory
Allen & Co. and associates on
price of $22.75 per share if con¬ notes; and to finance in part the
Dec. 7 offered publicly $10,000,000 verted on or before Nov. 30, 1957; program
of plant improvement
and additions, including the con¬
of
Colorado Fuel & Iron Corp. at $25
per share, from Dec. 1, 1957
15-year 4%% convertible deben¬ to and including Nov. 30, 1962; struction of a new seamless pipe
Deb. Oversubscribed
to
Thursday, December 13, 1951
...
(2326)
Wm.
and
E.
Pollock & Co. Inc.
B. G.
NEW
BALTIMORE
Phillips Opens
Mutual Fund Dept.
YORK
B. G. Phillips and
Wall
Insurance Slocks
•
Municipal • Corporate
Bell
Teletype
—
WHitehall 3-4000
—
270
BA
Company, 44
according
General
by
firm
office
an
G.
.
this
pur¬
leased
addi¬
to
next
space
an¬
Phillips,
For
has
quarters
present
to
B.
Partner.
the
tional
Mutual Funds De¬
ie\v
a
nouncement
pose
Securities
New York
Lexington 0210
—
Street, New York City, has
opened
partment
vcriiiiiciii
111 E. Redwood St., Baltimore 2, Md.
Telephone: Baltimore
the
on
its
c. t. williams & co.
ninth
INCORPORATED
floor of 44 Wall Street. Sydney S.
Dealers
—
Underwriters
—
Brokers
Lewis,
B.
Company, will
Manager of the new Depart¬
ment.
Mr.
Lewis
has
back¬
a
United States Government and
ground of 30 years' experience in
the
securities
which
Established
INVESTMENT BANKERS
G. Phillips and
be
John C. Legg & Company
Account Executive with
an
time
business,
he
has
1899
during
handled
Railroad,
Utility
Public
and
Municipal Bonds
Industrial Issues
all
types of investments for both in¬
dividuals
of New York Stock Exchange
Members
New York Curb
Exchange
The
(Assoc.)
Direct wires
Los
to
FIDELITY
organizations.
is planned as both a sales
training organizations.
and
Private
Cruttenden & Co.—Chicago
Bell Teletype
—
1, MD.
BA 499
—
Telephones to New York and Philadelphia
Branch
Conrad, Bruce & Co.—San Francisco,
Angeles, Seattle, Portland; and
BALTIMORE
BUILDING
Telephone Plaza 2484
Mutual Funds depart¬
ment
Philadelphia-Baltimore Stock Exchange
'>
and
new
Office
Bell
—
Bank
National
Teletype—ESTN
BIrig.,
MD
Easton,
Md.
264
Bache & Go.
Add Four to Staff
Bache
New
&
Co.,
York
nounce
YOUR INQUIRIES
INVITE
that
Reuben
and
have
become
Cummings,
Hale, D'Arcy C.
Alfred Rogers, Jr.,
r
A
as
Firm Markets In
the
Cummings
registered representatives.
will
be
in the
Chicago
branch
office,
will be
located
Messrs.
SECU
with
associated
Mr.
BALTIMORE
the
an¬
Peter
firm
ryland
of
Exchange,
Glenn
Higgins
WE
members
Stock
Higgins
in
Rochester, and
Direct
Private
their
and
Rogers
headquarters
V';♦
:VV
will
'•'fr
in Tor¬
New
York
onto.
Stein Bros.&Boyce
'Special to The Financial CirnoNicLE)
SAN
St., Baltimore 2, Md.
-
Bait., Saratoga 8400
N. Y., Rector 2-3327
'I
NEW YORK
Washington, D. C._
Cumberland, Md.
OF NEW
MEMBERS
and other
«Cfx
YORK STOCK
Howard,
1920
Jr.,
is
Co.,
1
with
Brush,
j'
•
" ■
MEMBERS
Slocumb
&
Montgomery
STOCK
; '
!
'V
EXCHANGE
PHILADELPHIA-BALTIMORE STOCK
v
,
EXCHANGE
Street.
UNDERWRITERS
A. C. Allyn Co. Adds
EXCHANGE
leading exchanges.
jj
i
Correspondent
•
J.
Phila., Pennypacker 5-5175
-LOUISVILLE
PHILADELPHIA
|
Johnston, Lemon & Co.
FRANCISCO, Cal.—Leslie
WASHINGTON
Phones:
to
.
ESTABLISHED
With Brush, Slocumb
1853
..
Carl M. Loch, Rlioades & Co.,
our
6 S. Calvert
Wire
"
make
Established
S
SECURITIES
WASHINGTON
Mr. Hale
.
(Special to The Financial Ckioniole)
MADISON,
Cooper
and
is
now
Wis.
—
Robert
with A.
Southern
Telephone:' Sterling
A.
C. Allyn
Co., Inc., 3847 Nakoma Road.
Branch
3130
Offices:
-
DISTRIBUTORS
Building, Washington
-
5,
DEALERS
D.
C.
Bell Teletype: WA 95 & WA 28
Alexandria, Va. and
Lexington Park,
Md.
;•>
Number 5072
Volume 174
Continued
from
.
The Commercial and Financial Chronicle
...
the
people generally in
panding economy as a
10
page
(2327)
condition.
an
ex¬
normal
tematic
utilization
of all the
rulers
na¬
tural resources of the earth for the
thereof
or
of
any
87
small
privileged class.
This
expanding econ¬ good of the whole human race.
omy is not only to provide for a
The other great
discovery in the
growing population of more than eighteenth century was political.
200,000 per month but also to It was the recognition of the es¬
provide an improving standard of sential dignity and inherent im¬
living for all the people.
This portance of the individual and his
point of view by the mass of the inalienable personal
rights. Upon
.•v
It is important that the work¬ people is especially important in
ported by the same acreage it
this principle the founders of our
takes to grow the food for one men in ail our countries recog¬ a free enterprise society where in¬
developed
our
whole
horseror mule, and that the reason nize that they will share in in¬ dividual citizens have both the country
In the declaration of
Productivity—Key to Prosperity
that
made
possible
principles
the
United
States of America this great dis¬
covery or principle was recog¬
nized in the words "to secure
And Peace
these rights governments are i!r^
stituted.'* The rights referred to
,
are
life, liberty and the pursuit of
,
Americans
menr
in
could
the
put 12 million
field during World
War II and still
the
food
produce not only
required by Americans
but
jship
additional food
allies
was
to
our
this mechanization and
the resulting increased productiv¬
ity of American farmers.
General Motors recognizes
its
responsibility for- providing the
best equipment available, for in¬
creasing productivity and for im¬
proving its products through re¬
search and engineering.
In its
recent
five-year labor contracts
General:; Motors
-
the
recognized
principle of sharing the results of
■
incentive
all
lose
workmen
to
produce more or work longer or
harder because they believe from
their
that
experiences
if
they
produce more either their govern¬
ment
the
all
their employers will take
or
ployees.
as
,
or
This part of the formula
determining wages
the annual improvement factor
the
productivity
factor.
Belief in
incentive
contributed
other
one
national
tant
tive
..
-
Expanding Economy
an
is
There
is known
very
impor¬
viewpoint that has
America's produc¬
to
capacity.
If; is the belief by
in
the
last
L
Pestilences
the
'V;
There
worthy of the
this
on
earth had
beyond
largely
were
N&
FAS'SOM
miserably
low.
majority
of
people
little
choice
themselves
to
BANK
between
death
to
because
Fridley
or
First National Bank
eat.
to
Bell
Teletype HO 42
Telephone PReston 8101
of all the people in the
regularly
live in
Building
HOUSTON 2, TEXAS
parts of the world, and even
time probably not more
our
want
Hess
&
they
produce enough
is still true in
or
This
on.
world
BL30.
death
find
than 25%
REPUBLIC
all
and
was
had
many
SECURITIES!
in
activities,
working
in
hu¬
on
power
production
live
Securities
miserable
dependent
animal
and
great
to
RS
DEALERS
Corporate and Municipal
no
name,
been
starving
INVESTMENT
DISTRIBUTORS
imagination., People
our
could not
SAXDE
was
sci¬
entific
inquiry
having
strayed
into the by-paths of alchemy and
other pseudo sciences. And so, for
centuries, the average man's lot
The
-
UNDERWRITERS
periodically decimated
population.
then
*«
'
f
Two
years ago transportation
primitive and slow, and local
famines
frequently
occurred.
production
.
particu¬
years.
was
their
U
50
hundred
man
■
and
years
larly
science
increase.
improving productivity with em¬
for
happiness—individual rights that
productivity when it is right to p 1 a n and responsibility structure of government. It was are above and beyond any rights
achieved, that on their side they for
planning
their
own
lives perhaps the first
government ever that may be conferred upon a
cooperate in the use of new and rather than having their lives
established to promote the welfare business
corporation,
a
labor
better ways of doing thihgs and planned for them by a few dicta¬
that they completely discard the tors.
7;; of all the citizens rather than the union, a religious sect, a political
false1 philosophy
that machines
The social and economic status aggrandizement of the state or the
Continued on page 88
take the bread out of workmen's
of the peoples of Western Europe
mouths.
The policies of employ¬
and of the Americas have impor¬
ers and the taxing policies of gov¬
tantly changed and improved in
ernments must pot be such that the last 200
creased
have
Most
of
all
they
these
25%
western world.
our
Dallas
American
In
Discoveries
and
Precepts
u
the
last
two
progress
has
been
centuries
made
more
toward
improving
the well-being of the
individual, especially in the west¬
ern
world, than in all the cen¬
turies that preceded them.; This
i
RETAILERS
OF
progress is really based on what
might be called two great discov¬
These
eries.
principles
recognized
•
I.-
-'.V,
SECURITIES
century.
While they have been
recognized in other nations, they
Swd/m
have had their most successful ap¬
plication
Jt>i rei/ment
TEXAS
great
or
first
generally
and successfully ap¬
plied in the latter part of the 18th
fiallrr,
.
discoveries
were
Sftcriv-r'fied
in
ment
and
develop¬
together
greatest
America,
and
they have made possible great
productivity. They have given us
iJ/h'/iuA/tr. $a/nYc
American
our
comforts,
Dam
s
Members New York Stock
culture
iE
Exchange
and freedom from want.
One
these
of
SAN ANTONIO
discoveries
great
physical and affected the ma¬
terial world. Broadly speaking, it
5
was
scientific
kind
T
that
the
world
and
that
could
derstood.
of
Underwriters
and
Distributors
this
PUBLIC UTILITY,
BANK, INSURANCE, and TEXAS MUNICIPAL
;
-/"aPALLAS 1, TEXAS
'r/
u
*
'
-"
77\
the
also
things
finite
on
and
identified
be
The
and
outstanding
TEXAS SECURITIES
ACTIVE
realistic acceptance of the
we
an
Longhorn Portland Cement Co.
previous
centuries
in
those
•
recognized
and
adopted.
Material science has the clear pos-.
been
sibility and promise of the sys¬
Argo Oil Corp. >
Wyatt Metal & Boiler Works"*"
El Paso Electric Co., Common
Lone Star
Sominers
Brewing Co.
Welex Jet Services. Inc.
-
Drug Stores, Com. & Pfd.
Central Power & Light
Co., 4% Pfd.
Kirby Lumber Corp.
*'*,
-
-
River Brand Rice Mills, Inc.
Quick Finn Bids On All
Texas- Municipal Bonds
Russ
INCMRWATfO
C. L. WEST
W. G. HOBBS, Jr.
E. D. MUIR
A.
Member* Midwest Stack Exchange
Alamo National Building
SAN ANTONIO 5
SA 23
& S3
Fannin 4924
M. RUSS
Direct mnd
;
Duncan Coffee Co., Class A
Slick Airways, Inc.
All San Antonio and Houston Bank Stocks
OFFICERS
I
Tennessee Gas & Tran. Co. f
Garrett Oil Tools, Inc.
It was also the foundation
entirely new approach to
largely eliminated the malnutri¬
tion, the pestilences and epidemics
Johnston Testers, Inc.
Houston Natural Gas, Com. & Pfd.
analyzing and treating the physi¬
cal ills of human beings and has
of
TRADING MARKETS
un¬
result
countries where the principle has
■
BRANCHES: Houston, San Antonio and Austin
all
were
subject to physical laws
knowledge and solving problems.
This great discovery of the sci¬
entific approach opened the minds
of men and was the real begin¬
for
HOME OFFICE: Mercantile. Bank Bldg.
3
Angelo, Texas
for
ning of our industrial age with Its
substitution of machines for man¬
SECURITIES
San
world
inventions
power.
J.f
the
have had a great rush
resulting from this
scientific method of searching for
of
INDUSTRIAL,
known
that
physical laws of nature was the
development of mechanical power.
Particularly during the last cen¬
tury,
RAILROAD,
TELETYPE SA
Branch Office:
the
preciated
4,
had
centuries
real
i
15
man¬
round, finite and real, prior
18th century few men ap¬
was
Rauscher, Pierce &Co.
While
method.
generally
several
to
L.D.
the general acceptance of the
was
Contacting Wires ta:
Dallas, Houston, Galveston, New York dk Las Angelas
"
Chronicle
The Commercial and Financial
Thursday, December 13, 1951
...
(2328)
€3
Continued jrom page
destitute. In such
aged, sick and
87
it
societies
not
is
question of
of, but
a
IBA PAST PRESIDENTS
should they be taken care
how best to do
Productivity—Key to Prosperity
And Peace
or
«ince
our
country
was
founded
similar progress has been made in
countries of Western Europe and
Americas where the same
In the
.great principle was
discoveries
or
recognized.
that these same
Americans hope
will
principles
gradually be better understood
and applied in the rest of the
results that
jbtave
been
achieved
here
in
America. In my opinion the final
hope of world peace depends on
world with the same
application
discoveries by
their respective
the understanding and
of these two great
all
in
peoples
countries.
minimum de¬
fense production necessary to pro¬
tect a nation, is an economic
Today
seriously
that
The peoples
(2) How to establish and pre¬
serve
economic stability in their
nations
and
at
the
same
t
mm
KjMU
mm
people. Likewise, a welfare pro¬
R
especially when underwrit¬
ten
by
centralized government
and abused by those who could
work and support themselves but
don't, also handicaps the pro¬
ducers and tends to reduce their
of
living.
Socialistic
The peoples of the free world standard
face a fourth
problem—how to schemes are no solution for these
achieve the first three without problems since by their very na¬
losing the freedoms on which ture they tend to eliminate incen¬
Roy C.
John A. Prescott
their nations have been built.
tives, destroy personal initiative,
The peoples of the world want weaken responsibility and curtail
peace not war. The history of the production.
world. Even with America's great
world through the
centuries is
idealism
and
productivity, this
Importance of Increased
that
dictators, not the people,
policy cannot safely be counted
Productivity
make the wars. If our nations in
on for long by any nation. Colo¬
At the present time it is ex¬
the effort to meet aggression de¬
nialism was never popular with
velop into military and political ceedingly important to increase most
Americans
and
certainly
dictatorships, they will inevitably productivity to the maximum in colonialism in reverse will not be.
become involved in war as dic¬ the free world. All of us must be This is another reason why it is
tator-dominated
nations always willing to make a greater effort, so important for other countries
gram,
4
"
.
•
ML -
mm
have in the
past.
The western world has demon¬
strated
of all nations and
•
HP
reduces
of the
living
of
standard
the
organize our work
so that we accomplish more with
each hour of work. Our nations
and
must
we
beyond a question of a
greatest productiv¬ must have military programs suf¬
ficient
to
protect
themselves
their political leaders, no matter ity and highest standard of living
how they may have achieved their can only be achieved by stimulat¬ against aggression. With an in¬
creased birth rate and an in¬
positions of authority, power and ing the initiative of the millions in
creased life expectancy, the pro¬
a free society. Likewise, to main¬
responsibility, face three major
tain political stability in such free ductive portion of the population
problems today: ;,
'
nations, it is necessary to maintain is reduced, throwing an added
(1) How to avoid war and help and improve the standard of liv¬ load on each of the producers.
maintain world peace and at the
Since to achieve political stability
ing of the people.
same time protect the territories
in our countries these producers
Free
societies
based
on
the
of their nations and their legiti¬
must have a hope for increasing
mate international interests.
recognition of the essential dignity their standard of living as a re¬
Major World Problems
1920 -21
1922 -23
establish¬
minimum military
A
ment, including the
handicap
maintain or improve the standard
group. The
of living of the people.
country was
(3) How to take care of the
designed in part to protect the
citizens against any attempt by aged, sick and destitute whose re¬
sources are inadequate to provide
even the government itself to in¬
for their necessities and who are
vade these inalienable rights. In
now unable to earn a living and
the 175 years that have passed
take care of themselves.
any other
Constitution of our
jiarty
it.
doubt that the
and
inherent
time greatest
importance of the ward
naturally
individual
consideration
have
for
the
the
their greater
effort,
triple necessity for in¬
productivity.
for
there is
creased
a
Lewis B. Franklin
Osgood
the western
that
world, and we hope
increasing
can
be
the
whole
example
through
prosperity
and
brought
about
peace
in
t
world.
Steele With Gordon Hanlon
(Special
to The Financial Chronicle)
BOSTON, Mass. — Donald T,
under¬ Steele has become associated with
stand the basis of American pro¬ Gordon B. Hanlon & Co., 10 Post
ductivity and rapidly improve the Office Square, members of the
productivity in their own lands.
Boston
Stock
Exchange.
Mr.
the
in
western
world to
,
utmost importance
is of the
It
Steele who has been in the invest¬
of the world
have no ment business for many years wa§
desire to expand their area of in¬ formerly with Joseph F. Jordan
fluence in the pattern of the old &
Co., Coburn & Middlebrook,
colonial empires nor to take ad¬
Inc., and R. H. Johnson & Co.
vantage of the peoples of other
lands to gain for themselves by
New Brooklyn Branch
holding down the living standards
for Merrill Lynch
of other peoples. The truth is that
we Americans consider that our
The
new
Brooklyn office of
future progress to a large degree
Merrill Lynch, Pierce, Fenner &
will
the
that all the peoples
realize
Americans
that
depend
progress
countries make at Beane, members of New York
time. We believe that Stock Exchange, was opened-on
upon
other
which
Beginning in the fifteenth and the same
the nineteenth century the greatest progress for each na¬ Monday, Dec. 3. William A. Winthe nations of Europe in varying tion can.be made only when all
slow
is
manager
of the office,
degree depended on a policy of nations make progress in freely
which is located at 148-150 Pierrecolonialism to support the people
developing their own and thus
It also has an en¬
in the home countries. This sys¬ the world's resources. This is why pont Street.
through
Real Distributors of Securities
-
designed
was
develop the resources of more
primitive or pagan countries by
more civilized peoples. Frequent¬
to
VIRGINIA
WEST VIRGINIA
colonialism
of
tem
In
NORTH CAROLINA
ly the system was maintained by
military power. Admittedly the
system was designed to help the
people of the mother country, but
it was defended - on the
ground
Telephone
Teletype LY 82
Corporate Dept.
that it ..also raised the economic,
8-2821
Municipal Dept.
Teletype LY 83
social and religious
pleased to have you
we
are
us.
We hope that we
and can continue to
ance
your
BAKERSFIELD,
and
Calif. —Hugh
Sill is engaging
in the secur¬
ities business from
offices in the
W.
productivity is the
"♦„
Sill Building.
for
key to prosperity and peace
standards of
The colo¬
the native population.
nies
provided
return
in
SCOTT, HORNER & MASON, Inc.
Investments
the
for
materials
country
and
DISTRIBUTORS
—
DEALERS
always
was
Industrial & Railroad Securities
Public Utility,
popular in the mother coun¬
tries than in the colonies. The
growing
on
Bonds
Tax Exempt
up.
Active Market in
Local Securities
Perhaps the American Revolu¬
Roanoke, Ya.
Bluefield, W. Va.
Norfolk. Ya.
Danville, Va.
—
more
tion and the founding of
Richmond, Va.
UNDERWRITERS
raw
produced by the colo¬
colonies insisted
LYNCHBURG, VIRGINIA
food
Colonialism
nies.
for the
market
mother
a
the
from
goods
nation
new
a
MEMBER
the beginning of the
was
MIDWEST STOCK
end of colonialism. While colonial¬
ism
was
accepted
an
;
v
EXCHANGE
in
policy
Europe for many decades there¬
after, and continued to expand in
some areas throughout the nine¬
teenth
achieved
Americas
the
their
had
always
114 Third
Street, N. E.,
in¬
during this period.
The people of the United States
dependence
have
C. F. CASSELL &
century, the territories of-
sympathy
Phones
Bell
2-81S7—2-8158
CO., INC.
Charlottesville, Va.
Teletypes—CHAJRVL 95 & 96
for
other colonial
peoples who were
attempting to establish their in¬
dependence. As
and
Municipal Bonds and Corporate
perhaps
Monroe
of
Securities
the
a
of
result of this
American
our
Doctrine,
the
Americas
pendence during the
that colonialism
Local Industrial & Utility Stocks
ing
on
With
of
Trading Markets
the
was
same
still advanc¬
other
rising
continents.
economic
policy
populations
after
colonialism as a
declined rapidly. Follow¬
War
was
I,
understood
has largely
100
years
LYNCHBURG, VIRGINIA
LD 39 TWX LY 77
OF
Bank
CHARLOTTESVILLE
own
sources
CHARLOTTESVILLE, VA.
as
ago
Dealers in
Municipal Bonds
<
policy
what might be called colonialism
in
reverse.
We
are
exploiting
our
,
disappeared.
Our country now has as a
STRADER, TAYLOR & CO., INC.
Peoples National
status
ing World War II colonialism
it
THE
inde¬
period
colonial
World
Retail Distribution
some
territories
achieved
people and
our
own
re¬
to benefit people in other
countries. This is certainly a new
development in the history of the
*• i
Chronicle)
(Special to The Financial
countries. We are sure
that increasing
Street.
Hugh Sill Opens
be of assist¬
in improving the pro¬
to you
ductivity of your businesses
of
trance on Montague
visit
have been
Specializing in
Virginia, North Carolina, and
;•
West Virginia
Municipals
Volume 174
Number 5072
.
.
,
The Commercial and Financial Chronicle
(2329)
past policy of
out.
Public
tures
desirable
step in lieu of equity financing to
keep the capital structure in bal¬
Utility Securities
By OWEN ELY
IBA GROUP CHAIRMEN
MISSISSIPPI
ance.
ROCKY
VALLEY
Central Hudson Gas & Electric
MOUNTAIN
TEXAS
Baxter Laboratories
Central Hudson Gas & Electric
.
substantial pay¬
The conversion of the
deben¬
is regarded as a
89
a
Poughkeepsie unit, the ' company
Corporation serves a territory ex¬ expects that next
year about 75%
tending about 85 miles along the of its
output can be produced and
Hudson River, and about 25-40
25% purchased from others
Com. Stk,
Lehman
on
Market
Brothers
and a group
(prin¬
of
-associated
underwriters
on
cipally Consolidated Edison). Elec¬
Dec. 11 offered to the
public 100,tricity at Danskammer will cost
000 shares of common
miles above New York
stock (par
City and only about 4.4 mills, it is esti¬
the northern end about 10 miles
$1) of Baxter Laboratories,
Inc.,
mated, but energy purchased from
at $17 per share.
south of Albany. The
population Consolidated
Edison
under
the
In
served is around
addition, 25,000 shares of
294,000, one-half new contract will cost about 13.1
common stock is
being in communities of 25,000 or mills
being offered by
compared with
6.7 mills Baxter
more
and half in small
Laboratories, Inc. for sub¬
villages formerly. Adding cost of capital,
and rural
scription by employees, also at
areas; the four principal the average over-all cost of
energy
$17 per share.
cities are
Poughkeepsie, Beacon, next year is estimated at 8.4
mills,
Baxter Laboratories,
Newburgh and Kingston. Gas is
Inc., organ¬
Edward D. Jones
compared with 6.6 mills for the 12 ized in
Ernest E. Stone
Dana T. Richardson
served to a portion of the
1931, is a leading company
area, months ended August, 1951.
Edward D. Jones &
Be¬ in a
Stone, Moore & Co.,
Underwood, Neuhau*
specialized segment of the
and natural gas has now been sub¬
Deliver
Co., St. Louis
cause
of this increased cost, the
& Co., Houston
pharmaceutical
stituted
for
industry, manu¬
manufactured
gas company requested a rate increase
(water-gas being made only at from the Public Service Commis¬ facturing solutions for parenteral
alimentation and equipment for
times of peak loads). About
83% sion, which was promptly granted.
blood transfusions.
Of revenues are
electric, 17% gas This increase will, it is estimated,
In addition to its main
and
plant at
:
a
small amount of steam- take
care of higher costs and taxes,
Morton Grove, 111., the
company
heating.
•
and make the return on the rate
;v/
has a plant at Cleveland,
Miss.,
Activities in the area include base more adequate.
Return on and its Canadian
subsidiary has a
Small diversified
Nielsen, Gordon & Co.,
120
industries, fruit the electric rate base for next year plant at Acton, Ontario.
G. H. Walker & Co., member#,
and dairy
Broadway, New York City, mem¬
The 100,000 shares
farms, and summer re¬ will approximate 6.07% and on
being pub¬
of the New York Stock
bers of the New York Stock Ex¬
sort business.' Principal industrial the gas investment
Exchange*
4.52%, accord¬ licly offered by the Lehman group
customers include manufacturers ing
will
admit
Wilfred
J. on Jan. 1 will admit John Shel¬
to
the
company
estimate. were acquired from stockholders, change,
Of machine and metal
^products, Earnings for the calendar year, most of whom will continue to Young and Milton S. Yokeman to ley and John M. Walker to part¬
textile,; paper, clothing, building 1952, are estimated at about 90c hold substantial amounts of Bax¬ partnership on Jan. 2. Both were
nership. Mr. Shepley will mak#
products and food industries. -In¬ a share on common stock, com¬ ter
Laboratories,
Inc.
common formerly associated with Frank C. his
headquarters in the firm's SH
ternational Business Machines- is pared with an estimated 66c this stock. Proceeds from the
offering Masterson &
Co., Mr. Young as Louis office, 503 Locust Street;
the
largest customer but; con¬ year.
''T?.'•V--' of the 25,000 common shares to
Sales Manager, and Mr. Yokeman Mr. Walker will be in
tributes only 1% of revenues. The
the New
The estimated
share
earnings employees of the company will
company has gone to considerable for next year are based on an as¬ be applied by Baxter Laboratories, in the mutual funds department.
York office, 1 Wall Street.
Inc. to general corporate
lengths to serve all farms in its sumption that another block of
purposes.
$2
area
Net sales of the company for
(at one time spending $1 million convertible debentures can
1950 were $9,874,555 and net in¬
million for this
purpose) and as a be converted into common stock
come was $874,734
result there are no
compared with
municipalities next year (the remaining $2 mil¬
miles east and west from the river
—the southern end
being about 40
*
Young, Yokeman to Be G. H. Walker Admits
Neilsen Gordon Partners
net sales of $7,103,908 and net in¬
in 1953, it
come of
$632,639 for 1949. For the
hoped). While additional senior
gas) in its areas except in one financing will be necessary from first ten months of 1951 net sales
were
$9,257,536 and net income
time to time, at present no
Village.
A
equity
;-?V
was $614,032.
The company has for some
seems
years financing
contemplated
been buying most of its electric through 1953.
Conversion of the
or
or
co-ops
distributing
electricity
gas (other than so-called bottled
lion will be converted
is
output from Consolidated Edison, debentures, plus excess earnings,
generating only 11% of the output should restore the common stock
in the 12 months ended
Aug. 1, equity to around the 30% level
1951. The long-term contract with (compared with 26%
currently),
Edison
rate
was
on
a
very
basis, but Edison
several
have
to
years
favorable
gave notice
that
ago
it
would
it is estimated.
The company
offered $4 million pre¬
ferred stock, and $5 million bonds
increase
its charge very were sold earlier in the year. The
when the contract company's tentative program for
Central Hudson then de¬ future financing (to take care of
New
York
New
York
other
leading
■
expired.
Exchange
new
modern
plant
its
construction
program)
is
as
at Danskammer Point
Equity and Bond Financing
City, members of the
Stock
with
the
for
Exchange
Stock
1108 E. MAIN
of
James Robert Laidlaw and Frank
tion before the end of
lives
as
1952
The
(de¬
stock
has been selling re¬
cently on the board around 10
pending upon the availability of
water supply, since the plant is paying
60c
dividend
to yield
expedite con¬
tied in with the New York
City version of the
$2 million deben¬
water supply project).
5.7%.
tures
Based
the
on
normal stream flow at
company's
existing
plants, and estimates
of the
new
as
hydro
to output
steam unit and the old
'•'■■■'iwotx rj!:-
find
a
In
in
it
order
1952
to
the
desirable
company may
to increase the
dividend rate (assuming that
ings
improve
as
earn-^
anticipated),
which iwpuld be in line with its
L.
Lucke
as
fective Jan.
Mr.
Laidlaw
Elliot C. R.
of
ner
and
general partners
1,
is
the
son
•
of
firm
and
Plainfield,
attended
Established May 20, 1893
New
Jersey,
has been in the banking de¬
Scott &
partment of Laidlaw & Co. since
1946.
Stringfellow
Members
Mr. Lucke has been with Laid-,
New York Stock
law & Co. since 1945 and is pres¬
ently
Telephone 2-2841
ef¬
1952.
Laidlaw, Senior part¬
the
in
ST., RICHMOND 10, VA.
Teletype—RH 460
Princeton University and the New
York
Institute
of
Finance.
He
River;
Municipal Securities
has
York
admission
on the Hud¬
follows, disregarding temporary
well as a new hydro bank loans:
plant at Grahamsville. The first
1952—$5 million bonds.
60,000 kw steam unit at Danskam¬
1953—$3 million preferred stock.
mer is currently going into
opera¬
1954—$8 million bonds and $2.7
tion, and the 25,000 kw hydro million common stock.
plant is expected to be in opera¬
son
—
and
exchanges,
New
the
1929
UNDERWRITERS AND DISTRIBUTORS OF
Laidlaw & Co., 25 Broad Street,
filed
a
Established
Members Richmond Stock Exchange
Two General Partners
re¬
cently
has°n:Ha<Hn
Laidlaw Go. to Admit
substantially
cided to build
Two New Partners
manager
municipal
bond
of
the
New York Curb
firm's
department.
His
Exchange
Richmond Stock Exchange
Exchange (Associate)
Buford Scott
Walter S. Robertson
Marlon
residence is in Wilton, Conn., and
attended
the
University of
he
Thomas
N.
R.
Fitzgerald
D.
James
Neal
Eldridge Longest
L.
H.
Scott
Thornton Fleming
Joseph J. Muldowney
Minnesota.
115 Mutual
Joseph Vancil Opens
ROBERT C. JONES & CO.
NEW YORK
STOCK
EXCHANGE
'
>
.
YORK
111.—Joseph Vancil
engaging in a securities busi¬
CURB
EXCHANGE
Private Wire to
Clark, Dodge & Company, New York City
from offices at 19 South La
Salle Street.
_•
(ASSOCIATE)
WASHINGTON STOCK EXCHANGE
CAFRITZ BUILDING, 1825 EYE
STREET, N. W.
V
i
NEW
Richmond, Virginia
Telephones 2-7234 and L. D. 3
CHICAGO,
is
ness
MEMBERS
Building
Teletype RH 190
:
b
WASH INQTON
Metropolitan
'
2922
VIRGINIA—WEST VIRGINIA
6, D. C.
Teletype—WA
67
NORTH and SOUTH CAROLINA
Firm Markets in all.
MUNICIPAL BONDS
WASHINGTON SECURITIES
F. W.-
LOCAL BANK STOCKS
CRAIGIE & CO.
DEALERS
DIRECT WIRE TO
.
STATE and MUNICIPAL BONDS
HAYDEN, STONE & CO.
MEMBERS
NEW
YORK
STOCK
IN
.
EXCHANGE
616
EAST MAIN
Telephone 3-9137
STREET
RICHMOND 15,
VIRGINIA
«
Teletype RH 83 & 84
Chronicle
The Commercial and Financial
(2330)
90
Continued from page
expenditures, will be for defense
etc.
Today
a
from
to the lower income groups
lend support to the so-
groups
tends
an
income
higher
the
to
no
with
purchasing power theory of
business cycle. It does tend to
called
the
as
Government Fears Deflation
election
an
year,
will
open
program
the
spending
stream
which
trends,
basic
desire
the
to
relate
that
less,
toward
of the
union
interruptions,
purchasing power
has been downward.
Putting
has
creeping socialism,
change it.
a
talking
an
associated
from
lar
actual
of course, worth consid¬
was,
in terms of buying
power than the 1900 or 1910 dol¬
lar. Yet, taking the 1939 dollar as
erably
but
100,
less
the end of
War II in 1945, its buying
dropped to 77c. At the time
World
power
levels
Korean
the
short-term, at least, can be util¬
ized to induce expansion and to
find that by
we
power
the
The 1939 dol¬
the last few years.
War
started
in June,
In other words,
viewpoint. It is likely that most of employment.
1950, the dollar was worth 58c. At
of the deficit for the current year unemployment compensation, old
the
present time, the dollar is
militate against deflation. It must has already been realized and that age benefits, etc., tend to bring
worth 53c in relation to the 1939
be
recognized that the starting in the months just ahead there income to the non-producer or
dollar, or, in other words, has
Thus, moderate un¬
point in economic theory today is will not be important deficit fi¬ non-worker.
only slightly more than half the
the concept of full employment. In nancing.
employment would not affect pur¬
"
purchasing power of the 1939 dol¬
the event of any deflationary de¬
chasing power as adversely as has
The powers of the government,
lar.
This means that the dollar
velopments, with consequent in¬ in terms of relaxing controls over been the case in previous periods. measurement of goods or anything
crease in unemployment, it may
else that is expressed in dollars
housing and to stimulate plant ex¬
Basic Changes in the Economy
be safely assumed that the gov¬
must go up to reflect this decline
pansion by allowing emergency
Perhaps the second most impor¬
ernment will use all its powers
in the purchasing power of the
amortization, etc., need no elab¬ tant basic trend
(in, addition to
to meet such a situation, regard¬
oration.
dollar.
They
should
be
con¬
the
centralization
of power in
less of the long-term implications
sidered in conjunction with some
I want to stress the fact that
government as above discussed)
of what it is doing.
of the powers referred to above.
I do not anticipate a run-a-way
are the changes in the basic char¬
Related to this, is the great im¬
All of the foregoing results in
In fact, over the short
acter of our economy.. Formerly inflation.
portance of government spending. some
major-conclusions:
we were a nation of small busi¬
term, there are some semi-defla¬
Historically,
economists
when
(1) Credit will not be con¬ nessmen and entrepreneurs. Risk tionary »factors in the picture.
looking at the demand side of the
tracted.
taking and opportunity for growth However, the long range ecoequation,
considered individual
were the important factors.
To¬ nomic and political factors point
(2) As unemployment begins to
expenditures for consumer soft
to a continued
attrition in the
the
government
will day, with the development of
goods and consumer semi-dur¬ develop,
large-scale business, we h a v e buying power of the dollar;
ables; and also business expendi¬ spend, and spend heavily, ("Hu¬
tended to become a nation of wage
The huge increases in produc¬
tures for durable goods, such as man values are more important
earners.
The great bulk of the tive capacity do not automatically
plant and equipment, and also than property values.") It is un¬
working population is not self- mean lower prices. First of all,
business expansion of inventories, important to guess whether the
employed. This places a premium the supply of dollars has increased
on security, as contrasted with in¬
more than
production." Secondly,
>
.
,
dividualism
or
economic
oppor¬
tunity. This has been reflected in
the
thinking
not
only
of the
Dealers in
unionized
but
groups,
U. S. Government Securities
the
even
university graduates who
and
tion
are
to
tends
price.
go¬
are
ing into management. Remember
that in large degree management,
that competi¬
level of demand
should be noted
it
the
set
the
upper
limit
of
The lower limits of price
established by cost plus some
minimum
Under
profit.
This
in
Municipal Bonds
further
people vote and in the
Congress is likely to act.
Again, it means more and more
supports for full employment, re¬
gardless of the longer term con¬
sequences and soundness of the
fiscal policies involved.
way
way
Bond Department
NAT 10
J
A
C
BANIC
K,
S
N
V
I
L
L
E.
International Situation
The
The next major
evaluated
be
sult of the annual rounds of wage
opinion, World WaiVlII is not
likely over the foreseeable future.
Phone
6-5611
vided into two
allies
increases that have been going on
for
several
years,
wage
costs
On
unit
going
Teletype JK 182
up
trie
technology and new investment in
plant and equipment has made it
increase
to
the
Comjmmist
Russia.
the
other
;
-
.
-
-
,
•>
Even
granting this assumption,
the expenditures will run into so
billions
to
our
an
economy.
It is
a
year that they
important prop
per
will constitute
interesting to note that but
small fraction of the billions al¬
ready appropriated have actually
expended.
been
In
other words,"
to the present time, * we 'have
largely in a preparatory and
up
been
From
period.
tooling-up
this
point on the magnitude of the ac¬
tual
(w h i
expenditures
of
the stimulative factor
are
course,
than
rather
h,
c
appropria-'
mere
tior(s), should gain momentum.
Expenditures - currently are run¬
ning at a rate of approximately
three times that of a year ago and
increases
further
appear
In
especially vis-a-vis the
the Asiatic peoples of
of
world
the
financial
prob¬
vexing
the
and
decline
of
lems
cer¬
general world
addition, the
situation
unrest
a
<;',v';?!
tainty.
in
and]
prestige
of Britain and
resources
France, means we must step into
their shoes and help in Asia and
in the Middle East, etc., in terms,
of
and
manpower
continue
also
and
resources
extend financial
to
support and military aid to Brit-n
ain
and
and
France
other
Euro¬
countries.
pean
Short-Term "Outlook
There
„.ll
basis for
believing that Christmas business
this year will be highly favorable
every
appears
and.is likely to
ahead of even
run
levels
of
last
the
favorable
The
volume
year
is likely to continue at good
of .retail
year.;
sale&i next
levels, assuming a continuation of
high wage rales and peak employ,ment.
recognized that until
It is to be
recently there has been heavy in¬
ventory accumulation at all levels,
man-hour
can
tories
off
coun¬
larly,
tories
be anticipated, v
current fig-j
Simi¬
decline.
inven¬
department store
have
of 1 a t ej
increased comfortably (and,
sales
that
show
mod¬
while
fact, have been running
in
erately ahead of last year),
while
have
increased
good portion
a
that
in mind
kept
inventories
siderably,
down¬
trended
-
be
must
It
.
opinion in this country
overwhelmingly favors a program
Public
very
"some
con¬
of this
production.
In
UNDERWRITERS
DISTRIBUTORS
DEALERS
leading
manufacturing
in¬
dustries produtcion per man hour
has increased to where it now is
about 26%
above
1939.
Over the
BUSINESS ESTABLISHED 1924
period, wage costs
same
per unit
production have approximately
doubled.
The implications to be
.1
of
Florida Bonds
derived from this
Price
tant.
MUNICIPAL
COUNTY
DISTRICTS
Firm Bids
—
Firm
Offerings
—
Quotations
Since
profit.
course,
tion
is
to
most
impor¬
plus
profit
in
ultimately must be
*;.■
fVj,,
CORPORATE
LOCAL
ISSUES
or
to
sell
him
A
Pierce -Carrison Corporation
National
Bank
'
.
!3i
can indefinitely continue
his product at prices that
recover
some
whelming
his cost dnd
profit.
Bell
Teletype JK 181
element
allow
,
.
in
the
.
t
J
over¬
LEEDY> WHEELER6-ALLEMAN
Incorporated
cost
structure consists of wages (which
pyramided all the
FLORIDA
along
line) and that increases in
wage costs must be reflected in
are
Building
JACKSONVILLE 1, FLORIDA
Long Distance 47; 3-8621
• •
in
It further follows that the
.
Barnett
.
business,
SECURITIES
do not
J
•
manufacturing,
in distribution, or in a service
man,
ALL
■
CORPORATE SECURITIES
price structure. It
is quite obvious that no business¬
UNLISTED
;
re¬
the
whether
•
•
r
MUNICIPAL BONDS
cost
margins, of
are quite
small in rela¬
price, it follows thai cost
increases
flected
are
equal to
;
,
L"V;\S1
'Ay'-r
t
prices.
It is interesting to note
that
despite Administration op¬
position,
the
BANK BUILDING
way
ORLANDO, FLORIDA VA
the
Capehart
Amend¬
BELL TELETYPE
OR
10
a
inven^j
business
of
the
and
show
ures
by
characterized
been
leveling
develop¬ inventories
real period of ward.
' '
possibility of
peace
the last three months or so
have
In my
hand-regardless of
ments in Korea, no
much more rapidly than
possible
and
totjay. It is di¬
parts^the Western
tries dominated by
of production in man¬
ufacturing industries have b e e n
Jacksonville, Florida
period of time.
ever,
trepcTthat must
relates^!© the posi¬
tion of the world
per
a
wage
.
The other aspect of this second
big trend is the growth and de¬
velopment of major unions. It is
incontrovertible that, as the re¬
OF
of
event
ranging from the manufacturer,
increases
(which through the retailer to the ulti¬
mate consumer.
Thus total busi¬
appear inevitable because of the
strong
bargaining
position
of ness inventories in the year ended
labor) must be reflected in fur¬ August or September, 1951, in¬
ther price increases.
creased
about $16
billion to a
total of around $70 billion.
How-4
tendency to stress security
thinking also is reflected in
our
the
the
In
war.
templated, mignt not be reduced
moderately and spread over a long
current
and prospective conditions with
itself, represents high-priced em¬ regard to labor costs, as already
ployees rather than ownership. discussed, it seems apparent that
and
all-out
Korean peace, there is some ques-.
tion as to whether or not the huge
.
.
.
promising the
greatest possibility of avoiding an
many
it another way, there
(subject to temporary
toward
increasing degree,
is being dis¬
(4) To
purchasing
been
interruption) a consistent trend
a depreciating
dollar and
this trend has been accelerated in
are
it is not likely to
and long-term trends,
than from a short-term
that
realize
to
of preparedness as
level of expenditures that are con¬
of the dollar for the past 50 years
and, to a certain degree to
the the entire American people, to get
the more and more for doing less
and
Structure
investors
groups
major
rather
for
and
the trend in the
by govern¬
taken out.
Keep in mind that I am
of
Price
important for businessmen
with but temporary
These
(3)
recover
up
until July 26,
price structure. . \ :
The
It is
other
some
or
to
or
medium.
bit wider. Aside from the
a
ment than are being
of taxation, of price
floors and price ceilings, over the
credit mechanism of the country,
important and over the
assumed
be
can
vigorously);
too
passed, which in effect,
manufacturers
in the
1951
continuing and are
magnitude of i the expenditures likely to remain in vogue and to
themselves,
the
fact
that
the be observed by' politicians
budget
will show a deficit
is whether Republican or Democrat.
significant. It means that more A change of Administration might
dollars are being
pumped into somewhat slow down the trend
The powers
are
1952
spigot
a
cline.
etc.,
it
Administration 1,
sustaining factor,
militating against the normal type
of cyclical decline, at least with
regard to magnitude of the de¬
operate
lic works
increasing trend and there are
signs
of ; any
diminution.
Rather,
attacked
be
was
cost*.increases
whether it is to be through a pub¬
third element has
namely government
vote-getting aspects)
been added,
equally important,
T?r, perhaps, more so. This shift of spending. This has been showing
become
income
allows
purposes
the
course,
ment
(which, aside from the
requirements of the international
situation, also provide a means of
"priming the pump" that cannot
10
Trends in the American Economy
Jiave
Thursday, December 13, 1951
...
;
LONG
DISTANCE
27
Volume 174
at the
.was
Number 5072
for
the
1951,
lion
defense
ended July
unfilled
manufacturers
$23.5
billion
lion.
As
of
orders
for
increased
all
of
1951,
low the estimated
substantial
•same
period,
*sales-~For the first
-1951
they
seven
years
housing,
new,
but, on an overall basis, total con¬
struction..should be very favor¬
were
$160 billion
were
in
reduction
some
to-
continue
the fact that
is
of
defense program
our
beginning to get into gear after
start.
There is not likely
slow
a
com-
expenditures will
increase,
reflecting
*
pared
to
$127. billion
the
in
to be major
like
temporary situa¬
a
tion.. The declining trend is not
'
likely to continue
...
program gains
the
as
defense
impetus.
Con elusions
.
In
opinion,
my
economic
•1952.
I
it
gross national
,
4
is
probable
1.
j
be
down,
only
but
slightly.
All in all, .1952
promises to be a peak year, ex¬
cepting only for corporate profits
that
Steinhoffi McNabb
further increase in personal con-
sumption expenditures.
G r 0 s s
private domestic investment will
be moderately lower,
reflecting in
large part a change from the rapid
Pennington
East
11
Street, announce that Carroll F.
Steinhoff, who has been in the
.
Municipal
Bond
since
business
1916, has been appointed manager
of their Municipal Bond Depart¬
ment. Mr.
*
associated
Steinhoff
with
C.
of
-
formerly
was
W.
McNear
&
,
1981,
NORTHWEST
100.749%
as
MINNESOTA
bonds,
v
i
'.v-flf-,, '■
iw
interest,
from 101.75%
redemption
.
from
104.75%
Net
be
ceeds
this "offering
of
added
of
recede
to par.
proceeds
to
are
to par. Gen¬
prices
to
the
issue
an
of
net
Beardslee
pro¬
B. Merrill
Richards & Blum, lnc„
common
Spokane
Trust
Company of Tucson for
a
that, with the Trust Department
Carbide; and anticipated expend¬
of
iture'of
New York for many years, is now
by General
next four years,
the
Chase
associated
Westinghouse of $296 mil¬
and, prior to
years
National
with
them
Bank
„
William S. Hughes
William S. Hughes
The
G.
Egan
Mannheimer-Egan,
Inc., Los Angeles
Paul
Inc., St.
company's expenditures for
construction in 1951
at
Richard
XVagenssller <& Durst,
purposes.
estimated
are
$14,632,000 of which $10,000 000
be
to
obtained
It is
struction
will
that
con¬
for
1952
expenditures
be
outside
from
estimated
approximately $13,500,about $8,000,000 is
which
of
be
obtained
from
'
sources.
outside
'
219,515
erates
customers
wholly
central
in
Maine.
serves
and
op¬
southern
No
other
and
electric
Manager work, first in Winnetka
Knight Transfers lo
N. Y. for Consultants
Hamilton
for.
transferred
years,
the
to
past
New York office effective Dec.
according
from
to
six
War
The company
serves.
all
generates
but
a
very
minor
'
'
energy.
for
revenues
1950
were
income of $4,165,900 for 1949.
the
past
Knight has
tween
20
assigned
a
and
Chiefs
Joint
member
the
of
Mr.
is
Knight
an
alumnus of
Harvard
Amherst
College,
Graduate
School of Business Ad¬
the
Northwestern
ministration
be¬
School of Commerce. He has been
a
resident
and
of
Winnetka
for
past 15 years and has been active
ris Trust
Company and Bauer and
in
Black in
Chicago, he entered City
Chicago.
community affairs there and in
For
$23,498,349
net income
$4,251,106.
was
Specializing in Georgia, Alabama, Florida,
of
in their In¬
North Carolina, South
Baltimore Bond Club
vestment Department.
and General Market
Carolina,
Municipals
Gels New Slate
BALTIMORE, Md.—The annual
UNDERWRITERS
DISTRIBUTORS
DEALERS
business
meeting of The
Bond
Club of Baltimore will be held on
the second floor of the
Club, at 4
CORPORATE SECURITIES
18,
1951.
p.m.
Merchants
Tuesday, Dec.
on
All members
are
INVESTMENT
DEPARTMENT
urged
to be present.
In accordance with Article V of
and
the Constitution and
SOUTHERN MUNICIPALS
Board
of
Trust Company
of
Georgia
By-Laws, the
Governors
appointed
ATLANTA,GEORGIA
a
Nominating Committee composed
of:
Joseph W. Sener, Mackubin,
Legg & Co., Chairman; F. Barton
Harvey, Jr., Alex. Brown & Sons;
John T. Young, Jr.; LeRoy A. Wil¬
Norris
&
C.
«fc
NATL
ATLANTA
Teletype
—
AT
bur, Stein Bros. & Boyee; William
L. Reed, Robert Garrett & Sons.
The Committee has submitted
Hirshberg, Inc.
s.
BANK
3,
BI.DG.
the
GEORGIA
President:
579
Telephone
■OVJ
—
Walnut
2788
Harrison
Bell
Vice-President:
ner
dealers
Albert G. War-
of the
Arrangements:
Secretary:
CORPORATE
Committee
Jack
Geo. G. Shriver &
BONDS
Teletype: NY 1-2712
Garrett,
ESTABLISHED
& Beane.
Chairman
MUNICIPAL
Bell
New York
Robert Garrett & Sons.
r-1
distributors
Telephone: llAnover 2-1561
Private Wire
—
Kcpreaentative
15 Broad Street
Teletype: AT 283
field, Merrill Lynch, Pierce, Fen-
underwriters
New York
Telephone: WAlnut 1671
Atlanta
following nominations:
A.
Co.
Kolscher,
Inc.
L.
Reed,
STATE AND MUNICIPAL BONDS
J.
William
Treasurer:
1894
on
Arm¬
CORPORATE BONDS
Robert Garrett & Sons.
Edward
strong, Stein Bros. & Boyce.
BONDS
Members of the Board of Gov¬
LOCAL STOCKS
(to serve for three years):
Lloyd Fisher, Baker, Watts &
Co.; Robert P. Chambers, John C.
STOCKS
ernors
W.
Legg
COCA
COLA
COMPANY
one
Brown
COMMON STOCK
BOUGHT
-
&
The
SOLO
Company;
(to serve for
Dorsey Yearley, Alex.
year):
&
Sons.
Board
eliminated
the
r;
of
annual
of
Clement A. Evans & Company
has
having
dinner
in
more fre¬
Cocktails will be
quent luncheons.
served
Governors
the
interest
following
the
The
business
►>
Robinson-Humphrey Company,Inc.
meetings.
incorporated
First
National
ATLANTA
Bell
Teletype
Augusta
at
596
WIRE
TO
KIDDER.
Now A
Building
Co., Hanna Building, is
Main
1921
a
Macon
PEABODY
8c
CO..
Corporation
RHODES
L.
D.
384
Savannah
NEW
YORK
business
W.
as
Morrow
O'Connor,
a
now
corporation.
doing
Frank
is President and E. S.
Vice
-
President.
Mr.
O'Connor has been associated with
Mr. Morrow for some time.■%
HAVERTY
BLDG.
ATLANTA
1,
GEORGIA
CLEVELAND, Ohio—Morrow &
GEORGIA
Tel.
Columbus
PRIVATE
3,
Bank
,
the
After several years with the Har¬
the 12 months ended Aug.
31, 1951
total
revenues
were
and
of
Joint
Production Survey Committee.
industry.
i
as
subsequently was
the
to
Staff
Production
War
commissioned officer
a
Mr.
years,
divided his time
government
the
of the Navy, he
John L.
For
chief of the budget
was
of
Board. As
Burns, coordinating
utility operates
in
competition^ partner of the management con¬
with the company in the territo¬
sulting firm's eastern region.
ries which it
II, he
section
11,
announcement
an
During the early part of World
firm's
the
in Wisconsin.
and later
Harry W. Knight, a partner in
the Chicago office of Booz, Allen
and
Central Maine Power Co.
about
announce that James
$22,608,477 and net income was
D. McNabb, formerly Comptroller.
$4,407,663 compared with total
of the Southern Arizona Bank & revenues of $21,336,533 and net
large program planned by Union
and by
due
Total
period of nine
million
eral
.
programs
announced
for
t he
chemical industry,t-including the
the
PACIFIC
CALIFORNIA
first
3%%
mortgage
j. They also
pansion in the steel industry and
in the metal industries; the new
$450
IBA GROUP CHAIRMEN
on
Sinking fund redemption prices
Co., and Burns, Corbett & Pickard
tric
Chicago.
,
;
.
{
continued budgeted expansion of
the utility industry, running into
several billion dollars over a
period of years; the continued ex¬
over
Inc.,
part of its requirements for elec¬
J
Electric
T,
accrued
range
to
Ariz. 2- Henry Dahl¬
Co.,
&
|
Henry Dahlberg
TUCSON,
berg
the other hand, expenditures by
{industry for plant and equipment
is likely rto continue at
very high
levels. Despite the pessimism currently being expressed on this
'score, one must keep in mind the
'
plus
000
With
acterized the first half of 1951. On
c
series
Co.
Power
general
sources.
inventory accumulation that char¬
,
Maine
and
is
dividends.
and
product will attain
new
.
;
Co.
&
7, offered $7,000,000 of Cen¬
tral
very
highs, moderately above the
.1951 peak levels, and expect some
"5
change in the inven¬
will
idends
high level of
is assured for
a
activity
think
Dec.
Stuait
91
tory picture.
orders, but this is
new
believed to be
Halsey,
The level of indus¬ stock, being offered separately,
and will be used first for payment
trial
production should average
of
then
outstanding short-term
perhaps 5% above 1951.
Prices,
indebtedness incurred for the inare likely to be firm, and to show
terim financing of the company's
a
slight upward tendency.
Cor¬
porate profits will be down mod¬ construction program. The balance
will be used for construction ex¬
erately, particularly in the wake;
of increased taxes. Corporate div¬ penditures and for other corporate
19,50 period.
There has been a
fmodefcate decline recently in man:
-ufacturers"
i,j:
t
Government
(2331)
Halsey, Stuart Gruup
Offers Utility Bonds
able..
gain, over 4the
manufacturers'
in
peak of around
$25 billion for 1951. There will be
-$i74-vbillion against „$132 billion.
a
surveys^,y the SEC
plant -and equipment in
1952 will be only moderately be¬
rThis increase occurred in the face
of
or
itures for
from
to around $55.5 bil¬
Sept. 30, unfilled or-
months
years
-<y:\
show the expectation that expend¬
above Ihpse of September, 1950.
""Manufacturers' new orders, in the
seven
four
next
The current
der«-4or durable goods were 72%
•first
the
over
'
so.
big
fn tne year
program,
Chronicle
The Commercial and Financial
.
.
manufacturers level in
'preparation
.31,
.
Teletypes-—AT 288 and AT 142
Lonsr Distance 421 and 422
1
(2332)
Qi
The Commercial and Financial Chronicle
'
-
it
1953-54
Continued from page 11
will
its surplus
dump
the remainder of the world.
on
I
hold
should like to dispel this fear.
Defense Output
Forging Ahead
This
and
#that
Not Sponging Up World's
production lines
reserve
Raw
instantly be expanded to
provide for the needs of all-out
can
if—and
war
should
In
may
At this
God forbid!—it
occur.
severe
fcox of aspirin in my desk drawer.
Yes,
the
world
richest
has
from
well
as
metals that
a
not
the Free World for
Rather
In the
than go out
world markets
are
of
in
raw
will
be
continue
needed
for
that.
Another part of the increase, such
in aluminum, will be used in a
backlog of demand for houses,
au¬
tomobiles, refrigerators and other
into the
quantities—thereby forcing
the already fantastic prices to still
color
effect
the general
upon
raw
been
stopped
save
by the
critical
ma¬
terials.
doubling
production of alum¬ tries.
our
inum.
reduce
Copper
Even
It has
is
a
story. petition for supplies. We look for¬
different
the
before
present
some
it possible to
of the ruthless com¬
made
emer¬
ward
to
the Free World nations in this in¬
using
ternational effort.
more
copper
than could be
mined in this country. Because of
.ft
lack of
reserves
of this metal,
to go before it produces
perfect
but I see
of
Industrial
we
a
were
I told
the
on
phase of the
new
Revolution.
It
will
proved again if and when
of real peace occurs. t
to
propose
achieve
jectives within
t h
t
a
But
its
realize,
we
third World War would bring un¬
told disaster upon humanity, and
are
stitutes for copper, such as mak¬
ing automobile
radiators
aluminum.
out
of
dustrial expansion program, which
has given rise, I believe, to the
fear—barring another major
—
that
reaches
......
when
its
the
peak
United
of
war
States
strength
in
I hope that before
Union
that
will
be
convinced
kind
some
of
that
a
arrangement
be made for the insurance of
can
peace.
If not—if the twilight relation¬
C
ship that
But
Underwriters
SPECIALIZING
go
strength
with
Firm
Offerings
stocks
have
entirely
not
our
to
our
materials
will
great height.
a
production
lines
be put to quick use.
After that, we will
Government
Securities
•
General
Market
Municipals
re¬
that
can
shift from
quantity production to quality
(United States
pro¬
duction, invention and improve¬
ment.
We
civilian
then
can
return
to
a
in some respects, exceeding the
production we enjoyed before Ko¬
rea, which was the highest in our
%-
Defense Will
copper
aluminum
the
used
and
by
will
1950
of
be
allocated
them in the first quarter of
Even
to
have deliberately
decided to do our best to keep our
civilian economy at a wholesome,
so,
we
if reduced rate.
tion
All-out mobiliza¬
have
would
thrown
millions
out of
work; it would have made
it
more
far
difficult
staggering bills
As it
to
is,
to
the
pay
rolling
we are
up.
taxation has mounted
our
proportions but is still
severe
insufficient to pay the armament
we
as
We
along.
go
MEMPHIS
'
Decline
to
10%
MEMPHIS 1,
TELEPHONES 8-5193
•
LD-311
zation;
WIRE SYSTEM
—
THE
TELETYPES ME-283
BANK
•
to
ME-284
defense.
coun¬
recognize further that they have
far less margin than we have.
Since they have less margin, it
is
all
the
Free
more
World
like
to
important for
allies
their
most of
to
resources.
emphasize
our
it
off,
perhaps this figure can be reduced
to
about 10%, thus leaving the
WIRE
lion's
share
Then,
I
can
go
for
civilian
confidently
on
goods.
believe,
maintaining
power
cause
it is
as
it
did
'
and absorb the strain in
We will be
I
which
our
two
You
big
boU
still
refer
to
coal
mining,
barely at prewar
electric' power out¬
put, which despite record growth,
is still inadequate for all needs.
In this country, a rather grim jest
is
levels,
has
and
been
we
are
made
Newcastle"
of
port
States
-
coal
to
the
from
fact
that
highly
has
the
United
That
Europe).
phrase
the performance of
mean
a
its
old
new
a
Now
act.
unnecessary
lost
The
of
"carrying coals to
(referring to the ex¬
now -
meaning,
and
one.
shortage of coal and high-
grade
coke
constitutes
the
most
serious single obstacle in the way
of industrial expansion in West-*
Europe. Electric power, de¬
a 35% increase since the be¬
ern
spite
increase of these forms of energy,
It is capable of
which all industrial progress
-
-
:
I urge you, furthermore, to ad¬
dress yourself to the world-wide
flexibility be¬ problem of raw materials" to the
competitive. end, first, that the supplies of
competition that has forced these be expanded; second, that
free
and
the
highest
possible
wages.
their
effective
most
be
can
achieved
distribution
from
the
stand¬
point of free world economics and
Some of our corporations, as you military strength; and, third, that
the prices of these materials be
know, are veiry large, but even in
the largest ones—like steel, auto¬ maintained at levels fair to both
mobiles, aluminum — we preserve producers and consumers.
,t| ■
the
I want to assure you that the
competitive
principle,
as
against the deadening influence of stabilization of prices, not only of
cartel arrangemests.
There have raw materials, but of all prices, is
been
abuses
in
the
operation
of
anti-trust
of intense
ica.
laws, but by and
large we have preserved the dy¬
namic competitive spirit of Amer¬
ican capitalism, and it stands us in
good stead not only in the quan¬
measure
As
duction.
World
our
sion,
I
think
act
the
Marshall
of
was
us
in Amer¬
attack
of
in
considerable
a
You
inflation.
have
rope
had
this
cancerous
far
matters,
has
common
as
a
inflation
it
to
spread
and vice
in Eu¬
even
an
other
fects
Plan
suffered
we
succumb
Statesmanship
to
concern
Following the Korean inva¬
worse
growth.
the Free
destiny in
If
goes.
versa.
of
high statesmanship; it
recognition that, the Free Says Prices and Wages Are Stable
World is not an aggregation of
Due to a combination of cir¬
states, each seeking its own des- cumstances, our levels of prices
was
a
MUSffMSlMMi A-
IKE D. SCHARFF
JAMES E.
.
JOHN J. ZOLLINGER, JR.
RODDY
stride.
just getting our second
wind in the marathon.
This
Mississippi—Tennessee
prospect, I
comfort
no
and Arkansas
are
am
our
hard-pressed
Soviet
Municipals
to
Union
is
even
now.
devoting
Active
gives
sure,
enemies
in
The
some
LOUISIANA AND
resources to armament,
though its millions are crying for
the ordinary necessities of life.
You who have
tries afflicted
Securities
world
the
dous
you.
your
menaced
or
MISSISSIPPI
BANK STOCKS
coun¬
AND
LOCAL CORPORATE ISSUES
by two
in three decades merit
assurance
give
Bond Department
wars
seen
Trading Markets
who
30% of its
JUnited States Government
I
am
now
about to
This is that the tremen¬
strength
we
building
are
up
is designed solely to preserve the
Union Planters
National Bank & Trust Co.
Memphis 1, Tennessee
fcONG DISTANCE 218
BELL
WIRE SYSTEM
—
THE BANK WIRE
TELETYPE
peace
or
to meet any attack
launched against us and the other
free nations.
It is not—I repeat
not—designed to wage an ag¬
gressive or preventive war. What
I
-
ME
99
have
said
before, I now say
again, had I the slightest hint that
the strength I am helping to amass
were
war
to be used
I
would
for
a
preventive
resign the office I
we
here, the evil ef¬
to your countries;
we
strength for 10 years, 20
years, for a century if need be,
—
suffering from
tlenecks.
and
the lowest possible cost while pay¬
ing
large
..
.
There is much to be done.
are
is based.
great
.y.
ginning of the Marshall Plan, is
mili¬
our
tary
IFIRM BIDS AND OFFERINGS
resourcefulness...
still in short supply.
I urge you
to do all you can to stimulate the
military production, rising
in World War II.
way to economic
But now once again
should
I
that it is pri¬
challenge
been
part of its income, ingenuity and
den of
the
has
it must devote to survival a
upon
to
that
its
on
betterment.
large and
small, which is carrying the bur¬
again
crisis
upon
farther
so
taper
we
indus¬
seen
the
make
vate American industry,
an
As
versa.
the world by, Soviet
Russia, Western Europe would be
that
production
our
program, some 20% of the gross
national product will be devoted
TENNESSEE
LD-312
•
height of
vice
have
we
the
for
used to
recognize that other
Marshall Plan, Act of High
At the
not
forced
1952.
of Production
OF
Plan
tity but in the quality of our pro¬
production equaling and,
history.
10% of the
industries in the first quar¬
It is
By that time,
mounted
serve
Quotations
had to serve notice
we
during 1953,
developments extend¬ American business to produce at
defense
of
and
guns
of
peak of
We will also have established
Dealers
20%
many
sometime
newer
ing into 1954.
Distributors
is
prospect
dismal. We shall reach
firm Bids
IN
the
exists continues—
right on rearming.
now
shall
we
of
that only
the future.
long the Soviet
The
versa.
production in Western Eu¬
rope mount to
more
than 40%
above prewar levels.
If it were
acquired
•efforts to increase production here
and abroad and by contriving sub¬
now
on, it will not be so
of guns AND butter,
now
case
a
they must preserve
of sound civilian economies; and we
must look farther into
are
vice
States—and
it
we
de¬
Under the stimulus of the Mar¬
tries in the Free World could not
that
too,
United
stand the strain of all-out mobili¬
a year.
and
—
The
States
prosperity of Western Europe is
important to the prosperity of the
We
expenditure
e
Europe
whole.
United
the safety of Western
upon
ob¬
main
suffering an acute working arrangement,
trying to better signs of progress.
this condition by intensifying our
I have mentioned our basic in¬
we
shortage. We
•but
pro¬
period of three
a
roughly $50 billion
a
much
bill
the five-fold
you of
be
period
a
gram of defense mobilization.
years,
The Free World has a long way
that
threshold
further cooperation with
gency, our civilian industry was
Guns and Less Butter
From
ter
obvious
terials
pends
the
trial
ago
has
of
shall
it.
on
guns
manufacturers to
ma¬
100,000,000 tons to 118,000,000 tons
situation, and has tended
-—and nearly half of this increase to dispel some of the worst appre¬
Is
hensions of the consuming coun¬
already
in place.
We
are
We
days
duction
of thousands of tons of these com¬
unified
a
safety
lot of fat and
a
market, such as
television, whose mass pro¬
the
into
modities from our stockpile.
I put no stock in the gloomy
the metal needed
We
have
participated whole¬ prophecies that a depression will
for our expansion program and
heartedly in the work of the In¬ follow the achievement of our
thus is of a temporary nature. It ternational
Materials Conference, peak of strength.
is metal well spent, for it will
which represents an effort of the
The American economy is still
produce huge dividends in new Free World to solve its supply
capable of great expansion. This
production.
v: *':;9
problems internationally. I believe was proved in the postwar period
We are expanding steel produc¬ the IMC has had some
steadying from 1945 to 1950, when it became
pre-Korean figure of
living
are
obvious.
more
had accumulated
we
come,
civilian industry
on our
become
of
New products will
durable goods.
come
tional
abroad. A good part of this short¬
a
pinch
will
evidences
in
great
see
less butter, or
and margarine. Just a few
age is caused by
tion from
country
the
great variety of substitutions now
being made. There will be a big
of
aluminum, cop¬
various alloying higher levels—we have taken tens
must import from
will
this
gentlemen still
you
pro¬
as
its
case
up
prosperity. In the months to
expansion.
rearmament
addi¬
buy
and
the
to
of
gram,
good part of the expansion
a
increase
you
is
States
able
tiny regardless of the others, but
ratner
rearmament
- our
convinced,
absorb virtually
am
and
-
all the available re¬
armament program.
lead.
that
We
United
up
be
totality
going back to
even
so.
Despite
Some
:
point, I should tell
the
sources
Materials "
copper, our imports have actually
declined. The same is true with
the
in
job
shortages
as
we
on
resources.
fnaterials—steel,
per,
country
taken
drains its vast
suffering
that
sponging
doing all this, we are hav¬
headaches. I keep a
ing
will
the
ties
I
country,
without
it to do
Thursday, December 13, 1951
...
Scharff L Jones
INCORPORATED
TELETYPE
NO
180
&
181
-
219
CARONDELET
r'
"(Ground
•:>
Floor)
...y.
ST
,
—L.
D. 235
<***&* MAGNOLIA
'
■
mwaoa
1271
<
NEW ORLEANS
SHREVEPORT, LA.
JACKSON, MISS.
Volume 174
Number 5072
...
The Commercial and Financial Chronicle
(2333)
and wages have been relatively
steady since last spring. The scare
buying of last fall and winter has
IBA GROUP CHAIRMEN
been succeeded by an interval in
which our people have saved their
instead
money
of
vast amounts of
But
inflation
is
ian goods
chasing
subtle
a
It will
,
MICHIGAN
CENTRAL STATES
in¬
and
of civil¬
declines, while the
In
pur¬
the
of
Chicago, Rock Island & Pacific
its
renew
the production
as
CANADIAN
accumulating
things.
unneeded
sidious enemy.
attack
93
commenting
operations
on
from
a
earlier, and despite
year
for the first nine months of 1950 the extraordinary operating exin a recent letter to the road's penses net income was off less
stockholders, Mr. J. D. Farring- than 17%. Earnings on the comton, President of the Chicago, mon stock; amounted to $5.67 a
in Rockv Island & Pacific, again share. A year earlier they had
people
mounts through defense paychecks. I want you to know we
vigilantly
are
'-
v power
Strong
guard./a
blowing
on
winds
are
the world,
i
boos
prejudices
Ancient ideas and ta-
stressed the adverse influence
on
the road's operations and earnings, of the Kansas floods early
last summer. The effects of the
Hood damage were felt keenly
Our nations which have tradi- during the entire
third-quarter,
tionally had the courage and wis- Mr- Farrington stated that during
and
giving
Way before the stern impact of
modern problems.
In many respects, the world is being remade.
are
*
dom to foresee and
de-
encourage
progless ^must
velopment
and
again face the problems of change
and guide it to our betterment.
Cooperation among the nations of
the free world has become a prerequisite
tion,
for
survival.
vigor,
must
be
and
devoted
Imagina-
perseverance
to
Working out vastly
the
of
task
effective
arrangements for unity in action
than
'<
have
yet devised.
lives, our fortunes and
we
Our
sacred honor
confronted
at stake.
are
with
our
We
are
enemy who
hideous philosthe whole world, as he
already, fastened it on the
seeks
ophy
to
fasten
an
a
upon
has
slave
and
more
nations
on
of Eastern Europe
large part of Asia. The
a
the
three
months
period
nearly
been $7.25
share.
a
What is not-
able is that in October, when
the year-to-year rise in gross revenues was narrower than it had
been in the preceding nine
months, net income and share
$3% million was charged to oporating expenses. Total expenses
of a11 kinds attributable to the
Hoods were estimated at less than
$4 million so that virtually the
entire cost had been absorbed by
the end of September.
interim.
It is not to be expected that
earnings for the full year 1951
will equal the $10.20 per common
share realized in 1950. It does appear reasonable to estimate that
at least $8.00 will be reported. At
Naturally, the adverse effects of recent Prk?es, *n the upper half
the floods were not confined to °* "s 1951 range, the stock has
the physical damage to the prop- keen selling at about 6Mj times
erties which were charged off to such estimated earnings. This apoperating costs. There was, also, Pears as a rather modest evaluathe direct loss of traffic during tion of a stock of the investment
the period. This was further ag- caliber of Rock Island. This is
gravated by crop damage with its particularly true in view of the
indirect bearing on traffic over a
Present prospects point
more extended period.
On this
"}e likelihood of oven higher
score the full effects will never be oarmngs in 1952 unless there is a
ascertainable. Mr. Farrington fur- serious letdown in general busi-
stated that it was late in noss.
Reflecting these prospects
September before traffic volume the management recently inenergy
and, returned to normal. Since then creased the dividend from a reguabove all, its spiritual force.
operations have been on a normal lar. $3 ann,ual rate to, a f4 rate;
j ;If the Western
world rises to basis.
This affords a liberal return of
Western
world
this
no
with
doubt about the
to
legacyt
•
is
of the
preserve
*
In the face of the
severe
+u-ec?IluP+rlce J®'ve15'1
handi-
C.
Pitfield
&
Joins
(Special
Holden K. Farrar
-
Alonzo C. Allen
Smith, Barney & Co.,
Chicago
Co.
Limited, Montreal
Blyth & Co., Inc.,
Walston, Hoffman
to The
Financial
upon
in this generathis priceless
been quite encouraging. For the
10 months through October gross
JL?nsei7^u!VG c 9 P 11a
revenues
Skuba has been added to the staff
111 Pearl Street.
-
were
up
nearly
12%
e..
)va®1
„
Underwriters
structure,
Particularly
^
by
the
management,
culminating in refunding of all of
the non-equipment debt
(First
single issue of
Seventy-nine Years of
bonds.
which
has
its
for
and
new
This
is
It
J. B. MILLIARD & SON
1873
liberal
a
Municipals
Securities
Established 1892
A. M. LAW & COMPANY
Member
Midwest
Stock
SPARTANBURG,
Exchange
S.
Long Distance 51
C.
Bell Teletype ZP 67
issue,
sinking fund
the
only
State—County—City
car¬
standing.
849
debt,
other
than
equipments,
serial
Bonds
out¬
shares of 5%
mon.
—
Warrants
Local
com¬
\
,
,
STERNE, AGEE & LEACH
MEMBER
Tax-Exempt Bonds—Investment Grade Common Stocks
ST., LOUISVILLE 2, KY.
Corporation
Securities
preferred ($100
Aside from its conservative cap¬
.
s?
It is followed by 704,-
par) and 1,408,895 shares of
Members New York and Midwest Stock Exchanges
Associate Members New York Curb Exchange
MIDWEST
STOCK
EXCHANGE
italization, the road is well situ¬
ated
of
v.
Dealers
PROPERTIES
Corporate
Owensboro, Ky,
financially.
of
the
end
September net working capital
amounted
to
and cash and
to
As
over
$27
equivalent
$35 million.
BIRMINGHAM
Teletype BH 97
ALA.
Long Distance 9983
Branch—Montgomery 2, Alabama
million,
was
3,
close
illlllllHIIIiillll!
The property has
virtually been rebuilt and
a
stantial
equip¬
ment,
fleet,
amount
including
has
been
sub¬
of
new
a
large
diesel
installed.
Thus,
future capital improvement needs
should be
this
fairly
BOND
THE
CO.
relatively modest. With
background it is felt that
iarge
share of future
a
earn¬
ings should be available for dis¬
S
O
U
T
HERN
tribution in dividends.
INCORPORATED
MUNICIPAL
BONDS
1st FLOOR KENTUCKY HOME LIFE BLDG.
Specialists in
LOUISVILLE 2, KENTUCKY
RAILROAD
SECURITIES
Selected Situations at all Times
THOMAS
GRAHAM, Manager
W.
H.
E.
J.
WOOD HANNAH, Asst. Mgr.
CHARLES
BOHNERT
WILLARD P.
C.
McNAIR
LEWIS
'
TEE
Stubbs, Smith & Lombardo, Inc.
INVESTMENT DEPT.
INVESTMENT DEPT.
,
.
P.
M.
WILLIAM
R.
H.
C.
KING
JBfTt&mmi
CONWAY
P.
GRAGG
BIRMINGHAM
$).
Telephone:
25 Broad Street
JOHNSTON, JR.
New York 4, N. Y.
Telephone BOwling Green 9-6400
Members Nat'l
Assn. Securities Dealers, Inc.
7-3175
17th
'
First Mort¬
new
systematic reduction,
regular
Temple
650
SECURITIES
South Carolina
M.
Investment
ries the low interest rate of 2%%.
Investment Service
Masonic
with
''
Chronicle)
SOUTHERN
TEXTILE
*
Frank
Mortgage and Income bonds) with
gage
419 W. JEFFERSON
is
—
Corporation,
Distributors
Then followed a
period of further substantial debt
a
ESTABLISHED
Daugherty
Financial
Colo.
Street.
organization.
retirement
In Louisville Since 1872
The
.
j
j
to
DENVER,
Walston, Hoffman & Goodwin, Service
drasHcally in the Section 77 re-
down
caps
(Special
HARTFORD, Conn.—Charles R.
of
Detroit
With Inv. Service
Chronicle;
Pe }nm£ mar particularly apFe,
analyst? m tn®. ttocK
Island Picture is its exceptionally
?
J
W.
General
faced during the whole third
quarter the over-all showing of
the road for the year to date has
success
look
It is up ,to us
tion
there
ther
its
Twenty centuries of west-
•
civilization
ern
us.
this
all
challenge,
supreme
issue.
resist
must
creeping paralysis
brains, • resources,
Arthur S. Torrey
earnings were somewhat higher
than they had been in the 1950
Teletype:
BH 287
94
(2334)
The Commercial and Financial Chronicle
ward pressure
especially when
Thursday, December 13, 1951
...
companied by the steady flow of
to support the Canadian exchange
situation in times of weakness, the
is by no means certain, therefore,
that in the event of a fall in ster-
lf*r S.
Canadian authorities have
ling that those who have fled to
the Canadian dollar will reap the
dollars
into
Dominion
acoil
never-
and
mining investments.
/ ''
theless always frowned upon this
contradic-"type of capital influx.
tory movements is not difficult to
In the present instance the deThe reason for these
WILLIAM J. McKAY
By
find.
Since
tne
iixed
peg
the
on
Canadian dollar has been removed
The
violent
recent
fluctuations
the Canadian dollar have
of
siderably perplexed
even
ket
interest
ments
con¬
a
of
the
mar¬
profits
long period
calm stability that implied there
and
and
dividend
plants.
experts.
After
A
disburse¬
has
Canadian
from
'
..'
''
/
branch
"
.
improvement
sharp
U; S.
'
of
-
-
cent weeks has oscillated
between 1%%
and
4%%,.
explanations have been
the
in
violently
thoroughly
Canadian
seasonal
dollar
weakness
on
certain extent
the
when
export
swing and when
oil
mining
and
commercial
time
improvement. At
heavy 'borrowings
also
in, this country on
vincial
a
and
Canadian
municipal
pro¬
account
of
a
strong up-
revised
which
has
of
to
the market
in
a
the vol-
ever
exchange transactions
the
Canadian
towards
on
further lowering of the Canadian
bond
support level probably constituted a step to counter possible
liquidation
holders.
appear
bond
the part of foreign
on
On this occasion it would
that both the exchange and
maneuvers
connected
are
Canada.
Curiously with possible developments in
enough
before the new system sterling. The Canadian dollar has
came into force,
although the pre-, become a refuge currency for
vious unofficial market in New those who
fear devaluation of
York was exceedingly narrow, the
sterling and other European curpresent market despite its official rencies.
Consequently the Cana^
character is now more limited than dian
authorities are
the
establishment
of one official rate the New York
speculative
currency
conversion
into
difficult
as
virtually all the by boosting, the rate
investment
and
the
making
Prior to
financial
their
possible
as
of the Cana-
opera-
full "benefit,
During
little
the
more
section
prices
week
there
activity in the
the
of
bond
were
a
market
but
mostly
unchanged
sharp rise of the
Following' the
Canadian
was
external
dollar
there
was
some
liquidation of internal bonds but
the wild gyrations of the rate
dered this type of operation
tremely
difficult
Stocks after
to
renex-
execute!
display of strength
a
rising volume of trading finally turned lower. The feature
0n
a
0f the market
the strong de-
was
mand for Canadian Pacifies which
reached
high point follow-
new
a
ing
the
announcement
of
the
5-for-l split of Consolidated Min-y
jng
arid Smelting stock
payment of
dend
C.P.R.'s
bonus;
Western
and
the
large year-end divi-
a
oil'lands
interest
in
naturally also
contributes to the current investor
dian dollar. Furthermore, the cusdemand for this stock. A A*
and* a;
tomary unwillingness of Canada
large proportion of the^teurist- to hold
sterling balancesiias been
.:-V fr;';' V ■ '
W
funds, Under present conditions;- heightened by recent fears of an:
lih^S. uCFdlllOn lO AOIIlii
despite the supposed freedom of imminent fall in the value of the
Canadian dollar operations, all the
pound.
As
all
sterling transac-
tions
PrBscatt.Wriaht,Snider Cn.
BANKER5
in
Canadian^dollars
commercial transactions must still
^
Established 1885
■
system,
concentrated
greater extent than
ume
ef-
more
exchange
maiket transacted
INVESTMENT
has" b'eeh
result of the operation
as a
the
ever.
should have exerted
by heavy December
authorities
of
Exchange. ternal. fconds,v although the recent
control
fective
ister any notable
that
to
account, which is aggravated to
in full
have
activity is at its height. During
that period, however, the Cana¬
dian currency unit failed to reg¬
year
is subject
is
would
tourist traffic and
convincing.
Normally at this period of the
the
season
given for
abrupt rise of Canadian funds
week but none so far
the past
has been
months
summer
Various
dollar
Canadian
This
oc¬
Canadian
casioned little surprise during the
re¬
the
of
Control.
simplified and rendered
5%
discount level, the rate in
tions
the
would be little variation from the
attitude
speculative
exchange level of the currency-operations does not, however, pribeen dictated by the
operations in dp-.
the
of
repatriation
fensive
be effected
ket,
MUNICIPAL and CORPORATION BONDS
the Canadian
on
although
large
a
mar-
of
volume
the^business is of U. S. origin that
would normally be transacted by
PREFERRED and COMMON STOCKS
U.
S.
banking institutions
half of their customers.
essarily
Specializing in Unlisted Securities
hard
transfers
the
of
core
on
This free-
the
sterling
exchange trans-
Throp Npui PprltlRr^
Canada
have
pressure
caused
the
on
the
the
at ^bis time is
wjth
the
an
also well
**cnange
of
rontroi
of
a
iwiibiwi^
r;
NEW
HAVEN, Conn.—Chas. W.
upward Scranton & Co., 209 Church Street,
dollar
The ap-
Canadian
desires
E„chanffp
sales
Canadian
in terras of* U.< S. dollars.
of
B1V!nf
effected
are
dollars
in
do'lar
accord
the
Canadian
<.inrP
members of
Exchange,
Edward
the New
York
Stock
Jan.
will
admit
on
A.
Johnson,
and
1
Burgess, Frank.. M.
Edgar B. Grier to
nrevi-"
partnership
in ^Canadian dollars, and
control since on preyiresult the Canadian market'*Pus .occasions a pronounced weak-
actions
as
in
'
be.->pfeciatian
Canada
to
tions
against U. S.
v
Joins Waddell & Reed
■
916
BALTIMORE
has
AVE., KANSAS CITY 6, MO.
Teletype—KC 262
Telephone VICTOR 3143
i%' y.V-
overwhelmingly competi- ness of sterling has brought specposition with regard to fG ulative pressure to bear on the
an
tive
(Special
to
KANSAS
,
exchange1opSnsfltThe HnS" f3"8'1'311 dollar which normally P. Brown
Hf
analysis,
market
therefore,
in
New
shadow
mere
counterpart
the course
is
ments
the
,
its
follows the
course of sterling.
i
can
Corporation and Municipal
Securities
of
/VAN
influence
—
State and
.
of
Control.
the
It Inc., 1012 Baltimore Avenue,
apparent
unsPasonal sharp
of -the
Canadian
dollar
betted
be
Municipal Bonds
The
Bonds of Federal Agencies
can
understood
motives
of the Exchange Control*
permitting this development at
this particular^time.4 As it was
Bell
Teletype SL 553
Private
Bond
Wire
to
'
New
Department
in
York
Correspondent
Telephone
The
Bank
to
—
Long
14
Chicago—Enterprise
Wire
Distance
Wall
Street
84'.0
System
clearly indicated when the Cana¬
Steffi Brofes
MEMBERS
MIDWEST
STOCK
attitude with
authorized
.the
regard
to
BOND
so-called
DEPARTMENT
speculative transactions in Cana¬
EXCHANGE
dian
1009 BALTIMORE
authorities
"freeing" of the dollar, the official
Go.
t
Teletype KC 273-4
dollars
Although,
Grand 6460
is distinctly critical.
for example, U. S. in¬
vestment
AYE., KANSAS CITY 6, MO.
in
internal
Canadian
bonds has constituted
OMAHA, NEB. —CHICAGO, ILL.
a
definitely
Mercantile"^®!:' Trust Company
LOCUST
constructive
factor
which
-
EIGHTH
SEVENTH
served
Direct Private Wire to Chicago Office
-
ST CHARLES
Saint Louis 1, Mo.
CANADIAN BONDS
Government
Retail Distributors
of
Provincial
Corporate Securities
^
SIXTY'ONE YEARS
Municipal
Corporation
OF
CANADIAN STOCKS
INVESTMENT
BANKING
Members
,
.
'
NEW YORK STOCK EXCHANGE
NEW
YORK
MIDWEST
CURB
STOCK
'
"
'
A. E. Ames & Co.
ASSOCIATE
INCORPORATED
EXCHANGE
Two Wall Street
h
New York 5, N. Y.
111 West 10th Street
Direct private
wires
cities
1!
and
Kansas City 6, Missouri
to
to
WORTH
4-2400
NY
1-1045
correspondents in principal
our
Stifel, Nicolaus & Company
INCORPORATED
branch office:
Fifty Congress .Street
Wall
St., New York
Cordley
United States Government Securities
Canadian
Boston f>. Mass.
ST. LOUIS
fp'
is with Waddell & Reed,
on
when consideration is given to the^
dian
"*•
Chronicle)
only
be ascribed directly to
the
therefore
Mo.
<5t the: Canadian dollar
operations
mystery
rise
A
.•
Financial
CITY.
Canadian
entirely negligible. "*; *
Exchange
:
exchange
is
its
Thus the recent exchange move-;
UNDERWRITERS and DISTRIBUTORS
,
and
the
York
of
The
CHICAGO
160
Number 5072
Volume 174
Continued
jrom
page
V. The
.
Commercial and Financial Chronicle
(2335)
reported
output
11
for
the
corre¬
spond period two years ago.
Carloadings
The State oi Trade and
Industry
Advance 15.5%
Post-Holiday Week
;
IBA GROUP CHAIRMEN
in
WESTERN
NORTHERN OHIO
OHIO VALLEY
Loadings of revenue freight for
the week ended Dec. 1, 1951, to¬
tons, this ■ week,,. American Iron ing power, may be actually worth
taled 821,776 cars, according to
and Steel Insdittite announced Dec. 43 cents or $1.01
depending, ori
•
95
PENNSYLVANIA
the Association of American Rail¬
th^t high what you buy. According to the
roads, representing an increase of
been Northwestern's survey, if you buy
•rebelled during a calendar year, ; food, the 1951 dollar is worth 110,329 cars, or 15.5% above the
:
The one hundred millionth ton only 43 cents compared with the preceding holiday week.
The week's total represented an
will be poured by one of the steel prewar dollar.
If you are build-r¬
increase of 81,611
cars,- or
11%
industry's hard working furnaces ing a home the 1951 dollar buys
above the corresponding week of
on
Thursday, Dec. 13, according to only 44 cents worth of material
1950 when loadings were reduced
an estimate by the Institute, based
compared to 1940 when a house
by severe weather conditions in
upon
average output.
An hour that costs $10,000 now .' could be
Eastern States., and a rise of 127,later
steel
production
will
be bought for $4,400. As rent money
853 cars, or 18.4% above the com¬
about 12,000 tons above the mark, the survey reveals today's dollar
parable period of 1949, when load¬
Tor the steelmaking furnaces this is worth 77 cents but on the other
ings were reduced by the coal
year have produced an average of hand it will buy only 48 cents of
strike.
'
material to equip a home.
about 200 tons a minute.
10.
Never/nefore
has
.steel ^-production
mark
'
,
.
When
the
100,000,000th
Today's dollar has shrunk to 50
ton
Auto
Output Declines Slightly for
*
will cents for purchases of clothing or
full coal but it will buy 65 cents worth
Gas and electric rates are
year 1950, previously the year of of ice.
record output, by more than three approximately what they were
is made, steel output of 1951
exceed the production of the
Latest
Co.,
Combined
r
million tons.
tion
.
the
has
The
made
been
before the
rise in produc-
possible
consumer
by
scale programs of ex¬
pansion and improvement begun
even
gas
will
which
1951
in
have
been
Higher.
the
be
41st
before
week
lar
in
in
price index shows a de¬
totaled
one
instance
operations
capacity or
Five other weeks* opera¬
Electric
of
Output
Historical
Soars
in
High
to
States
Automotive
(revised)
previous
compared
of
units, and 162,-
week
but
N.
Singer,
Fisher
Deane
&
Scribner, Pittsburgh
Wallace Brokerage Formed
WALLACE,
lace
Idaho
Brokerage
formed
with
The
has
been
Co.
offices
Courts Adds
Wal-
510
at
Bank
(special
to
the
COLUMBUS,
M.
to
financial
McGehee
Staff
engage
in
securities
a
Ga. —Mrs.
is
"
Ellen
associated
now
with Courts & Co.,
;
chronicle)
19 East 12th
Street.
37%
nearly
below the like week of last
fiiaaiiiiiMMiaiitiMiMiiiMMiaiioioiMUMMiaiioiiaiMMi;.
were between 99 and 100%
'ot .capacity,
I
Charles
Boyce,
and truck produc¬
car
year;
floliday Week ■
This brings the total U. S. A, pas¬
The amount of electric energy
three between 98 and
senger car production to date this
99% of capacity and one week's distributed by the electric light year to
5,138,500 against 6,326,000
and power industry for the week in
laverage was 96.7% of capacity.
the
corresponding period in
!
ended Dec. 8, 1951, was estimated 1950.
The
production of trucks
The Fluctuating Value of the
at
7,443,964,000 kwh., according this year to date of 1,353,000
units,
Dollar in Purchasing Power
to the Edison Electric Institute.
tions
&
and
Reports,"
units,
117,693
Passenger
New
Bros.
Louisville
Clevela7id
Inc.,
tion last week in the United States. Street to
business.
was only 236 cars more than the
Post-
Stein
&
past week, according
795 units in the like week of 1950.
worth
$1.01.
Milton S. Trost
Shepard
Shepard
pro¬
the previous week's total
119,962
steel
100%
vehicle
United
the
"Ward's
with
electricity item than it
1940, making the 1951 dol¬
this
the
to
and
did in
"the outbreak of the war in Korea.
This
The government's
in
Canada
cline of 1 % less for the combined
large
J by, steel companies
war.
duction
motor
0.
Robert
Prescott,
Week
iAn
BROKERS
interesting
taken
%'-<
*
Business
||
Established
p
1874
1
I
DEALERS
;;
tops the corresponding 1950 period
of 1,344,000 trticks.
"Ward's" expects that the rec¬
was
by
tional
■
..
(
31,729,000
survey under¬
the Northwestern Na¬ kwh. less than that of the pre¬
Insurance
Co. indi¬ ceding week; 535,333.000 kwh., or ord
high of 1,369,000 trucks built
cates that "the cost of living dol¬ 7.7% above the total output for in
1948
will
be
surpassed next
lar," generally rated as worth the week ended Dec. 9, 1950, and week. The 1951 production to date
about 54 cents in prewar purchas¬ 1,562,604,000 kwh. in excess of the of
1,353,000 already exceeds the
The current total
J»-
and
Life
1950
I. M. Simon & Co.
MEMBERS
output of 1,344,000 trucks.
For the United
advanced
put
Chicago Board of Trade
estimated
an
taled
Co.
&
week
and
States, against 89,762
23,063
2,882
New York Curb
last
week
and
25,044 trucks
and
A. G. EDWARDS & SONS
in
Established
and
and
trucks
Midwest Stock
and 1,750 trucks against
cars
week
(Associatei
Municipal Bonds
trucks
cars
cars
4,347
Listed and
in
2,790
6,457
the
trucks
last
corresponding
in
dustry
Wire to Carl M. Loeb, Rhoades & Co.
has
built
approximately
automobiles
passenger
the last
3 years.
61
NEW
Members
Broadway
YORK,
Tel. WHitehall
N. Y.
New
Wall
AND
OLIVE
-
St.
SAINT
1st
New York, N. Y.
LOUIS
Nat'l
New
Alton,
ures
Dec.
Illinois
totaled 136 in the week ended
148 in the preceding
6, and
week, Dun & Bradstreet, Inc., re¬
were off moder¬
Stock
York Curb
Midwest
Commercial and industrial fail¬
Bank Bldg.
York
Myers
Exchange
Chicago Board of Trade
CLAYTON
Tel.
5,
Bankers Mortgage
N. Y. Coffee & Sugar Exch.
MO.
HOUSTON
Tel.
Commodity Exchange, Inc.
Delmar 6692
7826
Exchange
Stock Exchange
Forsythe Blvd.
8015
Bldg.
SPRINGFIELD, ILL.
Tel.
3-9394
Business Failures Hold Steady
FOURTH
1, MO.
Bell Teletype—-SL 47S
all, the nation's auto in¬
16,900,000
61
1887
EIGHTH ST., ST LOUIS
1950
Private
All
in
NO.
Telephone CEntral 4744
1,607
and
cars
409
week.
Exchange
Exchange House
the
Canadian output is estimated at
Exchange
ately from
a
year
when
ago
CEntral
8831
170
occurred, and from the 1949 total
of 191, and were 54% below the
level of 297
prewar
in
the
com¬
parable week of 1939.
Wholesale
st.
Price
Food
;//,/v.-
/./■.'
of /\v, ,U':
:
ments
'.-.///'
Our Trading
Ago
Although individual price
:
And Invites Your
food
price
index,
complied
by
Dun & Bradstreet, Inc., fell 3 cents
INSTITUTIONAL and CORPORATION
last
Dec.
week
4.
current
BONDS and STOCKS
to
The
figure
sponding
at
stand
decline
below
the
level
year-ago
$6.68
brought
"If there is
on
the
corre¬
for
Department Is Active In All
Local Listed And Unlisted Securities
move¬
mixed, the wholesale
were
markets
Index
Recedes From Peak Level of
Week
louis
We
a
Market
Inquiries.
we
can
find it"
Specialize In Orders For Banks And Dealers
the
first time since the week of April
★
★
-
4, 1950. The drop from last year's
index of $6.77 was 1.3%.
★
The
index
represents
the
sum
Edward D.
total of the price per pound of 31
foods in general use and its chief
function
O.
\
■
,t
J J
H. WlBBING & Co.
MprpERS MIDWEST STOpjK;EXCHANGE i
408
Long
Olive Street,
Dist.*jj».;i(. 71
■
sale
"' '
show
the
The
158
tinued
.
,
MEMBERS
general
New York Stock Exchange
prices at the whole¬
Chicago Board oj Trade
Eases Slightly in Latest Week
general
to
hold
price
in
level
narrow
Continued
on
con¬
limits
page
96
1871
'
level.
Wholesale Commodity Price Index
f
Teletype SL
to
trend of food
St. Louis 2, Mo.
*
is
Jones & Co.
ESTABLISHED
300
North 4th St.
Central
7600
Midwest Stock Exchange
New York Curb Exchange (Assoc.)
Saint Louis 2, Mo.
Bell Teletype
SL 593
Direct Private Wire Connections with
Josephthal & Co., New York and James E.
Bldg.
2, TEXAS
ports. Casualties
UNDERWRITERS and DISTRIBUTORS
1
cars
trucks
the comparable 1950 week.
New York Slock
Unlisted Securities
Oldest Stock
Louis'
SL 288
cars
129,687
Distributors
(Associate)
current
of 90,416
built in
22,645
United
Members
made up
Curb
ST. LOUIS 2, MO.
3350
St.
the
for
output
was
and
Under writers and
Central
154,731 units.
Total
York
New
re¬
vised total of 112,825 units. In the
like week of last year output to¬
Newhard, Cook
Stock Exchange
Midwest
States, total out¬
to
113,061 units from last week's
York Stock Exchange
New
Bennett & Co., Chicago
The Commercial and Financial Chronicle
m
(2336)
Continued from page
The State of Trade and Industry
Export business in the bread
wholesale
compiled cereal was the heaviest in some
time;
buyers
included
Great
t>y Dun & Bradstreet, Inc., de¬
tained slightly to 311.23
as of Britain, Germany, Italy, Austria
Dec. 4, from 311.87 a week earlier, and other countries. Corn finished
end compared with 302.79 on the slightly higher with much of the
buying influenced by the general
like date a year ago.
belief that damage to the quality
Grain prices scored further ad¬
last
daily
The
week.
commodity price index,
vances
in
the past week
futures on
as
trading
the Chicago Board
ef Trade reached the
this
of
highest level
weeks
oats
ceipts
frith prices touching the highest
ments
particularly
were
been
few
a
stocks
of
current re¬
large,
light and price move¬
irregular.
were
tinued
for the new crop year.
Although
ago.
remained
active
was
has
crop
supposed
than
greater
in many weeks.
Wheat
year's
show
to
Rye
con¬
independent
influenced
buying
with
strength
95
by strength in Winnipeg. Average
daily purchases on the Chicago
Board of Trade last week totalled
51,000,000 bushels, comparing with
40,000,000 bushels in the previous
week, and 44,000,000 in the cor¬
responding week a years ago.
Flour
prices
While inventories are said
week.
be
to
and
mixed
were
little net change for the
showed
remained
flour
wheat
Winter
hard
of
bookings
light,
for fill-in pur¬
small and mostly
Roaster demand for coffee
light. Futures showed some
at the week-end as the
poses.
was
easiness
result
liquidation and hedge-
of
induced
selling
rivals
coffee
of
f
Current
ar¬
reported
were
.
in
weakness
by
market.
actual
the
fairly heavy. Cocoa made further
advances last week. Buying re¬
flected
good dealer and commis¬
sion house demand and a lack of
NORTH DAKOTA
MINNESOTA
SOUTH DAKOTA
MONTANA
MUNICIPAL AND STATE BONDS
selling
pressure
primary
house
the part of
Current ware¬
on
sources.
of
stocks
were
cocoa
re¬
ported at 122,442 bags, comparing
with 98,733 a year ago. Quotations
in
Chicago
livestock
markets
moved
generally lower during the
week.
"
Hog marketings at major west¬
ern
TWIN CITY STOCKS
MINNEAPOLIS, MINNESOTA
Phone:
TWX MP 163
ATlantic 3475
terminals reached the largest
volume since February, 1944.
ALLISON-WILLIAMS COMPANY
Activity in domestic cotton mar¬
kets
increased
the
past week.
Prices continued firm and higher,
buoyed by the prospects of larger
exports and a further tightening
in the supply situation. Buying
was
also influenced by a sharp
spurt in sales of cotton gray goods
late in the week and the possi¬
bility that the government might
reimpose export quotas at some
date
future
INVESTMENT
the
was
increased
weeks ended Dec.
and
some
Despite
sales
Specialists in state and municipal bonds of
sharply below
next
official
lamps,
■
rise,
the
Regional
the
that
of
a
estimates
levels
New
of
a
four
1, 1951, an in¬
registered above
was
level
New Orleans
Exchange
Reelects Officers
ago.
year
varied
year
England
+1
to
from
by the
ago
Southwest
and
+5, Midwest
South
+5 to
+6 to
+10,
+9, and Northwest
+ 4 to +8.
Slight declines in the purchas¬
ing of
some
goods were
than
more
offset
by increases in the demand
for other goods; the total dollar
volume
of
wholesale
rose
in
volume
slightly above that in
the
ago.
was
the
trade
moderately
week.
Order
corresponding period a year
Re-orders for holiday spe¬
cialties
and
numerous
were
mediate deliveries
Macrery
im¬
frequent¬
were
"
Department
New
v:
sales
store
a
week
ended
Dec.
John
B.
Shober
Orleans, La.—At the An¬
Stock
as taken from
the Federal Reserve Board's index
for the
B. Wheeler
nual Meeting of the New Orleans
on
country-wide basis,
Exchange, held on Dec. 3,
1951, the following officers were
reelected:
1, 1951,
■
;
.
•
.
M. B.
Wheeler, Wheeler & Wool*
increased 5% from the like period
folk, Inc., President; John B. Sho¬
of last year. In the preceding week
an
increase of 11%
was
registered
above the like 1950 week and
an
increase of 6% for the four weeks
ended Dec.
1,
1951. For the
Retail trade sales in New York
last
week
1 arge 1 y
were
due
to
last
disappointing
an
In
Woolfolk
President;
E.
Schweickhardt
&, Shober,
Vice-
R.
Schweickhardt,
&
Co., Treasurer.
Elected to the Governing Com*
mittee
were:
Larz E. Jones, Walter D. Kings¬
ton, W. D. Kingston & Co.; George
H. Nusloch, Nusloch, Baudean &
unseasonable Smith; Russel 1 C1 ark, Merrill
Lynch, Pierce, Fenner & Beane.
the
preceding
increase of 14% (revised)
year.
ber,
year
to Dec. 1, department store sales
registered an advance of 4%.
week
season
similar
the
+2 to -f 6, East and Pacific Coast
of
was
the
for
following percentages:
1951 loan stock continued in low
through Nov. 21
but
a year ago.
on Wednesday of last week
estimated to be from 3 to 7%
higher than
of 2%
from
of a year ago. For the
to date volume advanced 5%
from the like period of last
year.
Total retail trade in the period
was
1950,
year
the
remained
sets
of
crease
ended
volume. The total for the
Minnesota, North Dakota and South Dakota,
Berkeley Jackson Opens
HUNTINGTON, N. Y.—Berke¬
ley W. jhckspn is engaging in the
securities business from offices on
Huntington
&
Bay Boulevard.
He
formerly with Mallory, Adee
was
Co.
789,800 bales,
representing an increase of about
and II. S. Government bonds
14,000 bales for the week.
Christmas
Spurred By
MP 178
MAIN 6281
most
&
—
DN 369
Gregory
PETERS, WRITER & CHRISTENSEN, INC.
retail trade rose steadily in
parts of the nation in the
DENVER 2, COLO.
Loveland, Colo.
Wednesday of
Dun & Brad-
period ended on
last week, states
wire to Bonner
Sales
Heralding the coming of Christ¬
mas,
BELL, DN 290
Private
Momentum
Gains
Volume
Trade
—
moderate
a
television
of
were
incidental
furniture,
small applianecs.
glassware,
crop
MINNEAPOLIS
TELETYPE
demand
recorded
week
estimate should show a fur¬ weather. The sales volume was
ther sharp drop. Sales of cotton 8% below the 1950 period and
in the ten spot markets totalled about even with the 1949 week.
464,700 bales last week, the largest
According to Federal Reserve
for the season, and compared with Board's index, department store
266,100 the previous week, and sales in New York City for the
247,000 for the same week a year weekly period ended Dec. 1, 1951,
ago. Entries of the staple into the declined 3 % below the like period
DEPARTMENT
FIRST NATIONAL BANK
OF
if
gave added impetus to Yule shop¬
ping. Among the merchandise in
ly requested.
;
,
..Thursday, December 13, 195}
Inc." in its current trade
Shoppers spent moder¬
ately more than in the similar,
week last year when Christmas
street,
Dealers in
summary.
Kalman & Company, Inc.
MEMBERS
MIDWEST
STOCK
EXCHANGE
trade
was
cashing
at
record level.
a
of
Corporation Securities
The
and
unprecedented
checks,
an
Municipal Bonds of
amount of Chritsmas Club
attractive
promotions,
and
ex¬
shopping hours at some
tended
UNDERWRITERS & DISTRIBUTORS
stores
CORPORATE & MUNICIPAL SECURITIES
*
helped
in either
the
the comparable
Mcknight building
ever,
teletype—
mp
the rise
tered
ENDICOTT BLDG.
ST. PAUL 1, MINN.
on
ST P 93
ST P
117
COLORADO
ARIZONA
MONTANA
NEVADA
apparel
NEW MEXICO
UTAH
WYOMING
prior week
or
1950 week. How¬
was
generally
items suitable
as
cen¬
gifts.
The demand for men's suits and
TELETYPES—
120
holiday
more
Shoppers bought
than
MINNEAPOLIS 1, MINN,
spur
to
buying.
(Corporate Dept.)
remained
coats
(Municipal Dept.)
rather
torpid.
the most highly favored
Among
merchandise
lingerie,
loungewear, haberdashery, acces¬
SMITH, POLIAN & CO.
were
OMAHA, NEBRASKA
sories and children's toggery.
Food
purchasing recovered
noticeably from the slackening in
demand that followed the Thanks¬
giving feast. Declining egg prices
Piper, Jaffray
&
Established
1895
Hopwood
induced housewives in
to
augment
buying. Pork,
poultry and processed meats were
generally favored over the expen¬
reduced
COMMERCIAL PAPER
reflected
table
prices.
frozen
foods,
BILLINGS
in
a
in
The
utility stocks.
rise in vege¬
demand
particularly
for
vege¬
tables and citrus
other principal
juices, remained
higher than that of a year ago.
Exchanges
There
MINNEAPOLIS
organization specializing
supplies of fresh produce
were
Members
and
A retail
sive cuts of beef and lamb. Frost-
STOCKS—BONDS—GRAIN
Neir York Stock Exchange
parts
some
their
ST. PAUL
GREAT
FALLS
was a
seasonal rise in the
interest in many household goods,
but retailers' receipts still did not
match the unusually
a
year
ago
when
high level of
scare-buying
Teletype
—
OM 180
Telephone
—
J A 5065
,
'>
(Volume 174
Number 5072
.
,
The Commercial and Financial Chronicle
.
(2337)
Martin I,
King Pres.
Of N. Y. Boys' Club
;
Bankand Insurance Stocks
King, President, at
By H. E.
meeting held
Boys' Club of New York,
10th
Street,
City.
In
York
.
1920, Mr.
King
The dividend actions
by
various
banks
being taken
both
in
New
York City and
throughout the
country continue to dominate the
interest
of
bank
investors.
stock
formed
the
Foreign
Exchange and
Over
Counter
-
s e-
curities firm
of
King
&
King, from
Martin I. King
must
be
approved
re¬
by two-thirds of the stockholders
1947.
and will be considered at the an¬
now
associated
Sutro
120 Broadway, New
York, members of the New York
Exchange
and other lead¬
nual
meeting to be held
1952.
•
Secu¬
rity profits and recoveries added
time
that
shares
will
made
the
after
a
the
at
dividend
the
be $5.00
annual rate of
8,
same
the
on
dividend
stock
quarter or at the
$20. This
new pay¬
ment,
:
equivalent to $60 on the
stock, would amount to
reduction, as the current pay¬
present
a
V.-P. of Sills, Fairman
ment is $80 a share.
*
W. G.
EXETER,
N.
The
other
Sills, Fairman & Harris pre¬
that
operating
pared to enter its 20th
year
of op¬
eration, which will start Dec. 29
on
the
anniversary of the
com¬
pany's founding in Chicago.
H.—W.
G.
merling and Associates has
&
Co.,
members
1517
of
the
Locust
Street
and
York
New
Philadelphia-Baltimore Stock Ese*
changes on Jan. 1.
With Pacific Coast Sec*.
LOS
H.
Sim-
Financial
ANGELES,
Chronicle)
Calif.—Craig
Taylor has become
with
been
Pacific
Company,
formed to engage in the securities
Street.
Coast
634
He
associated
Securities'
Operating earnings for the
rent
year
mated
at
South
Spring
$65
significant factor
past several
sufficient
payment
to
of
earnings
cur-,
esti¬
Security
share.
a
recoveries
will
add
another $8 for total income of $73.
Gross earnings this year will be
higher than in 1950. While oper¬
ating
expenses
for
son
the
also
may
increases
some
the
show
primary
earnings
lower
rea¬
Caldwell Phillips Co
and
dividend is the higher Federal in¬
FIRST NATIONAL BANK BUILDING
cover
$80.
for
the
SAINT PAUL 1, MINN.
The change in capital will be
accomplished by a transfer of $20
Bell
THE FIRST NATIONAL
Another major dividend change
the
System Teletype ST P 139
INVESTMENT DEPARTMENT
by $2,000,000 from $11,000,000 to $13,000,000.
among New York City bank stocks
was
that announced recently by
Manufacturers
dividend
While
-
taxes.
come
was
have not been
years
previously with
officially
are
and
was
Hill, Richards & Co.
million from undivided profits to
justment in dividend distributions.
The acquisition was announced
as
partnership in W. H. Newbold**
(Special to The
The dividend
„
increas¬
Simmering & Assoc,
reduction had been capital with
CHICAGO,. 111.—Sills, Fairman
surplus remaining
& Harris, Chicago and New York talked about in the financial com¬ unchanged.
Total capital funds
investment banking firm, has ac¬ munity for quite some time al¬ will amount to $141,500,000 and
quired the organization and busi¬ though the exact amount and tim¬ consist of $30,000,000 of capital,
ness of Kenneth Van
$100,000,000 of surplus and undi¬
Sickle, Inc., ing were in question.
investment bankers with offices
First National has been
yielding vided profits of approximately
in Emporia;v.Salina, and
:;
: ;
Wichita, considerably over 6% which is $11,500,000.
Kans., it was announced by D. J. substantially more than available
One of the important considera¬
Harris, President. .Kenneth A. on the other major New York tions in this change in capital is
Van Sickle, principal in the Kan¬
that it will enable the Bank, as
banks. This in itself would have
sas firm, has been appointed Vicea National bank, to raise its legal
indicated the possibility of an ad¬
President
of
Sills, Fairman &
loan limit
Harris.
to
Son
an
fully covered. In 1949 total
business.
earnings amounted to $79.06 or
profits
announcement
Dealer Relations Department.
Kenneth Van Sickle
on Jan.
s
0£ possibly more significance to
stockholders was the
additional
ing exchanges, as Manager of their
"
to
slightly less than the dividend.
proposal
is
Bros. & Co.,
Stock
amounted to $68.56 a share.
The
m
in
'with
ings
example net operating earn¬
in 1950 for First National
was
He
he
add
years.
For
pay a 200% stock dividend to
effect a three-for-one stock split.
tired
which
to
ing number of stock dividends as
enough additional income to equal, banks capitalize a portion of sur¬
the dividend the margin has not
plus and undivided profits built
been large.
up in recent
Tuesday, Dec. 11 that the First- $14.68 a share for total earnings
National Bank of New York plans of $83.24. Thus, the $80 dividend
to
PHILADELPHIA, Pa. — John
Sargent Newbold will be admitted
larger de¬
desirable
This could result in
on
the
-
The most dramatic action along
this line was the announcement
W. H. Newbold's Son Co*
To Admit John S. Newbold
in order for banks
accommodate these
mands, it is
capital.
This Week— -Bank Stocks
Avenue A and
,
JOHNSON
a
New
,
two years and
to
The Alumni of The Boys' Club
of New York elected Martin I.
at The
undivided profits to capital. The
needs, of business for financing
have expanded
sharply in the past
BANK OF SAINT PAUL
Trust.
Beginning
with the payment to be made on
U. S. GOVERNMENT, STATE
security Jan. 15, 1952, Manufacturers Trust
profits and recoveries have added
will
distribute
quarterly
65
cents
a
compared
as
share
with
AND
60
cents
previously
crease
MUNICIPAL BONDS
will put the stock on an an¬
nual
basis
of
paid.
$2.60
This
in¬
compared
as
TELETYPES
with $2.40 paid in 1951.
'
New
STONE, MOORE & COMPANY
■
=INCORPORATED
S.
NATIONAL
BANK
also
An- extra
re¬
of
$1
a
ST p 132 TRADING DEPARTMENT
share to be paid Dec'. 24 will bring
1951 up to $5.
This will compare with $4.50 paid
last year
DENVER 2, COLORADO
tra
when only
payment
a 50-cent
made.
was
ex¬
Outside of New York City, there
Teletype DN 580
have
been
number
a
payments
ERNEST E. STONE
Underwriters and Distributors
banks
of
which have enlarged their distri¬
butions either through larger cash
WM. J. MAY
ST P 159 MUNICIPAL DEPARTMENT
ft
total payments for
BUILDING
Telephone KEystone 2395
has
Trust
stockholders.
INVESTMENT BANKERS
U.
York
cently increased its distribution to
3
of
Corporate and Municipal Securities
by stock dividends.
or
First National Bank of Chicago
to pay
proposes
HOWARD J. 1IANNON
dend.
Dec.
18
of
the
on
the
approved
rate
20% stock divi¬
a
Stockholders
one
each
five
Jan.
1,
to
are
proposal
held
1952
to
record Dec. 7.
share
would
be
for
for
stockholders
of
The cash dividend
share, which has been paid
the past several years, will be
continued
ber
UNDERWRITERS, PARTICIPATING DISTRIBUTORS
of
shares
There
& DEALERS IN MUNICIPAL AND
the increased
on
have
to
be
been
Shares
made
of $8 a
FOR 37 YEARS
Mutual Funds
if
at the
and
distribution
additional
vote
SHAUGHNESSY & COMPANY. INC.
First National Bank Building
ST. PAUL
1, MINNESOTA
num¬
outstanding.
a
number of
other instances where banks have
declared" stock
CORPORATION BONDS
transferred
a
dividends
and
portion of surplus
or
PREFERRED & COMMON STOCKS
OUR
BULLETIN
BANK STOCK
OUTLOOK
Wachob- Bender Corp.
!
OMAHA.
Available
on
Laird, Bisseli & Meeds
212 South 17th Street, Omaha
2, Nebr.
Telephone—Ja. 4204:
Teletype—OM 283
Members
New
York
Stock
Members
;
New
York
Curb
120
■
jtnK-"
Building, Lincoln 8, Nebr. !
;
Exchange
Exchange
BROADWAY, NEW YORK 5, N. Y.
Telephone:
Lincoln Office—Trust
Bell
BArclay 7-3500
Teletype—NY
(L. A. Gibbs,
Manager
1-1248-49
Trading
Harold E. Wood & Company
Investment Securities
request
Dept.)
Specialists in Bank Stocks
FIRST NATIONAL BANK BUILDING
SAINT PAUL,
ar
MINNESOTA
98
The Commercial and Financial Chronicle
(2333)
Continued from page
question
7
first at
time the
Whenever there have
was
the Cabinet,
in
established
System
1913.
Chairman
of
the
Governors be made
Federal Re-
serve
The Federal Reseive: Bulwark
the
debated and decided
was
the
that
so
a
Board
of
member
as
dependence, of
of
serve
Of Onr Private
must
derstanding and approval of what
trying to do.
reaching this happy
necessarily
with
cerned
be
deeply
of
some
the
con¬
on
issues
tee, gave its intelligent attention
In
if be¬ which are raised by this study. I to this problem two years ago, it
lated resolution of some of our should like to touch on two pr came out strongly on the side of
the angels.
postwar difficulties—-getting rid three of them briefly.
'
of our split personality—we in¬
The core of the problem as it
Question of Federal Reserve
curred considerable displeasure in
has recently presented itself is the
Independence
some quarters, however.
A study
necessity for coordinating- debt
First, there is the question of management and 1 credit'policy,
of the Federal Reserve System by
a
subcommittee of the Congress, the independence of the Federal Debt management and credit pol-'.
which to a certain extent reflects Reserve System. That word "in¬ icy cannot work separately^ but
were
we
-
President with too many
this
displeasure,
When
way.
making
however,
we
we
can
that its work will be
not
thorough and
and
this
credit,
come
its man¬
always latent
country
and
to the surface.
If
sometimes
lay
ideas,
we can
the ghost of a few of these
mean
that
an
quires recognition of the fact that
petually
easy money.
afford
to
The country '
keep' money
that
action
is
inflation,
rising',,
progressive deterio-;
ration in the
purchasing power of
the dollar—including the
purchas-:
ing power of the dollars which1
a
bottlenecks in reaching decisions, the Government itself must spend,
to decisions actually made by and the purchasing'power of dol-i
staff members having no direct lars invested by the public if Gov-'
responsibility to the Congress or, eminent seeurities.
\
^
to the public. Its practical effect
Perhaps as a subsidiary of this'
would probably be to place the first question, I should
mention'
Federal Reserve System under the the interest
displayed by the pres¬
domination of the Treasury, or to ent
Congressional study group in
place both the System and the the
earnings and expenses of the1
Treasury under the domination of, Federal Reserve
Banks, and in"
something like the Council of Eco- whether
or
•
can
have
policies and
a
there
credit
pro¬
in
the
volume
of fact should not be
shall be bet¬ petence in a difficult technical contraction
detailed. They directors
performing a' p u b 1 i c>
ter able to do our jobs.
Certainly field, acting under a general di¬ credit and a tightening or loosen- would not challenge the primary i service but used to
the compul-*
you have a stake in this study rective of the Congress within the ing in the availability of credit,
responsibility of the Treasury for sions of operating a private busi- '
bounds of national economic pol¬ affect interest rates not
which goes far beyopd
only for debt management. ,They should * ness for
answering
profit,'and they are sub- ;
the questions which have been ad¬ icy as determined by the Congress. private
lenders and. borrowers,
specify, however, as part of the ject to check and audit by thei
dressed to the executives of some
It does
This is not a new question al-, but for the Government.
legislative
framework
of
debt Board of Governors of the Federal I
not require that the management
of the life insurance companies.
management, that the Treasury Reserve System at Washington. C
though it was brought sharply to
of the public debt be made unnec- have
As representatives of institutions the fore
regard for the structure of There is no lack of control of the >
by the regrettable public essarily burdensome to the Treasinterest rates appropriate to the financial affairs of the Federal"
holding a tremendous amount of dispute between the Treasury and ury, nor that the cost of
servicing economic siutation. The implicaReserve Banks in the public in- the savings of the people, as large the
the debt, over time, necessarily
Federal
Reserve
tion of such a directive, to me, terest.
System in
'• ■'
:Vi;
' V
be increased.
It does require that
scale investors, and as
would be that the Treasury could •
citizens, you late 1950 and early 1951. The
Whether expenditures have been;
Government
borrowing hold its mot, as a matter of right or of sumade to influence public opinion;
place in the market instead of be- superior position, call
upon
the on
controversial
questions,
de-'
ing floated on a stream of newly Federal Reserve
System to "hiake
even
temporarily,
we
k
.
created
Underwriters and Dealers
money.
Successful
'
coordination
a
of
debt
SECURITIES
the
capital
and
money
possibility
I
pends
rec-
to be differences of opiilion-about
these matters, and I realize that
and
markets,
of close and
market for its securities."
ognize that there would continue
management and credit policy depends on the sensitivity of the
MUNICIPAL and CORPORATION
you
cannot
legislate
cooperation
between people, but the
con-
Congress,
tinuous
contact with all areas of as final judge, might be able to
markets, to make credit pol- provide a mandate which would
icy effective with relatively small - charge debt management as well
changs in credit availability and ash monetary
management
with
interest rates.
It depends on the} some responsibility for the gengreat growth that has occurred in eral objectives of the Employment
the Federal debt, its Widespread Act of 946.
distribution, and its importance in
the portfolios of the increasingly
Credit Policy Should Not Be
important institutional investor, to Sacrificed on Alter of Easy Money
these
THE FIRST CLEVELAND CORPORATION
MEMBER
MIDWEST
STOCK
EXCHANGE
NATIONAL CITY E. 6th BLDG.
CLEVELAND 14
Telephone
Teletype
PRospect 1-1571
Bell System CV 443
&
444
make this
sensitivity real and this
There
contact with the money and capi¬
tal markets pervasive.
In other
of
uses the facts as they exfurther
the
purposes
of
to
ist
credit
,>
>
with
it
policy
debt
gest
Federal
to
a
does
is
needed
in
The
is to
their
controversial, I think the System
would have to
tral
plead guilty.
bankers
in
have preferred
other
Treasury
is
one
of
traditionally to let
their actions speak for themselves"
of the actions of a central*
—some
bank
difficult
are
terms which
to
be
can
executive officers of the Govern¬
ment
and
usually
the President.
for
an
intimate
to
such
as
likely to
do not
In
accuracy.
since
the relatively
go out
As I
see
it,
we
Co;
&
BUILDING
CLEVELAND, OHIO
'
.
•
MEMBERS
STOCK
EXCHANGE
Re-
srve
System, that their responsi¬
bility and authority is exclusive'
in
where
cases
debt
credit
management
policy and
overlap.
It
should
be
possible, however, to
separate the Federal Reserve Sys¬
tem from a
Building
•
Municipal and Corporate Securities
approach these overlapping
as equals
seeking solu¬
and,
finding
the
Cleveland, Ohio
private, so
System
problems
tions
1170 Union Commerce
and
that the Treasury and the
could
INVESTMENT SECURITIES
Underwriters and Dealers in-
host of advisers to the
Treasury, public
Company
by mutual agreement,
solutions which best' fit
needs
of
the
economy
Union Commerce
Recognizing that there
could
be
differences
Olderman, Asbeck
of the
country at the time.
of
still
opinion;
Cleveland
Bldg.
14, Ohio
the situation suggests to some that
the
Federal
Reserve
System be
brought within the executive
branch of the
Government,
or
that
are'
explain, from time to time*#,
doing in the public*/
domain.
COMMERCE
MIDWEST
vio^
country?
you
what you are
r
as¬
in?
un¬
of business if you V
recent
establishment of the "Federal
&
a
however,
ours,
of
It has been natural
succeeding Secretaries to
sume,
Jones
explain
generally
derstood and which do not do
lence
Merrill, Turben
UNION
4
Cen^'
countries1/
redress the
Government, and the Secretary ofTreasury is one of the highest
Exchange
the in-
,
coordinate*
the
Members Midwest Stock
without" sacrificing
credit
involved
Investment Securities
the oldest branches of the Federal
OHIO
and
even
Reserve
require nor sug¬
subordination of the Treas¬
spheres.
Building
14,
better coordination
management
doing and why5
if the quesmight be termed -
we are
doing it,
are
tions
mean.';
have tried'
it
not
balance
CLEVELAND
to
ing of what
we
public understand- *
some
to the Federal Reserv System.
ury
What
Union Commerce
ways;
to create
we
that
mean
debt management;
try to alter the facts.
not
,
This
SECURITIES
'
other
what these words
on
they
No Subordination of Treasury
Established 1903
INVESTMENT
combine
to
a
be
If
effective
does
HAYDEN, MILLER & CO.
and
may
bring about
words, it
T. H.
-
cheap at all times and in all cir-:
cumstances, if the counterpart of
money has been spent to
cannot
be
a
purposeful nomic Advisers.
-.CU'
influence public opinion on conpolicy unless the Federal
A more hopeful avenue to fol- troversial
questions. The facts asr;
gram which run counter to the Reserve System is able to pursue low is the
suggestion of the Doug- to the earnings and expenses of
national
economic
policy.
That alternating programs of restraint, ias Committee that Congress give
the Banks are available to everyhas never been the case, is not "neutrality," and ease as the busia general mandate to the
Treasury one, and are included-in annual >
now, and never should
be.
An ness and credit situation may re-■>and the Federal Reserve
System: reports to the Congress. The
independent Federal Reserve Sys¬ quire, and to act promptly with
regarding the objectives of debt: ciency of operations of the Banks*
tem is one that is protected both each change in the general situmanagement and credit policy inv is open to the daily observation of i
from v narrow
partisan influence ation. It requires recognition of the
light of present day conditions, i all who have dealings with them.*
and from selfish private interests. the fact that such programs
must, These instructions, as the Douglas : Their
operations are under the?
It is a system with special com¬ as they accomplish an increase or
Committee said, need not and in immediate
scrutiny, of boards of/
and
are
I do not
mean.
tem
ings. It will be good for the coun¬
try and for the Federal Reserve
System to have an intelligent air¬
ing of some of the ideas about
in
than
independent Federal Reserve Sys¬
If so, we can look for¬
ward to its hearings and its find¬
agement, which
heat
more
objective.
money
usually
generates they can work badly or well to-*
light. Let me gether. Putting the case from thesubcommittee, make clear, therefore, what I mean standpoint of the Federal Reserve
feel reassured by independence, and what I do System,
their
coordination - re-
the
up
dependence"
is now under
look at the men
Re¬
Treasury. We
cannot
prices, and
respon-
sibilities in fields where a tradition of technical, competence is
necessary. It would lead either to
.
"
Federal
the
re-
This solution
counter to the whole idea of separation of the central banking
this important point.
And when system from changing executive
the Douglas subcommittee, which
administrations, and compounds
preceded the Patman subcommit-< the
mistake of burdening
the;
Economy
the
or
should be ready to^ consider them.
But they should not sacrifice
rung- credit policy on the altar of per¬
last
a
the President.
major amendments to the Federal
Act the Congress has rejudgment
System
sort conflicts might be resolved by
been
Reserve
affirmed its original
Thursday, December 13, 1951
...
Member: Midwest Stock
Exchange
:
have not
*
Volume 174
Number 5972
.
.
The Commercial and Financial Chronicle
.
only
a right, but a
duty and an
obligation to let the Congress and
the^public know what our general
policies are and why we/have
adopted them,
if at times
even
much
of
the
gasolineT of
credit
on
ness.
Because
public
in the
easy
the fires of active busi¬
debt,
the
of
size
its relative
and
Approach
perpetual
im-/
99
morning after catching the
news.
the
of
(2339)
it .as
you
will,
IBA GROUP CHAIRMEN
suport doesn't make
par
sense.
"*
?
SOUTHERN
SOUTHEASTERN
SOUTHWESTERN
it from
Take
the point of view
policy. Unless a work¬
jconsjder controver^ia 1. <;r;';... j.f; a Federal
now able way can be found to insulate
V^try to correct some fancied 'Table to carry-on its open market" the government security market
jabuses in this area by putting the operations in a broad homogenous from all other markets, a project
^ederaj Reserve System, in with market, nationally integrated. The which I consider to be of dubious
^thet~gj)ra\vling Government de- /effects-of its operations are more desirability and'unlikely practi¬
Apartments and bureaus *adminis- quickly felt in all parts of the cality, perpetual par support of
-.tered by the civil service.and the
country and in all areas of the government securities by the Fed¬
General Accounting Office
eral Reserve System would make
would, private sector of the market than
/^^y opinion, destroy- something used, to be the case:' The sensi- any pretense of credit policy ri/finev whiclri has beeiT. cheated in ntivit'y (of
diculoq^-; The essence of general
must touch
matters which
on
we
portance
some
of
in
debt,
the
whole
structure
public
and private,
Reserve System is
of
the
credit
-
.
dependence.andJ.he regional
acter of the.
than it used to be; and
•
.char¬
main
want to touch
ity
and
credit
controls
flation
and
that
general
of
I
in
of
general
combatting in¬
Are they
they outmoded?
are
should
be
'credit
claimed
controls,
my
opinion, is that combined
other
f measures
for
in
with
working
in the
direction, such as fiscal pol¬
icy, debt management
and, in ex¬
same
traordinary circumstances, direct
controls, they can contribute to
anti-inflationary
tionary forces.
are
anti-defla¬
or
This, I think, they
peculiarly fitted
country with
and
There
those
are
who
They admit that a
icy of credit restraint
fective, but they
also
a
functioning of
pol¬
economy.
with
our
In
this
in
production,
are
A
cised
in
traditions
of
pri¬
a
individual
largely impersonal
no
Y-4by
se¬
means
fect the
of such
of controls, which af¬
One
,
cornerstone
philosophy is an
lion/and the needs and require¬ pendent/competent, central
ments pf managing such a debt. ing system empowered to
A mild credit policy, on the other general credit policy work
limit
at
of
its
phase.
trusion in
defenses
usefulness
This
tiveness.
of,the Government
security mar¬
ket, and interference with an ex¬
inde¬
a
best and may be harmful at
at/least
in
its
worst,,
anti-inflationary
Then, it is claimed, it may
involve increasing the cost of ser¬
vicing the-public-.debt, disruption
ways
general environment, not
individual.
the
say, in the
Federal debt of $250 bil¬
hand, is said to be ineffective
is
the
control
available
funds
of
the
to
banks, and that inevitably
stances it had
is
one
against
bank¬
means
to
W.
Mead
Carroll
Miller
Mead,
«fe
Mark A. Lucas, Jr.
Q. R. Ledyard
J.
Co.,
C.
Bradford &
Lucas, Eisen & Waeck-
Co.
erle,
Nashville
Baltimore
'Kansas
City
support govern¬
make
view
frequently expressed
determination
best
in¬
••
of the Congress to
Government Bonds?
second
panding economy, in order to get
at',a handful of private transac¬ question concerning general credit
controls, I might pay my respects
tions.
O■/■■'v V/.
to the suggestion that credit policy
•. I
am
more
hopeful than these should now be
charged with per¬
critics as to the effectiveness of a
petual par support of government
question
final
and
which I would call to your atten¬
tion is the
question of centraliza¬
prevent unlimited direct borrow¬
ing by the Treasury from the cen¬
tral banking system. To fasten on
far
as
is
concerned
the Systerh the obligation to sup¬
port government securities at par,
locus
would
the
to
that
the
Treasury
government
securities
the Federal Reserve
Banks, in
could
of
mean
sell
as
the
funds
and
of
third
tion of control of credit policy. So
•.; /> buy
Support
The
of
detour through the market.
The
only check would be the flooding
:vl'vV-
subsidiary of this
the prompt
point
effec¬
the
Be
a
the
in war,
Should
As
of the
Control
.
from
any
government
Par
it
almost
vate affairs.,./
There
take
well
and
of
1
Or
to the
individual and pri¬
our
basis.
country,
be ef¬
can
impossible, they
a
"
policy * under
credit
vate
policy of credit restraint is
face of
^
"
'
-enterprise, we have preferred to
keep such control to a practical
that the re-'
minimum, and to have it exer¬
say
declines
general
the effective
deny
severe
Employment and incomes
longer socially acceptable.
vere
in
political, social,
leanings and be¬
this.
sultant
do
our
economic
liefs.
to
I
,
control
,
reserve
conditions, and in per¬ ment securities at
par.
fecting the mechanics of making
Or take it from the point of
straint the Congress has had in emergence of dictators. Plausible
the policy work. But I would be¬
view of debt management. If gov¬
arguments can be assembled for
mind.
ware
of those who are trying to
ernment securities had to be sup¬
abolishing the present organiza¬
discredit general credit controls,
Or take it from the viewpoint
ported at par, present forms of
tion of the Federal Reserve Sys¬
and who would place main re-*
debt management would become of the public, whose common sense
tem.
Action by boards or com¬
liance on selective credit controls,
obsolete. If all government secu¬ has always resisted the view of a
mittees, such as the Board of Gov¬
or
on
more
direct means of ra¬
rities of all maturities can be liq¬ shouting minority that the gov¬
ernors or the Federal Open Mar¬
tioning bank credit, in adapting uidated at par at any time they ernment should print the money
ket Committee,
is apt to seem
credit
policy
to
our
economic become, in effect, demand obliga¬ to pay its expenses.
Would the
cumbersome, time-consuming, and
'needs.
'
' ■■■
tions, and need only bear varying public not perceive that this idea sometimes productive of group
of par support of government se¬
decisions which may not reflect
;
We all recognize that one of the rates of interest if the government
jcentral problems in our country, wants to reward various kinds of curities is just the same old some¬ the wisdom of the best men in the
and in all the western democratic holders in different ways. I doubt thing' for nothing dodge, with in¬
group.
A distribution of powers
life
insurance
business terest? I am sure it would.
countries, is how far government if'' the
between a board at Washington
guidance and control of economic would want to become a claimant
and 12 regional banks may seem
Centralization of Credit Policy
affairs can go without destroying for government support on that
to be an unnecessary obstacle to
deflation.
or
-
credit
present
is the desirabil¬
on
effectiveness
still useful
;A11
question
policy
fluctuating interest rates and fluc¬
tuating prices of securities.
The
there still are difficult problems
Federal Reserve System could not
to
be worked
in providing
out
have a general credit policy, if at
the proper sphere of effectiveness
all times and under all circum¬
Credit Controls Regulate
Inflation and Deflation?
second
credit
greater
the leverhas multi¬
It muct he fran^v admitted that
Can
The
of
age •
plied. *•
federal Reserve Sys¬
tem.
.
is
Athci"'market
the
public interest/ ^nd it would
&e.one way-lo undermine the in-
the
peace
after only
market
which
the
in
amount,
with
we
government
resulting
the
would
a
as
hasty
reserve
to
use
securities,
willingness
of
the market to purchase further is¬
sues
of government securities at
almost any price and yield. That
is
not
the
kind
of
check
or
re-
the Federal Reserve System
involves
this
of power and
the
the structure
The framers of
of administration.
original Federal Reserve Act
conceived
system at once na¬
regional. Despite the
vicissitudes of the intervening 37
tional
a
and
that fundamental idea has
retained its vitality.
It has done
years,
so,
I believe, because it is in ac¬
cord with
our
political beliefs and
the Federal structure of our gov¬
".
ernment.
This
course,
.."■''/v;'
•
formation of national
credit policies.
We
that
a
would
all
admit,
I
think,
single administrator or ex¬
ecutive, with deputies or assist¬
ants, is the best way to manage
an
operating organization.
It is
another matter, however, to create
a single policymaker
in the vital
field of national credit policy, no
matter how competent the man
you
might get, once in awhile, and
what rank you might
matter
no
give him in the government hier¬
archy to emphasize the importance
of his duties. It would violate our
concept of the way in
government should exercise
powers in moulding or guiding
national
which
its
concept has its defects, of
our
economic affairs, at least un¬
principally
der
any
but
the
defects
and
of
a
they
are
democracy
of
system
which
itself,
wari
relies on
the
checks and balances to prevent
conditions short of total
I think it would do
And
Continued
on page
100
.
modest
credit
of
a
control
violence
to
It
to
seems
policy
with
concerned
cumstances
the
which
our
me
and
more
preservation
does
not
do
private economy.
that the
which
are
same
cir¬
responsible
securities.
statements
debt management and
idea baffles
icy, contribute to the effectiveness
general credit policies, and
that we can have an expanding
economy
without throwing too
and
in¬
of the Federal Reserve System and
I
of mild
bankers
this
f^r the problems of coordinating
credit pol¬
Some
people have succumbed to
idea, I am told, perhaps lured
in that direction by earlier actions
surance
am
of
its
me.
20
representatives.
if this is
very sorry
It is
an
so.
The
YEARS
excursion
into
the
land
of
"hatchy-malatchy," which I hear about once
in
awhile
don't
turn
on
it
the
off
radio
quickly
when
I
enough
OF SERVING THE
OHIO
MARKET IN
CORPORATE AND MUNICIPAL INVESTMENTS
Field, Ricliards 8c Co.
FRIENDS
ESTABLISHED 1908
Underwriters and Distributors
Of
-ALSO —OUR MANY SECURITY DEALER
THRUOUT
%>
Municipal & Corporate
Securities
Wm. J. Mericka
CLEVELAND
1556
COUNTRY.
THE
Union Commerce
CLEVELAND
Bldg.
14, OHIO
Telephone PRospect
Teletype—CV
1-2770
174
1207 Union Central
Main
14. OHIO
Bldg.
CINCINNATI 2, OHIO
Telephone
Co. Inc.
&
MEMBERS MIDWEST STOCK
EXCHANGE
3776
Teletype—CI"T97 & CI 150
\
100
The Commercial and Financial Chronicle
(2340)
...
Thursday, December 13, 1951
/
FIG Banks Place Deb Si
A successful
of
an issue
Federal Inter¬
offering of
debentures
of
mediate
Credit
Nov.
by Macdonald
19
Banks
was
made
3,
March
were
1951, and due
The two issues
Dec. 3,
date
tures
1952.
Continued
from
99
page
District Nc. 8
placed at par.
The
G. New-ycomb, New York fiscal agent for
the banks.
This financing con¬ ($4,200,000 of latter issue having
sisted of $86,385,000 of 2.15% con¬ previously been redeemed).
As of the close of business Dec.
solidated debentures dated Dec. 3,
Of Our Private
to the
violence
beliefs, and harm
to the interest, of all of you.
Similarly, with the regional or1951, and due Sept. 2, 1952.
A 3, 1951, the total amount of de¬
special offering was also made of bentures outstanding amounted to ganization of the Federal Reserve
System, and the partial distribu$3,085,000 2% consolidated deben¬ $676,555,000.
tion of powers as
between the
Board of Governors at Washington
and the 12 Federal Reserve Banks.
In
the early years of
of
Municipal
Bonds
Braun, Bosworth & Co.
•
•
'
,
Incorporated
V--
' '■
-
New York
Detroit
-
Chicago
-
I
*-'•--v.
'
Cleveland
-
election
Economy
-
Cincinnati
needed
not the destruction of
was
bers
and
8
of
the
of
G.
District
Committee
members
new
of
the
"
Governors.
of
^
Federal Reserve System Not
the
on
two
Board
-
Edward
Slezak, Vice-Presi¬
Perfect
dent, Loewi & Co., Milwaukee,'
In what I have had to say about Wis.; J. Gordon Hill, partner, Watsome of the questions which are ling,
Lerchen
&
Co.,
Detroit,
now under study by a Congres- Mich.; Russell H. Goodrich, *partr
sional committee, I am not arguing ner, Investment Securities Com¬
that the Federal Reserve System, pany, Jackson, Mich,, and David
as it stands, is perfect in its per- J.
Harris, President,
Sills, Fair-
man
freedom.
I
Harris; Incorporated, Chi¬
111.
cago,
elected
been
have
Paul
E.
Conrads,
Gilbert
ford;
S.
Currie,
Nelson
R.
to
Rock-
Detroit;
Gilbert,; Lansing,
and
William D. Kerr, .Chicago^ retiring
members of the
;District 'Commit¬
tee.
V
'
Edward C. George, Vice-Presi¬
dent, Harriman Ripley & Co., In¬
corporated, Chicago, 111., and Wil¬
liam
with dictatorial direct
contrasted
&
succeed
C.
partner, ^Wm. C.
Roney,
Roney & Co., Detroit, Mich., have
the regional system, but to bring controls of individual transactions
the Board of Governors and the which would destroy our economic
Presidents of the Federal Reserve
No.
Inc., comprised of the
Illinois, Indiana, Iowa,
Michigan, Nebraska and Wiscon¬
sin, has resulted in four new mem¬
States
frustrating,
T
111.—The annual
District
Dealers,
must give these men an opportunity to develop their powers in
an atmosphere which is stimulating and satisfying, not stifling and
_
in
National Association of Securities
than its statutory and necessary proved themselves over the years,
position, as the central coordinat- I am arguing that these concepts
ing body of the System.
When*will contribute to the further demajor amendments to the Federal development of general credit polReserve Act were adopted in 1935, icies
which, along - with other
in order to bring about a greater measures, will be effective in prodegree of central and coordinated moting high levels of production
control, the Congress was careful, and employment in this country
nevertheless, to preserve the re- and in preserving the integrity of
gional character of the System.
the dollar. I am arguing for efIt
recognized
that what was fective general credit policies, as
Municipal Bonds
Toledo
CHICAGO,
the System
organization and this division
powers did lead to difficulties
in formulating and administering
a coordinated national credit policy. An assertion of power by the
Federal Reserve Banks, and the sonnel, its powers, its organizaemergence of dominant individual tion, or its functioning. It is not.
leadership at the Banks, reduced I am arguing that is embodies
the Board of Governors to less certain basic concepts which have
this
State and
Of NASD Elects
The Federal Reserve: Bulwark
together with
proceeds,
$24,775,000 cash in treasury, were
used to retire $114,245,000 of de¬
bentures maturing
Dec. 3, 1951
been elected to the Board of Gov¬
suggesting that an ernors to succeed Howard E.
Banks together at a common coun- independent regionally organized
Buhse, Chicago, and Sampson
cil table having statutory sanction central banking system can be a
4^:'!i
and
responsibilities.
That was bulwark against the destruction of Rogers, Jr.; Chicago. ,
The newly elected District Com-;
achieved, so far as open market the kind of private economy which
am
"
John b. Joyce & Company
operations
=
Member Midwest Stock
INVESTMENT
BANK
COLUMBUS
★
Long
Distance
enable
this
15, OHIO
38
With
of
mum
internal friction.
committee
the
Federal
Government
is
to
dis-
a
troubled world.
mittee
and
members
Jan.
Board
will:
of
Governors*
office
assume
15, 1952.
i'l
..
t'.V,1
In this
Reserve
System.has evolved a method of
conducting
policy
deliberations
and
formulating policy actions
that is uniquely in tune with our
political and economic institutions.
sented
country
charge its enormous economic re-
,it was achieved a sponsibilities in
body within the System which is
at once regional and national, and
which can act promptly on mat¬
ters of credit policy with a mini¬
form.
BUILDING
4523
by the • will
concerned,
are
MX\ShCommUtee^neurP^2fen"
SECURITIES
HUNTINGTON
MAin
Exchange
OHIO
SECURITIES
•
t.»r/
Corporate and Municipal
directly
repre¬
the presidential
through
appointees to the Board of Gov¬
Regional interests which
make up the national whole,
the lessons of experience "in
the filed," are represented through
the rotating membership of the
Federal Reserve Bank Presidents.
ernors.
go to
and
SWENEY
CA RTW RIGHT
INVESTMENT
Field. Rick
aras
&
VJO.
CLEVELAND
CINCINNATI
National policies are established
without complete centralization of
SECURITIES
authority in
Huntington Bank Building
of
Columbus, Ohio
at
men
This
is
well
as
as
ture
of
one
group
a
also
question of
a
men
of mechanics. The struc¬
and
in
power
or
man
Washington.
the
the
distribution
Federal
of
Reserve
System is closely related to the
problem of recruiting men who
will be equal to the tasks and re¬
sponsibilities of the System. We
,
need
at the Federal Reserve
men
Banks who
are competent both in
administration and in the field of
credit policy, who have qualities
of
leadership
them
which
force
a
munities
nation.
Seasongood (r Mayer
in
will
their
make
own
com¬
and, collectively, in the
That
that the
means
Established 1887
CINCINNATI 2, OHIO
Ingalls Bldg.
re¬
wards and satisfactions of service
must be such as will attract and
hold
of talent.
That is partly
compensation, but
important is the oppor¬
tunity for public service, with the
a
men
question of
even more
power as well as the
which
power
^Company;
51 n.HIGH
satisfactions
service.
are
If
wholly
ripped away from the Federal Re¬
serve Banks, if'the banks become
I
INVESTMENTS
with such
and influence
go
branches
ST., COLUITIBUS, OHIO
the
of
a
who
men
central
run
authority,
the banks will
become branch managers, no mat¬
ter what
they
factions
Distribution
^
are
will
powers
then
.
in
and
the
nation
We shall attract
what
men
tive,
we
will
decline.
jobholders when
want and must have
are
able, competent, imagina¬
progressive men. And we
—
403 DIXIE TERMINAL
be
and the
the
MUNICIPAL BONDS
called. The satis¬
of
public
minimized,
prestige arid efficiency of
System within the districts
service
Underwriting,
and
Walter, Woody & Heimerdinger
CINCINNATI 2
";I
".SOU
on
Number 5072
Volume 174
...
The Commercial and Financial Chronicle
(2341)
News About Banks
CONSOLIDATIONS
NEW BRANCHES
and
NEW OFFICERS, ETC.
REVISED
.
-
Bankers
CAPITALIZATIONS
Teletype
Private Wire
DE 195-6
John
L, Kenower
to
W. E. Hutton &
Reginald MacArthur
T. Norris Hitchman
Co,
Julius
Pochelon
Underwriters, Distributors and Dealers in
Municipal and Corporation Securities
Specializing in
Michigan Municipals and Revenue Bonds
Kenower, MacArthur & Co.
MEMEERS
MIDWEST
DETROIT
Detroit
Ford
Building,
Telephone
Detroit
26,
WOodward
Teletype
DE
STOCK
STOCK
EXCHANGE
EXCHANGE
->
Michigan
Saginaw
Bearinger
f
2-3262
Building,
Saginaw,
Telephone 2-3311
Michigan
475
MCDonald-Moore & Co
'
MEMBERS
DETROIT
STOCK
EXCHANGE
r*
,
Investment Securities
Underwriters and Distributors
■,
'
Municipal and Corporate Bonds
Members
New
Listed and Unlisted Stocks
Detroit
DETROIT 26, MICHIGAN
RAPIDS
Stock
Exchange
Stock Exchange
DETROIT 26,
Ann Arbor
GRAND
York
FLINT
New York Curb
Midwest
Stock
(Associate)
Exchange
MICH
Jackson
101
The Cornmerci&l and Financial Chronicle
102
Continued
1951-52
from page 12
(18)
In the Stock Market
The
i
.
^
makes
wage
tne
\Korea>
and less resistible.
less
benefits
vale
.tendencies.
Walter
Weld & Co.,
White,
"
Boston
F. Blaine
Goldman.
Co., N.
■
&
DeHaven
Y. C.
,
ATLANTA, Ga.—Henry N. Canow affiliated with Good-
MONROE, La.—Robert R.
body
curities
is
derwood
M.
45 Forsyth Street,
formerly with A.
&' Co.
in Sarasota,
"
Co.,
&
He
was
Kidder
Florida.
>
Westlund
has
111.—William
been
added
to
Rockford
members
of
the
Trust
Stock
Midwest
15-Year Club
of
Ernst &
120
Co.,
annual
13,
will hold their
Exchange,
Stock
dinner
1951,
at
on
the
Thursday, Dec.
Old
Romanian
first
*
-
1961,
,
(1) The economy and the price
World
since
War
II
boom,
yield McEntee
& Co., Inc.; Bache &.
Co.; A. G. Becker & Co.h Incorporated; First of Michigan Cor,
poration; Laurence M. Marks'Co.; Fidelity Union Trust Company, Newark; W. E. Hutton & '
Co.; Carl M. Loeb, Rhoades & Co.;'
of these have
wl;L£!i
.
.
_Tea
v.
(2) Coinciding with these hoon>s
^wlnvprnmlnf
gieatest government
7?!'
(3)
Hpht
debt
th'B "exception of the 1965-66 ma- W. H. Morton & Co. Incorporated;*
'
turities' which
°«tni°ther
struc-
hattan Co-;
Defense spending may not
National
par.
Commercial
Bank
Trust Company of Albany;- State?
Bank of Albany; Swiss American.
include_Bank of the Mail-
grQup
nnt
priced at
are
members of the offering
Corporation; Hannahs, Ballin &
Kuhn» Loeb & Co-;
Lee; The-Public National Bank
and Trust Company of New York;>
Hallgarten-& Co.* C. J. Devine &
Co.; Blyth & Co., Inc.; Barr Broth-
%
*
of
P
p
r
^
RriS
Britain
Great
^
Municipal Bonds
the Brit-
ties recently released to
.
.
AND
-
,
faU
ketwise,
KorU if
Bank; Bear> Stearns & Co . Equi.
an
Co.; Kean, Taylor &
Co.; Manufacturers & Traders
Mercantile
Trust
Co., Buffalo
unsettling effect marindeterminable pro¬
of
portions
(7) Lack
i*-
Trnct
of
market p
adequate
RAFFENSPERGER, HUGHES & CO.
Incorporated
socialism
enced
Indianapolis 4, Indiana
until
Exchange
Exchanges.
''
^ :
tax
asso-
Walker & Co.,
York
,
Midwest
and
'?
=
deteriorate
1.
:
'
-
-
>
•
_j-_
payments
CORPORATION
•
129
EAST
INDIANAPOLIS
•
BUILDING
MARKET
INDIANA
6,
15, 1952, in¬
necessi¬
may
tate
liquidation to provide neces¬
sary
cash funds for tax liabilities.
(10) Prospective Churchill-Tru¬
meeting may create investor
man
~
*
*
*
Investment Dealers and Underwriters.
in issues of Indiana Tax
Specialists
Exempt and Corporate
uncertainties.
Leftist infiltration
into leading newspaper, magazine,
and book publishers, universities,
and other public-opinion-forming
Steady
(11)
■MM
m
The White
Phillips Co., Inc
M
MUNICIPAL
BONDS
v?/s
Sudden expansion
(12)
Underwriters
—
Distributors
Securities. •"
-
:-\r'
Telephone MA-4321
Teletype IP-298
MEMBER
MIDWEST
STOCK
EXCHANGE
media, such as radio, motion pic¬
tures, the theatre, and television.
m
traction in
the Korean
Presidential
(13)
the
fall
of
1952,
or
con¬
war.
elections
with
in
A
attending
uncertainties existing, re¬
gardless of whether a Democratic,
or Republican candidate is elected.
for
Market Place
major
Economists
are
almost
unanimous in predicting indefinite
IOWA SECURITIES
(14)
boom
conditions—the
1929 and
1937.
same
as
in
.
(15) Enormous expansion in in¬
dustrial
capacity
threatens
production which cannot
absorbed except through re¬
armament,
etc.
Plan,
Liquidation
loans
of
contributed
ERP,
~
-
_
(16)bank
Marshall
in
private
major
degree to the depressions of 192021
€
ESTABLISHED
and 1929-32. For the first time
1930
T. C. HENDERSON & CO.
THE
MEMBERS
huge
surplus
be
the
Stock
^INDIANAPOLIS BOND AND SHARE
-
Heavy March
(9)
become
oecome
have
nave
5Q3 Locust Street, members of
NeW
economic
the
to
starts
seriously.
come
Jr.
or.
ciated with G. H.
.
1
G(>
Elzey
—
the
once
situation
fl.
& Webster Securities Corporation;
cession from turning into a major
depression
LOUIS,Mo.
and prolonged
Thus,
be
>
DEALERS
—
EMPIRE
Teletype, DM
MIDWEST
DISTRIBUTORS
STOCK EXCHANGE
—
UNDERWRITERS
BLDG., DES MOINES 9, IOWA
Telephone
97
Burlington, la., 312 N. 4th St.
Direct
Cruttenden &
■
Chbonicle)*
Financial
experi¬
have
we
ST,
Mullen,
iviuiien,
T mile
Qt
,
de¬
Government
powerless to stop a re¬
severe
a
pression.
will
inflation or-marked
-
"
.
to The
Bank; Shields & Company; Stone
(8) Neither the voting population nor Congress will tolerate
press
rn
1
(Special
Burkham, Jr. and. Lawrence M.
Als0> The Philadelphia National
correction after the 2V2-year rise.
printing
Two With G. H. Walker
table Securities C°rP-; Estabrook
& Co-= Hemphill, Noyea, Graham,
Parsons &
peace
have
would
This
immediate
Hurers ' Trust Co.; Th^lVorthernA';eo;r and J. G. White ^ Company,;
Trugt Co . Harrig Trust & gavings Incorporated,
nvpr
collate! al) and overmarket
warfareTn
S
Corporate Bonds and Stocks
onH
nirr,
if (?s RBC
hanging the
atomic
Member Midwest Stock
to
ers & Co.; R. W. Pressprich & Co.; Weedon & Co Incorporated; WUnri
Hutzler; Laden- ham Blair & Company;
and Salomon Bros. & & Co.; Chemical Collins & Company; Paul H. Julien
burg, Thalmann
Davis
France wixn unpreamlaoie.woriar rance with unpredictable, worldBanl^ & Trust Co.; Blair, Rollins & Co.; R. L, Day & Co.; Detmar
wide disturbances resulting from
& Co
Incorporated; Kidder, Pea- & Co.; Francis I. duPont & Co.;»
possible currency devaluation.
body & Co.; The Marine Trust Co. Green, Ellis & Anderson;'Hayden,
(5) Large blocks of U. S. securi¬ of Western New
York; Manufac- Miller & Co.; Schmidt, Poole &
DEALERS IN
-
priced
and
Several
Vi
'
inclusive,
housing boom, an export, 0f 1.50% bonds maturing Dec. 15,
an
inventory boom. 1952
1971^ inclusive, priced to
reached or yield from 0.95%.to
1.60%, with
a
boom,
co"|"mei goods hnes.
Street
issue of $65,- White, Weld & Co.; A. C. Allyn-
a new
1.35%, with the exception of the 19-30 maturity which
js prjced at par; and $20,000,000
supported by an automobile
position
20 North Meridian
Bank and associates offering grade crossing
obligations bearing rates of 1.30% and 1.50%.
from o.95% to
have
?
*
National
elimination
ing consists of $45,000,000 of 1.30% , Rothschild & -Co.;:* Schoellkopf,;
bonds maturing Dec, 15, 1952 to Hutton & Pomeroy, Inc.>Adams,^
?
i
Bearish
been
.
.
Dec. 12 by The Chase National Son, Incorporated; Hornblower &.
Bank and associates. The offer-' Weeks; Reynolds'.-&'-Co.;- L. F.l
months
two
mt
/<v
xt
nearr<
others--.'Will»
others
omWrate the longer-tenm trend, I.
She
-
:'Oflering of
invested by
be
to
the
of the year).
^
Restaurant.
Exchange..
in
trustees
while
000,000 State of New York 1.30% ;and Company, Incorporated; B. Jr
(about five- and 1.50% grade crossing elimina-- Van Ingen & Co. Inc.; Geo. G.i
fund monies tion (serial) bonds was made on Gibbons & Company;, Gregory &
funds
pension
estimated
are
-
: while
unprecedented demand
an
sixths of all pension
Diversi¬
Broadway, New York
the City, members of the New York
Building,
from
level
The
W.
staff of Robert. G. Lewis & Com¬
pany,
formerly with Investors
fied Services, Inc.
to The Financial Ciikonicle)
ROCKFORD.
business
Ernst 15-Year Club Dinner
Joins R. G. Lewis Co.
(Special
245
Un¬
engaging in the se¬
from offices at
South Grand Street. He was
sell is
W.
Chuonicle)
(Special to The Financial
trend
^ Dimon. ine dividual^holdings
.
Chase
demand
reinvestment
Year
billion
$8
.
R. R. Underwood Opens
Financial Chiionicle)
to The
by
trend
$65 Million N. Y. State Bonds: Marketed
ellm-
possible
two
.
will be
(Special
...
deflationary ,
forces.
'' .V-V/■■■•*':'I -K
drfv
(20) Superimposed upon an .ab-f.
normally large year-end and early
inated
■
New
With Goodbody Co.
:
standard and free trade has
Towns-
Crouter &
Bodine, Phila.
end,
&
Sachs
...
Abandonment of the gold,
(19)
Wm. C. Hammond, Jr.
*,
•
.
lua"°
nonr
I
at this time" is^
threat of-bank credit deflation in of utmost importance.
inflationary
World-wide
loans
vai,c
increasingly costly social benefits.
Gordon Crouter
;:^hould be entitled. Some of'.-these"/
.factors will determinp
t
commercial term
term
fading
^nks ^ave^uced
(17) All governments are com-
(18)
•
purposes.,
i
of trade unions:
-loans increased $34 billion. Since
demands and fringe > Korpa
thp
ieaHina
commercial
Strength
(16)
tabulated
are
for,, appraisal
a r5c jrl~feau1g increase m pri- listing does not necessarily. indi—»
v?
^
e^e
: ca^e
weight :to. which' each)
133,377,000 in 1941
154,724,000 in 1951
(b)
foregoing
;since
population.
(a)
money rates.
1929 a major decline in bank They gre not presented as an ex_
investments is taking place after,;.haUstive' summary. /The order of '
growth of
(15) Continued rapid
at
Declining
merely
,
U. S.
than
caused
PENNSYLVANIA
NEW YORK
ENGLAND
serious
more
profit margins
by (a) higher labor costs;
(b) higher taxes; (c) price ceil¬
ings, and (d) material shortages.
Bullish and Bearish Factors
EASTERN
NEW
is
time since 1945.
any
(17) Rising
CHAIRMEN
IBA GROUP
N.
Thursday, December 13, 1951
...
(2342)
—
Phbhe 24
Wire
To^
—
4-4289
Teletype BZ 281
r
Co., Chicago; Reynolds & Co., Chicago & New
York
Volume
174
Number 5072
.
The Commercial and Financial Chronicle
.
.
(2343)
for the least
/
need
more
possible risk.
Incidentally,
will find
you
AT THE CLOSE of its fiscal
year
you
Nov. 30, 1951, Institutional Shares,
Ltd. reports that net assets of its
stocks that cash.
common
Some
people will say all this is on the basis of past
experience—and that you can't judge the future from the
past. We can only say, .quite truthfully, all you know is
what you
Through the Looking Glass With Alice
have experienced—it's the only certainty
have, the most important basis for decision-making.
•
reading "Alice-in-Wonderland," one walks with
through the looking glass into Lewis Carroll's re¬
;
"storehouse of wealth."
markable world, much more real than our own, to discover\;
that all absolutes in our lives are
changeable, that nothing
is
veritable
or
human-desire to
by which
we can measure
the rest of the world around
One foolish absolute idea that
safety of our savings or capital. People, I really,
believe, plague the investment industry with their perni¬
cious notion that the safety of capital is greatest when it
is invested in those securities which fluctuate the least;
that capital is most safe when it is invested in something
that doesn't fluctuate at.all, namely in dollars. And, ofb
Of
if: there
course
dollars, can't be
V"
measure
*
our
of
r
v
value—they must;
* 1 1
business life would seem—and how.
of
really be^-if we1 like Alice went through the|
looking glass /and changed around all of our standards1
of value.
:■
in
-
using dollars,
of
terms
:\ tiana Securities,
and
Steel,
could
A
a
measure
everything
would
car
cost,
say,
house 10 shares of Chris-
so on.
r
'
Or we could simplify matters. Just as in the days of
ahtiqiiityf people discovered-it was easier, to value all goods;
in terms * of one good (because adding one dollar to one:
> dollar is an easier way to sum up the receipts of a day's,
5 business than adding one nut to one apple), so we in our
new world could evaluate
everything in terms of mutual
funds shares rather than ja_ variety: *ol securities;,^
f:;
,
*What would this Wonderland be like?
First, and
sur-
b prisingly, there would be scarcely any evidence of inflaIn terms of mutual fund shares, the
tion.
buy
things we could
would cost about as much as they did 10 years
And, too, the income from our mutual funds "store¬
now
ago.
house of
value,"
savings, would have been considerably
higher than the 2% from our savings dollars. The only
Teal difference would be that we could
buy more dollars
or
>J
course,1 we,
Wonderland
—
Life
with;: Alice,
where
Rvalues .declining.
:
wouldn't
.
prices
1
could
were
go
falling
into another
and security
.
Ibe
nearly so pleasant because our
mutual fund shares would
buy less than they did before,
and we might not be getting any income; while dollars, on
the other hand would still
give us 2%, and we could buy
-
more
the
as our
we
say,
"That's just
.
realize that the value of
dollar fluctuates
our
For
always in
opposite directions and if we admit that we can't predict
f the future, then it would seem that our savings are safest
y when they're invested part in cash and part in stocks.
v r:
And, it also follows, capital is most hazardously ex; posed at either extreme—all in cash or all in stocks.
•'
So, to those who preach safety of capital we can say,
if you're all in cash or all in stocks
your risk is at a maxi•
because in the first
case you lose to an inflation and
lose to a deflation.
J
You're taking the least risk
possible in this relative
world with part in cash and part in
stocks—you're hedg¬
ing both ways. *
"
•'
'
mum
"storehouse of wealth," but
they are
example in
OPEN-END
Wonderland
one
But, of
REPORTS
COMBINED
NET
dends
of
assets
the
ten
Keystone Custodian Funds
went
we
case
you
course,
-
individual
common
,
;
common
As
oil,
a
the
corresponding date last
combined
net
950,600.
'
assets
were
year,
$215,-
"
/
i
Net assets of the Medium-Grade
Bond
Fund
118;239
fiscal
B2
increased to $22,-
the
at
close
equal
year,
the
of
to
1951
$24.08
and
power
natural
light,
by
no
on
stocks may vary
common
PHUADUfHU
fact, with
a
t WL
companies in 1950 were equal
$3.50 for each $1 of fixed
suer
to
charges they had to
pay
BULLOCK
and the
management of the Fund estimates
that this
proportion will be main¬
tained in 1951.
On
Oct.
Manhattan
31,
FUND
Bond
compared with net assets Fund had total net assets of $27,
$17,392,948
a
year
earlier, 825,803 with 3,647,593 shares out¬
amounting to $24.90 per share. standing owned by 14,969 holders.
During the 12-month period, the
share;
of
number of shares
creased to
the
end
The
outstanding in¬
918,548 from 698,389 at
the
of
previous year.
of the Speculative
report
Common Stock Fund S3 shows
increase
in
$16.92
to
net
asset
31,
1951
from $14.42 at the end of the
pre¬
from net realized gains during the
period.
Total
net
assets
were
against
earlier
year
and
$14,165,478
the
in
number
a
of
with
982,483
Oct.
on
general decline to
an
stocks
of
Institutional
ported
to
can
be
ex¬
Shares
re¬
shareholders
its
A Mutual Investment Fund
will
further ex¬
a
upturn
pected,
on
Prospectus from
your
investment dealer
The Fund reasoned that,
or
except for relatively short periods,
the trend of stock prices seldom
fails to follow the trend of
CALVIN BULLOCK
earn¬
ings,
and these, in general, are
turning down under the impact of
increased taxes and higher costs,
with
resulting
lower profit
Established 1894
One Wall Street
New "Y&rk,
mar¬
gins.
Portfolio
shares outstanding totaled
419,535
compared
VALUE
tent before
per
vious fiscal year, despite a
special
distribution of 40 cents per share
$7,097,590
MARKET
Nov. 27.
value
Oct.
on
an
changes
in
the
last
three months included stock pur¬
chases
MANHATTAN
BOND
Fund
re¬
ports for its fiscal year ended
Oct 31, dividends to shareholders
ital
Vz cents
gain
cents
year
and
In
his
of
5.8
comparing
4
1950.,
President
share and
distribution
share,
per
per
cents
in
a cao-
cents
with
the
of
Bullard
Go., Cincinnati
Machine, Niles-BementPond, and Cornell-Dubilier Elec¬
tric Corp. because of their favor¬
35
able outlook in
rearmament
electronic
tools
and
There
were
no
for machine
equipment.
eliminations.
that
Custodian Funds
NET ASSETS of Eaton & Howard
v
letter
to
Hugh
W.
shareholders,
Long
points
Stock
Nov.
Fund
were
30 compared
$11,861,759 on
with $6,826,865
Dec. 31, 1950.
Offering price
following
paid by per share increased from $21.67
to
Fund
$24.50The fund's holdings
ranged between 33 %
were 87.4% common stocks, 10.3%
cents per share and 36 Vz cents
per
share, adding that, "This relative- cash and governments and 2.3%
out
World
Keystone
view of the large
demand
fiscal
in
War
six
II
on
years
Certificates of
stability of income is in keeping convertible
preferred stocks.
the objectives of the Fund,Power and light, oil and rayon
reflects the fact
Participation in
INVESTMENT
dividends
investing
the
FUNDS
their capital in
BONDS
(Series B1-B2-B3-B4)
with
and
that
bonds
provide for payment of interest in
specified amounts whereas divi¬
and
textile
stock
were
holdings
largest
PREFERRED STOCKS
common
(Series K1-K2)
by industry.
COMMON STOCKS
Affiliated
a
The Keystone Company
•,
50 Congress Street, Boston 9,, Mass.
one should expect. little statistics, you can
Fund, Inc.
Prospectus
upon
request
Please send
your
ten
me
prospectuses
describing
Organization and the shares of your
Funds.
sible risk.
Just measure the average rate of decline" in the value
of the dollar and the average rate of increase of a common
stock average over a period of decades, make a ratio of
the first to the
second, turn it upside down, and this will
common
stock investment to cash you
need
;
(Series S1-S2-S3-S4)
pretty .closely, figure out just the proportion of cash and
representative common stocks you need for the least pos¬
be the ratio of
and
gas
chemical.
substantially."
per
stock index, that's all
matter of
were
insurance,
on
stocks vary
And, if the mutual fund's record pretty closely follows
j " good
industries
into, they
greatly
in performance;, not all of them
go up in an inflation.
So,
I' in the part of your investment which is in common stocks,
you should spread the risk thin —as in a mutual fund.
..
$76,535,888 on
Nov. 30, 1951 compared with $62,923,792 on Dec. 31,
1950.
Per
share
offering
price
increased
from $31.15 to $33.40.
The five
largest common stock holdings by
Average market price of bonds
Oct. 31, 1951 were
$212,369,100, it held on Oct. 31 was $833 compar¬
is disclosed by the annual
reports ing with average cost of $824.
of Keystone Funds B2 and S3. On
Before-tax earnings of the is¬
-
in the second
Balanced
were
%had lost 45% of their value!
of 36
and that the value of stocks fluctuate—almost
;
HOWARD
&
assets
Milling
companion Alice would
point!"'
If
Fund
dollars today and dollars we
plans. So, the dollars attained
31, 1950.
with them.
But,
J
EATON
the safest.
share
for each mutual fund share!
Of
$13.29 per share, be¬
ing 21% higher than its net asset
value of $10.98 per share on Nov.
30, 1950.
jf-^4prospectus from
we
stocks.
common
50 shares of Bethlehem
:
its
of
amounted to
;
Instead of
period, net assets
Aviation Group Shares
same
you, there are no absolutes.
stocks, real estate, and the like, dollars
common
course a
means
real it would
«-•'
For the
Alice will tell
as
Just like
are,
Shares
of the absolute.
aura
■-■jBut
;
.
yesterday,
would need for tomorrow's
the
world,:then;
money
about dollars
dollars fluctuate;
can
absolutes in this
are no
^
How different
does have this peculiar virtue of
smoothing the path of trade and commerce, and because
we like to think
ahead, we got into the habit of thinking
,
absolute
an
'
fluctuate too.
Alice, "How
!>?£'-.
-
Because
.
Group
denominator for
a thousand different
goods—so it's
handy as a unit of account. It's also a good standard of
value—by that we mean that everybody agrees to use it
as a
single system of expressing prices and cost relation¬
ships.
us.
and the
course; we can say with
in terms of dollars?"
...
money because they need it
comparing the prices of vari¬
goods. It's also easier to keep books in terms of money
ous
Bond
30, 1950.
;
rather than in terms of
have is about money
we
you
People think in terms of
as a common
constant—except perhaps the pervasive
find a "North Star," an arbitrary standard
&
$16.82 per share, be¬
ing 17% higher than its net asset
value of $14.38 per share on Nov.
Money of course has useful functions, and because it
is useful it illegitimately came to be regarded as a safe
On
Alice
Stock
amounted to
,
By ROBERT R. RICH
103
Name........
Addrca
Loud, Abbett & Co.
New York
—
Chicago
—
Atlanta
—
Lm Angeles
Cry...:
...Stare
-
....
d 22
104
The Commercial and Financial Chronicle
(2344)
The
Indications of Current
latest week
week
Business Activity
capacity).
-Dec. 16
Week
Ago
i;; ■' 103.6
104.1
—Dec. 16
month ended
2,071,000
2,081,000
on
that date,
JJMERICAN PETKOLEOI INSTITUTE:
Crude oil and condensate output —daily
aveiage
gallons each) TrrrT""""
Crude runs to stills—daily average (bbls.)Gasoline output (bbls.)
—
(bbls.)
output
Kerosene
BUILDING
101.3
Kerosene
Residual
1,953,800
2,021,000
Private
•
I.
6,232,176
6,246,350
'"tw
6,287,800
6,757.000
6,543,000
.1
.
22,057,000
'19,917,000
2,862,000
2,737,000
2,581.000
•
4
M,,
■
ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)—l—
10,271,000
9,428,000
9,305,000
9,226,000
8,613,000
8,792,000
8,521,000
0,180,000
111,698,000
112,478,000
30,377000
96,308,000
46,791,000
109,513,000
<31,661,000
33,522,000
98,966,000
'
103,177,000
47,591,000
.
48,570,000
V
Other
80
Dec.
1
received from connections (number of cars)—.—Dec.
1
837,743
building—
i>
!"
State
240,813,000
construction
and municipal
115,966,000
85,693,000
Federal
...
r
<
...
.
63,375,000
73,832,000
43,935,000
54,267,000
29,253,000
19,440,000
19,565,000
109,488,000
265,282,000
6'Vt
KmUiUUlUUB
Bituminous
r
.
'■'
Dec.
Pennsylvania anthracite (tons)
Beehive coke (tons)
1_ "
Dec.
Dec.
_
—
1
~
1
1
-
12,175,000
RESERVE SYS-Dec<
Dec.
8
*10,120,000
11,260,000
STREET, INC.
INDUSTRIAL)—DUN
AND
841,000
673,000
Dec.
Z" 143,500
Sewer
'
*354
464
444
349
and
other
BUSINESS
7,475,693
7,396,115
6,908,631
148
136
150
170
4.131c
4.1310
Dec.
Scrap steel (per gross ton),
4
4.131c
electrolytic
& M. J.
$52.72
$52.72
$52.72
4
$42.00
$42.00
$42.00
$40.75
1__
facilities-,
naval
5
24.200c
24.200c
24.200c
5
27.425c
27.425c
27.425c
CIVIL
5
103.000c
103.000c
103.000c
139.500c
Dec.
5
19.000c
19.000c
19.000c
5
18.800c
18.800c
18.800c
16.800c
Dec.
5
19.500c
19.500c
19.500c
14
Government Bonds—
Dec. 11
.
97.00
97.65
) 101.33
108.52
108.88
109.60
V115.43
Dec. 11
.
97.14
Dec. 11
113.12
113.31
114.08
111.81
112.37
113.12
113.40
107.62
107.44
Dec. 11
108.70
of
NEW
.19
"73
6
&
v
•;
7
BRADSTREET,
September
5,957
■■\
DEPT.
OF
SERIES —Month
6,277
6,496
;
COM¬
of
Sep¬
?■:'
$40,987
10,067
'
$40,576
18,810
10,074
19.429
$69,864
U.
$1,024,775
638,258
386,517
V
•
$30,123
:
"
$70,079
$1,026,973
■
8,424
16,599
CONSTRUCTION
NEWS-RECORD
Month
—
$55,146
EN¬
—
of
(000's omitted):
S.
construction
construction
construction
State
and
municipal
653,378
$1,012,046
518,944
373,595
493,102
"
284,770
205,262
,_T_
101,747
168,333.
GINNING (DEPT. OF COMMERCE):
Running bales (excl. of linters) to Dec. 1
12,802,634
i.
Federal
392,592
100,510
jp.
COTTON
PRODUCTION
—
U.
S.
AGRICULTURE—Estimates
as
DEPT.
8,785,265
>
OF
of Dec. 1:
Production 500-lb. gross bales
102.30
102.46
103.30
AVERAGE
104.14
104.66
105.86
111.62
Dec. 11
108.52
108.52
109.42
Dec. 11
113.31
113.31
113.70
ESTIMATE —U.
S.
15,771,000
10,012,00$
DEPT.
OF
LABOR—Month of October:
109.24
Dec. 11
15,290,000
FACTORY EARNINGS AND HOURS—WEEKLY
114.66
Dec. 11
Railroad Group
Public Utilities Group
Industrials Group
79
119.61
Dec. 11
Average corporate
Aaa
26
>69
16
r
*
COTTON
MOODY'S BOND PRICES DAILY AVERAGES:
CJ. fl.
-
"•221
61
:
(millions of dollars):
Public
17.500c
'
-
!
250
S5
75
17.000c
Dec.
;
_
<45
123
190
;
•' 42
:
31
V 5
ENGINEERING
24.425c
Dec.
_
112
48
123
.
s
Total
24.200c
Dec.
:
V
28
.
;
water
INVENTORIES,
Private
_Dec.
Export refinery at
Straits tin (New York) at—
Lead (New York) at—
Lead (St. Louis) at
Zinc (East St. Louis) at—
125
46
663
1, 228
-29
106-
115
,
V 31
<; 310-
100
:
Total
at
7
v
'
69'
$51.94
copper—
Oomestio refinery
6
914
■T1':.
289
Manufacturing
QUOTATIONS):
.
38
70
i
STATES—DUN
November
(E.
32
209
"
821
L_
GINEERING
•PETAL PRICES
38
37
INCORPORATIONS (NEW) IN THE
BUSINESS
4.131c
4
Dec.
_
279
278
_____________________
Wholesale
Dec.
lb.)_
(per gross ton)
353
35
,6
public
UNITED
;
«RON AGE COMPOSITE PRICES:
Finished steel (per
81
263
Retail
Pig iron
'
♦
38
-
Miscellaneous public service enterprises
Conservation and development
82,600
6
13
1
108
336
;
nonresidential
tember
——
_
30
23
'
and
Military and
Highways
841,000
*136,000
BRAD-
&
22
38
19
construction
MERCE
(COMMERCIAL
FAILURES
40
29
9
35
Hospital and institutional
9,413,000
146,500
7,443,964
33
29
.
92
_
•:
INC.—Month
CDISON ELECTRIC INSTITUTE:
eectric output (in 000 kwh.)
47
,
1,047.000
1
134
________
telegraph
iitilitics____,„_l___
private___;
other
All
DEPARTMENT STORE SALES INDEX—'FEDERAL
REM—1935-89 AVERAGE = 100
130
__T
*
Educational
'
>•
(U. S. BUREAU OF MINES):
H.1IU
—
and lignite (w«u,
(tons)
coal
UUttl
102
114
public
Other
COAL OUTPUT
47
8
Nonresidential building
Industrial
374,770,000
54,044,000
Dec.
r———
»• • • <••-
.149
36
42
__
utilities
Residential building
110,105,000
83,297,000
Dec.
—
83
.
31
25
recreational
construction"
Telephone
All
$484,875,000
*rec*
construction
Public
$159,525,000
129
i
and
Railroad
V
Public
$179,341,000
177
?
—
Hospital and institutional
Public
595,558
$324,110,000
IB
403
"
:
Dec.
73
.
14
390
,
ENGINEERING NEWS-
'
89
13
27
f
Total U. S. construction
1,901
342
73
Educational
740,165
696,496
$2,569
155
nonresidential
Social
;
654,691
646,847
'
;_
26,491,000
84,891,000
45,221,000
■
Private
1,049
Warehouses, office and loft buildings.—
Stores, restaurants, and garag.es____^_-
Other
RECORD:
840
Commercial
109,509,000
711,447
821,776
—
1,131
825
(noniarm)
Miscellaneous V
CONSTRUCTION
943
Industrial-
Farm
CIVIL ENGINEERING
1,800
918
!___
_
Nonresidential
'
Revenue freight
$2,714
1,694
and'alterations
Nonhousekeeping
building
6,034.000
22,181,000
2,627,000
'-Jw
£ec<
"
$2,515
____
(nonfarm)—
dwelling units__
Additions
v
5,825.220
116,700,000
22,346,000
—~-_uec.
—--———-——Dec.
.
Ago
1—
construction
New
■
f
Year
Month
OF
LABOR—Month of November (in millions):
*
bulk terminals, in transit and in pipe lines—
and unfinished gasoline (bbls.) at
Dec.
(bbls.) at__
———
---■
j*®*
fuel oil (bbls.) at
Dec.
fuel oil (bbls.) at—___
—
..Distillate
.
S. DEPT.
Total new construction
Stocks at refineries, at
Finished
CONSTRUCTION—U.
Previous
Month
Ago
101.1
of that date:
are as
Latest
ao
(bbls.
—
(bbls.)
fuel oil output (bbls.)
Besidual
of quotations,
cases
the^
either for the
are
Residential building
•*.
Distillate fuel oil output
in
or,
Year
.
-
production and other figures for
cover
Dates shown in first column
month available.
Month
Week
STEEL INSTITUTE:
operations (percent of
Equivalent to—
,
Bteel ingots and castings (net tons),
Indicated steel
or
or
Previous
Latest
AMERICAN IKON AND
following statistical tabulations
Thursday, December 13, 195}
...
Earnings—
All
115.63
manufacturing
$65.17
Z
*$65:45
r
".
Durable
119.00
goods
Nondurable
70.84
goods
Z
'
'
.
$61.99
"
*70B4
.
57.85
40.4
*40;6
66.39
"
<
*58.75
56.53
Hours—
MOODY'S BOND YIELD DAILY AVERAGES:
U. 8.
All
Government Bonds
Dec. 11
2.70
2.G6
Average corporate
Dec. 11
3.25
3.23
3.19
2.88
Aaa
Dec. 11
3.00
2.99
2.95
2.67
Dec. 11
3.07
3.04
3.00
2.73
Aa
:—_
2.69
2.40
manufacturing
Durable goods
Nondurable goods
All
manufacturing
A
Dec. 11
3.31
3.30
3.24
2.92
Durable
Baa
Dec. 11
3.61
3,60
3.55
3.21
Nondurable
Railroad
Group
Dec. 11
3.47
3.40
3.25
3.25
3.20
2.87
41.3
*41.6
•39.4
40.3
c,..r
42.1
$1,613
goods
$1,612
1.491
-
1.577
*1.491
.
$1,501
*1.703
1.703
goods
1.40*
3.08
Dec. 11
Public Utilities Group
Industrials Group
3.50
',4''Z
41.6
38.8
Hourly earnings—
Dec. 11
2.99
2.99
2.97
LIFE
2.70
INSURANCE
PURCHASES
—
INSTITUTE
OF LIFE INSURANCE—Month of
September
-Z',V-Z:'1 i'V.
(OOO's omitted):
Ordinary
Dec. 11
460.3
459.7
459.8
487.0
$1,285,000
$1,460,000
$1,440,000
Industrial
449,000
424,000
411,000
Group
MOODY'S COMMODITY INDEX
212,000
281,000
617,000
$1,946,000
$2,165,000
$2,468,000
*$20,926
$14,486
15,637
NATIONAL PAPERBOARD ASSOCIATION:
Orders
received
(tons)
-Dec.
Percentage of activity
Unfilled orders (tons) at end of period
OIL,
PAINT
AND
AVERAGE
=
DRUG
REPORTER
1
-Dec.
Production (tons)
1
179,689
144,151
207,910
232,728
—Dec.
INDEX-
1
80
75
85
101
—Dec.
PRICE
Total
295,064
184,691
192,085
297,394
1
265,363
382,247
487,788
MANUFACTURERS'
722,046
(DEPT.
OF
INVENTORIES
COMMERCE)
Month
of September
Inventories:
■1926-36
&
NEW
(millions
SALES
SERIES—
of dollars):
;
Durable
100
Dec.
7
147.2
148.1
149.1
$21,306
Nondurable
142.7
19,650
$40,987
$40,576
21,810
22,583
$20,288,000
$28,156,000
STOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODDLOT
DEALERS
AND
SPECIALISTS
ON
THE
N.
Y.
STOCK
EXCHANGE—SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—
Number of
,<
orders
Nov. 24
22,305
21,292
42,697
Number of shares
Nov. 24
618,109
608,024
Nov. 24
$27,462,391
$26,845,662
1,224.448
$53,842,025
$36,194,964
Nov. 24
16,917
17,623
32,865
29,994
Customers'
other
Customers'
short
other
Nov. 24
sales
278
16,718
468,733
17,467
495,191
6,429
5,436
462 304
489,755
32,333
971,059
17,049
954,010
$19,954,455
$20,514,489
$41,923,238
Nov. 24
—As of Sept. 30
(000's
WEIGHTED
MOODY'S
126,020
127,850
265,550
200
COMMON
26~5~,550
Railroad
YIELD
STOCKS —Month
of
Nov.:
(125)
5.86
6.15
6.45
6.41
6.86
5.71
(24)
5.77
6.10
Banks
29,716
(15)
Insurance
892,102
10,965
.
Nov. 21
251,720
263,070
487,220
4,64
■
'
4.77
$34,602,286
UNITED
fund
3.43
$258,335,674
4,873,884
$257,100,124
$253,461,790
$252,960,827
2.204%
$275,000,000
$275,000,000
$275,000,000
259,604,103
258,298,191
257,076,619
37,483
23,504
$259,646,943
$258,335,674
$257,100,124
1 668,203
670,412
707,084
$258,978,739
DEBT
DIRECT
$257,665,262
$256,393,040
16,021,260
17,334.737
18,606,95$
AND
omitted):
balances
4,624,091
annual
rate
>.
2.310%
of
Nov.
30
(000's omitted):
■
Livestock
^Meats
***
All commodities
other
than farm
and
foodsZZZZZZZZ
Textile products
Fuel and lighting materials
Metals and metal products
Building
i
;•
«f,
and
♦Revised.
f
'
allied
$Not
available,
193.3
186.2
4
1 q<? 1
197.8
191.3
175.0
4
239.8
243.5
246.7
225.5
187,5
173.6
189.9
190.1
177.9
269.4
279.2
t
3
165.2
165.2
165.1
4
159 6
*159.1
158.1
168.6
4
138 8
138.8
138.7
135.1
iqn q
190.9
190.9
183.5
^24 7
224.7
223.9
""Dec
4
847 5
347.5
345.6
t
4
140.9
137.5
1
(Includes 448,000
barrels
of
foreign crude
139.4
runs.
Total face
at
amount
that
may
Total
public debt
Guaranteed obligations
gross
not
139.9
220.7
Total
gross
public
debt
owned
by
the
and
obligations
guaranteed
1
Deduct—other
outstanding public debt obli¬
gations not subject to debt limitation
Grand
total
:
outstanding-
Balance face
amount
able under above
of
*
be outstanding
time
Outstanding—
any
245.5
ZZlDec.
products
-"i
177.2
*197.8
4
__
——
Chemicals
*177.7
193.9
4
"tW
materials
Lumber
'
Dpr
ZZZZZZZZ" Dec'
Z
Z
Dec
177 q
4
4
—dm.
—
4
4,139.297
S. GOVT. STATUTORY DEBT LIMITATION
As
Dec
4.61
6.80
$255,022,852
2.307%
GROSS
debt
Computed
276,170
100:
Grains
'
6.02
$259,646,943
STATES
As of Nov. 30
U.
Dec
V
3.44
5.78
881,137
PRICES, NEW SERIES —U. S. DEPT. OF LABOR—
~Dec!
.
3.47
(200)__
General
126,020
.
(10).
42,840
Average
Net
Farm products
7.12
295Z630
■
Nov. 24
Nov. 24
All commodities
$27,161,000
OF
(25)
^Utilities
295,630
127^850
,
purchases by dealers—
Number of shares
omitted)
AVERAGE
GUARANTEED—(000'S
sales
WHOLESALE
=
532
Nov. 24
,
Other sales
1926
156
Nov. 24
Round-lot sales by dealers—
Number of shares—Total sales
;
199
Nov. 24
value
Short
27,555
855.784
Nov. 24
sales
sales.
20,977
'
Nov. 24
Customers'
Round-lot
'
Industrial
Number of shares—Total sales
Dollar
"
v
short sales
Customers'
,
<
$30,123
<
MONEY IN CIRCULATION—TREASURY DEPT,
Oollar value
Odd-lot purchases by dealers (customers', sales)—
Number of orders—Customers' total sales
:
19,681
obligations, issue-
authority
_
.
""
-«
■
—
'7
Vt
fTolume 174
Number 5072
..,
The Commercial and Financial Chronicle
(2345).
[Securities Now in Registration
'
New Registrations and
American
Filings
McKesson &
.
Dec. 5 filed
Airlines, Inc., New York
Robbins, Inc., New York
100,000 shares of common stock (par $18)
an "executive stock purchase plan"
to be offered under
Dec. 5 filed 750,000 shares of common stock (par $1), of
to
Which 143,000 shares are to be offered to executive em¬
writer— None.
ployees through outstanding options at $11.70 per share,
and 607,000 shares are to be offered to employees through
above? options. Underwriter — None.
Proceeds — For
Working capital.
Underwriter—None.
stock
Price—$7 per share.
Underwriter—
New York. Proceeds—For work¬
ing capital and to procure additional equipment. Office
—12-24 Congress Street, Beverly, Mass.
Proceeds—For
Moore
P. O. Box 3861, San Juan, Puerto Rico.
Atlantic Steel Boiler Co., Inc.
Dec. 10 (letter of notification) 1,250 shares of 6% cumu¬
lative preferred stock (par $20) and 4,100 shares of class
he
}
North Jersey Finance Service,
$100 each).
Office—
Dec. 5
Castle
(A. M.)
Underwriter—None.
Dec.
5.
holder.
Paul Valve
Dec.
500
:
7
Smith
(letter
Corp.,
of
common
4,997
shares
common
Offered—Tentatively
Dec.
&
Gamble
Sharing Dividend Plan
Stock Purchase Plan filed 2,000
Underwriter—None.
filed
11
$2,400,000
Inc.
three-year interim
notes due
stock
of $25 par,
supplied by amendment.
Underwriter—The First Bos¬
ton Corp., New York.
Proceeds—To help finance ex¬
pansion program and company's changeover to natural
gas.
Offering—Expected to take place about Jan. 9, 1952.
Dec. 7 (letter of notification) 200 shares of common stock
stock.
Price—At par (10 cents per share).
Proceeds—To Forrest Parrott, the
Underwrites*
selling stock¬
holder. Office—3109 Apco Tower, Oklahoma City, Oklaw
Warner-Hudnut, Inc.
Dec.
12 filed
293,960 shares of common stock (par $X1
exchange for 146,980 shares of Maltinc?
Underwriter—None.
to be offered in
Co.
on
a
two-for-one basis.
Western Light & Telephone Co., Inc.
(letter of notification) 13,577 shares of common
stock
mon
held.
(par $10), to be offered for subscription by com¬
stockholders at rate of
Price—$20
one
share for each 23 shares
share.
Underwriter—None, bu1r
Harris, Hall & Co. (Inc.) and The First Trust Co. ad
Lincoln, Neb., will act as dealer-managers. Proceeds—*
per
:
/
Previous Registrations and
X
Filings
ir American Bosch Corp., Springfield, Mass.
Nov. 13 filed 65,450 shares of cumulative convertibles
second preferred stock, 1951 series, to be offered to com*
stockholders at rate
of
share of
preferred fox?
over-subscriptioi¥
privileges). Price—To be supplied by amendment. Un«
derwriter—Allen & Co., New York. Proceeds—For capir*
tal expenditures and working capital and other corporate
purposes. Offering—Not expected until after Jan. 1.
each
20
shares
common
one
held
(with
if American Brake Shoe Co.
June 29 filed 50,000 shares of common
stock (no par) tothrough*
be offered to certain officers and key employees
stock
a
greater than
the offering, or no lesi>
Underwriter—None. Proceeds
Price—To be not
purchase plan.
the market price on the date of
85%
of such price.
—To be added to
withdrawn
on
general funds.
Withdrawal—Statements-
Nov. 30.
-American Investment Co. of Illinois
Aug. 16 filed 167,105 shares of $1.25 cumulative convert*
ible preference stock, series A (par $25), being offered!*
in
exchange for common stock of Domestic Finance!
Corp., Chicago, 111. on basis of one American share Sm>
each five Domestic common shares; the offer to explii!
on
Sept. 30, 1952. Dealer-Managers—Kidder, PeabodjJ
&
Co., New York, and Alex. Brown & Sons, Baltimore*,
Statement effective Sept. 5.
Md.
American Motor Racing Corp.
'
60,000 shares of preferred?
of common stock (no pax^
preferred and one share of com**
Nov. 14 (letter of notification)
stock (par $5) and 1,200 shares
in units of 50 shares of
Continued
on
page
100
Inc., Waltham, Mass.
Dec. 7 (letter of notification) 35,000 shares of class A
stock (par $1) and 300 shares of class B stock (par $1).
Price—$5 per share.
Underwriter—None.
Proceeds—
To purchase equipment.
Office—135 Bacon Street, Walt-
(par 50
ham, Mass.
cents), of which 30,200 are for the account of the com¬
Smith
pany
Dec.
3
*
(Alexander), Inc.
(letter of notification)
(12/20)
6,250 shares of common
Price—Approximately $16 per share.
Under¬
Sons, Baltimore, Md. Proceeds
—To Alexander S. Cochran, the selling stockholder.
stock.
writer—Alex. Brown &
Southern Oxygen Co., Bladensburg, Md.
10 filed $1,400,000 of convertible subordinated
Dec. 5 (letter of
Dec.
deferred debentures
bentures due Jan.
f
Sanders Associates,
(par $1). Price—$6 per share. Underwriter—None. Pro¬
ceeds—To Carlton M. Higbie, Jr., the selling stockholder.
■
(1/9)
at rate of one preferred share
for each $25 principal amount of notes).
Price—To be
'1; Higbie Manufacturing Co., Rochester, Mich.
N. J.
City, Okla.
(letter of notification) 400,000 shares of common
than
1, 1955 (to be payable at maturity at company's
option in an equivalent par value of convertible pre¬
per
Inc., Union, N. J.
notification) $250,000 of 5% cumulative
maturing in 5, 10 or 20 years from
date of issuance.
Price—At par (in 'denominations of
$100 each). Underwriter—None. Proceeds—To increase
lending capacity. Office—983 Stuyvesant Avenue, Union,
Gamble Co.
Jan.
of capital
share).
Underwriter—
None.
Proceeds—For machinery and working, capital.
Office—2623 San Pablo Avenue, Oakland, Calif.
•
Lincoln Loan Co.,
Procter
ferred
Glore, Forgan & Co., all of New York.
Proceeds—To
company, to be used for working capital.
Proceeds—To repay bank
construction.
Public Service Co. of North Carolina,
'
and 384,860 are owned by W. K. Kellogg Founda¬
tion.
Price—To be supplied by amendment.
Under¬
writers—Morgan Stanley & Co., Clark, Dodge & Co. and
&
stockholders.
Proceeds—
Kellogg Co., Battle Creek, Mich.
12 filed 415,060 shares of common stock
new
participations in Profit Shaving Dividend Plan, 1,100
participations in Stock Purchase Plan, and 34,000 shares
of common stock (no par) to be purchased by trustees
for the plans for company stockholders from
selling
Harvestaire Corp., Oakland, Calif.
Dec. 3 (letter of notification) 73,295 shares
Dec.
supplied by amendment.
Philadelphia, Pa.; and Mor¬
Stanley & Co., New York.
and
(par $100). Price—To be supplied by amendment. Un¬
derwriters—Kidder, Peabody & Co. and Merrill Lynch,
($1
United Oil Corp., Oklahoma
Dec. 4
mon
Price—To be
Nov. 29 Procter & Gamble Profit
Florida Power Corp.
par
1982.
Procter
Dec. 12 filed 51,550 shares of convertible preferred stock
Price—At
due
(1/8-9)
and refunding mortgage
Phillips Packing Co., Inc., Cambridge, Md.
notification) 600 shares of common stock
(no par). Price—At $9.25 per share, or market.
Under¬
writer—Alex. Brown & Sons, Baltimore, Md.
Proceeds
—To Albanus Phillips, Jr., the selling stockholder.
Industries, Inc.
Dec. 4 (letter of notification) 299,500 shares of common
stock (par 10 cents).
Price—$1 per share. Underwriter
■—I. J. Schenin Co., New York.
Proceeds — For new
Stock.
Arlington Avenue, East Orange, N. J.
Dec. 3 (letter of
Disco
Pierce, Fenner & Beane, both of New York.
For construction program.
a $1,000 debenture
Price—$1,066 per unit.
Proceeds—For current operations.
$35,000,000 first
loans and for
•
of
filed
10
bonds
sylvania St., Indianapolis, Ind.
equipment and working capital.
scheduled for today (Dec. 13).
Tyler Fixture Corp., Niles, Mich.
(letter of notification) 13,500 shares of commMI
stock (par $1).
Price—$7.37% per share. Underwrite!?
—Morgan & Co., Los Angeles, Calif,.'Proceeds—To Leott
L. and Minnie S. Tyler, two selling stockholders.
Offfaft
—1401 Lake Street, Niles, Mich.
v
X.-:
Dec. 4
units of
Underwriters—Drexel & Co.,
(par $8). Price—$18.50 per share. Underwriter—
Raffensperger, Hughes & Co., Inc.
Indianapolis, Ind.
Proceeds—For working capital.
Office—118 So. Penn¬
:*•
offered in
Philadelphia Electric Co.
stock
v
Transgulf Corp., Houston, Tex.
3 (letter of notification) 200,000 shares of capital
stock (par 10 cents).
Price—$1.05 per share.
Under¬
writer—None.
Proceeds—For working capital.
Offfe&
—1 Main Street, Houston, Tex.
»
~
Dec.
For construction program.
Corp., East Orange, N. J.
stock to be
Dec.
gan
Indianapolis, Ind.
of notification)
Inc.
(letter of notification) 20,000 shares of class >"AL
stock (par 10 cents).
Price—At market (about $2.37^4
per share).
Underwriter—Gearhart, Kinnard & Oti%
Inc., New York. Proceeds—To O. Roy Chalk, President
the selling stockholder.
3
(letter of notification) $50,000 of debentures (in
Office—545 No.
Price—At market (about $6.62^ per share).
Dallas
Office—2409 Transit Tower, San Antonio 5, Tex.
Trans Caribbean Air Cargo Lines,
and 660 shares of common stock.
Vice-President, who is the selling stockholder.
Dec.
7
mon
Proceeds—For
shares
tal.
denominations of $1,000 each) and 33,000 shares of com¬
(par $1).
Un¬
derwriter—None, but will be offered through Hecker &
Co., Philadelphia, Pa. Proceeds—To Cary William Bok,
7
Underwriter
selling stock¬
Office—Petroleum Bldg., Oklahoma City, Okla.
Underwriter—None.
(letter* of notification)
Corp., San Antonio, Tex.
(letter of notification) 10,000 shares of commoa
(no par).
Price—$10 per share.
Underwriter—+
Wood, Struthers & Co., San Antonio, Tex.
Proceeds*—
To purchase Aztec Ceramics, Inc., and for working capt«
stock
Dec. 3
Price—At par (10 cents per share).
—None.
Proceeds—To Forrest Parrott, the
Curtis Publishing Co., Phila., Pa.
stock.
date
$100
(letter of notification) 200,000 shares of common
stock.
investment.
;•
Texstar
—None.
Producers, Inc., Oklahoma City, Okla.
Dec. 3
Composite Fund, Inc., Spokane, Wash.
10 filed 200,000 shares of capital stock
—
S. C.
(letter of notification) $250,000 of 5% cumulative
Oil
& Co., Chicago, III.
Dec.
—
liquidation of bank loans. Address—Box 305, Greenville^
ing capacity. Office—586 Newark Ave., Jersey City, N. J.
(par $10). Price—At market (approximately $16.87Yi per
share). Underwriters—Lee Higginson Corp. and Blunt
Ellis & Simmons, both of Chicago, 111.
Proceeds — To
Estate of William B. Simpson, deceased.
Price—At market.
Office—68 Hudson St., Hoboken, N. J.
each). Underwriter—None. Proceeds—To increase lend¬
Dec. 6 (letter of notification) 6,000 shares of capital stock
;
Proceeds—To increase
deferred debentures due in 5, 10 or 20 years from
of issuance.
Price—At par (in denominations of
to be offered in units of
$900 of production
agreement units and 1,000 shares of stock. Price—$1,000
per unit.
Underwriter—None.
Proceeds—For mining
machinery and equipment. Office—14 No. Second Street,
Walla Walla, Wash. :
•
'
Hoboken, N. J.
North Jersey Finance Service of Jersey City
t- :;
(N. J.)
7^7
V V
stock
ment units
Underwriter—None.
lending capacity.
Street, Las Vegas, Nev.
Canyon Lode Mining Co., Walla Walla, Wash.
(letter of notification) 100,000 shares of common
(par 10 cents) and $90,000 of production agree¬
100%.
Dec. 5 (letter of notification) $250,000 of 5% cumulative
deferred debentures maturing in 5, 10 or 20 years from
date of issuance.
Price—At par (in denominations of
Co., Las Vegas, Nev.
Dec. 3
Calif.
.
Dec. 5 (letter of notification) 100,000 shares of common
stock.
Price—At par ($1 per share).
Underwriter—
608 So. 4th
& Co., Pasadena,
offered in exchange, par for par, for
Price—At
.
wells.
(F. C.)
standing 5%%
publicly. Price—$3 per share. Underwriter—Davies &
Co., San Francisco, Calif. Proceeds—To retire debt and
for working capital. Office —1285 Rollins Road, Bur¬
lingame, Calif.- ;V.C; vVV
and gas
Co.,
Proceeds—For investment.
$92,600 of out¬
cumulative preferred stock (par $100).
Underwriter—Pasadena Corp., Pasa¬
dena, Calif. Proceeds—To redeem unexchanged preferred
stock and for working capital. Office—141 East Colorado
St.,-Pasadena 1, Calif.
:7/77;7.7
-v.
Manufacturing Co., Burlingame, Calif.
85,000 shares of capital
$1), of which 10,000 shares are to be offered
Proceeds—To drill oil
Price
Underwriter—Mutual Management
market.
Nash
in retirement of indebtedness and 75,000 shares offered
None.
at
Dec. 7 (letter of notification) $200,000 of 5%% convert¬
ible debentures, of which $92,600 principal amount will
(letter of notification)
Bonanza Oil &Gas
6
Dec.
New York.
(par $10).
Benbow
7
International
Chemicals, Inc., Greenville, S. C.
(letter of notification) 20,000 shares of class S
(non-voting) capital stock. Price—$10 per share. Under**
writer
None.
Proceeds
For additions to plant anil
Dec.
Nov. 27
—
Price—At par. Underwriter
—None.
Proceeds—For acquisition of plants, etc., and
working capital.
Office—22nd Street and Washington
Avenue, Philadelphia, Pa.
Dec.
Sylvan Products, Inc., Contralia, Wash.
29 (letter of notification) 20 shares of common
stock. Price—At par
($5,000 per share). Underwriter--^,
None. Proceeds-^For working
capital. Address—P. (X
Box 449,
Centralia, Wash.
Mutual Investment Fund, Inc., New York
Dec. 15 filed 75,000 shares of capital stock (par $1).
stock
ADDITIONS
INDICATES
Nov.
Television, Inc., N. Y.
Dec. 5 (letter of notification) 299,000 shares of common
stock.
Price—At par ($1 per share).
Underwriter—
None.
Proceeds—For production of films for television
presentation and general working capital. -Office — 20
East 53rd Street, New York, N. Y.
1,550 shares of 8% cumulative preferred stock. Price
—At par ($100 per share). Underwriter—None. Proceeds
—To purchase machinery and equipment.
Address—
stock (par
(par $5).
D. A. Lomasney & Co.,
and
A common stock
•
Texlze
Metal Hydrides Inc., Beverly, Mass.
(letter of notification) 39,700 shares of common
Dec. 3
Investment.
Ansuco Corp., San Juan, Puerto Rico
Dec. 7 (letter of notification) 200 shares of common
—
* REVISIONS THIS WEEK
poses.
American Trusteed Funds, Inc., New York
Vec. 10 filed 500,000 "Lexington Trust Fund Shares."
Price—At market.
employees of company and its subsidiaries. Under¬
Proceeds
For general corporate pur¬
1®
shares of
common
1, 1962
(convertible
on
de¬
basis of five
Price
stock for each $100 debenture).
supplied by amendment.
Underwriter—John¬
Lemon & Co., Washington, D. C.
Proceeds—To
repay notes and for working capital.
—To
ston,
be
New York
Boston
Philadelphia
Pittsburgh
San Francisco
Chicago
Cleveland
f
Private Wires to all
offices
:0C
The Commercial and Financial Chronicle
(234(3)'
Continued
ir Exofon Co., Boston, Mass.
Nov. 21 (letter of notification) 12,653 shares of common
_
per unit.
Underwriter—None
acquisition of property, construction oi
stock
stock/ Price—$250
mon
f*roceeds
face
from page 105
—
For
track, etc.
Office—c/o Morris Orenstein, 31 MamarPlains, N. Y.
/
-
^neck Ave., White
Precision
.Arwood
,
„
Federated
Lehman
Birmingham Fire Insurance Co.
(letter of notification) 12,500 shares of
of
one
share
shares held. Price—At
rights to
Proceeds
—
For expansion
Citrus Concentrate Cooperative
Proceeds—To
centrate plant at
plant
sinking fund debentures due Oct. 1, 1966.
Wahler, White & Co., Kansas City, Mo.
construct and
equip frozen
fering-ZTemporarily delayed.
con¬
Golconda
Mines
Ltd.,
Iowa
Catalin
New York.
Corp. of America
rate of
share for each two shares held.
one
to
at
Grand
Price—To be
stock
(par $10)
being offered for subscription
by holders of* 6% preferred stock and
seven
stockholder.
Co.
share of
(par
Montreal, Canada
new
common for each seven shares of
For
Deardorf Oil Corp., Oklahoma
City, Okla.
Sept. 24 (letter of notification) 175,000 shares of
stock (par 10 cents). Price—40
cents per share.
Walnut
common
Proceeds—For operating expenses.
fice—219 Fidelity
Building, Oklahoma City, Okla.
St.,
W.
25,000 shares of class B
and
promotion expenses.
Airport, Norwood, Mass.
to be offered in units of
are
eight shares of class A
B; the remaining 25,000 class B
shares are to be issued for an
option to acquire the
Schutter Candy Division of Universal Match
Corp. Price
and
one
share
of class
Knori>Maynard, Inc., Detroit, Mich.
31 (letter of notification) $250,000 of 6%
Oct.
—$82
(1/3)
of
which
133,202 shares
stockholders of record
each 50 shares held.
Jan.
3
and
.
Jan.
are
Dec.
of
common stock (par $15)
to be offered to-common
14
at rate
Subscriptions
25, 1952.
The
Price—$82.50
per
one
share
for
remaining 66,798 shares
°^er^d to employees of
subsidiaries.
of
must be filed between
the
share.
company and its
Underwriter—
None.
Proceeds—For capital additions to
plants and fa¬
culties and for other corporate
purposes.
•
Mo.
stock
5743
Woodward Ave., Detroit 2, Mich.
22
No. Canton, O.
(letter of notification)
Co., Columbia, S. C. :
-"/V
(letter of notification) 925 shares of commons.'/
stock, to be offered to present stockholders for subscrip- 7 ;
tion and in exchange for outstanding debentures:■•'Priw-**> ;>♦>
At par- ($100 per share)*? Underwriter-^None.- Proceeds
Oct.
22
—To retine debt.
(par $2.50).
Price—$18
per
Hornblower & Weeks, New York.
W. Steele, the selling stockholder.
of
common
share. Underwriter—
Proceeds—To William
Office—1526 Main Stj Columbia. S. C.
Lawyers Title Insurance Corp., Richmond, Va.
■;<
Oct. 16 filed 60,000 shares of capital stock (par $5), being r
offered to/stockholders of record Nov. 8 at rate of one ?:
-
•
,
share for each nine shares held; rights to expire Dec. 20.
Unsubscribed shares will be offered
for
sale
in
one
^:
V :
lot
4
at
.
auction
Dec.
on
21.
Underwriter—None.
if Lindemann
4.000 shares
<>/;
■■
Kohn &
*
for investment.
Hoover Co.,
Oct.
.
10-year
debentures, due 1961. Price—At par (in denominations
of $1,000 .each).
Underwriter—Lang-Heenan & Co., Detroit, Michi/' Proceeds — For working capital. Office—
Metropolitan
Hex Foods, Inc., Kansas City, Mo.
Aug. 1 (letter of notification) 89 shares of 6% cumula¬
tive preferred stock fpar $100) and 424 shares of com¬
mon stock
(no par). Price—For preferred, at par; and
for common, at $20 per share. Underwriter— Prugh,
Combest & Land, Inc., Kansas City, Mo., will act as
dealer. Proceeds—For plant improvements and general
corporate purposes. Office—412 W. 39th St., Kansas City,
per unit.
Underwriter—None. Proceeds—To be
applied toward purchase price of Schutter
properties.
^ Dow Chemical Co., Midland, Mich.
Njov. 16 filed 200,000 shares
Office—Boston
2,000 shares of capital ;.
(par/$l). Price—$4.25 per share. Underwriter—
&'.€o., Los Angeles, Galif. Proceeds—To Richard /
Fewel/ the selling stockholder. Address—P. O. Box !
277, Kingsburg, Calif.
'
Norwood, Mass.
/ July 31
(letter of notification) 7,750 shares of noncumulative preferred stock (par $1) and 7,750 shares
Distributors Candy Co. (name to be
changed to
of common stock (par $1) to be offered in units of one
Schutter Candy
Co.), Chicago, III.
share of preferred and one share ef common stock.
Nov. 19 filed 200,000 shares of class A
pommon stock (par
Price—$25 per unit ($20 for preferred and $5 for com¬
$10) and 50,000 shares of class B common stock
(no par),
mon). Underwriter—None. Proceeds—For development
of which the class A stock and
stock
Kingsburg^Xalif*/
Fewel
six
'
.
stock
Helio Aircraft Corp.,
Of¬
& Gas Co^ Ltd..* Calgary, Canada
T "
Oct. 3 filed 500,000 shares- of common stock, of which ' ;
5,000 shares have been reserved for issuance to company
counsel for services. Price—At par ($1 per share. Under- .v
writer-^Nohe, but sales will be made by James H. Nel-;V
son, promoter and a director of company, of Longview,^/;
Wash. Proceeds—To drill well, for lease acquisitions and
•
propertied held pending development work, and for other1 •
Kingsburg Cotton Oil Co.,
Oct. 22 .[(letter of notification)
Cownie, Des Moines, la.
selling "stockholders.
Office — 1017
Des Moines 9,'la.
Offering—Temporarily
To
delayed.-
Under¬
writer—None.
—
.
idil
..
Davenport, la., and Becker &
Proceeds
Underwriter—' "J
Corp., New York, and Dean Witter &
corporate purposes.
Street, Cleveland, O.
3 '
through 19617*
Exchange Street, Portland 6, Me.
•k Key
working capital.
(letter of notification) 31,471 shares of common
(no par). Price—$7 per share. Underwriter—None.
Proceeds—For working capital. Office—3068 West 106th
stock
common stock
.
for drilling expenses.
Ohio Farmers Milk Co., Cleve., O.
*„>;•
Portland, Me..
Oct. 29 (letter of notification) 2,186 shares of 5^%3*/
cumulative preferred stock (par $100). Price—$105 petp??.
share. Underwriter—H. M. Payson & Co., Portland Me.
;11
Proceeds—For additions and improvements. Office—95
3;
Hawkeye-Security Insurance Co.
Nov. 5 (letter of notification) 2,000 shares of 5% cumu¬
lative preferred stock (par $50). Price—At market (cur¬
rently
$50
per
share).
Underwriter—Quail
& Co.,
^Dairymen's
Nov. 26
" '
Kankakee Water Co.,
.
Statement effective Nov. 21.
1
investors;, of $33,500,000 additional first mortgage bonds*-:!;
and front-' $50,000,000 bank loans, to be used to finance
^3
the company's $100,000,000 expansion program.
Offering
—Not expected until, early in January.
-4* -.xu
* Gulf Sulphur Corp. (12/17-18)
Nov. 16 filed 400,000 shares of common stock (par 10c).
Price—$1 per share. Underwriter—Peter Morgan & Co.,
New York. Proceeds—To purchase additional equipment
and for advances to Compania de Azufre Veracruz, S. A.,
Corp., and
Coffin & Burr, Inc.
Price—To be $17.62 V2 per share.
Proceeds—To repay bank loans and for new construction.
^
construction.
Co.i San Francisco, Calif. Proceeds—From sale of stock, ^
together Vith proceeds from private sale to institutional^ ^
Office—26 Court St., Brooklyn 2, N. Y.
common
stock held; rights to expire on Dec. 17. The
New England'
Public Service Co. had waived its
right to subscribe for
150,740 of the new shares and these were publicly offered
on Dec. 7.
: Underwriters—The First
Boston
new
Price—To/be supplied by amendment.
(letter of notification) 2,220 shares of 6% cumu¬
lative preferred stock.
Price—At par ($100 per share).
—
*
*
.
$50)3 convertible into
The First/Boston
drilling expenses, repayment
Offering—Date not set.
Proceeds
.
Kaiser, Aluminum & Chemical Corp.
i ?,
4
Nov. 27: filed 350,000 shares of cumulative preferred stock
Co.,
Underwriter—None.
'
2,000 shares of common ;
-
Proceeds—For
York.
Dec. 3
at rate of five shares of common for
each
shares of preferred stock held and at rate of one
Co..
notification)
•
•
3
*
if Iowa Southern Utilities Co. (12/18) •*„
•*«
"
Nov. 29 filed 100,000 shares of cumulative convertible
preferred stock, (par $30).3Price — To be supplied by 33,
amendment;. Underwriter—The First Boston^Corp.r New/
Guardian Loan Co., Inc., Brooklyn* N. Y.
stock of
common
record Dec. 5
Service
"yj
plan. Price—
of the stock.
> *
'
.
issuable
(par. $5). Price—At market (approximately $19.50; v.
share)., Underwriter—A. C. Allyn & Co., Inc., Chi-.. cago, 111; /Proceeds — To Ray P. Stevens, the selling ;~3
New York
Aug. 7 filed 64,000 shares of common stock (par $10)
to be issued pursuant to an "employees' restricted stock
option plan." Price — To be supplied by amendment,
Underwriter—None.
Proceeds—For general corporate
purposes. Office—50 Church St., New. York.
★ Central Maine Power Co.
common
Union
'
,
stock
of advances and working capital.
supplied by amendment. Underwriter—None. Proceeds
—For capital expenditures and
working capital.
Oct. 31 filed 315,146 shares of
of which 164,406 shares are
Proceeds—For
•
per
(12/17-22)
At
Nov. 16 filed 281,243 shares of common stock
(par $1)
be offered for subscription
by common stockholders
Public
26 r(letter of
Nov.
April 9 filed 750,000 shares of common stock. Price—
par ($1 per share).
Underwriter—George F. Breen,
Calif.
option
exercise of stock
upon
Proceeds—^For working capital.
Underwriter—Craigmyle, Pinney & Co*, New York. Pro¬
ceeds—To Louise Craigmyle, the selling stockholder.
Proceeds—For
issuable
be
o
(letter of notification) 16,650 shares of common
stock (par $1). Price—At market (about $6 per share).
Underwriter—
-
inder the company's proposed stock option
To be 85%/of current fair market value
Nov. 7
corporate purposes.
Price—At 100% and ac¬
crued interest. Office—2305 East Belt
St., San Diego 2,
.'
-
fSteel Co.;
Aug. 27 filed 250,000 shares of capital stock (no par)
—To nine selling stockholders.
Cement
.
"
Inland
•
and
general
/
• -
Of- 3
Proceeds—For working capital.
Indianapolis, Ind.
Forest City, Fla.
Portland
i
if Indiana Telephone Corp.
"*
*
%
Nov. 13 -(letter of notification) 3,000 shares of 4.80% 3/,
cumulative preferred stock, 1951 series.
Price—At par 'fi
($100 per share).
Underwriter—City Securities Corp., ; :
23
Giant
I
„
Proceeds—From
of $2,000,000
first mortgage bonds, series B, due 1980, to be used for
construction program. Statement effective Nov. 30..
filed 100,000 shares of common stock (par 50
Price—To be supplied by amendment. Under¬
writer—Barrett Herrick & Co., Inc., New York. Proceeds
California Tuna Packing Corp., San
Diego, Calif.
Oct. 4 (letter of notification) $300,000 of 6% convertible
;
sale of stock, together with funds from sale
cents).
Pro¬
Statement effective Nov. 16.
.4.
writer—Blyth & Co., Inc., New York.
(Fla.)
—
Nov.
/
>r
rights to expire Dec. 14; employees entitled to purchase
shares.
Price—$21.25 per share.
Under-
East Providence, R. I. (12/17-22)
Nov.
23 filed
$2,500,000 of convertible sinking fund
debentures due 1966.
Price — At 100% of principal
amount. Underwriter—Barrett Herrick & Co., Inc., New
York. Proceeds
To retire approximately $1,530,000 of
notes, bank loans, and other indebtedness, and for work¬
ing capital and general corporate purposes.
300,000 shares of convertible preferred
Price—To be supplied by amendment.
;
:
unsubscribed
if Fram Corp.,
stock (par $100),
ceeds—For additions and improvements to
equipment. Offering date postponed.
program.
(amendment) filed 452 shares of class A common'
—None;
effective Nov. 29*.•
:
expire
Calif.. Offer—To
if Indiana Gas & Water Co., Inc.
Nov. 15 filed 66,000 shares of common stock (par $10)
being offered to common stockholders of record Nov. 28
at rate of one new share for each 10 shares held, with
five
expire Dec. 18.
Price—$28 per
Lynch, Pierce, Fenner &
if Fram Corp., East Providence, R. I.
Underwriter—Kidder, Peabody & Co., New York.
each
for
Francisco,
San
31.' Statement
ing capital.
(par $100); 5,706 shares of 5% preferred stock (par
$100), cumulative beginning three years from July 10,
1950); 7,597 shares of 4% revolving fund class C stock
(par $100); 2,000 shares of 4% revolving fund class C
stock (par $50); and 4,000 shares of 4% revolving fund
class C stock (par $25).
Of the 5,706 shares of 5%
class B stock, 706 shares are for the account of Fosgate
Growers
Cooperative.
Price—At par.
Underwriters
common
Burlington Mills Corp.
(par $1)
stock
(in
—
filed
of
rate
Co.,
scription at rate of one new share for each 10 shares held
or
represented by share warrants; rights to expire
Dec. 19.
Price—$29.50 (Canadian) per share.
Under¬
writer—None.
Proceeds—For general funds and work-
program.
Underwriter—Merrill
Fosgate
(letter of notification) $175,000 of first mort?
bonds, series A, due 1971. Price—101 and ac¬
5
a
held;
Nov. 13
crued interest.
Underwriter
Wachob-Bender Corp.,
Omaha, Neb. Proceeds—To retire first mortgage (closed)
3%% bonds and to convert to dial operation.
March
at
3
&
I
.-
Oct.. 31
Statement effective Dec. 3.
(Neb.)Ml^leph
July 18
Dec.
Bean, New York.
($10 per share). Underwriter—None. Proceeds—To
enlarge; insurance business; Office—-221 No. 21st St., Bir¬
mingham 3, Ala.
gage 4%
record
shares
par?
Blair
Proceeds—For expansion
*•
Imperial Oil Ltd., Toronto, Canada
■
'
filed 2,713,384 shares of capital stock (no par)/-;
being offered to stockholders of record Nov. 20 for sub- iJ' V
:
Brothers, New York, and A. G. Becker & Co.,
share.
stock, to be offered to stockholders of record Nov. 15 at
seven
Dec.
being offered for subscription by common stockholders
.
Nov. 1
(12/18)
Inc.
if Ferro Corp., Cleveland, Ohio.
Nov. 13 filed 91,859 shares of common stock
junior,
par
Department Stores,
Inc., Chicago, 111.
denominations of $5 and multiples thereof). Underwriter
—None. Proceeds—To pay RFC debt and for working
share for each
Barth
Office—200 West Ninth St., Wil¬
Novi 30 filed 250,000 shares of common stock (par $5).
price—To be supplied by amendment.
Underwriters-
convertible debentures due Dec. 1, 1958 to be offered for
Price—At
Pacific stock.
share of Ideal for each two shares of
one
Offer is subject to condition
mington, Del.
,
Bamberg Textile Mills, Bamberg, S. C.
Nov. 19 (letter of notification) $100,000 of 6%
one
Pacific
per share.
Underwriter—None. Proceeds—
working capital. Office—60 State St., Boston, Mass.
selling stockholder.
Badger Manufacturing Co., Cambridge, Mass.
(letter of notification) 17,500 shares of common
stock (par $10).
Price—$15 per share. Underwriter—
None, but sales will be handled by H. W. Cooms, E. I.
Clapp, R. W. Carlson and C. L. Campbell, all of Cam¬
bridge, Mass. Proceeds—For working capital. Office—
230 Bent St., Cambridge, Mass.
rate of
ing offered in exchange for shares of $10 par stock of
Portland Cement Co. of San Francisco on basis
held.
(par $1). Price—At market (not less than $15 per
share), Proceeds—To Mrs. Beulah McCollum King, the
Nov. 5
capital.
shares
10
stock
Office-—70Washington St..
stockholders.
each
Family Finance Corp., Wilmington, Del.
29 (letter of notification) 3,324 shares of common
21, filed 120,000 shares of $2.50 cumulative convert¬
ible* preferred stock (par $50). Price—To be supplied by
imendment. Underwriter—Van Alstyne Noel Corp., Nev
irork. Proceeds—To repay $2,500,000 bank loans and for
expansion and working capital.
common
share for
Nov.
\Tov.
subscription by
one
that 80% or more of Pacific
outstanding stock must be tendered in exchange for Ideal
stock.
If exchange offer is consummated, it is Ideal's
intention to operate the Pacific company as a subsidiary.
Dealer-Managers—Boettcher & Co., Denver, Colo.; J.
(1/7-13)
Plywood Corp.
if Atlas
of
rate
of
Casting Corp.
:
at
Denver, Colo.
250,000 shares of capital stock (par $10) be-
Price—$16
(letter of notification) $100,000 of unsecured
4% debentures due Oct. 1, 1961. Price—At par (in deominations of $100 each).
Underwriter — None. Pro-
working capual.
Brooklyn 1, N. Y.
28
Thursday, December 13, 1951
For
,
13
eeds—For
being offered to stockholders of record
(no par),
Nov.
Ideal Cement Co.,
.Nov. 9 filed
...
filed
Price—At
Proceeds—To
par
($5
per
share).
(A. J.)
& Hoverson Co.
112.500- shares
of
1
:
stock
(par $1).
supplied by amendment.
Underwriter—
Sills, Fairman & Harris, Inc., Chicago, 111.
Proceeds—
To eight selling stockholders.
Offering—Date indefinite.
Nov.
28
Price—To
>■'
enlarge capital and >
Statement effective Nov. 6.
common
'
be
•
Volume
174
Number 5072
.
The Commercial and Financial
Chronicle
.
.
(2347)
Lockheed Aircraft Corp.
Oct. 17 filed 27,000 shares oi capital stock (par $1), issu¬
able upon exeiCLse ol certain
Pako
tered
together with
and
granted
share.
issuable
to
19,370
upon
and
oilicers
-
NEW ISSUE CALENDAR
previously regis-,
heretoiore
Price — $19.35 per
V
O'Brien
December
Fram
(12/12)
$25,uUu.C0U ol iirst mortgage bonds, series D,
Underwriters—Issue awarded Dec. 12 to Hal-
Stuart
100.22 for
&
Co. inc.
and
associates
their
on
bid
3!'2S, with reoffering planned at 10L20.
Corp.
be
used
to
subsidiaries, to
Fram
Gulf
Loven
8
repay
$14,493,400
bank
loans
of
bonds
and
for
of
Chemical
of
stock//
Price—At
None.
Proceeds
($1
par
Corp.
Common
December
Noon (CST)
construction
Federated
-Iowa
shares of capital
share).
Underwriter—
per
Office
capital.
—
Lubrication Engineers, Inc., Fort Worth, Tex.
20 (letter of notification) 750 shares of common
public.
be
offered
first
to
stockholders,
Price—At par ($100 per share).
Proceeds
For operating capital.
None.
—
Race St., P. O. Box
and
then
—
share, and for both classes of
common
Department Stores, Inc
Southern Utilities Co
Oct.
12
stock
it Penn Fruit Co., Inc., Philadelphia, Pa.
January 7,
Atlas
Plywood
Underwriter—Hemphill, Noyes, Graham, Parsons & Co.,
New York. Proceeds—To company, to reimburse
treasury
-for expenditures made for fixtures and
1952
Corp
equipment and.
Preferred
the
January 8,
1952
—
..
January 9,
.
Public Service Co. of North
Nov.
1952
Interim Notes
1952
'
Indiana & Michigan Electric Co
United Gas
Corp., 11:30
a.m.
February
Dec.
1952
Bonds
to
Products Co., Pittsburg, Kansas
(letter of notification) $225,000 of second mort¬
gage 5% bonds to be offered to stockholders in ratio of
,
Nov.
filed
9
be
shares
400.000
offered
of
common
stock
(par $1)
to
For,,equipment.
Alstyne Noel Corp., New York.
Pro¬
purchase additional equipment and for work¬
Nov. 8
Office—314 National Bank Bldg., Pitts¬
burg, Kansas.
,
-
-r
.
-
Montana Hardwood Co., Inc., Missoula, Mont.
Sept. 26 (letter of notifictaion) .2,970 shares of 6% re¬
deemable preferred stock (par $100) and 2,970 shares of
common stock
(par $1) to be offered in units of one
preferred and one common share. Price—$101 per unit
Underwriter—None.
erect
Proceeds
To purchase land and
—
Office—123 West Main St., Missoula, Mont.
Muntz TV, Inc., Chicago, III.
plant.
Nov. 28
(letter of notification) 30,000 shares of common
Price—At market (approximately $2.87
stock (par $1).
share).
per
Louis,
Underwriter—John
R.
Proceeds—To
Mo,
W.
Earl
Kauffmann
Muntz,
Co.,
St.
the
selling
Office—1735 West Belmont Ave., Chicago,
stockholder.
Illinois.
*
National Marine
Terminal, Inc., San Diego, Calif.
Oct. 24 (letter of notification) 26,650 shares of
6% cumu¬
lative preferred stock (par $10) and
26,650 shares of
stock
common
(par
$1)
to
be
offered
in
units
of
one
share of each class of stock. Price—$11
per unit.
Under¬
writer—None. Proceeds
For working capital and to
purchase
additional interest in
an
So. 28th
—1592
tuna
clippers.
Office
Bearing Co., Inc.
Sept. 26 (letter of notification) 3,200 shares
(par $1). Price—$31.25
share.
per
of
Underwriter—
National
15
income
Plumbing Stores Corp.
(letter of notification) $123,500 of 20-year 3V2%'!
notes
due
writers—None.
poses.
Oct.
1,
1971.
Proceeds—For
Price—100%.
general
Under¬
corporate
Office—79 Cliff Street, New York, N. Y.
it Niagara Mohawk Power Corp.
Nu-Enamel
pur¬
•
(12/18-19)
Proceeds—For
Oliver Corp., Chicago,
Nov.
.
&
Co.
(jointly).
$35,00,000 bank loans and for
To be received
a.m.
at
15
(EST) and
Broad
as
on
new
bonds
up
to 11
on
am.
Street, New York, N. Y.
Stuart
& Co.;
stock:
Boston
&
Co.
Proceeds—To repay
construction.
Bids—
follows: On stock
Dec. 18 up to 11
(EST)
III.
16 filed 54,325
shares of common stock (par $1), of
which 51,250 shares are to be offered in exchange for
$5 par common stock of A. B. Farquhar Co. (Pa.) at rate
of one Oliver share for each four Farquhar shares, sub¬
ject to acceptance of such offer by holders of at least
99%
of outstanding Farquhar stock
(or such lesser
pmount, not less than 80%, as may be approved bv
Oliver), Underwriter—None. Statement effective Dec. 6.
Overseas
Merchants
Corp.
Nov. 16 (letter of notification) 10 shares of common stock
(no par). Price—$1,000 per unit.
Underwriter—E. M
Warburg & Co. Inc., New York. Proceeds—To Eric M
Warburg, the selling stockholder.
Office—52 William
St., New York.
shares of Contract and
Dec. "4
filed
on
•
—
Dec. 19
will expire on or about Dec. 21.
amendment
cumulative convertible
offered
in
adding 59,220 shares of 4%%
preferred stock
(par $25)
exchange for Contract Purchase
ferred stock
on
to be
Corp.
pre¬
Nov.
29
filed
120,000 shares of
be
%
uary.
l/
Statement effective Dec,'6.
working
capital.
subscription by
the
ratio
each nine shares of
as
At
of Nov. 27; with
par
—To
($100
reduce
the
of
under
market
stock
a
price
are
on
option
the
plan.
New
granted.
Price—At
York
Stock
E-
Underwriter—none.
Proceeds—For working capital.
-
,,,
•
•
;
;
'
,
Poor
Charlie, Inc., New York
Nov. 28 (letter of notification) 2,000 shares of class B'
common stock.
Price—At par ($25 per share). Under¬
writer—None. Proceeds—For working capital. Office—
166 West 75th St., New York, N. Y.
$
,
.
Procter & Gamble
Nov.
14
,,
Co., Cincinnati, O.
filed
300,000 shares of common stock for sale
employees under the terms of the Procter &
Gamble Stock Option Plan.
to certain
'Public Service Co. of New Hampshire
Nov. 9 filed
235,809 shares of
Underwriter—Issue awarded
common stock (par $10).
Dec. 12 to Kidder, Pea-
on
body & Co. and Blyth & Co., Inc. (jointly) on their bid
of $21,741 per share. Reoffering is planned at $23.12 %2
per
/
;
Proceeds—To reduce short-term borrowings
Statement effective Dec. 4.
snare.
Office—1337
Mission
per
of
one
common
share
of
loans
Statement effective Nov.
on
Dec. 28.
Underwriter—None.
and
20.
for
plant
(par $25).
Proceeds
Price—$75
—
For
share.
Underwriter—None.
capital. Z Office — Turks Head
per
working
Bldg., Providence 1, R. I.
Queen City Fire
Insurance Co.
notification) 500 shares of common stock
(par $100) to be offered to stockholders of record about
Nov. 12.
Price — $400 per share.
Underwriter — None.
Nov. 5 (letter of
21
.stock.
share).
Office—Sioux Falls, S. D.
Finance
Corp.
>
Underwriter—Cohu & Co., New York.
building.
Proceeds
Office—2 East
;
,
.•
(letter of notification)
Price
—
At
5,000 shares of common
(approximately $19.62V2 per
None. Proceeds—To William A.
market
Underwriter
—
•
Thompson and Elsie Thompson, selling stockholders.
Seattle
Oct.
for
12
^tock.
Steam Corp.,
(letter
Seattle, Wash.
of notification)
Price—At
3,000
shares of class
B
($100 per share).
Underwriter—
None.
Proceeds —To pay part of purchase price of
Seattle steam heating properties and for working capital.
^Office—1411 Fourth Ave., Seattle, Wash. <
Price—
Proceeds
improvements.
•
.
,
Go., Providence, R. I.
Oct. 9 (letter of notification) 2,000 shares of capital stock
Nov.
St.,
stock
Insurance
Seaboard Finance Co.
being of¬
preferred stock¬
common
Life
Church St., Frederick, Md.
and/or preferred stock held
rights to expire
share).
bank
and
common
Puritan
—To retire debts and purchase
Pacific Telephone & Telegraph Co.
Oct. 19 filed 633,274 shares of common stock
in
subsidiaries
25%
of $100.
'
holders
•,
Plate Glass Co.
June 27 filed 450,000 shares of common stock
(par $10)
to be offered to certain employees of the
company and
(letter of notification) $200,000 of 6%<? 15-year
l^bentures. dated July 1, 1951. to be issued in multiples
Francisco, Calif.
for
/-- Z
Pittsburgh
*Sept. 18
Pacific Telecoin Corp., San Francisco, Calif.
Sept. 14 (letter of notification) 59,000 shares of common
stock (par 10 cents). Price—50 cents per share. Under¬
writer—Gearhart, Kinnard & Otis, Inc., New York. Pro¬
fered
share for each 18 shares
common stock (par $1).
%
supplied by amendment.
Underwriter—
Cruttenden & Co., Chicago, 111. Proceeds—To
purchase
new equipment.
Offering—Expected some time in Jan-//
Price—To
Ritchie Associates
pre¬
stock).
one
Proceeds—For working capital.
basis of four shares of Pacific preferred
stock for each preferred share of Contract (59,220 shares
of common to be reserved for conversion of new
ferred
(par $10)
stock of Sharpies
of Pennsylvania
and for construction program.
it Pacific Finance Corp. of California
"Nov. 15 filed 147,687 shares of common stock (par $10)
to be offered in exchange for common stock of Contract
San
Weld
III.
(in denominations of $100 each). Underwriter—
working capital. Office—444 Lake
Shore Drive, Chicago, 111.
None.
shares
City, Pa.
change at time options
ceeds—For
White.
Chicago,
stock
common
common
5.15
(letter of notification) 39,658 shares of common
to be offered to common stockholders
At par
tive
and
Corp.,
of
(par $10)
its
Nov. 27 filed $15,000,000 of general mortgage bonds, se¬
ries due 1981, and
1,000,000 shares of common stock
(no par).
Underwriters—To be determined by competi¬
bidding. Probable bidders for bonds: Halsey,
& Co. Inc.< Morgan Stanley & Co.:
Kuhn, Loeb
"The First Boston Corp.
Probable bidders for
Merrill Lynch, Pierce, Fenner &
Beane; The First
Corp.; Morgan Stanley & Co.; Kidder, Peabody
3
(letter of notification) $220,000 of 5% convertible
notes, dated Dec. 1, 1951, and due Dec. 1, 1959.
Price—
subject to acceptance of at least 80% of the outstanding
common
Blyth & Co., Inc., Los Angeles, Calif. Proceeds—To Lloyd
-A. Johnson, President, who is the
selling stockholder.
Oct.
-
Purchase Corp. in the ratio of llk shares of Pacific com¬
mon for each Contract Purchase
Corp. share. The offer is
St., San Diego 13, Calif.
National Motor
stock
ing capital.
basis
it Pioneer Air Lines, Inc., Dallas, Tex.
(12/17-18)
writer—Van
ceeds—To
shares of
exchange for
on
issue. Price—$33.25 per share. Underwriter—None.
Proceeds—To retire debt incurred through expansion of
refining and sales activities. Office—Drake Theater Bldg.,
public, together with an additional
90/)j00 sliares reserved for issuance upon the exercise of
warrants.
Price—Expected at $3 per share.
Under¬
$300 of bonds for each share of stock held as of record
June 30, 1951, with an oversubscription privilege. Price
<—At principal amount. Underwriter—None. Proceeds—
in
the
Common
Oil
Estate of Rachel B. Miles.
88,467
Inc.
held; rights will expire on Dec. 28. South Penn Oil Co.,
parent, will subscribe for 31,693 shares, or 79.915%? -of
1952
^Norden Laboratories Corp/
filed
of record Dec. 10 at rate of
(EST)
1,
Offering
two.
or
Pennzoil Co.
Bonds & Notes
stock
January 30,
week
Salt stock for each Sharpies share
(conditioned upon
deposit for exchange of at least 13,748 of the 17,184 out¬
standing shares of Sharpies stock). Underwriter—None.
Carolina,
common
Mineral
7
be offered
Chemicals
.2k
January 22,
a
Pennsylvania Salt Mfg. Co.
Bonds
i
to
5^-
Oct. 4
balance will be added to working
capital.
—Expected in
Philadelphia Electric Co
stock for the account of six sell¬
Price—To be supplied by amendment.
common
ing stockholders.
Common
mum,
,
(par $50) and 60,000 shares of common
$5), the preferred to be sold for the company's
account and the
1952
—
cumulative convertible
-preferred stock
share;, mini¬
per
Ind.
Moseley & Co., Boston, Mass. Proceeds—For expan¬
program and working capital.
Offering—Not ex¬
Nov. 21 filed 30,000 shares of 5%
Bonds
Laboratories,
Price—-Maximum, $i8
Goshen,
sion
(EST)
a.m.
Inc.
$16.50 per share.
Underwriter—Albert McGann
Securities
Co., Inc., South Bend, Ind.
Proceeds—To
Inc.,
pected until after Jan. 1.
Southwestern Public Service Co
(par $2).
Offering—Indefinitely
Price—To
stock, $25 per
Inc., Elkhart, Ind.
(letter of notification) 6,000 shares .of
..."
Oct. 25 filed 100,000 shares of common stock
(par $2.50).
be supplied by amendment. Underwriter^-F.
Common
poses.
Miles
★ Penn Controls,
5.
Dow Chemical Co.
junior subordinated debentures (in various denomina¬
tions) and 306 shares of 5% first preferred stock (pat
$20). Of latter, 271 shares will be offered to public and
35 shares to
employees only on an instalment basis. Price
—At par.
Underwriter—Guardian Securities Corp., Sar
Francisco, Calif. Proceeds—For general corporate pur¬
Pro¬
Office—630 Fifth Avenue,
postponed.
Preferred
January 3,
Mercantile Acceptance Corp. of California
Oct. 24 (letter of notification)
$100,000 of 10-year
per"
8%
Underwriter—None.
ceeds—For construction program.
—-Common
2809
share. Underwriter—None. Proceeds—For
working capi¬
tal.
Office—414 Light Street, Boltimore 2, Md,
.
?/
Equip. Trusts Ctfs.
stock (par
preferred, $100
of
160,000 shares of 5V2% prior preferred
(par $25).
Price — To be supplied by amendment
Underwriter—A. C. Allyn & Co., Inc.* Chicago, 111. Pro-
Vertientes-Camaguey Sugar Co. of Cuba—Common
non-voting stock (no par) to
rate
filed
Common
11
be available for limited sales to
employees and for what
other purposes the
company deems appropriate during
the next 12-month period.- Price—For
per
.;v.
Niagara Mohawk Power Corp.
it McCormick & Co., Inc., Baltimore, Md.
Nov .14 filed 500 shares of 5% cumulative
preferred stock
(par $100). 4,000 shares of common voting stock (no par)
and 6.000 shares of common
at
stock
-
to
Underwriter—
Office
7303, Fort Worth 11, Tex.
26
Niagara Mohawk Power Corp.
11 a.m. (EST)
:
244
Nov.
to
1951.
1,
interest
Peabody Coal Co.
1951
———
with
Dec.
Niagara Frontier Transit System, Inc.
5 p.m. (EST)_—
Z
South Pine St.,
Newhall, Calif.
stock
18,
Chicago, Rock Island & Pacific RR.
former
amount
from
ceeds—For working capital.
New York 20, N. Y.
Common
__________
"
Office —1010
Price-%>
principal
March
200,000
working
At
annum
——
For
—
—
'.
Paper Corp. of United States (N. Y.)
Nov. 26 (letter of notification) $100,000 of 10-year
profitsharing 5% to 8% debentures due Dec. 1, 1961.
1951
Norden Laboratories Corp.__^____a-^_—--Common
California
(letter of notification)
17,
Debentures
Sulphur Corp
of
Pro-:
Statement effective Nov. 30.
program.
Oct.
retire
Proceeds
For working capital.
Lyndale Ave., North, Minneapolis, Minn.
1951
_.
ceeds—From sale of bonds, togetner with proceeds from
sale of
100.000 shares of preferred stock
(par $100),
will
13,
Brothers*'3 p#n. (EST)t_..___.______Capital
statement effective Nov. 6.
Oct. 31 l'ilea
sey,
December
.
Proceeds—lor general cor¬
it Long Island Lighting Co.
due 1976.
stock
None.
of options
employees.
Underwriter—None.
porate purposes,
shaies
exercise
Corp., Minneapolis, Minn.
(letter of notification) 38,000 shares of common"
(par $5).
Price—$7.50 per share.
Underwriter—
Nov. 30
graiuea lo a selected
group ol ofticers and employees oi company and its sub¬
sidiaries,
10/
.
•
par
Continued
on
page
108
•
%
108
The Commercial and Financial Chronicle
(2348)
Continued jrom page 107
Cuba)
of
com¬
mon stock (par 10 cents).
Price—32Vz cents per share.
Underwriter—Standard Securities Corp., Spokane, Wash.,
and
Kellogg, Idaho. Proceeds
holders.
—
To six selling stock¬
Address—Box 469, Wallace, Idaho.
Mining Co., Hailey, Idaho
iTuly 19 (letter of notification) 1,000,000 shares of comtaoon stock. Price—At par (25 cents per share). Under¬
writer—E. W. McRoberts & Co., Twin Falls, Ida. Proceed*
—For development of mine.
Sonic Research
Oct. 8
fltock
Corp., Boston, Mass.
(letter of notification) 9,000 shares of common
(no par). Price—$20 per share.
Underwriter—
Wone.
Proceeds—For working capital.
Office—15 Char-
don St., Boston, Mass.
^.Southwestern Associated Telephone Co.
«#une
15,
filed 17,500 shares of $5.50 cumulative pre¬
ferred stock (no par). Price—To be
supplied by amend¬
ment.
Underwriters—Paine, Webber, Jackson & Curtii
;ind Stone & Webster Securities
Corp., both of New
York, and Rauschea, Pierce & Co., Inc., Dallas, Texas.
/Proceeds—To retire $1,500,000 of bank loans and the
balance added to general corporate funds.
Statement
withdrawn
Dec. 4.
on
'
Soya Corp, of America
5Nov. 13 (letter of notification) 9,600 shares of common
fitock (par 1 cent).
Price — At market (approximately
<30 cents per share).
Underwriter—Jacquin, Stanley &
Co., New York. Proceeds—To underwriter for service*
rendered.
share for each two shares held,
with
Underwriter—None.
($6.50 per share).
To
indebtedness
short-term
reduce
and
be of¬
1951 at
Victoreen
Nov. 19
Birmingham, Ala.
determined
—
ing stockholders.
Instrument Co., Cleveland, Ohio
(letter of notification) 7,266 shares of common
stock (par $1). Price—At market (approximately $4.37y2
per share. Underwriter—Saunders, Stiver & Co., Cleve¬
land, O. Proceeds — To Ernest A. Benson, the selling
stockholder. Office—3800 Perkins Ave., Cleveland, O.
16
stock of Snellstrom Lumber Co.
Vulcan Iron
Works, Wilkes-Barre, Pa.
Oct. 17
(letter of notification) not to exceed 17,000 shares
stock (par 50 cents). Price—At the market
(approximately $2 to $2% per share). Underwriter—
of
common
Office—2807
Central Ave.,
9, Ala.
over-the-counter
market.
Proceeds—To
John
A.
Roberts, Chairman, who is the selling stockholder.
Westinghouse Electric Corp., Pittsburgh, Pa.
Nov.
filed 500,000
shares of common stock (par
to be offered under the company's "restricted
stock option plan" to certain ofifcers and executive em¬
27
ployees. Underwriter—None. Proceeds—For general cor¬
porate purposes.
Stanzona
ntock.
Price—At
?None,
Proceeds—To
working capital.
($1 per share).
Underwriter—
acquire oil properties and for
Address—P. O. Box 1468, Phoenix,
par
.Arizona,
Texas Southeastern Gas
Co., Bellville, Tex.
,lffay 16 (letter of notification) 19,434 shares of common
tttock
to
be
transferable
Prospective Offerings
Petroleum
/Nov. 21
offered
to
warrants.
^Underwriter—None.
Thatcher Glass
common
Price —At
stockholders
par
through
Allied Electric Products, Inc., Irvfngton,
N. J.
Nov. 9, Nathan Chirelstein, Chairman, said it is probable
that the company within a short time will register with
the SEC
Proceeds—For working capital.
•
Amurtex
Dec.
6
A
A.
Mfg. Co.
JXTov. 14 (letter of notification)
3,000 shares of common
-ntock (par $5). Price—At market
(about $15 per share).
Underwriter—Coleman, Fagan & Co. (as brokers) clear¬
ing through L. F. Rothschild &
Co., New York. Proceeds
■"—To Mrs. Helene Le Berthon
Pollock, the selling
stockholder.
Thermoid Co., Trenton, N. J.
Sjov. 7 filed memberships in
A. Ian
the Employees' Thrift Bonus
capital stock (preferred or common)
1,500 Thermoid employees.
The maxi¬
mum number of shares of
preferred and common stock
which may be purchased
by the Trust will not exceed
36,500 and
60,000, respectively.
Underwriter — None.
G.
be offered to
tstatement effective Nov.
25.
Toklan Royalty
Corp., Tulsa, Okla.
11 (letter of
notification) 25,000 shares of
Stock (par 70 cents).
it
Oil
was
stock
Becker
Arkansas
Dec.
6
it
Development Co.
that
may
& Co.
Louisiana
Gas
500,000
shares
Co.
issue and sell
Underwriters—May
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Lazard Freres & Co.
(jointly); Union Securities
Corp.; Smith, Barney & Co.; Equitable Securities Corp.
Proceeds—To repay bank loans and for new construction.
was
reported
company
may
November.
Price—$4.50 per share.
UnderPr°ceeds-To purchase for investment
5St£;rFone'
450,000 shares of capital stock of Palmer Stendel Oil Co.
Office—635-644 Kennedy
Building, Tulsa, Okla.
United Fire &
Casualty Co., Cedar Rapids, Iowa
Xtfov. 16 (letter of
notification) 2,161 shares of capital
Stock (par $10) to be offered for
subscription by stock¬
holders. Price—$26 per share.
Underwriter—None. Pro¬
ceeds—To restore capital. Office—810
First Ave., N. E.,
Cedar Rapids, la.
>•
£ United Merchants &
INov. 2 filed 300,000 shares of common stock
(par $1) to
be issuable under "The
Employees Stock Purchase Plan
55d The Executive Employees
Ian.
Underwriter—None.
porate purposes.
22
Restricted Stock Option
Proceeds—For general
cor¬
Statement effective Nov. 29.
(letter of notification) 5,085 shares of
preferred
(par $50). Price—At market (estimated at
$44 per
^ihare). Underwriter
None'. Proceeds
For
f&ock
—
working
—
capital.
*r
Office—300 Buhl
Bldg., Detroit 25, Mich.
u" oS-„R"bber Rec,aim'ng Co.,
rSa $1) °^r?otlficAation) 4,224
tS'i Price—At
(par
tftock
Inc.
shares of
common
market, but not less than $5
<r
{selling
Underwriter—None, but Ladenburg, ThalF 7
York> will act as broker. Proceeds—To
stockholder.
.
t, Va" No/,man.Co- Springfield, Mass.
$2,500,000
convertible sinking
t
a
ot
debentures due Dec. 1, 1971.
Curtis,
is contemplating sale
following approval
of
3-for-l stock split (approved Sept. 5.) Traditional under¬
of
n
V
J!anuarflCa
Price-To be supplied by
Underwriter-Paine, Webber,
Mass.
Boston,
Proceeds—For
Jackson &
machinery
Offering-Not expected
fund
and
until after
additional
common
company
stock
writer: Lehman Brothers.
.
Nov. 26 it
,
System, Inc.
announced that it is the present intention
was
to sell securities in 1952 for the purpose
refunding the $20,000,000 of 2V2% bank notes, due
1952. The type or aggregate amount of securi¬
ties which may be sold during 1952 cannot be determined
at this time.
-V
v
of the company
of
June 15,
Consolidated
was
Grocers
Corp.
stated company plans issuance
present outstanding 5%
and sale ot
issue
of 25,000 shares of 4%% cumulative pre¬
(with common stock purchase warrants at¬
tached). To be placed privately.
new
ferred stock
Brooklyn Union Gas Co.
Nov. 30 it
announced
company
borrow
to
to
this program the bank loans will be refunded by means
of long-term
borrowings, repayable over ten years.
Central Louisiana
*
/
pansion program.
County Gas Co., Atlantic Highlands, N. J.
15 it was announced company will pay about $15,-
000,000 for the gas properties of Jersey Central Power &
Light Co. Method and type of securities to be sold to
Electric Co.,
Inc.
plans to issue and sell
determined.
finance this purchase not yet
Dayton Power & Light Co.
Nov. 13 it was reported that company may soon do some
additional financing in connection with its construction
Underwriters—For any bonds to be determined
program.
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Morgan Stanley & Co.; Blyth & Co., Inc.
and The First Boston Corp. (jointly); Lehman Brothers;
Union Securities Corp.; Merrill Lynch, Pierce, Fenner
Harriman Ripley & Co., Inc. If common stock,
may include Morgan Stanley & Co. and
underwriters
W. E. Hutton & Co.
Eastern Stainless Steel
Corp.
proposal increasing
shares from
500,000 shares, of which 420,000 shares are outstanding.
Additional shares may be issued to stockholders, and
the proceeds used for expansion.
Traditional under¬
Oct. 25 the stockholders approved a
authorized
the
capital
stock
to
750,000
writer: J. Arthur Warner & Co. Inc., New
Foote Bros. Gear & Machine
York.
Corp.
reported that company may offer addi¬
stock early next year. Probable under¬
writer—A. C. Allyn & Co., Inc.. Chicago, 111.
it
25
was
common
& Southern Ry.
applied to ICC for authority to issue
and sell $750,000 first mortgage bonds.
Proceeds will
be used to build additional power plant facilities,
v
Fort Dodge, Des Moines
Nov.
1
company
Hahn
that the
intends to
$18,000,000 from a group of four banks in order
finance, in part, its program .to change the service
straight natural gas next year. After completion of
was
•
Corp., New Haven, Conn*
Aug. 22 it was stated that the company plans issuance
and sale of 30,000 shares of preferred stock (par $10),
each share to carry a bonus of common stock. Under*
writer—Ira Haupt & Co., New York. Proceeds—For ex¬
Cott Beverage
tional
Bryson, Inc.
Nov. 30 stockholders approved a proposal to authorize
a
preferred stock and to expand
output of company's eight divisions.
Oct.
Black, Sivails &
States Radiator Corp., Detroit, Mich.
_
Oct.
Bing & Bing, Inc.
Aug. 30 it was reported
•
Manufacturers, Inc., N. Y.
expects to market late
Columbia Gas
& Beane;
Atlantic Coast Line RR.
Sept. 14 it was stated that the company may refund its
outstanding $22,388,000 first consolidated mortgage 4%
bonds due July 1,1952. Probable bidders; Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.;
The First Boston Corp. Offering expected some time in
Oct
common
Electric Co.
Nov.
about
of
be issued.
Underwriter—Probably
Inc., Chicago, 111.
rumored
$35,000,000 of first mortgage bonds.
and shares of
\;o
issue of long-term convertible debentures,
an
part of which will be offered in exchange for any out¬
standing three-year convertible notes dated Nov. 1, 1951.
Underwriter—Hill, Thompson & Co., Inc., New York.
class
($5 per share).
&
early
or
year
Oct. 8 it
Birming-
Corp., Phoenix, Ariz.
(letter of notification) 287,070 shares of common
Gas
in 1952 between $25,000,000 and
$30,000,000 of new bonds.
Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn, Loeb &
Co. and Salomon Bros. & Hutzler (jointly); Blyth & Co.,
Inc., and The First Boston Corp; (jointly); Union Securi¬
ties Corp.; GlorerForgan & Co. and White, Weld & Co.
(jointly); Lehman Brothers; Harriman Ripley & Co.,
Inc.; Merrill Lynch, Pierce, Fenner & Beane. Proceeds
will be used for construction program.
^
;
;
?
this
$10,000,000 of preferred stock (par $50). Underwriter—A.
C. Allyn & Co., Inc., New York.
Proceeds—To retire
/
.
Cincinnati
April 7 it was reported company
None, but Eaton & Co., New York, will handle sales on
the
will go towards property
Sept. 1, 1962.
The remainder
improvements, etc.
*
Viking Plywood & Lumber Corp., Seattle, Wash.
Oct. 19 filed 22,500 shares of common stock (no par) to
be offered to employee-stockholders in minimum units
of 125 shares per unit.
Price—S20 per share.
Under¬
writer—None.
Proceeds—To purchase 50% of capital
Probable bidders:
(jointly); Harriman Ripley & Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson &
Curtis; Kidder, Peabody & Co.
Proceeds—To refund
$49,988,000 of 4% non-callable consolidated first mort¬
gage bonds due July 1, 1952, and to redeem $13,747,000
first and refunding mortgage 4Y4% bonds, series D, due
the sell¬
Offering—Not immediately planned.
Victoreen
Nov.
bidding.
by competitive
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
Co * Kuhn
Loeb & Co. and Salomon Bros. & Hutzler
Price—At market (about $4 per share).
Barrett Herrick & Co., Inc., New York.
(par $1).
Underwriter
Proceeds—To Mr. and Mrs. John A. Victoreen,
Proceeds—For operating capital and
Advertising costs.
due
(letter of notification) 25,000 shares of common
$12.50)
Specialized Products Corp., Birmingham, Ala.
3ept. 26 (letter of notification) 50,000 shares of common
fltock
Price—$1 per share. Underwriter—Carlson & Co.,
approximately $70,000,000 of first mortgage bonds,
1981, of which about $65,000,000 will be sold ini¬
tially. Price—Not less than par. Underwriter—To be
of
working
Co., Cleveland, O.
Instrument
Halsey, Stuart
June
Price—At
Proceeds—•
for
1, 1952, and to mature
semi-annual instalments from July 1, 1952, to
Chicago & Western Indiana RR.
2 it was reported company expects to be in the
market late this year or early in 1952 with a new issue
an over¬
capital.
stock
,
,
Snoose
one
subscription privilege; rights expire Jan. 18.
par
Skyway Broadcasting Co., Inc., Ashville, N. C.
♦Sept. 10 (letter of notification) 6,000 shares of common
ntock. Price—$50 per share. Underwriter—None. Pro¬
ceeds—For construction and operating capital for a pro¬
posed television station.
rate of
in 30 equal
Jan. 1, 1967, inclusive. Probable bidders:
& Co. Inc.; Salomon Bros.-& Hutzler.
(12/18)
Nov. 23 filed 481,307 shares of common stock to
fered to common stockholders of record Dec. 18,
Thursday, December 13, 1951,
cates, series L, to be dated Jan.
Vertientes-Camaguey Sugar Co. of Cuba (Compania
Azucerera
Yertientcs-Cameguey
do
Silver Buckie Mining Co., Wallace, Ida.
(Sept. 25 (letter of notification) 290,000 shares
*
...
Aviation
Products,
Inc.
Aug. 24 it was announced company proposes to offer
12,500 additional common stock (par $1), in addition to
17,500 shares recently offered. Underwriter — None.
Proceeds
For engineering, acquisition of machinery
—
and other corporate purposes.
son
Office—2636 No. Hutchin-
St., Philadelphia 33, Pa.
.'
.
Illinois Bell Telephone
was reported company
$4,000,000 of debentures due 1971. Underwriters—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blair, Rollins & Co. Inc., Lee
Higginson Corp., W. C. Langley & Co. and Carl M.
Loeb, Rhoades & Co. (jointly).
Co.
June 27 W. V. Kahler, President, announced that thl*
company
(approximately 99.31%^ owned by American
Telephone & Telegraph Co.) plans issuance and sale,
sometime before the end of the year, of 682,454 addi¬
tional shares of capital stock to its stockholders. Under¬
writer—None. Proceeds—To repay short-term loans and
•
for
Oct. 10 it
Central
Dec. 3 it
Louisiana
was
Electric
Co., Inc.
contemplates sale
debentures (probably pri¬
announced that company
of
$2,980,000. of additional
vately) and $1,500,000 additional common stock early
in 1952 (probably to stockholders through
rights), fol¬
lowing the merger into company of Gulf Public Service
Co., Inc.
Chicago,
Rock island & Pacific RR* (12/18)
up to noon (CST) on Dec. 18 at
the office of the Treasurer of the company, Room
1136,
LaSalle Street Station, Chicago 5, 111., for the purchase
from the company of $4,950,000 equipment trust certifi¬
Bids will be received
new
construction.
Illinois Central
RR.
Nov.
16, the directors authorized, pending a favorable
market, the issue and sale of up to $25,000,000 of consoli¬
dated mortgage bonds. Underwriters — May be deter¬
mined
by competitive bidding. Probable bidders: Halsey,
Stanley &
next four
Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan
Co. Proceeds — To retire debt maturing in
years
and to replace depleted working capital.
Indiana &
Nov.
sell
20
it
Michigan Electric Co. (1/22)
announced company plans to issue and
was
$17,000,000 of first mortgage bonds due
1982 and
Volume 174
Number 5072
.
.
.
The Commercial and Financial Chronicle
(2349)
$6,000,000 of serial notes due 1956 to 1967, inclusive.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Union Securities Corp.; Harriman Ripley
&
Co., Inc.
Proceeds—To repay bank loans and for new
Registration—Expected Dec. 19.
Bids—
Expected to be received on Jan. 22.
construction.
'Interstate
'
Power
Co.
Nov. 28 it was reported company plans to issue and sell
about $2,000,000 of first mortgage bonds and
$3,000,000 of
common stock before April 15, 1952.
Underwriters—To
be
decided
by competitive bidding.
Probable
about Jan. 1, 1952. It is planned to
organize Mississippi
Valley Gas Co. to operate these properties - and later
expects to issue and sell first mortgage bonds and com¬
^ National Union Radio Corp.
Nov. 29, Kenneth C. Meinken,
President, announced com¬
pany plans to raise more than $5,000,000 of "new
money"
through sale of stock or from loans. Proceeds—For ex¬
pansion program, involving
&
bidders
New
for bonds:
Halsey, Stuart & Co. Inc.; White, Weld & Co.;
.'Merrill Lynch, Pierce, Fenner & Beane; Smith, Barney
& Co.; Salomon Bros. & Hutzler. Probable bidders for
stock:
common
Blyih & Co.'f Inc.; Lehman Brothers;
Beane and Kidder, Pea-
Merrill Lynch, Pierce, Behitef
;body & Co. (jointly); Smith,
Ripley & Co. Inc.
Barney & Co.; Harriman
';;
Iowa-Illinois Gas & Electric Co.
Oct. 8 it
announced that the company contemplates
sale over the next three years of about
was
issuance and
60,000 shares 6f preferred stock (par $100) or $6,000,000
in
debentures; also, an issue of about $12,000,000 in first
mortgage bonds* Underwriters—For bonds, to be deter¬
mined by competitive bidding.-Probable bidders:
Halsey,
Stuart & Co. Inc.; Harriman Ripley & Co.,
Inc., Union
-Securities Corp. and White, Weld & Co. (jointly); Equit¬
able Securities Corp.; Glore, Forgan & Co.;
Harris, Hall
& Co. (Inc.); Lehman Brothers; Blyth &
Co.; The First
Boston Corp.; Smith, Barney & Co. The following may
bid for preferred stock: Blyth & Co., Inc.; Merrill Lynch,
Pierce, Fenner & Beane; Kidder, Peabody & Co., in addi¬
tion
to
mentioned
those
as
probable
bidders
for
the
bonds, with the exception of Halsey, Stuart & Co. Inc.
Proceeds from the sale of the preferred stock
or
deben¬
Iowa
Nov.
it
14
was
in the
sell
Utilities Co.
Southern
templates
sale
securities
announced
near
in
future
of
approximately
Previous
1953.
plans to issue and
mortgage bonds and con¬
$5,000,000
bond
financing
additional
was
done
England Power Co.
! V
■
writers—To be determined by competitive
bidding. Prob¬
able bidders: Lehman
Brothers; Equitable Securities
Corp. and Carl M. Loeb, Rhoades & Co. (jointly); The
First Boston Corp.; Merrill
Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co.; The First Boston Corp.;
W. C. Langley & Co.; Harriman
Ripley & Co., Inc.
Pro¬
ceeds—To
bank loans and for construction
vy,'
•, \
repay
gram.
Niagara
Nov. 26 it
Frontier Transit
was
System,
Inc.
pro¬
(12/18)
announced that J. W. Van Allen and H. W.
Keitzel, trustees of International Ry. Co., will receive bids
to 5 p.m.(EST)
up
of all
Dec. 18 for the purchase from them
on
part of 1,515 shares of
or
stock of
common
Niagara
Frontier representing the fractional shares
arising in
connection with the distribution made to
approximately
3,300 creditors as provided in International's plan of re¬
organization.
Bids will be received by the
trustees,
c/o the U.
New
S. District Court for the Western
District of
York, Niagara Square, Buffalo, N. Y. The net
pro¬
Northern Natural Gas Co.
'*•'
>
,
Nov. 16 it
was reported that
permanent financing is not
expected to be concluded until 1952 (probable in Janu¬
February) to repay $42,000,000 of bank loans and
to
provide additional funds for company's construction
financing may consist of about $32,000,000
program. This
of
debentures and
be offered to
may
$18,000,000 of
common
common
.
Aug. 1 it was announced that
company expects to issutii
$5,000,000 additional first mortgage bonds and
addition#
debt
securities
preferred
or
or
common
privately.
July 18, it
was reported that the
company expects to
money through the sale of some preferred
stock
raise
later this year.
Underwriter—Probably The First Boston
Corp., New York. Proceeds—To
finance, in part, a $10,000,000 construction program the
company has budgeted!
for the next two years.
Ryan Aeronautical Co., San
Diego, Calif.
Aug. 4 it was announced
company plans to increase
its authorized capital stock
(par $1) from 500,000 to
1,000,000;-shares in order to place it in a
position to
do appropriate
financing of some form of its
^
own
ties if and when
edness
which
could
be
issued with provision for
which
45,350 shares
are held
by the wholly owned
subsidiaryRyan School of Aeronautics.
•
•
Sobering Corp.
Oct 3 it
was
common
reported that the sale of the
company's en¬
stock issue
(440,000
shares) was not ex¬
pected for at least two
months. The sale will be made
to the highest bidder
by the Office of Alien PropertyProbable bidders: A. G. Becker
& Co.
(Inc.), Union Se¬
curities Corp. and
Ladenburg, Thalmann & Co. (jointly);
Merrill Lynch,
Pierce, Fenner & Beane; Kidder,
Peabody
Co.; F. Eberstadt & Co.; Allen &
&
Co.; new company
formed by United States &
International Securities Corp.,
Dillon, Read & Co.; F. S. Moseley &
Co.; Riter & Co.
Seaboard
Oct.
19
it
& Western
was
reported
Airlines, Inc.
that
company
totaling $6,500,000 to $7,000,000 for
equipment. May be placed privately.
•
Northern States Power Co.
(Minn.)
Oct. 25 it was announced
company estimates that ap¬
proximately $32,500,000 of new money will be required
to finance its construction
program for 1951 and 1952
through the sale next year of common stock, and senior
securities.
Probable bidders for stock and bonds:
April
Jamaica
Dec. 3
York
it
Water
P.
,
Supply Co.
that company has applied to New
Commission for authority to issue and $ell
stated
was
S.
$1,200,000 of first mortgage bonds (probably privately)
approximately 13,600 shares of common stock. Tra¬
ditional Underwriter—Blyth & Co., Inc.
and
'-i Kansas City
Dec. 4 it
stockholders will vote Dec.
announced
was
approving
Stock Yards Co.
12
proposal to issue $4,739,000 of 40-year
5% debentures in exchange for the outstanding 47,390
shares of $100 par preferred stock on a basis of $100 of
debentures for each preferred share,
on
f
a
,
O'Brien
Laclede Gas Co.
Nov. 10 it
announced company has requested Missis¬
was
sippi River Fuel Corp. to dispose of its Laclede Gas Co.
(248,400 shares, or 8.2% of total 3,039,860 shares out¬
standing). Latter has appealed to Missouri P. S. Com¬
mission
.
v
.
Smith,
Barney & Co.; The First Boston Corp.; Glore, Forgan
& Co.; Lehman Brothers and
Riter/& Co. (jointly);
Equitable Securities Corp.; Union Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner &
Beane; Kidder, Peabody
& Co. and White, Weld & Co.
(jointly). Probable bidder
on bonds only:
Halsey, Stuart & Co. Inc.
and
the SEC.
Nov. 28 it
reported company may be planning issu¬
150,000 shares of $100 par convertible
was
preferred
and Lee
Underwriters
stock.
—
Glore,
Forgan
&
Co.
Higginson Corp.
Aug. 10, Alvan A. Voit, President, stated that the com¬
plans to spend from $15,000,000 to $20,000,000 for
expansion, but that plans for financing have not yet
been completed. Traditional underwriter—F. S.
Moseley
pany
& Co.
Merritt-Chapman & Scott Corp.
1952
was
shares
120
(40%) of the capital stock of O'Brien
Shipyard Corp. will be sold at public auction
the
39
Broadway,
office
of
Adrian
New
H.
York,
Muller
N.
Y.,
&
at
Son, Room 2010,
3 p.m. (EST) on
Dec. 13.
Olsen, Inc., Elyria, O.
19 it was reported early registration is
planned of
about 225,000 shares of common stock.
UnderwriterOct.
:'/Y; Mengel Co.
Oct. 23 it
and
announced stockholders will vote Jan. 15,
McDonald
& Co., Cleveland, O.
Proceeds—To certain
stockholders.
Business—Manufactures hot air
furnaces. Offering—Expected in
January.
selling
Parkersburg Rig & Reel Co.
Aug. 1 A. Sidney Knowles, Chairman and President, an¬
nounced that the directors have approved in
principle a
plan to offer a modest amount (not exceeding $300,000)
of common stock for subscription
by common stockhold¬
approving the creation of an authorized issue of
100,000 shares of convertible preferred stock (par $50).
Underwriter—Carl M. Loeb, Rhoades & Co. Proceeds—
For expansion program.
on a one-for-eight basis. There are
presently out¬
standing 197,600 shares of $1 par value. Probable Under¬
•
writer—H. M.
on
Metropolitan Edison Co.
Dec. 11
it
reported company is considering a $16,000,000 financing program for early next year, which will
include issue and sale of 40,000 shares of preferred stock
was
(par $100) and about $8,000,000 of bonds. -Underwriters
—To be determined by competitive bidding. Probable
bidders for bonds—Halsey, Stuart & Co. Inc.; Salomon
This may involve the issuance of
24,700 additional
ers.
shares
Byllesby & Co., Chicago, 111; Proceeds—
Pennsylvania RR.
ders:
•
reported that the company may soon sell
equipment trust certificates. Probable bid¬
was
issue of
an
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Public
Service
24
Jersey Gas Co.
Smith, President,
Earl
plans a bond
this
year.
petitive
of
more
than
announced
of
new
company
$8,000,000 by fall oft
com¬
bidding.
Probable bidders: Halsey, Stuart A
Brothers; Blyth & Co., Inc. Proceed*—
presently outstanding $4,000,000 of 4%%
first mortgage bonds and
repay outstanding short-tern#
Co. Inc.; Lehman
To refund the
bank notes which
are
due before the end of the
year.
Southern California Edison Co.
Aug. 29 it was announced company
may have to raise
$49,900,000 more through additional fi¬
nancing to take care of its 1951-1952 construction
approximately
pro¬
Probable
bidders for bonds:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; Blyth & Co., Inc.; The First
Boston Corp. and
Harris, Hall & Co., Inc. (jointly). These
bankers bid for the
$30,000,000 issue of 3ys% first and
refunding mortgage bonds which; were sold last week.
The nature, amounts and
timing of the new financing
cannot now be
determined, and will depend in part on
market conditions
existing from time to time and may
include temporary bank loans.
Southern California Gas Co.
April 4, the company indicated it would this
year be In
the market with
$18,000,000 of senior securities. Prob¬
able bidders: Halsey, Stuart &
Co. Inc.; Blyth &
Co.,
Inc.; White, Weld & Co.; Lehman Brothers;
Merrill,
Lynch, Pierce, Fenner & Beane and
Harris, Hall & Co.
(Inc.) (jointly).
Offering—Expected in the Fall.
Southern Natural Gas Co.
July 31 it
announced company
was
has filed an applica¬
permission to construct additional
estimated $13,641,000, of which ap¬
proximately $9,187,000 is expected to be spent in 195L
tion
with
FPC
for
facilities to cost
Southern
Nov.
27
an
Utah
Power
Co.
the
company asked the FPC for
sell 15,671 additional shares of
issue
and
(no par)
to
authority to
its
common
stockholders at rate of one
new share for each four
shares held.
Price—$11.50 per
share.
Underwriters—Smith, Polian & Co., Omaha, Neb.,
and Glidden, Morris &
Co., New York. Proceeds—For
common
construction program.
•
Electric & Gas Co.
issue
plans financing
purchase
Underwriters—May be determined by
stock
For working capital.
Nov. 16 it
South
gram.
(12/13)
announced that
3,225 shares (or 321/2%) of
capital stock of O'Brien Brothers, 120 shares (or 40%)
of the capital stock of O'Brien Brothers
Towing Co., Inc.,
at
Chicago, III.
and sale of
ance
was
Brothers
Marshall Field & Co.,
Brothers, New York City
Dec. 4 it
con¬
vertibility into common stock. The
company presently
has outstanding
439,193 shares of capital
stock, of
writing. Probable bidders for debentures: Halsey, Stuart
& Co. Inc.; Blyth &
Co., Inc.; The First Boston Corp. and
Kidder, Peabody & Co. (jointly).
..
,
securi¬
advantageous to the company. The new
financing may take the form of a general
offering tor
sale to the public or
granting of rights to stockholders;
or the reservation
for conversion of
long-term indebt¬
Proceeds from bond sale, to repay $7,000,000
bank loans.
Registration—Of preferred stock, see a
preceding column.
•
privately.
banlf
stocks,
borrowings, or some combination thereof, in connection
with its construction
program. The method of
obtaining
such additional cash
requirement has not been deter*
mined. Previous bond
financing was done
stock. Latter
stockholders, without under¬
declaration 08
Rochester Gas & Electric
Corp.
tire
ceeds will be distributed to persons entitled
thereto un¬
der the reorganization plan.
;
' -
ary or
company
first
plant to be constructed
Sept. 6 it was reported that company plans to sell about
50,000 shares of preferred stock, later this year. Under¬
tures
(probably late this year) will be used to retire a
$6,000,000 bank loan used to finance, in part, the com¬
pany's construction program.
a new
Philadelphia. Underwriter—Probably Collin, Norton
Co., Toledo, O. Registration—Expected in two months.
or
stock dividends.
stock, following final approval by the Commissions.
mon
in
ties, to provide additional capital funds
10©
:;'
Southwestern Public Service Co.
(2/1)
10, H. L. Nichols, Chairman, announced company
plans to raise about $4,000,000 through an offering about
Bros. & Hutzler; Union Securities Corp.; Drexel & Co.;
The First Boston Corp.; White, Weld & Co. and Equitable
Securities Corp. (jointly); Kidder, Peabody & Co.; Carl
Dec.
7
vote
on
approving a proposal to increase the amount
of authorized preferred stock from 500,000 to 1,000,000
Feb.
M. Loeb, Rhoades & Co.
shares
stockholders at rate of
Probable bidders for preferred
—Kidder, Peabody & Co.; Smith, Barney & Co. and
Goldman, Sachs & Co. (jointly); Carl M. Loeb, Rhoades
& Co.; Drexel & Co.; Harriman Ripley & Co. Inc. and
Union Securities Corp. (jointly); Salomon Bros. & Hutz¬
ler; The First Boston Corp. Offering—Expected at end
of February or the middle of March.
Middle
East
Industries
Corp.,
N. Y.
Oct. 31 it was announced company plans to expand its
capitalization in the near future and to register its
securities with the SEC preliminary to a large public
offering, the funds to be used to build new industrial
projects in Israel.
Mississippi Valley Gas Co.
Nov.
19, it
&
Light
Co.
for
approximately
$11,000,000,
effective
was
and
to
announced
increase
stockholders
the
limit
uf
will
on
Jan.
unsecured
17
indebt¬
There are, however, no present plans for addi¬
financing.
In November,
Ihe
company
sold
through Morgan Stanley & Co., Drexel & Co. and Glore,
Forgan & Co. an issue of 249,942 shares of 4.70%
Dec.
1
of
additional stock for subscription by common
one share for each 13 or 14 shares
edness.
held.
tional
Proceeds—From sale of stock, together with funds from
$10,000,000 bank loans or long-term debt, to be used
cumulative
the
amount
Purex
Oct.
25
common
of
stock
it
1952, vote
to
1,000,000
(H. H.)
was
Underwriter—Dillon, Read & Co. Inc., New York.
1952
expansion program.
Spear & Co.
Nov. 5 announced that the management, headed
by A. M.
Kahn, President, which
voted
to
increase
shares
underwriters: Blyth &
Staats & Co., Inc., Los
Robertson
16
(par $100), thus exhausting
presently authorized preferred stock.
stockholders
William R.
for
preferred stock
Corp., Ltd.
Traditional
Nov.
«
announced that subject" tcf approval of
SEC and FPC Equitable Securities Corp. has agreed to
purchase the natural gas properties of Mississippi Power
was
it
the
authorized
from 500,000 shares
Co., Inc., New York;
Angeles, Calif.
Co., Pittsburgh, Pa.
announced
stockholders
will
in
April,
increase the authorized com¬
mon stock from 250,000 shares
(all outstanding) to 1,000,000 shares in order to make additional stock available
for such corporate purposes as acquisition of new proper¬
on a proposal to
shares of
to
be
this
no
par
now owns 100% of the 18,750
second preferred stock (dividend rate
changed from $5.50 to $5
stock
to
common
per
stockholders
annum), will offer
subscription at
for
rate of
one preferred share for each 12 common shares
held. Price—$105 per share. Meeting—Stockholders will
vote
on Dec. 5, among other things, to make the second
preferred stock convertible into common stock (initial
conversion rate to be 12 shares of
of
common
for earh char*
preferred).
•
Continued
on
page
lid
110
The Commercial and Financial Chronicle
(2350)
Gas Co., Houston, Tex.
v -i
applied to FPC for authority to con¬
struct a 1,350-mile natural gas transmission line extend¬
ing from Texas into West Virginia. The project is esti¬
mated to cost $184,989,683.
Underwriter—Kidder, Peabody & Co., New York.
17
company
reported
was
sion program of United Gas System and for other
rate
•
Langley
Qarney & Co.
Co.;
Smith,
and
Brothers
Lehman
Transcon
it was reported company may issue and sell
additional shares of common stock early
in 1952. Probable bidders: The First Boston Corp. and
Sept. 24
Blyth
Co.,
&
(jointly);
Inc.
Union
Securities Corp.;
Bear,
and
19
which
Stearns & Co. (jointly);
Harriman Ripley & Co. Inc.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly).
Brothers
Lehman
Los Angeles, Calif.
Lines,
v
V.,:
,rv
reported company* jna-y--.be considering
issuance and sale of additional common stock (par $10)
Nov.
it
was
tendon
&
Co., Chicago, 111.
Co.
it
Inc.
that company
announced
is
Thiokol Corp.,
Trenton, N. J.
of about
of
one
public offering of part of 200,000 unissued shares
was
proposed new common stock (par $10). Traditional
Underwriter—Kidder, Peabody & Co., New York. Meet¬
23,539 shares of capital stock (par $1) on basis
new
share for each 13 shares held
(with an
ing—Stockholders
Nov. 28 it
North
has applied to the
Weld
&
page
not
yet
may
N'. Y.
Corporation—Bulletin—Sutro Bros. & Co., 120 Broad¬
New York 5, N. Y. Also available is a review of
Equity
way,
"Utilities.
;
/
■/
Franco Wyoming Oil
Co.—Memorandum—First Southwest Co.,
Mercantile Bank Building, Dallas 1, Texas.
Office
Square,
National Company, Riverside Cement "B," and Seneca
ups on
Probable
bidding.
Joy Manufacturing Company—Data—Van Alstyne, Noel & Co.,
52 Wall Street, New York 5, N. Y.
Also available are data
Plymouth Oil Company and Studebaker
on
-
&
Corp.—Memorandum—Fewel
Steel
Kaiser
Corporation.
Co.,
453
Spring Street, Los Angeles 13, Calif.
South
V
Mountain Fuel Supply—Analysis—Edward L. Burton & Co., 160
South Main Street, Salt Lake City 1, Utah. Also available
are analysis of Equity Oil and Utah Southern Oil.
Chicago
York,
New
Railroad—Memorandum-
Louis
St.
&
-
Service Company—Analysis—Cohu & Co., 1 W all
Water
New
Street,
York 5,
Y.
N.
Based
Producers Oil Corporation of
San
Gas
Diego
120
&
Hoffman & Goodwin,
America—Data—E. E. Smith Co.,
New York 5, N. Y.
Electric—Memorandum—Josephthal & Co.,
Seneca Oil
Company—Analysis—Genesee Valley Securities Co.,
Building, Rochester 14, N. Y.
Powers
Singer Manufacturing—Bulletin—Ira Haupt &
Boston
9, Mass.
King Railway.
West End Chemical
pany,
& Co., 148 State Street,
information
Also available is
Company—Detailed report—Kobbe & Com¬
Inc., 55 Liberty Street, New York 5, N. Y. Also avail¬
a
detailed report on Columbia Machinery & Engi¬
Co.
neering
Corp.—Memorandum—Fulton, Reid- &
Commerce Building, Cleveland 14, Ohio.
Gulf Sulphur—Bulletin—Stanley Pelz
40 Exchange Place, New York 5, N. Y.
Wyoming
Louis N. Singer has been elected
a
director
Corp.,
York
of
Central
National
New
For
100
Park
Avenue,
City,
underwriters.
many, years
he was associated
with Lazard Freres, retiring as a
(Special
ST.
takes
an
active
part
in
to
The
(Special
LOS
to
The
The
and
Charles
C.
staff
Financial Ck.;on:c;.e)
BENECIA, Calif.—Irving E. Cox
Hemler
King Merritt & Co., Inc.
are
with
—
Chronicle)
George W.
Financial
Chronicle)
ANGELES, Calif .—Norman
S. Pearson has
to
Financial
LOUIS, Mo.
Bateman, Eichler Adds
the
With King Merritt Co.
Co., Inc.,
of
been
added
to the
Bateman, Eichler &
Co.,
453 South Spring Street, members
of
the
change.
Los
Angeles
Stock
Ex¬
If
bonds,'probable
Stuart
Co.
&
Inc.;
The
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
follow:
&
Bros.
Hutzler; Union Securities Corp.; Merrill Lynch.
Pierce. Fenner & Beane: Shields & Co
(jointly)
jv
His¬
5%.
even
or
income industries, small
increases in
others, none at all in
some,
and losses in still others.
The spectacular gains from rising
efficiency, such as were made in
the
early history of the auto¬
mobile industry, were largely dif¬
fused throughout the economy by
competition which led to a con¬
tinuously improved product sold
at ever lower prices.
It was this
crease
which caused the vast in¬
in employment and payrolls
the automobile and related
in
Goitv. Pfd. Slock Sold
Wage Policy
a
Dillon,
Read
Stone &
head
ipated gains from increasing pro¬
ductivity would be sufficient to
their cost, plus the cost of
the increase in the pure wage rate
cover
itself.
Co.
&
and
Inc.
Webster Securities Corp.
investment banking group
an
in¬
avail¬
universal
the
and
Much
efficiency
of many others.
an
as
annual
incre¬
this
of
the
obtained
is
amount
profits
income
heights
this
much
vestment
risen
have
to
new
question of how
source of
capital; in¬
is
it
of
a
be counted
can
next years.
■
~
.
on
•
.
in the
to
rise
regularly
Danger of General Application of
Escalation Principle
/y
The
has
principle of escalation
likewise
tions.
implica¬
general
more
In recfent years it has been
familiar with the proposal that the
face value of U. S. savings bonds
at
other
cover
instruments
financial
and
incomes, -thus making infla¬
for
everybody.
It
right, and that is not always so. tion "good"
ought to be clear that the adoption
According to the best available
information, factory productivity of such a principle will promote
increased at a much slower rate widespread
and faster price in¬
from
we
1939
have
conditions
all
rate
1947
to
since
and
reliable and
no
decide
to
data
what
has
years.
the
creases,
the
printing
gressive
intensive
more
decline
in
•-
money.
/
in
the
which
at
use
of
character
of
costs this decade, there is
wage
end
that
the
value
of
;/•/;/.
for the rate
clude
the
now
large
and
fails to
in¬
mounting
er
and
escalator
This
swifter
appears,
to
of
of
the
current
fringe issues, from vacations with
in
the
steel
costs;
pay
of
growing
t
variety
to old age pensions. If, in com¬
puting the
or
a
wage
■industry,
were
made
bill of
rproper
for
these
a company
allowance
items
doubtful that the recorded
or
it
is
antic¬
negotiations
be
the
wage
meaning
negotiations
industry.
show
convertible
is
into the
For
what
long known that when
time
any
cor¬
$100 per share. The new preferred
is redeemable at $103 per share if
redeemed
on
or
before; Dec. (1,
1956; at $102 per share thereafter
and
on
or
before Dec;
1/1961; $101
/ -to
share thereafter.
per
"Of the proceeds of the
sale
be used to prepay 'a
000,000 will
short-term bank loan and approx¬
imately $3,000,000 will be used do
finance
rehabilitation
of
the
Morgantown (West Virginia) Ord¬
Works, which the corpora¬
tion has an agreement to lease
nance
from the
government. The balah'ce
will be available for general cor¬
porate purposes.
•
:
.
corporation, which wa§; in-*
corporated in Virginia in 1892 as
The Mathieson Alkali Works/ is
now a major producer and distrib¬
utor of a wide range of industrial
The
chemicals
icals.
and agricultural chem-»
Acquisition of the plant of
Mathieson
Hydrocarbon Chemical
through the recently
merger
will add to?ibe
a substanr
tial number of petroleum products
and
those
we
have
one
wage
organic
poration's
located
chemicals.
principal
Virginia,
in
Louisiana,. Texas,
are
maintained
New
$re
York,
at
and
laboratories
Niagara Falls,
Named Director
/
Marvyn Carton, of Allen & Co.,
30
Broad
Street, New York City,
investment
been
ders-Quigan
of
banking firm, has
elected
a
director
Corp.,
heat, exchange
sired results it will "he
Salvatore
re¬
cpr-
N. Y.
cording-rio van
quickly
The
plants
Maryland
Research
Kentucky.
principle fails to produce the de¬
placed by another.
at
stock of the
common
poration at $50 per share of comr
mon, taking the preferred stock at
increases/
wage
over¬
closed.
corporation's products
assurance
no
books
Each share of the new preferred
stock
completed
-■
dividends'.1^/
quickly
the
and
Corporation
and
has occurred since the
subscribed
and the pro¬
current
numerous,
The offering was
the
presses,
period
Behind all this is the probabil¬
usually ity that there is no national wage
neglected, factors which bear on policy, deriving from any prin¬
the
validity of the productivity ciple of wage settlement. If this
principle as a
justification for country's munitions program, with
wage increases. Perhaps the most its vast and growing government
important of these is the change expenditures, continues well into
are
the
then
compre¬
happened in the past four
Looking
be
must
preferred
share thereafter and on or
before Dec.. 1, 1966; and at $100
of
productivity
4.25%
Corp.
convertible
per
.
2V2%, there are periods move up with the rise in the price
during which not even that level. This proposal, it has been
amount can be counted on.
For suggested, should be extended to
ment
cumulative
public sale
180,000 shares of
Chemical
Mathieson
are
business in
the form of-retained earnings. At
a time when the tax rates on busi¬
ness
of
also 'share)" plus "accrued
remembered
be
that advances in
from
issue
new
a
12 offered for
Dec.
on
stock, 1951 series, at par ($100 per
should
It
/
ability of a desirable product at urged that it is unfair to limit es¬
prices which people could afford calation to one segment of the pop¬
to pay. The experience of this in¬ ulation
or
to
one
type of eco¬
dustry is duplicated in the history nomic transaction.
Everyone is
there
&
plant
power
Method of permanent financ¬
Harris, Hall & Co. -(Inc.); Kidder,
not
torically,
moreover,
the
much
They are got at the price
of
vast
quoted annual increase in factory
capital
expenditures,
productivity of 2 Vz %
was
the amounting since the end of the
average of perfectly phenomenal war
to
100
billions
of
dollars.
ness
company's affairs.
(Special
Corp.;
principle and
Daggs and James W. Shaw have of the war. The pure rate of wages the improvement factor, in their
joined the staff of Barrett Herrick is no longer an appropriate meas¬ present form, will long survive the
& Co., Inc., 418 Locust Street.
ure of
the wage costs of a busi¬ force of the demand for still high¬
partner in December, 1947. He is
also a director of Erie Forge Co.,
and
Co./ Union
Barrett Herrick Adds
of Central National
10%
of
creases
hensive
Y
Whirlpool
Dir.
Thermo
on
is
able
Boston
Automatic Escalation
on
*
company
Maihieson Chemical
tainly not* yield annual wage in¬
that
U. S. Thermo Control—Data—Raymond
•
Co., Ill Broad¬
New York 6, N. Y.
way,
(jointly).
Corp.
Halsey,
12
though the cumulative figure is
impressive.. By the year, assum¬
ing that the fruits of greater effi¬
ciency were distributed in wages,
increased productivity would cer¬
Moderate
Broadway, New York 5, N. Y.
(jointly); Lehman
comprising 79 underwriters which
dustries
Pepsi Cola Company—Analysis—Walston,
35 Wall Street, New York 5, N. Y.
15 William Street,
Corp.
process
Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.
Ohio
bidders
Stanley & Co., White
Securities
Equitable
'increases
Machine.
Falls
Corp.
determined.
been
include:
costless.
Machine—'Write-up—Lerner & Co., 10 Post
Boston 9, Mass.
Also available are write-
Grinding
Gear
First
Underwriters—To be determined
Consequences of
Share—Memorandum—Auchineloss, Parker &
Redpath, 52 Wall Street, New York 5,
Electric
determined
Probable bidders
$12,000,000 steam turbine
a
ing has
and
Recommendations and Literature
Electric Bond &.
plans to build
8
Dealer-Broker Investment
Penn
be
E. Kohlepp, President, announced
Sept; 4 C.
bidders
Continued from page
from
Boston
mortgage and
first
25-year
of
$50,000,000
Co.
West
Goldman, Sachs & Co.
County, Wis.
competitive
by
First
The
and
reported company plans registration about
was
of
Co.
Wisconsin Public Service
(1/30/52)
Corp.
Halsey, Stuart & Co. Inc.; Morgan
Co., New York. Proceeds from notes tp
for construction costs.
W. C. Langley, &
Continued
&
Dec. 4 will4 vote on increasing the
slock from 300,000 no par shares to
collateral trust bonds.
$1,500,000 on 3% notes. These notes would be
refunded through the sale of common or preferred stock
Traditional underwriters: Union Securities Corp. and
borrow
be used to pay
20
Dec.
permission to 'f
Commission for
Utilities
Carolina
of
Ripley & Co. Inc.; W. C. Langley
in Marathon
Gas
Tide Water Power Co.
Sept. 17 it was reported company
Harriman
Brothers and
600,000 shares of $10 par value, 1 % shares of the new
stock to be issued in exchange for each no par share held.
United
sale
Underwriters—To
stock.
on
authorized common
oversubscription privilege). Price—$9 per share. Under¬
writer—Probably J. G. White & Co., Inc., New York.
Proceeds—For expansion and working capital.
the
from
come
common
for stock:
of
offering to stockholders
Co.
Langley & Co.; The First Boston Corp.
negotiating
9
for
Nov. 16 directors authorized an
Power
Lehman
Nov.
a
re¬
by competitive bidding.
Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co;;
Brothers; Harriman Ripley & Co. Inc.; W. C.
-
Goldman, Sachs & Co. and
Uarco,
Penn
one-half to
Underwriter—Crut-'
about $200,000.
involve
will
be
Thompson, President of West Penn Elec¬
tric Co., the parent, will require about $23,000,030 of new
capital in connection with its 1952 construction pro¬
gram, with about one-half to be raised by West Penn
Power Co. by way of a bond issue and the remaining
(jointly).
around 400,000
West
rortv*-
to
11:30
Dec. 6, Earle S.
Co.
Utilities
Texas
Bids—Tentatively scheduled
a.m. (EST) on Jan. 30.
purposes.
ceived up to
Lynch, Pierce, Fenner & Beane; W. C.
Merrill
&
it
Harriman Ripley & Co., Inc., and
(jointly). Proceeds—For expan¬
Goldman, Sachs & Co.
that the company expects to
spend approximately $46,500,000 for expansion in 1952
to 1955, and it has been stated that no further financing
is contemplated before late
1952, when about 400,000
shares of common stock is anticipated.
Probable bidders:
20
Nov.
it Texas-Ohio
Oct.
The First Boston Corp.,
Toledo Edison Co.
from page 109
Continued
Thursday, December 13, 1951
...
Fed-
equipment,.
announcement
Giordano,
the corporation.
of
manufacturer
ac¬
by
President of
Volume
ft*
174
Number 5072
•
.
.
.
v
■
,
The Commercial and Financial Chronicle
i
•
.
ulative
'
'
,
' '
•
preferred * stock-conver¬
tible into
Conrad, Bruce Adds
for- ten years.
common-
of providing
drop,
the
this
company
dedicated
huge
a
back*,
proper
a
week
LOS
/
ment
Federated
Stores
has
of1250000
ANGELES,
Calif.—R.
&
Co.,
530
West
Sixth
DIVIDEND
4V,
projected
of
The
Financial
DIVIDEND NOTICES
SEABOARD
The
Board
declared
cents
DIVIDEND NOTICES
MIAMI
61
Broadway,
New
the
20,
York
6,
N.
to
But
there has
been
not
anything
?as yet. to indicate that the change
for
the
True
better
will
sustained.
be
to provide .it wii&funds
expansion ; and» general cor¬
porate purposes. This stock is due
common
to
Thus
far,
tone
however,
in
shed
not
the
im¬
the
list
seasoned
great influence
any
the market for
such.
It
(Special
could
What
Wilson is
&
time
around
major
hard
they
upon
get
must
year-end
their records, these
of
of
managers
come,: decidedly
R.
West
their
closing
people be¬
hard-boiled
Power
ideas
Co.,
1951,
separated
102.301
the
102.282
close
is
The
Board
of
Directors
gineering-Superheater,
-.1051
yield
of
.'
1. A
special
•V (25c)
of.
of
Inc.
dividend
share, on
per
the
FREDRIC R. MANN,
only;
bid
next
about
spoken
business
of
December
at the
record
4,.
*■*>■•> While
set
to stockholders of
business December
OTTO
W.
record
11,
the
at
for
a
was
slow
and
have
to
the
been
outset.
Move
far
close
of
1951.
STRAUSS, Treasurer.
■has
been
been
generally
equity issues.
Thisweek
of
fast
a
block
of
stock
•common
The
Street
$4
over
this
at
the offering
Mathieson
cumulative
clared
December 5,1951, de¬
on
year-end
dividend
(50^)
a
share
cents
per
stock, payable
on
on
on
The
De¬
oti
interest
.
is
in
petition
some
bonds
these
should
and
deals
be
,.
/
Investors
with
will
get
look
over
two
issues
next
stockholders of record
close
with
for
of
JOSEPH
December
S.
opportunity to
large and unrelated
Kaiser
Aluminum & Chemical
Corp., has
'arranged with bankers for the
..flotation :of 350,000 shares of cum¬
STOUT,
at
value of this corporation, payable
December 21, 1951, to stockholders *of
record at the close of business Decem¬
ber 17, 1951. Transfer hooks will re¬
main open. Checks will be mailed.
G. C. SCHEUERMANN,
the
Treasurer
December 10, "1951
Secretary.
CUMULATIVE
;
PREFERRED
$.81 Va
York
•120
&
New
York
5,
N.
December
The
Beard
of
NO.
Directors
Y.
12,
1951.
397
of
this
Company, at
a
Meeting held this day, declared a dividend
of
One Dollar ($1.00)
per share on
the out¬
standing capital stock, payable on December
24. 1951, to stockholder, of record at the close
DIVIDEND No. 38
business
on
December
17, 1951.
This dis¬
represents the final dividend in re¬
earnings for the year 1951.
W.
C.
Tht Board of Directors has declared
a
able
December 31, 1951
on
December 20, 1951.
ness on
NORFOLK SOUTHERN
RAILWAY COMPANY
December 11,
it
?-
Holders
the
To
of
Convertible In¬
Company:
Semi-annual
I
1
interest
on
the
above
bonds amounting to
21/a% of the prin¬
cipal amount thereof, will be paid on
surrender of the
WAGNER BAKING
1, 1952, coupons to
Bank (formerly Central
CORPORATION
April 1, 1952,
upon
Hanover
Bank
Trust
&
Company), 1
City.
The
the
Dated: December 13, 1911
'
Preferred Stock,
Also
1952.
per
;•>
the
December
of $1.06M
able
STOCK
quarterly dividend
on
the 4)4
per
"
December
V.
15,' \
1951, and the stock dividend is
payable in
Common
Stock
Bearer
scrip certificates will be
issued
lieu
in
of
dividend
December
of 50
cents
of
payable
of record
De¬
50
3, 1951
January
per
2,
to
Decem¬
A
quarterly dividend of 60<
share
payable
December 5, 1951.
1952 to stockholders of record
at the
5,
close of business
1952,
OVER
700.0FFIC€S
Ttmonat
f
I
HA N C t
CO,
Joan*
declared by the
was
STR0MBERG
ANDREW
\
HAYD0N
W.
'
.
MOTORS
December 4,
1951
,
1952,
on
December 27,
1951.
share has
Company, of the par
value of $1.00 per
ers
of
15,
the outstanding common
stock of the
common
share,? to hold¬
stock of record at
the close of business
JOHNSON
Vice-President and Treasurer
RECORDERS
on
on
December
S.
MILLER
27,1951.
BIG BEN
SETH THOMAS
,\'
January
Board of Directors.
^
Company to holders of pre¬
been declared payable January
'
if
payable January 15,1952
outstanding preferred stock
A dividend of 50? per
per
January 30,
on
account of the
on
ferred stock of record at the close
Stock
Common
share,
1952
John H. Schmidt
-
the
of business
ber 19, 1951.
WESTCL0X
on
CONSECUTIVE DIVIDEND
;
share,
quarterly dividend period
declared
year-end divi¬
cents
h&
amounting to
ending January 31, 1952, has been
>
of the
shareholders of record
fractional
Philip Kapinas
163rd '
per
cember 19, 1951.
An additional
per
current
Secretary-Treasurer
,
1951.
A dividend of l3/4%,
$1.75
STOCK
January 2, 1952
shareholders
dend
-
St. Louis
V
share payable
to
COMPANY
'
on
January 31, 1952 to stockholders
of record January 3, 1952.
19,
STEVENS, Secretary.
1 mem,
_
'
A
stock¬
Stock,
SHOE
cent
preferred stock, pay¬
January 2, 1952 to share¬
COMMON
to
cents
15
INTERNATIONAL
1951.
share
1951
28,
of
Common
December 27, 1951.
Both
dividends payable to stockholders Of
J.
following dividends:
The regular
payable
the
The Board of Directors has de¬
clared
-Quarterly Cash Dividend of
are
on
payable
record
PREFERRED
Stock Dividend
has'de¬
payable January 1,
dividend
a
share
Dividends
STOCK
Directors
of
regular quarterly divi¬
per sharp on,the 7ft
dend of $1.75
By: joseph T. Kingslky, President.
TIME
Board
clared
;
NORFOLK SOUTHERN RAILWAY COMPANY
GENERAL
STOCK
The cash dividends
1951
Bonds of Norfolk Southern Rail¬
holders of record December 19,
per
>
-
JEROME A. EATON, Treasurer
cumulative
COMMON
to stock¬
holders of record at the close of busi.
New York
shore
per
a
dividend of 30 cents per share on the
LANGLEY, Treasurer.
Trustee, at its oHice, No. 70 Broadway,
December 31, 1951)
5%
•
-
Honduras Rosario
Broadway,
Hanover
(for quarterly period ending
$.50
INC.
12, 4951.
CORPORATION
seeking
equi¬
declared a dividend
share payable Janu¬
STOCKS,
NOTICE
par
Dividends have been declared by
com-
only
also
per
to stockholders of record
business December 31, 1951.
r
^
theBoard of Directors, as follows:
holders of record December
for
have
(15c)
1952
General Mortgage 5%
DIVIDEND NOTICE
banking
The
15,
Treasurer
LOAN CORPORATION '
the
week.
Revenue Code.
The Directors
of fifteen cents
ary
the close of
at
BENEFICIAL
;
\
.
keen
yen
per
come
shares.
a
and
($1,640)
The
of
Big Stock Issues Pending
ties
expected
business December 21, 19.11.
bolt
only.the stock.
v
dollar
is
ALLIED
The Board of Directors, 011 the date
below, declared a dividend of $1.75
per share on the capital stock without
appurtenant April
■,
still: others
Corporation's capital stock
26, 1951 to stockholders of
close
of
business December 19,
that" approximately one
sixty-four
and
six-tenths
cents
share of this special dividend will
be
designated as a
"capital gain dividend",
pursuant
to
the
provisions
of
the
Internal
It
AND
DIVIDEND
CORPORATION
Stock, 5.21/c, Series A,
H
Corp.'s
and
bidding
groups
1951.
VINCENT T. MILES
common
;
the
at
1951.
CLARK, Treasurer
HOWE, Treasurer.
Wall Street,
New York
dividend of two dollars and nine¬
per share has been declared
Company, payable January 1,1952
-V
.
considerable
record
way
defray
There
-
close
at
share
Secretary
also will receive
before for 1,000,-
additional
per
of
quotation.
construction costs.
the Preferred
of the
the close of business
at
of Directors has declared
Board
quarterly dividend of $1.3121
JUL
stock to. provide; funds for
repays-ment of bank loans and to
r
record
stock¬
to
the
at
Common Stock of the Company, pay¬
of
the
December 17, 1951.
company
of
of
December 26,
H.
L. G.
1951,
December 19, 1951,
December 11,1951
New
($2.19)
Preferred Slock, 5.25%, Series A
December 5, 1911
$15,000,000 of general mortgage
bonds, due out for bids next
Wednesday.
"
shares
stockholders
SHARES
day 011
the
payable December
of
WILLIAM H. BROWN
only s iza bIeinew debt
issue 'immediately ahead is Ni-/
agara
Mohawk
Power. Corp.'s
000
cents
spect of
convertible
day
special
tribution
to
of record
of business
1952, at the Office
Avenue,
record
of
;
Dividend
cember 28, 1951, to shareholders
The
the
at
Corporation at their regular
meeting
r
bids
27, 1951, to
the close of business December
share.
issue
Chemical
.u
of Directors,
dividend of
Quarterly
Labora¬
a
Niagara Mohawk
The
302
Notice of
$3.25 Dividend Series of 1946
.
A
teen
LONG ISLAND LIGHTING COMPANY
reported for the issue.
r
1951
payable
stockholders of
ex¬
preferred
carrying a 4V4% dividend rate,
"priced at $100, also found a ready
"market,, with ;a small premium
;v
of
14
stock of the Company,
common
American Vis¬
series
premium
a
per
Company, payable
27,
holders
Mining Company
VISCOSE
Directors of the
i
Similarly the group which yes¬
terday brought out 180,000 shares
of
Y., to
business
NATIONAL
share and an extra dividend of
share were declared on the
per
50$
brought
Baxter
saw
sell
to
25^
Dividend Notice
cose
a
H. B. Pilrce, Secretary
CORPORATION
the
shares
tories, Inc. priced at $17
ahead
in
For
firm
100,000
of
close
..
a
operations.
banking
a
N.
New
AMERICAN
iV
witnessed
stock
ample
out
debt
new
true
of new
case
December 5,
meeting of the Board
held this day, a quarterly
CO
-C7
is concerned, the opposite
rissues
17,
G.
DIVIDEND No,
COMMON
a
record
common
have
marketing
as
:i
>
.
December
fifty
Quickly
underwriters
.
bond,
a
102.869
deal,
.-
At
quarterly dividend of seventy-live cents
per share on the outstanding stock
of the Company, payable January 24. 1952
a
sweating it out in recent months
as
15.
the .Treasurer, 466 Lexington
York
Packing Company
^
dividend of fifty cents
share on the Capital
a
(50c)
President.
Cents ($.50) per share on*
this
Company has been
declared payable January
close
1951.
11,
The Board of Directors has de¬
York,' December 12, 1951.
DIVIDEND
the
at
WESTJLAKE,
A- dividend of
Fifty
the
capital stock of
1-1,
The Garlock
En¬
A
reception
for
New
tue
December
Pa.
27,
TOBACCO
Combustion
on
President
6, 1951, Philadelphia,
December
of
But
Stocks
,
S5.60
of
understood
was
December
The New York Central Railroad Co.
group's
minor part of the offering
a
December
Stock of the
Philadelphia, December 7, 1951.
of
twenty-five cents
the outstanding -Stock
payable
December
22,
Company,
to stockholders
case
3.225%.
accorded
■
December
on
1951
the
on
14, 1951.,
winning
the
price
a
business
6,
clared
H.
this
of
there vwas barely a
of $2.40 between the
of
fixing
of
declared
1951
a
successful.: group
spread
share
per
December
on
seventy-
of
Stock, payable December 21,
stockholders of record at the
Dividend Nos. 191 and 192
;
highest and the lowest bids.
The
to
($1.00)
1951
year
business
of
1951.
TECHNICOLOR, Inc.
li.
H. C. ALLAN,
COMBUSTION ENGINEERING-
as
and
difference
the
Secretary and Treasurer
19 cents per $1,000
from
from
1951. Checks will be mailed.
NOTICES
pricing.
on
Only about
Common
-
Here the bidders, six of
were pretty well bunched
them,
dollar
one
Huron
in point.
i in
year-end dividend for the
King Merritt
53Vz
■
Elmer
A
Company will not close.
«
offering of $20,000,000 of 30-year first and re¬
funding
bonds
for
Virginia
&
with
now
DIVIDEND
current
Electric
—
payable
Accumulated Surplus of the Company a
close
buyers in the fading weeks.
The
Mich.
The Directors have declared
of
37Va
Class
1951, to stockholders of record at
the close of business December
17,
1951.
The transfer books of the
Quarterly Dividend
Chronicle)
dividend
SUPERHEATER, INC.
portfolios
the
declared,
company
on
debt issues.
new
when
to
Financial
Co.,; Inc.,
Street.
readily reflect the
with
institutional
The
to
PONTIAC,
of the year.
season
the.
stage
With King Merritt
"This, of course, may not be due
entirely to market conditions as
^4
offering
205th Consecutive
of
proved
'
the
extra
this
of
the
on
five (75<) cents per share
has been
Tuesday.
Treasury list gives evi¬
getting help when and
if needed even though on a de¬
cidedly limited scale.
on
reach
The Electric Storace Battery
the
dence
has
December
Aii
for
has
dividend
Y.
,
The secondary investment mar-*
>ket-i reveals signs of firming up.
Directors
a
stock payable December 27,
stockholders of record
at
common
COMPANY"
COPPER
an
of
share
per
1951
new
CONTAINER
CORPORATION
day
NOTICES
111
Cilhonicle)
Standard Investment Co. of Cali¬
fornia, 87 South Lake Avenue.
Street.
Depart¬
shares
to
PASADENA, Calif. — Oliver G.
Tyrrell has become affiliated with
E.
aluminum
new
La.
issue
(Special
Hines, Jr. is with Conrad, Bruce
plant just outside of New Orleans,
"Meanwhile
Joins Standard Inv. Co.
(Special to The Financial Chronicle)
This issue is, due to reach mar¬
ket Monday or Tuesday* and by
way
(2351)
*
•
•
ROBERT
December 12,
1951
'■
>
Secretary
The Commercial and Financial Chronicle
Thursday, December 13, 195}
...
(2352)
112
ment
stores and specialty shops
during the first half of 1951, were
BUSINESS BUZZ
down
56lA% below the corre¬
sponding period of 1950—a good
71
•
of
year,
.
Claus
public
cmmm
Unless the Santa
course.
is especially
business
good
this month, these outlets will show
A
Behind-the-Scene Interpretation*
from the Nation's
«|
fmmcm ocet
gJ
for
of
JljL II/IM/
Capital
the
year
While
first
D.
slips
average
regulations re¬
For
department
a
%
the
its
City whose sales go way beyond
$100,000,000 a year, the problem
quires that retailers shall retain
their invoices for two years "alter
the emergency." According to the
most authoritative predictions of
the Administration, the present
is
more
dollarwise
months
in
these
of
$
drop
the
'
outlets
$
OPS has ruled that
couple of big
in New York
stores
a
3.2%; buying expense, 4.2%, and
selling expense, 3.8%.
$10,000,000 of sales, the
and
filing
problem is
something..
light.
One of the OPS
sales
six
store with
storage
whole
a
aggregated 2% above the 1950 pe¬
riod, administrative costs were
higher by 5.6%; occupancy costs,
for six months.
The
retail sale in the first
six months of 1951 for one class
of
retailers
was
$4.19.
For a
sales
C. —Some
of the more ludicrous aspects of
this
dismal
obsession which
glasses for price control, as they
affect the business of running a
retail store, have just come to
WASHINGTON,
as
60% in profits after taxes.
motor
hat
vince
that
than something.
car
in
and
to
try
Stabilization
the
it is entitled
ceilings.
of Dec. 12
as
industry may take
hand
to
con¬
agency
higher price
-
It is expected
OPS has indicated
that most of the
industry will petition for higher
price ceiling, but that prices actu¬
ally * will be further raised on
very few models of cars even if
permitted by government.
OPS
that it is not
price re¬
lief, especially on a small scale.
years, but no one at present can
For instance, the Price Stabili¬
foe sure it will be over in 25 years. zation agency has just proclaimed
always averse to giving
for preparing to stand
Off Russia will last some 10 to 25
emergency
allowed
a price rise of 3.5% last
March, of 4% to 6% in Septem¬
ber, and a further rise of 3% was
provided because of the additional
excise tax on automobile^
these invoices w|th all the pomp and .red tape at;
filed where the ite command, that it will be perOPS investigators can get at them missflWLe for frozen food locker
promptly.
This means, the re¬ plants in Colorado to raise by 70
tailers feel, that OPS probably is cents per head their charges for
sympathetic to the problem the processing wild deer, elk and an¬
Industry has of what to do with telope killed in the one State
epace not useful in selling mer¬ during the calendar year 1951.
chandise in the present doldrums
This required, of course, hours
In the retail trade, or what to db of tedious study by OPS econo¬
with the space if defense produc¬
mists, legal draftsmanship by OPS
tion eventually bites
into both counsel, formal publication in the
Inventory and production and cuts "Federal Register," x-teen copies
down the goods to sell.
The re¬ to be printed, and so on.
tailers can simply replace store
♦ *
'•
*
counters with filing cabinets for
Under another of these resound-*
Furthermore,
must be handily
'
In the
light of the dull market
for motor cars,
expected to
to boost its
selling prices unless necessary.
The petition for higher ceiling
will be in the nature of a hedg
against a possible rise in the pric
of steel when the government has
got through bestowing consume
generosity upon the steel worker
union.
It is a rule of thumb that?
gaps.
"Okay, Chum
start
I'm part of de public
financing me!"
—
'
the industry is not
attempt
of OPS inspectors.
a rise of $5 per ton in the price o
ing regulations, OPS has estab¬
So the retailer has the privilege steel raises the
department store in Washington,
price of a car fro
rules
respecting
"new D.
that retailers lished
C,, for instance, establishes a of selling hats bought in say, $50 to $200, depending upon th
■hall retain duplicate copies of all sellers," i.e., new vendors,
If a branch in
Arlington County, Va., June, for $5.50, and the same hats model.
as some of them have done, then
bought, say in October, for $4.95.
While the passenger car busi
the OPS will not accept the pric¬ He has the alternative of selling
ing chart used by the parent store, them at two different prices for ness is on the doldrums, this i
said
chart
being
part
of
the the same item, or selling them at not the case with trucks. Outpu
rigamarole by which the store $4.95.
He would
land in the and sales of trucks are
use
OPS also requires
learns how
bobby pin
much it
or a
could
matters
a
toy train for if the
customer would pay
It
sell
not
the price.
that
for the branch store
the
or
price
is
the
The retailer obviously couldn't
mark down his hats paid for at
The
same.
branch store must file
a
different
price chart to establish
pricing "history."
a
different
This
far
so
probably
as
even
if he could sell at
the higher price on the whole lot.
goods
the parent store or its warehouses
would
go
to prevent a department
expected t
attempted to sell all
for $5.50, even
out of
the
come
courts if he
the rate of $5.00 per
unit to $4.95
—or, while he might do that on an
occasional item, he could not do it
on
a
total soft goods inventory
overall that was still showing no
signs of declining in price, with¬
out going broke.
reach
million
1.4
units
in
1951
compared with 1.3 million units ir
the
1948,
duction
previous
year.
banner
pro¬
industry
The
reported to feel that it
can
forward, other things being equal
to
output averaging 1.2 millio
an
units
a
years.
year
for the pext severa
This is twice the pre-Wai
H volume.
^
:r
Hence, the retail industry
approached OPS and asked
counter with its ground floor re¬ permission to average a price
tail shoe outlet into one contiguous tween new acquisitions and
has
(This column is intended to refor
be¬ fleet the "behind the scene" interin¬ pretation from the nation's Capita
physical
merchandising
layout. ventory, in order that the same and may or may not coincide with
The consolidated counter would be item could move at a lower price the "Chronicle's" own views.)
a "new seller" and the department
without being sold at a loss.
OPS
store would have to go through it so far is suspicious.
It doesn't
TRADING MARKETS
all again with the OPS.
trust the retail industry to suggest
store, for instance, from
consoli¬
dating its bargain basement shoe
SULPHUR
Shortages and increased demands for this basic
chemical, a vital necessity in Peace or War,
project
limelight all
the
into
companies en¬
gaged in either its production or exploration.
|
'Wyoming Gulf Sulphur
(A producing company)
freaks
2% asked
comes
a
*
the
of
from
zoo
its
of
OPS
failure
*
$5.50 retail.
now
able from
the
a
same
item is avail¬
manufacturer anxious
at $4.50.
Under the Her-
long amendment to DPA, the
tailer
Sulphur & Phosphate
1 bid
Boston Herald Traveler
Entirely competent sources say
that this snafu caused by OPS is
seriously hindering not only the
working off of inventory, but the
realization by the public of the
advantage of falling prices. Such
Let us say that a hat store got an objective, in theory, is a pur¬
itself a pretty good stock of a pose of such a bureaucratic animal
popular hat at a wholesale price as OPS. Inventories of specialty
of $5.
Its traditional mark-up has and department stores on June 30
been 10%." It could sell the hat were 29% above a year previous.
to sell
Continental
to
sensible way out.
recognize any flexible means of
handling the problem of replacing
new goods at a lower
price than
inventory.
for
'
*
Sjt
Another
But
bid
can
mark-up,
sell
or
the
hat at
a
re¬
10%
This
*
•
nonsense
appears
to
be
particularly difficult for the
retailing industry to bear at the
present
time.
According
to a
study
after
for $4.95.
OPS
*
seen"
taxes
here, the net profits
of
some
400
depart-
.
Eastern Racing Ass'n
::Gear Grinding Machine
^National Company
Polaroid Co. 1st Pfd.
^Riverside Cement "B"
*Seneca Falls Machine
Victoria Gypsum
*
Write-up available
LERNER & CO.
Investment Securities
18 Post Office Square,
Boston 9, Mass#
Teletype
Telephone
BS 69
HUbbard 2-1990
lVs asked
Allied Electric Products
*Prospectus
or
Memorandum available
on
request.
FIRM TRADING MARKETS
We
maintain
may
an
have
a
active
market
in
the
above
issues
Kingwood Oil
and
trading position from time to time.
Ife'
foreign
securities
South Shore Oil
6*
r.arl marks & r.o- inc.
Stanley Pelz & Co.
Development
Standard Cable
.FOREIGN SECURITIES SPECIALISTS
INCORPORATED
50 BROAD STREET... NEW YORK
40 EXCHANGE PLACE, NEW YORK 5, N. Y.
BOwling Green 9-5580,
is
loo
4, N. Y.
TEL. HANOVER 2-0050...TttETYPE: NY 1-971
Teletype NY 1-3089
Hill, Thompson & Co., Inc.
Trading Department
70 WALL STREET,
MHBga si
Tel.
WHitehaU
N. Y. 5
4-4540
@FedFRASER