Full text of Commercial and Financial Chronicle : December 16, 1954, Vol. 180, No. 5386

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INVESTMENT BANKERS ASSOCIATION CONVENTION ISSUE

"isass&N

Re*. TT

Volume

Number 5386

180

New York 7,

S

P«t.

Price 40

N. Y., Thursday, December 16, 1054

Gents

a

Copy

EDITORIAL

Debts

We See It

As

Keep Rising The Investment Bankers

By MELCHIOR PALYI

Dr.

|

Palyi calls attention to mounting public and private
debts, and pictures the growth as approaching a deluge,
since debts are rising more rapidly than the increase in

The political situation called into being by the
results of the election last month and by the
latest turn in the "McCarthy case" appears to. be
a

subject about which

press

the .Gross - National Product.

of a credit
pyramid, accompanied by monetary expansion. Notes a
specter of il-liquidity, which may be tantamount to a
depression. Decries argument that liquidation of private
debts can be avoided by boosting the National Debt,
since this brings up hazards of runaway inflation.

commentators never

tire of

writing. These and related matters of pos¬
sible party strategy are doubtless topics in which
professional politicians and others who are fond
of following the course of partisan strategy are
normally deeply interested. There can be no
doubt that the President faces

a

Mr.

situation rather

by

a

is

party at his back. Obviously,

But for

we are

course,

on

page

IBA

given in this issue.

Forty-third

Annual

Convention

of the

held

parallel growth

of the debt
annual rate of $30-odd

the

at

usual

place, the Hollywood Beach

Hotel, Hollywood, Florida, from
November 28 to December 2, in¬

By that token, the total debt
the nation, private and public

How
year

long

we

go

Partner of

in

Palyi

Melchlor

Dr.

Bryce,

Dodge

nine months after the event.

a

Vice-Presidents

Walter A. Schmidt

were

elected

Robert H. Craft, American

Securities Cor¬

poration, New York; Holden K. Farrar, Smith,

Commerce has

should be

Company, New York City.

The

without

appear

only

once

the

The Department of

economy

was

during the first half of the year, and in

101

a

on

page

John

Chicago;

Hagan, Jr.,

C.

Pfeffer, National City Bank of New York, New

York; and Ralph E. Phillips, Dean Witter & Co.,

boom

Los

recession in

a

Continued

in

Co.,

Mason-Hagan, Inc., Richmond, Va.; Delmont K.

just released the figures for 1953; they

bit confusing:

&

Barney

comprehensive statistics of debts

year,

Schmidt, Poole, RobParke,: Philadelphia,

and

The Debt-Deluge

a

ensuing

Senior Partner of Clark,

1953-54.

The

the

who succeeds T. Jerrold

on

after year,
over-all
indebtedness

and

erts

.

for

Walter A. Schmidt, Senior

year,

running into the
necessity of wholesale liquidation? A mere slowing down
of the (net) debt-growth means a recession—as it did
our

President

as

piling
$30 to $40 billon on

can

The Association elected

clusive.

Angeles, Calif.

_

•

Continued

106

on

page

93

PICTORIAL SECTION'—Pictures of incoming Officers and Governors of the Invest¬

ment

DEALERS

ments

u

Investment Bankers Association of America was

viduals.

plenty of issues which
Continued

the

'

f

The

of

vitally concerned with having good, far-seeing
statesmanlike government during the year
or two immediately ahead. We confess to a strong
suspicion that that party and those politicians
who bear this fact carefully in mind in the in¬
terim* will enter the 1956 campaigns with just
that advantage all are now seeking.
of

T

,

..

*

may

combined, should reach almost $1,000
billion—one trillion dollars—by 1965,
And more
if the
rate
of
growth
accelerates, as it well may. In thia
race
between assets and liabilities,
as it were, the latter are in the lead,
Incidentally, corporate debts keep
growing much faster than corporate
profits; and individual debts fastei
than the liquidity holdings of indi¬

and

are,

..

billion.

tage that either of the major parties may gain
from this, that or the other bit of tactics, are

There

Product

at the average

much more interested
in what may or may not be done during the next
two years, and particularly during 1955, in the
way of sound public policies. We feel confident,
moreover, that the American people, by and
large, share our interest. A great many people
who care hardly a fig about the relative advan¬
part,

our

Meetings Hollywood Beach Hotel, Hollywood, Florida,
November 28-December 2, it is addressed by, among
others, incoming President, Walter A. Schmidt; Senator
Prescott Bush; Devereux C. Josephs; Hon. A. D. P*
Heeney, and Hines H. Baker. Text of these addresses,
also Committee Reports and other Convention develop*

similar

President of great popularity with a
all con¬
cerned will have to watch their step carefully
if they are to enter the 1956 political campaigns
with the greatest positional advantage—or should
we
say the least positional disadvantage?
divided

announced

,

lately that our Gross
reach $500 billion by 1965.
A
figure was projected three years ago by Mr.
Keyserling, the quasi-economist of the Truman regime.
What the politicians do not "project,"
National

novel if not unique in some respects. The same,
of course, can be said of the Democratic leaders
faced

Eisenhower

43rd Annual Convention

Cites danger

Bankers Association of America, also candid shots

taken during

course

of the

State and

Association's recent Convention at Hollywood, Fla., appear on pages 55 to 78 inch

in
Established

U. S. Government,
State and

Municipl

*

Securities

ON

CALL

ONE

HAnover 2-3700

U. S. Government

—

Municipal,

New

*

BANK

New

MABON

& CO.

THE NATIONAL CITY BANK

Sixty Years of Brokerage Service
bond

department

RE 2-2820

Broadway, N. Y. 6

Bell

it

System, Teletype NY 1-2152

★

★

★

★

99

WALL

Bond Dept. Teletype: NY 1-708

NEW YORK 5, N. Y.

Active

To

Raw

—

Refined

—

Canadian

50 BROADWAY, N. Y.
BRIDGEPORT

PERTH

AMBOY

Detroit •
•

•

Geneva,

Pittsburgh

Coral

Gables

Beverly Hills, Cal.

CHASE

THE

BANK

NATIONAL

OP THi CITY OF NEW YORK

Switzerland

The

Maintained

and

Brokers

Canadian Bank of
Commerce

Orders

Executed

On

Markets

Spring

Brook Water Co.

Rights

All

Exchanges At Regular Rates

Scranton

COMMON

Maintained
Analysis

upon

request

CANADIAN DEPARTMENT

Teletype NY 1-2270

Members N. Y. Stock Exchange

Exports—Imports—Futures




•

Beach

SECURITIES

American Stock Exchange

DIgby 4-2727

Banks

CANADIAN

Our Customers

T.LWATSON&CO.
Liquid

Markets

Dealers,

Commission

SUGAR

Bend Department

Exchange

Amsterdam, Holland

STREET

to

Inc.

Trade

of

Cotton

N. Y. Cotton Exchange Bldg.
NEW YORK 4, N. Y.
Miami

★

122 Years of Service

Exchange,

Board

Hollywood, Fla.

Net

LAMB0RN & CO., Inc.

Exchange

Orleans

Chicago

OF NEW YORK

Members N. Y. and Amer. Stock Exchs.

115

Exchange,

Cotton

and other exchanges

Common Stocks

CORN EXCHANGE

I

Bonds

Exchange

Stock

York

Commodity

All Corporate & Foreign Bonds
Preferred and

Stock

York

New

American

State and Revenue Bonds
^

Municipal

Members

Chicago

CHEMICAL

1856

H. Hentz & Co.

Complete Brokerage Service
*

telephone:

MARKETS

ALL

DIRECT WIRES TO

MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS

NEW

115 BROADWAY
NEW

YORK

YORK

STOCK

EXCHANGE

Dohmiox Securities
grPOKATIO?!
40 Exchange

Place, New York 3, N. Y.

Members
and

York Stock Exchange
Principal Exchanges

New

other

111

Broadway, N. Y. 6

WOrth 4-6000

I NORTH LA SALLE ST.

CHICAGO

IRA HAUPT & CO.

Teletype NY 1-702-3

WHitehall 4-8161

Boston

Teletype NY 1-2708

Telephone:

Enterprise 1820

The Commercial and Financial Chronicle
2

Thursday, December 16, 1954

...

(2454)

We Maintain

Dealer

a

$

The

Market in

participate and give their reasons

Collins Radio

Mines

Wood, Walker & Co., New York City

Kerr McGee Oil

Members New York Stock

to

Fixed Interest Railroad Bonds

Time Inc.

used in

Security I Like Best" is

conversation there is but one an¬

New York Hahseatic

mind.

Corporation
Associate

OFFICE:

OFFICE:

PHILADELPHIA
Lincoln

Direct Private Wires to

,,

Hartford, Houston, Philadelphia,
i Portland, Me., Providence, San Francisco

be raised if the volume of security

trading gives the impression that

girl's

best

best

(fcPONNELL&fa
Members

American

120

Stock

Exchange

Stock

York

New

bond is the

say a

protection of a beneficiary.

that

Exchange

enjoyed

of

pectation

based
greater

ex¬

inflation

in

the economy if the Democrats are
elected in 1956
the

BROADWAY, NEW YORK 8

an

upon

or

satisfaction with

that have

setbacks

suf¬

been

and high

Whatever the spark that

ahead.

sound

American Furniture

In

the

market

a

many

;

The

shares, for

Commonwealth Natural Gas

yields of

Life Insurance Co. of Va.

gossip

of them,

material

any

the ab¬

improve¬

haul

the

in

type

growth and operating

continuing at

to be¬

stock

the

of

good time to Buy your
Bond.

a

Direct

SIMON,TIYLORiCO.,lac.
*

I

Lynchburg, Va.

in

with

earnings when compared
1952

1953- and

the

and

this

revenues

in

the

would

year

another

shown
crease

Partner, Hayden, Stone & Co., N.

outstanding

of such companies can

Take

bonds of
Active Trading Markets in

in

the

only

fixed

that

interest

before Federal taxes

RESISTOFLEX

In the

STRONG, COBB

interest

few railroads and bear

a

mind

be acquired.

Y. C.

the

of

industry

SECURITIES

are

to

and

of

ciation

should

charges

reach

which

share

translated

be

can

into

earnings below the line.
I

would

is

payable

share, which is

net

Even

Home

the

111

shares have occurred in those
which

sues

inal

G. C. HAAS & CO.
York

American

63 Wall

Stock

Stock

Exchange

Exchange

you

(Assoc.)

rise in market

Trading Markets for
BROKERS &

•

Sulphur Exploration
U. S. Mercury

that net earnings might ge'

to $2-$2.50

share with cash

a

Trade

flow running substantially higher

"J 'J

in

fleet

air

t>e

doubtful

country

whether

it

new

planes will be taken

is

any

be¬

on

Central

in

with the

and

43

have

years

hit

paid

years

recent

sold

Hoechster Farben

a

look

at

the

travel

the company

ures

at

or

above

of

bottom

a

bonds

100 and

62,

still

have

in 1932

paying

could

There

on¬

is

nd

doubt but that
the

N. Leonard Jarvis

younger

generation

Several times in

these

if

ly be doubled.

interest regularly

more.

years

and

N. Y.

save

tax

WELLINGTON HUNTER:
ASSOCIATES
15

Exchange PI., Jersey City 2, N. J.
5-6005

HEnderson

Teletype J Cy 698

•

Direct N. Y. Phones:

WOrth 2-4578-9

order ul¬

may

turboprops.

meantime

it

In

the.

planes

present

as

paid off and
seems

are

national bane
of india, limited

earnings im¬

only logical to

Bankers

an

increase in dividend*?

an

the

above

current

60c

flown

trip

passenger

Airlines has

by American

increased to something around 585
miles
of

against the

as

lengthj

average

only 480 miles in 1949.

End

There

,

*

been

service

increase

an

but this has

in

(London)

Branch:

Kenya, Tanganyika,
Zanzibar, and Somali-

Aden,

Uganda,

land

Paid-Up
Reserve

Capital

£4,562,500
___£2,851,562

Fund-.

„

£3,104,687

The Bank conducts every

description, of
banking and exchange business.
Trusteeships and Executorships
undertaken

coac!

in

been

Protectorate.

Authorized Capital

also

has

Government

13, St. James's Square, S. W. 1.
in
India, Pakistan, Ceylon,

Burma,

average

the

Branches

'

The

to

Kenya Colony and Uganda
Heajd Office:.-26, Bishops gate,
London, E. C; 2.
>
West

and

accom¬

air-minded,

which in itself

is

sug¬

that

revenues

64

quite

as

first-class

for

seats

Ultimately, it is; expected

the

thing

C.

A,

B.

may

dhe

about

rate

which is not very

do

some¬

situation

satisfactory.; In

any case a more constructive atti¬

tude

may

well be considered

by

the C. A. B. next year.

gests tremendous increases in air

transportation

plane

per

against

fig^ flights.

present

first

and should do it for

cab

air passen-

g e r

mortgage 3y2S-thaL sell-about 82

for 57

-

take

us

visual¬ plished with high density seating
ize the growth to
around 80 seats

T

,

One

with

./ American Airlines has the mosl
modern'

»

Wyoming Gulf Sulphur

tc

venture

„

-

V

South Texas Oil & Gas

had with it?

would

I

;*

DEALERS

easily

price of New York

{

'

BOwling Green 9-7060
Teletype NY 1-2746

Trading Markets in

ers.

.

Street, New York 5, N. Y.

Active

'

"

impressed

are

is-,

afford only nom¬

can

dividends.;;

If

Members
New

remaining
population are
potential fly¬

past few weeks the greatest

Bankers

so,

extraordinary

an

company

year

guess

Investment

<fc

Broadway, N.Y.6 COrtlandt 7-5680

labor experiences during the year
Next

'Established 1897

Office Tokyo—70 Branches

Brokers

showing in- view of the bad luck
which

in

rentage of the
92.5%
of the

increases in lower priced railroad

;

expect net earnings this

rate.

-

dividends-

or

write

Securities Co., Ltd.
;

a

to approximate $1.40-$ 1.50 a

year

in the

airplane, which indicates that
a
large
per-

an

or

-

Yamaichi

.

run¬

ning at the rate of around $4.50

over

United States have ever flown

Call

its

large percentage of

a

the cash earnings currently

realize that

people

of the

vision—

with

knowledge
Japanese potential.
.

peak toward the end of next year,

ticipate

7.5%

with

investors

investors

creasing. The trend line of depre¬

prove,

.Most of us may not

have unusual appeal

may
•

daily utilization of aircraft is im

being

American. Airlines

only

offices

in¬

the best in

amongst

as

tramodern

Members New York Stock Exchange

TWX LY 77

LD 30

branch

our

JAPANESE

have

growth. Cost controls

history

sible
N. LEONARD JARVIS :

.

to

fore* 1958, at. which time it is pos¬

,

low

prices at which the bonds (debt)

wires

con

*

ment

NY l-ltS7

Orleans, La. - Birmingham, Ala.

revenues are

rate of 15%

a

Exchange

Stock

Mobile, Ala.

The

country.

Exchange

Stock

American

HAnover 2-0700

and
a

Beneficiary

the relatively low

some

of

sence

railroad

willing

been

credit

the

appraisal of

the

lieve

York

New

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

New

a

example, has focused

attention upon

Dan River Mills

in

invest after

market.
Now is

rise

sharp

some

months

many

Those who

thorough

Members

highest density routes of the long-

up

considerable money.

Camp Manufacturing

for

forge, factors have

unsound

such

the

seen

inexperienced investors have made

Bassett Furniture Industries
*

and

ahead.

Trading Interest In

have

we

of

the point of discounting

results

the

price

market

the

ried

stocks to

the conservatives in both

ignited the rise,

the enthusiasm

the fact that

fered by

2-7815

REctor

explained

inexperienced buyers has car¬

of

parties.

TEL.

priced stocks in the rail¬

road field today may be

by

rising.

stock market is

the

paradox of low priced bonds

The

Steiner, Rouse & Co.
r.

after

usually find op¬

ptfrphase of sound bonds at a time
when

celebration

a

be

may

into

going

portunities for capital gain in the

For the last six weeks the stock
market has

not

does

One

Hubert F. Atwater

friend," why not

Since 1917

is

money

stock speculation.

is

"Diamonds

Rights & Scrip

much-

too

e

Leonard

Members

regarded

that margin requirements may

ger

calling
the adage that
a

pro

but there is always the dan¬

gram,

etc.. etc."

Specialists in

fiscal

time, since it suits t e

the

re¬

levels for some

interest,

with

R

likely to

are

present

Lines—N.

Air

Jarvis, Partner, Hayden, Stone
& Co., New York City. (Page 2)

evi- pounded annually. But for a rathei
with the serious strike' in 1954;
operating

$1,000

of

sum

at

to

bearer

The im¬

merger

rates

Interest

main

the

to

pay

Boston, Chicago, Cleveland, Dallas,

its

by

\

;

Shore is

West

New York Central in recent years.

the

promises

of

it
of

guarantee

York Central.

New

denced

the

bear

t

4s due

maturity and

later

a

not

portance

undersigned

Liberty Building

with

sue

RR.

There is only one other is¬

does

Bought—Sold—Quoted

'

for one's plot

care

West Shore

be

2361.

re¬

ceived

Street

State

84

secur¬

value

Teletype NY 1-40

WOrth 4-2300
BOSTON

York 5

perpetual

would

Wood,

Atwater,

'V

American

Bonds—

Co., New York City.

(Page 2)

being

are

cemetery association to pro¬

a

the

that

ity which begins,
"For

Exchange

120 Broadway, New

to

It is, of

type of

Member

immediately

comes

course,

1920

Stock

that

swer

and

F.

Walker &

suitable bond to donate

very

vide

"The

expression

the

Whenever

Prospectus on requst

American

A

Railroad

Hubert

retired according to plan.

Exchange

Del. Corp.*

Western Natural Gas

discounts

stantial

HUBERT F. ATWATER

Israel Continental Oil

Established

Interest

Louisiana Securities

they to be regarded, as an offer to sell the securities discussed.)

are

Selections

particular security.

a

(The articles contained in this forum are not intended to be, nor

Grinnell Corp.

*

for favoring

Alabama &

Participants and

Their

Fixed

Dan River Mills

Statler Hotels

week, a different group of experts
and advisory field from all sections of the country

in the investment

Chemical Products

Week's

This
Forum

A continuous forum in which, each

Bausch & Lomb

Haile

Security I like Best

American Airlines
a

fine reputation

has-built- up

for service and

apart from the fact that the older
interest.

Bayer
Badische Anilin

In

tem

the

the

position

Farben

Liquid.

folks

&

Baltimore

improved
has

-

Ohio

prices

of

above 100 for several of the fixed
interest

@ppMikeime/i
New

York

Phone: HA 2-9766

are

Stock Exchange

25 Broad St., New York 4, N. Y.

grow

as

issues

and

about

probably worth

more.

80

for

-

!

Divisional first mortgage bonds
of

the

Lackawanna

and

Lehigh

fast

routes

and




can

still be bought at Sub¬

as

from

any

company?

in

It- derives its basic
'

from

V

■

.

t

Boston,

New

York

Angeles and San Francisco in the
West
and

by

way

of Detroit, Chicago

Dallas, covering

10,800

route

has

also

been

of

one

the

first

with the latest type

planes; which

hasrgone

in developing

a

long

way

the traffic

potential of its routes.

The

represents

stock

one

of

Over-the-Counter

Quotation Services
for 41 Years

the

transcontinental

Washington in the East to Los

Tele. NY 1-3222

Valley

it

also getting into line.

the industry.

strength
the contingent interest 4Y2S, which

Members

are

American Airlines is the largest

sheet domestic corporation which should

balance

brought

Sys¬

a

total of over

best investments for price appre¬

ciation in its group.
American

Airlines

common

National Quotation Bureau
Incorporated

stock

Stock

miles including the price

is

listed

on

the

New

Exchange

and

the

Dec. 15

was

20%.

Established 1913

York

closing

46 Front Street
CHICAGO :

on

NewYork4,N.Y.
BAN FRANCISCO

Volume 180

Number 5386

.

.

The Commercial and Financial Chronicle

.

(2455)

INDEX

The New Democratic

Articles and News

Congress and Business

Debts Keep

Rising—Melchior Palyi-^
Congress and Business

—Richard

___Cover

Wilson

L.

almost

Washington

equal

Republicans,

V

*

-

a

Correspondent, commenting on the
Congress among Democrats and

.

Our

new

middle-of-the-road policy. Holds, in

Sees Democrats forcing the Randall tariff reduction
J
and restoring fixed farm price parities.

.

-j

;

■!

We are. turning mow

chapter-in

to

Washington.

written there

be

can

riew

a

What is

have

we

ished

We

forget
people

master

before

»

to

reading

h

One

are

ocrats..

raised

Re¬

more

publican
licans.
White

cided

Wilson

Richard

The

be

to

continue

will

controlled

by - a
man
who is
passionately Republican

Democratic.

nor

thinks

He

-

a

vehicle for
expressing the will of the people,
not

ing

power.

This

is

to

way

mixed

a

the

confusing

and

government.,' Per-

a

of

attitude

the

reflects

of

it be
possible that we do not trust the
Republican 1 e a d e r s h i p Tcompletely?
Nor do we trust the
mind

that

so

The

/;

one

keep

can

other?

wish to have

we

divisipn

equal

nearly

a

Can

country.

But

Democrats.

the

almost

equal

„

both

of

eye* on-

an

J .V

*

*

division

of

opinion in this country
is startling.
Democrats will con¬
trol the Senate by virtue of win¬

in

senatorial

single

a

contest

single state by a margin of

a

Nor is this

in

elected

tually,

55%

Ac¬

of

far

the

short

popular majorities piled up by

some

of his

predecessors in both

In

parties.

1920

lar vote.

Harding

won

64% of the popu-

Cox with

over

filiations,
any

ma-

don't

two

who will

or

a

Hoover

won

over

Smith

only

or

g°vernment
y,^u€L ^

1m

"hower
much

too

tion

.

.

Research
State

Except

in

feelings that the
not

was

the

suitably
economic

in

few

a

the

local

pro¬

often

Republicans

one

the

purely

would

be

local

Senator from

1928

vote.

with

58%

Roosevelt

of the popular

defeated

to

year

*

Convention Again in Hollywood,

1955

a

that

unknown

he

in

was

his

own

little earlier and made his
better known he almost

cer-

tainly would have been elected,
This

have

Republicans

to

premitted
maintain

the
their

majority in the Senate.

Control of the House goes over
to the Democrats by no more than

Investment Bankers Association
Annual

Fla

39

Sulphur

108

Scanlan

Earl M.

Holds 43rd

Corp,

v

Convention

..Cover

Calls Attention

to Booklet

"Aids in

.

.

.

We

the

Market Influence,

Says Eliot Janeway

14
21

Myron L. Matthews Discusses Construction Outlook for 1955__

39

Merryle S. Rukeyser Warns Against Overconfidence

51

Potter

trading markets

over-the-counter

HA 2-0270

Big Job! (Boxed)

in

mors

securities

Singer, Bean
MACKIE, Inc.
40

Exchange PL, N. Y.

Teletype NY 1-1825 & NY

—100

____

a

250

&

Too Much "Globaloney" on "Atoms for Peace," Says

Alden A.

maintain

than

14

Prudential Insurance Co. Issues Economic Forecast for 1955__

104

Direct Wires

SEC Expects Capital Expenditures to Stay at High Level_____109

1-1823

to

Philadelphia.. Chicago.. Los Angelas

Regular Features
We See

Bank

and

Business

(Editorial)

It

Cover

__

Stocks.

Insurance

____,

r

Bookshelf

Man's

Dealer-Broker

Investment

working majority.

Continued

And, in genon

page

95

19

...

132

.

Mutual

News

Recommendations

8

12

:_

and

'

Bankers

Wilfred

May

5

Reporter on Governments
Our Reporter's Report

Now

Prospective
Securities

105

in

I

109

i.

L

:

125

Offerings—

Corner—

Salesman's
.

93

.

and

.

Preferred & Common

129

You—By Wallace Streete
The Security I Like Best
The State of Trade and Industry
Washington and You
.

REEVES-ELY LAB. INC,

52

;

Registration

Security

LITHIUM CORP.

131

.

Securities—

Railroad. Securities

CORP., Common

20

Our

Securities

HOUDRY PROCESS

124
16

Banks

Utility

CORPORATION

33
:

Funds

About

AEROVOX

14

■:—

Einzig: "British Stock Exchange Uuncertainties"
From Washington Ahead of the News—Carlisle Bargeron
Indications of Current Business Activity

The Market

*An address by Mr. Wilson at

a

Hycon Mfg. Co.
Pan American

Ultrasonic

Observations—A.

would

narrow

Coast Leasehold

41

Golf and Tennis Tournament Winners

As

name

Gulf

40
*

Candid Pictures Taken at Convention—pages 55 to 78 incl.

if

state. If he had started campaign-

Landon

the 33rd
Annual Meeting and Dinner of the Syn¬
thetic
Organic Chemical Manufacturers
Association, New York City, Dec. 6, 1954.
.

38

Committee
*

Federal Pacific Electric

37

_

Coming Events in the Investment Field

ing

36

/

western state

a

realized

practically

r

35

____.

Committee

Companies

A Good Man for

able

the Senate next

fully

&

32

;

List of Those in Attendance at Convention..

least without

at

or

of

general national significance.

had

Philadelphia
City

Lake

34

■

areas,

not

were

outcome

were

character,

control

Committee:.--1-..

Financing of Stock Issues With Pre-Emptive Rights".
Tightening Margin Requirements Would Exert Bullish

violent. Factors which

controlled

Salt

to

business Administra¬

with

or

wires

31

Committee______;____

Securities

Investment

way

Direct

30

Committee

Securities

Teletype: NY 1-4643

29

__

Committee

Securities

Broadway, New York 4

DIgby 4-4970

,

.

•u

feelings

nounced

28

Foreign Investment Committee.

Public

in

Statistics

and

Industrial

sense

problems of the farmer.

these

42

Reports

:

legislation Committee,

Canadian

up to expectations
feelings that it was

a

concerned

J. F. REILLY & CO.

27

:

,

Aviation Securities Committee

discontent based on
r.J P 5 S+
S
Administration had

vague

.

■

Public Service Securities Committee_______

^ailed to live
vague

26

Municipal Securities Committee

the Republicans were running the
,

Supply

___.

Texts of IBA Committee

have

discontent with the

vague

>

25

—Hon. Arnold Heeney

party 'af¬

never

could

Standard Uranium
24

_______

Pattern of Canadian Investment and Trade

covering the cam¬
could find no nation¬
I

Josephs

—Hines H. Baker

:

coast

issues.

Sabre Uranium

Coming Year—Walter A. Schmidt-- 23

—Sen. Prescott Bush.,

Railroad

wide

Uranium

de¬

..."

Federal Price-Fixing Threatens America's Gas

Governmental

I

\

*

,

paign.

Rocky Mountain

'

Reports

The Next Two Years of the Eisenhower Regime

Last fall, just before the Con¬
gressional elections,
I travelled
many
thousands of miles from
to

Committee

and

care

Republican

are

7

—Devereux C.

party affiliations whatsoever.

,

a

of

having

as

He fell

vote.

popular

think

landslide.

a

received

he

Mr.

without

We

Eisenhower

President

been

elected

was

Our

new.

President,

majority.

popular

of

anything

Democratic

Truman,

who

the

election

1,900 votes.

last

they

Administration

political

ning

a

addresses

Government Competition with Private Enterprise

care.'' A "

have

we

of

IBA Problems for the

p^mocratic, jwho change back and
forth between

-

run

it

haps

a

instrumentality for hold¬

an

inuicated:

voters,

coast

party .'is

political

of

TEXTS

Association of America at Hollywood,' Fla., appear on pages

or

voters

whether

House

neither

by

18

livered at the Annual Convention of the Investment Bankers

only two miparties with elections de¬

nority

than

Repub¬

many

party,

Lisbon Uranium

,

Paley———

Texts of IBA Convention Addresses
FULL

v..

conclusion

don't

whether

jority

Many of them
are

the

politics,

one-third, cto not know
they are Republicans or
and

Continental Uranium

Craig__J—18

Materials and Resources for the Nation's Growth

significant change apparently has
taken place in American political
\
life,
llie question can be fairly

who

e m

the

to

millions

Democrats

by

nominally

led

15
^ '

-

16

Business Prospects for 1955—Cleo P.

Roosevelt, / at1 the

many

con-

trolled
men

is

perhaps

a

Armstrong,____i______4

—Norman F. Dacey__

favored

American
D.

whether

Congress

D

that

we are
a ve

of

12

—

for

as

STREET, NEW YORK

Telephone: WHitehall 4-8551

12

virtually -i as
Adlai E.

voted
1952

Investment Program

No Antagonism Between Mutual Funds and Life Insurance!

S.

green

Obsolete Securities Dept.
99 WALL

.

height of his popularity.

it.

Now

^

V

the popular

that

in

Franklin

fin¬

Sinclair

J.

the weather

guarantee

dojllars for yellowed obsoletes!

11

a Flexible Monetary Policy—Frazar B. Wilde.
SEC, the Congress and the Securities Industy

The

"

program

of

1955

In Praise of

:
*

guarantee

can

10

Schlesinger____'__l

—William

Stevenson

rewritten
even

with 66%

many

be*

may

1936

we

"

^

Points in Planning

vote.

vaguely.

seen

We have the impression the
chap
ter

in

but

10

.___

Jenkins.

—Edwin J.

firmly,
:

can't

9

Foreign Economic Policy—Clarence B. Randall—

—H. P. B.

to be more adaptable to Eisenhower leadership than
Republicans, and if a "hopeless jam" is to be avoided,

Mr. Eisenhower will have to
grasp control of his party

8
:

"Social Welfare Plans—Time to Take Soundings"
—Louis W. Dawson___

; appear

the

WHITE CHRISTMAS?
We

Toward An Acceptable Contracyclical Policy

respects, Democrats

some

6

Money Raising—Roger W. Babson—
Looking Ahead in Uranium—W. B. Hall

chapter in national poliics. Says
many Democrats in Congress are more Republican than many
Republicans, and President Eisenhower may be forced to a
sees

4

Church

of

division

AMD COMPANY

3

A

Submerged Millions—Ira U. Cobleigh
Business in 1955 May Top '53—Roy L. Reierson

Chief of the Washington Bureau, Cowles Publications

[|CHT£HST£III

B. S.

Page

The New Democratic

By RICHARD L. WILSON*

Prominent

ROCKY MOUNTAIN

17

2

,

URANIUM*

5

<

132

VICTOREEN
Published Twice Weekly

The

For many years we

have

specialized in

Members New York Stock Exchange

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Possessions, Territories and Members

the

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the post office at New
York, N. Y„ under the Act of March 8,1879.
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Thursday, December 16, 1954

state

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&

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plete

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9576

SEIBERT, Editor & Publisher
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ary

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Copyright 1954 by William B. Dana

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25

BROAD

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land, c/o Edwards

COMMERCIAL and

FINANCIAL CHRONICLE

PREFERRED STOCKS

WILLIAM

25

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Monthly,

(Foreign postage extra.)

account

of

the

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COMPANY, ING.

LOS ANGELES

4

The Commercial and Financial Chronicle

(2456)

these submerged

Submerged Millions
\

:'

.

Sam

win,

Enterprise Economist
A

year-end look at the

the tidal whale pastures
half

Not

enough

attention

whale

petroleum potential of

the vast

to

title

solved

offshore

the

in

the

Ask

tidelands.

average
about this

are,

all

he

think

is

out

some news¬

in

not

of

paper

drill
in

to

own

Louisiana

the

miles

10.38

was

ac¬

running
only three miles. (But this is
finally settled as Louisiana

Gulf

35

Sam's.

10.38

mile

and has

the only off¬
he
wondered, shore oil leases signed had been
Before
vaguely, what with the separate states.
it was doing 1950, when the title conflict landed
Ira U. Cobleigb
in the legal arena, over $250 mil¬
out there in
•; ■ ■
the water, lion had been laid out in leases,
anyway. Well, there was and is a
equipment, rigging, and consider¬
king-size reason for its existence, able production brought in. Vir¬
and
its
offshore
location. Let's tually nothing, however, was done
examine the matter.
in the period between 1950 and
Everybody knows that a broad March 1953, while the lawyers
arc of land, embracing thousands
were kicking the title around. For
of square miles, North, and North¬
the past 18 months, however, the
west of the Gulf, is just oozing joint has been jumping. $150 mil¬
with oil
Louisiana, East and lion has been spent on state leases,
West Texas, the largest oil and gas and drilling units to bring them
fields in the U. S. But what is less into payzones; and actual produc¬
generally realized is that the same tion now must be around 50,000
sedimentary geological formations barrels a day, mostly from off
year,

~

that have been
ductive
the

so

shore,

on

experts

to

fabulously

That leads

believed by

are

extend

for

real-estate

many

us

to the second

up

phase

—

the leasing of

miles out into and under the Con¬

Uncle Sam's land further out. This

tinental

was

shelf.

This

shelf

is

just

what it says—it's a ledge that just

for the

done,

first time,

on

Oct. 14, 1954 and the best title for

juts out from Louisiana and Texas

this event would seem to be

shores,

20

to

slanting off scarcely
foot

a

mile

till

100

a

miles

than

more

sheers

it

was

a

For those

abruptly into the depths.
For

some

years

there

cates

was a con¬

"$130

the dollar total of the bids

that eventful

off

and

been

Just

on

announce

companies and syndi¬

willing to risk

seven

figure

peasants, note that $6.1 mil¬
plunked down by Forest

was

Oil

of

Co.

'

works out to

acre). Next
the Gulf Oil

$1,220
magnitude was

in

(this

Island

Eugene

and

sink

above

M.P.H.

neered in this

brand

74 feet wide,

and

later

Kerr-McGee

allowed

withdraw

to

its

bid,

however,

returned

the

$2.9

million

payment.

Meanwhile, McGee had

had

wistful

a

vista

of

and

down

dropping

$15 million; but it all turned out
all

first

bidding for Federal
tidelands, just recounted, was all
off Louisiana.

On Nov. 9

second

a

was held, this time on the
Outer Continental Shelf off Texa*

bidding

from Port Aransas to High Island.
38

tracts

19

on

but

quite

bidding seemed to center

where, apparently, the

areas

most

offered

were

selective

extensive

bid in this

geological

letting

Petroleum

Co.

by Magnolia

was

$2,209

—

per

acre

The biggest total
single tract, however, was

for any

$4,565,251.99

want

5,760

on

-

...

'

intention

the

not

was

clobber you with

if

two

under
lion

the

in

easily
biddings

than

v

-

that

listed

include

lurks

beneath

of

the

number of

a

new

in the last three months.

well

hit

with

flowing

a

discovery
Cameron

(215

well

bbls.

high

small choke at 7,370 feet.
were

in October. In

"CATC"

a

Service)

Parish

Kerr-McGee

team

(Con¬

announced
the

where

4

These
/

will be admitted

tkat

a

gas

team

American

Tidelands, Inc.

in these three

a

the

.

General Partner

January 1, 1955

form, built

on

the

had the defect of

if

a

had

to

has

New York Stock

120

Exchange

probably too early to

just

how

play

billion

pre¬

offshore

be.

If,

as

claimed, there

have

some

this

big

is going to

are

10

barrels

of

oil, plus

storied

and

once

waters,

then

indeed

this

piece

may

few

a

much

oil

the
as

title
a

robes

well-loved

equipment,

probing

talent

big
and

are

work here, with the gradual
of the shelf

at

ing, and the running of pipeline

of

major

and

1955 may

for the

news

for investors who
selections

to

Co.

BArclay 7-6440

the

mark

will

the

Stock

make

a

lot

tidelands,
make for¬

enter¬

among

prises at work therein.

remain

lighted

throughout

season.

Christmas

music

will

outside

be

played

from

of

Exchange

gallery

during the

the

hour and late in

noon

This is

the

31

year

in which

the

ened the financial district.

Led by Kenneth

Westinghouse
offer

the

Thompson, the

Choral

following

Group will
program

into

one

they

Medley (Fred Waring Arrange¬
ment):

-V

,

Come, All Ye Faithful;

God

In

A

Rest

Manger-

Ye

Merry

Gentle¬
"

men.

"Noel":

"

Wilhousky.

Deck The Hall: Traditional.

Lo, How A Rose: M
O Holy

First Noel:
The

Praetorius.

Night: Adolphe Adam.
Traditional.

Lord's

A.

Prayer:

Malotte.

Silent Night: Franz Gruber.

Harry S. Courtney
Harry S. Courtney, Manager of
the investment service department
of Peter P. McDermott &

Co., New

York City, has passed away.

Three With Rogers & Co,
(Special to The Financial Chronicle)

DENVER,

Chadwell,

Colo.

Orell

Sixteenth

William

Weir, Jr.,

are now con¬

Rogers

&

Co.,

Street.

firm

from

outsize

the

up

on

the

daddy

the

drill

sea

caissons.

floor, like

longlegs,

platform,

contains

high

galley,

or more

plus

space

for

and

NOW AVAILABLE.

gear.

A

and

Co.
sort.

.

fortnightly review of the Canadian Securities Markets

FREE COPY UPON

REQUEST

MUrray Hill 2-4545

and

NEWLING & CO.

J.

Ray McDermott, Inc., Shell, Hum¬
ble

.

The NEWLING CANADIAN LETTER

personnel,

drilling

I, GEORGIA

DISTANCE 421

plat¬

rig platform,
or

LONG

to

to 100 feet of water. The

platform

Robinson-Humphrey Gq|tt|sany,!nc^
ATLANTA

Members of the Toronto Stock

Exchange

Oil, and C. G. Glasscock Oil
21

have, I believe, units of this
They cost $2 million

or more

West 44th

Street, New York 36, N. Y.

Direct Private

Wires

to

Canada

511
e

LOCAL STOCKS

WALNUT 0316

C.

Love joy and

with

nected

—

O.

be

design, by projecting

Hay

i

,

drill

can

on

Friday:

CORPORATE BONDS

•

a

huge Christmas Tree has bright¬

STATE AND MUNICIPAL BONDS

The

the

afternoon.

J ESTABLISHED I894fc

dis¬

Ex¬

holiday

the

the

by

Tuesday, Dec. 14, and

on

This

be

Yule

selection of

a

carols.

erected

change

Arthur L.
tunate

Westinghouse

slope

simplifying the drill¬

to the shore.

the

The 50-foot Norway Spruce tree

of

gross

In any event,

costly

of

pirate-ridden

appear

understatement.
money,

.

American Stock Exchange

BROADWAY, NEW YORK 5




&>

choir

Carol

It is

30-voice

a

Group, dressed jn scarlet

Season, will render

1 V\ when this was writ¬

ten.

by

sung

Members
Choral

Away

—around

on

choir.

following

fixed in¬

be towed

can

Then

quarters for 40
.

Carols

mas

mixed

attracting

RHODES-HAVERTY BLDG.

hydraulic steel pillars

dry in

,

p.m.

floor and

ocean

perchance,

areas.

support

Members

the

O

considerable

the

will be lighted
Friday, Dec. 17,
accompaniment of Christ¬

12:15

to

active over-the-

possibly because of its price range

in

opposite

Exchange

at

Tidelands

The first

being

which

downward

an

Garvin, Bantel

Stocks

Tree

Street

trading floor of the New York

Stock

counter with American

permanent drilling plat¬

These stand
on

are

consideration

any

of three sorts.

are

converted

'

as

Industries.

Inc., J. Ray McDermott, Inc. and

~

SAN FRANCISCO

.

would

Broad

under lease.

acres

forms, in
i

are

of

offshore

likely

■

Specialists

Con¬

off

miles

32

these

able sulphur domes beneath these

time,

willing to bet high

however, which

'

production.

all

of

NYSE.

The latest rigs are floating units,

*■>

to

stray trillion C.F. of gas, and siz¬

fabulous amount

a

In fact,

mantled,

Mr. Ralph De Paola

prove

land

month's

a

that

see
on

proved arid.

announce

to

in $150 mil¬

bring

sea

less

above

lot of sta¬

a

you can

Federal

stallation

to

may

tideland

stocks

production, are the
designed rigs being built
especially for sea floor drilling.

(jw York and tAmerican Stock Exchanges
and Midwest Stock
Exchanges

pleased

likeliest

terey Oil among the majors. The
common

Gulf

38,000

v

'Boston

are

what

which

Continental, Pure Oil, Standard of

off

acres

generally in shallow water.

We

the

you'll

on

know

California, Socony-Vacuum, Mon¬

Texas.
It

the

Community's tra¬

Christmas

distillate field 17 miles off Came¬

.

PHILADELPHIA

to

seem

fabulous

dict

to

center

was

land-grabbing

My nominees would be Gulf Oil,

High Island bid in by Standard of

was

CHICAGO

Tidelands,

Lighted Friday

The Financial

bird

for 14,040 acres.

gas on a

"

BOSTON

a

right.

The

gravity daily) plus 120,000 C.F. of

Kidder, Peabodyhp Co.

NEW YORK

type of craft, and

barge building going

newly

Members

100

pio¬

will shortly be placed

benefit from
be

and

independent.

an

companies

Important to

Members

and sol¬

wave;

Kerr-McGee

Now with all this

tion.

tinental, Atlantic, Tidewater and

-

and

unit, 200 feet long, and

new

probably

million on the wrong sec¬
The Department of Interior

November

1865

flooded

bottom, mooring

wind

winds.

bid $15

of

FOUNDED

is

area

are

Inc.,

ron

"

the

to

drill

in service by American

$6,007,000 for another single
acre tract (Gulf bid $36 mil¬

Cities

"

the

bid of

a

Exchange

January 1,1955

when

an

Parish, La.; and Shell brought in

Cleveland

effective

Antonio for 5,000

San

off

acres

in

Exchanges

Correspondent

this

sturdily enough to withstand

lion

Both of these

Ohio

In

To Be
ditional

parallel

ished

gas

Company

Associate Member American Stock

pontoons.

Wall SLXmasTree

feet

the drill platform safely

flowing wells have been brought

the appointment ol

Members New York and Midwest Stock

60

idly

tinental Oil

as our

above

rising

you'll recognize that this
bidding was not made by impover¬

tistics, but

day.

„

Thursday, December 16, 1954

so

waves.

McDonald &

for oil

sulphur leases.

recoverable oil

pleased to

pledged

lands, and $1,200,000 for

gas

oil experts are

are

caissons

on

reached, the pontoons

stakes

We

built

million

had

,

variation of the float¬

case,

millions can't be Wrong." For that

from

com¬

dogging had been done. The fattest

Louisiana.

pro¬

of

even claimed
lion altogether). There were also
In any event, the land
these
limits
is
Uncle quite a few others, including KerrMcGee who pulled a boner and

this

Until

hurricane; and

number

a

daily

a

or more.

ing rig is the submersible platform

miles.)

beyond

being lashed
by a tropical

terms

command

5.000

the

least

at

boundary

platform

the

shore.

wants

oil

an

point

a

Florida

corded title to the acreage

a

saw

picture he

and

deemed'

are

to

out

1953) whereby

of Texas

case

from

can

of

but that was re¬
the
Tidelands Act

by

the states

land

wonderful

pastures

the

in

and,

chances

these

to

(signed March 16,

Joe

rental,
plus a l/6th
all production. Under
draw,

and

$6,000

A second

yearly

acre

or

build

rental of

panies started writing checks and
when the bids were opened $128.7

of the Gulf of Mexico.
flict

has

generally

been given by investors

these

to

uniform lease—$3

a

per

lose

royalty on

in probing for petroleum in

progress

offered

month

a

By IRA U. COBLEIGH

;

productivity of
drill-sites, Uncle

the

on

wampum

...

____

'

4.

Volume 180

Number 5386

The Commercial and Financial Chronicle

.:

.

(2457)

(r

f
Steel

The

mined

Output

Carloadings

State of Trade
>

.

'

*

<

"

•

•

•

Food

(

Price

and

Industry

Business Failures

was

ap¬

est market

proximately at the same level as
a
year ago.
Production of steel
automobiles

and

first week in

and

rose

Lakes
the

following "Iron Age" district
operating rates for this week:

for the

1954 the number

strength is in the Great
This is confirmed by

area.

Underlying Policies and

of

Buffalo, 100% of capacity; De¬
troit, 92; Cleveland, 90.5; Wheel¬
but equal to those in the corre¬ ing, 88; Chicago, 87.5; West, 85;
South Ohio River, 81; Youngstown
sponding period a year earlier.
and St. Louis, 79; Pittsburgh, 78;
Further,
production
of. electric
power
was
at an all-time high Philadelphia, 71; Birmingham, 67;
and Northeast, 65.5% of capacity.
level.
Encouraging reports
made

the

claims

past

for

benefits.

filed

in

insur¬

Continued

week

ended

claims

Nov.

.

greater than

in

20

be

far

in

1953.

27

benefits
earlier

In

the

initial

claims

16%

were

week

week

and

the 1953 comparative.

but

not

much

as

of

of

when

October,

Ford

had

000 rise

these

looked

for

plier

assembly lines scheduled for
and car building Saturday.
reported,
however,
that on Friday last, Studebaker,
Nash

weekly.

for

or

point

a

below

two

three

to

lating;

con¬

itself

cerns',

two

is

on

.

tv,-

in

ir*

.

.

„

^bS Maintaining
e,ntl°i

.

are

last

week.

EMPHASIS

>

Some degree of forecasting

is unavoidable in investment as
well as in business and agriculture.

lieu of treating

for

concepts.

f •

Governments

individual

tries

In

,

.

and

be

to

TT

tax

„

with

b acket).

tax.

stocks

among

In

la?ter

defensive situations.

and

My method for appraising indi-

investment

field,

before, with Chrys¬
(35,500) expected to
weekly level since Sept.

ler

Day that an increase in
steelmaking operations has not

any

30,

1950,

been scheduled.

built.

the

first

week

Labor

production

Since Labor Day

has

increased

care

recouping
a

as in
should calcalate a

we

In stocks,

of

the

should

bloodedly
ervation

as

and

f

one thand: f"d stock

ments on the other-

market move-

(1) Business-stock market di¬
vergence,

1925-29;

and

is

Production

expected to
But the

during the holidavs.
sonal

decline

will

be

less

dip

War's unexpected market

(2)
effect.

cold-

varying

(3) Inflation's

media for the pres.
profitable employ-

ket

in£estoi,s capita{; /ot

(c) Reliance on internal market

analysis.
(d) Fundamental fallacy of con-

issues

indjvidual

often

of

ception

sec-

"the

market"

ondarihJ Zive clue to status of whole> evidenced in:
general market. ■
(l) Divergence
NET"

PORTFOLIO

groups

POLICY.

over

>
Continued

on

Company Limited

Bay Street, Toronto, Canada

.

Continued

than

on

We provide

page

110

a

complete service for corporate

dealers
We take

pleasure in announcing

/

the opening of

an

are

invited.

Members

The Toronto Stock

'If

7

Private enquiries from

financing in Canada.

office in

Winnipeg Stock Exchange
Vancouver Stock

Charlottesville, Virginia

Montreal Stock Exchange

Exchange
,

,

Canadian Stock Exchange
American Stock Exchange-.

Exchange

(Associate)

with

MR.
7

>

>

GROKE MICKEY

Affiliate

Acting Manager

Gairdner &

-i

Anderson & Strudwick
UNDERWRITERS

—

DISTRIBUTORS

>

-

:

40 Wall

;

<

Member:

Company Inc.

Street, New York 5, N. Y.

'

The Investment

INVESTMENT SECURITIES
807

East Main Street

Richmond 12, Virginia

Telephone: 7-3077
Teletype:

RH 563




110 Second

Dealers*

Virginia

Telephone: 2-8181

Teletype:

CIIARVL 97

'

of Canada

Kingston

Quebec

Kitchener

London

Calgary

Vancouver

■

Hamilton

Association

Street, North East

Charlottesville,

Montreal

■

Edmonton

New York

Private wire system.

as

a

between

long- and short-

^erms> an

(a)
First, continuallyi .explore
situations by value criteria.

320

Ford, meanwhile, held close to

mar¬

effects.

through

March.
1

sea¬

1939 to

scorekeeping figures. Incidenta]ly> quantjtative value findings

ment Qf the

possible

output

than 30%.

nrr»winn

date.

weighed

be

-

,

,

Earning power and balance sheet

items

The many imponderables.

(b) The absence of correlation
between external political, economic a'ld business factors on the

operation.

Gairdner 8

when 37,773 cars were
Chrysler car divisions

scheduling highest
for
January

are

more

All

fore¬

Results.

tive Forecasting

(a)

output

top

is

the

is: over-empha-

element

sound criteria.

em-

buying price that indicates more
to gain than to lose over the full

on

amongd iff emit

companies within industries, in-

.

sized as
.end' rather than as
unavoidableaccompaniment of

ag

mdus-

including, boto anti-in la-

(4)

.

C°m!n0n Reasons for the Inevitable Abor¬

i

DLsbiPitv

estate'

real

exempts

varied

..

,

investment functioning.
In

buving Drice. to give the

th

securities

,

of forecasting

.

^

likewise

It

chance of profit.

between U. S.

former

(e)
ve' Minimization

?lemont ^ a correlative of true

ex¬

hisyprincip!^with forest, phis

,

long-term

stocks.

common

(3)

th

.

the market-as-

interest

^ Forecasting ior its own sake
an act of speculation-gambling,

atI

investment should be taken

"

(proportion

Such

:

is

rental and risk components of our

term

Fixed
T

Likewise in the concept of
should forecasting be kept to a minimum,
(c)

sense viewpoint that the money-

^LDiVerSi/iCati°n °£ holdings-

In

;

asRegarding

realism,

braCeS..:the„

rigid attivalues

of

making production and weather
5
r
:
^
•
i

estimates.

casting

yield

among:

/nx

opportunities

Our value approach satisfies the

attitudes.

<2)

selling

or

rieed

«vi1S Jr

-

aT,h,0lo
(2) Preservation

and

in

than the week

since

This

ON

"

of seeking individual

(i)

impon-

isted

.

eluding both growth companies

weeks.

PROPER

FORECASTING.

-

genuine investment,

(under-or over-valuation).

be halted

to

marprev-

opportunities have constantly

..

...

(1)

shut

weeks

the

on

opportunities.

Because of inescapable

buying®

Studebaker

while

production

to

were

Continuing,
"Ward's"
said:
Mercury, Lincoln, Packard, Hud¬
son,
Willys,
Pontiac
and
all
Chrysler Corporation car divisions
were in higher gear the
past week

metalworking

Operations this week

0.6 of

Hudson

assembly,

car

scheduled at 81.5% of rated capac¬

ity,

for

truck

reached the high for the year this
week and last, according to "The
Iron Age," national

and

down

have

may

four

"Ward's"

firms

production

has

Chevrolet

final

up

Steel

plants.

truck

Sales of

totaled
$48,700,000,$600,000,000 from Septem¬
ber, off $3,000,000,000 from Oc¬
tober, 1953.

000,

Chrysler have all di¬

work, it said, and Chrysler is
scheduling Sunday manufacture
in all key departments and sup¬

$700,000,-

a

during October.

and

,

rigid mathematical appraisal
of specific issues, emphasis should
be on price reflecting favorable

With market

visions programmed for Saturday

valued at

Get additional confirmation
recognition of market foibles.

THE

tific

out.

$77,900,000,000, $400,000,000 above
the preceding month, but $4,400,000,000 below the year-earlier fig¬
ure.
Commerce Department offi¬
cials

166,715 cars and trucks
highest production week
ending May 2, 1953,
172,706 units were turned

that

(c)

derables and difficulties in scien-

-

the

since

expected.

as

were

,

specu¬

tude

pace

1953.

manufacturers, whole¬

salers and retailers

investment

thinking.

and

Stocks

while

of

previous week's strong

,

from

creating continuing advantageous

ducing ipcome

above the

than

According to the United States
Department of Commerce business
in

pro¬

on

motor :: vehicle

premised

appraisal of individ¬
have pri¬

ority.

value approach assumes market
price tends to depart from value;

rvalue

tion estimated last week's produc¬
tion
at
171,588
vehicles,
3.7%

first nine months of 1954 without

increased

e r m

factors

relatively
of 1954 I
short
tqrm
heavy over-I
capital gains.
operations highlighted the
,Beh avi o r
A. Wilfred May
week, states "Ward's Automotive
and
policy
Reports."
The automotive trade publica¬ should be fundamentally based on:

ployment insurance rights in the

inventories

t

time

Mitchell announced, how¬
1,300,000 unemployed
persons
exhausted
their
unem¬

double the number in

de-"

^

:

continuance

and

Labor Sec¬

was more

'

millionth

the

that

finding work. This

sumes

w

retary
ever,

con¬

immediate

almost

on

is

on

issues must always

in ^ofoffrn
alent attitudes> such as giving
(b) But the forecasting element,
that
weight to short-term external and in business is regarded as un*
J that the former as~ internal factors. My investment- avoidable and kept secondary, as
Iong-

i' I;
in the automotive industry the timing, goals,
with emphasis
past week production of the six-"

than

less

had

delivery.

such

below

14%

?

order backlogs and more extended '

ended

for

buyers

con¬

soeci.Ltionil

livery, the trend is toward bigger

the compar¬

able period last year by the small¬
est weekly percentage—23%—so

Nov.

steel

issues

or

to

diHprpnti^ini

by "The Iron Age" indicate
along
with
they are placing orders for more
capital con¬
tonnage than they have in months.
serve tio n,
Although some products can still ;

5% below the previous week

were

and

the

all

vidual

invalidity of conceiving the
ket-as-a-whole, and of other

Objectives

tacted

recent

.on

unemployment

ance

Almost

also

were

week

ual

summary

(a)

freight carloadings was not only
larger than in the previous week,

and

maximum
for inflation-minded experts. But

of our phi¬
losophy in certain important investment areas—for
the most-part
representing a minority ricznpoint—
as it has been
running through this column. (It con¬
stitutes a partial
recapitulation of a lecture series
given by the writer.)

output
the Usual because bL4b&^trprig up¬
nation-at-large in the period end¬ surge in UemaridT "^
^ r ^ ^r
ed on Wednesday of last week
I With some exceptions,
great¬

nervous

servative-minded;
decisions

a

pro¬

equities

securities.

equities for the

INVESTING REFRESHER
We beg to present herein

industrial

continued to advance and

emotional

Propor¬
from low proportion of

tions vary

By A. WILFRED MAY

Index

J)
Total

for

minimum

-

between

fixed^interest

Production

Auto

maximum

portions

•

Commodity Price Index

•

•

•

Trade

Retail

Secondarily,

discipline, keep within predeter¬

Production

Electric

v(b)

5

Winnipeg

page

118

C

The Commercial and Financial Chronicle

(2458)

Signs of an. Upturn—For more

,»

'S3

Business in 19E5 May Top

,

By ROY L. REIERSON

Economist,

and

Vice-President

After remaining generally stable
for the past six months, business

term credit to remain

is

authorities

of

bark

upon

Economic

ac¬

credit

tivity

the

in

at

time

present
appears
at

its

to

a

of

the

year.

If

trend

contin¬

of

this

goods

services
1955

from

in

record

of

year

4953.
of

tight
COndi-

^

•'■■■»

#

Roy L. Reierson

and

1952

the

the

$4

downdrift in busi¬
spending on plant and equip¬
ment
in
1954; and
(5) weaker
billion;

(4)

a

markets for automobiles and some

em¬

signs of rising economic

of unusual

peak

a

mands

repetition

Credit

of

rate

ness

are

business

rebound from the steel

the

A

annual

other

durable goods.

consumer

Current conditions

suggest that

the force of these

sided.

drags has sub¬
orders have re¬

Defense

the

exercise

strike
of

of

automobile

new

two

years

eral

nomic controls. In retrospect, it is

of* industrial

index

Reserve

production, adjusted for seasonal
variation, stood at 125% of the

for

that

of

prevailed

1953,

and

confidence

short-:

in

the

future.

points below October,

seven

1953.
ac¬

tivity seems to be fairly wide¬
spread, especially in the durable

the prospects are that the rate will
months.

Also

in

crease

in

the coming

significant is the in¬
orders

new

for

durable

goods,
■

accompanied .by the first
rise in the backlog of unfilled or¬

*

Adams

&

Members New York Stock

and American Stock

•:

,

.

ders in about two years.

Peck

has

■.

basis

the

on

which

business

RAILROAD SECURITIES
Bonds

,

broad

Preferred

Common

of

both

are

develop¬
recent

likely to be
sustained, or whether

and

it may be short-lived and followed

by

a

the

New York

5f N. Y.

■

Private wires to Hartford and

35

near

-

In

rule.

since World War I,
•only in 1931 has a business upturn,
once

years

started; failed to make sub¬

stantial progress.

The record also

shows

Teletype NY 1-724

have

that

Drevious

Philadelphia

period

there

business

which

been

declines

four

in

the

generally

appear

to
that of 1953-54,
namely 1923-24, 1927-28, 1937-38
and 1948-49;,we may exclude from

comparable

consideration here the sharp post¬
correction

war

Act

of

due to

by

before

months

passed.

was

;

t..e

v

,

estimate's

The latest government

project 1.3 million starts for 1955.
and this appears

to be a resonable
The outlook is sup¬

ation.

expec

of rentals;

vacancies

normal in
to

many

and appear
high-priced

in

accommodations.

substandard

or

still sub¬

are

areas

be concentrated

Also, personal income is likely to
rise further, credit is adequately

ment

Births

high, the mo. e
suburbs continues

are

to .the
and

many

have

veterans

been

Also, the inventory reduction was '
eased by the continued high levels
of consumer spending.,
/

The
material in¬
ventories appears to have been
largely
completed
earlier
this
year.
Wholesalers and retailers
liquidation

likewise

down

ple

immediately
In

after

the four

of

character

tion to date presages

that

the

business

15 and 27 months to

the

ately

activity

of the

level

its continua¬

months, while others
feel that most stocks have already
tion for

some

to

reduced

been
and

perhaps

levels

in

desirable levels,

instances.

some

On bal¬

the signs seem to favor the
view, and the prospects are

ance,

inventory liquidation

side.

preceding

Conseauently,
recovery

is

the

unless

In

fact,

the latest

construction
the year ahead.
private

Plant

and

more

rise in

for

outlays

Equipment
business

recent
been

govern¬

7%

—

One of

encouraging features of

to sub¬

Barring another inflationary

large-scale,

however,

scare,,

the

adjustment

relatively small de¬

Consumer Expenditures

54

adjustment

tained

Philadelphia has just released

ported as it was by social security
payments and unemployment ben¬

efits, declined only moderately in
1.954,

expect to reduce their capital ex¬

income

and

-

upward
in

as

a

after
taxes
result of the

income taxes

Consumer

spending

1.955

in

not be

penditures by 20%, with substan¬

in

hours worked, and in

average

stability, of outlays indicated

plant and equipment has yielded
favorable estimate, name'y

a more
a

total

with

reduction

the

of

5%

in

1955,

stability in
1956. This is hardly a pessimistic
appraisal, especially since it im¬
plies no significant decrease be¬
low the, rate of spending in the

final

prospect of

quarter of 1954.

ness

sentiment

With busi-

improving,

outlook for capital outlays

the

Business Inventories
business

has

been

hourly wage rates may
expected
to
contribute
to

be

higher personal incomes. At the
same time, there is some evidence
that

consumers

may

willing to spend

a

have become

slightly larger

share of their incomes.

Also, grow¬

ing population should -mean great¬
er

spending on nondurable pgoods,
the
market. for
durable

while

goods

may

be sustained by active

residential building, the new auto¬

mobile models and energetic sales
efforts.

is less

likely to deteriorate.

average

—

The

re¬

inventories,

under

way

for

tion in 1955 have been very much
in

the

since

news

in recent weeks, and

consumer

buying

of

be¬

recover

downturn.

R. H. Johnson &.Co
ESTABLISHED

future.

ERNST & CO.
Members
and

New

York

other

Stock

Exchange

American

Stock

Exchange

leading Security and Commodity Exchanges

in

1927

is

Broadway, New York 5, N. Y.

64

So. LaSalle St.,

Private




Chicago 4, 111.

V/ires to Los Angeles and Chicago

WALL STREET

NEW YORK

Spending and

Activity

The

high levels of residential
building and commercial construc¬
tion in

231

INVESTMENT SECURITIES

to

economy.

Business

Investment

120

desirable

closely t'~e prospects
of the important sectors

more

some
cur

it

Hence

review

of

historical
analogy
reliable guide to the

1954

This strength of

capital outlays during
lower

Philadelphia

Boston

helped moderate the

economic decline.

business

a

period of

activity

augurs

well for the year ahead; total con¬

Troy

The

prospects for automobile produc¬
—

immedi¬

the

•

•

The Automobile Market

to reach its mi^-1953

a

is

likely to expand, possibly by 3%
or so.
.Increases in employment,

peak of 137 before the end of 1955.

Obviously,

the

at

beginning of the year.

which shows that manu¬

facturing corporations in that area

even

durable goods
declined from the very high level
that prevailed in the first half of
1953, after government restrictions
upon
their output had been" re¬
moved.
Personal
income,
sup¬

reduction

survey

aggregate,

buying' of

though

inched

The Federal Reserve Bank

main¬

well

was

the

.in

penditures.

equipment ex¬
As-to 1955, opinions

irdex of industrial production may

may

re¬

Consumer spending in the 1953-

cline in plant and

present
excentionally s'ow, the

be expected

these

below

even

com¬

took

peak

the

liquida¬

ahead.

ment estimate shows a

a

believe,

tion is not indicated in the months

despite some decline in industrial
construction, an even higher rec¬
ord is likely to be established in

differ.

inventory

inconclusive.

still

observers

modest

_In addition, commercial build¬
ing and most other types of con¬
struction are at peak levels, and

of

regarding
is

conditions

satis¬

as

:

-

establishing separate

are

has

-

Evidence

have some
their stocks

viewed

levels

to

factory.

Some

to

worked

ago

sumption of inventory accumula¬

households.

the

raw

single and older peo¬

more

1955.

of

appear

months

for

peak,

durable

of

stocks

goods in process or finished.

der

Finally, although family formatiohas declined substantially from it

months has taken

manufacturers'

latter

exercised their rights un¬
the VA. financing ; program

decline in
place in

Most of the inventory
recent

parable periods of business adjust¬

to

2Wo due Nov. 1987 & 1988

pursued

prevented

liquidation of inventories
conspicuously
absent.1

forced

not yet

which

.

War II.

tween

Sept. 1981

have

mid-1953

has

ported by the generally firm trend

duction- in

World

ment,

Obligation Bonds

2s due

provided

several

dent

production

General

appears

the
Hi using Act of 1954, but signs of
greater activity were already evi¬

1920-21, the
Great Depression and the drop in

City of Los Angeles, Calif.

has been rela¬

year,

credit policies

easy

tial

renewed decline in the

ception rather than the

Telephone REctor 2-4949

The
since

total

In part

1954.

bv
public, utilities.
The .latest
Some comfort may be
gained
nationwide survey
from the historical record, which McGraw-Hill
shows "false starts" to be the ex-' of business spending intentions on

Unlisted Investment Stocks
120 Broadway

in

is

upturn

future.
and

stimulus

will

and

1.2 million in

least, this vigor

the

t^e

origin and modest in size.
The
important question is whether the

DEALERS IN

*

at

weekly

and

Recovery—It is ad¬
precarious to
forecast

mittedly

,

ments

Leased Line

increased

hours of work have advanced.

trends

Guaranteed

Emplov-

Patterns of

'

months

recent

about

'

ment

Exchange

Exchange

in

strong,

the expansion of

However,

be well maintained

M

active in 1954: starts have spurted

available and financing terms are

in

funds

Construction Activity—Residen¬

liberal.

average, only one point
the preceding month, and

however,

investment

move

may

1947-49

the first; turn was so moderate. Presumably. goods industries, a strategic sector
is not in. the consequences might have been of the economy, and there are. in¬
prospect for the foreseeable fu¬ more serious had it not been for* dications that business is once
ture. Although the decline in bond the prompt
reversal in Federal. more moving upward.
A striking
yields that prevailed in early 1954 Reserve credit policy, the cushion-, demonstration is the steady rise
came
to a halt later in the year ing effects of tax cuts and unem¬ in the rate of steel operations from
and some firming would not be ployment benefits, the strength in 63% of capacity in early Septem¬
unexpected, the present outlook is construction and sustained public ber to 80% by mid-November, and
tions

half

production

and

ago,

year

above

of eco¬

surprising that the 1953-54 down¬

,

upturn customary at this time of
In October, 1954, the Fed¬

year.

a

tial building has been increasingly

cently increased, and the early in¬

de-.

which had accumulated in

preceding

ter

nominal

a

(3) the liq¬

business inventories at

estimated

an

strength, reflecting at least in part

might

well match the

-■»

uidation of

the first since midr
1953, when business began to drop
off.
That decline, however, was
activity

the output
and

ues,

in fiscal 1953 to

,

Recent

a

tively small, amounting to about
6% or so, and has been orderly.

spiral of credit contraction, so that

prices rise, or credit undergoes •models this year has stimulated
: production.
The improvement so
expansion. t .
far has not been spectacular; to
Current Business Improvement • some extent it reflects the seasonal
rapid

than

balance

than

more

upward
even
before
inventory
liquidation is wholly completed. .

reduction

a

substantial, troduction

becomes

to continue

expected

dustrial

(2)

billion

general

of

policy

is

upward, while the declining trend
of business spending on plant and
equipment gives promise of level-,
ing off. Inventories appear in bet¬

stringency in the money market |
and
have
helped forestall any

amount in fiscal 1954;

available at

likely to

struction

past experience indicates that in¬

orders;

Restraint unless the upturn

business

hold in 1953.
These included (1) a reduction by
more than $10 billion annually in

or

be

highest

level

not

a

drags

number of

a

which began to take

The monetary

relatively low cost.
are

effects of

has felt

economy

in the
Treasury's cash deficit from $5.2

studying present and prospective economic
trends, concludes business activity in 1955 may equal or
exceed the record year 1953. Foresees an overall increase of
3% in the gross national product and some higher business
and consumer spending. Looks for some hardening of interest
rates, along with a steady demand for capital and a larger
supply of funds seeking investment. Says, although economic
visibility is limited, precedents favor business recovery.

showing fairly convincing signs
moving upward once again.

the

year,

defense

Dr. Reiei-son after

I -

the

a

Thursday, December 16, 1954

.

spending, together with a
substantial realignment of defense

City

Bankers Trust Company, New York

than

..

Scranton

Allentown

new

Volume 180

Number 5386

.

.

Financial Chronicle

The Commercial and

.

busi¬ further in the aggregate, but fi¬
activity for 1955, at least as nancing by the utilities' sector will
far as can be gauged at the pres¬ probably be well maintained. State
somewhat higher level of

passenger cars generally has some

a

influence

ness

sector

total

output and
the outlook for this

upon

employment,
of

the

deserves

economy

If business continues to

ent time.

mention. Some observers appraise
the domestic market for
passenger

total

in" 1955
as
only nominally
(2-3%) better than in 1954, while

and may even increase

others believe it holds promise of

Economic forces may thus

cars

increase by

an

There

is

much

as

little

10%.

as

doubt

that

the

changes made in the

sustained

is still

reaction to the
favorable

new

factor

Another

cars.

is

the

prospect

that personal income may increase
in 1955. Selling no doubt will be
•aggressive, possibly assisted by
,

further

»some,

credit terms.

sumer
«

-

loosening

On

v..

the other hand,

introduction

probably

of

that

con™
;

.

the

models

means

of

J

.

this

year

of the

some

sales for 1955 may be included in
1954 results;'"Also, there is uncer-,
tamty as to the outlook for used
car prices, an
important factor in
the new car market. Finally, since

.

;practically

-rlady

all; makers

m a

Changes,

d

have

al~

substantial model

e

question

some

be

may

raised

Concerning market. pros¬
pects in the latter part of 1955. 1

-

somewhat.
be op¬

However,

any

increases

are likely to be of mod¬
proportions.

favorable, but the compari¬

with

son

factory

1954

be less

may

satisr

the latter part of the

in

automobile

good

a

year

substantially better than
1954, and that the conservative
expectation of an. increase by not

much

than 2 to 3%

more

may

prove

realistic

a

Government

While

and

state

local

though

the

proposed new highway program is
not

likely to be

an

important fac¬

tor until after next year.

While

sustained

high

for investment funds
for

are

1955, the upward

;

Management

considerations

relevant

in

are

the

—

Economic

presumably also

determination

of

Treasury debt management policy.
The encouragement of investment

demands
indicated

pressures on

bond yields are likely to be damened

Debt

by the continued large flow
seeking
investment.

spending is

of the key eco¬
objectives of the Admin¬

nomic

istration,

as

one

evidenced by the flex¬

ible depreciation provisions of the
1954 Revenue Code, the more lib¬

security,

it

with

choice

the

would

confronted

be

either of making

a
small
offering, which would
complicate the debt structure with¬

out

achieving much in the way
lengthening maturities, or of
pricing a large offering so attrac¬
of

tively as to persuade institutional
investors

shift

to

from

corporate

and municipal securities and mort¬

debt into Treasury obliga¬
tions, with the risk of unsettling
gage

the bond market and perhaps the

ment. Tof

rise

some

the

in

volume

of

short-term credit may be expected
in .1955. *

The .end

in business

inventory

of.

some

improvement

activity; should relieve

funds

These funds have contributed im¬

portantly to the steady tone of the

or

expected
larger in 1955.
are

be

to

as

large
.

,

•

Credit Policy—Interest rates, in
addition to being influenced, by

the demand-supply situation
in"
on bank
the market place, are constantly^
business, although! any;
subject to the actions of the credit
large increase in such loans ap- and debt
management authorities.
'>ears
doubtful in the absence of i
Under ,the flexible credit policy
renewed large inventory accumu¬
followed by the Federal Reserve,
lation.
Consumer credit,
which the
-authorities may be presumed
leveled off in 1954, may reach a
to be ready
to shift from their
new peak in
1955, but the rise is
current, policy of "active ease" into
likely to be relatively1 modest.'4 a
policy of neutrality and then

eral

Against this background, it is dif¬
ficult

to

visualize

the

Treasury

competing

energetically

other

of

users

with
invest¬

long-term

ment funds unless

loans

investment •spending

,

Long-term

investment

f

u n

d s: into

may

With residential build¬

s'ruction.

ing strong, the growth
standing mortgage debt
-nav

well

equal

or

borrowings

business

are

out¬
1955
'surnass the

1954.

Net long-

corporate
decline

of

likely

in
in

to

policy

a

of

credit

stability. However-, conditions
der

which

such

measures

"un¬

would

suggest themselves do not prevail
at

this

time

nor

are

they

likely

convinced that

is reaching
proportions,that might injure the
health

of

the

economy;

,.

The

The
nomic

conditions

of

eco-,

indicates

that

the

pressures of inventory liqui¬
dation and declining defense ex¬

penditures, which acted as a drag
upon the economy through most
of

1954, have

begun

dwindle.

to

In addition, business is being stim¬

large refunding of December

ma¬

creased

turities

clue

vigorous trend of construction;

probably, provides

to its present

"consideration

Another

speaks

a

w

h i

for ..continued, caution

c

h

by

the Treasury in managing the debt
is

that the major

vestment
pear

savings and in¬

institutions

interested

substantial

ulated by the resumption of large-

in

do

not

ap¬

acquiring

amounts

of

obligations

any

long-term

long

develop in the near future. At
the
authorities
would
probably be reluctant to jeopard¬

Treasury

home mortgages and

ize

are

defense

:

production,

in¬

and

the

orders

••

Year — The
outlook for 1955 appears relatively

so

as

other invest¬

available

at

better

for

Prospects

the gross

is

a

of

This

the

total

services,

output

may

by about 3% or so over

billion
would

to,

up

of

and

goods

$357

whicli

national product,

measure

crease

the

As a reasonable guess,

favorable.

yields. Should the Treasury none¬

ments

automobile

thinking.

present,

expansion in production or

review

scale

to

an

1955

for

preceding

Treasury's failure to include a
long-term bond issue in the recent

restraint

if such action is deemed necessary
for the maintenance of economic

Conclusions

investment.

the downward pressures
to

■'

..

foreign

estimated

for

bring output

conceivably

or

Continued,

on

in

in¬
the

1954.
1955

slightly
page

22

1954

over

one.

This announcement is neither

Outlays

money
further in¬

a

even

contributing to uncertainty in the
markets.

theless desire to issue.a long-term

and

but

1953 in the aggregate,

+erm

be

1955,

reducing
or
by

credit

bond market in the current year,

over

will

not

in

by

of

caritly

,rTge increase of

but

expected to show

crease

either

availability

Neither
financing terms of .the new housing market as well.
alternative appears desirable un¬
Housing Act and the current pro¬
der present conditions.
posals
for
a
greatly expanded
1
/
% \
;
1
.
highway program and encourage-

Consequently, present pros¬
pects suggest that 1955 as a whole

year.

are

new

the

of

be expected to find continu¬
On balance, the new car market ing outlets in the high and rising
evel of private and public con¬
•in the first half of 1955 is
likely
to be

and local demands for

employment

7

Credit—Short-term
credit requirements in 1954 do not
appear to have increased signifir

Demands for

liquidation and

earlier

ahead

months

the

in

hardening.

erate

it

that

erating to keep interest rates gen¬
erally firm, and perhaps lead to

improve the sales outlook,
too early to obtain
reliable indications of the public's
but

are

credit demands will be well

some

model

prospects

the

improve,

1955

many

,

(2459)

-

an

The

•

:

offer to sell nor a solicitation of an offer to buy any

of these Bonds,

offer is made only by the Prospectus,

.

•

govern¬

ments substantially increased t'mir
spent

ing in 1954. the growth
offset

than

more

cutbacks

disbursements.

trast,

by

Federal

in

In

the

was

si-able

$30,000,000

Government

1955,

by

con¬

the government sector as a

/whole

is likely

addition

provi-'e

to

total

to

net

a

demands,

local outlays are sc

state and

Kingdom of Belgium

since
ed-

uled to continue upward while the

big reductions in

ing

appear

Federal

Federal

behind

External Loan Bonds

Government
about the

tures—Since

spend¬

us.

Expendi¬
of

middle

$5,000,000 Three Year 3Vs% Bonds due December 1,1957

1953, the Administration has made
substantial
progress
in
its endeav,

rs

to

$5,000,000 Four Year 3*A% Bonds due December 1,1958

reduce Federal spend¬

ing, and these efforts are persist¬

$5,000,000 Five Year 35/s% Bonds due December 1, 1959

ing. The rate of spending has al¬
ready been reduced to the level
indicated by the official budget

$15,000,000 Ten Year Sinking Fund 4% Bonds due

December 1,1964

estimates for the fiscal year 1955,

the

and

year's total expenditures

somewhat below the fore¬
However,
the pattern of

may run

cast.

Bonds dated December 1,

Interest

1954

payable June 1 and December 1 in New

York City

spending by the Federal Govern¬
ment in the 12 months aheau will
be

importantly

affected

by

the

PRICES

budget plans for fiscal 1956, which
will
not
be made
public until
January.

'•

Examination

of

Government

Three Year, Four Year

spending programs may well show
some

be
of

achieved,

but

the magnitude

'

plished
least

Ten Year

further decreases that could

arc

until

not

there

and Five Year Bonds 100% and Accrued

Interest

Sinking Fund Bonds 99'A% and Accrued Interest

additional cuts
already accomin prospect, at
is

evidence

of

a

improvement in the inter-'
national situation.
With Treasury
basic

receipts expected to decline by a
larger amount than

Copies of the, Prospectus may be obtained from only such of the undersigned as may legally
these Bonds
in
compliance
the securities laws
the respective States,
with

offer

exnenditures,

the cash deficit in fiscal 1955 con¬

sequently may increase by $1 to $2
billion, in contrast to the $5 billion
decrease in the

preceding

Sta+e and Local

Spending—Out¬

state and local govern¬
ments, at the same time, are con¬
tinuing their steady upward trend
of the postwar years.
This trend
reflects higher costs of govern¬
ment and rising expenditures for
lays

MORGAN STANLEY &

SMITH, BARNEY & CO.

CO.

year.

THE FIRST BOSTON CORPORATION

WHITE, WELD & CO.

KVHN, LOEB & CO.

by

public facilities of all kinds, and
shows no signs of abating.
State
and local government spending is

'likely to register another increase
of $2 to $2% billion in 1955.
Outlook

for

Interest

Rates

All these considerations




.

suggest

BLYTH & CO.,

INC.

THE DOMINION SECURITIES CORPORATION

HARRIMAN RIPLEY & CO.

KIDDER, PEABODY & CO,

GOLDMAN, SACHS & CO.
LAZARD FRERES & CO.

Incorporated.

MERRILL LYNCH, PIERCE, FENNER & BEANE
STONE &
December

WEBSTER SECURITIES CORPORATION

SALOMON BROS. & HUTZLER

UNION SECURITIES CORPORATION

15,

a-

8

Chronicle

The Commercial and Financial

(2460)

Colorado

Fuel

Corp.

Iron

&

Analysis

—

—

Allen

give to the deserving, but what
will I give in order that I, my¬

send interested parties

liam

First Boston Corporation,

New York 5,

S

Original

Stock

State

and

and

Issue

Riverside

Ruberoid

in current issue of "Perspective"—
Wall Street, New York 5, N. Y.

How to Put "Life" in Your Stock Portfolio—Ira U.

Investment Opportunities in

pany,

;

&

Co.,
a

Lerner & Co., 10 Post Office

—

Tabulation

1

Wall

Review

—

Chips—The

New

York

Bank

a

worship? How many church mem¬
bers, holding jobs in factories,
have in mind the buyer who is
to use the product they are mak¬
ing? I forecast that the time is
coming when both employer and
employee will pray for the con¬
sumers and customers. If this ap-

Inc., 26 Broadway, New York 4, N. Y.
New York 5, N. Y.

take

on

new

methods of raising money

In

churches, which combines the religions with the business ap¬
Says fundamentally business prosperity is dependent
on our
spiritual growth, and contends same principle applies

who

Stocks—

business

to

concerns

fact, the Church Canvasser
with this new

calls upon us

be blazing the way
spiritual Renaissance.
According to cycle theory, his¬
tory must repeat itself—for good

message may

for

and to wage earners.

poration.

a

new

well

Over-the-Counter Index—Folder

,

Positive

Investment

Policy

1955—Study—Dean Witter
Co., 45 Montgomery Street, San Francisco 6, Calif.

Churches

made

revolutionary
suggestion for
raising money,

a

a

b

&

religious and
u

i

s

e

n

appeal.

s

s

His

wordsthen
Price

Trends

in

Rails—Report—Francis I. du Pont & Co.,

1

fell

Wall Street, New York 5, N. Y.

s

fer Department,

1954"—Brochure surveying growth of television
impact on the American Public — Cunningham &
Walsh Inc., 260 Madison Avenue, New York 16, N. Y.
its

American

Waiston & Co.,
Enka—Report—waiston & co., 120 Jtsrn
Bipadway, New
lable are reports
Chester TeleAlso available are reports on Rpc
Phone and Suburban Propane Gas Corp.

York 5, N. Y.

& Co., 15 Broad

He

Street, New York 5, N. Y.

w

D

Corporation—Report-^Thomson & McKinnon,
Stret, New York 5, N. Y. Also available is a survey

P. McDermott

Baltimore

Telegraph Company—Analysis—Peter
& Co., 44 Wall Street, New York 5, N. Y.

Telephone

&

&

Ohio Railroad

Company—Circular (No. C-16)—

Vilas & Hickey, 49 Wall Street, New York 5, N. Y.

Chesapeake

& ^Ohio

Railway

New York, Chicago & St.
182)—Smith, Barney .& Co.,
Wall Street, New York 5, N. Y.
-

Louis Railroad—Bulletin
14

vs.

(No.

had

ceded

t

with

pre-

two

Business."
vwiirxrc

will turn to page seven

"Time

1954,

Magazine" for Oct.

you

markable
Church
I

nected

can

read

most

a

advertisement

11,
re-

of

a

Money-Raising Organizadon't

with

know
this

anyone

con-

Hence,
this column
is
not to
help its
busihess in any way. The advertisement, however, shows that
a spirtual revolution is
simmering,
Every reader must know of the
group.

universal habit of the members of
certain churches to give one-tenth

Member

Over-the-Counter

„

.

.

rVl„

rtl„.

and

social standing.

help make.
Only such
J
Raising us from Communism.

New Appeals for Money
This

attitude

marvelous

is

changing in
It

manner.

makes

hopeful for the

years |ihead befundamentally,
business
prosperity is dependent on our
spiritual
growth.
The
modern

BOUGHT

longer begs.
merely says: "Statistics
family, your busiand your community will

L. A. DARLING CO.

therein
out."
upon

STOCK

COMMON

in accordance with what

and others .give.

This

SOLD

canvasser no

now

prosper

.

—

QUOTED

show that your
ness,

save

a

cause,

He

ean

me

I

am

asking

Now

you to subscribe to an enduring
investment. The more you invest

Uo.r„

Feelings Have Changed Since
If you

.

personal calls. Then, when
only to our Church
solicited, they give as little as Charities, but also to our cuspossible
and
still
retain
their tomers and the users of what we

you

Ummtra £ecurtitcs
(Co., %U.

Specialists in

This requires organized campaigns
and

them church

published by the Macmillan
Company entitled "Enduring Investments"
and
"Religion
and

tion.
American

his

books

of

of the outlook for 1955 of Fixed Income Securities.

»

Roger w. Bab son

as

e

suggjestions
"sacrilegious."

Company—Analysis—Newburger, Loeb

American Motors
11 Wall

T h

.

denominations

"Videotown

Locomotive

1

called

Statistics of the World—American Telephone and
Telegraph Company, 195 Broadway, New York 7, N. Y.

American

barren

on
l

They try to get by with ferent cycles always in operation.
little money as possible It is the dominant one which will
to the Lord's work. Too many will affect us. Perhaps that will begin
not «ive
.until personally asked. with a new attitude toward glvstingy.
giving

great church

The Chase National Bank, 11 Board Street,

15, N. Y.

Telephone

and

o

leaders of the

Stock Transfer and Registrar Services—Booklet—Stock Trans¬
New York

for evil things.

as

Furthermore, there are many dif-

^

for

history,
be due.

past

upon

another such may soon

for

peal.

Bulletin, Laird, Bissell & Meeds, 120 Broadway, New York
5, N. Y. Also available is an analysis of National Steel Cor¬

(1$00 through 1600).

based

And

Mr. Babson comments

would

place equal only to the great

Renaissance

By ROGER W. BABSON

happen!

revolution

economic

-An

could

what

think

jobs,

Church Money Raising

H.

showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y.
:. ! v

many

peal of these modern Fund Raisers
could
extend
to
our
everyday

Nikko Securities Co.,

City

or

business

Street,

and
about their
manufac¬
merchants make their
part of their spiritual
pray

how

"

Ltd., 4, 1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.

Blue

But

insurance

some

salesmen

turers

Co.,

some

Also

week.

N. Y.

60 Beaver Street, New York 4, N. Y.
Also
on Union Oil Co. of California.
—

/

work.

14,

—

But

apply

to

principles to their own

believe

other

&

them

to

physicians and
other professional men have this
desire to give every day of the

N. Y.

120 Broadway,

spiritual growth and not

occur

same

1

memorandum

Japanese Business Reports

Neglected

—

l^:

business?

Japan—Circular—Yamaichi Secu-

Investment and Speculative Stock Groups

available is

ihe

Co.,

Unilever, N. V.—Analysis—New York Hanseatic Corporation,

v

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

Analysis

it

does

Socony-Vacuum—Reprints of talk by B. Brewster Jennings,
President, Socony-Vacuum Oil Company, Inc., before the Se¬
curity Analysts of San Francisco—Socony-Vacuum Oil Corn-

*

Cobleigh—

Spring Street, Los Angeles

Morgan & Co., 634 South
Calif.—$1.00 per copy.

—

Company—Analysis—Cohu

New York 5,

New York 7, N. Y.

Calvin Bullock, 1

,

New York 6,

^

Tax

Glass Industry—Analysis

Cement

own

just to help a needy cause.

Royal McBee—Bulletin—J. R. Williston & Co., 115 Broadway,

Booklet—Registrar and Transfer Company, 50

Church Street,

their

Square, Boston 9, Mass.

Stock Di¬

Transfer

Baker &

v

who

personal gifts,

they have ever given
They give principally for

before.

Cable Corp.—Analysis—Amott,

Cainpaj^;

than

more

Public Service of New Hampshire—Analysis—Ira Haupt & Co.,
111 Broadway, New York 6, N. Y.

West 44th Street, New York

securities paying dividends
for more than
15 years—Draper Dobie and Company, 25
Adelaide Street, West, Toronto, Ont., Canada.

Rates—Free

Wall Street,

N. Y.

&

These-"New

reasons

--start off with large

Inc., 150 Broadway, New York 38, N. Y.

Canadian Mining Securities—List of

Federal

Wire

Plastic

treal, Que., Canada—New York City office, 64 Wall Street.

gest"—Nomura Securities Co., Ltd., 1-lchome, NihonbashiTori, Chuo-ku, Tokyo, Japan.

greater

%y / successful busanessoicn,

HXL'Broadway^Ne**-'York fy Wi Y.

ampenfabrieken)—Analysis—Kippen & Company, Inc., 607
St. James Street, West, Montreal, Que., Canada.

Canadian Letter—Fortnightly review of the Canadian Securi¬

Chemical Fertilizer Industry—Analysis in "Monthly

far

.

Philips Incandescent Lamp Works, Ltd. (N. V. Philips Gloeil-

report—Bank of Montreal, Mon¬

■

I, however, am interested in this
-Revolution. in.Fund Raising for a

'

'

i

Applies to* Your

Business and Jobs

~ > -

memoraiukma—«Aetnar Securities

Pennsylvania Railroad—Bulletin—Baehe &

7, D. C.

36, N. Y.

.

•Look" Giving -

Glossary—Literature—Atomic Development
Company, 1033 Thirtieth Street, N. W., Washing¬

ties Market—Newling & Co., 21

Wil¬

Same Principle

Corporation,. Ill Broadway,/New Yorfc &7 N. Y.

why atomic

and

Canadian Economy—Monthly

Webber,

Street, New York 5, N. Y.

Kewanee Oil Company—Card

York, 4 Irving Place, New York 3, N. Y.
Securities

live?" The giver is
understand that the
more
he gives in proportion to
his income, the better off spiritu¬
ally he himself will be.
self, may
taught to

York 4, N. Y.

berg, Towbin Co., 61 Broadway, New York 6, N. Y.

fuel appears* attractive as at "future source of energy—Public
Information Office, Consolidated Edison Company of New

ton

De Witt

—

High Voltage Engineering Corp.—Memorandum—C. E. Unter-

— *

Atomic Map

Bulletin

Harley Patents, Inc.—Bulletin—E. E. Smith Company, 15

wiU he pleased
the* following literatures

Atomic Energy—Why?—Booklet describing reasons

—

Jackson & Curtis, 25 Broad Street, New

understood that the firms mentioned
to

Laboratories, Inc.

Organization, 100 Broadway, New York 5, N. Y.

Electronics Corporation of America—Analysis—Paine,

Recommendations & Literature
It is

Mont

Du

B.

Conklin

16,1954

much will I

reaction is not "How

H. E. Herrman &

Cohen, 52 Wall Street, New York 5. N. Y.

Dealer-Broker Investment

Thursday, December

...

the

more

concept
"how
much
new

you

will

30^

the

in Cash and

25% in Stock

get

is not based

M0RELAND & CO.

church

needs," but upon the fact that you
and I need to give more in order
to offset our sins and develop
spiritual power. It links up personal prayer with a giving-campaign and makes giving a If orm of
prayer, meditation, and worship.
The Catholic Church has long
preached this; but most Protestant
Churches are just awakening. The

Ex-Dividend

Members
Midwest Stock Exchange
Detroit

Stock

Exchange

1051 Penobscot Building
DETROIT 26, MICH.
Branch

Office—Bay

City/ Mich,

•

DEPENDABLE MARKETS

GABRIEL
■

SECURITIES

N.A.S.D

3420 BERGENLiNE AVENUE

UNION CITY, NEW

"Broker and Dealer

JERSEY

UNion 4-7404

Securities

Material and Consultation

*

on

ORIGINATORS

Japanese Stocks and Bonds

Troster, Singer & Co.
HA

2-

2400

Members:

74

N.

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.




without
NY

AND

obligation

"

1-

376

61

CORPORATE

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

BOwIing

Green

9-0187

Bead Office Tokyo

UNDERWRITERS 1

DEMPSEY-TEGELER & CO.

PUBLIC

AND

FINANCING

Volume 180

Number 5386

...

It

If

a

General Manager, Vitro Uranium Company

of

lies in the
a

and the

its abandonment for
like

about

infant

an

talk

to

to

you

industry—uran¬

The stories of Mr. Steen, Mr.

ium.

Pick and Mr.

Lake

Cooper—of the Salt

stock

boom—of

thing

these

neutrons

other

before

have

report by

have been told

instead,

us,

look

a

this

at

me

Bureau"

"Why

and

(1)
need

he

as

up,

William

B.

Hall

will grow

I call

up.

infant industry

an

—

a

baby. Regardless of the publicity,
it is

just that, both in age and in
size. Although conception may be

said

to

years

ago

thesis at the

Ph.D.

Einstein's

to

50

back

date

University of Zurich and his now
famous

equation E
date

MC2, a more
1939, when

=

logical

be

the

may

and

Fermi

Dr.

late

others

proved this equation by splitting
the atom's nucleus. Gestation
set

be

The birth date might
Dec. 2, 1942, just 12

long.

was

at

years ago

that

already

squash

abandoned

an

From

domestic

a

stand¬

point the birth date might better
be called 1948.
It was then that
the

it

is

Continued

on

fissionable,

is,

Illinois Central Railroad

and

the

only

page

115

Company

Twenty-five Year 3lA% Sinking Fund Debentures

be¬

Dated January 1,

Due

1955

January 1, 1980

The issuance and sale of

these Debentures are subject to authorization
by the Interstate Commerce Commission.

pamphlet is somewhat confused.
To explain why, we will have to
take
at

Price 100% and accrued interest

brief look at the atom and

a

atomic energy.
Most of

us

know that the atom

is defined

as

the smallest particle

which

cannot

chemical
sists

of

divided

be

The

means.

a

consider

may be obtained in any state in which this announcement iy circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such state.

Offering Circular
such

con¬

nucleus which we may
like

be

to

which

electrons,

like

our

electrons

which

our

the

are

around

atom

The

by

sun,

rotating

HALSEY, STUART &. CO. INC.

planets. The
(for
all

have

newly formed Atomic Energy
on its pro¬

R. W. PRESSPRICH & CO.

BEAR, STEARNS & CO.

purposes)
no
weight,
negative electrical charge

practical
carry a

and

now

then

and

become

This

gives us
the millions of molecules, which

ical

combination.

make

up

the common substances

H. HENTZ L CO.

BALL, BURGE & KRAUS
GREGORY &, SON

NEW YORK HANSEATIC CORPORATION

WM. E. POLLOCK & CO., INC.
,

the number of

McM ASTER HUTCHINSON &. CO.

to encourage the explora¬
mining of uranium in
the continental United States.

F. S. SMITHERS & CO.

HIRSCH & CO.

INCORPORATED

SHEARSON, HAMMILL & CO.

practically weight¬

V *'

INCORPORATED

air, water, wood, and
even human beings.
The elements
are numbered in accordance with

less electrons in the atom.

AUCHINCLOSS, PARKER &. REDPATH

STROUD & COMPANY

SHIELDS & COMPANY

•'

around us;

Commission embarked

BROS. & HUTZLER

SALOMON

L. F. ROTHSCHILD &, CO.

dis¬

today, when a group of engaged or close-locked with the
led by Dr. electrons of other atoms in chem¬

in

court.

U-235, the isotope, is naturally

the

MC2.

have

we

FREEMAN &, COMPANY

CO.

STERN BROTHERS

MULLANEY,WELLS&COMPANY RODMAN & RENSHAW

and is the lightest

gram

tion

and

gen

has

one

Hydo-

electron and is No. 1,
known to man.

'

.

Normal uranium has 92 electrons,

years

turers of the

billion

$10

':

December 16, 1954

later, the baby and is the heaviest natural sub¬
has grown, but he is surely no stance.
giant. A high official of the
It was originally thought that
Atomic
Energy Commission re¬ in the nucleus of the atom
cently stated that, with the ex¬ there were
only protons, positive
penditures for prospecting and
charged particles which balanced
exploration added to those of pro¬ the
negative charged electrons,duction
and
construction,
we
and which gave weight
to the
now have at least a $100 million
atom.
However, as the science
uranium industry.
The duPont
developed, the relative weights of
Company alone had sales far ex¬ the different elements were found
ceeding that figure during every not to
vary in accordance with
month
in
1954.
The manufac¬
the electron and proton quantity,
Now, six

United States spent

and

This announcement is not

an

The

offer to sell

or a

solicitation of an offer to buy these securities.

offering is made only by the Prospectus.

$7,250,000

Eastern Utilities

Associates

another neutral particle car¬

1954 just on

during

rying weight was postulated as
capital expansion. At the end of
being part of the atom's nucleus.
the capital investment
Thus, helium, the next lightest
of the government in atomic en¬
element to hydrogen, has two elec¬

Collateral Trust Bonds, 3/8% Series

due 1979

fiscal 1954,

without allowance for de¬ trons and two protons (where hy¬
preciation amounted to $5.7 bil¬ drogen has one of each) but he¬
lion accumulated since the first
lium weighs approximately four
appropriation in 1940. This, of times as much as hydrogen. It is
course, includes the Savannah
assumed that helium, therefore,
H-Bomb plant, Hanford, Oak
has two additional particles called
Ridge and others.
Incidentally, neutrons in its nucleus, along with
the Atomic Energy Commission is
the two protons and the two en¬
not the spreading octopus it is
circling weightless electrons. Later
ergy

sometimes

In

believed.

March,

studies of the nucleus have devel¬

Dated December 1,

The Prospectus may

we

■of

the

that

in

with

line

them here.

Normal uranium is 238 times as

hydrogen/ There are 92
the uranium atom as
free enterprise" — much of the against the one in hydrogen, and
Commission work is carried out the rest of the weight is assumed

Energy Act of 1946—"To promote

we

do

have

infant

an

as

protons in

in

however, types
of uranium which exhibit all of
the
chemical
characteristics
of

before

the

normal
*An

address

by

Mr.

Hall

monthly meeting of the Utah Securities
Dealers Association, Salt Lake City, Utah,
December 2, 1954.




'

-

number of neu¬

weigh
These
U-235

BLAIR & CO.

SALOMON BROS. & HUTZLER

DICK &, MERLE-SMITH

INCORPORATED

AUCHINCLOSS, PARKER &
NEW

YORK HANSEATIC

REDPATH

BAXTER, WILLIAMS & CO.
WM. E. POLLOCK & CO., INC.

CORPORATION

There are,

trons.

Will the Industry Grow?
So

heavy

to be made up of a

by private industry contractors.

is circulatedfrom only such

lawfully offer these securities in such State.

HALSEY, STUART & CO. INC.

one

the Atomic

objectives of

need not consider

be obtained in any State in which this announcement

of the undersigned and other dealers as may

oped the fact that additional par¬
employees—rather few when we ticles are
present, such as mesons,
think in terms of today's Federal
positrons, and others.
However,
Bureaus.
It should be noted,
however,

Due December 1,1979

1954

P?^ice 102.91% and accrued interest

1954, there were only 6,258 A.E.C.

CLAYTON SECURITIES

much

are

is

an

as

normal uranium.

known

isotope

as

isotopes.

of

uranium.

MULLANEY, WELLS & COMPANY

THOMAS 6, COMPANY

uranium, but which do not

as

CORPORATION

December 10, 1954

de¬

*3

an
offer to sell or a solicitation of an offer to hay these securities,
offering is made only by the Offering Circular.

famous scientists,

Fermi, celebrated the first chainreaction under the Chicago Sta¬
dium

*

I believe that the writer of this

for
matter,

whether he

about the

Utah

our

uranium passe for war.

grows

uranium

worry

of

posits.

the

(2) The hydrogen bomb makes
the atom bomb and the need for

or,

that

with

needn't

of the

one

—

tiny amount is all we
peaceful energy; and

A
for

try

will get along

=

we

disappearance

$18,000,000

cause:

to
guess how he

accordance

equation, E

Uranium is radioactive—that

rso-called

a

uranium

much

too

health and his

environment,

Einstein

and

Its half

billion years, however,

so-called "Economic

and then concludes

baby, his

new

in

energy

lighter elements, but

Uranium In¬
dustry Faces a Serious Depres¬
sion." The gentleman who wrote
this picks up a few so-called facts
entitled

and retold. Let

We

split, will

and

9

constantly

n g

Will

such pamphlets that we re¬
these
days.
This one is

many

these

life is 4V2

weight loss has been converted to

space.

b ei

And how much?

grow?

crowds
—

have

(which

The

ceive

Moab

Some

atom,

are

emitted from its nucleus.

ura¬

This annouyicement is not

swarming
at

original

therefore, the
weight of the parts does not equal
the weight of
the whole.
The

fission)

as

the

purposes.

Research

the"

than

processes

military

I

nium

nucleus

happens.

find that uranium, when

terms of American industry.

he

this

particles

that these elements will have less

the

neutrons

split

required to tap
Points out real answer to the future use of uranium
possibility of its peaceful power production, and
growing demand for uranium, despite likelihood of

its energy.

would

could

we

strange

form

in

neutrons

<

weight) take off into

Characterizing the uranium industry as an infant that may
grow up to be a giant, Mr. Hall points out that $100 million
has already been invested in its exploitation. Explains compo¬

I

three less

(a phenomenon known

By W. B. HALL*

sition of the uranium atom,

has

nucleus.

Looking Ahead in Uranium

forecasts

(2461)

The Commercial and Financial Chronicle

10

The Commercial and

(2462)

planning and socialism because we
made large sums of money avail¬
able to governments to distribute
as
they saw fit.
There was no
other way, but it did not advance
those principles in which we of
the NAM believed, and those prin¬
ciples as I'learned them here.
The principles which I believe

Our Foreign Economic Policy
By CLARENCE B. RANDALL*
Chairman, Inland Steel Company

Chairman, President's Commission

Foreign Economic Policy

on

Author of the well known "Randall
nomic

the

Report"

foreign

on

eco¬

policy, after describing the composition and work of

Commission

he

am

going

foreign

to

talk

economic

the

policy

of

collective

the

about

seven

bargaining table

arrived

United States and the President's

conclusion.

program in that field.

as

to

give

I

going

am

and

to

rived

-of Oct. 21, 1954.

present time that the issue facing
our country is how to cause to be
released in the world those three

chose (he

I

offer

that fact

you

tonight, was not ar¬
hastily, thoughtlessly or

you

at

terminate.
But

with

try

refrain

President coined,

to

from

ing

to

anyone

with

agree
B

me.

t I shall

u

wr

try in the tra¬
dition

of

vig¬

It

there

is

that

let you have it

it

pretation of the President's pro¬
gram in this speech, not his. Our
distinguished and beloved Presi¬
So, this is
For 16

speak for himself.

interpretation.

my

subject and what¬

ideas I may have had at the

ever

beginning, I cannot recall. Those
that I have tonight are distilled
from that

experience. I could only
wish that my stalwart friends La¬
mar Fleming and Cola Parker and
Jesse

Tapp were here with me
tonight. They have such a host
friends

this

in

audience

from

the South and the West and Mid¬

dle West.

Together we struggled
with the problems of the Commis¬
sion

Foreign Economical Policy
two
great
citizens,
Fleming and Parker are tonight
in
Geneva,
representing
their
country in negotiations having to
do with the general agreement on
on

those

and

trade

and

whatever

tariffs

(GATT). And
may think of the

you

report of the Commission
me

now

—

I

offer

that

you

thought.
We were

17

the

seven

appointed by
from Congress

men

President,

and

10

seven

from,

both

from

and
and

from the public came

parties
part

every
we

In

we

and

of

from

came

labor.

months,

the

we

the

came

country,

management

course

four

of

met 26 full days which

is conscidered

"par" for the

course

for government commissions.
We

ciated

with

freedom

the

in

us

that

nations

—

went

•

'

to

Distorted

we

World

of

nations

many

Communism.

circumstances
the

Plan

the

end

of

arrived

at

our
a

deliberations,

program

by

a

The world

vote of

14 to 3, which I submit is
greater deal of unanimity than

can

be found

in this audience

on

subject I might suggest, not
excluding the 10 Commandments.
any

The
from

seven

the

members

appointed

public—including David

MacDonald and Clarence Randall,
from labor and management, who

had

sat

the

on

opposite sides of the

•Stenographic transcript of

an

address

fire and

shall Plan saved for

from NAM

us

in it,

were

and many of the faults were ours.

and

no

of able and

reserve

over

that kind

we

did

there

were

and

to

them

Marshall

Plan

was

to the

of

our

an

ab¬

develop¬

ment of sound economic relation¬

ship: in the world.
faults.

1954.

vance

tended

that

In

the

its aid

caused

down

It had

first

place

many

it

ex¬

to government and

many

the

Con¬

key questions: (1) What

against

nations to ad¬

road

of

central

against

constitute

as

currently

the

business

the

business
that

cure

a

cycle

is

worse

than the disease?

a

what

is

be done

may

strong outward flow of

a

of the world.

That

would

help

to

greatly

create markets for Americans and

provide the

with which the

means

der

*

capital must be for gain
the

incentive

because

blocks

flow.

in

use

to

road

are

outward

it

must

make

more

States.

.There

must

it

and

will

we

Pri¬

must do it

than by investment in the

money
United
•

to

want

we

un¬

system.

American capital

because
be

invest¬

of

flow

blocks
There

*

that

to

road

are

the other countries. We
best efforts to bring

our

vironment for

that

persuasion,

by

pass,

other countries will create

en¬

an

capital that will

our

attract it.
Just

a

.

ago

wife and I

my

key where
tions

for

the

I studied

our

reasons

name

these

What"
not being

for

our

There

are

worth.

show

to

what

Not

many,

haven't thought of.

one

a

example.. No Turk, has

anybody

ques¬

government.

able to do this?

even

his

I

curious

told

ever

assets

are

his wife knows.

If he is told he must pool his sav¬

ings with a few otjier people, in
something called a "company" and
then

assets
taken

of

tell
are

the

country

of that

aback.

We

doing this and

what

company,

the

he is

think
we

Continued

nothing
have certi-

on

.

.

.

,

page

97

.

„

e

correct

pie,

to

is

its

put it into

classification.

For

exam-

the

proverbial, man
from Mars were to investigate the
cut-oor activity
which attracts
suppose

multitudes of

cheering and booing
spectators to our university towns
on Saturday afternoons in the fall
of the .year. He would be getti"***
close, to
When

the

truth

rn *■» r

he

when

ct r»r-i rri

had

4-tr

r>

n

he
''

n

had

rf»v«

c*

"fmnm

as a

extended

his

'

in¬

vestigation far enough to identify
the species as
be

could

then,

literature
and

football,

the road to

on

edge ot the

a

It

is

warfare

organized
species

a

against

blanket

an

Using

word

a

of
un¬

con¬

for

the

call it

us

Starting
classification, a student
0f the strategy of "contracyclical

with

his

warfare"

can draw upon the store
0f knowledge in the published literature on both military and eco-

nomic theory

Althou*h most ^commendations
the

strategy of contracyclical
no further than plans for

Qn

war

go

static defense
against disequilibrating changes in aggregate de¬

Financial Chronicle

study
the

species

,

the

published

,

.,

,

"football,"

comprehensive
strategy for the
species of warfare,
when Dr. Arthur F. Burns, Chairp]an

.

subject,

anyone wants

the

real

nature

to

un-

of

the

currently fashionable kind of govoperations against the

ernmental

forces

of

cyclical boom and

bust,

the first step is to put those onerinto

the

correct

classifica-

tl0nThe

currently

fashion°ble

operations

gov-

against

the

business cycle are certainly not a
kind of game nor do they eonstitute

kind

of

business

co-petiThey cannot be class fied as

a

tion.

engineering

ooerations

thing
jses

.

.

cyclical forces of boom

and

bust

directed by unpredictable de-

cisions of human beings. They do
not constitute government interventionism
Peter

to

of

pay

the

of

Economic
some-

say

about the major prem-

.

poiicy of

our

the basic

economic

government has

proceeded,"

he

re-

revealed

enough

identifiable fragments to
permit any student of military
'
theory to fill in the remainder of
.

«

.

the

.,..

,

.

.

_

government's

strategy

grand

in"it^ conflict"with*

the

cycle.1

a

the

Let

us

grand

take

business

c'ose

look

strategy which

can

reconstructed

around
Burns' three major premises:

Dr.

The First Premise

"The first premise of
ernmental
that

we

kind,

since

policy,

rents

are

tive

of free

government
the
be

steps

to

This

...

competitrial, the

stand

aloof

but

economy

ready to take
helo maintain

vigorous
stable

a

(50)
premise

defines

the

assigned to the Federal

Government
warfare.

on

cannot

first

now

and

is

private

prosperity.''
roje

of

political curstirring the wo~ld. Since

enterprise

irom

is

age

an

Violent

system

0ur

it,

see

in

gov-

our

I

as

living

are

revolution.

-

in

this

species

of

That role is clearly one
.,

_

,

.

,

^ brother or champion of
"our system of free and competitive

enterprise,"

which,

brought

bay admidst "violent

to

political

^

^ nn

Continued on page 1UZ

ordinary- "rob

Paul"

council

which

on

cently

against.

hostile forces of nature, since the
are

the

Advisers, ventured "to

must

ernmental

a

grand

of

man

.

particular

..

derstand

of

conduct of tMs

and

,

.Similarly, if

re-

"game"

genus

,

were

chance to examine

a

from

excerpts

phenomenon. For he j-,e

on

the

he wo Id
complete knowl-

cently given

thus learn all he wanted to know

ations
year

an

than

more

of

species, let
"contracyclical war."

and
..

T.

classified that activity

goods could be paid for.
outward

the

Not

of the

name

Contracyclical War

oIoocitia/4

That

bust,
as

mand, readers of The Commercial

consider it

to

you

cause

will

grat¬

achieve

welfare

approach

American

new

and many I

'

nation.

normal

"ri¬

.:

ask

are

badly done

were

not there to seek

security

business

had the privilege of flying to Tur¬

always grateful.

were

The

organized

are

war

category

action.

venient

phenomenon

the world

as

-

to take

Things

itude—we

own

known.

men

not

We

adminis¬

"because this gigantic effort

those for whom

were

the

of

faults

were

the

order* of

private investment cap¬
ital into the under-developed parts

I

There were, of course, faults of
administration. We ought to know;

first

the

and will consti¬

year,

American

side great

our

was

Obviously the first force to be

some¬
.

30;

and

enemy.

predictable enemy.

H. P. B. Jenkins

following
remarks, which

first step in trying to learn
t-e real nature of any unfamiliar

to

happen to believe that the Mar¬

by Mr. Randall before the 59th Annual
Congress of American Industry, spon¬
sored
by the National
Association
of
Manufacturers, New York City, Dec. 3,




coming

vate

was on

program,

March

last

considered

a

was

countries like Austria, and stopped
Communism in its tracks.

of task.

subject. I offer
t>e

action

White

thing had to be done about it.

had

social

economic

t.*ree

boom

designated

resembles

other

any

t" is

der

a

or,

war, to be sure;
fateful kind of conflict

a

dis¬

on

wage

at least,
against the cy¬

dangerous

which

a

current^fashiVn°^in^ governmental
governmenta

.

We

to

sound world trade conditions.

partisan issue.

trained

con¬

a

tribution

of

latter

yet it is

constitute the appropriate criteria
for use in appraising our present

I

have

believed it

never

never

we

As

pol¬

his

that

say

would

had

associations.

icy.

to

the
gov¬

ordinary military

package of which all parts must
be held together in an; entity if
progress, is .to
be made toward

Plan

and I

something such

trade

cyclical

forces

to

national

is, expected

the

most

contra-

belong

Our

"containment"

with

our

operations
President's

before

been

Marshall

the

"war."

clical

to

reap¬

cycle? (2) What general principles

ment

They

World

in

increase dn world

an

gress.

those

was

At

is
as

House.

of

of

whole

far

conven-

currently fash¬

of extermination

war

tions may be a

an¬

tute

cio&e

world

has

what President in

many

elec¬

these

operations

ernment

answer.

into being no matter what
political party had been in power

have

general

short,

genus

next

'

come

I

In

ionable

the

Under

being,

Marshall

nor

the

extend
the

government.

tions, then the
two years be¬
fore

to
of

regulating, policing, and
umpiring functions of a national

fluctua¬

ness

fashionable kind of governmental

nounced

from having had to throw

into

of

is the real nature of the

The

everything into the battle for sur¬
vival, and they were an easy prey

came

forces

expected

are

beyond the limits

realistic

economy.

Increase

world.

They had lost their
leadership and finest workmen.
They have lost their liquid re¬

for

the

rising volume of production in the

destroyed.

sources

against

busi¬

trade and offer hope of a steadily

prostrated.

was

tration

and

own

our

Problem:

bring about

the capital equip¬

wars

We

industrial

world
tne

At

of the

much

have known it

ment

States, land thus

The problem therefore is how to

Economy

the

of

distorted.

war

After two

to

permitted

Trade

to go on

are

we

economy

strangely

governmental

cussion

eco-

living and increased volume of

of the

be

must

the United

The

production.

The

in

I say with entire confidence that
that program will be resumed in

its market if

A

values

its way, or we must cut back
outward
flow
of I products

restrict

as

Europe, we heard
65 people for periods of 45 min¬
utes each, people who had borne
great responsibility in this field.
received documents from 650

world

from

having the steadily rising standard
of

cyclical

praisal of

well as friendly,
and secondly, that our own do¬
mestic economy requires the world
for

operations

a

for

are

tional

fashion

time

security
battle

they

rent

have

present,

military

pouring

for those values we
received no payment. Either

earn

business

in which business

one

If, as I suspect, we are not all
completely satisfied with the cur-

make

the

the

overcame

cycle. Concludes policy
stability and economic effi¬
ciency should be mutually reinforcing and not counteracting.

good

from the

public, and we
representing the public had scarce¬
ly seen each other before.
We

of

been

which requires that we have asso¬

For¬

on

eign Economical Policy—and don't
tell

that

first,

we

should be

out of this nation since the end of

country;

our

before

-

the war, and

that

two-fold interest of

have

We

to pass from us

this subject which I shall
a

the

but

must be two way.

involved, I believe, in

nomicaly sound

months, I have been im¬

mersed in this

is

products

fashion in

current

stability horn of the dilemma, we may be running
killing free and competitive enterprise even

The entire world must

*

which to
balance their trade budget.
Trade

to us."

come

There

from

others have nothing with

responsibility which

of

and
its present ^distorted

American

buy

not seek that des¬

cause

it

take

condition.

man

no

cup

has

Clarence B. Randall
be understood,
though, that I am giving my inter¬
right between

dent is able to

the

thrust upon us; and
living, no wise

was

history and

Let

to restore the world economy

to turn back those pages of

man,

institution to

eyes.

which

sentence

We did

tiny.

that prevails
in this virile

the

impressed

been

always

that

world.

debate

orous

have

which says, "The
United States today bears an awe¬
some
responsibility in the world.
Our actions, our words echo back
to us from every corner of the

exhort¬

means

that something still must; be done

be
I shall

I

-

them

terminating

published in the "Chronicle"

as

dilemma in the

a

the grave risk of

Since the Marshall Plan was not

being solely.an emergency mea¬
sure, I take it that the American
people have decided that large
grants
of economic
aid should

Advisers,

Sees

contracyclical policy, because it necessitates a choice between
"stability" and "genuine prosperity." Asserts if we always

vital forces.

unanimous

"at"an

v/orth.

a

Council of Economic

tion; and third, the free market.
And it seems to me that at the

bias.

with

might

,

reappraising the present policy of combating business
cycles, Professor Jenkins discusses the strategy of the three
major premises of Dr. Burns, Chairman of the President's

second, strong, vigorous competi¬

evidence that which I shall pre¬

sent

one

man's opinion,
for w h a t 'it

of

University of Arkansas

In

American econ¬
are: first, individual initiative
reliance on private resources;

omy

we

Acceptable
Contracyclical Policy

an

By H. P. B. JENKINS

the vitality of the

—

;

College of Business Administration

well conceived for those purposes,

I

»

out

Toward

Thursday, December 16, 1954

...

the basic three that count for

are

world economy is
strangely distorted, and the Marshall Plan was an abnormal
approach to sound international economic relationships. Says
problem now is to bring about an increase in world trade, and
gives his interpretation of President Eisenhower's foreign
trade program. Advocates using mechanism of the Investment
Trust in aiding flow of outward capital. Stresses a gradual
and selective reduction of tariffs as an evolutionary and not a
revolutionary approach to world trade problems.
headed, points

Financial Chronicle

1 "Government's

Role

in

Easing

Busi-

they do not consistently discrirri-'
nate

in

groups

favor

of

the

of

any

particular

population.

And.

1954. 1:49-50. All direct quotations from

Dr.

Burns'

speech

are

PIges"oTtheSPc/iroJcie.

taken

from

these

Volume 180

Number 5386

....

*

The Commercial and Financial Chronicle

(2463)

11

\

makes

"Social Welfare Plans-

us

more

may

be,

tical

limits

of

whether

Time to Take

Soundings"

know

for

Social

Security do not

:

/•

■

•

>

♦fice is

that

.stand

up

term

and

we

who hold it may

here

during

once

our

period

W

h la t

will

obtained.

progress,

or

als I

suffered

serious

be

The

views

and propos¬

can give
Security is some¬
must be earned and

or

becomes evident that the benefits

intend to express today are
advanced
as
those of this

Of

all

these

to

I

reasons,

a

and

country is willing to
afford when the true

can

costs mature.

The young people of the nation,
should be particularly concerned

ican families.

feel

program
must
sensible relationship

some

what

pay

protection and security for Amer¬

*

.

security

any

bear

on

attained.

For

their

Continued

on

'page

not an

often ta sell or, a solicitation of an offer to buy these securities*

offering is made qnly by the Prospectus,

con¬

tributions to its

work, -as well as
cooperation with the

our tme

m

Associa¬

Officers

Life

Canadian

$30,000,000
in all its major

year

maintained-

has

dollar,

-

its

Telephone and Telegraph Company

has bought our;products in in¬
creasing amounts.; Life insurance
sales have increased 3% over 1953:

so

say

and.

."temperate, .L
.hppe.
f v

-

[and >176% in the last 16 years!
(Neither- of these, figures gives ef¬

Thirty-Four Year 3M% Debentures

-

fect to the $7 billion of life insur[ance written by private companies

be

;erat

mod-

e

m

o

e

ever,

J

w

W. Dawson

ill

the

staff

high regard

my

institution

Price

of

I

the

have

Association

worked

so

we

102.22% and accrued interest

private
life
a
record,

of

With

insurance.

Due December !5; 1988

•,>

growth testifies" to the
high regard the" public has for
such

could

hardly be regarded as
concerned; with govern¬
closely in the past year. My asso¬ mental competition.
From the
ciation with them is nothing new,
standpoint of our own self-in¬
since I have had long acquaints
terest, we are doing very well.
ance with them and have worked
But a& citizens, our concerns can
with them on many problems. But
scarcely rest there, We must ex¬
I welcome this opportunity to pay
press
ourselves on
the larger
tribute to their capacity, industry role the
government is assuming
and loyalty to the business, which in providing security for all our
to my mind constitute assets be- citizens.
'
'
-yond, price. We are indeed for¬
The year 1954 has been marked
tunate to have built such an As¬
by the renewal of strong pres¬
sociation, headed by men of out¬ sures for the expansion of social
standing ability and real stature. welfare plans. Individually, any
But
they cannot do the job of these proposals may be both
whom

Dated December 15, 1954

Such

our

ate; and that is
«with

>

'

Louis

not be moder-

for

goverimient employees in 1954.,

on

thing, ..how¬

overly

The

*

Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers asmay lawfully offer these securities in such State,

'

alone.

You all know of the many

committee assignments made each
year to officials of member com¬
panies. Speaking for the year in
^ which I have presided, I can say
that the response to those assign^
ments has been ready and willing;

that there has been splendid

and

cooperation all along the line.
This is particularly important in
the light of the nature of our
legislative work — which is not
that of

lobbying in its popular and
derogatory sense, but of skillful
and thorough analysis of legisla¬
tive proposals, and open presenta¬

tion of

our

officials

long

as

views to governmental

and
we

representatives.

maintain

the

So

high

quality of our staff, the full work¬
ing cooperation of our company
officials, and the integrity of our

presentations, we shall conduct a
successful operation of which we
"can all be, proud-

desirable

feasible.

and

to¬

But

gether—and when added to the
plans we already have—they may
be more than
the country can

afford, either

now

think

the time

has

ture.

I

for

a

of

our

existing

unable

to

how

may affect other
in the nation's economy.

plans

Before

would

'

*An

leaving

like

bv

Mr.

Dawson

at

the

Meeting of the Life Insur¬
of America, New York

48th

Annual

ance

Association

City, Dec. 8, 1954.




THE MILWAUKEE COMPANY
STERN BROTHERS & CO.
.

.

$4,575,000

elements

Equipment Trust, Series YY
2V&% Serial

these subjects and a

ple

will

pursue

wise

a

we,

have
which

To

$305,000 annually January 1, 1956 to 1970, inclusive

mature

future

.

desire

in

Equipment Trust Certificates
(Philadelphia Plan)

confident that the American peo¬
course.

-

Missouri Pacific Railroad

sufficient

for

security

To be

is

the

But

life

I

.

chosen

helps

to

guaranteed unconditionally as to payment of par value and dividends by endorsement by the
of the property of Missouri Pacific Railroad Company, as Trusted but not individually,

Trustee

Yield

Maturity

Maturity

'

Yield

Maturity

1961

1.65%

1956

2.75%

1966

Yield

2.975%

1957

2.00

1962

.2.85

1967

3.00

1958

2.20

1963

2.90

1968

3.00

1959

2.40

1964

I960

2.60

1965

-

1969

2.925

3.00

1970

3.00

*

don't think

2.95

.

,

insurance busi¬

enter

a

Issuance and sale

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

The

business

people achieve se¬
financial independ¬

also to

address

R. L. DAY & CO.

SINGER, DEANE & SCRIBNER

December 15,1954.

If there
public discussion of
clear public
understanding of the problems,
issues and costs involved, I am
is

curity and
this subject, I ence for themselves and their
speak of our families.
We. have
done more
very fine relations with our Ca¬ than
perhaps any group to make
nadian brothers, which are evi¬
the age-old dream of true secu¬
dent in their membership in this
rity a practical reality for mil¬

"

INC.

HIRSCH & CO.

such

ragard as a serious need for wise ness, can fairly be accused of a
lack of interest in our fellowintegration and less duplication,
man, because as individuals we
our relationships with all our re¬
lated organizations have been ex¬
cellent.

PARKER & REDPATH

WM. E. POLLOCK & CO.,

1

BALL, BURGE & KRAUS

j

WERTHEIM & CO.

'

proposed

and

and

pay;

have humanitarian.

many

SHIELDS & COMPANY

t

BACHE & CO.
AUCH INC LOSS,

to see where we stand
now; what costs we are incur¬
ring now
and
in
the future;
whether we are unwittingly tak¬
ing on commitments that a future
generation may be unwilling or

persistent and universal.
No one can quarrel with such
an aspiration.
It springs from a

representative
could
been made. "Despite what

INCORPORATED

HALLGARTEN & CO.

plans,

The

>

DICK & MERLE-SMITH

COFFIN & BURR

BEAR, STEARNS & CO.

come

tribute to our
sister organization, the American
Life Convention, with which we
work so well in our cooperative deep-seated human instinct.
the
individual
who
endeavors, and to its new Execu¬ Therefore,
tive Vice-President and General questions the desirability of so¬
cial. welfare plans is in danger
Counsel, Claris Adams. No more
of sounding churlish, and antihappy choice of a new Washingion

HALSEY, STUART &. CO. INC.

careful review and analysis

strong,

I also want to pay

:

in the fu¬

or

HALSEY, STUART & CO. INC.
R. W. PRESSPRICH &. CO.

GREGORY &. SON
INCORPORATED

lions of families.
December 10,1954

But, by the same
long
experience in

token, our
this field

that

business,

security.

us

They are

inflation, trying to make
promises that were Association, or of ^tae1 life insur¬
never economically justified.
No ance business as a whole. They
crueler trick can be played *on are my own personal
views,
any people than to hold out false which spring from a lifetime of
hopes of security that can never experience in helping to provide
good

not

value, interest rates have been
treasonably stable, and the piiblie

and

I

idea

primarily thing that
of
economics,
basic paid for—whether it involves an
philosophy and how admittedly individual or a nation. Once that
desirable objectives can best be
principle is recognized, it then

The

the

a

"excursions,

private
anyone else

[areas.: Mortality has; been -good',

of

"alarms,

politics.

san

This announcement is

in

and

organization

"ably well this

Jour minds..
.'Fortunately,
not

tions

can

our views
may
to me-that the ques¬
involved are beyond parti¬
seems

problem
must put

Our business has done remark-

mav he
^uppermost in

is

minds

our

the
we
the

interest from productive

earn

ywhat

this

from

.

unions

It

tion.

say

views oh these ques¬

approaching
plans,

welfare

questions

enterprises."

One of the most valuable pre¬
rogatives of the Presidential of*
■

In
of

to

government,

us.

economic

plans will create serious economic problems
that require careful review and analysis if we are to avoid an
adverse effect on the nation's economy. He points out that:
(1) Social Security,; as now being operated, postpones much
©f the cosVtherehy placing a heavy burden on future genera¬
tions; (2) the plan already has liabilities of $250 billion;
(3>S©cialSecurity taxes imposed on employers and employees
mayiaieriiae to ll% of payrollT and (4) i*serves-set up

duty

be.

History is replete
with
examples of governments
that have seriously retarded their

welfare

life-insurance
public

a

tions— whatever

Frankenstein that may

a

destroy

President, Life Insurance Association of America

the

have

express our

-—

pro¬

programs.
We
welfare |>lans, unless

that

become

life insurance executive contends the growth and increasing

^

programs

personal

are

in

we

business

prac¬

kept within practical limits,

President, The Mutual Life Insurance Company of New York

>

for

grams,'or public

By LOUIS W; DAWSON*

cost of

they

need

such

that

than others

gware

the
on

FREEMAN & COMPANY
McMASTER HUTCHINSON & CO.

*

116

y

12

(2464)

The Commercial and Financial Chronicle

back to

squelch

greatly reduce

or

In Praise of

the program which Stassen has in

From

mind.

Washington

Ahead

Now,
tion

the President's

on

extend

to

extended

the News

to
in

one

Mr.

Eisenhower, it is disclosed,
ask the next Congress

was

opposition

aid

former.

excise and 52%

of

the

present

corporation taxes,

liberalization
of

the

Taft-

Hartley

Act,

extension

of

"freer"

the

trade

policy

for

least

at

3

and an
to Asia

Insurance executive lists

two,
of

the

retention

the

taxes

taxes at

in

the

The

Bargeron

ularly the retention of the excise
taxes. They both require positive,
excise

Korean

from

tax

The

being

reduced
who

Democrats

47%.

to

make

the

up

a

great to-do about being for the
workingman as against the boss
might possibly go along with the

excise

The

,

nuisance

or

whole

1

of

is

taxes

embarrassing

an

political picture to Congress, Re¬
publicans and Democrats, alike, in
the context of the proposition of
aid

Asia.

to

remains

be

Just what
be

to

It

seen.

is

and

ning

that much abused term,

Asia.

anathema

to

of

Secretary

Humphrey

Treasury

office with

into

"the Free
Apparently it is

who

( 1

came
pur¬

ema

head

of

of

1954.

exploited

but

we

were

Artifi¬

to be

stock
can

own

J.

Edwin

(5)

The

(15)

a

over

need

to

shows

loss

a

entire

an

it

as

can

credit

fashions

are

fashions

and

have

a

a

&

1926

FINANCIAL
to

Dutch,

of sound

Swiss,

and

companies

buy
when

exercise

bonds,
stocks

proportion

proper

preferred

and

com¬

changes constantly.

Municipal

Phone:
REctor

-

immediately in New York City
Edwin

2-9570




that

are

low

L.

Beck

25

Park

Place, New York 7

the

on

The

very

shunned

when

often

eagerly

are

they

portfolio
past

rected

(23)

often

these

are

reliance

on

easy

of

occasional

the

on

who

flex¬

a

'
of

'

Restraint:

1950-1951
A

striking illustration of this
principle—in terms of debt man¬
well

as

the

fall

central

appeared in

—

1950

of

of

as

banking practices

and

the

early

spring of 1951. By that time there
was
increasing criticism of the
Treasury

and

who

collaborating at the in¬

were

sistence

accept

I

Federal

the

of

Reserve,

Administration in

maintaining pegged prices for gov¬
While there

good

believe

Federal

Since

the order of the

is

people

do

healthy
but

on

be

to

to

reason

of

eyes

the

Reserve, recognizing in¬
flationary dangers, had wished to
discontinue the practice at an ear¬

and

lier date, no important action had
been taken up to the end of 1950.
The majority of those who under¬
stood the

the correct timing

on

though they accept the idea
in theory, we find our monetary

even

crippling effect

Federal

The sound

a

direction

of

flexible

a

monetary policy is always handi¬
capped and troubled
emotional

man

The

second

by basic hu¬

characteristics.

arising

reason

out

Reserve

pegged

of

upon

the

maintaining

government

securities

market

were
in agreement that
this practice should be discontin¬
ued.
The Federal Reserve has a
major role in contributing to the

maintenance of

is that

ing economy, and fixed prices for
government bonds, which might

some

do not believe in the

restraining monetary pol¬
time.
They question

a

any

and

the

appro¬

have

been

time,

were

justified

priateness of combatting inflation¬

prices

Those

a

stocks

they

are

bought

who

be

di¬

of

brighter

be

that

fixed

maintained

in¬

They feel that relatively low in¬
terest rates

change

all

prefer

other

are

instruments.

appropriate under

reason

for the underly¬

unpopularity

bank

is

that

this

criticism

conditions.

ing

of

central

a

large part of the

a

There

policy

of

were

the

others

and

they created.

indifferent
them.

At

to

and is either

confused

or

about

rate, it is easily
the
propagandist,

any

by

fourth

tendency

reason

historical

the part of many
this country to distrust

in

and

criticize

ing.

an

banks

and

By tradition, bankers

bank¬
are

a

ficult to

make

tion of central

a

rational

evalua¬

banking operations.

We should remember too that it is
even
more
difficult, in such an
atmosphere, for a central bank to
*A

to

statement

the

tee

ton,

on

by Mr. Wilde submitted

Subcommittee

bilization,
the

understood

on

Economic

Joint. Congressional
Economic

D. C.f Dec. 6,

Report,

1945.

Sta¬

Commit¬

Washing¬

who

Few,

the

direct

felt

that
de¬

se were

the

actual

if

true

in

operations,

tainly none who had
sound money, wanted
program

At

any,

who

function

of

banking and the need for

freedom

and

cer¬

respect for
the support

continued.

long last, in March of 1951,

an accord was reached
permitting
flexibility in government bond
prices.
This involves some re¬

treat in prices.

convenient scapegoat.

a

potential danger of inflation

central

on

groups

to

is

or

was

Administration.

low interest rates per
sirable regardless of

public finds monetary matters dif¬

*

future

the United States appears
than ever.

war.

believed

should

war

unwarranted

cluded several groups. There were
those partisans who felt that to

For all of these reasons it is dif¬

should

during

wholly

pressures by the Use of gen¬
eral monetary and credit restraints

ary

A

price

sound and grow¬

a

five years after the

suit¬

and
growing.
stocks is im¬

long-term

was

that

the extent of credit restriction,

agree
on

the politician.

the road ahead.

The

like

not

day.

restrained, and since they seldom

high.

action

the

conflicts

ible monetary policy in principle
frequently object in practice, when

swayed

Imagination and resource¬
fulness are required to keep a

portant,

c/o Financial Chronicle

the

whether he is the businessman

(22)

The

this

even

bonds,

influence

of stocks.

when

(Canvas Bound)
Available

of

(21) Investors' emotions have

CHRONICLES

of

\

ficult to understand

patience.
The

too

flexible

a

ernment bonds.

and

are down,

decided

the End of 1953

for

central bank.

those

effectiveness

trend

into

important

of

the

are not
able for all investors.

SALE

most

out

at

mon

at

climate

restraining action

a

of

Too

Unpopularity

agement

of

cash,

must

reasons

use

purchaser.

though tax exempt,

FOR

this

take

The

part of

'

out

come

we

unpopularity are obvious, and yet
are
constantly forgotten by the

need for

result

v* lide

d.

to

are

inquiry,

arise

ac¬

as

The unfortu¬

virtues

excessive

The

icy

(19)

lay the foundation for
reactionary trend. 1
(8) The growth of the popula-

ridiar

principal

critics.

qn

■

useful results
outset

money

money.

If

an

late.

policy.

practical
ic

way

(20)

From

in

easy

can

theoretical

bank¬

these

too

monetary
any

into

such

the

generally

thing is that a good deal of
such criticism comes from persons
who
believe
implicitly
in
the

This

central

of

more

nate

a

inquiry

universally criticized

expansion

of the occasional need for restraint

calculated risks and the
of

its

little and

climate

which

in

result

mint p^i^™lls^foTtakfng"some

Ameri-

(7) Low interest rates and

people in order to support this

COMMERCIAL

the

A third

world become developed,

ex-

Asia, I do
not know.
The spectacle of con¬
tinuing these levies on the Ameri¬
can

such.

is
in

condu¬

never

cepted, is often condemned

flexible policy
as

almost

authorities generally in hot water.
a

heaviest buying during poor markets is a sound investment policy.

-

Cise ifbnf 1nlhnmreedtaev °n
corporation income tax only ^ ^?" bUSineSS wil1 be «reat'y bene"
in fited.
of aid

selling

(17) Spacing purchases with the

Washing-

of

is

administration.

supply, while

the

merits

good

and

unre¬

to

criticism

to

tice

going out of style with result¬

prices

years

endless

Whether Humphrey is opposing

anticipation

it

as

There

stocks

business
the

t°n-

the demise of the Korean War

soon

British,

for

"shots in the arm" form

support.

of

(16) Seasoned investors like the

big factor

country's

the

of

picture.

increase

without

giving Humphrey some behind the

companies

Schlesinger .losing a good position.

is

over-all

should

Washington but undoubtedly he is
scenes

as

undermine

undesirable

The

(4) Inflation is still

knitting since coming to

should

1955

of

policy

ant loss to the

the

is

1955

risks.

The

tional debt.

in

growth

than during

in

stocks

stocks,

speaking he has sought to tend to
his

lated

Even

in

greater

really sound unless accom¬
panied by a balanced budget and
a
gradual reduction of the na¬

own

Seaway

portfolio.
(14) Taking profits is frequently

never

enrich
the only

nationals for the
benefit of the colonials. Generally
its

be

for

(13)

a

are

the

slightly less than in 1954.

definite

can

economy

country in the world ever to ex¬

ploit

this

cive

As a result, the central bank's
imposition of restraint is in prac¬

consideration.

growth possibilities but
purchase can involve some

their

sheep's
clothing.

the colonials to

themselves

and
growth,
duty by follow¬

flexible

a

the reasons for

of

Important to continuously

search

price

supports

had

countries

ing

any

with real

( 3 )

other

cessive

stability

and carries out its

conducted.

business.

volume

Dividends

(12)

Wash¬

Cabinet, made a not thoroughlyenough publicized speech in which
that

carry out successfully a flexible
monetary policy. Unfair and ex¬

economic

restraint

to

be only

wolf in

said

banking system.

ing operations
i s
inevitably

/

(11)

nating

prove

Unit

likely

by

(2)

•

A central bank which recognizes
its responsibility to contribute to

The

nation's

the

(10)

policies

and at a time when he had
expectation of being in the

he

grow

The St. Lawrence

(9)

pro-

e

cial

General Motors about three years

no

will

tion serves as a balance wheel for
the country's economy.

sub-

ington.

him, though not vocally.

ago,

fitting,

so

~

the

of

from

Presumably Sec¬
retary of Defense Wilson is with

as

T h

)

the

cal year of 1956.

who

was

should favorably affect the

affected

that he won't achieve it in the fis¬

Wilson

that it

plan-

investment

country's
economy is

balancing the budget, who
has had to postpone his accom¬
plishment and who has announced

was

1955

are

with

connection

in

the

course

pose of

It

caricature of him

~

gram:

the

avowed

the

points

following

mitted

be done in behalf of

World" in

the last

over

Investment Counsel, New York City
The

Dulles of

State

Secretary of

What should

The fa¬

an

idea of Foreign Aid Chief Stassen

■

(I) it can have proper timing; (2) it is
general and impersonal than direct controls, and (3)
recent experience has shown its benefits.
Says first six months
of 1953 provide a spectacular illustration of
combining tech¬
niques of debt management with the operations of our centra]

By EDWIN J. SCIILESINGER

is to

this

the "Liber-

as

Gridiron Club

to

Points in Planning 1955
Investment Program

taxes.

matter

likely to present

friendly

Adlai look ridiculous and that the

comani-

proposition to extend the 52% corporation tax. They aren't likely to
do so in the case of extending the

li

more

is

week.end caricatured him in that

profits tax at the hands

head

it*:.;

monetary policy:

Several weeks

like wild-fire
between now and '56, just as Alice
Longworth's crack about Tom
Dewey in '44, that he looked like
the aid for Asia program. Dodge the man on the wedding cake,
is not a spendthrift. It could be effectively ridiculed him at that
that the President has called him time.

out as of April 1,
the corporation 52% income

and

he

as

American politics."

mous

fold foreign aid activities on the
part of this government. He is to
be over Foreign Aid director Stassen, who is the prime mover in

wiped

being

for the unpopularity of :a
responsibility to contribute
to economic stability and growth by
following a flexible mone¬
tary policy. Cites unpopularity of credit restraint in years
1950-1951, and lists as reasons for maintaining a flexible

Congress has done that.

ordinate and

increases

tax

have.

described him

affirmative" legislation, to'prevent called back Banker Dodge to
the

/

reasons

jjght and some 400 of the country's
monetary pol¬
]eading industria]ists and business
icy, is bound
It is significant in the matter of men who saw the skit came away
to be unpopu¬
aid to Asia that the President has with the impression that it made
lar.
Many of

get, partic¬

Co.

central bank which recognizes its

nomina-

clinched

so

COmmentator

a

ace

of

excess

of the last

Carlisle

ag0

wanted

repeal

Presidential

1956

in

SUppose(j

wanted

business

to

he

Insurance

re-

to, and
instance it resulted in a

every

spur

present levels,
he is not likely

tion

.

make

to

Mellon

than

more

.

used

Andrew

seemingly

to, or

corpora¬

tion

Democrats

cautious

duce

excise

and

to

Democratic
.

The

first

The

Democrats.

in Congress, you can rest assured,
and the matter of continuing these

program.

Life

Chairman, Research and Policy Committee,
Commttee for Economic Development

w*il Set a heavy support from the

aid to Asia will be bounced around

years,

retention

Connecticut General

President,

from

party but he

own

However, the situa^on hasn't materially changed
taxes will also be bounced around, from the last session when he had
Asian aid or no, on the Treasury to accept a one-year extension.
Secretary's ambition
to
balance
0° his ambition to liberalize the
the budget. Inasmuch as Congress Taft-Hartley Act I think he has
has to pass affirmative legislation
^ess chance than he had at the
for the continuation, I doubt seri- last session when he got nowhere,
ously that either the excise taxes
Recent developments have made
or the 52% corporation taxes will
seriously doubtful as to
be renewed,
certainly not the whether Adlai Stevenson has the

the

for

.

By FRAZAR B. WILDE*

get that. He will

may

stubborn

members of his

prepares to

Monetaiy Policy

trade

years—it

the last Congress for

year—he

have

By CARLISLE BARGERON

Flexible

a

ambi¬

"freer'*

the

three

program

Thursday, December 16, 1954

.

.

was

all
-

hue

a

come

Immediately there

and

from

cry.

and it

politicians.

didn't
-

The

purchaser of a marketable
bond, whether an individual or an
institution, must be willing to ac¬
cept the fact that in
talistic
are

certain

there
for

has

to

fluctuate.

been

a

investment

loans

a free, capi¬
security prices

economy

relative

to

heavy

funds

When

demand
or

supply,

bank

interest

Volume 180

rates

Number 5386

bound

are

.

.

to. increase

and

ter of fact, it is

bond prices must reflect this situ¬

to

ation, other things being equal, by
going lower.

effects

*

Many buyers of government

curities

had

forgotten

rise -of

a

reasons

several

are

the

First,

stitutions

cases, a premium over
the natural price for their

many

par was

securities.

to

tions

whose

know,
tory

easier
of

as

buyers

should

or

the

of

—

know,

the

his¬

place.

understand

to

individuals

institu¬

certainly

market
with

in

It

the

little

is

case

experi¬

in bond

buying; but these, for
were not the per¬
sons
involved.
The unsophisti¬
cated
investor
usually held Eence

the

most

bonds
able

other non-market¬

some

security which did not fluc¬

tuate
-

part,

or

in price.

ultimate payers or
The large financial in¬

which

receive

interest

seasoned investors were
vociferous, particularly after

the end of the war, in contending
that
in
a
free
economy
fixed

prices and

price supports should
he abandoned everywhere.
Then
iwhen the fixed, price for bonds
was
withdrawn, some of these
people expressed dismay and
unhappiness that it should happen

same

to them and their institutions.

monetary

affected
failed

do

policy,

their

an

in

to

so.

excellent example

hmuan

which

if

even

of the

way

tends

nature

to

resist, even against the arguments
of reason, any restraining pressure
on

the economy.
'

II

Case

The

/

for

as

a

opinion the nation should
monetary policy
principal instrument for con¬
flexible

a

tributing to

objectives of

our

eco¬

nomic growth

and high levels of
employment without inflation.
This

does

should

not

place

that

mean

reliance

sole

we

upon

monetary policy.
Any given sit¬
uation will require a complex of
But

measures.

flexible

a

mone¬

tary

policy is an important and
especially valuable instrument in
our

kit of tools for at least

reasons.

three

First, its timing
This

ble.

is more flexi¬
especially true as

is

with

compared

budget

policy.

I

would certainly agree that budget

policy should be
of any program

an

important part

for the prevention

of inflation. But there
and

economic

sive

reliance

pluses as
"inflation.

obstacles

political

to

exces¬

budget

upon

of

means

a

are

sur¬

restraining

Monetary policy is the

most sensitive and flexibto instru¬

ment and I do not believe that

an

adequate anti-inflation program is

would

tutions

on

from

more

earn

larger volume.

a

Second, as compared with direct
controls, on with selective mea¬
sures,,

poliey

^monetary

merit of

being

a

has

the

general, over-all,

impersonal instrument.

As

a

mat¬

ter of fact, direct controls are not

likely
war

be

to

time,

ferior

available except in
would

and

instrument

be

an

if

even

in¬

avail¬

est rates

sided

a

flexible,

monetary policy

has

two-

been

promising and warrants continua¬
tion.
In
tant

my

opinion the most impor¬

consequences

monetary

policy

of
are

a

its

flexible

effects

the stability and growth of

upon

investors.;

economy.

policy

Monetary

important effects and not in terms
of who

dower

gets or who pays higher or
interest

rates.




As

a

mat¬

in respect to

made

constructed,

builder wished
it

the

difficult

loss.

to

was

he

Either

which

did

a

situation
in

not

as

most

it sounds.

cases

ized its intention to

It

basic

will

he

times

of

loss

been

restriction

detrimental

general, the net distributional
effects of higher or lower interest
rates

diffuse and uncertain

so

are

III
A Flexible Monetary

Policy in

has

to

monetarry

six

first

The

worked?

policy

months of 1953 provide a spectac¬
illustraion

ular

combining, both
the techniques of debt manage¬
ment and the operations of our
banking system.
read

many

giving definite evi¬
in
the closing

economy was
dence

boom

of

;

months

of

for

and

1952

early spring
demand for funds

The

1953.

of

the

signs,

the

permanent capital and for in¬

ventory accumulation was sharply
Demand for residen¬

accelerated.
tial

commercial

and

funds,
for

a

com¬

straint

When over-all credit
is restricted and money becomes
ment

one.

area

which

are

of

ered

mortgage

with

and

as

bulk

whole

economy.

restraints

over-all

fered
the

prices

for

for

credit restrictions

tive

sale and

commitments

a

reduction

made

for

May and had the moral cour¬
accordance with the

age to act in

changed evidence.
IV

of

Inflation

in the
over—all,

Belief

in*

mortgages.

the

desirability

of

a

inflation

lief-that

much bet-1

is

one

of

the

Sreat menaces to any modern so-

ciety. The wickedness of inflation
1S *P Rs Sross inequity. The great
majority of people, and those least
shle to protect themselves, are the

selec-

in time of

great sufferers in periods of infla¬
tion

^

experience
luh.VV.

in

mind, necessarily allied to the be¬

teaches

-

„

some-

people who have saved,
people on salaries, working peo111

Kof

thing which has been known for
some
time, namely, the need of
constant
efforts to improve the

in

new

*

flexible monetary policy is, to my

not

are

Flexible

and

Monetary Policy

equity develop.
This

Fed-

commendation for what it did. It
^e"""el=hlnAesi"
in

evitable and large elements of in¬

of¬

for

reasons

This much is certain—the

great mistakes are almost in-

very

the

eral Reserve is entitled to great

Under the latter practice

peace.

and

eco¬

total

ter than any attempt to use

compared

mortgages

are

time

they are taking
place is certainly debatable, and
it may be undesirable.

perfectly uniform in their im¬
pact; it cannot be otherwise. But,

mu-

of

Even

restraints

actions
For the
to discuss fully

given

Reserve

actions

of damage

small

very

non-selective

to bonds. The result was a shrink¬
age

its

mistakes

the

any

Federal

that

actual

cases

would

scattered locations

unattractive

individual

these

apparent greater credit risk
handling expense, were rela¬

tively

but

damage,

At

them at the time

things would
Certain iso¬
instances might be discov¬

nomic

mortgages

size and

tion.

some

was

uri-

speak louder than words.

With the benefit

where there

objec¬
Federal

generally

be

exer-

PxnPPtPd

administrative

hindsight

lated

in their portfolios as they wanted. They
were anxious to balance by buy¬
ing more securities.
The mort¬
gages in many cases, because of
small

was

policy

But, publicity ior dayto-day changes of direction seems
to me a rather debatable proposi¬

un¬

an

basic

the

instruments of

derstood.

be done differently.

years.

many

and

hp

tn

would be made.

had been issued for
Institutions tend
to
operate portfolios under the
theory of diversification.
Many
banks and
insurance companies
as

be

to

W

it

some

weakest will

register the greatest difficulty.
The mortgage area was weak for
several reasons.
A large volume

had

had

pjopH

those sectors of the invest¬

scarce,

several

flexible

a

was

R,eserve

namely, credit

prevent

that

tives and

healthy boom.
Viewed broadly, the operation
of banking restraint in the early
spring of 1953 is a good illustra¬
tion of sound policy in the money
and credit field and not, as the
critics claim, a misuse of it.
During such a period, when re¬

of mortgages

Practice
How

situation

The

plicated

to

It is

I think it is

made.

was

important

profits

be

tight

fact that in May and

this effect

reduced

or

reverse a

June such
a reversal was under way, but no
categorical public statement to

a

situation; namely, that in a
and loss economy there

profit

of

policy.

cated the wisdom of reversal.

actual loss, but merely a reduction
in profit. So we're back again to
a

success

conditions indi-

policy if

m0ney

an

mean

the

to

People have said that the Fed¬
Reserve should have public¬

immediately or he accepted
tower price.
This was not as

serious

But this

eral

sale
a

vital

are

flexible monetary

any

the

make

pre-

may

at the expense
price fluctuations

eliminating

of

possible

a

didn't

a

must not be done

mortgage

arrange

markets

vail in periods of strain.

found

and

orderly

more

housing alwhere the

sell

to

handle

to

large volume of longer term issues needs improvement so that

of

case

there

financing,

other sectors.
accumulation

inventory

have

would

1953.

In

Uie

—despite

maioritv
"idjuiiiy

the

fact

Continued

of

UJ.

instances
lllhldllteb

that
on

certain

page

11$

funds, and
credit was pyramid¬

municipal

for

consumer

The situation required the
banking authorities to re¬

ing.

central

frain

from

adding to the credit
Their duty was clear. If

supply.

and bust

was

This announcement is neither an
The

offer to sell

nor a

solicitation of an offer to buy these securities.

offer is made only by the Prospectus.

/

,

to be avoided

mitigated through banking pro¬

or

cedures, this was a time to let the
borrowers
credit
than

compete
in

was

to

whatever
rather
matter

for

credit,

Shares

300,000

existence,

expand

no

how vociferous the demand.

would have said that sharp

Some

restrict

tions of credit were in order.

The

their

re-

lived

authorities

to

up

ponsibilities. They restrained ex¬
pansion of the credit base and, be¬
the demand

cause

Common Stock

far greater

was

Par Value

$1.00 Per Share

and
and interest

than current resources, money
credit became scarce,

increased

oi

matter

a

as

course.

period, in further¬

During this
of

ance

sound

debt

~

the

lengthen

to

Treasury

long-term obligation.
assure
was

the

success

$36.50

per

Share

the

offered

a

In order to

of this issue, it

because of market

necessary

Price

management

debt

policy—namely

conditions to place a 3

V\ %

coupon

only frpm such of the several Under"
lawfully offer the securities in such State.

Copies of the Prospectus may be obtained in any State
writers, including the undersigned, as may

the bond.

In

April and May, and running
for capital

into June, the. demands

and, credit

the

interest rates
Many borrow¬
who really didn't need funds

capital market and
ers

at

the

sharply.

moment

sought

money

or

credit lines, immediately, probably

in

expectation

rates

to

come.

of
A

Lehman Brothers

Potential

increased.

borrowers tended to stampede

interest
psychological
developed
which was
the short-term inflationary and de¬
perhaps the more acute because
flationary movements, but should the issue of a long-term bond
gear
the money supply to our coupled with a restraining mone¬
long-run growth potential.
I be¬ tary policy had not been encount¬
lieve. therefore, that the policy ered in the market place for many
should be judged in terms of these years. The Federal Reserve quiet¬
the

should not only attempt to counter

ready

tne

usually go losses on cap¬

increased
.

funds,
at

accounts,

different

Third, I believe that our recent
•experience with

In

the economy and would only have
that is, the market* aggravated the later decline.
prices of investments decline. The :
L)ome
strain
developed in the
net effect of this would vary for
mortgage market in the spring of

ital

on

able.

trade.

mechanism

market

commer-

simply deferred and this was highly desirable in view of the full employment conditions in the building

the

observation could

The same

Further

Third, along with higher inter¬

rates

possible without it.

new

all national policy,

boom

'

*

-

a

was

recession.

As

In my

view

met

it

development or
cial enterprise,

bills.

future

not

whether

It is not clear that financial insti¬

central

Flexible

a

for

were

resulted market Tor government bonds,
deferring The government debt is very large
Any sound project, and will continue to be of great
was
a
new
housing magnitude.
The capacity of the
any,

from

economy

which we must accept if
they are a result oi a sound over-

Monetary Policy

.

true,

for

construction

demands

is

and

commerce

of

great harm if

the

commitments.

time, and probably contributed: to
the mildness of the subsequent

it

institutions,
This episode is

and

payment
Some

No
to

one-way

ing when demand is active by an
expansion of the volume of credit.

that

own

a

of depositors time.
It was not imperative that
On the otherthey should be, and no serious
hand, the corporations and gov- *
damage resulted to the country
ernments which pay interest rep¬
as a whole.
The postponement of
resent millions of customers and
new
building because a commit¬
tax payers.
We do not know who ment could not be obtained was
ultimately receives or who pays.
not serious.
A new housing de¬
Second, the alternative to higher
velopment or a new factory was
interest rates is not simply lower
merely postponed. This was en¬
interest rates, but lower interest
tirely proper in view of the high
rates on a larger volume of credit.
rate of building and the full utili¬
Interest rates are kept from ris¬
zation of men and materials at the

they could not be a major
The fact is that many people
factor in deciding upon monetary
who should have supported a flex¬
policy.
/

ible

not

trade

it

higher rates than from lower rates

Many

most

re¬

millions
policyholders.

and

fact, quite

incomprehensible

or

for the most

are

represent

This attitude is diffi¬

cult to understand—iff*

payers

•

the

not

receivers.

and,

par

for this.

initial

They grew to think that

to

as

effects.

policy
street—that it
indeed was flexible—brought the
stampede to a halt.
■
•
The impact of this episode on
production,, trade and commerce
was
slight.
There was enough
money available for current use in

was

rates

the

of

ceivers of interest

in

interest

make any judgment

been spoiled by the abnormal war¬
time condition
of pegged prices
which had existed for a long time.

part

distribution

13

(2465)

ket in June that monetary

exceedingly hard

income

desirability

There

They had

of

to

the

this

the

trace

and

se¬

that

fluctuation is normal.

*

The Commercial and Financial Chronicle

.

Blyth 6/ Co., Inc.
Goldman, Sachs & Co.

,

The First Boston Corporation

Co.

Harriman Ripley

•

,

incorporated

■

v

f

(

high

Kidder,- Peabody & Co.

hazard Freres 6/ Co.

Smith, Barney & Co.

situation

ly made bank
ily

available

clear-cut

read¬
May, and the
by the mar¬

reserves more

in

realization

Stone £/ Webster Securities

Corporation

Union Securities Corporation
i

A. C.

Allyn and Company
Incorporated

December 9, 1954

Bear, Stearns

.

*

Co.

«
.

14

The Commercial and Financial Chronicle,

*

manpower shortage, is bound
strengthen labor's control of
its sellers' market as far as ' we

.

.

can

into-the future."

see

rities Dealers approved this booklet at their meeting last fall and
authorized its publication and distribution to each member firm.
of

complete detailed study and represents

a

intensive research

tireless effort

and

many

conversion

of

these

"

„

for

a

are

doing

to remain

short time and then find their
wa,y

fellow dealers

your

*

dealer-brokers deSks

on

into

a

wasie basket,

a

rights-issuing corporation.

-tional

almost

'

.

community in the United States, one
individual dealer or a group of dealers, have a close association or
connection with a potential issuer
corporation, and, in the event
that you have this connection, won't you do
something construc¬
tive for yourself and the industry from which you derive
your
living. One hour spent NOW—making a personal call (not a tele¬
phone call) on an executive of a corporation could easily result in
an

additional

Let's all do
cessful

our

conclusion.

M.

M. Scanlan

'

.

the

&

mid:

Co.,

2, Colo.

-

admission

Service, on Dec. 13 predicted that
any tightening of margin require¬

nomic

last

"that

turned

them

the

Janeway

reality

has

Council

of

at

Eco¬

Advisers

around, forcing
consider holding the line

to

by

the

J"?,.

and the

big debt

Hoist,

a

Inc.

Ine

the

debt

he

psychological

Machine> Tool

pay-outs

back

Add

new

EVE NTS

A

Cprnrnissionw as ins rutindm^e s^te for
V.
'

v

Doe. 17, 1954 (Los Angeles,
-

***■

v

Seeurity-Traders Association ol
Los-Angeles Christmas Party at
Hotel Statler.
'
" f
4

^

v

J™"' facilities in Bridgeport to
„,a' aJ) , Brothei s, New York
P'-L,W£° °per/£ P a?tS "Im6"1"
dhf,mU1Pa"! and Toron'° add ,M°nT
„fjanipy in .IC,a

1

Dec.

Result:

j

against

real

their

fancied down-pressures."

the

(2) "Tighter margin restrictions
can't interfere with institutional

hncinAcc
business

1 d

p
the

help

Stock

Market rather
than hurt.

,

a

In

■

special anal¬

buying but,

nightmares

on

dramatize the institutional and in¬
vestment ^character

author

ket."

of

"Struggole for

Jan.

of

Chronicles

,

of

America

institu¬

In

accordance

with

intention

offered

three

exactly opposite from that
planned: if Will gradually, drive

thesis:

.

reasons
-

.

,

r-

-

'

(1) The psychological repercus¬
of the government's official

sion

its

of

building

moulded

•stitutions.)

shower

f

shorts

to

and

.cover

Janeway aJso„ predicted,

er's

market' in

labor

sell¬

"which

is

here to stay and which, because it
arises from. a long run cumuiat-

Official
J.

P.

$3,229,917

1951

Earnings

$211,364

per

...

share

$0.81

.

'614,012

2.23

15,923,380

1952

526,494

34,377,128

1,085,502

3.54

37,143,000

1,496,000

4.53

increasing number

of shares

yearly due to stock dividends

and Dealers




packaging

been

building

]

made
new

a

*^

to;

as

Harrison

V.

an-<

Smith

Vermilye, have been
Investment

t

the

rr.

Warren,

Biltmore Hotel.

April 24-27, 1955
•>.

Texas
ers

for

.<

«

,

at the Shaihrock

meeting
HoteLJ'r-" V.-T -

Mr.

i

Charles

Lindsay have been

recently
of \ floor

Hotel Commodore.

commenced

tile:?J The

Another

Danbury

firm,

New England Shirt Compa

recently

purchased

which

V

wm

-

the

of

shirts and

will

sport

in /

former y

and

employ

r^*ie

new

*

Parkway,

16-17

(Chicago, 111.)

dress

t

Fall

meeting of Board of Gov¬

ernors.

27-Dec.

plant

of

2,

1955

(Hollywood,

Investment Bankers Association

in

the

Merrkt

recently

been

-

Convention

annual

at

Holly¬

wood Beach Hotel.

ap¬

of

J.

1929,

P.

CHAS. W. SCRANTON

joined

Morgan
as

a

1945, he

&

page
was

the

Co.

boy.

made

staff

on

Members New York Stock

an

Dec.

New Haven

Assist¬
Now York

partment, and

Hartford

was

made

ident

in

an

on

Aug. 2, 1948, he

Assistant Vice-Pres¬

charge-

Agency activities.

of

&

the

Fiscal

—

—

REctor 2-9377

JAokson 7-2669

Teletype NH 194

CO.

Exchange

April

On

Is¬

Florida)

one-s ory

has

(Mackinac

National Security Traders Asso¬

Nov.

to

1955

Investment Bankers Association

*

adjacent

Board ' of

bf

ciation annual convention.

approxi-

Eastern Industries, Inc., lcca ed
Hamden

11-14,

Sept.

ma^y 200 peisons.
*

meeting

Governors.

land, Mich.)

Bridgeport plant for

production

Sulphur

Ii-y/:,

Investment Bankers Association

Sept.

Company. New Eng and Shirt
use

Springs)

Spring

"P^ted by Appleby Manufacturmg

,

has

plant

a

was

"

(White

•

The
y,

1955

18-21,

May

and

Officers.

Scherer

•

May 8-10, 1955 (New York City)"

%

'

,

Association ..spring

ant Treasurer in the Securities De¬

Teletype BS-69

(Houston, Tex.)

Group. Investment .Bank-

' -.

Of-

Vice-Presidents;
tit

L.

(New York, N. Y.)

plant.
«

Baltimore

Lord

sociation 29th Annual Dinner at

ma-

plans

the

at

As-

Winter

-

Terry have been appointed In¬

vestment

19,

Square, Boston, Mass.

Telephone HUbbard 2-1990

i

and

annualMid

that Richard W. Meyer and Walter
B.

,

LERNER & GO.
10 Post Office

Vice-

a

Eckert, Martin T. Griffin, and

1,

Trading Market for Brokers

,r.

pointed Assistant Treasurers;

1953

an

elected

_

Scherer to be

Edward

Robert V.

(Baltimore, Md.)

New York Security Dealers As¬

fhin®ryjn a m};Ui"st°ry buildinS
ip
Hartford.
No
announcement

the'^Bridgeport

that

had
.

from

1.82

1954
*On

that

'

Co.< Incorpo-

today

ficers to Assistant

M.

7,453,985

&

.

that

promoted
•Earnings

officers.

11, 1955

Mar,

Cplt,'

from Danbury Industrial Corpora¬
tion.

Mr. Alexander also

and Peter H.

GROWTH Compafly (Electronics)
Net

„

„

nounced

of

Dinner

producing firearms,
plashes, commercial

company-employs about 120 in a
60,000 square foot plant leased

Alexander, President

of, Directors

Clifford F.

330,397 shares Capital Stock

Pa.)

Hotel.

oF^ticTloorjovering and rubber shoe
solmg, has

Changes

Moragn

President.

Sales

presently

production

announced

.

(Philadelphia,

The Daiibury Rubber Companv; V..-1 National Federation of- Finaa» \
the which produces rubber and ptas- A rial -Analysts Societies at tho

...

Board

CAPITAL STOCK

1950

„

institutional- character

p,.,,

real

■

J. P. Morgan & Co.

of

the market

1955

sociation

:•

W. L MAXS0N CORPORATION

a

on-nominal

today's market." /

rated,

This is

in-

reinvestment.- •'Hence,

;

,

CAPITALIZATION:

not

.

.

at

the

on

Thus, theeasy^money^dishwashers

gambled

strong

Denver

Baltimore Security Traders

a

pui chased a tract of more
than 100 acres in Windsor Locks,

more; adjacent to Eradley Fjeld
js

pay-backs

for

14,

Jan. 28, 1955

an-

has

good

4un

be-the

its

Henry C.
We recommend

how

ha

going to

ily upward."
_

his

discovers

ic
is

the,public bor rows, -the:more cah

boom

force fheir favorite targets stead¬

consultant' for -various

industries,
for

mar-

effect

margined

series, and
economic

this

public

,

War Hi Yale's
Janeway

of

■

.

Christmas

the

at

Philadelphia Securities Associa¬
tion annual meeting and elec¬

a

embarrassing accelera-. nounced

,

Economic Mo¬

Eliot

.

Party

pump

(3) The market's short interest, down-payments but on
payroll
"stubbornly
and
conspicuo us'y- continuity: now that the bet has
large," is financed on margin at
been won, the institutions are bebt-okers. Tightening of margin re¬
strictions would "likely haYe an ing flooded by cash flow pressing

Survival," the
History of

'

to

about

the contrary, will

ysis, Janeway,

bilization

and

up-pressures

Association

Cocktail
Club.

-

(This acceleration, incident— new one-story plant adaptable to 1
ally, understates how much higher modern assembly-line production,
the debt pyramid will grow when' Colt's
Manufacturing
Company

forget

para-

Denver-Rocky
Group
Investment
.

Bankers

tion

to

of

^
-

^

(Denver, Colo.)

Club

Mountain
;

>

,,

,

22, 1954

Bond

-

ments

sc'

Investment' Field

In

"

tion.

doxical ly,

.

COMING

v

"

tions with

w o

Forest-

division which designs

this!

to

the

into

Company,

^trd iMt
}.
} ? transportation.^ •jndpetry •
anfd. for spemal commercial appli,

-

payment

supported by

owes.

;

RoiimaH

Stanley Works has sold its cold.

pressure

$1,349,000 tq

ville, for design,: development and /
fabrication of mortar fuses.
' v '

.

'
operations will
•the much .publicized fear of de-.bdda,ned on m New Britain The
pression in 1954. Depression fears' oomp-any continues to operate an
have kept the mass buyer
afraid,;
hot mlU taCl1"
of

cartridges:

That is:

down

pay-back.

by
Air¬

mn|n

it.-

Ar,

ant

p

"

r"f

motion

steady flow of income avail-.
for

United

pnmnaSvt

public: debt

are

of

parts; $284,863 to Flexible
::.y\ Tubing Corporation,
Guilford, for
.air hose; and $159,413 to Bristol

whiwh

cash."

nominal

large

received

and

formerly

Wpv#»n

as to

stitutions with

,

jVew Britain Machine Company by
the Navy
for fuses ammunition

the

T

*

was

,

pay-backs flood the lending in-

as

Tightening Margin Requirements Would
Exert Bullish Market Influence:

the

®Jjch

^

down payments, the^
'sounder" it becomes every rnonih

able

Janeway, economist and
publisher
of
Janewa,y's
Memo

speculators.

as

'unsounder"

pyramid
*

the

Eliot

owned

'The way it works is built into
the structure of the debt pyra-•

Denver

1

in

sets

of

y

#

WttQis„„.

t

squeezing the s lOrts
revealing the self-styled con-

servatives

SCANLAN,

Earl

M

the pressures
and

\

EARL

actually

divisions

for

-Inc.

customers

'^ his" uretasfd

9° K2SL,

*

of income for many years to come.
fair share in bringing this program to a suc¬

source

pyramid

v

.

nn9

Comp

experience of stathe so-cailed 'uri-

zero,

*

■

institu-

an

to

Ws

branch

*

t r

+-.-4.,

1

>■

whatever

COntlJlUltV

#

means

various

number of

a

contracts

to craft Corporation, recent ordnance

.

soundness' of the easy-money debt-

large

every

default

tisti'cal
-

In

fflV6n

,

aircraft

Prf" & Whitney Division of

the

already guaranteed (by population growth plus world politics)
follow.

con¬

.

In addition to

ac_

manufacturing

directly

made

be

debt,' t there

defaults

no

•payrolls, which

ing your full share of the load. In order to accomplish its purpose,
these Studies must be placed in the hands of an officer or director
of

pyramid 4 of
be

~

num-

and

for sorting parts for
assembly.
Eng neering,

trough

rec- -

Lsi

a

trols.

and

and

plant in Norwalk producing

a

industrial mixers and traffic

meei product requiremen s will and defense contracts placed with
begin immediately at the West Connecticut firms include: $5,338,Hasrtford plant of Niles. Sales will* .980 to Remington Arms Company,

in 1955 and the better years which

tO

you

disservice and you are not carry¬

a

ze?o

counting the
inspected

par(s

too]ing

load-

statistical

of

cepted

are

,

allowed

if

"should
:

has

manual

or

,arge number of physi-

a

j djmensj0ns
ber

-

ZentZtha'delault

''public

throughout the nation to assume their just share of this
bring this study to the attention of corporations who
have used, or are contemplating using, rights in future common
stock financing.
'

checking

ear of mass unemployment

u

OH

dealers

are

reS

automatic

u]laneous

to co.lap.e.t, The
t aid can
b

won

,.?6 a fa!?e a

program and

booklets

in^f
that it

is

cause

_

jights. The jo.'nt committee be¬
lieves that, in this report, they have outlined the means to accom¬
plish this end and it is now the responsibility of the individual

If these

^

Pond

-

sion Inspection machines for sim-

Throughout this easy

seivices,

catch

■

common
stock financing through pre-emptive rights
possibility of compensation fpr the security dealers who'

the

resl,de"t'a'

appliances,

and

the bears have been
wistfully wailing for the pubhcs

of

handle

is

money boom

.

.

capable individuals in the investment banking and brokerage pro¬
have given many years of consideration to an improved
the

•

„

,

Bement

now

lie

fession

method

_

-

has

being stimulated
even further by the wave of borrowing for local government pub-

Dealers, Inc.; The Associa¬
tion of Stock Exchange Firms; The National Security Traders
Association; The New York Stock Exchange and The American
Stock Exchange.
■ 1
A joint industry committee comprising a
group of the most

and

autos

which

ganizations, i.e.: The Investment Bankers Association of America;

.

boom,

building,

or¬

The National Association of Securities

.

..

Niles

..

the

between

labor

money

easy

great many hours

a

the part of

on

,

.

.

connection

sellers

With Pre-Emptive Rights" was mailed to dealer-brokers on Nov.
22. The Board of Governors of the National Association of Secu¬

It is

■

-

Company opened.
This 28,009 square foot
acquired the United states plant will be used for production
market, said JaneManufacturing and selling rights of
special
aircraft
components
way,
and- the investors
stock
0f the Sigma Instrument Co r piny, such
jas cooling units for electronic
market is direct.
The
link
beLtd. of <?reat Britain. The English tubes, pressurization units and hy¬
tween tne two is provided by the
produces
Mult.-Dimen- draulic equipment. Eastern also
..

The

the Financing of Stock Issues

.

■

to

«4mu

A booklet entitled "Aids in ;

-

..TihirsSday, December 16, 1954

„

ing

«

Memo to Every Forward Looking investment
Dealer in the United States

v
-K

(2466)

^

Volume 180

Number 5386

.

.

(2467)

The Commercial and Financial Chronicle

.

velopment

The
~

SEC, the Congress and
The Securities Industry

*

Securities

bring to

amendments

thereto, the work of the SEC

"On

impact of Federal regula¬

of

the

securities

markets

destructive, punitive, bureau¬
cratic, or even slow, the sensitive
mechanism

"in

formation

relations

co

and

stment

1 d

u

In¬

vestors,

con¬

govern¬

alike

workers

be

would

injured.
in

J. Sinclair Armstrong

t h i

is

It

had

with

the

con-

s

of the

text
enormous

importance

to

people

America

unim¬

of

of

the

the

peded flow of investment capital
into

industry

responsible
national

that

who are
the
present

we

under

Administration

ad¬

for

ministering the Federal securities
laws
of

working. We

are

that

in

America depends upon
formation

successful

of

ag¬

capital and their invest¬
in
productive
enterprise.

gregate
ment

The securities markets provide

medium

this

for

investment

capital

Recognizing the
capital formation

the

maintenance

the

be

also

several

on

held

meetings

had

proposed

these

amendments.4

*

At

meetings, the broad outlines

Hearings before the Commitee
and

on

In¬

Foreign Commerce, House of
83d
Cong.,
2d
Sess.,

Representatives,
March

19, 1954,

4 Senate

that

all

do

To

and

p.

13.

Hearings,

p.

'

policies

at

time

a

be

must

world

all

when

made

All

the

steady

aims.

by

that

.

is

"There

exempt

adhere

effective—and

to

constitutional
government."1

say

the
to

-

summer-of

In-the

let

$500,000, passed the Senate but

failed in the House. The American

public
Bush

owes a

real debt to Senator

his hard

and

fine

leadership in developing and
ing through to a successful

see¬

for

clusion

these

work

amendments

securities laws,

ing Committee.5 We at
to
to

the

also

want

to

mention

members

staff

the

of

one

very

are

sional session.

want

also

I

the

of the

Dr.

importance.
It

of

1954

Senate

not

was

the

purpose

amendments

of

Murray

the

assumed

Executive

Director

the

of

gressional

we

which was
believe, repre¬
step forward in

purpose

Continued

2

Sess., July 28, 1954,
6 P.

original Con¬

expressed in
on

L.

577,

proved Aug. 10,

83d

p.

Cong.,

-

•

.

••

...

1954, effective

record only.

:

NOT A NEW ISSUE

54,300 Shares

me

r

Foster Wheeler Corporation

in

COMMON STOCK

were

and

free, open

mittee

the

of

the

Senate and

and

terstate

Foreign

In¬

Price 36% per

Commerce

viewpoint of
any less

today is

groups

posals

of
the
the Com¬

amendment

it.

restoration

confidence

during

has been in
the

to

inter¬

small

no

work

Securities and Exchange

the

of

Commis¬
laws

Federal

these

in¬

of

enacted

We

mission.

"that the
responsibility is to

suggested

the

administer

a

;

oAllen & Company

not to write

law,

but that, the Commission

fulfill

Share

"wished to suomit pro¬

tor

valuable function

could

by

co¬

December 10, 1954

operating with Committees of the
Congress and in studying legisla¬
tion proposed by organizations or
of citizens." Se'nator Cape-

groups

by the Congress "in the
public interest and for the protec¬

hart, Chairman of the Banking
Committee, referred to the con¬

tion

tinuing

of

investor."

the

responsibilities

the

of

Committees of the Congress under

and

Congress
This
first

leads

main

of

part

SEC

the

right

me

my

Section 136 of the

into the
topic—the

relationship between the Congress
Commission.

the

and

natural

place

the

for

and

the Commission

the

field

we

83rd

legislation,

1940,

as

sion

which

Coir mittees

informed,
and

securities

Bush,

between

mittee
and

the
had

man

of

man

of

of

regard

the
to

the

House

Congress. He was
Securities Act
He wrote

efforts

failed

had

of

fruition. Without

going too deep'y
into
the
background
of
these
earlier negotiations
for leg'slathe

industry,

we

felt that it was

the Congress to
work out legislative amendments.
approp

iate

When

addressed

Young

President

the

Eisenhower

Convention

Republican

Fe^gration
•From

for

at

of

the

Mount Rushmore,

addrc-ss




to

seems

indeed,

arise

from

me

passed in 1933.

over

as

that

much;

industry

1 New

the

p.

York

follows:
no harm,

and

you

of

have

affected

years

in

Copies of the Prospectus may be

1954,

p.

"Times,'? June

3.

per

Share

obtained from the undersigned,

the

had
per¬

oAllen & Company

de¬

12,

1953,

Hearings

4,

$5.25

the

before a Subcommittee of
the Committee on Banking and Currency,
U. S. Senate, 83d Cong., 2 sess., Feb. 3
and

Price

might

good

12.
2

(#1 Par Value)

the,,

program

which

discussions

sons

when

continuation

a

CAPITAL STOCK

the,.

our

on

and,

with

in

a

National

by Commissioner
Armstrong before the Association of the
Bar of tiie City of New York, New York
City, Dec. 6, 1954.
an

was

'

Chair-

member of the

might be interested,
"It

Texam Oil St Gas Co.

j

j

of these Shares,

December

700,000 Shares

in August 1953, com-;

us

amendment

stock

tion between the Commission and

offer to'sell nor a solicitation of an offer to buy any
offer is madegnly by the Prospectus.

NEW ISSUE

consideration of
with
exchanges and others who;

menting
an

a

Committee

Commerce

revise the basic securities acts. All
these

was

Committee,

distinction

great

proposed legislation to amend and
of

an

Representative

Wolvertdn

Charles A.

Commis¬

tne

in

Chairman of the Subcom¬
on
Securities,
Insurance

Banking.3

Congres¬
kept

been

representatives
industrv

con¬

is neither

The

jurisdiction and in the de¬
velopment of amendments or re¬
lated
legislation.
He
suggested
that
a
program be worked
out
under
the
guidance of Senator

dating back as
been

announcement

its

to

had

there

of

ferences,
sional

in

and

Congress.

For many years,
far

Congress

to meet is

this
during the 2nd Session of

did

the

of

most

The

This

Legislative Re¬

organization Act of 1946 for ap¬
praisal of the Commission's ad¬
ministration of the laws subject

112

11870.
2 Sess., ap¬

1954.

of these Shares having been sold, thh- advertisement appears as a matter of
.

page

Congressional Record, 83d Cong.,

5 100

New

City Housing Authority, by

their

legislation

The

formulated,

Mr. Mc¬

office

of

of the
securi¬

basic scope.

tionship between the Commission
and the Congress in the past ses¬
year,

the

ties laws6 to change or vary

sents
a
great
larly because be played a valuable
furtherance of the
part, in maintaining the fine rela--

of this

House

Andrew Steven¬
son, who advised Representative
Wolverton,
the
Chairman, and
the Committee, and whose guid¬
ance to the Commission in regard
to the legislation and its course
in
the House was of
immense

Committee, Joseph P. McMurray,
the
legislation and guiding it in < the
Senate. I mention him particu¬

York

3.

mention one of

to

members

staff

Committee,

who participated in preparing

sion. In July

the Com¬

much indebted
Mr. McMurray for his guidance
us
during this past Congres¬

mission

/

years.

I

con¬

of

the first,in many

then as a
the Bank¬

and

three

1953,

the Commission

vacancies on

lieve

due

registration provisions of
Securities Act from $300,000

Wagner

member of the staff of

to

methods

—

Commission's

under

securities

of

Senator

from the

in

seeking

in

Congresses
which
enacted
them in the early thirties. We be¬

sion

issues

new

from

parties, praising his fine work
there, both as an aide to the late

and

compromise

no

involved

principle

the

measure

Congress

to
increase
the
amount
under which the Commission may

.

.

statutes administered by

years

the

passed

dissenting vote. The one
which failed, a pro¬

a

Floor

by

process

of

the

Commission

vestor

that
emerged
meetings of his Sub¬

these

of Mayor Wagirer.
Washington he re¬
on
the
Senate
16 Senators of both

left

tributes

ceived

legislative

party's

our

leaders."

in harmony with the spirit of the
Federal securities laws than were

vening

of

appointment
When he

effort has been shared

This

direction

ous

the

one

amendment

Committee of the House that vari¬

that

but

■

of

aware

America's

not

mean

all

posal

the

Commission

legislative skill of
that

Bush

real

a

amendments

from

strength¬

the

entered

and honest securities markets does

the

the

to

is

xt

'the filled. At about that time, we ad?
vised tne respective Chairmen of
the Banking and Currency Com¬
importance of

of

people.

of

the

and

formation

could

industry representatives who

cooperation and harmony between
the
Legislative
and
Executive
Branches. For only such harmony
can
advance coherent, consistent

economic and free political

our

agency

or sponsor any pro¬

it

the

terstate

this:

is

any

un-

with

house.

It

the

indicated,

it reasonably can do to encourage

great measure the success

system in
the

aware

are

tration.

cer¬

behalf of the Congress for

occasions

major purpose of this Adminis¬

a

upon

I

was

ened."3

meetings have reflected

"iftese

on

which

in

Congressman

before

President's

and

markets.

which would weaken such
protection, though conversely, it
might well give thought to areas

3

sumers

on

-

have

I

every t'

never

apply to
the exchanges and

Executive /" After this the Senate Subcom¬
Branches of the mittee, led by Senator Bush, met

Legislative

had

they

as

gram

of
omy could be both parties—a number of whom,
injured in the though veterans in Government,
process..

and

lic, to initiate

the

between

almost

was

the protection of the general pub¬

Government.1

Our

.

envisaged in the stat¬
they were passed, both
they apply to investors in new

acts

pleasure of meeting at the White
House
with
eve^y
Senator and

econ¬

am

charged with administering these

be

balance.

will

you

that I

sure,

preserving for the
public
the
protection

incumbent

off

thrown

whole

and

hand,

am

over-the-counter

tive purpose have been

nve

other

tainly would feel that it

spirit of construc¬
shaped the

capital
i

the

purchasers

June 11,1953, he

branches of

[a]

...

tribute

believed

was

acceptable to the Con¬

was

Senator

securities

ment in these terms:

of

attention for consid¬

gress

which

be

without

as

an enormous

South Dakota, on
the

to

utes when

spoke of the policy of cooperation
between

propose

bill

a

committee

which

the past 20

over

has tremendously improved and has been

were

our

would

of

would

investing

the

free enterprise.
Stresses importance of maintaining securities markets, and
points to vast issues of new securities since the establishment
or the Securities and
Exchange Commission. Lauds coopera¬
tion of Congress with the Commission.
If the

you

appreciate, I

influence in restoring investor confidence in

tion

changes

most zealous in

Mr. Sinclair contends that under the statutes enacted, and

years

technical

eration.

Commission

Exchange

and

whicn

and

By J. SINCLAIR ARMSTRONG*

Commissioner,

of

which might be made to the acts

15

10, 1954

Oct. 10,

16

The Commercial and Financial Chronicle

(2468)

...

Thursday, December 16, 1954

recently articled the fact that the

LETTER TO THE EDITOR:

investment

policies of the insur¬
companies closely paralleled

ance

Sees No

Antagonism Between

those of the mutual funds.

Mutual Funds and Life Insurance
selves against the loss of

Editor, Commercial and Financial
the

or

publication

"Chronicle" of Dec. 2 of

by Robert

Bureau insurance

why the Farm
companies are
entering

the

mutual

article

an

Rennie, explaining

A.

fund

field,

and

an

adjoining
article

by

Claude

L.

Besnner of the
Continental

American Life

trend

toward "pack¬
Norman

age" selling of
life

r.

i/uu,

insurance

and mutual funds, the battle lines
these
opposing schools of

of

thought

appear

to be drawn.

But—must there be
everyone

battle?

a

associated with

the growing young giant which is
the

mutual

fund

industry

is

a

staunch believer in the institution

There is

no

sub¬

stitute for the protection provided

by life insurance.

in

that

some

There is

quarters,

a

feel¬

however,

certain

policy forms which
are offered today were developed
by the sales department and not
by the actuarial department. The
readiness with which such policies
lent themselves to sales promotion
may

have

than

the

not the

been

important

more

question of whether

of

disillusioned

That fad

tors.

there

policy rendered

a

or

genuine

against dying too

and thus

soon

losing the time in which to build
When

still those in

are

to

like Mr. Benner and M.

we

insure

Linton

bert

the

fact.

our-

<J/ie ^Secnm

PUTNAM
FUND

re¬

Al¬

others publish
conclusively that

is

Wellington Fund.

or

not unusual

This

100 years

—

after

flat

was

were

still

being

Street, Boston

the

case

of

dollars

the

in

other.

and

services

they buy me
fluctuate from day to day.
fluctuation

will

be

welfare

and

will be

of

in

purchasing power (which
it vital to me) rather than in dol¬
lars

(which I can't eat).

boom,

He ad¬

frankly that if there is a
the mutual fund will pay

off. If there's

the

seriously affect

insurance

(8)

and

bust, I'll be better

a

-

agents

"pros¬
perity of the industry," and will
Would

he

when it

the

have

security for
these

believe

us

to

comes

most

are

that

building lasting

millions

cans,

system."

agency

of

he

Next

claims

"package" plan denies

blow to the

a

Ameri¬

important

considerations?

that

an

the

investor

in

American
nies

variety of

companies participating
in activities

resulting

from Atomic Science.

own

benefits

greater
than

WASHINGTON 7, D. C




they

do

Mr.

to say, in part: "Now

experts forecast a $20 billion elec¬
tronic business by the mid-60s.
Here are some of the things to
ers,

air cool¬

Low-cost midget

come:

TV sets that hang on the wall

Continued

on

page

every

day

as

many

will

he

insurance

policyholder
Can

we

has

the

in

reputable

or

Can

this

with

tributing

we

not

or worth¬
have done

nasty business of dis¬
millions of pieces of
literature describing

low-level

mutual fund

If

world?

not hope for some meas¬

ure

owners as

"lambs be¬

thing

and

that

nothing

else

can,

both industries will

and grow and will serve
the American people well.
NORMAN F. DACEY.
Norman F.
Financial

is the be-all and end-all of every¬

fields

we

prosper

cerely believe that life insurance

offers

114

State

Dacey and Associates,
Consultants-Trustees,

Street,

Bridgeport, Conn.,
Dec. 6, 1954.

is

insurance

and

be

will

Fundamental Investors, Inc.

guaranteed

disabled, the

be

can

take

into

his

Diversified Investment Fund, Inc.

put

—

in

buying

the

first

stocks

common

bought
year.

also

becomes

kept in force
and his $200 monthly investments
will be made for him. If he wants
to use his "loan value," he can
make

are

more

nine

1954, they bought twice-

last

a

if

and

had

Electric

compa¬

he

that

in

the

What

they
-period

as

same

makes

General

safe investment for

an

partial withdrawal for $1
the money back at his
convenience for another $1. Or he
a

his

mutual

bank

local

fund

and

Manhattan Bond

to pay the

his

6% he'd

pay

Fund, Inc.

shares
borrow

against them—and he won't have
on

Diversified Growth Stock Fund, Inc.

to borrow

insurance

insurance company and a specu¬
lation when it's owned by a mu¬

policy, either!
Under these conditions, aren't Mr.
Benner's objections completely in¬

tual fund?

valid?

inflation

has

been

"conducive

to

sale of speculative securities.
The recent growth of mutual
fund investment companies indi¬
.

.

purpose

of

wish

plead with

cates this." The New York "Times"

my

letter.

Rather

I

Mr.

Benner

and the other sincere, well-mean¬

ing

PROSPECTUSES

men

who

are

stubbornly

re-

AVAILABLE

FROM

YOUR

ON

LOCAL

THESE

MUTUAL

FUNDS

INVESTMENT DEALER.

OR

Cleveland

Chicago
Lot

to

.

121

"package" told them they ing led to the slaughter"?
We are not competitors. We can
didn't have enough protection and
advised them to waste no time in be of great mutual help, each
calling their insurance man. Will complementing the work of the
not Mr. Benner and his colleagues other. Can we not carry on that
show
similar
objectiveness and work in an atmosphere of mutual
hot demand every last nickel the friendliness and respect?

developing

Benner's

points out.

It goes on

ance

these

in

billion

policies alone. If Mr. Benner would

huge amount of such

a

now

months of

stocks.

insurance

life

stocks

$1,-

common

the

1033 THIRTIETH STREET, N. W.

than

Many Americans

now

(5) Mr. Benner avers that the
These comparisons could go on
public's growing consciousness of indefinitely but they are not the

IIOUIC BEVELOPMENT SECURITIES 00.

insurance

hope.

this

*"

m THE FACTS AND FREE PROSPECTUS

the folder

blindness which makes them sin¬

con¬

but

100,000,000

managed investment

ness.

a

month, he can have not only
$24,000 of low-cost life insurance

^cqmmon stock investments.

ture for permission to invest

Inc.

life
to

I call his attention to the fact that

package idea is
rapidly and that it

16 years

dollar busi¬
Electronics did it in three,"

become

like to arrange to deposit $200 per

The five New York "giants"
waged
a successful fight in. the
Legisla¬

designed to provide

more

dared

will be buying it because a trained
salesman of a mutual fund/insur¬

venience of cash and loan values.

disability and the

ward

MUTUAL FUND,

to

sisting the changing times. In the honest
years ahead, they are going to sell while?

of recovery from that strange
occupational disease from which
they suffer, that curious form of

such advantages as waiver of pre¬

mium for

(4) For years, life insurance
companies have been trending to¬

ATOMIC DEVELOPMENT

tists.

hurry," the folder continues.

a

"It took the automobile

The

measured

terms of

mits

in

will

(2) Mr. Benner's company sells
off with the maturing endowment
endowments and annui¬
policy.
As an American and as
Will he accept my wager of
the executive head of a
great,
?100 that he doesn't own either of
growing company, which does Mr.
them and that he, too, has bought
Benner want to bet on for Amer¬
life insurance for protection?
ica—boom or bust?

the

nical language of "The Electronic

Age."

in New York and St.

Louis, has a
fluctuation in full time scientific staff, augment¬
ed by prominent consulting scien¬
a
guaranteed

versus

of

maintains offices and laboratories

Dr. Kennard H. Morganstern is
those endowment
dollars, I can't eat them. I have President of Nuclear Consultants,
to exchange them for goods or Inc.;
Dr. Wilfred R. Konneker,
services—and the amount of goods Vice-President; Karl P. W. Wolf,

get?

funds

corporations whose
in the portfolios of

mutual

a

20-year

mutual

of
are

John

ties.

of

endeavors
securities

But when I get

wonderful way of building an
estate, why don't they do it that
way, instead of buying the cheap¬

"undermine

a

sicist; Howard Haselkorn, Phy¬
sicist;
David
Silverstein, Phy¬
sicist; Cosmo Rutigliano, Senior
Bio-Chemist;'
Waldo
DeVore,
Electrical Engineer; Ralph Kuelle,
Research Engineer; and Robert
Haake, Electronic Engineer.
Consulting
scientists
include:
Jonathan Townsend, formerly se¬
nior physicst of AEC Laboratories
at Oak Ridge, Tenn., and Jerry
Huthis, previously with AEC at
Los Alamos, New Mexico.

a spec¬

Benner

of

number

all life insurance company execu¬
tives own either term or straight

packaging

Putnam Fund Distributors, Inc.

when

likelihood

one

(1) Figured have been published
showing that more than 95% of

can

mutual fund

a

the

questions:

they

Most

on

the fixed-dollar guarantee of the
endowment policy.
He points to

oublished by those who wanted to
believe that it was so.

est insurance

are

the

circumnavigated
globe, treatises proving that

world

funds

the

had

man

life insurance will

in

Corpora¬

questions the all technical and scientific activ¬
fund/life in¬ ities of corporations will be close¬
surance package at the end of ten ly watched by the consulting firm.
Nuclear Consultants, Inc., which
years, pointing out that it lacks
worth

investment than shares of General

Electric

Why is

(7) Mr.

better

a

(3) Mr. Benner states that

cJ tJJoAtvn

a

al Securities & Research

be the Senior Design Engineer; Dr. Mar¬

kind in shall Cleland, Senior Physicist;
Nation¬ Dr. Jack L. Stone, Senior Phy¬

Electronics, says the fold¬
the National Securities Series and er, is not only creating a second
Policyholder will analyze their long and short industrial
revolution, but in many
buys it and a safe investment term potential in the field of other "respects
is changing the
when Mr. Benner's company buys atomic
energy and
electronics," habits and customs of our lives.
it?
Mr. Simonson said.
In addition,
"And Electronics is a business

Instead,

20-year endowment is

a

mutual

ulation

and

articles proving

the

list.

the insur¬

fuse

admit

of

a

is

to

practice

of Insurance Commissioners.

specula¬

life insurance. If insurance is such

i

believed

tion of New York announced es¬

questionable

I'd like to ask Mr. Benner some

We all plan to bqild an estate.
Insurance is intended to protect us

50 State

is

development of its

the mutual fund industry,

incidents of this kind,

is passing but

now

industry who stubbornly

ance

service to the policyholder.

that estate.

specula¬

WHAT

first

is it not a tual investment funds now aggre¬
A
PROGRAM that
relates
the
for insur¬ gating more than $200 million."
"In order to keep abreast of the growth phenomenon of electronics
ance people to smear mutual funds
surance was created solely to pro¬
and estate building through sys¬
vide protection and was never in¬ with the appellation of "specula¬ developments of the Atomic Age,"
tematic investment is outlined in
Simonson
explained,
"we
Would
not
these
tended as an instrument for the tive"?
people Mr.
a new folder
"The Electronics
have organized this new division
building of a living estate. It is count it a low blow if investment
within National's Economics and Fund Investment Plan"—just pub¬
only sales promotion which has men reminded their customers of
lished by Television Shares Man¬
extended its use to that purpose. the abuses in the insurance indus¬ Investment Department."
As the first step in the Divi¬ agement Corporation, 135. South
Mr. Benner states his belief that try before the Hughes investiga¬
La Salle Street, Chicago 3, 111.
tion in the same way that insur¬ sion's organization, he added, Na¬
the growing practice of packaging
One
section
discusses
estate
tional
Securities
has
retained
ance men today constantly harken
mutual fund shares with life in¬
Nuclear Consultants, Inc. to serve building under such headings as
back to the unregulated '20s.
surance is a "fad" which will
Inflation Problems,
pass.
The Equity
as scientific Consultant and Tech¬
I believe that the concept of life
(6) I have before me the of¬ nical Adviser in the atomic
Dollar Cost Averaging,
energy Hedge,
ficial
1954
"List
of
Securities
insurance as an investment was a
Growth as a Medium, and Divi¬
and electronics fields.
fad born in the depths of the de- Owned by Insurance Companies"
"Nuclear Consultants will ex¬ dend Compounding.
issued by the National Association
nression
and
nurtured
at
the
amine the activities and special
A second treats in non-tech¬

men

of life insurance.

ing

rank

as

tions?

IN

company

bosoms

Nearly

bitter-enders at¬

—

Insurance

Company, de¬
ploring
the
current

funds

mutual

home

actly what the life companies do.
This, despite the fact that life in¬

President

■

automobile,

our

the

the

in

his

and

tempt with this innuendo to paint

By ROBERT R. RICH

When it conies to speculation, tablishment of an Atomic Energy
we don't give
something extra to it wasn't the "speculative" mutual and Electronics* Division. hold for us in a savings account. funds who loaned $42,000,000 of
Henry J. Simonson^ Jr., Presi¬
We pay just the premium for the
their customers' money to that dent, in making the announce¬
Texas wild-cat oil promoter who ment, said "the future develop¬
protection. Assuming that casualty
insurance companies
have good defaulted on both principal and ment of atomic energy and elec¬
iriterest. Doesn't Mr. Benner know tronics undoubtedly will have an
investment
departments
super¬
it
was
two
of
America's increasing influence on most of
vised by experts, why do they not that
add, say, 25% extra to our pre¬ largest insurance companies—and the corporations whose securities
are included in the assets of the
miums which they will hold for it was the policy-holders' money!
In the
light of recent financial National Securities Series of mu¬
ap a "cash value"? This is ex¬

Chronicle:
With

our

substantially the same. Why, un¬
der these circumstances, do Mr.
Benner

Norman F. Dacey discusses some views expressed by Robert A.
Rennie and Claude L. Benner in Dec. 2 issue of the "Chronicle"

Mutual Funds

Show¬

ing the favorite 50 stocks of each,
they indicated
that they were

Hugh w. long and Company
Incorporated

Angeles

San Francisco

Westminster

at

Parser, Elizabeth 3, }iew Jersey

Volume 180

Number 5386

...

(2469)

The Commercial and Financial Chronicle

them.

Chrysler, because of the
large short interest persisting
in the stock, and because it is
far more depressed from its;
peak than the others showed
some of the wider swings in
this group but little was ac¬
new high
complished overall.
;

17

On Fishing Expedition

THE MARKET... AND YOU
By WALLACE STREETE

The market's

filling,
old,

backing and low one day to a
two weeks the next, as a faint indication

now some

continued

for

the

most

of

set off

by the elections, the in¬

dustrials refuse to back down
to

anywhere

*

❖

part this week but despite the
in the spirited upturn

Electrical

among

was

the

issues that continued its new

in the limelight

appearance

as

"

❖

equipment firms

*

.

came

Amerada

pause

*

*

.

behavior.

erratic

close to

stalemate

a

is

possible in the fluctuat¬
ing stock market world. Gen¬
as

eral Electric held in

a narrow

level after a rather long hiatus.
band without little around,
generally expected. The 380 Despite its rather high price
or
in sight, to promote any
target for a reaction is still tag, it was able to add to its
spirited action and the more
further away than the record- value
by better than 10 % last volatile Westinghouse con¬
shattering 393 level posted a week and this week continued
bit

over

the

near

fined its movements to an oc¬

week ago.

a

push into historically high casional
gain or loss of as
*
*
*
territory, only exceeded by much as a
point. A rather con¬
the all-time high of 1952 noW
Some Skyrocketing Rails
centrated recommendation by
; Judged solely by the rail only a short distance away. many market analysts of cer¬
The
oil
division
generally tain
average, the carriers have
foreign electrical issues
shared in this new as better value at present
been outperforming the in¬ hardly
to

a bit mis¬ popularity with most of the levels than the American
issues weaving a rather errat¬
leading since some skyrocketcompanies might have had a
ic course that, too, added up
hand in the disinterest.
ting by Atlantic Coast Line
was
*
*
i'fi
chiefly responsible for mostly to backing and filling.
*
*
*
the superior performance of
Utilities
continue
to
loll
this index. Coast Line for rea¬
Profit-Taking Absorbed
around without making any
sons
not too well outlined,
Under cover of a generally serious bid to
penetrate their
was able to post a
peak gain steady to only slightly easier
August high, leaving them the
of nine points one day and
market, some sizable profit- major division that has yet to
follow it up the next with
taking was absorbed and in run the comparisons back two
another eight point hop be¬ most cases rather easily. A
dozen years or, as in the case
fore running into a bit of op¬ few
of the recent runups, of the
industrials, to historic
position.
however, suffered a bit more levels. While this might im¬

dustrials, but this is

*

*

*

than the routine issues. West¬

Some of the other rails put
on

what at best

was an

erratic

the market's technical
position to some purists, it
peak for a quarter cen¬ was about the only impair¬

a

performance, not the least be¬ tury on all manner of rumors
ing Boston & Maine. Despite and expectations, backed up a
a
rather
carefully worded bit abruptly when none of the
statement

by the President of hopes

Delaware

Hudson

&

about

pair

panned out and the
company handled its dividend

ment around.

in

as
❖

*

*

was

Whenever there is any con¬
centrated

Carrington, Jr.,

on

Spencer Chemical which fractional movements
roughly handled the rule in the group.

in

value

on

in

least

at

one

occasion this

volume week, the issues involved that
tends to lighten and, for the give ground do so stubbornly
first time since the day after unless there is dire news to

for the most rather

easily. If
Santa Fe favored

anything,
the

side

easier

wasn't

but

noteworthy on
weakness, and Missouri Pacif¬
ic preferred forged into new
high ground with determina¬
particularly

tion.
*

*

was

a habit this issue
showing around the
for the stock to go ex-

assured,

has been

The week's

Trust,

puzzle

now

crafts

the

was

Pacific

Texas

newish

Some

dividend.

Week's Puzzle

were

of

the

air-

rather prominent

as

limp

as

any

#

*

tribution.
around

It

left

a

value

of

a

bit

rest

more

and

erratic

inclined

than
to

in Cities Service.

the

move

[The views expressed in this
do

not

*

*

*

That the

low-priced stocks

are

Corp., Graham-Paige, Mexi¬
Electric, International

can

tion runup

issue4 which

also

went

the

For

into both

extreme movements

*

the

the

big

motors,

any vailed,

120,000 Shares

Graham Bell Limited
Common Stock
CONTROLLED
PROCESSING

Offering Price: $2.50 Per Share

Copies of the Offering

even

Circular

may

attitude

pre¬

be obtained from

Aetna Securities Corporation

the traders ap¬

trading history, TXL Oil the new model season before
bounced from a technical new taking a firm stand on any of

Ml

December 14,1954

BROADWAY

article

time coincide

those of the author only.}

including

gyrations rather than
underlying cause. Without too parently waiting on some¬
much effort, considering its thing concrete to emerge from




as

ISSUE

*

independents and
makers, a general

mostly reflected trading wait-and-see

brief

any

with those of the Chronicle. They are

began.

*

eventually

spread out to the TXL Oil

necessarily at

unusually thin, such around by full points when presented

$10 for Texas Land, Mining,

All the fanfare

that

rath¬

ground well, with Bethlehem

specific issues are

concerned, except where the
market is

a

Play in Low-Priced Issues

Hayes Mfg., and
but the stock roamed around
Benguet Mining have scored
wildly over a range of half some of the better gains, per¬
again as much.
centagewise, since the elec¬

some

as

Cement issues made

new

Rough Handling

Some

As far

NEW

#

getting an even better,
which the oil properties were albeit still quiet play, than
transferred, arithmetically some of the secondary issues
cut
$132.50 from the $142 is getting more evident. Such
value of Texas Land posted
low-priced items as Alleghany
in the last sale before the dis¬

losses

prompted by too-high
expectations over y e a r e n d
dividend actions, virtually
were

others

in the group.

eral

rights and representing
at present merely sizable graz¬
ing lands. The spin-off of four
shares of TXL Oil Co., to

$

wider

the

weakness, Chance Vought

on

Land about

shorn of its min¬

of

Some

every
issue reporting good
profits being more or less ex¬
er
unanimous group retreat
pected to sweeten up the final
highs were whittled down a but it was a mild affair for 1954 declarations.
Conversely,
what steadily with a couple
bit, nevertheless they con¬ the most and not illogical on these
high expectations con¬
of sizable losses stacked to¬
tinue to outpace the new lows top of the steady advance that tinue to
inspire profit-taking
gether. American Telephone,
had
carried
them
to
high where the action is good, an
by 20-to-l or better.
too, eased from its new eightlevels. Steels stood their ailment especially apparent
*
*
*
year peak once the dividend

time
*

>js

si:

selling,

session, but larity, was one of the casual¬ this week. And while the
then the stock gave it back ties of the week, easing some¬
one

were

rather

mutual prob¬ routinely.
*
*
#
lems with the B. & M. people,
election, fell well under the speed the descent.
traders saw in it enough to
DuPont, not too removed
#
*
boost B. & M. well past 10% from its last flurry of popu¬ 3,000,000 level on the easiness

conferring

(left) Manager of the Municipal

Haupt & Co., Juan (Tito) Alberto Wirshing, (center), President of Don Q Rum Distilleries, Ponce, Puerto
Rico, and Estaban (Chilo) Bird, of Banco Credito Y Ahorro Ponceno, San Juan, Puerto Rico, are shown with a 54 pound sail fish
caught by Mr. Bird on a recent fishing expedition off San Juan.
Another member of the group, Brainerd H. Whitbeck, of The First
Boston Corporation, left the group a little earlier at sea to
augment his supply of sea-sickness tablets.

Union, which was carried

ern

to

William G.

Bond Department of Ira

NEW YORK 6, N. Y.

^

18

The Commercial and Financial Chronicle ..". Thursday,

(2470)
»

i

-

.

«■

«►

»

r

\

"f

A. T. & T. executive expresses

for 1955

in

the

much

insurance

view that, barring any major
*

in

we

to

we

are

alike

in being service industries,

.

Craig
.

organizations

are

get
communities.

off their
another similarity,
we can

thic

wifh

of

that

I

of

locf

As

Still

both need;

we

things to

come.

susfffisted

something about how
in the Bell System try to look
ahead, and what we think we see.
say

am

quite

willing

do

to

country

scientifically, let

me

we

estimate

discovered

^lngetCoerain°"

result

I'm

An

assistant

business.

We

people's feet

those

town

needs

each

•An
nual

one

quite

that

sure

The

only hedge rm obUged toumak,e is

the'as^umdtTon orwfmaior

assumption of no maior
in
international situa-

por

country as a whole, we

-

get¬

pretty plain that they like to dial
their calls. That's the fastest, most.*

war's

the

At

65%

end

of

our

22,000,000 telephones were dial.
Today? 83% of the; 43,000;000 are
dial. Five years hence the propor¬
tion will be 95% or more.

moderately

improve

in

an(j ajg0 1959. How much?

eacb year as we n0w see it;
at
end of the period

5%
SQ
iU

A

1955

Maybe

«r»

IT,,' 1 1

to

in 1956.

where

see

are

community

study

Perhaps part of the reason is that

at the An?

autumn a year ago showed no

we

address by Mr. Craig

Meeting of the Life Insurance Asof
America, New York, Dec.

gain. In 1955

We

,

,

expect the total
...

volume of long distance conver-

1954.

Telephone users
themselves
are dialing directly about a quar¬
ter of the calls that go outside
their local area. Most of them are

month

people dial many of their

where

By

1965

,

well.

that

expect

we

„

in the

folks

you
will be dialing

room

majority of your long distance

a

cross-county
and
cross¬
This means that going

country.

anywhere you want to go by tele¬

phone will be easier and faster.
Now

service

from

turn

to

dollars.

to

As

insurance

com¬

.

instead of $1,300,000.
would be sure that day

owners

I

fore¬

that instead of having obliga¬

tions

thing

of

a

mere

$300

billion

of

(or some¬

than the entire na¬

more

tional debt), you are

having been sold, this
of record only.

advertisement appears as a matter

going to be
responsible for $500 or $600 bil¬
or whatever it may turn out

lion

them

in

tv/o

is

One

ways.

via

Professor

little.

sponded

other

The,

is

via

Now I've talked

'

.

United States Lithium
Corporation

lack

uncertain

this, A.
happy to
that

Of

have

say

You

to

had

a

few

know

a

that

future

some

of

the

have
William S. Paley

Prospectus Available

Peter
31 Nassau Street




Morgan & Co.
'

Dlghy 9-3430

New York 5, N. Y.

far

afield

to

if

but
get a

to

done

the

our

had

anyone

really intimate
relationship be¬

better

than

visit

Commission offices after

the

way.

industrialized nations of the West¬

that

World.

never

in this

our

the
not
our

work

had been about six months under

faces

United

even

trying to look into
and chaos, he could

tween

Ma¬

severity

days

wanted

Prob¬

lem

how

view of the close

today
a

a

his forecast of the

area

see

can

hectic

Quite
people

terials

estimates

and

assurance,

controversies range.
I have already referred

satisfactory
amount.

Mason,

fertility of American womanhood
displays his usual self confidence."

am

ours

seems

S.

Commission, re¬
saying:
"Professor

by

general

States

Not

and,

all

Our assignment
had

we

was so

broad

consider not only
materials
metals,
to

long ago, a all kinds of
Economist., minerals, non-minerals, wood and
Professor Colin
Clark, wrote a water,
fuels
for
energy,
and'
cinque of our report. For some
energy itself—but also, as above,
things he praised us; for others ha "the fertility of American woman¬

ern

distinguished

took

was

—

to task. But he started his

us

learned
it

very

British

comments

by saying that
obvious, from every aspect

of the President's Materials
Commission Report,

that

Policy
of its

one

principal

objectives Was "to in¬
opinion."
against a govern¬
ment
report,
this
is
a
grave
charge. Let me meet it head on.
fluence pubiic
When made

hood."

We had to keep our eyes
Peace, but not blink at the
possibility of extensive war. We
on

had to think of

our

domestic

own

and also of the re¬
sources
of friendly nations, and4
how. policies relating to invest¬
resources,

taxation

ment.

tariffs

and

might

affect their world production and
We had

flow.

to

On

ponder with much

it's

them

a

lot of figures.

clear that

we

in

than

has

more-serious¬

how

many

million

Branch of

been

Government, too.

suffocated

most

mimeograph

an

At the end of one hot and
discouraging summer afternoon;
Ours was not a predictive re¬ as I was
going home, I overheard
port; we indulged in no prophecies. a corridor conversation between
A Predictive Report

we

paper.

,

did have to make assumpt

tions, and ~ then draw
hoped
were- sensible

what

we

lines

of

That's what all our
and study tell us is

two. young
which

one

"I think

tion growth; others were the size
of the working force, productivity,

more.

know

ever

in evidence words we acquired just by writing
yet. And the thinking in the Con¬ bur own preliminary sub-reports,
gress must be paralleled by simi¬ or forking papers, or memoranda,
lar thinking in business and in¬ or
in acquiring
the reports or
dustry— and in the Executive criticisms of others. We were al¬
ness

just

as

men on the staff, in
of the young m£n said:

ought to take? all files,
they are, and ship the

we

whole works off to Russia!"
Just

I

as

was

wondering if

.

I

had bumped into a dramatic ex¬
experience
the length of the working week, ample of subversion, the young
right and necessary to meet the
etc..On population, as of 1951/we man went on: "Those files would
tremendous growth that is surely
had many conferences with the
get the Russians so mixed up they
ahead in this country of ours.
Bureau of the Census, and as¬ wouldn't know what to dq for the
sumed a U.S. population figure, for next 50 years."
Our Impact on the Community

1975, of 193 million persons.,Al¬
immensity of ready that estimate is beginning

I've been quoting figures partly

Offered at 10c Per Share

Edward
of the

diffusion.

projection from them. One as¬
sumption had to be about popula*

many

.

member

Clark's statistical

the Bell System are gping to stake
more
billions on the future —

NEW ISSUE

our
figures ought to be
by 22%—"on population
grounds alone." To this our own

direct action. Of this, ours has had
so
far only a

But

to be.
From

Morgan & Co.

abundant and efficient economy.

an

.

.

be owned by two million

may

life insurance in force

Offered at $1.15 Per Share

watchword of

Government reports, when they; that all
have any iesuits at all, produce boosted

study commodi¬
behalf of the entire Commis¬ ties, one by one. We had t6 think,
sion, I enter the plea of guilty—/ wicn the aid of the Military, about
not just plain guilty, but guilty the
safety of world supply lines,
with premeditation. All we can do and how a rupture in these might
AT&T New Construction Outlays
here is throw ourselves on the hazard the security of the United
Our expenditures for new con¬ mercy of the court, and claim "ex¬ States.
We had
to think about
struction during the nine postwar tenuating circumstances" — the
technology as a resource. Nor was
years have averaged about $1,200,- extenuating
circumstances being that all.
000,OGO a year. They will be close that if public opinion is not in¬
-Preparation of the Report Was
to $1,400,000,000 this year, and -ap¬ fluenced on behalf of the materials
Rough Going
proximately the same next year. problem, our high standard of liv¬
Of special
Now it would be very pleasant
interest to you, our ing is going to begin to decline;
need for new money is roughly and even more than that, our se¬ to be able to tell you, that all
in the order of $200 million every curity as a nation is going to be this went smoothly—but'in fact it
three months.
threatened by a condition of our did not. It was rough going. With
It would be pure speculation to own making,. Grave problems will all our stubborn facts and prob¬
guess
just
when
Bell
System also face the rest of the Free lems we worked and worked, and
capital will total $20 billion in¬ World. These are matters for the after six months our files were
stead of $11 billion plus, or when Congress of " the United States to full to overflowing. No one will

is coming—just as you must

Corporation

as¬

Bell System has gone from $4 to
$11V-2. billion — an even greater
proportionate increase.

see

Common Stock

1,495,000 Shares,

it,

understand

life

the

of

sets

I

panies have grown since the war
roughly from $45 to $83 billion or
thereabouts. Total capital of the

share

Rocky Mountain Uranium

Peter

distances—

will be by the end of the

or

But

All these securities

short

but there are now about 25 places

we

210,000 Shares

,

relatively

over

oKnnf

Un

the nation will be operating about

was

look

seconds.

think industrial activity is going calls,
tG

U"iverSe' "It'S

who

V

on the Report of the President's
Commission, entitled "Resources for Free dam,"
tells of the difficulties in making estimates for the future
regarding such matters as population^ growth, size of- the
working force, produc'i/ity, and use of materials and resources.
Sees signs in the slowly ri ing real costs, of materials that
undermine our standard of living so slowly as to be unnoticed,
but which may in t'me be catastrophic. Points out choice now
is between voluntary and forced planning. Concludes, how¬
ever, though squandering of resources is. an evil, it is stupid
to hoard them, and an economical
consumption should be the

the

on

to keep

going

.

Industrial Activity Will Improve

OX

socat'on

8,

is

against

taking them —
Another important factor is our
how much money they have to
long distance traffic which is setbuy what they want when they ting new records. This is now runget there—and how many addi- njng about 10% ahead of a year
tional folks of all ages will be
n
whprpa<? * or 6%
has beGn
around next year and the year ago—whereas 5 or b a- nas been
after that.
" nearer to our normal increase.
In

also

Pajey, is commenting

Materials Policy

ting better. People have made it

on the peak levels of 1953
standing
For the Bell System we are also
by said, "Is that so, Professor? optimistic. This year we shall
How can you tell?"
gain over 1,850,000 telephones—
The
great astronmer replied, about as many as last year. Next
"My feet hurt."
year we expect to have a gain
Now just as he tried to take in
excess of two million teleall the important facts into ac- phones and I won't be surprised
count, so do we in the telephone if we exceed two million again
.1

as a

service

say more about thatlater.
First III stick my neck out and
do some forecasting as requested,
Fll start with the immediate fu-

remind you

r£,-i f eminent astronomer who

has

Mr.

faster
than
the
whote and we think

longer cross-country calls as

laid a visit to Mt, Palomar Observatory. He peered long and
intently through the big telescope.
Finally he said, with the air of a
who

Chairman, Columbia ErOadcasting System

good, substan¬

a

that will continue.

that,

but apropos of how to look ahead

man

grown

ways

the town—*

' ture and go on from there.

nnint

we

I

Chairman, President's Materials Policy Commission, 1951-52

tial, healthy growth. We have al¬

by town, add them up, check the

T

members

your

foresee

alike

to look ahead ,and make the best
forecast

we

long-term growth
Along with this there's going'
trends and the general business
to be a great increase in long dis¬
in being big. outlook. In this way we judge
tance dialing. You may not realize
We are alike what the overall demand for teleit but right now the operators are
in that everyphone service may be.
dialing half of all long distance
thing we acThat's one side of the equation
calls straight through to the dis¬
complish
defuture. The other side, as
tant telephone.
: i
/
*
pends on.jk>w j>Ve
aireacjy indicated, is the same
When.you place a call with the
^ G i
^
% in our business as in yours—the New York .operator .for a San
hundreds of
character
and
capacity of our Francisco
number, she dials that
thousands of
pe0piej not merely their tech- number direct from her switch¬
m e n
and
nicai
abilities,
but
what they board here in New York and the
women in our
think and what they want to accalled telephone in San Francisco
respective comDiish
rings automatically in a matter of
along in each
^
..
.
.
.
We

one

So

with you.
' Vall local activities that may have
For instance a bearing on communication needs,

F.

By WILLIAM S. PALEY*

43,000,000. By 1965 we think the
number will be at least 55,000,000;
probably more.

the extent and direction of growth

notes of the industries in

compare

v.

Cleo

„

have of dwelling units and shops and convenient
and
most
accurate
And that en- other
businesses—the prosperity
way of completing a connection.

common.

' me

and

For the Nation's Grewth

Bell

the

ended

war

business

telephone

courages
.

life

the

When

moderately during next two years.
Says "we in A. T. & T. are optmistic." Expects A, T. & T. to
spend $200 million in each of next two years in construction.
Stresses importance of "big business keeping intimacy with
the people" and thus create a climate in management that
nourishes our way of life. Concludes "the bigger we grow the
more
we
must make sure we stay small in the community."
in

further

little

a

~

System was serving about 22,000,000 telephones.
Today we nave

Telegraph Company

whole is going to improve

You

look

to

Now

ahead.-

change in the international situation, industrial activity as a

..

Materials and Resources

present record levels.

By CLEO F. CRAIG*

President, American Telephone and

above the

10%

to be 5 to

sations

Business Prospects

December 16,1954

to

stress the

sheer

mainly to lead up to to look too low. The same Profes¬
on my mind; Exact
sor Clark I spoke
of is sure the
amounts don't matter. What really
estimate is far too low, and said
matters to me, as it" inust to you,
*An address by Mr. Paley before the
is that what we are doing has
them»

but

what is most

Continued

National Planning Association,

on

page

120

ton, D. C, Dec. 13, 1954.

Washing¬

I tiptoed away.
My mind was
relieved about the subversion, but

it

was'

not very much set at rest

report. There was al¬
together too ihuch truth in what
about

the

our

young

But

—

man

said.

time brings forth many

Continued

on

page

122

Volume 180

Number 5386

.

.

The Commercial and Financial Chronicle

.

(2471)

10

Kingdom of Belgium Bonds Offered

Bank and Insurance Stocks
By H. E. JOHNSON

This Week
In

holders

year,
have

of

bank

several

Bank Stocks

—

reviewing events of the past

be

to

reasons

$2.00

the present payment

be

pleased with their investments at
this time.
In

the

first

_

conditions

place,. operating

have

been

Despite

generally

easing

some

share

a

There
week

favorable.

annual dividend of

put an an

stocks

the

of. $4.00.

good

The

Trust.

of

This

cents.

Manu¬
raised

bank

quarterly rate from
80

last

news

stockholders

facturers

to

also

was

for

with

compared

as

75 cents

would

indicate

in interest rates, the loan volume
been
relatively well main¬

an

tained^. With the aid

tributed in the past 1"2 months.

has

of

annual

share

distribution

of

$J.20 ~a y

compared with $3.00 dis¬

as

-

larger
income from
investments-has7 improved.
To¬
gether with other income, gross
earnings in most instances should

Earlier

therefore

clared

ah

which

together with the four

volume

over

a

a

funds,

show

substantial
*

year ago.

Even

"

gains

•

~

though operating ex¬
risen, the increase

have

penses

Another
banks

to

cruals

$3.50

to

bank

actions.

In

1953 many banks took
tax losses
which tended

to reduce
the

their

method

such

of

liability although
"accounting
for

transactions

siderable

showed

con¬

variation

among differ¬
This year, on the

ent institutions.
other

hand,

taken

substantial

Once-again

banks

many

the

have

capital

method

gains.

of

han¬

dling the tax liability has had
marked

impact

vision.

^, y

Regardless

v

the

first

for

net

the

this,

however,
issued

reports

nine

that final

months

year

of

for

indicate

,

operating earnings

^ should

this,

1953.

On

the< capital

established by

gains
banks from

many

security sales for the curuent
riod

are

1954

.should, be

substantial.

years fo.r bank

long time.
Of

matter of

In

nounced

New

to

In

that

•-*

.

record

City

enlarged their

intention

or

of

cash

an¬

doing

distribu¬

dividends

stock

or

outside

areas

most

of

erally

sharing

are

in

gen¬

the

im¬

earnings being realized.

of

Bank

extra

an

next

clared

is the

year

a

the

$5.00

indicates

quarterly

$23.00

or

and

little

a

the

A

same

banks

of

the $22.00
*/

,

the

!

other

prior

to

the

New -i
—.V ;In

payment

operation, which is the first of its kind,
of Belgium on Dec. 15 borrowed
$5Q,GG0;060 in a combined transaction with the

last

Oc¬

investment

market

quarterly

rate

transaction

consists

-

financing

raising

t

'

the

T

National

their, '

:

.

k

thein pay-r

this year.

increased

of

paid in 1954.

as

than

increased

City
tober,

dividend

1953.

number

de¬

as

payment-of

a

more

distributed in

York

same

which together

ago

year

with

the

.<■

from 55 cents to 60 cents.
In

its

15

cents

quarterly

to 55

extra

rate

cents.

and

from

'

/

-

raised

50

cents

•

$1.50 and

the

and
of

World

E. I.

Shelley Adds

announced, its

DENVER, Colo.—Alma P. Gorwith

E. T.

Cra¬

January, 1955.

■

is

mer

in

other
the

with

increases

year

made

should

stockholders

happy.

the

action

spread

has

in

more

wide¬

indicated

Boston,

California

course

have

above.

Chicago

also

been

and
more

Building.

(Special to The Financial

In

view

of

for

wonder
been

this

next

that

giving

and

Barney & Co.; and Perry Hall, Man¬

Partner^ Morgan Stanley

& Co.

A.

G.

has

joined

Edwards

&

Louis. Mrs. Ritchie

Financial

(Special to The Financial Chronicle)'

Taussig,

Blosser

&

Day

He

&

Co. Inc., of St.
formerly with the

was

office

of

A.

G.

DETROIT,

the

staff

Sons

was

of

St.

previously

(Special

to The Financial Chronicle)

DETROIT,
is

connected with the local office of

B„

Fusz-Schmelzle & Co.

McDowell,

Equitable Building.

have

account

of

Mich.

now

Alvin

—

connected

Morton

&

Co.,

_

.

ST.

LOUIS, Mo. —Carl IL
Brooks, Norton E. Claypool,^Ed¬

»

A.

ward

with

Penobscot

Tracy

L.

McGrath, and

have

joined

the

this

advertisement appears

tions

New

among

and

prise

that

was

Hanover Bank.

as

no

a

shares■

matter

are

available for offering

of record only.

themselves recently.

one

nine

additional

held

and

two-for-one.
will

be

to

1955.

was

It

shares

a

week

on

be

share

Garvin, Ganle! & Go.

The

ago,

for

stock

at

held

also

sur¬

split

Garvin,

of

in

January,
that

issued

the

would

&

bers of the New York

ican
annual

Bantel

Co.,

Broadway, New York City,
Stock

proposals
the

stated

when

each

300,000 Shares

To Admit De Paola

the

stock dividend

These

voted

meeting

new

a

City

a

by

made
A

bank announced
of

York

something' of

the

Exchanges,

admission

as

De

firm's

Paola

is

Federal

Jan.

manager

funds

Century Uranium Corporation

Amer¬

announces

general

of Ralp De Paola on
Mr.

and

120

mem¬

COMMON STOCK

partner

1, 1955.
of

the

department.

OFFERING PRICE: $1.00 Per Share

Penington, Colket Co.
Adds William D. Hall

NEGLECTED BLUE-CHIPS
New York

PHILADELPHIA, Pa.—Pening-

City Bank Stocks

ton,

Inquiries Invited from Dealers
and

Colket

&

Co.,

123

South

exchanges,

Members New York Stock
Members American Stock

Bell

Teletype—NY

Y.

1-1248-49

(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank 'Stocks




ciated

active

Telephone: BArclay 7-3500
-

that
asso¬

with

them

representative.

Exchange
Exchange

120 BROADWAY, NEW YORK 5, N.

announce

William D. Hall has become

Laird, Bissell & Meeds

Underwriter

t

Street, members of leading

stock

Institutions.

Broad

in

the

as

a

JAMES ANTHONY SECURITIES CORP.

registered

37 Wall

to

joining

Co. he
A.

was

Street, New York 5, N. Y.

Mr. Hall has been
investment

securi¬

.

ties business for many years. Prior

Penington,

Colket

&

associated with George

Bailey & Co.

December 10, 1954

James J,
staff

ci

Slayton & Co., Inc., 408 Olive St.

As all of these shares have been subscribed for,
and

Bankei J
.;■/

little

shares

Floyd <tYT,

>" (Special to The Financial
Chronicle)

Building..

.

C.

—

Slay ton Co. Adds Four

B. C. Morton Co. Adds

Gerard

&

Mich.

affiliated with Straus,

Edwards

Sons.

of

now

One of the most recent declara¬

banks

,

.

Straus, Blosser Adds

■

Chronicle)

Knox is

JACKSONVILLE, 111.—Marie W.
Ritchie

to The

pros¬

is

better

a

the

it

year,

bank

aging

Chronicle)

liberal.

pects

Standing (left to right): Burnett Walker, Parther, Smith,

; SPRINGFIELD, 111. —Edgar J.
Reilly has become associated with

Louis.

Joins A. G. Edwards

bank

Of

affiliated

local

earlier

make

been

than

Banks

of

some

now

(Special

.

den

together

States; John M. Young,

Partner^ Morgan, Stanley & Co.

With Taussig, Day Co.

v

.

(Special to The Financial Chronicle)

Shelley Company, Ernest &

*

Baron Silvercruys, Belgian

-

-

intention to split the shares two-

These

(left/to right): Eugene R. Black, Presi¬

Ambassador to the United

The

an

for-one

in

Bank.

.

increased its quarterly rate from
to

Seated

dent of World Bank;

offering of $isl),000,U00
Belgian bonds by an underwriting group of 71
investment firms headed by Morgan Stanley &
Co. and Smith, Barney & Co.; and of a
$20,000,000
loan by the World Bank. *
"

In: November New York Trust

v.

an

Kingdom

of

October the Chase Bank de¬

clared

New

bank. stockholders

proved

National

also declared

of

Jong,' $1.25

York, the action has been similar,
so

First

York

was

time.

this week.
The payment
$3.00 to be distributed the first,

Here- the

at

are

York

larger

stock

splits.

all

signifi¬

stockholders

their

through

tions,

a

dividends.

of the banks have

payments

that

of

stockholders^ however,,

distributions

levels.

ih

*•'•« i

♦

to

at

was

earlier

pe¬

the> best

greater ^immediate

cance

so

of

earnings in

is the
too

All

*•

one

amount

same

the quarterly rate

as

The

compare

favorably with those of
top

pro¬

1953 the

ments earlier

of

operating

the

tax

upon

de¬

$2.00fa share1'

distributed but the extra

New

a"

_

payment

the. bank

of

extra

In

larger,

largely because of security trans¬
sizable

week

,

was

bank

extra

an

quarterly payments of $4.00
brings the total for the year to

ings. Taxes under these conditions
be
higher; however, ac¬
from

New;. Yorkr

Bank of New York.

was

this

$18.00.

vary

the

make

recently

has been less than in gross earn¬
should

of

Telephone: BOwling Green 9-4290

20

The Commercial and Financial Chronicle

(2472)

plans

appeared

Nov.

"

e

News About Banks

At

NEW

Bankers

and

OFFICERS, ETC.

REVISED

of

J.
■

U.

Boston, Mass. voted to
the

to

Hawkins

John

and

Smith, former Assistant Vice-

of

of

Exchange Bank, of New York, it
announced on Dec. 10, by N.

Latex Corp.

Baxter

of the Board of

Brooklyn office.

search Institute and

United

Cerebral

Associa¬

Palsy

tions.

of stock

Present

shares

f,!

their

In

shares

the

of

of $10

capitalization

is

positions each will be
signed a group of offices in

Company

and

the open¬

cess

Trust

Manufacturers

bank's

plan

as¬

of New York, announces

the

ing

regional supervi-

of

sion.

V,*

At

the

*

*

annual

stockholders

of
of

Bank

the
the

Manhattan Company of New York
Dec.

on

J.

7,

Chairman,

Baker,

Stewart

following

the

made

"There have been

during the

conversa¬

no

concerning
the
possibility of a merger of
Bank of the Manhattan Company
into any other bank. There have
been conversations concerning the
possibility of other banks merg¬
ing into or selling their assets to
year

Bank of the Manhattan
but

of them.

come

ize

nothing

yet

as

I

Company,

definite

has

you

real¬

these

con¬

am sure

discussion

any

of

versations at this time would
be

good for

not

bank, would

our

be

unfair
to the other banks,
and
might make it difficult for us to

continue

the

Street,
Forest
Hills,

Drive,

will be Manager

Albert Rofman

of the new office,
Hines,
Assistant

Leonard

and

The opening of this of¬
brings the total number of

♦

*

of

Board

Trustees

of

The

Bowery

Trust's

offices

to

Of the

total, 16 are in Queens
County.
After the opening day
(Dec. 11) the new office was open
from 9 a.m. to 8 p.m.; regular
banking hours are from 9 a.m. to
The office also will be open
from 6 p.m. to
8 p.m. Monday
evenings.
*

the

At

regular

Board

of

tional

City

held

"

*

*

meeting

Directors

Bank

the

of

The

of

of

Na¬

New

York

Dec. 14, W. Carter Chap¬
Jr., Walter F. Fitzpatrick,
Christopher R. P. Rodgers, Theo¬
dore C. Serocke and Joseph Ste¬
fan, formerly Assistant Cashiers,
on

man,

appointed

Assistant

Vice-

James Allan, William
Boesling,
Jr.,
Richard
W.
Freund, William F. Hildenbrand,
William K. Hora, S. Lowell Hoxie,

Harold

and

H. Skinner

Presidents

W.

and

Schmidt,

appointed

ViceMyrtle

M.

Hunt, Assistant Vice-President;
Rudolph J.
Prahst,
Chief Ap¬
Albert S. Doolittle and

praiser;

Cortland O. Burckhardt, Assistant

Treasurers; Ralph A. Moller, AlW.
Neumann, Howard
E.

win

Barker

and
Martin
W.
Hiller,
Deputy Controllers; Robert Lundon, Principal Executive Assistant.
Mr.

Cordes

and

Mr.

were

promoted
Vice-Presidents.

Mr. Doolittle

Schmidt

from

Assistant

Miss

were

Hunt

and

and

principal
Mr.

Mr.

Hiller

Executive

Barker

from

Assistants.

formerly

was

Chief

Clerk.
*

Savings
York,

*

*

Bank

held

\

Women

their

of

Annual

Christ¬

Tea

mas

on
Tuesday, Dec. 14, at
Starlight 'Ballroom
of
the

the

Waldorf-Astoria, New York.
500

members and

attendance.

It

guests

is

at

Over

were

this

in

are so¬

licited by the Welfare Committee
headed by Mrs. Frances

Lange,

Savings

Secretary of the Bronx
Bank,

to take care of
hospital visitations with suitable
gift distributions to adults and
children in various Metropolitan

hospitals
but

not

only

throughout the

the past year,

made,

Christmas

at

During

year.

12 such visits

covering

1,200

were

patients.

Miss Pauline

Sussillo, of the East
Savings Bank, is Chairman

River
of

the

and

Christmas Tea

Miss

Committee

Millicent

Trichler, As¬
Secretary of the Dollar
Savings Bank is President of Sav¬
ings Bank Women of New York.
sistant

Miss

Meta

press

representative.

E.

*

Tompkins
*

is

the

Chapman, Fitzpatrick,
Boesling, Hoxie, Mendel¬

sohn

of

Dr.

week-end

Charles

director

of

the

Skinner

and

with

the

Bank's

Department;

Personal

Mr.

of

with

Personnel

Administration; Messrs.
Freund

brand

and
Hilden¬
Check Processing

with the

F.

election

McKhann

bank.




Dr.

as

a

Mc¬

of

value will be of¬

par

share

new

shares

the basis

on

for

each

five

14/15 shares, at a price to-be

at

approved

the

annual

share¬

holders' meeting.
-

.

*

*

The

Board

*

of

Trustees

of

The

Hanover Bank, New York has de¬

clared, subject
to
approval
of
stockholders, a stock dividend at
the

rate

of

share

one

for

nine,

increasing
the
capital
$27,000,000 to $30,000,000,
,

The
of

Keansburg

National

Keansburg, N. J., which

Bank

Oct.

on

21 increased its

capital from $100,000 to $200,000, by a stock divi¬
dend of $160,000 has further en¬
larged its capital to $250,000 as a
result

of

the

stock.

new

fective

$50,000

The

1.

columns

Dec.

*
-

of

of

earlier

in¬

in the capital was noted in

crease

these

sale

The latter became ef¬

Dec.

The

2,

*

au¬

■

■}

The stock dividend is to be
paid
15 to holders of record
at

Feb.

the close of business Jan. 21.
*

*

Sligo

that

of $12.50 par
The Fort Neck

Seaford, Long Island, N. Y., orig¬
inally offered to the bank's stock¬
holders at $20 per share, have
been subscribed for.
Holders
the

capital stock of the bank

2261.

page

*

National
Bank

Bank

of

of

Rimers-

capital

$50,000, were
placed in voluntary liquidation ef¬
fective Nov. 20, both banks hav-'
ing been absorbed by the First
Bank

Trust

&

Co.

Oil

of

City, Pa.

of

offered rights to subscribe to these
additional shares on the basis of
one new

share for each two shares

rights

These sub¬

expired

Dec.

Proceeds will be used

to

capital

bank

funds

dental

to

of the

bank

of

opening
at

the
a

third

7.

increase
inci¬

branch

Massapequa Park.

A previous item as

to

the bank's

its

before

or

additional

basis,

Maurice

*

*,

t*>#»

Dec.

on

9

banking office

Monroeville

opened

in

its

suburban

Borough,

center

of

ond

of,the city's expanding resi¬
dential areas.
The official open¬

through
the
entire
facility.
They received

banking

souvenirs and

prizes.
of

awarded door

were

John A. Byerly, President

Fidelity, and Norman Sander¬

remaining assets to be divided
L i b e r t y's stockholders
be between $4 million and
$5 million, or between $400 and
$500 a share." Liberty has 10,000
shares of $100 par stock outstand¬
among

"will

ing and about 45 stockholders, ac¬
cording to Mr. Cohn. He will be¬
come

the National Bank

National

Directors

*

of

meeting
Vice-

Harris

*

National

Baltimore,
capital

Md.,

stock

placed

in

effective

*

r.'

Marine

Dec. 8, elected

on

Assistant

new

in

with
of

January to vote

No

such

its

30,

was

liquidation
business

having been taken over by' the
Fidelity-Baltimore National Bank
Trust Co. of Baltimore,

row

'

f *

We

*

tives.

in

in

the

death

of Charles

Chairman

man,
The

of

Bank

of

*

A.

of

on
*

of the

Assistant

an

Cashier

Bank of Virginia of Rich¬

named

was

bank's

loan¬

mercial

banking.

He

ber

meeting
10.

A

native of

Springfield,

Mass, Mr. Campbell is
of

a

graduate

Deerfield

Academy and the
University of Virginia, where he
received
From

a

B.

S.

September,

degree in

1343,

1943.

through

that

sistant

Vice-President

Paul

Miller,

in

1948.

member of the

a

correspondent bank division

serv¬

ing Illinois banks, was named As¬
sistant Vice-President.
Mr. Mil¬

at

joined the bank in 1934, serv¬
ing
in
the
analysis,
auditing,
banking and personnel depart¬
before

in

joining

bank

the

division

named

was

corre¬

in

Assistant

1950.

Cashier

1951.

H.

the

the

in

presently

the

trust

Vondenbosch

was

de¬

a

National

does

not

field."

Chicago National at the Oct.

7

deposits of

$102,208,016.
As

*

result

a

of

*

$100,000 stock
dividend the capital of the West¬
National

now,

as

instead of

a

Bank of

of

Nov.

Cicero, HI.,

29,

$400,000,
$300,000 previously.
*

*

*

,

The capital of the First National

Bank

of

McAlester,

been raised from
000
of

$100,000.

capital be¬

new

on

♦

has

stock dividend

a

The

operative

Okla.,

$200,000 to $300,-

result of

as a

came

Dec. 3.

*

tt

The Bank of Dunedin, at Dunedin, Fla., has been converted into
the First National Bank of Dune-

din with
surplus
to

Albert

Chicago

which

ler

ments

that

nucleus for such

a

named

was

capital of $200,000 and
$259,602. The change

a

of

the^ National

effective

named Assistant Vice-President in

is

the

Oct.

system

20.

W.

became

V.

Register

Cashier.

Trust

where

Investment

he

has

served

graduate of

Mr.

the

Division,

since

was

Secretary in 1948.

and
*

1932.

Vondenbosch

named Assistant

President

The

University of

R.

J.

♦

of

the

Calif.,

their

at

Analysts Society of Chicago

tor

and

the

bank,

Institute

of

graduate certificate.

The two

a

new

officers named by the board are
Philip W. Burge, Assistant Secre¬

and

Leonard

Assistant Cashier in

the

of

man

Board

dend

a

Mr.

Burge,
1949, is
the University of

graduate

of

Georgia and received
Business

has

joined

bank

the

Mr.

bank

operations, and is

Cashier- in

a

graduate

University. Her¬

W, Gorder

ment.

Wessel¬
in

1936,
background in

extensive

of Northwestern

bert

Master of

a

Administrationdegree

.

Northwestern.
an

in

was

named

Pro-

the

banking Depart¬
Gorder, who joined the
1932, is in the bank's wire
department,
/
1

Mr.

transfer

.

.

of

Weil

the

as

an

charge of the

and

Assistant

Auditor.

9,

direc¬

a

Installment Loan Department, ac¬
cording to Ben. R. Meyer, Chair¬

directors authorized

joined the bank

Dec.

as

Vice-President

and

tary in the Trust Investment Di¬
vision, and Charles S. Wesselhoeft,
who

Union

meeting

elected Robert E. Getz

American

is

Bank & Trust Co. of Los
Angeles,

He has been active in the Invest¬

Banking, from which he holds

Bolles

*

directors

ment

Mr.

President.

Meyer also reported that the

be

of

5,000

shares

common

distributed

shareholders

stock divi¬

a

Jan.

of

3,

record

1955
of

as

to

to
the

close of business

on Dec. 15. This
is equal to one new share for each
18 now
held.

Scrip

will

be

issued

certificates

for

fractional
The result of the distribu¬

shares.

-

tion of the stock dividend will be
increase of $250,000 in capital

an

by

transfer from surplus.

a

current with this

directors

Con¬

distribution, the

authorized

the

transfer

of

$1,000,000 from undivided prof¬
to surplus, resulting in a net
increase of $750,000 in surplus and
its

Plans for the acquisition of the
Liberty National Bank of Chicago,
by the Chicago National' Bank of
Chicago, III., are under way in

in

accordance, it is stated/ with ar¬
rangements approved by directors

dividend of $1.50 per share for the
quarter ending Dec. 31 on 90,000
shares
outstanding,
Mr.

„

The taking over of
Liberty Bank's operations and
personnel by the Chicago National

increase in the total capital

an

and

surplus

from

$11,500,000.
declared

The

the

$10*500,000
directors

regular

to

also

quarterly

the

Meyer
continued, and a special dividend
of $1 per share for the
year 1954.

Bank is scheduled for Jan.

This

17, ac¬
cording to the Chicago edition of

Journal," of Dec.

From that paper we
quote:

Under

Chicago
certain

the

consolidation

National
assets

of

will

take

plan,

and

Liberty, includ¬

loans

and

discount,

which at the time of the last

is

con¬

the

and the 11th year

Jan.

3,-next

record

Dec.

Robert
elected
dent

of

native

E.

the

Union Bank

ity, which
681,423.

on

deposit liabil¬

Oct. 7 totaled $59,-

Effective

date

for

the

the

of

he

legal

elected
in

to

shareholders

Getz,
and

Union

the

newly

Vice-Presi¬
Bank

California.
in

of

-

director

when

National's

quar¬

in which the $1

15.

Chicago National also will
Liberty

successive

extra dividend has been declared.
Both these dividends will be
paid

dition statement Oct. 7 had a mar¬
ket value of about $54 million.
assume

153

terly dividend paid by the bank,

over

bonds

Dec.

of

commented

condition call had total

Assistant Cashier in 1953 and As¬
J.

as

Bank,

ing Government bonds, municipal

regular Decem¬
in
Richmond
on

A rift our

function

is

directors

the

President

*

mond, Va., by the bank's board of
at

and

partment

ern

9.

♦

necessary

y.vift.-rwi

"Mr.

with the Harris Bank for 37
years
and has wide experience in com¬

"The Wall Street

Dec 4.

Campbell, of Norfolk,

elected

of The

Rie-

Board

National

Western

Allan

E.

sor¬

the

Baltimore, died

was

deep

is

bank.o.i

the

banking
Johnson, who

Mr.

one

new

new execu¬

Roy A. Johnson

Vice-President

a

department.

a

bank, two

of both banks.

*

with

announce

the action.

on

ratification

Chicago National stockhold¬
according to Lester Armour,

and

common

$600,000

voluntary
Nov.

of

consolidation.

from

Vice-Presidents

and named three other

bank in

!

Bank

Chicago

■

Shareholders of Liberty National
will hold a special meeting early

serve

Trust

President of the

hoeft

The

the

after

Senior

the

expected that this department will

*

Savings Bank of Chicago, at their

the preview visitors.

of¬

and

of

outlying Chicago banks "and it is

♦

from

new

director

a

Vice-President

Chairman

*

and

estimated

Liberty,

dividend of $150,000.

son, Manager of the new Monroe¬
ville branch, acted as co-hosts to

The

j
Chairman

Liberty National has one of
larger trust departments of

Illinois,

.

Fidelity Trust Company of

Pittsburgh,
12th

*

Cohn,
of

the

ers,

share.

per

^factors

of Lima, at Lima, Ohio, reports a
capital of $750,000, increased from
$600,000 as a result of a stock

A
*

all

were

of

to

3-for-10

on a

As of Now 1

Pa.,

underwriter,

National Bank, at

on

195,750

*

burg,

the

26,000 shares
value capital stock of

price $20
]

spondent

y,.

Blair & Co. Inc., as
announces

for

shares of stock

He

&

♦

offered

subscribe

National

19,

amendments of

19

First

*

necessary
the charter.

to

Sligo, Pa. capital $25,000 and the

par.

thorize

had

these

January 14.

President

ing divisions, has been associated

fice, located in Monroeville-s; Mile
and recommended issuance of two
Town & Country Shopping
Center,
shares of $10 par stock for each
replaces temporary facilities on
share of $20 par stock, which will
the William Penn
Highway* which
result in outstanding capital stock
have-been in operation for a, year
becoming 3,000,000 shares of $10 and
a half..
1
At the annual meeting Jan.
stockholders will be asked to

Bank

*

conducted

*

right

serves

*

Department; Mr. Hora with the,
Economics
Department and Mr. ing was preceded the night before
Stefan with Research and Devel¬
by an open house c'plebration,
during which the guests were
opment.

held of record Nov. 16.

the

$10

to shareholders

one

and

Credit

Rodgers

last

split, share¬

additional

associated

are

Serocke,

scription

the

fered

If!

Sterling National Bank & Trust
Company of New York, announced
over

37,500

annual

function that contributions

Assistant

Messrs.

Allan,

the

of record as of Jan. 25,
1955, will receive two shares of
$10 par value stock for each share
of $20 par value.
At tne same

Seneca

from

New

John

ant Cashiers.

thereby
v.;

and

appointed Assist¬

were

promoted from

Assistant Secretaries; Mr. Prahst,
Mr. Burckhardt, Mr. Moller, Mr.
Neumann

Mendelsohn

V.

bank

holders

3 p.m.

Savings Bank of New
York, has elected Fred K. Cordes
Chester

Under the proposed

.

fice

Manufacturers

of

as

official call date.

time,

H.
The

$7,500,000

stock of

Presidents.

:

of

Manager.

were

conversations."

*

63rd

near

112.

statement:

tions

Hills" Office at 63-63 108th

Long Island, N. Y.

meeting

the

of

Dec. 11 of its new "Forest

on

the

Nov.

111,250

$20 par value. Present
of $2,225,000 plus surplus
undivided profits are in ex¬

-

new

18

at

capital

*

National

valuationof

will be
"

of

stockholders of record Oct. 15 the

value.

par

First

final

First

Cincinnati,
Ohio,
increased
its
capital as of Dec. 1 from $6,525,000 to $8,482,500 by the sale of
$1,957,500 of new stock. On Oct.

the shareholders

total

crease

member of

Committee

Executive

the

a

*

♦

Comptroller of the Cur¬
the stock split and the in¬
of capital will result in a
capitalization
of
260,000

rency,

the

in
a

holder

the

Purple Heart and Gold Star.

The

the

and

He is also Chairman
Playtex Park Re¬

is

partment.

additional shares of

If approved by

the International

and Director of

was

Jackson, Chairman.
Mr.
Hawkins, who joined the bank in
1924, has been a member of the
Metropolitan Division. Mr. Smith,
who began his career in 1919, has
been
manager
of the 50 Court

recom¬

capital stock.

Director

and

he served
Corps as

and

joined the staff of The Bank
of Virginia in Norfolk on July 1,
1952 and is currently assigned to
the commercial development de¬

meeting

sale of 37,500

Corporation, Di¬
Stanley Warner Corp.,

Committee

tive

Zonite Products
rector

1946,

Marine

He

on Jan. 25,
1955, a two for one split in the
capital stock of the bank, and an
increase in capital
through the

Khann is Chairman of the Execu¬

S.

the

shareholders

bank's

at the annual

Presidents,
have
been
elected
Vice-Presidents of Chemical Corn

Street,

January,

Lieutenant

*

*

meeting held on
13, the Board of Directors of

mend

CAPITALIZATIONS

M.

of

the Rockland-Atlas National Bank

BRANCHES

Walter

issue

our

special

a

Dec.

CONSOLIDATIONS

NEW

in

25, page 2160.

Thursday, December 16, 1954

...

He

is

a

joined

February of 1948

became

affiliated

department.

Assistant

He

with
was

Vice-President

December, 1951. Mr. Weil, who

Volume 180

'Number 5386

..

The Commercial and Financial-Chronicle

.

(2473)
elected

was

Assistant

Cashier,

year

rather

has been with the bank since
1947,
and has served in the
capacity of

1954.

-

Trust

Auditor,

praiser,

etc.

real

ap¬

-

*

William

estate

s

W.

'

c

Crocker, Chairman

of the Board of Crocker First Na¬

tional Bank of San Francisco,
nouced

Dec.

on

an-

;

than

decline

in

as

dividend
to

is

payable

stockholders
Mr.

Jan.

of

Crocker

1,

1955

record

also

Dec.

announced

Dec.

14

on

bid

of

sale

a

'

of

furnishing

*

(5) Continuation near the pres¬
ent high level of business capital
expenditures.

Net

-

(6) Spending
struction

on new

home

con¬

the

1954

all-

close

to

time record of $13.5 billion.

proceeds

from

the

the debentures will be
applied by
the company toward repayment
of advances from the parent com¬

pany, American Telephone & Tel¬
egraph Co. These advances, which
were

incurred

porate

for

general

ice

cor¬

purposes,

Inc.

and

associates

yesterday (Dec. 15) of¬
fered $30 million of New England
Telephone & Telegraph Co. 34-

President and
from

Cashier.

Assistant

Vice-

accrued

were:

Merkt,

T.

Edwin

with

had

8,483

in the

The

com¬

&

Co.; Coffin &

with¬

&

Merle-Smith; Hallgarten

service

which

it

Shields

op¬

Bache

Burr

F.

par,

mission

plus

of

radio. and

For the year

Telephone

egraph Co., with its principal of¬
in

total

Boston, Mass., is engaged
in»,< the
business. of

r:

; n

&

1953, New England
Telegraph

operating

879,082

and

».

Co.

revenues of

net

.?>•:»?

v

Scribner; Stern Brothers & Co.;
Bryd Brothers; Julien Collins &

for other purposes.

and

programs

Telephone & Tel¬

Singer, Deane

&

television

i'

income

Co.; First of Michigan Corp.; Girlther, Johnston & Co.; Mullaney,

had

Wells

$236,-

of

&

Co.

and

U'V'f•.

V*

i'.'t »9

Schwabacher &

Co.

$19,-

to

'

Forecast for 1S55
Spending throughout the
States
and

during

1955

for

United

all

services may reach

goods

$370 bil¬

lion, topping the previous record

Carrol

M.

Shanks -Gordon- W: McKinley

established

in
1953 by
approxi-'
mately $5 billion and well above
the $356 billion estimated for the
current year,

prehensive
mitted
Shanks

according to

of

a

com¬

study

economic

to

sub¬

President
The

Carrol

Prudential

Better Brass Products —

M.

Insur¬

Co.

ance

The

forecast emphasized, how¬
that the outlook for this un¬

ever,

Brighter Brass Products —

precedented business activity dur¬
ing the new year will not be ac¬

companied

by

runaway

conditions.

On

the

would

be

boom

contrary,

attained

on

Thanks to

it

much

a

sounder basis for the Nation's

FO

eco¬

nomic structure than in
1953, since
it would not result from either

heavy inventory accumulations in
business and industry or from ex¬
cessive
The

government

Manufacturer and
to

prepared

annually

Formbrite,® the

by Dr. Gordon W. Mc¬
Kinley and his staff of Prudential

sold

economists,

To

leased
for

as

will

an

the

be formally re- \
informational guide

company's

personnel

in

their

op¬

"If

the

not

be

Mr.

foregoing

correct, the
a

year

Shanks

of

all-out

or

"The

country, generally, will not have

and

efficient

basis—a

good

continued prosperity in
to follow.," -

everybody takes

to

drawn

be

a

"shine"

polished in

little

as

an

Anaconda subsidiary.

savings in production

means

as

half the time

polish ordinary drawing brass. In addition,
costs no more

—

...

yet

qualities which

is stronger, stiffer,

important in stamped

are

products.

To the consumer, Formbrite means more attractive and
more

lustrous brass

scratch-resistant,

lay¬
.

ensure

the years

products — products that

too.

which produce

brass. It's another

working

to serve

are more

'

(

,

Formbrite is the result of
processes

Summing up major comparisons
expected in 1955 with the present
year, the report forecast:
(1) A rise of $9 billion in

can

"springier"

shortages, overtime, high cost operatippS. What wp are likely to
have'is a quiet; steady advance in
our standard of
living, on a sound
ing of the groundwork to

it

Formbrite

will

boom,"

advised.

was

—

drawing brass developed and

by The American Brass Company,

it takes

estimates
1955

year

new

manufacturers, Formbrite

costs as

management

planning

erations.

prove

consumer

spending.

which is

survey,

a

special rolling and annealing

superfine grain

good example of the
American industry.
•'

"

structure

way

in the 1

Anaconda is

:

/

:

54293B

con¬

sumer

spending,
(2),t Continuation

levels

of

State and

Federal,

ing.

.

.

of

government

existing
(combined

local)

The American Brass
Anaconda Wire A

spend¬

Andes Copper

--

Chile

'

(3) Continuation of stab lity in
prices althougn there

billion
cause

of

business

inventories

remain

constant

spending

are

COPPER MINING COMPANY




'

'W

s

WM

Anaconda Sales
International

mm * fMmsm

.

,

,

•

' j

Copper Company

Company

Company

Smelting and Refining Company

be¬

expected

throughout

Copper Company

Anaconda Aluminum

may

Company

Cable Company

Mining Company

Greene Cananea

consumer

be "some tendency to inch
upward" later in the year.
(4) An increase of at least $5
to

the

If

you are

Dick

Kraus; Hirsch & Co.; Auchincloss,
Redpath; R. L. Day &

R.

*

re.

Inc.;

& Co.;
Co.; Wertheim & Co.;
&. Co.;
Ball,
Burge
&
&

Arthur

Hagan,

Stent and Alvin F. Dei

at

Associated

teletypewriter
exchange
mobile
radio-telephone
service, and services and facili¬

interest.

New England

Promoted

Vice-President

Vice-President

Sept.

revenues

at

$191,445,305 and
$14,428,959.
Halsey, Stuart
offering are: Bear, Stearns

net income

erates, and its other services in¬

....

ranging from 105.22% to

3y8%

^wapi of the issue at compet¬

shown

were

clude

principally

to

30, 1954, total operating

report

Co.; The Milwaukee Co.; Wm. E.
Pollock & Co., Inc.;

fice

Cashier

ended

teletypewriter use, for the trans¬

won

from

been

unaudited

months

ties for private line telephone and

Bradley,

following promotions had

an

nine

The debentures will be redeem¬

approved by the board: Charles J.

the

In

the

able at regular redemption prices

debentures, due Dec.
15, 1988, at 102.22% and accrued
interest, to yield 3.02%. The group
year

177,410.
for

Parker &

•

Co.

serv¬

service,

.

&

subsidiary

a

pany furnishes toll
in the territory in

.

Halsey, Stuart

and

telephones in service.

including addi¬
tions and
improvements to the
company's
telephone
plant,
amounted to $64,100,000 on Oct.
31, 1954.
:

Halsey, Stuart Group

communication

ices, mainly telephone service,.in
Maine; Massachusetts, New Hamp¬
shire, Rhode Island and Vermont.
On Sept. 30,
1954, the. company
had 2,539,105
telephones in serv¬

*

following a
meeting of the directors, that the

21.

sale

101,70%.

9,

board increased the regular
quar¬
terly
dividend
on
the
bank's
capital stock to $1 per share from
the 90 cents per share
previously
paid, thereby putting the stock on
a
$4 per share annual basis. The

itive

~

.

21

interested in learning

more

about Formbrite, write to The American Brass Company, General Offices, Waferbury 20, Connecticut.

/-'Ml,

22

The Commercial and Financial Chronicle

(2474)

,

Continued

from

that

7

page

May Top x53
above, the $365 billion record level
1953.

view

that

will

improvement

ness

into

1955.

based

on

correction is

to be

that obscure

sult,

economic

expected.

six months
low

In the opinion of most
any correction in prices
is likely to be relatively moderate
and perhaps fairly brief, but if
these expectations should
prove
erroneous, business confidence
might suffer

a

The farther

greater

loom

look ahead, the

the

in

uncertainties

or

most

present is

no

future.

visibility

so

As

are

:

must

instances,

and

the

exception. The forces

fairly promis¬

be

reviewed

if estimates and

to reflect

re¬

beyond

ing in the months ahead, but

stantly

a

ANGELES, Calif.—James D.

Creger has been added to the staff
of

Marache,

Dofflemyre

&

Co.,

unfolding events.

the

Los

(Special to The Financial Chronicle)

DENVER,

Colo.

Miller is engaging
business from

Street, members

Angeles

change.

Stock

Ex¬

ler

ers

■

was

previously

&

Co.

continue

liquidation
likely to end soon; business
spending on plant and equipment
decline
from

are

much

current
to

appear

point ahd

moving upward, af. least for

the

time

being.

-

Prospects

for

sogiewhat higher economic activ¬
ity in

1955 are further supoorted
by the continuing strength in res¬
idential and

Cities Service

con\naercial, construc¬

tion,

the risfing" trend' ofc public
works, and the likelihood of some
increase

iconsumer

in

tures.

'V

expendi¬

V,

If these expectations materialize,
requirements lor investment funds
•-

in 1955 may be as
great as in 1954,
or

somewhat greater.

even

How¬

the supply of funds seeking

ever,

investment is also expected to
main

large, and

a

re¬

pronounced rise

in long-term interest rates
appears
unlikely. A significant expansion
of
business
activity will
mean

demands also

more

for^hort-term

credit, but the trend of shorjt-term
rates will depend mainly upon the
policies of the Federal Reserve.
The

modest business

of

upturn

recent

weeks has v not
caused a
shift in credit policy, and the Fed¬
eral
Reserve t has
continued
to

maintain credit

readily available,

but it is certain
ties

will

keep

that the authori¬
a

close

conditidns

economic

watch

on

shape

and

their policies
accordingly. In its ef¬
forts at economic

stabilization, the

Administration has assigned high
priority to credit and debt man¬
agement policies. .In
"which

is

an

growing in

tions, alternate periods
sion and contraction

pected,

and

the

economy

direc-;.

many

are

of

expan¬

to be

authorities

ex¬

have

already given evidence of their
determination to use their powers
to

restrain

booms that might end
collapse as well as to forestall
spirals of credit liquidation.
in

Uncertainties in the Outlook
No appraisal of the
economy for a
year ahead
is complete without
—

stressing some of the major im¬
ponderables in the situation. The
international situation persists as
a
chronic uncertainty; deteriora¬
tion in our international'relations
could require a
reappraisal of

defense program
could

A

our

conceivably

give

boost.

and

the economy another
significant diminution of

world tensions

the present

seems less
likely at
time, but if it should

materialize, it could bring further
reductions in defense outlays and
for

a

drags
tax

while might lead to renewed
upon the economy, although
reductions

provide

would

probably

offset.

some

.

_

„

Many uncertainties prevail also
in

the

tial

economic

building,

realm:

for

been stimulated in

Residen¬

instance,

has

recent months

by the further liberalization of fi¬
nancing terms which brought ad¬
ditional

buyers

market.

how
or

It

is

into

the

difficult

long this stimulus

housing
to

guess

may

last

when the

ply

may

growing housing sup¬
dampen new residential

building.
Again,
will
in

be

$6,500 diamond-studded bits like these
labor

in

significantly greater

than

are

used for

1955

1954, and

nual

demands

wage

the

guaranteed

is being

pressed

an¬

extra-hard rock formations

penetrating

by

with

increased vigor.
Consequently, la¬
bor troubles might

subject indus¬
activity to serious interrup¬
tions,
although
this
possibility

trial

may

provide

duction

and

incentive to pro¬
inventory accumula¬
an

CITIES

@

A Growth

tion in the early part of 1955. Fi¬
nally, the prices of common stocks
taye risen so much and so long




Stanley
a

V

SERVICE

Company

C.

securities

in the

First

Mr. Mil¬

with

E.

I.

Shelley & Co. and Robert D. Bow¬

Inventory

levels; defense orders
hgwe passed their low

in

offices

is

is-not expected to
further, if at all,

—

National Bank Building.

634 South Spring

opinions of

■

Stanley Miller Opens

(Special to The Financial Chronicle)

LOS

con¬
con¬

:• *

i

Marache, Dofflemyre Adds

tends to be rather

of recovery appear

ditions

jolt.
we

the

busi¬

current

the

some

raise the question

oosei vers,

.

These expectations are

the

"may

whether

Business in 1955

of

one

Thursday, December 16, 1954

...

Volume 180

Number 5386

.

.

The Commercial and Financial Chronicle

.

IBA Problems for the
I appreciate the confidence
you

have

shown

in

me

electing

your President.

which

honor

thought.

to

come

Incoming IBA President, in stressing that

industry

and

that

all times,

of

calls attention to the

vestment

re¬

sponsibility of
carrying
o n
the aggressive
work

Banking industry in the pattern of the

of

age

the

but notes

Sees problems in

economy.

those of

has

momentum
our

Walter A. Schmidt

last

15

placed

the

of

Among

ing

efforts

free

have

of

actively

and^

free

enter¬

hard
many

work

and

passing of the bills

of

a

Federal

Securities

of effort.

laws

our'.incoming

year land"..,

the

after

great

14

be

for

taking

his

place
Past

43rd

greatly

men

respected,
who will spear¬

of

our

measured

efforts

can

always

by the performance

sured

industry

among

the

dis¬

Presidents

will

continuously try to
steer this ship through the calm
and

in

heavy

seas

which

goal

of Mr. Schimidt at
Annual Convention of the In¬
Bankers Association ol
America,

tained.

toward the highest

can

possibly

be

at¬

We all recognize the abil-

itv

of

all

Hollywood, Fla., Dec. 2, 1954.




officers,

your

capable,

our

great

staff.

hard

They

working

are

per¬

be few—but be

efforts will" fun in

as¬

high

is

expect

operate

to

of

condition

financial

Association

excellent

the

and

we

within

our

v"f

budget;

Sometimes I

preciate that

wonder

we

are

"free

enterprise."

efforts of

we

Surely,

perform

of

dreamed of
ago

ceeding
the

even

—

years

same

a

have

relatively

and

our

our

the

tile

in

the

im¬

pattern

to

has

our

liaison

of

will

so

as

larger
be

to

carry

in

the

on

crease

our

years

the

healthy

constantly look at ourselves in

vesting

of

experience.

BOSTON

DETROIT
NEW

EUREKA

YORK

CHICAGO
PITTSBURGH

J

PHILADELPHIA

INDIANAPOLIS

)OSE

eFRts>NO

9) LOUISVILLE

• Pa$aDENA

^

LOS

Blyth aCo.jNC

ANGELES

PRIVATE
^

L SAN

DIEGO

Blyth a Co.. Inc.
Underwriters and
NATIONWIDE

within

a proper
which each

coordination

between

industry associations,

Continued

SPRINGFIELD

y*

;be

Distrib
of Securities

for

the

a

in¬

public.

CLEVELAND

FRANCISCO

group

Third—Probably the oldest sub-

In my

®
MILWAUKEE

each

atmosphere

PORTLAND

'••SAN

»

maintaining and improving
we

m SPOKANE

'SAN

-

our

in the industry can oper¬
the greatest degree of

various

have

accomplish this job,

mirror

In

with

^SEATTLE

/•Oakland

ol

efficiency and effectiveness. We
should continuously strive to in¬

responsibilities

ours

—

between

judgment, today's reflections point

do—called

SACRamentq

benefit

health, thus providing

ate

increase

to

force

MINNEAPOLIS

the

for

operations.

framework

known

ever

our

to.

con¬

clients' accounts to¬

kept in the present excellent state

come.

To
to

world

freedoms—propelled by the strong
will

our

industry there
are numerous segments and asso¬
ciations.
It is important that the

industrial produc¬

will continue

even

which

tion of world leadership by taking

the

than

time,

Second

person

facilities

few

great country develop to the posi¬

of

clients

There was never a
however, than the
present to double check ourselves

finance the flow

of the greatest

our

advantage of the existence of

our

How about the

course

oeuer

of the

securities which

we

seen

to

speculative

at large.

omy

We distribute the

and

will follow along at
.We have

sound

we

economy.

our

tion

and surely the suc¬

pace.

dition of

industry,

increasing

ever

an

function

pro¬

a

we

Banking

never

world

realized.

we

will all get out of life

we

directly in proportion to what

ap¬

living in the
The life

inventions

more

the investing public and the econ¬

of most of us here today is
approximately one-third of the
178
years
since the Declaration
of Independence in 1776.
Discov¬
with

recommended

securities

_

span

us

We

day? I think today that we 'are
honestly attempting to follow a

are

That is America—and
-

Gov-

maintained in prac¬

portant

and

termed

1929 era, our great¬
judgment.

est mistake was one of

tical proportions, with due respect
for the rights of our neighbors.

ordination

Investment

if

are

combined

ernmentj Labor, Agriculture and
Management, % will
produce
an
even greater result over the years
.—provided cooperation and. co¬

greatest age of all times.

eries

what

The

put into it.

•

History's "Greatest Age"

years

we,

as

a

our

The

vided

heavy burden—and

take pride.

all

throughout the-year.

gear

the
our

is.

mistakes will

the Group and Committee lev¬
els. These are the men who carry

♦Inaugural address
the

vestment

Committee

at

and he has the real satisfaction
of

tinguished

Canada,
Group* Chairman,

we

I do, that our entire
dedicated group. For
me, fit will be a great inspiration
working with them. We hope our

know,

all

work. The extent of the

our

results

Yes, Jerry Bryce

service

are

experienced
head

of

representing

:

National

our

Chairmen

[retiring IBA President] has done
a

Governors

-

parts of the country and

amend¬

provisions

Executive Commit¬

our

tee, ^are outstanding leaders in all
phases of our industry. Our Board

results.

activities, the

Vice-Presidents,

your

me,

who form

country—fighting

fifty-four has been

numerous

years

At. the opening of this Conven¬
tion, Jerry's address pointed up
the continuing problems for the
coming year. Fortunately for you

whom

in

sons

You

*

■; ...

"

long be remembered because

of the

;'»■

V

accomplish¬

team

leading trade

which

banner
a

Nineteen

will

important

Continuing Problems for the ;
Coming Year

world freedom.

year

of

_

prise—in
for

-

ments.

of

industry

certainly
during
the

among the

organizations
carry

terms

and

their

'years
us

fairly be said to have
to that
which hap¬

pened in the

materially

increased i the

of-our

in the securities busi¬

us

contributed

or'gin in 1012

all phases

are

could

ness

years

having a profitable
me, to the extent that

industry
year.
To

importance of maintaining good public relations. Views future with optimism.

our

in

firms

—and

since the days of 1929.

progress

Urges cooperation of all segments in the securities industry and points out

Presi¬

dent since

increasing important function of the In¬

ever

the industry in the coming year,

Association.
Each

living in the greatest

we are

with

it goes the

>

have
passed since the days of 1929. To¬
day we see the national product
at an all time high — with the
market prices of all classes of se¬
curities at high levels—at least
from the historical point of view
First—Twenty-five

in

anyone

our

-

Industry Thriving

Partner, Schmidt, Poole, Roberts and Parke, Philadelphia, Pa.
can

of'

directions

major

three

up

President, Investment Bankers Association of America

I realize it is the

greatest

Coming Y«ar

By WALTER A. SCHMIDT*

me

23

(2475)

WIRE

SYSTEM

^

on

page

51

24

1

'

'

•

Government
I am

'

15

My

'

'

.

last

appearance

which

ago,

the

of

Board,

business

New York Life Insurance Company

ap¬

the
of ab¬

famous

by

fresh look be taken of the

Rip Van Win¬
kle.

w

Then,

that steps

as

one of y°ur

y

$100

business

vice-presi¬

do the

can

most

encroachment in those

government

effective

This

surance

i

pan

corn-

free choice

and

e s

wondered
what

went

inside

tion with life insurance

their

how

ing funds, for the country's

buildings'

and

C. Josephs

economy.«;

Concludes co-existence between

operations and private activities is

ernment

the

much

as

a

central problem of

responsible

for

actually felt.

money

much

so

Let

has¬

me

ten to add that I have found noth¬

ing

nearly

mysterious

as

as

my

Dutch

prototype found amid his
particular
set
of
mountainous

accounts, the vital statistics,
payment of claims, investigation
of frauds,

—these
didn't

of

dividual

all

lives.

interest

I

me.

was

most

formula

Life

insurance officers don't play bowls
ex-investment bankers, but
have

to

trative

the

problems,
problems,

sonnel

variety

adminis¬

same

the

same

and the same
decisions to make as

of

about

the

business

I

now

one

account.

going to

am

assume

like

myself have had
limited knowledge of
I shall further

ness.

Consequently my talk this
morning will be a few observa¬
tions

I

per¬

familiar to all of you.

are

only

that

you

this

same

our

busi¬
that

assume

most of you know how to do busi¬
ness

with

us.

case,

let

me

Lest this not be the

hasten

to play the
peddler and

follow in the light of my previous
in
your
business.
I
will talk in very

role

about two of

ties of New York Life and, in the
manner
of
a
football
program,

experience

general

terms

our important func¬
tions, then how they come in con¬

tact

with

and

lastly

about

what

activities

ought

we

do

to

it.

My
life

government

of

hawk
in

gives the
all

original

connections

with

program

phamphlet I have here
hand.
It lists the securi¬

my

our

the

insurance

a

the

and

names

financial officers. But here

similarity

ends.

charge for it;

but

left

college.
I became a
policyholder, and I sold securities
to

them.

guess

As

about

cedures,

salesman

a

the

but

I

on

investment

pro¬

certainly had no
knowledge of what occupied ninetenths of the employees of a life
insurance company.
The keeping
*An

the

address

43rd

vestment

by

Annual

Bankers

Mr.

Josephs

Convention
Association

ica. Hollywood, Fla., Nov. 30,

of

before
the

of

In¬

we

kindly,

get

are

re¬

number of

a

fine ideas from the recipients.

could

I

because

don't

we

quest. Not because

after

We

send it

we

companies
were
two-fold and they were made just
I

pictures of

If, then,
about

one

for

me

ing

you

know

side

of

few minutes

a

describe

(in

be

good deal

a

our

affairs, let
this

aspects

may

not

you)

the two intrinsic character¬

wholly

familiar

to

istics of life insurance and relate

Amer¬

them

1954.

to

the

economy

Insurance
dual

which

sur¬

main

companies

operation.

have

a

Through the al¬
level
premium

universal

which people buy

under

life

insurance, and to a lesser ex¬
public's purchase
of annuities, insurance companies
accumulate year-by-year the sums
which they calculate will eventu¬
ally be paid out in performance of
their

contracts.

Let

the savings and

life

in

the

us

call this

protection part of

insurance.

The

individual

of

shock

of

unexpected the calam¬

the

in

greater,
the savings.

general,

are

the time

when,

the average, it
called for, it can be in¬
vested.
Through the good offices
of all of you, it is put to work to
advance our capitalistic
system.
on

be

is

the

second—the financial

portion—of

ual.

I don't know how I can

premiums
nial—we

the

two

tivity
a

fundamentals

our

ac¬

simply than this. Over

more

period

of

of

ments have

time

been

many

refine¬

developed.

The

forms of insurance have been im¬

by-product of the

as a

self-denial

in
paying
voluntary self-de¬

entailed
a

—

able to perform

are

our

other

function, the supplying of
capital to our voluntary enterprise
system.
Like a great circulating
system of irrigation,
collect

small

you

the

and

we

Their

productive

and

ag¬

so

came.

Although originated in England,
really flourished
in North America.
Ninety

only
ered

Americans

are

by insurance.

now

cov¬

In four out of

five families there is at least

that

for the
ises.

able only to hold our own against

the

minds
the

in

of

Government

as

Life
One

Competitor lit

a

Insurance

important

answer

Government has become

ment

is able to

this field

in

done

do certain

which

can

is

enough: life insur¬
outstanding averages about

ance

$1,900
ica;

in

capita in North Amer¬

per

the

Sweden

United
come

$400

per
an

Kingdom

next

capita.

Far

with

$75

more,

of

that

ends

with

is

than

ment

at

The

in

every

during the past 50

years,

a

more

except for
the

very

outstanding

doubled

a

or

less

even

rate;

of the

that

tempted

NEW YORK
SANTA

CHICAGO

BARBARA

BUFFALO

HARTFORD

LA

I

JOLLA

'•

-

MONTREAL

'

NEWPORT

MIDDLETOWN

-

NEW

American Stock

Exchange
Exchange

'

LOS

.

ANGELES

BEACH
BRITAIN

EXCHANGE
New York Stock

..

DALLAS

MEMPHIS

jj,

Congressman

put

is

we

my

both
are

•. .

;

LACROSSE

BASLE

in

certain broad
tors

cial

security,

common

New Orleans Cotton

Liverpool Cotton Association, Ltd.

New York Cocoa

these

or

are

all

unemployment in¬
old age benefits —
parts of the emerg¬

ing needs of a society of increas¬
ing industrialization.
Our

'30s.

industrial

ingenuity

Continued

growth

New York Stock

Exchange
Exchange

ANTONIO

Stock

Exchange

Exchange, Inc.

Los Angeles Stock

Memphis Cotton Exchange

New York Cotton

Midwest Stock

Montreal Curb Exchange

New York Produce

Exchange

denomina¬

only the central gov¬
ernment can manage.
Call it so¬

MEMBERSHIPS

Commodity Exchange, Inc.

New York Coffee &

Sugar Exchange Inc.

Exchange

Exchange

61

Wall

Much

individual

which

MEMBERS

(Switzerland)

rather

enterprise, I believe that our com¬
plicated modern system relies on

American

SAN

Chicago Mercantile Exchange




,
PASADENA

HOUSTON

Chicago Board of Trade

Exchange

'

be¬

Govern¬

needed.

trust

on

of

BEVERLY HILLS

;

the

Clark, Dodge & Co.

'

to

for security

insurance agent.

and

I

been

a

Advisory Service '

and
,i

be

premium notice.
many an
indi¬

the search

truth

surance,

distortion caused by

depression

an

The

as

life insurance is

insurance

than

more

has

lieve

country
capita.

per

vidual

and

behind

Life

York

wonder

about

with

advanced

No

'

'

things

never

by

ESTABLISHED 1845

■

most

New

Canada

While the steady current

■

our

significant competitor as a pur¬
veyor of protection.
The Govern¬

misleading than the uncompro¬
mising figures on the bottom of a

and

.

this

to

amount of insurance carried. One

has

Investment Securities

people

illustration

decade

Research

the

of

most

nation!

in ways much more seductive and

amount

Distributors

claimants for the consumer's

new

dollar; such as television, automo¬
bile, radio, and other leisure ex¬
penses.
And this, mind you, dur¬
ing a period when the hunt for
security has been uppermost in

the

4,lISMl#

and

our prom¬

the

States and

growing in this country at a
rapid—a geometric — rate.

Underwriters

performance of

Nevertheless, we have been

part

No

world

What is

Co.

have an energetic
a good reputation

We

public.

sales force and

as

&

and has

other

member.

the

one

Growth of Life Insurance

Shearson, Hammill

basic need

a

acceptible to the American

approaches

insured

France

r

meets

private enterprise.
For
instance, it is able to levy the cost

such

**

is discour¬

in the insurance busi¬
we
have a product

us

anomaly lies in the fact that the

life insurance has

million

far

because

been

multiply the
enrich the land

savings

be

to

cap¬

channel to

we

a

shown

This lack of progress

aging to

will

it

and

whence

you

savings.

becomes

where

areas

United

explain

essen¬

ex¬

we

saturated.

from

ness

so

Then,

of

operation.

our

two

in

have

be

have made
market which

Thus,

tests

re¬

single, unexpected
that it becomes bear¬
able to the family of an individ¬

harvest,

Now, while the companies are
accumulating this money against

the

still

premiums

4.1%—to

the

3.6%.

progress

in

the

calamity,

ital which

This

and

First, we provide a means
absorbing in a large group the

The

more

But there

unchanged

gregate

will

sales

tials.

puts savings aside in such a way
that he can alleviate calamities.

ity,

of

area

beneficiaries.

tent through the

morn¬

which

of Insurance

Companies

aware

bank

Hudson.

proved. Much pioneering has been
done

Operation

with

the

than

less

is

act

the variety of settlements open to

Dual

which

matters

seem

along

in¬

our

determination of risks

were

immutable custom—
receipt of my premium notices
always coincided with a shrunken

ravines

businesses and

our

con¬

insurance companies
to about ,$& billion,-pnd this

came

time.

the

1953

In

all

rounds

is

progress

4.1% of their spendable

or

no

of

faster than the

no

to life

paid

people who
were

billion

by

income.

gov¬

our

$300

over

has, however, ac¬

of

lack

billion

companies both in providing security and in supply¬

on

big
Devereux

allowing private enterprise

permissible with public interest. Cites government's competi¬

as

in¬

another statistic.
In
1929 total premium income—the
sum
which
the
people of the
United States paid for life insur¬
ance protection—represented $3^4

job. Regarding government's relation with

business and private affairs, he favors

life in¬

grown

firmed

dents, I looked
at the

It

our

has tripled from

economy.

where

areas

to

1929.

tually

relationships between government and business, and

be taken to resist

billion

since

Prominent insurance executive and former Vice-President of the IBA urges a

be sure,

To

in force

surance

made

sence

results.

the

proaches
span

has been great, we in the
cannot be too proud of

50 years

Chairman

of the past

of sales and the record

By DEVEREUX C. JOSEPHS*

Association

Bankers

years

'

'

■

Competition With Private Enterprise

delighted to be back at an

Investment
Convention.
was

"

1954

Thursday, December 16,

The Commercial and Financial Chronicle

(2476)

Street, New York 5, N. Y.

page

has

Number 5386

Volume 180

25

(2477)

The Commercial and Financial Chronicle

...

The Next Two Years of the Eisenhower Regime
of

view

In

be

and

Senator

S.

U.

from

investment bankers have survived

the

I

After commenting

the

on

do

did

I

so,

a

little bit

a

matter of

on

the

to

and

dealers
investm

e

nt

bankers of the

be¬

country,
I

cause

member

some

Bush

Prescott

that

they
went

we

through

in

the financial community.
I had been
some

which

years

firm

a

then

was

engaged in both commercial bank¬
ing and in investment banking.
And

that

remember

I

when

the

Banking Act of 1933 came along,
which said, "You have got to di¬
vide commercial banking and in¬
vestment
banking," we thought
that was going to be the end of
the

world.

And

so

did

lot

a

of

banks who had found the invest¬
ment

banking industry

I

a very

in

as

vantage

about
one

merged

with what

to

And

years

later, I think there are very few
people that I have met who would
want to go back to the old busi¬
ness ' of
having the commercial
banks in the underwriting busi•Stenographic transcript of a talk by
Senator Bush at the 43rd Annual Con¬
vention
of
the
Investment Bankers of
America,

Hollywood,

Florida,

then the
organiza¬

form

both

of

firms

our

did

well

all very
happy.
That was after we got
through the first few years of the
depression.
enough

that

so

we

were

Nov.

29,
'-f;

1954.

a

understand

I

afoot

move

increase the

now

there

that
to

further

authority of the

mercial banks

that

issue

I

here

dire

is

than
As

very
briefly.
I recall the
prophecies that were made
that a bank couldn't

com¬

get along without the underwrit¬

it available for doing large

ing business. But, of course, they
have gotten along without the underwritting business, except for

jobs,

bond issues and that sort of thing.

their

So,

ing authority of banks—their le¬
gal authority — the Congress is
going to have to be shown a case
of need; that it is necessary in

the

best
ness

interests

American

of

busi¬

and American commerce that

I think this Investment

Under¬

Therefore, I believe, it will be an
before
.

the

84th

it

that, is

zation

or

a very

group

important organi¬
of organizations in

connection with
trial

and

our

whole indus¬

commercial

picture

in

and it should be

be

would

market

move

as

to whether

chipping-away at
that has, in the last
a

years,

investment

and

along

come

into

gotten

of

the

rather big way.
When I was on the Board of the

business in

year

before I

remember' two
for

Company,

Insurance

Prudential
the

a

issues

retired, I

—

one

was

of International
Machines, and another

$150 million

Business
was

$150

the company
thing.
And, of

the

course,

whole

that is business that the
bankers

would

allowed to enjoy a market, so to

investment

ably otherwise have had.

.

by the Congress very close¬
and especially * because the

sure,

ly;

of New York

the

will have

CsacS5s^




UNITED STATES

on

I say

this with all respect to him
sincerely opposed to our
increase the exemption

is

—he

efforts to

registration from $300,$500,000.
It was be¬
cause
Mr. Rayburn was opposed
to that, frankly, that we couldn't
get that through the House, al¬
though on our side, Senator Maybank, the ranking Democrat on
our
Committee, and Senator

from SEC
000

up

to

Capehart,

were

both in favor of

increasing that to $750,000.

conclusion on that
point, that the Congress will have
So

to

I say, in

examine this, I am sure, on a

basis of the past,

and on the basis
Amer¬

of what is the real need for

prob¬

ican

industry and the whole Na¬
interest.

tional
very

But the

i

GOVERNMENT SECURITIES

BONDS

That

can

interesting question,

York

STATE AND MUNICIPAL

control of

in

and

in the House.
And Sam
Rayburn was the one who had a
very special interest in the legis¬
lation of 1934.
Incidentally—and
goes

Dealers in

I

a

be

Sam Rayburn
lot to say about what

Congress,

Broadway

New York 15, New

will

Democrats

Guaranty Trust Company
140

-

In each case,

bide.
took

Car¬

million of Union

speak, which is enough of a mar¬

Session

to

been enjoyed by the
banking fraternity.
The insurance companies have

twenty

and

that be done.

the United States,

Congress.

personally want

would

it

writing Fraternity, if we can call

issue

I

examine this

that be

equity

to have day-to-day
clews through the issuance of big
has

to further increase the underwrit¬

in connection with

underwriting

In order to hold

in this

business.
In
other words, the business of un¬
derwriting revenue bonds is an
issue before this industry and be¬
fore the banking community.

the

has to be done from time to time

participation in Government
obligations. I feel if we are going

bonds.

failures in revenue bonds
the years past. *
■
So I say that it is,an issue that
will have to be examined, I am

investment un¬
derwriting business. We need that
to do the equity financing that

it

revenue

;

capital in the

country.

the

know, we have had a good

over

ket to attract and hold large pools
of

of

some

we

many

back in 1934;

done; that it is necessary in the

Banks

is

studied

closely, but I do feel that
would like to comment on it

the National interest that

Underwriting by Commercial

Well,

twenty

was

Harriman, Ripley;
and my firm, which was a very
small bank, went on to develop
the commercial banking business.

that.

of

was

securities

was

not

have

very

in¬

looks back from the

point

The

two.

National City Company

teresting and profitable one.
was a great deal of appre¬
But

firm

our

underwriting end of it

There

hension

that

remember

tion

I

as

were

divided

member of

a

directly and indirectly,
prior to that time.

ness,

heart¬

the

for

underwriting revenue bonds, it
not very much of a step from
that
to corporate
bonds — high- "
grade corporate bonds, w h i c h
probably are a lot better bonds

of

'■

very

and 1934

aches

re¬

when we come to go
step backward and to

a

put the banks back into a position

19 3 3

well in
of

which is

and Republican
Parties. • Says left-wing Democrats, who control the Party, will seek a stronger
Federal Government, but they also will seek to balance the budget. Forecasts
little in the way of tax reduction from now on, and sees a tough problem in
farm surpluses. Upholds policy in restricting Federal power projects, and ends
talk in praise of President Eisenhower.
;

Associat ion,
and

insur¬

further than that, and take a move

ously, contrasts the political philosophies of the Democratic

interest to this

business

by the

disapprove of that, but I

do say that

Senator Bush, speaking extemporane¬

with insurance companies,

securities

want to touch

I don't

banks and the practice of private placement of

writing to the commercial

I

before

their

into

markets

companies.

ance

under¬

to restore the business of securities

move

along that line.
But

their

and

going to talk very generally

inroads

those

Connecticut

House,

the

both
am

Senate

of

control

in

By HON. PRESCOTT BUSH*

the

that

fact

the

will

Democrats

Continued

on

be

a

and I

page

86

26

The Commercial and Financial Chronicle

(2478)

Federal Price-Fixing Threatens America's Gas
is

ness

in

the

American

the

and

ness

of

branches

other

gas

ing business.

Calling attention to the Phillips Petroleum

con¬

be¬

of natural gas in interstate commerce,

of the

recent decision

is

Su¬

the

of

in which the Supreme Court

case

Natural Gas Production

Court

its

Mr* Baker points out that natural

utilities, natural

production is

is

Fed¬

the

,

Says,;

for

risky venture and, if its price

regulate

gas

industry today is meeting consumers' demand.

step

a

Hines H. Baker

a

to

natural

a

gas

company

for

subsequent resale.
The sub¬
ject is therefore timely. The
American people need to under¬
stand the operation of this busi¬
ness, the function it performs, and
the
long-range consequences of
such price-fixing upon the econ¬
omy and upon natural gas con¬
There

sumers.

some

are

economic facts and

volved

cannot be

ignored.

direct interest in
alone

a

as

has

banker

investment

The

principles in¬
at play
that

forces

and

simple

a

the subject, not

citizen but because he

represents
and

or finances
all groups

gas

con¬

of inves¬
tors involved in the supply of gas
sumers

to

finances

He

consumers.

pro¬

ducers, interstate transmission

lines, distributors, industrial con¬
sumers, and the manufacturers of
equipment for all these and for
household

as

consumers

well.

He

and his clients have a direct stake

in

the

As

issue.

analyst

an

and

also

is

banker

from

public

weigh

to
the

the

subject

standpoint of

interest

to

and

the

arrive at

Let

us

Annual
Bankers

wood,

Association

Florida,

his

first, how the nat¬

see,

operates to sup¬

ply the American consumer

with

gas. The business is divided into
three distinct branches: the pro¬

transmission
lines, and the distributing com¬
panies. At one end is the con¬
sumer; at the other end is the
producer.
In between are the
service groups engaged in trans¬
the

branch,

ducing

distribution

Gas

and

interstate

utilities

public

are

by nature and are so becognized
and regulated by legislative en¬
The

actment.

states

have

lated gas distribution as

utility
This

is

sible

public

a

function for many years.
necessary
both for the

consumer and the

has

distributor. The

natural

a

monopoly.
have

to

panies

regu¬

tendency

It is not fea¬

several

gas

com¬

Dec.

of
of

1,

the

Holly¬

he

alone for gas

conditions,
risks

use;

serve

these outlets, they have their rates
fixed by the Commission to yield
fair

a

the

reasonable

and

return

Their

investment.

reduced to

risks

on
are

minimum.

a

he

public in the area
look

him

to

supply. Under these
his lines are laid
established, his

once

are

reduced

an

to

a

minimum.

outlet and

assured

re¬

oil
drilled, 40%;

rates

is

great;
too

and the

heavy

on

1

Phillips

Petroleum Co. vs.
U. S. 672.

State

of

Wisconsin et al, 347

While under the American
nomic

and

governmental

eco¬

system

public utilities and their rates and
charges are regulated by law, it
is

equally true
measure

war

that

except

as

the

Federal

cannot

guar¬

the

exploring producer a
return even of his capital invest¬
antee

production is secured,
with the great
number of
other gas
producers
for markets, and in addition with
must

oil

and

Here the law requires com¬

compete

likewise

are

pressing for customers in the

en¬

coal

which

fuels market.

ergy

It is the

a

the business of pro¬

ducing commodities and the pro¬
ducers' prices
are
not so regu¬

■«

of the natural

purpose

gas industry to supply the demand
of the consuming public for gas
as

fuel.

a

The

growth

in

such

has

been

petition, not monopoly. The pro¬
ducer's
price is determined by
free
competition in the market

phenomenal.
In 1946, gas sup¬
plied 14.5% of the mineral energy

place

in

fixes

able

his

rates

yield him
return

at
a

on

a
figure which
fair and reason¬

his

investment.

In

of

as

result of the operation

a

the economic

forces

of

supply

demand.

turn, the public is protected
through regulation from exorbi¬

and

tant rates that his

ural

monopoly might

otherwise permit him to

This is accepted

charge.

American

pro¬

cedure.

The interstate transmission lines
likewise

public utilities by
so recognized and
regulated under the Natural Gas
Act passed by Congress in 1938.
are

nature and

are

Commission

which

restrict

com¬

petition, give monopoly privileges,
and
stabilize
their
business
by
providing assured outlets.
With

of

producing nat¬
gas has none of the char¬
acteristics of a public utility.
It
is highly competitive.
The field
is open to all comers. There are
no franchises, no government re¬
,

war

in the United States;
1953, it supplied 23.7%. The
report of the American Gas Asso¬
consumed

shows

than 21,000,customers at the

more

000

natural

end

of March of this year.

potential

gas

customers

the waiting lists;
will
come
with

are

Many

now

and many

than

48%

of

the

production

were

near

annual

from

should

of

1.8%

the

to

8.7%.

Tennessee

The

Gas

report

Transmis¬

sion

Company for January, 1954,
that it is purchasing gas
from 102 suppliers in East Texas
and along the Texas Gulf Coast,
the largest supplying about 19%
shows

and

the

largest

Compared
in

the

15

with

many

producing

pi r st

about

75%.

industries

and

the

by

23

times

the

of

consumption.
If
rate of growth in de¬

same

mand

level

a

rate

in

and

proved

reserves

continue, proved

reserves

1959 would be only about 17

times

the

annual

sumption.
at

gas

To

the

rate

future to meet
will

find

a

rate

of

and

produce

required

con¬

in

require strong incentives to

induce the required investment in

Continued

manufac¬

on

page

i ciiiGAJT Corporation

of

'

.

1

Underwriters and Distributors

BROTHERS

STATE,

MUNICIPAL
and

CORPORATE

YORK

Columbus
Port

:

SECURITIES

Member Detroit Stock Exchange

NEW

Member Midwest

DETROIT

—

Battle Creek

—

Flint

—

Huron

—

the

growing demand

'

LEHMAN

on

more

the

of

largest producer supplied
only 8.7%. The percentages for
the 15 largest producers ranged

7;;£;vKv

the

growth of
population and industries and the
competition, no nat¬ construction of facilities to un¬
ural tendencies to monopoly. served areas.
In a special report
While
production
is
primarily in "Business Week" for Sept. 26,
from six southwestern states, nat¬ 1953, it was stated that in Chicago
ural gas is produced over a wide alone over
135,000 names were on
expanse in many states with thou¬ file from consumers who wanted
sands of producers operating
in natural gas heating.
This prob¬
widely scattered producing fields. lem of supplying the demand over
There is no high concentration of the long
pull is a serious one
supplies in the hands of a fe\v when it is realized that since 1945,
producers. For example, in Texas the demand for gas has more than
which
is
the
largest producing doubled while proved reserves
state, according to the figures of have increased only 43%. Chart I
the State Comptroller for 1951, discloses the relationship
graphi¬
the 15 largest producers supplied
cally. By 1953, proved reserves
striction

and the

I

since

demand

ciation

business

The

less




are

or

Commission

petition from other gas distribu¬
The public regulatory body

tors.

sity issued by the Federal Power

in

government

in

Of all
dry holes.

gas.

or

lated.

They operate under certificates
of public convenience and neces¬

too

The

Power

new

States, only

ment. After

Commodity

a

\

turn, and is protected from com¬

investment

is

Gas,

be
re-

exploratory well

finds any

he

Natural

all

business

his

He has

to

Consumers

served.

and

public

a

out

parallel lines
through the streets of a city. The
laying

Investment

America,
1954.

to

himself

members of the

will

mission and distribution.

transmission

property

holds

by Mr. Baker at the 43rd

Convention

distributors;

other

has the power to condemn a right-

Gas Industry

ural gas industry

burden
•An address

tins

Operates

business

ment

by

Natural

How

toward

equipped

tition

witn

operates

for

search

United

wildcat

one

nine

of-way for his lines; he dedicates

student of business and the oper¬

the invest¬
unusually well

which

under a franchise
limits or prevents compe¬

is welcomed.

ations of

our economy,

Hence, the distrib¬

consumer.

utor

subject

the

discuss

to

group

the

The opportunity

opinion.

public

like¬

is

He

position to shape

wise in excellent

sale by a pro¬
ducer

conclusion.

sound

the

in

wells

interstate

developed to

the

In

fields

price of gas in
f.n

and

place the gas produced and mar-»

toward socialization of industry, and big

is

These must

reserves.

new

discovered

supply. Contends price"

gas

gas

problem facing

the

fix

or

fixed, it will deter investment and thus reduce the

regulation of natural

Comm ission
can

a

keted.

Power

eral

gas

]

utility transmission and distribu-7
tion branches involves a highly
risk-taking venture. Its continued
success
depends on exploration

■

held

that

a

Venture

Furthermore, the gas producing
branch in contrast with the public

gas.

public service, and, therefore, like other commodities,

a

price should be determined by competitive and market conditions.

unlike public

The

court

commodity and not

a

in the Phillips

case.1

Risky

upheld the right of the Federal Power Commission to regulate and fix prices

con¬

cerned

preme

is low in the natural gas produc¬

busi¬

gas

are

sumers

vitally
cause

turing business, the concentration

President, Humble Oil & Refining Company

and

chaos,

of

state

a

Supply

By HINES II. BAKER*

producing busi¬

The natural gas

Thursday--December 16,1954

...

Stock

Exchange

CHICAGO

Grand Rapids

Lansing

42

i

Number 5386 ;

Volume 180

The Commercial and Financial Chronicle

.

.

(2479) ' 27

Pattern of Canadian Investment and Trade
By HON. ARNOLD HEENEY*

of

In the exuberant atmosphere

this

Ambassador Heeney, in telling of the development of Canadian

exaggeration.
The

me

almost

since the end of the war,

is

irre¬

sistible,

ments, most

the

for

time,

on

to

call

be-

I

am

dian

going to speak
about

you

Canada.

U.

The

of

story

S. import

been

so

end

the

studded

with dramatic events that its tell¬

almost to compel some
excitement of tone. At practically
ing

the

seems

moment in 1947, for ex¬

same

ample, discoveries

were

made at

widely separated points in Canada
of large deposits of petroleum and
iron ore.
These, when fully ex¬
ploited,
Canada
sources

will, I am told, make
independent of
outside
of supply
in these two

basic commodities. There has been
at least

tion

of

equal drama in the crea¬
will

it is

be, when

completed, the largest aluminium
plant
the

the

500

miles

settled

com¬

almost

of

nearest

The frontier of

munity.

up

Columbia -at

British

of

distance

a

from

world—and this

in the

coast

race.

Says

Canada.

been

north

ther

by

rolled

the

by

hunt

Canada

further and fur¬

these

that

events

is

still

in

and

its

are

The

address

the

43rd

America, Hollywood, Florida, Dec. 2, 1954.

has

been

governed

primarily with financial af¬
fairs, I think I might be permit¬
ted to express the opinion that no
country has been able-to call on
the

services

of

skilled

more

and

seasoned
experts than We have
had in the Department of Finance,
the Bank of Canada and the other

financial

agencies of the govern¬
They have been ready to

ment.

to continue.

the value of

economic

new

doctrine

the

early stages for the most precious of
metal

all—uranium.

of

rapid

has been the
economic

Canada's

pace

of

development

during the past ten years, 1 must
curb my

enthusiasm.

If I

were

to

continue in that vein, I am afraid
that

might find a visit to
Canada
disappointing.
Even as
you were being driven in from the
you

airport

at

Montreal

or

along miles of modest homes (not
masts),
might

begin

suspect

to

had been misled.

you

that

You might

guess—and guess right—that few

Bay

or

where

muted

your

We

col¬

Street

are

cism

Hollywood producer.

a

shy of display and of ex¬
We may deny the criti¬

that

are

we

stifled with

re¬

is paved with gold—that,
for the most part, the men about

spectability. But we must, I think
admit that something of the chill
rigour of our northern skies tinc¬

cautious and reserved,
perhaps even rather staid.

tempers it to sobriety.

of

ours

tures

you seemed

Canadians—A
fact is

The

good

Lot

place

in

that are
Canada, most

members

race.

of

a

a

to

the

the

free

assumed

caused
and

collective defense

^orld.

in

years

internal

had

difficulty

debate, it would perhaps

we
a

no

variety.
have

And

to

cultivate

gar¬

covers

continent, Canadians see
why they should not go

reason

about the task in
way.

a

matter of fact

If you were to lunch in one

the

Mounties,

our

public

would

in

seem

has

cause

of

be

more

mation

side

dignity and form,
pretty modest and

of

the

world

we

con¬

tributed another brigade group

to

offi¬

easier

be¬

of the habits of

year

our

Canadians saved

of their disposable

income; and total na¬
savings amounted to ap¬
proximately 20% of the gross na¬
tional product.
As a result, wo

as

other

financial

made

tional

jet

fighters—stationed
well as an infantry
group
and that on the

our

personal

in

cere¬

of

than 8%

front-line

brigade

obsolete

made

.

been

some

domestic

monies, although certainly not

Jacking

The task

cials

have

Europe

not

principles of the classi¬

Canadian Savings

widely known in this couri>that we have a complete air
division
twelve squadrons of

compatriots call "panache". Not¬
withstanding the scarlet coats of

den

have

the major

try

—

garden

fiscal

cal economists.

I sometimes people. Last

recent

more

and

the econ¬
omy and in their conviction that
essential considerations of human

more

colour, what our French-speaking

if the

share in

placing high impor¬

methods of influencing

have, for example, ac¬

think that, if the substantial over¬
seas commitments that Canada has

agreed that .we lack something of

common or

monetary

on

national af¬

our

controversy, the responsibility

of

natural with

young

lirious search for the Black Tulip.

in

tance

"

highly sober

As is perhaps

servative

cepted with remarkably little fuss
or

Canadians consider themselves to
be

We

and, I think it may'be
said, have made their own original
contributions as well. But, at the
same
time, they have been con¬

welfare
sober

is, I believe, reflected

sense

fairs.

well an.d

as

characteristic' of

in the conduct of

that in spite of the

developments

exciting

taking

Sober

bloodstream

our

That

and growing country, we
of excitement over the latest in Canada have, in recent years,
moves
in uranium stocks.
You
indulged in a good deal of selfwould not find the air laden with
questioning. "And all the analysts
speculative fever.
The year is who have applied their talents to
1954—not 1929.
There is no de¬ examining our society seem

of these people are in any frenzy

to

tremes.

leagues gather, you would, I think,
soon
observe — having
already
noted that neither of these streets

Toronto

all of them with television

clubs

solemn

James'

St.

*

But with these few reminders of
how

50 Years




the

Wash¬

dian Government Service has not

liberal

a more

Canada

assess

half
by Ambassador • Heeney
Annua] Convention cf
Investment Bankers Association of

*An

before

Warns

in

been

Stresses accumulation of Cana¬

Our flowers are of the

has

country has been

no

skilled and seasoned experts in finan¬

Canada and the United States

you

what

more

policy is needed if close trade and financial relations between

the

resources

since

has

war

highly sober

Canadian

of

the

a

that

suppose

Ambassador

soberly and responsibly. But since
my own experience in the Cana¬

capital through savings, and its investment both at home and abroad.

development

of

of

are

the services of

Cites statistics, of recent U. S. investments in

'

A. D. P. tteeiicy

points out that in spite of the exciting accomplish¬

cial matters than has been done in Canada.

first

but

cause

to

resources

Florida

in

am

Canadians

able

not

only because I

I

sense

ington represents Canadians of all
parties.
It would, therefore, be
inappropriate for me to suggest
that

tempta¬

tion for

a

Canadian

enthusiasm—even

of

excess

some

In

-

Canadian Ambassador to the United States

States, a
speaker might perhaps be forgiven
part of the United

of

been

the

net

in

maining

able

to

sources

and

finance

some

gross

from

75%

both

capital for¬

Canada—only the

25%

re¬

being financed di¬

rectly from non-resident sources.
At the

same

time, of course, Cana-

Continued

the fighting in Korea.

on

page

52

Orowtli wi tli Calif ornia•«♦

Lm,M

•/

IBank of Atttrrtra
NATIONAL

SAHmno'S

Bond Investment
SAN

FRANCISCO

ASSOCIATION

Department
•CALIFORNIA
-\

United States Government Securities

STATE

MUNICIPAL BONDS
and

Specializing in the General Obligations of the State
/

of California and its Political Subdivisions
'3

28

(2480)

The Commercial and Financial Chronicle

,

Thursday, December 16, 1954

*.

.

'

i\

■...

in

Recent
At

the

opening session

the

of

Orlando S. Brewer,

Annual Convention of the Invest¬
Bankers

ment

Association

such

of

subjects

as:

(1)

Municipal Field
then

Chairman of Municipal Securities Committee, reviews

of photo offset copies of approving legal opinions;

use

Florida,

York

a

government

of

the Committee

and
j.

it finds that the
recommended procedure would as¬
WHEREAS,

months.

12

full

the

of

text

report

such'

follows:
mittee

of

Reports

this

submitted

were

Com-;

to

of Governors at its

Board

our

Winter

copies,

now

the

of

of

Board

Investment

the

Governors

Bankers

America

of

Associa¬

recommends

to

Meeting in February and at its
Spring Meeting in May. In this, its members and to dealers gen¬
Annual Report for the current erally the use and acceptance of
year, we will outline some of the photo offsets of approving legal
subjects of particular interest to opinions or copies prepared
the municipal field.
through like processes where such
our

reproductions

Approving

Legal Opinions
On
to

May

our

27, this

year,

membership

copy

20,

1954.

Governors

It

is

May

on

self-explanatory,

reading:

•

of

New

York,
recognizing
the
time, cost and possible errors in¬
volved
in
preparing
copies
of
opinions approving the legality of
municipal bonds, recommends the
use

of

photo

offsets

such

of

opinions.

WHEREAS,
curities
ciation

the Municipal

Committee
has

of

our

Asso¬

carefully studied

procedure

recommended

Municipal

Forum

v

of

by

New

Se¬

the
The

York

fundamental

of

the

to

municipal

This

and

to

various

subject

open

last

year

per¬

bring

legisla¬

states.

discussed

was

at

meeting at Hollywood
and again at our May
It was unanimously re¬

meeting.

im¬

this

action

there has been
ance

of the

of dollars and
saved

by the Board

general accept¬

a

procedure.
man

Thousands

hours will

be

in the future in the cost of

copies of approving

Further, accuracy
preparation of
such opinions. Great credit should
be given to the Municipal Forum

is

assured

of
in

New

in

the

for

York

advancing

offset

copies
opinions.
In

addition

the
of

its
use

fine

of

approving

work

Commercial

the
in¬

securities that legisla¬

tive enactment of the Code

clearly
designate that securities issued by
government

agency

unit,

or

governmental

or

including

those

payable from a particular fund,
be negotiable instruments. Initial
distribution

will

The

and

also

secondary

Pennsylvania

latures

other

of

mar¬

benefit.

Legislature

enacted this Code last year.

Legis¬

have

states

the

steps taken
in regard to photo offsets of legal
opinions we have also previously
reported concerning the proposed
Uniform Commercial Code, nuis¬
ance

suits, and

simplification

in

As

will

are

being made by legislative
of

bodies

This

of

several

coming

the

will be

year

states.
one

in

which almost all of the states will
have

legislative

years

be

IBA

collaboration

the

Association

Bar

with

suggestion

of

at

and

Mr.

Municipal

Harold

Section

Law

of

the

appointed
a
Liaison
Committee and the Municipal Law
we

Section

of

the

did likewise.

ABA

These Committees study problems
of mutual interest and concern to

sessions,

either

Further reference to the

by these Liaison Commit¬

two

recommended

were

for

immediate action.

Each represents
important phases of municipal fi¬
nancing and involves legislative

subject

regular or special.

at

this

able

is

time

because

of state and

ume

above

in

was

the

in

the

may

printed

supplement

easily be overlooked,

particularly in view of the size of
the

legislation involved.

ingly,

it

is highly

introductions

Accord¬

essential

close watch be kept upon

tive

Securities

that

legisla¬

respecting

As stated in

our Interim Report
May, the substantial growth

of last
in

number and

of

quired

on

sultant

manual

the

signatures

bonds

and

delay in delivery.

.When

this

issues

r,millions;
of

in
to

the

larger

more.

well

at

re¬

Some¬
manual

up

times

this

factor.

the matter

and

run

and

millions

re¬

the

times
as
many
as
four
signatures have to be placed
the bonds.

tremendous

Co

of municipal

brought to the front the
problem of time necessary for the

the

&

size

issues has

number

contin¬

The proposed form of the
being considered is brief and

cordingly

be set forth here.

may

It follows:

"Section 1. Public securities here¬

tofore
be
one

more

at

Dollars

($10,000,000)
be executed with an
imprinted, stamped or

may

upon

into

ted

to

be

required

permit¬

or

recorded

thereon, if so
by the Board, body or
officer empowered by law to au¬
authorized

thorize the issuance of such

secu¬

"Section

2.

The

as

securities'

used

words

bonds, notes

mean

'public

herein

shall

other obli¬

or

gations for the payment of money
issued by this State, by its politi¬
cal subdivisions, or by any depart¬
ment, agency or other instrumen¬
tality of this State or of any of

its

political

"Section

subdivisions.
3.

This

Act

shall

thoughts

only in respect
issues, $10 million

At

the

Annual

or

seals."

Meeting of

American Bar Association

on

Continued

Underwriters, Brokers

and

on

page

and Dealers

t

,

Municipal Securities

♦

1.

,

since 1886

W. E. IIUTTON & CO.
Members New York Stock

NEW YORK




and other

CHICAGO

Burlington, I
Hart ford,

t.

Conn.

Exchange■

leading exchanges

NEW YORK

CINCINNATI

Philadelphia

Baltimore

Columbus, O.

Lewislon, Me.

the

Aug.

17 the following resolution on the

Shefelman,

Corporate

not

repeal any other law authorizing
the execution of public securities

a

are

Mr. Harold

endorsement

hum-! with facsimile
signatures

becomes

Our

signature, seal or other means
authentication, certification, or

any
of

■■

Exchange

to

any

principal amount of

a

Million

authorized

delivered

and

time in

Ten
or

hereafter

or

issued

distributing
Members New York Stock

act
ac¬

rities, provided that at least one
signature required or permitted to
be placed thereon shall be manu¬
ally subscribed.

The Execution of Public

negotiability

printed vol¬
of the proposed Code but ap¬

pears

follows:

provision

municipal bonds

included

not

them

accordingly desir¬

the

designating

clearly

enactment by the states. Reference
to

prompt and

our

otherwise reproduced facsimile of

Among the several subjects con¬
tees

merit

engraved,

the two associations.

sidered

Legislative

ued effort.

Shefelman, then Chairman of the
ABA,

State Laws.

matter is of sufficient importance
to

the Municipal Law Section of the

American

dreds

Bear, Stearns

Uniform

recalled, about two

in

ago

to concur in the proposal
Tdy ^si?* in .its
advancement
through • the Commissioners on

action by our states will obviously
take considerable time
but
the

>

not

yet done so although studies of

which
to

the

Municipal Section of the ABA and

Code

the interest of both

is in

kets

that

negotiability feature is included.

vestors in and issuers of state and

a

make"certain

Liaison Committees

Uniform
It

photo

legal

to

ness.

preparing and furnishing dealers
legal opinions.

Code

busi¬

as

and investors

WHEREAS, TheMunicipalForum

of public securities

it

Since

concerning legal opinions
municipal issues which
resolution had been adopted by
of

approval

attorneys whose opinions are
recognized to be nationally mar¬

sent

covering

Board

the

of

of a res¬

olution

our

have

ketable.

we

being

municipal

THEREFORE, BE IT RESOLVED,
That

tion

Photo Offset Copies of

all

portance

sure
accuracy,
be legally effec¬
tive and result in substantial sav¬

ing in time and cost in preparing

execution

the
—

u.vntc

of investment during

in this field

State Laws

associations

the

of

in¬

Asso¬

our

the attention of the

our

relating to municipals.

by

bill

situation

solved

respecting copies' of such opinions,

his

Interim

it to

re-

Onanuo

The

dis¬

or

a

this

request the Committee

haps other

re¬

committee

last

(4) the elimination

to

Uniform

on

suits." Calls attention to continued large volume

Lists court decisions

covering the
developments
the

ciation

negotiable instruments; (3) simplification of

as

Municipal

draft

relieve

to

and when approved

pay¬

municipal issues, with slightly lswer income yield since October, 1953.

new

Municipal

port of

unit, including those

tended

tures

City,

Securities,
leased the

agency or

signing of public securities, and

couragement of "nuisance

Chairman of

on

governmental

specific fund,

a

execution and

New

Co.,

or

by

able from

S.

Brewer, of
Phelps, Fenn
&

a

issued

on

November 28,
Orlando

Committee to

son

Uniform Commercial Code designating securities

(2) the enactment of

w&rswwvi

the

of

Association, requested their Liai¬

Americain

Hollywood,

Chairman

Law Section of the American Bar

Boston

Dayton, O.

Easton,Pa.

Lexington, Ky.

Portland, Me.

45

Volume 180

Number 5386

..

.

The Commercial and Financial Chronicle

(2481K 29

BasicTacts in Dixon-Yates
Clarence
&

W.

Bartow

of

Drexel

of

the

Public 'Service

report

to

vention held at
on

the

At

Con¬

dustry aggregated about $2 billion,

or

of the report follows:

period of previous

Committee

meeting at
White Sulphur Springs last
May,
it was suggested and
unanimously

are

Reports

same

in the

as

are

at

a

to

1

p n u a

Convention
committee

port
the

has

later
been

discussion

in

this

good

a

talk in the last year or

and

pros

of

some

detailed

more

matter

There

re-

should

reflect

a

this

•

of

cons

Government of

problems

the

some

that the attempt to

on

the

of its electric

generating

ical

that in most instances the genera¬
tion
of. electric
energy
was
a

interests.

of

areas

the. country.
C e r t a i n of
those,

sideration

to
prepa-%

ration of

a

re-

port based

private

and

that; the .primary

purpose of; dam - construction ; by
the Federal Government has been

to cooperate

the

to

It must be remembered

secondary/* or, .supplemental ^con¬

*

present:

kindly agreed }
in

properties

Clarence

such consider-

;

ations. Rightly
preparation of

,or.

-

W.

for .vast

Bartow

stallations

.'

reclamation*

and irrigation projects. The inter¬
state nature of many of these in?

;

on

provide

their

and

-

indissoluble

connection with the land improve¬

wrongly, ..the
reports fails,

Dixon-Yates
continues

levels

of

to

in

rage

issues

objective

an

and

,

for
being
supplied by Electric. Energy Inc.,
With the recent completion of a generating company formed by
unit No. 6 at its Shawnee steam five private
utility systems for
plant, the system capacity of the that purpose. Credit for initiating
Tennessee Valley Authority
in¬ this pioneering venture in private
creased to 6,619,185 kw. Of this, enterprise is generally
given to
steam
now
represents 3,137,250 A. E. C.'s Commissioner Thomas
kw., or 48.4%. This percentage Murray, who encouraged the ex¬
will continue to increase as addi¬ ecutives of these companies, under
tional T.'V.. A. steam plants, al¬ the leadership of W. A. McAfee of
ready approved by the Congress the Union Electric Company, to
and ubdei: Construction,- come on join together to provide the huge
the line., T. V. A. • has indeed blocks of power which would be
wandered far from
its
original needed. Initially, these companies
constitutional purpose of harness¬ offered to provide the full re¬
ing and developing the turbulent quirements at Paducah. The
waters
of the Tennessee River, T. V. A. made a similar proposal.
although its defenders point out The result was a compromise and
that a large part of its output— the arrangement that each supply
perhaps as much as 30% — is part.
.•/ / '
;
dedicated to the A. J5. C. program
The pattern of Electric Energy

It

will

be

power

-

on

the Ohio River at the northern

boundary of Kentucky,
tance

T.

from

the

some

service

dis¬

area

V, A.

of

although it is inter-con¬
nected with the system.

,

_

but

few,

fundamental,

Underwriters and Distributors

(

permitted
of

amount

the

debt

structures.

in

:

^ WitTi the' Congressional impasse
appropriations for the Fulton
plant, and in line with the present
Administration's program for
minimizing the role of the Fed¬
eral

Government

howed acted to

secure

Company, -both
connected with

changing
forward

inter¬
and '[ex¬
with it,came
plan to construct
presently

T., V. A.

with

a

600,000 kw. generating plant at
West Memphis, Arkansas. For this
a

was

followed when 15 private

they organized the Mis¬

purpose,

sissippi River Generating Company
companies joined to form the Ohio with- Middle South
owning 79%
Valley Electric Company tq sup-v of its stock and Southern Com¬
ply all the power requirements
pany
the remaining 21%. They
for the larger atomic plant going
proposed to make a power con¬
up at Portsmouth, Ohio.
tract
with the A.
E. C.
which
Contracts for both these plants
would in substance replace part
were negotiated with the A. E. C.
of the energy being supplied by
without
controversy
or
public T. V. A.'s Shawnee station to the
conflict during the Truman Ad¬
Paducah installation. This would
ministration.
sures

the

supply of
period i at
amortize

Each

price

a

the

and

to

provide

the

relatively

panies.

life

terminate.

of
a

designed to
the plants

the

contracts

fair return for

equity

small

of the

The

constituent

contracts

in¬

com¬

may

under

certain conditions. The constituent

companies
interim- and

undertake

back-up

to

release that amount of energy

elsewhere

use

ji

system.
Common

sense

dictated that the;

plant be constructed near the load
center at Memphis so as to save
transmission

costs.

MUNICIPALITIES^ AUTHORITIES

PROVINCES^

•

-

supply

power,

dustry.
that

which

Federal

the

INSTITUTIONS*
.

are

Available

BANKS

•

INDIVIDUALS

>-

•

to

Shawnee

Continued

and

Underwriters and

of
/

Corporate and Municipal Bonds
Investment Preferred Stocks

.

.

:

CORPORATIONS

DEALERS' " '.

-

Union Securities Corporation

i {

Oi

65

Incorporated
t

■

*

63 Wall

Street, New York 5, N.

I

CLEVELAND

:

PHILADELPHIA

BOSTON

s;

Broadway, New York 6

1

!

»




'

DETROIT

-

•

Y.
BOSTON

•

BUFFALO

CLEVELAND

CHICAGO
READING

HARTFORD

PHILADELPHIA

Government,

already financed
station
for T.
V.

FOREIGN GOVERNMENTS

Our JFaeiiitfea

1

dis¬

had

and

\

t!

a

the electrical in¬
The net effect would be

Equipment Trust Certificates

MUNICIPALITIES

•

Such

placement of power arrangement
is of course a common engineer¬

THE CANADIAN GOVERNMENT

♦

►

•

for

in the T. V. A.

ing practice in

Government

the

as¬

firm

a

of

cost

the

of

for the contract

power

during

vestment

contract

Government

MUTUAL FUNDS

STATES

-

power

RAILROADS

/

the needed

for the Memphis area. Two
private : utility
systems,
Middle
South Utilities and The Southern

;

INSURANCE COMPANIES

•

power

power

INDUSTRIAL CORPORATIONS

BANKS

the

in

picture where local agencies
(either - public,; private,
or
in
partnership): are capable of pro¬
viding service, President Eisen-

.

Inc.

and Dealers in the Securities of

•

preponderant
their capital

,

over

Capital Issues

PUBLIC UTILITIES

ar¬

whose

that the real issues involved

seen

are

involved.

facts

basic

in the public press. We will come

of

and

opinion

Here, then, is an attempt at a
dispassionate presentation of the

the highest

Administration

the

form

to

which

controversy

locate the real

cult to

slowly and is perhaps
public mind on the

focused in the

the

the Paducah atomic plant is

ment
program,1 makes it highly,
our
impractical- to separate the two
upon; the Committee Chairman,
dedications, as ptivately owned
and unfortunately jhe has been out
companies are not particularly in¬
of the country for; several weeks
terested in the land improvement arid that this steam is needed to
just prior to the Convention. Ac¬
end of the program.
firm up its hydro production.
"/"
cordingly, it has not been possible
In any event, we have it from
Like the rest of the nation, the
to prepare a report along the lines
Ralph Tudor, Under Secretary of area served by T. V. A. since the
discussed at White Sulphur. The
the Interior, that the "For Sale" war has required an ever increas¬
Chairman regrets deeply his in¬
sign is not being put on any of ing supply of electric power. To
ability to take advantage of the the
Government's
large
power help fill that need the T. V, A.
aid and help of certain Committee
projects—except in. the case of a projected construction of a $100,members and apologizes also for
State which might come in with a 000,000
steam
plant at Fulton,
the brevity of this report.
How¬ concrete
proposal
to
purchase Tennessee,
to
serve
the
load
ever, he does want to record with some intra-state
facility. If such center at Memphis. Despite a clear
thanks the unfailing help and ad¬ an
eventualrty
transpired, - the showing
of
impending
power
vice of Jerome Ratzin of Kuhn,
ownership' would ^still .remain in shortages, the Congress, while still
Loeb & Co. in the preparation of
under Democratic control, twice
public hands.
"
the two reports which this Com¬
refused
appropriations
to
con¬
:
Dixon-Yates
mittee has presented.
struct the Fulton plant.
Not
since
the
1930's
has
the
There are many areas of the
In
the
meantime,
to
supply
utility industry which merit our country been stirred by a public
power to the new atomic energy
attention but we cannot cover all utility question as by the Dixonplant at Paducah, Kentucky,
of them in a brief report. How¬ Yates controversy. In the highly
T. V. A. constructed the Shawnee
atmosphere of an elec¬
ever, the public power policy of charged
steam station. This plant is located
the Adm inistration has been tion year, it has been most diffi¬

evolving

of

these

Holding Company
provisions, if strictly
applied, might not have permitted
all of the participating companies
to join and certainly would not

•

by the

facing partic¬
ular geograph¬

balance

Exchange

that

them from the
Act

have
The

resolve them
,4

so

sale

of

and

found

fulfilled an essential
purpose
and exempted

national

same

record levels.

report.- in the political arena has led only
deal of to obfuscation and confusion.

Securities

rangements

agreed to by all those present that
our

termination.

of

The

Commission

financing by the electric utility in¬
approximately

surplus power
plants. They must also
the plants' output in the

the

absorb

con¬

Points out dividend payments by electric utilities

year/

entitled to any

from

event

"a violent partisan conflict."

as

that in first nine months of 1954 total

„

text

the

troversy, and condemns the affair

Hollwood, Florida

Dec. 2.

The

43rd

Committee, under the Chairmanship of

Clarence W. Bartow, reviews in detail the Dixon-Yates-TVA Contract

Securities

Committee
of
the
Investment
Bankers Association, presented its
annual

Public Service Securities

The IB A

Company, New York, Chairman

Controversy

SYRACUSE

on

page

the
A.,

90

30

(2482)

The Commercial and Financial Chronicle

Thursday, December

...

16,1954

Research and Statistics Committee's Final Report
On Nov. 30
Convention

at the 43rd Annual

After ten years, the

Investment

the

of

winds up

Bankers Association of America,
held in Hollywood, Fla., the final
report of'tne

Committee

of

was

to

Chairman,

W.

Yost

librarian and statistician and

act

e

i d

as

Ful¬

&

CI evel

nd,

Ohio.

much

w^s'know about

indus-

our

and

the

Th*
1 W

nf

the
me

•'

rmmrf

rcPuri

.

has

promised

final report for

a

if

U

you

committee

Has

number

a

not *° be

3r€

not- yet

are

However,, that is

quiet

JOUVWb.

...

Committee

believe that this

ready

is that report,

the

Your

case..

functioned, if our

approval'

and

of

support

,vV*?at has been going
called

'

years.

mittee

°n can be
functioning," for some 10
The purpose of tne Comthe

was

existed

an

in

and

industry at

hard

to

fosand

encourage and

the.capital

markets,

.....

is

to

research

securities
that

re¬

any

respect—rather that it should in¬
crease. * There is much still to be

this

is

report

to

This

is

report

mailed" to--from

be

in

The first part is

three

Wharton

the

lows:

"'

-

parts, -i- "We

staff,
/

as

*

^

■

folJ

means

rather. strongly
should be-found, for

com-

piling

comprehensive
the research -of

a

bioliography. of

J. i?.

"sa-v

member of the Association,

every

.

'•

'

■

by all of us in the indusmuch 11'vt vvm wv.
try. and 1'iuv.ii more will be deCUJU
manded of us. in; the days to come
than we have been called upon to

feel

current

data

com-

that

the

on

know in the days gone by. We- urge that the work of: this
Committee be part -of thes staff
i

research

iovi
U£XL

Si
blamed

as

to

in

securities

.

Our

ier

attention

Euitou

tenng of

to

asso¬

diminish

should

search

the

to

this
its

the encouragement

pose

you

v1

,■.

of

This

try now or how much of knowledge is available to us, how little
been function- of such knowledge was available
ing for the last,, tp- us a short 10 years ago.
Yost

information

out

this does not mean that

Association's

the

while

that

rounded

has

Committee

known

..d-'V

;

committee has

W.

distribute

to

recommendation

staff member of the association

a

from time to time.
make a further

upon

want

We

ciation's members.

Co.,

a

call

can

relating to over-the-counter security

appoint

to

ton, of Fulton,
R

individuals within the Association

purpose,

Approves proposal

library information that

from that

made by the National Bureau of Economic Research

markets.

pre¬

sented through

its

to survey

and the studies of the Wharton School

Associa¬

tion

its activities by reviewing its work and accomplishments in increas¬

Calls attention

Statistics

the

keep our library up-to-date on all
research available,
and to draw

Chairman,

as

ing and expanding information about securities and the securities industry.

and

Research

Committee, headed by W. Yost Fulton

i.

fill

to

a

void

handicapped
every

It

turn.

...

us

a survey of research" the ^Association; ahd^shouid ^be': feel,'ion al least an annual basis. - tician-librarian.that we-have men^
oriri
ooH
K.r
.cwilfl-.ciiruWc';
'tinftpri
It will he Well
needed and indicated in our area, read by every partttter ^ofyevery1^;>uLarger-scale »&u,rveys rvr/Sh-iKl
probablygtiohed, it will be well to retaikl
to. retain

search made
J..

.

on

up an almost

almost

an^

WOrk.

A

complete need for

a

last spring, in

year ago

anticipating this report,
asked to contribute to:

you

were

0f research in the capital and se-

curities

markets

"

Bureau, and
,

by

'

-

the National
-J

-

made

you
.

„

^

-

1'

available
,.

...

Bureau, in cooperation with

the

curities Dealers, a

The

purpose.

grant for

that
have

been given a copy of the printed
report that results from that grant.
T,

.

It

is our

.

j•

.

■

ji

.

understanding that

a copy

'

section deserves careful scrutiny' entials.
There is a great deal to
by your Executive Committee and be said for obtaining the latter
by you as a board, y
'
material on a current basis. This
The third section of the.report .could be used to overcome a good

ibe

opinion

of

the

National

Bureau of Economic Research still

needs to be done in

our

recommendation

tirety.
we

This does not

urge

mediately.

do

to

you

en-

that

mean

all

think

We

its

in

of it im-

should

you

study this section

you

that that

agree

that
fited

by

any

all

or

and

A

of

that

re¬

that

aiso

feel

deal

great

a

second

the

part of

another

eighth

report in-

our

document.

monograph

prepared

was

by Dr.

It

of

is

the

Friend, Mr.

Hamburg and Mr. Schorr and
■f

ni

4A

fers

to,

ferentials

Association

all that the
over
the

on

you

has

done

take-advantage

to

years

re-

TYi-P

v*t

Dif¬

Price

and

This

has

report

been

carefully scrutinized by the plan¬
ning committee.
statistical

studies.

spite

of

work

that

done,

It completes the

portion of the Wharton
We

must

in

confess that

enthusiasm

our

the

Wharton

spite

of

in

the

for

staff has
assurance

our

that this work will be of extreme

importance to
fact

we

in

us

our

advised

are

be

can

experimental

an

effort,

ductory

the

able to

of

gained

Since his
and

introwould

work

negligent if

.

,

work

(in

again

and

again that it has already been of
great assistance to us), we still

are

.

,

.

,

,

.

,

,

but current material should be ob.

.

,

.

,

tained

to

,

,

.customer

transactions

,

broker-

or

and

,

y

We

include

would

1

classes

all

stitutions, and all
activity.

of

types

This

,

.

■
...

of those

As

a

in

and

stature

to

reach

in

our

Public

Utility and Railroad Corporations

Bank and Insurance

staff

in

not able to

was

some

be

RESEARCH

STATISTIC

AND

COMMITTEE
W. Yost Fulton, Chairman

Fulton,

endorse

Reid

& Co.

Cleveland

an

ac^on recently taken by your

Executive

Committee.>

We

Hal

be¬

tion

^es but ma^es necessary

John F. Fennelly

Chicago

member of our Association,
whether
could

a

act

man
as

a

or

a

librarian

Charles S. Garland

who

woman,

and

Co.

Glore, Forgan &

staff

a

Dewar

San Antonio

available not only justi-

now

II.

Dewar, Robertson & Pancoast

lieve that the amount of informa¬

Alex.

sta-

Brown

&

Sons

Baltimore

tistician, to be constantly aware
work that is being done, to

Edward Hopkinson, Jr.

Drexel

&

Co., Philadelphia

the

of

area

Company Stocks

in

of

sure

Securities of the International Bank for

Reconstruction and Development

them

Over-the-Counter
feel

-

that

made.

this

All

available

of

in

Distributor

•

Dealer

perhaps
see

it

the

ever,

Market.

put to that

Philadelphia




Cleveland

•

San

Chicaco
Francisco

use.

amount

the

Wharton

monumental

Pittsburgh

is

study

a

Wharton

work,

of these days we

one

Securities

bet

information

such

the

Corporate and Municipal

We

should

the

great

as¬

listed

of

How¬

Established

in

value.

INCORPORATED

equipped
will
in

be

many

to

use

their

We quote

as

from

effect

if

Stock

Exchange

NEW YORK

and

we

are

help to

time goes
a

Midwest

CHARLOTTE

them, that they

of inestimable
ways

Members

monographs

believe

We

1919

R. S. Dickson & Company

infor¬

mation that has been accurru'ated
makes

Boston

to

appropriate

study

for

necessary

Foreign Dollar Bonds

seem

more

a

or

that

satisfactory

a

can

New York

DEALERS

DISTRIBUTORS

UNDERWRITERS

of the character¬

stocks

and

•

determining what

other words,

market

Underwriter

with

should and should not be listed—

Bankers' Acceptances

•

up

conclusions, however vague,

istics

Canadian Bonds

come

us

on.

letter received

posi¬

economy.

Respectfully submitted,

mar-

„

to

constructive

and

mature

of

final portion of this report,

Committee wishes

contributions should

help this industry in its effort to

done on a periodic basis.
our

of

,

available to us.

is

6

in-

might

too

.

knowledge that

tion

ket

,

accumulation

markets.

just financial

not

the

°thehVh°
whatever

for

,,

to

purpose,

a

customers,

be

the 17 defend8"

t0

contributed,

have

increase

exchange

would

did not again tip

we

0f America, and to

effecting
over-the-

Committee

we

the Life Insurance Association

to

All

for

the

in

and

counter

..

provide insight into the

for

preferences

dealer

,'

....

and

somewhat disappointed in that the

Bonds, Preferred and Common Stocks of Industrial,

the

corn¬

hat to the Merrill Foundation,

our

«rmS
.

Education

w0rk

its

on

"We particularly

us.

the

mend

strongly

by Dr. Wright Hoffman.
was

Over-the-Counter

on

Markets."

T)

r»M/-l

rf

V>

"Pricing

rather

a ma-

by carrying on the survey started

reasons

carefully done.

Wharton School study of over-thecounter markets. This monograph

State, Municipal and Revenue Securities

«We

-

that is

search

volves

and its Instrumentalities

support over the years.

your

We commend

will

exists,

need

you

industry would be bene¬

our

the-counter markets and as
jor tool for self-regulation.

Our

area.

Committee is willing to endorse

as

Securities of the United.States Government

and

-

an outline of the research that deal of prejudice about the over- increased knowledge that is avail-

be cognizant of the need. We think

Investment Bonds and Stocks

• the
services of an outstanding
to. bring up-;economist to advise us-on ourat-

,ys; say.

.

that

how

let

years,

port is a suggestion as to. what ofy to-date the material on the char- titude . toward research and ;, in
the work that has^' been-' /done/ acteristiejs o£transactions in the ways that it can be'made*;most
should be continued to .get. the Over-the-Coyhter Market and the useful.
J-;f
^axi^um benefit from ft. '1 This, work" on pricing and price differ- VWe appreciate your/ patience

ln

Governors

v

-once -?ev*?ry

The second portion'of that?Tie~£-five

•

National' Association'"of Se* is
,

oraor

^

.

resurvey

a

ovarv

firm. ■;

bl^nk 0f work that had been done

,

believe, looking

Oiurv

-

This survey pointed

Raleigh

Greenville

Atlanta
Direct

Wire

Between
Atlanta

New

and

York,

Raleigh

Charlotte,

Offices

CHICAGO

Richmond
Chicago,

Volume 180

Number 5386 .v. The Commercial

*

r

State
Paul
of

L.

the

as Chairman
Legislation Com¬

Paul

mittee of the Investment Bankers
Association

of

the

America,

in

the committee
N

o n

3

o v.

regular session during 1954, securities

and

0,

its

covering

Forty

Annual

regulation and to recent amendments

Investment

Con¬

vention of the

Advocates

F l

a.

;

only

states

Acts

the

!

securities

The
The

have

sessions

in

amendments

to

in

acts

,

legislatures
been

sessions
few

in

of

by

Much

year

regular

Some

states.

several

arisen

of

year

.

Wilbur

.

adoption

different

America,

or

the

In

requirement

that

broker,-, agent

Y

shall

use

States
or

Securities

new

acts,

been

have

pre-

states

procedures

designed
with

under the Federal
as

the
per-

Secu-

amended this

•

-

-

the

under

accordance

rities Act of 1933

0ffm t0 SM and SoJicitation
of offers t0 Buy Se~urities>
Orally or in Writing, Prior to

(c)

Act.

committee

by the Governor

Kdted MfrPaF?^nB<i

ap¬

State

for the

Registration:

no

a

neb

e

ft' 1933

states,

sell the securities or a solicitation terpretation of the Ohio Securities
of an offer to buy those securities. A t (
- burden on interstate
consequently,
many
or
Consequently, in
of the.,.
v
...
—
^- commerce) for the Ohio Division

?^es where lstnibutron oi jden- of Securities to require non-resitrfymg sta'events has Iba|n P®17 dent dealers to- obtain licenses
™tirin Is if lu
offer
under that Act 'N/7
}° rfs,
fofsale
to solid/of fers.
of
se-

.

-

or

J.

of

Co.,

Spokane),

& Co., Seattle)

man

in¬

&

Wilson

and Mr. Lyle

Com-

Northwest

securities

Se

Tennessee, members of this

1

company,

(Equitable

Nashville)

person

sentatives

con¬

of

Corp.,

Securities

worked
the

with

Blue

"

1

unlawful

committee and Mr. Gus Halliburton

f

fhe

tieg)

N

Chief of the Ohio Division of Se-

/ curities)

posr

(HavCleveland),

Mr. Dana Baxter

]y[iller

den

-

&

Co.,

„

,,

'

-a-j.-•—i-i.—

J

prior
,

to
...

state

registra

.

.

1

,

,lnvo!Y?.

,

to state registra-

prior

«on of those securities. Such pro,
visions
model

are

laws

in the IBA

embodied
and

are

Ohio

Group,

Valley

Heimerdinger,

Cincinnati)

Continued

presently in

Sky

of

of

the

least

advertisement

with

filed

of

the

from

Securities

the

trust

company,

surance

tion.

broker,

to

Act

In

ex¬

re¬

national
or

any

new

a

North

\

Carolina,

act

a

for
■

a

special

committee of the Securities Deal¬
of the

ers

Carolinas, including Mr.

Glenn Anderson (Carolina Securi¬

a

bank,

ties

Corporation, Raleigh), Chair¬

in¬

man;

corpora¬

state

Mr. R. S. Abernethy (Inter¬
Securities Corporation,

Charlotte), Mr. J. Murrey Atkins

.1

Underwriters

—

-

!

UNDERWRITERS

I

I

;•'

,

'

.

'

•

•

•

•

Established

Dea lers

1868

PUBLIC UTILITY, RAILROAD

INDUSTRIAL and MUNICIPAL

Spencer Trask & Co.
25
I

BROAD

STREET, NEW YORK 4, N.

Y.

*

Members
New York Slock Exchange

W. C. Langley & Co.
Members

New

115 Broadway




Tel.

York Stock Exchange

New York 6, N. Y.
BArclay 7-8800

ALBANY

NASHVILLE

BOSTON

J

-BROKERS

DEALERS

Distributors

SECURITIES

CO
1

in the

bill embodying
securities

Tennessee.

the

registration

savings bank,

company

complete

at

quirements of that Act sales to

registered

preparation of

been

use.

amendments

Massachusetts

empts

has

Commissioner

day prior to its

one

One

the

Banking

Gov-

^

Divi¬

fered

and

John

on page

sion of the Tennessee Department
Insurance

Mr.

Heimefdinger (Waiter, Woody &

repre¬

cerning

any security sold or of¬
for sale by it unless a copy

by

Division of Securij Kiraly (Assistant

Qhio

Mr

attended

was

^.!1?5i^dei"°i?,nl?.a.ct"?i Sai£S„?n^ sible .state securities acts be Cha'irman> Northern Ohio Group,
contracts to sell, but also offers to amended to permit oral and
nprm1-„
Murnhv
(The
Ohio
sell and attempts to sell or solici- written offers to sell securities Mr- Dennis Muiphy (ine unio
tation of offers to buy. In these and solicitation of offers to buy Company, Columbus), Chairman,

Mr.

Water-

Seattle).

pany,

In

(Pacific

Judge Edmund H. Savord (Chief

to effective date). Many of the registration.
state secunties acts define sale
We recommend that where

Inc.,

Waterman (Earl F

Ohio, a

consider methods of

meeting

This

t^ eHeciiv^^atel1 Manv^c/ the the- +eff®ctlve date of Federal

Merrill &
Spokane), Mr.
Nicholls
(Walter" J.

(Richards,

Nicholls

within

satisfactorily solving the problem.

waitln? P-enod under tt1® F(rd~ permissible to offer and to solicit
eral Act (i.e. after a registration offers to buy securities prior to

Spokane), Mr. Waldo
(Waldo Hemphill "Investments, Seattle), Mr. Beardslee

Co.; Inc.,
Hemphill

Earl F

place

takes

sale

Meeting wafhefd taColumbus'on

Sntrio^^^de? th^Fed advantag^ \n s*ates w,hefre ]f- *8

Harper & Son & Co., Seattle),
Mr. John J. Hasfurther (Blyth &

Walter

period;

generally, the. amendments ,
Although all but nine states suggested in the preceding pars-/
(Idaho, Iowa, Mississippi, Mon- graph appear to provide the mom
tana, Oregon, Rhode Island, South satisfactory procedure,
Dakota,, Texas and
Wyoming) ^ Registration of Non-Resident
have permitted distribution of
Dealers in Ohio:
identifying statements by regis-';; In- January the then actin*
tered dealers prior to state regis- Chief f the- ohio Djvisjon 0f Setration of the securities described pllHtip„ „pnt letters to about 50
therein if a registration statement non.resjdent deaiers whotad alfor those securities has been filed jeclcedly engaged in transactions
under the Federal Securities Act with institutions in Ohio requestof 1933, such distribution.has beeii . •
gucj1 fjrms obtain a dealpermitted in a majority of the erg jjcense jn Ohio or discontinue:
states on .the theory that such transacti0ns with Ohio residents,
distribution constitutes only the
gince there is a controversial"
dissemination of information and jegai problem as to whether^ it
does not constitute an offer to wouid be an unconstitutional in¬

ta^nMuS ties Actr of 19f33> Prior to sate -^'"Vto

P.

Peterson,

securities

written offers to sell securities registration of those secunties.
and solicitation of offers to buy Dealers will obviously have ail

tie), Mr. Sherman Ellsworth (Wm.

Merrill

securities or

offer the

to

but,

-

•

..

was amended. thU year to mitted under the Federal Securi-

(Conrad Bruce & Company, Seat-

or

advertisement

any

obtain

to

year.

the

of

permit

missible

far

nas
Been
bill has been
provide a complete

to

Members

guaran¬

or

other

or

Se-

a

Washington

new

or by the
by any
state, territory, countv,.municinality or taxing district therein" from
a'

as

thus

year

Washington,

prepared

thereof,

Columbia

of

several

in

way

pre-effective date procedures

"

during the

Cali¬

territory

any

sular possession

District

out

Acts

to

only securities issued
teed
by
the
United

have served

men

J"-!—Al

Corporation Code exempts
advertisement "concerning

any

three

states

complete

of

in

pared

during

because

year

Commissioner

curities

adopted this
securities
acts
of

amendment

difficult

more

current

under

amendments

state acts in

of these amendments.
The

.Texas Securi-

new

a

toward

somewhat
the

to
the
Arizona, California, Louisiana,
Massachusetts,
and
Mississippi.
Appendix A contains a summary

fornia

other

several

to

were

year

of

work

also

ties Act. This work has been made

Amendments to State Securi¬
ties Acts, This Year:

Amendments

continued

Company,

Marshall

.

adoption

has

pointed

Securities

Rotan

&

Mr.

and

is

Work

and

45

.

Edward

Dickson

Johnson (McDaniel Lewis & ComPany, Greensboro), Chairman of
the North Carolina Committee of
the JBA. recommended adoption
of several important amendments
to the North Carolina Securities
Act.

(Fridley & Hess,

Mr.

and

S.

(Rotan, Mosle and Cooper, Hous-

have

.

.

Hess

(R.

ton)

summarized

are

E.

Houston)

I

,

State

(a)

registration :so
permissible, with¬
amendment to the acts in such,
Federal

of

that it would be

solicit offers to buy the

•

Charlotte)

■

Texas, the Legislation ComChairmanship of
C. Pierce (Rauscher,
Pierce & Co., Inc., Dallas)
and
including among its members Mr.
Hal H. Dewar (Dewar, Robertson
&
Pancoast, San Antonio); Mr.

and

work

which

r

-

,

legislatures

this

below.

a

has

work

session -in

problems
this

in

legislation
in prepara¬

tion for 1955 when the

in

s^a.es

been special

group

committees this
be

14

legislatures

states.

done

will

f:

,

regular session this

the

of

other

been

states

of the report follows:•*

and there have

year

five

year.

text

1955:

Charles

Mr.

were

during the

in

securities

buy

to

during the Federal waiting

-,v,rv...'v

,

In

had

there

>

mittee under the

14

regular legislative

1954,

v,

,

that

notwithstand¬

ing

•

(b) Proposals to Amend Securities

The report in¬

dicates

Legal

to

continuity of service.

Holly-

w.ood,

offers

registration or noti¬
fication it may be possible to work,
out procedures whereby the state
registration or notification can be
completed prior to the effective

Group Legislation Committee members have

laws.

Association
held in

offer

to

prior to state

being made by the Harvard

Law School in State securities

-

it is un¬
securities and to

states where

some

solicit

date

to
the
Third

year,

In

were

amended,

were

bring their securities acts in conformity with the amended Federal

Securities Act-of 1933. ;Calls attention to study

last

the

acts of five States

proposals have been made for further amendments in several other

States to

activities dur¬

ing

states.
lawful

released

several

of

acts

securities

the

Mullaney, Chairman of the Investment Bankers Association State

L.

Legislation Committee, reports that though only 14 State Legislatures

of

report

■

Legislation Affecting Securities Business

Mullaney,

State

31

(2483)

and Financial Chronicle

American Stock Exchange

CHICAGO
SCHENECTADY

GLENS FALLS
WORCESTER

32

The Commercial and Financial Chronicle

(2484)

Thursday, December 16,1954

...

Lauded

Monetary Policy and Debt Management
Governmental Securities Committee of IBA, whose

Herbert N. Repp

Corporation
Chairman

the

released

Committee,
of

report

Repp, reviews Federal Reserve Board Monetary

Governmental

the

of

Securities

of the Discount
New
York,
as

of

tee

Annual

43rd

constructive role in the recovery

a

the

to

term

of

tee

of business activity. Comments on fact that

holds time is

without Federal Reserve assistance, and

Bankers

ment

Association

Policy and the Treasury's

now

Fla. The

of

com¬

need

report

Federal

R

^

,

m

and

the

Treasury
Management Policy.
The

tert

the

nf

.

lhe

.

P°hey

lowed

by

.

'
the

.

in

market

securities

1954

have

been

of

active

ease

fol-

rederal

year

Reserve

System, and the debt management

Admmis-

prPs

m

tration of the Treasury which also

constructively conducted with

was

the economic

Federal

climate in mind.

Reserve

implementation

rederal Reserve program
ease

ing

the

in

money

designed

was

to

of

the

of active

market which

lend-

encourage

of

advance

and borrowing, three methods
used—open market opera-

were

record
serves

need

their availability was

june
to

System

Reserve

to

sold

August)

Treasury

mature

known, the

Committee

Market

Open

Federal

so

of

the

(from

allowed
Bills in an
or

corresponding to

amount closely

the reduction in requirements.
this

provided
investments for

banks

way

funds,

were

temporary

these

erosion

of

and

unwarranted

an

rates was pre-

money

The sale of bills empha-

that

sizecj

In

the

of the
requirements
was to add to the liquidity of the
banking system and not to the

change

in

volume

purpose

reserve

free

of

It

reserves.

also

from the $750 million figure. It
might be well to point up that
the degree of "active ease" can
best be measured by the monthly
average of the banking system's

net free reserves, rather than
placing emphasis on transactions
in any one given week. In some
weeks the figures vary considerably above or below the desired
amount as a result of such things
as unpredictable and temporary
changes in the Treasury's cash
balance, money in circulation, etc.
It is apparent that the Federal
has maintained a volume of free
reserves

reductions

in

the

dis-

the direction of higher
by actions of the Reserve
authorities, and by expectation of

enced

in

prices

further

moves.

The

L

rate

on

90-

longterm Treasury Bonds from 2.96%

approximately 2.65%.
In

the

reserve

June

to

followed

with

a

the

Treasury Bill trend

decline that

ran

the

banking

system

points.
it

would

now

appear

that

on

^

August period

requirements of member

maintain

free

neighborhood

reserves

$750

of

The Treasury also conducted its

the

was to
in
thp
in
the
million.

was

Treasury Debt Management
Policy

about two

.n?®ve^ frorb objective in this period

1.63% to .65%, and yields

to

suggested to investors that they
might have over-discounted the

that

in

considered adequate to
counter a moderate business recount rate, and a reduction in rereal objectives of monetary policy,
cession. It might then follow that
serve requirements.
Subsequently, Treasury Bill yields any important sustained strength
During the first six months of adjusted
upward until by late in business indices could lead to
tile year, the government secunAugust they had reached a 1% a policy of a somewhat less genties market was
stronelv infhi*
„
strongly influ- basis. Long-term hp
Treasury Bonds erous level of free reserves,
two

tions,

Treasury

debt

the

growth.

of

all

member

banks

after subtracting their borrowings

a

an

refunding of $17 billion securities

due Dec. 15. This was the second
largest refinancing operation in
jts history; $10 billion of these
maturities were owhed by in-

other

vestors

offering would interfere

for the issuance of a
security, and the new
offering should be in an amount
to reauire a rate that will more
long-term

realistically appraise the value of

Of this amount

long-term Treasury

billion were converted
jnt0 the intermediate security due
jn 1963 while only $3 billion were
converted
into
the
issues due

In the coming year

the Treasury
confronted with the
statutory limitation on the debt.
The recent temporary increase of
$6 billion
expires on June 30
will again be

within one year. This is another
important forward step towards
the Treasury's objective. Including the December refunding a

must

Th

inPrPa(;fifi

cunnlv

of

infer¬

that resulted from

ing operations
out any

have




ginning

Business and

on

our

ability

to

issues of State,
from the

from

Reputation...

to

debt

its

obtain

some

Herbert

N.

Discount

Chairman

Repp,

Corporation of New

York, New York
Robert B. Blyth

National

The

City

Bank

of

Cleveland, Cleveland
Milton S. Bosley

is be¬

National Bank of Detroit

results

Detroit

-

Wendell T. Burns

a

Northwestern
of

National

Bank

Minneapolis, Minneapolis

Municipal and Public Revenue Bonds

Co.

Blair
'

deal

GOVERNMENTAL

analyze the merits of various

viewpoint of the investor's

'

INCORPORATED
Business continuous since

not

constructive
of business

SECURITIES COMMITTEE

extension program.

requirements and the soundness of the particular
issue. We

a

recovery

Respectfully submitted,
THE

continuation of the
recent improvement in business,
the time is approaching when the
Assuming

played

the

activity.

just

indicates that the Treasury

both
in

role

billion for the
past. This

with $46
period

that

management

policies and the monetary policies
the
Federal Reserve System

Excluding weekly Treas¬
ury Bills and those maturities held
by the Federal Reserve System,
Treasury refundings of currently
outstanding marketable debt from
April 1955 through March 1957
will total only $20 billion as com¬
pared

with¬

believes

debt

Treasury

maturing obligations need
contemplated for nearly two

two-year

successfully

were

of

March, no major refunding opera¬
be

a

direct assistance from the
committee

Your

the

and

February

next

in

be

Federal Reserve.

^fterdealing^ithThe $^5Sbmion
maturing

will

Treasury

to

carried out in a free market

nearing the end of

now

are

Congress

to this situation so

up

meet the obligations
imposed upon it by appropria¬
tions of the Congress.
To conclude its report the Com¬
mittee would like to comment that
again in 1954 all Treasury financ¬

mediate issues mar resulted iroin
the Treasury's program of debt
pattern improvement
also con¬
tributed to the slow price decline
which has taken place since July.
We

the

that

position

accomplished in 1953.
me(jiate issues

face

time

that

Before

next.

total of approximately $31 billion
0f debt has been placed this year
jn the three to nine year area,
This represents a substantial gain
over
the $9 billion of extension

years.

our

money.

Debt Limit

tions of

We've built

the

propriate

Federal

the

than

in

outstanding

nearly $7

program

long-term bond, believing that

such

The Treasury announced Dec. 2
very successful results of its

the

Reserve System.

new issues will
problems because

some

volume

long area now is not sufficient to
provide
an
adequate yardstick.
This fact must be taken into con¬
sideration when the time is ap¬

of

(These are the aggregate excess Treasury avoided the issuance of
reserves

appear to be very
the first half of 1955,

Pricing

1953.

the

with
this current phase of heavy reencouraging business
This
meant
that
thefundings which have largely been

management
aim

in

present

As a matter of debt held by the banking system.

the average of free rehas not varied materially

Al¬
of

cash.

for

or

with the raising of funds by home any funds raised through the sale
builders, corporations, and public of long bonds could be used, for
bodies whose activities were serv- example, to retire maturing Tax
ing to bolster the economy.
r,
Savings Notes. It is a rather strik¬
Even though the Treasury did ing fact that since 1945 there has
not resort to long bond financing been offered only one long-term
in 1954, it did vigorously push its marketable Treasury bond, the
program of debt structure im- relatively small issue of 3*4s sold

ket Committee, and in others, provement.
Significant results
sales. In neither case was there were obtained,
primarily by
necessarily indicated any change lengthening that portion of the

that

their

A volume of this

magnitude apparently was deemed sufficient, in the official mind,
to keep ample credit available.
Maintenance
of
the current
level of reserves has in some
weeks
required
purchases
of
Treasury Bills by the Open Mar-

these reserves

released

Having
jn

at the Federal.)

in basic policy.

business and agriculture.

vented.

.

the

dar, the Treasury's own cash requirements,
and
the
expected
seasonal expansion of credit needs

with

Board Monetary

Policy
in

the

for

background

of a heavy corporate
municipal new issue calen-

and

{nllnmc

rennrt

the

the

during
the

Debt

s

influences

major

government

a

absorption
Herbert N. Repp

Monetary
..

advance of its actual
degree of liquidity in the

favorable

a

e-

Board

_

Policy

was

in

banking system that would create

mainly to the
serve

This

lion.

by $1.5 bilapparently done to

reduced

were

provide

contents

the

operations

ing

small during

banks

mittee devoted

the

made

be

though new cash requirements

Treasury financing.

the

Hollywood,

in such an

Treasury offerings
either in refund¬

Long-term
could

propitious for long-

America, held
in

strongly favors the undertak¬

ing of long financing
atmosphere.

free market,

Treasury financing operations were carried out in a

in 1954 all

Convention of

the Invest¬

about interfering

and concludes that both have played

Debt Management during current year,

Commit¬

the

need be less concerned
with the private
sector of the market through the
issuance of a long-term bond. The
Governmental Securities Commit¬

Treasury

Chairman is Herbert N.

,;

f

1890

only specialize in this field, but

exclusively in State, Municipal and Public
!

Revenue Bonds and welcome
any

inquiries regarding

Underwriters and Distributors of

phase of them.

'

and Railroad Securities

•

i

Municipal, Utility, Industrial

Equipment Trust Certificates
4

Bank and Insurance Stock Department

B. J.

Van

Ingen & Co.

44 Wall

INC.

Street, New York 5, N. Y.

Teletype NY 1-1109

Telephone DIgby 4-4000
NEW YORK
CHICAGO

Private Wire System

New York

MIAMI

Albany
Flint

j

i

Boston

Connecting

Philadelphia

Rochester
Grand Rapids

Buffalo

Chicago

Detroit
Toronto

Number 5388... The

Volume 180

33

(2485)

Commercial and Financial Chronicle

supplies of food and-other' tions is not excessive, and in any
Delivery dates are get¬ case the banks have official in¬
ting shorter, so that a further in¬ structions to abstain from financ¬

serve

Dwight W. Chapman
American Trust Company

British Stock Exchange

San Francisco

essentials.

in

crease

F. Newell Childs

Uncertainties

C. F. Childs and Company

Chicago

By PAUL

Craft

Robert H.

London

'

"it

C. J. Devine & Co., New

.'V

Dallas

V

Los Angeles

California Bank,

•

no

anxious to
:

*

until

trend

.of

the

reverse

prevailing

business

activity. The
memory of 1929 when an increase
of the bank rate was followed by

'

recently,
V'Vr Admittedly in some lines short- a defeat of the Conservative Govages threaten to develop, and thee" erhment at the general election is
publicity given to the possibility still fresh: There is of course a

to

probable that the British boom will be allowed to
continue uninterrupted."

seems

Exchange

was

of

such shortages .may

many

W. Wayne Glover
,

Sees

it

Stock

political point of view
the government is anything but
a

way

First National Bank in Dallas

•

From

go a long possibility of an early rise in the
towards bringing them about bank rate on the assumption that.
by inducing firms and individuals the general election would not
people hoped or feared,
LONDON, Eng. — After a long
to hold stocks in excess of their take
place in the autumn, ; by
spell of almost uninterrupted rise, whichever may be the case, that
the Bank of England would take immediate requirements, But there which ;time there would be ample
the London Stock Exchange ex¬
the earliest opportunity after the are no indications of an all-round
opportunity for reducing it again,
perienced a fairly sharp if temBut the government is not likely
that operation to inflationary scramble for goods. '
porary setback :> completion of
■\ If over-full employment were to
to take any chances.
at the close of ; administer a dose of disinflation
Quite con-

York

Robert R. Gilbert, Jr.
•

ing speculative
operations.

course

industry to industry, but
generally speaking the economy
appears to be less overloaded than

disinflationary devices to
ground for this fear, and concludes

might resort

check inflation.

.

Stewart A. Dunn
:<

spect the situation varies of

EINZIG

on

Government

the

The Atlantic National Bank of
Jacksonville, Jacksonville
:

<

tal to

the recent reaction in securities prices on the
Stock Exchange, Dr. Einzig lays its cause to fears that

Commenting

New York

James A. Cranford
:

consumption

necessarily be detrimen¬
export capacity. In this re¬

from

American Securities Corpora-

V' tion,

domestic

need not

/..•

Sheldon R. Green

j

-

.

of

Chase National Bank

The

the

November.

City of New York, New

This

York

the

H. Lyman Greer

expected
the

Co., Cincinnati

factor

Hardin H. Hawes
;

Harris

\

'

>

Trust

the

N.T. & SA.

National

Philadelphia

Dr. Paul

Frederick G. Lark in, Jr.

Security-First National Bank

considerably.

All indices
further expan¬
sion of business. The government's

pointed towards

Ralph F. Leach

Company of
York, New York

Guaranty Trust
New

early general election has de¬

an

clined

Angeles, Los Angeles

Pat G. Morris
The Northern Trust

Company

Chicago

decision

to

Bankers Trust

the

grant

substantial

at

a

New York

Corporation

New York

City

Bank of

New

York, New York
National

Bank

of

increase of capi¬

an

are

Co., Pittsburgh

fading

there

was

"entering"

of

for,

inflation,

brief

ceased

never

has

a

inflation

1952,
this

in

period

from

apart

in

interval

a

certainly been proceeding dur¬

ing 1953-54, even if its pace

has

been moderate. Nor are there any

indications

that

situation

the

is

.

the

Hirshberg, Inc.

was

Henderson, Harrison & Struth-

Street,

New

York

bank

change
would

admit Malcolm P.

Jan.

will

1

Ripley to part¬

with the ob¬

ject of reducing employment.
the

for

As

boom,

it is

Stock

to

a

natural process.

quotations

ing about

by

any means

in

are

large degree

a

It merely adjusts

to the rise in the in¬

trinsic value of the tangible assets

a

Nor is it certain

that the authorities

position to regulate busi¬

activity

ness

Exchange

temporary relapse in

a

business activity.

sufficiently

rately to

ensure

created

setback

that

getting out of
inflation
on

the

sheet

Creeping

control.

continues

to

creep,

other side of the

there

is

a

but

balance

noteworthy

im¬

of

has

long

reasonable for

authorities to try to

materially during the last year or
so,

and it continues to
are

increase.

well-stocked. The

not

be

Industrial

increased

the arti¬

ficially low level of dividends.
would

has

ad¬

an

been overdue

but has been held up by

provement in the supply position.
output

Such

firms.

industrial

justment

It
the

check the rise

an

would

Taking

everything

sideration it

seems

spite

of

points

to

continue

one

uninterrupted.

policy of the Conservative Party
rests

on

ment

the claim that the govern¬

has

brought prosperity.

the

of

possibility

ment to live up to its propaganda

speculative

to call for official intervention.

as

The

volume

of

speculative

posi-

which has committed it to

pansionary

Hallgarten & Co.
Established 1850

New York

London

Chicago

There

in
have

of

that

of course

was

an

immediate

sense,

interfered

since
with

it
the

which

is

in

progress.

'M

But

Municipal Bonds

THE

J. A. HOGLE & CO.
Established 1915

NATIONAL CITY BANK
mmmmmmmmmMmmmmmmmmmmmmmm

OF NEW YORK

MEMBERS NEW YORK STOCK EXCHANGE
& OTHER PRINCIPAL EXCHANGES

Municipal Bond Department
TELETYPE NY 1-708

OFFICES:

SALT LAKE CITY

Angeles

Spokane

Beverly Hills

Missoula

Pocatello




San Diego

Riverside

Denver
Idaho Falls
Provo

Butte

Long Beach

Boulder
Reno

71 Branches in

Head Office:
55 Wall Street,

Ogden

an

course.

in¬

an

It

Nor is the situation so

can¬

the end of No¬

For

thing, the whole propaganda

of infla¬

widely

was

con¬

the British boom will be allowed

Coverage

Los

into

will be necessary for the govern¬

the development of

rate

over¬

probable that

Western Market

CITY

be

by the autumn.

come

by causing tight money conditions.

State and

NEW

accu¬

artificially

Treasury's major conversion oper¬
ation

nership.

to

wish to sacri¬

good opportunity by bring¬

further reduction of

a

question

Stock

on

rate

dare

a

arise

expedient. The

no

and

the Stock

on

accentuation

envisaged.

City, members of the New York

Exchange,

the bank

correction.

would

government

raise

no

fice

may

earlier gen-

of the bank rate came to be

crease

no

permanent state of af¬

fairs which calls for

appear

government has

an

disinflationary devices to

the

vember

Henderson Harrison Adds

normal and

No

But in eral election

employment

to have been accepted as a

seems

situation

a

the government might

vassed, towards

-Atlanta

in

reaction

a

sibility of

J. W. Speas

over-full

times

our

While until recently the pos¬

tion.

New York

have been raised long ago.

It

country.

bank rate should

gradually

favorable

other

that

check

Salomon Bros. & Hutzler

Wall

to talk about

which would make

the

rate,

voluntary

are

why

reason

resort to

Rudolf Smutny

increase,

restraint

and

fears

Mercantile Trust Company
St. Louis

40

It is wrong

ceivably

bank

away.

Exchange

William P. Sharpe

the

on

the last remains of the

these

Mellon National Bank & Trust

ers,

in the situation.

new

country is well provided with re-

The

Boston, Boston
F. Brian Reuter

Nonas &

their

Inventories

dividend

L. Sumner Pruyne

'

realizing

by

tal expenditure on road improve¬

Profits

Delmont K. Pfeffer

First

safety

ments, railway reorganization, etc.

The First Boston

The

demand

There have been

Emil J. Pattberg, Jr.

National

the

ensured

consumer

high level.

indications of

increases

wages

recently,

maintenance of

Company

for

holdings.
Although the existence of an in¬

be accepted as a cause for higher

a

substantial in¬
creases
of old age pensions and
other social service benefits, and
granted

Robert C. Morris

speculators preferred to play

and

im¬

proved, and in
any event the
possibility of

Einzig

Bank, Philadelphia

.

Party

have

George B. Kneass

of Los

Conserva¬

tive

San Francisco

The

The

prospects of

Bank of America,

«

ap¬

vorable.

Russell A. Kent

:

as

political

by means of a higher bank rate.
For this reason many
investors

peared to be flationary trend received some
distinctly fa¬ publicity recently, there is nothing

.

Savings

and

Bank, Chicago

.t

un¬

more

The Fifth Third Union Trust
-

all

was

New York

Member Federal Deposit

Greater New York

Insurance Corporation

ex¬

34

(2486)

,

The Commercial and Financial Chronicle. .'.Thursday, December 16,1954

'

■

'*

i

,

New Growth Factors in Canada's
Peter

&

Kilburn

Co.,

Montreal,

man

of

of the

the

Canadian

of

Peter

Chair¬

Canada,

Investment

ciation

Greenshields

of

which

economic

in the

and takes note of Canada's

nadian economic situation and the

securities markets
The

full

text

discussed.

were

the

of

15 million mark.

-.hi1! any future history of Canada
will

year

remembered

the

as

which

in

.Lchemes

two
important
development
were

of

completed.

At

the

beginning
August, the

of

first

iron

frorn

the

Quebec
brador

ore

vast

-

La-

depos¬

its of the Iron
Ore

Company

ingot

time the first aluminum

y*

grade

,_ninA
of

....

iron

Urador deposits

tons

•enterprise to

1

ru.i

Canadian

xl

n

....

of

aluminum

which

St.

expan-

.

a

s

history

a

as

milestone

the

start was made

Lawrence

year

the

on

Agree-

Seaway

Canada and the U. S.

on

this long

delayed issue and contracts have

high-^ already been signed for v/ork both
on

the Seaway itself and

joint

power

project,

the

on

which

will

give Ontario and New York State
each

an

additional

1,100,000 h.p.

of hydroelectric energy.

At about

businessmen

¥////.<<

WWW

^

goods
quarter

pears

The natural gas issue apto be one such instance/On

il.

ol

In

many

W/S/S,

integrated North

an

American

economy is strongly taking shape
there is no doubt that over

the

years

Canada

economy

oroportion

while

form

of

-

0f water

an(j

energy

/•

_

in

AMitrHv

and

th*»

under the

months

and

Q
a

trends

the current year and

put o

the

comnarp

since the second

and

the

U.

S..

of us

•

Pu'p

World War. This

stability

Steel

•

•:::::;>::::::x*:

vehicles

Cement

ST6CK <*XCHAN<#

is

shown

by

Iron

•

,

production,

♦

the

have been

;•

rates

units

production

production (M

gas

1953

4,264,023
6,608,113

2,046,409
286,724

2,713,159
355,029

51,412,162
71,957,186

1st 8 months

14,718,978
v/
69,463

41,456,739
57,903,187

i

(bbls.)....../.
cu. ft.)........

lst.7 months
1st 7 months

Ist7 months
1st 7 months

1st 7 months

..v.v.;...L../.

ENERGY

1st-7 months

-24.6
-19.2
.

r

,

+ 1.6
r

+ 3.0

total

and

conditions .in

the

retail

CHARTERED

Current/.loans

'

.

At

Report.

-'

2,393,600/
"

,

$7,712,237

shots in

Sept. 30

$5,535,000,000^^$5,226,000,000
$3,776,000,000v:$3,647,700,000
$1,304,400,000-.$1,293,900,000

of Canada;

Canadian

Pulp and

a

good job

nAnybody

to

f

do

a

•

a

' one/

v

people who do

heard from again.

good ad

or

campaign.

dependable advertising professional

011

the

same

out,, year

product

or

j'.
;.f+ - . - <.-t )
jThat's where advertising agencies

aftef

service.

«.

That's
—over

-

are never

good job day in, day

{year—often

;

SYSTEM

and

can create one

But it takes

-i

••

once

are

in literature, the

as

theatre and the world of
sport..

i
Atlanta.-

1

well

I

come

in.

why AF-GL has thrived longer than most
80 years.

•

*

Albert Trank-Guenther Law, Inc.
Advertising

Public-Financial Relations

•

131 Cedar

PHILADELPHIA

-

BOSTON

-

i

Street, New York 6, N. Y.
WASHINGTON

♦

CHICAGO

-

SAN FRANCISCO

Paper

' •+

-

as

1.6

$3,969,900,0001 $4,059,900,600

*

advertising

9.6

-

2.2

.

:>repeat performance-There
■p>

-

$7,835,027

.

.

September

Association

+ 1.7

2,647,700

Dominion Bureau of'Statistics; Bank of Canada' .Statistical

Monthly .Reoort of the -Newsprint

Monthly

•

At- Sept. 30

circulation..:.;......:..,.../.

SOURCES FOR TABLE I:

Aug. 31

:

,

in Canada.....
Canada.:..;.',..../......

In

38,636,000,000

1st 8 months
1st 8 months

INVENTORIES, est. value At

BANKS:

deposits

Savings

-

+24.3~

$6,657,000/000

39,288,000,000

(kwh.)..I.;... 1st 7 months

OUTPUT

sales

MANUFACTURERS'

-..Active note

.

+24.0

-

$6,777,000,000

on




+ 4.0

+ 6.7

3,289,867 v -21.4
8,809,337 r - 5.8
82,045
+10.0
+ 8.3
158,169
-13.8
236,899
112,604
+14.8
3.9 "
2,572,371

.

Cons).:;.,./........1st7 months

production (fine oz.).................

ELECTRIC

-

1st 7 months'

1953/ * carloadings revenue freight (cars)

halted

2,586,146
8,298,470 J
90,237
171,277
:
204,234
129,240
2,473,039

CUCtMl

WIRE

48

% Change-

14,960,851
.71,567

HATTlf

PRIVATE

Ko-

••

LABOR : INCOME

Prairies.
While
production :; of y
durable goods continued, to move'.;
downward during the whole ^ of >

THE

the

page

1954

1st 8 months

(bbls.)......,—
started (units)./.......

production

Gold

,

aggregate output ire-ia
substantial
decrease^in1
crop production, as a result of ad-,,

lUiiikMt

as

on

4,435,983
7,053,812

production (tons),.,......,...*... "1st 7 months
production (tons)..,..............1st 7 months

,Leid

•

lower

weather

have

I

ore

Coal

fleets

verse

such

events

1st 8 months

..

which

started in the last quarter of

to

they

and

Continued

1st 8 months

(tons).,..

Nickel
production (tons)...,.........'.....
Copper production (tons)
' Zinc production (tons)..... /..............

t

.

2% below the annual average
The decline in non-ag-?

appears

national

lst'9 months

...........

shipments (units)

petroleum

Natural

-

1953.

ricultural

StOC^ £XMA8&'

MfOWEST STOC*, ^CHANGE

countries,

similarly affected by inter¬

<Period

production

Dwelling

/

adjusted

was

trial
been

,

aggregate out¬

of

to

in

Be Muncl 111 we'i advanced mdus-

'OIL & GAS:

put

' ft"*\

find:

same'eharacterSs^hlh Ire
re found
wI l advmKeri indus

•*

(tons)....(tons).."...

production

ingots

Motor

and/

of 1954 the level of

seasonally

to

arA
are^ closely

x
S.

.BUILDING:

For the first half

K-WttW;

the U.

exnort

MINING:

in Canada.
at

Tnp

lst.9 months

paper: '

production

difficult

not

steel:

balance of international5

population

g,

O T1 T\T

a

Newsprint production

v

Canada

are

and

TABLE

.

in

C1 TYl

Unkerthrouch imDort and
tradfthe twd ec3mies ha^the

surplus
millionagainst $200.1

of $63'4

report of the

CT T1 UT1 n Cf

of

anf1

anana
Canada

year

Treasury's

fiscal year ended with

the statistics published so far this

■

Federal

review

11
striking similarity
output, income
expenditure since 1946. The
MPPn

.

™ontlls of the Federal Treasury s

briefly economic activity during
trends

year

v

the

of

i«

«tiip«:

iTni±«d

tVe Pomlnm" Bureau

hflQ

in/ the

com-

as

Canadian Committee will outline i

^General

NEW YORK 6, N. Y.

million

reproduced

are

1.

cf^y..

by 8.2%,
balance of

deficit

a

more

Canadian

of Statistics in its monthly
has been

pared with $226.1 million in the
like period of 1953.
The first six

'

annual

$195.1

of

last

since

and

of

•

thPTP
there

*r\rr\

declined

in

trade

to

oil, natural

power

uranium.

This sixth

supply

ever increasing
wood products, of

Economic Activity in 1954

JOSEPH McMANUS & CO.

NEW VGA*

n

from

7.8%

imports

Crude

AMERICAN

i

high level.

a

resulting

an

minerals and of
gas

will

down

were

securities markets.

.

l

x

activity

time

•
J. ■ *
Canadian and U. S. econ™ies aFe s? strong;ly linked that
they inevitably show parallel
movements, any difference in the
statistical charts being in respect
or magnitude rather
^an duration. As pointed out re-

•

'Exports for the first nine months

and

indebtedess, then

^

/• •

.

maintained at

•

f-

figures

Canada

industry.
In the second
the number of employed

rrf

t?

'the whole, however, the concept

ana

MEM8EK*

latest

TrpnH_

first six months was more than
5% above the first half of 1953,
so
that purchasing power was

.

will be followed by a short survey
of Canada's balance of payments

39 BROADWAY

The

significant

first half, it. was more than
offset by gains in the non-durable

budgetary

a

first

Table

in

that the fiscal

are

the

economic

by

rise

a

during the last

1945-1946.

reached the

the

are

for

reasons
,

™ent _,was finally reached between this

rnn

in part the

replace

round

Canada

in

Canadian

depleted Mesabi Range.

deficit

Canadian securities markets.

growing
requirements
o f « t h e considerations rather than
by the
J
'7
United States, where the Govern-; realities of economics and
geogment has abandoned plans for a

in

have been devel-

oped by joint U. S. and

and

revenues

ex¬

lagging

might end with

year

Starting with an initial, to supply the needs on both sides declined by about 1% from a year
annual capacity of 91,000 tons, the of the border.
ago • but .with
higher
average
, smelter
is already being enlarged
;'mere are still many .obstacles
wages,
labor /income showed a
by 65%
and
ultimate - capacity) jn the way of efficient coopera- small increase over last year. As
could reach 550,000 tons per year.,
tion, and
government
decisions gains also occurred in other ele-po a large extent the Kitimat pro-,
affecting the two countries are ments of personal income, perject was designed to meet the sometimes governed by political sonal disposable income in the

1954 will also mark

Quebec-La-

the

ore,

produced at the Alum-

was

.„

supply for the

million

current

dropped

Barring

half, indications

indebtedness,'

now

have

only

are

million.

Federal

lumbia.

third

to

American steel

Knn

the

on

other factor* of the economy, u. S.

raphy.

Philadelphia,
initiating a
new pattern of

500

Comments

sioa-

Peter Kilburn

population growth, which has

Company of Canada's new joining forces to develop Canada's
smelter at Kitimat in British Co--resources in the way best suited

of Canada was

than

international

inum

shipped

iea,,.fr„

$16.6

in
same

be

Canada's

time last year.

same

revenues

penditures

Reviews

report

follows.
1954

Discusses

Ca¬

far

$153 million from 1953 while

pro¬

activity in Canada in 1954, and contrasts economic trends in the

United States and Canada.

developments

year

from the Quebec-Labrador deposits and the

ore

duction of the first aluminum ingots at Kitimat in British Columbia.

meeting in
Hollywood, Fla., presented on Nov.
SO the Annual Report of the Com¬
last

shipments of iron

So

Asso¬

America,

mittee,
in
during the

million at the

Kilburn, Chairman of the Canadian Committee of the IBA, calls atten¬

tion to

Committee

Bankers

Economy

*

■

-+ 5.9*
+ 3.5
+;8.1

Summary;
Associdlion

-?

Volume 180Number 5386

.

.

The Commercial and Financial Chronicle

.

(2487)

Aircraft
The

Aviation

Securities

Manufacturing

Com¬

The Aviation Securities Committee of the IBA,

mittee of the Investment Bankers
Association

its

of

through
Barclay

America,

Chairman,

William

Harding

Barclay Harding, reports that from

,

of

facturing industry has shown

„

Smith, Barney

has

C o.,

New

York Cityr re¬
leased
nual

its

an-,

the*' 43rd

;an-

conwn-

tion

the

of

s

grown

;'VA

.

As

steady growth in

a

oeiation
rhefc

in

by

H o.l 1 ywood,
Florida, No-

>

;latory procedures and profit restrictions.

>

such

The

Wm. B. Hardmg

developments

'■

The

text

change in the method of financing
the industry appears feasible.
-

•

of the report follows:

United States

ous

Aviation

of the

tee

reports,

smallest

among our

Securities

they

the

of the investment

This

try.

'the

the

tween

aeronautical

The

in

the

Aviation

former

Hugh

Securities

obtained

Commit-

industries

available

Government *has

I.B.A.

to

members

at

become

50c per copy.

accompanied by checks, should be

overwhelmingly the air¬
manufacturing industry's
largest customer and it has con¬
tributed to the industry's financ¬
are

business

of

banks.

for

banking

13th

relation

have

only

on

rare

that

occa¬

with

two

small

and

tively

of

segments

new

the

transportation industry, :it reflects *
the regulatory problems of the air

transportation industry
and

makes

certain

whole

as a

recommenda-

into account the broad

policy ob-

jectives of a report entitled "Civil
Air Policy" which had been issued
in May by the? Air Coordinating
Committee

of .the

Federal

in

V/-

\

tal

The record of the aircraft manu¬

if

able

facturing industry, from an earn¬

they could do
The

so

;

are

studies

to

mittee's

study

the

companies
aircraft

Securities

Federal

all

consolidated
government

ganizations

still

favor¬
they

on

available.

are

Respectfully submitted,

on

and

Smith, Barney
New

>

have

&

Richard W<

the

Courts

area.

tions

Chicago
direct

construction,

as

well

ally

been

appreciated,

and

it

is

there

may

be

been

dend

that

financing

toward

trend

,

*

„

.

Donald N. McDonnell :

The

125

Blyth & Co., Inc.
New York

Revenue bonds to be

—

Morgan Stanley & Co.
New York

1,

1995.

David L. Skinner

Harriman

Ripley & Co., In¬
corporated, New York

from

They
net

are

payable

revenues

conditions have
by

State# Municipesi

•

M

"•/

Corporate Securities

-

HA'/'''' v/

;

*:*

'

'

A-1

A..

State, Municipal

Revenue Bonds

and

m

*0

%
'ir

■ill

•;

.mm

-;v

m

A:*




s*o.

^

>

-

4.'

Municipal Department

qAllen

ill
so

-

Sr

tt

&

Company

Established 1922

NEW YORK 4, N. Y.
1.

-

derived

the operation of the bridge.

tM

*

;

issued

to

for construction of the bridge
charges will be dated Jan.
1955 and will mature Jan. 1,

'''mA-AC

Distributors

by about

and all

"'A?A %

| A*

with U. S.

pay

Cortelyou L. Simonson

m

Underwriters and

connec¬

feet.

notoriously poor divi¬

foregoing

as

clear the Calumet River

is due in

been taken under consideration

business

the

payers.

a

conceivable

gradual

have

the
into

Designed for speeds of 60 mphj
Skyway will be approxi¬
mately seven miles long and will

Lewis

Bear, Stearns & Co.

.

turing securities than had gener¬

line

the south with the North¬

that

fact

from

state

large meas¬
ings standpoint,
has been im¬
ure
to
regulatory
procedures
pressive, and certain integrated
which are cumbersome
and re¬
companies in the industry have
strictive as to profits.
To meet
shown a steady growth of earnings
cash needs, the airlines are forced
in recent years.
The feeling has
to retain earnings, and, as a regrown that there is more invest¬
suit, air transportation securities
ment merit in aircraft manufac¬
so

six lane

Routes 12, 20 and 41.

New York

;

bridge

It will have
on

a

Indiana Toll Road, now under

ern
.

Kuhn, Loeb & Co.

:

level

downtown

v.-

York

traffic

modern expressway

Indiana-Illinois

Hugh Knowlton

New

access

high

..

.

Atlanta

L.

troublesome

The structure will be
and

Courts & Co.:

Salim

created

limited

Co.

Lake I

between

jams.

Co.

York

Cohu

the

constantly

&

corridor

railroad crossings and the opening
of bridges over the Calumet River

-

New York

regulatory

is

Skyway is expected to
of the tightest bottle¬
the Chicago area — the

one

and Lake C alu'lffe t>
where the high degree of indus¬
trialization of the area, numerous

;

Henry W. Coliu

be-

procedures,
these organizations is the

new

uncork

COMMITTEE

and

icies

of

The

has

Consideration

AVIATION SECURITIES

and transmitted
officials and or-

working

purchase
$88,000,000

a

for

Michigan

manufacturing
Many comments were
are

22

as

under¬

City of Chicago Calumet Skyway
Bridge revenue bonds.
'>

narrow

Government

These comments

who,
of

Toll

industry statistics

dis-

airframe

of

group

group

submit

Dec.

necks in

engine

received.

One

reference

above.

a

will

statistical summary when full 1954

Com-

widely

was

and

companies.

^o

which

of

on

will be given to the issuance of a

concerned with air transportation,
an
scheduled
air
transportation

ing

offer

will not
Many basic

contained in the two

been made

tributed, the distribution including
all members of Congress, top offiof

writers,

industries,

be issued at this time.

figures

a

Incorporated,

managers

William Barclay Harding, Chm.

The ^Aviation

cials

Clarke,

-

_

of

on Dec.
13,
inspected the site of the proposed
Calumet Skyway Toll Bridge in
Chicago, under the sponsorship of
Blyth & Co., Inc. and John W.

•

.

aeronautical

rective.

most

terms.

cannot do

Representatives

institutional investors

transportation,

Presidential di-

a

rai?j additional capi- Curities Committee

?n, .-w.<?u

from

The usual statistical report con¬
taining facts and figures about the

development of transportation pol-

This is due to the fact

refrain

Statistical Summary

Gov-

small in
busi-

must

'

*

air"

'

and acquisitions.

cember 22 by Blyth & Co.-John
W. Clarke Group.

between the airlines and other

or

rela-

ground

leased,

sions in recent years, and mostly
have been employed only to han¬

gers

it

forms of

cerned

facilities
can
be President's Cabinet Committee on
instances, and Transportation, headed by the
flight equipment, which is rapidly Honorable Sinclair Weeks, which
dle secondary offerings of securi¬
amortized, lends itself to short is due to issue a policy statement
ties or to perform such special term debt financing. Nevertheless, in the very near future,
services as the negotiation of mer¬ many airlines are underfinanced,
jn
activities the Aviation Se-

been'needed

that

j

Purchase offer to be made De¬

Metropolitan Helicopter Services."
While this study is primarily con-

a

of

are

volume

the

to

done.

ness

capital require-

of the airlines

ments

commercial

industry

425

.

_

The permanent

But the services of the in¬

vestment

Steven-

Robert

Air Transportation Industry

The

substantial vol¬

a

Mr.

to

I.B.A. -Secretary,

son,

The latter

guaranteed loans.

Requests for copies,

Street, N. W,, Washington 4, D. C,

most important
advance payments

have constituted
ume

addressed

many ways,

which

of
and

aware

\

Bonds to Reach Market

•.

-

i

Skyway Toll Bridge

;

cal Service Air Transportation and

mittee issued

the

craft

ing in

~

taking anything but a neutral position on topics which are in de¬
pute between individual carriers

Knowlton, ernment under

approval of
Kuhn, Loeb & Co. to reproduce
"The Aircraft Manufacturing Industry" section of the study, 5,000
copies of which will be made

Government.

Federal

Mr.

Aviation
has

tee

of

Committee's

Chairman,

Aircraft Manufacturing Industry
The

direction

Securities

part, to the close relationship be¬
and the Federal

the

der

machinery

attributed,

Manu-

facturing Industry," published in
August by Kuhn, Loeb & Co. un-

banking indus¬

is

fact

craft Co. and The Aircraft

Commit¬

among

are

of

users

Commit-

the Comstudy entitled "Loyear

manufacturing industry, its tions for changes in regulatory
problems and characteristics, have procedures."
been reviewed in an outstanding
In making its study, the Aviastudy entitled "The Douglas Air- tion Securities
Committee
took

most
important industries. Nevertheless,
as has been pointed out in previ¬
are

Securities

tee.-in June of this

The

The aircraft manufacturing and
air transportation industries

when, early this year,
discussions of possible
in the use of progress

were

the'Aviation

'V*-:

Company

$88 Million Chicago ; 1

'

.

manufacturing and airline trans¬
portation.
.

trend

a

payments; but working capital requirements of the business continue to be so high that no drastic

aircraft

both

the

to

govern-

The Defense Deindicated a desire for

reduction

rcnort covered

in

from

away*

financing.

there

committee's

■

sale ©fr securities
and

partment

through De¬
cember 3.
'

the

public,
ment

vember.,28

.

and the feeling

■

.

which

E. F. Hutton &

Los Angeles

manu-

more

■

<

recent years,

Murray Ward

dustry underfinanced, and additional capital could be used by it, but points
out financing on favorable, terms is largely prevented
by cumbersome regu-

report to

nual

that there is

through its Chairman, William

earnings standpoint the aircraft

an

investment merit in aircraft manufacturing
securities than had generally been appreciated. Finds air
transportation in-

.

&

35

solely
from

'

'

.

"(2488)

36

\

•

'

'

The Commercial and Financial Chronicle

Thursday, December 16,1954

...

Mixed Situation in Railroad Securities
Securities

Railroad

The

Com¬

of

mann,

America,
is Charles

man

L.

ing

Bergmann

of R. W.Press-

&

New

an

an

York

City, presente

d

by

brief

a

over

Convention of
the

courageously

Holly¬

1954.
The text of the report follows:
in

probably view the year 1954 with
mixed
feelings
of
satisfaction,
confusion

and

frustration.

Satis¬

faction would stem from the good
market

range

performance

of

a

wide

of railroad securities. Con¬
when

is understandable

fusion

it

is realized that a stock market rise
occurred in the face of

tial

decline

and

a

substan¬

no

in

railroad

earnings

apparent improvement in
the competitive position of the industry. Frustration may well stem
from the fact that so little has
been accomplished toward revis¬
ing our ,, national transportation
policy. Actually, an impartial ap¬
praisal of the railroads' position

leads to the conclusion that it has
both

favorable

and

unfavorable

Which

will

predominate

aspects.

our

Net Income

It

securities

railroad

Lawmakers' Apathy
The most unfavorable aspect of
the outlook for the railroad in¬

lawmakers.

our

dustry continues to be the apathy

that under Inter- perform the transportation funcCommerce Commission ac- tion so essential to this nation in

borne in mind

state
counting

estimated

is

revenues

of the

Class

the

accelerated
are not in-

eluded in the railroad expense accounts

tax

resultant

the

but

lower

figures are included.
figure were ad¬

gross

Emphasis

I railroads

As

to eliminate these tax de¬

justed

ferments

income

net

would

ap¬

that

and

peace

we

on

noted

in

previous

reports, it has been the practice
of the railroads to rely largely on

shown
in
the
of the United States will approxi¬
earnings,
depreciation
poor
year
1949. This retained
mate $9% billion for the full year
comment acquires added signifi- funds and working capital for the
1954. This would reflect a decline
cance if it is noted that the gross
sums required for their additions
of approximately 11% from the
revenues
for 1954 probably will and
betterments programs.
The
$10.7 billion of gross revenues in
exceed those of 1949 by about $1 balance of the required funds was
the year 1953. The 1954 net in¬
obtained for the most part by the
billion.
come of the carriers after interest
issuance of equipment trust cer¬
charges and rents is estimated to
Impact on Eastern Carriers
tificates
and
conditional
sales
approximate $600 million, a de¬
The decline in railroad traffic obligations. These practices have
cline of over 30% from the results
and
earnings did not fall with continued through 1954, but reof 1953. It should be noted that
equal weight on all companies, fleeting the reduced amount of
income for both vears is over_
net mcome tor Doul years ls over Those roads which serve the steel expenditures, equipment trust fistated to the extent that reported
industry and the closely allied nancing is estimated at only $160
earnings reflect the benefits de¬ bituminous coal
industry suffered raiiiion for 1954, about one-third
proximate
relatively

,

rived from tax deferments result¬

ing from accelerated amortization

granted under defense certificates
of necessity. In
1953 these tax

mUlSTand
million

for

are

esttaTted^t

1954.

It

should

$175
be

Included

most.

in

this

group

are

the

large eastern roads whose
earnings are adversely affected
by huie operating losses in the

...

t

n a y r g .
However, reflecting

improved

bond market conditions and lower

jnvPcW«

fn

in

railroad

country
tive of

whole. A top execu¬
country's major

as a

of the

one

railroads recently stated that the
attainment
of
a
railroad, plant

adequate for

civilian and de¬

our

fense

needs

ficult

unless there

would

be

dif¬

most

were

major
revision of government approach
to transportation regulation and
promotion and the equalization of
competitive opportunity for the
several
segments of transporta¬
a

tion.
the

That

Executive

Branch

of

the government is not unaware of
the problem is best shown by an
excerpt
from
President
Eisen¬

hower's

budget message to Con¬
Jan. 21, 1954. To quote:
"Efficient transportation arid com¬
gress

on

munication
to

services

are

essential

the national economy

and the
national security. At my request,
an
intensive reappraisal of Fed-

eral responsibilities is ; underway

Pa*?fIThSS interest rates approximately $234 both by the regular departments
S/JJ nlnS

^ million

transportation. The inadequacy of
earnings of the
eastern
roads

\

.

£

n

concern not only t0 but to the
investors in
securities

war.

Internal Financing

have

nnt

pnnf>prn

Many millions of dollars must be spent each
year if the industry is to maintain
an efficient and modern operation.
both

If the net income

Off 30%

that

the
charges

rules

amortization

income

28

December 3,

Investors

"

railroad manag¬
ers and our political leaders deal
with the problems of transporta¬
tion regulation and promotion.

wood, Florida,
November

to

longer term depends in
"

which
in

the

large measure on how wisely and

Associa-

met

Charles L. Bergmann

exceedingly small part of the total
volume of corporate financing in
our security markets.

viewed

are

railroad

with which railroad problems are

report to the
43rd Annual

tion

Notes railroad financ*

exceedingly small part of total volume of corporate

industry continues to be the apathy with which railroad problems

of other

considering similar

are

In the aggregate, however,
railroad financing constitutes an

moves.

impartial appraisal of railroad's position leads to the conclu¬

constitutes

now

number

a

companies

financing, and the most unfavorable aspect of the outlook for the railroad

Co.,

prich

says

sion that it has both favorable and unfavorable aspects.

chair¬

whose

that

chairmanship of Charles L. Berg¬

IBA Railroad Securities Committee, under

mittee of the Investment Bankers
Association

under

the

favorable

most

condi-

of securities were refund- and

agencies and by spepial

corn-

ed to effect savings to the bor-

missions. The general principles

Included in this total were

guiding this reappraisal are that
the national interest will usually

rower.

$22 y2 million par value of income

odsnSofS decnning'Tramc^volume" debentures issued to redeem the owned and best by a privately
be Served operated industry,
This

group

of

roads presents a
which must be

8reater part of a preferred stock

difficult problem

issue. Some significance may be
recognized and dealt with by the attached to this "bond-for-preentire railroad industry as well as
fprrPfr» rpfnnd'in*
it is rpnnrtpd
by regulatory bodies. They re- ferred refundmg as lt 15 rePorted
quire larger earnings to provide
funds for capital expenditures to
promote increased efficiency.

Servicing
Brokers and Dealers

Neither

Since

higher rates

favorable
torial

division

a

of Federal funds

or

Federal basic

Continued on.page

more

of

inter-terri¬

of

will

rates

nor

which is supported by a minimum

themselves

produce adequate earnings. What
is needed most is an equality of
competitive opportunity and man¬

agement freedom that will enable

ASIEL &
Members

New

Members

York

American

all railroads to seek to
a

Stock

Exchange

Stock

large

volume

Exchange

recapture

traffic

of

has been diverted to

more

which

Nationwide Facilities for

favora¬

bly situated competitors although
the

rails

can

handle

the

traffic

the Distribution of

efficiently.
spite of the substantial de¬
cline in railroad traffic, manage¬
more

11 Wall Street

New York 5, N. Y.

Telephone HAnover 2-5000

In

Teletype NY 1-1110 & NY 1-1111

ment

as

whole

a

was

able

Investment Securities

to

control

INDUSTRIAL, PUBLIC UTILITY, RAILROAD
j

operating costs to a much
greater degree than would have
been
thought possible 20 years
ago.
Much of this cost control
ability may be attributed to the
large postwar
expenditures for
modernization of plant and equip¬
ment, However, railroad manage¬
ment itself must be given a great
deal of credit for adopting new
techniques in operating arid
maintenance

and

MUNICIPAL SECURITIES

budgetary

procedures

control

and

systems.

in

With 62 offices from

capital

Francis I. du Pont & Co.
Members New York Stock Exchanger

ii

Principal Security & Commodity Exchanges

M

The

expenditures

INVESTMENT DEALERS

Members New York Stock

Exchange

*

American Stock Exchange (Associate)

49 Wall

Street, New York15, New *York

Telephone HAnover




2-9500

Teletype N. Y. 1-344

•

UNDERWRITERS

Moin office

with average annual expen¬
the last eight years of

1953.

The reduced

volume

of

expenditures may be at¬
part to the decline in
earnings, in part to the fact that

capital

tributed in

mapy

railroads' postwar moderni¬

zation programs

are

nearly

com¬

plete. However, it should not be
inferred that the

today

railroad system

is completely adequate' to

5, N. Y

Teletype NY 1-11ST

ii
Chicago, III.

Wilmington, Dol.
•

*

•

Fresno, Cat.

Philadelphia, Pa.

Galesburg, III

Quiney, III.

Kankakee, III.

Rochester, N. Y.

Akron, Ohio

i/m
ms

Kansas City, Mo*

Sacramento, Cal

Bakersfield, Cal.

Kewanee, HI.

St. Joseph, Mo.

Beverly Hills, Cal.

los Angeles, Cal.

St.

louis, Mo.

Cedar Rapids, Iowa
i

■

Memphis, Tenn.

San

Charlotte, N. C.

$1,200 million and $1,260 million
for

DISTRIBUTORS

One Wall Street, New York

Telephone Dlgby 4-2000

of

ditures in

•

BROKERS IN SECURITIES AND COMMODITIES

Class I roads during 1954 are esti¬
mated at $800 million. This com¬
pares

than

m

able degree of cost control in the
face of an 11% revenue decline

Gross

more

bution of both corporate and municipal securities.

demonstration by the railroads of

has been most reassuring to many
investors in railroad securities.

and

effective, nationwide organization for the distri¬

an

their ability to exercise a reason¬

Laurence M. Marks & Co.

coast to coast,

400 representatives, Francis I. duPonr & Co. offers

Miami, Fla.

Sikeston, Mo.

Cleveland, Ohio

Miami Beach, Flo.

Sioux City, Iowa

Francisco, Cal.

.

Dollos, Texas

Milwaukee, Wis.

Springfield, III.

Danville, III.

Minneapolis, Minn.

Storm Lake, Iowa

Decatur, III.

Newark, N. J.

Streator, III.

Efmira, N. Y.

New

Enid, Okla.

Oklahoma Gty, Oklo.

Washington, D. C.

Fort Dodge, Iowa
Fort lauderdaie. Flat

Omaha, Neb.

West Palm Beach, Flo.

Pasadena, Col,

White

Fort

Peoria, III.

Wichita, Kansas

Worth, Texas

Orleans, la.

Terre

Haute, Ind.

fm

Plains, N. Y

i
tMuad

i

91

Volume 180

Number 5386

...

The Commercial and Financial Chronicle

(2489)

Outlook for Equity Industrial
The
mitte

Industrial
of

the

Securities

Investment

Com-

Chairman John C.

Association of

America, under the
chairmanship of John C. Maxwell,
of Tucker, Anthony &
Company,
New

York

City, released its

mittee,

report to the 43rd Annual
Convention at Hollywood, Fla, on
Dec.

reduced taxes
full

of

text

the

investment

annual

Securities

on

report

follows:
The

and

confirms
'

?

what

have

we

/-1 '

cal factors in

pansion

at. which

The

capital

ed

to

000,

ex-

penditures

up

privately placed.
tne figures are only
to the end of August
the

time

total

approximately

$4,400,000,-

of which $2,500,000,000

was

publicly offered and the remain-

of

Stresses important psychologi¬

not increased over the $2,000,000,-r

000 annual rate which has
tained in recent years.

per-

With the expiration of the excess profits tax and the hope that

again be

of

pointed up by the accompanying
table which, is taken'from the
preliminary . survey of ' industry
spending! plans for; 1955 made by
the McGraw-Hill Publishing

To

fi-

1953-

was *

those

issued

in

in

the

than

-

far in 1954 have .Company, Inc.

same

time there has

been

an

attendant rise in the price both of

stocks. Despite the recent-rise in

However, of the-total

the stock market the issuance of

a

money

very

raised

all

by

preferred and

stocks has

common

The

Percent

1955

Estim.*

Planned

1954-1955

$10,026 :$9,249

$8,598

-.Actual*

<
.

Manufacturing.

7%

4,600

4,875

4,920

1

506

Industry f

380

311

sibility,

—18

Mining

is

by the government.
Along with the financing neces¬
sary to supply this vast amount ofo
money there is also a strong pos¬

Change

1953

fi¬

brightened
by
the
growth of atomic energy and the
large sums of money which will
have to be expended by private
nancing

*

1954

.

5

main
be

saying

re¬

present, that there will

at

as

additional

an

rates

money

of

amount

re¬

Railroads

1,312

851

769

—10

funding to be done of debt issued

Other Transport. & Communic.

2,954

2,922

2,640

—10

by

4,548

4,274

4,20-6

23,271

21,784

20,727

Electric and
All

Gas

Utilities

Industry

—

2

The average

dustrial

5

and

States

Department of Commerce;

Chase National Bank;

McGraw-

Hill

Department

"Ail

Economics.

tPetroIcom

refining,

included

under

both

the

on

Hallgarten & Co.
New

dividend

stocks,

price,
3.95%,
have

Chicago

<

bonds;

'

Reid

Tucker, Anthony & Co.

!

New York

-

Edward H. Robinson

"

.

/ \ \

,

Schwabacher & Co.
New York

John D. Baker

Julian A. Space, Jr.

Reynolds & Co.

Inc., Savannah

Thomas Beckett;
First

.

Johnson, Lane, Space and Co.,

York

f
Southwest Company

Justin Jt Stevenson, Jr.
W. E. Hutton & Co.

Dallas

Cincinnati
Henry J. Blackford, Jr.

Spartanburg

Company,

Eaton Taylor

.

Witter & Co.

Dean

'

San Francisco
Louis J. Cross

.

r

,

K. P. Tsolainos

Hornblower & Weeks

Baker, Weeks & Co.

Chicago

New York
Joshua A. Davis

Claude F. Turben

Co. Incorporated

Blair &

Merrill, Turben & Co.

New York

Cleveland
Edward Glassmeyer

George H. Walker, Jr.

Blyth & Co., Inc.
New

G. H. Walker & Co.

York

York

New

David J. Harris

J.

Paul

Woollomes

Fairman, Harris & Company,

Wulff, Hansen & Co.

Inc., Chicago

San

Francisco

was

period

the

the

1953

Reynolds & Co.

average

and

is

the

a

now

stocks

common

from

are

Underwriters—Distributors

of

yield

Members

number of unsatis¬

a

conditions

in

indus¬

our

try, among which are

—

(1)

New York Stock

American Stock Exchange

Exchange

the
and

small

B.

Fulton, Reid & Co.

4.30%.

to

There

factory

Frank

3.3%

was

4.27%

while

5.50%

1953

same

dropped

Nichols

John C. Maxwell, Chairman

.»

price ratio of preferred

was

E.

Blair & Co. Incorporated

in 1953 and
yield of 40 in¬

same

taking

total.

York

Donald

1954 the average

the

For

3.06%.

Manufacturing" and "Petroleum Industry," is Included only once in the

of

in

bonds

of Oct. 2,

as

yield
♦United

early

industry

1954.
—

'Leonard D. Newborg

Cleveland

A. M. Law &

industrial

of

future

by private resources rather than

—Millions of Dollars

Petroleum

expenditure of $9,200,000,-

000 in 1954.

industry if the utilization of this
source of energy is to be financed

Plans for-Capital-Investment

All

W. H..Newbold's Son & Co.
.

COMMITTEE

New

!

000>000 in 1955 as a8ainst an estl"
mated

1952, it ^common stocks and preferred
satisfac-*

of

amount

less

and

so

followed a pattern of a general r As you will note from the table,
rise r since : the low point- was all ^ manufacturing ' industry
is
reached in the middle of 1953. At r planning to spend about $8,600,-

in

securities

1951

Bond prices

cor-•

netting them

materially

still amounted to

tory total.

,

this in-

dustrial

Indianapolis

I Philadelphia

-

-.INDUSTRIAL SECURITIES

will,need large sums of money is

In addition, during this period
preferred stocks were issued to
the extent of $580,000,000 and
common-stocks v. to the extent, of
$700,000,000.
V * v

industrial

Corporation,

in which industry

a year

ing $1,900,000,000 privately placed,

While the total is-

$2,128,000,000.

Indianapolis Bond and Share

stock market might lead to more
equity financing. That 1955 should

manufac-

porations

suance

Mayburn F. Landgraf

general business confidence.

turing in 1953
•J,i s stated
at $10,026,000,-

securities

Philadelphia

capital

new

Respectfully submitted,

1954

available

on

in excess of $3,in bond and note fi-

was

through
its biggest ex-

Jolia C. Maxwell

plans for

that the strength in the industrial

For

gone

sold

on

N. Kirkland

Jenks, Kirkland & Grubbs

amount

nancing

in

cent years has

1953

profits tax and probable

of corporate bonds issued amount-

200,000,000

re-

nance

Cleveland
Samuel

the present 52% corporation tax
will be lowered, it would seem

$8,900,000,000,

in-

dustry

000..

Joseph, Mellen & Miller, Inc.

,vIn conclusion, the Committee
feels that in addition to various
tangible factors, the important
psychological factor of general
business confidence augurs well
for the future industrial securities
market.

corporations in 1953, estimated at

American

all

Herman B. Joseph

capital issues to

John S. Newbold

that

—

record.

new

1950

already

known

excess

corporations. Gives most recent data

Ex¬

all securities issued since

Stifel, Nicolaus & Company,
Incorporated, St. Louis

refunding. Foresees likelihood of increase in

by privately owned corporations.

change Commission's compilation
of

expectations of heavy

are

equity financing, due to abandonment of the

2.

The

and there

both expansion and debt

cover

nual

Bert II. Horning

future of industrial financing is brightened by the growth of

says

atomic energy,

an¬

Financing

Maxwell, in report of the IBA Industrial Securities Com¬

Bankers

Other Principal Exchanges

margin of profit which has

pertained in competitive bidding,
(2) the large amount of securities
which have been

Underwriters and Distributors

NEW YORK 5, N. Y.

BROADWAY

120

privately placed,

the heavy speculation in

and

(3)

low

priced mining shares. It is to
that a solution to some,

be hoped

if

Investment Securities

not

all

to

these

of

points

of

Offices in:

can

Ac¬

be found.

Institute

countants has taken

Committee

a

up

New

with your

to

certified

public

countants. At the present
indentures

bond

ices of
ant

where

the

needed

are

Rhoades! & Co.

sultation

.

ommends
42

WAUL STREET




~

~ NEW YORK 5, N. Y. :

Committee

your

that

the

"

.

.

.

'

or

-

Santa Rosa

Raleigh

the

fail

agree,

selected

an

-

Vineland

Winston-Salem

.

rec¬

acceptable to

parties. In the event that they
to

Orange

Morristown

following

firm of certified

public accountants

Jersey

East

Santa Cruz

Durham
•

Direct Private
All Branch Offices

audited by a certified pub¬

lic accountant

New

San Mateo
North Carolina

phrase be used as a substitute:
.

Salinas

Chicago Heights

"na-

guide to the trustee. After con¬

York

Chicago

the serv¬

tionally known firm" are used as
a

Scranton

Oakland
Sacramento

time in

words

Lancaster

Carmel

Illinois

certified public account¬

a

Allentown

Berkeley

Syracuse

ac¬

Philadelphia

San Francisco

Rochester

ing in bond indentures with ref¬
erence

York

Brooklyn

change in the word¬

Pennsylvania

California

New York

American

The

Carl M. Loeb,

37

auditor shall be

by the. trustee.'^

~

Detroit

•

Buffalo

Sunbury • Lincoln •

•

and

Wires to

to our

Indianapolis

Correspondents in
•

St. Louis • Minneapolis

Omaha • Des Moines •

Sioux City

Toronto

33

(2490)

The Commercial and Financial Chronicle

'

;,

Thursday, December 16, 1954

.

Outlook for Private Foreign Investment
The

Foreign

mittee, set

Investment

last

up

summer

Com¬

Foreign

by the

Investment

Committee,

Investment Bankers Association of
America, under the motivation of

Bankers Association of America,

the

report to the 43rd Annual

Administra¬

the Federal Government and private organizations in

Foreign
Opera tions
tion

of

the

mate for

Chairman,

Craft,

of

the
Se¬

curities

time to
The

Foreign

cember
to

1

decision

form

to

Investment

Twas motivated

its

IBA

an

with the President's executive as-

Committee

originally by

a

Robert

Forty-

H.

ers

Association lend

some

Members

The

text

The

Foreign

of. the report follows:
Investment

In

fact

constituted
and

the

may

just

Committee was

thS ^aTt

away

ronort"

to

at

a

have

with; opportunities

nate our activities.

tjnS

covern me n t

brief description of

^ohitacleT^nd1 hazards

State

and

.

.

j

trickle to date,

a

eariy stages of this transiprivate

capital

:

now

exist

now^exist

?erned

in

like

aiso

observations

to

make

the

and'in
'

>

countries

combination

government

general

Commerce

foreign investment climate.

and

the

on

in

us

.

,

_

nart-of

Will

of prospectuses which

^

'SerVe aSfa *£

vvi-i

wc

uv,

cotvc-u

manv

need

TnWsted ^n
'"

fTnfncing

furnishing

orest^

*aults' t0 revise laws s°
vide

the

World

Bank

Development Advisory Board; also

the formation of a new

the

as '° pr0"

in

est

examining them, either
principals, underwriters or

as

ration.

Although

the purposes

full

as

the marked and gener-

is

worldwide

economic

nancial

With this

objective of ex¬
ploring specific investment oppor¬

eral

tunities

that

same

in

Latin

American

coun¬

tries, there is currently in process
of organization an Inter-American
Conference

held

be

to

Orleans in February.

the

merit

International

Advisory

Operations
Members New York Stock
Exchange and Other Exchanges

other
act

as

we

tion

DISTRIBUTORS AND DEALERS

of

Board,

provide loans and equity capital
in

conjunction with private capiivate

while
been

sev-

It is not insignificant
our

domestic

economy

in

requiring

Hte^ivernmen of 1 e country
wnicn

ine

equity participa ion is
.

enterprise

the guarantee

The World Bank

a

en.

has done

ing operations—and has been suc-

read-

cessful in

attracting

private

justment during the greater part

ticipation

with

Although

of

1954

undergoing

that

most

of

some

the

rest

of

several

it.

par-

the world has experienced further

nance

substantial recovery.

est size, there is a good basis for

In addition,

Corporation will be of mod-

and

in

at¬

meetings.

...

.

Representative business
bankers

NEW YORK

from

countries

12

will

contemplated

WASHINGTON

—-

BALTIMORE

Latin

men

and

American

LONDON

concerning the\ nature of
projects for whichf fin^'c^g

the

is. sought, will be

ness

in

men

~jiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiif||||||||||j||j|||||j||||||]||||||!|j|jj||||||u^j.

t

Now,

all

we

as

know,

during

E

sons.

EE

been too

=

tunities

E

cause

EE

leading stock and commodity exchanges

this country to go abroad. This has
been for a variety of obvious rea-

E

Members New York Stock
Exchange and other

incentive

=

H. HENTZ & CO.

instability, there has long been an
underlying antipathy to foreign

EE

for

For

STREET, New York 4, N. Y.

private

thing,

one

at

of

capital

there

attractive

many

home.

and

in

have

Dealers In

oppor-

Secondly,

political

be-

economic

=

EE

lack

United States Government Securities

investment. Fear of expropriation,
of

currency

EE restrictions
EE

60 BEAYER

YORK

there has been little

years

EE

1856

NEW

meetings.

recent

Established

OF

this

country to form
preliminary judgments and thus
be in a position to discuss the proj¬
ects seriously during the course of
the

CORPORATION

made available

sufficiently far in advapce of the
meeting to enable interested busi¬

Representatives* Offices: GENEVA—AMSTERDAM

DISCOUNT

attend, and it is
that detailed infor¬

mation
—

and

=

substantial

on

convertibility,

remission of profits

tax

onerous

laws

have

been

deterrents.

Bankers Acceptances

BOwling Green 9-8420

781

FIFTH AVE., N. Y.

EE

(Sherry-Netherland Hotel)

PLaza

CHICAGO

DETROIT

HOLLYWOOD, FLA.

view that for too long

a

EE

emphasis

investment

time the

1-2220

PITTSBURGH
BEVERLY

Your committee has shared the

EE

MIAMI BEACH

HILLS, CAL.

CORAL GABLES

GENEVA, SWITZERLAND

AMSTERDAM, HOLLAND

on

foreign

EE has been misplaced. Unfortunately,
E as a result of experience in deal=

ing

with

government

our

•

on

of

Distributors

Corporate Securities




grants-in-aid

=:

impression

EE

many

E

ican private capital also is readily

±

basis,

has

an

been

erroneous

created

in

foreign countries that Arner-.

available

on

conditions.

almost any terms and

Obviously,^ just

Fifty-Eight Pine Street

a

E

Underwriters and

the

in

the first instance International Fi-

delega¬

a

mem^rs

at those

an

outstanding job in its direct lend-

Foreign

Administration

expect to have

tendance
j

together

Develop-

years.

of the last

fi-

of

known, it is expected that.it will

organizations has agreed to
a sponsor of this Conference

and

UNDERWRITERS,

New

The Invest-

Association,

ment Bankers
with

in

bas

recovery

and

details

and functions of this

organization have not been made

Beyond that, and more basic, of of
course,

subsidiary,

International Finance Corpo-

, tr€atment for foreign

agents for clients.

HIRSCH &

agencies,

contemplating

is

for

for

the

^

%%£ SS^i^enV
International

con-

with

v.v,e„LnrA'tiotablv the World Bank and the
f
atmosphlre Thtre is Export-Import Bank.. To this end,
^dmin strat.or. hasit/recentty was announced that
to assist
the prepar
'

^

several

the

about

prob-

partnership with the

of

nationals

we

wouid

has

investment

ivate

D
.

,

Among ; other 'things,; Foreign

..uuuniavto

Treasury and

;
'

tieioation

to

n

nartmentk of

the

Outside

exceptionofCan-

be attracted by par-

tivelv

Ra~«

capital.

government

neriod
P

^AdminTstra- ^^6^ are su^m'^ed ^0r COnS'^" h^u^s ?m«rder bv dealfhe effee^
with fiscal -problems,
by
Federa^XReserv?Pa d fh e' De^'^Wm?Phankersg^who* might 'be takinS stePs to clear up past de"
Treasure
*—~

substitution

the

country,

+r j0f

anid-ad

of economic aid to

The next logical step is
of private for

opment.

available

I,nv«wnt that
most effectively-coordi-foragn investment that

can

we

in which the Com-

Operations

thi<?

juncture. Nevertheless, your President suggested that
you might bel
interested in

thinking,

program

to the granting of
loans for private industrial devel¬

some

and departments dealing unities o7'diverse nature^and the attraction of American capital,
agencies
with f01'ei«n investment problems. ramount. Later, as these specific Some c°untr>gi have done

monthratTher0efo°relythe^eUklennt
romnlishmpnt

Committee

war-

largely

governments

take

contrary is the case.-As Mr. Clar-

of these groups for the puH?ose,

conceP^ In genetal, the Commit- called
*ee Pr°P°ses
function as a liai-nation

summer,a tp rn ftv

actually has been functioning

the

of

been

has

areas

completed and we are now in the
transition period from the give¬

foreign investment."

the^foreign, d.scussing the
Our

'LSft

Associa-

vour

field.

areas

representatives of most

mittee Pigh' °perate has extended \

Com-

fs th^Lst re"

lished aooendaee of

about the

of

met with

practi-

of the
Association, cal assistance With the problems
Hollywood, Florida.
•
;,?f these agencies in

! investment

tion

stricken

conference

a

relief

Government

oj^rtunitie

and Foreign Operations Adminis-tration that the Investment Bank-

Craft

Annual

held at

II.

War

cli¬

a

sistant, Mr; Clarence Randall, and-ence Randall has said,
^American
his staff who are responsible pri- capital must be wooed.
Tt nius
marily for the promulgation of-the be presented'>with
President's foreign policy pfogram. sufficiently attractive to compete

re-

quest from the State Department

report

the

tnittee

Committee, however, concludes "it

all the obstacles and hazards to

remove

Convention

t

assisting to create

•

York City, re¬
leased on De-v

Third

its

Cor¬

poration, New

£irst

Craft, in

a

pears

February to explore specific investment opportunities in

Latin American countries.

H.

American

good deal of opinion
prospect for peace ap¬
brighter today than at al¬
most any time since
befor^World
is

the

that

Convention, tells of its intention to collaborate with

foreign investment. Reveals participation in organizing

in New Orleans in

ment, through
Robert

there

Investment

.

State Depart¬
its

the

by Robert H.

headed

and

by

constituted

recently

new

YORK 5, N.

Y.

Volume 180

expecting

Number 5386.

rapid

activities

expansion

under

the

able

.

The Commercial and Financial Chronicle

.

in

specific proposals: that
originate with governmental

its

amine

leader¬

ship of World Bank management.
There have

been

two other

the

agencies to

re¬

Will 1955 Produce

Respectfully submitted,

ticipation.

COMMITTEE
Robert H. Craft,

The first is the Chase

American

Bank's proposal for the formation
of a private corporation to
supply

Jean

;

Bank

The President has recommended

sizable reduction in taxation of

Trust
San

business income from foreign sub¬
removal

limitation

of

John

National

dall

Commission,

the

consists

President's
four major

of

parts: first, aid, which

we

third,

to encourage;

wisn

vertibility, which

Young

f

~

'

New York

we

to

expand.

it

wisn

may

Again

ital

insignificant flow of

an

in

abroad

the

the

two

past

Dec.

cap¬

op¬

portunities will become available
in

volume.

increasing

there
this

of

sufficient

is

to

warrant

tention

it

desirable

can

a

ments that
terest

to

any

we

the

Association

Sulphur Springs,
18-21,
1955, and the fall
meeting at the Edgewater Beach

Hotel,

been

will

as

obviously
encourag¬

HOUSTON,- Texas.—The Texas

of

of

■-

private

to

keep

major

Group of the Investment Bankers

for

you

Association

of America

will

hold

its 1955 Spring Meeting in Hous¬
ton at the Shamrock Hotel, April
24-27.

this

field,

of the
and

member

firms

opportunity to

These

Wall

ex¬

Dick & Merle-Smith,
New York City,

Street,

members of

the

New

York

Stock

Exchange, will admit Walter N'espartnership.

tel and Paul Arbon to

local

for

cept
and

there,

Dow

L. Matthews

this

the

measure

bricks
than

of

and

did

pulse

tainly

the

bricks

sticks

the

made

allow

road buildine will dron 13%

against

15%

for

1954.

more

Federal

conservation and development ex-

-penditures

will

sluff-off

vs.

on

Mr.

another

That's about the story

6%

.

13%.

the decrease side.

.

.

•

• -

Our Steadfast

for

over

40

Policy

years

cer¬

something

advance

no

know

as

the

in

last

this

of

is

industry

an

it has made advances.

If the gues-

10%,

.

today's
bil¬

equivalent of 1923-29's $11.4
lion is $24.2 billion.
The

national

1955

construction

expenditure is expected
$39.5

reach

to

billion, is the belief of Mr.
and

$24.2

$39.5

has

increased

'20s from

118

to

35%. On

a

per

since

capita basis con¬

building dollars, increased

$205 to $246 for
child.

every man,

statistical

The

difference of $31 or 12.6% more
on

level with

a

quarter

a

This indicates a 1955
expenditure of $44

necessary

reasonable

for

it is hard to

see

construction

is

in

any

error

this

in

evidence that

over-extended

immediate

any

or

of

danger

a

bust."
There
tors

are

which

the per

other

economic

fac¬

support the view that

capita expenditure can go
getting into

well above $300 before

the danger zone, maybe to $400 or

$500, according to Mr.

Among
1920's

these,

is

the

in

Matthews.

relation

increase

in

to

the

the
total

working labor pool from some 35
millions to about 60 millions. This
is

a

fantastic

ervoir of

invited

to

avail themselves of

our

services.

Dealers and Underwriters

increase

in the

res¬

people able to buy con¬
struction's product—shelter or fa¬
cility— having potentials for ex-

of Higk-CraJU Securities

Memberi Mew York Stock

Exchange

t

SIXTY WALL STREET, NEW YORK 5,

160 millions,

expenditure has, in terms

and

are

Salomon Bros. & Hutzler

$15.3 billion, constitute
The population of the

States

get

Financial institutions

asks, "Does the dif¬

between
or

boom?

ing




7% against this year's 10%. Rail-

The

status quo approach to an answer

Pittsburgh

volume

1954 dollar

per

to attain sta¬
capita parity with the
so-called roaring '20s. Even allow-r

•

a

People who have lived

years.

billion is

San Francisco

arrived at

sticks

tistical per

•

no way

unrealistic, open to cen¬
say that the industry

construction

Washington

has in

and to

sure,

has

to

century ago.

•

money

physical

and

1923-29 dollar.

not

would be

to

St. l©ui»

■

cost

this influence is in doubt but

a

•

example, taxpayers'
pubijc
housing which

of.

equivalent of $205 i$ $277 and we
are spending at the rate of $246,

Philadelphia

jror

housing and other

amount of credit to be ascribed to

woman

Cincinnati

m

techniques, new materials and de¬
sign and layout, assembles more

from

•

expected in 29 and

However, not¬
withstanding reports to the con¬
trary, it is a Dow Service belief
that
improvements
in
erection

of 1954

•

about

erected in 1923-29.

struction

Boston

be

here

construction

equal

to

year

volume

or

•

^ill

year shift in emphasis as between
categories or types of buildings,

part of U. S.

States average an increase for the

the

Cleveland

J? bving standards, that is to say,
on the

States

dislocations

Service

United

HAnover 2-2727

are

J926-54, inclusive, of 125%. This
means it would take $25.7 billion

a

C. J. DEVINE &CO.

exDenditure

increases

P°
decreases in 9. This means that
l^s. The increase there will be the usual year to

the demand

indexes for 146 cities in the United

ference

Chicago

that

$39.5 billion. Out of 38 categories,

T+ f-re

boom and bust

the smaller geographic markets of
which the total is the summation,-'

billion,

Street, New York 5

national

totals," point. Boomlet? Possibly.
points out, and, ex-'
Notwithstanding all- this,

United

Matthews. He

48 Wall

gross

Com¬

in
dropped
39% in ,1954 yvill drop another
r> larger
per capita potential. These
26% in 1955. This type of financfew things are mentioned not to
ing for industrial-building will
be all inclusive or to suggest that
drop 33 % adding to an 11% drop
1-there*'are' not some counter ln^
^is year. Industrial construction
fluences- such-as
taxes,
but to where private funds~are used will
establish the line of thought that
drop 8%, which is a slightly lower
construction a 0 t.iv i t y however
rate of shift. than 1954's 10%. Farm
wonderfully pleasant it is to peo- construction is expected to con:
pie in or catering to the industry, tinue ;ts downhill slide
by another

—

are

timate
On Jan. 1,

in

and

Matthews points out,

hSre^'iointlv"'

'•

Mvron

1954

construction

Dick & Merle-Smith Admit

as

increase

greater

The U. S. De¬

Labor

of

Mr.

merce,

calculation.

expenditure wise. At this rate, he" which needs be classed
boom,"
says, 1955. will top 1950 by nearly especially if the use of the word
40%, and the $11.4 billion average connotes "bust" and disaster. The
of the booming'20s by about 245%; industry
is nowhere near that

25

develop¬

the proper machinery has

an

16-17.

believe to be of in¬

established,
have

September

Texas

48
soon

Chicago,

to

membership

in

is tentatively sched¬

White

May

at¬

basis.

of

for

Group IBA to:
Hold Spring Meeting

We shall endeavor

apprised

„

required
contribute

objective

sound

the

of

and

governmental aid and investment
on

at

the

to

substitution

ing

uled

problem

committee

your

whatever

held

Hotel, Holly¬
from Nov. 27 to

least

prospect
time

the

the

to

At

be

Associa¬

Beach

of governors

continues

investment

again

Florida,

2.

Convention of

Bankers

The spring meeting of the board

there is good reason to expect that

attractive foreign

will

wood,

immediate fu¬

years

annual

Hollywood

at

ture, but if the favorable progress
of

1955

Investment

tion

premature

be

this stage to talk in terms of other
than

The

-

the

cilitate; and fourth, trade, which

capita

per

even

"

above

estimates,
7%, more
less, higher

than

an

Maybe

-

ex¬

1953. And 1955

be

Meet Again in Kollyw'd

con¬

wish to fa¬

we

5%

1955.

partments

1 forms of construction also spells a

c o n-

,

Mr. Matthews

curtail; second, investment, which
we

be

to

IBA1955 Convention to

wish to

mere

fmer'things

this

in

1956, and.
but that's too far ahead to see.

on,

citizens for more and,more of the

penditure will

'

the recommendations of the Ran¬

program

,

will, according

Morgan Stanley & Co..

Largely along the lines of

■

,■

Tsolainos

M.

r's

y e a

Savings Association;

r

corner?"

struction

:

factor

What about 1955?

tf
*

and to become

so

raising the industry's sights when

around

estimates

v

v

America

a

The

■

bust

a

the

]

or

-

in

construction

bender

a

just

Baker, Weeks & Co.,

credits; and the broadening of
existing authority to guarantee
against losses on new investment

York

Incor-

industry

with

,

New York

tax

abroad.

&

New

Service

construc¬

tion
on

Francisco

K. P.

—

foreign

on

the

Peery

of

Dow

,

William F.. Machold

H. Taylor

enjoying. It's the
principal supporting factor of all
industry and the national econ¬
omy. It's going to continue to be

penditures for beyond those found

-

George Lindsay

Co., -;
Philadelphia

ket the U. S. is

Industry?

n7AKn°rt%S' in answering the pr?du^*s pother argument for
question, 'Is
Is-,
..

Drexel &

The

of

porated,
,v.

Swiss American Corp.,
New York

abroad.

branches

dent

;

.

maintains, it's a good,
strong, healthy construction mar¬

the 1920's.
Myron L. Matthews, Vice-Presi-

Milwaukee, Wis.

System, investigating
the possibility of liberalization of
laws governing commercial bank
participation in foreign financing.
Acceptance by the Congress of
the President's foreign economic
policy may tend to clear the way
further
for
the flow
of
capital

foreign

•

The Milwaukee Co.,

study conducted by the Fed¬

or

.

Cattier

Joseph T. Johnson

eral Reserve

sidiaries

Corp.,

New York

*.

now

a

Securities

White, Weld & Co.,

in this country, a function
performed largely by the Ex¬
port-Import Bank, and the second

ment

;

Chairman

New York

financing for purchase of equip¬

is the

,

39

Matthews

Bust

Myron L. Matthews, Vice-President of The Dow Service, con¬
struction news reporters, states that the 1955 construction
expenditure is expected to reach $39V2 billions, but even this
high figure will not attain statistical per capita parity with

FOREIGN INVESTMENT

that government is taking a more
constructive view of private par¬

or

In Ihe Gonstruclion

cent

developments that indicate
first, that private capital may be
becoming less timid, and second,

Boom

a

that they

extent

in doing so.

interested

are

(2491)

•OSTON

•

PHILADELfHIA.»

CLEVELAND

•

N. Y.

CHICAGO

•

SAN FRANCISCO
car—

40

The Commercial and Financial Chronicle

(2492)

Investment
The

annual

vestment

of the

the In¬
Committee

calls attention to

Investment Bankers Asso¬

ciation

ciation by the

company

Committee's Chair¬

Robert L. Osgood of Vance,
Sanders & Co., Boston, Mass., at
the 43rd Annual Convention held
in Hollywood,

law to

a

shares and life insurance,

well

as

amount

the proposal in New York for

as

Florida.

permit formation of

and reveals

from

so-called "variable annuity company." Stresses

a

rapid increase in

programs

tion of

Public Information Com-

a

mittQn

mutee

oy

me

National

As-

limited

Shortly there¬
s u c

h

a

Com mittee
nrean

M!

bed

office

an

rfr»t ,hliih

estannsn-

was

ed

and

per-

sonnel

was

hired to work
under

the

di¬

rection of Mr.

retained

Osgood

of this

resents such

nies,

a

work

sociation

the

B

was

director.

as

formation

former

Edward

Burr, who

L.

Robert

of

In

that

.

the

Committee rep-

departure from the
the National As-

of

Investment

nature

of

its

Compaactivities

should be of considerable interest
to

members

of

the

Bankers Association

As

Investment
of America,

previously

was

is

efforts

as

(other than

investment

received
company,

sources

or

than

other

dividends. If less than 75% of the

for continuous investment.

company's
eligible

educa-

picture film, are currently being
studied and will receive early
attention.
Perhaps one of the most important accomplishments of this Com-

cial editors, publishers, educators,
—?
r
7
vr—'

,,

„

columnists, news commentators,
librarians, colleges and various

.

,

°! associations. In the short mittee so far has been to meet

of

this

number

of

Committees

articles

ment companies

about

life,

with

a

invest-

have appeared

the

of. the

representatives

Association

the

of

to

companies

or

have been scheduled to appear in

competitive

life

discuss

insurance

common

problems.

sales

A

f number of magazines.

'?

1

a

three

month based upon the re-

a

search

and

uable

work

done

titude

Val-

ment

data

gathered

regarding the invest¬
business is being
on
a
continuing basis.

The

issue

a

cooperative and understanding at-

guidance.

statistical

under Mr. Burrs

ment

the

on

part of the investsalesman and in-

company

salesman.

surance

is

income

divi¬

from

first

"Topics,"

vestment
vcol(t„clII,

of

a

bulletin

covering

company

the

innao

recently been sent to investment
banking firms. This report will
come out from time to time—perhaps three to four issues per year,

A

bulletin, "Investing Made Easy,"
been written and is nearing
publication. A good start has been
has

on

the

"Handbook

of

In-

vestment Companies," which will
be widely circulated among
schools and colleges, etc.
Many
other projects, including a motion

the

for
will

be

exclusion
and
- r a t e d
ac-

p r o

cordingly.
On Dec. 15, 1953, the Securities
Exchange
Commission
anPrograms for Continuous
nounced the adoption of revised
Investing
forms N_8B-i and S-5, the basic
In the Report of last year, your
registration statement of manage- Committee discussed the programs
ment
investment companies and for continuous investing in rather
the prospectus of open-end com- general terms.
Since that time,
panjes> Generally speaking, the data has been gathered that inpurpose was and
the effect has dicates that investors now have a
„

_

ten and simplify the

total of 192,000 such plans in ef-

vaHo„a forms by pliminafinu d.,various ,„™
eliminating du-

feet renresentine a total investfeet representing a total investment value of $298 million or an
average
per
account of $1,550.
Over 53,000 new plans were

h

,

plication and information not
garded

essential

ag

the prospectus more

re-

and to make
readable.

Federal tax bill,

new

stockholders of domestic corpora-

s*ar^<* *n the first 10 months of
1954. That this area of sales is

subsequently
enacted in the State of Kentucky
lvcmuLnj
which
specifically
permits
the
purchase of investment company

tions are permitted to exclude
r,hatdlL'f.
from taxable income the first $50
thirf
19M
...
m dividends received and with sales ot tne tmra quarter or iaa»
respect to dividends in excess of amounted to 10.3% of total sales,
$50, a credit of 4% against the tax rjoooerative Educational Efforts

securities under proper standards
by fiduciaries. Furthermore, the
income tax law in Kentucky was
revised to
conform
to Federal
law and the authorities have in-

itself. The investment companies
A
f
r„
under the Act are permitted to
*"e atl° al Assoc at on of inpass on to'their shareholders the vestment
Companies became a
benefits
of
the
exclusion
and member in the past year and concredit. Furthermore, if at least tributes to the support of the Joint

During the

en-

activities, has
aLUvniCa

Legislative Efforts

credit

and

Under the

company

titled

regulations have, in fact, been
adopted and are in force.

Releases joint statement of principles was
new(sPaPers, h®ve( been dfv?Qoped and adopted on Sept. ^

stepped "P to a rate of two or 21, 1954 which should lead to

made

stated, the
initially operating
on an
annual budget of approximately $100,000. Its scope will be
Committee

such

to

tional work with the press, finan-

span

after,

the

full

the

to

dividends)

dends, the shareholder's dividends

types

Companies.

respect

dividends

though

interest

Companies,

In the report

submitted by your
Committee
last
year,
reference
was made to the proposed forma¬

of

gain

25% or less of the
company's income is derived from
even

value of cooperation with the National Association of Investment

of the report follows:

text

with

credit

problems involved in "single package" sale of investment

capital

man,

The

will be allowed the exclusion and

Committee, headed by Robert L. Osgood,

released to the Asso¬

was

Thursday, December 16, 1954

Company Progress and Problems

The IB A Investment Companies

of

report

Companies

...

m

terpreted

amendment

year, an

proposed

was

and

mc

utaic

this to

w

include the tax

treatment of capital gains distributions received by shareholders
from investment companies.
In
addition, the Colorado tax law
amended

was

gains

to

treat

distributions of

companies

as

ouaAe^of

^e„f®f\he

75%

of

the

company's

gross

in-

Committee

on

Education

repre-

(excluding capital gains) is sentjng
the
securities
industry
derived from dividends received
T
f
\
from other corporations, the in- which
includes the Investment
vestment
company
shareholder Bankers Association of America,

come

....

.

capital

investment

capital gains of the

shareholders rather than

ordi¬

as

dividends. Litigation to ac¬
complish the same end has been

nary

underwriters and dealers

started
In

dealt

investment securities

in

Underwriters and Distributors of

Tennessee.

report of last year, we
at considerable length with

our

the recommended changes in the
Jenkins-Keogh Bills, which would
enable
partnerships, associations
or

even

perhaps

individuals

Railroad, Public Utility and
Industrial Securities

to

set up their own retirement plans.
There
has
been
no
progress
in

the

status

they

of

were

committee

in

Congress.

these

not

bills

in

reported

the

last

that

out

State, Municipal and Public Authority Bonds

of

session

of

Close attention contin¬

ues
to be
paid to this possible
legislation to the end that the se¬

Burnham

and

Company

Members New York Stock

Exchange

Street, New York 5, N. Y.

Established

1857

lar will have proper access to the

investment of the substantial

15 Broad

F. S. SMITHERS & CO.

curities business in general and
investment companies in particu¬

sums

MEMBERS

possible of creation thereby.
The Investment Companies Com¬
mittee
of
the
National
As¬
sociation

of

continues

New

York

1

WALL

its work with the SEC

Securities

Stock Exchange

American Stock Exchange

STREET

41

SUTTER STREET

Dealers
New

York

San Francisco 4

5

to

change, by interpretation or
amendment, some of the areas in
the Statement of Policy that have
proved to be the most difficult,
and there is hope that something
will be accomplished in this di¬
rection before long. This Commit¬

.it

tee

has

with

further

agreed to work
Investment Companies

the

Committee

R. L.
"

MEMBERS

the National

1939

with

the

following

(1)

To

recommend^ retention

all

regulations

in the

(2)

OF

AND

INVESTMENT

DISTRIBUTORS

NEW HAVEN

t

regulations

not

(4)

To recommend that after this
is

accomplished,

good

regulations

all

of

be

tified

VAn Alstyne. Noee & Go.
Members:
New York Stock

52 WALL

strictly

companies be

Exchange

American Stock Exchange

STREET, NEW YORK 5

the

enforced in all states and that

investment

CORPORATE FINANCING

demon¬

tions be condensed, simplified
and made more understand¬
1

i

demonstrably

public interest.-

able.




PRIVATE PLACEMENTS

of

strably in the public interest
or required
by just and equit¬
able principles of trade.
(3) To recommend .that regula¬

NEW YORK

HARTFORD

•

in

To recommend elimination of
any

SECURITIES

BOSTON

SPRINGFIELD

SECURITIES

mind:

"

Exclumge v.: Boston Stock Exchange

UNDERWRITERS

MUNICIPAL AND CORPORATK

Asso-*

istrators and, as a consequence, is
currently making a study of all
resolutions adopted by the NASA

1862

since

New York Stock

of

ciation of State Securities Admin¬

Day & Co.

ESTABLISHED

UNDERWRITERS AND DISTRIBUTORS

no¬

by such states that the

Philadelphia Officlk
Room 831, Western

Saving Fund Building, Broad Si Chestnut Sts.

<

■-

•

Number 5386... The Commercial and

Volume 180

of

Association

National

the

Se¬

curities Dealers and the Stock Ex¬

which

basis

a

would

offer

a

distinct tax advantage over

very

in

investment

direct

strongly recommend that it be op¬
posed as not in the public interest.

common

This
provides scholarships stocks, in that under the tax laws

change groups in New York.
Committee

on-the-spot tours and train¬

and

on

(2493)

Financial Chronicle

premi¬

income earned on annuity

payments may be reinvested
ing in the financial community for
tax free during the life of the
students and professors.
contract. In short, the beneficiary
Combination

of

Sales

Insurance

Investment Company Plans

And

Within the past

several years, a
underwriters in the invest¬

of

annuity could have common
dividends
reinvested
tax

an

stock

INVESTMENT

nuity contract and would, in
field have offered opinion of the proponents of
for distribution an insured plan of bill, be subject to taxes only
periodic purchase of investment some portion of his annuity
come when paid to him.
company shares. Your Committee

few

ment company

has been asked by the

committee

National Asso¬

the

of

Securities Administra¬

of

ciation

appropriate

tors to reach a

decision

wheth¬

on

Robert L.

a

mon

your

Association.

During ..your
discussion of this

Com¬

lation

mittee's

prob¬

exchanges and the National Asso¬

lem,

very

opinion

as

well

as

regulation by the

differences of ciation of Securities Dealers. It
expressed and be¬ would, therefore, be exempt, not

There

has been

a

discussion recently concerning

Federal

and

State

Appar¬

interest

legislation for

Company.

•

some

and

subsequently adopted, the in¬

surance

company

salesman would

be able in effect to offer a

fied

diversi¬

stock investment but

common

ment

watch

is

studied
such

this

introduced

with

bill

great

it

If

care.

above,

1,

Securities

Northwest Company

Harriman

ment

Coffin

Corp., Chicago

New

Company

Philadelphia

Arnold

Cohu

W. Baird &

Wm.

Milwaukee

the

The Parker
Boston

any

..

B.

R. S.

New

Atwill

.

L.

F.

WILLIAM

Rothschild

New

York

vF.

St. Paul
*

Harry L Prankard, 2nd

Denotes

Stock

Boston

BISCOE,

Co.,

Topeka

M.

Houston

Corporation, Omaha

CHARLES

HARRY

BESSE,

Miami Beach

&

HENRY

R.*
New York

New York

BERGMANN, CHARLES L.
R. W. Pressprich & Co.,

ATWOOD, CHESTER A.

Caldwell, Phillips Co.

Dallas

Company,

BENZING, WAYNE R.
Granbery, Marache & Co.,

MURREY*

Company,

Detroit V

BENNETT, Jr., EDWARD T.
Manley, Bennett & Co., Detroit

York

Ashplant & Co., New York

&

-

Pomeroy,

HARRY*

States Investor,

United

Dickson & Company, Charlotte

ATWILL, Jr.,

,

Guybert M. Phillips

lines

would

we

F.

ATKINS, J.

Corporation

Cleveland

Company,

Cole &

Wachob-Bender

Co.,

&

Co.,

W *

THOMAS*

BENNETT,

ALBERT

Pollock

&

Hutton &

ROBERT F.

BENDER,

/

ASHPLANT, FREDERICK B.

Amory Parker

be

E.

Cleveland

Co.,

F.*

Southwest

Beecroft,

D.*
York

H.

ASCHER,

Co., Inc.

&

Moroney, Beissner & Co.,

Co.,

New

Milwaukee

Company,

Miller

BEECROFT,

H.

New Orleans

Crane,

F.

York

First

Corporation,

GEORGE

&

Dallas

Company,

DANA

BEISSNER,

&

ARTHUR,

York

K.

GEORGE

BECKETT,

WILSON*

H.

York

D.

New

BECUTEL, CHARLES C.
Watling, Lerchen & Co.,

Boston

York

ARNOLD,

New

New York

Pittsburgh

T.*
Incorporated,

GEORGE

Co.,

Williams

Schoellkopf,

Hanseatic

York

New

Ludlow F. North
Robert

York

ALBERT
Burr,

ARMSTRONG,

Walter L. Morgan
The Wellington

&

&

JOHN

Hnyden,

Ripley & Co., Inc.,
A. LOWRIE*

ARMITAGE,

Reed

BEAVER,

Hulme, Applegate <fc Humphrey,

Shares Manage¬

&

Milwaukee

BAXTER,

Nashville

APPLEGATE,

A. Just

FRANCIS

PHILIP

Baxter,

J.

LEROY H.

APGAR,

Shreveport

New

BAXTER, Jr., CHARLES M.

York

Corp.,

Jr.,

BAUMAN,
The

WILLIAM

&

Andrews

Keith

New

Group,

Jr.,

Co.,

P.*

HUGH*

BASS,

R.

JAMES A.*
Wells, New

ANDREWS,

develop¬

that

follow

should

indicated

r

Television

closely and if and when such

bill

a

Distributors

ANDERSON,

Spokane
Paul

has been proposed which, in¬ securities as the business is now
in fixed-income conducted. Your Committee recsecurities, will invest wholly in omends that the individual mem¬
common stocks and the annuitant
bers and
the appropriate com¬
will receive payment in units of
value rather than in fixed-dollar mittees of the Investment Bankers
Association

Joy

Pacific

In the

stead of investing

legislation is introduced

Company

Equitable

pany

If such

HERBERT

York

Wood, Struthers <& Co., New York

Richmond

Strudwick,

&

ANDERSON,

Francisco

Harper

opinion of your Commit¬
period, the present type of an¬ tee, such a proposal carries a very
nuity based on a fixed-dollar re¬ distinct threat, not only to the in¬
turn does not fully answer the vestment company industry, but
need of their policy holders. With to the entire investment banking
this in mind, this new type com¬ business and the distribution of

amounts.

California

First

in¬

of

interest

the

or

Anderson

&

Company,

Leeds

BARTOW,

Antonio

GEORGE VV.

ANDERSON,

New

New-York

Co.,

RUSSELL*

WM.

Leary

Bartow

EDWARD C.
Anderson & Strudwick, Richmond

F. Egan

San

San

Corp,,

Company, Chicago

Co.,

&

EUGENE

BARTOW,

,

ANDERSON,

Boston

John

BARROW,
BARRY,

Boston

York

New

F.

&

&

BARRINGTON, CHARLES S.*

Shields &

DAVID

York

.

SEYMOUR*

Brothers

Barrow,

S.»
Incorporated,

Investment

Muir

Howard, Inc.

F.

Barr

Harry'Downs

Journal,

Street

Wall

HAROLD*

Kindred

Barcus,

BARR,

A.

A.

ANDERSON,

Charles F. Eaton, Jr.

vestors.

Annuity

ently,

ANASTASIA,

the

insurance companies
have felt that, in an inflationary

able

Co.

New

BARCUS, JAMES S.*

Savings Bank, New York

&

Baltimore

Co.,

Inc.,

Co.,

Chicago

York

New

Inc.,

EDWARD
Burr,

&

JOSEPH

&

Barclay Investment Co., Chicago
BARCLAY, BARBARA ANN

Jr.,,E. J.*

&

Jones

BARCLAY,

York

New

Co.,

&

Trust

Coffin

Buffalo

protection of investors will be
York State which would permit completely circumvented and
the formation of a so-called Vari¬ therefore clearly not in the public

in New

legislation

contemplated

Chicago

& Company,

Allyn & Company, Chicago

AMAZEEN,

R.

BANKS,
Blyth

Company,

ALTGELT,
Harris

Eaton &

E.

Orlando

Alleman,

&

ROBERT

Stranahan, Harris & Company, Toledo
BANEY, ARTHUR L.

York

ARTHUR

A. C.

York

Roy W. Doolittle

short the safeguards
the sale of securities
have
been
established
by

New

Co.,

r ■

Sons, Winnipeg
H. B.

Morgan Stanley & Co., New York
E. M.

A.

&

York

&

BANCROFT,

WILLIAM M.*
Ames

,

RALPH D.

BALDWIN,

Boston

C.
A. C. Allyn & Company, Chicago
ALLYN, JOHN W.

Kidder, Peabody & Co.

governing
that

&

E.

A.

Chicago

Co.,

Refining Company,

James Richardson

HERBERT

Allen

&

Jr, JOHN D.
Reynolds & Co., New

MONROE

Allen

Ray

ALLYN,

&

Marache
F.

Wheeler

ALLEY,

Dudley F. Cates

compete. In

great deal of

E.

New York

Doolittle

BAKER,

E. RAY

ALLEN,

Hugh Bullock
Calvin Bullock

ties business with which it would

Variable Annuity

Leedy,
ALLEN,

Inc., Minneapolis

New

Boston

D.*

GUSTAVE

Granbery,
ALLEMAN,

Oil

BAKER,

Bank,

Corporation,

ALEXISSON,

Investors Diversified Services,

cause there has been so little ex¬
only from the prospectus require¬
perience
upon
which to base ment, but also from the advertis¬
judgment, no decision on either ing and promotional restrictions
side
of
the
question has been applying generally to the securi¬

reached.

Hurry,

Harman Brown

W.

honest

were

&

Inc., Los Angeles

&

HINES H.*

York

New

National

GEORGE

Parker

The

Walter

Inc.,

W.

Jr., WILLIAM O.
O'Neal, Alden & Co., Louisville

ALDRICH,

Becker

Humble

ALDEN,

New York

Atlanta

Houston

Group,

JOHN

Rockland-Atlas

Distributors Group, Inc.

Federal and state securities regu¬

opposed

or

AHEARN,

G.

BAKER,

L.

Distributors

Bingham,

A.

Detroit

Co.,

Company,

..

Agee & Leach, Birmingham

AHBE, JOHN

Boston

nuity would be exempt from all

by

supported

plans

Bosworth &

Sterne,

&

HENRY McK.

The Pennsylvania Company, Philadelphia
BAIRD, ANDREW M.

O'Rourke, Inc., Daytona Beach

WILLIAM M.

Braun,

i

HOLLIS*

J.

Tindall

W.

BAGGS,

AGEE, RUCKER*

Herbert R. Anderson

laws, the sale of com¬

J.

Philadelphia

Co.,

Bulge & Kraus, Cleveland

AUSTIN,

K.

WELLES M.

ADAMS,

Curtis H. Bingham

stocks in the form of an an¬

&

T. Nelson

Coffin & Burr, Incorporated

in¬

Ball,

Company, New York

JOHN

ADAMS,

Boston

company,

insurance

Osgood, Chairman

AUGUSTUS, ALBERT A.*

JAMES S.

&

Brooke

Edward S. Amazeen

which would be
subject to regulation only under
As

Allen

ACUFF,

Vance, Sanders & Company

on

be

such

not

or

er

should

the
the

ABRAMS,

COMPANIES

COMMITTEE

during the life of the an¬

free all

In Attendance at IBA Convention

Respectfully submitted,

um

41

Jr.,

New

York

W.

Exchange,

Boston

HOWARD M.

S, Moseley & Co., Boston

Continued

Mr. and Mrs. '

on

page

85

Lord, Abbett & Co.
New

York

Ratcliffe

Myron F.
Bache

Co.

&

UNwmms,

Chicago

STOCK Cr BOND

Robert

O.

Shepard

,

Prescott, Shepard & Co., Inc.

CORPORATE

DISTRIBUTORS

,

Cleveland

BROKERAGE SERVICE

Charles M. Werfy
Putman

Fund

AND

Distributors,

Inc., Boston

for Banks, Brokers and Dealers

MUNICIPAL

Filor, Bullard Partner
Filor,

Bullard

Smyth,

&

39

Broadway, New York City, mem¬
bers of the New York

change,

Hardy & Co.
30 Broad St

-

i

t

■

EMANUEL, DEETJEN & CO.
NEW YORK

J. J. Harris Admits

Members

Charles McGolrick will become
a

New York 4

partner in J. J. Harris & Co., 11

Wall

Street,

Teletype NY 1-733

Telephone Dlgby 4-7800

partnership.
;

Exchange

\

SECURITIES

Stock Ex¬

Jan. 1 will admit Rich¬

ard A. Smith to

Members New York Stock Exchange
Members American Stock

on

New

York

members of the New York

Exchange,

on

City,

STOCK EXCHANGE

Mi0WeST STOCK

120

EXCHANGE

Broadway

•

•

AMERICAN STOCK EXCHANGE

COMMODITY EXCHANGE, INC.

New York 5, N. Y.

•

Teletype NY 1-1973

Telephone Dlgby 9-0777

Stock

Jan. I.
/

'

)■

"

•

4

i

r

•

•

'

•

'

Private IT ires
'

f

ATLANTA

LISTED

&

UNLISTED

BOSTON
BUFFALO

;>

PERSHING & CO.

CHICAGO

SECURITIES

Members

DETROIT
HARTFORD

New York Stock

Exchange

American Stock Exchange

Chicago Board of

PITTSBURGH

Trade

PROVIDENCE
ST. LOUIS

Telephone WOrth 4-4300

Teletype NY 1-750

120

BROADWAY, NEW YORK

5, N. Y.

WHEELING

YOUNGSTOWN

r

'ii

,

■

-



A

IV-

i

i

i

■

i

i',

■

i

■

■

,

I

42

The Commercial and Financial Chronicle

(2494)

Continued from page

mission.

26

Is

such

price-fixing

to

for

the best interest of the consumer?

Will

the

face

risks

of

costs

rising

and the

the

If

be

more

price

reason¬

is

,

the

high

standard

of

living.

why our natural
have increased by
than 40% since World War

at

Hie

reason

reserves

Thursday, December 16, 1954

Danger of Socialization

To subject our

producing indus¬
public utility regulations
price control is in the end to

tries to
and

socialize them.
sult

in

This

can

only

re¬

slowing down production.

,

These questions naturally raise
parallel questions as to how the
producers of other commodities

going to the American

realize that gas is not a

and develop¬
ment of new reserves. The impact
of inflation on costs of labor and
materials, common to all industry,
is only part of the problem.
On
top of that aspect, the gas pro¬
ducer's costs are being increased

our

is

lower, for more
how long will it be so?
Will this If in response to the tremendous
procedure give the consumer the growth in demand.
supply he needs?
"
t

Chart I

modities regulated as public utili¬
ties?
Are their prices controlled

the

most notice¬

in exploration

able

price

bjy-product prices.
Today with
profoundly increased demand
for gas, the producer has come to

involved.

The rise in costs is

operations sold principally

gas

the

able?

Federal Price-Fixing Threatens
America's Gas Sui
oil

It

...

that

and

uct

oil

its

fair

it

must

share

by-prod¬

bear
the

of

with

cost

treated

are

these

in

this

producers

consumer

Are

respect.

other

of

com¬

of

or
fixed by public authority?
If
development, and they are not, why not? How does
Operations
for
oil the free competitive system work
will not bring forth the supplies
out
in
the
case
of
these other
of
gas
required.
In recognition commodities?
greatly by special conditions in
What
determines
of these problems of costs in the
the industry.
the producer's price of oil, coal,
In the search for
oil and gas, an increasing amount replacement and development of solid minerals,
lumber, livestock,
of
exploratory effort, a larger reserves, the producer has realized manufactured goods?
Does
the
proportion of dry holes, the ne¬ the necessity for higher returns operation of the forces of supply
cessity of drilling a greater num¬ than enjoyed under old sales con¬ and demand with prices deter¬

ber

of

exploration,
production.

tracts.

deeper, more expensive
the discovery of

wells,

and

smaller

and

mined

Competition Protects Natural

by

these

competitive

in

forces

market

free

a

bring

forth

the supplies needed to meet de¬
fields on the
Gas Consumer
mand?
the forces
If the gas producing industry is
Natural gas sold by the pro¬
operating to make unit* costs of
left free to compete for fuel busi¬ ducer
to
replacement rise rapidly and be
interstate transmission
ness
at prices
made in arm's lines and in turn to distributors
far greater than the amounts re¬
length negotiation in a free mar¬ is not the only
covered from depreciation on the
commodity sold
ket in competition with oil and to
production developed in periods
public utilities for use in the
of lower costs and greater success. coal and fully responsive to sup¬ performance of their service to
ply and demand forces, its ob¬ the public.
The industry's experience in ex¬
Producers ,of many
ploration indicates a steady rise jective would be to meet the de¬ commodities, raw materials, and
in
the proportion of dry
holes mand at prices which fully pro¬ supplies sell
to
such
utilities.
average

poorer

among

are

than four times

drilled
war.

as

much

as

natural

gas

of

the face of this
challenge
objective, the decision in the
Phillips case raises the question

to whether the gas industry's
objective of meeting the customer
demand for gas at reasonable
prices can be best achieved if
as

those

as

natural

period before the
many

long

lated

producers

gas

as

though

they

lic utilities with their

lines,

joint product of

a

What

In

immediately prior to the

In the prewar

consumer.

and

(Chart II)

construction

the

tect

being drilled in the effort to ex¬
pand reserves of oil and gas.
Humble's own experience is evi¬
dence of the rising costs of drill¬
ing. The average well completed
in the past three years cost more

are

were

regu¬

pub¬

selling price

fixed by the Federal Power Com-

is

done

about

these

.

.

*

and supplies?
For ex¬
what about the coal, oil,
gas sold
by the producer to

or

electric power companies for fuel
the generation of electric en¬

ergy?

Or about

coal

supplied

oil sold
about

more

than

Industry's Experience indicates
40
_

rising proportion of dry holes

prewar

100
30

75

about

WSMl
20
50

coal, fuel oil, and diesel

to

railroads for fuel?

gasoline to air lines?

Or

25

What

crossties, and rails to

cars,

1936- 40

1941-45

1946 - 50

1 951-53

1936 -40

1 941-45

1946

50

-

their

restricted,

or are they given the
of condemnation? Specifi¬
cally, - is there any limit placed
on
the prices which
any of the
producers of any of these com¬

power

supplies,

materials

or

may

receive from the public utili¬
involved?

served

by

latory

Is

these

Corporation

body

The

answer

producers

YORK

ties

BOSTON

CHICAGO
MEMBERS

the

fix

to all these

is

parallel
that
the

these

all

commodi¬

and

vate

supplies operate as pri¬
enterprises in the American

free competitive system.

Exchange (Associate)

Exchange

Midwest Stock Exchange

ernment

chises.

It

does

not

of

enforced

to

established
the

mand

forces
in

guarantee

that

a

forces

will

by the interplay
supply and de¬

free

be

determine

the

adequate

to

price

attract

enough producers and producer
investments and activity into the
business to bring forth the
pro^
duction required
to supply
the
demand.

on

of

free

Their prices

market
where
there is active competition
among
the sellers and
among the buyers.

These

Interesting potentials

their

On
the
contrary,
anti-trust laws have been enacted

are

Common Stock

fran¬

no

restrict

competition.
and

RAILROAD COMPANY

The gov¬

grants them

and fair competition.

BALTIMORE & OHIO

utilities

public regu¬
the producer's
V
a

broadly,
of

consumer

public

price?

questions,

Experience

shows

that

such

competitively determined
price brings forth the supplies re¬
quired, and that if the price be¬

request

comes

too

high at

time,

any

the

supply outruns demand, thus cor¬
recting the prices downward.
In

Vilas &. Hickey
Members New York Stock

Exchange

-

Members American Stock
Exchange

Street, New York 5, N. Y.

Telephone:




The overage well costs

four times

Teletype:
"

NY 1-911

1953

PER CENT OF DRY HOLES DRILLED

$000)

-

to

the gas distributor for use in the
production of manufactured gas?
Or about

in position to have

HAnover 2-7900

Refining Co.

in

ties

49 Wall

125

&

1952

II

AVERAGE COST OF WELLS DRILLED

(By Humble Oil

-

modities

modities,

UNLISTED TRADING DEPARTMENT

Circular C-16

Chart

1951 .J

producers given franchises, or do
they have the number of their

CORPORATE AND MUNICIPAL SECURITIES

Boston Stock

1950

competitors entering the business

*

American Stock

1949

ample,

distributing companies? Are

NEW

1948

equipment to gas transmission and

and Q)ea/di&.

Lee Higginson

1947

1946

com¬

railroads; planes to air lines; gene r a t o r
s,
poles and wire, and
equipment to electric power com¬
panies; line pipe and compressor

fy/ndetWti/eM, Q&i&foiSuloW

1945

America, it is generally

GARVIN, B ANTEL &
MEMBERS NEW YORK

STOCK

EXCHANGE

MEMBERS

STOCK

EXCHANGE

AMERICAN

un¬

derstood —^ yes,
firmly established
—that competitive

COLLATERAL

LOANS

enterprise

stimulates
this

production.

account

that

-

we

It

•

is

on

j lead/ the

world in creativeness and in.
pro¬
duction of goods and services in
all

lines—automobiles, household

conveniences, and what
produce what the
and demands.

not.

consumer

Here is the

We

needs
reason

SERVICING BANKS, BROKERS & DEALERS

120

BROADWAY

NEW YORK 5 /

:

5
~

'

•

1951-53

Number 5386

Volume 180

It will not

result

in the

...

supplies

only to look
at the experience of Great Britain
in recent years to realize the con¬
sequences of such a course.
And
if this is not enough, look about
at homeland recall the ills of price
We have

required.

'Controls in World War II and the
Korean

War,

and

how in¬

recall

responded in production
and growth following their with¬
drawal. *
'
\

dustry

f

Now, is there

tween the

a

difference be¬

producer of natural gas

the producer

and

of all other

commodities ' and

-

alone

desirable

it

to "depart

and

from

accepted

different

ducers

from

among

what

it

gas

is.

pro¬

among

by the same forces? Does
need protection

gas

producers, and active competition
among the producers of gas, coal,
oil, and other fuels protect the
gas consumer against an unduly
high producers' price? Will fixing
the natural gas producers' price at

of

the

matter of
natural

40,000

NATURAL GAS IS SUPPLYING AN INCREASING SHARE OF THE

MINERAL ENERGY CONSUMED IN THE U.S.

com¬

deal

cannot

directly with con¬
to intermediary

sells

but

sumers

transmission

lines

or

to

distribu¬

in

confronted with the

'

;

tions.
•

and

oil

are

no

From

of

the

c

Gas.

1920

are

for

demand

is easily

gas

The retail

ural

today

gas

higher than it

is

Chart IV
20

(Million Customer»t>

Industrial ond Commercial Customers

15

the price of coal and heating oil
have more than
doubled.
Not¬

!•

Residential Customers

-

withstanding its cleanliness,

venience, and greater
gas is
being sold to
cluding

in

some

con¬

efficiency,
consumers

retail in many large

at

10

cities, in¬

the

coal

pro¬

ducing. states,~ at a lower price
per million BTU's than heating
oil

it

bituminous

or

sold

was

producer

of

coal.

an

is about

tail price td

below

under

the

fairly

the costs
duction
which
and

accounting
and pro¬

oil

jointly

are

divides

or

of exploration

produced.

These

re¬

con¬

price,
studies,
production

allocates

between

and

UNDERWRITERS—DISTRIBUTORS—DEALERS

gas,

explored

for

Industrial," Public Utility

(Chart VI)

facts

show

fulfillment

a

.

FOUNDED
\

'

'

'

'

•

'' '

Members New York and American Stock
Members Boston and Midwest Stock

Exchanges

Exchanges

of the gas produc¬
ing industry to meet demand at
reasonable prices.
But they pose
a problem of supply as
previously

shown,

*

because
consumption is

increase

in

increase

the

STREET, NEW YORK 5, N. Y.

reserves.

competition in
required

are

New York 17, N. Y.

•creasing

Chicago

Philadelphia

San Francisco

will

equipment.

in

and

heavy
wells, and

leases,

15

in-

require

exploration

investments

Boston

to

produced

gas

Members New York

free market

a

bring forth the
needed. To replace the

supplies

Uptown Office: 10 East 45th Street,

Hemphill, Noyes C& Co.

prices responsive to
changes in supply and demand un¬
der

•

the

Flexible

17 WALL

Municipal

SECURITIES

in

out-running

proved

and

Railroad

-

of the purpose

1865'

1953

1950

1938

field

of

cost

1935

our

accurate

any

which

of the

average

convinced from

am

is

10%

the residential

The

sumer.

I
'

5^5

In

1953,
the field by the
average price

in

at

the field

i

1947

NATURAL GAS CUSTOMERS OF UTILITIES HAVE ALMOST DOUBLED SINCE

un¬

price of nat¬

equal to about one-fourth the
the natural: gas industry.
some level below^ what the com¬
price of fuel oil at Gulf Coast
This can be better understood
petitive price would be affect his
refineries
and
about
two-fifths
supply differently from what the; by 'an examination of results to
the price of bituminous coal at
same
procedure with the prices date under competition without
the mine. (Chart V)
of other commodities in the hands price-fixing and the results that
The producer's price for gas in

i;

1953

in

only slightly
in 1939, while

was

1950

1948

1946

1930

.

the changes

derstood.

this

objective

'%

;

The Retail Price Level of

in

seems

achievement

.10,000

considered, this growth

situa¬

of

64 «

;ai.7t

in

million

20

nearly

y

prices

clear that the
regulation of gas production as
though it were a public utility
and the fixing of the producers'
price by the Federal Power Com¬
mission, if pursued, will prevent
it

to

•

■

.

oil and

less ef¬

consideration

the

20,000

*:.

The number of
customers of utilities

coal, and

•

matter,

.

When the relative prices of gas,

>k

custom

account of these

'

was

Natural

However,
competition among natural gas
producers and competition of gas
on

I

*

long-term contracts.

coal

30,000

supply.

gas

1945

1953.

tors, who are public utilities; (2)
is

.

increased from about nine million

natural

producer.
It must be rec¬
ognized, of course, that the gas
producer has two situations pe¬
culiar to him:*,(l) in general, he

with

among

forces

are

gas

fective

active competition

highly

as a

only 4.4%. The
Charts [Nos. Ill and IV] on energy
consumption will disclose how the
industry "has performed "in the

as

same

operating

the

treatment

-

price that he does not need
against the price of all other pro¬
not

competition

consumption

issues,

freely competitive

principles

against the natural gas producer's

ducers' commodities he uses? Will

all

For

ferent

of

consumer

free

the same. Pro¬
duction of natural gas is no ex¬
ception. I find no reason for dif¬

ties?

the

the

doubt, be

no

industries,
and

fundamental

raise

which

he

of all other commodi¬
Will
not
price be deter¬

Up to this time, the gas produc¬
ing industry has operated under

less

or

Trilli ot)"l
BTU

petitive business.
It has met a
effective in the case of natural rapidly growing demand. In 1945,
.it supplied 4,100 trillion BTU's of
gas
than of other commodities?
or
13.5% ' of the mineral
If
not, is it less desirable that gas,
these forces be operative and ef¬
energy consumed in the country;
in 1953, it supplied 8,700 trillion
fective as to gas than as to other
commodities?
\
BTU's, or 23.7%. In 1920, its part
Your answer to these questions,, of the country's mineral energy

producers
mined

more

The returns must be

ALBANY

BOSTON

BEVERLY HILLS

INDIANAPOLIS

Stock Exchange

BROAD STREET, NEW

LOS ANGELES

TRENTON

YORK 5, N. Y.
CHICAGO

PHILADELPHIA

WASHINGTON, D.C.

TUCSON

HARRISBURG

PITTSBURGH

READING

YORK

attractive to induce the producer
to

take

the

make the

It

long

terest
are

be

involved

and

recognized

that

the consumer's

run

in

in-'

and the

producer's interest
They must both live.

mutual.

The

risks

investments required.

must

the

consumer

must

pay

ment

to

plies.

bring forth needed

prices.

consumer

-Members New York Stock Exchange

supplies from other p r o d u c ers
through the intermediate trans¬
mission lines and distributors, or




■■

will

turn

sources

ances

to

of fuel.

his

secure

coal

Railroad Securities

Otherwise, the

Wertheim & Co.

will

Industrial, Public Utility and

sup¬

The producer must sell at

reasonable

Underwriters and Distributors

price

a

that will attract sufficient invest¬
t

oil

or

or

gas

over

Bank and Insurance

Stocks

other

Competition bal¬

these interests

Municipal Bonds

the

Unlisted Securities

long

pull.
Look

NEW YORK

43

Chart HI

producer or manufacturer may be expected in the light of
affect their supply?
Will .logic and experience under public
low price tend to bring ■utility regulation and price-fixing.

gas? Are the
interaction of supply and demand
on
price, or the effect of price
on
supply and demand, any less
forth

will

textiles, household goods? Is the
operative effect of free competi¬
tion

a

mine.

our estab¬
competitive
enterprise system? Wherein does
he differ basically from the pro¬
ducer of coal, or oil, or lumber,
or
solid
minerals,, or cattle, or
sheep, or the other products:-of
the soil, or the products of the
factory — machinery, equipment,

lished

such

that

this

in

the

would

case

supplies

make§

of

(2495)

Financial Chronicle

The Commercial and

now

at

operations under

regulated prices. Is the Federal
Power Commission, or any reg¬
ulatory agency, wise enough to
perform this balancing of inter¬
ests

as

effectively

as

can

all the

buyers and sellers in the inter¬
play of the forces of supply and
demand in the free market?
No,
it is not that wise. The facts are
too difficult to ascertain

involved;

and

Continued

no

on

MEMBERS: NEW YORK
AMERICAN

princi-

jpage

44

STOCK EXCHANGE

STOCK EXCHANGE

120 BROADWAY,

NEW YORK 5, N. Y.

Bell Teletype NY 1-124849

Telephone BArclny 7-3500

44 WHITNEY

DU PONT BUILDING

WILMINGTON, DEL.

•

,

with the

great number of people and trans¬
actions

Laird, Bissell & Meeds

AVE.

NEW HAVEN, CONN.

LINCOLN LIBERTY BUILDING

BASEL,

PHILADELPHIA, PA.

SWITZERLAND

44

(2496)

The Commercial and Financial Chronicle

Continued

courages

43

page

intrastate sales and dis¬

fixing?

courages

from

interstate sales.

beginning

where

Federal Price-Fixing Threatens
America's Gas Snpply
pies
a

yardsticks

or

are

available

the

as

sound basis for

fixing fair prices
parties, particularly in view
of the active competition among
gas, oil and coal for the energy
fuel

of gas

tributor

is

impossible to have

flex¬

a

tive

and

gas
producers'
by regulation.

The

Presumed
Price

to

fix

Purpose

of gas is to establish it somewhere

to

below

the

by competition.

What

established

gas

of

customers

marketed

riod

shows

low prices.

of

such

low

effect

of

desiring

gas,

household

the

of

or

He

number

volume

volumes

tenths

that the

so

In

mind

and

fair return

a

this

of

of

may

its invest¬

keep

transmission

costs

the

utility

on

make

average

up

and

nine-

consumer

demand
for
gas.
By
token, it would tend to lower the

price and only one-tenth of such
price derives from the producer's

demand

price.

low

for oil and coal.

price

centive

would

But the

lessen

the

the

In

in¬

to

the

end,

explore for and de¬
velop gas.
It would discourage
discovery and development.
It

supply and

would

transmission

wells
the

cut

down

drilled.

rate

of

the

This

number

would

discovery of

Some

of

lower

gas

demand

increasing

an

part

of

effect

and

on

distribu¬

important effect has already
felt.

been

and

Such

price-fixing

en-

all

sion

to

of

regulation of
on the trans¬
be briefly sum¬

trade

new

interstate
unit

it

the

expan¬

and

areas

in¬

transmission

business;
factor, increases

costs,

and

reduces

revenue;

will

ultimately force applica¬
tions for higher rates to offset loss
of revenue and higher unit costs.
The

is

effect

much

the

the

on

distributor

His

same.

problems

increased manyfold, however,

are

because

of

tomers

the

millions

involved.

tomer

of

cus¬

faces

He

cus¬

dissatisfaction, public re¬
difficulties, and regula¬

lations

tory and rate problems. And in
the end, he faces serious financial

matter

is

fundamentally

a

future.

the

That

should

producer's price.

only

legislation.
The
legislation required is

in

understood

1938,
that

Congress

the

make it

so

that

as

the

to

Act

the

of

producer,

interstate transmission. It

gas

ex¬

production and

in

had

the right to fix
price, Congress

producer's

passed

the

(vetoed

Kerr

by

Bill

in

President

expressly denying such right. This
its original intent and

reaffirmed

Likewise, from the date

purpose.

of

enactment

all

times

Court

prior

decision

the

case,

the

of

to

Power

the

as

at

Supreme
Phillips

the

Federal

mission,

law, and
the

in

Com-

administrative

agency under the Act, consistently
held that it was not authorized

by

the

field

Statute

prices

producer.

of

Only

Panhandle

to

regulate

the

independent

recently,

Eastern

the

in

the

it

case,

has

in
of

fixing

the

commodity

produced

gas

by

an

in¬

not

and

the

to

or

sale

the producer

by

of

such

gatherer

or

within

price

Also,

so

or

field

be

1950

Truman)

Gas

doubly clear

the vicinity of the
produced, or to the
received from such sale.

gathering. And when some were
insisting that the Federal Power
Commission

Natural

does

production

producing and gathering gas dif¬
fer from the
utility function of
pressly exempted

the

apply to
gathering of
natural gas, or to the treating or
processing prior to sale by the

well

functions

of

Act

Act

the

for

amendment

In the enactment of the Natural

to remedy
Congress to

way

is

corrective

corrective

legis¬

sure

situation

pass

where

that

freed

all

from

Act

should

the

interstate

producers

may

price-fixing,

be

amended

the
that

so

transmission

lines

subject to the Act will be allowed
rates

which

reflect

the fair

com¬

modity value in the field of nat¬
ural

produced

gas

by

them

This legislation is in the interest
of the consumer,

the producer, the
lines, the distribu¬

transmission

tor, those who provide equipment
supplies to these, and those

and

who finance

them.

It will

keting of
demand

tablished
free

to

gas

at

meet

consumer

reasonable

prices es¬
competition in the

by

market.

It

is

in

the

public

interest, and merits full support.

Chart

V

be

RETAIL GAS PRICES HAVE REMANED
ALMOST THE SAME
WHILE COAL AND HEATING OIL
PRICES HAVE DOUBLED

the

It

should

interest

and

com¬

attention

the suppliers

are

pipe, compressors, and
equipment for
these
well

as

as

and

equipment

gas

household

con¬

Those investment bankers
finance any of these indus¬

so
directly affected in the
discussed here, or who advise

in

doubt

in

financial matters, are no
keenly interested and some¬

experience

business,

it

,

,,

.

proves

anything
that

proves

the

best way

ply

to get an adequate sup¬
of commodities is to guaran¬

tee

a

free

That has
of

competitive

been

production

shown

here

in

the businesses of

1953« Amer icon Gas Association

economy.
all lines

and

abroad.

Natural gas production is no
mys¬
tery business operating by magic.
It obeys the same economic laws
as

•1935* 3?* 100
Source: Goa Focts

producing all

other commodities.

Chart VI
THE PRODUCER RECEIVED ONLY A
SMALL PART OF THE PRICE PAID BY
THE

RESIDENTIAL CONSUMER IN 1953

Averoge

price

received

per

MCF

by Producer

ot

Averoge

price per MCF paid by
Residential Consume*

We||

~7~

■

\

Furthermore, if the natural gas
producer becomes subject to reg¬
ulation as though he were a

X

producer

of

minerals,

or

the

soil,

or

oil,

or

coal,

or

TRANSMISSION AND
DISTRIBUTION SERVICE:

public utility, and if he must sell
his product at a
price fixed by
a Federal
regulatory agency, what

:

77.3 <t

U.S 4

solid

cattle, or products of
steel, or automobiles,

manufactured supplies, or other
commodities can feel that he will

or

:89.4 %:

100%

long be safe from similar price-

INVESTMENT SECURITIES

Underwriters

MEMBERS NEW

Public

1919

YORE STOCK

LIBERTY BANK BUILDING
Branches

•

EXCHANGE

Rialto Bldg., Lockport, N. Y.




Utility

Industrial

Railroad

Municipal

BUFFALO 2, N. Y.
New York

SCHOELLKOPF, BUTTON

City Wires
63

70 Niagara St., Buffalo
2, N. Y.

Distributors

and

Investment Securities

DOOLITTLE & CO.
Established

Direct

private wires to

en¬

exploration for natural
gas and the production and mar¬
courage

sumers.

If

of

or

their affiliates.

distributing branches

business.
the

what concerned.

UNDERWRITERS and DISTRIBUTORS

the

in

securing corrective

the

The

,

line

tries

PHILADELPHIA

fix

to

lation.

Gas

operation under the Act, it is
to enpower the Commission

big problem of the trans¬

the

them

HARTFORD

in

basically and
question of the

the

way

CHICAGO

and

years

held

bringing about
understanding of the situation

an

Now

16

principal concern of the consum¬
ing public. It is already the press¬
ing concern of the producer. It

who

BOSTON

lead

securing an adequate
dependable supply of gas for

for industrial

NEW YORK

the

line.

time, after

of

means

other

;

take

transmission

first

the

of

nec¬

are

value

and

branches

Cbrwucan ScewullcA CaAAMVutfiart

therefore

is

to prevent the first step
becoming effective.
Those
directly affected must

who

pripes

The Basic Question
This

essary

from

It

Thursday, December 16, 1954

terstate
for

producers of other

cover

commodities.

recognized competitive field

problems.

of

SECURITIES

in

users

the

of all those who

INVESTMENT

in¬

price

it lowers the load

mand

of

to

dustries, and kills the growth of

of

Underwriters and Distributors

large

household

mission lines may
marized:
It prevents

is

CnfawiiM

A

the

order

All in all, the prob¬

effect

mission and

■ffnuticoA Siiwitilli

fuel.

as

to

move

in

the producer's

net

the

lines

will

This first step is but the
of a series of similar

steps to

inevitable

states

large city.

able

a

tors of fixing the producer's price
been mentioned; but not all.
One

With

result to
shortage of
increase in rates.
is

has

re¬

serves.
t

the

consumer

gas

than

gas

off¬

increased

connection,

that

distribution

of

distribu¬

increase in rates to

an

lower

ment.

and the
the same

and

smaller

as

the

and

their unit costs increase. This

forces

in

Furthermore,

industries

secure

is

It

dustrial plant may consume more
a

interest

defeated.

diminish,
lines

handle

tors

gas,

receive

customers

installations,

supplies

set

So it is clear that

number

is

oil

to

con¬

price-fixing.

southwestern

install

to

shift

primary

frustration.

unit costs

demand

on

price would tend to in¬

the

crease

volume

and

in the postwar pe¬

the

the

consumer

transmission

the ef¬

are

fects of such regulated low price?
The sharp increase in the num¬
ber

them

and

to

dropped.

that

customers

trial

the purpose of a
producer's price
be

Thus

the

certain

is deprived of a dependable sup¬
ply; and the household or indus¬
consumer who has been hop¬
ing, by extensions of service, to
become a gas consumer is doomed

of

the

what would

prorate his de¬

forcing

facilities

coal.
of

Regulation

Presumably
plan

entirely,
new

prices

off

by

conservation

under

been

to

cut

to

or

ible and responsive fuels economy
with oil and coal freely competi¬

fixed

to

for

Many
negotiation at the
time of the Phillips decision have
trades

customers,
causing
great discomfort to homeowners,

market.

It

either

liveries

obligated

forced

submit

discovery decreasing,
a
definite shortage
occurs. This forces the dis¬
time

a

already

or

purposes or because of drainage,
few producers are willing to be
singled out for regulation as
though they were utilities and to

of

rate

after

to all

tract

Except

...

Wall Street, New York 5

Tucker, Anthony & Co.

P0MER0Y, INC.
70

BOivling Green 9-2070

Goldman, Sachs & Co.

&

Teletype NY 1-2827

Niagara Street, Buffalo 2

Washington MjO
Teletype BU 122
Private

Wire Between Offices

Number 5386

Volume 180

Continued

from

page

(2497)

The Commercial and Financial Chronicle

...

to the Virginia measure ap¬

Union, A.F.L.; S. Sloan Colt, Pres¬

R.

in the Legislation Appendix
this Report.

Bankers Trust Company,
New York City; and William A.

Doremus and

ence

28

ident,

pears
to

Developments In Municipal Field
subject

was

adopted by the Sec¬

tion of Municipal Law:

That

"RESOLVED,
bill to

model

the

execution of

the

authorize

large issues of State and Munici¬
pal Bonds, submitted by the Liai¬
son

Committee, be approved and

the

the

of

Chairman

authorized to request the
tee

State

Uniform

on

be

Section

Commit¬

Laws

and

other

and

the

contest

of

validity

the

bonds, taxes, revenues pledged for
their payment or other features.
Upon the filing of the petition
public body may request a court

a

enjoining the institution of

order

other suit involving the valid¬

any

ity of the bonds, taxes, revenues
or the
validity of the act creating
them. The court may also order a
joint hearing or trial before it of

organizations to bring it to
such issues in any actions or pro¬
the attention of the legislatures
ceedings
then pending in any
of the several States."
Such

bill

a

enacted

was

this

in Louisiana. That measure,
however,
specified a
minimum

year

of

amount

$5,000,000

$10,000,000.

'm

'

Hollywood meeting

at

a year ago

our

and

May meeting was a
proposal intended to meet situa¬
tions which for a long time have

again at

causing, in an
increasing
way, serious concern among those
interested in municipal financing.
pointed out in our Report on

the subject in

May marked diffi¬
through such
suits. The mere filing of a suit,
regardless of its merits, question¬
ing
the validity of
the
bonds
culties have resulted

which
issue

such ac¬
tions or proceedings.. It is also
intended to prevent the institution
of

suits after the com¬

new

any

party

a

The Court could declare
in contempt who may

start

proceedings

court

in

in

other

any

the state while the vali¬

our

been

As

the consolidation of any

ceedings.

discussed

item

the state and may order

mencement of the validation pro¬

Suits

Nuisance

Another

"

-

of

instead

court of

public body proposed

a

sufficient

is

to

to

delay and
possibly thwart the efforts of the

dation is
cree

pending and after a de¬
validating the bonds becomes

final.

,

The

-

resolution

the

the

total

and

this

"RESOLVED, That

,

check

The

ment

It

would,

man

to

Bar As¬

upon

enact¬

by the states, authorize the

issuer

of

bonds

propriate court

to
a

file

in

issue.

person

interested would

tled

appear

ap¬

Any

be enti¬

in the proceedings

this

writing.

Develop¬

this program will prob¬

in

ably be such, however,
mit

billion

informative

subject in
Spring.

their subdivisions.

Despite the weight of new issues

period prices have
shown very small fluctuation ex¬
cept for one period during the
this

spring and summer of last year.
During the past two years the
yields as shown by the "Bond
Buyer's" Market Index for twenty
municipalities reflected the fol¬

the

lowing

as

of the

of

bill

1953

Municipal

to

•! ;•'

'

1

form

of

.

municipal

a

model

bill

27

31

committee

2.38

:;

Bonds & Stocks
.•

v

'■

" *■

'4'

; *

D. Howard Brown

2.81

Frank MacKain

June

25

July

30

2.90

30

is

Ingalls & Snyder

2.86

;

2.69

26

Dec.

'

;•

2.92

29

Nov.

I

,

...

3.09

_

Aug. 27___
Sept. 24
Oct.

t

Over-the-Counter Trading Dept.

2.68

,

'

Members
Mevibers

2.60

__

2.58

...

American

Bell System Teletype NY 1-1459

25

2.39

Mar.

25

Exchange

2.46

Feb.

Exchange

NEW YORK 5, N. Y.

COrtlandt 7-6800

28

Stock
Stock

York

New

100 BROADWAY

1954—

2.43

_

_

April 29

2.49

____

2.51

May

27

June

24

July

29

Aug.

26

2.41
__

2.26

_

2.26

_

Sept. 30

2.35
2.33

28

Highways

Contributing in good part to the
volume of tax free financing are
issues

roads and others.

Public

of

construction
United

this

has

l. f. ROTHSCHILD & CO.

However,
more
recently

estimate

to

1089

established

<

members

$101

over

the

Under

billion.

in
the
$45 bil¬

billion.

Bureau

raised

highway

program

$55

the Bu¬

estimated

needed

States at between

and

that

understand

Roads

the

of

We

of this year

June

cost

lion

Investment securities

put out for highways—toll

that in

the

hew york stock

heading,

"Highway Problems in the United
States," the U. S. Bureau of Pub¬

120
Telephone:

Mileage of all public Streets and

2-4600

i

exchange

5. N. Y.

Bell Teletype

*

ny t-47t

MONTREAL

ROCHESTER

CHICAGO

BOSTON

"

leading exchanges

BROADWAY, NEW YORK

REctor

/''

,

american stock

exchange

and other

lic Roads issued the following:

Telephone DIgby 4*4100

page

Railroad, Public Utility & Industrial

28

reau

Broadway, New York 6, N» Y.

on

Dealers and Brokers in

May

year,

BONDS

Continued

2.65

and -the Governor
signed, a measure modeled very
largely on the above bill. Refer¬

MUNICIPAL

lished in the "Bond Buyer" or any

appointed by the

26

The Virginia Legislature adopt¬

Exchange

is not necessary to submit an ad¬
vertisement which has been pub¬

effective ad¬

April 30

Mar.

Smith.

Members American Stock Exchange

qualify for entry it

2.63

tained, however, upon request to
Municipal Secretary, Dudley

Members New York Stock

Chicago.;

pany,

In order to

"Bond Buyer" consisting of Robert

2.46

our

Bacon, Stevenson & Co*

Toledo.

pany,
v

vertising methods.
A

•

1953—The Northern Trust Com-

Its purpose is to arouse

interest and develop

Chicago.

1952—Braun, Bosworth & Com¬

2.37

___

26

Jan.

this

pany,
-

-'s.

23

lengthy to include in this
Report. Copies of it may be ob¬

ed

advertis¬

program oJf,f our , Education
Committee relpted to advertising
securities.

Co., New *

Haupt &

York.

1951—The Northern Trust Com¬

v

2.38%

Feb.

be authorized

the

1950—Ira

each

and

ing contest... As stated in our
previous reports, this contest is
in active support of that part of

'

Jan.

bring it to the attention of the

The

Previous winners were:

Securities

1950,

in

since, the "Bond Buyer" has

conducted

the

Chicago.—

Co.,

Editor.]

Beginning
year

Trust

Northern

and

Thursday

last

30

Dec.

the

of the Section

the

on

suitably in¬
$100 will
be made at this Convention.
[The
award for 1954 was made to the
certificate

scribed

months indicated.

1952—
Oct.

of Mu¬

the

to per¬

as

advices

Interim Report next

our

Advertising

of the investment banking
fraternity to fully meet the under¬
writing needs of our states and

Oct.

39

the presentation of a

of

ments

ity

was

As in

of this winner and

time

nicipal securities reflect the abil¬

during

the

determine a
the past,

will

1954.

announcement

and effective dis¬
this volume of mu¬

of

Buyer"

winner for

purchase

too

petition seeking

validation of the bond

to

an

of this Committee

of

William

and

have not been made public at the

present indications

year

tribution

filing of nuisance suits
submitted by the Liaison Commit¬
tee, be approved and the Chair¬

A model form of procedure was

sociation.

$8V3

about

was

Banker"

Shanks, Vice-President of the

"Bond

The findings

1953—

developed by the Municipal Law
the American

Milwaukee.

in¬

that it may exceed $10 billion.

are

public body to proceed with need¬ Municipal Finance Officers Asso¬
improvements. As we all know, ciation of the United States and
the fact that litigation is pending: Canada, the National Institute of
will frequently deter investment Municipal Law Officers, and other
interested
in
the
bankers from purchasing securi¬ organizations
subject."
ties.

of

is of

past
and

ed

Section

issued

three years, including
short-term bonds, will
approximate $25 billion. Last year
long

Nov.

Section

large volume of

bonds

Company; Upton E.

Vice-President

S.

President,
Allis-ChalManufacturing
Company,

Executive,

Account

"American

mers

Market

The amount put out during

terest.

Bar Association on

Aug. 17 by the
nicipal Law:

and

The continued

municipal

adopted at the Annual Meeting of
the American

Liptrott,

Roberts,
Volume

in each

.

following

McKee,

45

Highways:
1941

3,309,000
3,348,000

Annual Vehicle-Miles of Travel:
1941

-

1954 (est.)
1965

Motor

333,396,000,000
557,000,000,000

Vehicle

58,129,000
81,000,000

(est.)
1965 (est.)

York

Stock

Exchange

r

Preliminary Estimate of the To¬
Construction
needs
for
all

streets and

Members New

-

Warrants

REORGANIZATION

34,894,134

1954

tal

Scrip

-

Registrations:

1941

Dominick & Dominick

Rights

(est.) 814,000,000,000

SECURITIES

highways through 1964:

$101,365,000,000.
Portion of these needs expected

UNDERWRITERS AND DISTRIBUTORS OF

to

be

to

CORPORATE AND MUNICIPAL SECURITIES

met

with

available

be

funds

estimated

through

$46,800,000,000.

1964:
•

MCRohhill &

..

As you

14 Wall

Street, New York 5

know, there was recently
appointed a "President's Advisory
Committee on a National High¬
way

to

Canadian

Affiliate

Program."

that

.

Dominick (Corporation of Canarla^r

Committee




are

reported

man,

.

.

,

/

•

.

York

Chairman of the Board, Con¬
Can Company, Inc.; Ste¬

Bechtel,

Exchange

Stock

-

Exchange-

American Stock

i

*

120

BROADWAY,

NEW YORK 5 !,

REctor

2-7800

Chair¬

construction com¬
pany
executive, San
Francisco;
David Beck, President, Teamsters'
phen

*

Tel.

D. Clay,

tinental

Montreal

New
r

Those appointed

to be:

General Lucius

GQ-

MEMBERS

BRANCH OFFICES:
Buhl

Building, Detroit, Mich.

1 Press Plaza, Asbury

254 Park Avenue,

New York

Park, N. J.

46

46

The Commercial and Finan&ial Chronicle

(2498)

Continued from page

Charles F. Conners

45

Pohl &

this state that in responding

Company, Inc.

>

Cincinnati

other

It

publication.

test.

tered

entries are not limited

and

open

to all.

St.

Appended
brief

this

to

to

Report

various

Harriman

are
H.

in

the

states

New

portance and interest to the mu¬

nicipal

in

trade

both

:

categories.

Robert

Your attention is directed to these

.decisions

authorizing

■

bonds

•p:';

r

•,

.

.

.4

'

t

*

'

-

- -

Boston '..■■■'>

the Court, also several

orders issued.

The decision is too
lflpltlHo
Pnnnrf
lengthy to include in this Report.

IpDijfflir M

in

John Nuveen &

Chicago

( to their

J. M. Dain &

Minneapolis

7
y

.

vS.W.

-

FOUNDED

year

<18,

of

Appeals of

1953

—

Ken¬

Volume

'

263

' -■

about $38,500,000 of
were

sold

this

Earlier

spare.

revenue

for the toll

road

running from Louisville to Elizabethtown.

;

■

Joseph M. Luby

Barret,

Telephones—Newark-MI 3-4000—New York City BA 7-5928 Tele. NK 348

City

Frank

Deposit Insurance Corporation

L.

understand

that

holds

Court

of

construction

Act

the

9

1952

of

*:

Lucke

The Supreme Court of the State

of Louisiana

-

.

cision

Lajdlaw & Co.
D.

this

handed

year

down

which

general ob¬

and

that the order in which

enues

fiscal

manage¬

The Court also stated

ment.

gor

provided

tional

for in the constitu¬
and. the-:true

amendment

Louisiana

bonds,

has

—

notes are entitled to look to the

or

State for the
est

principal and inter¬

thereof,-'7**•***>;' 'V'';: V.
APPENDIX

2

7 ,r State Legislation

V

■

legislatures of 13 of our
states met in regular session dur¬
ing,; the
year
and
there
were
The

.

,

sessions

special
states.

in

actments

during

of

the

are

en¬

some

'Referred to below

that

period

de¬

a

to

do

are

based

For

Committee's
the legislation.
information refer-

upon

understanding
complete

the

of

—

DISTRIBUTORS

OF

Russell J. Olderman

lOlderman, Asbeck & Co.
Cleveland
WE

MAINTAIN

A

CONTINUING

INTEREST

IN

Philip J.
First

TRAFFIC

REVENUE

„7

.

77

Rhoads

National

Bank

&

Company, Oklahoma

BONDS

Russell

NEW JERSEY MUNICIPAL

.

C.

Trust

AND

City

Schuler

AUTHORITY REVENUE OBLIGATIONS

The First'Boston -Corporation

;.

Philadelphia
George B. Wendt
The

First

Chicago,

National

V—JL-

1

Cour# Decisions

,

of

Chicago

APPENDIX
*-

Bank

-

„

/•

"

stated

As

RAND
ONE

WALL

CO.

&

STREET

NEW

YORK

5,

N.

to

Y.

in

the

are

report, referin this appendix

made

certain

decisions, handed
during the year, considered

down

of
Telephone

Whitehall

4-3432

Teletype

NY

1-838

•

Boland, Saffin & Co,

court

ences

general interest to the munici¬
pal trade or of special significance
locally.
The following comments
based

are

upon

understanding
and

the

-

of

PINE

1920

ST.

TELEPHONE

NEW YORK 5, N. Y.
Bell

-

WHITEHALL 3-3414

System Teletype—NY 1-535

Committee's

the

situations

for .reference

are

Established
20

purposes

only. Counsel should be -consulted
in

each instance

for

specific -in¬

formation.
IOWA
An
to

important

decision

relating

issuers of municipal bonds and

approving

legal

handed down
in

the

Court
No.

of

Iowa

54406-99)

STATE, MUNICIPAL:

was

and

Sept. 31 this year

on

Ninth

opinions

Judicial

-

in

a

the

District

(Equity

case

Committee

on

REVENUE BONDS

the Unauthorized Practice of Law,

plaintiffs,
et

For

over

20 years our

independent financial

of governmental agencies in

financial public relations,

improvement of public credit, sound financing of
capital requirements and other problems of

public finance.
Inquiries about this individualized service

are

invited.

Court

"That

advisory service has proved its value to all types

v.

Carleton D. Beh Co.,

al., defendants.
The

to have
and

said

in

part:

-/

i

:

the
a

what

unlawful

parties are entitled
definition of what does
does

not

practice

constitute

of

the

law

by the
defendants and
provisions con¬
cerning the employment of attor¬
neys to represent the respective
parties to such contracts between

BYRNE

and

PHELPS

Incorporated44 Wall Street

defendants and the respective mu¬

WAJNWMGHT & RAMSEY INC.




Consultants

on

70 PINE STREET ' •

nicipalities."

NEW YORK 5, N. Y.

-

•

*

its conclusion that:
/

New York 5,

•*-,

The Court also said

Municipal Finance

as

a

part of

^

"It is the settled rule of law in

af¬

fecting municipal financing, con¬
sidered of general interest to the

UNDERWRITERS

Thornton, Mohr and Farish
Montgomery

BONDS

or

ligor and the holders of the bonds

Company

ORIGINATORS

that

the State is the bnly primary obli¬

Chicago
Sidney J. Mohr, Jr.

rev¬

shall be applied to the pay¬
those bonds is merely a

of

McGrew

The Northern Trust

MUNICIPAL AND REVENUE

is

ligations of the State of Louisiana,

New York
Edward

that

proper

municipal trade or of special sig¬
nificance locally.
The comments

LOUISIANA

Fitch, North & Co.

Kansas

1, New Jersey

adding thereto

We

notes, the State is the primary ob¬

principal and interest with

bonds

Foster- & Marshall ■"

Court

something to

;

-

Portland, Oreg.

1812

810 Broad Street, Newark

the

29.

the
State of
k between
and;the holders of the

-

funds other than tolls, if the tolls
should prove to be insufficient to

'

-

*

counsel.

/ agree to maintain the roads from

v.

cover

Lewis & Company
Jackson, Miss.

I

Section

(2)—holding that the High¬
Department
might legally

way

W. Wilson Lewis

NATIONAL STATE BANK

Constitution by

those in- and proper interpretation of this
itself or' provision-of Act 9 of 1952 is that

KENTUCKY

Dec.

on

7'

*;

Edward S. Lewis, Jr.

,

The

t

•; -v;

bond

decision

tucky,y in the case of Guthrie v.
Curlin, handed down a decision

V7
Company • V

William J. Lau

the

jyvjy;

:Co«.v
,

terested'to

''/V-'

.7. AT

'

«

>

-

14 other conclusions

were

i

^

,

Chester W. Laing.

"

was

ma¬

as
amendment to Article 6 of the

an

matter of internal

r There

We,> accordingly, refer

;r;"■

White, Weld & Co.

j

a

jority of the voters of the state

ment

t

Ifitchman

Norrls
Detroit

State and Municipal Bonds

Act

by

Commission constitute

reached by

Co., Inc., Washington
T.

Rouge

Executive

The

and approved

bad faith";,

"

:

Folger, Nolan-W. B; Hibbs &
rn*

Company

Louisiana.

of

adopted

providing such disapproval
is not fraudulent, capricious or in

Singer, Deane & Scribner

Borden

an

that the bonds to be issued by the

i

★

se-

posit,
v

Arthur S. Friend

San Francisco

★

or

draw the bid, and recover its de¬

William T. King

Member Federal

and

instance, the bidder's coun¬
disapprove of the bond or se¬
curity issue, the bidder can with¬

Kenower, MacArthur & Co.

★

had

proceedings

to

as

by virtue of Act 9 of the Reg¬
Session of the 1952 Legisla¬

ture

of

created

was

Baton

This Commis¬

1

such

Evans

Pittsburgh

>

...

R. H. Moulton &

enactments—Court

and

W.

Company

Charles N. Fisher

Orleans

Houston

.

all

ana

ular

copy

Greater

Department of the State of Louisi¬

furnish

will

certified

sion

mu¬

New York

Arnold

Henry M. Beissner
Moroney, Beissner & Co.

,

of

records

is- sub¬

Clark, Dodge & Co."

,

There were several of im¬ ;

year.

full

bid

the

Commission.

sel

Carnot W.

.

Arnold & Crane

the

during

Wilson

&

corporation

bidder

the issuance of said

Emrich

Collins

its

curities, necessary to satisfactorily
evidence their legality to the bid¬
der's legal counsel, and where in

Chicago

Ripley & Co., Inc.

New York

court

S.

Julien

H. Apgar

LeRoy

decisions rendered and legislation
enacted

Milton

that

[ preliminary

DouSherty &

New York

States

references

Louis

Philadelphia

Chairman

Brewer,

Phelps, Fenn & Co.

Court Decisions and Legislation in
the

S.

the

A. Webster Dougherty

'COMMITTEE
Orlando

nicipal

William Darmstatter

Stifel, Nicolaus & Co., Inc.

to members of our Association but
are

ject to the condition that the

>

SECURITIES

MUNICIPAL

the condition

E.
,

Respectfully submitted,

many-advertisements as

As

is

municipal

Denver

especially prepared for this con-r

each contestant wishes may be en¬

Port

to a
bonds
securities for sale, any bidder
not precluded from attaching

offering

Coughlin
Coughlin and Company

be Decisions, Appendix 1, and State
Legislation, Appendix 2.

may

with

notice
or

Walter J.

Developments in Municipal Field

Thursday, December 16, 1954

...

Telephone DIgby 4-2410

N. Y.
Teletype NY 1-1474

Number 5386

Volume 180

should

ence

made

be

We

full

the

to

sulting

in

fornia Legislature was, as is usual
in even years, a special session of

through

that

tions

body.

It

confined

was

there

was

the

not

number

usual

for consideration which

have

least

at

one

Securities

&

able

Francisco,

a

bill was introduced in
Legislature to relieve

the

State

the

situation

amending the
advertise¬

by

Section to exempt

any

"concerning only securities
or guaranteed by the United
States of America, or any terri¬

insular pbssession thereof,
by the District of Columbia or

tory
or

by

or

a

County of San Mateo, which
adjoins San Francisco and which
is

one

the most

of

local

Municipal

Committee
bodies

the

and

a

'

Securities

other

informed

protested the enactment of
It

measure.

such

important and

counties in the state.

prosperous

Our

was

pointed out,

law would in effect

permit

the incurrence of non-voted debt.

taxing
district
This bill was passed by

Further it would apparently allow

therein."

or

the Legislature and signed
Governor

by the

to the adjourn¬
the Special Session.
prior

the commission of contracts with¬
out

The; State

Chamber

bids

public

which

petition

procedure

for

and

has
all

Com¬

of

The

Los;? Angeles

Chamber

of

Commerce.

Francisco

San

Commerce.

Chamber of

;

The major public utilities.

i

Counsel
banks.

,

The

•

,

.

for

the

commercial

;•.

,

Francisco

San

Council.,

Bay

of

New

York

By Act of the Virginia Legisla¬
this year there were created
turnpike authorities.
One,

ture

State

two

the

the

referred

was

for

mittee

to

interim

an

study

amended

to

enacted

Turnpike

the

western

part

other, the Richmond-Peters¬
burg Turnpike Authority for the
construction of a road just north
of Richmond to the south of Pet¬

We understand this

ersburg.
It is estimated that the
passed primarily because
Old Dominion Turnpike will cost
long drawn but validating about
$100,000,000 and the Rich¬
proceedings in certain Virginia
mond-Petersburg Turnpike about
issues.
The purpose of the Act
being to materially speed up the $57,000,000.
The Legislature also passed a
procedure in the courts in connec¬

Act
of

was

the

bill outlawing the creation of pri¬

the State.

vate

Reference, to this sub¬

suits

of

issues of

turnpike corporations such as

has been proposed

authorized

against

in Virginia and

in Texas.

municipal securities will

com¬

with

2

two

constitutional

interest

open

been

public

ments

of

adopted;

$175
Aid

a

W. H. Morton & Co.

authorizing

one

additional

and

Bonds

amend¬

business

our

Veterans'

another

authoriz¬

INCORPORATED

ing $100 million additional State
School

Aid

bonds.

Suite 3811, 20

Another proposed amendment to
the constitution which would have
authorized
Motor
and

partial

license

of

Exchange Place, New York 5, N. Y.

the

Department

Vehicle

tax

fees

of off-street

usage

for

HAnover 2-5620

construction

parking facilities

Underwriters

was

—

Dealers

defeated.
another

Still

com¬

stated
bodies

million

to

ment
voters.

amend¬

proposed

also

was

rejected

STATE AND MUNICIPAL BONDS

the
it

by

Broadly
speaking,
have provided for an

in¬

for the needy aged of the
state from the present $80 monthly

crease

maximum payment to
DEALERS

♦

United States

fixed

tionally

IN

'

that

above

government Securities

DEALERS IN

It

municipal,

under

Underwriters and Distributors

certain

that

STATE, MUNICIPAL & REVENUE BONDS

would

approved,

substantially more than
per

above and

annum

PUBLIC UTILITY BONDS

beyond that which is already paid.

authority,

housing

month.

estimated

is

if

measure,

have cost

$70 million

state,

constitu¬

a

per

amount

provisions.
the
UNDERWRITERS AND

$100

Further aid might have been given

f

We

understand

tional

revenue, railroad, industrial,

million

$70

$10 million
borne

public utility bonds

that

of

the

addi¬

INDUSTRIAL BONDS

approximately
have had to be

would

EQUIPMENT BONDS

by the counties through an

increase in their general property
taxes with the balance to be con¬

equipment trust certificates

RAILROAD BONDS

tributed by the state.

PREFERRED STOCKS

LOUISIANA

Wm. E. Pollock &

CO., inc.

At the general election

Teletype: N.Y. 1-2846

9643

SANTA

MONICA

BLVD.,

BEVERLY

HILLS,

down

voted

ana

HAnover 2-8244

Nov.

on

2, this year, the voters of Louisi¬

TWENTY PINE STREET, NEW YORK 5, N. Y.

constitutional

a

Gregory & Son

amendment, Act 758, which would
have prohibited the State Legis¬
lature from issuing bonds without

CAL.

submission

to

the

of

people

Incorporated

the

At this

New York 5

40 Wall Street

State.
NEW

YORK

Teletype NY 1-1691

Telephone DIgby 4-1180

year's session of the New

York

State

State

was

Legislature the Sav¬
ings Bank Investment Law of the
(g)

Over

a

Half Century of Efficient and Economical Service

municipal
for

"in

provide that

235—to

bonds

revenue

certain

Certain

AS TRANSFER AGENT

amended—subdivision

Section

purposes

requirements

eligible.

would

Briefly, the amendment?

YORK, N. Y. AND JERSEY CITY, N. J.

afford

economies

other

and

advantages

to

lie utility system

electric,

gas

be

outside

a

or

pub-

a

providing watery
service

New

When
an area

serve

obligated

Stock

Original

Issue

and

Transfer

Tax

Rates.

,

having

PUBLIC

the

for

bonds.

the

debt

The

service

issuing

REGISTRAR AND TRANSFER COMPANY
New York 7, N. Y.

E,t.bi,,i,.d

15 EXCHANGE PUCE

Jersey City 2, N. J.




HEnderson 4-8525'

With Retail Distribution

ice

and

able for

cover

debt serv¬

all

earnings avail¬
debt service for the year
the

ment

shall

Your

Inquiries Solicited

dur-f

ing each of the five years immediately
preceding the investment
sufficient to

•

Particularly Adapted to Service Firms

We Are

on

*

f.fox & CO.

p.

net

immediately preceding the invest¬
BEekm&n 3-2170

FOREIGN ISSUES

.

entity

shall have had net enarnings

SO CHURCH STREET

UTILITY—RAILROAD—INDUSTRIAL

entity shall be*
or covenant to

tion and maintenance sufficient to

prdvide

STOCKS

including

provide net revenues after opera¬

booklet setting forth the Current Federal

in

ALL CLASSES OF BONDS AND

the

population of not less than 100,-

legally

State

.

located

State

York

SERVICE

,

000 and the issuing

and their stockholders.

and

a

AND

sewerage

eligible.
of

utility must

underwriters, distributors, corporations

Write for our free

Offer

DEALER

duly constituted public body pay¬

•

shall

We

We

COMPREHENSIVE INVESTMENT

be

prov|des that obligations of any
able out of the,revenues of

NEW

issued

meeting

and

have

been

to meet the maximum

sufficient

annual debt

service of all obligations

a

of

point near Mount Airy, N. C.

a

At the general election held on
Nov.

would

.*

Au¬

the construction of

The

becoming Chapter 314 of the laws
of that State.

ject

further

in

across

Virginia connecting with the West
Virginia
Turnpike
at,
or
near
Bluefield, Va., across the State*

by the Virginia
Legislature and signed by
the
Governor the forepart of this year
was

Dominion

tion with contested bond issues in

Following the hearings the bill

v

road

bonds.

House Bill No. 531

Old

thority for

VIRGINIA

form

body of this Re¬

port.

,

Area

v..;

-

were

in the

territory,' county,

state,

any

municipality

ment of

Session

authorizing

such procedure for various schools

ment

issued

introduced

was

voters

the

47

report to be made next year.

'

;

this year's Special

bill

widely known municipal bond at¬
torneys,

cilities.
At

Orrick, Dahlquist, HerringSutcliffe of San

almost

v,

merce.

The

weekly with advices that certain
cities, school districts and even
counties are
contemplating such

Group

; The California Taxpayers Asso¬

capacity has
are
advised,

be found in

to

issuance of $350
Hospital Construc¬
tion bonds and $200 million Slum

I.B.A.

ciation.

,

relatively
Nevertheless,

the

authorized

..

Counsel for the California

some

as

interest.

or

Clearance

of

are

confronted

are

-

in

methods of acquisition of new fa¬

assistance of Mr. George Herrington

We

number.

in

dealers

'i We understand from the Cali¬

ton of

bonding

reached.

few

"

very

that

default

At the general election on Nov.
2

Committee's hearings at
Sacramento, representatives of the
following groups:

capital

,

,

recognized

the

been

instances hampered
the offering of governmental se¬
curities and impaired the orderly
process of marketing them.

with the

is

however, that these

ment in many

Committee that

It

for
J;

debt

principal

islative

thus

loans

of

in

been

million Mental

voice in the incurrence of

long-term
improvements.'
units

This require¬

fornia Group Municipal

no

such

less a copy of the advertisement
had been filed with the Corpora¬

use.

types

have

not

proposal there were, among
others, in attendance at the Leg¬

said
improvement
for
ranging up to 30 years.
Further, and probably of e<ven
graver significance, is, we under¬
stand, that the residents and tax¬
payers of said cities, districts, etc.,

poration Securities Law) required
that no company, broker, agent or
other person shall use any adver¬
tisement concerning any security
sold or offered for sale by it un¬

Commissioner

<

credit.

of the

periods

Formerly. Section 25602 of the
California Corporations Code (Cor¬

tion

the

to

municipal

In view of the serious character

ramifica¬

many

leasing

(Would affect our industry.

day prior to its

are

of

wark

ing, and that the obligations shall

which have been the bul¬

guards

improvements

proposed, they are all similar in
that a long-term contract is en¬
tered
into
by the public body,

budgetary problems. Accordingly,
of bills up

legislation would practically
abrogate the constitutional safe¬

endeavoring

State

It is believed that

such

lease-purchase program.

a

there

While

to

the

(2499)

for many years.

there

political

numerous

construct capital

to

Cali¬

the

of

session

1954

from

entities

CALIFORNIA

V

that

informed

are

have been recurring problems re¬

text of the measures.

The

v

The Commercial and Financial Chronicle

.

outstand¬

120

BROADWAY, NEW YORK 5, N. Y.

Telephone
REctor 2-7760

.

.

Telelypfs
NY 1-944 & NY

1-945

48

The Commercial and Financial Chronicle

(2500)

Continued

from

In Canada's

Economy

for

gains

of

the

postwar

countries in the
period have been sub¬

Canada and the U. S. were
faced with a substantial backlog

stantial.

In

the

and

end

the

At

rearmament.

war,

demand

of

demand

for

this

and

goods

tries by a

large volume of accum¬
ulated savings.
f
A

figures:

comparison of postwar growth
in Table II which gives

as

the quarterly

It will be noted

One

that, in terms of constant dollars,
production increased by 34% in
Canada and by 29% in the U. S.

production shows about the
increase

with

has

Over

and

in

of

advance

or

giving

Canada,
gate rise in

per

absorbed

good indica¬

productivity, per
Personal

person.

capita

a

1946

the

the U."S.

Canadians

were

1946 and 1939

On

the

Gains in

7% and 41% from

respectively.

In

re-

monthly report
on

you

expansion-minded

are

.

.

.

Economy
interested

and

in

139.0

9.4

143.0

101

104

4.9

59.4

16.5

9.7

144.0

103

97

5.0

58.7

...

258.0

1949

18.2

287.0

10.3

156.0

109

112

5.0

60.0

...

330.0

10.9

167.0

116

120

5.2

61.0

11.6

172.0

120

124

5.2

24.4

367.0

12.1

179.0

128

134

5.3

61.9

102%

74%

34%

29%

45%

49%

13%

12%

development

in

U.

is

S.

capital

basic

resources

that

...

Per cent change,

in
of

The Recent Quarters

for

as

Can¬

well

at

investment

program

from

rose

11% in 1946 to 15% in 1953 while
of

the

U.

12% to 13%.

S.

rose

only from

In Canada there has

steady expansion of con¬
struction activity; in the U.
S.
such activity, while continuing to
rise, has shown a reduced rate of
Another differ nee between

eco¬

treatment

of

inventories

.

.

you

will want to be

on

the mailing list for the

Canada

B of M's

monthly Business Review—an up-to-the-minute brief of Cana¬
dian

economic

II. S. offices

or

trends.

Address any

of

U. S.

Canada

u. s.

340.0

112

122

5.0

during

345.0

121

119

5.2

61.7

345.0

121

121

5.3

62.7

23.8

361.0

125

133

5.2

62.3

124

135

24.2

364.0

24.1

371.0

131

136

5.2

62.0

quarter..

24.6

370.0

129

133,

5.4

62.9

4th

quarter..

24.5

Per cent change,

Dominion Bureau of Statistics.

SOURCE:
for

ices

0

1st quarters 1954-1953

risen

have

the Korean

substantially fol¬

the

to have come to an end

seems now

and defense
outlays are no longer providing
the same expansionary force.
both

in

countries,

Finally, comparing foreign trade
figures it may be observed that
Canada's exports increased in
nearly 80% and those of
by 65% between 1946
and 1953. During the same period
Canada's
imports
increased
by
135% and those of the U. S. by
S.

U.

Regarding trade be¬

import trade origin¬
ating in the U. S. has been main¬
tained at over 70%
during the

period.
On the other
hand, the proportion of total ex¬
port trade. going into the U. S.
postwar

increased

from

38%

in

1946

to

Despite this rise in
exports there still was a substan¬

in

beginning in the. third quarter of
In

balance

in

Canada's

commodity trade with the

U. S.

both

countries
on

government

goods

and

serv-

face

the

at

premium

a

declining exports, is
the continued in¬
of capital from
abroad and it may, therefore, be
by

movement

ward

interesting to examine the factors
entering into the balance of inter¬
national payments. A summary of
U.

with

transactions

current

tries
mary

4),

(Table 3), as well as a sum¬
of capital movements (Table

annexed

are

this report.
following

to

These tables call for the
comments:

The

Balance

of

International

Despite
ance

the

deficit in the

bal¬

of

half

first

current

goods and

deficit

of

Montreal

New York

.

.

G4 Wall

.

Street

San

Francisco

...

compared with the def¬
million in the first
of 1953. There was a signifi¬
decline in both exports and
$375

of

half
cant

imports, reflecting
fluences.
tor

on

the

decline

overseas,

a

variety of in¬
fac¬

The more important

export side
in

wheat

while the slowing down

the main causes of the fall in im¬

ports.

With export prices

Street

Chicago: Special Representative's Office, 141 West Jackson Blvd.

HEAD
625 Branches Across

OFFICE: MONTREAL

Canada

Savard

•

Resources Exceed $2,500,000,000

&

Hart

inc.

Members of The Investment Dealers'

Association of Canada

230

Greensliields & Co Inc

Greenshields & Co

Underwriters and Distributors

of

Members Montreal Stock Exchange
The Toronto Stock Exchange

Canadian Security Issues

Notre Dame St. West

Canadian Stock Exchange

MONTREAL

Savard
*

*

Hart

&

"

**

*

*

■

Members:

Montreal Stock
Exchange v
Canadian Stock Exchange
1 oronto Stock

■

■

"

Exchange

Head Office: 230 Notre Dame St.

West, Montreal

Branch Offices:

Ottawa

62 William St., New York
City, HAnover 2-0575
QUEBEC

—

TROIS-RIVIERES

CHICOUTIMI




—

ST.

507 Place d'Armes, Montreal

*

—

SHERBROOKE

JOHNS, P. Q.

Quebec

Sherbrooke

has been
shipments

inventory formation is one of

nfn

333 California

a

$357

of

as

icit

our

Canada's First Bank Coast-to-Coast

the

in

resulted

1954

account

million,

of

of trade the Canadian dollar

Transactions in

(1)

services with all countries in

TO IMHHOH CAHtOIINS

Bank

the

S., the U, K. and other coun¬

Head Office in Montreal.

our

in

This

dollar.

S.

U.

of

explained

the

1953.

Payments

expenditures

the

of

terms

Canada's

ada although the rate of inven¬
tory accumulation fell off sharply

similar

remained

has

tween the two countries the share

of

deficit

no

tUnadjusted

upward again to the current level
of around 3%. This firmness, in

tial

was

60.0
-2%

This remarkable rate of increase

physical
Canada.

liquidation of inventories in Can¬

there

4.9

-2%

premium rose to 3 ZA% towards the
end of February, slipped back to
V/4% in April and then moved

in 1953.

1949

125
-7%

representing 87% in
terms
against 57% in

in the U. S.,

59%

in

121

-2%

*Seasona!iy adjusted at annual rates.

Korean conflict but
the rise was considerably higher
lowing

about 125%.

liquida¬
tion but only a falling off in the
rate
of
inventory accumulation.
Heavy building up of inventories
started
again in both countries

61.6

5.2

-

358.0

seasonality.

stantial

such

130

127

364.0

-2%

24.2

the

was no

61.0

5.0

quarter

3rd

1953—1st

value by

liquidation of inventories
place in the U. S., while in

60.0

22.9

quarter..

building
up of inventories had taken place
to fill up the pipe lines depleted
during the war. In 1949 a sub¬

considerable

U.S.

Canada

23.2

2nd

the

a

Persons

—(millions)—

100)

22.8

the 1949 and 1953 recessions. After
war

=

Canada

a

growth since 1951.

(1947-49

—(billions of $)—

as

Employed

Prod action

Market Prices

61J

-—

tlndustrial

♦Gross National Product

1953.
.

1953-46

facilities.

ing and exploiting these resources
gave an impetus to a heavy post¬
war
investment
program
which
took place in a favorable climate
of growing population and buoy¬
ant
personal income.
Allowing
for price changes, the Canadian
private investment program was
94% higher in 1953 than in 1946,
as
compared with a rise of only
48% in the U. S. As a proportion
of gross national product Canada's

As

If

9.2

259.0

:

1953

outbreak, to be
followed later in
1953
by sub¬
stantial liquidation in the U. S.

the

Canadian

233.0

15.6

...

marked difference

requirements

Growing

after

58.0

13.8

...

1948

348J)

the

and

Canada there

A

55.2

4.8

23.2

of

investment

took

4.7

...

ada is to be found in the different

in 1946 and

than

90
100

97

...

nomic trends in the U. S. and Can¬

5%

88

1952

the

a

services
was

U.S.

138.0

9.0

economy

of

a

rate

Canada

been

Canada

21.5

sector

which shows

that

U.S.

1951

One
in

(in millions)

100)

=

Canada

U. S.

Canada

211.0

12.0

...

1947

years.

of

volume

and

goods

by

higher in 1953

em¬

1953

consumption.

56% higher than in 1939.

income

to

both in the U. S.
substantial aggre¬

basis,

consumers'

growing rate of output,

increased

ployed

a

period

there has been,

Canada, the smaller rate

tion of the

the

and

employment
in the U. S. and by

by 3 2%

influ¬

payments.

output

13%

be

can

higher wage rates, lower
and increased social security

taxes

Against this substantial increase
rose

of this continent,

of

ence

49% reported for Canada and the

physical

high

a

attributed to the continued

U. S. respectively.
in

of

maintenance

precedent in the economic

no

history

same

45%

factor for Canada

aggregate of personal income de¬
spite reduced production. This
remarkable
achievement,
which

industrial

of

volume

common

the

been

prices, production increased sub¬
stantially more in Canada than
in the U. S., reflecting a greater
rise in prices in Canada than in
the U. S., where prices had ad¬
vanced more rapidly during the
The

63
37

and the U. S. in recent months has

At market

between 1946 and 1953.

of

60%

ings in mfg.
94
Consumer price index 49

1953 and the first three months of

rate

85%

income

Average hourly earn¬

figures for 1952,

the current year.

war.

U.S.

gross

Personal

1946

(1947-49

Constant Dollars

U. S.

Persons

Production

(in billions of dollars)

Canada

Employed

Industrial

Gross National Product
Market Prices

at

technical improvements in locat¬

1946 and 1953
Canada

national product,
production and employ¬
from 1946 to 1953, as well

Canada-United States Postwar Growth

1950

ada's

Rise Between

industrial
ment

terms of real income,

adjusted

e.,

is shown

figures of

both

in

for the rise in
prices, the gain has been greater
in Canada than in the U. S., as
can
be seen from the following
i.

backed in both coujar-

was

TABLE II

expenditure

was
relatively little change in
expenditure on non-durable goods,
there was a significant decline in
expenditure on durable goods
which had made the more rapid
advance throughout the postwar

need

conflict

while

services continued upwards in
both
countries and while there

on

New Growth Factors
rean

months

cent

34

page

Thursday, December 16, 1954

...

Toronto

%Vz%

Number 5388... The Commercial and Financial Chronicle

Volume 180

(2501)
\

lower and import prices about 1%
higher the terms of trade deteriorated by some 3% in the first
half of 1954 as compared with the
like period of 1953.
(2) The deficit in current transactions was partly financed by an
inflow of $140 million for direct
investment in Canada:

It is esti-

mated that 70% of this

million. Deducting retirements the chase balance of $26 million in
net inflow from this source repre- the like period of 1953. The latest
sents $148 million.
It may be reports indicate that there has
noted that this movement took been an increasing inflow for the
part in the very first months of purchase of Canadian securities
the year. During the second quar- during July and August.
The
ter, with the narrowing of the major influences in the buying
gap between Canadian and U. S., came from the increasing number
interest rates, new issues were of U. S.-owned investment com¬
balanced by retirements,
panies incorporated in Canada.
(4) In recent months there has The pattern of these companies,
been a significant inward move- which have raised some $90 mil¬
ment of funds for investment in lion of capital in the United States
outstanding Canadian securities, in the June-August period, is that
In the first half of 1954, this re- they are subject to a 15% Ca¬

capital in-

vestment

for

was

investment

in

petroleum exploration and development.
new

abroad

sold

S.

which

■

inflow of

provided by

sues

U.

f

Another

(3)
was

capital
Canadian is-

notably in the suited in a sales balance of $38
to $239. million, contrasting with a pur-

amounted

Summary of Current Transactions With the United States,
the United Kingdom, and With Other Countries

(Millions of Dollars)
All Countries

January to June-

1953

(adjusted)

Exports

Imports

account

SOURCE:

United Kingdom

1953

1954

1953

1954

502

440

324
+178
+ 3
+181

339
+101
+4

310
239

—132

—126

-381

—313

+71

291
205
+86

(net)

—243

—231

—209

—210

—37

—25

balance

—375

—357

—590

—523

+34

+61

Dominion

„

Other Countries

1954

»

1,134
1,447

trade......

on

■

1,219
1,600

(adjusted)

Balance

1953

'

1,865
1,991

Other transactions
Current

2,031
2,163

United States

1954

tax and make

distribution

shareholders,

to

the rise in the market and

to

the strength of the
lar rate.

+105

IV

Table

1953 First Half
Direct investment in

Canada,

1954 First Half

+$193,000,000

+$140,000,000
+ 38,000,000
+ 239,000,000
—
91,000,000
—
14,000,000
+ 28,000,000
+
1,000,000
—
41,000,000
+ 57,000,000

years

+$357,000,000

ment

—

+
—

Foreign securities

+

Official

+
+
+

loan

repayments
Canadian dollar holdings of foreigners
Official holdings of gold and foreign exchange
n.o.p

—

Net capital inflow financing current account deficit

International

shows

5

the

foreign

invested abroad
1945 to 1953.

porations for 1936 and 1953

capital
for

little

Dominion Bureau of Statistics.

in

non-resident

funded debt

in

contrast to

than V3 before the

over

to

more

amounted

TABLE1 V

lion.

Canadian Balance of International Indebtedness

Thus

it

is

(Billions of Dollars)

United

invest¬

period
than $30 bil¬
that

more

States

United

Other

investment

1545 1946 1947 1948 1949 1950 1951 1952 1953

Canada....

in

5.0

investment

in

Total nonresident long-term investment in Canada

Equity of nonresidents in Canadian assets abroad
dollar holdings of nonresidents

Canadian

Canadian short-term assets of IMF and

5.2

1.7

1.6
0.4

1.6

1.6

1.7

1.7

1.8

tl.9l *2.6

0.3

0.3

0.3

0.4

0.4

t0.5j

7.1
0.2
0.3

7.2
0.3
0.4

12
0.3
0.3

7.5
0.3
0.3

8.0

8.7
0.3

9.5 tl0.4
0.4 t0.4

0.6

0.4

0.3

0.5
0.3

0.3

....

Canada

52

0.4

Kingdom investment in Canada....
countries

0.3

0.3

0.3

0.3

0.3

0.3

tloi tll.4

12.3

IBRD 4.

Liabilities

5.6

5.9

0.3
0.4

6.6

7.3

8.0

8.6

11.2

7.6

7.8

8.1

8.4

8.9

9.9

0.7

0.8

0.8

0.8

0.9

1.0

1.2

1.3

1.4

Portfolio holdings of foreign securities.

0.6

0.6

0.6

0.6

0.6

t0.8

0.8

Govt, of Canada credits

0.7

1.4

Gross

B. CANADIAN

(Canadian

Oirect

Govt, of Canada

subscriptions to IMF and IBRD t
investment abroad

Govt, of Canada holdings of gold & foreign exchange
Other Canadian short-term assets abroad..........

Gross
Canadian

..

2.0
1.7
0.1

..

0.6

1.9

2.0

2.0

1.9

1.9

1.8

0.4

0.4

0.4

0.4

0.4

0.4

3.6
0.5

2.7
1.3

0.6

1.8

0.4

..

3.6
1.0

4.0
1.2

4.0
1.9

4.1
1.8

t4.4
1.8

4.4
1.8

0.1

0.1

0.1

0.3

0.4

..

..

SA

Net Indebtedness §

*Not available

separately.
Development.

4.0

4.1

4.7

~52

5S

3.9

Assets §

struction and

3.8

4.0

3.7

3.7

4.0

?6.0 ?6l ~6.6
4.6

5.7

t4.9

tRevised. ^International Monetary Fund and International Bank for Recon¬
§Exclu$ive of short-term commercial indebtedness and blocked currencies.

TNew series.

SOURCE:

themselves.

that

certain

It

The

assets.

foreign

and

holdings

important among these, since gov¬
authorities'

ernment

the percentage of U. S. ownership
increased from 22% to 24%, the

ficial holdings

total

dollars

ownership

of non-residents
declined from 38% to 32%.

lion

were

are

of gold and U. S.

increased by $76 mil¬

reflecting government action

Continued

Looking at the figures of Ca-

"The Canadian Balance of International Payments,

1953," Dominion Bureau of Statistics.

page

1952

1953 1946-53

TABLE VI
National Saving and Investment Account
1946

Personal

1947

1948

1949

988

426 1,009 1,005

411

619

788

-11

-18
-16

7

773
61

Gross

Saving
Business Saving:

Undistributed corporation profits

903

Deprec. allows, and similar business, costs
Net bad debt losses of corporations

Error

of

844

721

673

733

-19

-21

-23

-25

-25

-28

-96

101

-36

-2

33

-2

-2

-3

5

5

-2

746

440

301

136

3,964

5

1

648 1,053
-1 -52

92

63

202

Gross Domestic Investment

(Millions of Dollars)

oil

1949

1952

1953

371

506

637

742

801

781

786

443

599

818

903

1,026

1,260

1,554

1,061
1,726

New

584

1,016

1,230

1,323

1,389

1,769

1,916

1,922 11,149
4,709 25,163

New residential

1946

1947

machinery and equipment

1950

1951

foreign capital in its postwar

~1,398

2,121

2,685

2,968

3,216

3,810

4,256

construction...

42

34

31

27

44

40

40

23

281

New nonresidential construction

263

334

459

500

495

654

883

834

4,422

7

60

73

106

111

357

3,502

3,815

4,577

5,285

New residential

New

machinery and equipment
1,703

SOURCE:

Dominion

Bureau

2,489

3,175

of Statistics.

Complete facilities
for

ex¬

pansion. Indeed, Canada's reliance

investing

in Canada

foreign capital markets has de¬

membership in all leading Cana¬
Exchanges and fast, direct

Stock

private wires linking our offices from
Montreal to Victoria, we can offer you
the

advantageous markets in
buy and sell stocks and bonds.
Research and Statistical Depart¬

most

which

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with accurate

you

about

any

company

in

be interested.
Why not put our extensive facilities,
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whose securities you may

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.

40 EXCHANGE

PLACE, NEW YORK 5

Telephone WHitehall 4-8161
Canadian Affiliate

—

Member Toronto, Montreal
Stock

Exchangee

Toronto

Montreal

Winnipeg
and Canadian

Vancouver
Halifax

5,685
8,329

GOVERNMENT OUTLAYS:

de¬

attracting a greater amount of
foreign private investment than
any other country
and, at first
sight, the rise of Canada's gross
liabilities to a total of $12.3 billion
at the end of 1953 may seem dis¬
turbing. It would be wrong, how¬
ever, to assume that Canada has
become increasingly dependent on

1946-53

1948

construction...

New nonresidential construction

NON-GOVERNMENT OUTLAYS:

dian

on

-25

of Statistics.

Bureau

With

Stock orders executed

-170

2,217 3,025 3,703 3,371 3,848 4,958 4,578 4,777 30,477
Dominion

and iron ore mining
show relatively high ratios of for¬
eign capital invested.

BONDS

8,368

607

62-109

33

Total
SOURCE:

1951

645 1,390 1,406 1,499

5,396
1,118 1,276 1,437 1,636 1,910 2,128 2,336 12,744

,

Estimate.

1950

velopment

on

50

on

a

like

are

able' to
ownership
of Canadian industries, the latest moderate the fluctuations in the
figures available are for 1951 and
exchange rates by increasing or
are reproduced on Table 10 com¬
decreasing these holdings. During
paring the years 1939, 1948 and
1951. It will be seen that, while the first nine months of 1954, of¬

may

sectors

of

exchange

more

It is well known that Canada is

abroad

Canadian long-term

spending of

been financed

has

ASSETS-

Capital Invested Abroad):

investments

Total

....

capital nature
by Canadians
be stated,
however, that non-resident capital
is
concentrated
particularly
in
mining and manufacturing and

war

,ZTThTTZTZ*,«!„Y!iRn~,7cT~:^7T^

LIABILITIES-

(Foreign Capital Invested in Canada):

gold

TABLE VII

the

clear

owned

As for the

war.

than 85% of Canada's total post¬
A. CANADIAN

(Ta¬

the

increased by a
$4 billion, total capital

expenditures

of $6.6 billion at the end -of
1953, about $4 billion or more than
60% represented government-

proportion of foreign

Canada

over

tal

bles 8 and 9). In 1953, non-resi¬
dents owned less than 15% of this

Residual

figures with Canada's national
saving and gross domestic invest¬
ment during the same period (Ta¬
bles 6 and 7).
It will be noted
while

nadian capital invested abroad, it
will be observed that out of a to¬

this is

of Canadian governments and cor¬

It is interesting to compare these

that

and

war

.

capital

26,000,000
192,000,000
116,000,000
3,000,000
24,000,000
65,000,000
107,000,000
67,000,000

+$375,000,000

issues

Retirements

SOURCE:

Canadian dol¬

invested in Canada and Canadian

securities:

Trade in outstanding
New issues

strikingly in the interna¬

tional distribution of funded debt

Indebtedness

,

Summary of Capital Movements

Capital movements,

to

Bureau of Statistics.

TABLE

since

shown

22
Adjustment on grain transactions.
4
Inventory valuation adjustment....
Government Surplus (+) or Deficit(—).....—133

nadian stocks and this has added

Canada's

Canadian

no

but

plough back earnings. Receiving
no dividends, U. S.. investors pay
no tax on earnings and are liable
eventually only to a capital gains
tax when they sell their shares.
The operation of these investment
companies has been directed to¬
wards a limited number of Ca¬

III

TABLE

nadian income

clined

49

•

Manitoba

5,677 30,223

50

(2502)

The Commercial and Financial Chronicle

Continued

from

$847

were

49

page

and $1.1

first

New Growth Factors

Canadian

firmed
of

Canada's

the world's

The death rate
low

of

8.6

comparing

statistics

position

125,500 in the thirties, 204,000 in
the forties and 278,00 since 1950.

at

was

with

In

9.6

tality rate fell to 35

one

all time

the

U.

Infant

the

and

S.

the

war

goverment set

as

a

in 1953

came

similar

a

target for 1954.

of

rate

Canada's

volume

of

Canadian

bond

financing of all kinds in 1954 will

38

doubt

no

that

surpass

peace-time

year

of

to date.

first 10 months the total

birth

any

In the
was

$3.2

billion

higher than that in
most other developed countries. In
1953

in the

to

28.2

thousand

per

comparing with 24.5 in the U. S.
in

15.7

and

290,000

U.

persons were

Canadian
the

the

K.

births

in

1953

same

period of 1953.

Government

creased

Nearly
added to the

population
of

eral

million.

With high postwar birth rates and

Federal

declining

resulted from the refunding

over

mortality

the

natural

addition to the population has in¬

to

creased every

created

year

but

one

in¬

$1.1

over

deaths.

excess

Fed¬

financing

billion, Pro¬
vincial $38 million, Municipal $41
million and Corporate about $239

by

since

of

million

$550

The

increase

large

in

maturity of two Victory loans
during the last

war.

Thfese

Oct.

2%

pulp and
of

the U. S. market will

and

first

10

nature

$224

in

most

the

year.

for

later lack of

in

The
two
factors
the
borrowers'

enthusiasm

terest rate and

and

for

through

S.

bonds

continued

most

stands

Dominion

of

to

relation

to

97.25

January,
97.

now

91

on

the

to

A

79
35

2

19,967

17,839

1,855

156

67

89.59%

9.29%

0.78%

0.34%

522

287

307

34

2,447

788

129

24,512

20,853

2,930

5°2

100.0%

direct and

guar.,

Government

85.09%

11.95%

2.42%

bonds....

railways

Other

corporations

Total

bonds

Percentage
SOURCE:

and

debentures.

distribution

98.75

*

57

42

8

„

31

132

'

Dominion Bureau

of

0.54%

Statistics.

TABLE

IX

was

Changes in Ownership of the Funded Debt of Canadian
Governments and Corporations, 1936-1953

.77%.

Percentage Held by Non-Residents

and it

Canadian

low

a

Dominion
Provincial

direct and
direct

Municipal

Other

and

1936

excluding railways
guaranteed, excluding railways

Government

1953

24

5

„

28

bonds.,

24

,25

10

*.

railways

.

30

25

<

-

...>

Sub-Total

Steam

'

guaranteed,

63

55

39

29

34

corporations

15

dollar:

in

bonds

and

debentures

April
SOURCE:

1 the yield

Dominion

Bureau

of

-

,

Statistics.

at

1.54%, declin¬
1.10%, and now

about

Canadian
June

.1.20%.

"

took

with

year

the

stigation

market.

of the

PERCENTAGE OF TOTAL OWNED
•

—All Non Residents—

•.

1939

founda¬

At the in¬

Bank

Canada

of

X

Percentage of Selected Canadian

a

Industries, End of 1939, 1948 and 1951

in

being laid for the creation of

true money

as

in

place

:

Non-Resident Ownership

>

development

finance

this

TABLE

was

of

significant

tion

Countries

608
879
368

day Government of Canada

stands

a

Other

Kingdom

14,425
2,213
1,251

exclud. railways
exclud. railways

Percentage distribution
Steam

.56%, with

On July

Treasury Bills
ing

United

States

15,169
3,142
1,656

1,150
3,395

guar.,

Total

in

United

Canada

narrow

year

about

VIII

Ownership

..100.0%

and

Sub-Total

long Canadas yielding 3.24% and
long Treasuries at 2.68%. During
this period the U. S. dollar went
through the following range in

and

direct

DEBTOR

the

of

at

are

divergent

—DISTRIBUTION OF OWNERSHIP

Governments

differential

a

spread

now

enter

the currency rate.

U.

temperament

introduce

to

the in¬

were

Canada

on

national

tending

Outstanding

beginning of 1954 the yield

long-term

The

to

and

Amounts

with

the first part

the American market

At the

against

previous,

year

responsible

of

DEBTOR

Provincial

issues sold

of

the

Distribution

Municipal

million

eco-

of Funded Debt of
Canadian Governments and Corporations, End of 1953

In the

$172

was

1953.

How-

ulation, different tax philosophies

TABLE
Estimated

financing of this

months

be.

rate of

as

nomic growth and growth of pop-

York

a North
is easy to

it

economy,

should

such elements

ever,

thinking in terms of

American

this

why

see

Historically, the Canadian stock
markets have followed New

Oct.

undoubtedly

decline from

a

rise
'

a

'

It is
interesting to note that
borrowing by Canadian issuers in

show

with

paper group

40%.

1,

Both pieces of financing
with unqualified success.

met

Government, bond .sales
prior

million

1979.

3.68%

(excluding short-term fi¬
nancing of under one year dura¬
tion) compared with $1.8 billion

rose

$700

2.91%
The

rate has been

it

form

,1957 and $400 million 3*/4%

on

.

The Bond Market

deaths per live birth in the years
1951 and 1952.
Since

the

figure

mor¬

Of these

war.

167,000

thousand

per

Canadian

number of

a

live births and, while this rate is
higher than in the U. S. and the
U. K., it shows an improvement
over

in¬

natural

has

immigration

since the end of the

population

in

and 11.4 in the U. K.

the

to

made a
sizable contribution to the growth
in population. More than a million
immigrants have entered Canada

nations.

an

1,000

addition

crease,

con¬

as

healthiest

per

persons

population
by
natural increase
1921, or an annual average
of about 140,000 in the twenties,

The 1953 report

vital

million

since

This figure compared with 3 mil¬
lion at Confederation in 1867 and

5,300,000 in 1901.

5^

have been added to the Canadian

Canada's population topped the
15 million mark at Dec. 1, 1953.

on

Economy

October

1,

Population

the

2y4% Dec. 15, 1956 and $300 mil¬
lion 314% June
1, 1976 and in

Over

1937.

1956

due

•

refunding operation in May

took

In Canada's
to relieve the buying pressure on
the Canadian dollar.

million. 3%

billion 3% due 1957. The

Thursday, December 16, 1954

.,.

group of dealers was selected
to become specialists in Govern¬

1948

1951

BY

United Sta'es Residents
1939
1948
1951

Manufacturing
Mining, smelting, petroleum explor. and devel.
railways

42

42

43

34

40

42

59

31

35

52

57

43

39

18

21

Other

J8

27

-20

20

32

22

Steam

......

utilities

21?

„■

*

36

"

36

17

17

24

)

24

a

Canadian

ment

of

and

Investment Seceiiities

Canada

"Jobbers"

1954

•

credit

on

against

organization is actively engaged in under¬
writing and distributing Canadian Government,
Provincial, Municipal and Corporate Securities.

which

lines

is

also

equipped to
,

Canadian Stock

orders

execute

on

all

Exchanges.

ing

other

or

they

term not in

a

Host on

WINNIPEG
and

other

immediate

two-fold

an

benefit.

On

one hand, the chartered banks
acquired
a
liquid *. investment
ranking next to cash and on the

McLeod,Youmg,Weir & Company
LIMITED

Members of The Investment Dealers' Association of Canada

enabled to

were

demand

on

on

low

at

rate?

DEALERS IN ALL

positions

carry

CANADIAN SECURITIES

economical basis.

an

impetus to the broad¬
ening of the money market came

Direct private wires to Montreal, Ottawa,

from

Vancouver and

Act

CALGARY

Canadian

VANCOUVER

Cities

*

\

VICTORIA

-

amendment

an

on

to

the Bank

July 1 which changed the
controlling the ratio of
deposits.
Minimum

basis

for

bank

reserves

First

Boston

at

set

8%

vision

with

that

the

the

further

B^nk

8%

of

and

tending its

power

supply

cash

of

Head

Winnipeg, Calgary,

Corporation, New York
all

on

Exchanges

Office

was

50

pro¬

King Street West, Toronto, Canada

Canada

of

would have authority to vary this
minimum
cash
ratio
within
a
range

Stock orders executed

against deposit lia¬

bilities of the chartered banks

Svc»e®&^°* *MC*

The

cash to

cash

LONDON, ENGLAND

Mills.

"

.

.

Further

Affiliates in:
MONTREAL

•

hav¬

This development had

years.

ties

Incorporated

IV>w lurk

TORONTO

33

of three

excess

in short-term Government securi¬

,

Bureau of Statistics.

38

could

Governments

permitting them to

A. E. Ames & Co.

merchandising

;

Bills

borrow

Inquiries Are Invited

Dominion

and

chartered banks

other the dealers
Your

industries

of

the

It

SOURCE:

above

These

granted

the

Bills

of

day-to-day basis secured by
hypothecation
of
Treasury

a

the

Our

bonds.

were

borrow from

18U»

Treasury

short-term

Total

12%, thus

MONTREAL

OTTAWA

WINNIPEG

LONDON

HAMILTON

VANCOUVER

CALGARY

KITCHENER

QUEBEC

NEW YORK

ex¬

to regulate the

available

in

the

banking system. Traditionally, the
Canadian

chartered

maintained

10%

a

had

banks

reserve

about

of

against a statutory 5% min¬
requirement. - In
recent

imum

U

months

us

BROADWAY

average

standing around 9%.
\ Largely as a result of these de¬

liberate
is

in

steps

estimated

described
that

real

progress

been made in

Investment

Secent.es

^IMNII'EG

Affiliate of Watt & Watt
Toronto

it

Bills

therefore

broadening the Ca¬

nadian money market which is

important development in

whose demands
ever increasing.

try
are

MONTREAL

The

Stock

Toronto Stock

Since last

has

for

equities

Canadian Securities
.

an

Wemb

TORONTO

D.
vIv^VA**

B.

S.

As

Vatt & Watt

capital

Incorporated

Market

measured

by

index, industrial stocks

Member National Association
of Security

70 Pine

Private Wires
Toronto

Dealers, Inc.

Street, New York 5, N. ,Y.

Montreal
Buffalo
and

Winnipeg

WHitehall 4-3262

gained 32%, banks 23% and utili¬
ties

19%

showed

during the period. One
and
clothing,
slight decline while the

textiles

group,
a

best performance was given by

the

Exchange

Winnipeg Grain Exchange
Investment Dealers Assn. of Canada

a coun¬

advanced with few

interruptions.

Exchange

Montreal Stock

{ During the first 10 months of
1954, the average prices of Cana¬
dian

»

Members

non-banking hands in Canada

June

mtt»s>sCT&Co*

above

Treasury

multiplied four times.




have

reserves

been

ajfdi

Bell

System

Teletype N.Y.

1-374

to

Number 5386

Volume 180

currents

self-interest.

ment of

may

although the main move¬
equity prices in both mar¬
continue

will

kets

in

be

to

One

S.

Respectfully submitted,

equi¬

activity of newly formed
companies al¬

portfolios,

seek

high grade equities. The num¬
of such issues and the floating

choice of either railroad
Nor

stocks.

this

Arnold

ments when the two

of

issues
be

now

where

disclosure

ments

regulations
financial

of

required in Canada. In

not

G.

the past most banks

had been un¬
willing to increase their capital¬

G.

tion which banks
to

not

are

mainly

on

continued

Lim¬

,

broaden.

to

on

Jarvis

The real
nomic

news

life this

in Canada's

year

seems

be

Dominion

jects briefly described in the open¬
Iron

and

Kitimat

Aluminum

phasize two great truths: they
flect

the

rich

remote

coming to life of those
northern

areas

W.

Canada

until

wasteland,
teamwork
U.

S.

men

recently considered

and

between
and

typify

Canadian

based

though the

are

higher than in 1929, this compari¬

be

avoided at least in the near-term,
but

that

ciently

cold

pump

level

in

will

war

serious

ment

un¬

averages

to

be

keep

priming

the

form

suffi¬

govern¬

on

of

a

high

military

preparedness outlays."

L. 6. BEAUBIEN
UNDERWRITERS

i

Company,

of QUEBEC

Government, Municipal, Corporation,
School Commissions, Parishes and Fabriques,

Religious Institutions.

:

221 NOTRE DAME STREET, WEST

Rukeyser

that

stated

probably

from

come

businessmen

the

MONTREAL

inven¬

Quebec

collapse

hed

Ottawa

-

St. Hyacinthe

Trois-Rivleres

-

Shawinigan Falls

-

Paris

liberately permitted to run down
in a cautious spirit when a seri¬
economic

I

decision

a

rebuild

to

and

Sherbrooke

-

Brussels

-

been

an

un¬

Rukeyser, who is author of "Fi¬
nancial

Security

declared,
national

to

in

continuance

Company,

and

of

factors

the

more

Over 30 years Service to

a

on

end

which

Canadian

of worry. The

general

employment
since

do

prosperity than

extraneous

many

Changing

a

"can

are common sources

&

Province

an"

c

special

a

DEALERS

AND

Specialists in Securities Originating in the

business outlook

harm

Pitfield

C°

LIMITED

stimulus for rising volume would

ever

and

capital

C.

the

on

World,"

Ltd., Montreal

the

they

Corpora¬

j

Arthur S. Torrey

of

in

depreciated

the

bridled spirit of speculation," Mr.

Securities

Wood, Gundy" &
Limited, Toronto

re¬

Thus

market

Dec. 7.

ous

W. Pearson Scott

em¬

1954 dollar.

corrected

securities

current

Interna¬

Service, in

"Overconfidence

tion, New York

Quebec-Labrador

equity

the

war

feared.

& Co., Inc.

George P. Rutherford

reflected in the two immense pro¬

ing paragraph.

Gundy

New York

eco¬

to

the

is

will

Street

hot

for

tories, which earlier had been de¬

McLeod, Young, Weir, Incor¬
porated, New York

Wood,

of

Advertising Club of Wash¬

Mr.

Edward S. Johnston

Conclusion

in

Wall

in

that

ington, D. C., at the Hotel Statler

of

W. H. R.

gains the holdings of Cana¬
dian equities by Canadian nation¬
has

News

at the

i

Bell, Gouinlock & Company,
Limited, Toronto

ital

als

Gairdner

ited, Toronto

con¬

e r

and

tional

Percy R. Hampton

growing

Am

Merryle S. Rukeyser

meeting

fidence and favorable tax regula¬
tions both as to income and cap¬

revalue

"Journal-

Gairdner and Company,

obliged

to

the New York

Fullerton

James A.

publish in Canada.
Based

Rukeyser,
Columnist

A. E. Ames & Co. Limited

ing to the SEC financial informa¬

activity

stock market represents an effort

Merryle

Economic

Toronto

this would have meant disclos¬

present

belief

Stanley

Curry

ization through an offer of rights
as

view

expressed

by

Quinlan,

&

New York

C.

"Another factor behind the bull

first

This

A. E. Ames & Co. Inc.
/

"The

Stimuli

volume

the

was

Norris
Ltd., Montreal

call

signal for trouble.

a

Market's

spread

-

half of 1955.

Collier,

state¬

Stock

Moreover, corpora¬

reflecting a quarter of a
century of national economic
growth, have, in the nature of
things, substantially greater net
worth than in the earlier period.
tions,

enthusiasm

The

interim

the

by

trade
in

Wm. T. K. Collier

Andrew

a

prosperity and boom have been
irrevocably frozen into our sys¬
tem, it will be

of the dollar.

cor¬

on

the

reflect

improving
profits and

Montreal

can

maladjustments

to

of

Mining

Investors

business

high level
the

shoot¬

Write for

II

curities

our

new

list of Canadian Mining

Se¬

Douglas B. Weldon
Midland

Securities

Corp.

phase

resulted

Limited, London, Ont.

on

ing

of

World

from

War

continuing

has

self-

paying dividends for

There is

no

more

than 15

years.

obligation.

Draper Dobie AND COMPANY
MEMBER OF THE TORONTO STOCK EXCHANGE

Burns Bros. &

Denton, inc

SUDBURY
WINDSOR

25 ADELAIDE W., TORONTO • TEL. EMPIRE 3-9171

NORTH BAY

37 Wall Street, New York 5

UNDERWRITING

ST. CATHARINES
PORT C0LB0RNE

Tel.: DIgby 4-3870

TWX: NY 1-1167

—

DISTRIBUTING

Canadian

TRADING

—

Securities

ROYAL SECURITIES CORPORATION
LIMITED
Underwriters and Distributors of

Government, Municipal, Public Utility

Burns Bros. &

Denton

244 St. James Street
Toronto,

Limited

Calgary,
Members:

The

Investment

Burns Bros. &
Members:

The

Dealers'

Association

Stock

Halifax,

Saint John,

Edmonton,-

West, Montreal 1, Canada
Quebec,

Vancouver,

•

Montreal

•

•




Stock Exchange

Winnipeg
244 St. James Street

4

St. John's, Nfld,

Members: Montreal Stock Exchange

Exchange

Ottawa

Hamilton, Winnipeg,

ROYAL SECURITIES COMPANY
Canadian

Toronto

Ottawa,

Charlottetown,

of Canada

Company Limited
Toronto

,

and Industrial Securities

Affiliated with:

51

damage done to the buying power

expectation of

Greenshields & Co. Inc.

made\without the statu¬

countries

and
wide

Russell D. Bell

tory requirement of offering rights
to
subscribe
to
shareholders in
for

out

Limited

Co.

&

recession

business

flattened

had

boom

of

fails

son

Once

rolling basis is stopped by exces¬
sive optimism and by a belief that

terms

by growing evi¬

Winnipeg

stockholders
shares

that the

dence

Sec.-Treas.

Massey,

market

stock
off

James Richardson & Sons

largest banks

bank

recent

touched

Ralph D. Baker

for the first time in over 25 years.

New

B.

Mills, Spence

the

offered rights to their

The
was

;V-■V';';,

Toronto

brought about
supply of one
Canada's prime equity invest¬

of

Securities

Montreal

Ltd.,

or

year

in

Yice-Chmn.
> Corp.

Nixon,

'

or
revision of the Bank Act by Par¬

increase

E.

rection

by

years

businessmen- and financiers.

nevertheless cites logi¬

economy,

rise.

Dominion

our

cal factors behind stock market

Ashplant & Co.

Stanley

the deficiency of quan¬
selection. Fortunately, the

liament

assumption that prosperity has

optimis¬

over

been permanently frozen into

New York

meeting

tity

possible unbridled spirit

speculation and

tic

Ashplant, Vice-Chmn.

B.

F. B.

utility
issues fully

new

are

of

ance

Montreal
Fred.

supply thereof is small at the out¬
set and any added demand makes
itself felt on the price level. The
range of choice is limited; for ex¬
ample, there is in Canada no broad

an

Mr. Rukeyser, while urging avoid¬

Greenshields & Co. Inc.
,

searching through these

the automatic and continuous

Overconfidence

Peter Kilburn, Chairman

at' least

phase of formation,

present

V

of

this report.
in the

in

mentioned

Their

ber

\

COMMITTEE

CANADIAN

Warns Against

♦'

>

investment

ready

out

together they

symbol - of North
destiny in the last half

the 20th century.

special factor contributing

ties is the

Taken

be ' the

American

of

to the firmness of Canadian

U.

the

direction.

same

(2503)

The Commercial and Financial Chronicle

...

West, Montreal 1, Canada

52

I

I

(2504)

The Commercial and Financial Chronicle

quality considered, of 6.4% on the
present $2.20 annual dividend rate.
Because of its position in the iron
ore

of

area

Northern

is

most western

New York Central stock had for
time

active

been

stocks

of

one

the

on

the

New

York

fact

debt structure and that

generally advancing prices. To
general interest there was

first things he would

this

added

around

the

week

highly
The

the

effects

middle

last

Board

would

be

in

hood of only $5
on

the

esti¬

With

it

neighbor¬

million but went

or

$75

even

million,

taxes.

before

He further

share

at

the

as

to

It

be

of

for

for

lib¬

some

even

also

was

or

noted

for

last

was

week

as

the

next

quoted

in

that he

ence,

view of all that has been said by
new management as to the
ex¬

was

the Chairman

as

for

1955

that

This

property.

will

require large cash outlays
the proposed acquisition of

as

as

of light weight passenger cars that

along

Collier Norris

with

a

liberal

CANADIAN

STOCK

has

in line the transportation ratio in¬

only 1.4 points during the
months, and at 33.2% was still
below

the

industry

income

taxes

interim.

and

will

same

sub¬
a

traffic

presum¬

seems

Thus,

possible

reach $4.50 a
share, just about where they were
in 1952 and compared with
$4.92
last year.

of

the

con¬

year so that the road's

yield,

tonnage of

the

should

ore

re¬

have

abroad.

It

something of
to learn that,

you

to

from

a

new

that

the

road

has

growth

well

defined

ventures in Canada and in
branch plants. During 1953 United
States direct investment in Canada

1953, United

reached

States

amounted

capita
the

to

long

United

$52;
term

projects,

nadian investment abroad, it is ac¬
curate to say that Canadian sources

large

saving

in

the

postwar

but 4%

320 Bay

value
United

New

Cana¬

accounted

the

United

The

capital

for

States

last year.
issues sold in

of .new

States

amounted

have

tapered

now

doubt

which

terest rates has narrowed. In

expresses

of

our

in

a

itself

in

in

the

sobriety
thrifty

financing

tween

have

deal to do with the inflow of Uni¬
ted States capital
to Canada in

was

Certainly the
flow

has

United

vol¬

been

States

by

than

the

of

1945

to

alone

j^ear

billions
the

it

from

end

of

by

than $600 millions to reach

States

WE

HAVE

considerable'

a

But last year the tide

running in the opposite direc-:
During the first quarter of
United

States

buying

BELL,

From

total

time

to

are

created

for

this

heavy

flow

the

United

time,

us

in

of

States.

&

Canada

capital

Nevertheless,

velopment would have

IN

to progress

ANNOUNCING
OF

COMPANY,

With

and

have

where

resulted

the

INCORPORATED

in

64

WALL

Offices

at

STREET,' NEW

-

.

YORK,

5

"

TELEPHONE

BOWLING

GREEN

9-8215

the

land through ir¬

Affiliated

«

Treves

t

On Jan.

Street

be

Admit Two

to

with

1

&

C □ M PAN Y,

MONTREAL

•

LIMITED

WINNIPEG

<

Morris Leverton will

admitted

to general partner¬
ship and Harold Reiner to limited

EMpire 8-2984

GOUINLOCK

TORONTO

partnership in Treves & Co., 40
Street,
New
York
City,

LEGGAT,

members of the

BELL,

GOUINLOCK

LTD.

MEMBERS
;

.

MONTREAL

STOCK

EXCHANGE

MEMBERS

Wall

CANADIAN

STOCK

EXCHANGE

New York Stock

MONTREAL

Exchange.

With Bosworth Sullivan
Government of Canada Bonds

Provincial and Municipal

Treasury Bills

Debentures

(Special

Wardman
with
660

Corporate Bonds and Shares

to

The

Financial

Chronicle)

'

DENVER,

Colo. —William

has

become

Bosworth,
17th

E.

associated

Sullivan

Street.

Mr.

&

Co.,

Wardman

was

previously Colorado Springs
Manager for Harris, Upham & Co.

Brawley, Cathers

&

Company

Members

With Eastman, Dillon Co.
Statistical information
ties

supplied promptly

executed

through

on

our

on

on

Canadian Securi¬

request.

Orders

the

Toronto Stock Exchange
affiliate member corporation.

|(Special to The Financial

Investment Dealers' Association of Canada
Toronto Stock Exchange

Chronicle)

CHICAGO, 111.—W i 11 a r d A.
White has become connected with
Eastman, Dillon & Co., 135 South
La Salle Street.

with

White,

He

Weld

was

&

formerly
Co.

CANADIAN

and

Bache & Co.

With Federated Managem't
(Special

Equitable Securities Canada

to

The

Financial

WORCESTER,

Mass.

GOVERNMENT-MUNICIPAL-CORPORATION
i'

"

•

.

Chronicle)
—

SECURITIES

Vincent

F. '•

LIMITED
Members: The Investment Dealers'
Association of Canada
220 BAY




STREET, TORONTO, CANADA

Telephone:

EMpire 6-1141

Murphy
is
with
Federated
Management Corporation, 21 Elm
Street.
CANADIAN

With W. C. Birkenmayer
DENVER, Colo. — Miles A.
White, Jr. has become connected
with

W.

C.

Birkenmayer

U. S. National Bank

&

Building.

Co.,

BANK

OF

EMPIRE

by.

from

that

characteristics,

:

:

problems

welcome it, because we realize
without it our economic de¬

we

FORMATION

GOUINLOCK

of

United States investment trusts.

Last

PLEASURE
THE

and

securities,

sharply and the demand is
continuing to be strong, buoyed
particularly by the operation of

end

more
a

in

be-,

rose

more

1953.

increased

United

in¬

some

Canadian stocks and shares
again

re¬

invest¬

ment in Canada increased

$3V2

tion.

States

transactions

outstanding

no

between

gap

United

resulted

1954

that

in

inflow.

net

recent

years.

the

Canada

handling of our domestic and in¬
ternational affairs has had a good

the

and

portfolio

years

economic development and
of responsibility in the

of

because

Canadian

sense

ume

to

off, largely

the gross capital formation.
I
imagine * that
the

self-dependence

a

inflow

$329 millions. Such flotations

of the net capital forma¬
Canada and all but 9% of

tion in

of

the

period

Canada.
also

slice

from the

large enough to finance all

were

in

issues

up of millions of acres of

formerly barren

Toronto

d'Armes

branches

to

dian

BELL,
Place

amounted

rigation.

Association of Canada

HArbour 2201

also be interested to
know that, from 1946 to 1953, 307
United
States
firms
established

Canadian per
investment ."in

States

record of $330 millions.

a

may

with

dams

same

MEMBERS

507

You

Canada

$133. If account is taken of all Ca¬

hydro¬

electric

opening

Montreal

new

capita

per

long term investment in

respect to the
western part of the lines
wherq
industrial expansion has been
stimulated by
the large

Quiiilan

that

larg¬

States is much greater than United
States investment in Canada.
In

peak.
Aside
favorable near-term

particularly

Dealers'

how

made up. The

was

postwar

these

long-term

Investment

idea of

some

part of it took the form of
direct United States investment in

capita,

per

you

est

Canadian investment in the United

aspects, and the possibility of fur¬
ther liberalization of dividends in
the coming year, it is
pointed out

The

give

increment

Thus, a significant in¬
crease in earnings is
looked for by
most analysts next
year, perhaps

EXCHANGE

Limited

a

ficiency.

Quinlan

&

in¬

perhaps
surprise

bound fairly
sharply next year. of $8,600 million.
v
Also, further progress toward the'
Since remarks on this subject
goal of complete dieselization
may seem to lack authority unless
should mean continuing cumula¬
they are strongly laced with sta¬
tive improvement in the
already tistics, I should perhaps go on and
favorable degree of
operating ef¬

EXCHANGE

Collier Norris

been

may

as

markable.,

present outlook is for

siderably heavier steel tonnage in
1955 than is
being produced this
profitable iron

come

of

November

the

vesting

average.

were

drop of only $0.55 from the like

for the full year it
that earnings may

MEMBERS
STOCK

that

whole.

ably be true of December.

affording interesting potentiali¬

ties

a

long been a highly
efficient property and while it was
impossible to hold costs strictly

riods

many analysts have been
pointing to Great Northern stock

fleet

MONTREAL

road

than
as

comparisons' .were
much
better
they had been in earlier pe¬

the outlook

side

showing

than

market

will

a

erably better

of the Class I carriers

1953

the

not.so optimistic

investment

revenues

declined only about 7%, a consid¬

a

two

Great Northern

the

through Oc¬

tober, Great Northern's

The
On

presumably

re¬

year ago and for the 10 months
share earnings amounted to $3.38,

etc.,

that is necessary to modernize the

the

is being

stantially lower than they were

earnings although he did

-

it

dians. themselves

to

^
10 months

For the

Federal

visualize results much better than
those of 1954.

pro¬

gram, including mechanized yards,
Centralized Traffic Control,

sharply during
season,

Investment and Trade

did

markably well.

well

saying at the

over

Lakes

pointed out that the road did

10

disappointing earnings

so,

of

creased

time of Mr. Young's press confer¬

the

capital improvement

policies

expected

press

somewhat

surprise to some close stu¬
dents of the company's
affairs, in
a

tensive

quarters that
room

Perlman, , President, of the
road, who in an earlier speech-had
warned

January meeting of
came

many
little

be

come

years

release

in

commitments,

Mr.

Board.

The
of

the

to

months.

a regular quar¬
basis of $0.50 a

dividend

ag¬

though the
road's cash position has been im¬
proving somewhat in
recent

on

terly

gain¬

fairly

shipping

The

of these

dividend

time

expressed the hope that the stock

might be put

felt

eral

might well be boosted to $50 mil¬
Federal income

is

all

there will

to state that by next year this

lion

on

discount bonds.

mated that earnings in the current
year

do

1954

the

to

27

page

Pattern of Canadian

than

roads to the rate

shipments

slump

-

gressive steps to reduce this debt
through open market purchases of

release.

of the

of the

one

ing control would be to take

Young's

press

optimistic

Chairman

of

Mr.

of

buy, Also,
Young has long stressed the
that Central has a top-heavy

Mr.

Stock Exchange day after day, and
at

ore

the company intends to

most

Great

sensitive

from

steel mill operations.
Considering
this factor, and the fact that iron

New York Central and Great Northern

some

Minnesota,

more

Continued

Thursday, December 16, 1954

.

.

COMMERCE

3-5821

TORONTO

BUILDING

Volume 180

Number 5386

.

.

The Commercial and Financial Chronicle

.

\

at

slower

a

hand,
such

be

rate.

do

we

capital

a

On

not

the

other

consider

movements

satisfactory substitute

stable

trade

Canada

balance.

had

ever

for

Last

trade

a

that

can

a

year,

deficit

with

,the

United
States, of approxi¬
mately $750 millions and an over¬
all

deficit

on

current

account

approximately $440 millions.
deficit

was

flow.

covered

That

of

The

by capital in¬

method

of

balancing
our
international accounts
is,
however, less satisfactory than a
balance

produced

trade.

by

Inevitably

pendent

leaves

on

position

a

residue

minds
would

movements

of

about
be

to dwindle

were

export
balance de¬

capital

some

Canadian

our

if

or

in

worry

what
the

dry

our

inflow

up.

Much has been written
recently
about
the
necessity, as United
States foreign aid comes to an
end,
for underdeveloped countries

or

countries in the process of devel¬
opment to create a domestic cli¬
mate that will attract

foreign, and

principally American, investment.
Less has been said about the

ollary that
'be

overseas

reluctant

to

cor¬

countries will

welcome

dollar

investment unless they can see a
prospect of ultimately earn¬
ing an increased volume of dol¬

fair

lars from the United States. That
consideration is all the more

per¬

tinent

at

time

a

when

United

-States receipts in the form

of in¬

terest, dividends and other private
investment returns substantially
exceed new investments
being
placed abroad. Last year, for ex¬
ample/returns
United
(

of

abroad exceeded
mately

>

A

oL private

same

More

capital during
»

Liberal

IT.

S.

•

Import

domestic

our

in

economy

trim, as the heavy flow of United
States funds, I think, bears vvitness.
As a
result, we are, no
doubt, in a better position'than

i many other countries to urge that
J a readier acceptance by the
United States of foreign imports
| must go hand in hand with dollar
investment abroad.
a

There is such
wide demand for the basic com¬

modities
that

we

we

produce
be

can

in

Canada

confident

that—

in the

long run—they can be mar¬
keted, and on satisfactory terms.
That is not true,
however, of many
another country. And even we in
Canada cannot afford to slacken
for a moment our

vigilant

over

concern

our

export prospects.
For¬
eign trade is the very lifeblood of
national economy and
tional
well-being,
our

our na¬

accounting

it does for
total

more

than 20%

of

as
our

production.

Nor

can

If

are

restrictions.

during the last 20
has

true that

true

it

But

Changing Circumstances Require
Action

our

to

list.

that

It

in¬

an

action

imperative
stances.

For

*•

situation

a

free and

those

who

have

helped

Canada—only
if reliable markets can be
found,
particularly in the United States,
for the natural

that

resources

are

being exploited. For that
reason, those of you who have in¬
now

in Canada have

vested

a

move¬

restoration

on

if

advantage

world-wide

a

sound

pursue

responsibility

a

domestic

meas¬

kind

contribution

freely

the

with

States, iWhether

international economy.

United

siderable

not Americans

or

seem

realize

it, they have acquired an
important stake in the future of

Canada's foreign

During
Canada
the

the

trade.

past

have

we

in

that

have

Over

con¬

opposition, these views
to have gained the as¬

now

con¬

cerned.

And, if there is not
convincing evidence before

that

b*

year

the

United

liberal

States

some

long

is

slowly

moving towards

but surely

been

a more

trade

policy,

it

seems

further

even

the

only

fected

restrictions.

commodities

have

been

exports.

commodities

seem

light

af¬

of

our

of

the

our

oilfields and

our

ore

and

to

de¬

our

increase

production of nonferrous

metals.

I

that

these

very

all

need

hardly point out
commodities

substantially

into

enter

our

for¬

to

20th

of

tween

an¬

August,

the

difficulty

in

of

Adam

be

created

in

I

America

the

great

international

of

modest

some

fore,

the

of

classical
can

to awaken

such

argument

ready

dependent

and;

whose
real

peoples

realize

ments

export

the

to

natural

available

gas
as

oilfields

belief

of

are

that

and

for

re¬

Canada's trade

strictions

when

held

were

new

be

Canadian

un¬

commodities
cause

concern.

*

hoped

that

Stales would be able to take

action

to

policy

creditor.
that

the

We

world's
would

issues

these

to

understood

we

be

be

the

will

able

appointed

When

would

kind

in

,

the

We

the

the ffee world.

are

to

that

to

not

timely.
an

if

for

reason

inhibited

of

be

succeed
one

effective

the

and

to

on

recommendations

its

constituted

to

,thq

thought that these

we

ex¬

Ob¬
effort

progress

on

only if

earning the
on

page

Street, New York 5

105

West

Adams

Street, Chicago 3

Affiliated with

-

.

Wood, Gundy & Company
Limited
TORONTO

QUEBEC

MONTREAL

WINNIPEG

SAINT JOHN

HALIFAX

KITCHENER

VANCOUVER

OTTAWA
REGINA

LONDON, ENG.

HAMILTON

EDMONTON

LONDON, ONT.

CALGARY

VICTORIA

an¬

playing a
leadership. The
still

hone

OPPORTUNITIES IN CANADA

join in making the Agreement
regulate

as an

interna¬

•

That these discussions in Geneva

-

are

and

taking place in
a

on

a

wide forum

multilateral scale

seems

ket, however large and however
freely we may be allowed to enter

will be made
at the forthcoming session of Con¬
gress to translate them into law.
some

borders

own

depend

United
or

that

move

conditions

the

to us altogether proper.
For, al¬
though I have stressed the im¬
portance to Canada of its trade
with the United States, your mar¬

a

and

their

can

sound

preserve

economic

Continued

in

in the right
hoped that they
would be implemented without
delay.
We now earnestly trust

direction

hopeful

within

They will be able

and

from

Government

Canadian

consider

ted

Pres'dent.,

develop

that the United States will be able

reasons

Commission

Wall

14

it,

can

hardly be expected to

pro¬

Our facilities
in

the

can

industrial

investors

in

be of valuable assistance to those interested

development of Canada and of benefit to

selecting suitable investments through which to

participate in Canada's assured growth.

Nesbitl Thomson and Company
Limited
Members

Information
Canadian
W.

Canadian Securities

on

of

The Investment

Head Office:

Affiliate

C. Pitfield

&

Company, Limited
Members of
The Investment Dealers'

Association of Canada
Branches
Montreal

Halifax

Saint John

Cornwall

Association

of

Canada

W., Montreal

principal Cities of Canada

Through the nation-wide network of offices, linked by private
wire, of

ited,
and

we

Canadian affiliate, W. C. Pitfield & Company, Lim¬

our

in

are

private

information

on

Our
are

a

position

investors

with

to

provide

prompt

American

quotations

institutional

and

pertinent

Nesbitt, Thomson and Company, Inc.
25

Canadian securities.

associates, Hugh Mackay

members of all stock

& Company,

Broad

Street, New York 4, N. Y.

Telephone HAnover 2-8875

Teletype NY

1-4358

exchanges in Canada.

Moncton

Ottawa

Dealers'

355 St James Street

Branches in the

Toronto

Winnipeg

Calgary

Edmonton

Vancouver

W. C. Pitfield &

Co., Inc.

Victoria




30 Broad

Street, New York 4

Telephone HAnover 2-9250

Direct wire connections between

New

York, Montreal, Toronto, Ottawa, Hamilton, Kitchener
and

th»

play their part in main¬
the military strength ol

United

prevented

however, such

is,

role

debated

Economic Policy submit¬

to

taining

one,

alleviation of

or

other,

needed

Foreign

resist

to

Communist

full

States

strongest
be

trade.

have

with

viously,

some

fully appreciated

time

some

and

that

bring its commercial
into accord with its

as

of

life

people

propaganda and they will not be

for

greatly af¬
of imported

commercial

change difficultiets in many coun¬
suggests that an effort of

more

position

able

be

blandishments

social

their

Wood, Gundy & Go., Inc.

the

tries

United

the

not

and

Agreement

the removal

developments have been
disturbing at a time when

had

in

ment, especially in its, crucial balance-of-payments clauses.
And

great

These

we

Otherwise

they

from
being
strictness and
full success.
The present review
session provides an opportunity,
however, to strengthen the Agree¬

t

more

keep the fabric

strong.

Nevertheless, I think that that

orderly system

en

you

the avorld

applied

this

in

us

like

General

avoidable.
Nevertheless, the in¬
creasing difficulties that we have
experienced in trying to sell

country inevitably

to

and
have

imperfect

an

international

of

re¬

to

empire which threat¬
Without exception all

need

States, have regretted that ex¬
change difficulties in many parts

imports
mitigate the-consequences

to

of

code

a

essential to

was

Canadian

on

situated right
out-works of the

economic

will

of these

Some

of their

in

al¬

parts

are

the

all.

them

all

Gen¬

beginning

very

instrument,

even

Canada,

government to avoid

cost

us

in

head

your

are

great importance t.o that

conduct,
of

your

the

against

ens

and

Geneva

Governments

international

edge what efforts have been made
strictions

in

Tariffs

on

the

Canadian

opened up. I know and acknowl¬

"by

by

world.

the

at

now

lost.

were

discussion

From

attached

arrange¬

to this country
that is becoming

our

fected

is

income

would

trade

found

yours

Communist

foreign trade

on

of

is

be

to

are

as

response

it does in countries which

more

freer

coalition

the free

up

so

hardly be expected
a

nation

allies

In this country, there¬

freer trade

as

reductions

that

wide

a

lies

States, many other
economic
adjustments can lead
more directly, and certainly more
visibly, to a reduction in costs
than

the

substantially
to
the
security of the United States. Thia

United

protection.

increase

would

contribute

and

large, so expansive, and
comparatively self-contained

Smith

opulence of their country (to use
his terms), it must be increasingly
apparent to all of us in North

a

need

trade

in seeing that some
application to their for¬
trade of the principles of

eign

free

fragmented into
regional categories.

direction. If Americans have

further

allow

be

case,

quite

a

sat¬

more

a

issues involved

Agreement

Trade.

uncertain.

making

if' this

world

at the session, to review the

lead

remains

the nations

under

now

eral

zinc

free

Most of the

for example, the future market in
the
United States for Canadian
and

the

major

a

*

develop

the
not

not '
the

And, in any

argument of

an

is
in

isfactory economic system be¬

In

decision

the

for

be

opportuntiy to create

other

But

threatened.

on

nounced

defeat

far,

be

certain

agricultural
the

So

to

would

tional trade.

posits of iron

number

and

trade
even

difficulty

commodities.

that it

Ihem.

re¬

to

believe

trade. The vast bulk of the direct
United States investment in Can¬
our

them

by the clamour there has been for

to

going to

whole

a

their

instrument

is

no

throughout

as

that the balance of opinion may
well be reversed.
We in Canada

stronger rather than weaker

It

investment
world

is

same

other,
obliged to try

are

problems of trade and

us

should

industries.

the

see

imposed by the United States
against some of our exports and

why yet another Commission

being channeled to

to¬

stable

a

cendancy in all the countries

;

disturbed

been

restrictions

;

their

as

—

unpopular

an

indifferent, I suggest, to Canadian

source

bet¬

ward the establishment of

trade

to

Canada

omy so

to

work
to

in

we

freer

relevance
States.

different,
and
more
nowadays
important, kind that points in the

For that

icit countries have

The dol¬

continue

country.
practical reason, if for

there

be ab¬

never

this

any time
since the end of the War that def¬

and

area
now

der will be able to do their
can

without
United

payments, the United
States must gradually be willing
to take more and more imports.
We appreciate that in an econ¬

Throughout the sterling
in Western Europe it is
ter appreciated than at

terest in investment in Canada be

ada is

of

scale.

lars you have sent across the bor¬

Canada

in

to

vanish

of

if

of

But this may
these favorable con¬

ures—sometimes

only

the world and could

them is not taken for constructive

common

interest with Canadians.

the

argument for

our

action

to

for

broad

multilateral system „of

ditions

finance it—and

changing circum¬
time being, the
a

for

scope

Some of the commodities

produce in greatest volume—

we

hardly add that in our opin¬
ion
any
global appraisal leads
quickly to the conclusion that, if
an
enduring structural balance is

success

a

need
more

trade and payments.

change and

Canada will be

in

the

made

the

favors

towards

ment

The economic

been

by

adequate

traders.

sorbed

that

me

has

place

for

those who have

to

seems

for

vide

wheat, for example — are tradi¬
tionally exported to other parts of

/

.

development that has been taking
for

further disappoint¬

illusionment—in my country.

also

is

otherwise,

proves

be

much

foreign trade is still
largely made up of the export of
a
comparatively few staple com¬
modities.
Our principal
exports
are still wheat, newsprint, lumber,
non-ferrous metals; and we hope
that
before
long iron ore and
petroleum and natural gas will be
added

will

ment—and I fear pretty wide dis¬

that

Canadian

years

become

diversified.

more

is

It

the', event

there

.As you know, there has also been

Needed

We in Canada have
managed to

keep

;

by approxi¬

period.-

Policy
-

|

on

investment

billion, dollars the fresh

a

outflow

.the

5

all .kinds

States private

of these

some

threatened with United States im¬

production

53

(2505)

eign trade. And
port

~

.

London

(Ont.)

54

54

The Commercial and Financial Chronicle

(2506)

Continued

jrom

Continued jrom page

53

page

Investment and Trade
foreign exchange they must have
to meet their import requirements
and their other external obliga¬
tions.

than

creditor
and

wide

must

from

United

States

—

lesser

from

more

or

of

the

are

to

Canada
regarded

as

the

mere

To

which

alliance

responsibilities
on

you

when

you

way

shouldered

have

Americans

the

you

the

have been
for leadership in
that
We

are

confident

realize that the
must sustain re¬

quires that you open your doors
more freely to the goods produced
in other countries, you will ac¬

commer¬

importance.

admiration

with

that

cept

lead
it represents an in¬
dispensable element in the com¬

all

as

you

now

the

so

responsibility
others

as

which, you

well
are

courageously discharging,

Value of Public Relations

the Presi¬
& Tel.,

I have recently asked

Tel.

American

of

dents

Sears,

Motors,

General

duPont,

would"'*
out of
to

get

life,

contribute as much

nor

society.

Coming Year

Aninvmpnt

as

One of the real com¬

pensations, it seems to me, is that
when

arrive

we

the

at

age

of

retirement, because of our par¬
ticular experience, we are men¬

potentialities.

They are nothing
less than a necessity for survival.
We
in
Canada have watched

great cause you

—

than

are

ject of concern is the question of
public relations. While we think
and talk about it, the net result
of our individual
and collective
efforts seems to fall short of our

they see.

that

a

be

your friends
indeed much more

by

you

the free world.

United

add,

to

allies

and

thrust

out¬

from

economic

members

The

should

I

therefore

far

cial

primary at¬

dollars.

extent,

should
of

and,

your

countries

most

dollars

of

States

country
for

demand

command

tention

flow

strong

exchange resources

products, the
that

of this

position

the

the

of

Because

shipped

commodities

The

defense.

mon

23

IBA Problems for the

Pattern of Canadian

Roebuck and Westinghouse

tally alert and prepared to con¬
tinue to do our full share in the
curricular

extra

of

communities and environs.

our

will all

We

for an

need

responsibilities
that we still

agree

in our in¬

problems of learning how to live
with

each other—at both the in¬

dividual and international level—

be

should

solved

Yes,
in

have seen a great deal

we

lives and

our

work

hard

will enable
to

over

the

and

10%—and keep in mind that each

1940's. Where will you
greater opportunity—and
what profession has more to offer
overall than ours?
I question if

You

find

with

our

company has a Public Relations
Department. Mr. Miller of Ameri¬
can Tel. & Tel. said, "responsibil¬
ity rests with every member of
the organization."
Mr. Curtice of
General
Motors
said, "we feel,
further, that Public Relations is a
responsibility of management at

all levels."

Do

direction?
because

of

doubt

I

it

the

have

problem
aggressively.
thrive
on
interruptions in

We
our

daily routines and we frequently
become
submerged
under
the
of volume production.
are
many directions in

There

which

Relations

Public

our

pro¬

developed.
New
tax education, publicity opportun¬
ities, various kinds of speaking
assignments,
"Opportunity,
U. S. A.," the "Invest in America"
idea,
community
activities,
to
could

gram

mention

be

few.

a

find

also

colleges
think of

who

are

us

interested

come

to

I think

we

frequently
the country at large by
expressions of opinions on
important subjects or develop¬
ments of the day — rather than
merely "seconding the motion."

lot to be thankful for.

I

been

have

provided

freedoms of life and op¬

portunity. We

are

fortunate to be

Hincks Adds to Staff
(Special to The Financial Chronicle)

few

too

men

BRIDGEPORT, Conn.—Anthony
F.

has

Bauza

been

staff of Hincks

added

the

to

Bros. &

Co., Inc.,
Street, members of the
Midwest Stock Exchange.

Future

certain cloudy, world¬
problems, it really is not

Main

Despite
wide

difficult

with

look

to

the

into

optimism.

genuine

Two With Walston Firm

future

We

(Special to The Financial Chronicle)

see

SAN

the

rapid growth of population—
the ever increasing efficiency of

agriculture and industry — the
products of research and imagina¬
tion—the discovery of new and
greater

uses

for

arguments

are

F.

Good

Mathis

are

now

Walston

tive
us

ual

side

of

the

world

our

progress.

country

out the world.

If

we

Calif.—

I.

Mahlon

connected

with

Co., 265 Montgomery

Street.

Rutherford to Admit
John

construc¬
Let

Rutherford

&

Co.,

120

Broadway, New York City, mem¬

individ¬

and

bers of the New York Stock

Ex¬

through

sell prosperity for the
in

&

and

materials—

raw

on

FRANCISCO,

George

throughout the world. All of these

should

ourselves

our

to

we

as

before they be¬
in
some
other

on

of

insure
great country.

help

Americans.

872

Optimistic

a

our

schools

high

effectively

as

There

should.

this

the

pressure

and

much

very

seldom

we

in

time

our

take the time to approach

or

business

of

kind

of

future

We have

and

and

heritages

the

particular

tell the story of our

we

spend

industry

our

amount

time

a

industry.
in

we

dustry

good judgment
generation to turn

children

our

fathers'

our

lot to

a

and
our

grandchildren,

to fill
up
the vacuum
which developed during the 1930's

young men

have

we

Continued study,

look forward to.

and early

more

reasonably

in

orderly fashion.

expression as to the percentage
of their personal
valuable time
which they spend on Public Relatons.
It varies between 5% and

this

December 16,1954

Thursday,

...

change

Grace

M.

succeed, the

will

admit

Bickel to partnership on Jan. 1.

leading
early

DAWSON, HANNAFORD INC.
25 Broad Street,

New York 4, N. Y.

If

IBA

our

member firms

our

Association

our

efforts

would

toward

and

increase

solving

important problem, surely the in¬
vesting public would gain as well

and Distributors

Actually
three

solution

Government, Provincial, Municipal and

the

of

above

closely

are

would

do

carrying forward

much

re¬

A

DAWSON, HANNAFORD LIMITED

fourth

point of almost equal

mental

idea

of

saving—saving in

the form of corporate securities—

Toronto

Government

or

Savings Bonds—
Recently I attended
a
conference in Washington on
this question. Among the numer¬
ous
speakers, many mentioned
but

DAWSON, HANNAFORD & CO.
Montreal

The Investment Dealers'Association of Canada

Canadian Government,
and

Municipal

Corporation Securities

joint

importance to my mind is the
question of saving. I have thought
for a long time we could place a
greater emphasis on the funda¬

Affiliated with

member:

towards

industry in

our

the years to come.

Corporation Securities

Montreal

each

reflections

lated to each other and their

Canadian

CORPN. LIMITED

ourselves.

as

Underwriters

Midland Securities

this

saving.

The Midland Company
member:

The Toronto Stock Exchange

Stock orders executed

on

all

Exchanges

Toronto, Ontario: 50 King Street West
London, Ontario: Huron & Erie Building
Sault Ste. Marie, Ontario:

110 March Street

the volume of saving in the form
of

Savings Accounts, U. S. Gov¬
Savings Bonds, Life In¬
and Savings and Loan
Associations, but none mentioned
saving through investment in the

ernment
surance,

kind of securities

CANADIAN

It

GOVERNMENT AND MUNICIPAL BONDS
CORPORATION BONDS AND STOCKS

that

Authentic

information

covering all

porate Securities.
Prices

furnished

Canadian
Canada

or

New

on

able

amount

all

for

issues

delivery

York

Funds

delivery in the United

their

own

in

in

COMPANY

LIMITED

Telephone

Toronto, Canada

•

EMpire

Trading Dept. direct lines:
Members

Investment




Dealers'

6-5251

EMpire 3-7218

Association

our

of America."
v.

of

Canada

the

with

into

is

every

under the

great one.
kind of in¬

a

It

sun.

consideration

present,

and

the

has

the

Canadian Stock

Exchange

past,

future.

It

with persons of all walks of life.
I often think if persons in our
were

Exchange

Calgary Stock Exchange

to

deals with all phases of the finan¬
cial community, of industry, and

business

Member:
The Toronto Stock

Winnipeg Grain Exchange-

Our profession

take

73 King Street West

good, will become
of tomorrow?

for

States.

dustry

and

savings. Should
preaching the

"Saving
is? having—having is Independence
—Independence is the foundation

It* deals

WISENER

of

J. BRADLEY STREIT

not go all out in

customers

.

for

Funds

supplied

buy and sell.

habit of saving to all the people
so
that
a
greater number, for

Canadian Cor¬

.

we are

we

be tgiken for granted
interested only in that

segment of the public who have
already accumulated a consider¬
we

request

to

seems

employed by indus¬

trial corporations, and if we used
the same amount of brain work
and energy, we probably would
make more money but we

66 KING STREET, WEST

Toronto, Ontario
Phone: EMpire 3-7477

Volume 180

Number 5386

...

(2507)

The Commercial and Financial Chronicle

INVESTMENT BANKERS ASSOCIATION
OF AMERICA

OFFICERS 1954-1955

President

V ice-Presid ent

V ice-President

Walter A.

Schmidt

Schmidt, Poole, Roberts & Parke,

Philadelphia

Robert H.
American Securities

Holden K. Farrar

Craft

Smith, Barney & Co.,

Corporation,

Chicago

New York

Vice-President

V ice-President

John C. Hagan,
Mason-Hagan, Inc.,
Richmpnd,Va.




Jr,

,

Vice-President

Delmont K. Pfeffer

Ralph E. Phillips

National City Bank of New York,

Dean Witter & Co.,

New York

Los Angeles

55

56

The Commercial and Financial Chronicle

(2508)

Thursday, December 16, 1954

...

IBA GOVERNORS

J. Murrey

William M. Adams

Atkins

Harry Beecroft

Walter F. Blaine

Braun, Boswortli &

R. S. Dickson & Co.,

Beecrojt, Cole & Co.,

Goldman,Sachs & Co.,

Co., Incorporated,

Inc., Charlotte, N. C.

Topeka

New York

.

Orlando S. Brewer

T. Jerrold

Bryce

Almstedt Brothers,

Bullock,

Clark, Dodge & Co.

Robert W. Fisher

W. C. Hammond, Jr.

Blyth & Co., Inc.,
New York City

City

James R. Burkbolder

Hugh Bullock
Calvin

Phelps, Fenn & Co.,
New York City

White. Weld & Co.,
Boston

Waldo Hemphill &

New

York

City

New York

Louisville

City

Detroit

Forrester A. Clark
H. C.

Wainwright &

Co., Boston

Harold H. Cook
Spencer Trask & Co.
New York City

Lester H. Empay

Gordon Crouter
De Haven

American

&Townsend,

Trust

Company,

Crouter & Bodine,

Waldo

Hemphill

William S.
Wagenseller

Co., Seattle

Hughes
&

Durst,

Inc., Los Angeles

San Francisco

Philadelphia

ff
Wm. C.Jackson,
First

Jr.

Southwest

J. Earle Jardine, Jr.

William T. Kemble

William R. Staats &

Estabrook & Co.,

Bacon, Whipple & Co.

Robert G. Mead

James J. Lee

Donald E. McFarland

Walter Maynard

Equitable Securities

W. E. Hutton & Co.,

Kalman & Company,

Sliearson, Hammill &

Inc.. Minneapolis

Co., New York City

William H. Morton

Paul L. Mullaney

Chapin S. Newhard

Ludlow F. North

Lee H. Ostrander

Nathan K. Parker

Alfred Rauch

Mullaney, Wells &

Newhard, Cook & Co.,

Robert W. Baird & Co.,

William Blair &

St. Louis

Incorporated,

Company, Chicago

Kay, Richards & Co.,
Pittsburgh

Kidder, Peabody & Co,

Company, Chicago

W.

H.

Morton

&

Incorporated,

Chicago

Co.,

Chicago

New York 'hty

Roddy

City

Boston

Securities Corp.,

James E.

New York

Corporation, Nashville

Co., Los Angeles

Company, Dallas

Ftone & Webster

Quitman R. Ledyard

William D. Kerr

Joseph W. Sener

Robert 0.

Shepard

Scharff & Jones, Inc.,

John C. Legg &

Prescott, Shepard &

New Orleans

Company, Baltimore

Co., Inc., Cleveland




Philadelphia

Milwaukee

Garfield J.Taussig
Taussig,

Day & Co.,
Inc., St. Louis

Eaton

Taylor

Dean Witter & Co.,

San Francisco

Arthur

S.Torrey

W. C. Pitfield & Co.,

Ltd., Montreal

Charles S. Vrtis
Glore, Forgan & Co.

Chicago

Paul E. Youmans
Bosworth,
Co.,

Sullivan

Inc., Denver

Henry J. Zilka
&

Zilka, Smither <6

Co.

Inc., Portland, Oreg.

Volume 180

Number 5386

...

Pictures Taken
At

T.

Jerrold

Bryce,

Clark,

Dodge

&

1

The Commercial and Financial Chronicle

Co.,

New

Schmidt, Schmidt, Poole, Roberts

New

at

Hollywood Beach Hotel, Florida

York City, pinning badge of office on William
& Park2, Philadelphia, incoming President

A.

New

Karl

York;

P

T. McCormick, American Stock Exchange,
York; G. Keith Funston. New York Stock
Exchange, New York

New

Walter

A.




William

Corporation, New
John C. Legs &
Rudolf Smutny,

Governors:

C.

Hammond, Jr., White, Weld & Co., Boston; Lester H. Empey, American Trust Company,
Harold H. Cook, Spencer Trask A Co., New York; James R. Burkholder, Jr., Almstedt
Brothers, Louisville; Orlando S. Brewer, Phelps, Fenn & Co., New York; Harry Beecroft, Beecroft,
Cote & Co., Topeka, Kansas; J. Murrey Atkins, R. S. Dickson A Co., Inc.; Charlotte, N. C.; William
M. Adams, Braun, Bosworth & Company, Detroit; Robert W. Fisher, Blyth & Co., Inc., New York
(not in picture)
San Francisco;

Schmidt, Schmidt, Poole, Roberts & Parke, Philadelphia; Prescott Bush,
Senate; T. Jerrold Bryce, Clark, Dodge & Con New York

Herzer, R. L. Day & Co., New York; William B. Chappell, First Boston
Albert T. Armitage, Coffin & Burr, Incorporated, Boston; Joseph W. Sener,
Baltimore: Joseph T. Johnson, The Milwaukee Company, Milwaukee;
Salomon Bros. A Hutzlor, New York

Company,

Officers:
Robert H. Craft, American Securities Corporation, New York;
Holden K. Farrar,
Smith, Barney & Co., Chicago; John C. Hagan, Jr., Mason-Hasan, Inc., Richmond; Delmont K. Pfeffer,
National City Bank of New York; Ralph E. Phillips, Dean Witter <£ Co., Los Angeles, Vice-Presidents;
Walter A. Schmidt, Schmidt, Poole, Roberts & Parke, Philadelphia, President

New

Governors:

Taylor, Dean Witter & Co., San Francisco; Robert O. Shepard, Prescott, Shepard & Co., Inc.,
Cleveland; Alfred Rauch, Kidder, Peabory & Co., Philadelphia; Ludlow F. North, Robert W. Baud
&
Co., Incorporated, Milwaukee;
Donald E. McFarland, Kalman & Company, Inc., Minneapolis;
Quitman R. Ledyard, Equitable Securities Corporation, Nashville; William D. Kerr,
Bacon, Whipple & Co., Chicago; William T. Kemble, Estabrook & Co., Boston;
J. Earle Jardine, Jr., William R. Staats & Co., Los Angeles

Edward

57

1954 IBA Convention

Eaton

,■

(2509)

•

United

States

Mr.

&

Mrs.

Walter

Roberts

<&

A. Schmidt, Schmidt,
Parke, Philadelphia

Poole,

Walter A. Schmidt, Schmidt, Poole, Roberts & Parke, Philadelphia; Hon. A. D. P. Heeney, Ambassador
of

Canada,

Washington,

D.

C.;

Mr.

&

Mrs.

Hugh

Bullock,

Calvin

Bullock,

New

York;

58

The Commercial and Financial

(2510)

James

mittee,

Chronicle

...

Thursday, December 16, 1954

L- «. Empey, American Trust Company, San Francisco; Julian A. Space, Johnson, Lane, Space & Co.,
Savannah, Ga.; John D. Baker, Reynolds & Co., New York City; T. Jerrold Bryce, Clark, Dodge & Co.,

Lemon, Johnston, Lemon & Co., Washington, D. C., Chairman of the Savings Bend Comreceiving special award from U. S. Treasury Department, presented by David M. Kennedy,
Assistant to the Secretary of the Treasury

H.

New York City.; Eaton Taylor, Dean Witter & Co., San Francisco

"T%\

:'

Mltti

M&Ly.

iwemMm

'MS

III.,

life
"i

Sm M

P M

% 1
Hi
\ S>

T

/

s
,'f

>' '

w

fil

p

'1
*

%

%}

%

■

.

-J?

lip1

i§ii

yjf

*

I

>

fmrn

Hi

w
Mr.
Mrs.

&

Mrs.

Alfred

Arnold
H.

Tschudy, Bank of America, New York;

Hauser,

Chemical

Corn Exchange

Bank,

Mr. &

Robert

M.

York

Harris,

Goldman,

New

Goodwin,

National

National

City

Bank,

New

York;

C.

Edward

Henry L.
Pfeffer,

Mr.

Sachs & Co., New York; Delmont K.
City Bank, New York; K. P. Tsolainos,
Baker, Weeks & Co., New York

&

George, Harriman Ripley & Co., Incorporated, Chicago;
John C. Hagan, Jr., Mason-Hagan, Inc., Richmond

Mrs.

\%
Edward

H. Gunn, Midland Securities

Corp., Toronto; John E. Langdon, McLeod, Young, Weir & Co.,
Toronto; Mr. & Mrs. George C. MacDonald, McLeod, Young, Weir, Inc., New York; Edwin F. Poet,
Burns Bros. & Denton, New York; Robert P. Howard, Gairdner <fi Co., Toronto;
Desmond Magee, Dominion Securities Corporation, New York

Ripley <ft Co., Incorporated, New York; William J. Keary, guest; Edward C. George, Harriman Ripley

Gordon

Francis

B.

Whelpley, Goldman, Sachs & Co., New York; Philip R. Neuhaus, Underwood, Neuhaus &
Charles F. Morgan, Morgan Stanley & Co., New York; Robert H. B. Baldwin, Morgan
Co., New York; Claude F. Turben, Merrill, Turben & Co., Cleveland; John S. Loomis,
Illinois Company, Chicago; Fred T. Rahn, The Illinois Company, Chicago; John H. Brooks,
Putnam & Co., Hartford; Mrs. John H. Brooks; Mrs. Claude F. Turben

&

Co.,

Co., Houston;

York;

Stanley

Becker

The

&




M. Mackintosh, Harriman Ripley

George

Incorporated,

Chicago;

LeRoy

& Co. Incorporated, New

H.

Apgar,

Harriman

Fipley

York; W. Scott Cluett, Harriman

&

Co.,

Incorporated,

New

York

X. Coleman, Gregory & Son Inc., New York; R. George Le Vind, Blyth
& Co., Inc., New
Alan K. Browne, Bank of America, N. T. & S. A., San Francisco; Elmer G. Hassman, A. G.
<ft Co., Chicago; Charles C. Bechtel, Watling, Lerchen & Co., Detroit; Kenneth S. Johnson,

Indianapolis Bond <£ Share Corporation, Indianapolis; Franklin L. Schroeder,
Braun, Bosworth & Co., Toledo
.

I.

Volume 180

&

Mr.

Number 5386

Mrs. H.
<6

Mrs.

Telfer

V.

B.

Co.,

Hanson,

.

.

Gallager, Yarnall, Biddle
Philadelphia

Louis

Toronto;

(2511)

The Commercial and Financial Chronicle

.

Mr. & Mrs. Hugh Bradford, Southwestern Securities Co., Dallas; Mr. & Mrs. Lewis W. Pollok,

Eddleman-Pollok Co., Houston

G. Mudge, International

Bank, New

York;

Mrs. N. D. Young,
Bros. & Denton,
N. D. Young,

Toronto; Earle Gatchell, Hayden, Stone & Co., New York; Telfer Hanson, Burns
Toronto; J. A. Kingsmill, Investment Dealers Association of Canada, Toronto;
Investment Dealers Association of Canada, Toronto

59

Mrs. Walter E. Morse, New York City
Mrs. Frank H. Morse, New York City

Malcolm

Love, Barr Brothers & Co., New York; Leo L. Quist, Harold E. Wood & Co., St. Paul;
Hollan, Barr Brothers & Co., New York; Newell S. Knight; Mercantile Trust Cmpany,
John W. Reno, New York; Richard Morey, A. G. Edwards & Sons, St. Louis; Arthur E.
Goodwyn, Jr., Goodwyn & Olds, Washington, D. C.; Elvin K. Popper, I. M. Simon & Co., St. Louis

John

V.

St. Louis; Mrs.

&

Mr.

&

Mrs. Roland

Merrell,

Lee Higginson

Corporation,

New York

City; Charles A. Capek, Lee Higginson Corporation, Chicago; Owen
Daly, II, Mercantile Safe Deposit & Trust Company, Baltimore




Bo^rd

of

Governors

Meeting

George W. Anderson, Anderson & Strudwick, Richmond, Va.;
Edward C. Anderson, Anderson & Strudwick, Richmond, Va.;
Arthur Robinson, Anderson & Strudwick, Richmond, Va.

John H. Stafford, Jr., Lee Higginson Corporation, New York; Joseph
G. Cross, C. J. Devine & Co., New York City; John W. Reno,
Carl M. Loeh, Rhoades & Co., New York

Federal Legislation Committee breakfast meeting

A

60

The Commercial and Financial Chronicle

(2512)

•.

.......

J.

Emerson

E.

Jansen

Jim

Jr.,

Thors, Kuhn, Loeb & Co., New York;
Hunt, White, Weld & Co., New York

Mr.

&

Mrs. Kurt

H. Grunebaum, New

Turner,

New

York Hanseatic Corporation, New York;
Hanseatic Corporation, New York

Montgomery,

.^PW /nw' NRWLY°irk; J*1"5' ?'dn7 J,oh.r' Jr''

Ala.^^rwm^ WasMngtoiT'D£ ment B™hers




Mr.

&

Mrs. S. Whitney

Thursday, December 16, 1954

Mr. & Mrs. Harold X.

Schreder, Distributors Group,
Incorporated, New York

Bradley, Eaton & Howard, Incorporated, Boston; Robert F. Bender, Wachob-

Bender Corp., Omaha, Neb.; Charles F. Eaton, Jr., Eaton & Howard, Incorporated, Boston;
R. W. Thornburgh, W. C. Thornburgh Co., Cincinnati; Mr. & Mrs. Frank W.

Mr. & Mrs.

North,

Barret,

& Mrs* CharIes S- Vrtis, Clore, Forgan & Co., Chicago; Gordon

Calvert, Investment Backers Association of America, Washington,
District of Columbia

Municipal Securities Committee breakfast meeting

...

.

York

(standing) Edward D. Jones, Edward D. Jones & Co., St. Louis; John D. Baker,
Reynolds & Co., New York; (seated) Robert E. Clark, Calvin Bullock, New York; Edgar J.
Loftus, W. C. Langley & Co., New York; W. Carroll Mead, Mead, Miller & Co., Baltimore;
(missing) John Latshaw, E. F. Hutton & Company, Kansas City, Mo,

Daisy Initiates:

Mr. & Mrs. Arthur C.

vvv

Stock

Fitch, North

&

Co.,

Kansas

City,

Mo,1

Mr. & Mrs. John P. Labouisse, Howard, Weil, Labouisse, Friedrichs

& Co., White, Hattier Mr. & Mrs.New B. Sanford, Jr.,
New Orleans; & Sanford, J. Orleans

Exchange Relations Committee breakfast meeting

Volume 180

Ben

Number 5386

Tobin,
Frank

Mr.

&

Mrs.

Kidder &

&

Ira

Morse,

G.

Securities

National

Mr.

Hollywood
H.

&

..

Beach

.

Edward C. Gray, New York Stock Exchange; Chapin S. Newhard, Newhard, Cook & Co.,
Mrs. Edward C. Gray; Joseph T. Johnson, The Milwaukee Company, Milwaukee

Hotel; Mrs.
City

New York

Jones,

(2513)

The Commercial and Financial Chronicle

National

Securities

&

Research Corporation, Boston; L. L. Moorman,
N. C.; Mr. & Mrs. James C. Warren, A. M.

Research Corporation, Rutherford,

Co., New York; Mr. & Mrs. Henry J. Simonson, National Securities & Research Corp..

Mrs.

New York;

Arthur

Wiesenberger,

Arthur

Wiesenberger

&

Co.,

Mr. & Mrs. Albert R. Hughes, Lord, Abbett & Co., N. Y.




Mr. & Mrs. George
Mr.

&

Mrs.

N. Y.

Mr.

&

Mrs.

Charles

F. Matton,

Mr. & Mrs. Chapin S. Newhard, Newhard, Cook
Co., St. Louis

Mr. & Mrs. Henry J.
Jr., Southern Securities
Co., Savannah, Ga.

Wachovia Bank & Trust Co., Winston-Salem;

Blackford, Jr., A. M. Law <ft Company, Spartanburg, S. C.; Oscar B. Wood,
Corporation, Savannah, Ga.; Frank A. Chisholm, Varnedoe, Chisholm &

Lestrange, Arthurs, Lestrange & Co., Pittsburgh;
R. Chapel, McDonald-Moore & Co., Detroit

Harold

St. Louis;

61

Mr. &
&

Mrs. Joseph H. Fauset, Fauset, Steele & Co.,

Mrs.

Richard W. Wild,

Pittsburgh; Mr.

First California Company, San Francisco

62

The Commercial and Financial Chronicle

(2514)

Mr.

&

Mrs.

Harrison
&

Erwin

...

Clarke, Johnson, Lane, Space

Mr.

Mrs.

&

Thorburn

Hartford;

Co., Atlanta

&

Rand, Rand & Co., New York City; Albert D. Putnam, Putnam &
Mrs. Powhatan M. Conway, Bankers Bond Co., Inc., Louisville, Ky.

Boehlmer, Investment Bankers Association, Washington, D. C.{ Mr. & Mrs. Walter A. Schmidt,
Schmidt, Poole, Roberts & Parke, Philadelphia; Mr. & Mrs. John
Latshaw, E. F. Hutton & Company, Kansas City, Mo,

'i

v:

'

'.

•

'

•

?»

*

•

National Bank, Chicago; John S. Linen,
New York City

Harold J. Schlutei
Chase National BanI
.

William

P.

Mr.'

&

Mrs.

Jesse

Bank,

P. Donnally, Peoples
Charlottesville, Va.

Barrow, Barrow, Leary & Co., Shreveport, La.; Mrs. Albert T. Armitage, Boston;
Sharpe, Mercantile Trust Company, St. Louis; Mrs. Wiliam Russell Barrow, Shreveport;
Albert T. Armitage, Coffin & Burr, Incorporated, Boston

Edward
D.

•

B.
Hall, Foreign Operations Administrator, Washington,
C.; Charles A. Capek, Lee Higginson Corporation, Chicago;
Mr. & Mrs, John F. Bolger, Shillinglaw, Bolger & Co,, Chicago

Emery

Flinn, Oscar
Miami; Miss
The

E.

Dooly & Co., Miami; Mrs. Eloise Budde,
Sybil
Barge, Miami; J. Denny May,
Parker Corporation, Boston

#>•

SW

-4.

National

Russell

William

Co.

Thursday, December 16, 1954

*" ' '

Jknies S. Abrams, Allen & Company, New York;
First

Mr.

...

••••

-n-1

ifjfe

:twk

WMA&

V

i-ism

Z? €

Education

Committee

meeting, W. Carroll Mead, Mead, Miller




&

Co.,

Baltimore, Chairman

Industrial Securities

Committee meeting

/■%

Volume 180

Mr.

&

Number 5886

Mrs.

.

..

Harry L. Sebel, Hugh
Co., inc., Chicago

The Commercial and Financial Chronicle

W.

Long

Willard A. Lynch, W. C.

A

Mr.

&

Mrs.
Mr.

Wm.
&

N.

William

New

Edwards,

Mrs.,Robert

R.

Langley A Co., New York; Mr. & Mr?. Edgar J. Loftus, W. C. Langley <6 Co.,
York; John Brick, Paine, Webber, Jackson A Curtis, New York

William N. Edwards A Co., Ft. Worth,
Gilbert, Jr., First National Bank in Dallas

J.
Roberts, Glore, Forgan A Co., Chicago;
William H.
Watterson, Fahey, Clark A Co., Cleveland; William E. Lucas, Baxter,
Williams
A
Co., Cleveland; W. Shannon Hughes, Raffenspergcr,
Hughes A Co., Indianapolis

Texas;

Mr.

&

Mrs.

Rudolf

Smutny,

Salomon

Bros.

A

Mr.

&

Mrs.

Albert
St.

Hutzler, New

York;

Roberts, Jr., Goodbody A
Petersburg, Fla.

Mr.

&

Mrs.

Robert

E.

63

Co.,

Broome,

Guaranty Trust Company, New York

,

Henry Stravitz, Swiss American Corp., New York; Frank C. Trubee,
Jr., Trubee, Collins A Co., Buffalo; Hale L. Montgomery, Interstate
Securities Corporation, New York; Robert E. Nowlan, Stroud and
Company, Incorporated, New York

Mr. & Mrs. Hugh Bass, Keith Reed A Co., Dallas; Mr. & Mrs. Hunter Breckenridge, McCourtneyBreckenridge A Co., St. Louis; Mr. & Mrs. Wo. Russell Barrow, Barrow, Leary A Co., Shreveport, La.




(2515)

Mr.

&

Mrs.

Mr.

J.
&

Egerton B. Vinson, De Haven A Townsend, Crouter A Bodine,
'Philadelphia; Gordon Crouter, De Haven A Townsend, Crouter A
Bodine, Philadelphia; William L. Liebman, Loewi & Co., Milwaukee;
G. Edward Slezak, Loewi A Co., Milwaukee

Marvin

Moreland, J.

Mrs. Eugene D.

Marvin Moreland

A

Co., Galveston, Tex.;

Vinyard, Central Investmetnt Co., Dallas

64

The Commercial and Financial Chronicle

(2516)

J

R

Startles

Robert

Mr.

W.

B.

&

Fulton

Reid

Mrs.

John

Co

Cleveland;

Mr. & Mrs. Guillermo Rodriguez, Government Development Bank,

Jr., Ira Haupt & Co., New York; Mr. &

Brick, Paine, Webber, Jachson & Curtis, New York;
T. Flynn, Hornblower &
Weeks, New York

Carroll

D.

&

Blyth, National City Bank, Cleveland

Mead, Mead, Miller & Co., Baltimore; Mrs. Roderick
Moore; Henry L. Valentine, Davenport &Co., Richmond;
»
B. B. Munford, 3rd, Davenport & Co., Richmond

Mr. &

Mrs. George

Mrs. Frederick W. Straus, Strove, Blosser

& McDowell, Chicago

Mr. & Mrs. Wm. H. P.

Townsend, £. W. Clark & Co., Philadelphia

George B. Wendt, First National Bank of Chicago; Mary Lincoln,
Investment Bankers Association, Washington, D. C.; Gordon L.
Calvert, Investment Bankers Association, Washington, D. C.

Cleveland; Craig Severance, F. Eberstadt & Co., New York

Mr. &

Thursday, December 16, 1954

Mr. & Mrs. William W. Mackall, Mackall & Coe, Washington D. C.;

%

Mr. & Mrs. James C. Warren, A. M. Kidder & Co., New
York; Mr. & Mrs. Charles L. Hewitt,
Francis I. du Pont & Co., New York; Mrs. Daniel
O'Day, New York; J. R. Staples, Fulton, Reid & Co.,




Puerto Rico; William G. Carrington,

Mrs. Donald R. Bonniwell, Cruttenden & Co., Chicago

...

Alfred
New

Philip
Mrs.

R.

Neuhaus, Underwood, Neuhaus & Co., Houston; Mr. &
B. Dean, Harris, Upham & Co., New York; William
A. Parker, The Parker Corporation, Boston

Howard

J. Ross, Dick & Merle-Smith, New York; A. Peter Knoop, Auchincloss, Parker &
Redpath,
York; Mead A. Lewis, Dick & Merle-Smith, New York; Charles L. Churchill, Scott, Horner &
Mason, Lynchburg, Va.; Edwin B. Horner, Scott, Horner & Mason, Lynchburg, Va.

'
:A.'.s
Volume 160
-

Mr.

&

Mrs.

Number 5386

Kurt

H.

..

Grunebaum,

Hanseatic Corporation,

The
Commercial and Financial Chronicle

.

New

York

W.

L. Lyons,
W. L. Lyons <£ Co., Louisville; Mrs.
Chandler, W. L. Lyons & Co., Louisville; Roderick

New York

Mr. & Mrs. Neill T. Masterson, Jr., Chas. B. White & Co., Houston; Mr. & Mis. W. C. Jackson, Jr.,
Southwest Company, Dallas; Mr. & Mrs. Thomas Beckett, First Southwest Company, DJUa.;

First

T. Masterson, Jr., Chas. B. White & Co., Houston;

Mr. & Mrs. Neil
Mr.

(standing)

&

Mrs.

Hugh

Bass,

Robert H. Cook,

Rank
Newark.
Bank, Newark,

N.

J.;

Keith

Reed

&

Co.,

Dallas

B. J. Van Ingen & Co., Inc., Miami; Alex Seidler, Jr., National State
E. Tomasic, Thomas & Co., Pittsburgh; Merrill Freeman, Salomon
^
H
FJdredge & Co., New York

(seated) Richard N. Rand, Rand & Co., New York City; Robert K. Halloran, Robert
New York City; Monroe V. Poole, Geo. B, Gibbons & Co., New York City;
Dempsey, B. J. Van Ingen 4 Co., Inc,t New York City




Roderick
D.

Moore,

D.

Moore; Mr. & Mrs. James W.
Branch, Cabell & Co., Richmond

Wmthrop & Co.,

L. Walter

Mr.

& Mrs. Wilbur Hess,

65

Fridley & Hess, Houston

Mr. & Mrs. Seymour Fabricant, Wm. E. Pollock & Co., New York City; H. Albert Ascher, Wm. E.
Pollock & Co., New York City; Mr. & Mrs. William E. Pollock, Wm. E. Pollock & Co., New York City

Mrs. Walter H. Stohl, Drew Stohl, Beverly Stohl, Walter H. Stohl,
Fidelity Union Trust Company, Newark, N. J.

Anthony

&

(251?)

Mrs.

Richard

Rand, New York; Mrs. Alex Seidler, Jr., Newark, N. J.; Mrs. Merrill Freeman,
Mrs. L. Walter Dempsey, New York City; Mrs. Robert K. Halloran, New York City;

N.

New York City;

Mrs

Mr. & Mrs. C. T. Williams, Jr., C. T. Williams & Co., Baltimore;
Mr. & Mrs. Karl P. Herzer, R. L. Day & Co., New York City

E. H. Hills, New

York City; Mrs. A. E. Tomasic,

Pittsburgh; Mrs. M. V. Poole, New York City;

66

(251$)

The Commercial and Financial Chronicle

John

P. Labouisse, Howard, Weil, Labouisse, Friedrichs & Co., New Orleans; Mr. & Mrs. G.
Shelby
Friedrichs, Howard, Weil, Labouisse, Friedrichs & Co., New Orleans; Mr. & Mrs. Edward D. Muir,
Muir Investment Corp., San Antonio; David F. Anderson, Muir Investment Corp., San Antonio

William

Shawell, Shawell & Company, Houston, Texas; Walter A.
Schmidt, Schmidt, Poole, Roberts & Parke, Philadelphia; Edwin
B. Horner, Scott, Horner &
Mason, Inc., Lynchburg, Va.

James

F.

Jacques,

Samuel

L.

Graham

Wayne R. Benzing, Granbery, Mat-ache & Co., New York; William
Bradschamp & Company^ Houston; Arthur J. C. Underbill,
Arthur Wieseniberger & Co., New York

Fla.;

Mary Lincoln, Investment Bankers Association, Washington; Mrs. Warren
Gould, Investment Bankers
Association, Washington; Mr. & Mrs. Dudley C. Smith, Investment Bankers
Association, Chicago;
Mr. & Mrs. Jentry S.
Holmes, Investment Bankers Association, Washington

Theodore

Mrs.

A.

Mrs.

Edward

J.

St.

Thursday, December 16, 1954

Walker, New York; Jerome F. Tegeler, Dempsey-Tegeler &
P. Sharpe, Mercantile
Trust Company, St. Louis; Mr. &
Arthur Quinn, Quinn & Co., Albuquerque, N. Mex.

Wm.

J. Sloan,

First Southwest Company, Dallas; Mrs. Edward B. Wulbern,
Jacksonville,
Varnedoe, Varnedoe, Chisholm & Co., Savannah, Ga.; W. Marshall Schmidt,
Drexel & Co., Philadelphia




Mrs.

...

Co.,

St.

Louis;

Mrs.

Earle

A.

Gatchell, Hayden, Stone & Co., New York; Mr. & Mrs. Robert
Podesta, Cruttenden & Co., Chicago; Theodore C. Henderson,
T. C. Henderson & Co., Inc., Des Moines
it

Von Glahn, Benjamin J. Levy, Theodore A. Von
Glahn, Mrs. Harry
Benjamin A. Levy, Harry Brown, Mr. & Mrs. Merrill Freeman,
all of Salomon Bros. &
Hutzler, New York

Brown,

Meyers, Laidlaw <£ Co., New York; Bert Horning, Stifel, Nicolaus & Co.,
Incorporatedt
Louis; Joseph A. Glynn, Jr., Blewer, Heitner & Glynn, St. Louis; Frank L. Lucke,
Laidlaw & Co., New York City

Volume 180

Number 5386

.

.

.

(2519)

The Commercial and Financial Chronicle

(standing)

Henry R. Hallowell, Hallowell, Sulzberger & Co., Philadelphia; Todd Cartwright, Swcney, Cartwright
& Co., Columbus, Ohio; Mrs. John J. Clapp, New York; E. Jansen Hunt, White, Weld <£ Co., New
York; Mrs. Alfred J. Ross, New York; Ewir.g T. Boles, The Ohio Company, Columbus, Ohio;
Mrs. Charles S. Barrington, New York

J.

Smith, Weeden & Co., New York; John L. Gaerste,
Co., Hartford; G. Leonhard Boveroux, Robert Garrett &
Raymond D. Stitzer, Equitable Securities
Corporation, New York

Raymond

Cooley

&

Sons, New York;

Mr.

&

Mrs.

Walston

Co.,
&

S

Hueh

L.

Churchill, Scott, Horner
Peoples
National

Trainor,

Jr
Ira Haupt & Co., New York; Graham
Bradford
Dallas- Arthur Quinn, Quinn &
Zilka, Smither & Co., Inc.,
'




Burr, Incorporated, Boston; Mrs. Albert T,.
Inc., New York; Arthur S. Torrey, W. CBoston (seated) Mrs.
Miss Lila Lee Hillbom

Harold

R.

McDonald-Moore & Company, Detroit, Mich.;
Norris & Hirschberg, Inc., Atlanta; James S.
Citizens & Southern National Bank, Atlanta;
Ralph
W.
Simonds, Baker, Simonds & Co., Detroit

James

W.

Budd,

Chapel,

Jr.,

Speas,

Mr. & Mrs. Ewing T. Boles, The Ohio Company, Columbus; Mr. & Mrs. Albert T. Armitage,
Coffin & Burr, Incorporated, Boston; Mr. & Mrs. Henry Hallowell, Hallowell, Sulzberger & Co.,

Philadelphia; Mr. & Mrs. Jesse A. Sanders, Sanders & Newsom, Dallas, Texas

Walker, Joseph McManus & Co., New York; '

Co., Albuquerque, N. Mex.; Henry J. Zilka,
Portland, Oregon

&

Mason, Lynchburg, Va.;
Bank,
Charlottesville,
Va.;
& Co., Richmond;
Co., Richmond

&

Beverley B. Munford, 3rd, Davenport
Henry L. Valentine, Davenport &

Lees, Jr., Ira Haupt & Co., New York City; Mr. & Mrs. Donald Caldwell,
New York City; Eugene Lynn, Wertheim & Co., New York City;
Mrs. Russell Siefert, Stern Bros. & Co., Kansas City, Mo.

Lees

Leon

Coleman

Mr. & Mrs. Edward S. Amazeen, Coffin &
Edward S. Johnston, Wood, Gundy & Co.,

Co., Montreal; Albert T. Armitage, Coffin & Burr, Incorporated,
Arthur S. Torrey; Mrs. Edward S. Johnston; Mrs. Leslie Simmonds, Miami;
Pitfield

Leo* S.
&

Mr.

Mrs

Charles

Armitage;

67

(

Mr. & Mrs. Ewing T. Boles, The Ohio Company, Columbus, Ohio; Murray Hanson, Investment Bankers
Association, Washington, D. C.; Mr. & Mrs. Walter A. Schmidt, Schmidt, Poole, Roberts & Parke,
Philadelphia

68

The Commercial and Financial Chronicle

(2520)

John Small, John Small &

Mr.

Va.;

Jacksonville,

Co., New York; Edwin B. Horner, Scott, Horner & Mason, Inc., Lynchburg,
Donald Green, Glore, Forgan & Co., New York; Edmund C. Byrne, Byrne & Phelps, New York;
John Fitterer, Kuhn, Loeb <6 Co.. New York

Charles

H.

Phillips,

Loomis,

First

National

Thomas

E.

Mr.

Mr.

&

Bank,

St.

Paul;

Guybert

Caldwell-Phillips Co., St. Paul; Joseph P. Condon,
&
Condon, Chicago;
Arthur G. Field,
McDougal & Condon, Chicago

Dougal

&

M.
Mc-

Eaton

Taylor, Dean

Witter <ft Co., San

Francisco;

Mr.

Matlock, Broad Street Sales Corp., New York; Mrs. Malon
Mrs. George A. Newton, G. H. Walker & Co., St. Louis

&




Alden

Be

John

Little, Investment Bankers Association, Hollywood, Fla.; Mrs. Clyde C. Pierce,
Mr. & Mrs. Edward Wulbern, Pierce, Carrison, Wulbern, Inc., Jacksonville;
H.
George Carrison, Pierce, Carrison, Wulbern, Inc., Jacksonville

J. Sullivan,
W.

Courts,

Atlanta;

Joseph T. Johnson,
Albert

Thursday, December 16, 1954

Mrs.

Long & Co., Inc., Chicago

Mrs.

.

H.

Fla.;

BoswortH, Sullivan & Co., Denver; Harry L. Sebel, Hugh

King, Dempsey-Tegeler & Co., Chicago; Mrs. George M. McCleary, St. Petersburg, Fla.;
Podesta, Cruttenden & Co., Chicago; Mr. & Mrs. Donald B. Stephens,
Cruttenden & Co., Chicago

Woodford

Mrs.

Mr.

Mrs. Robert A.

Mrs.

&

..

T.

Gilbert

Hattier, Jr., White, Hattier & Sanford, New Orleans, La.;
Rucker Agee, Sterne, Agee & Leach, Birmingham,
Ala.; Jesse P.
Donnally, Peoples National Bank, Charlottesville, Va.; F. Vincent
Reilly, Commercial & Financial Chronicle

Milwaukee;

Armitage, Coffin

John
&

F. Bauman,

The Milwaukee Co., Milwaukee;

Burr, Incorporated,

Boston;

Chapin

S.

Mr.

&

Mrs.

Newhard,

Newhard, Cook & Co., St. Louis

Mrs.

Charles

Trust

Carey, Chicago; Mrs. A. G. Pickard, Chicago; Mr. & Mrs. Hardin H.
Savings Bank, Chicago; A. G. Pickard, Burns, Corbett & Pickard,

«ft

Hawes,

Chicago

Harris

Volume 180

Number 5386

.

.

.

(2521)

The Commercial and Financial Chronicle

R.

George Le Vind, Blyth & Co., Inc., New York; Arthur E. Goodwin, Jr., Bowles, Winston & Co.,
Houston; Carr Payne, Cumberland Securities Corporation, Nashville; C. A. Schoeneberger, Central
Republic Company, Chicago; Kenneth H. Wood, J. C. Bradford & Co., New York City;
Carl H.
Doerge, William J. Mericka & Co., Cleveland; George P. Kenny, Willis, Kenny & Ayres, Richmond

Paul

L.

Mullaney, MuT.aney, Wells & Co., Chicago; Mr. & Mrs.
E.
Lucas, Baxter, Williams & Co., Cleveland;
Peter A.
Knoop, Auchincloss, Parker <£ Redpath, Washington, D. C.

William

Mr.

&

Mrs.

&

F. Lyne,

Rauscher,

Mrs.




Walter,

Woody

&

Mr.

&

Mrs.

Norman W.

Co., Philadelphia;

E. Ray

Paul

Heimerdinger,

Cincinnati,

Ohio;

Francis

X.

Coleman,

& Son, New York City; E. J. Altgelt, Jr., Harris Trust & Savings Bank, New York;
Marx, Bear, Stearns <ft Co., New York; John S. Linen, Chase National Bank, New York;
Herman M. Magnus, Magnus & Co., Cincinnati

Mercantile National Bank, Dallas; Charles C. Pierce,
& Co., Dallas; Walter H. Weed, Jr.,
Securities Corporation, New York

D. Boynton, Hallgarten & Co., New York; Mrs. Joseph W. Sener, Baltimore;
Morgan, Jr., Baltimore; Mr. & Mrs. Harold G. Laun, F. S. Moseley & Co., Chicago;
B. Dean, Harris, Upham & Co., New York; Erwin R. Schweickhardt,
Schweickhardt & Co., New Orleans

Howard

Heimerdinger,

Gene

Pierce

Craigie, F. W. Craigie & Co., Richmond, Va.; Mr. & Mrs. Alfred H. Hauser,
Exchange Bank, New York; E. J. Altgelt, Jr., Harris Trust & Savings Bank, N. Y. C.

Elwood

C. Gerard

M.

Gregory

H. Sheldon Parker, Kay, Richards <£ Co., Pittsburgh; Murray Hanson,
Investment Bankers Association, Washington, D. C.; Nathan K.

Parker, Kay, Richards <ft Co.,

Union

Walter W.

Mrs.

Chemical Corn

Mr.

Lewis

Jack

69

Hunter, Camp &

Mr. &

Pittsburgh

Co., Portland, Oreg; Harry B. Snyder, Yarnall, Biddle
Mrs. Alfred R. McBride, Wright, Wood & Co., Philadelphia

&

Allen, E. Ray Allen <£ Co., Chicago; C. A. Schoeneberger, Central Republic Company, Chicago;
Fairchild, First Boston Corporation, Chicago; G. Edward Slezak, Loewi & Co., Milwaukee;
W. Simmons, Blunt Ellis & Simmons, Chicago; D. Dean McCormick, McCormick & Co.,
Chicago; Edde K. Hays, Central Republic Company, Chicago

W.

Richard

70

A.

(2522)

G.

City,

Mrs.

The Commercial and Financial Chronicle

Pickard, Burns, Corbett & Pickard, Chicago; Victor H. Zahner, Zahner <ft Company, Kansas
Mo.; Harry Beecroft, Beecroft, Cole & Co., Topeka, Kans.; Duane T. Smith, Small-Milburn
Company, Inc., Wichita, Kans.; Frank C. Carr, John Nuveen & Co., Chicago

W.

Bankers

Neal
Trust

Fulkerson, Jr., New York; Floyd F. Stansberry,
Company, New York; Mr. & Mrs. Monroe V. Poole,
Geo. B. Gibbons & Co., New York

Sidney J. Mohr, Jr., Thornton, Mohr & Co., Montgomery, Ala.; F. Monroe
Alleman, Leedy, Wheeler &
Alleman, Orlando, Fla.; Loomis C. Leedy, Jr., Leedy, Wheeler & Alleman,
Orlando, Fla.; Edward B.
Wulbern, Pierce, Carrison, Wulbtrn, Inc., Jacksonville; Charles F. Conners, Pohl &
Co., Cincinnati,
Ohio; E. M. Bancroft, Stranahan, Harris & Co., Toledo; Kenneth S. Johnson,
Indianapolis Bond <fi
Share

Corporation, Indianapolis; Richard Morey, A. G. Edwards A Sons, St. Louis




Thursday, December 16, 1054

John T. Knox, Federal Land Banks, New York; John F. Egan, First California
Company, San Francisco;
Charles H. Loomis, First National Bank, St. Paul; James M. Powell, Boettcher and
Company, Denver;
Hugh Bullock, Calvin Bullock, New York City; Robert E. Clark, Calvin
Bullock, New York Citv

Mr. & Mrs. William C. Porter, Dittmar & Company, San Antonio;
Mr. & Mrs. John W. Pancoast, Dewar, Robertson <ft Pancoast,
San Antonio

Joseph L. Morris, Robinson-Humphrey & Company, Atlanta; Mr. & Mrs. James S. Budd, Jr., Citizens
& Southern National Bank, Atlanta; Mr. & Mrs. J. Hollis
Austin, J. W. Tindall & Company, Atlanta

...

Mr.

&

Mrs.

James

H.

Harvey B.

Milton G. Hulme, Glover & MacGregor, Inc., Pittsburgh; Henry R.
Hallowell, Hallcwell, Sulzberger & Co., Philadelphia; Mrs. David
H.

Callaway,

Jr.,

New

York

City

Lemon, Johnston, Lemon & Co., Washington, D. C.; Mr.
Gram, Jr., Johnston, Lemon & Co., Washington, D. C.

&

Mrs.

Henry R. Bishop, Fordon, Aldinger & Co., Detroit; Arthur
Quinn, Quinn & Co., AJbuquerque, N. Mex.;
Herbert R. Anderson, Distributors
Group, Incorporated, New York; Ralph Fordon,
Fordon, Aldinger
<fc
Co., Detroit;
John
L.
Ahbe, Distributors Group, Incorporated New York;
Graham
Walker
Joseph McManus & Co., New York; Harold X. Schreder, Distributors
Group, Incorporated
New York; Timothy H. Dunn, Southwestern Securities
Company, Dallas;
Hugh Bradford, Southwestern Securities Company, Dallas

Volume 180

Number 5386

..

.

(2523)

The Commercial and Financial Chronicle

N.

Richard

Rand, Rand & Co., New York; Arthur R. Robinson, Anderson
Strudwick, Richmond;
Dempsey, B. J. Van Ingen & Co., Inc., New York; Harold E. Leaf, R. D. White & Co.,
New York; Monroe V. Poole, Geo. B. Gibbons & Co., New York; Edward H. Hills, Eldredge & Co.,
New York; Robert V. Wehrheim, Philadelphia National Bank, Philadelphia
L.

Walter

.

R.

George

Roddy,

Le

Blyth & Co., Inc., New York City; James E.
& Jones, Inc., New Orleans; Orlando S. Brewer,
Phelps, Fenn & Co., New York

Vind,

Scharff

Bank

&

A.

;

Dunn, C. J. Devine & Co., New York City; Mr. & Mrs.
Company, Winston-Salem, N. C.; Mr. & Mrs. Lewis

&

Mrs.

John

H.

Middlemist,

Mrs.




National

Bank,

Mr.

&

Mrs.

P.

Sharpe,

Delmont
K.

P.

K.

Mercantile Trust Company, St. Louis; Mr. &
Pfeffer, National City Bank of New York;
Baker, Weeks & Co., New York

Tsolainos,

C. MacDonald, McLeod, Young, Weir, Inc., New York; Mr. & Mrs. Fremont
B. Ashplant & Co., New York; Edwin F. Peet, Burns Bros. & Denton, New York;
Burns Brothers <ft Denton, Toronto; Mr. & Mrs. W. Harold Robertson,
Spence & Co., Toronto; Ed. H. Gunn, Midland Securities Corpn., Toronto;
Desmond Magee, Dominion Securities Corporation, New York

George

Robson, F.
&

Mrs.

Mills,

Minneapolis

Cleveland; Mr. & Mrs. Howard Finney, Jr., Bear, Steams
Dana F. Baxter, Hayden, Miller & Co., Cleveland;
Philip F. McLellan, Fifty State Street Company, Boston

Elbridge S. Warner, Hayden, Miller & Co.,
& Co., New York City;
Mr. & Mrs.
Mr. &

Northwestern

Mr.
W.

William
Mrs.

Jacobs, Jr., Bache <& Co., New York; Mrs. S. H. Sampliner

Trust

Mr.

Green, Guaranty Trust Company, New York; Donald C. Patterson, Chemical Corn Exchange
Bank, New York; Edward J. Meyers, Laidlaw & Co., New York; John C. Clark, Wachovia Bank &
Trust Company, Winston-Salem, N. C.;
Wesley G. Schelke, Seattle First National Bank, Seattle;
Charles F. Matton, Wachovia Bank & Trust Company, Winston-Salem, N. C.

J. Bradley

S- H- Sampliner, Bache & Co., Cleveland; Mr. & Mrs. Harry A.

Charles F. Matton, t'/achovia
Pollok, Eddleman-Pollok Co.,
Houston; Charles H. Loomis, First National Bank, St. Paul; Mrs. Stewart A. Dunn; George J. Schaust,
First National Bank, Minneapolis; Mr. & Mrs. Paul F. Eves, Fidelity Trust Company, Pittsburgh;
Stewart

71

Frederick

Telfer Hanson,

J. Bolton,

Muir Investment Corp.,

Chase National
St. Louis; Joseph A. Glynn, Jr.,

San Antonio, Tex.; Robert L- Hatcher/-

Bank, New York City; Mrs. Frederick J. Bolton; Mrs. Andrew S. Mills,
Blewer, Heitner & Glynn, St. Louis; Mrs. William A.

Happ, New York

\
72

The Commercial and Financial

(2524)

{My}*#:?.--./>%&>%/'£■

■■■■'■-•

W

.

It

Chronicle

...

Thursday, December 16, 1954

--y,

|

r

'W.X.yy/' ■;

tii

flilil

ill
-i

riiitli

mk

.P/Xk
iwm

.

gplfMgl

ii.v

s#i

ilia

L-

11111
Mr.

&

Mrs.

Reynolds

&

Clyde C. Pierce, Pierce, Carrison, Wulbern, Inc., Jacksonville,
Co., New York; Mrs. Edward Wulbern, Jacksonville, Fla.;
T. C. Henderson & Co., Inc., Des Moines

Fla.; John D. Baker, Jr.,
Theodore C. Henderson,

Ludwell

A. Strader, Strader, Taylor & Co., Lynchburg; J. Creighton Riepe, Alex. Brown <£ Sons,
Baltimore; Allen M. Terrell, Girard Trust Corn Exchange Bank, Philadelphia; William N. Murray, Jr.,
Illinois Company, Chicago; C. Gerard Morgan, Jr., John C. Legg & Company, Baltimore

mm

an**-




B.

Corp.,Jan Antonio; Mrs. H. George Carrison,

Wulbern, Jacksonville, Fla.; (seated) Mrs. Warren D.
Courts, Atlanta; Mrs. G. Shelby Friedrichs, New Orleans

Andrew

K.

Miss Natalie Hulme; Mrs. Milton G. Hulmt:
New York; Mrs. Pat G. Morris, Chicago;
Marchwald, Discount Corporation of New York, New York City

Sidney L. Parry, De Coppet & Doremus, New York; Leonard J. Paidar, Goodbody
Reginald P. Rose, De Coppet & Doremus, New York; Frank E. Voysey, Kidder,
Chicago; Walter V. Moffitt, Kidder, Peabody & Co., New York

&

Co., Chicago;
Peabody & Co.,

Mtf «■■■■■■■■lf/«W mm

- -

P^nC' Ma8hS!Ie; ^M* SitlSe* -J' M°hr' {rA Montgomery, Ala.; Mrs. Clyde C. Pierce,
Jacksonville, Fla.; Mrs. Edward Muir, Muir Investment
Jacksonville, Fla., Mrs. Edward
Omaha; Mrs. Malon C.

Milton G. Hulme, Glover & MacGregcr, Inc., Pittsburgh;
Mr.
&
Mrs. Daniel
O'Day, Northern Trust Company,

Chiles,

Harold G. Laun, F. S. Moseley & Co., Chicago; Edward J. Jennett, First National
Mrs. Harold G. Laun; Matthew J. Hickey, III, Hickey & Co., Chicago; Mr. & Mrs.
Television

Shares

Management Corp.,

Chicago

Bank,

1

Chicag

Paul A.
*

Just!

Volume 180

Edward

Herbert

Curtis,
J.

D.

Number 5386

..

.

Jones, Edward D. Jcnes & Co., St. Louis; Paul B. Hanrahan, Hanrahan & Co., Worcester,
Mass.; Mr. & Mrs. Milton F. Lewis, Ira Haupt & Co., New York
'
'

Dewitz, J. A. Hogle & Co., Salt Lake City; Arthur W.
A. G. Becker & Co., Inc., Chicago; Kenneth J. Howard,
Hogle & Co., New York City; George M. Mackintosh,
\

A.

Harriman Ripley

& Co., Incorporated, New York City

(standing) George B. Gibbons, Geo. B. Gibbons & Co., New

Allen

C.

William

Du

M.

York; W. Shannon Hughes, Raffensperger,

Charles

Roberts,

M.

Mrs. J. Murrey

Boston; Malcolm F.
Denver; Edward J. Costigan,
Gerald P. Peters,
Peters, Writer & Christensen, Inc., Denver

Werly,

Putnam Fund Distributors,

Garrett-Bromfield

Edward

D.

Jones

&

&

Co..

Co.,

St. Louis;

Wilson, Newburger, Loeb & Co., New York; Benjamin F. Peyser, Newburger, Loeb & Co.,
York; Harold W. Clark, Clark Landstreet & Kirkpatrick, Nashville, Tenn.; Frank A. Chisholm,
& Co., Savannah; William A. Devlin, Reynolds & Co., New York City; (seated)
Mr. & Mrs. Milton F. Lewis, Ira Haupt & Co., New York; William G. Carrington, Jr., Ira
Haupt & Co., New York; George H. Armstrong, New York Hanseatic Corp., New York

Alfred G.
New

Dean Witter & Co., San Francisco;
Fay, Hooker & Fay, San Francisco;
New York

73

Co., Charlotte, N. C.

Varnedoe, Chisholm

V. Poole; Mrs. L. Walter Dempsey

Bois, Wertheim & Co., New York; Eaton Taylor,
Witter, Dean Witter & Co., Chicago; Charles W.
James J. Lee, W. E. Hutton &. Co.,




Atkins, R. S. Dickson &

M. Wilde, Janney & Co., Philadelphia; John F. Bunn, Jr.,
Bioren & Co., Philadelphia; Morris Lloyd, Drexel & Co., Philadelphia;
Gordon Crouter, De Haven & Townsend, Crouter & Bodine,
Philadelphia

Inc., Los Angeles; Robert
Gibbons & Co., New York;
Floyd F. Stansberry, Bankers Trust Company, New York; L. Walter Dempsey, B. J. Van Ingen & Co.,
Inc., New York; (seated) Mrs. Edward H. Hills, New York; Mrs. George B. Gibbons, New York;
Fulkerson, Jr., New York; Mrs. Monroe

Mr* & Mrs* Edward A. Uhler, R. S. Dickson & Co., Inc., New York; Mr. &

Bertram

Hughes & Co., Indianapolis; William S. Hughes, Wagenseller & Durst,
L. Hatcher, Chase National Bank, New York; Monroe V. Poole, Geo. B.

Mrs. W. Neil

(2525)

The Commercial and Financial Chronicle

Mr.

&

Mrs.

A. E. Ames

Frank

G. Weller,

Wisener

& Co., Toronto; Mr. & Mrs. William M. Alley,
Robert P. Howard, Gairdner & Co., Toronto

& Co., Inc., New York City;

;

74

(2526)

Donald

S.

Kennedy, Stetson Securities Corp., New York
City;
Cahn, Jr., Henry Herrman A Co., New York City;
Cluett, Harriman Ripley A Co., Incorporated, New York
City; John S. Hilson, Wertheim A Co., New York City

William
W.

The Commercial and Financial Chronicle

M.

Scott

David B. McElroy,
J. P. Morgan A Co., Inc., New York; E. J.
Altgelt, Jr., Harris Trust A Savings Bank, New York; W. Neil
Fulkerson, Jr., Bankers Trust Company, New York; Edward McGrew,
Northern
Trust Company, Chicago;
G. C. Stevenson, Bacon,
Stevenson A Co., New York

.

.'I

,,

•.

'

Thursday, December 16, 1954

Sidney L. Parry, Dc Coppet A Doremus, New York; Stephen
McKecn,
Chas.
W.
Scranton
A
Co.,
New
Haven;
Herbert
Anderson, Distributors Group, Incorporated, New York;
Frank L. Newburger, Jr., Newburger A Co., Philadelphia

G.
R.

W

Mr.

&

Mrs.

John

Latshaw, E. F. Hutton A Company, Kansas City, Mo.; Graham
Walker, Joseph
Co., New York; Mrs. Richard K. Buechler; Mr. & Mrs. Hugh
Bradford, Southwestern
Company, Dallas; Mrs. Timothy H. Dunn; Mrs. Graham Walker; Richard K.
Buechler,
E. F. Hutton <fi Company, New York;
Timothy H. Dunn, Southwestern Securities Company, Dallas
McManus

A

Securities

Mrs. John

C.

City;

Hagan, Richmond, Va.; Mrs. James J. Lee, New York
W. T. Kemble, Estabrock A Co., Boston;
Mrs. William
Rex, New York

(standing)
A

Howard Butcher III, Butcher A Sherrerd, Philadelphia; Robert W. Ewing, A. E. Masten
Co., Wheeling, W. Va.; Ernest Dorbritz, Moore, Leonard A
Lynch, Pittsburgh;
Frederick T. Seving, Butcher A
Sherrerd, Philadelphia; Mrs. Robert
W. Ewing; Mrs. Howard Butcher
III; Mrs. Frederick T. Seving

Mr. & Mrs. David

Mr.

Mrs.

York

McElroy, J. P. Morgan A Co., Inc., New York City;
George Aldrich, Boston; Forrester A. Clark, H. C. W ainwright
A Co., Boston

&

Mrs.

City;
Louis

Wm. B. Chappell, First of Boston
Corporation, New
Edward Glassmeyer, Blyth A Co., Inc., New York
City;
Walker, G. H. Walker A Co., Hartford, Conn.

mm

•M* m*
....

(standing) Philip Neuhaus, Underwood, Neuhaus & Co.
Hcuston; Henry L.
Valentine, Davenport
Co., Richmond, Va.; Miss Shirley Spiers, Hollywood, Fla.; R. C.
Chapman, Fulton, Reid & Co.,
Cleveland; Wallace C. Latour, Merrill Lynch, Pierce, Fenner &
Beane, New York; Charles F Morgan
Morgan Stanley & Co., New York; John C
Hagan, TI
Mason-Hagan, Inc., Rkhmond;
Mrs. Albert Augustus,
Cleveland; Elbridge S. Warner, Hayden, Miller &
Co., ClevelandAlbert Augustus, Ball, Burge &
Kraus, Cleveland; Mrs. John C. Hagan
111;
Robert H. B. Baldwin, Morgan
Stanley & Co., New York City
&




if

(seafed)

(standing) James C. Ward, Third National Bank, Nashville; Warren D. Chiles, Chiles-Schutz
Co.,
Omaha; O. B. Wood, Jr., Southern Securities Corp., Savannah; Clyde C.
Pierce, Pierce, Carrison,
Wulbern, Inc., Jacksonville; Harold W. Clark, Clark, Landstreet &
Kirkpatrick, Nashville; Gus G.
Halliburton, Equitable Securities Corporation, Nashville; Edward D. Muir, Muir Investment
Corp.,
San Antonio;
(seated) Gordon Whelpley, Goldman, Sachs & Co., New
York; Sidney J. Mohr, Jr.,
Thornton, Mohr A Farish, Montgomery; B. W. Landstreet, 3rd, Clark, Landstreet A
Kirkpatrick,
Nashville; Edward B. Wulbern, Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla.; Samuel L.
Varnedoe,
Varnedoe, Chisholm A Co., Savannah; Malon Courts, Courts A Co., Atlanta

Volume 180

Mrs.

Number 5386

Myron F. Ratcliffe;
Mrs.

Alfred

J.

.

.

.

Mrs. Robert O. Shepard, Cleveland; Mrs. William S. Hughes, Los Angeles;
Stalker, New York; Myron F. Ratcliffe, Bache & Co., Chicago;
Frank

Voysey,

Kidder,

Peabody

&

Co.,

Chicago

K. Buechler, E. F. Hutton & Company, New York; Mrs. Harley
Rankin, Philadelphia; Howard Butcher, 3rd, Butcher & Sherrerd,
Philadelphia; Mrs. Francis M. Brooke, Jr., Philadelphia

R.

(standing)
Corp.,

Mr

&

Collier '

San

Mr.

,

&

Charles

Mrs

Robert

L.




F. Eaton, Jr., Eaton & Howard, Incorporated, Boston; Mrs. Harry W. Hurry; Mr. & Mrs.
Whitney Bradley, Eaton & Howard, Incorporated, Boston; Stephen Whitcomb, Eaton & Howard,
Incorporated, Boston; Harry W. Hurry, Bingham, Walter & Hurry, Pasadena, Calif.

Paul A. Just,
Television Shares Management Corp.,
Robert O. Shepard, Prescott, Shepard & Co., Cleveland;
L. Churchill, Scott, Horner & Mason, Inc., Lynchburg

Osgood, Vance, Sanders <ft Company, Boston; Mrs. & Mrs. H. B. Norris,
Montreal; Mrs. & Mrs. Alec B. Stevenson, Vance, Sanders & Company,
Mrs. John A. McCandless, Vance, Sanders <fi Company, Boston

75

Charles
S.

Mrs.

Chicago;

E. Jansen Hunt, White, Weld & Co., New York; David F. Anderson, Muir Investment
Antonio; (seated) Mrs. Robert M. Clark; Andrew M. Baird, A. G. Becker & Co., Inc.,
Chicago; William J. Roberts, Glcre, Forgan & Co., Chicago;
Robert M. Clark, Blunt Ellis & Simmons, Chicago

Norris & Quinlan,
Nashville*
Mr.
&

(2527)

The Commercial and Financial Chronicle

(seated)
Arthur

Mr. &

D.

Mrs. Wilfred

C.;

Robert

L. Goodwyn, Jr., Gocdwyn & Olds, Washington
L. Hatcher, Chase National Bank, New York;
Courts, Courts
Co., Atlanta

Malon

Ralph Fordon, Fordon, Aldinger & Co,, Detroit; Mrs. Harry L. Sebel, Chicago;
Mrs.
A. Christophel, St. Louis; Henry Bishop, Fordon, Aldinger & Co,, Detroit;
(standing)
Christophel, Reinholdt & Gardner, St. Louis; Harry L. Sebel, Hugh W. Long
<£ Co., Chicago; F. Warren Pershing, Pershing
& Co,, New York

Arthur A.

Mrs. Paul B. Hanrahan; Mr. & Mrs. John Swaney, Keystone Company, Boston; Paul B. Hanrahan,
Hanrahan & Co., Worcester, Mass.; Mr. & Mrs. Harold H. Huston, Harold E. Huston <£ Co.,
Seattle; Mr. & Mrs. Charles J. Fleming, Hanrahan & Co., Worcester, Mass.

76

The Commercial and Financial

(2528)

(standing)
Southwest

Mrs.

Robert

B.

Dixon, McDaniel Lewis & Co., Greensboro, N. C.; Arthur
Greenville, S. C.; Edgar M. Norris,
Greenville, S. C.; Mark A. Smith, F. W. Craigie & Co., Richmond, Va.

Mr. & Mrs.

Miles

ment

The

Kentucky

Company,

Mrs. W.

Edward D. Muir, Muir Investment Corp., San Antonio; Frederick J. Bolton, Muir Invest¬
Corp., San Antonio; Charles M. Webster, J. M. Dain & Co., Minneapolis; H. Wilson Arnold,
& Crane, New Orleans;
(seated) David F. Anderson, Muir Investment Corp., San Antonio;
Mrs. Frederick J. Bolton; Mrs. Edward D. Muir; Donald E. McFarland, Kalman &
Co.,
Minneapolis;

L.

Clifford
Mrs.

C.

Mrs.

H.

Wilson

Arnold

Collings, Jr., C. C. Collings & Co., Philadelphia; Mr. &
V. B. Gallager,
Yarnall, Biddle & Co., Philadelphia;
W. Craigie & Co., Richmond, Va.

Herbert

Walter W. Craigie, F.

Mr.

& Mrs. Russell Siefert, Stern Bros. & Co., Kansas City, Mo.? Mr. & Mrs. Hunter
Breckenridge,
McCourtney-Breckenridge & Co., St. Louis; Edward J. Costigan, Jr., Edward D. Jones & Co., St. Louis

Louisville

Wells Laud-Brown, New York; William H.
Moore, Bankers Trust Company, New York; Wells
Laud-Brown, Bankers Trust Company, New York; Mrs. William H. Moore; Franklin
Stockbridge,
Security First National Bank, Los Angeles

Mrs.




Thursday, December 16, 1954

Arnold

Mrs.
Myron
F.
Ratcliffe,
Chicago;
Mrs.
R.
W.
Thornburgh,
Cincinnati; Mrs. Roy Doolittle, Buffalo; Mrs. William S. Hughes,
Los Angeles

A. Watkins, Jr., Stubhs, Smith &
Lombardo, Inc., Birmingham; Mr. &
Lyons, W. L. Lyons & Co., Louisville; Mr. & Mrs. Holman R.
Wilson,

...

(standing)

J. Marvin Moreland, J. Marvin Mcreland & Co., Galveston; Thomas M. Beckett, First
Company, Dallas; Mrs. W. C. Jackson, Jr.; Earl G. Fridley, Fridley & Hess, Houston;
F. Jacques;
(seated) James F. Jacques, First Southwest Company, Dallas;
Mrs. Thomas M. Beckett; Mrs. Earl G. Fridley; Mrs. J. Marvin Moreland;
William C. Jackson, Jr., First Southwest Company, Dallas

James

C. McCall, Alester G. Furman Co.,

Chronicle

John

/

E.

Hopkins, J. P. Morgan & Co., New York; Charles L. Bergmann, R. W. Pressprich
New York; Albert J. T. Woll, E. M. Newton & Co.,
Boston; Francis D. Bartow,
Bartow, Leeds & Co., New York; Mrs. John J, Clapp, New York

&

Co.,

Volume 180

Number 5386

.

.

.

The Commercial and Financial Chronicle

Julien H.
&

Collins, Jr., Goldman, Sachs & Co., New York; Mr. & Mrs. Julien H. Collins, Julten Collins
Company, Chicago; Mrs. Hugh Bullock, New York; Edward B. Hall, Foreign Operations
Administrator, Washington, D. C.; Mrs. Pat Morris, Chicago

Edward
B.

H. Robinson, Schwabacher & Co., New York City; Herman
Joseph, Joseph, MeLen & Miller, Cleveland; Clement A. Evans,
Clement A. Evans & Co., Atlanta;
Charles L. Bergmann,
R. W. Pressprich & Co., New York City

Mr.

&

Mrs.

Cornelius

Dudley,

Securities

Mr.

C.

Gerard

New

York;

Morgan, John
Mrs.

Orlando

&

Mrs.

Peter

C. Legg &

Kilburn, Greenshields & Co., Monlrcal

Company,

Baltimore;

Orlando S.

Brewer, Phelps, Fenn & Co.,
Mrs.

George B. Kneass; Joseph W. Sener, John C. Legg & Company, Baltimore;
S» Brewer;
George B. Kneass, Philadelphia National Bankp Philadelphia




Mr. &

77

Mrs. Roland

Merrell, Lee Higignson Corporation, New York City; Mr. & Mrs. Julian A. Space,
Johnson, Lane, Space & Co., Savannah; Mr. & Mrs. Thomas M. Johnson,
Johnson, Lane, Space & Co., Savannah

Shields, Shields & Company, New York City; Albert R.
Hughes, Lord, Abbett & Co., New York City; John N. Mitchell,
Caldwell, Marshall,
Trimble <Q
Mitchell, New York;
Harold H.
Huston, Harold H. Huston
&
Co., Seattle

Dawson, Dawson, Hannafcrd Limited, Montreal; Mr. & Mrs. N. D. Young,
Corporation, Toronto; Mr. & Mrs. H. B. Norris, Collier, Norris & Quintan,
Montreal; Bradshaw D. Firstbrook, Greenshields & Co., Montreal; Jack Kingsmil., Investment Dealers
Association of Canada, Toronto; James D. Hannaford, Dawson, Hanna crd, Inc., New York;

Dominion

(2529)

Wilbur

Hess, Fridley & Hess, Houston; John W. Kriet, Dewar,
& Pancoast, San Antonio; Henry W. Putnam, Association
Exchange Firms, New York; William Gregory, 3rd,
Bonner <6 Gregory, New York

Robertson
of

Stock

(Front) Mrs. A. E. Tomasic, Pittsburgh; Mrs. David H. Callaway, Jr., New York; Mrs. James M.
Heller, New York; Mrs. Frank C. Carr, Chicago; tRear) David H. Callaway, Jr., First of Michigan
Corporation, New York; Denton Hall, R. L. Day & Co., New York; Edward D. McGraw, Northern
Trust Company, Chicago; Frank D. Farrell, City National Bank & Trust Co., Kansas City; John T.
Knox, Federal Land Banks, New York; Henry Earle, First of Michigan Corporation, Detroit;
James M. Heller, Shearson, Hammill & Co., New York City

Mrs, Julien H. Collins, Chicago; Mrs. Winthrop C. Lent, New York; Norman Smith, Merrill Lynch,
Pierce, Fenner & Beane, New York; Julien H. Collins, Julien Collins & Co., Chicago; Winthrop C. Lenz,
Merrill Lynch, Pierce, Fenner & Beane, New York; M. J. M. Cox, Curtiss, House & Co., Cleveland

78

(2530)

The Commercial and Financial Chronicle

"Why don't

.

..

Thursday, December 16, 1954

talk to the people at Chase?"

you

"More than 750 companies are now using Chase
as their stock Transfer
Agent or Registrar."

"That sounds good, Ed. I think I'll
look into it."
"Do that, I'll bet you'll find, as we did,
that it pays to do business with Chase."

"Bill, how

can you

think of business

"Doesn't it take longer to have an

on a

trip like this?"
mind. You know, we put our stock on
the market last year after 30 years of

private ownership. Now it
half my

seems

I spend

time writing letters to stock¬

holders. Never realized what

a

nuisance

services.

"Believe me, Bill, I've got
that one—take your

Chase National

we've

transfer job for
never




had

a

the

troubles to

Bank has
a

"Why, Bill, it takes Chase far less time
to handle

answer to

an

expert.

handled

long time

worry."

now,

our

and

our

a

couple of blocks of

both

the

Stock

big scale. Most of

our

transfers get

"How much does this cost, Ed?"

"Surprisingly little! As
actually saved

money

a

matter

when

trying to do the job ourselves."

f

Transfer

Department,

It pays to do business with Chase

Big Board and the American

through in 24 hours."

we

stock transfer and registrar

Stock

11 Broad Street, New York 15.

Exchange. Chase is geared for the job

a

on

Address:

transfers than it used to take

Chase is within

us.

on

stock transfers could be."

stock

Write for booklet

agent do the job?"

"Sorry, Ed. Can't get the office off my

we

of fact,

stopped

THE

Chase
NATIONAL
OF

THE

[member

CITY

OF

BANK
NEW

YORK

federal deposit insurance

corp.]

j

Volume 180

Number 5386

...

The Commercial and Financial Chronicle

(2531)

'Continued from page 31

of Mr. J. Earle Jar
dine,
liam

Group, Mr.
(Fahey, Clark and
Co., Cleveland), Chairman, Legis¬
lation

Committee, Northern Ohio

Croup,
(The

Mr.

Stanley G. McKie
Roth & Irving Com¬

Weil,

sideration

member of the Legislation Com¬
of the Ohio Valley Group,

mittee

IBA

and

At

this

cluded

meeting

that

the

it

was

most

con¬

satisfactory

Securities

sales

to

Act

exempting
"sophisticated

specified

buyers"

(such

surance

banks

as

companies)

and

se¬

in stockholders' derivative ac¬
tions may, on motion of defen¬

court

actual

an

not

be

situs

in

the

state

from

Committee
of

commends

the

Northern

the

Ohio

Croup and the Ohio Valley Group
and the Chief and Assistant Chief

of the Ohio Division of Securities
for their efforts to obtain a solu¬
tion

to

this

minimize
without

problem

which

will

regulation

unnecessary

lessening protection to in¬

(e) Harvard Law School Study of
State Securities Regulation:
Harvard

probability

a

is

Law

School

has

upon

based.

While

management

suits,"' it

of

intangible personal
not
having
an
actual

property

statute

deny
IV

mittee of the City Council

York

the

3%

would

financial

investment

Gustave

Alexisson

a

York

of the

California

to

access

the

court

against

to

just

a

a

com¬

management,

study

be

and

vi

given

■.'

Uniform

busi¬

originally

Code

approved

governed

by

"negotiable

(Gran-

Editorial
sioners

that

Code

as

.there

was

Article

instruments,"

Board

of

the

Uniform

on

that

recommended

Group of the IBA,

proposed

question whether securities

some

were

the

so

Commis¬

State

Laws

Article

be

8

mitted
new

(section

by

that

Article

tiable instruments.

the

to

legislature

be

the

effect

grant from the Merrill

a

Foundation

to

make

study of
state securities regulation. In
gen¬
eral, it is planned that this study
a

will include detailed analyses and
breakdowns of existing state se¬

curities acts and

regulations

thereunder

the

of

drafts

which

and

of

state

the preparation of

securities

securities

be used

may

law

Conference

of

preparation

as

a

acts

basis for

a

uniform state

by the National
Commissioners on

tax

which

transactions

An

assist

in

this

study

in¬

cludes representatives of the

are

nego¬

Since the pro¬

Conference

of

Commis¬

sioners on Uniform State Laws,
SEC, National Association of Se¬
curities

Administrators

and

posed Commercial Code

A

bill

York

passed

would

tion

by

have

of

this

the

posal

are

was

pleased

that

rejected, and

the
we

pro¬

included

com¬

units

at

the

in

to this

tables

units

by applying
the

to

total

Uniform

Legislation

the

Committee

&

new

Commercial

any

the

of

Code

con¬

to include

section, section 8-105).

*

of

Group

(Wagenseller

adoption

tain Article 8 amended

under the
Chairmanship of Mr. Frank Dyer,

Los

proposing

that

sure

Durst,

Inc.,

Angeles), with the assistance

It is expected that the proposed
Uniform
Commercial
Code
will
be

submitted

to

the

legislatures

of several states in 1955.

has
or

not taken

The IBA

position favoring

a

opposing adoption of.the Code.

been

The Annual

time

(for
of

(2) the
type annu¬

such

bonds

as

and

annuity

the

assets

all

of

times

in

common

stocks

listed

exchange, that
the

that not

should

only in

on

(for

no more

stock

common

than

10%

invested

of

any

companies).

Michigan:

(for

insurance

any

operation

instalment

plan
for

and
a

would

insurance

sized

con¬

cash surrender

New

Jersey:

(for

New York:

(for savings banks).
(for fiduciaries).

value up to

or

the time annuity pay¬
begin or the annuitant dies
annuity payments for life,
for a term certain or for joint

Virginia:
A

summary

of

these

metns is contained in

amend-

Appendix: B.

sion

Merchants," with hemp, hams,

wheat, "segar" tobacco, and

lot of

a

or

has been directed to the difficul¬
because

of

the

imposition of inheritance taxes by
a

state upon

rities
such
are

in

of

state
the

decedents.

the transfer of

issuers

when

ties

such

we

in

our

We

facilities and

helping with

your

in¬

problems.

have changed over into the banking and
Main Office

investment business.

25 Broad Street

New York 4, N. Y.

rec¬

ommends that the simplest way to
minimize this problem is to obtain
the inclusion of reciprocal exemp¬

tion provisions in the inheritance
tax laws of the various states. The

inheritance tax laws of many states

Branches
"

LAIPLAW

>.*:>>>*

-

•.v.<-.vv/':'.;./( *?;

,.

-

*■

-

--

✓

.

arGl#1

..vv-

>
-

-

to

judgment,
sense.

started business. In the

non-resident




our

hundred and twelve years since, we

securities

Committee

enjoy putting

vestment

one

ours, seems

integrity, and good horse
abilities to work

That's how

IBA

Counsel

the
on

meetings
Chairman of

was

this

the subject of "Co¬

Between

the

Commissioners

the

on

Securi¬

regulation

Boston, Mass.

Washington, D. C.

Oil City, Penna.

Bloomfield, N. J.

Toronto, Ont.

Montreal, Que.

Princeton, N. J.

in the

Continued On page

from the trust and confi¬

dence customers have in

secu¬

incorporated

estates of

The

business like

reasonable prices."

State Inheritance Taxes

encountered

a

would

The attention of the Committee
ties

Growth, in

result directly

other commodities "for sale at fair and

III

Group,

of the persons engaged

for

Wheat
"In 1842, this firm's business shingle
'would have identified us as "Commis¬

local

ments

savings

banks).

the

group

greater emphasis by

& Good Sound

com¬

of

many

and

Con¬

by IBA Presi¬

the NASA."

com¬

(for

Mississippi:
panies).

as

the IBA and
This address empha¬
desirability
of
co¬
operation between the two asso¬
ciations
and
the
importance cf

one

V a r i a b 1 e annuities
could be purchased by either
a
single premium payment or on an
company).

tain options

Sky Law Com¬
held at the Roose¬

luncheon

by

Committee

Hemp & Hams

panies).

.*

members,

The principal address at ore
the

given

of assets

in

well

States

tee.

than

should be held and

more

be

of

com¬

insurance

Securities.

and the Chairman of the Commit¬

amendments

(for fiduciaries).

of

whose

attendance at the

as

Bryce,

tral

com¬

national

a

Columbia:

Massachusetts:

Securities?

officers of
the
IBA, the Chairman of the
Legislation Committee of the Cen¬

surance

Louisiana:

of

Meeting of the Na¬

was

Governors

(it is proposed that invest¬

ment should be made
mon

dent

variable

a

would be fully

company
at

vention,

at¬

(for in¬
companies).
Kentucky: (for fiduciaries).

again

the state Blue

sioners in

mortgages

legal investment
insurance

that

expected

Hotel in New York City ca
Sept. 27-30.
An informal party
was given for the Commissioners
by the IBA and was attended by
practically all of the Commis¬

actu¬

number

panies).
District

is

introduced

Association

missioners,

laws of the following states:
Arizona:

it
be

Administrators

II

to the

if
an

VIII

Legal Investment Laws
have

will

National Association

lems.

year

taken

'

.

There

what,

be

Legislature, and.
perhaps in other states, in 1955.

torneys who have had wide ex¬
perience in blue sky law prob¬

this

Committee

in the New York

ity companies are invested princi¬
pally in conservative investment

company

be

should

because

bill

the

purchased), and

of conventional

one

bills

Statutory Provisions Relating to

California

certain

This

velt

determined

arial

of

to

bers

be

5%

V

The

printed

in¬
many

this proposal, but we do want to
flag it for the attention of mem¬

are

important

proposal.

the

small

action

any,

he receives payment (the number
of units received each year would

stock

industry for

their successful opposition

a

embracing

the

pe¬

obviously

yet, concluded

Administrators,

amendments recommended by the
Editorial Board, it is extremely

mend Mr. Alexisson and the other

organizations

in

Article

not

value

stocks

pamphlet

has.

buyer of a variable
purchases
"units" \ (or

invested

to

cf

inflationary

considerations.

crea¬

annuity would differ

those

number

problems and

many

tional

8

Article

to

amendment

during
proposal

the

of

payments
with the cost cf

fixed

a

shares) and is guaranteed only the

8

amendment

the

volves

Annuity

a
conventional
annuity
mainly in that (1) the buyer of a
conventional annuity • is guaran¬
teed that annuity payments will
be, a fixed number of, dollars,

whereas

and

but

Dewey

thorized to issue variable annuity
contracts.

annuity

is that they

dollar

vary

provide

This

Corporation of America."
This
corporation would have been au¬

whereas

annuities

riods.

New

year

Governor

"Variable

A variable

in¬

company
most persons who

provide

income

the

authorized

the

tax:

who

persons

dollars which represent less "real"

Legislature
vetoed

ta*

living, while conventional annui¬

Annuities

which

con¬

present

considerable

a

over

would

ties

Variable

Pur¬

annuity

under

over

variable

would

that

agents.

directly in common stocks.
principal argument in favcr

The

of

de¬

VII

quent

to

business

and

in that state.

was orig¬
inally printed without the subse¬

is
We

IBA,
NASD, American Bar Association, Jr.
National

applied

financial

Stockholders Actions

Advisory Committee estab¬
to

of

be

concerns."

Uniform -State Laws.

lished

would

*

sirability of adoption of the Code

•

received

invest

annu-

public

investment

shares and

consulted immediately

determine

in

to the

variable

obtain

vest

Variable

sold

insurance
of

advantage

(1)

be

would,

laws,

designate clearly that securities
by that Article are ne¬
gotiable instruments and (2) local
to

by

chasers
tracts

to

counsel

would

only

effect

governed

assets

erned

City of New York, urged the
Finance
Committee
"to
disap¬
prove any extension of the sales

would

the
section be added to Article 8

of

adding thereto a new
8-105) .<to desig¬
clearly that securities gov¬

nate

Committee of the City Council of

ities

gov¬

and concepts. We
urge that in any
state in which the Code is sub¬

section

the

stdtes

many

life and survivor.

com¬

changes in the present law

amended by

letter to Mr. Edward A. Cun¬

ningham, Chairman of the Finance

a

transactions

from

Commercial

Article ;8 :.of: the
Uniform
Commercial

commercial

in

great

this

to
•

In

bery, Marache & Co.), Chairman
of the Legislation Committee of
the New

the

'!t.

nesses.
This proposal was vigor¬
ously opposed by organizations in
the investment banking
industry.

Mr.

and

provide

body of state law

new

erning

was

problem.

which
transactions
in

and

"strike

consensus

that

have

services,

include

itself

the Committee recommended that

City Sales Tax

commercial

from

Code would

Group

protect

the

was

further

of the

would

Legislation

might work in practice to

plaint

A proposal to the Finance Com¬

extended

to

stockholder who had

Proposal to.Extend New York City
Sales Tax Rejected

New

the

harassment

Committee

situs in that state.

of

in support of the
which the motion

The

plete

recognized
that
some
means
should.be available to corporate

in¬

or

hearing

a

Committee of the California

against

respect

in

vestors.

The

transfer

after

that the defendant has established

shall

heritance taxes of every character

to

officers

determines

if the transferor grounds

payable

exempted

registration requirements
Ohio Securities Act.
The

the

dants, be required to deposit secu¬
rity for .reasonable costs if the

City

the

of

ers

already contain reciprocal exemp¬
provisions providing that the
imposed by the act on intangi¬
ble personal property not having

curity registration and the dealer
of

834

tax

in¬

from the

section

tion

way to resolve the problem would
be to obtain an amendment to the

Ohio

to

provides that plaintiff stockhold¬

in

Counsel.

Jr. (Wil¬
Co., Los Ange¬

&

California Corporation Code which

pany, Cincinnati), Chairman, was at the time a resident of a state
legislation Committee, Ohio whose law contained a reciprocal
Valley Group, Mr. Frank Musrush exemption provision under which
(The Ohio Company, Columbus), non-residents of that state were
■a

Staats

les), Chairman of the California
Group, have given extensive con¬

State Legislation Affecting
Securities Business
•ernor,
Ohio Valley
John S. Clark

R.

79

se-

SO

-

80

The Commercial and Financial Chronicle

(2532)

Continued

from

there

79

page

sis upon

To facilitate further
between

the

NASA

the

the President of the NASA
the past year

Commissioner

Securities

during

of

Min¬

nesota) appointed an IBA Liaison
Committee. Members of this Com¬
mittee

with representatives
during the meeting in
York
to
discuss
possible
of cooperation and recom¬
met

of the IBA
New
areas

mended

that

the

Committee

be

Securities to

Minors

Legal complexities involved

in

gifts of securities to minors have
undoubtedly deterred many per¬
sons from making gifts of securi¬
ties

to

minors

and

have

designates (the holder
of this power to be called the cus¬
todian of the securities).
approved

securities

of

Finally,
tion

on

"Members

minor

a

if

there

tion

is

and the parent has not
appointed as legal guardian
of the minor (with the possibility
no

May 21:

sell securities held in
of

name

a

of

Group Legisla¬

Committees

should

be

ap¬

pointed with a view to obtaining
continuity in service by mem¬

trust

been

can

be help¬

time

any

in

legislation

state

problems.

Respectfully submitted,
STATE LEGISLATION

COMMITTEE
Paul L. Mullaney, Chairman

Mullaney, Wells & Company
Chicago

content of which

prescribed requirements
registered by notification, was
amended so that securities may be

prescribed by any provision

registered by notification if issued

bers of such committees so that

Granbery, Marache & Co.
New York

Addison

W. Arthurs

ards of form

or

of

the

information,

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WELLINGTON
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|

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Commissioner

to

of

25602

addition to, in some cases, a
copy of the circular to be used
for the public offering):
"(1) Form A, Uniform Appli¬

cation, to be obtained from the
Commissioner.

"(2) Statement showing aver¬

Corporation

Boston

least

Townley W. Bale
Dean Witter & Co.

amended

was

securities

25602.

agent,

No

other

or

broker,
shall use

company,
person

"(3)

concerning
security sold or offered for
sale by it unless a true copy of
filed

John W. Clarke

Clarke, Incorporated

Chicago
Frank Dyer, Jr.
Wagenseller & Durst, Inc.
Los Angeles

in

the

office

missioner at least
to the use;

of

a

"(4) Certified copy of articles
of incorporation and all amend¬

com¬

ments, if applicant is

day prior
advertise¬

an

this section is
in any case in

required

which the commissioner has

Sherman Ellsworth
Wm. P. Harper & Son & Co.
Seattle

sion

of

the

or in the
advertisement con¬

of
cerning

to

other remunera¬
paid in connection
with the offering and sale of the
securities
sought to be regis¬

advertisement,

case

and

tion

use

consented to the

or

guaranteed by the United States

Stanley G. McKie
The

Weil, Roth & Irving Co.

Cincinnati
Scott &

District

of Cglumbia,

"(6) Any other information or
required by the

documents

"Provided, that in lieu of the
^information required for regis¬
tration by notification in para¬

nicipality,

Richmond

therein.

'

■

graphs (1) through (6) of this
Sub-section, the issuer or dealer

Gilbert II. Osgood
LOUISIANA

Blunt Ellis & Simmonst

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■laiiiiiiNiiiHii

■■•■■■■■■■■■■■■«

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Chicago

The

Ralph Owen

Equitable Securities Corpora¬
tion, Nashville
Carr Payne
Cumberland

Securities
poration, Nashville

Cor¬

as

(1) In section

51.^07

a

28,

with

authorizing

St. Louis

a

filed

and

.

be

United

deemed

ance

(c)

"person"

with

the

Securities

Exchange. Commission

the

n^ification:

ing securities issue&by

copy of his

information in connection there¬

•

registration oL certain classes
by

file with the Commissioner
application and all

may

Act

July

(a) Subdivision $L(1), authoriz¬

Eckhardt-Petersen & Co., Inc.

prospectus from.PHILADELPHIA 3, PA.

1954,
the

Securities

effective
follows:

of securities

Joseph G. Petersen

1928

Louisiana

amended

was

1

Commissioner.

by

or

any

be

tered.

or

State, territory, county, mu¬
or
ta.xing district

any

Stringfellow

only securities issued

of America, or any territory or
insular possession thereof, or by
the

Joseph J. Muldowney

any

The amount of commis¬

"(5)

au¬

thorized

articles in his office.

of said

ment pursuant to
not

a corpora¬

tion, and certificate of Secretary
of State attesting to recordation

except that the filing
of such

copy

of the
one

/

filing such balance sheet.

the advertisement has been first

Cleveland

filed.

is

Balance sheet of its as¬

ninety days prior to the date of

any

\

immediately

sets and liabilities not more than

advertisement

any

years

authority to offer and sell such

language:

Butcher & Sherrerd

two

preceding the year in which ap¬
plication for registration of and

Seattle
W. W. Keen Butcher

annual net earnings for at

age

effective April 20, 1954, to read as
follows by adding the underlined

Code

Commissioner

the

with

filed

(in

California

the

White, Weld & Co.

John W.

provide that the following must

be

CALIFORNIA

Section

register securi¬

to

by notification, was amended

ties

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FOUNDED

section B, specifying the informa¬
tion which must be filed with the

disclosed

as

requirements.

(b) The first paragraph of sub¬

issuer, is sub¬
stantially equivalent in infor¬
mative value to that prescribed
under
Section 53-1407(A)
(3).

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scribed

determine the nature and scope

Detroit
"■"■■■aiaaiaaaHnaiwiaiwia

by

dicate

istration, the registration or the
renewal of registration of secu¬
rities by qualification; provided,
however, that the Director shall

Baker, Simonds & Co.

aaaMaaBaBaaaaaaaaaaaaaBaaaaBBBj|H^M ^^^^^■■■ainiiaaaiaaiiaaaiaia
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a "person, corporation, part¬
nership, association, company, syn¬
or trust" meeting the pre¬

1933, or
rules and regulations .promul¬
gated thereunder, may be ac¬
cepted as a prospectus in lieu of
that which is prescribed in Sec¬
tion 53-1407(A) (3) in connec¬
tion with an application for reg¬

Arthurs, Lestrange & Co.
Pittsburgh
J. Thomas Baldwin

William L. Hurley

■••■.■■■■■■■■■aasaaaaaoaaaaaaaaa •■"522

to be

offering circular, the stand¬

in respect to any

Gustave A. Alexisson

Fahey, Clark & Co.

direct your atten¬
resolution unanimously
we

adopted by the Committee at its
meeting at White Sulphur Springs

may be made, and brokers are in
a
dilemma
when requested
by
the

to

to how it

as

sug¬

offers to be of assistance

John S. Clark

Conclusion

es¬

and

welcomes

Philadelphia

red-tape

tablish trusts through which gifts

parents to

constitute

minors

to

problem.

a

caused

luctant to take the trouble to

or

giver

who have made
to minors.

parent

close relative of the child whom

the

for others
gifts of securities
Many persons are re¬

unnecessary

proposed

a

this proposal in
principle and, while certain tax
aspects of the proposed statute
may require clarification, we rec¬
ommend
that
consideration
be
given to adoption of this proposed
statute in any state where gifts

IX

Gifts of

a

We

continued.

'

statute
other
adult to make a gift of securities
to a child with the power of man¬
agement reserved to the giver or
problem.
The
would permit

Committee

gestions

change has prepared a draft of a
proposed statute to remedy this

IBA

(Mr. Ofstedahl, the

conclusion, the State Legis¬

qf
which shall
sufficient compli¬

States,
a

with said paragraphs."

The

first

sentence

of

Charles C. Pierce

i

Rauscher, Pierce & Co.
Dallas

Robert A. Podesta

Cruttenden & Co.

Chicago
Leo

fJdodwi

OiM\

d

M

Harold E. Wood & Co.
St. Paul

f

•

Harold E. Waeckerle

Lucas, Eisen &
Inc., Kansas City

Massachusetts Investors

O

..

Bond Series

-

%%■

L. Quist

Waeckerle,

•

Balanced Series

Preferred Stock Series

% Income

Series

Harold D. Writer

Growth Stock Fund

# Stock Series

Peters, Writer & Christensen,
Inc., Denver

Speculative Series

Massachusetts investors Trust

appendix a
"

"

• Growth Stocks Series

.

Summary of Amendments to
Securities

\

State

Acts—1954
Information Folder and

ARIZONA

Century Silares Trust

The Arizona Securities Act
amended

effective

by adding thereto
providing:

Canada General Fund

April
a

new

3,

was

S:

Prospectus

on

Request

NATIONAL-SECURITIES & RESEARCH CORPORATION
120 Broadway, New York 5/N. Y.

1954,

section

1

Ufie

Bond Fund
OF

A prospectus

EATON & HOWARD

tl.

BALANCED

FUND

eaton

VANCE, SANDERS & COMPANY
111

DEVONSHIRE STREET

|>i

Broadway




a r d

,

BOSTON

333

Montgomery Street

...

BOSTON
NEW YORK

& ril o
INCORPCE&ATE.D

24 Federal Street
BOSTON

STOCK FUND
Managedby

relating to the shares of any of these separate
be obtainedfrom authorized dealers or

investment funds may

\

EATON & HOWARD

t

BOSTON

CHICAGO

izo South LaSallc Street

LOS

1954

meeting

A prospectus or

Sec. 53-1426.
an

of the Securities Act of

ful

liability if the child after be¬
coming oi age rescinds the trans¬
action). The New York Stock Ex¬

cooperation

and

members
who have

are

lation

of

regulation of individual

be

In

at

issues of securities.

always

committees

had experience in the legislative
problems of their group."

State Legislation Affecting
Securities Business
curities business and less empha¬

will

such

on

Thursday, December 16,

...

ESTABUSkEIX

SAN

1924

ANGELES

FRANCISCO

aio West Seventh Street

Prospectuses from

your

Investment Dealer

or

the above.

.

the

Volume 180

third
the

Number 5386

paragraph from

..

The Commercial and Financial Chronicle

.

of

the end

missioner
stances

further

certain

under

to

require

of

registration of securities
by notification and to suspend the
right to sell securities registered

by

Securities

the

with the

amended

was

"application

and

such

accompany

said

notification,

Application,
of docu¬

copies

ments which have been filed with

information in connection

substitute

Uniform

A,

shall be submitted in all cases, and

circum¬

filing

the

proviso: "provided, however, that
Form

section, authorizing the Com¬

to

Exchange

and

(c) The fourth paragraph from
the

of

end

amended to

sup¬

j

Commission of the United States."

section

was

(2533)

inserting

by

"including

limitation

those

section

and

11

without

provided

in

11A to

sections

inclusive.".//'

for

E,

T

J

Subsection 3(e), exempting

certain

sales

curities

by

security

holders

corporation

their

or

provided there be

no

(5) Former subsection 4(h), ex¬
setts

corporation

Massachu¬

a

whose

author¬

Department
ess

clause of the 14th Amendment

to

the

of

standing securities other than cap¬

assigns

payment of

promotion fee or payment of
salary, commission or expense

ital

stock did not exceed $25,000
(not applicable to securities of a
corporation having capital stock

porting documents" for "statement

missioner "shall at all times have

any

circular" and to substitute "ap¬

the right to require the filing with
the Commissioner of any and all

to any broker or salesman in con¬

were

,

supporting

docu¬

therewith,

amended

was

ments" for "statement" where that

documents

term last appears

pertinent in connection with any

applicable if there is "compensa¬

application."

tion

in the sentence.

The last paragraph of the section,

relating to registration fees,

was

"statement.".

necessary

and

(d) The second paragraph from

also amended by substituting "ap¬

plication" for

deemed

the

'

of

end

the

section

was

amended to increase the minimum

"

(d)

The

Section
the
of

last

minimum

securities

$10

to

paragraph

amended

was

fee

to

for

of

the

fee

increase

and to

by notification from
and to increase the

$25

registration

qualification

by

registration

for

of

securities

from $25

$50

to

increase the maximum fee

for such

registration from $200 to

/

(3)

section

In

51:710,

relating

to the registration of dealers and
(2) In section 51:708, providing salesmen, the third paragraph from
for registration of securities by the
end
of
the
section
was
amended to increase the fee for
qualification:
A
.

,

,

that the exemption will be

so

.

item (9) was inserted
to include among the information

registration

which the Commissioner may re¬
quire to be filed with him "Any

for dealers and from $5 to $10

(a) A

\

other

new

information

or~>

renewal

for each annual

and

thereof

salesmen.

from

$25

$50

to

for

vision

that

the

for

documents

required by the commissioner."

3(e), 3(f) and 3(h)
"corporation" shall include any

organization

having

transferable

shares.

The Massachusetts

<b) The fifth paragraph from
the end of the section, authorizing

Act

the Commissioner to accept a copy

Securities

1, 1954, as follows:

of

the

all

registration

other

statement and

information

in

was

amended

effective

Sept.

3

security holders does not,

will

not

in

of

consequence

a Massachusetts cor¬
"where
the
aggregate

poration

raised

amount

and

sale

exceed

by such issuance
prior sales does

all

and

twenty-five thousand

(relating to exempt sales)

(4) Subsection 3(h), formerly
exempting any sale to a registered

was

amended, to make it clear that

ex¬

empt

the

para¬

graphs

(1)

through

section,

was

amended by adding a

pf

of

and

dollars."

tion therewith filed with the SEC

(10)

ber

(1) The first sentence of section

connec¬

of compliance with

(3) Subsection 3 (f), exempting

not

in

lieu

„

sales of its securities by a Massa¬
chusetts corporation if the num¬

securities by

MASSACHUSETTS

'

the

sales

are

prohibitions

exempt

and

from

of

restrictions

section 11 and sections 11A to HE,

as

broker
tional

bank,

ings bank

sale

trust

or

of

to

securities

a

was

salesman

or
a

be

j

RESERVES:

INCOME:

ofC anada, JLtd.
A

objectives'of

Series B-l

.•

Series B-2, B-3, B-4,

j

for

"two

GROWTH:

5eries K-2, 5-3, 5-4

Tlie
50

records;

Investment

long-term

mailed

evidence
of

said

shall
of

be

prima facie

such

mailing. One
copies of such process,

certified by the secretary of the
commission as having been

by

served

upon

him, shall be suf¬

ficient evidence of service upon
him under said power of attor¬

The court in which the

ney.

tion is

pending

common¬

reasonable opportunity to defend

(8) Section 10

was

also amended

the

action."

by adding at the end of the second

paragraph
were

thereof

the

MISSISSIPPI

following

sentences

(these sentences
added because provisions of

section 10

providing for service of

on

the

Secretary

of

Section

5380

of

the

Mississippi

Securities Act (exempting certain

Continued

the

on

page

sav¬

"Any

com¬

192 5

cfi

THE COMMON

and

STOCK FUND
A Diversified Investment

Canadian Laws

j

local Investment dealer

Companies

NVESTORS

★

or

THE CAPITAL

Keystone Company of Boston

Congress Street

GROWTH FUND

Boston 9, JVtass.

★

THE FULLY
ADMINISTERED FUND
A Balanced Fund
★

BULLOCK FUND

THE INSTITUTIONAL

CANADIAN FUND
A

Mutual Investment

Fund

High-Grade Bond Fund
★

NATION-WIDE SECURITIES




A

BOND FUND

DIVIDEND SHARES

THE GENERAL

Prospectus

BOND FUND
A Good-Grade

from

Diversified Bond Fund

Calvin

1894

Boston
^

Denver

CALVIN
London

investment

be obtained
dealers

or

/hcuhitiis.I.3

THE

PARKER

CORPORATION

Los Angeles

Chicago

New York

may

Bullock

Established

Philadelphia
St. Louis

,

For
17

Prospectus

on

these and

Industry Classes write to

San Francisco

BULLOCK,Ltd.
Montreal

Distributors Group,
63 WALL STREET,

Incorporated

NEW YORK 5, N. Y.

ac¬

order such
continuances as may be neces¬
sary
to afford the defendant
may

Incorporated 1933

Company seeking

CAPITAL GROWTH

and

him to mail such
that such copy has been

SECURITIES, INC.

in Listed

your

so

wealth."

i

Prospectus- from

copy,

responsible persons"

citizens of the

on

fully managed Canadian

certain TAX BENEFITS under

K-l, jS— 1 and 5-2

commission's

at

appearing

authorized by

amended to sub¬

was

"two

defendant

as

affidavit of the secretary of
or of any person

»

ion the applicant is honest and of

stitute

of said

registered

£F/i e 5
GROUP

the

to

:

commonwealth that in their opin¬

good repute,

one

the commission

FOUNDED

Keystone Fund

Witt, the investment

an

certificate of two citizens of the

*
Custodian Funds

the

stricken.

accompanied

the

of

company,

broker, national bank, trust

Ke

addressed

his last address

-

■-

process

exempt
to

the commission

under

copies by mail, postage prepaid,

,

(7) The second sentence of sec¬
tion 10, requiring that an appli¬
cation for registration as a broker

na¬

a

company,

insurance

amended

was

pledge to

any

secretary

-

prescribe,"

may

three

and

the

of

shall forthwith send

-

as

process

commission, or in his office, and
the secretary of the commission

respectively.

in such manner

defend¬

fee of two dollars in the

a

hands

(j)
(h) and (i),

copy

of

purposes

such sale, exceed 25, was amended
so as also to exempt sales of its

V '

.

redesignated

"Such service of

.

with

stricken

was

a person

.

,

value),

par

(6) The last sentence of the next
in respect of to last paragraph of section
5, re¬
his agreement to purchase any se¬
quiring that a copy of a prospec¬
curities offered by a corporation tus or
offering sheet or amend¬
to its security holders or their as¬
ment thereto filed under the fed¬
signs which are not purchased by eral Securities Act shall—if filed
such security holders or their as=with the Massachusetts Commis¬
signs" and (b) by adding a pro¬ sion—"be attested as a true

paid, to

subsections

$1,000.

maximum fee for such registration
from $200 to $1,000.
,
' /

(a)

without

nonresident

to

this section shall be made by
leaving duplicate copies thereof

;

and former subsections (i) and

nection

and

the

because

provide for notice

ants):

any

plication

suits

ized capital stock added to its out¬

provide that the Com¬

or

Constitution

statute failed to

its

to

held to be in¬

were

valid in violation of the due proc¬

se¬

exchanges of

or

a

bank, insurance
corporation."

company or any

empting securities of

'

(2)

savings

pany,

81

200

Berkeley St.

Boston, Mass.

120

So.

La

Salle

Chicago, 111.

St.

453

S.

Los

Spring St.

Angeles

82

V

fc.V.w .", i.-:

-.0'

The Commercial and Financial Chronicle

(2534)

62

Continued jroin page

whether

81

ognized
*

State

v

Legislation Affecting
amended

that Act,

subject to a simple "registration"
of such
exempt securities) was

(n)

adding a new subsection
provide that:
,

investment

to

public

part of a pension plan, dis¬
ability or death benefit plan or
profit-sharing plan or any trust
created under a retirement plan
made

provision

under

United

such

empting

of

such bonds.

(2)

eral Income Taxation.

APPENDIX

is

B

Summary of Amendments to State
Legal Investment Laws—1.954

time in

one

on

invest

to

several classes of securities
are

meeting

DISTRICT

in

which

effective

amended

1954

authorize

to

life

marine

terest

for

by

as

19,

the

agement

International

Federal

fiduciaries

Bank

Develop¬

be

(5)

regarded

a

as

provision

shall

that

include

open-end

or

safe

to

by

prudent

closed-end

The
.

Investment

1940

of

amended,

as

a

in

existence

for

not

recognize

assets

as

of

state

of

domicile, was
adding a provision

by

purposes

manage¬

shall, if authorized by the law of
the

insurer's state of domicile

of

Company

entry

into

be deemed

investment

Jaw for insurance companies

classes

(1) effective

1954, to authorize any so-

New England states, if such trust

in

company

of

(3) Section 66
that

May

235

or

to

1954,

shall

63

a

from

or

in

63

banks"

investing

three-fourths

of Massachusetts

of

able
or

July 4,

of

securities)

certificates

shares,

;

"(g) Obligations issued by a
city, village, town, county, department, agency, district, au¬
thority,

not

held in

and

gitimate

was

to

the

United

or

States,

have been acquired

the

course

business

of

of the

the

le¬

insurer,

commission

secured

service, provided that
public utility system is

sewerage

if

the

located outside the state,
serve

tion

an

such

capital
vested

paid-up

in transfer¬

counts

of

banks.

no

by

collateral,

association

more

and

any one

than

surplus

15

of

Massachusetts

ment

law

requiring
Banks

iff

and

The

trust

or

section

bonds

10% of its

be

may

to

for

the

section

legal

one

Said

city,

hun¬

district, authority, com¬
or
other public body

agency,

mission

of

cor¬

Have You Considered

effective

and

ELECTRONICS

ac¬

co-operative
%■:

the

of

in¬

54

savings

as an

Investment Medium?

Michigan

invest in

can

a

diversified group

of electronics securities through
the shares of

debtedness

der specified

annually

sections

amended

(1)

to

of

effective

require

of

a

not exceed

ation

the

Aug.

that the

booklet-prospectus about the

Company from

invest¬

dealer

city,

of

all

the

district,

MANAGEMENT CORP.

insurance

amended

115

Broadway

New York 6, N.Y.

NAME

The Mississippi legal investment
companies

effective April

un¬

Chicago 3, III.

taxation."

MISSISSIPPI

law for

135 S. La Salle St.

therein

property

investment

your

mail coupon to

or

TELEVISION SHARES

county,

school

10% of the actual valu¬

assessed for

i

FUND, INC.
Get the

other political subdivision shall

or

of

list

said

township, village,

of

for

TELEVISION-ELECTRONICS

only if "the net bonded in¬

banks,

Commissioner

prepare

elegible

were

ment

invest¬

investments for savings banks

1954,

than

thousand.

vil¬
lage, town, county, department,

You

of

bonds, notes and interest bear¬
obligations which are legal

was

it must
popula¬

MICHIGAN

participation or shares of
such association or trust.

Subdivision

ing

a

au¬

shares

shares

!

in the transferable certifi¬

cates of

of

less

not

of

dred

having

area

and

that

the

or any

payable out of the revenues of
a
public utility system provid¬
ing water, electricity, gas or

Massachusetts

tions

other

or

public body in this state

1954, to authorize invest¬

participation
notes or other

of

bonds,

in

amended

was

in

ment

was

ADDRESS

CITY

21, 1954:

(1) By inserting in section 5662

law,

a

24,

subsection

new

investment

list -other

in

4

to

authorize

bonds,

evidences

I which

of

notes,

or

indebtedness

secured

are

by mortgages,
vendor's liens or
»deeds of trust upon leasehold estates having an unexpired term of

security

deeds,

*

f25
j

9%%, wKm&mw.
'

•Hi

.4'1

>0*V

f %

b

<

x

"

-

"

'

,

•

•-

<1

real

)a

;

Inc.

the

of

Chemical

8

Long-Term Growth of Capital and Income.

Jor other adequately secured in¬
struments evidencing an interest
equipment
the

United

receive

fixed

'lint b

and

a

por¬

HUDSON FUND, INC.

**A

with

full

cretion,

ing

open-end,

investment

adding

By

mitted

management

common

stocks.

Information

act

a

new

and




NEW YORK 6, N. Y,

TELEVISION

amount not to exceed

aggregate

5%

of

without

assets

in

any

regulating

its

ad¬

regard

Section

135 S. LaSalle St.

Chicago 3, ill.

legal

savings banks

of

.

investment
was

ADDRESS.........

the

law

115

New

for

amended effec-

CITY

Broadway

New York 6, N.Y.

NAME..

17:9A-181

SHARES

MANAGEMENT CORP.

to

other section
or
governing

investments.

Jersey

prospectus

section

insurance company

an

an

NEW JERSEY

BROADWAY

dis-\

currently emphasiz¬

Manager and Distributor of Chemical Fund, Inc.
39

diver-l

company,

from your investment dealer

the

or

mutual,

sified

ment.

in

& CO. INC.

States

determined

obligatory payments for the
purchase of such equip¬

^restrictions

F. EBERSTADT

partly

or

,

or

to invest

Request

wholly

of rental, purchase or other

(3)

on

more

equipment trust certificates

authorizing

Prospectus

\li
./■

authorize
se¬

cured

use

Selected for

to

5%

tions

Securities.

loaned

than

.right to

Portfolio

50%

{of total assets in adequately

iwithin

Supervised

{J gM HUDSON

the

in

least

amount

subsection

new

;in

A

improved

States worth at

investment of not

leal Fund

in

estate

I (2) By inserting in section 5662

'

r ^

longer

or

I more than
I thereon.
■*

•

years

unencumbered

i United

"r

was

co-operative

previously

investment

porations

evidences of indebtedness, whether
or

subdivision (g)

new

The Massachusetts legal invest¬

panies to be invested in specified
classes

law

ment law for medical service

com¬

-

York

co-operative banks).

reserves

insurance

in

and

(the

thorized

any

(section 63 requires capi¬

and

of

accounts

life in¬

funds not required
be invested as provided in sec¬

tion

New

capital stock and (2)
effective July 4, 1954, to authorize
investment in "paid-up shares and

provide

to

prevent

company

loaning

tal

the

of

-

1

amount of its

amended ef¬

was

16,

nothing in that section

section

'

date of investment and its surplus
is at least equal to 50% of the

vol¬

untary associations and trusts.
fective

"■

<.

effective

debtedness of Massachusetts

any

that real property under lease for
industrial or commercial

any

1940."

Kentucky legal

as

Section 304.453, authorizing

amended

securities

"securities

type investment company or
investment trust registered under

the Federal

Investment Company

been

surer's

ment

Act of

the

foreign
and alien insurers investments au¬
thorized by the law of
suqh an in¬

investments,

such

under

the Commissioner in his discretion

in

businessmen

company,

incorporated,

registered

insurance

amended

and

interest-bearing or
dividend-paying securities which
would

amended

was

June 7,

so¬

company or association has paid
securities, was
dividends in cash of not less than
May 16, 1954,
4% on its capital stock in each of
to authorize investment in bonds,
the 5 years next preceding the
notes
or
other evidences of in¬
certain

insurer's assets."

1954, by insert¬
ing, in the subdivision authorizing

r

added

amended

was

effective June 17,
investment

not

life

tual

'

• -

ize investment in:

legal investment law for insurance
voluntary associa¬
companies authorizing investment
trusts; provided that
] in certain federal, state or munici¬
such company shall not invest
in,
less than ten years. The
aggre-.
pal bonds was amended, effective
acquire or hold directly or indi¬
gate of investments of the in¬
90 days after adjournment of the
rectly more than 10% of the cer¬
surer under this subsection shall
tificates of participation or shares legislature, by eliminating a re¬
not exceed five percent of the
quirement that certain classes of
of
has

Kentucky legal investment

for

of

Act

KENTUCKY

The

was

diversified, management invest¬
ment company, if such
company

ment.

law

investment
or

is

which

companies

and

subsection

new

whether

to principal and in¬

Reconstruction

invest¬

ment law for fraternal benefit

cieties

'• ■

other state of the United States

Massachusetts legal

The

in

made.

are

surance

"(2) An insurer may invest in
shares, interests, or partici¬
pation certificates of any man¬

(subsection (1) of section 35-1321)
to invest in obligations issued or
guaranteed

by

the

insurance

insurance

or

to section 304.428 to provide that:

companies (subsection (1) of sec¬
tion
35-535)
and
fire, casualty
and

authoriz¬

corporations.

(4) A

July

minor changes

make

provisions relating to encum¬
on real property on which

specified

such

of

Code of the District of Columbia
was

as¬

requirements,
revising provi¬
sions relating to liens, mortgages
and pledges affecting the property

COLUMBIA

OF

304.415,

amended

was

investment.

company

secu¬

of its

debentures of solvent corporations

presently ineligible for insur-

) aciqe

classes of

to 30%

ing investment in bonds, notes

i,riew Code will permit Arizona in¬

companies

such

207c

Section

(3)

January

1, 1955, and provisions of the pres¬
ent Code applicable to insurance
companies will be repealed. The
surance

from

sets.

Code

Insurance

will become effective

bonds).

brances
loans

have invested at any

company may

ARIZONA

Arizona

new

to

of section 63
April 3,

7

effective

amended

1954,

companies meeting specified re¬
quirements) and Tenth (farm loan

Section 304.411, authorizing
bonds or other evi¬

rities

A

Subsection

(1)

(1) A

banks),

Seventh C (stock of fire insurance

follows:

as

credit

investment in

Fed¬

from

amended

-1

added to subsection (5) to author¬

Seventh B certain
obligations of fed¬

stocks),

ciety meeting specified asset re¬
(2) Subsection 14A of section
quirements to invest an amount
63, authorizing investment of onenot exceeding 5% of its funds in
dences of indebtedness of public half the capital of Massachusetts
the capital stock of a trust com¬
utilities meeting specified require¬ insurance companies
other than
ments, was amended to increase life insurance companies and one- pany incorporated under federal
law and located in any one of the
the amount which an insurance half the reserve of a stock or mu¬

the

trust

payment of

Section

(certain

Seventh

intermediate

eral

'

NEW YORK

bonds, notes or legal investment law for savings
issued,
assumed
or banks was amended effective
by the International April 13, 1954, as follows:

consolidated

Massachuetts

'•

-

,

(certain

velopment),

legal invest¬
law for insurance companies

ment

•

•

ex¬

laws

Of

a

■

guaranteed
Reconstruction and De¬

was

The

"

Bank for

Reconstruction

for

MASSACHUSETTS

bonds

being maintained" for the
payment of principal and interest
on

Bank

A

obligations

guaranteed by the Inter¬

or

loans "wherever located."-

the annual list
prepared by the Com¬
which

to

be

bank

was

the

for

ond

30r 1954, to make it clear

that investment may be made un¬
der subsection Q(l) in veterans*

obli¬

missioner those under clause Sec¬

Development.

was

and

been

America

the

States

has

and

cipal and interest on such bonds
for a
provision that "a lawful
sinking fund has been established

as

which

issued

prin¬

made"

must

of

classes

certain

in

revenue

provision
that "adequate provision has been

shall not apply to any interest in
a trust created
by an employer

for

1954,

17,

national

amended to substitute

(n) The provisions of this act

,

June

-

tive June

bonds,

as

,

respect

Louisiana legal investment
for fiduciaries was amended

law

well

as

interest-bearing

gations and (2) to add to the spec¬
ified classes of investments with

The

Section 304.408, authorizing

(1)

1954, by

amended effective May 5,

assets of the insurer.

as

stocks,

and

notes

rec¬

effective July 28, 1954, to permit
fiduciaries to invest in obligations

effective

follows:

as

they shall be

LOUISIANA

Securities Business
classes of securities from

include

not the Commissioner

or

determines that

Thursday, December 16,1054

....

•

'

G

■

Volume 180

shall

•,

be

statute,

Number 5386

legally
charter,

The Commercial and Financial Chronicle

.'.

.

obligated

by

gations of the

indenture

or

Cooperatives.

fix, maintain and
collect charges or
taxes, or both,
to provide net
Revenues after

"

operation
the

and

maintenance

facilities
service

such

used

to

section
clude

of

to

that

on such
shall be empow¬
ered to require the fixing, main¬

obligations

or

the

laws

subdivision

duly authorized public officers
or

bodies, and shall be restrained

by statute, charter, indenture
:

(4)

covenant

or

is

made

the

for

continuance

a

Dominion

obligations,
of

on

of

for

such

obligations, provided
city, village, town, county,

•

vestment sufficient to
•

debt

service

vided

:

that

further

and

the

net

vestment
ficient

shall

to

have

the

meet

.

state

suf¬

in

default

to

as

(2) Subsection (11)

y
ed

to

authorize

bonds,

debentures

or

other

include
the

cities

in

6very
States, also

United

law

new

York
tual

"an

effective

in

New

April 10, 1954, defines "mu¬
trust

when

investment

in

used

that

investment

fined

in

by

titled

law

to

mean

as

de¬

of Congress

en¬

company

act

an

company"

'Investment

the

Company
Aug. 22,
1940, as amended, provided that
(a) - such company is organized
under or subject to the provisions

obli-

Act

Investing for INCOME?

of

of

1940,'

Article

approved

12-A

of

this

chapter;

Get the

and

FACTS

shares, other than stock or shares
required by law to qualify direc¬

(b)~ all

the

of

stock

and

tors of such investment company,
are
or are
to be owned by trust

companies ori national banks hav¬
ing trust poWers and having their
principal offices within the State
of
or

New

York

fiduciaries

A

Mutual

vestment

in

Fund

Mail The Coupon

{KNICKERBOCKER
J Dept.

property

booklet

co-

the

»

!

Y.j

without obligation, Prospectus

of

law,
of

which

the

provided

stock

j

may

number of

such

Today^

SHARES, INC.

21

of

any

for Knickerbocker Fund.

s

.

j

{Address"""'"'''
I

legal

81

of

the

investment

of

City

-i.

|

J

shares of

corporation
time

York

for

insur¬

specifying au¬
thorized reserve investments, was
amended effective April 6, 1954,
by adding a paragraph to provide
that nothing in that section shall
be deemed to prohibit an insur¬
ance company from making other¬
wise
permitted
reserve
invest¬
ments
merely because such in¬
vestment is convertible into other

securities
insurance

in which such

stock

or

is

company

Continued

in

investment

not

per¬

be\ ample warning of any
change; so that you will not be A
hung up with securities in antici¬

will

stock
warrants,
stock
options,
stock, property interests or other
assets of any kind.
Anything so
received by an insurance com¬
pany
in
connection
with
such

which is

more

the

rate

investment shall be carried

financial

books

at

value

no

its

on

unless

such

pation of our needs.
In spite of this vigorous growth,
3%

find

ourselves

face

ment; both
fluence

legal
June
a

First

investment

ciaries

the

law

Virginia
for

amended

was

fidu¬

effective

30, 1954, by adding thereto
subdivision authorizing in¬

new

vestment

in

bonds

other ob¬

and

ligations issued, guaranteed or as¬
sumed by the International Bank
for

Reconstruction

from

and

Develop¬

ment.

24

page

ity

stock

outstanding

investment

of

held in
shares

in

by

a

fiduciary

of

a

of

at

such

capac¬

mutual

investment company except

the

instrument

the

or

judgment

trust

where

order,

de¬

which

under

cree

or

moneys

such

investment, provided,

ever,

the net aggregate amount of

moneys

of

any

invested

held

are

given

an

not

importance,

Federal

of course,

Reserve

Banks,

ital markets is conclusive.

Obvi¬

ously, the Open Market Commit¬
tee

and

the

pattern

borrowing dictate
and

volume
we

and

of

Treasury
rates

our money

consequently

influence

of

every

the

than

most

This

augurs

But the abundance of the

bly

line

social

has

assem¬

achieved

been

cost.

are

at

a

individuals

Many

of

of

such

well

for the supply
long term money—because we

account for about one-third of all

the

national

saving

in

not

the

ings.

cate division of labor has put upon
the fruits we enjoy.
It is inevi¬

and more to be the primary sav¬
ings vehicle for individuals in this

table, therefore, that Government
must provide continuity of liveli¬

country, rich and

poor

calculate that

hood

from the present $83 billion at

to

the

to

until he

unemployed

worker

be fitted into

can

a

work

again and to the aged
whom industry will no longer em¬
ploy.
;Y-y,y
pattern

Life

insurance

annual

is

our

earn¬

getting

compounded

more

alike.

rate

We

of

an

local

pension

in

estate,
shares

how¬

trust
of

or

such

at

any

time

exceed

funds.;

group, which excludes Re¬
Banks and agencies
having

do

with

such

mortgaging

and

things

as

veterans'

home
and(

farm

affairs, was nonexistent or
insignificant in size before 1929."
In

assets will grow

This

futures.

of retained corporate

the Social

and

This

insecurity
is the price tag which our intri¬

economic

their

over

as

state

form

control

lost

of financial

Security Board,
Savings
Banks, Federal
Land Banks, and various
Federal,

competition.

our

group

Postal

own

have

illustrative

intermediaries of the Government

1952

well

its

combined

assets were

$85 billion.

over

Thus, in 23

years, these government channels
for protection and

savings have

accumulated

the

life

assets than all

more

insurance

companies

COFFIN & BURR

The Government is in this area

to

7%

stay;

just

as

it

has

Continued

for the next few years. And there

taken

on

Thus, existing side by side, are
voluntary system of protection

the

which

offer and the unavoid¬

we

able function of government as a

guarantor
ernment

with

minimums.

of

sionally, to

regret,

our

defines

Occa¬

the

F. S. MOSELEY & CO.

gov¬

these minimums

ESTABLISHED 1879

the polls.
The
area
of overlap and consequent
disagreement
lies
not
in
the
an

to

eye

MEMBERS
New York Slock

theory of social security but only
in

lack of moderation in its ap¬

a

Bo Aon Slock

plication.^

Exchange

American Stock Exchange

Exchange

Midwed Stock Exchange
'

Now

let

I

have

important
of

turn

me

to

of

to

the

other

as

being

economy—that
capital.
Here we

financial

intermedi¬

corporate

y:/yy;y:;:

savings
banks, pension funds, trust com¬
panies and savings and loan asso¬
ciations—and finally the Govern¬
ment again..
(We regard you in
the

investment

business

competitors but

as

■

<

not

our

AND

.

'

*

'

■

■

'
.

•

of

/;

NEW YORK

•

'

"

•

.

.

CHICAGO

PAPER

•

'

•'

INDIANAPOLIS

•

'

'

as

part¬

The

nature

of

business

is

such that it is not difficult for

us

to

gauge

curacy

the

with

our

next
us

rate

our

considerable
of

decade.
are

growth

ac¬

over

Savings placed

withdrawn

most

re¬

Underwriters, Dealers and Brokers

luctantly.
make

Consequently we can
longer term commitments

State and

Municipal

Corporate Bonds
and Stocks

Purchasing and Distributing

Retail Distribution in New

England y

Railroad and Public Utility
Securities

Chace, Whiteside, West & Winslow

BOSTON

INCORPORATED




t

WORCESTER

ners.)

Founded 1898

PORTLAND

AMERICAN STOCK EXCHANGE (ASSOCIATE)

;.

v

■

municipal

COMMERCIAL

BOSTON

jd'-Ay. y-i/y:'!

securities

aries—commercial banks,

our

eye y,

business

our

described

find ourselves in competition with
many

::y:;

■1

Underwriters and Distributors

other

our

providing

.'-I
•'••■•V.'-.-;-,.

y.y

INCORPORATED

BANGOR

a

84

page

State, Municipal, Corporation,

MEMBERS—BOSTON STOCK EXCHANGE

in

their whole history.

I

MIDWEST STOCK EXCHANGE

our

considering the accumulation
funds, however, let us look at

&

HARTFORD

the

velocity with which

channel savings to nourish

Bonds

NEW YORK

,

.

in

because their leverage on the cap¬

serve

other country.

necessities which

us

luxuries

prohibits

mutual trust investment company

shall

with'

investment in-:
accumulator

as an
well as

as

the

are

of

Government Competition
With Private Enterprise

which

An eligible fiduciary or
fiduciaries may invest or reinvest
moneys

face

of funds.

VIRGINIA
of

to

departments of the Govern¬

many

sions of law.

26-40

expanding

our

we

quired it pursuant to other provi¬

Section

twice that of

than

of

together with other
intermediaries
again

economy,

an

with
.

such

economy.

characteristics

company.

fund

[

with

insurance company shall have ac¬

New

law

connection

such

receives

companies,

corpora¬

be held

such

|

Section

personal
that the

by such
company shall not exceed 5% of

and

C-16

Send me,

21

because

or

company

may

amount

120 Exchange Place, New York 5, N.
I

section

invest

of Capital

the
—

individual

and

residing in the State of

section

tion

prospectus—mail coupon below:

—

of

to

insurance

Life Insurance and the Provision

of

stocks selected

information

(m)

personal property law.

for fiduciaries under subdivision 1

offering

for INCOME purposes.

For

a

invest only in such in¬
vestments as are legal investments
pany

diversified, managed in¬

a

nominees

New York." The law provides that
a
mutual trust investment com¬

Fund!
•

their

or

the nominees of such .corporate

fiduciaries

Knickerbocker

the

common¬

•?;'

amend¬

was

ing
paragraph

Rico, and that
"city," when used gen¬

to
of

A

or

investment

investments in

as

trust fund in apply¬
limitations of subdivision 1,

Puerto

obli-

'principal

rules

such

common

generally to
United

any municipality of the
commonwealth of Puerto Rico.

interest."

5

used

includes

gations
outstanding
and
said
obligations shall not have been

„

of

term

erally

•

...

by

mitted

In

when

wealth
the

maximum

annual debt service of the

.

such

any

States, includes also the

pro-

earnings

been

the faith of

manner

legal

include every, state of the

immediately preceding in-

year

which

"state,"

available for debt service for the
•

to

sub¬

A new Subsection. (27) was
added to provide that for the pur¬
poses
of thatJ section the term

all

cover

that

was

(5)

immediately preceding in¬

years

subject

in

sum ; as

maximum

conditions).

earnings during each of the five

:

Canada

province is pledged to provide for
the payment bf principal and in¬
terest
(subject to the specified

depatment, agency, district, au¬
thority, commission or other
public body shall have had net

'

of subsec¬

amended to author¬
ize investment also in obligations

such

said

specified

division,

for the retirement

or

of

conditions

interest, principal and sink¬

ing fund payments due

(b)

permitted

same

ance
-

obligations of any province of the

disposing of all
or
any
substantial portion of
such facilities unless provision

"

Subdivision

the

and

the

political

such state.

any

amount

lesser

as

Such shares shall be treated in the

of

of any

or

of

fixed

under

state

any

States

such

or

be

regulations as may be pro¬
mulgated by the banking board.

in¬

tion 25, authorizing investment in

from

$100,000,=

au¬

to

securities

investment

of

United

such
both, by

or

of sub¬

subdivision,

taining, and collecting of
taxes,

the

for

charges

or

for

subject to the
conditions -of
that
subdivision,
interest-bearing securities of any
public authority, commission or
instrumentality organized under

meet

sinking fund payments
,

(a)(2)

amended

was

among

thorized

maturing interest, principal and
.

21

Bank

may

Subdivision

(3)

provide

sufficient

Central

.

to

covenant

83

(2535)

National Distributor

NEW ENGLAND FUND
Organized 1931

24

Federal

Phoenix Bank

Street, Boston 10

Bldg., Providence 3

]

»

84

The Commercial and Financial Chronicle... Thursday, December 16,195£

(2536)

Continued from page

capitalism

83

again be under¬

will

And ail of

mined.

well know

us

the allure of these more bountiful

investment

pastures.
One has
only to remember the operations

Government Competition
With Private Enterprise
in the area of
Our problem is
ourselves that each of us

permanent place
social protection.
to assure

—Government and private enter¬

and

public debates such as those we
now witnessing in the fields

are

public versus private power,
subsidizing
of
conflicting
forms of transportation, and the

of

the

development of natural resources
or of new sources of energy.

possibility exists
of government agencies moving
xnore aggressively into the insur¬
Although

ance

the

function

the

on

immediate signs
favorable, and amicable rela¬

the other, the

are

tions presently exist.
When the Government recently

determined to

cover

Civil Service

employees with group Insurance,
it turned with
a
commendable
departure from custom to private
enterprise to achieve this desirSome 150 private
life companies have joined in a
able objective.

master contract to insure 2% mil-

Federal

employees
tune of $7 billion dollars.

Eon

the

to

In the
news

capital markets, the good
is less recent, but our grati¬

tude

is

undimmed

for

the

con¬

structive step of freeing the gov¬
ernment

rigid

bond

pattern.

from

market

We

live market—one

its

have

now

a

which breathes,

But let

breathe more freely with

we

Conflict Between
Government and Private

No Need For

Enterprise
be

need

There

flict between

serious con¬

no

accountable private

agencies and a socially
responsible
government.
The
functions of the Treasury and the
Federal
Reserve
System
imply
priority in

cost of money as

aging
that

the

the basic
well as in man¬

influencing

debt;

Federal

a

debt

and matures too

is too large

frequently to be abandoned to ac¬
cidents in the market place.
But if these necessary

distorted

are

ency

functions

by political expedi¬

then private financial agen-

ies pay the cost.

The equilibrium
is upset and the coexistence rela¬
tionship is threatened.
Certainly it is unrealistic to ex¬
pect that the various financial
agencies of the Government will
wind up their affairs and
turn
their

business

hands;

nor

could

private

to

over

they long exist

without

investing their accumu¬
lating funds.
As long as these
investments are in governmental

obligations
raised.
come

objections

be
But if these agencies be¬

your

no

competitors

in the corporate

can

and

ours

bond market

or

holders of substantial amounts of

alone.

stand

already

have

I

As

vate

The same is true
military person¬

agencies.

of

for insurance
time

in

nel

of

indigent and
ables

But

for

the

of

care

for the incur¬

wards

other

and

dustrial

war,

care

of

in¬

an

society.

no

reason

can

be advanced

government entering into life
its traditional forms.

insurance in
Nor

is it

likely.

First, because the workings of
private life insurance are clearly
in our society's interest—both as
to

product and

We sell

of

the

been

avid and vociferous

so

mand.

demand
it

secur¬

since the free corn
Roman Empire has there
never

de¬

a

Unfortunately, this very
for security carries with

People who want
security are reluctant to make di¬
rect payment for it.
This creates
a

menace.

political atmosphere in which
demagogy can destroy the econ¬
omy it is promising
to protect.
Assuming a self-restrained and
democratic Government, we have
a

fear of the
for

feel

our

is

continuing prefer¬
product.

a

second

safe

reluctance

form
tude.

a

of

from

why

Government

the

acquisition to
public atti¬
a rare sight in¬

well-known

It would be

deed to observe within

cratic

frame

has

of

our

demo¬

government,

within the framework of

dic¬

our

opposites, a bureaucrat
beating the bushes to sell a pro¬
gram of life insurance tailored to

activity

New York

Hartford

Pouglikeepsie

It is not

job
socialistic, Gov¬

is—socially; speaking—an
Which
reason.
surance

Providence

Springfield

resources

social

the

security program.
Time Is Ripe for a Reappraisal

The

time

is

ripe

for

a

reap¬

individual

a

a

indis¬

me

to

my

third

We, the private life in¬

companies, provide facil¬

ities for 200,000 entrepreneurs

—

insurance

life

is

concern

just

investment

and

the

not

gov¬

not

—

entrance

of

government into business and pri¬
vate

titles,

salesmen

these

mained

of

have

ours

frontier

the

at

of

re¬

free

a

lest example of

the free enterprise
system in
operation.
We
are
proud to enable them to follow
There is

gument here between
Government

—

us

this is

no

ar¬

and the

something

which Government cannot do.
I

hope I have not taken too long

affairs—that

but to maintain

Our proper

inevitable—

favorable

as

for free choice

ance

the

is

as

a

bal¬

possible.

role is not to berate
for doing those

government

things which because of their na¬
ture we cannot do.
Rather, let
channel

us

some

of

our

eagerness

for free enterprise

into the search
for new opportunities along the
frontiers of our expanding society.
What should be very much on our
minds

whether

is

we

taking:

are

to lay the foundations for my con¬
clusion.
I
have
discussed
the

full advantage of every opportun¬

functions

served

of

the capital
touch

the

Government

in

market and how they
agencies such as

financial

life insurance companies.
I have
made the point that there are cer¬
tain things of a general nature
which the government can do and
should do 'through the Treasury
and

the

Reserve

of

the

I

Banks.

noted the danger of the

Government

have

excursion

agencies into

the private capital market.
In the

of protection I have

area

curity

and

which

cannot

the

things

be

done

private agencies.
And
given some reasons why
the

insurance

life

se¬

it does
through
I
have
we

business

in
are

confident that Government cannot

replace

by force

us—except

ma¬

jeure.

ity to
which
And

How Government

can

we

I

so

do best.

let

say

where

resist

us
we

in

en¬

private

enterprise

can most effectively do
job, and let us support gov¬
ernment
in
doing those things

the

which

cannot do

we

and

it must

do.

Most of all, let us
end vague

bring to an.
discussions about un¬

defined free enterprise on the one
hand and unanalysed government

activities
all

on

concerned

the

other.

with

the

good of our country.
duce

conflict

We

Let

between

are

common

us

re¬

growing:

government and growing free en¬

terprise,
and good

and

with

will, let

imagination
play the big¬

us

gest part possible in

Operations and

My whole talk has been about
Government operations and pri¬
vate activities and how they can
tral

by our doing those things

croachment

J. H. Lewis

Private Enterprise Can Co-Exist

coexist.

that the public is well-

see

an

ever-ex*

panding economy.

This

problem

seems

of

to

our

me

a

time.

cen¬

Our

and social

organization
rugged individual¬
ism and the simpler patterns of
the
19th
century.
We
have
adopted and pressed forward with
modified

to

Admit

On Jan. 1 John H. Lewis &

63

Wall

Co.^
Street, New York City,

members of the New York Stock

Exchange, will admit Thomas G.
Murphy to partnership. Mr. Mur¬
phy is an officer of Lewis Man¬
agement Co., Inc.

Wood, Struthers to Admit

ingenuity the practice

On Jan. 1, Henry K. L'Homme-

of division of labor and have thus

dieu will be admitted to partner¬

enormous

man.

brings

ernment and business

group,

has

masse.

for monolithic, or
ernment. The life insurance agent

Teletype BS-288

of

and

economic

pensable

after ca¬

career

from

partnership, to a
to a factory
a hierarchy of
salaries and wages.
But
to

capital

be done

Telephone LAfayette 3-2400

predecessors

with

citizen's own, immediate, family
needs.
This is a job that cannot
a

Boston

—all

or

tatorial

en

areas,

moved

referred to Government social
reason

life insurance combines with the

Boston

conservation of natural

management

to the invest¬

as

ment of the funds.

ity; and

In other
reer

this way of life.

Our product, despite
availability, is rarely bought.
It has to be sold; and kept sold.
The boasting of the possession of

STREET, BOSTON

amples come easily to mind: car¬
rying the mail, fire protection, police protection, military defense,

individualism. They are the simp¬

its

15 STATE

are

banking but manufacturing, trans¬
portation and all the segments of
our vigorous economy.
Our main,

competition.

ESTA BROOK & CO.

which

ate concern to any one of us. Ex¬

work in partner¬

Sometimes they

responsibility for

things

to all but not of Immedi¬

living in selling life insurance.

conse¬

of our industrial society.
is impossible for me to con¬
sider seriously any way in which
the incalculable commitments in¬
volved can be undertaken by pri¬

ence

than 100 YEARS

common

a rough generalization, can be
successful as they choose to be.

as

as

those

doing

It

we

more

Government the

quence

inevitable

and

There

for

women—these

and

praisal of relations between

between

in NEW ENGLAND

individ¬
ualists—after investing a consid¬
erable amount of uncompensated
time in their training, set out on
their own account to sell insur¬
ance.
They reecive a percentage
of the premiums as their com¬
pensation.
They can work as
much or as little as they wish and,

men

ship; often the wife takes care of
the paper work and telephone. It
takes hard work to make a good

the

is

security

social

observed,

no

private

look for a

turn and

the area
private
agencies, the insurance companies

equities, the working relationship
Government and

us

moment at that portion of
of protection where,
as

natural

.

financial

capital market

and the long-term
on

hand,

one

RFC, surely benevolent in
purpose, to see where such a de¬
velopment might lead us.

it.

prise—plays the part which each
^can
do best.
We would prefer
asot to find ourselves the subject
of

of the

These

agents.

the life insurance

achieved

the

plenty

of

the

as¬

sembly line.
So compartmented are our jobs
we have had to turn over to

that

ship in Wood, Struthers & Co., 20
City, mem¬

Pine Street, New York

bers of the New York Stock Ex¬

change.

Members Neiv York and Boston Stock Exchanges
s

Town send,

Dabney & Tyson

ROCKLAND-ATLAS

Established 1887

.

•

Members

New York and Boston Stock

American Stock Exchange

30 Stale

Exchanges

NATIONAL BANK of BOSTON

-i

(Associate)

Street, Boston 5, Mass.

Dealers in State and

Municipal Securities
UNDERWRITERS

AND

DISTRIBUTORS

OF

CORPORATE AND MUNICIPAL SECURITIES

s

Specialists in General Market and Massachusetts Municipals
30 CONGRESS STREET

AUGUSTA, ME.

BANGOR, ME.

LEWIS TON. ME,

PORTLAND, ME.

KEENE, N. H.




GREENFIELD, MASS.

FITCHBURG, MASS.

BOSTON 6, MASSACHUSETTS

LAWRENCE, MASS.

MANCHESTER, N. H.

Telephone RI 2-2100

Teletype BS-332

0

Volume 180

Number 5386

The Commercial and Financial Chronicle

...

(2537)

COX, M. J. M.
Curtiss, House & Company,
CRAFT, ROBERT H.*

Continued from page 41

American

In Attendance at IBA Convention
BISHOP,

HENRY R,
Fordon, Aldinger & Co., Detroit

Blackford, jr., henry
A.

M.

Law

BLAKE,
H.

<fe

Company,

SIDNEY

M.

CAHN, Jr.,
Henry

j.

National

Walston

Spartanburg

S.*

City

BODMAX,

Bank,

WARREN

New

Cleveland

Ohio

Company,

DONALD

Cruttenden

&

Wall

V

Harris

G.

Ira

New

The

Lee

BOYCE,

C.

A.

Bank

Halloarten & Co.,

BRADLEY,
Eaton

F.

S.

&

BRAUN,

&

Co.,

Moseley

Co.,

CIIAPLA,

CHAPMAN,

New

York

CIIAPPELL,
The

CHILES,

F.

S.

New

&

Lehman
Brooke

&

BROOKS,

Co.,

C.

Putnam

&

BROrHY,
S.

Dickson

BROWN,
R.

L.

&

W.

of

BRYANT,

Co.,

Clark.
BUCK.

San

&

Allen

New York

A.*

RICHARD

K.*

C.

Bullock,

New York

&

Co.,

BURKIIOLDER,
Alm-tedt

BYRNE,

Byrne

JAMES

R.

B.

Louisville

Senate,

EDMUND
&

Pohl

Washington

PETER

The

!

<

W.

Dubois,

GEORGE

allen
&

Pittsburgh

J.

St.,

Omaha
New

Co.,

Bear,

Haven

.

.

&

Co..

Francisco

The

FLYNN,

Scrlbner,

Pittsburgh

Worcester

Baker

&

G.

Stock

Exchange,

SHELDON

Denotes

F.

S.

Bnnner

&

GREGORY,
GRISWOLD,

H„

Gregory.

New

BENJAMIN

Dealers

Edward

D.

New

&

Co.,

New York

Hess,

IIAGAN,

Co.,

Philadelphia

Houston

Hanseatic

Hirsch

&

Mrs.

Courts

are

Jones

Co.,

&

St.

Corp.,

Co.,

Inc.,

Richmond

Continued

in

Louis

interested in

Atlanta

Municipal Bonds
'

•

'

i

Pennsylvania School Authority Bonds
either

as

ail

underwriter
.

v

or

market

a

distributor of

secondary

offerings

ESTABLISHED

THE PHILADELPHIA NATIONAL BANK

1914

BOENNING & CO.
MEMBERS

PHILADELPHIA-BALTIMORE
AMERICAN

1529
LOcust

8-0900

STOCK

STOCK

EXCHANGE

EXCHANGE

(ASSOCIATE)

WALNUT STREET, PHILADELPHIA 2, PA.
Bell




System
PH

Teletype
30

New

York

Telephone

COrtlandt

7-1202

Toronto

Jr., JOHN C.*

Mason-Hagan,

MALON C.*
&

I

H.

Securities

J.

Co.,

i

|

Corporation,

York

New

!

!

EDWARD

Midland

G.*

t

York

GUNN,

Hutzler, New York

&

York

tctpw

O.

DALTON

COUIG, J.

New York

I

,

Ill

IE*.

M.*

Co., New York

York

GRUNEBAUM,

KURT

j

•

..'

HI

H.,

Co., Louisville

EDWARD

J

New York

Gregory.

WILLIAM

&

IE*

Smithers &

COSTIGAN,

Mr. and

Bond

;

M.

Cincinnati

POWHATAN

HAROLD

York

Bank, New York

GEORGE

Co., Inc., Chicago
F.*

&

New

R.*

Chase National

Chicago

Spencer Trask & Co., New York
WALTER W.

York

D.

Phelps,

Ingen

York

New

Trust Company,

P.*

CHARLES

New York

Company,

C *

Philadelphia

Company,

Company,

Washington.

BRADLEY*

J.

GREEN,

Co.,

Grant &

York

"

B.*
&

New York

&

FRIDLEY, EARL
Fridley

W.

SCOTT*

New York

JOHN E *

Thayer,

f

Aiex.
xsrown <& Sons,
Baltimore
GRUBBS, M. M.*
Jenks, Kirkland & Grubbs, Pittsburgh

PAUL

Bros.

^

Association,

\

FREEMAN

Bonnet

Williams

Baxter,
Salomon

Washington

Gregory & Son, New York
GREGORY, Jr., WILLIAM H.

WM. WARD
& Cromwell,

FREDERICK,

j

CATHERINE

J.*

T.*
Weeks, New York

DAVID

FOSTER,

[
*|

York
L.*

GREGORY,

Aldinger & Co., Detroit

Sullivan

,

,

New York

FORDON, RALPH
I OSHAY,

Olds,

Lemon

Guaranty
The

Co.,

(

E.

New

Bankers

EDWARI)

GREEN,

GEORGE
&

'

Commission,

WILFRED

Harvey

Thackara,
GRAY,
New

Tnc., New York

&

Jr.,

GRANT,

W.

Co.,

Loufs

Robinson-Humphrey Co., Atlanta.

GRAM,

N.

CHARLES

FLEMING,

&

MRS.

Johnston,

York

Bank,

Washington
GRADY, HENRY

JOHN

Loeb &

St.

i

Investment

G *

&

I

Glynn,

JACKSON*

ARTHUR

City

Goodwyn

Pittsburgh

HOWARD C.*
Stearns & Co., New

Deane

'!

Angeles

Exchange

GOODWYN, Jr.,
GOULD,

San

ROBERT

&

A.

^

C

Los

Heltner &

National

y:

FIRSTBROOK, BRADSHAW D.
Greenshields & Co., Montreal

Plvt.h

Bank,

Securities

Jr.,

Singer,

r.

K

GOODWIN, Jr.,

Chicago

II.*

CHARLES

}

Corporation,

GOODWIN, ROBERT M.

W.

Fay,

f
'

WAYNE*

H.*

&

•;

Rowles, Winston & Co., Houston

V

ARTHUR

I RICKE,

New York

York

Washington

&

FREEMAN, MERRILL*

Chicago

c.

Co.,

EDWARD

Blewer,

MARY

Pershing & Co.,

O.

K *
Robert Garrett & Sons, Baltimore

X.

&

Boston

W.

California

Chicago

McDougal & Condon, Chicago

Fordon,

Leonard & Lynch,

Washington

Wertheim

DUNN,

COOPER,

New

We
:

60

New York

Company,

Bankers

COOK,

T.*

WILLIAM
&

&

CONWAY.

C.

Phelps,

Van

J.

CONNERS,

FRESCOTT

States

&

JULIEN

JOSEPH

COURTS,
*

Moore,

DROBNIS,

Chicago

J.*

Steele & Co.,

Hornblower

P.*

New

C.*

McDougal & Condon, Chicago
RAYMOND V.*

I Model, Roland & Stone, New York
BYRNE.

Cleveland

II*

Bank, Charlottesville
W.*
Buffalo

ERNEST

Company,

JOSEPH

Hooker

First

GOODWIN, Jr.,

&

CHARLES

CHARLES

CONDON,

BUTCHER, HOWARD, III*
Butcher & Sherrerd, Philadelphia
Byrne

Co.,

&

GLAVIN,

K.

Collins

CONDON,

Philadelphia

Brothers,

HON.

BYRNE,

T.

Collings

Julie'n

York

New

C.

COLLINS,

BUNN, Jr., JOHN F.

United

W.

ROY

.

Norris & Quinlan, Montreal
Jr., CLIFFORD C.*

Collier,

Bank,

Co.,

J

.

GLYNN, Jr., JOSEPH A.

Company,

I).

Hanrahan

&

jesse

National

DORBRITZ,

FAUSET,

Kuhn,

Co., Greensboro, N. C.

'{

R.*

Dallas

New York

& Son,

COLLIER,
National

Corporation,

BAYARI),

Doolittle

York

FRANCIS

Gregory

Lewis &

Mericka

Peoples

F.

FITTERER,

DONNALLY,

MERRITT

Company,

&

Securities

Bank,

New York

VV.

&

Scranton

FARRELL,

•FISHER,

York

DOOLITTLE,

WALLACE*
New

C.

COLEMAN,

Distributors, Boston

E. F. Hufctbn &
Company,
BULLOCK, HUGH*

BUSH.

Cleveland

Ripley & Co., New York

Co.,

Salt Lake City

W.*

»

New York

Co.,

ROBERT

Jr.,

National

York

New

B.*

COLLINGS,

BUECIILEIt,

Calvin

&

York

Dominick & Dominick, New York

Miami Beach

y :

A *

FARRAR, HOLDEN K.*
Smith, Barney & Co.,

FINNEY,

DIXON, ROBERT B.*

J.

Harris

Miss

IISHER,

Hogle & Co.,

DOMINICK,

COMSTOCK

HENRY

Cohu

A.

Wm.

Co.,

&

New

Incorporated,

GEORGE
Gibbons &

GLOVER,

Corporation,

FRED

Jr.,

W.

FIELD,

DOERGE, CARL II.*

HAGOOD*

C.

COLEMAN,

Atlanta

Bioren

York

York

Boston

HERBERT

McDaniel

Lane, Space & Co., Atlanta

Harriman

COIIU,

Southern

'-vV'

.

Clayton Securities Corporation, Boston
VV. SCOTT

BUDI), Jr., JAMES S.*
Citizens

':

CLUETT,

Incorporated, New York

Fund

:

HARRISON*

CLAYTON,

New York

Dodge & Co.,

Putnam

••

H.*

Company,

Johnson,

JERROLD*

RICHARD

Turben
Jr.,

&

CLARKE,

Francisco

J.

Simmons, Chicago

WILLIAM

Atwill

WERNER
Buyer,

T.

New

Merrill,

EMMONS

Blair

BRYCE,

Bullock.

';. ::

New

Co.,

GEORGE A.
& Co., New York

DIXON, JOSEPH
New

y

E*

CLARKE,

America.

Kirkpatrick,

Trust Co.,

&

&

Co.,

&

York

New

The

WILLIAM

Chas.

FAY,

WALTER*

Ingen

Jr.,

Co.,

City National Bank, Kansas City
Crouter & Bodine,

Johnson

H.

DEVVITZ,

&

Angeles

CHARLES*

Reynolds
R.

Los

Chicago

New York

Co., Cleveland'.
GLASSMEYER, EDWARD
Blyth & Co., Inc., New York

J.*

Boston

CARL

Fauset,

Van

&

•

Co.,

WALTER*

American

Bank

&

First

Buffett-Falk

Chicago

G.*

&

Parker

DEWEY,

ROBERT M.*

CLARK,

HARRY*

Bond

Bank,

Corporation,
DEVLIN, WILLIAM A.

v.

Ellis

J.

The

Boston

Co.,

&

LESLIE

Fairinan,

York

York

DEVENS,

J.*

ROBERT

Blunt

Pressprich & Co., New York

Bank

B.

L.*

JOHN C*

CLARK,
York

Eichler

L.

First

SEYMOUR*

Pollock

E.

FALSEY,

WILLARI)

DEMPSEY,

Gardner, St. Louis
CHARLES

Landstreet

Calvin

A *

New

New

Inc.,

Co.,

&

The

PAUL*

DeHaven & Townsend,

A*

Winston-Salem

Jenks. Kirkland & Grubbs, Philadelphia
BROWNE, ALAN K*

The

&

Wachovia

Salomon Bros. & Hutzler, Chicago
BROWN, LAWRANCE A.

BRUCITLOS,

Company,

Pressprich & Co., New York

CLARK,
New York

New York

Co.,

Co.,

National

DcIIAVEN,

&

ARTHUR

Wainwright

Ca'-k

BARRETT*

BROWN,

A.

FORRESTER A.

C.

CLARK,

Press,

American

Bateman,

Nashville

Hartford

Associated

v

CLARK, HAROLD W.

FRANK J.

BROPIIY,
The

H.

H.*

Co.,

DECKER, O.

&

j
/.

D.*

1ALSEY,

Smithers

S.

i

C.

NELSON

I AIRMAN,

York

-f
,

GILLIES, GEORGE J.
A. C. Allyn & Company,

Fahey, Clark & Co., Cleveland

•

New

r

' '

New York

Johnston

FAHEY.

Exchange, Chicago
W.

Co.,

B.

GILBERT,

Chicago

FAIRCHILD, PAUL W.

JOHN

& Co.,

Ginther,

&

Masten

Wm.

Montreal

'

;

'

York

GINTHER,

ROBERT

E.

EABRICANT,

MARQUETTE

BARY,

New

JOHN

W.

CLARK,

BROOME, ROBERT E.*
Guaranty Trust Company,
R.

CLAPP,

Curtis,

Philadelphia

JOHN

York

*

-

M *

New

W.*
Company, Wheeling

A.

Inc.,

Co., Atlanta

PAUL F *

EWING,

CULLOM

'

GEORGE
&

GIBBONS,

W.
Bank,

New York

Weeks, Boston

EDWARD

GEYLR,

Geo.

&

Dealers^

P.

Fidelity Trust Company, Pittsburgh

A.

FALIv,

F.

Scott, Horner & Mason, Lynchburg

Brothers, New York
Jr., FRANCIS M.*

BROOKE,

EVES,
Richmond

Exchange,

Struthers &

Blair

Illinois

<fc

Dodge

GEORGE,

A.

Evans

A.

Continental

Chicago

Clark,

Wood,

York

New

York

Securities

Harriman Ripley & Co.
GEORGE, ROWLAND II.

York

New

Co.,

Co.,

11

New

GATCHELL, EARLE*
Hayden, Stone & Co., New York
GEDDES, EUGENE M.

W.

EVANS, THOMAS

Company,

Dodge & Co.,

DcGROOT,

Omaha

FRANK

CHURCHILL,

R.

MILTON

Cleveland

D.*

Co.,

CHRISTOPHEL,

York

8RITTAIN,

Jr.,

&

&

CLEMENT

EVANS,

dc

& Co.,

Trask

Dodge

DEAN, HOWARD B.*
Harris, Upham & Co., New York

C.

Chisholm

Reinlioldt

Jackson

Corporation,

&

New

Stock

DAYTON,

Clark,

WARREN

Varnedoe,

GERALD

Webber,

Detroit

Co.,

Jackson & Curtis,

Savannah

Moseley & Co., New York
JOHN*

Paine.

Clark,

NEAL*

Kidder, Peabody & Co., New York
GANNETT, THOMAS B.*

Trust

CARNOT

EVANS,

•

1

'

H.

GARDINER, ROBERT

Company,

H.*

LESTER

Spencer

Jackson & Curtis, Boston

Hannaford,

Midwest

Boston

CIIISIIOLM,
New York

BREWER, ORLANDO S.»
Phelps, Fenn & Co., New York
BREWSTER,

Seattle

DAY, JAMES E.

P.*

Chiles-Schutz

Forgan & Co.,

&

Co.,

Dawson,

Chicago

WILLIAM B.*
Corporation, New York

First

Company,

Stock

Reynolds & Co.,
&

;

*

'

KEITH*

Hornblower

& Company, Incorporated
Philadelphia
EUSTIS, BRITTIN C.*

POWELL

SHELBY

Company,

Son

4

Company,

Association

York

Co..

Cooley & Company, Hartford
GALLAGER, HERBERT V. B.*
Yarnall, Biddle & Co., Philadelphia

Stroud

y

v-',-*';

'

BREEN, DONALD

BRICK,

R.

Reid

v.--

Shelby Cullom Davis & Co., New York
DAWSON, DUDLEY B.*

Louisville

Co.,

Webber,

Trust

:y

Kenny & Ayres,
&

DAVIS,

Cleveland

Boston

Louis

Glore,

Charlottesville

W*

GEORGE S.

JOHN

Paine,

BRECKENRIDGE, HUNTER*
McCourtney-Breckenrklge & Co.,
St.

Blair

HAROLD R.*

Fulton,

&

&

Jr.,

&

.»•

Cleveland

DAVIS, JOSHUA

New

Company, San Francisco
ERGOOD, Jr., RUSSELL M.*

,

E.

Trust

>
&

GAERSTE, JOHN L.

Boston

Company, San Francisco

&

Friedrich»

Chicago

GALLAGHER, FRANCIS

Harper

Clement

G.

Willis,

Co.,

McDonald-Moore

FRED C.

S.

&

Deposit

Wells

&

News,

WALLACE

Washington
FUNSTON, G.

Seattle

DAMS, DeWITT
DAVIS,

P.

EMPEY,

CLARENCE F.*

Mullaney,

Kindred & Company,

CHAPEL,

Nashville

Inc.,

Columbus

Co.,

Toronto

Incorporated,

Edwards

California

American

Northwest

First

Bankers

FULTON,

Canada,

Howard,
N.

Daily

National

Securities

^

Labouisse,

Orleans

FULKERSON, Jr., W.

•

Worth

Wm.

'

Webber,

Co., New York

ELLSWORTH, SHERMAN

"

Cleveland

&

D.

JAMES

Lyons

Barcus,

WHITNEY*

Howard,

The

TODD

Cassell

L.

CIIANNER,

New York

HUGH*
Southwestern Securities Co., Dallas
BRADFORD, J. C.
Bradford

Atlanta

Jr., JAMES

F.

W.

^

Philadelphia

Co.,

ROBERT

Paine,

DAMS,

&

PHARR*

ELK1NS, Jr., GEORGE W.
Elkins, Morris & Co., Philadelphia

DARLING, NELSON J.*

D.*

Allyn & Company, Chicago

CHANDLER,

Trust

BRADFORD,

C.

DANIEL,

C.

C.

MEREDITH*

Company, Baltimore
SOYNTON, ELWOOD D.»

J.

C.

Fort

First

Chicago

Baltimore

Company,

.

Allyn & Company, Chicago
CASSELL, CLAIR F.*

Bank, New York
&

.

Newark

Co.,

Sweney, Cartwright
CASEY, DOUGLAS

A.

Deposit

&

&

C.

Chicago

EGAN, JOHN F.

Co.,

Mercantile-Safe
>

m,

W.*

HUGH

CART WRIGHT,

CASEY,

Mercantile-Safe

LEE

Jr.,

&

DALY, OWEN, II

Pacific

Courts & Co.,

York

B.

National

GEORGE*

Carroll

W.

CARTER,

Becker

G.

Harrison

G.

Co., New York

H.

CARROLL,

Rico

Chase

Chicago

WILLIAM

Jacksonville

LEONHARD*

FRANCIS

Jr.,

Pierce, Carrison, Wulbern, Inc.,

Robert Garrett & Sons, New York

Puerto

A.

duPont

&

William

San Francisco

Co.,

Inc., New York

EDWARDS, WILLIAM N.*

Los Angeles

DAFFRON, Jr., ROBERT E.

& Co.,

Haupt &

CARRISON,

BO WEN,

BOWMAN,

Savings Bank, Chicago
DON A.*
*
;

John Nuveen

Eaton

CUNNINGHAM, SAMUEL k.»
Cunningham, Schmertz & Co., Pittsburgh
CURTIS, ARTHUR W.

&

CARRINGTON,

•

,

&

L

Jr.,

Weil,

New

FRIEND, ARTHUR S.*
Folger, Nolan-W. B. Hibbs
Washington
FRYE, CHARLES S.

RHETT*

Equitable

New York

Co.,

WARREN h.*
Weedon & Co.,

Walston

Co.,

EARLE, HENRY
First of Michigan Corporation, Detroit
EATON, Jr., CHARLES F.

CULLEN, DANIEL J.*
York

New

Howard,

Rotan, Mosle & Co., Houston

Townsend, Crouter & Bodine,
Philadelphia

Crowell,

CARR, FRANK C.*

R.*

FRANCIS*
Government Development

Chicago

Barcus, Kindred & Company, Chicago
Chicago

&

FR1YDRICHS, G. SHELBY*
New York

II.*

DYMOND, ARTHUR*

GORDON

CROW ELL,

Journal,

Trust

CARLSON,

BOOTHBY, Jr., WILLARD S.»
Eastman, Dillon & Co., Philadelphia
BORKLAND, Jr., ERNEST W.*
Tucker, Anthony & Co., New York
BOUCHER, JEROME H. P.

BOVEROIJX,

v.;

y

Street

DUSON,

Durham

DeHaven &

CAREY, CHARLES*

San Antonio

Harris, Upham & Co.,

:

CARBERRY, PATRICK

Chicago

Co.,

CROUTER,

Assaciation

Lee Higginson Corporation,

Francis

D.

Hallgarten & Co., New York
Devine

A.*
Co.,

SYDNEY

Blyth & Co.,

New York

Corporation,

&

TIMOTHY

duPONT, A.

CALVIN M.

J.

Devine

DUFFY,

CROSS, JOSEPH G.*

.

L.

Bankers

Washington

Columbus

Muir Investment Corp.,

BONNIWELL,

GORDON

Co.,

WILLIAM
Securities

CROSS,

CAPEK, CHARLES A.

Association,

BOLGER, JOHN F.*
Shillinglaw, Bolger & Co.,
BOLTON, FREDERICK J.*

York

New

C.

Investment

Washington
BOGERT, .Jr., H. LAWRENCE
Eastman, Dillon & Co., New York
BOLES, EWING T.*
~
The

Co.,

&

STEWART

J.

Southwestern Securities Company,
Dallas

Corporation,

W.*

F. W. Craigie & Co., Richmond
CROLL, JOSEPT D.*

First

York

CALVERT,

H.

Bankers

&

WALTER

CROOM,

CALLAWAY, Jr., DAVID H.*
First of Michigan Corporation

Woodcock, Hess & Co., Philadelphia
BOEHMLER, ERWIN W.
Investment

York

Securities

C.

DUNN,

York

CRAIGIE,

Asiel

Hernnan & Co., New

CALDWELL, DONALD*

Byllesby & Company, Philadelphia
ROBERT B.*

BLYTH,

WILLIAM M.

New

DUNN,
Cleveland

8$

on

page

88

•A

86

The Commercial and Financial Chronicle

(2538)

Thursday, December 16, 1954

...

#;>

Continued

from

page

that

25

the

Truman

The Next Two Years of the Eisenhower Regime
hope that from these remarks
conclude

won't

closed mind
As

I

said

that

on

my

with those things which affect the
people's property, their money,
be
conservative,
and
don't
be

you

have

a

it.

to

I

afraid to

friends in the

newspaper
group
yesterday,
I
have not really studied the issue,

but

I

did

rather

want

general

to

make

remarks

use

will

I

the word.

stand

on

that

being

as

those

concern¬

The Coming Sessions of Congress

But when you are in the

the

controlling

the meetings. You do have a little

the

of

element

be

is

so maybe there will
advantage in having the

Democrats

in

control.

I

don't

States, but there will be

have

some

ad¬

is

theory

that

we

vantage to individual Senators, I

ment. More power should

think.

tralized

You

have, between the two great
Parties, I think, a fundamental
difference in political philosophy
which is going to be an overriding

ment.

Federal

the

The

and

more

to

view

the

cen¬

Govern¬

dependent

tion,
they

but I
mean.

believe that is what
And there you have

that

"The purpose of Government is
do those things—those neces¬
things—for the people which
the people individually or collec¬
tively cannot do or cannot so well
do for themselves."

self

i I think that is basic Republican

a

have

changed

very

much

as

result of the last election.
We

Party philosophy.

And the Pres¬
ident has amplified that in the last
year by his statement with some¬
thing as follows—and I don't have
the direct quotation, but you will
recognize it. He said that in deal¬
ing with those things which affect
the people, their social life—which
affects them as human-beings—be

only controlled the Senate
in the last session by the grace of
one vote, and at times the Demo¬
crats actualy had control of the
Senate, but left us in control be¬
cause they thought it was the best
policy to follow.
I think they
were right about that.
•

human, be liberal; but in dealing

a

Over in the

a

little
the

were

bit

and

issues

re¬

that

Republican

ses¬

in the last.

was

were

thanks

fact that

the

to

he

lican

in

even

Plan

the

the

in

leaders

worked

was

House, we only had
majority of four votes, and now

in

supporting him

with these matters.'

connection

proud of the fact that the Repub¬
have
not
forgotten theirpromises to the people in 1952.

He

I

was

am

proud of the fact that *

very

to those

which I have mentioned

earlier.

taking these up one by
a
looking-ahead basis, I
am not going to discuss Korea be¬
cause that falls into the question
of foreign policy.
I believe that
we are going to have, and should
have, a bi-partisan foreign policy.
Now,

one

on

The President has said
in

we

live

of peril, not just an in¬
stant of danger.
And God knows
an

that

age

we

do.

I

think

that

Those

under

-

to

Aid-to-Turkey^ discuss
programs. • briefly

the

and

Aid

and

-

our

,

few

a

Greece

of

them

programs

on

were

bi-partisan

a

showed that it

be done, even

can

I believe with the temper of our>
President, with his sort of detach-,
ment from the struggles of parti¬
san
politics, which I may com-'
ment on in a little more detail, I

think

the

will

Democrats

confidence in him.

have

I think he has

already shown in the last
that he intends to work on

We have had

have

have

had

had

convictions,!
deportations, we.

removals,

closely

with

and

months ago — that on
single important decision or
every single conference with Con¬
gressional leaaers in respect of
loreign-policy matters, the leaders
of
the
Democratic
Party were

have passed

there with the leaders of the Re¬

who

some

session

every

publican Party;

and

of

deal

to

trusting

12

Communist

in

laws

Congress,

with

the

threat

har-.
as

this

last

all designed'

question^ of th<
ColnmujRf'-

and

And

Senator

Jenner, himself,
always one to take a;
friendly view towards the Admin¬
istration, nevertheless said that

I think the

Democrats realize that.

is

not

this Congress has done more in:
we won't discuss
foreign policy, but Legislation to deal with the Com¬
hope and pray—I do—that it will- munist menace than any previous
be worked out on a bi-partisan
Congress since it has been a threat
basis, because I think it is in the to our National security.;
I won't take the time to review
interests of all the people and in
the interests of our own survival those laws, but I think probably
most
of
that it be- done that way.
you
are
familiar with
So I think that

the

field

of

them, and that claim is
The Issue

of

Communism

able

On the question of Communism

in Government, I am not
go

going to

into that very much today, be¬
the point I want to make in

cause

we

going to do cer¬
And I submit to you
are

continue.
it

How much of

times I wish and sometimes I pray
that these hundreds of people —
these 10 million

people—in addi¬
addressing communications
to the Senate giving their views
as to what should be done, would

tion to

also, in the National interest, ad¬
one
to
Senator McCarthy

dress

on

has

made good on

his promises. And
despite the fact that all of these
issues have not been fully re¬
solved, there has been an effort
in

connection

them—a

with

asking him to please cooperate a
little more with his colleagues in

quite

as

fear¬

Communism, who hate it as

fully as he does, and who want
to fight it just as much as he does.
The
issue
of
corruption,
of

every

consistent

issue

be, I don't know.
What
McCarthy is going to do
next year, I don't know.
Some¬

the Senate, who are

of

an

will

Senator

ful of

made

justifi¬

Of course, the efforts of com¬
bating Communism at home will

tioned, we have made good
those promises.
'Jhe President

one

a

one.

of these issues which I have men¬

>**

a

way,

ist subversion.

connection with all of these issues,
conditions
where
we
are
fighting the Cold War for our which are going to be continuing
very existence,
partisan politics issues, too, is that when the Re¬
should stop at the water's edge. I publican Party took the position
have always believed that. I think on these issues in 1952 through the
President of the United
States,
who was then a candidate, Gen¬
eral Eisenhower, they then made

1910

Depart¬

every

non-partisan

or

tain things.
that in connection with every one

ESTABLISHED

have

had indictments by the hundreds.'
The Department of Justice is work-;

monious

such

Sherrerd

we

ment of the Government in

bi¬

we',

and

have had executions and

ing

year
a

existed.
we

it
basis. > should be done, and I think that
The record shows—and I remem¬ represents somewhat of a
change
ber that Senator Knowland put from the
prior Administration.
this into the Congressional Rec¬
And on the Legislative side, we'

partisan

if elected

&

rather,

now.

In connection with the
Com-i
all worked
basis, and it' munist issue we have done a lot.,
In tfie Executive Branch of the
if you have a Congress controlled, Government,
drastic steps havet
by one party and the Presidency been taken to clean out the sub¬
controlled by the other.
versive elements where they have
out

certain definite commitments that

Butcher

fprm,,

and'' licans

Senate

out.

to

and then forgotten. But I am
very;

could

Repub¬

the Marshall

House,

true

That is a very important thing, .;
because frequently in a campaign,
promises are made very glibly,

foreign policy. Thanks to that and

ord

other

But I would say that, in the
general reckoning, those might be
called*subsidary issues compared

sary

to

in

Vandenburg, and his leadership in
connection
with cooperation
on

bring with him so many

nm

done its share

great
Arthur

Michigan,

from

has

and I think the Republican Party
in the Legislative branch has also

that

remember

will

You

Senator

course;

into the

subsidiary is¬
sues, such as Hawaiian Statehood,
Labor Legislation, amendments to
the Taft-Hartley Act, which didn't
get through the Congress, and
which may come up again.

despite the results
of the last election, the funda¬
mental
political philosophies of
the parties haven't changed, and I
don't really believe that the po¬
litical philosophies of Congress it¬

„

what

the

There

philosophies of the two parties—
in their political philosophies.
think

Outgoing

I think we have

years,

back

sion than it

the fundamental difference in the

I

the

of

much hotter issue in the next

upon

ernment, which should build up a
bigger and bigger Bureaucracy.
Perhaps that is a slight exaggera¬

the Republican phi¬
losophy can best be stated by
quoting Abraham Lincoln's posi¬
tion on that, which has been con¬
firmed this year and last year by
President Eisenhower when they
say that:
suppose

President

80th

party will go ahead
Treaty Organization, al-, with these issues which have not
though it came about later, of been fully resolved.
And 1 wilL

Administra¬
think you
will agree with me that these is¬
sues included principally the fol¬
lowing:
Korea, Communism, corruption,
taxes and spending; inflation, farm
surpluses and high, rigid price
supports bringing them about; and
the
question of Government in
business, the question of State's
rights and private rights, and per¬
haps the question of foreign and
economic
policies on tariff and
trade, which I think will be a

people should become
more

two

look

put

should
be

the

really the father of the North At-' I believe

bit later.

a

tion in power in 1952. 1

the decisions of the Federal Gov¬

factor for the next Congress.
I

in

in

Review

next

stronger Federal Govern¬

a

in

In order to look ahead

did in 1952.
This

16 votes.

Congress

Democratic

think it will be to the advantage
Of all the people of these United

or

real

deal with
A

Party, because I
think they will control the next
Democratic
Convention, just as
they did in 1948, and just as they

leisure,

some

deficit of 15

of

control

in

lantic

Party, which, I think,
the extreme left-wing of

still

a

the

change there has
made very little change in funda¬
mental
philosophy of the Con¬
gress.
But there has been a

to

Democratic

more

And like a good race horse, a,
good thoroughbred race horse, the

good

a

Congress.

the type of legislation
which is reported to the Congress
for consideration, a subject I want

government," and if I
say anything that sounds

minority, the majority has to do
all the planning and conduct all

But

think,

Now, Mr. Bryce has suggested should
that we might look ahead a little
partisan, it will be purely coinci¬
bit into the coming sessions of
dental, and I hope I shall be for¬
Congress. We face a changed sit¬ given.
uation, of course, with the Demo¬
As against that, we have been
crats in control of both Houses,
faced with the growing philosophy
and that is going to be, in some
of our opposing party, the Demo¬
way, very nice, because when you cratic Party, which is not shared
are in the majority, you
have to by all Democrats by any means,
attend all the meetings and
be but which is shared, I think, by
call.

set

President and when

was

were

we

the leadership,
and
there is going to be a change, I

of

ence

have

we

change

philosophy, the Republican
philosophy, and I should have in¬
troduced my speech by saying that
we
are
going to discuss politics.
Webster defines politics as "sci¬
our

ing it.

on

Republicans

example in that regard when Mr.

effort.

big issue in 1952,
will agree—and
we
all can agree—that this Ad¬
ministration has taken dras.tiq
was

course,

and

I

think

a

one

♦

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Volume 180

Number 5386

.

The Commercial and Financial Chronicle

..

steps to clean house, to get rid of
the
grafters and the evil-doers
and

the

the

five-percenters.

influence

that has taken

peddlers

of the

and

* Thef

place is

thing
change in

a

done

tive action.

ary

spending stream by Execu¬
On the Congressional
side, Senator Bridges pointed out
at the close of the last
Congress
that we appropriated in this Con

the attitude, both within and with¬

gress

out the Government Service. What

vious session of the

lot

a

The cash
on

a

budget, if you operated

cash budget, and not

an

ad¬

ministrative

Congress, and

budget, this fiscal
year, would be within $1.5 billion
of a balanced budget.
I don't look for any substantial

is

new; is that it is now known
$27 billion less than the last ses¬
that graft and corruption and in¬ sion of the last Truman
Congress.
fluence peddling will not be tol¬ That is quite a change. The point
erated after it has been discov¬ lis, we have put the
spending

amount of tax reduction next year.

ered.

re¬

After

fis¬

budget, we are spending 66% of
every
dollar that we spend for
National
Security — two-thirds.

Get

there

rid

of

them

fast.

stream into reverse,

And

is

captured

a
new
atmosphere—a
cleaner and more whole¬

newer,

cal

and have

control of

some

affairs.

our

-r

As Senator Byrd, himself, said:
atmosphere all through every
angle of the Executive and Legis¬ •"We have begun to recapture

some

lative Branches of the Government

control

in

which

connection

with

such

matters.

to have

end of

an

that, too.

'The THA scandals,
had something

hearings,
shocking

were

to

with

those

the abuse of

abuse

.

Govern¬

of

have

we

had

ever

history of the United States.

That is going to result in a lot of

convictions.

some

I don't

'

glad to
colleagues

ocratic

see

with

:

last session

feel

try to do

that they will

of

Georgia,

the

Government

In¬

of

the

many

the

or

Senate,
an

.

.

spon¬

amendment

had

the

in

two

or

of,

ulti--

Social

a

I

cost

Spending and Taxes

to

Government

given of what

was

ing for office, that if elected

something about that.

the

shows

record

this

very

that

year,

as

going to

we

I think the Democrats

we

to demand

you

were

we

for money instead of

were

a

cut

suggest

blessing and

had a $1 billion de¬
the excise tax, and the

you

lieve,
line

Tax Revision Bill amounted to

we

with

our

forts to balance the budget

and

ing

and

is

the

most

constructive

United

reform

of

Congress.

bill

or

.

of

sure that
not
cutting

with

reductions

stopped in Jan¬

The dollar today is
just as much as it was then
and, in my judgment, it will be
kept at that value of purchasing
power so long as we are in con¬
trol

the

of

of

Government

the

partments

in

Now, I
matter

Farm

Surpluses

friends, earlier I men¬
question of farm sur¬
pluses.
That is going to be a hot
issue, although, I believe, that any
that hath eyes to see will recog¬
nize that the people in this coun¬
try endorsed the Benson program
of flexible price supports, which
was boldly supported by President
Now,

tioned

my
the

Eisenhower.
We

have

improve

Executive

Branch of the Government.

special interest to this

which is our commitment
try: to get the Government out
restore to pri¬
vate industry the things that
should be in private industry. ; ;
When this Administration cam©
group,

the

time
over
$7 billion of agricultural
products in storage in the United
present

this

Government

Now,

into power, we found

Government in
ferent

President's

to

other expenditures.
we
are
going
stick

to

our

We have been
private industry.
Amongst those, for instance, you
will recognize the 28 rubber plants
for

and syn¬
manufacturing plants

this country;

big chlorine planti
couple of sawmills, and
uniform manufacturing plant in

There

was

We had
a

a

a

and

Brooklyn,

a

lot

DISTRIBUTORS

It

is

our

where they belong.
policy, and it will con¬
be our policy, to encour¬

tinue to

and

private enterprise to expand
to do the job wherever pri¬

vate enterprise
do the

Promoting

program

is in a position to

job.
an

Incentive Economy

That is what I call an
as

economy

controlled

against

Effective Distribution in
.•

-.

•

.

Third

••

ing to stick to the incentive econ¬
the incentive-type of tax
legislation which is not punitive,
but which encourages people to go
ahead and do the things that need
to be done for the expansion of

American
creation
I

think

with them? If you dump them,
will interfere with the liveli¬

industry

of

more

that

Drexelk

course,

Established 1838

Distributors

BROKERS

Industrial and Railroad Securities

State, Municipal land Revenue Obligations

Largest Trading Area

.

New

York

Stork

-

Company

New York Stock

Members:

Exchange

•

Exchange

American Stock Exchange

American Stock Exchange

(Assoc.)

Philadelphia-Baltimore Stock Exchange

Philadelphia-Baltimore Stock Exchange

Walnut Street,

New York

City.

Philadelphia 2, Pa.

Lebanon




:

Atlantic City

Philadelphia 1

LOcust 8-1500

,

-

Vineiand

~

;

New

1500 Walnut St.

1401

14 Wall Street

York 5

on

the

for

more

if any of

Continued

Members

.r

and

and

the Nation's

&

punitive

We are go¬

economy.

too

•*

incentive

a

omy—

you

Public Utility,

others.

lots of others,

Where will you

Underwriters and

of

They are just a few examples, but
they have been returned to pri¬
vate owners—these and lots and

the

(we will turn up a deficit of about
$4.5 billion) nevertheless, I think
that our policy actions so far have

of artificial

manufacture

the

ef¬

But I
to be

of dif-

and we have

selling them to

designed to cut down this ac¬
cumulation, to stop it so that we
don't keep on building it up.
It
is very difficult to get rid of these
surpluses.
We can't give them
away abroad, because if we give
them away in Turkey, we are in¬
terfering with the Turkey wheat
go

—

been selling them.

is

farmers' market.

the Federal:

all kinds

businesses—dozens of dif¬

ferent businesses

day just to pay for this

the

>

to

age

at

<

going to discuss a

was

of

thetic fuel
The

against

the

.,

;■

gram.

rubber in

United States.

the

of

of

UNDERWRITERS

••

do

I

1953.

uary

and
while we probably will not bal¬
ance the budget in this fiscal year

January 1954, approximately
had been taken out

•

was

a

defenses

the

behind the
Benson pro-

are

defense

believe

able

billion

i

people generally

all

and

themselves

farmers

of the

be

is

connection

in

any

do

made possible had not the spend¬
ing stream been substantially cut.

$5

to want to

much

t So, we have gone that far.
Those things would not have been

i Even before the tax

and

all be fortunate

can

worth

And also the

them

try

ports, that the election results of
1954 did show, by and large, the

storage cost of those items.

help

will

to
rigid price sup¬

States.

Government

history

^

we

that inflation

have $1.1 billion for

to

areas

and

program

The Democrats, I know, are go¬

comprehensive
tax

tax revision bill in the

feel that

$700,000

you

order

this

will be able to hold the

connection

in

subjects,

favorite

my

operating expenses of from 14% to
were made in all of the de¬

boon to people all
States.
So, I be¬

a

approximately $1.4 billion. That
bill, incidentally, touched the lives
of every single American
family,

or

.

22%

the United

over

decreases due to the Tax Reform
or

poorer, and you
can prove, it mathematically very
easily. If I had more time, I would
like to do that. That was one of

And, as far as the departments
concerned, in the first year

stopoed inflation, a fact that is a

Democrats from certain

of business, and to

It costs

their

by the fact that we have absolutely

that is what Secretary Benson is
trying to do.
But, I do believe, that while the

and the poor .get

of the new Administration cuts in

pire.

the politrather

country

in

because

an

give"&

cumulation, and in some wayYind
gradually. And

philosophy

are

stop,

It is

even

markets for them

gradually, and it has resulted in
destroying the value of the sav¬
ings of millions and millions of
people at least to the extent of
50% in the past 15 years.
It is an
evil in which the rich get richer

connection

ing has been improved somewhat

to

this

of

party;

philosophy,

evil.

technical aid to friendly countries

And,

difficult

be

an

States.

Then

some

$2 billion in reduction of
individual income taxes, when the
11% increase was allowed to ex¬

in

icaL life

the Com¬
munist menace, and
raise their
living standards so as to decrease
the Communist opportunities
in
their country, and so on.

to

And

? Then

in

apd a very broad one. However,
I do think that the people's think¬

l,,.of which $3 billion, I
think, was excess-profit tax, a
very punitive tax indeed, I always
thought, that was allowed to ex¬
pire. ,

crease

and

the

to

evil that has crept into

;

taking people off the tax rolls has
a
very interesting public appeal

fect Jan.

i

Marine

committed

that inflation is

Post Office deficit is in that figure.

as I say, they
changes along
the lines that Senator George pro¬
posed last year, and that is going

will

is

and

with Civil Aviation.

review of the whole

tax structure.

know, had reductions in taxes of
approximately $7.4 billion.
5 And
$5 billion of that took ef¬

:

chant

going

are

;

cannot

you

restore the high,

communication in
connection with roads and high¬
ways; in connection with the Mer¬

portation

budget' by $10 billion?

our

I

use

How

.

defense

So

try.

them away. The way then to deal
with this thing is to stop the ac¬

President believes, and our

or

;

the

on

livelihood of

of

means

attack

Then, $1.8 billion is for trans¬

explana¬

no

it should.

back

cut

and

thousands of people in that coun-

hot issues in 1952. I think that the

will ad¬
change of that nature.

don't think

of something

And

party is advocating

hood

Likely

which, for the over-all Na¬
tional Security item, totals ap¬
proximately $42 billion.
I mentioned the question of in¬
flation, because it was one of the

Security, Welfare and
Programs.
I don't think

vocate any

to $1,000 a year at a

year

like $10 billion.
tion

our

Reductions

items

tion with Government interest in

three

taking hundreds of thou¬
sands of taxpayers off the tax roll,
by increasing
exemptions from

going to

in

commitments

further

Security, Welfare
and Health Programs, which are
contributed to by the Government
of the United States.
And, I will
say to you, that you are not going
to get very much change in the
philosophies of people in connec¬

years,-

that.

have

year.

about the

veterans

Health

We said, when we were
campaign¬

think

a

which
We can't

Tax

So, I suggest, that we are not
going to be able to do very much
in the way of tax reduction from
here on,
until we are able to

tion with Social

years

have

would
effect

mate

Now you have the very import¬
ant issues of taxes and
spending.

would do

the National debt,

/There is $1.9 billion in connec¬

*

It was

indeed, in the

me,

bill

a

which

<

we

little

that: figures

on:

Federal

who for

Committee
sored

con¬

tinue in that frame of mind. 4

very

and the combination of those two

when Senator George

r

sure

have

over.

on

$600

and

one-third,

by Legislation,
which itotals $4.4 billion a year;

had been Chairman of the Finance

Now that they are in
control of the Committees, I
hope
are.

we

$6.6 billion

to

going to continue
'I think that we are

surprise to

a

side

we

of

our

>We can't do much about the in¬

budget of

Tax for individuals.

come

that they are just as
anxious to clean this Government

as

control

are

that.

connection

the Dem¬

on

We

do

which

Government.' do much

would

we

balance

look at

is $11 billion.
There is
'from the Democrats in Congress.;; also
$2.8 billion in connection with
:I think that the Democrats are go-; the Farm Program, concerning
ing to move as they did last year; which I want to speak in a mo¬
to i n e r e a s e the exemptions in ment.;
-'V:\I'y'-

on behalf of my
the .Banking and

Currency Committee

States

going to have opposition

say,
on

United

that.
-to

how they can be escaped.
That
will, of course, continue.; But I
am

items

con¬

is

We said that

the

you

half of that is in conenction with

terest

tthe

indictments and, I am sure, prob¬

ably

we

of

mitment to balance the

in which I

do

exposure of

ment credit that

in the

'

•

probably: the most

of the

power,

-v

affairs

of

We will press on—the Republi¬
cans will press on—with our com¬

tween

the two parties, because I
think the Democrats are very
glad

fiscal

our

practically had no
prior to this election."

trol

So, of course, I think that that
is not going to be an issue be¬

of

And

all, when

No

inflation¬

States.

United

$7 billion less than the pre¬

the

stem

to

tide, and to take the inflation¬
gap out of the budget of the

ary

¬

87

(2539)

jobs.

you,

as

page

88

.

The Commercial and Financial Chronicle

Thursday, December 16,1954

...

(2540)

88

which

of that kind

Continued from page 87

unattractive

relatively
capital.

are

Continued from page

85

private

to

hydro-electric
development
calls for $300 million and that is
But

of

The Next Two Years

going to be done by private cap¬

The Eisenhower Regime
Bryce suggested a while ago,

Mr.

down

go

talk

to

Washington

to

the

of

any

men

Securities and Exchange

sion

or

on

to
the

Commis¬

the Commissions,

of

any

now,

interested in you.
You
don't get the feeling that they are
against you.
They are interested
in you, because they know that
in you rests the security of your

they

are

section of the American industrial

interested in helping
both large
small, because they realize
upon the success of Amer¬

They

are

American businessmen,

and
that

business

ican

and

industry

rests

all these

jobs and really rests our
National Security,
I think that
is a change, and I think that it is
a very constructive and very cred¬
itable one which has been brought
about

by the Eisenhower Admin¬

istration.

will

calls

And, that,

my

friends,

On the

question of public power,

Partnership

the

Plan,

Government

with
doing

which private capital

those things
can't

come

ing those things which it can do

going to be an issue. It has
up, of course, in connection
business.
point

Dixon-Yates

this

with

The President has taken the
of

and
I described, in the Re¬
philosophy, that the

since,

as

publican

Government should only do those

which need to be

and those things

l

this philosophy is be¬

sure

am

hind the Dixon-Yates contract
which has caused such a great

dis¬
The trouble with that

turbance.

disturbance is that those who are

well do for themselves,

opposed to the Dixon-Yates con¬
tract aren't opposed to the Dixon-

so

As a result

And he stuck to that.

passed the Priest Rap¬
the Markham Ferry
Bill, the Coosa River Bill down in
Alabama, all for the construction

Yates

ids Dam Bill,

opposed

of

hydro-electric plants on our big

rivers, with private, capital doing
the job instead of the taxpayers

having

to

to do the

In

fork

the

over

Rapids

Priest

the

case,

Of

this

with

tion

and

approxi¬

project,

mately $50 million

we

$350 mil¬

will use, as an example,
lion.

money

job.

is in connec¬

navigation

irriga¬

and

flood ^control

and

items

HAIGHT,

contract

They are
They

se.

per

to any contract.
the TVA to develop

want

those

650,000 kilowatts of; electric
They want the Government
do that.
We don't.
We think

ergy.
to

is
ready, willing and able to do the
job, it should be encouraged to do
that

long as private capital

so

that,

And in doing

it.

the

we save

in this particular case
approximately $107 million cap¬
ital outlay at a time when the
taxpayers already have too heavy
taxpayers

burden

a

their backs

on

because

of the National Defense situation.

Stanley

&

HALLIBURTON,

IIALLOWELL,

Hancock,

of

the

same

I

haven't

in the

been

investment

business
for over
20
years, but I have a financial back¬
ground
in the most
important
years of my life, and I
believe
very strongly in our system.
So
naturally it has been a very great
banking

Members

Philadelphia-Boltimore Stock Exchange

N. W. Corner 16th

300 N. Charles

& Locust Sts.

St.

Baltimore 1, Md.

Philadelphia 2, Pa.

privilege for me to find myself in
a
position where I can do some¬
thing about it.
It has been a
special inspiration to me to be
able to support the President of
the United States, because I be¬
lieve

strongly in him

so

in¬
philos¬

as an

dividual and in his general

&

DOUGLAS
<fe

agree,

HANSON,

time of

PENNSYLVANIA

SECURITIES

a

good

Dwinnell,

Harkness

HARRINGTON,

ice

SCHMIDT, POOLE, RODERTS « PARKE
SOUTH

BROAD

STREET.

PHILADELPHIA

N.

&

2-4554

MEMBER

Philadelphia-Baltimore

that
the

we

do

that

Stock

Exchange

of

people

individual has
for the people over

the

last

in

20

years;

or

had to
a period
perhaps

himself, I think, properly and

that

Bank and Insurance Stocks
>

Utilities

Common and Preferred Shares

the

of

American

he

criticism, of

doesn't

Guaranteed Rails

its

that

1*11

HO

Street, Philadelphia 2

RIttenhouse 6-7700

this

—

Underwriters,




L.*

duPont

6c

MATTHEW

112 CONTINUOUS YEARS OF

l

SERVICE

Co.,

J„

New

York

III

TO

19 5 4

INVESTORS

MOYER & CO.
MEMBERS

YORK

STOCK

STOCK

STOCK

AMERICAN

1500

EXCHANGE

EXCHANGE

EXCHANGE

(ASSOC.)

Phila. 2, Pa.

Walnut St.
KI 5-0340

Distributors, Dealers, Brokers

Dealers and Brokers in

Public Utility

in

our

Railroad

•

•

Industrial

SECURITIES
New

Jersey

and General Market Municipal
and

Electronic

Television

Bonds

Securities

Bank and Insurance Stocks
Mutual

Funds

Shares

Charles A. Taggart &

Co., Inc.

Philadelphia-Baltimore Stock Exchange
Investment Securities

side

side has

1500

Walnut

Street, Philadelphia 2, Pa.

Philadelphia Phone
Kingsley 5-1716

New York Phone

Teletype
PH

677

WHitehall 4-7000

measure

I

don't

the President

the big middle

by getting too

deep

into the question of partisan

poli¬

country

tics.

Now,

I

that

say

are

some

because

I

Rambo, Close & Kerner
Incorporated

Republicans

in the Congress who believe that
he should exercise more persua¬
on

the Congress of the United

I, personally,

would
do

feel

am

not

him to do

urge

one

that

in this very

lucky.
And
serious time we have

had

the

in

leader

him
that

Abraham

will

more

1907

Houston

CHARLES
I.

section of the political thinkers in

you

Since

want

we

to lose his grasp on

but I

JANNEY & CO.

large

a

fighting, and

own

think

that

1529 Walnut

Hess,

&

Hickey & Co., Chicago

course,

our

our

survive

are

States.
New York Telephone

take

Well,

going to
philosophy to do
we

sion

WOrth 4-2 140

Francis

Chicago

Mrs.

Members

hears

think there

«

Bell Teletype Synrm

New York
P.*

6c Co.,

WILBUR E.*

Fridley

Miss.

HICKEY,

cor¬

got to be good enough, I think, if

of

Pennsylvania Tax Free

', City-County-State-Authority Issues

New York
C.
Dcs Moines

KARL P.*

Day

ARLEIGH,

HEWITT,

United

lifetime. And he holds

our

strong enough.

¥

Co.,

people;

the

any

even

JANNEY

Industrials Rails

6c

his

spent

of his

rying the heaviest responsibilities

One

markets

6c Sun,

than 40 years of serv¬

the

cross-section

active

HESS,

A.*

J.

Govern¬

people.

trading

RALPH"

THEODORE

Woodcock, Hess 6c Co., Philadelphia

Boston

Hill,

York

we

rectly, somewhat above this fight¬
ing level of partisan politics.
I
think that is why he is held in
such affection by such a broad

Call

L.

New

a

States, and who, I think, has been
elevated by his experience in car¬

of

Y.—Hanover

R.

HESS,

B.

Co.,

F.

San Francisco

Co.,

Henderson

HERZER,

York

New

C.

T.

Louis

BARCLAY

FULLER

Mr. and

MARCO
&

World-Telegram

St.

NEW

which

has

who

service

more

to

carry

PHONES

Phila—Kingsley 5-0650

in

of

head

man

the

Barth

HENDERSON,

Fairman, Harris 6c Company,
Denotes

JAMES M.*
Hammill &

HENDERSIIOT,

Toronto

Harrington 6c Co., Jackson,
DAVID

G.

Heimerdinger,

Shearson,

6c Co.,

ROBERT

JOHN

Woody &

1IELLMAN,

A.*

WILLIAM

Heimerdinger,

who, I think, has been purified by
these

123

the

a

in

life

Preferred & Common Stocks

trial

years,

many

at

ment

Municipal & Corporate Bonds

HELLER,

York

New

Denton,

Barney

1WL*

JACK

Cincinnati

Globe-Democrat,

Louis

Washington
York

New

very

severe

have

Times,

can

we

perhaps going to be living for

are

Walter,

J.

&

P.

PAUL

HEIMERDINGER,

TELFER*

Bros.

D.

Canada,

Cincinnati

Bankers Association,

WILLIAM

Company, Chicago

A.

of

Woody &

Walter,

York

New

R.*

Company,

of us can agree,
fortunate in this

most

are

be

you

Republican

a

or

or

we

whether

that

think

York

New

Company,

Washington

*

HON.

Ambassador

Inc.,

W.

Downing & Co., Baltimore

K.

Central Republic

MURRAY

Investment

HARRIS,

EDDE

HEENEY,

PHILA.-BALT.

Democrat

that

HAYS,

HANRAHAN, PAUL R*
Hanrahan & Co., Worcester
Shields

II.*

Savings Bank, Chicago

HEIMERDINGER.

HANSON,

H.*

HARDIN

Baumgartner,

Chicago

Orleans

Exchange Bank,

Corn

Harris Trust 6c

D.

Hannaford,

Dawson,

ophy.
I

HAWES,

Atlanta

Smith,

New

York

New

GILBERT*
Sanford,

ALFRED

HEFFERNAN,

HANNAFORD, JAMES

HANSEL,

Bank,

HAYDEN, DONALD

Blackstock

HARDING,

out

R *

W.*

ROY

York

New

York

New

Chicago Tribune, Chicago
HANCOCK,

B.*

National

Jr.,

Chemical

H.
& Co.,

Chicago

Co.,

Co..

&

Hattier &

HA USER,

T
New York

HAMMOND, Jr., WILLIAM C.
White, Weld & Co., Boston
HAMPSON, PHILIP H.

St.

coming

HENRY

W.

Bosworth

Braun,

Chase

IIATTIER,

Sulzberger & Co., Philadelphia

Hallowell,
HAMMOND,

I do have a few other ob¬

me

K>

&

|
York

New

G.

HATCHER, ROBERT L.*
The

Winthrop & Co.,

Robert

HAPP,

background of business, although

York

Corporation,

IIALLORAN, ROBERT

L.*

LLOYD

Weld

White,

HARKNESS,

to

New

G.

Nashville

going to close with just a

am

Co.,

GUS

Securities

Equitable

Becker

G.

White,

S.

Morgan

JAMES

City Bank,

HASSMAN, ELMER
A.

New York

Company,

National

HATCHER,

HERBERT

HALL,

&

HARRISON,

York

New

B.
Operations Administration,

ing to close with a little different
note.
It has been an inspiration

BROOKE & CO.

Co.,

HALL, EDWARD

servations here, but I am just go¬

1912

Allen

York

New

D*

&

Day

Burns

I

word.

ESTABLISHED

M.

Inc.,

Co.,

DENTON

L.

R.

C.

Jr.,

&

Tripp
HALL,

h*

Sachs & Co., New York ;

Goldman,

HARRIS, NORVIN

Washington

things which the people cannot or
cannot

Mason-Hagan,

HENRY

HARRIS,

C., Ill*
Inc., Richmond

JOHN

HAGAN,

Foreign

done.

election

his

before

view

and private capital do¬

do,

In Attendance at IBA Convention

President

that is

tion

continue.

the

what

Federal

the

of that, we

scheme.

is

That

ital.

we

we

Municipal Bonds

Authority Bonds

greatest spiritual
have

had

since

Lincoln, and he will, if
just give him time, do

than anyone

Lincoln

Corporate Bonds and Stocks

are

to

restore

since Abraham
the

1518 LOCUST

ST., PHILADELPHIA 2, PA.

American

Government to the hearts and af¬

fections of his

people.

"T

Volume 180

Number 5386

The Commercial and Financial Chronicle

.,.

(2541)

89
■

•'<£>,
HILDRETH, WILLIAM S.
Peoples

National

JOSEPHS, DEVEREUX C.

Bank,

Charlottesville

New

Malvern

Hill

&

Company,

HILL,

ROBERT

Richards

York

Co.,

Los

J.

J.

B.

Hilliard

&

EDWARD

KAHN,

New

Smith,

New York

JOHN

V.

Brothers

Barr

&

Morgan

HORNER,

&

S.*

EDWIN

Scott, Horner

HORNING,
Stiiel,

Mason,

Penington,
Calvin

&

Colket

C.

St.

&

Co.,

,

.

'

.

Hogle & Co., New
HOWARD, ROBERT P.*
&

&

HOWELL,

WILLIAM
W.*

KNOOP,

*

New York

New

Durst,

KNOX,

Inc., Los Angeles

MacGregor,

Pittsburgh

Milton

White,

G.

Hulme,

Weld

&

New

Co.,

NORMAN

W.

Huston

&

Co.,

E.

Hutton

&

Co.,

Southwest

Company,

Bache

&

Co.,

JACQUES,
First

Southwest

JAMMER,

Boettcher

JARDINE,

&

Jr.,

William

R.

JENNETT,
First

JOHNSON,

Chicago

EARLE*
& Co.,

EDWARD

E.

Los Angeles

H.

F.

Peabody &

I.

P.

New

Co., New York

JOHNSON, THOMAS M.*

Company,

C.

Dallas

&

Company,

Beane,

Kansas

City

York

New

J.

&

Co.,
G.*

&

Corporation,

WILLIAM

Weeks,

Securities

Dow

M.

Lynch,

&

Northwestern

Corporation,

Pierce, Fenner & Beane,

STEVENS

Company,

&

N.*

ARTHUR

Camden
&

Co.,

Co.,

Jr.,

&

New

J.

Barth

&

LEACH,

JONES, EDWARD D.

LEAF,

HAROLD

R.

White

&

Q.

S.*

Cook & Co., St.
Jr.,

A.

Philadelphia

E.

ELISIIA

R.

Jones

JONES,

G.

Bankers

JONES,

&

Co.,

St. Louis

Bulletin,

York

NEWMAN,
Allan

VINCENT*

Blair

NEWTON,
G.

H.*

Bank, Minneapolis

&

Walker

H.

Company,

GEORGE

NICHOLSON,

&

DANIEL

IRA

LEE,

York

&

Research

,

Peters,

Writer

LEES,
Ira

Inc.,

Denver

Joseph,

&

Miller,

Denotes

Mr. and

LENZ,

Cleveland
' &

J.

&

NIX,

Co.,

St.

C.

Riter

Louis

NOEL,

N.

Trimble

&

Van

Mitchell,

Bradford

&

Co.,

WALTER
&

SIDNEY
Mohr

&

V.

Co.,

RICHARD

NOKRIS,

New

York

New

Alstyne,

NOKRIS,

Peabody

&

Co.,

New

S.

.

f
&

Co.*

New

York

M.

C.

B.*

Collier, Norris & Quinlan,

;

Montreal

J.*

Farish,

Continued

Montgomery

Securities

New

on

page

91

0

York

Corporation,

J.*
&

Co.,

LOOMIS

New York

C.

STROUD & COMPANY

JAMES

Lynch,

Incorporated

II.*

Lemon

VVIMHROP

Co.,
C.*

&

Pierce,

Washington

Fenner

&

PHILADELPHIA

Beane,

York

Underwriters & Distributors

Securities
State and
.

Specializing in

Municipal Bonds

Equipment Trust Certificates

Public

Pennsylvania Tax Free Issues

Utility and Industrial Securities

Philadelphia Bank Stocks

Yaunali., Bidding & Co.
Members
New York Stock

Exchange

Philadelphia-Baltimore Stock Exchange
Exchange (Assoc.)

STREET,




.

C.*

Noel

EDGAR
H.

York

Corporate and Municipal

WALNUT

Nashville

ALLEN J.

York

Company,

Dealers in

1528

,V.V

EINER

NIELSEN,

Chicago

S.*

E.*

Haupt U, Co., New York

Merrill

Mrs.

American Stock

'

Angeles

New

Wheeler & Alleman, Orlando
Jr., LEON S.*

Johnston,

,

*

Los

Co.,

Hutton

Jr.,

LEMON,

HERMAN B.
Mellen

V

Chicago

Leedy,

Christensen,

&

E.

LEEDY,

Boston

JORGENSON, JERRY*

JOSEPH,

JAMES

W.

G.*

Securities

Corporation,

Louis

F.

Nashville

New

Company,

Chicago

A.*

Co., St.

T.»

&

Equitable

Baltimore

Co.,

D.

LEDYARD,

RIGGS

Co.,

ORIN

Estabrook

SEAVER
Trust

National

&

Jones

Louis

JOSEPH

Evening

R.

JONES,

D.

L.*

Philadelphia

CHAPIN

Newhard,

York

FRANK

Co.,

LAWRENCE, WALTER E.

Wood, Gundy & Co., Inc., New York
JOHNSTON, PAUL A.
Barron's Weekly, New York
Edward

Houston

J.

&

Newburger

Cleveland

New

Bank,

JOHN

Thornton,

York

New

York

Chicago

Distributors,

Hallgarten &

J.

Marshall,

Jr.,

MOIIR,

K.*

ANDREW

New

NEUIIAUS, PHILIP R.
Underwood, Neuhaus
Hentz

Chicago

V.

Co.,

LINTON*

NEWBURGER,

York

Kidder,

Columbus

Company,

WM.

Angeles

Chicago

Cook

MOFFITT,

Curtis,

Los

D.

WILLIAM

Illinois

&£.■

DONALD

JOSEPH

Greenville,

Jackson

Company, Chicago,

Nicolaus & Company,

NELSON,

York

LEWIS

MITCHELL,
New

Angeles
Corporation,

New

New York

ANDREW

Newhard,

A.

Antonio

B., Ill
Richmond

Co.,

G.

Ohio

NEWMAN,

National

National

First

MILLS,

&

MURRAY, Jr.,

York

MIDDLEMIST, JOHN

Caldwell,

Webber,

Co.,

San

Philadelphia

Co.,

EDWARD

Laidlaw

Company, Cincinnati
ROBERT

&

,

Corp.,

BEVERLEY

NEWHARD,

Bank,

>

York

Co., New York
NEWBORG, LEONARD I).

II.

New

New

D.*

MURPHY, LESTER
Barr Brothers &

H.

MAURICE*
Co,,

Jones

MILLER,

&

Discount

National
&

MEYERS,

Ripley & Co., Inc., New York

MARCHWALD,

J.

W.*
Washington

GEORGE

The

MEYER, RICHARD

WILLIAM
Coe,

Corporation,

Milwaukee

G.

Bank,

Wells &

NEUMARK,
Baltimore
G.*

RUSSELL

Jr.,

Hirsch

York

Paine,
Los

MEYER,

HERMAN M.

Magnus

Merrill

Chicago

York

New

York

MAGNUS,

New

York

Higginson

Central

Inc.,

F.*

DESMOND

MANNING,

& Co.,

Lee

York

Co., New York

Investment

Delaware

Co.,

York

York

New

Dempsey-Tegeler & Co.,
MURPHY, DENNIS E.»

G.

&

&

LOUIS

MURDOCH,

The

Boston

Plain Dealer, Cleveland
ROLAND

MERRELL,

Philadelphia

Co.,
&

Cincinnati

Company,

WILLIAM

Cleveland

W.*

Weir,

Haven

CARROLL*

Miller

METZNER,

Harriman

New

W.

Mead,

Webber, Jackson & Curtis,

WILLIAM

New

Chicago

■

New

G.

Morton

Stifel,

Co.,

Lv

Company,
WILLIAM H *

MURPHY,

Webster Securities Corporation,

MELDRUM,

Young,

York

Chicago

Louisville

Co.,

ROBERT

Minneapolis

&

Company,

New

Brothers,

Davenport

New

Atlanta

II.*

EDWARD

MUIR,

G.

Street

ROBERT

Stone &

Trust

CHARLES

Noyes & Co.,

Mullaney,
MUNFORD,

York

Roth & Irving Co.,

State

H.

Muir

Dominick,

■

Co.,

MULLANEY, PAUL L.

D.

Scranton

Weil,

MEAD,

&

York

L.

G.*

International

STANLEY

MEAD,

Boston

B.

Lyons

MAGOWAN,

New

York

Now

w.

McLELLAN, PHILIP F.*

T.

MACKINTOSH,
Fenner

Company,

&

3ank,

&

York

Chicago

Co.,

Milwaukee

MUDGE,

b.*

STEPHEN

W.

McKIE,

L *

Dominion

Securities

Jr.,

Chas.

York

Fifty

Co.,

The

t

Company,

New

B.

Brothers,

MORTON,

New

.

Baltimore

WALTER E.*

Lehman

Northern Trust Company, Chicago
WILLIAM T.

McKEON,

Magazine, Chicago

W.

MACKALL,

B.

Hornblower

Lane, Space & Co., Savannah
JOHNSTON, EDWARD S.*

SAM

McLeod,

York

LAWLOR,

Johnson,

Pittsburgh

&

FRANK

Lehman

Petersburg

Exchange,

EDWARD

Dominick

New

Co.,

&

Jr.,

MORSE,

McINTIRE,

Boston

WELLS*

Moseley

The

Chicago

MacDONALD, GEORGE C.*

MAGEE,

HAROLD

S.

L.

Drexel

&

Pierce,

Trust

American

JOHNSON, ROBERT C.
Kidder,

New York

Weir

RAYMOND

LAVAN,

Co., New York

W.

Paine,

E.

&

Kalman

Co.,

•

,

F.

&

EMERSON

Northern

MORSE,

bert

david

McGREW,

The

Shafto,

MacARTHUR,

JOHN*

Starkweather

Share Corporation,

&

LAUN,
&

&

Goodbody & Co., Detroit
LAUDY, WILLIAM R.

H.

R.

Johnson

Friedrlchs

&

&

c.

Louis

Company,

CHARLES

Hemphill,

Boston

DEAN*

Galveston

St.

GERARD*
&

MORTON, FRED

D.

Co.,

Stanley

Yantis

MORSE,
Greenville, S. C.

M *

St.

&

Sons,

Robinson-Humphrey

The

Philadelphia

J.
P.
Morgan & Co., New
McFARLAND, DONALD E.

York

C.

Legg

MORRIS, PAT

Corporation,

Co.,

Stock

Mcelroy,

A.*

&

National

KEVIN

Finance

LYONS,

A.

WALLACE

Lynch,

Hutton

LAUDE,

Milwaukee

Indianapolis
R.

Lyons
LYONS,

Co.,

Young,

Bankers

T.»

Company,
JOHNSON, KENNETH S.

JOHNSON,

&

LYONS,

MACIIOLD,

LAUD-BROWN,

Chicago

Milwaukee

Indianapolis Bond

F.

York

LEWIS F.*

Wertheim

f

P.*

JOHN

JOHN

LATSIIAVV,

J.

Bank,

JOSEPH

York

Cleveland

York

New

Langley

Mackall

Merrill

Company,

J.

New

'

Philadelphia

Brothers

LATOUR,

Dallas

R.

Staats

National

The

Company,

LLOYD

LYNE,

Toronto

F.*

New

LYNN, EUGENE*

Co.,

JOHN

Jr.,

McLeod,

York

New

JAMES

Co.,

LANGDON,

American

Mcdonald,

S.

The

York

New

McDonald & Company, Cleveland

Company,

WILLARD

Mercantile
&

Nashville

Dallas

JACOBS, Jr., HARRY A.*

C.

F.

Boston

R.*

GEORGE

&

C.

&

Morgan & Co., Los Angeles
MORRIS, CHARLES K.

McCormick & Co., Chicago
McCORMICK, EDWARD T.

New York

New

&

York

Francisco

McCOItMICK,

WALTER C.

Allyn

LYNCH,

Pancoast,

LANDSTREET, BEVERLY W., Ill
Clark,
Landstreet
&
Kirkpatrick,

JACKSON, Jr., WILLIAM C.*
First

&

C.

W.

&

Weil, Labouisse,
Co., New Orleans

Philadelphia

'

W.

GERALD

LAGRUA,
Barr

Robinson & Co.,

York

Howard,

York

Chicago

LYNCH, Jr., CHARLES M.*
Moore, Leonard & Lynch,

ROBERT R*

Brooke

ILLOWAY, LAWRENCE B.
Aspden,

Atlanta

New

Research

&

Moreland

Edwards

MORGAN,

Co.,

Co.,

Fuvman Co.,

McCLEARY

L.

MORRIS, JOSEPH
&

York

RICHARD

G.

MORGAN,

Corooration,

Boston

L.

Marvin

Morgan

ALFRED

First

San

Paul

A.*

Co.,

A.

John

Trust

Hammill

McCleary

Jacquelin,

&

LYKLEMA,
A.

Company,

Morton

LABOUISSE,

New

York

New

S.*

P.

F. P. Ristine & Co., Philadelphia
IGLEHART, JOSEPH A. W.
W.

Banks,

& Co.,

Seattle

&

Laidlaw

KYNETT,

HUTTLINGER, KURT J.

The

Baxter, Williams & Co., Cleveland
LUCKE, FRANK I.

York

New

Robertson

H.

DAVID

<fe

New

D.*

Securities

MORGAN, Jr.,

McCANDLESS, JOHN A.*
Vance, Sanders & Company,
McCarthy, dennis h.*

S.

Brothers & Co.,

Carlisle

T.

KRUSE, JOHN A.
Prescott, snepard

Bingham, Walter & Hurry, Pasadena
HUSTON, HAROLD II *
H.

Stieglitz,

JOHN

KRUMM,

HURRY, HARRY W.*

Harold

Louis

Redpath,

Antonio

San

York

W.*

Camp & Co., Portland

Barr

J.

MOREY,

WALTER

Alester G.

Co.,v New York

Company,
MALCOLM

LOVE,

Bank

Incorporated,

Corporation, New York
MORELAND, J. MARVIN*

.*

Wright, Wood & Co.,
McCALL, ARTHUR C.

;

J.*

Illinois

National

Corporation,
1

Co.,

RODERICK

MOORMAN,

Houston

Milwaukee

Sales

Parker

McBRIDE,

Dabney & Tyson, Boston

JOHN

LOWRY,
&

Company, New

Dewar,

Association,
'

&

Sentinel,

Shearson,

Philadelphia

Langley

York

T.*

Co.,

York

The

LUCAS, WILLIAM E.«

Land

&

KRIET,

Pittsburgh

C.

&

&

Atlanta

WOODFORD*

Street

MAYNARD,

LOW, V. THEODORE*
Bear, Stearns & Co., New York

KOERNER, IRVING

JANSEN*

HUNTER,

Company, St.

Wellington

Allen

i

'■

New York

H.*

EDGAR

LOOMIS,

S.

Parker

WILLIAM

The

HULME, NATALIE
With

<fc

S.

LOOMIS, CHARLES H.
First National Bank, St,

Canada,

of

PETER

JOHN

Federal

S.*

HULME, MILTON G.*

HUNT, E.

Assn.

York

Hajle

KNOX,

WILLIAM

&

Townsend,

Blair

Branch, Cabell & Co., Richmond
MOORE, WILLIAM II *
^Bankers Trust Company, New York

New

NEILL

-

MOORE,

Winston-Salem

LOCKETT, JOSEPH F.

LOFTUS,

Jr.,

.

Corporation,

York

Co.,

MAXWELL, JOHN C.*
Tucker, Anthony & Co.,
MAY, J. DENNY

Association,

Bankers

&

Co.,

Securities

York

MOONEY, URBAN D.

GEORGE

.Wachovia

York

New

Co.,

&

White

MATLOCK,
New

National Bank,

Co.,

Evans

A.

B.

Broad

New

New

MATTON, CHARLES F.*

MORRIS*
&

Interstate

EUGENE

Milwaukee

H.

C.

ALDEN

LLOYD,

W.

Trust

A.

Chas.

;

JOHN

Drexel

KNOTHE, ST ANN A RI) B.*

Ralfensperger, Hughes & Co.,

Glover

'

York

A.

Auchincloss,

Indianapolis
&

New

Montreal

Dealers

Mercantile

Cleveland

CONRAD

Bank,

Stearns

MASTERSON,

Hollywood

Co.,

NEWELL

A.

Chicago

Bankers

Investment

E.

J.

Bear,

MARY

The Chase

Detroit

Clement

MARX, l.

REUBEN

&

MONTGOMERY, HALE L.

WAYNE

MATHISON,

DONALD

LITTLE,

The

KNIGHT,

SHANNON

Wagenseller

Co.,

York

L.

Stearns

LINEN,

KNEASS, GEORGE B.»
Philadelphia National Bank, Philadelphia

York

New

Lord, Abbett & Co.,

HUGHES,

&

New

New York

Washington

A.

&

THOMAS

Investment

Chicago

Co.,

Ball,
Burge & Kraus,
HUGHES, ALBERT R.*

HUGHES, W.

MacArthur

K1NGSMILL,

F.

Co.,

FRED

York

Dempsey-Tegeler & Co., Chicago

York

LILLIS,

Investment

New

Toronto

Chapman

HUDSON,

Co.,

KENNETH

KING,

New

&

Greenshields

M.

&

Devine

International

MARTIN,

WILLIAM L.
Co., Milwaukee

&

Bear,

Bacon, Whipple & Co., Chicago
KILBURN, PETER*

Minneapolis

York

Company,

Far well,

Hallgarten

J.

Central Republic
Company,
KERR, WILLIAM D.

J

EDWARD*

JAMES

Corporation,

York

Lauer & Co., New York

LINCOLN,

Kenower,

Louis

Philadelphia

'

A.

Gairdner

Securities

New

Stearns & Co., New York

Stern,

M.

M.

Marks & Co., New York
Jr., HUNTER S.*
Glore, Forgan & Co., New York
MARTIN, GEORGE L.*

York

Hutzler,

MRS.

LIEBENFROST,

York

KENNY, GEORGE P.
Willis, Kenny & Ayres, Richmond
KENOWER, JOHN L.»

C.*

Chicago

Jaffray & Hopwood,
HOWARD, KENNETH J.

HOWE,

C.

Lynchburg

Piper,

J.

New

&

LAURENCE

Laurence

A.

SALIM

Bear,

York

KERR,

JOSEPH

Bullock,

HOWARD,

LEWIS,

Pittsburgh

MARSTON,

New

Magazine,

Loewi

York

Company,

Jr.,

MARKS.

Co.,

J.*

Haupt & Co.,

LEWIS,

KENNEDY, FRANK T.*
New

ARTHUR

HOUSTON,

Ira

Finance

Co.,

&

E.*

Dick & Merle-Smith,
LEWIS, MILTON F.*

Boston

DAVID

Bros.

MEAD

LIEBMAN,

New

H.

Nicolaus

Barney

Stetson

B.*

&

BERT

HORTON,

LEWIS,

T.*

Co.,

Inc.,

BENJAMIN

M.

Association,

Co.,

Co.,

U. S. Treasury Department,
Washington
KENNEDY, DONALD S.

Co., New York

JENTRY

Investment Bankers

P.

&

KENNEDY,

Washington
HOPKINS, JOHN E.
J.

Corp.,

W.*

KENNARD, CHARLES W.

Reynolds & Co.,

HOLMES,

LEVY,

&

Salomon

Estabrook

York

HOFFMAN, JOHN
HOLLAN,

Shares Management

GILBERT

GEORGE

Arthurs, Lestrange &
LEVIND, R. GEORGE
Blyth

A *

KEMBLE, WILLIAM

Co.,

■

KAVANEWSKY, JOHN
M. A. Schapiro & Co., New York

Eldredge & Co., New York

&

Company,

Kuhn, Loeb & Co., New York

Son, Louisville

H.*

HILSON, JOHN S.*
Wertheim

PAUL

Insurance

Chicago

Angeles

BILLIARD, HENNING*

HILLS,

Life

Television

&

LESTRANGE,

York

JUST,

C.

Hill

New

York

New

HILL, MALVERN

NEW YORK

_

PHILADELPHIA

2,

PA.

•

PITTSBURGH

•

ALLENTOWN

•

LANCASTER

•

ATLANTIC CITY

90

The Commercial and Financial Chronicle

(2542)

Thursday, December 16,1954

...

y)

Continued

from

page

available

29

and

Basic Facts in Dixon-

In

less

be

Yates Controversy

WW's Omitted
9Mos. 1954

can¬

respects

the

Type of Security:

to
private

appears

the

to

Preferred

companies than does either Elec¬
tric Energy or Ohio Valley. Not
would be relieved of the further of the A. E. C. to enter into this only is there a ceiling on net re¬
turn to the equity investment, but
expenditure for
constructing a contract, the amendments were
the sponsoring companies have a
plant at Fulton and the private passed and a provision was in¬
definite risk if the cost of con¬
utility companies would be taking serted leaving no doubt as to the
struction
greatly
exceeds
esti¬
up
an
additional part of the A. E. C.'s contracting ability. The
atomic

energy

'

conform

with

load. This would
original pro¬

the

controversy

adjournment by

Total

sub-committee

a

'

«

?.

1,352,450

384,571

186,829

338,353

_

stock

445,491

$1,939,074

____

$1,984,770'

$1,455,167

___

$1,966,790

-

-

money—

Refunding

•

"•'■/•

■

1.216.150

Purpose of Issue:
New

*

,

stock

Common

r-

kept afire after mates.

was

$1,984,770

Long-term debt

contract

favorable

ilMos. 1953

$1,939,074

Total Financing by Electric Companies

is

contract

some

Dixon-Yates

TABLE I

use

from the plant
entire output

the

the

event

celled.

economic

put to
power

absorb

to

the

in

to

surplus

any

-Divestments

481.981
1,926

:

15.742/
2,238/

' •

contract
posal of the private companies to under Senator Langer, who despite did not end on Election Day. The
$1,939,074
$1,984,770 V,
supply all the load at Paducah, denial of funds by the Senate, Joint Atomic Energy Committee
SOURCE:
EBASCO Services Inc.
although their offer would still held public hearings on the con¬ met to consider the contract as
not be fully met, since Shawnee tract, and provided a forum for required by law and to act on the
TABLE II
will
continue
to
supply, some anyone opposed to it. A principal joint recommendation of T. V. A.
-OOO's Omitted—
witness was a former treasurer of and A. E. C. that it go into effect
12 Months
12 Months
energy to Paducah.
Increase
July 31, 1954
one Middle South subsidiary who
July 3|, 1953
immediately. Delay had already
This explains the presence of
♦Electric utility operating revenues $6,324,442
complained of certain activities of increased the cost of the plant by
5.7%
$5,983,043
A. E. C. among the contracting
the parent company. His principal nearly 5%. For the first time in^Electric oper, revenue deductions
4.027.853
5.1:
4,231,504
parties in Dixon-Yates. A. E. C.
its history, the Joint Committee
Federal income taxes (incl. EPT)
4.3
813,553
780,284
participation has been criticized objection was to a capitalization
of
earned
surplus
which
the divided on strictly partisan lines.
Net electric operating revenues
8.91,174,906
1,279.385
as complicating
the arrangement
The contract was modified in an
8.2: v
Gross income
and
1.335,491
1,445,185
making more difficult the parent had recently accomplished
a
practice which the S. E. C. attempt to satisfy objections by
7.4 :
Net income—_„
<1,084,972
1,010,312
relationship between the Gener¬
has at times not only condoned, permitting recapture of the plant
ating Company and T. V. A. But
SOURCE: FPC
but frequently required. He also by the Government
♦Excluding Federal Income Taxes.
within two
T. V. A. has no authority to enter
made
some
dark
hints
about years; by giving the Government
into a long-term commitment for
private placement versus 45%; the 1954 year end and into the
"double sets of books," although the option of extending the con¬
power, while the argument over
and
5%
through
sales
without firfancing programs for 1955.
as
nearly as can be ascertained, tract up to 45 years (the esti¬
complication ignores the fact that
underwriting compared to 17% for
*:
he was referring to the adjust¬ mated useful life of the plant),
interchange of energy is a com¬
1953. Subscription offerings proRespectfully submitted, vV
ments made for tax purposes as and in various other
ways, but
mon occurrence and the account¬
duced about 65% of the common PUBLIC SERVICE SECURITIES
ing and cost practices are fairly against the reports and records the Democrats on the Committee equity capital raised
by the vari- "
/
COMMITTEE
required under different regula¬ were not convinced. What the in¬
well standardized.
ous
utilities
during
the
nine
Clarence W. Bartow, Chairman
tions of the
various regulatory coming Congress will do to this
months ended Sept. 30, 1954.
A. E. C. could at any time ter¬ bodies. Other witnesses objected
Drexel & Co. "
arrangement cannot be forecast,
minate its Paducah contract with to recent rate increases granted
nor can it be stated how the Con¬
/;/ New York
i
Earnings
T. V. A. and thereby compel another
subsidiary
of
Middle gress could go about disclaiming
H. Theodore Birr, Jr.
Following the practice in pre¬
T. V. A. to absorb the energy from South.
the arrangement should it desire
First California Company vious reports, there is presented
Shawnee and the cost of trans¬
to do so.
Controversy

the

over

-

'

-

—

■

*

v

,

mission into its system.

The Dixonarrangement saves the
T. V. A. this cost. On the other

Yates

hand,, since the cost of coal is
higher at Fulton-West Memphis
than at Paducah (where A. E. C.
would
favor
construction
of a
plant,

its

for

T. V. A. will be

<

purposes)

own

expected to bear

the extra fuel cost.
The
came

Dixon-Yates contract
to

first

public notice during the

was also made to the
the Bureau of Budget,

Objection
of

failure

imaginative attempt
which has endorsed the Dixon- to solve a difficult problem and
Yates
contract, to consider an provide urgently needed utility
alternative offer from a private service to an important industrial
group to
build the plant, or to area of the nation has thus be¬
submit the entire contract to com¬ come
embroiled
in
a
violent

petitive

bidding.

This

objection partisan

conflict.

Nor:,

overlooks entirely the fact that a

ramifications of this

plant like this cannot function as
an isolated installation. It must be

Yates

part of a larger interconnected
system which can supply back-up

has

ited

to

issue

the

contract.

the

are

conflict lim¬

of

the

Dixon-

prominent
Senator who opposes the contract
announced

his

electric utility field.

Table I shows the

1954

For

31,

extent of fi¬

compared with the

PA.

a

with

stand-off

the

of

amount

trial

servicev

toward

the

ferred

stock

which

absorbed

the

reductions in this year's long-term
debt and common stock financing

compared

with

the

nine

months

in 1953. In 1954, debt issues repre¬
sented 63% of the total volume
while
and

common

amounted

17%

to

preferred stock 20% of total.
the standpoint of purpose
issue, this year the sales of

From

of

DISTRIBUTORS

UNDERWRITERS
WESTERN

PENNSYLVANIA

and

DEALERS

WEST

securities

for

counted for

VIRGINIA

new

money

ac¬

75% of the total and

were

LISTED

and

UNLISTED

than

SECURITIES

reported at $512 million less
that

tabulated

for

the

nine

months in 1953. In this connection,
it may be noted that the summary
for 1953 includes

KAY, RICHARDS & CO.

a

commitment of

$455 million long-term debt fi¬
nancing for OVEC and EEI. 1. ;

Richard

for the

1954

records

reported

to

of"

5.7%

earlier. The
Gross

Juljjjf,

Income

show

Net

Ben

dividend
utilties

payrrients
at

'

-record

Income

R.

Stone

ments

equity holders.
these

Income

compared '> with

bined

a

Robert

July 31,

Income

com¬

payment* of

dends

increased- 12.4%

1953

policies
have

general

additional

tions
may

Holt

/

B.

Horner

Scott, Horner & Mason, Inc.
Lynchburg

Johnson, Lane, Space & Co.,
Inc., Savannah

the

over

& Co.

Thomas M. Johnson

divi¬

common

Wood

period. The liberalized divi¬

dend

of

/

While

1953.

L.

Edwin

increased 7.4%, the

above

E.

Byllesby and Company,
Incorporated, Chicago

preferred

ended

Net

Securities

H. M.

Net

and
common
dividend pay-but of 73% for the
year

Webster

St. Paul

In the
pay"

of

&

Harold

dividend

76%

*>

B. Burnham Harris

to about $142
$603.3 million to the

represented

:

-"■<:

Corporation, New York

amounted
and

Ellis

Gail Golliday

For

the 12 months ended July 31, 1954,
dividends paid to preferred stock¬
holders

Winfield

Chicago:v.

data,

levels.

Company

Blunt Ellis & Simmons

electric

by

Northwest

Seattle

Jbver 1953 of 8.2%
respectively.

are

;

Crowell

B. Ehrlichman

Pacific

a year

to' latest FPC

'"

-/fij-V

Crowell, Weedon & Co.

increases

7.4%,

'

:

Los Angeles

1954 figures for

and

Crago

Warren H.

the

over

din g period

H.

St. Louis

reve¬

as
represents

and

Corpora¬

Smith, Moore & Co.

an| all-time peak

increase

and

John

period ended July 31,
date,

Clarke

W.

:

.

:

,

tion, New York 1

endfof 1953- The $6.3

nues

'

,

Richard W. Clarke

developed

"operating

/,<>';"//"A";"

New York

set

consumers

.

Henry Herrman & Co.:;:;/'':"/
:

July

electric

of

y/hich

billion of electric

financing during the same 1953
common
period. This year there was an;
increase of $200 million in pre¬ aggregate

Securities

sales

to ultimate

William M. Cahn

record, notwithstanding a
declining trend in sales to indus¬

million

Municipal and Corporate

ended

:

New York

;

months

KWH

According

During the first nine months of
1954, total financing by the elec¬
tric
utility industry aggregated
about $2 billion and was almost

Hallgarten & Co.

July 31,
the
same

new

same

BUILDING

19,

12

1954

energy

period in 1953.
ALCOA

the

Francisco

Elwood D. Boynton

12 months ended

1954
compared
with
period for 1953: '' •

an

nancing by the electric utility in¬
dustry for the first nine months
of

for the

correspon

Financing

THOMAS & COMPANY

a summary of revenues
earnings for Class A and B
privately/owned electric utilities

and

a

A

opposition to
debates last summer on amend¬
the confirmation of two prominent
power in the event of breakdown
ments to the Atomic Energy Act.
scientists to the Atomic Energy
and during shutdowns for main¬
Despite
an
extended
filibuster
Commission on the grounds that
This
system
must be
directed specifically at the power tenance.
they are not experienced in the

PITTSBURGH

San

in Table II

A bold and

are

of, the

Jerome

stock

in

industry

facilitated

the

New

indica¬

and

Morgan Stanley & Co.
*

through

move

York

Hudson B. Lemkau

that further adjustments

be made aS 'we

S. Katzin

Kuhn, Loeb & Co.

sale

New York

m

.

•

Favorable markets for financing

Members:

this
New York

Stoek

Exchange

new

TRUST

BUILDING

—

PITTSBURGH

19,

PA.

Bell Teletype PG 466

money

New Castle, Pa.;

HARRIS,




UPHAM

&

CO.

totaled

about

$482

million

1953 period.

same

UNDERWRITERS

total

capital financing in 1954 by

public utilities, including electric,
gas,

telephone, etc.,

under

competitive

was

effected

bidding

compared to 38% for the full

as
year

1953; 34% through negotiation

DISTRIBUTORS

•

-

DEALERS

Corporate and Municipal Securities

*5

-

Bank Stocks

-

Pennsylvania

—

Ohio

—

West Virginia

A. E. MASTEN & COMPANY
Established

Through Sept. 30, 1954, 61% of-

Warren, Pa.)

Uniontown, Pa.; Washington, Pa.; Clarksburg, W. Va.

Correspondents and Private Wire System

offerings in 1953. Re-

against only $16 million for the

Telephone ATlantic 1-3241

Meadvilie, Pa.;

the
many

fundings for the nine months in
1954

Butler, Pa.; Erie, Pa.;

increased

refunding issues,

of which represent a roll-over of

American Stock Exchange (Associate)

UNION

have

year

volume of

Pittsburgh Stock Exchange

1891

Members
New York Stock Exchange
American Stock Exchange

FIRST NATIONAL
Telephone COurt 1-7300
Private

Branches:

Wire

to

Pittsburgh Stock Exchange

(Associate)

BANK

Wheeling Stock Exchange

BUILDING, PITTSBURGH 22, PA.
Teletype PG 566

Clark,

Wheeling, W.

Dodge &

Va.;

Co.,

Butler,

New York City

Pa.;

Johnstown,

Pa.

or

*

.

Number 5386.

Volume 180

.

.The Commercial and Financial Chronicle

Robert J. Lewis
Estabrook

&

Joseph E. Refsnes
Co.

'

v-/

W. C. Langley & Co.
York
G.

'

Schwabacher & Co.

Owen

John

Burns

Securities

Corporation,

.

Bros.

&

Denton, New York
W.*

F.

Government

Puerto

Allison-Williams Company

White, Weld & Co.

Minneapolis

Boston

v ?•,

Development

WILLIAM

Estes

►

&

GERALD

Peters,

Writer

PETERSON,

from

36

page

E.

Equitable

Topeka

Glore,

Inc.,

Mills,

PETTIT,

Mixed Situation in RiJt^Securtties

PEVEAR,

Corporation,

ROBINSON, EDWARD

D.*

ROBSON,

Shares,

WILLIAM

Trust

Irving

York

New

W.*

-

Company,

with

services

and

lowest

feasible

cost

fi¬

and

■

New

President's Study Commission
Consistent

with

.

Vilas &
New

has

appointed

Committee

has

been

directed

later

than

Dec.

status of the

tion

1,

1954

and

recommendations

will

New

country with adequate trans-

portation facilities in the event of
emergency as well

an

of peace. The

in times

as

character of the

this Committee, and their successful
private
experiences
in
solving complex competitive busi¬
ness
problems, is an important
; reason for believing that some
,

t

on

I.

:

W.

Witter

been

evident

from

forts to modernize
.

from

Lord,

89

page

G.

In Attendance at

ef-

,r

largest single segment of our mass
transportation facilities. Without
financially strong and well
i equipped
modern railroads we
<
cannot have an adequate national
V transportation system. Without an
adequate
transportation
system
our country will not be prepared

FRANK

Barret, Fitch,

-

Members

meet the

to

This

war.

W.*

quires action

as

well

alone

&

&

Kansas City

&

Stroud Sc
New

New York

RAILROAD

&

Co., Milwaukee

Paine,

<.

Co.,

L.

York

7-6814

Ohlcoo-Q
John

York

New

D.

GEORGE*

Fund

Distributors,

HENRY

Boston

•

New

Firms,

DEALERS

York

ROBERT

William

Blair

>

RAND,

The

Bond

OWEN.

L.*

Ernest

•

W. Borkland,

IRA

Buyer,

C.

San

Prevost

.

S.

Hecht

Kay,

Sc

Kay,

Minneapolis

St.

De

:

G.

New

Cnicago

~

<

*

Pancoast,

New

New

Orleans

Roberts &

&
&

Co.,
Co.,

W.

y:M

York

§i

»■'

*'*

Jr.,

Co.,

&

i,

55.

i




■

^

:

Specialitlt In...

.

.

:

ISSUES^#

Bldg., Philadelphia 2

LOcust 7-3646

•

Teletype PH 864

Chronicle;

i;

L.

Bond

& Share

WILLIAM

New

Corporation,

,

RENO,

Pittsburgh

Corn

JOHN

Carl

M.

New

A.

■r

S.*

Exchange

Bank,

York

In

W.*

Philadelphia

York

Loeb,

Rhoades Sc Co.,

Corporation, Boston
REPP,
New

HERBERT

Discount

York

Mr. and

Mrs.

Mellon

N.*

Corporation,
F.

New

York

BRIAN*

National

Bank,

A. Webster Dougherty

1874

AMERICAN

■«

*

STREET

STOCK

WILKES«BARRE, PA,

Co.

Exclusively in Municipal Bonds

CHESTNUT

STREET

•

PHILADELPHIA

2

X'i'

Townsend, Crouter & Bodine
EXCHANGE

&

Pittsburgh

1421

EXCHANGE

EXCHANGE

PHILADELPHIA

2

•

\

M

*'

^4

Packard

|

Baltimore

GORDON*

Chemical

PHILADELPHIA-BALTIMORE STOCK

,

4

Indianapolis

SIDNEY L.*

CHESTNUT

'V-'
>

■

York

Jr.,

Indianapolis

Parke,

■4

:

.

SCHAFFER, NECKER & CO.

Philadelphia
St. Louis

Financial

MEMBERS

1500

■■

'b'ir

JOHN

••

NEW YORK

-

:i--'-'v*
; >

TURNPIKE, WATER AND SEWER

s'"'

Philadelphia

Co.,

&

REISSNER, TRANK

Pittsburgh

ESTABLISHED

STOCK

■ "

CITY,OF PHILADELPHIA BONDS

Philadelphia

YORK

:

I PENNSYLVANIA SCHOOL AUTHORITIES ffw

RIttenhouse

NEW

.

::

F.*

Corporate & Municipal Issues

&

^

GUY*

Watts &

RENCHARD,

Coppet Sc. Doremus,

Denotes

: <

■

Seasongood Sc Mayer, Cincinnati

K.*

WILLIAM

Co.,

Distributors, Dealers, Underwriters

DeHaven

...

:

Deals

.

%:

'

Chicago

Peabody

Commercial

REUTER,

New York

■:

REILLY, F. VINCENT

W.*

Co.,

Sc

MYRON

Edwards & Sons,

Baker,

REIS,

NATHAN

The Parker

PARRY,

Rowland H. George

'

and Ht Political Subdivisions

Paul

York

New

Co.,

REDWOOD,

SHELDON*

Richards

PARKER,

Columbus

H.

Richards

PARKER,

.

Sweney, Cartwright & Co.

.

Chicago

ALFRED*

Kidder,
A.

&

&

REDMAN.

SAMUEL W.

PARKER,

Wood, Struthers & Co. \

Company,

N.*

Sachs

RATCLIFFE,
RAUCII,

York

P.*

Schmidt, Poole,
Philadelphia

-

Baltimore
Todd Cartwright

New

Robertson

EARL

PARKE,

Boyce

Boyce

&

Company,

Co.,

Antonio

PARIS,
R

Stein Bros. &

&

Bache

Chicago

D.*

Gooaooay &c Co.,
PANCOAST, JOHN

Dewar,

Jr.

& Co.

New York

..

Company,

^^nany,

Tucker, Anthony

i

&

PAIDAR, LEONARD J.

*}■

V':'

COMMONWEALTH QF PENNSYLVANIA

:

&

Goldman,
•

—

Kean, Taylor & Co.

;-:?

Curtis,

Obligation of fha

Company,

RICHARD

Rand

OTIS, C. BARRON*

***'• George A. Barclay

J

&

JOHN*

Burnham

Chicago

,

UNDERWRITERS

T.

Illinois

RAISS,

Co.,

Vance, Sanders & Company, Boston
OSTRANDER, LEE H.

R. W. Pressprich & Co.

AND

^
-S

Jackson

Wood

E.

FRED

The

J '

<

W.*

Exchange

Co., Albuquerque
LEO L.

Harold

RAIIN,

DANIEL*

OSGOOD,

•

V

6-8189

W.*

Company, New York
'RAND, THORBURN*
O'ROURKE, T. NELSON
j
Rand & Co., New York
T. Nelson O'Rourke, Inc., Daytona Beach
i RANKIN, HARLEY L.*

\

Bergmann, Chmn.

r

RIttenhouse

313

C.*

,

&

fluvecn

O'DAY,

SECURITIES

New York

PH

York

New

&

:quist,

NUVEEN, JOHN

New York

«-•

2

Philadelphia Phone

Teletype

i

ARTHUR*

Quinn

Hemphill, Noyes & Co., New York
ANNE (Miss)

J

Charles

BONDS

York

New

REGINALD
Co.,

Webber,

QUINN,

Company, Incorporated,

NOYES, BLANCHE*

•

committee;

AUTHORITY

AND

York

New

'

-

BONDS

SECURITIES

Philadelphia-Baltimore Stock Exchange

Phone

COrtlandt

Antonio

San

JAMES F.*

QUIGG,

F.*

Baird

The Northetrn Trust

*

MUNICIPAL

A.

&

Co.,

3tock

Assn.

NUVEEN,

re-

Respectfully submitted,

BONDS

Co., Hartford

Jr.,

PUTNAM,

NOWLAN, ROBERT E.

words!

as

page

C.*

ALBERT

Putnam

PUTNAM,

.

North & Co.,

LUDLOW

Robert W.

demands of peace or

consideration

MARKET

'

NORTH,

'

i

MUNICIPAL

CHESTNUT STREET, PHILADELPHIA

1421

-

*

on

Aspden, Robinson & Co.

Houston

St. Louis

Co.,

ALBERT

Putnam

NORTH,

*

'<

Continued

Co., Chicago

*

Minneapolis

York

New

Co.,

Jr.,

Walker

H.

Walston

IBA Convention

the

are

New York

Co.,

Barney & Co., New York
HARRY I., II*

.PUTNAM,

v

railroads

nation's

&

Bank,

National

Company, Denver

Abbett

PURKISS,

transporta-

our

Schapiro

SCHAUST, GEORGE J.

York

E *

Company,
JAMES M.

PRESSPRICH,
-

1

tion policy.

The

other

New

REVENUE

Co.,

ROBERT

Smith,

port of this Committee will pro¬
more
tangible results than
has

A.

.

Tribune,

PRANKARD,

Continued

duce
,

I.

K.

&

Boettcher &

constructive suggestions

SCHANCK, Jr., FRANCIS R.
tiacOii, Wnipple & Co., Chicago

Report, Washington

&

POWERS,

may re¬
sult. It is to be hoped that the re¬

Orleans

CORPORATE

W.*

WILLIAM

POWELL,

San Francisco

V

B.*„

J.

Chicago

&

ELVIN

Dittmar

Dean Witter & Co.

Dallas

Newsom,

Jr.,

White, Hattier & Sanford, New Orleans

A.*

Co.,

LEWIS

PORTER,

Wendell

&

Pollock

Simon

M.

&

SANFORD,

New York

Company,

World

WILLIAM

E.

POPPER,

'

Sanders

York

SAMPSON

Geo. B. Gibbons & Co., New York

-

Cleveland

SANDERS, JESSE A.*

York

AVERY

New

H.*

SAM

Bache & Co.,

W.*

GENERAL

POOLE, MONROE V.*

Yarnall, Biddle & Co.
Philadelphia
V

Lester, Ryons & Co., Los Angeles

PENNSYLVANIA

M.

Eddleman-Pollok

James D. Winsor, 3rd

men

Sr., BURT T.
Ryan, Sutherland & Co., Toledo
RYONS, JOSEPH L.»
SAMPLINER,

Hutchinson &

York

ROBERT

POLLOK,

Inc. Savannah

Philadelphia

York

New

Incorporated,

RYAN,

Richmond

New

York

G.*

& Company,

Dallas

Co.,

New

&

Cruttenden

Varnedoe, Chisholm & Co.

..

ROBERT

C*
&

Pitfield &

Wm.

New York

New

Underwriters and Distributors

News

POLLOCK,

Varnedoe

Merle-Smith,

DANIEL T.*

Co.,

PODESTA,

York

Samuel L.

Doremus,

C.*

JAMES

C.
S.

&

Stroud

Development Bank,

PLATT, CHARLES M.*
U.

Dick

H.

Central Republic Company, Chicago
PITFIELD, WARD C.*

W.

provide

&

PIGOTT,

Kuhn, Loeb & Co.

&

SCHAPIRO, MORRIS A.

PIETROWICZ, STEPHEN
Chicago Tribune, Chicago

J. Emerson Thors

such

make

to
as

Jr.,

Hirsch

Ross

Parke,

Toronto

Jacksonville

New York

the

on

McMaster

Meeds, New York

&

REGINALD P.*

Coppet

F'nsc

Chicago

Merle-Smith, New York

Bissell

Carrison, Wulbern, Inc.,

PIERCE,

Dick & Merle-Smith

country's transporta-

facilities

the
:

Pierce,

De

ROWE,

Co.,

Herald

ROGERS, Jr.,
Pickard,

Pierce

clYDE

York

»•-

'

MIDDLETON

ROSE,

M'.
New

York

A.

Toledo

ROSS, ALFRED J.*

New

ROGERS, DONALD

i

&

Laird,

Puerto Rico

Paul

St.

G.*
&

Dick

ROSE,

GUILLERMO*

Government

New

Co.,

Co.,

ROOSEVELT, JULIAN K.

E.*

Jones,

&

91

B.*
Sc

GEORGE

Roose

,

Denver
&

Dominick,

Los Angeles

Co.,

CHARLES

Rauscher,

PIERCE,

York

Alfred J.

by

the President to report to him not

-

PIERCE,

Hickey

Chicago

on

&

Corbett

Burns,

McMaster, Hutchinson & Co.

Transport Policy
Organization. This Cabinet

and

-

•'

Sampson Rogers, Jr.

Cabinet

a

-

E.*

Witter

Dean

&

RODRIGUEZ,
York

New

RALPH

Dominick

Scharff &

K.*

Bank,
Co.,

PICKARD, A.

York

George E. Richardson

comment

budget mesit is encouraging and highly
significant that President Eisen¬

.Committee

-

k

sage,

hower

>

the

the

in

New York

Co.,

Phillips

PHILLIPS,

Co.,

Co.,

FREMONT

RODDY, JAMES

PHILLIPS, GUYBERT M.

Payne

Morgan Stanley & Co.

incorporated

City

Caldwell

Samuel B.

Loeb &

DELMONT

National

New York

where
possible,
by
charges levied on the users of the
services."

.

PFEFFER,

Bear, Stearns & Co.

nanced,
:

Newburger,

V. Theodore Low

operated

&

F. B.
Ashplant &
ROCKEFELLER, Jr.,

i

York

New

PEYSER, BENJAMIN F.

facilities

&

Co.,

&

Schwabacher

KARL

Baltimore

ROBINSON, ARTHUR R.*
Anderson & Strudwick,

NORMAN

Securities

Knickerbocker

Sons,

Forgan & Co., Chicago
W. HAROLD*

Spence

Roll

B.

ROOSE,

ROBERTSON,

Christensen,

York

New

Sc

JOHN

J.

York

Schmidt, Poole, Roberts
Philadelphia
*
ROBERTS, WILLIAM J.

Denver

Continued

New

ROBERTS, OSBORNE R.

Bank,

P.*

&

Brown

Garrett-Bromfield

B.

Company,

PETERS,

ROLL,

Co.,

Goodbody & Co., St. Petersburg
ROBERTS, MALCOLM F.

Rico

PESELL,

M.*

Sc

ROBBINS, CHANDLER*
M. A. Schapiro Sc Co., New York
ROBERTS, Jr., ALBERT

-

•

Dodge

Alex.

Pershing & Co., New York
PERSHING, Jr., JOHN*

City

WILLIAM

Clark,

CARR*

PERSHING,

Valentine

W.

REX,

Bank,

PEET, EDWIN F.

§'■

Stern Brothers & Co.

Kansas

C.*

Exchange

RIEPE, J. CREIGHTON*

Nashville

*

Richard J. Stern

Thayer, Baker & Co.
Philadelphia

DONALD

Corn

York

Cumberland

V

San Francisco

.i

.

Wallace M. McCurdy

.

New

PAYNE,

Albert Schwabacher, Jr.

.New

Ira D.

Chemical

Phoenix

Willard A. Lynch

*

PATTERSON,

Refsnes, Ely, Beck & Co.

New York

.

(2543)

STAMFORD, CONN,

6-2580

Teletype
PH

70

New

REctor

York

2-7723

92

;

*

92

The Commercial and Financial Chronicle

(2544)

STAFFORD,

1 Continued

from

91

page

Lee

Jr.,

H.

JOHN

Higginson

8TALKER,

WANDERS,

Corporation,

ALFRED

SCHELKE,

WESLEY

-Seattle-First

SOIL ITER,

SHERRILL, H. VIRGIL*

G.

SHIELDS,

J.

Drexel

&

SHOLLEY, S. L,*

Company, Boston
WICKLIFFE
Hayden, Stone & Co., New York
8IEFERT, RUSSELL E.*
Stern Brothers & Co., Kansas City
SIMMONS, RICHARD W.
Blunt Ellis & Simmons, Chicago
The

Philadelphia

Co.,

SCHMIDT,

WALTER

Schmidt, Poole,
Philadelphia

A.*

&

Parke,

CHARLES

.A.

Republic Company, Chicago

SCHREDER, HAROLD X.*
.Distributors

Group, Inc.,

New

SCHWEICKHARDT,

MURRAY

R.

New York

World-Telegram & Sun,

DANA

National City

Bank,

SMITH,

g£BEL, IIARRY L.-

National State
John

Weeden

F.

Eberstadt & Co..

Bond Buyer,

New York

Mercantile Trust Company, 37

New

lUwrts

Company,

Cleveland

Weter,

Roberts

SHEPARD,

SHERBURNE.

Bacon,

Shefetman,

HAROLD

SPACE,

Philadelphia

Co.,

JAMES W.*
Norris & Hirshberg,

H.

Savannah

Co.,

Atlanta

American

IV.

Putnam

New York

MARK*

PJ/itppte (7> Cjo.

Company,

Boston

E.*

Witter

& Co.,

American Stock

JEROME

Trust

Atlanta

D.

T.

Bacon

William D.

Leslie

Robert B.

Hartshorne

F.

Francis R.

Sherburne

Harold

Schanck, Jr.

A.

Kerr

Bray

WILLIS,
M.

Wagner

Loeb

&

WILSON,

WILSON,

Pittsburgh

&

Company, Montreal

WILLIAM

Clark & Co..

H.

A liber* J- Payne

R. Edward Garn

Joseph M. Fitzgerald

M. A.. Graver

Evans Spalding

Alvin H. May ward

S. O'Brien

Dean Witter &

Philadelphia

WITTER,

L.

F.

Rothschild

&

TRIPP,

Dealers'

JEROME

Tripp & Co..

C.

York

New York Stock

of

America,

TURBEN,

CLAUDE

Exchanges

York

New

CHICAGO

NEW

RANDOLPH

ONE

6-3181

F.*

YORK

WALL STREET

DIGBY 4-0700

ended

July
operating

31,

Hanseatic

&

Co.,

New York

Other

Company, Boston

RONALD

of

Blair &

are:

the

Bros. &

Parker

Corporation,
B.

Raffensperger, Hughes & Co.,
Indianapolis

&

Redpath;

Thomas & Co.

Corporation,

Eppler, Guerin & Turner, Dallas
Calvin

UHLER,
R.

S.

HENRY M.

Bullock,

New

FA&MAN,

York

EDWARD A.*
Dickson

UNDERHILL,

&

Company, New York

ARTHUR

J.

Members: New

HARRIS & COMPANY, INC.

York

Stock

Exchange

C.

—

Midwest Stock Exchange

Arthur

Wiesenberger & Co., New York
VALENTINE, HENRY L.

Distributors of

Davenport & Co., Richmond
VAN

SLYK.

Journal

MILTON

of

VARNEDOE,
Varnedoe,

Commerce, New

York

SAMUEL L.

Chisholm &

Company,

Corporate and Municipal Securities

Savannah

Rodman

&

Renshaw

VINSON,

EGERTON

B.

DeHaven & Townsend, Crouter & Bodine,
New

209 S. La Salle Street

York

VINYARD. EUGENE

Chicago 4, Illinois

D »

Central Investment

Members:

Company of Texas,

Dallas

New York Stock

Exchange, American Stock Exchange (Assoc.)

Midwest Stock Exchange, Chicago Board of Trade

Chicago Mercantile Exchange

Von

•

GLAHN.

THEODORE

Kidder, Peabody & Co., Chicago
VRTIS, CHARLES S.*
Forgan & Co.,

WALBERT, RICHARD

CHICAGO 4

A *

Salomon Bros. & Hutzler, New York
VOYSEY, FRANK E.

Glore.

209 SO. LA SALLE ST.

Blyth & Co.,
WALKER.

Inc.,

GRAHAM

Chicago
B.

Chicago
W.*

Joseph McManus & Co., New York

Telephone DEarborn 2-0560




WALKER, LOUIS*
G.

H.

Walker

&

Co.,

Hartford

WALLACE, DARNALL*

Teletype CG 2296

offering

Co.

Hutzler; Auchincloss„
Baxter, Wil¬
liams & Co.; New York Hanseatic
Corp.;
Wm. E. Pollock & Co.,
Inc.;
Clayton
Securities
Corp.;
Mullaney, Wells & Company and
mon

Co., New York

Securities

members

Incorpo¬
rated; Dick & Merle-Smith; Salo¬
group

JOHN W.*

UFFORD,

Bache & Co.,

WALTERS, H.

New York
L.*

Fidelity-Philadelphia Trust Company,
Philadelphia

1954,

revenues

shown at $27,382,310 and net
income at $2,398,594.

Savannah
<

of $27,267,794 and,

York

TURNER,

S. LA SALLE ST.,

Southern

WOODARD,

com¬

were

M*

&

revenues

months

12

King & Dawson, New York

Bradford

other

in

consolidated

WOOD, Jr.. OSCAR B.

New York

Merrill, Turben & Co., Cleveland
TURNER, ARTHUR C.*
New

231

J. C.

Co., Buffalo

TSOLAINOS, K. P.*
Baker, Weeks & Co., New York

Exchange and

Other Principal

Collins &

New York

WOOD, KENNETH H.

TSCHUDY, ARNOLD*
Bank

Members

Wood,

and

Massachusetts;.

consolidated net income of $2,470,413. In an unaudited report for the

M.

Smith

DAVID

in

companies had consolidated oper¬

New York

Co., Chicago

Newton &

Brockton

in Fall River and other

ating

McEvoy,

WOLL, ALBERT J. T.

WOOD.

Stein Bros. & Boyce, Louisville
TRUBEE, Jr.. FRANK C.

Trubee,

Witter &

E. M.

TROST, MILTON S.*

JOHN J. O'BRIEN & CO.

Dean

Co.,

WILLIAM

Zuckerman.

Digest, New York

L.*

New

&

WOLFF, JAMES W.

Co., New York

TRIGGER. RAYMOND
Investment

New York

Louisville

W.

Douglas

in

Edison

Massachusetts,. and
Montaup Electric Co., engaged in
generating and selling electricity
to the three foregoing companies.
For the year 1953, Eastern Utili¬
ties
Associates
and
subsidiary

WISE, JOSEPH B7

P.*

Peoples National Bank, Charlottesville
TREUHOLD, EUGENE*

David

ness

Morgan Stanley & Co., New York

Winslow,

in

munities

R.*

WALTER

Brockton

gaged in the electric utility busi¬

WINSLOW, SAMUEL R.*

TRAINOR, COLEMAN

John J. O'Brien III

WILSON,

utility
Woon-

gas

communities

Fall River Electric Light Co., en¬

WARREN*

HOLMAN

other

Island;

business

G.

The Kentucky Company,

B.

and

Pawtucket,

communities

T.*

Baird & Co., Milwaukee

H.

of

Co., engaged in the electric utility

Union Securities Coroporation,

E.*

in

and

Rhode

Schaplro & Co., New York

Robert W.

Unterberg, Towbin Co., New York

W.

D.

T.*

ALFRED

electric

New York

WILSON, CARLTON P.*

New York

Co.,

ANTHONY

TOWNSEND,
E.

C.

the

socket

Newburger, Loeb & Co., New York

Pitfield

E.

Jr.,

EDWARD

WILSON,

TOWBIN, BELMONT*
C.

A.

W.»

Thornburgh Company,

WILLIAM

C.

Philadelphia

BENJAMIN

sale

Utilities Associates is a

business

M.

C. T. Williams & Company, Baltimore

New York

ROBERT

in

Company, San Francisco

Hutton & Co.,

WILLIAMS.

York

A *

The Robinson-Humphrey Co., Atlanta
TORREY, ARTHUR S.*
W.

Janney & Co..

W. E.

Louis

Jaequelin, New

TOMPKINS, HENRY

Kreli

A.

BERTRAM

WILLIAMS,

Thomas & Company,

Jay N. Whipple
Ernest

Ames

H.

V.

case.

the

registered holding company own¬
ing directly or indirectly through
stock
ownership four operating
utility companies: Blackstone Val¬
ley Gas & Electric Co., engaged

Boyce, Baltimore

First California

WILDE,

THORS, J. EMERSON
Kuhn, Loeb & Co., New York
Kuhn,

Harold

A.

CHARLES

Jr.,

C.

&

from

1978.

due

Eastern

WILD, RICHARD W.*

JOSEPH

W.

series

ARTHUR*

LEROY

proceeds

retire $6,930,000 principal amount,
of its collateral trust bonds, 4%%

Loeb, Rhoades & Co., New York

Stein Bros.

Lunt, New York

&

TOMASIC,

John

Winslow,

J>

Wiesenberger & Co., New York

WILBUR,

Cincinnati

TODD,

William

&

be redeem¬

the bonds will be used by Eastern.
Utilities Associates to redeem and

Dempsey-Tegeler & Co,, Los Angeles

Arthur

Thackara, Grant & Company, New York

The

Partners

West

LEWIS

WIESENBERGER,

Exchange Bank,

FREDERICK

TIIACKARA,

Jr.,

Carl M.

'

F.

Corn

THORNBURGH,

Exchange (Associate)

Net
St. Louis

WIDENMANN, HANS A.

E.*

National Bank,

Carlisle

Exchange

Stock

Whiteside,

WHITNEY,

interest in each

crued

Inc., Boston

Boston

San Francisco

FRANK

Jr.,

Lehman Brothers,

Midwest

STEPHEN

Howard,

bonds will

new

ranging from 106%% to par, and
at special redemption
prices re¬
ceding from 103% to par, plus ac¬

H.*

Corporation, New York

Walker & Co.,

Chace,

San Francisco

Newbold's Son & Co., Philadelphia
TAYLOR, EATON

THOMAS,

Stock Exchange

The

able at regular redemption prices

WHITESIDE, THOMAS

TIIIERIOT, Jr., CHARLES H.

Members

&

G. H.

Albert Theis & Sons, St.

New York-

B.

BRAINERD

WHITCOMB,

and

The group won award o£
the issue at competitive sale Dec.
9 on a bid of 101.52%.

N.*

Boston

Inc.

offered $7,Utilities Asso¬

3.45%.
York

Bacon, Whipple & Co., Chicago

Eaton

Redpath,

THEIS, HARRY*

our*i Yios

JAY

Co.

16

ciates collateral trust bonds, 3%%

WHITE, KELTON E.*

STANLEY

Hamlin &

City

Portland

series due Dec. 1, 1979, at 102.91%
and
accrued
interest,
to
yield

S.*

Co., New

&

Dec.

on

250,000 of Eastern

Goldman, Sachs & Co., New York

The First

W. H.

TERRY,

York

&

Stuart

associates
Toronto

Distributors, Boston

CHARLES

WHITBECK,

Philadelphia

New

Fund

WERNER,

Halsey,

-

G.*

Company,

TAYLOR, C. NEWBOI.D*

Girard

Chicago

&

WHIPPLE,

&

V.*

WERLY, CHARLES M.*

Dempsey-Tegeler & Co., St. Louis
TERRELL, ALLEN M.

j/u vasfmorif

ROBERT

WHEI.PLEY, GORDON

Corporation,

Parker

Keystone

Fulton

Kansas

Halsey, Stuart Group
Offers Utility Bonds

Corporation, New York

New York

WENDT, GEORGE B.
First National Bank, Chicago

Washington
SWANEY, JOHN*

TAYLOR,

Company,

M.

N.*

Co.,

FRANK

Wisener

>v77777-7-':

SYMONS,

&

ZILKA, HENRY J.*
Zilka, Smither & Co., Inc.,

Baltimore

Philadelphia National Bank, Philadelphia
WELLER,

Association Stock Exchange Firms,

TEGELER,

^3aeon,

&

Wertheim

Denver

Dean

FREDERICK
Townsend, Dabney & Tyson, Boston

Mr. and Mrs.

:

McDowell, Chicago

Blosser &
STRAVITZ, HENRY
Straus,

Sutro & Co.,

&

SPEAS,

Whipple & Co., New York

Denotes

&

JULIAN A.*
Lane, Space

Johnson,

SPENCE,
♦

Biddie

Yarnall,

Seattle

Shepard & Co., Cleveland

P.-escott,

7

&

ROBERT O.*

Weeden

STOKES, EDWARD B.
Stokes & Co., Philadelphia
STONE, Jr., FRED D.*
Marine Trust Company, New York

The

B.

HARRY

SNYDER,

SHEFELMAN, HAROLD S.*

Co.,

VICTOR H.

Zahner

WALTER H.

ALAN

WEHRHEIM,

Auchincloss,

York

Investment Dealers Assn. of Canada,
Toronto

ZAHNER,

H *

SEWELL S.*

Union Securities

DONALD A.*

SULLIVAN. Jr.,

M.

OTTO

Sun-Times, Chicago
SMCTNY, RUDOLF*
Salomon Bros. & Hutzler, New

SHEEDY, HERMAN J.
&

...

Chicago

Houston.

WILLIAM

CHARLES

WEED, Jr.,

WEEDEN,

SULLIVAN, JOHN J.

Pierce, Fenner & Beane,

Robinson-Humphrey Co., Atlanta

YOUNG, N. D.*

77777',:-

/\

Angeles

Swiss

York

SMUCKER,

SHAWELL, WILLIAM J.

McDonald

A.*

W. Craigte

Merrill Lynch,

D.

STRAUS, FREDERICK W.*
7-,7^77'''

New York

JOHN

Watts &

WEBSTER,

Inc.,

YOUNG, HAROLD H.
Eastman, Dillon & Co., New York

Strader, Taylor & Co.. Lynchburg

New York

The

H.

Fahey, Clark & Co., Cleveland
WATTS, Jr.,

Wulbern.

New York

Co.,

Baker,

STRADER, LUDWELL A.

& Co., Richmond
SMITII, NORMAN*
F.

6MARPE, WILLIAM P.

Shawell & Company,

MARK

SMITH,

WILLIAM S.

SHANKS,
The

T *
Sherrerd, Philadelphia

&

Association,

New York

Co.,

H. Hentz & Co..

FREDERICK

Butcher

Bankers

LORNE C/-!

SMITH,

York

New

&

York

Newark

Wichita

RAYMOND

SMITH, J.

SEVERANCE, CRAIG
8EVING,

T.*

Investment

New

STOHL, WALTER H.
Fidelity Union Trust Company

Chicago

W.¬

Legg & Company. Baltimore

C.

Co.,

&

Carrison,

YEARLEY, ALEXANDER, IV

Stubbs, Smith & Lombardo. Birmingham

Guaranty Trust Company, New York

DUDLEY C.*

SMITH,

Bank, Newark

JOSEPH

SENER,

Los

The Small-Milburn Company,

Hugh W. Long & Co., Inc., Chicago
SEIDLER. Jr., ALEX.*

Asiel

New York

Jacksonville

Incorporated,

Co.,

Shober, New Orleans

Company,

J. M. Dain & Company, Minneapolis

•

STODDARD,

New York

&

DUANE

John Small

York

New

EDWARD
Milwaukee

Co.,

&

WASSERxVIAN,

Association,

RAYMOND

York

New

Pierce,

WATKINS, Jr., MILES A.*

STOCKBRIDGE, FRANKLIN
Security-First National Bank,

JOHN*

SMALL,

B.

Blair

&

WULBERN, EDWARD B7

New York

Co.,

ROBERT

WARREN,

Equitable Securities Coporation,

SLOAN, WILLIAM J.
Bradschamp & Company, Houston

M."

Deane & Scribner, Pittsburgh

Singer,

SCUDDER,
,

Loewi &

Richmond

& Stringfellow,

Scott

STITZER,
7.

Securities Corpn., Toronto

G.

SLEZAK,

BCFORD

SCOTT,

SCRIBNER, JOSEPH

Research Corpora¬

Kidder &

A. M.

ROBERT

3rd,

Bankers

Investment

Allen

S.

ELBRIDGE

WATTERSON.

Co.,

Nashville

WARREN, JAMES C.*

Washington

T.

JAMES

Midland

&

Woolfolk &

WREN, LAWRENCE
Bank,

Miller & Co., Cleveland

Hayden,

Thursday, December 16,1954

WOOLFOLK, ROBERT M.*

New York

Buyer,

National

WARNER,

York

Co., Richmond

Stevenson

Bacon,

York

New

tion,

SKELLY,

7

New

Vance, Sanders & Company, Nashville
STEVENSON, G. C.*
STEVENSON,

Securities &

National

Schweickhardt & Company, New Orleans
SCH WE REN'S,

J. C. Wheat &

Detroit

Baker, Simonds & Co.,

Company,

STAPLES, JACK R.
Fulton, Reid & Co., Cleveland
STARRING, Jr., MASON B.
A. C. Allyn & Company, New YPrk
STEARNS, GEORGE
The Economist, Chicago
STEPHENS, DONALD B.*
Cruttenden & Co., Chicago
STEVENS, WILLIAM A.*

SIMONSON, HENRY J.*

Toledo
ERWIN B.*

Bosworth & Co.,

Trust

Third

STEVENSON, ALEC B.*

W.*

RALPH

SIMONDS,

York

SCHROEDER, FRANKLIN L.
Braun,

Keystone

SHREVE,

Roberts

SCHOENEBERGER,
Central

Shields <S? Company,

New York

W. MARSHALL

SCHMIDT,

New York
CORNELIUS*
New York

&; Company,

Shields

Seattle

Bank,

National

HAROLD

First Natl. Bank of Chicago,

New York

Peaboay & Co.,
STANSBERRY, FLOYD F.
Bankers

GEORGE*

The Bond

WARD, JAMES C.

Kidder,

In Attendance at IBA Convention

York

New

J.*

...

52 Wall Street
Gary,

Indiana

New York 5, N. Y.
—

Emporia.

Wichita

Salina, Garden City, Kan.

Direct Private Wires to:

W. E. Hutton & Co., N. Y.
New York Hanseatic Corporation, N. Y.
COMPLETE

TRADING FACILITIES

SPECIALISTS IN LOCAL MARKETS

Volume 180

Number 5386

..

Continued

jrom jirst page

Securities Salesman's Corner The IBA of Ameiica Holds
Sales "Tips'

Mr. Schmidt, the newly elected
President of the IBA, has devoted
his entire business

to

talk

be

their business

good week

a

about

will

"tips"—sales "tips"
I mean rather than stock "tips."
There
seems
to
be
a
plentiful
supply
of the
latter variety
around

lately

I'll

so

ment

investment

most

who

We

a

spe¬

Moorman,
rities

of

reads

L.

and

tell

impress

him

it carefully.

it,

read

phone

ing

time to read
Tell him after he has

will give him

you

call.

people

Most

it

of

ceiving too much advertising and
mail these days.
The more suc¬
and

cessful

less

time

they
have for

busy

they

advertising letters, mail pieces,
even
a
special approach on
investment

before

the

the

the regular
and
highlights

mill

importance.

or

and
sort

of

Thus

you

can

Tip

to

who

run

its

obtain

Source:

is

when
market

These are days
interested in
they are talking

is

about

friends
interest

an

in

and SPECULATION.

tomers

want

is

little that

very

to

have

a

and

make

some

money

better

hard

those

that

desire

for

who

doing business with

to

have

to
a

Those

the

been

rities,

rather

should

give

someone

must

some

else.

if

50

bonds

to

a

say

investor

small

you

some

of

Watch for

opportunities and build

times for it.

Number

4:

(Don't

anyone

that Dutton suggested

accounts).

drop¬

Keep the

upon

good ones, large and small. Weed
out

than

that

These

so

mar¬

what

come

don't

you

to

people who

try for

held

various

partment, Chicago office, 1927-28;

Philadelphia of¬
fice, 1929-32; sales manager, New
York office, 1932-37.
sales

manager,

withdrew in

He

1937 to organ¬

the

Throughout

the

time

in

wasters

and

interest of

the

Mr.

years

the

underwrit¬

securities business, has
held various positions of leader¬
ship in trade groups, and is widely
known
throughout the financial
community.
He has served the
ing

and

Bankers

Investment

in

America

of

ties:

handle

.

interest

His

in

.

in

the

||

the

Under

Institute

The IBA

Education

session

the

Committee,

each

Mead, of Mead, Miller and Com¬
pany, Baltimore, reported to the

being

made

program

1955

sion

Institute
I

n

106;
Seminar
101; 1953 Institute of Investment
Banking 143; 1954 Institute of In¬

of

tute
an

showing

Insti¬

motion

provides

W. Carroll Mead

S.

U.

executive

-the

the award-winning
picture, "Opportunity

participation

A.";

the

in

the

Education; and

of the IBA Corre¬
Course offered in co¬

support

spondence

operation with the Home Study
Department of the University of

leadership, to promote ef¬
operation in all phases of
investment banking, and to ac¬

velop

Chicago, along with other train¬
ing programs. It was also noted
that
the IBA
is continuing its

quaint registrants, with significant
developments affecting the

the work of the

participation in

current

Committee

"Joint
is the

year

of

ment of Secondary

fective

business.

of

work of the Council for Advance¬

training program for officers
and partners and for other per¬
sonnel being groomed for positions
of increased responsibility.
It is
the aim of this program to de¬

securities

Educa¬

the

continuation

the

were

the

during

Committee

tion

of

of

activities

Other

April 4, 1955.
The

Banking 191.

vestment

for

week

three

1952 Investment Banking

Banking,
the

a

Seminar

Banking

vestment

e

vestment

scheduled

to

sequence, enrollments have
increased substantially: 1951 In¬

for

t h

and

year

ses¬

of

transition

the

With

f or-settlng?jup>y:

the

years,

specialized training. The first cerluicates
will ne awarded at the
conclusion of the 1955 Institute..

were

a

spring for three

completion receive a certificate
of merit in recognition of their

arrange¬

ments

a

on

C onvention
that

at

program,

one
week
Wharton School

attend

The Institute

on

Continued

outgrowth of the Seminars

Education

on

page

94

CJlLn and Company
/

Incorporated

(y

Underwriters

Dealers

•

y

Distributors

•

Since 1912

FUND, Inc.

Underwriter CONCORD

has

filled:

Pennsylvania Group of the

which

time

he

1950,

at

rated

the IBA Investment

the

East;

District

IBA.,
inaugu¬
Forum

Committee,

National Association of Securities

and President,
Philadelphia, 1943.
social, and service af¬

1949-51;

Dealers,

Club

Bond

Business,

of

filiations include:

Director, Penn¬

at

surance

Company; Hon. A.

Heeney,

D. P.

Ambassador to Canada;
President, Hum¬
and Refining Company;

H. Baker,

Oil
the

incoming

President,

[These addresses in full text and
Committee Reports are given in

starting

Chicago, III.

FRonklin 2-8400

172 S. la Salle St.

New

44 Wall St.

York, N.Y.

Boston, Mass.

Olgby 4-0909
Hancock 6-4250

30 Federal St.

Aurora, III.

Merchants Nat'l. Bank

Concord, N. H.

20

Concord 2180

Delator, III.

305 Citizens

Flint, Mich.

405 Genesee Bank

Grand

The

Kansas

Rapids, Mich.

Aurora 8624

Bidg.

Ridge Rd.

Decalur 2-7186

Bldg.

Cedar 2-3169

Bldg.

G. R. 9-3428

McKay Tower

Harrison 3566

1016 Baliimore Ave.

City, Mo.

Lexington 4-4321

on

page

Lexington, Ky.

101-102

Madison, Wis.

306 First National Bank

Milwaukee, Wis.

735 N. Water St.

Minneapolis, Minn.

517 N'West'nL Bank

Moline, III.

804 Fifth Ave.

Nantucket, Mass.

5 Center St.

Omaha, Neb.

740 First Nat'l. Bank

Bldg.

Atlantic 2393

Peoria, III.

315 First Nat'l. Bank

Bldg.

Peoria 3-7486

Philadelphia, Po.

Market Street Nat'l. Bank

Portland, Me.

415

Quincy, III.

112 N. 7th St.

Rockford, III.

Gas-Electric

South Bend, Ind.

401 Nat'l. Bank

Spokane, Wash.

Convention

Connecticut; Devereux C. Josephs,
Chairman of New York Life In¬

this issue,

Commercial Paper

Reports

Activities

through its Chairman, W. Carroll

investment

Underwriter* and Distributors

.t

1953 to provide a
comprehensive curriculum.

school in

positions of leadership
Chairman, Eastern

other

he

and

Brokers of Listed and Unlisted Securities'

was

others.

Walter A. Schmidt.

|

ect
year

banking business is also reflected

ble

Established 1893

1953.

year

one

a

and the proj¬
established as a three
program,

registrants

1952; Special Convention Attend¬
Committee,
1953-54;
and

many

Hines

«

30,

ance

Prescott Bush, U. S. Senator from

INCORPORATED

Year's

capaci¬

Among the principal speakers
at the Convention were the Hon.

A. G. Becker & Co.

on

Legislation
Committee, 1946-47;
Chairman, Rights Committee,

Speakers

m

Nov.

Smith's leadership, as
refresher

more

1945-47: Chairman, Federal

those

?.y.

1,063 registered

on

Committee

Vice-President, 1952-54; Gov¬

ernor.

with

compare

introduced in 1951 under Norman

Association

numerous

sylvania Gas Management Com¬
Municipal Bond Club of
that are unprofitable. Add larger pany;
Philadelphia; Financial Analysts
accounts.
Larger unit of sales
of
Philadelphia;
Financial
Ad¬
are
the answer if you want to
visory Committee YWCA., Phila¬
increase your income — you can delphia; and Executive Commit¬
only handle a certain number of tee, Golf Association of Philadel¬
accounts and do a good job of it. phia.

they

business

He

positions in the Halsey, Stuart &
Co.
organization:
syndicate de¬

in

secu¬

their

years

& Co., Mr.

Francicso.

San

handling satis¬

clients.

as

accounts

larger

insist

speculate and

and

You can in¬

speculative

ket profits will do
may,

hours

many

the larger accounts—these are

Tip

you on a con¬

they

if

even

so

bring

can

radiation

is

now

are

to

on

some

their friends

up

with White,
Schmidt Was, in
1922, made Manager of the Bond
Department, Standard Trust and
Savings Bank, Chicago, and three
years
later became California
representative of Halsey, Stuart
& Co., Inc., with headauarters in
10

After

Weld

ac¬

limited experience with

ping small

so,

larger

the buying power

has

servative, sound basis continue to

taking

man

understanding to appre¬

factorily

try

It

the

that you

to

without

it.

for

sell

to

securities.

in some of them.

people

the

It takes less effort in most

who has

there
do

can

All

too

stocks;

securities

you

is

by upbuilding your accounts
the unit of investment is

stock

of

cashier,

Schmidt, Poole & Co., predecessor
to the company he heads today,
Schmidt, Poole, Roberts & Parke,
a
member
of the
PhiladelphiaBaltimore Stock Exchange.

ciate value than to sell 100 shares

If your cus¬

speculate

control this urge

working

and

—

ize, in Philadelphia, his own firm,

income with less ef¬

client who

are

profits;

their

there

we

ejoying.

people

with

as

departments

statistical, and trading—to become
a member of the sales staff.

ra¬

investment

only

your

instances

now

various

are

where

granted,

especially in markets such

the

give to his business.
crease

Old

111., the town of his birth.
The
Chicago office of White, Weld &
Co. employed him as messenger
and he advanced rapidly through

offices

Education

of 16 upon gradu¬
high school in Hinsdale,

obtain

This

branch

field at the age
ation from

totals

These

783 members and

investment

the

entered

He

bers.

Schmidt has worked energetically

larger.

are

1,123
mem¬

almost

career,

clients

to

your

dividends.

are

customer's

for

time

looking

Man Experience—Never take your

loyalty

each

But

during the week that anyone can

fort

2.

feeling

their market profits

for

There

secure.

Number

satisfied

a

counts.

attention you might otherwise not

be able

on

opportunity that is made

order

to

issues;

and work¬

sales;

when

their

an

your

of

out

message

takes

The

is

with

happy

wish to put
telephone call

mailing

were

securities busi¬

the

to

years,

should bring you some new

diation

you

The

them.

before

of

that

with

contacts.

reading

servicing

new

accomplishment.

week

the

are

your

home

on

re¬

keep

the books,
normal procedure to
desk at night and go

very

lock

tele¬

a

are

is

busi¬

can

day

accounts

over

When

selling

tax

prospect¬

you

the

of

most

accounts;

originating

the

take

neglect

and,

good

Guar¬

Source:

clients.

new

is

busy

Don't

—

ing for
ness

old

3.

Number

anteed

you

'<'

•

Tip

that he should watch for it and if

possible

speculative stock that
desire to add to
so-called
investment port¬

folio.

upon

won't buy

you

strongly

putting it in the mail. Don't
go
into details or give him a
story about your offering or sug¬
Just

business,

some

are

gestion.

nature.

investment

they

circular
that

him

nec¬

don't let your customers

them

sending to him, telephone

first

is

with specula¬

up

stray just because

their

or

the

to

also

prospects

or

letter

it

conservative

more

that

certain

make

special

but

National Secu¬
Corp.—If you

clients

your

a

you are

him

V.-P.,

like Ho

L.

Source:

Research

&

would
one

1.

Number

a

Stick

cialty of that particular activity.
Tip

to keep

of

phase

a

when

activity

tive opportunities as well as those
of

43

ness.

entering

are

essary

depart¬

make

so.

market

offices

that

leave

those

to

do

broker

other

some

43rd Annual Convention

there

registered branch offices of

The New President
;

to

addition

In

By JOHN DUTTON

This ought

9%

(2545)

The Commercial and Financial Chronicle

.

1017 W. Riverside

Waterloo, la.

410 Waterloo

Wausau, Wis.

Mueller

Exchange Bldg.

Madison 5-9402

Bldg.

Broadway 8-0936
Bridgeport 8611

Bldg.

Moline 2-5579

Bldg.

Nantucket 650-W

Locust 4-5161
Portland 2-1926

Congress St.

Quincy 3676

Bldg.

t

Rockford 3-8474
South Bend 3-9041

Bldg.

Riverside 8009

Adorns 4-6604

Bldg.

Wousou 8-5217

Bldg.

23.\

,

Increase

in

Members

Members

M

Chairman Edward C. George, of
New York

Stock Exchange

Midwest StoCk Exchange

American

Stock Exchange

San Francisco Stock Exchange

120 South La Salle Street
Chicago 3
Telephone: FRanklin 2-GI0#

Harriman, Ripley and Company,
Chicago, reported to the Conven¬
tion that as of Nov. 30, 1954, the
Association had 794 members classified

as

Teletype: CG 1089

Class B

york

,

san

francisco

66
70

C

129

Class D

257

Class

272

Class
new

follows:

Class A

New York Stock
,

54

Pine Street




4(>5 California Street

E___.

794

Exchange

Midwest Stock Exchange

American Stock Exchange

(Associate)

f

94

(2546)

The Commercial and Financial
Chronicle

J

Continued

from

page

Southeastern

93

Education

Murrey Atkins, R. S. Dickson &
Company, Charlotte.

The IBA of America Holds

roll

Secu¬

43rd Annual Convention

Corporation, Nashville.

The

Association, set

middle

the

of

the

up

around

Baird

the

at

year

will

be

informed

copies of the booklet

Alfred

&

following

group

Chairmen

•

William M. Adams, Braun,

Minnesota

Toronto.

Bos-

;

McFarlane,

Convention
conclusion of the

William

regu¬

C.

Thomas

^

Beach

the

William

Annual

The

to Dec. 3,

dates

Convention
set

Nov.

are

Orlando

28

Harold

The

serve

GOVERNORS

as

ciation

respective
Governors

beginning

Groups
of

the

to

,

L.

Cleveland.
State

Company,

Legislation
L.

Wells

Com¬

Morgan,

*W.

Fulton, Fulton, Reid & Co.,

Paul

Companies

Committee:

Business

Small

Yost

&

Committee:

Mullaney,

Mullaney,

Company, Chicago.-

>

Stock Exchange Relations Com¬

The

mittee:

Philadel¬

Charles

L.

Morse,

Jr.,

Hemphill, Noyes & Co., New York.

■

Membership Committee: Nathan

Syndicate

Parker, Kay, Richards & Com¬

pany,

Town-

Committee:

William

B. Chappell, The First Boston Cor¬

Pittsburgh.

poration, New

York.

Mississippi Valley
Arthur

A.

Christophel,

Rein-

holdt & Gardner, St. Louis.
Northern

Robert

O.

New

Prescott,
Shepard & Co., Inc., Cleveland.
Shepard,

Clark, H. C. WainCo., Boston.

&

PAST

PRESIDENTS

England

Forrester A.

wright

Empey,
American
Trust Company, San Francisco.

IBA

Ohio

H.

1953

54

•

1952

•

53

1951-52

Ohio Valley

'

J. Earle

phia.

K.

Ira D. Owen, Allison-Williams
Company, Minneapolis.

Spencer Trask

Asso¬

California
Lester

Goodbody

Crouter, DeHaven &

phia.

Committee:

Glassmeyer, Blyth & Co.,

Wellington

Laude,

Savings Bonds Committee: Gor¬
don

New

Kerr, Bacon, Whipple

Walter

W. Press-

send, Crouter & Bodine, Philadel¬

Chairmen's

Investment

Committee:

Securities

prich & Co., New York.

Industrial Securities Committee:

mittee;

Minnesota

Phelps

Co., New York.
Robert W. Fisher, Blyth & Co.,
Inc., New York.

Dec. 2, 1954:

on

H. Cook,

Railroad

& Co., Chicago.

Co.,

East¬

Young,

Charles L. Bergmann, R.

Com¬

York,

H.

Harold

Dillon & Co., New York.

man,

Inc., New York.

Pennsylvania

J.

New

Securities Com¬

Service

Public
mittee:

...

Edward

Co., Detroit.

York

Brewer,

Trust

of

Jackson,

Company,

Southwest

First

Securities

C.

&

following have been elected

their

S.

Fenn & Co., New York.

1955.

GROUP

Raymond

New

in

and

Michigan

Estabrook

Kemble,

Bank

Philadelphia.

&

Hotel, Hollywood, Fla., for

44th

1955.

by

T.

Continental

Evans,

John F. Bunn, Jr., Bioren &

Jr.,

& Co., Boston.

Hollywood

W.

Eastern

White, Weld & Co., Boston.

to reutrn to the

Securities

York.

States

Company, Chicago.

England

voted

Corporation

Group

Illinois National

Kalman

lar sessions of the Convention, the
Association's Board of Governors

Governmental

William

Dallas.

S.

H. Craft, American Secu¬
Corporation, New York.

William D.

Hammond,

Charles

Jr.,

Gas

Natural

and

Committee:

Foreign Investment Committee:

; -

Central

Company, Inc., Minneapolis.
New

Committee:

*

J.
Harry
Ratcliffe,
McLeod,
Young, Weir & Company Limited,

if

when
E.

Committee:

mittee: Herbert N; Repp, Discount

Company, Detroit.

Donald

&

Taxation

cago.

American

Empey,

Canadian

^

Dates of Next Year's

the

H.

Rauch, Kidder, Peabody

Michigan
worth &

mill

rities

Trust Company, San Francisco.

.

York.

Robert

California

Pennsylvania

& Co.,

Bryce, Clark, Dodge

New

Vrtis, Glore, Forgan & Co., Chi¬

appointed
for the ensuing
were

year:

Mil¬

Co., Philadelphia.

available

are

Cole

CHAIRMEN

The

W.

Robert

Incorporated,

Co.,

Nominating Committee: T. Jerrold

Maynard, Shearson, HamCo., New York.

Finance
GROUP

Lester

&

At

Beecroft, Beecroft,
& Company, Topeka.

Kerr, Bacon, Whip¬

Eastern

for distribution.

Site and

Harry

in

Washington,
through its Chairman, W. Yost
Fulton, of Fulton, Reid and Com¬
pany,
Cleveland, Ohio, reported
that it has begun work and has
under preparation a monograph on
equity financing which it hopes
will be ready for printing shortly.
Members

&

Sons, Baltimore.

Committee:

T.

Federal

waukee.

request of the Small Business Ad¬
ministration

D.

ple & Co., Chicago.
Ludlow
F.
North,

Business Committee

Small

of the

William

Creighton Riepe, Alex. Brown

&

Oil

Central States

Newly Created Small Business
Committee Begins
Work

J.

Co.,

New York.

Walter

Witter &

Eaton Taylor, Dean
Co., San Francisco.

Municipal Securities Committee:

Car¬

&

McClintock, HarriRipley & Co., Incorporated,

man

Southwestern

Representing the American Securities Industry."

W.

Miller

Legislation

Franklin

Q. R. Ledyard, Equitable
rities

Mead,

Baltimore.
Federal

Southern

Committee:

Mead,

1954

Thursday, December 16,

...

New York

James R. Burkholder, Jr., Alm-

Jardine, Jr., Wiliam R.

Staats & Co., Los Angeles.

stedt

Rudolf

Brothers, Louisville.

Smutny, Salomon Bros.
Hutzler, New York.

&

Northern

Ohio

Herman J. Sheedy, MpDonald &

Company, Cleveland.
Ohio
Powhatan

Mullaney, Wells

Company

&

Valley

M.

Conway,

The

Bankers Bond Co., Inc., Louisville.

'y Pacific. Northwest
John

UNDERWRITERS

J.
Hasfurther,
Co., Inc., Spokane.
—

Blyth

&
T. Jerrold

Rocky Mountain
O.

Ewing T. Boles

Joseph T.Johnson

Investment Stocks

y//////////////////////////////////^^^^^

Jerry

Jorgenson,
Peters,
Christensen, Inc., Den¬

Writer &

Corporate Bonds

Bryce

DISTRIBUTORS

ver.

Southeastern
Wilfred L. Goodwyn, Jr., Goodwyn & Olds, Washington.

Municipal Bonds

First Securities Company
of

Chicago

i

Clement
Evans
135

SOUTH LA

SALLE

ST.

&

A.

Evans, Clement A.

UNDERWRITING

Company, Incorporated,

TELETYPE

Southwestern
Glenn

Milburn

L.

Wichita.

UNLISTED

'

Edward

Co.,
.

.

"

LA

^

-

CG

Midwest Stock

•

SALLE

Exchange

STREET, CHICAGO 3,

ANdover

Branch

Houston.

ILL.

i»

3-1520

Offices

Champaign, Illinois—Cedar Rapids, Iowa
'

••

'

•

*•

\

Direct/Wire

Western Pennsylvania

MUNICIPAt

to

Scherck, Richter Company, St. Louis,
Cohu

&

Co.,

New

Mo.

York

Charles McK. Lynch, Jr.,
Moore,

BONDS

Leonard & Lynch, Pittsburgh.

NATIONAL COMMITTEE

Exclusively




-

Rotan, Rotan, Mosle &

'

Years

1399

Member

134—SOUTH

57

1751

DEPARTMENT

TELETYPE

Incorporated,

CHAIRMEN
The

following

mittee

the
year

Chairmen

Board

of

National
were

Com¬

named

Governors

for

MUNICIPAL BONDS

by
the

Since 1885

1954-1955:

Atomic Energy Committee: Wil¬
Established

1898

We
Incorporated

—

CHICAGO
Boston

Cincinnati

NEW
.

St. Paul

liam

1953

YORK
.

S.

Hughes,

Wagenseller

&

Durst, Inc., Los Angeles.

Los Angeles

Aviation

William

Securities

%ve specialized

distribution
years,land

in

underwriting

the

of Illinois municipal

offer

you

bonds for

and

69

experienced, prompt service.

Committee:

Barclay Harding, Smith,

Barney & Co., New York.
Canadian

Ratcliffe,
&
-

T.

Committee:

McLeod,

J.

Young,

Harry

Conference

Committee:

H. C. ©peer & Sons
%yr,

Weir

Company Limited, Toronto.
Ewing

Field

M

135 So. La Salle St.
CHICAGO

Telephone
If——

Company

ESTABLISHED 1885

Bidding

Boles, The Ohio Company, Co¬

lumbus.

!•

•

Texas

For

CG

I

t •:

TRADING

Milburn, The Small-

Company,

DISTRIBUTION

MUNICIPAL BOND DEPARTMENT

Atlanta.

CHICAGO,,3, ILL.

•

V

i

i

Southern

—

3

RAndolph 6-0820

-

i—

1

.Volume 180

Number 5386

.

The Commercial and Financial Chronicle

..

(2547)
Continued

from

3

page

The

President

his -friends

political

Congress and Business
cent

the

controlling

both

right hartd side.
this highway tends
quite congested.

the

the

and

Senate, the party out
gained less in these re-

of power

elections

than

is

normally

T

case.

people

mandaipg

that the Ameri¬

means

not

are

handing
-

be

rp.

o™

hammered

anvil of

out

the

on

controversy and

,

„

they wish-a.

who
out

c°mmands

the

oartv

matters

us,

when

' are

,

of -'his

you

new

wants
of

both

to
the

as

the

Re¬

the

he

President

.to exetptoe :the

lets

it

imperative

so

be

known

very

soon that he expects to be a can-

is

ou^ 0f

Eisenhower is

taken

equation the Republi-

can Party falls into a hundred
(pieces.; No man can claim to be

its"feader"

more

the~

or

leader

of

controlling faction of it.
5

together

loosely only

any

the

respects

Demo-

crat& appear to be more adaptable
the Eisenhower leadershin than

10 uie Jiiisennower leaaersnip inan
;'vRepublicans. We see this in
not so
.

1

president

of

He is convinced

uvV

d

.

party unity, but fought over gion among Republicans on the
openly and publicly day after day. .Bricker; amendment-and the
Eisenhower

thinks

he

has

answer

an

merely

pursuing the only

open to

him.

who
end

He

believes

I

o'*

am

♦

that

sure

sure, tnat

-

has

now

the

many

,ng

jam"

is

of

firmly.

I

down

so

the

middle

of

a

middle

nanow

of

the

white

is

the

leav-

to

party

too

Mr.

grasp
very

sure

but

Others

defense.

our

continental

United

States.

defense

If

of

their

they

is

but the

So

so

doggedly on marchthe left hand side or

now

the

an(j

will

and

let them

go

will.

danger is that if he does
there may be

nothing left

of the Republican Party at all. I
am sure this has occurred to him.

must be finished.

tonight

wishes

increase

to

expenditures

by

BONDS

aii

their

with

it

be

on

inviting

all

stable

that

a

sharply increased, and

then

even

would

the

rise

to

budget

deficit

astronomical

President

Eisenhower

has

year

A

ago.

^

'

-

Marshall Plan for Asia

new

has been projected by Secretary

pro-

*

portions.

of
" —

State

Dulles
" "

Harold

and
'

Continued

thus

on

page

^

(Incorporated)

stocks

b o n d s

Industrial

—

Railroad'

1

Municipal Bonds
Members Midwest Stock Exchange

Philadelphia-Baltimore Stock Exchange

de-

American Stock

'

h

with

open

promise
shall

we

is i

f

nificant

lt

Exchange (Assoc.)

135 South La Salle

and

have

a

th

t

Street, Chieago 3

Telephone Financial 6-4600

Teletype CG 273-2860

eovern-

Hi fie

m p0

change

of

ih

New

York

—

b etwee

Philadelphia

—

Minneapolis

.

.

the

n

Administration

and

it

was

which

preceded

The Eisenhower Ad¬
based

its

actions

on

Central Republic Company
(Incorporated)

209 SOUTH LA SALLE STREET

the presumption that war with

on

Russia

probable,

was

likely to

and

was

CHICAGO

at some spe¬

come

cific date in the future.
Forecasts

as

THE

the

on

most

likely

always wrong,
hoped they would be.

war

everyone

were

Such

forecasts

made.

NORTHERN TRUST

UNDERWRITERS AND DISTRIBUTORS

The military top command

which

had

policy

COMPANY

until

removed.

are

the

this

early

President
a

OF

defense

year

was

INVESTMENT SECURITIES

Eisenhower

policy.

new

America's

longer

no

guided

established
System Teletype CG 368

defense

would

no

longer be planned to reach a peak
at some hypothetical date when

CHICAGO
•

war

considered

was

YORK REPRESENTATIVE

likely to break out.
ST., DIGBY 4-7400

System Teletype NY 1-853

defense

could

country

be

be

the

and

not

take

one

year,

20 years to build

it.

New York

Milwaukee

Minneapolis
St. Paul

Omaha

Des Moines

Cedar Rapids

Denver

St. Louis
Galesburg

the

know

or

most

what

support,

did

would

of

to

The level of

only

could

President
it

whether

10

Member of Midwest Stock Exchange

years

The build¬

strength would

be slower
military command
thought desirable, but it would be

up

than

the

old

something the country could bear
without

SINCE 1890

economic

an

the peak

after

collapse

reached.

was

In

Stifel, Nicolaus & Co., Inc.

a

practical effect, this meant
progressive decline in the vast
spent

defense.

A

on

foreseen

be

expenditures

BANKING

in

level

around
A

near

war

tion

on

it

and

Corporate Securities

our

and

unless

Illinois

at any

defenses

not

Time in the

Underwriters and Dealers

very

is

still

as

de¬

can

convic¬

are

desire

the

more

I

the

policies

is still

the

did

far

that

indeed

by

backed

So

which

course,

was

Russia

that

future.

termine

Utility and Industrial

105 W. Adams St., Chicago 3,

stable

a

billion.

conviction
want

Public

defense

somewhere

at

point

no

dangerous

Municipal Obligations

reached

1958

$32

until

policy of this kind, of

had

& Distributors

INCORPORATED

year

sums

could

YEARS OF INVESTMENT

NONGARD & COMPANY

pro¬

gressive $4 billion cut each

Underwriters

based,

MUNICIPAL and PUBLIC REVENUE BONDS

build

to

slowly but

more

with

this

surely.
I

CHICAGO

3

ST.

LOUIS

2

ADAMS

STREET




314

No. BROADWAY

need

audience
such

105 W.

E.
-

96

H.'M; Byllesby and Company

without peace,

course
t

firm

a

renresentative

mentThis

date for

64

about

footing, that the opportuni¬

most

Bell

year

have to be

vitally concerned that

are

the nation shall

hope of achieving and main¬
taining
peace;
Administrations
which preceded it had to operate

STATE and MUNICIPAL

BROAD

a

$5 billion, thus reversing the field
on the progressive cuts projected

All of you here

ministration

15

President

thing, Secretary of De-

to

the

U. S. GOVERNMENT

NEW

the

own

carried
to reverse the
policies
estab-

followed defense expenditures would rise, taxes would

Public Utility—

"

Bell

Wilson

defense

advice

were

This brings me to consideration
0f the nature of the job which

those

•

fense

the

by
one

his

if

re-

decide

simply this:

2-7070

tend

moderate

ago.
For

say

which,

these
have

on

Party

Republican
think he

I

made.

Eisenhower

FRANKLIN

would

lished

programs

within

conceived

out,

soy we must-spend vtet suaw fcr
the

new

Administration
more

from

pressure

been

todciy.

However, there have been influential opponents of the Eisenhower policy who say that he has
cut back too far and has endan-

gered

resisted

quarters. But

f0r another term in the hope that
his program* may
be concluded

ties of tomorrow shall

group

I speak here
only in terms of practical politics,

insist

down

own

not

of conservatives

that

line.

his
am

"hope-

avoided

have

of carrying

or

fense

where

road

be

Party

out the small, determined

'

only difficulty here

to
will

far

of his Ad-

years

that in the end he may not shake

marchinS to"

s,ln

that if the

say

Eisenhower

com¬

that

would

less

course

..

such'

I

control

exact

defense

a

life

of'finishing

choice

the last two

up

ministration "inconclusivelv

finish the job.

•

those

3011?

gether

the

conducting international

avidly at either
policy disputes will in the

of

ihe

is

or

He believes in

struggle

st.

power and authority of the Presi-

has

It is yet to be
dent in
whether or not he /■.-affairs-

answer.

demonstrated

promise.

building

compelling single inAmericsn

in

of

the ;RePubllcan Party is the only^
possible instrumentality ''through

divi—publican

of

actually

fluence

It hangs

because

the;'^

Mr.

most

dent Eisenhower.
5

' to

find resounding ; Eisenhower and Secretary Dulles.
opinion
in both; iiVe see it in the 22 to 22 division
major political parties. They are
<ofr Republican ^Senators 1 oh
no
longei hidden in the interest McCarthy issue. Also in the

found the

act of

mere

is'the

^ personal popularity of Presi-

;

certain

fathers.* We

differences

unless

be-

I?-®160*

,

jn

in

a

the

simple,..the insistence of Senator Know-^ which his
program of moderation
and I learned about. Jand-on
his own
Asian
policy mav he.nut into oftwt
Ann
ho
or-TJembrfats from rather
than
that
of

Republicans
our

,

man.

through-

regardless

affiliation

TK..Cas

respect

world

be

asserting his leader-

in

He

opinion,

my

moment Mr.

when

Eisenhower

successful

j^ise, one by one. At the head of ship.
the government

it

thinks

leadership which is

.

Republican Congress? This could
be
the
result
unless

hard-President

he

ym,:1M>t.be

on

certainly

compro-

of

e» DUP' i f'r11 didate for re-election in 1956. The
President Ei-

•

und?,rtook

mandates any longer
They apparently wish national policies to

what

elements

In

jam

forecast

owei

out

some

wishes

publican and Democratic Parties.

become
,

i

sen

Traffic
to

...

4v
nopeiess

tk
tne

All this
can

H

grouping.

include
best

House

told
he

would bo possible to form

The New Democratic
eral,, while

has

that

95

our

a

not
on

dwell

the

decision.

significance

governmental activity is

centrated

on

here that

our

of

Three-fourths

defense.

lives

as

We

well

of

con¬

know
as

our

fortunes depend upon it and that

Telephone

Teletype

DEarborn 2-6363

CG 385

96

The Commercial and Financial Chronicle

(2548)

Communists

These

much

but

hear

and not
about

formulated

has

them,

policies are only

new

being

now

published

been

will

I predict that you

the future.

in

of them

more

It may

easily be that the longer
Republicans remain in office the
more clearjy they see the need of
the ambitious plans and expen¬
sive

by previ¬

favored

programs

Administrations.

ous

In any event, an

ference
in

the

tion.

It

ence

on

is the

first

This

trouble

of

the

ground
was
cut from under him in his
attempt to take a firm line with

Stassen.

Mr.

The

a

Humphrey

Secretary

cold

our

foreign aid.
nomic

iero

He

their

own

in

an

Rio

word

de

I

Jan-

large

a

mysterious

formulated

in

was

but

the

Eisenhower

These

ambitious

policies.
They meant giving economic sup¬
port, including American dollars,
to
teeming millions of people
stretching from Afghanistan
through India and Burma on to
Indonesia, the
Philippines
and
were

to

a

phrey

charted

vails,

or
on

pre¬

whether we shall em¬
undertakings which

new

will upset any

budget

prospect of a bal¬
in the foreseeable

future.

Stassen's

Mr.

that

idea

had

adjust¬

tariff

prospective

been

ments and trade advantages were
not

enough; or, in any event, they

would

come

supported

too

slowly.

capital

Moscow-

expansion

expansion of industry. They
instead
to
provide
direct

wish

benefits

which

they

believe

immediately

Senator took his seat without ut¬

will

the

finger at Senator Humphrey
and, miracle of miracles, trie

—

tering

pur¬

word.

a

him

Eisenhower's

Mr.

cloudy.

Clarence

whom

Randall,

many of you here know, has been
back in Washington preparing to

again for the tariff and
adjustment program which
sidetracked
last
year.
Mr.

press

trade
was

Eisenhower is

liver

another

in

his

the
State of the Union early in Janu¬
message

on

ary.

the

program

in

leadership

first

v/as

this,

the

Republican

themselves;

President

would

believing

but

have

that

the
of

none

the

Republi¬

should

put
this program
through and take credit for it.
cans

It

be

may

that

the

Democrats
the Randall

over

when

Congress meets
again; at the very least the Dem¬
program

ocratic
three

leadership will support
extension

year

of

the

a

re¬

ciprocal trade program.
I

have

few

mentioned

of the

tries

and

he

is

right

when

he

and

is

Now

Here I am speaking more par¬
ticularly of the left wing of the

practical political terms? It
crats

think

it

only

a

Party,

should

be

but

I

do

on

does

that

means

occasions the Demo¬

many

of

the most conservative of the

think the American voting public
Senator
George
of
Georgia, joined hands with the will like that. I think voters will
conclude that the Republicans in
left wing Democrats last year.
More party discipline, I believe, Congress are irresponsible.

Democrats,

be expected

can

from the Demo¬

crats than heretofore.

Truman

Administration

Congress
coalition

controlled

was

which

fought

in

Fair

as

by a
Mr. Truman's

Deal and made of it

no

a

submitted

paper

program

at

the

Democrats, of course, also have
their faults.

During the

opening

I

of each

any

longer

exists.

cans

In

place, Mr. Eisenhower
likely to submit to Congress
programs

the

which

particular

But

public life

.

it

sacrifice.

is

a

many

many

undertak¬

more

He

wants an expansion of
the health program, and the roads

He will push his pro¬
for world-wide cooperation
the development of peaceful

program.

in

of atomic energy.
Democratic
leadership

uses

The

AND

approaching
with

Corporate Bonds and Stocks

its

President

cooperative
forget

members

in

This

pretend

to

answer

of the

one

of

when

the

control

Democrats

of

the

took

House

their

businesses?

Let
and

even

me

assure

public

that politics

you

life

are

a

full-time

importantly, the Democrats occupation, with very little time
thirsting for victory. They are out for recreation. And at the;

are

trying to close ranks
beat

can

runs

I

for

Mr.

that they

so

Eisenhower

re-election

in

if

summit of public service

he

times,

1956.

and

must

men

even

their

astonished

at the Demo¬ and
often, I am
discipline during considera¬ regard for the wishes of their
of the McCarthy issue.
At families.
point, Senator Hubert Hum¬
Of course, when we consider the

was

cratic
tion

in these

lay their health
on
the line,
afraid, without

lives

S/nyuiiieA /fnvi/ct/ in
MILWAUKEE

&

WISCONSIN

SECURITIES
Sftoncfb

SPlocAb
Public Utility

Public

Bank and

Industrial

Insurance

Utility

Industrial

Municipal

Mutual Funds

Institutional

over

in

the

Hoover Administration.
This

RAFFENSPERGER, HUGHES & CO.

man

Mr.

Incorporated

congressional elder states¬

Indianapolis 4, Indiana

while




conference

pleaded

sion.

combat

this

it,

elder

John

Texas, who

a

politics

the

tem¬

some

depres¬

stateman

Nance
then

was

the House of

to

President,

we

want

we

MUNICIPAL
AND

keep

this

effect:

Democrats

"Mr.

control

will

CORPORATE

if

and

you

be

may

expect

we

think

that

say

to

I

I

But I
am

1955

year

aside

set

interest.

not

I

We

ideas of what ought
We have you where

Now, perhaps in the
national

in

only

the

hope you
cynical

doubt

it.

On

in¬

affairs, perhaps—but
the reason that the

for

Democrats

policy

than

the

—

...

The Democratic

SjjeakfiE--'raTftOr
century

INDIANA

its

'wants

which

SECURITIES

ago,

In

own.

to

the

pass

will

quarter

a

has
a

a

few

price

nullify

parity

stuff

for

—

want

place,

farm

the

to

go

guarantees
none

them.

MILWAUKEE

Member

a

ideas of

first
new

of

it

bill

Benson

adopted by Congress this
after so much travail.. The

Democrats

rigid
of

EAST MICHIGAN STREET
2,

WISCONSIN

.

.

Midwest

Stock

Exchange

I^trefsliip, like

program
year

207

Republi¬

cans.

SPECIALIZING IN

The Milwaukee Company

really
more
in
with the President's
are

agreement
Asian

Corporate and Municipal Securities;

too

ternational

UNDERWRITERS

BROADWAY 6-8040

Speaker of

there."

you

politics

•

of

own

done.

be

to

SECURITIES

STREET

re¬

Garner

the House of Representatives.
our

INVESTMENT
225 EAST MASON

Representatives, said

something

have

a

for

adopted

to

As

calls

at

where

on

moratorium

Congress

measures

Member Midwest Stock Exchange

present

was

House

Hoover

porary

20 North Meridian Street

he

says

White

of

back

of

Sole

Edgar, flicker &

owner

of:

-

Co., Distributor *»<I Manager

:

'

WISCONSIN INVESTMENT COMPANY ~
Telephone

Teletype

BRoadway 6-6075

MI-581

to

90%

this flexible

"

Democrats also wish to give in¬

it

But I ask, are the Republi¬
in Washington working hard

a

cannot

Congress who
the Republican leadership

in

was

I

But

story told by

a

elder

Eisenhower

spirit.

is

association

new

.

more

gram

Municipal Bonds

.

Re¬

interesting question, and

to

are

ings.

DEALERS IN

re¬
.

tol, reluctantly taking time from

would

opposition

of Southern Democrats.

to

enough at their jobs, or are they
merely temporarily in the Capi¬

first

arouse

.

for

not

do

here.

coalition

many

an

.

this

say

seem

of life;

way

raises

I do not think the basis for this

is not

a

publicans

to

session.

the

But I would

Democrats

gard politics

than

more

general:

finish the job under
trying political circumstances.

There

in

mean

will
be seen supporting
Eisenhower, while about half the
Republicans in Congress are op¬
posing the President.
I do not

not

one

what

that

forgotten that

the subject of taxation

on

one

here

to

wrong.

voter.

projects and problems
Mr. Eisenhower as

confronting
he

between

Government

Congress

When

in

connection

The announced

Democratic

foreign trade policies is

certainly very
Mr.

pro¬

revision of

wholesale

a

will wish to take

,

his

when

leadership. Many Democrats were
only
too
anxious
to
take
the

ago

year

a

for

oppose

very

on

incentives

Ma¬

jority Leader of the Senate, Lyn¬
don Johnson of Texas, waggled

Humphrey doc¬

providing

to

rose

The

remarks.

some

hower

developed

depends

entire

make

re¬

left winger

the

presented to Congress, opposition

Secretary Hum¬
whether the moderate

anced

Administration.

it

they wish to

own,

his

of

Federal

on

stand

to

feet.

extent

course

bark

a
very
idea that

that

a

mind

a

trade

individuals

as

encouraged

think

eco¬

well

as

absent from

was

spread
highly au¬
thoritative way that the new pol¬
icies for aid to Asia were being
in

nations
be

attending
the

activities

must

conference

when

war

is

of the

advocate

defense costs and

our

Washington

would

who

Hum¬

Mr.

heard,

I

last

the

of

phrey of Minnesota,
with

Democratic pol¬
icy is to support President Eisen¬

Humphrey
in¬

Treasury

Secretary Dulles and

aid plans of

skillful

broaden

The Secre¬

Americans.

tary of the Treasury returned to
Washington to oppose the Asian

fluence

and increase

the

the

trine

low

the

for

•

believe

verse

the

direct

was
right on the
prospective tariff and
adjustments. But the out¬

gram

of

I

in

break.

a

increase
not

or

Stassen

Mr.

American

much

taxpayers

slowness of

not ex¬
pect his support for some of their
plans to cut in on American for¬
fact,

come

brackets

chasing power for the mass of the
people. They wish to establish a

for

aid.

whether

know

not

program

way.

those

do

look

has been the main restraining
on

I

phrey's ideas were prevailing, as

in

developed

unfortunate

the economic rescue of Asia.

by the fact that he had just
finished telling South American
diplomats that they could

for

program

they have for the past two years.

Eisenhower's

lieutenants.

rather

ambitious

an

Secre¬

major differ¬

Mr.

in

which could afford it, should

rope

launch

any

the South

States,

being urged to de¬
special message to
Congress asking for adoption of
the program.
If he does not de¬
liver a special
message,
he will
surely again ask for the Randall

Administra¬

Eisenhower

among

chief

tary

important dif¬
policy has materialized

Secretary Humphrey first
learned of this from the press in
South
America.
His disposition
could
not
have been
improved

In

United

league with those nations in Eu¬

Japan.

eign

he

would,

the

Therefore

Congress and Business
Stassen, Foreign Aid Administra¬

controlled

by the
thought,
prove to be a fatal attraction for
nations not yet Communist.

95

The New Democratic

tor.

Asia

of

areas

Continued from page

Thursday, December 16, 1954

...

CHICAGO
....

•

ST.

PAUL

GREEN

BAY

MADISON

•

•

RACINE

•

WAUSAU

T 4

t

Number 5386

Volume 180

The Commercial and Financial Chronicle

...

outlook for the next two years we
find

where

area

most

important

The leaders of

have

we

it is
of all.

and

information

little

very

the

vast

one

area

government do
not know what Communist inten¬
our

MacArthur that general

Douglas
is

war

longer

no

a

policy«

I found

From what I have said here to¬

that

clude

only con¬

suppose you can

in for

are

we

a

rather

They can only guess at rugged time in Washington. Per¬
them.
And we must give these haps you feel as I did 22 years
men
credit.
Thus far they have ago when I first gazed down on
what seemed to me to be the in¬
guessed right.
;
credible confusion of the House
I would not presume to try to
solve an enigma which they can¬ of Representatives in session.
I asked myself how these men,
not solve.
This is a fair analysis
in all the controversy and confu¬
of the opinion at the top level:
In Europe, and in all problems affecting Europe, the Communists
f
rn

tions

hand.

They

to extend

friendly

a

Oar Foreign

,-On the other side of the world,
China,' the ^Communist world

who

accountants

fjecj

in

certify

our

balance sheets. In Turkey there is
concept of the equity formation
of capital and not one single pub¬

has appeared to be a

lic

with

us

Twice

war.

in

no

with China
distinct pos¬

sibility.
Now,

the

top officials say,

our

harden.
enter

accountant is the entire coun¬

try.

Once

again

diplo¬
in the
diplomatic service who under¬
stand private enterprise and indi¬
matic corps.

shall soon

we

time of tension.

a

need

We

Soviet attitude in Europe will soon

vidual

help from
We need

and

resources

our

men

prefer it to

Perhaps the forbearance of Pres¬
ident Eisenhower is not as plain

government management to enter¬

to you as

it is to me. He is visibly

prise.

restraining himself from giving in

We

to his feelings of anger and
tration.

We

this

see

frus¬
plainly at

conferences. He will not give
in to these feelings of anger and
frustration; nor, in my opinion,
will he

take action

ever

not always

had them.

need incentives within

we

own

flow

economy

for

outward

capital, to
gain. One of

for

those incentives recommended
the

Presi¬

as

have

Then
our

press

President
be

last

year

was

by

that

all the world
dent Truman did. First, President that preference on American taxes
Eisenhower will go to Congress which exists in this hemisphere;
there

for authority.

namely,

given

a

to

credit of 14 percentage

know, opinion dif¬

points on the corporate income tax

fers widely on our policy in Asia.

return, for income earned by in¬
vestment
that
had
been
sent

As

all

you

Yoq will
next

six

in Congress in the
months, a rising desire
see,

the issue
not

yet

satisfactorily

how

we

China

Need

without

at

the

same

new

time

the

White House

there is

a

he

to

IBA

racket,
decisions

right.

Both
who

the

1950

system

our

operate it

and

the

to

seem

the times.

equal to

-

PAST

51

PRESIDENTS

1949

50

-

1948 -49

men

to be

me

think they

I

will master the times.

Who, hav¬
ing some glimmering of our tech¬
nological potential* can doubt that
only on the threshold of
era in history?

we

are

the

greatest

when

was

trust, to find out how to

second

is

tourism.

Time

hmvtM a

people smiled at tour¬

has

It

ably

important factor in world
Fortunately no one in this

trade.

become

unbeliev¬

ism.'

an

country that I know of complains
about
people
going abroad
to
spend their money—but perhaps
I have spoken too fast.
Broadly speaking, the general
public is not opposed to me or you
going to Europe.

people are against
that way of stimulating trade.
Why has
the great urge of
Americans to go everywhere come
to pass?
A lot of it comes from
Very

the

few

He

GI.

father

Now

he

where

go

M.

Marks

Dreyfus
Dreyfus
New

York

New
Jan.

&

will

to limited

This

mother

want

and

went

summer

Stock

admit Richard

of Americans

partnership in the firm.

Orders

executed

to

sible for
the

is

world, and don't forget it

dollars

to

tries.
to

going to foreign
them

of

Most

us.

Industrial,

leads only

that travel

true

not

Exchanges

Railroad

Securities,

Municipal Bonds

back

/

trade,

by

Schwabacher 6P Cot

friends, just with in¬
capital and with tour¬

Members
New

to the tariff.

me

i

York

Stock

Exchange

American Stock Exchange

re¬

New

this

York

Cotton

Francisco

San

—

—

York

New

1

:Uv

14 Wall Street

written me, but
me

in

the

see

me

few weeks.

since

is

trade

:
5, N. Y. "

■■

Teletype NY 1-928

Montgomery at Market Street, San Francisco 4,
Sutter

two-

the goods v/e ship out must
President's

The

receive.

(Associate)

they will look

next

Private
San

Francisco

announced last year is,
believe, a moderate, reasonable

—

Wires to

S?nta

Sacramento

program as
I

New York

paid for by goods and services,
we

Exchange

Exchange

Produce

Commodity Exchange Inc.—Fresno Cotton Exchange

v

to

come

Stock

(Associate) —Chicago Board of Trade

Exchange

COrtlandt 7-4150

way,

San Jose

Utility,

coun¬

come

shipping and the airways.
Of
course,
you
can't balance

that

Oakland

Coast

Foreign travel is a great stimu¬
lus to our own industries, our

be

Sacramento

Public

State and

who have neither

4

Pacific

on

Underwriters, Brokers and Dealers

makes it pos¬

quick travel to all parts

Principal Offices

Barbara
•—•

Calif.

1-5600

i—

Fresno

Monterey
—

—

Oakland

Santa Rosa

approach to a difficult subject.
The objective is to try to assist
the world in earning its own way
and put

into honest application to

ourselves, the principle of vigor¬

which

competition

ous

has

ap¬

peared in every set of resoultions
of the NAM since it

the period of

over

Dealers in

Corporate, Municipal

three years

To make
and

believe

IsH/hlisllvtl /////.'/

Angeles

Slock Exchange •

SAN EKANCISCO
PRIVATE ft IRE

•

♦

Son Francisco Slock

Exchange

American Stock Exchange (Auoriatr)

LOS ANGELES • NEW

YOIKK

CONNECTIONS RET IV EES ALL OfVICES
hirert Leatrd Wire» to:

SHEARSON, HAMMILL & CO.,




MEW YORK

.

SCHERCK, KICHTER CO., ST. LOUIS

President

the

States

exercise

to

•I. Bakth & Co.

selective because it would

commodity by commodity, and

United

Los

selective,

a

by the American tariffs.

posed

I

Slock Exchange

gradual,

a

evolutionary approach to the

I say

New York

Reduction

Selective

and

Of Tariffs

be

Mcmbrr*:

things:

reduction to the trade barriers im¬

Securities

and Unlisted

Gradual

the

be author¬

was

to do these

Undcrwritcr.v. Distributors and

of

that he

President
ized

founded.

was

suggestion

the

Now,
ifflij Hjl-M

be

can

that

the

of

trusted

in

power

not
any

precipitant manner to cause sud¬
den
and
violent
injury to any
American industry.

is

It

is
a

a

change of direction that

involved,

an

j^olutionary, not

First California Company

revolutionary, change.
The

tions

authority
was

to

be

to

Incorporated

make

exercised

reduc¬
the

at

Members

that
that is,

being accumulated

the

authority not exercised in

year

would

not

be

Continued

—

carrier
on

Midwest Stock

300

one

over

page

98

Los Angeles Stock Exchange

San Francisco Stock Exchange

rate of not over 5% per year,
not

on

partnership.

Joe.

see

Naturally,

FRANCISCO

of the

Exchange,

Germany and they were going

nor

SAN

members

Stock

PACIFIC COAST SECURITIES

Strong men differ on this sub¬
ject. There are a few here tonight

Garfield 1-4460

York

1 will admit Ben Schanzer to

Jan.

H.ymes

Co., 120 Broadway,

been to Eu¬

never

for

STREET,

New

on

&

City,

before, but Joe was stationed

rope

in

We met all kinds

going there, Ameri¬

who had

cans

takes

Investment Securities

York

I

and

Now, if you will all kindly
lax and take an easy posture,

SUTTER

Exchange,

New

t

ism.

ELWORTHY & CO

Goldman

Broadway,

to

does

so

wife

my

in Europe.

were

vestment

111

50

Hal H. Dewar

To Be Goldman Partner

to Admit

Co.,

City, members of the

York
1

Albert T. Armitage

everywhere.

went

and

Laurence

Nellie, before they settle down.

of

restudy that great
mechanism the in¬

study.
The

General

with

agrees

the

So, that is one of the first things

who knows war and who does

-think

of

adapt the investment trust to the
flow of outward capital.

ncjt think modern war is feasible.
I

to

modern

vestment

Union.
In

need

We

grips with the Soviet

to

Mechanism

the

Investment Trust

explained

shall settle the issue with

coming
!

were

usually

Now the airplane

the part of a

man

that

over

abroad.

minority to settle
with China. They have

on

and

more

being

were

this

all

Economic Policy

the past two years war

threatens

in

out

even say

resort to blandishments.

even

As I learned

that decisions

Continued jrom page 1U

to our peo¬
ple abroad: Now we wish to be
friends. Our officials say the So¬
viets

great nation.

hammered

are.

have seemed

97

sion, could be expected to govern

practical in¬

a

strument of national

night, I

(2549)

Prlea

te

Wire

Exchange

Montgomery Street
to

New York, Chicago

•

San Francisco

and other leading EaUern cltlom

98

The Commercial and Financial Chronicle

(2550)

from

page

97

State does

York

New

Continued

have Canadian oats

United States, and

Economic Policy

Our Foreign

that

all the nations
world gathering to¬

our

gether, where concessions by one
woud be traded off against con¬

act,

tilateral trading

the

of

free

—

The

under

President's

the

direction

ly,

mark

Plan

the President
that where any tariff exceeds 50%
of value, he should have the au¬
thority to reduce it to that level in
the three-year period.
With any
commodity that was not moving at
all into the United States suggest¬

That

is human

used to establish a pilot

operation

we

difficult

Danish

When

yells, its local paper yells, its Con¬
gressman
yells, and the whole
including me.

days

and

we

to buy Ameri¬

want you

coal."

had

dollars

lion
we

prob¬

been

lost the bases

There

standable.

spent,
the

and

also

was

Canadian oats. I
York

I think sometimes the business¬

which

with

lars

products,

say

to

sign

no

goes

so

Danes

State and

matter

the

was

of

born in New

grew

up

in oats.

aside which I hope my friends
me

not hear,

industry which wants

exclude

manding

oil

Venezuelan

that

coal In order that it

flow into Belgium and also
V.

tariffs, who

it is not right
for other nations to impose tariffs
against our products?
There are many tools at hand
can say

for the other nations to

Investment Dealers and Brokers

flict

discipline

United

Underwriters —Industrial Brokers

Los Angeles Stock Exchange

Francisco

407 Montgomery

New York

5

Los

4

Van Nuys

Street

San Jose

13

55 North First Street

4o Wall Street

Angeles

14

Building

Beverly Hills
275 North Canon Drive

use

the

1932

there

policy.
oil.

cut off Vene¬

Venezuela

now

the

of

in

the

depression.
midst

of

It is

down.

They want their people to
have our goods and they want to
have the dollars, and they have a
very ready resource at hand as a
means
for
getting
the dollars.

ela

to

the

United

States

and

we

same.

the bill just the

There is
in

no

You

United

commodities

must

American

in

ships,

not the cost is

or

have

heard

that

power

way

in

by which

government

of

gan:

American

it went to benefit the other nations

Plan. It is

equipment at the price
25% over the foreign price with
the tariff on top of it.
I ask you,
money

with the vast

we

are

sums

spending

demanding,

the United

companies. We wanted
help Norway, a shipping coun¬
try. She was starving. We didn't

to

let

States should

her

con¬

than

company?

You

belief

buy on quality and service and at
the best price obtainablle. Reflect

chant

you

on

use

in

different
your

and

come

We

Now, I yield to
that

we

Marine

no

suited

to

seems

to

ident

That is

war

Free Forces of the
Restore

Freedom

and We

right

r' •

_

Stocks & Bonds

Active Retail Outlets
.

%.■

;

*'<C.

had

Will Put

one

slo¬

JEteonomy Play,
of
on

Co,

NAULT
ESTABLISHED 1931

,

$

*,'•••

k Russ Building, San Francisco 4
Telephone £Xbrook 2-7484

Bell

System Teletype SF 272

IHlllllllllH

,vv-

■

Wholesale and Retail Distributor
' t.

r,

INSURANCE STOCKS

-

-

BANK STOCKS

Enterprise,
a

Show for

WEST COAST SECURITIES

SAN FRANCISCO

STREET

(4)

♦>
Telephone
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—

—

EXbrook 2-8515

SF 61, SF 62 & SF 621

lation of tariff is government con¬
trol. It is the same bureaucratic

invasion of the business of Amer¬

ica

that you denounced immedi¬
ately after the war. But the tariff
is not the only form of trade re¬

striction.
riers to
are

the

learned

Trade restriction, bar¬
trade, which, my friends
antithesis of policies I
in

this

found in many

Association, are
other fields. This

Association condemns subsidies to

business, and yet this Association
has not condemned the "Buy

WALTER C. GOREY CO.
Russ

Building, San Francisco 4

YUkon 6-2332

•

Teletype SF 573

said

determi-

•.>T

Well, I say to you, the manipu¬

MONTGOMERY

he

a

Dealejs in Industrial & Public Utility-

%l '

de¬

the Pres¬

me

somebody should make

gov¬

my

Mer¬

our:

when

was

a

at

You."

155

upon

in

man

must have

fense, but it

it.

And the fifty-fifty.

get* the

insisted

delivering it. I know in our house,
we let
the Salvation Army come
and get it at the" back door. ?
i

be

a

ships

merchandise.

and

basis

on

commonly assumed :that

shipping

of

properly so,
the balancing of that budget, is it
right that the purchasing policy of
ducted

Marshall

the world, but a great portion
of it went
to benefit American

national budget, and with the Na¬
tional Association of Manufactur¬
ers

the

on

of

the

in

spent

were

can

"Take Off Controls, Let the

bil¬

lion

men

Manufacturers

the close of the

J. S. Strauss & Co.

higher.

S45

Or

change the economic balance in
our country through the tariff ma¬
chinery without creating a disad¬
vantage that offsets the advantage.
Now, my friends, the National
Association

UNDERWRITERS and DISTRIBUTORS

those

States has Carried this to the point
where it has bought a piece of

they can levy an export tax on the
oil leaving their country and we
will pay the bill.

SECURITIES

support—

of

carried

tremendous market for the

a

goods of half of the men in this
room and you know it.
Venezuel¬
ans are not going to take it lying

not

Marshall

throughout any qther
where American goods

overseas

whether

There have been times when the

the

the

ex¬

them, any

50%

greatest

prosperity.

of

may

have in

be

policy

will"

I

or

element of government

It exists

our

and

going

"Buy American" policy in the

midst

throughout

program,

being

may

ing standard of living in the world.

will pay

OVER THE COUNTER

know,
Plan

into

came

hap¬

can levy an export tax on
the iron ore flowing from Venezu¬

DEALERS IN

American

of

which

you

to in¬

They

Direct Private Wires

In

transport

patter

As

and

assume we

fuel

plain.

to have the most rapidly ris¬

pens
San Francisco Stock Exchange

(Associate)

San

us

zuelan

Members

the

harm on the
States in connection with

the tariff

Let

Exchange

de¬

the State Depart¬
Belgium to reduce

compel
on

is

Holland,v France, and Ger¬
I'If it is right for us to impose

sutro er co.

Stock

will

platform

let me point out that this

coal

same

the

on

many.

American

residual

fuel oil from Venezuela cut off—in

behind

ernment

goods in American ships.

judgment,

The coal industry wants

may
into

New York Stock Exchange

the

cpal industry.
friends from the coal
here tonight.

Many of my
industry are

her tariff

1858

policy and has not con¬
fifty-fifty provision

on

up

the

of

spoke

ment

Since

Charles S. Garland

Hopkinson, Jr.

the

for

purchasing

I

to

demned

the

that a
tariff that cuts imports is a tariff
that cuts exports.
It is that sim¬

an

American"

for

pay

to you quite bluntly, it is

considered

my

after the mil¬

bought Polish coal instead of West
Virginia coal.

under¬

its export market
is cut off, because
the dol¬

that country cannot earn

ple.

They said, "okay, okay."
So then the American Congress
in
its
infinite
wisdom
limited

E.

factory is running four

a

because

to some country

I

We want the air bases,

want.

Julien H. Collins

world hears about it,

yet there is a direct relationship.

said, "There are two things

1945-46

finds itself up

company

a

cheese

in

47

always the danger from im¬

factory about that; no speeches are
made in Congress about that; and

blue

-

tariff, is a disad¬
part of the

a

how to mer¬

on

blue cheese imports,

own

and

dollars,

million

a

up

was

We

obviously

thinks of his

man

set

chandise

Now, I find that there is quite
bit of misunderstanding about

lem.

blue

1946

against foreign competition, it does
everything.
Its trade association

the United States.

President's Program

each

packaging

about

plant

Misunderstandings of the

Quite

"You are silly. You do

which

can

program.

know

We

world.

this

but

cheese, you never met the Ameri¬
housewife. We will help you."

problem of great urgency in the

a

nothing

cheese,

can

position

very

a

have

said, ^"we

1947 -48

ports is easy to see, and that from
the loss of the export market very
difficult to identify.

But if

We said,

consideration,
the thought that that is a moder¬
to

mission out.

Danes

but

Marshall

the

PRESIDENTS

vantage to some other
American economy.

and

bases,

starving and needed
a

PAST

find that what seems to be an
advantage for one segment of the
economy,
through the

cheese."

I submit for your

regard

of the islands

air

for

under

sent

nothing

ing that the tariff was exclusiveit was propsed that he would have
authority to reduce that tariff by
50% over the three-year period.

middle-of-the-road

was

and
we

The

not

IBA

so

American

And

some

use

Baltic

Denmark

ate,

my

We particularly

side.

on our

the

by^ the reduction of their barr
^help,
riers to our goods.
It was also
by

quite

All the way through the subject

blue imposition of

Confidential¬
I happen to be very fond of

..wanted to

set

with

Danish

After the war we needed Den¬

of reducing our barriers to
-in
the goods of others woud be off¬

was

Now it

it.

you

Danish blue cheese.

be

recommended

to

come

cheese, for example.

way

„

we

unreasonably.

of

think

I

when

possess,

examples

Many

authority

reciprocal. The United
States would get for what it gave,
and whatever came to pass in the
would

they

they think,

as

mind.

the

of

exercise

into the

happens

the power of re¬

economy, or

taliation

cessions by another.

there

about

like to

not

come

Californians are inordi¬
nately fond of shipping citrus fruit
does not realize the power into
Canada,
but Canada said,
other nations possess to limit "Okay, no oats, no citrus fruit."

man

Into the second; and that authority
would be exercised through mul¬

do"

"to

a

Thursday, December 16,1954

.

Number 53861

Volume 180

.

The Commercial and Financial Chronicle

.

(2551)
nation
rine

what Merchant

to

as

require for

we

Ma-

security

our

other interesting little gimmick I

can't get

that cost should

rectly.

It

should

paid di-

right

be

b'ackboard

the

be

on

up

that

so

every

American taxpayer can know how
much of his taxes go to that cost,
Now

I

not altogether

am

alone
that is borne out

this'position-

in

by the fact that

friends in the

my

coal

industry who have sought
protection denounce this form of
protection. They are against fiftyfifty shipping because it reduces
the
outward
shipments of coal.
Doesn't

the

it

line

somewhere

seem

that

have

we

along
find

to

a

the

Secret&rjT of Sfhte

•'
to business meetings,
>

and

have heard

I

from.

away

distinguished

minds all discussions

bfe^bility

say, and I

When I go
lieVe it deeply, that we in the
when I get invited in spite of United States cannot take the risk
everything, they call me off in the of having Japan's heavy industry,
corner and say, "that's all very her steel,
her shipbuilding, and
well, Clarence, but what are you her munitions, joined to that of

going to do about dumping?"

the Satellite countries.

Now "dumping" means unfair
competition. It means that a foreig? government pays part of the.
® a pr°duct in order To have
enter our markets,, and it is un-.

*air> and ^

friends,

economic

And,

necessity

inations?
.

^

,

f

the

Extraordinary

Special

There
this

of

certain special phases

are

that

program

dinary.

extraor-

are

Take the question of the

agricultural surpluses. 'I think
have walked out
time.

that for

on

we

long

a

We in

industry spend a vast
studying our conand I say to you, there

amount of time

trol

is

costs

no

in this room

man

controllable

cost

his tax

cost in

unseen

who has

great

as

a

the

as

bill caused

by the agricultural surpluses, and
something has got to be done about
it.
T,

rt.

.

+

.

because

-f16 ex+u

we

didn't

aid, and

that very

see
,

.,

prosperity

to-the agricultural implement com-

Some of

you here tonight
they had that prosperity
It was transferred to; the
companies Horn the imple-

panies

wish that
back.
steel

ment companies.

buying

Pie*?ru

The farmer

tractor

every

e4j1?m?u

was

and

rJ?u

o

heard

the

to

money

European

tions with which to buy our

cultural

products and that

-na¬

agri¬

money

flowed back to industry, the same

industry that demanded that aid

California

P

will

is

said

You

that

get

dilemma.

ourselves

days.

If

lutve

to

the

should

you

can't

We

were

want it

we

find

from

away

prosperity in

stop

giving
those

T

we

alternative.

happen to the busi¬
_

had

that

12%

buys products.

....

lent of
t at

Let

tant

aT^ opposed to dump-

to

interests

the

ladies

We

the

protect.

and

We

We

con¬

We

vestment

God

bless

management

firm,
is
celebrating the 30th Anniversary
of its founding

got

by Charles F.

Eaton, Jr., its
President, and

group in the United States
thinking about the consumer.

the

late

G.

tariffs

our

to

standard

protect

of

the

t i

living, but

John

Howard.

The
rajse

American

and in

£atellite countries; and, we
should all accept the judgment of

organiza-

o n

was

a

pioneer in
inve

tment

s

counsel and in

the

develop¬

ment

of

mu¬

saying

are

our military advisors that the time

4

ask

do

then what

you

about

one

or

two

you

For centuries there has been

other

specjai situations.
Take. Japan.

I

for

ment

country to
market,
who are enj

our

qUarters of the

in this

men

the West,

room

bave been disturbed at the publicati0n
of
the Japanese
list re-

East.

as-

sociations represented here tonight
bave their men on the track.
»pbe

situatiorvlln

Japan

is

products

of

mine

me on

u •

".g

behind

me

times,

as

but if

we

I

wm

in

a

we

differ

so

this suhiert

we

I say

of

management

provides in-

stronelv

The head
vi

morons

have been vigorous These two Funds

on

this

have

platform at
been speaking,

29,000

over

and

can't stand up and take

aren't the

think

one

country's

ual and institutional^clients, as
well as to the two mutual mvestSw
j?n<xj which bear its name,
? Howard Balanced Fund
Ea°n&HoJard Stdck Fund'

nlace

are owned by
individuals, trustees

institutions

state

it, and slug it out in honest debate,

and

investment

be

manv

Sin Jmusthave^ been
?

a

forest went West, and the West
sent East its manufactured prod-

...

cently, and I bet all the trade

with

whom

of

some

materials lay in the

raw

The

leading
j

be

the

TThniTnnt'hpI^mcv ve!?tment management to individ-

Sve ?o

I

to

Chas. F. Eaton, Jr.

and counsel firms. It

minutes

funds,

and has grown

free

to come tonight

me

where

pattern of trade and'it used to go
like this: Industry developed in

three-

suppose

few

a

through here

is the peaceful trade between the
countries of Western Europe and
fast*™
rt,mn0
Eastern Europe,

and French equivaprofanity.
■ ;

tual .invest¬

Well, there it is.
jn

andL

a

located

number

in

of

every

foreign

countries. Assets of the two Funds

organization that I

have

are.

increased

years

to you in closing that the

from

in

the

$53,000,000

last

five

to

over

$170,000,000.

ucts.
At the close of the war, possess-

ing

des-

great

power

the West,
trade with the

we

j h^tatp to gneak thig way with
General MacArtHur here, the man
in the United Slates who knows

East." They said, "very good. How
sh°ukl we live?'' We said, "Be at

trading markets

ease» we will take care of that—

underwriters

about ,thig

most

doubt
with

more

we will send a check." Every year
strongly we send a check and pick up the

problem,

will

he

if

said, "No

over

perate, just desperate.

differ

but

I

balance. Came

what I have to say.

from

a cry

a

distributors

busi-

milf^ ^stop "° wfsenYa'cheek

live PJaprnaeLiiweLsC0be0enycut

brokers

said, '.'By the way, this is the

The^wntry: had been carried s^\r^e Vve^" ^W^said ^TVe^are

off

i

by the .Korean|War, and thank
th'at now
God, the KorearC War is over, but <
"
Une,
^
fj
•„
We are taking the next plane to
Japan has got
find a way to
Washington, but you can't come
' '-J
»
into our markets and you can't

^eus

She

hasnt

natural

resources;

BRUSH, SLOCUMB & CO. INC.

into eastern markets.
Find
yourself business in the world, as
go

sho can't raisetenough food to live,

has nothing but the

energy

long

as

skhl of her people, and she

ket§

0r

export.

But

we

won

t

British Commonwealth

won

t

don't enter

you

1 MONTGOMERY STREET

*

let

,Ro
So,

those of the East."
invited
invited

wp

we

these
these

stantial

reduction

in

SAN FRANCtSCO

member r

^tasnittA TiitTYff sf70

San Francisco

countries

e

GOIDMAN. IACHS A CO.

of Western Europe to take a sub¬

let

•

our mar-

their

DfMUSIY-TIGtlfl A CO.

Stock

stand¬

other
the

of

that's

•

to buy

way

products.

to

her enter its markets, and we de- ard of living for the priceless
niand she does not enter her tra- privilege of fighting on our side
certainly ditional markets in eastern Asia, in the cause of freedom—and it

people

their

leadershin

the

—

are Association

North

in

her enter our ^markets, and the

But industry that

the

let

earn

farmer's

of

We
great

a

women forever and their organizations, who today are the only ord
crL^„
ganized

East.West Trade

About East-West trade there

cd:r.us fruif-

Italy and

in

our
me

wouid

™ust

that the farmer

nieds that farmer market is hesilands

,

same angry things that is not right for trade with Red
fellows say about dumping China.
,
,
the products against you in the
What I am talking about instead

to

gdther at this meeting
isifrom

great privilege and

a

up.

not one from buyers, except from

you

get to-"*She
because it and

work

Urdted

,

represented in this room if
the farmer was cutback 12%? We
have hard

the

group in America that

,

JJdlzing ke 9x^dr!:

nesses

would

in

light,

one

forgotten—and

*

What would

we

'

stopped,

some

that

responsibility

whirV.

tations from people who sell, and

Closely allied to that is the subject of East-West trade,
dumpNow you see, after you have

Japan needs at least $600

Industry

have

e ^en there recently two things to eliminate:
die concept of the
and 1 know 1°?*™ opposed to it.
No sober-minded^person would and to the people
How do you feel, then, about subant strategic goods to move to titled to a hearing,

ln%

stop.
aid.

way

.

every

of. Who paid for them. The American taxpayer, because we gave

a

*

.

transferred

was

in

with

ideas

new

States only dimly apprehend

tural surplusd^abroad at the world little over a year, I will talk about • for the life of me, I have never
parket price,'say for wheat, which anything, anywhere. I will even been able to see how it raises a
1S below the ^support price, you nation it by name. J will .talk man>s standard of living to make
ar® dumj?mg*
a"
anybody him pay more for the things he
J1
Californians to investigate me for mentioning buys.
manufacturers out loud the word 'RussiaWe are dedicated here in this

..

the

prosperity the
had shortly after the war.

farmer

That

-

,,

remember

o

industry
clearly. You
in

we

to

throbbing
with

—

bought it, with our Dutch, Italian

_

taxes for

permitted

is

surging

1N0W>ln aU thls and; little which must and will of leadership.
discussi0n.
responsibility measure
heat

X+ exactly the

ri?intairn.hls pres®ni

be

in all this discussion

there is

lnS which we don t like when it is been in government as long as I
against us. Ifr you ship agricul-- have, and I am a veteran of a

Africa and in Holland

,

?-me^.m

•

+

a«

the

a

The people

1

«

are

to

generates

my

dump, and
little-surprised that the

other,nations don't like the

is

world

Anniversary

^taje:sag cuuurai surpluses, mey
are proposr.ng we should do
w
we

Phases of

the Program

entire

vitality

up

its way.

Now

right to demand strict laws against cient reduction in their trade bar"m+0inav,
1s
ys
gl,ye JaPa," what the econui°st of the people of the United omists call a viable economy.,
we

world

earn

A^,e.rjca" buwnessman is quite standing, jointly, to pake suffi-

advocating that

faced

Eaton & Howard
drive Japan to that course, unless sumer.
There is no national
she has a way to live
.
organiza^hat way to live, it seems to me, tiort representing the people that
30th
would be for all nations of the bUy. The Commission on Foreign
BOSTON, Mass.
Eaton &
the free world, m a spirit of under- Economic Policy got 650 presen- Howard, Incorporated, Boston in-

wrong> .and

are

.

.

of converti-

have

we

squarely to the question of whether

,

principle that can be applied to all
industry without making discrim-

until

99

Exchange

^

aren't

going

give

to

products forever.

t°

have

you

,n/1,r.
r..
to let somebody buy them, it

The

seem*-^

me-

In

What should Japan do and what makes no sense/I for one
are the conse(luencesthat we should encourage

those

away

Then

driven

y

that

connection, there is

consequences

great
to

risK

are,

we

peaceful trade from the West to the East

run

of

Japan being
join the other Satellite

order that

think, they

we

'anyway,
/much

!!

pMWH^HTSWVICE >j

y-yy/y/.v776'7.

f

f

.

.

I

«WJIRIBUTORSI

wmmM
f

/

^

are

because

going to do it
they have too

to sit still and

sense

j when there is

Underwriters and Distributors of|

starve

*

i.

big market to the

a

:

East.
'%
-

Now

-

eventually all of these

State, Municipal and

con¬

take you to the most
question of convertibility.
Convertibility means the right

of
v////y/ssyyys}*-v&v//sys/^

the

move

Mmkipai Bonds

citizens

of

one

Corporate

3

Securities

moot

Wm

^

may

siderations

„Af

Corpor

allies

our

strong.
And I may say, it
doesn't-make any difference what
come

H

countries.

an-

believe

country to

their capital or earnings to

another country.
I hear people say,

"Why don't
they get ahead with convertibility
so

we

can

get

Would it
''

; New York Stock

Exchange

Midwest Stock

♦

,

-

Exchange

'

Mtrefbm

■

-v

Exttiaflge

San Fretfi<i{»CO

•

and other

Ameri«Mt-$*eck Exchange

•

of
»

•

Los Angeles $f«»ck Exchange

Chicago BoarTrade

leading security and commodity exchanges
"-m:

san

francisco
boston

more

were

Convertibility

•

•

los angeles

seattle

•

•

new york

portland

•

and OTHER PACIFIC COAST CITIES




•

chicago

honolulu

distortion

omy.

There

in

export trade?"

that simple.

follows
the

must

be

Kaiser &

removal

world
an

econ¬

inflow

MEMBERS

balancing the"outflow.
There must be

•AN

actual adjust¬
ment in the trade situation before
Chancellor
any

other

we can

of

Britain

charged

policy of his nation
convertibility.
I say

STOCK

EXCHANGE

LOS

ANGELES

STOCK

can

with

15D0

Teletype SF

undertake

dismiss from

Russ Building

•

San Francisco

or

the

our

-

172 & 173

5]

EXCHANSI

an

Butler
man

FRANCISCO

100

The Commercial and Financial Chronicle

(2552)

endowment

LETTER TO EDITOR:

with

Too Much

"Globaloney"

A. Potter writes "Chronicle" "there

be

can

no

those of the
open-sesame

Peace,"

To

last

wealth

while

by white men who welded
those lands into a single nation
under a Constitution which pro¬

wealth

hibits any

exploited by

is

white "bird-

m e

Alden

have

not

without

developed,

the

United

eco¬

dis-United

currencies

-Constitution, which eliminated the
bound

them

indivisible,

with

into

nation,

one

and

are

this

no

walled-in

lonial "isolationism"

impossible just
them

to

as our

"freedom"
for

like

Our

Jay N. Whippto

John S. Fleak

1939 -40 -41

1938 -39

while the

World
life

abundant

an

from

all

for

want

peoples of all nations seem to be
made with

consideration of ag¬

no

produqfcf6n

ricultural

or popula¬
The universe may
be expanding, but this world is
not, and already many parts of the
world cannot support the existing
population at much more than a
tion

pressure.

subsistence level.

It is the dif¬

...

ferential

population growth and
in various parts of the
that present difficult prob¬

r

1937

-

38

density
world

in

lems

unity
and

establishing global

essential

so

world

to

peace

security."
ALDEN POTTER
Box 181, R. F. D. 3

Bethesda

Md.

14,

Nov. 28,

1954.

state

is

of

co¬

and

"all

being de¬

in

to

are

Management Corp.

Acquires Mac Galium
MT. VERNON, N. Y.—Owner¬
ship of Mac Callum & Company,

investment

oldest

name

to

of

creating

socialistic

a

nor

States

could

it

is

Bank
has

stocks,

F. E.

Frothingham

New Orleans sales department ot

Ladd Dinkins Forms

Scharff Sc Jones. Inc.

a

been

acquired
Federated

by

Management

Nations

Corporation,

"tran¬
"Age of
a

no

Jean C. Witter

Chester

County

inve stment

dealers
W

o

o

t

s

of

e r

,

Massachusetts
Mac Callum &

United

The

dise;

Emmett F. Connely

Mount

Vernon, and specialists in West-

is needed.

"freed,"

in

firm

Plenty" where only a communistic
or "spiritual," welfare government

Indian.

be

the

sition"

"self-govern¬

the American

the "United"

ment under

peoples," meaning

Indians

Fed.

is not designed to Adam
Smith's specifications but rather
to provide the folly of disarma¬

apparently all who don't speak
English or Russian and are indige¬
nous

of

freedom

ergy Act

liberately fostered on a global
by the dis-United Nations as
the nidus of our "foreign policy"
ment"

John Clifford Foiger

in

writing

raging:

was

"Promises

forefathers

be,

Harry Dexter
White and Lord Keynes and their
Bretton Woods Agreement to the
saw

scale

of

1941-42

-

"sur¬

dump

(or rather the second)

and

remain

must

insurmount¬
able wall of "inconvertibility" be¬
tween
currencies
controlled
by contrary notwithstanding.
«ach
There
can
be
no
"atoms
for
self-governing state sepa¬
peace" as long as our Atomic En¬
rately.
Yet

45

1942 -43

-

Na¬

"agencies" to promote global wel¬
fare, free trade and convertible

howStates

separate sovereignties or colonies
and

in horse-and-

continental
a

44

PRESIDENTS

tions with its flock of alphabetical

how"

ever,

was

for

Under

nomics.

A. Poitwr

it

as

1943

PAST

"

principle in one-world

a

days

buggy

rican

eould

valid

economics

who

"know how."
A

as

to

Harvard

Obviously, that state of affairs

is, by the

"know

independent currencies

within its jurisdiction.

foreigners,

flogs"

to¬

nized

ing loudly
against having

that

race

a

as

day than they ever were or could
be had their lands not been colo¬

even

protest-

their

numerous

more

IBA

in the words of Dr.

of

Sax

War

only as wards of our
Chronicle:
government. They can now become
The "Chronicle's" able editorial prosperous citizens only if the un¬
•on.
the
relation
of
"atoms
for productive reservations onto which
peace" to our foreign policy re¬ they were driven and then ac¬
veals the "globaloney" involved— corded "rights" happen to develop
what were unseen mineral or fos¬
the "obviously
sil (oil and gas) reserves.
1 f.
vain hopes" of
Nevertheless, these formerly iso¬
"underdogs" \
lated and "free," warring tribes
that they can
are

which

the "Scientific Monthly"

however,

exploit foreign

of

lack

no

"Chronicle," to be an
to Utopia via "foreign

put it

Karl

as

Editor, Commercial and Financial

in

trade"

the Atomic Energy Act is not designed
specification, but rather to the disarmament

long

as

Adam Smith's

Y///Y/////YW/////Y///////////////////////////////////////sssssssssfsjsWMWJW»W;;MWWSJSMMW;m

pluses."

"Atoms

under the United Nations.

for
to

and

free-trade

alone

stood

Thursday, December 16, 1954

earth blessed

an

convertibility such as is alleged
by virtually all editorials, except

On "Atoms for Peace"
Alden

lands

of

the surface of

as

...

para¬

Company will

be if its rich

continue

Own

rirm

NEW

in

New Orleans

ORLEANS, La.

—

L

a

d d

Dinkins has announced the forma¬

Cady, Roberts & Co.

tion of Ladd Dinkins &

To Admit J. N.

with offices in the

Company

Hopkinsoni

Cady, Roberts & Co., 488 Madi¬
Avenue,
New
York
Cityr

Whitney Bank

son

Building to conduct

general in-

a

investment

securities

Mh Dinkins

was

business.

formerly in the

of the New York

members

Stock.

will admit
John N. Hopkinson to partnership.
Exchange

Jan.

on

1

op¬

erations in the

First National
James

A.

Bank

Building

offices
'

Croweff.Weecfon

"N

occupied
James

& Co.

Mtmbers Los Angilas Stock Exchange

tion,

PRIVATE

PLACEMENTS

will

LOS ANGELES 14

•

•

TRinity 0281

TELETYPE LA 38

Pasftden#'

*

-

Long Bead*

•

v?

Mr.

associated

with

Coburn

ganization.

Investment Securities

&

that investment
He is Treasurer

of

BATEMAN, EICHLER & CO.

formerly

Lennon

Middlebrook, Inc., of Hartford,
Conn., as a registered representa¬
tive and subsequently as a branch
manager

650 S. SPRING ST.

has

it

20 years.

Lennon, President of
Management Corpora¬
direct Mac Callum &

Company.

DISTRiBUTOfl

•

than

A.

Federated

was

MN0€*W*IT«t

more

453

•

Laguoa Beach

of

"fully managed' 'type mutual in¬
vestment company whose invest¬
ments are primarily securities of
New England companies.
Callum

13

or¬

Pasadena

Federated Fund of New England,

Mac

ANGELES

LOS

a

San Diego-

STREET

SPRING

SOUTH

23

MEMBER

NORTH

GARFIELD

ANGELES

LOS

AVE.

EXCHANGE

STOCK

&

Company will
continue the policy of personal in¬
vestment

service

which

started in 1930 by Ralph T.

was

Tyner,

Jr. and Kemper F. Peabody under
the business name of Peabody,

HOW TO PUT

Tyner & Co., Inc.
In 1950 Mr.
Tyner left the securities field to
,

JONES & TEMPIETON
Established

President

of

-

the

Company,

1920

Mr.

DISTRIBUTORS

BROKERS

Peabody retired to supervise

Mac
Los

Angeles

MAdison 2621

San Francisco
405

the

Montgomery St.

DOuglas 2-2220

IN YOUR STOCK PORTFOLIO

his Vermont dairy interests.
The
firm became known as Mac Cal¬
lum & Company at that time, un¬
der the direction of the late

650 S. Spring Sit,

'LIFE*

New

now

National Bank of Westchester and

r

UNDERWRITERS

become

Rochelle Trust

By Ira U. Cobleigh
Author of

Harry

Callum, Jr.

Mr. Lennon has announced that
Miss Eve L. Wray who has been
associated with Mac Callum &

"How to Make
and

Company and its predecessor since
1934, has become General Man¬

(Includes Tax)

Two With
(Special

ST.




"Expanding Your Income"

Angeles Stock Exchange

Direct wire to. Now York and San Franca
H'CO

Killing in Wall Street"

PRICE $1.00 PER COPY

ager.

Member Los

a

and

been

Smith,

La

Building,

Smith, La Hoe

The Financial

PAUL,

Nelson
have

to

Edmund

added

Hue

to

&

MORGAN & CO.

Chronicle)

Minn.—Willard
A.
the

Co.,

T.

Members Los Angeles Stock Exchange

Zuelke
staff of

Pioneer

634 So. Spring St., Los
BEVERLY HILLS

•

Angeles 14, Michigan 6421

LONG BEACH

•

CORONA DEL MAR

Volume 180

Number 5386

The Commercial and

...

Financial Chronicle

The time has

come and passed
tion last month. He is like"agonizing reapprais- wise not much moved by the
al"—not only for those areas pleas of those who would cut
about which the Secretary of taxes while a deficit continues

Continued from first page

Pliiia. Sees. Ass'n

for that

We
See

As
will

No Government

present themselves, and

which will give the President,
Congress and both political
parties quite adequate oppor¬
tunities

plainly
national

one

in

rich

so

not even

—

resources

as

socialistic

the

or

—

has now
Eisenhower

the

when

had expected

Administration
have

issues

sound fiscal

a

time

The

policy.

these

of

One

will be that of

will be able to exert enough L bfennominate/to^President
influence in the next Con- of the Philadelphia Securities Asgress to push the good work sociation. Mr.
of the Eisenhower Adminis- ^Jeed James
tration further even if he t. Gies of
must do it against the opposi- Smith, Barney
tion of time servers in both & J? °' W th°
his and the Republican party. 0ffice°on Sept

semi-socialistic

else

—or

succeeded

in

post-

balanced

It has

a

no

nominated

such

v

v

course, a

when

basic

national

can

sound fis¬ uals in this country who seem is
usually termed "world poli¬
to suppose that we can buy tics." In an ideal world this

only exist

elements

scene

aspects of what

are

in

in

the

order.

friends all around the world,

and not go

would

not

the

be

broke in doing so. haps, but the fact is that they
are inseparable on this mun¬
dane sphere at present. One

Serving Southern California since 1927

Investment Securities

result

this

of

•

Co. for Secretary.

The

ANGELES

AMERICAN

Direct

Claremont

•

Private

STOCK

STOCK

EXCHANGE

Wire—Kidder,

Pasadena

•

(ASSOCIATE)

Peabody

Redlands

•

&

Co.,

of

board

governors

to

Franklin Lw
Ford, Jr. of E. W. Clark & CfVy
Orrin V. Boop of Schmidt,

serve

for three years:

Roberts

Ellwocd

and

Parke

&

Williams
of the
Pennsylvania
Company for Banking and Trusts*
The annual meeting and ekc-

tion of the association will be held
on Friday, Jan. 14, 1955.

an-

1

a

Smith, Hague, Noble f®
Admit Mark L. Nolan
&

Noble

Smith,

Mich

DETROIT,
Ha

Co>

Penobscot

partnership.

to

Co.^GTegoxT^^!

Inc^Mc-

Mr. Nolan has been with the

firm

for some time.

Master Hutchinson & Co.

inter-relation¬

Nolan

L

Mark

DISTRIBUTORS
of

SECURITIES

INVESTMENT

Bixgiiam .Walter s Hurry. Inc.

atten¬

Member Los Angeles

&

Stock Exchange

seems

of

sort.

a

to

621

assure

S.

SPRING-los angeles

It would

that this subject could
again be merely
pushed off into the future in
order to avoid politically

-

TRinity 1041

224

LA

TELETYPE

appear

New

Santa Monica

the

for

nominated

were

any

month

attention

EXCHANGE

following

of the Congress to convene

next

MEMBERS:

LOS

Wood &

of Wright,

III,

Wright,

/>Ant

wi

v-i

&

tion, and the political make¬
up

TELETYPE: LA 68—LA 35

v-\ wi

question of
removing trade barriers at
once raises a host of questions
concerning broad world
strategy. But be that as it
may, the problem still cries
ship is that

aloud for constructive

626 S. SPRING ST., LOS ANGELES 14

TRinity 5761

per-

case,

P.

Treasurer and

,
_<■
4nnl-i
nf a/4
4/%
Building, members of the ™—
New
equipment estimated to cost $5,York
and
Detroit
Stock
Ex780,404.
Associated with Halsey, Stuart changes on January 1 will admit
& Co. Inc. in the offering are:
nrtiii

various other

situation

mail

Daffrett

ThaYer-Spencer D.¬
Bak r &

cfiZ'

•

aiicnuuii

E.

Lewis

Vice-President;

f°r

^

^

^

Robert

M. Brooke, Jr. of Brooke & Co..

Equip. Tr. Ctfs.

But, of

,

^

Francis

were:

Halsey, Stuart Group

cal

P

.

TT

„

^

„

budget.
takes to enter into internaprogram will fare. The fact is
thing, and ap¬ ducing goods no one wants tional trade
anywhere in the though that all these matters
parently has given up hope of enough to buy at prices which world will soon find that he
are much more important to
cover cost of production and a
having one in the fiscal year
must
contend
with
tariffs, the rank and file than the
reasonable profit to the
■ending June 30, 1956. It has
quotas, exchange restrictions gains or losses of either of the
on the whole done rather well
producer.
and various
other barriers
political parties,
in reducing expenditures, but
L a v i s h expenditures on
everywhere. This, of course, is
a
good deal more needs to be something known as "social not a wholesome
situation,
done. It has taken some badly insurance"
still go on and
and, incidentally, it is not one
needed steps in the matter of even greater o u 11 a y s are
which can be very success¬
revising and renovating our planned in the years to come.
Offers
fully cured by nibbling tactics
national
tax
The most recent additions to
structure, but
such as those employed in
Halsey, Stuart & Co. Inc. and
•distressed politicians suc¬ this burden were sponsored
reciprocal trade negotiations.
c0rL?ec'
2
ts
ceeded in tacking on a few by the Eisenhower Adminis¬
575,000 of Missouri Pacific KR.
The subject requires and must
unfortunate
provisions here tration, but, of course, had have more serious nttentinn fn2s YY ?78?0 serial equipment
trust
certifiratps
inner
trust
certificates, maturing an¬
^and there, and if the truth be full support from the Demo¬
and more vigorous action if nually Jan. 1, 1956 to 1970 inclu¬
told
a
great deal more is cratic party. We are still we and the world are to move sive. The "certificates were offered
urgently needed to remove pouring out billions in "for¬ forward in the e c o n o m i c at prices scaled to yield from
1.65%
to
3.00%,
according
to
the creeping socialism which eign aid." A good deal of this
maturity.
sphere.
the New Deal and the Fair is "military assistance." It is
Issuance
of the
certificates is
Deal embedded in our tax virtually impossible, often, to
subject to the authorization of the
All Inter-Related
Interstate Commerce Commission.
structure.
tell from published data pre¬
The issue is to be secured by
All this is almost of necescisely what a good deal of it
sity closely intertwined with new,> standard-gauge railroad
That Fiscal Situation
all is. There are still individ¬
to

Pa. —Robert

to exist. We can only hope he

bil¬
the issue for some
lions annually, or it insists poning
more convenient season which
The President has iust re- 29, 1954, folupon appeasing elements in
the population by huge grants may or may not ever arrive. caned Mr. Dodge to his side ' °X'hn1
Trade restrictions
of many to
of the peoples money, grants
help in doing something Raymond E.
sorts, tariff and other, are by constructive in our foreign Groff because
which, whether so designed
no, means
confined to I his financial programs. .There is of illness,
or not,-serve
chiefly to keep
country. He who today under- little to indicate how the farm '' p \ h e r
men and women at work
pro¬

if that is thought
best by the professional poli¬

ticians.

or

schemes which cost many

Receives 1955 Slate
PHILADELPHIA,

parts of the globe.

The Republican
party in
Congress has again and again
can
develop a really sound
and again either refused to
to "make a record" financial position so long as it
budge on questions of more
in accord with real is committed to all sorts of freedom in international trade

interests

'

State spoke, but all the other

States—

United

the

of

that

contrary,

come

It

101

(2553)

•

Yerk

San Diego

well

not

623 Security
I

Pilsadena:

SYcarnore 3-4196

Bldg.
"

risky action.
These

of

are

course

some,

not

which

tions

all,
will

although
the ques¬
face

the

Underwriters and Distributors

country and the Congress and
the Administration next year

INVESTMENT SECURITIES

and

The

doubtless

the

next.

and

the

leaders of

President

both

COMPREHENSIVE COVERAGE OF
SOUTHERN

parties in Congress have

PRIMARY AND SECONDARY

given evidence of a full
awareness

FEWEL 6- CO.
Member Los Angeles

of them. There are

DISTRIBUTION

who would
rush recklessly into a policy
of astronomical expenditure
to
cure
a
depression which
those,

does
never

Stock Exchange

of

not

course,

exist

and

Lester, Ryons &

453

SO.

ANGELES

Beverly Hills

•




SPRING

which

New York Stork

really threatened. For¬
Congress also has

Long Beach
North

•

TRinity 4191
San Diego

Hollywood

623

Byrds who have real faith
prudence and
commonsense even as applied
to Federal expenditures. The

Arcadia

position of the senior Senator
Virginia has been great-,

from

ly strengthened by the

New

Hollywood
Santa
a

(j L

dec- jl

Angeles Stock Exchange

SOUTH HOPE STREET*

Telephone MAdison

in old-fashioned

(I

American Stock Exchange

Exchange
Los

its

STREET

13, CALIF.

Co.

Members

tunately
LOS

THE

CALIFORNIA MARKET FOR

'

5-7111

York

(Assoc:*

^

COS ANGELES 17

Bell

System

Teletype LA

17

Correspondent: Bache & Co.
Glendale

Long Beach
Ana
Claremont

Santa Monica

Redlands

Pasadena
Riverside
Corona del Mar

102

The Commercial and Financial Chronicle

(2554)

Continued

IBA
1936

-

PRESIDENTS

PAST

Orrin G.Wood

Edward B. Hall

Completed
10

by Allen & Co., New York, and
of
700,000 shares of
capital stock (par $1) of Texam
associates

Oil & Gas

Co.

at

$5.25

per

share

quickly oversubscribed.

Net proceeds from
the stock

will

the

sale

of

be

applied toward
the repayment of bank loans, for

such corporate purposes as further

drilling and developing of the
company's properties, and for the
possible acquisition of additional
oil and gas leases.
Texam Oil & Gas Co. is engaged
in the business of acquiring by

purchase, lease
or

leasehold interests, for the pur¬

of prospecting for and pro¬
ducing oil, gas or other minerals.

pose

As of Nov. 10, 1954, the company
owned all

interest

or

in

part of the working
producing leases

46

in

interest

John P. Lins to Be

Partner in

otherwise lands

or

Bovenizer

presently has work¬
112 producing oil
wells and six producing gas wells
and is selling and will continue to
ment's contracyclical operations as egy are implicit in Dr. Burns' sec¬
sell its production of crude oil at
ond premise.
posted field prices, generally to part of its "economic program,"
these governmental activities are
major oil pipeline companies. For
The Third Premise
"economic" only in the sense that
the month of September, 1954, the
"The third premise of our policy
average price received for crude they employ economic instruments
oil produced from properties now and intervene in the course of eco¬ is that the government must con¬
Actually, all the duct its affairs so as to inspire
owned by the company was $2.68 nomic events.
powers of the
Federal Govern¬ favorable expectations concerning
per barrel. Production from four
ment are essentially political in the future on the part of people
gas wells in which the company
nature, resting ultimately upon the generally." (50)
has an interest is sold to Tennes¬
coercive power of the armed force
Students of military theory will
see Gas Transmission Company.
assigned to that government by have no difficulty in indentifying
the Constitution. That is to say, this fragment of the Administra¬
governmental operations in the
3 "The
offensive is accepted by the
economic as in any other field
military
student
as
the
al,-importa.it
constitute the government's exer¬
ing

The public offering on Dec.

Was

W.

Goodbody

cise of its powers of coercion

New

New
Jan.

York

City, members of the
Stock

York
1

admit

will

Exchange,
John

P.

on

Lins,

member of the Exchange, to part¬

Texas, with most of the

partner in Foster Bros., Weber &

in the

western

part of the

state.

Mr. Lins

formerly

nership.

was

a

and

compulsion

Goodbody & Co., 115 Broadway,

Covering 11,319 gross acres,all in
acreage

Acceptable Contracyclical Policy

an

currents," is pictured as being to the highest standards of tradi¬
able to purchase a precarious sur¬ tional war planning 3 '
As every student of war strat¬
vival only through continual de¬
livery of "stable prosperity." In egy knows, the principle of offen¬
this critical situation, the govern¬ sive action belongs to a large fam¬
ment's role is that of defending ily of
principles governing the
the private economy against cy¬ strategic handling of coercive
clical forces which would cut off power. Besides the offensive, that
the regular deliveries of "stable family includes the principles of
prosperity." Thus the government concentration of force, economy
is cast in a fighting role. More¬ of force, mobility, surprise, secu¬
over, no limitations of this defen¬ rity,
and cooperation.
It is, of
sive
commitment are mentioned course, possible that the Admin¬
in the premise. All the powers of istration has dipped into that large
the Federal Government are pre¬ family
and extracted only tne
sumably
committed
to
its
big principle of offensive action. But
brother role.
such frugality in the utilization of
be
The kind of big stick carried by our store of knowledge can
this big brother is usually not de¬ dismissed as too improbable, es¬
since adherence to the
scribed in detail by advocates of pecially
the current fashion in contracyc¬ remaining six principles is usually
a necessary condition for the suc¬
lical policy. Although it is cus¬
cessful exploitation of offensive
tomary to speak of the taxingaction.
Therefore, I deduce that
borrowing, spending, and monetary
activities involved in the govern¬ all of the principles of war strat¬

The company

Texam Oil & Gas Co.

Slock Offer

G.

10

page

Toward
1934

1935-36

37

jrom

and

property of individuals and social
It is precisely that back¬
ing of coercive power that dis¬
tinguishes governmental from pri¬
vate enterprise in
economic af¬
fairs.2 Therefore, the big brother
groups.

of

the

private

able

to

such

Co. of Toledo.

lives

the

over

crack

violent

lot

of

will

be
heads, if

becomes

nec¬

the conduct of his

in

essary

economy
a

con¬

tracyclical

action

warfare.

16, 1954

Thursday, December

...

principle.

creates

a

and

troops

reaction

the

ative

linal

and

v.c-

civilians alike, and a reverse
the citizenry and army
Only by seizing the initi¬

among

can

all

no

be

can

enemy.

the

commander

out

carry

a

and insure the cooperation
available forces, human and ma¬

definite
of

it,

gained.
It se¬
initiative, facilitates surprise,
favorable reaction
among
the

the

cures

of

Without

decision

torious

plan

terial, toward the attainment of his end.
Complete
loss
of the initiative,
and the resort to a passive defense can
.

.

.

the av^idan^e
of defeat." Herman Bcukema, "Strategy",
The Encyclopedia A:nericana,
1947 Edi¬
hope

for

no

tion,

vol.

25,

pp.

than

more

grand strategy as the third ',
von
Clausewitz's famous

tion's
of

Karl

principal objects in carry¬

"three

ing on war," namely "To gain
public opinion."4 In the govern¬
ment's

against the forces of
business instability, Dr.

war

cyclical

busi¬
rational

and

investors,

consumers,

that
convince

means

the Administration must

that it would be

nessmen

the big brother

for them to bet on

Failure to attain this-ob¬

to win.

jective of strategy could meani the
loss of cyclical battles and perhaps
the whole war.
If,, for example,
"people generally' became Convinced that a severe depression
coming soon

was

in spite of the
<t

cash under the mattress,
thereby giving aid and comfort to
the forces of business depression.

;

spare

Here

again, it is not to be sup¬
t ha t the

posed

Administration

material resources.
of warfare

In the species,.;

with which

we are

have

.v

disposal, while the enemy's

>

ing power which you and I
at

our

forces

armed
most

are

students

identified

take

preventive

trust

action,

exclusively

contracyclical^
disequilibrating changes :

policy as
in our aggregate spending intentions.
With these facts in mind,
we
can see that those
other two
4 "There

in

three " principal

are

carrying

measures."

and

not

Staler and

(50)

George Patten Investment Co.

genera]
which

SECURITIES
AMERICAN

BANK

in its

BUILDING

nature

guides

other

sources

of

existence

(c)

of the hostile;^

and

„

To

Tactics

(London:

Richard

Ltd., 1941), p.

116;

ness

fluctuations.

note

that

of

identified

action

In

the

as

brother's
tration

strategy

power

UNDERWRITERS

of

or

the

is

key¬

easily

principle of the

selecting
keynote

strategy,

is,

2 "State

And

strategy
the

as

offensive.

TELETYPE PD 229

offensive

the

course,

government

the big

of

Adminis¬

conforming

is

the

of compulsion and coercion.

has

monopoly

the

Ludwig
Haven:

DISTRIBUTORS

p.

von

of

violent

Yale

University

Press,

Telephoi^ Main 3131

Member Federal Deposit Insurance

(New
19491;

'
m

FOSTER & MARSHALL
Investment Securities
York

Stock

BOND DEPARTMENT

Portland




•

SEATTLE 4

Telephone MU. 1900

Spokane

THE FIRST

NATIONAL BANK

OF PORTLAND
i .rvrs:

PORTLAND,; OH EGON

SECOND AVENUE

Teletype SE. 482-673

,

Exchange, American

Exchange (Associate), Chicago Board of Trade

820

Teletype SE 489

Corporation

149.

SECURITIES

New

4, Washington

-a-

MUNICIPAL

Stock

BOND DEPARTMENT

Seattle

ft/net

MEMBERS:

;

It

action."

Mises, Human Action

fcT

social

apparatus

BROKERS

CORPORATE

Municipal Bonds

Administration

application of coercive

•

Eugene

2

tfe
SfV
s»Tv

^

*

'■
v.
•'
'V
gain public opinion.
Captain J. E. A. Whitman, How Wars' f
are
Fought: The Principles of Strategy

army.

against the forces of cyclical busi¬

PORTLAND 5, OREGON

TELEPHONE AT WATER 4389

the

of

the

.

J

":i

war:

on

,

•

U. S. Government Bonds

This second premise defines the

objects

(a)
To
conquer
and,, destroy
the
enemy's armed force.
(b) To get possession of the material elements
of aggression and of the

therapeutic

to

by

of

The Second Premise

pacific northwest issues

here u

concerned, the enemy's material,
consist in the purehag- >j

resources

«i-\

icy is that the government must

•

of the three prin¬
cipal objectives of war strategy; *
and ignore the other two, namely, %
the
destruction
of the enemy's j
armed force and the seizure of his q
would adopt one

"The second premise of our pol¬

retailing & trading

,

big brother's efforts, it would be
rational for
them to put their

Company,

715-16.

premise

third

Burns'

Clay and

olume 180

Number 5386

rincipal objectives
in

ected
rand
ar.

the

strategy

.

.

not

are

The Commercial and Financial Chronicle

.

mobility would call for the shut-

for

of

those

two

objectives

the missions of the monetary,

re

borrowing, lending, and
pending operations which constiute
the widely-advertised parts
We

rogram."

of

"economic

also

can

that

see

I

and

ou

may be classified
ollaborators with the enemy

as-

of

ntable prosperity" today because
ecause

spend too little.

we

_

If

gainst
f

the

1929 -30

1930 -31

.

,

Tonally,

4

^

;

"cooperation" of all govIf the government Is waging the
unpredictable -forces ernmentaK missions* m ust ^be -kind of contracyclical;-war Indiboom and bust£ it is 'achieved through the authority of. cated by Dr. Burns, we need not

to-use

rinciples

1931-32

PRESIDENTS

wage a species of war -war the

cyclical
tile

IBA,PAST

on the part of the
expected to defend from, cyclical. Administration ~ for example,

expect the Federal Govt

we

of

resources.

^ V^sturbarices.

-:

^^

j

.

_

Contracyelical- Policy?

rnment to

selection

prise" which the government is. forthrightness

_

What Criteria of Present
:/

the

as an

scarce

.

spend too much and tomorrow

e

either

on

works indexes to be used

unacceptable waste (204-05); and the "great lacuna"
The strategic he found in the Report was the
principles of "surprise" and "se- absence of any real discussion on
curity" prohibit the signalling of the subject of wage rates (205-06).
government
intentions
and In his concluding paragraph, Propunches in the contracyclical war, fessor Philbrook gives a veiled
whereas economics views com- hint that he knows the real reason
plete advance knowledge of in- for the lack of candor in the Re¬
tentions and events as one of the port: ".
something of a case
necessary conditions for the most can be made for
the idea that
efficient operation of the "system greater good would be achieved
of freehand competitive enter- in the long run by less immediate
condemn

axing,

f the. Administration's

as signals for
governmental action or on what
changes in the selected indexes
would
constitute
which
signals

down of,, government

projects at the signalled approach
of boom conditions, a maneuver
which
economic
theory
would

contracyclical
On the contrary, the attain-

ent

ment

ting

neg-

Administration's

103

(2555)

ordinary

egwiemic

the criteria for

as

ap-~

raising .the government's coiiduct
f that waf.'The-appropriate ergeria for appraising the conduct
f any species of war are the con-

unified command, whereas eco-i hint

Henry T. Ferriss

Allan M. Pop®

%

at the reasons for
nomie Iheory^teaches-that -the eo^ the Administratkin's lack^ of conv>
operation of all economic actavi- .plete pandor on the strategy,- tac-

a

Trowbridge Callaway

...i

guess

or

jjjr

,

i

T

■ "4-',

egy, which in many wars will he, in terms of g ,popular notion ahf
canattain'maximumefflciehcy t-ics.orinstrumentalities and sigthe ruling consideration, the, tar-* certain economy find strategic
only when.itisachie'vedthrough nals of that species of warfare *
®et&:
your bomhipg. missions allies:-The dHemmawstarfe heat
the impersonal mechanismv ot a The istrategic principles of sur-;
&noUld be chosen with a view to tjt* popular, notion that the goyminimizing destruction of human ernjmenfdefense of "staWe.-pfOSr
life and productive capital;Jln en-:-parity" i& a necessary" condition
harply divergent from the prin-.'garnet
: - ^
•
p
tsdneealment?and decepUbavitt its emy territoryv ^
^ for the survival of "our system, o{
pf economics on several.cru—
Th»
sharp diy^Tge n c i e s -b-etweert"-public. statements on- it§ conduct 4 In short; if we expect the Fed- free and <competjtive enterBrise**"
rategic: and cconomie principlcs. bf .the contracyclical war. More- era! Government to wage a con- .The economic realities are; first;
rovide a sufffclent explanation over,-, the principles of war strategy
tracyclical war, we must be pre- Jthat in a country experiencing-, a
^ th€fAdministration^v^luc-"subordinate economic- efficiency, pared to put up with surprises, rapid growth in population the
e
largest
possible
traction of tance to make full disclosures on as the professional economist uses
concealment, waste of'scarce re- continued enjoyment of genuine
~
J
-x
"
:
vailable resources to
___

r

...

the

tion

the

of

whereas

_

execu—

certain

izes the

advantages of
of

the

among

desired by

The

a

scarce

Doints which-interest'

kev

that, concept, to concentration' of

proLsio^^^S^^^maximum

mission,

economic theory empha^

allocation

ers.

decisive

ties

dispersed

recently-decisive missions. Hence the strategic criteria for the allocation of
complete candor In the scarce resources among, for in-:
1954, Economic Report of. stance, housing, agriculture, and
orf the

commented

resources

lack

many different uses
the sovereign consumstrategic
principle of

combat power on the

of

January,

"disquieting"

°* which allocation would yield
the maximum value of useful
principle of concentration, problem of stabilization that is product per marginal dollar of
and calls for staving subordinate
disquieting.
The sources of dis- expenditure, but which allocation
missions of resources in order to
quietude
can
be
indicated
bv would give the greatest probabilbeef up the decisive mission and
reference to three aspects: the ity of defeating the cyclical forces
thereby increase the probability criteria for instrumentalities" or which constitute the current or
«it is

of

port

contemplation of the Re-

as

commentary

a

victory, whereas the "economy"

Hpvipps

theory is an efficiency
idea, meaning the maximization of
wented
output obtainable from
scarce

cyclical
ciple

the

war,

the

of

its

turn

the

ready to switch sides like

trying

to

power

in

direc-

e.g.,
a

nation

principle

since

Similarly,

resources

priority
0f

in

would be given

the

criteria

contracyclical

talities

C202-04V-

llglf

(

.

instrumenclear

no

'

state-

wage

late

°

5 "A Libertarian Reaction to the Pres-

situation, and not by considerations of economic efficiency. And
of

amount

no

Is

the

nomic life is that the unhampered

Cure Worse Than

the

operation of the system of free
and
competitive enterprise is a

Disease?

The dilemma which is built into
the

current

clical

The second fact of eco¬

turbances.

Ill

XI

XI

in

fashion

condition for a continual

necessary

contracy¬

Continued

summarized

policy can be

on

page

exhortation

efficiency

Or

WE MAINTAIN
ACTIVE TRADING MARKETS

PACIFIC NORTHWEST SECURITIES

lip

clical

strategy
or

any

The

fare.

change

can

imperatives

categorical

sound

the

in

of

other species of

of
the

these
facts
when phrasing
lowing exhortations:
"In

SECURITIES

Bldg.

Porlland 5, Oregon

reduction

tax

sion of

a

war

fol¬

on

the

nation-wide Jos. McManus wire

and

Zilka, Smither & Co., Inc.
INVESTMENT

at

be¬

SECURITIES

813 S. W. ALDER

TELEPHONE

ques¬

choosing

of

arise

may

tween

INVESTMENT

circumstances

some

tion

um

and

recognized

McFAUL

Call

war¬

Research

CED's

strategy

&

UNDERWRITERS—DISTRIBUTORS—DEALERS

contracy¬

Policy Committee appears to have

8261

TELETYPE

#

PD 155

PORTLAND 5, OREGON

expan¬
salem

public works, or of choos¬

•

eugene

medford

•

•

vancouver, wn.

jwr

the best combination of the
If we leave aside for the mo¬
ment
questions
of feasibility,
which in many cases will be the
ing

two.

governing consideration, this ques¬
in terms of
two objectives:
tion may be answered
Bell

Teletype—PD 254

Specialists in Securities

"(1) We should try to hold down
amcunt of
uneconomic and

the

and

ment

shifting

industries

between

of the

of employ¬
productive activity, as

unnecessary

and

Pacific Northwest

regions,

that is involved in maintaining or

restoring high employment.

only

also

efficient

high

useful

DISTRIBUTORS

but

employment

and

DEALERS

UNDERWRITERS

"(2) We should try to stimulate
not

Pacific Northwest Securities

employ¬

ment."6
In

the

BLANKENSHIP, GOULD & BLAKELY
INCORPORATED

light of the CED

Com¬
qualifications, which
I have emphasized by the added
italics, these quoted exhortations
mittee's

JUNE S. JONES & CO.

own

INVESTMENT
INVESTMENT

A

on

ESTABLISHED

WILCOX

1929

BUILDING

economic

mand:

4,

If




are

we

leave

aside

TRUSTS

•

SECURITIES

CORPORATE

MUNICIPAL

Teletype PD 280

for

SINCE

the

Recession:
Policy
for Greater Economic Stability.
A State¬
ment on National Policy by the Research
and Policy Committee of the Committee
for Economic Development, March, 1954,
p.

39.

Italics added.

,

&

BONDS

U.

S.

BANK

BUILDING

BONOS

1927

PORTLAND

OREGON
Against

STOCKS

com¬

questions of sound strat-

6 Defense

Bell System

efficiency

parable to the following piece of
advice to our Strategic Air Com¬
moment

PORTLAND

104

w2l. xxfTo'ciobfrlos,". pfzrcT"' service to the goal of maximum

of

the

American Bank

prosperity."

earners

by the exigencies of the strategic

economic

HESS

enemies of "stable

over

must necessarily be guided mainly

.

the

victory

business stability,

be-

out

for

use

maintain a balance of
international
military

instance,

~

for

immediately anticipated threat to

the Administration's selection and

scarce

high

be

Conflicts.
For

nointed

be

lacuna

and/or
the

necessary

£

"prosperity" (i.e., not a mere inflationary fever) depends more
upon a continual rise in econqmic
efficiency than upon the mere
absence of cyclical business, dis¬

of contracyclical strategy, the Administration's policy on wages

0f

with

to

great

one

comprise a large segment of the
Professor
Philbrook found
in "people generally" whose support
that Report no assurance that eco- of the Administration's stabilizanomic efficiency in the allocation
tion policy is a principal objective

printhe

pressure

cycle,

and

will

deems

...J'i!'

sufficient

low."5

for

the

the attitudp toward V»idp<?

action,

which

contra-

caUs

reverse

coercive

of

this

strategic

"mobility"

of

government to
tion

In

resources.

t0

istration

the

on

the

of economic

,

public works is not the question

the President:

'economy of force" is subordinate

to

sources, and whatever other con¬
ditions or expedients the Admin-

AT.

1318

4,

OREGON

104

The Commercial and Financial Chronicle

(2556)

...

Thursday, December 16,1954

c~:%

Continued

IBA

PRESIDENTS

PAST

1927-28

from

10

page

Toward

Acceptable Contracyclical Policy

an

1925 -26

1926 -27

in

rise
final

economic

The

efficiency.

this dilemma
the fact that the strategic prin¬

is

ingredient

in

exigencies of contracyclical warfare necessarily sub¬
ordinate
economic
efficiency to
ciples

and

however,

selected,

wisely

stitute strong
able

"keeps"

"framework"

stitutional

us

come

a

of

eral

Government,

into

the

policy

puts

dilemma

agonizing

having to make frequent choices
between "stability" and genuine

those

of

tion

"keeps" would

routine

contra¬

source

would

be

a

of "favorable

concerning

the

fu¬

the part of people gener¬

on

ally" than confidence in the eco¬
prevail
the battleground of a contra¬

be¬

nomic conditions likely to

then
atten¬

would need to pay no more

for instance,

expectations
ture

duty of the Fed¬

which

of

strategy

rational

more

free private economy
The permanent occupa¬

in

contracyclical

dollar,

within

the

which

operates.

cyclical

the

over

depend¬

or

the

to

cyclical warfare. Public confidence
in the stability of the value of the

points of reference in the in¬

forces.
Consequently, the current fashion
victory

tion

their

permanent occupation would con¬

on

cyclical

war.

"prosperity."
chose the stability
we should

If we always

this

of

horn

A Good Man for

dilemma,

Big lob!

a

be

Henry R. Hayes

Jewell

Pliny

running the grave risk of kill¬
ing the system of free and com¬
petitive enterprise even before we

Morris

Ray

the business cycle.

overcame

the

long
i

$50,000,000.
the net proceeds
will be used for general corporate

on
i

Dec

9
-

6
shares

of

common

Th,.

This

OH

stork

Co

oversubscribed

"fin

$36 50

at

offering

fn-ir

oer

auicklv

was

and

,

the

books

closed.'
^

Concurrently with release of the
offering of shares, it was announced
that
Monterey Oil has
placed privately through Lehman
Brothers

$42,000,000
notes

promissory
able

its

(secured)

installments

in

of

4%

\r

u

gross- income

UA

re-

d/ g;

$18,460,059

and

net

9

'

•

income

didly

was

and

,

.

™5
//tn? p
J49'*
.

plants

in

located

California

retire

of

the

company's

cal

ALBUQUERQUE,

in-

N.

Mex.—

ing in
offices

in

the

3, 1.954 of substan-

securities business from

a

the

Sunshine

tially all of the business

and assets

under

of Fullerton

Corp. The

&

Gas

we'd

have

to

sistant

Pre».

business

firm

name

of

to

seems

me

a

prosperity,

and
upon

Shelton

genuine
economic

be

regarded

of

business

It may even be a worse
evil than the business cycle itself.
cycle.
Active
IN

Markets

Maintained

That

impression is reinforced

doubts

COLORADO

the

on

popular
current

WYOMING
NEW

MEXICO
&

fashion

policy

is

vinced

in

the

It

contracyclical

I

the

free

of

the

[upon which

based.

that

system

MONTANA

by

of

accuracy

notion

not

am

survival

and

our

Markets-

Maintained

Institutional

on

believe

all

Securities

that

American
choose

majority

a

people

of

the

would

still

freedom, if forced to choose

between freedom and cyclical sta¬

bility.

COUGHLIN and COMPANY

field is

Security Building:, Denver 2, ^qlorado
Bell

Teletype DN 296

Telephone

tions,

these

I

various

conclude

considera¬

that

the

per¬

manently acceptable contracyclical
policy would be one under which

KEystone 4-3201

business

stability

and

economic

efficiency, instead of being in fre¬
quent

conflict

as

they

under the currently
fashionable
policv, would always be mutually
reinforcing. Applying that acid
test

to

available

me

-

brings

to

alternatives

principle

of

business

indirection

cycle

problem.

objectives,

the

permanent

occupation

SECURITIES

as

a

--offering

stock

common

those

for exploration work

pay

the

first

year;
for working
capital and for general corporate

by

(par five cents) of

share

has

said

been

shares

These

completed,

having

shares

1954

sold.

offered

were

Century Uranium Corp. was or¬
ganized in Delaware on April 14,

per

all of

been

"as

Ridge,

a

The net proceeds

from the sale

are

to

be

the

claims
San

They have

of these securities
to make

is

and

mining

speculation."

sublessee

located

Juan

of

in

County,

235

Elk

Utah.

total acreage of ap¬

a

proximately 4,798. In addition, the

used

corporation also subleased

payment due far mining

a

MAIN

same

area

3-6281

49

BELL,

attainment

Private wire to Bonner

irr the^

other claims."

'

A

DN

290

DN

—

369

Gregory

and

which

PETERS, WRITER & CHRISTENSEN, INC.
DENVER 2,

byproduct.
of

for

purposes.

Century Uranium Corp. at $1

give us a satisfactory de¬
of cyclical business stability

One

leases;

the

in

Such,

of

hope for

can now

in the past has been slow.

Giving effect to the sale of 300,James-; 000 shares, there are now out¬
Anthony Securities Corp;, New standing
700,000 shares out of the
York City, of 300,000 shares of
3,000,000 shares authorized.
recent

would
gree

progress

Offering Completed

policy would aim directly at cer¬
tain
proximate or instrumental

CORPORATE & MUNICIPAL
! i

where

the conclusion that

the permanently acceptable policy
must be one which followed the

Active markets maintained in

ripe unto the harvest. We

be

must

an important one, that the
asking Mr. Dodge to undertake. The

Century Uranium Stock
The

From

big job, and

a

progress

depends
entirely,
or
even
mainly, uoon its ability to
pay off in "stable prosperity."
I

Municipal Bonds

is

competitive

enterprise

n

particularly, in respect to foreign eco¬
I shall look to you to provide for the

President is

con¬

of

the effective coordination of

clarifying and defining issues, and determine the
primary responsibilities of the Executive agencies*
for the preparation of original documents and for
any other steps necessary to produce a coordinated
and agreed-upon governmental
position." — Presi¬
dent Dwight D. Eisenhower to Joseph M. Dodge.

solution

the

assure

anticipation of problems and issues, insure advancepreparation, analyze information for the purpose of

cannot

final

and to

nomic matters,

based

efficiency
with

Joseph M.-Dodge

accom-

concern to the several
departments and agencies of the Executive Branch.

in¬

"More

the

as

troubles

our

in

as¬

advise;

foreign economic matters of

that any contra-

prosperity

and

me

Eisenhower

programs

default,

runaway

the

to

plishing an or¬
derly development of foreign economic policies and

subordi-

strategic victory over cyclito

am

President to

ohoos^'be^n^itne^labUit'y

Building

Sanders Investments.

Oil

is

sist

forces

It

'Effective im¬

designating you
as
Special As¬

making mistakes

probably through
flationary boom.

Aurelia Shelton Sanders is engag-

chase

Nov.

tL govefnment

the contracyclical war by

Forms Shelton Sanders Inv.

curred in connection with its
puron

in

thereby running the risk of losing

un¬

indebtedness

bank

Burns

°n ^ other hand' " we a'wfys

nate

Texas.

all

fact can-

a

Dr.

(»

dilemma,

and

Of the net proceeds received
by
the sale of the

shares, $8,000,000 will be used to

V

.

mediately I

chose the prosperity horn of the

Monterey Oil from

secured

'

nnriprctatpment

™nirSInt

'

,.

,

by

nf

namely

Wyoming. It also owns
,f

.

admitted

mootcrnierr

lnteresfs ln three natural gasoline

31, 1962

policy where it
is involved.

field conditions are not conducive
field conditions are not condi

c"

$800,028.Monterey Oil is engaged in the
production and sale of oil and gas
from properties located in Cali-

.

approximately 72% by Sept.
30,1962, with the balance due Dec.

tic economic

Battle-

guess.

Se°vear°ended AugC<31P1954Swas indefinite deSree b.v
d

homa

to

retire

lation to domes-,

(rating governmental pressures on
the spending and investing activities of individuals and business

.

fornia, Texas, New Mexico, Okla-

pay-

sufficient

/

heretofore by Monterey to tongevlty in any kind of war.
Oil. Pro forma consolidated gross -J'lial guess is complicated to an
•
} iL
t
•
B Y
That Suess is complicated to an

'

n

/

d,

enterprise

private

compulsory braking, reversing,
stimulating, distorting, and frus-

^'he acquisition of Fuderton is
^pected to, approximately double firms is anybody's
the amount of

a^nriatec

and

publicly otte,ecl 300'000
PUWlCly offered 300 MO

e-fMonterey
■I.-,,
share.

purposes.

free

of

was

is

my desire that we proceed as rapidly as
possible to bring about improvements in the organ¬
ization of the Executive Branch for the develop¬
ment and coordination of foreign economic policy,
including its re¬

How

system could survive a succession

v

purchase price
The balance of

Monterey Oil Go.
Financing Completed
Lehman Brothers

^

"It

COLO.

Lovetaiul, Colo.
instrumental

ob¬

.

i

^

.

r

*

-

.

'

*

'

'

■

„

-

jectives for which widely known
arguments have

veloped

Garrett-Bromfield & Co.

nt '

2 81)2f

Teletype D N 76




Exchantr?.

^

already been de¬
value

a

•dollar, -rftr^rn^^iired by
•

Member Midwest Stock

is-

Security Bldg.

some

The

and

selection of these instrumental ob¬

Once

discussion.

a

they

had

a

Lloyd

W.

Mints, Monetary

Pol¬

Competitive Society. (New York:

McGra"w»HiIl

Book

Municipal Bonds of

r

been
ARIZONA

7 e.g.,

—

matter for

Denver, Colo.
icv for

Dealers in

Corporation Securities

ap-

$r6priate price level index.7

jectives is, of course,

i

t

the

of

Company," 1950).

NEW

-

COLORADO

MEXICO

MONTANA

"

UTAH

NEVADA

WYOMING

Volume 180

Number 5386

-

...

The Commercial and Financial Chronicle

(2557)

without
A".

i>3 .'

"*

A A-.V;*; -jj;- L

■*L

new

Our

Reporter

Governments

on

those

that

making

are

be

demand for mortgage money
with this being the case, there
be

of

few

market is now
conscious to year-

pointed out that as the
moves
along, ;there
a
leveling off in the

year

should

By JOHN T. CHIPPENDALE, JR.
The government

increasing interest rates.

It is being

■

no

for

pressure

The

rates.

money

105

boom, it is indicated,

On the other hand, the

PAST

PRESIDENTS

will

1922

-

23

1920 -21

1915-17

upping of

an

stock

year-end tax adjustments in their
this is holdings of government securities
the time when portfolios are be¬ jare using the refunding of 2V2s as
ing arranged with more than a replacements for the issues which
are being disposed of.
weather eye toward the tax angle.
,v;

IBA

and,

market

show any

becoming
end

more

adjustments,

because

refunding
operation is still very much of a
market factor, because the issues
which

for

the

still

offered

were

Dec.

in

The 2^s of
well dis¬

being digested.
not yet

1963, while
tributed

are

as

they will be, are none¬
theless continuing to move into
strong hands.
as

are

furnish

Martin
The

competition

Martin

securities

these

Treasury securities. Also the sharp
uptrend of prices in the equity
market is a factor which, some in

do

with

market

have

not

President

and

York,

was

a

the financial district believe, may

sized purchases,

Accordingly, the
"active ease" policy of the mone¬
tary authorities is being watched
with an eagle eye.

and there

is

is not

are

tions for tax purposes, which en¬
the
taking of profits and

around than have
in

losses, is becoming much more im¬
portant each day in the govern¬

from

It is evident that

ment.

able exchanges are

portfolios
closing

siz¬

felt

being

in

Eastern

some

around

price movements in the
market.
Nonetheless, it is the
opinion of most money market
specialists
that
quotations
of

the coming of 1955.

Treasury issues will not show

is

an¬

James

der

what will

was

Co.

Co.

Van

many

with

was

Win¬

formerly with Bonbright

and

for

Mr.

the

Company,

Bell,

of Paul

management

Wall

the

&

Co.,

M.

New

Stock

York

H.

has

Bell,
Company, Limited
and
Leggat,
Bell,

on

with

been

firm

the

division

syndicate

of

the

in

Incorporated

ipal department. Mr. Spalding has
been active

Gouinlock Ltd. of Montreal.

as

an

individual floor

broker.

and

for

Active Markets Maintained in

30

in the not too distant

unusual

much

the

in

way

that

is

very

exchanges which are being
made for year-end tax purposes
appear to be following no particu¬
lar pattern, which has been pretty
in

past

as

is

that

reported

UNDERWRITERS

•

not

On

those

as

U. S. TREASURY

half of next

Michigan Bonds and Stocks

STATE, MUNICIPAL

for the payment

the first

in

the

other

flRST OFjVflGlHGAN CJOBPOKATIOJf

boom

can

still

BROKERS

•

•

be

Midwest

&

BUHL BUILDING,

there

hand,

that

Detroit

Member

and

are

PUBLIC REVENUE

market, specialists

money

believe

who

a

DEALERS

Specialists in

out

could bring about somewhat

other

gained owners through
swops
which are being

It

made.

point

higher interest rates.

is, however, evidence that
recently
available 21/zs
of

tax

taxes

year,

years.

1963 have
the

well

of

There
the

They

SECURITIES

CORPORATE

that the
heavy
demand
for
mortgage
money, along with the other bor¬
rowings of a non-Federal nature,

The

case

a

BONDS

MUNICIPAL

.

future, there
modest firming in money

rates.

year.

the

Walston & Co.

made somewhat more effective

will be

changes during the balance of the

much

and has recently been with

years

ease"

"active

policy of the monetary authorities

significant

of

the

unless

Some believe

the

v

taken

YORK

NEW

Battle Creek

•

Stock

Flint

•

Exchanges

DETROIT, MICHIGAN

CHICAGO

•

Bay City

•

(C,OLUMBUS

•

Grand Rapids

Lansing

•

building
care

of

•

Port Huron

SECURITIES

DISTRIBUTORS

McDonald-Moore & Co.
STOCK

MEMBERS

DETROIT

MEMBERS

ACTIVE TRADING

MIDWESTERN

MID-WEST

STOCK

EXCHANGE

EXCHANGE

MARKETS

SECURITIES

Underwriters and Distributors
Aubrey G. Lanston

—

MEMBER

ESTABLISHED

1920

DETROIT STOCK

Municipal and Corporate Bonds

8c Co.

BAKER, SIMONDS & CO.

Listed and Unlisted Stocks

—

EXCHANGE

INCORPORATED

DETROIT 26

BUHL BUILDING

15 BROAD

ST., NEW YORK 5

Penobscot

Building

Whitehall 3-1200
BELL TELETYPE—DE

PHONE—WOODWARD

189

—DIRECT

WIRE

1-3670

231 So. La Salle St.

CHICAGO 4

BOSTON 9

ST 2-9490

TO—

HA 6-6463

DETROIT 26,

45 Milk St.

TROSTER, SINGER & CO., NEW YORK

MICHIGAN
FLINT

LANSING

GRAND RAPIDS

V

K

V.

CHARLES A. PARCELLS & CO.

WATLiNG, LERCHEN & CO.

1919.

:

ATTENTION N.A.S.D. MEMBERS
Orders

Investment Securities

Established

,

Executed

N.A.S.D.

on

the

Members

Detroit

at

DETROIT

60%

STOCK EXCHANGE for

of prescribed commission

Stock Exchange Listings on

Inquiries

Request

Invited

Members:

•

Members

New

York

Stock

Exchange

American Stock Exchange (Associate)

DETROIT STOCK
v

Detroit

Stock

Exchange

Midwest

Stock

MIDWEST

Exchange
■

j

DETROIT 26,
Anrn Arbor




Jackson

MICH.
Kalamazoo

639

STOCK

EXCHANGE
EXCHANGE

Penobscot Building

DETROIT

Pontiac

Telephone WOodward 2*5625

the

munic¬

Mr. Kenny

Byllesby

14

York ' City,

New

January 1 will adrn^jj
Philip Spa-lding, member of the
Stock
Exchange, and John
M.
Lokay to partnership, Mr. Lokay

Exchange

The firm is affiliated with
&

Hammili

Street,

members of

office.

Toronto

Spanfding, Lokay

Shearson,

Alstyne, Noel &

years.

H.

the

of

Crosby, formerly of the Toronto

Kenney and

department.

Add

Gity

made

Gouinlock &
Company, Incorporated, with of¬
fices at 64 Wall Street, New York
City. The new office will be un¬

of

&

be the trend of interest rates with

rather

120

City,

of

Gouinlock

field

'

different

to

as

Inc.,

York

formation

trading

long-term

be

to

Bell, Gouinlock Go. Inc. Shearson, Hammili to

Walter Winfield have joined their

is

obligations

the

Lewis B. Franklin

p.oy C. Osgood

Formed in N. Y.

long.

or

New

that

nounced

Competition

1955 Rate Trend

on

seems

opinions

tendency at

a

bring about

There

favors

Securities,

Broadway,

being made in
Opinions

Sproul

Treasury issue,

any

Eastern Securities Inc.

been appearing

past.

whereas Mr.

Kenny I Winfield With

things

government bond market.

preparation for the
the year 1954.
These

of

recent

non-Federal

still

in

kind of trades have
times to

some

the

John A. Prescott

it

Announcement

buyers

more

tails

as

only in short-term is¬

whether is be short

likely to be remedied

there

until

year-end switching opera¬

those

of

one

vigorous

as

are re¬

as a whole, the thinness
of the market for the most distant

that

opera-r.

securities

Mr. Martin is for

previously.

sues,

However,

maturities

be

to

operations in

ports of buying here and there by
some
of the commercial banks.

Tax Operations Predominate

Open-, Market

government

operations

municipal

rates.

of

State and

eventually influence the trend of

The

over

in

continues

pension
funds
have
been making what is termed fair

interest

Reserve

Sproul,

the Federal Reserve Bank of New

important

any

amount of breadth to it.

Federal

the

of

Board

longer end of the govern¬
ment list appears to be a bit more
on
the stable side, even though

for

Sproul

vs.

dispute between Chairman

The

obligations, continue
keen

to

vogue.

tions

non-Federal

Short-term

rates are not expected

significant changes from
pattern which has been in

the

Long Market Under Pressure

heavy demand for mortgage
money, as well as the flotation of

changes

the "active ease" policy of the

money

tant obligation in these operations.

The

to

there

sure,

be taken

monetary authorities.

other
Treasury issues in or near the
maturity range of the eight-yeareight-month refunding bond that
are
also
being
used
in
these
switches, but reports indicate the
2%% of 1963 is the more impor¬

exchange

maturities

15

be

To

in

can

making

without

of

care

-

26
Bell System Teletype DE 206

106

The Commercial and Financial Chronicle

(2558)

Continued

from first

derlying

page

Debts Keep
the second half. The

more

whole, there was

billion

a

ahead

of

As to the volume
of loans of all banks, they have
a

$21.*

a

who argue that no

earlier.

year

billion increase in the net private

gained

a

little

debt, as against $23.5 billion in
1952, $32.6 billion in 1951, and a
record $39.9 billion in 1950.
But

dollars

in

the

and

lion

or

billion

are

over

one

occur

volume of

cal

depression

can

due to "built in" anti-cycli¬

imply

simply

devices,

first nine months,

likely to gain another bil¬
two before the year is over.

Walter Fixier to Be

during the recession. In fact, the
money volume contracted in the
first half of last year by $2^ bil¬

possible, of course, but it brings
up
the hazards of a run-away

J. W.

liquidation of private debts can be
avoided by boosting the national
debt—and monetizing it, That is

lion,
in

the

actual increase

that the

so

amounted

half

second

to

almost $8.4

billion. Which should
provide a lesson to such theorists
as Senator Paul Douglas, who be-

'

inflation.
is

It

a

Thursday, December 16, 1954

that

posits and currency) grew by $6.1
billion. This paper-flood occurred
in the second half of the year—

Rising

cember—half

instruc¬

tive it is to find that during the
year as a

volume; the two
together. In 1953, thp
outstanding money (de¬

money

processes go
'

...

Sparks Partner

PHILADELPHIA, Pa.
D.

Fixter

will

be

—

Walter

admitted

to

partnership in J. S. Sparks & Co.,

v-

that

fact

remarkable

while all statistical aspects of our

economic

growth

are

being

con¬

stantly advertised and analyzed,
New corporate bond issues
outstanding state and local debts
this one, the growth of our in¬
were boosted by $2.8 billion ($2.6 ^amounted
to $3.7 billion in the ieves that changes in the money
debtedness, is
being practically
first eight months of this year,
and $2.5 billion in 1951 and '52,
volume
automatically determine
ignored. This writer did not come
respectively).
And the net na¬ lagging somewhat behind the the price level, even in the short across a
single recent book or
tional debt rose in 1953 by $^8 'sapie period of 1953.
But urban run.
major study devoted to this prob¬
Now
billion—which, with a $1.5 billidn mortgages cannot lag behind last
then, in the first nine lem
loaded with potential
decrease of the Treasury's cash year's $8J/2 billion in view of the months of this year the volume of
trouble.
balance, added up to a $9.2 billion 'higher level of building activity money—deposits and currency in
deficit, the largest in any postwar currently.- Municipal bond issues circulation—increased "slightly,"
year—this under the economy- are likely to forge ahead, while namely, by $1.6 billion. But at the
the budget deficit is supposed to end of August it was still ahead
minded Republicans!
In of the same date of last year by
In other words, we keep going decline to a mere $3 billion.
Walter D. Fixter
1
into debt, if only at a reduced
short, the 1954 recession did not $8 billion, or 4%, while the in¬
rate, as we are supposed to keep stop the growth of private and dustrial production index is down
Western
Saving Fund Building,
Aetna
Securities
Corp.,
New members of the New
producing an ever-higher GNP munici pal debts, but merely some 8%. Evidently, inflating the
York; and
figure. Both processes advanced slowed it down. This year's total currency is one business that is York, on Dec. 9 offered publicly Philadelphia-Baltimore Stock Ex-'
"only" 5% or so in 1953, the one increase in debt is likely to turn not affected by booms and reces¬ 120,000 shares of common stock changes, Jan. 1. Mr. Fixter is ini
(par 20 cents) of Graham Bell the firm's municipal bond depart¬
by $33 billion, the other by $18.8 out to be equal, or very close, to sions; it goes on and on.
the $30 billion postwar annual
Limited at $2.50 per share.
billion.
The chief reason for this recent
ment.
:j
It is intended that'-the net pro¬
What about 1954? Incomplete as average—while the GNP is run¬
monetary expansion is the fact
the data are for the first eight ning about $10 billion behind last that bank portfolios have been ceeds be used primarily for the
year!
bolstered with unusual vigor. In development, promotion and pro¬
months, they tell something about
The Credit Pyramid
duction of many new products to
the "recession." Consumer credit
the 15 months ending last Sep¬
stood
at
the end of September
Expansion of the debt structure tember—i.e., through the so-called be manufactured under a license
roughly $0.7 billion below last De¬ presupposes expansion of the un- recession period—all banks in the agreement with The Bettinger
■

—

Graham Bell Lid.

,

Slock

Offering

-

.

G. H. Walker to Admit

Cadwgan to Parin'rship

Increase

Net

or

Gross

Decrease

Federal Debt1?*

in—

Economic Debt*

Percent

(# billions)

($ billions)

<

billions)

s

1.2

1916

79.9

1921

111.3

+ 31.4

+ 39.3

22.9

171.9

+ 60.6

+ 54.4

135.9

—36.0

—20.9

32.7

1945

154.5

+ 18.6

+ 13.7

292.6

1946

169.1

+ 14.6

+

9.4

272.1

1929

.

....

$2.3 billion
securities, plus $4 Vz billion
new loans (mortgage and security
loans, etc.) to their portfolios.
other

The year-to-year
sion

an

+ 27.1

+ 16.0

269.8

dia, largely bank deposits; at the

+ 22.6

+ 11.5

258.0

top, the increase in the outstand¬

+

4.3

2-36.1

ing debt.

+ 39.0

+ 17.1

266.4

two is

300.5

+ 33.4

+ 12.5

270.2

at

____

....

357.4

plus

state

and

Department of

+ 10.9

279.3

+ 24.2

.

381.4

$1954

+

9.3

+ 32.7

333.2

1952

+

7.3

289.3

+24.0

292.3

—

municipal.

Commerce

net Federal debt omits arbitrarily
to the Social Security and other Federal

figure on

the

huge amount the U. S. owes
agencies.
^Tentative estimate.

it

The ratio between the

just about 1 to 5. Or, look
as
of Dec. 31, 1953: total
of

amount

deposits and
$200.3 billion^ total
("net") public and private debt,
about $635 billion; ratio 1 to 3.
The
pyramid
is
growing more
top-heavy every year.
Which is
another way of saying that the
liquidity reserves of the economy
are growing proportionately thin¬
adjusted

c u r r e n c

ner

y,

Dollar

1949

between

business since 1946.

and

a

since

plant and principal offices
are
located in Streetsville, Ont.,
Can.
Its principal markets are in
Canada.
The corporation is en¬

ture of

PREFERRED and COMMON

BONDS

on

Co.,

R. I. — G. H.
15 Westminster

Stock Exchange, on Jan. 1 will ad¬
mit Gordon E. Cadwgan to part¬

nership.
with

Mr.

the

time

some

has

Cadwgan

firm

in

in

been

Providence

the

for

institutional

department.

Two With Barrow, Leary
(Special

to

The Financial

SHREVEPORT, La.

steel.

Chronicle)

—

Raymond

R. Flowers and F. L. Norton III

will

have become associated with Bar¬

ing,

Graham

have

outstanding

common

Bell

Limited

^00,009 shares of

row,

Leary

&

Co.,

515

Street.

stock. +/':

Market
-

i/

BEECR0FT, COLE g CO.
T0PEKA, KANSAS

1952,

ifc

means

MISSOURI —KANSAS

means1

and

AND

a

'GENERAL MARKET

depression

greatest

be

MUNICIPALS

on

again such

liquidation?

Or

can

117 West

IV..
6Jh Street

202

Dwight Building

T0PEKA, KANSAS

What

is

not only the
composition of
the debt. Wholesale liquidation is
matters,

KANSAS CITY, MISSOURI

Teletype TK 8696

yond?

STOCKS

porcelain enamel

&

Street, members of the New York

Giving effect to"present financ¬

on—to the trillion, and be¬

go

PROVIDENCE,
Walker

gaged primarily in the manufac¬

deflation,
'1938, by $36

Must there

wholesale

we

CORPORATION

1929

the

record.

City

in

The corpora¬

tion's

billion, or 21%, of the total (nonFederal) debt was accompanied
by

Kansas

Ave.

MUNICIPAL and

ing Limited, which had been

Debt

depression. Note that

BANKERS

to Graham Bell Enamel¬

fired

recession; their liquidation

PrE5cntt!WriqHt.SnidErCp.

incor¬

was

porated in the Province of On¬
tario/Can., on Sept. 23, 1954 as
successor

by fresh
Slowing down their flow,

in

as

is

boom

The
debts.

and Underwriters

Baltimore

Graham Bell Limited

Heading for the Trillion

Distributors

Dealers

INVESTMENT

Corp., Waltham, Mass., for sale in
Canada.

its liabilities mount.

as

Since 1885

916

in¬

218.8
228.1

♦Private

expan¬

of

At the bottom is
circulating me¬

pyramid.

267.1

+The

credit

shape

the increase in the

1950

1953

the

takes

verted

1949

1951

gov¬

196.2

1947—..
1948

—

billion

and

bonds

ernment

15.1

1938-—_

U. S. have added $8.1

Teletype KC 81

size, but also the

MUTUAL INVESTMENT FUNDS

bound

to

the

Of

end.

start

the

at

national

V

:\

I

short-term

debt,

some

$120 to $130 billion are maturing

becoming

or
one

M UNICIPALS

redeemable

within

We keep "rolling" them

year.

Well

over.

over

one-half

all

of

liabilities, $100 billion
billion, is of the short
category. So is the bulk of the
$58.1 billion non-mortgage debt of
corporate

out of $179.4

Missouri

—

Kansas

—

New Mexico

—

Oklahoma

n

if

—

Texas

and Other Midwestern States

the

of non-corporate busi¬

farm,

and of individuals. Moreover,
probably as much as $9 billion out

ness,

CORPORATES

of the $91.3 billion

is due

ume

Industrial, Public Utility and Railroad Securities

(All data
ties

as

bodes

r

j ^Corporation and Municipal

T

Securities

annual instalments.

as

of the end of

This perverted

Bank and Insurance Stocks

mortgage vol¬

UNDERWRITERS and DISTRIBUTORS

1953.)

timing of maturi¬

ill for the permanence

of economic stability—as it did in
1929.

The worst of it is that the shortterm

portion

tends

to

rise faster

than does the volume of

LUCAS, EISEN & WAECKERLE
Member Midwest Stock

Exchange

Bell Teletype KC

MEMBERS

MIDWEST

STOCK

&

Co.

EXCHANGE

1009 BALTIMORE AVE., KANSAS CITY 5, M0.
Specter of Il-Liquidity

Teletype KC 273-4

Grand 6460

However, the essential thing is'V
the

Street, Kansas City 6, Mo.

Telephone Baltimore 4096




The

Steni Brofes

ma¬

turities.

INCORPORATED

916 Walnut

long

unrelenting

growth

of

the

OMAHA, NEB.—CHICAGO, ILL.-ST. LOUIS, M0.

debt, out of proportion to the in¬

42

crease

in

the

national

income.

(See table.) This raises the specter
of

liquidation, which

tamount

to

a

may

be tan¬

depression";'• Those

V

Direct Private Wire to Chicago Office

Number 5336

Volume 180

..

.

ChronicleC

The

(2559)

loan will be used to finance a part

to one-third of Belgium's domestic

projects which

and foreign trade are carried by

Belgium Borrowing

of the costs of five

$50,000,000 On Oual

of bonds to

Antwerp.

%

The

ternal

under¬

Dec.

and $20,loan: from

an

first

its

of

of

is

sinking

10-year

,

-

,

1~ :

to

with

:

1

which

J

nm/

i.

„

rrf

issue is the first

new

States- in

It

also

is

offering

public

the

the

wegian

iiSs

loan

rnaae

Netherlands

issues
$20

to

made

in

Feb.

the

the
con¬

Chicago

Nor-

and

and

May

and

which

being

is

have

on

a

term

1965,

of

made

1%, will be at the

4%%

of

per

on

Dis¬

annum.

the

work goes

as

the statutory

including

loan,

will

loan

be

forward on the

projects being financed by it and

by Morgan Stanley

the

bond issue

new

.

and

of

a

Smith, Barney & Co.;
$20,000,000 loan by the
Announcement

Bank.

World

York

Dec.

on

by

14,

Purpose of Financing

of

The purpose of the loan
bond issue is to assist in

arid the
the fi¬

the

nancing of five specific projects:
managers
for the
underwriters one to improve the Port of Antand Eugene R. Black, President
werp and four for the improve-

of the bank.
-

~

government.

bond

issue

Proceeds of the
the World

and

the inland

of

vital

Belgian

the

to

National

Bank

Ira D. Owen

Raymond J. Laude

Continental Illinois

Allison-Williams

Goodbody & Co.,

and

Company,

Detroit

Minneapolis

economy,

It owes its position in part to the
connect-

network

of the
country and to its liaison by water

ing

it

with

the

with

the

interior

the

which

Rhine

natural

it

makes

BROKERS

gateway between the

industry of Belgium and the hinterland and foreign countries.
In all, the projects financed will
cost 5.9 billion francs ($118 mil-

•■MM—

I
Business

and

Established

DEALERS

I

1874

it
y.

lion equivalent), of which the Belgian Government is paying about
three-fifths

its

from
had

It

sources.

spent

billion francs ($42

re¬

own

about

2.1

I. M. Simon & Co.

million equiva¬

the end of 1953.
The
proceeds of the public bond issue
lent)

by

the

ficient

bank

to

loan

cover

will

MEMBERS
New

suf¬

be

Midwest

almost the entire

Exchange

Exchange

Stock

Exchange

(Assoc.)

the

on,

_

#

Stock

Stock

American

projects for the
years 1954-1956 and a further 1.3
billion francs ($22 million equiv¬
alent) will remain to be spent on
the projects after today's borrowoutlay

York

CEntral 1-3350

ST. LOUIS 2, MO.

St. Louis' Oldest Stock

SL 288

Exchange House

I.

.

Bank's

waterways of

A modern and efficient

Belgium.

were

representatives of the underwriters and the bank with officials of
the

is

Thomas W. Evans

*n£s have been fully utilized.
The Purchase Agreement coverjointly in Belgium by waterway system for cheap trans- m§ the External Loan bonds and
ment

The borrowing operations

worked out

counter

and

the financing was made jointly in
New

Bank

World

Amortization will start

bursements

T1 investment

group^

headed

Co.

avoid

Trust Company,

15

15,

rate

an

handling four 10,000-ton ships
same time.
This will help

at the

handled and its efficient operation

of

commission

offering of $30,000,000
of Belgian bonds by an underwriting
&

will

O

from the point of view of tonnage

shortly after the
10-year bonds of the public issue
reach final maturity.
Interest on

Black

The transaction

million

nr»nnh

States

public

concurrently with the bond

years.

firms

MINNESOTA

*

u

/N

ooiam

April

Belgium,

offering,

sists of

MICHIGAN

the world, capable

transportation

The

World Bank.

-n

u

ttrAfl

1V\

to

25

1947.

and

u-

i

European

first

any

inr'the United

money

since

Eugene R.

r

largest in

delays which ships now en¬
upon entering and leav¬
ing Antwerp. The port is the sec¬
ond largest in Continental Europe

the

than

more

which

vcximient
new

+h/\

of

.yield 4.06%.

years.

market

•

being offered at 99V2%

are

United

investment

CENTRAL STATES

CHAIRMEN

at Antis the completion of the Bau-

werp
^

^

offering of Belgian bonds in

Perry E. Hall

GROUP

Lund 4% bonds, due Dec. 1, 19o4, ^ouin Lock, which will be one of
the

'

transaction

of

,

The

the

IBA

of five-year 3%% bonds,, prove navigability,
being offered at 100%; andV
The principal project

$15,000,000
•
•
-

the

kind, the Kingdom of

combined

a

of>

$5,COO,000

four-year 3V2% bonds and $5,-

all

Belgium is borrowing $50,000 000
in

It is divided by ma-

follows:

as

canal--barges and the proportion
has been growing in recent years,
Key canal sections, however, are
now fully loaded and the need to
increase their capacity is pressing,
In general, the objectives of the
program are to enable barges of
up to 1,350 tons to navigate all
trunk canals, to greatly reauce the
number of locks that currently delay traffic and, in general, to im-

000,000

which

operation,

of Belgium Ex-'.
Bonds," and is dated

Loan

1, 1954.

three-year 3%% bonds, $5,000,000

World Bank
In

designated

bond issue is

new

the "Kingdom

as

group

000,003

of

Port

the

and

waterways

turities

writing

to

modernize

Obtains $30,000,000 via
sale

improve
and
Belgium's inland

designed

are

Financing Program

107

portation is important to the competitive position of Belgian industry in world trade.
Some fourbillion
ton-kilometers, or
close

.

the Loan Agreement with respect
the World Bank borrowings
were signed Dec. 14, in the offices
of Morgan Stanley & Co. by
Silvercruys,

John

markets

louis

Our Trading Department Is Active In All
Local Listed And Unlisted Securities

"If there is
We
We

Market

a

we

Specialize In Orders For Banks And Dealers
offerings,

want

Odd

Lots,

Missouri

O.

D.

Municipals

Bell
Private

Wire Connections

Teletype SL 593

w'th

Co., New York, and Francis I. du Pont & Co., Chicago

Josephthal &

BANKING

paid tribute to
of
the
World

stated

rates,

could not have

firms

Saint Louis 2, Mo.

1-7600
Direct

INVESTMENT

R.

In addition to the 71 investment

American Stock Exchange <Associate)

300 North 4th St.
CEntral

Eugene

been floated.

Midwest Stock Exchange

Exchange

cooperation

the

1871

MEMBERS
New York Stock

OF

Bank, without which the issue at

Edward D. Tones & Co.
Chicago Board of Trade

and

conference

press

the

ESTABLISHED

Burnett

Black, President, signed the Loan
Agreement for the World Bank.
Ambassador
Silverscruys,
in
a

find it"

can

and

Young

States.

Walker, partners of Morgan Stan¬
ley & Co. and Smith, Barney &
Co. respectively, signed the Pur¬
chase Agreement on behalf of the
underwriters

Invites Your Inquiries

And

M.

Belgian Am¬
United

the

to

bassador

st.

SIXTY-FOUR YEARS

_

Baron

comprising the nation-wide
underwriting group, a substantial
portion of the issue will be sold
to foreign dealers in Belgium, the
Netherlands; Switzerland, Great
Britain and other countries.

Stifel, Nicolaus & Company
INCORPORATED

ST. LOUIS

CHICAGO

•

Prin¬

cipal buyers of the bonds are ex¬
to be
large commercial
throughout
this
country
will be investing for their

pected
banks
who
own

leges

Newhard, Cook

&

Co.

portfolio, pension funds, col¬
and
agencies
of
foreign

One

banks.

of

our most

Donald T.Woods Forms
Own Firm in Houston

Members

Underwriters and

New York

Distributors
Listed and

Exchange
American

*

r

'*•

'

Woods

has

(Associate)

Mr.

President

Stock

Exchange

AND

SAINT

a

formerly

MUNICIPAL BONDS

&

OLIVE

Gerson Lublin to Be

LOUIS

♦

#
'

Bell Teletypes (Trading Dept.) SL 151 & SL 132
(Municipal Dept.) SL 571
L. I). St. Louis 340, 341 & 342
Nat'l

Alton,

Bank

7907

Bldg.

Illinois

Forsyth

Clayton,

Blvd.

Missouri

Commercial

Belleville,

BIdg.

Illinois

H. Kenlz Go. Partner
On Jan. 1, Gerson D. Lublin will
be admitted to partnersip in H.

Hentz

&_Co.,

60

New
Private

Wire

to




Clark, Dodge

&

'}

Vice-;

Woods

SAfNT

1st

'f

STATE AND

Co.

the West Building

Kramer,

♦
!

securities business.

was

of

&

individuals

Company in charge of the syndi¬
cate department.

•

FOURTH

in

Woods

Woods

to

U. S. GOVERNMENT,

Texas —Donald T.

formed

with offices in

Stock

to engage

Midwest

Municipal Bonds
*

HOUSTON,

Exchange

Unlisted Securities

■

Stock

important services to

institutions and

Co., New York

Yfork^City,

New

York

Lublin/is
research

Stock

Beaver

Street,

members of the
Exchange. Mr.

Manager of the firm's

department.

New York

LOUIS

I, MISSOURI

Correspondent 14 Wall Street

Chicago Telephone to Bond Department Dial 211 Request Enterprise 8470
BESOURCES

OVER *000

MILLION

>:

103

The Commercial and Financial Chronicle

(2560)

of

SEATTLE,
pace

and

Wash.

—

and

ap¬

it was
Ehrlichman,

announced by Ben B.

Keeping

the

the

President of United Pa¬

new

the

For

since.

ever

nine years he has been an
tive
Vice-President
of

Pacific

son

was

the

of

member

a

Free¬

Lyle F. Wilson becomes President
Northwest Company.
Minor has served

Exec¬

as

utive Vice-President and Director
of the parent company

and

as an

in
of

identified

v/ith

the

Ben

in 1930, and has consistently

ranks.
from
and

Mr.
the

Baird

holds

University

from

the

executive

the

in

forward

of

degrees
Montana
of

School

Harvard

Business Administration, and is a
member of the Board of Overseers
of

Whitman

is also
Director of the Puget Sound Na¬
College.

He

tional Bank and the Tacoma Gen¬
eral

Q

Hospital,

and

active

is

in

civic and fraternal affairs both in
Tacoma

and

in

created

the

joined the staff
of United Pacific Insurance Com¬
pany

B.

The

Wilson,

F.

a

graduate of

University of Pennsylvania's

Wharton School of Commerce, be¬
Lyle F. Wilson

companies,

gan

his

banking

United Pacific Insur¬

grove,

Company and Pacific Northwest Company, a major reorgani-

ance

a

career

with

in

investment

Ferris

&

Hard-

ganizations.

Company,

in

of

or¬

1st—Elvin K. Popper, I. M. Simon & Co., St.

'S*

2nd—Edward J.

18 Hole

J. W. Reynolds, who

cific Insurance Company

inception

in

Chairman

of

1928,
the

Board.

west

Pacific

Company,

Vice-President

a

United

of

Pacific

Robert

Executive

an

Daniel

served

Sales

as

of

Mr.

years.

Daniel

organization in 1931.
continues

Executive
Pacific
M.

2nd—Low

;

Gross:

Thieriot, Jr., Carlisle & Jacquelin,

New York.
1st—Low Net:
Mrs.

W.

Robert

Thornburgh,

The

C.

W.

Thornburgh

Company, Cincinnati.
2nd—Low Net:

executives

will

it

McElroy, J. P. Morgan & Co., New York.

Mrs. Charles H.

Harold

principal

companies

72*

Lloyd

Mrs. David B.

United

and

Co., New York.

1st—Low Gross:

the

of

2

18 Hole Tourney—Ladies:

Secretary-Treas¬

as

Other

these

Mrs. Morris

tne

of

Sherrill, Shields & Company,

Charles S. Werner, Wertheim &

Nat S. Rog¬

Corporation,

Nimmons

urer.

of

joined

Committee

8c

Kickers—Ladies:

number

Chairman

as

Leonard

Kickers—Men:

Manager of
a

Lynch, Jr.,- Moore,

New York.

of

Pacific Northwest Company, hav¬

ing

M.

Lynch, Pittsburgh.

Com¬

becomes

Vice-President

the investment firm for

Charles

'

Pacific

Northwest

E.

'1

Mrs.

&

2nd—Mr. & Mrs. H. Virgil

new

Corporation as was Josef C. Phil¬
lips, also an Executive Vice-Presi¬
of

lst—Mr.

North¬

named

was

;J

Mixed Foursomes—

Cameron, President of Equity
Fund, Incorporated and Executive
of

Company,

Mathison, Milwaukee Sentinel, Milwaukee.

2nd—George

W.

Vice-President

.

Handicap—(Second Day)—Men:
New York.

to

Harold

Louis.

Costigan, Edward D. Jones & Co.; St. Louis.

1st—W. Neal Fulkerson, Jr., Bankers Trust

since it?

advances

Barrow, Barrow, Leary & Co., Shreveport

18 Hole Handicap—(First Day)—Men:

com¬

Executive

Russell

1st—Wm.

2nd—Hugh D. Carter, Jr., Courts & Co., Atlanta.

has been President of United Pa¬

predecessor company of
Northwest

parent

Boucher, Harris, Upham & Co., New York,

Allyn, A. C. Allyn & Company, Chicago.

Robert E. Christie Memorial Tourney—Men:

newly

Chairman

the

Hughes, Lord, Abbett & Co., New York.

1st—Jerome H. P.

Cor¬

Committee of both constituent

ers

Pacific

of
the

heads

and

pany,

pany.

Lyle

position
of

the

into

f

i

Investment Bankers Association of Canada Trophy—Men:

or¬

formerly

Pacific

United

moves

Board

dent

Seattle.

fraternal

and

Ehrlichman,

poration,

Harold L. Baird

and is active in

T

Johnson, R, H. Johnson & Co., New York.

2nd—John W.

invest¬

for the past 30 years.

moved

civic

1st—R. H.

2nd—Albert R.

veteran

a

& Co., Louisville.

Hills, Eldredge & Co., New York.

Seniors Tournament—Low Gross—Men:

ganizations.
President of

business in this area

ment banking

War I,

He has

companies since 1936.

been

World

Seattle's

executive officer of both constitu¬
ent

He is

since 1946.

use

,

1st—William O. Alden, Jr., O'Neal, Alden

2nd—Edward H.

the charter of the City of Seattle,

Mr.

L. Baird

GOLF
Alden H. Little Trophy—Men:

Mr. Wil¬

Association of America.

holders' Committee which drafted

Company,

Insurance

of Pacific

Harold

1954 Investment Bankers Assn. Convention

Execu¬

Northwest

and

cific

Stanley N. Minor

Goif and T ennis T ournamen! Winners ai

past

mittee of the Investment Bankers

Baird is

L.

Harold

to

Pacific

named President Of United

Corporation,

moved

resided

been

has

Minor

N.

A year later he
Seattle, where he has

Spokane in 1923.

Company.
He is CoChairman of the Legislative Com¬

Chairman of the Board.

new

Stanley

constituent

its

been

parent corporation,

the

of

with the continued growth
expansion of United Pacific

-Corporation

has

companies

the

proved by the Board of Directors

Official Changes

i#

the executive structure

of

zation

United Pacific Corp,

Thursday, December 16,1954

...

^

Mrs. Karl

remain

D. Pettit, Sr.,

Knickerbocker Shares,

,'jjj

I

New York.

unchanged.
18 Holes (Second Day)—Ladies:

1

.

"1

1st—Low Gross:

Caldwell Phillips Co

Los

LOS

PAUL 1, MINN.

ANGELES.

2nd—Low

Bond

Club

meeting

Los

of

Angeles

at

I

i t y

j

Mrs. William D.

S

Underwriters and Distributors
of

Corporate and Municipal Securities

e c r e

a

Arnold Tschudy, Bank of America, New

J. J. Lee,

Set

rector

By:

Van Ingen & Co., New York,

1st—Mr. & Mrs. Richard A. Buck,

and

Putnam Fund Distributors^

Boston.

of

-

H.
Joseph

L.

2nd—Mrs. Robert W. Ewing and Mr. Jack R. Staples

Ryons

(A. E. Masten & Company, Wheeling, and Fulton, Reid

Crowell,

At

Director.

Co.,

&

the

Club

ST. PAUL I, MINNESOTA

W. E. Hutton & Co., New York.

Woods—Won

Finals—Mixed Doubles Tennis Tournament:

&

meeting. Bond

business

G.

Willard

President

De-

Groot, of Bateman, Eichler & Co.,

First National Bank Building

Matched

TENNIS

t h &
Inc., Di¬

Weedon

Shaughinessy & company, inc.

York.

B 1 y

Co.,

Crowell,

//■

of

L. Walter Dempsey, B. J.

ry;

Warren

•

*

Set of Armour Matched Irons—Won By:

and

t

*

.

Treasurer; and

Mutual Funds Shares

&

Set of Clubs—Bag and Umbrella—Won By:

Deeb E. Peter,
of

Byrne, Byrne & Phelps, New York.

*

elected

Director

Low, Bear, Stearns & Co., New York,

2nd—Low Net:

Whitney,
Jr.,
of
DempseyTegeler & Co..
was

Reuter, Mellon National Bank, Pittsburgh,

Mrs. V. Theodore

a

Club.
J

=

1st—-Low Net:

held

Lewis

;

*

at the Univers

W. H. Nevvbold's Son & Co*,

Gross:

Mrs. F. Brian

Calif.—Joseph

L. Ryons, of Lester, Ryons & Co^
was
elected
President
of
The
B<ej< System Teletype ST P 139

Newbold Taylor,

C.

Philadelphia.

Club Elects Ryons

FIRST NATIONAL BANK BUILDING
SAINT

Mrs.

Angeles Bond

reviewed

Club's activi¬

the Bond

ties in the current year,

and then

formally turned his office over to
President-elect

Ryons.

President

Co., Cleveland, respectively).

Finals—Men's Doubles Tennis Tournament:
1st—Wilbur E.
John W.

Hess, Fridley & Hess, Houston;

Kriet, Dewar, Robertson & Pancoast,

San Antonio.

2nd—Henry L. Valentine, Davenport & Co., Richmond;
Wallace

C.

Latour,

Merrill

Lynch,

Pierce,

Fenner

8c

Beane, New York.

Ryons stated that Committee ap¬

pointments and plans for 1955 are
being

the

in

would continue

Bond

Club

coming

year

and

prepared,

activities

at

a

INVESTMENT

DEPARTMENT

high level.

THE FIRST NATIONAL

Paine, Webber to Admit
Harold E. Wood & Company

Paine,

Investment Securities

SAINT PAUL 1, MINNESOTA




Jackson

Webber,

Curtis, members of the New
Stock

FIRST NATIONAL BANK BUILDING

BANK OF SAINT PAUL

Brick & Gardner lo Firm

Exchange,

admit John

Gardner,
Brick

is

on

Jan.

Broad

1

will

U. S. GOVERNMENT,
AND

STATE

MUNICIPAL BONDS

Brick and George P.

Jr.

to

with

partnership. Mr.

the

syndicate

partment in the New York
25

&

York

Street.

Mr.

Gardner is

associated with the Boston
24 Federal Street.

TELETYPES

de¬

office,
office,

ST P 159 MUNICIPAL DEPARTMENT
ST

P

132

TRADING

DEPARTMENT

Volume 180

The Commercial and Financial Chronicle

Number 5386

(2561)

Public

Utility Securities

MINNESOTA

NORTH DAKOTA

MONTANA

SOUTH DAKOTA

MUNICIPAL AND STATE BONDS

TWIN CITY STOCKS

ALLISON-WILLIAMS COMPANY

|

I

SMITH
Members

Midwest

Stock

MINNEAPOLIS, MINNESOTA
Phone:

ATlantic 3475

•

TWX

MP

163

Kalman & Company, Inc

Exchange

MEMBERS MIDWEST STOCK EXCHANGE

Underwriters and Distributors
We have
SOUTHERN
SOUTHERN

active retail interest in:

an

UTAH

POWER

CALIFORNIA

SEATTLE

EDISON

SAULT

WASHINGTON

424

■

GAS

GAS

&

OMAHA

DISTRIBUTORS

CORPORATE & MUNICIPAL SECURITIES

Common

COMPANY

Bank

&

Common

Common

COMPANY

ELECTRIC

National

UNDERWRITERS

Coirmon

COMPANY

COMPANY

ELECTRIC

Omaha

COMPANY

WATER

Common

Building

Mcknight

2, NEBRASKA

Telephone—JAckson 5065

Manufacturing Industry Trends

'

ENDICOTT BLDG.

building

MINNEAPOLIS

ST.

1, MINN,

PAUL

180

—

After

181

allowance

variations,
able-goods
tinued

INVESTMENT

DEPARTMENT

for

seasonal

expenditures

by
manufacturers

their

downward

MP

1,

MINN.

TELETYPES—

TELETYPE—
ST

120

P

93

ST

Teletype—OM

P

117

(Corporate Dept.)
(Municipal Dept.)

dur¬
con¬

trend

through the final quarter of this
year,
and then show compara¬
tively little change in the first
three months of next year;

Out¬

lays b.y

FIRST
OF

NATIONAL

BANK

MINNEAPOLIS

durable-goods producers
are scheduled at a seasonally ad¬
justed annual rate of $5 billion
in

the

first

quarter

of

1955

as

compared with $5.5 billion in the

UNDERWRITERS & DISTRIBUTORS

first quarter of 1954.
Examination

Specialists in state and municipal bonds of

Minnesota, North Dakota and South Dakota,
and U. S. Government bonds




trend

of

shows
ery,

that

the

investment

individual

producers of machin¬

and stone, clay and glass ex¬

fully as much in
early months of next year as they
pect

did

to

in

this

spend

the

year.

ment

first

three

months

SECURITIES

MEMBERS

NEW
AMERICAN

STOCK

YORK

STOCK

MIDWEST

EXCHANGE

EXCHANGE

STOCK

(ASSOCIATE)

EXCHANGE

of

Transportation equip¬

expect to
spending in
the first quarter of next year —

exceed

CORPORATE & MUNICIPAL

industries

of

companies

also

their year-ago

although the increase is

due

en-

MINNEAPOLIS
great Falls

ST. PAUL
BILLINGS

1m

110

The Commercial and Financial Chronicle

(2562)

Continued

jrom

turned

The State oi Trade and

Industry

WESTERN

NORTHERN

PENNSYLVANIA

OHIO

OHIO

VALLEY

the

postwar-weekly high in car
volume hit in the prior week (34,287;

it looked for 34,200 units,

as

to 34,400 for Chevrolet

compared

based

Attain

a

Thus far in

1954, United States

have turned out 5,109,202
cars and 965,331 trucks, compared
to 5,901,935 and
1,141,367 in the
like 1953 period.

plants

Steel
C. McK.

Herman J.

Lynch, Jr.

P,

Sheedy

M.

Conway

McDonald &

The Bankers Bond Co.,

Company, Cleveland

Inc., Louisville, Ky.

Moore, Leonard & ?"

Lynch, Pittsburgh

the

erations

80%

above

appear

This

and

able

current

Car

for

Underwriters and Dealers in

piling

are

up

mediate outlook is for

Municipal and Corporate Securities

despite

seasonal

this

&

Co.

which
was
the first
8,000,000 ton production month in
year.

Bldg.

is

the

getting around the
bulge in steel

no

current

demand

the

Holdings

like
Rise

Loadings of

1,706,000,000

week

1952.

in

13.4%

Post

in

week

freight for

revenue

ended

Dec.

BEGINNING OUR

25th

decrease of 229

low the
and

a

cars

0.03%

or

be¬

corresponding 1953 week,

decrease

of

57,527

cars

or

8% below the corresponding week

U.

1952.

And since the automotive

catch

sured
next

througn
year,

SECURITIES

S. Auto
est

Output Touches High¬

Point

Since

Week

Ended

May 2, 1953
The automobile industry for

the

first

half

this trade

says

of

maga¬

the

time,

same

buying is
strength,
necessarily
follow

does

factor

not

the

present

balance

any

consumption

quite

as numerous as

^ej,r

was

in 1953 when
Seventeen

35.

outlets

duction

The past week's pro".-1aku
of

total

represented
above the

an

cars

.

contractors
among

to

service

from

37

23

16.

Meanwhile,
manufacturing
fell sharply to 35 from
retailing dipped to 98 from
106.
Neither manufacturing nor
retailing had as many casualties
as last year, but more bus nesses
succumbed than a year aro in all
other lines.

The most notable up¬

turn from the 1953 level

Geographically,
most
of
the
week's mild increase came from
the M'ddle Atlantic States where
the toll

rose

3.7%

upturns

we: e

of

previous week and was
since that ending May

appeared

in wholesale trade.

to 69 from

England, West North Central and
East South Central States.

Such

MEMBERS

MIDWEST

STOCK

Co.,

6-

INC.

But

while

mirrors
these

Direct Wire—

Union Commerce Bldg.

Joseph McManus & Co., N. Y.

im¬

among

IN

Cleveland and Ohio Securities

mill

over

recent

of

some

this

better order

of

it

s

on

weeks.
demand

tuations

of

substantial
"scare" buying

consumers,

portion

appli¬

as

uying steel

a

is

arising from lengthening deliver¬
ies in the face of depleted inven¬

CLEVELAND

-

b

been

rising scale

a

EXCHANGE

consuming lines

have

ances

tories.

In

some

this

cases

is

MEMBER
UNION

COMMERCE

CLEVELAND 14,

MIDWEST
BLDG.

OHIO

STOCK

EXCHANGE
TELETYPE
CHERRY

leading to the placing of tonnage
requirements in
sight, lending to a build-up of
backlogs
that
could
wash
out
quickly in event demand for the

with mills beyond

new

model autos fails to

to

expectations
cludes "Steel."

merrill, turben 6- co.
MEMBER

MIDWEST

STOCK

The

American

Institute

EXCHANGE

having
Central

Natl.

Bank

Cleveland
Cleveland

Trencher

Cleveland

Trust

of

Builders

Cook

Coffee

Diamond

Portland

Company

Faultless

Rubber

Higbee

Inc.

3944,000

Lewis Welding & Eng. Corp.
National
Co.

Company

Inc.

Gray Drug Stores, Inc.

for

City Bank of Cleveland

Iron

and

Steel

that

steel

the

an

the

op¬

companies

entire

the

1954,
tons

equivalent

of

castings

ingots

as

to

$1,-

and

steel

compared

with

National Screw & Mfg. Co.

82.1% (revised) and 1,958,000 tons

Perfection

a

Stove

Company

U.

S.

Truck

week

ago.

The industry's ingot production

Union Bank of Commerce

rate for the weeks in

Lines, Inc.

based

on

as

of Jan. 1,

For the like week
the

rate

was

a

weekly

now

of 124,-

1954.

month ago

79.3% and

tion 1,892,000 tons.
actual

1954 is

annual capacity

330,410 tons

Statistical Information Available Upon
Request

produc¬

A year ago the

production

was

1612 Union Commerce Bldg.

Tel. MA 1-6800

placed at 1,900,000 tons

Cleveland 14, Ohio

Teletype CV 67

The operating rate is not compare
able because* capacity was lower




;than capacity in
-

Cleveland

industry

of 81.5% of
week beginning

average

for

Dejc. J.3,

m

of

of

be at

capacity

Company
Heintz

will

Company

con¬

96.1% of the steelmaking

eapacity

Company

Jack-&

Company
Cement

M. A. Hanna

Harshaw Chemical

Company

Alkali

Fibers,

Supply

Company

Diamond

Glass

Cleveland

rate

up

hopes

announced

erating

come

or

—

On the

TRADERS AND DISTRIBUTORS

product mix.

Wm. J. Mericka

Small

57.

reported in the New

it
a

or

84.3%.

1954. The per%
centage figures forr last year1 arer

and

to 23 from

concerns

failures

trucks

and

increase

In

and

of

faixjng businesses had liabilities in excess of $100,000, as com-

cer¬

is

not

were

weak point in

situation, it
requirements

in

oi

week, they

a

of

healthy market in steel is a
tainty over coming months.
fact, if there is

qa

increased slightly to 34-from 31 in

tne previous

however,

automotive

towering

MARKET

iatest

the highest

while

OHIO

way,

zine.
At

IN

big

a

strong demand for finished steel
products of ail kinds will be as¬

YEAR

MUNICIPAL AND CORPORATE

SPECIALIZING

in

on

While small casualties, those

55 and

vious week.

con-

ago.

pared with 13 a week ago.
•
78,282 cars or 13.4% above
Wholesaling, construction and
preceding holiday week, ac- comrr,ercjai service had heavier
cording
to
the
Association
of
mortality during the week, with
American Railroads.
the toll among wholesalers up to
Loadings totaled 661,797 cars, a 30 from
21, among construction

troduced

s^eel

more

190 last week, yet continued above
the 180 of tnis size recorded a year

4, 1954, in-

industry provides the largest s ngle outlet for steel, it follows that
should the new models being in-

the

■

from

189

to

^he

the
week, ended Dec. 10, 1954,
according to "Ward's Automotive
Reports," assembled an estimated
171,588 cars and trucks, compared
with 166,715 (revised) in the pre-

produced
suined.

dipped

the

stems

largely from re¬
sumption of large-scale automo¬
bile production.
The more autos

Exchange

and

week

over

.

the

i.

■

liabilities of- $5,-

with

more

or

creased

in

There

fact

Cleveland 14, Ohio

Member: Midwest Stock

No¬

surpass,

vember's,
a

Union Commerce

slackening,

Decernber output

are

equal, possibly

may

Olderm,\n, Asbeck

slow¬

some

ing down in buying and operations
over the Christmas holidays.
But,
expectations

constituted
kwh.
previous week
of 1,185,000.000

Holiday Week

pressure

rises in step with
deliveries. The im¬

tonnage

f

000

13/7 % over the comPar~ involving liabilities under $5,003,
,,,oclLr
1 7n« nnn nnn

steel

on

consumer

as

lengthening

1953

1939.

234,000,000

the

How¬

mortality remained 25% be¬
the prewar level of 297 in

Failures

„

week.

books

or

1Q(-Q

low

output

of
of

increase

an

kwh.

Orders

that

as-

a

"Steel," the week¬
ly magazine of metalworking, the

mill

week's

increase

above

\hrouPh \hefirst" quarter ox kwh<>
uarterof
mrougn me iirsi

next year, says

ever,

consecutive week.

second

occurred, but they, ex¬
considerably the 1952 toll

of 157 for the similar week.

the

to

216

ceeded

Edison Electric Insti¬
tute. The above figure represented
a
fresh all-time high record for
ing

an

Relatively high level steel op¬
sured
surea

when

9,846,000,000 kwh., a

at

all-time high record, accord¬

new

Output Scheduled To Show
Mild Decline This Week

>

slightly heavier tnan a year ago

ended Saturday, Dec. 11, 1954, was
estimated

Biadsreet,

&

Dun

Inc. report. Casualties were only

indugtry for the week

pQwer

peak of 3,117 the week pre

a

vious.

to 223 in the week

up

week,

ceding

energy

r/ramdsetigat 3,150 units, compared ^
disVributed "by
gram set at S unLTomZed
to

edged

ended Dec. 9 from 221 in the pre¬

Week

electric

of

amount

The

Past

the

Slightly

Commercial and industrial fail¬
ures

High

New All-Time

a

Record

for

heading

was

trucks last week.

Upward

Output Extends Gains to

Electric

3,804' cars and

out

Business Failures Turn

547,473 tons as of Jan. 1, 1953.

the past week.
Cadillac

692

Canadian

estimated

plants turned

annual capacity of 117,-

on

172,706 units were

out.

"Ward's"

IBA GROUP CHAIRMEN

1954

Thursday, December 16,

1953, when

2,

5

page

...

UI.T0N.

REID &

—

CV

565

1-5050

<•

Number 5386

"olume 180

..

The Commercial and Financial Chronicle

.

(2563)

111
-jr-

ther

hand, mortality was lower

the

n

Pacific

declined

oil

he East North Central with a dip
29 from 32. Casualties exceeded

o
r

equaled the 1953 level in five

f

the

nine

major regions, while
regions showed mild de-

ther

from

reases

a

week

and

80

from

67

the

where

States

to

smaller
a

Trends

Price

the

at

of

Slightly Downward

and

the wholesale
index, compiled by
un & Bradstreet, Inc., eased
off
lightly the past week to stand at
Dec.

on

ith

$6.85

arked
6.65 of

a

Thus

7.

2.7%

of

year ago.

Individual

compared

timates

The

hogs.

index

,

advances

ral

■

.

.

the

sum

and

in

meats

31

gen-

its chief function

and

use

is

show the general trend of food

o

the

prices at

wholesale

level.

Wholesale Commodi4y PrPe Index

egisters Mild
But

Decli"**

Year

A

week. The index finished at 277.83

7, comparing with 278.02

week earlier and with 276.07

the

corresponding date last

on

year.

Grain markets in the week just
nded
continued
irregular with

grains encountering consid-

most

rable

market

the

fairly well
Help¬
ing to. sustain values in the yellow
up

under the selling pressure.
cereal

reduced

were

ferings,

colder

ivestock

ket

and

weather 'inv the

Great Britain, Hol¬

Austria.
dull.

was

at times

of¬

feeding belt and export

business with
land

country

but

The

Prices

developed

tone late in the week.

quiry for

oats

at

rye

was

slow.' Despite

ward
main

bearish

belief

held

influence

by

would

show

1

prediction of 13,206,000 bales.
Private estimates
as
of Dec. 1 indicated a yield of
between
13,259.000 to 13,503,000

textiles and
of

rate

reduction

a

government

of

the staple in the'14 spot
markets continued in good volume.
Volume

Week

But

Like

From

Year

Export in¬

Per'od

in

the

sea¬

Chicago

soybean
Board

of

Trade increased sharply over the

previous holiday week,

but

the holiday

unchanged from

expected
year's

to

a

year

high of 1952.
Extensive

were

shopping

greater

be

close

and

Only two and
to

a

he sure—hut

half
we

years

than

the

to

is
last

all-time

food

in

first six months of 1954,

ON

we

our

last week

ALL

ably higher than
Automobile

acted

as

seven

If your

branches in this 30 month

the

a

while

models

year

Our service
coast

to

New York

•

Philadelphia




•

JH*

*

*

CLEVELAND,
Johaneen

&

is

O.—William

now

Simon,

Bidg.

.periods.•

with

dealers sold

some

discount

at

discounts

The

1010

than those

models

at

•v*

A

/v

THE FIRST CLEVELAND CORPORATION
MEMBER

this

made

time

MIDWEST

E.

EXCHANGE

6th

CLEVELAND

BLDG.

14
Teletype

Telephone

new

on

STOCK

CITY

Bell

PRospect 1-1571

System CV 443 & 444

new-

last

year.

Dealers offered easier credit terms

than

a

year ago.

Increasing optimism of the busi¬

community

ness

healthy

V;

v

V'/C,./*"'

reflected

was

wholesale

period' ended
A

buying

in

in

the

Wednesday

on

Field, Ricliards & Go.

of

'
7

' '

-v-

most major lines were

equal

to

those

above

or

more

ESTABLISHED

1908

the

of

preceding week and retailers

were

disposed to build¬
inventories

the

Federal

dex

for

1954

than

the

sales

store

Reserve

advanced

from

1%

27,

registered,

similar
same

period

Dec.

the

4,

from

that of

1953,

and

the
the

held true for the* four weeks '

4,*1954. For the period

Jan. 1 to Dec. 4, 1954, a

firnu—a s?hort lime,*,

we

loss of

lg%

t

example, in

financial institutions, dealers

through the establishment

a

firm with

shall be happy to hear from

you.

Exchange

Columbus

•

Detroit

•

San Francisco

Municipal & Corporate

■

Securities

-ti
&

lik£

no" change

1954,

in

Of

a

im*

Board's

ended

week

on

taken frtifm

as

period last year: In the preceding
was

Underwriters and Distributors

this time.

country-wide basis

our

to

Euclid

,

SECURITIES

L;

*

prices, the
considerably

were,

smaller

M.

Ross, Bor¬

MUNICIPAL and CORPORATION

at

were

BUILDING, CLEVELAND 14
Chicaga~

For
_

NATIONAL

FRONTS !

coast

wealth of individual investment experience,

COMMERCE

'

Ross, Borton Co.

(Special to The Financial Chronicle)

Underwriters and Dealers

ago.

period.

Member Midwest Stock

Joins

_

BAXTER, WILLIAMS & CO.
UNION

1953

high level of last week

same

and

was

a

portfolio requirements indicate advantages to he gained through the help of

initiative and

the

coming
total
consider- '

underwriters, dealers and distributors in 53 Issues

and individual investors has been extended from
of

0f

,

purchases

achievement belies the brevity of this span. For

aggregating $1,667,704,000 in principal amount.

reported.

_

Co.,

Building.

re¬

the index advanced 1% from th^t ton

Television

the

buying

ended Dec.

~

promotion

have passed since the founding of

believe

v

Securities

Bank

soar..»

J4*'-

GOING STRONG

was-

-•»*

Fidelity

similar

Pen°d Jan- 1 to Dec. 4, 1954,

ap-

in the past year,

week, 'Nov.

December'sv total

the

As

last year at

A

ago.

son.

on

festivities

weeks.

ing .substantial

approached, but retail vol¬

was

was

the

of

National

27,

m

Department

as

of

that

P.

added to the

Latest

period ended Wed¬

ume

and

for

Ago

season

es¬

In

Unchanged

Consumers increased their pur¬
chases

increase of 2%

from

Hyman

—

has been

Silverman

year.

Nov.

week,

Financial Chronicle)

Colo.

*

generally

Rises

Holds

to The

DENVER,

previous

slackened.

bright with moderate amQurtts.rie*.v?last week.

Trade

»

slightly \ last
week
as
housewives
began
preparations f

the

ported sold tor Japa»> Franqej^qst
Germany and
Spain.

reacted

grain

in

entries.

loan

(Special

Food stores increased their s^les
volume

The outlook for exports continued

sales

wear

f. -y:

reports of sluggishness

were

an

While the demand for «mall~ap-

sales continued, to

Other factors in the down¬

heavy liquidating sales and prices

Trading in

increase

marked

a

the Nov.

over

nesday of last week

futures

traders that

many

the next government crop forecast

disappointingly

highs for the

the

was

period of last

preceding

plia^ces Was heavy, that for major

retail

prices trended
down¬
throughout the week. The

active flour buying

new

for

years.

early, in the week, wheat met with

tablished

close

lows

Cotton

mar¬

sharply from recently

Hog

the

at

new

increase of 1%

higher level than last week and
slightly above a year ago.

con¬

volume.

firmer

steadier

a

hogs

an

buying of gifts, sports
and furniture was at

appliances

660 Seven¬

Fidelity Sees. Adds

City for

ended Dec. 4,

a

-

R.

Bosworth,

Co., Inc.,

staff

the

crease

in- the

as"

The

equipment

buyers

convention

of

liberal

nearly two

popular

week.

was

after

selling

children's

&

Robert

—

with

Street.

First

In

in

Lard

receipts

in

weekly period

+1;

true

ran.

Colo.
now

Re¬

department

York

New

1954, registered

dresses, furs, accessories
coats sold well, and the defor

Federal

the
index

teenth

apparel sales are al- week id 1953, while for the four
and the first week 'weeks ended Dec. 4, 1954, an in-

month

the

so

actual

as many

annual

industry

Market

weak

were

showing

the

to

sales in

above the like

proached srseasonal high. Men's
apparel, excepting shoes, was not

Florida the
irregular
and slightly higher at the close
aided by the unexpectedly small
increase in lard stocks reported
during November.

in

prices held

the

before.

week

turn

Corn

quiet

was

attended
of

in

Business

the

-f 1 to +5.

heavy,

mand

Spot coffee prices worked lower

week, with roasters

store

corre¬

to

Board's

1954,

and

little interest in anticipating their

pe-

iod.

from

.

last

According
serve

es¬

Holiday

87,437 last week and compared
with 54,546 bags a year a,;o.

bales.

liquidation during the

bags,

the

is

promotions, trade observers report.

above tne

from

—3

December's

cocoa were

89,221

to

values turned

daily wholesale commodity
rice index, compiled by Dun &
radstreet, Inc., continued in a
narrow range last week at
slighty below the level of the previous
Dec.

slightly

Coast

London

the

cold weather and unusually heavy

ported

sympathy

in

in

this

ways

tinued

Ago

The

n

quiet

trend

varied

Chatlain

re¬

Regional

year ago.

DENVER,

advanced

than

and South

manu¬

in

a

Bosworth, Sullivan

New

10% ahead of the simi¬
lar period in 1953 as a result of Sullivan

more

East,
Southwest and Northwest 0 to +4

of

w"ek

Higher Than Like Period

-

both

of

week

last

City

With

(Special to The Financial Chronicle)

in

volume

trade

of the

esti¬

was

beiow to 2%

2%

Pacific

market.

needs.

-

.

lepresents

foodstuffs

aw

the

by

importers

was

Warehouse stocks of

the prue per pound of

otal of

and

country

sharp

recent

of

York

sponding 1953 levels by the fol¬
lowing percentages: Midwest —2
to —6; New England 0
to —4;

somewhat

were

Buying

facturers

uo

flour, wheat, rye,
lard, butter, tea, steers and
Declines occurred in corn,

rants and

prices

following

declines.

with

barley, milk, coffee, cottonoil, cocoa, eggs, ra.sins, cur¬

ats,
eed

Co^oa

week

Retail

by Lun & Bradstreet, Inc.,

be

level

small.

steadier

last

over

included

eek
ams,

ambs.

mained

i

price

during

flours

large

invthe

trade

to

both

and
the

earlier,

week

a

rise

a

wheat

Spring

dollar volume

total

The

tail

mated

last week,

price

6.83

week-end

stantial purchases of both Winter

quirements for the next 60 to 90
days.
Export trade in flour re¬

Index

Following the steadying moveent

quiet
following sub¬

in the domestic market was

and small, cov¬
ered the greater part of their re¬

In Latest Week

ood

Business

week.

past

cen¬

however, department stores
did not show as significant sales
gains as did specialty shops. Night
openings were widespread.

the first part of the week, as buy¬

year ago.

Food

the

registered from that
1953 period.
was

ters;

prices moved moderately

higher

shoppers from sub¬

many

stores into downtown

urban

year ago.

Flour

ers,

Wholesale

brought

corresponding

thart& the

Minneapolis

*

1556 Union Commerce Bidg.
CLEVELAND 14,. OHIO
Telephone PRospect

1-2770

Teletype—CV 174

1707 Union Central Bidg.

CINCINNATI 2, OHIO
Telephone Main 3776
Teletype—CI 197 & CI 150

/

112

(2564)

The Commercial and Financial Chronicle

v///////////////////////////////^

Continued

from

15

page

Thursday, December 16, 1954

...

ceived

CHAIRMEN

will

The SEC, the Congress and
The Securities Industry

PACIFIC

CALIFORNIA

ROCKY

MOUNTAIN

NORTHWEST

the

Securities

and

the

Ex-

construed

the

about securities being issued and
traded.
The amendments, in the

ment.

words

of

the

Senate

acts."7

operation

Committee;

"The

.

0.

American Trust

Jerry Jorgenson

Peters,

Writer

John

&

J.

ciate,
been

Company,

Christensen, Inc.,

San Francisco

describe

now

Be

Reynolds Partner

Will give you a
pen

/^Reynolds & Co., 120 Broadway,
New

York

New

City,

York

January

1

Gardiner

members

Stock

will
to

of the

Exchange,

admit

larly

A Point for You

on

Robert

partnership.

But he

rings

M.

if

and

St. Paul

call

you

the till

up

When you want

Which

in

a

sell

you—or

give,

if

stall.

you

department.

heimer-Egan,

Inc.,

Mann-

First

Na¬

tional Bank Building, St.
Paul.)

Joins
'Special

SAN
D.

about

20

The Financial

has

become

Stewart, Eubanks, Meyerson

York, 216 Montgomery

Street,

members of the San Francisco and
3Los Angeles

(Special

affiliated

Stock Exchanges.

to The Financial

Chronicle)

W.

has

G.

all

the

Co.,

:

3607
was

has

become

tended
few

of

West
pre¬

viously with King Merritt & Co.

to

for

the

f

good

result-

and

statement

is

by

must

to

the
And

proved

and

1954

if

with

sale
hv

of

instrumentalities
surh

rommerre

3

jn

the

tal

to

a

with

become

tn

in

prescribing

s

n

m

1IcoH

H

T,

these

from

m

i?,

r

v

J+u
p
ring the wait•

T* f0t ^ntended

amendments,

the

THE OHIO COMPANY




that

public
of

lating to

a

of

ment.9

'

Y-'

r"/'

*•'

<

V

?

*

>

fe:

%

,

j.

<*

..

»

\

V.

v

•

•

HIGH

^
.

more

^

....

,

Provides
simplified
proc«<?ures for registration of securlties of investment companies,

the so-called
So

mutual funds.

much
you

for legislation.
I am
realize from what I have

f*

3M

.

.

Other

Relations With

There

are

other

Congress

areas

which

in

the Congress is involved in

prac-

tical problems with the Commissjon
j wjjj discuss two of these

briefly. :
.

H
,

a

,

number

.

of

.

..

..

the

the

Commission

ma,a.e- Dy

nursu-

,SSlon PUrsu

have^dfot^ltlrenTofspe!
amePd-

legislation. The l936

> ments

TruSt

to

the

Exchange

Indenture

Act

tl'Ckruptcy

Act

Chapter

free

drafting

new

^o imtfle

rules

thesl nrovistens
thrfq^
amendments a^d ha* alroaHv rI
ment

of

amendments and has aIready
ioh.

Sess-»

re"

r.

Rep. No. 1542, 83d Cong., 2d
(1954) pages 7-9; Sen. Rep. No.

2°&6,383d Conff-' ld Sess"' (1954)

Pases

Investment Company Act,

are ex-

investigations and studies made by
the Commission under express
statutory mandate. The reports of
the Congressional Committees ih
connection with the 1954 amend11 H. R.
Rep. No. 1542, 83d Cong., 2d
Sess., (1954) pages 10-14.
^
^

re¬

concerning

a

fear

of

Bonds

new

in¬

issue

issuers, underwriters,

prospective

¥ *"*W"

State and Municipal

many
of

7 Sen.

purchasers' might

be

ST. COLUMBUS, OHIO

Sess.

:£j-

Rop.

(1954)

No.
p.

,

Braun, Bosworth:& Co,
v

R.

Doc.

Sess., (1933)

83d

Cong.,

2d

1542, 83d

No.

pages

85,
7

&

73d
8.

Cong.,
Cong.,

2d

1st

Incorporated

Municipal Bonds

2.

8 H, it.
Rep. No.
Sess. (1954) p. 6.

9 H.

1036,

X

amples of legislation flowing from

The

nrpcontiv

j

securities

flow

the

AcL

state¬

for

j

investigations

.

(low from the amendments.
commission is

t

5V N.

feeenU required,

heretofore

of

by

dealers, not to mention their
lawyers, that communications to

—

*.,

r

of;, certain

in¬

facts

registration

However,

and
.

nros-

tr,°

in fact, restricted because of

was,

the

s'

the

formation

distributors

\

d by tbe Com"

proposed issue of new
before the effective

that

years

'

become

essential

industry had contended

underwriters

••

from

information

would

the

securities
date

i'

i

te

n a

Summaries

during the 20-day waiting period
the

formed

s'

of

i

m

.

Sfective 'Tree-wrmn^"rdoesPno"t

legislative

intended

Commission's

'

^UZTc
have notTeen^file'd ciUe
i10.1 b,t „flled

,

a"d

Act that

Congress
dissemination

'

r

t

the

the

the

maemure-^myisions .ywmen

have

t

?yd sa,e

effec-

history of the Securities

ran

r,

however,
.
.
rle.Acl S(> as to permit the use by lssuers and under-

..

Clear

'■

indenture- Provisions'Avhich*

1

t

The seller of the securities
deliver to the purchaser a

IS

trust

amendments

nwmm.ik.

ho

J

"g

by

the
the

thaTTs3 TrM oilers withirv* the
is,
oral
Mfe'Ps^wi'thi^the

It

.

of capi-

gi^e the; Commission
i
nrnLpp

frv

•

prospectus containing a summary
of the information in the
registration statement.

•»

the

Clarifies

pectUses

-lti

a11qpc

tnat

v.

ex-

on

15V E 1 i

over

mom®1

process

the

Commission

shorteform

the

interstate

filed

can

securities;

.,

•

fhd

interstate

the

as

oi

completed

dealer

custiufecredit

a

rule-making authority-on "when^ -vv

prac-

the form of
prospectus which

Oral, offers prior to effec-

must

time

sure

Furthermore,

security to
nr

months

issued" trading;

piovide greater flexibility for

the

unlawful

mails
n^aiis

of

curity has been
Commission
and

state.

issueVi^been

„ew

SidSy ^ and^
general public
'

the

important

untU the regisUation
statement with respect to the se-

*1

^

days.ttfl^istribution- of

(4)

formation

nrm

im¬

before

than

more

Reducesl4tep«> six

30

new

moment

a

in

£TV'

/q\

the

present law.

suSS®sl®a

telephone,'
tive.

a

nave aeveiopea over

sueuested

information

thS$fsts

(3)

to

an OVer the
country will have a
greater opportunity to participate

i.„

have

made

the
me

by

•

during

transactions;

the

months;-

a

been

^aaiectus used

a

to

of

deliver

oIfering

.-

be

year

neriod

must

trading

required

larger segment of the investing public and smaller dealers

which

hoiro

it

Act

amendments
or

for

in

one

securitjes has

Simplifies

administrative

urifu

Securities

nublir
puoiic

(2)

any

developed

from

the

a

corporate

offer

«,

distributed

dis-

morality, ac¬
counting standards, and standards
relating to business information
generally.
The

work

of

made

may

distribution

dealers

pectuses

changes

of"informlttoi Dermitte^bTthe th"x Pfrmittin2 simplified,

by the Commission of

fil/w
filed

r^ow.-ai
material

have

under the

I

as
+

the

the

c

years

cPfnri

transactions

and

which

lu

issue

tend,

not

the

pros-

follows:

as

after

which

•

specific, authority

tices

issuer's

of

do

in

and

amendments

Reduces

to

.

technical

^

new

so,as^.not to

-

af-

Securi-

made

not

or

statement

/p

it must be apparent from-what
have just stated, that the 1954

give

substantial

a

-

the

by

any

1933, and will not
liabilities for state-

made

these

4(j

to

have
<

.

'

amendments

public

penal

not stand

mation

the
ine

.

period,

of

the

summarized

their- conduct-: during

waiting

the

to

generally

now

investors

Act

by

with

prior

will

he

Summary of Amendments

Issuers,-under-

dealers

than

Other

fundamental change. In fact, they

offering,

requirement

sale

pre-effective dis-

pectus.11

make contracts of sale before the
registration
statementbecomes

rmhlir

a
a

proposed

itself

processing

the

and
...

I

light of day.
imposition of liability for
maccurate and incomplete infor-

Columbus, Ohio

..

the

a

of this under stern statu-

deterent

Huntington Bank Building

writers

great
that the

make
make

of

amendment

regulate

The

INVESTMENT SECURITIES

this

in

underwriter
and
ana

the

rSSThis

would

produced

fact

its

and

civil.

CO

contract

or

un-

fears

of

information

accurate

investor

pre-

filed

prospectus

relieving

dealers

in

per-

a

conform

by

and

with

registration

offers

of

means

the

tribution of written material, will
make possible
dissemination of

ments

the effective date of the
registrais not changed
by

law.

concerning the
finances
ifs

business

ties,

the

forward
torward

romp
come

the

came

from-the

closure

&

by

such

will

information

connected

tion statement

securities

m

to

provided

made

sale

is

in-

to

offers

waiting period

liminary

...

of

concentrated

Securities Act

Interstate

on

present practice,
greater dissemination

derwriters

change

the Commission prior to its use.
The
long
prohibition
standing
against the making of an actual

inves-

country

issues

be

a

the

to

encourage
Gf

ties

period

are

the

haying large capital effective.
Briefly, here is how tl.e

measure

*?ry

CARTWRIGHT

waiting

more
effectively
Accordingly,
under

written

cities

and'all

SWENEY

the

statute

sell, and
buy dur-

are

amendment

easier

the

over

new

Committee

*

forded

wide-

a

been

missible,

effec-

normally

The

it

in

report

the

receives, will not take away
Gf the protection heretofore

has

years

ing

for

prospectuses,

changes

C.

staff

Magnolia Boulevard. He

the

over

solicitations of offers to

wider

.

in

lssuer

joined

Nielsen

permit

period

make

ine

u-;.

BURBANK, Calif. —Grover
Fillbach

not

1954,

whose distribution has up to now

Wilh W. G. Nielsen Co.

Chkonicle)

se-

of newspaper ad-

days

maikets.

FRANCISCO, Calif.—John

Lynch

with
&

Stewart, Eubanks
to

it

This

.

cate

Commission

objective of

during

these

securities, particu-

use

before

vest

Mannheimer,

of

the so-called waiting period after
the
registration
statement
has
been filed with the Commission

tors

(William

the

had

more

prospectuses

form

greater

should

Mr.

Gardiner is manager of the syndi¬

the

^on

vertiSements, particularly during

but

refill

of

short

fve.

heTll

and

spread dissemination of informa-

■

Federal

first

will

offering

issues

new

the

The

amendments

the

more

more

customer to appre-

a

the Securities Act, as amended

of

laws.

use* of

Bill Mannheimer out

the

achieved.1*)

curities

Robert Gardiner to

in

that

"dissemina-

amendments

Spokane, Wash.

briefly

in

out

the

of

state-

detail the provisions of these 1954

Denver

,,

;

'

recognized

concerned

because

.

will

I

Hasfurther

B'ytli & Co., Inc.,

pointed

the

effective

registration

between

difficult for

amend-

«

Lester H. Empey

industry
rules. I

such

Foreign Commerce of
House ' of
Representatives,

tion of information" and "offers"

these

acts." a

the

offers

the

is difficult to draw and still

fully preserve the basic
philosophy and purposes of these
.

of
and

In

distinction

And, in the words of the

House
ments

of

of

-

illegal

before

committees

de-

expense and complexity and
result in more efficient, effective

realistic

for

these

minutes.

As

formulating the 1954
amendment,
the
Congressional

Committee,

unnecessary

be

to

security

date

lay,
and

to

amendments

Act

change Act of disseminating
broadly to the public information

will also "reduce

refer

few

of

suggestions

representatives

IBA GROUP

;

Toledo

-

New York

-

Detroit

-

Chicago

-

Cleveland

-

Cincinnati

Number 5386

Volume 180

interesting in this

are

izing rules "be given more defin¬

con¬

consideration."**

itive

Senate

This is from the

nection.

The Commercial and Financial Chronicle

...

there

And

(2565)

consideration

active

under

study at the Commission.

and

service

in

connection

with

work-

transactions, has been suggested
as to give relief from the
popu¬
lar interpretation of the opinion

ingout the formulation of rules in

<

so

'

Committee:

-J^«-■'••;V .■;•:

are

result

a

acts

committee

Your

legislative

instant

represents

other

areas

Commission

concur

this

at

time

is

to

the Commission

some

and

other

few

is

example

respect to which
the

of

minutes.

has

Association

of

Securities

indicating which
involve rule-making
functions, with re¬
spect to which there may be dif¬
ferent procedural safeguards spe¬
cified by the Administrative Pro¬
cedure Act, it is clear, that cases of
the kind I have just mentioned
are either judicial or quasi-judilicensing

or

cial

Securities Act which I will discuss
a

Commission

of these may

power

regulations, in

Congressional
Committees
may
a particular interest.
An ex¬
ample is the proposed rule de¬
signed to give effect to the socalled
"brokerage exemption"
provided by Section 4(2) of the
in

violation of the

a

the

Also,

tional

of which from time to time

detail

revok¬

Dealers. Without

take

in

Exchange Act the

enters orders

appellate jurisdiction over certain
disciplinary actions of the Na¬

are very many pro¬

to make rules

en¬

suspending or stopping
a
registrant's securi¬

because of

Act.

visions of the securities laws dele¬

gating

Under the

or

ness

of its experience."18

Also, there

in
or¬

suspending a broker's or
dealer's right to engage in busi¬

sion proposals on matters
out

of

Under the

ing

Commis¬
growing

incorporate

sale

Commission

tends to draft further amendments

will

power.

-

ties.

not

willing to recommend legislation.
Subsequently the Commission in¬
which

quasi-judicial

or

affecting particular individ¬
uals or companies.
For example,
under the Holding Company Act
,tbe Commission enters, orders per¬
mitting applicants or declarants to
engage in financing transactions
which comply with the standards

the

dicial"

de¬

of
is

"ju¬

"quasi-judi¬
to define

the distinctions among "rule¬

and

Exchange Act gives the
rule-making author¬

is

is sometimes hard

cial"

a matter with
Section 9(a)(6)

what

and

line
what

between

marcation

An¬

The

nature.

in

The

making," "initial licensing" and
"adjudication" involve different
procedural consequences under

Subcommittee of the House Inter¬

the Administrative Procedure Act.

Commission

ity,

namely

state

"stabilizing."

;

Foreign Commerce
Committee, speaking in the direc¬
of "an early promulgation of
rules" by the Commission or con¬
sideration of further legislation by

Turning
of

from

the

Commission

the

gress,

the

relationship

to the

Commission

relationship
to

the

securities

the

to

Con¬

of

in¬

dustry, I will now mention briefly

Congress, suggested in Decem¬
subject of stabil-

four

ber 1952 that the

important rule-making mat¬

ters in which the

industry has

interest and which

12 Sen.

Sess.,

makes

Act

the

Rep. No. 1036, 83d Cong., 2d
(1954) page 2.

are

an

commerce,

interstate

facility

of

member of a national
exchange to effect
either alone or with one or more
any

securities

other persons any
actions

the

for

sale of any
a

series of trans¬

purchase

and/or

security registered

on

national securities exchange for

pegging, fixing,

the purpose of

or

neces¬

as

appropriate in the public
interest or for the protection of

sary

or

investors."

this

Under

tion X-9A6-1

provision

Regula¬

adopted in 1940

was

is limited to the

and

area

narrow

of

stabilizing the price of a se¬
curity traded on a national secu¬
rities exchange to facilitate an
offering at the market or at a
changing price related to the
changing market price. The prac¬
tice applicable to a fixed price of¬
fering has been embodied in a
number of interpretations; some
which

of

contained

were

in

re¬

leases, but most of them rendered

letter or tele¬
phone, case by case. Thus the vast
bulk
of
day-to-day
stabilizing
individually by

transactions

connection

in

Commission rules,

bold

familiar

the

with

.

•;

■•vi:

V--

.-

;

»

j

7

•

«•••

•"

•

,

• •

7*

»v.4

disclosure

of

stabilizing

were

and

novel that

no

problems

'v

BOND DEPARTMENT

...

"

built up,

CINCINNATI 2,

OHIO

PHONE CHERRY 6111

the

Act

registration

exempts from

prospectuses

SEC

in

but

of

In

the

the

such

was

Securities

Act

intended

in¬

Ira

Commission

to

in

the

case

of

Company (23 SEC
589 (1946))".18 The Senate Com¬
mittee however, did not include
an amendment of Section 4(2)
in
its bill.
The
Committee report
Haupt

&

contains this comment:
"Your
vised

committee has been

ad¬

by the SEC and by repre¬

sentatives of the securities indus¬

for

certain

18 Senate
p.

Hearings,

p.

4;

con¬

which

a

was

that the

also

volves

such

knowledge

d i

a

his

the
s

person,

constructive

or

of

effecting
of

.determination

a

controlling

actual

the

to

tr i b

broker,
u t i o n

holdings.20

It is the feeling of
sion

For

the

of the rule, distribution is
not applying to isolated
by controlling persons in

defined

sales

as

to

substantial

not

amounts

tion

the

in

rela¬

volume

aggregate

Once

again,

many

received

were

in

and

comments
order 'th

bring the matter to a head, the
Commission held a public hearing
in July.
After carefully consid¬

ering

all

the

views,

Continued

suggestions

on

page

House Hear¬

Sess.,

No.

Rep.

(1954)

page

20 Securities

14.

Act

1036,

83d

Cong.,

7.
Release

No.

3501.

Seasongood €r Mayer
INVESTMENT

SECURITIES

★

Established

1887

law.

place.

★

the Commis¬

stabilizing should
rules and regula¬
tions, published and available for
all to see. Accordingly, after 10

204

Ingalls Bldg.

CINCINNATI 2, OHIO

by

intensive

study

by

our

of this year the
Commission put out for comment
proposed rules X-10B-6, 7 and 8
under the Exchange Act.1*1
The
in

of

May

deals

these

with

under¬

trading prior to and dur¬

MUNICIPAL BONDS

distribution. The second
the times,
methods and

the

stabilizing trans¬

which

at

may

covers

with

be made and
distributions in
which

the

the
con¬

partici¬

pants purchase rights, such as the
so-called
"Shields Plan."
These

by industry rep¬

resentatives in the
the

light of which
a
public

held

Commission

July.
Thereafter all
appeared at that hear¬
ing and any others interested were
hearing

in

THE W. C. THORN BURGH CO.
Union Trust Building
Cincinnati 2,

Ohio

those who

invited to form
and

ber

of

summer

mittee.
rules

our

an

ad hoc commit¬

staff has had

a

num¬

during
the
and fall with this com¬
A revision of the draft
conferences

has

been

completed, taking

into consideration all of the com¬
ments

This revision

received.

we

hope will be again discussed with

CINCINNATI

BANK STOCKS

the

within

Committee

few weeks.
that the

It is

rule

our

now

as

the

next

earnest hone

revised will

inter¬
pretation and will prove adminis¬
tratively feasible both from the
standpoint of the Commission and
represent

POHL & CO., inc.
414

CSNCSNNATI,

Dixie

OHIO




Terminal

BIdg.

MAin 6515

sound

statutory

the securities industry.

A number

of lawyers, members of this asso¬
ciation, have rendered invaluable
15 Securities

16 Securities

Act

Rule 426.

Exchange

Act

Rule

X-

17A-2.
17 Securities and

No.

5040.

Exchange Act Release

114

brokerage

so

over

of

trading in such security.

today that the Commission's

asserted

is
of

purpose

19 Sen.

ings,

under

much

try that an amendment to Section
4(2) of the act, which affords an

exemption

rule

a

and

whether

"restore" the brokers exemption
provided in Section 4(2) "so as
to give relief from the popular
interpretation of the opinion of
the

the

pro.posed amendment
designed to make clear
availability of an exemp¬
tion under Section 4(2) does not
turn
solely upon
the
question
whether
the
selling stockholder
is
a
controlling person but in¬

ment;,,

proposed amendment of

a

with

study during the
early spring, in May
the Commission put out for com¬

legislative proposals

which I referred to earlier

such

After

re¬

solicitation

the

has

winter

the open or counter market,
not

rule which

a

effectively

sideration.^"19

quirements of the Act "brokers'
transactions, executed upon cus¬
tomers' orders, on any exchange
or

deal

problem and understands that the

the

and

will give favor¬

com¬

common

This process has taken

tee

MUNICIPAL BONDS AND

Securities

of

case

in

draft rules received many and de¬

Bank & Trust Company

Secu¬

Act which gives life and
body to the brokerage exemption
provided by Section 4(2) of the
Securities Act. Section 4(2) of the

by case, over a pe¬

case

riod of time, like

tailed comments

Provident Savings

will

rities

prehensive rule should be prom¬
ulgated until experience had been

third

;»

the

that the SEC

able consideration to

so-

the

(23 SEC 589
Your committee is hope¬

(1946)).
ful

in

Co.

&

other than the

face

that
stabilizing
may occur15 and the requirement
that stabilizing transactions be re¬
ported within 24 hours16
The
Commission's policy in the past
was based on the feeling that the

nection
•

under

154

Commission

Haupt

prospectus

actions

**v,

Rule

our

the

public offerings of securities
been the subject of any

new

levels

;v

called

which

have not

covers

"

has under consideration is

cluded

prescribe

may

ing

MUNICIPAL BOWS

process.

to the securities
the Commission

which

industry

mission

price of

the

writers

;

is of importance

such se¬
curity in contravention of such
rules apd, regulations as the- Com¬
stabilizing

first

:7,-7 OF

capital formation

The second rule revision

orders."

months'

>

of

any

national securities exchange,

for

or

staff,

DEALERS and DISTRIBUTORS

of

or

presently jurisdiction

14 H. R. Rep. No. 2508, 82d Cong., 2d
Sess., (1952) p. 116.

any

indirectly, by

or

instrumentality

or

for

of the mails or any means

use

be

13 H. R. Rep. No. 1542, 83d Cong., 2d
Sess., (1954) p. 3.
v-'"---', A-CVC"AtA

"unlawful

it

directly

person,

difficult

and

tion

the

.

any

ters orders

not

does

juris¬

Securities Act the Commission

include
proposed in which the

and

.

..

specified by the Act.

with the

could

industry

.

ders

in which the Commis¬

sion felt it

,

which the Commission enters

authority

bill

[its]

administrative proceedings

are

as

also

The House Committee said this:

areas

within

dicial and quasi-judicial functions

basic int&nt of these acts.!*

"The

Ira

In this broad classification of j.q-r

deemed, .necessary to carry out the ?.

those

of

change Act.
Section 9(a)(6) of the Exchange

of

23(b)

judicial

expects that the Commission will
advise
with
it
concerning any
additional

field inherently complicated but

the

The Commission exercises some

mentation of the amendments and

experience under the

a

sensitive and vitally important in

diction.

expects the Com¬
mission, in its periodic reports to
the Congress, to advise concern¬
ing the steps taken in the imple¬
its

pro¬

zation of securities under the Ex¬

matters

Your committee

amended.

the

is

posed rules relating to the stabili¬

administer,

we

Section

amendments.

of these

these

of

for example
the Exchange

Act, which require the Commis¬
sion, in its annual report to Con¬
gress, to include "such informa¬
tion,
data and recommendation
for further legislation as [it] may
deem
advisable with regard to

committee, in accordance
with its responsibilities under sec¬
tion 136 of the Legislative Reor¬
ganization Act of 1946, intends to
keep itself fully informed con¬
cerning any practices developed
in the industry, and the proce¬
dures devised by the Commission,
as

first

The

the !

sections of

of

number

a

acts

"Your

113

Walter, Woody & Heimerdinger
MUNICIPAL BONDS
403

DIXIE TERMINAL

CINCINNATI 2

2d

114

(2566)

The Commercial and

Continued from page 113

of

case

listed

submitted,
for

which

the

in

revision

rule.21

had

been

Commission

comment

further

of

the

could

put

September

emption
tribution

defined

not

as

including

sale

a

of

terpretative

or

case

which together

other sales

securities

his behalf

on

the

of

approximately 1% of
outstanding.shares of the se¬
curity, in the case of a security
is

change

not. traded
with

and

on

an

respect

est

of

either

1%

securities

of

of

the

the

a

or

the

any

week

one

percentages

volumes
careful

vision

and

based

were

ag¬

number of

a

solution

of

exchanges

position

that

the

taken

exemption

volved.

very

made by our Di¬
Corporation Finance as

to

If

the

agree to

would

this position

mean

not

to

the years, appeared

represent

controlling

distributions by
There was no

on

figures

followed

ministrative

part

our

any

to

rule of thumb

or

21 Securities

Release

No.

decided

3515.

23

SEC

the matter of
589

Ira

represent

the

involved

Per-

dealers

<ProP°sal

tives

Second,
.trading
se-

fives

think,

exchanges

to

permit

pre-effective

of

industry grouos will, I
clearly reflect that there

r.

Clark, Badge to Admit

was n? misunderstanding on the
Part"either of the ^Commission,, or

industry_ that pre-jeffective
not

was

Exacts and Mortimer

free

intended

to

be

Permitted in the future any more
than it has been in the past.23
Finally, I would, like
elude on this note.lv The

to

con-

Acts

of

problern

of

years.

the

...

controlling persons. For the long
range, it is possible that this prob-

America.

lem may have to be dealt with

Sec¬

Haupt &

by-day-trading "trans-v-of the Commission^ over the past-

nomic

the

by

Congress.

Co.,

Listed Companies'

(1946).

the

ports

of

free

world

Reports

requbementj'wMclT
of

sales

gross

we

1953, that

quarterly
or

enterprise system in
political and eco-

This

system

today.

is

unique

It is at

re-

hardly

to

need

Carnot

the!

in

philosophy.

point..out

tic and communistic
which the

operating:-

-

means
„

systems

Recently, -this

has

been

partnership.
•

>

Mr.

Evans

is

V '

-

A

.

1

under¬

of

C. T. Williams & Co.

the

INCORPORATED

ouarterly

report
requirement.
Consideration is being given

United States Government

staff

our

Securities

would

by
problems .which,

tor the

arise

if

a

interim

new

INVESTMENT BANKERS

re¬

UnitetfcjStute.s Government

porting

requirement should be
I think I should say to
you, in line with the over-all pol¬

and

Municipal Bonds

adopted.

Bond Department

icy

the

of

present

ministration,

Union Planters National Bank

SYSTEM

made

investor
and

THE BANK

is

TELETYPE—ME 99

ments

*

can

a

the

"FIDELITY BUILDING

American

being adequately
the present annual

the

BALTIMORE

Telephoin^: PLaza 2-2484

not

by

of

Ad¬

case

Railroad, Public Utility and Industrial Issues

Private^Telephones

reoorting
require¬
Commission, cer¬

Branch

Office

I?:,? 'Bell

to

—

—

Bell

Teletype:

BA

1, MD.
499

New York and Philadelphia

Grymes Bldg.,

Teletype—ESTN

MD

Easton,

Md.

264

real question is presented
whether the Commission should

WIRE

a

require
mm

that

interim

tainly

—

out

protected

Memphis 1, Tennessee
BELL

be

national

unless

listed

companies

to

file

additional report.

an

,

So

far

the

as

accounting

pro¬

fession is concerned, there appears
be serious and substantial ob¬

to

Underwriters

•

."

jection
-JPECIAllJiNG IN'

Firm

Bids

Hj ARK /

quarterly reports of
The accountants say, in

ACTIVE TRADING MARKETS

substance, that you simply can't
properly reflect the operations of

A■

Distributors

to

earnings.

Firm

WITH RETAIL OUTLETS

a

Offerings

company on a quarterly basis—
too many things are estimates.

If!"

Tax

Dealers

Quotations
MUNICIPAL

BONDS

that

a

quarterly

conceivably
United

States

Government

Securities

•

General

Market

Municipals

lead,

report

misinform

rather than

Ppblic

and

Bank

Stocks

Utilities—Industrials

Municipal Bonds

&

*

-

Members

could

and

*

Irtsuranca

accruals, inventories, depreciation,
unusual nonrecurring expendi¬
tures, and the like in some cases
might distort a quarterly picture
so

Midwest

Stock

*

Edward L.

Kirkpatrick, Jr.

I

WIRE SYSTEMS—Own

inform, the in¬

t

Exchange

1

¥i

mis¬

to

Memphis

I

William Nelson, II

Office; Scherck,Richter Co., St. Louis,
M^.L Goldman, Sachs & Co., N. Y.

vestor.

Finally, I want to refer briefly
to

the

implementing rules which

the

Commission

ing

under
the

of

is

OF

8-5193

•

LD-311

•

LD-312

WIRE SYSTEM—THE




TELETYPES ME-283
BANK WIRE

on

received

now

consider¬

amendments

Acts.

Our

dark, Landstreet

staff

draft rules, and also
from

industry

rep-,

resentatives proposals of theirs. It
is hoped that the staff drafts will

MEMPHIS

MEMPHIS 1, TENNESSEE
TELEPHONES

is

1954

Securities

working

has

the

be

ready for Commission consid¬

eration
•

ME-284

be

soon

put

out

-and

for

that

public

during this month
ary.

I

am

or

these

can

comment

early Janu¬

not really in a position

n

|

5

dKirkpatrick, Inc.
4TH

TELETYPE

AVE.,
NV

353

N.
*

*
L.

NASHVILLE
D.

59

to

Man-

of the firm's municipal) bond

agex

department.

at the Commission because*
of objections by the financial ana.--

lysts' societies to abolition

w

Evans and Henry T. Mortimer

in
are

-xsr

study
'

ei

of the New York Stock Exchange

that

of production

.

Many times the trend of a cor¬
poration's quarterly gross sales is
contrary to its net earnings trend.

and Arkansas-

Evans

p

at the other pole lie the socialis" °" Jan- 1 wil1-admit Carnot W"!

revenues, the so-called 9-K report.

Mississippi —Tennessee

W.

Plo„.

Clark> Dodge & Co" 61 WaUl
Street, New York City, members

pole of

one

economic and political

.

listed companies file

WIRE

J

•

♦

writing

there, is

work, you are confronted by the?
Securities and Exchange Commis-I
sion ard the mandates of the Con-/

free writing was rejected. Asm y gress which the Commission is
of the testimony Igiven both by attempting to carry cut in the
Chairman Demmler of our Com- interests of the American public
mission and various representa- and the American investor.
\

>

v"

°f industry representathat-the Securities Act be

amended

tend

may work an urihardship'on small local*issues

abolished in the fall

LONG DISTANCE 218

issu-i

cannot-,-of .-course,. 20 ygars undes these.statutes has ■«..
promulgate-a rule, that wiJJ chip tremendously
improved*, and inaway or erode the-basic-legal prin- deecl-was of- enormous
influence.,
ciples - affecting, -distribution
by in restoring invested* eonf'denee in-

ad¬

many

OFFERINGS

Municipals

America

mission when we were advising
and consulting with the Congreslast sionaI Committees
in cpnnection ket of New York City to bear this
over-the-counter with formulation of the bill. The in mind when, in your day-to-day!
in

j

BIDS AND

which

the Trld today' 1 ask
lawyers who

you

Commission

the ..regional

briefly the

FIRM

in

era, underwriters, brokers, deal-;
ers, exchanges and other private
mterests in this great capital mar-

to render in-

over-the-counter

actions.

in

the position that to provide in the
22 In

Act

situation

able tot promulgate a.rule-which
..change ..Commission insofar as the
will. satisfactorily, deal with the securities
industries,.is concerned

ondly, the exchanges have taken

than

guide which

a

the

give these

emphasis

more

over

the

"free-writ-

Jtoday* it

precedents

persons.

Commission

intent

a

which

pre-effcctive

Jnfensely." The the Congress provide tha t the
Commission sincerely^ hopie^ to be "function.of the Securities and
Ex-

were

1946,

over

the interest of the public and th^
investor in our free economic andj

with

by the Commission

0UShly discussed with the Com-

feels that a.limitation to one'

whole

not

but

the

the

"

which

directed

themselves

two

of

comparatively
trading. In the. light of exobjections of industry
groups, we are still studying the

pro¬

perience

case,22

by the

filed

and

by the
by an allpowerful state. The detailed work
°f
Commission in protecting

summary

for

be

owned

people

Sta"d,S

uoon

ooinioris

market

over-ruling the deci¬

Co.

tp

I

point,

was briefed by
industry representatives and thor-

pressed

sion of the Commission in the Ira
&

pr0C£Ssed

permit

little

the

to the amount of securities
which,
in the light of the Division's ex¬

Ilaupt

provided
are

week's-trading

applied

Commission

and

due
in

regardless of whether distribution
by a controlling person is in¬

trading

prospectuses

but

one

Thursday, December 16, 1954

ing" This subject

as

of

detail

...

before being released to the pub- political society takes on added:
Iic< The amended law does not importance in the background of:

'

principals rather than
agents and often there istsolici-

One

in

mention

^mendments

S

in

to

prospectuses

reported vol-

few

these

like

The

°f 'f nmif

^s

trade

also

objections

have

discuss

over-

thnmh

veir

curities.

the. problem.
national secu¬

age transactions should be

studies
of

earn¬

the part
solve what

a long
standing problem
industry, the Commission

this

in

which

volumes

on

to

the

tation of the "buy**"order'.'
there are no reports of

in¬

vided by Section 4(2).for broker¬

within

upon

Commission

the

rities

the preceding four trading weeks.

These

the

sincere effort

in

the-counter
to
as

was

was

to

would

a

favor

in

remsnfyes

traHinff

First

haps

given

exemption

distribution

a

Representatives of

gregate reported volume of trad¬

ing during

or

over

11

20
years
have
transactions been

in¬

an

tv,

base^oil

ternretative

opinion of the Com¬

brokerage

still faces
to

outstanding

class

and

in

security
which
is
admitted
to
trading on an exchange, the lesser
of

for

on

W

has been called

be

has been

ex¬

to

ask

Notwithstanding the long,

exceed

the

which

to

nr

cases

volved.

within any six-month period, will
not

would

of

the

discriminate

traded

tl"!) f

test

a

facts

ex¬

Regard¬

it

to

securities

fnr

ties

dis¬

a

to whether in any

as

the

available

class

same

involved.

was

counsel

mission

of

or

volume

ls

nmnnSn

t,me

perfectly open to the broker or
controlling person to seek ad¬

vice

series of sales of securities by the
with, all

arf°Un
thp

the

controlling

person,

brokerage

available

less of these figures,

further

was

if the

rule

a

upon

ana

brokerage house
making a trans¬
controlling person in

was

ilrpe

listed

secunties

a

a

order to test

proposed

This varied from the first

"distribution"

in

for

s

against
or

before

use

action

a

distributing transactions, the

term

trader

a

proposal.
In order to provide a
ready guide for routine cases in¬
volving trading as distinguished
from

week

SEC, the Congress and
The Securities Industry

comments

out

depends

aggregate trading

The
and

securities

which

thumb

Financial Chronicle

*

3,

TENN

TELEPHONE

4-3312

-

{

Number 5386

Volume 180

Continued

jrom

The Commercial and Financial Chronicle

.

.

.

weapons

9

page

(2567)

We

program.

must

as¬

however, that by 1962, and
barring a major war, the weapons
stockpile will be largely complete.

sume,

Looking Ahead in Uranium

Then

low

of

basis

ing neutron from uranium (known

could
happen to hit the nucleus of an
atom of U-235. If it did, it would

energy

split this nucleus and high energy

the

as,

a

neutron)

energy

neutrons

be

would

another atom of U-235

erly

hit

be

in the

placed

and

by

in

one

turn

Still

sufficient

other

U-235

of

ture

not

factor

the

there

of

amount
known

as

of

critical

this

secret, but

which

uranium

of

amount

There

are

other

are

this

uranium

actu¬

is

phases of fis¬
A high

in

remain

238,

this

tool.
As an
example, the Massachusetts Gen¬
eral Hospital is investigating the
use of
the positron emitting iso¬
coming

tope, arsenic 74, in locating brain
tumors.
When this isotope is ad¬
ministered

centrates

that

element

intravenously

to

certain

a

con¬

in

degree

The

tissue.

cancerous

it

slightly

makes

it

possible to locate
the diseased tissue by the use of

mass

geiger

special

A

counters.

„

tre¬

mendous number of isotopes pro¬

duced

the Oak Rdige National

in

have

to

distrib¬

been

jt&t

the political phi¬

of>^jra peoples in this

to

jly a nee in the near
ta^j point where there
foiv atomic bombs.

be mined

can

the government or by
like Vitro at a fixed

by

companies

erating

lies in the

one

of

Let

review

the

of

few

a

Only U-235 is naturally fis¬
sionable, and it represents less
than 1% of the total uranium in
domestic

is

a

new

synthetic element with

which

ium,

allows

only

chemical

a

small <part of the uranium

a

government for the

needed by the

(3)

NEW YORK

that

quite

uranium

looks

like
us

grow

healthy

a

within 20

of

tons

Hear

uranium

100%

recovery,

talking about
of 8,000,000

we

ministrator

Forum

are

tons of such uranium

The United States is today com¬

free

the

world

for

first place in
tion.
a

uranium ore produc¬
today there are only

Yet

dozen

or

posits of

de¬

ore

100,000 tons in this
There are a very few

over

country.

these

among

known

more

known

contain

to

demand

of

taken

no

account has

been

requirements
than
The third atomic

possible

other

energy

power.

consumers

submarine reactor is under devel¬

opment

and

Aircraft

are

develop

Carbon, and

title

vest

of

United

at the Lawyers Club,
He will discuss

"Management

Progress

before
A

known

well

for

City finances

Wall Street audience.

a

authority on
municipalities, Dr.

of

problems

has

served

as

consultant

of

units

governmental

Survey

agement
and

during

1950-53,

appointed City Adminis¬

was

tration

of

the

City of New York

last January.

nuclear

pro¬

Anderson & Strudwick

Charlottesville Branch
not forget

also

industry

that,
afford to in¬

can

billions

dollars

of

re¬

CHARLOTTESVILLE, Va.—An^
derson

Strudwick,

&

investment

has

firm,

Richmond

opened

branch office at 110 Second

able material should be available.
such

mated

all

types. He was Executive Director
of the Mayor's Committee on Man¬

quired for nuclear power plants,
a
very sizable reserve of fission¬
For

and

Mayor Wagner's administration

to discuss New York

Marine.

the

next

engaged in contracts
aircraft

should

before

its

Problems." He is the first member

pulsion. Nuclear powered vessels
are logical for both Navy and the
Merchant

at

New York City finances under the

Electric,

General

today.

York

Broadway.

Gulick

1,000,000 tons.
ium

New

of

at 12:15 p.m.,
115

with

Gulick, City Ad¬
City of New

the

luncheon meeting Friday, Dec. 17,

ore.

peting

of

York, will address the Municipal

demand

annual

an

NYC Finances

on

Dr. Luther H.

a

there

esti¬

is

it

program

that

be

should

re-

Northeast.

items

Groke Mickey is acting

Manager.

emphasize

quantities

of

necessary

large

to

be

will

».

•
.

t

M

-

f

./•'

■

•

'

■

•

harness useful power.

INSURANCE STOCKS

Demands for Peaceful

Uranium

Will

Use

Uovemiiieiit

•

Municipal

•

Corporate

Securities

Up

untij

these

facts

Mead, Miller & Co.

only

available,

were

demands

power

but,

"

'

of

the

future,

there

would

for
that

felt

us

—Members—

New York Slock Exchange
American Stock

Exchange (Associate)

sizable

requirement
for
uranium after 1962. Last Septem¬

be

Underwriters— Brokers

—

recently

by estimating the increasing
most

Dealers

Grow

very

a

Philadelphia-Baltimore Stock Exchange

ber, at the American Mining Con¬
in San Francisco, Mr. Jesse
Johnson,
Director of the Raw
Materials Division of the A.E.C.,
gress

John C. Legs & Company
Established

gave

1899

little

a

us

amount

York Stock Exchange

American Stock

or

mass

ment for
Direct Wires

Moseley

S.

&

Co.,

Revel Miller & Co.,

Beil

&

to

of

mated

Walter C. Gorey Co., San Francisco

Los Angeles

Hough, St. Petersburg, Fla.

metal.

Louis C. McClure & Co., Tampa, Fla.

""

French

Crawford, Inc., Atlanta, Ga.

&

be 600

to

a

BALTIMORE 1, MD.

capacity

Telephones

esti¬

was

of uranium

tons

further

He

assuming
or

reactor with

a

million kilowatts

one

New York

& Gregory,

Bonner

York

New

Charles and Chase Sts.

was

inventory.
Mr. Johnson
stated that the inventory require¬

Exchange (Assoc.)

Philadelphia-Baltimore Stock Exchange

F.

for

food

more

For the first time an
set for the critical

conjecture.
Members of New

Bell

that

stated

New York—WHitehall 3-4000

Baltimore—LExington 9-0210

Teletype—BA 270

rather inefficient use

a

burn-up of 2% of the uranium

the annual requirement for

fuel,

kilowatts

million

one

electri¬

of

city would be 50 tons of uranium
metal.
This figure would reduce
if

higher

baker, wai ts & co.
ESTABLISHED

Members

New

York

Stock

Associate

Members

American

Government

,Ll;
t

Authority

and

Unlisted

Listed ' and

mated

Bonds

Trading

Markets

Revenue

in

and

Bonds

Bonds

Local

Securities

v

CALVERT & REDWOOD STREETS

our

indus¬

power

the

All

kilowatts.

in

are

that

this

15

than

will

Telephones: New York—CAnal 6-7162
Bell




W,

growth

curve

upward.

testing
that

Va.

Baltimore—MUlberry 5-2600

System Teletype—BA

395

RYLAND

a

How

estimates

and

years,

continues

much

being

and

installed

before

of

built,

have

but

been

nuclear

re¬
made

SteinBros.&Boyce
A Baltimore Institution since

6 South Calvert Street,

1853

Baltimore 2, Maryland
Teletype: BA 393

Telephone: SAratoga 7-8400
OTHER

power

LOUISVILLE, KY.

-

-

-

Wabash 5331

CUMBERLAND, MD.

OFFICES
NEW YORK,
-

N. Y.

-

-

Rector 2-3327

Cumberland 15-40

1990.

Applying
but

SECU

double

the
steeply
this in¬
crease will be nuclear power will
depend on the economics being
developed by the reactors now
less

plants will total 250 million kilo¬
watts, or equal todays capacity
Clarksburg,

BALTIMORE

capacity of about 150 mil¬

liable
BALTIMORE 3, MD.

Representative:

1jour 3nijiiirlc.t

kilowatts, making a total of
million.
Conservative esti¬

mates
■

.

Active

'de

rest of the free world has an esti¬

Exchange

Stock

Stocks

at

million

100

Exchange

Stock Exchange

State, County and Municipal Bonds
Public.

look

The present capacity in the
United
States
is
approximately

250

S.

l (/,• 3tu

could be at¬
reactors
are

away.

years

Let's

lion

U.

such

try.

1900

Members Philadelphia-Baltimore

many

burn-up

but

tained,

taking

similar

assumptions,

the conservative side,

Mr. Johnson

estimated

an

annual

demand for uranium of 14,000 tons

MEMBERS OF

NEW YORK STOCK

and other

a

Street,

mass.

three

These

■*

terms

uranium consumed is required
the critical

BALTIMORE

times the amount of
for

Many

24,000

assume

We

ores.

price

chemically different from uran¬

in

mean

oxide, U(3)0(8). If we are talk¬
ing in terms of 0.3% ore and we

to

produces
lighter
which is something under V (2) Fission
the atomic weight 239. This syn¬ $5
per
pound of uranium con¬ elements and only the difference
tained.
The price is guaranteed in weight (which is a compara¬
thetic element is also fissionable.
-until 1962. It has been stated that tively small amount) is converted
It,
is
called
plutonium, and it the United States still produces to energy.
into

imately

Carbide

(1)

our

this

uranium metal represents approx¬

electric

points previously made:

it

youth will be with

Twenty-thousand tons of

an¬

possibilities of peaceful

me

does

ore?

for

production.

power

sufficient

years.

Municipal Forum to

of

op¬

of uranium

and

—

unreasonable.

What

mines

use

100

is not

The real

long.

very

to the future

swer

keep

uranium

smallest

the

fuel

nuclear

Gentlemen, the infant will

thermal
high cost fuel areas
many

In the above discussion of uran¬

for iso¬

demand

least

years.

promising.

hardly

would

topes

At

is being pur¬

the

However,

is

use

of

at

be replaced
with nuclear
plants, a figure of 20,000 tons an¬
nual requirement by 1975 to 1980

higher concentration in the tumor

Their

present, this is not true, and the
need
for uranium is practically
unlimited.
All the uranium ore
than

valuable

a

serves

for

may

fast be¬

States.

po^bilities of uranium.

need

no

of

medical

are

but

will-

future,

iso¬

the

isotopes

that

assume

fuel plants in

hospitals and other insti¬
throughout
the
United

hope

world

In

energy.

these

world

about

by-product

a

we

bombs sub¬

tutions

on\;Mciear physics,

losophy

for

much

are

Laboratories

backgrojmd is

We

of interest.

convert

which

atomic

read

n<#| supposed to be a

is

chased
and

nucleus

is

benarnessed to produce

the future

a

from a previous
fission could, if it hit the nucleus

of

This

of

necessary to
try to answ£gr|our question about

neutron

energy

re¬

energy.*]

lecture

produces energy.

sion which

It

We

uted

doubtedly hundreds of times the
ally

does

Itjs doubtful whether

can

This

—

is

earth.

fusion.

create

to

useful

The

mass

this

principle1

fusion

know that it is un¬

we

produced

fusion

natural
on

explosion.

certain

a

present

the "critical mass."

of

amount

be

must

uranium

con¬

the hydrogen
bomb, and uf<anium (in a bomb)
is the trigger for the hydrogen

other uranium
around the U-235 atom
which is fissioning is very im¬
portant. To support a chain re¬
action

is

energy

occur

fission

placing

properly
particles

has

quires the tremendous heat from

standpoint of the fu¬

this

of

However^

quantities of
are
properly

uranium,

element

less weight than the
of the parts.
A tremendous

during fusion.

atoms

the

Here two lignter
fused together, and

are

amount

placed near by, becomes self sup¬
porting,
and
a
chain reaction
takes place.
From

atomic

is fusion.

resulting

sum

it could

of these neutrons
split.
This fission,

when

of

siderably

were prop¬

area,

feature

happens after 1962,

need

sides?

topes

Plant.

Hanford

the

another

elements

If

off.

cast

This is the

method of separation.

A pass¬

what

after the

or

known substance that is.

by 1980. If we use higher figures
(and many students of power re¬
quirements say we should) and if

115

EXCHANGE

leading exchanges

116

The Commercial and Financial Chronicle

(2563)

Continued from page 11

Thursday,\ December 16, 1954

...

such

bonds

be

can

paid

only by

future

IBA

future

CHAIRMEN

GROUP

"Social Welfare Plans—
Time to Take

TEXAS

SOUTHWESTEHH

costs.

plans

status, it is estimated that the lia¬

pro¬

bility for past service for those
presently covered would be about

of

danger

its full effects. Security

feel

must

be

paid

duction.

burden

the

can

do

The

his

the

must come
and his tax

money

payroll

of

A. A.

Chrlstophel

Edward

Glenn L. Milburn

Rotan

The Small-Milburn

Rotan, Mosle & Co..

St. Louis

Company. Inc.,

Houston

elaborate

.

NEW

YORK

NEW

workmen's
disability benefits
veterans' plans and public

der

plans; temporary disability
for railroad employees,
for employees in general un¬
various State plans; Federal

service

for

Insurance

against future generations. Except
the only other
apparent solution to the problem
of insufficient Social

Security re¬
serves
would be for Congress to
reduce the benefits payable under
Social Security.

and

men

veterans.

Salomon Bros. &

H.

The

Security system, as
reorganized in 1939, was intended
merely to help prevent destitu¬
tion in old age.
Therefore, pay¬
ments by an individual were not
designed to have much equitable
relationship to the benefits re¬

to put

based

vested

presumptive needs. The ob¬
vious inequities in such a plan

C. Wainwriglit

J. H. Ratcliffe

&

McLeod,

Co., Boston

Young,

& Company,

Weir

Ltd.,

Toronto

ceived.

The

benefits

were

on

With Richard A. Harrison

Harris, Upham Adds

(Special to The Financial Chronicle)

Charles

Ttichard

come

A.

Harrison,

2200

the

COLORADO SPRINGS, Colo.—

Byder has become connected with
Six-

teenth Street.

J.

Hemmingsen

has

be-

associated with Harris, Up-

ham &

justified

were

(Special to The Financial Chronicle)

SACRAMENTO, Calif.—May B.

Co., Mining Exchange Bldg.

inability of the Government
Social Security reserve

future

Social

The

purpose

that

by the fact
was to prevent

pov¬

erty in old age. In short, Social
Security was not conceived as an
insurance plan.

Social Security
into a plan providing
the equivalent of very substantial
insurance
and
annuity benefits
Now, however,

has

grown

the

for

bulk

gardless

of

of

the

their

people,

re¬

Under

needs.

an

Established 1929
Members

Richmond

Stock

Philadelphia-Baltimore Stock

the

country

as

Most

Exchange
Exchange

much

people do not realize how
Security pays in re¬

to

private

life

For example, if

a

vested

private

in¬

are

principally in productive
enterprises, which pro¬

income

duce

reserves

and

the

on

wages

so

in¬

to support

our

sums

beneficiaries

annui¬

and

and

the

3,

Telephone 2-2641

survivorship benefits
family under Social
total nearly $44 thou¬

sand.

Municipal Securities

1110 E. MAI\ ST, RICHMOND 10, VA.

the

paid

to

his

If

man

his

and

sand.

This

is

the

equivalent
program of insurance and

tirement

income

that

is

of

very

sand.

STATE and MUNICIPAL

UTILITY, RAILROAD, INDUSTRIAL BONDS
PREFERRED and COMMON STOCKS

Anderson & Strudwick

socialistic

trans¬

or

fascist;

State

through government control:
sources of production. Con¬
sequently, it seems that no satis¬
factory way can be devised to

of the

true insurance

create

through
if

reserves;

governmental

a

insurance

true

system,,
reserves

desirable.

means
that our promises
today's worker under Social Se¬

This
to

curity—promises which seem a
"bargain" to him today—can only
be
paid through a steadily in¬
creasing scale of Social Security
taxes on his part and the part of
his employer.
Barring this, the
system would eventually require
substantial Federal

subsidy, with
increasing burdens for the general
taxpayer or more Federal borrow¬
ing. In the years after 1975, So¬
cial Security taxes will amount,
under the present law, to 8% of
payrolls up to $4,200. From a $4,000

a

year

worker there will be

more

than

the

average-

U. S. Government Life Insurance.

will

he

Yet

have

no choice, and
adapt his compul¬
sory purchase to his own particu¬
lar needs and those of his family..

freedom

no

to

Eventually, the burden of Social
Security could become insupport¬
able.
It could, in truth, be re¬

But Social Security reserves are
quite different.
The Social Se¬
curity taxes paid by workers and
employers are spent for the gen¬
eral purposes of the Government,
just as other tax revenues are;
and the Government puts federal
bonds into the Social Security re¬

duced

serve

fund.

The

is

fund

valid

a

and the interest on it is

income.

But the

interest

on

or

renounced,

if the

com¬

mitments of this generation go too
far beyond

ity of such action would be espe¬

cially great if the actuarial esti¬
mates
prove

on

which the plan is based

to be low; or if economic

depression should ever make the

The

survivor

DISTRIBUTORS

INVESTMENT SECURITIES

VIRGINIA

Public Utility, Industrial &

MEMBER
MIDWEST

life insurance
than

the

or

total

$16 billion

of private

EXCHANGE

EXCHANGE

C. F. CASSELL & CO., Inc.
114 Third Street, N. E.,

Charlottesville, Va.
Bell

Teletype—CHARVL 95

more

life in¬

in force.
National Serv¬
ice Life Insurance, which is sub¬
sidized by the taxpayers, totals

another $40 billion. Yet, the cost
of carrying the gigantic total of

benefits
of
the

the

Security survivorship
is only about one-third

cost

involved

in

THE

Peoples National Bank
OF

CHARLOTTESVILLE

CHARLOTTESVILLE, VA.

carrying

old-age benefits.

807 East Main Street

comparable to the private life in¬
surance

Teletype RH 563

STOCK

PHILADELPHIA-BALTIMORE STOCK

payable
under Social Security are equiv¬
alent to
about
$350 billion of

Social Security, of course,
is
not operated on a "reserve basis"

RICHMOND 12, VIRGINIA

Railroad Securities

Local Securities

benefits

ACTIVE MARKETS IN LOCAL SECURITIES

<P. O. Box 1459)

Dealers

MUNICIPAL BONDS
Active Market in

systeift; and I do not

con¬

tend

that

some

Dealers in

Municipal Bonds

Specializing in

"reserve"—about $20 billion,

which

is

it

should

called

the

be.

There

Trust

is

today,

and

wage credits

all

benefits

Virginia, North Carolina, and West Virginia

Municipals

Fund.

But if the system were disbanded

paid

CAPITAL STRUCTURE at close of
October

on

already accumulated,

7,

•

the economic or moral
law, or beyond the generosity of
a future generation.
The possibil¬

Distributors

Underwriters

Phones 2-8157-8-9

Social




a

Such investments in private
industry provide a great dynamic
factor in the country's economy.

surance

7-3077

formed into

biggest:

be

re¬

large in relation to what might
be a family income of $4 thou¬

Telephone

the

investments; and:

gradually

wife

both live to age 75, their old-age
benefits will total about $20 thou¬
a

—

become

would

we

tants.

man

dies at age 35, leaving a wife age
and three children, ages 10. 8

Security

UNDERWRITERS

ultimately

holder of private

insurance

35

Teletype—RH 460

Security

a

Social

programs.
UNDERWRITERS AND DISTRIBUTORS OF

—

Social

invested

funds in private industry, it would'

whole.

lation

Equity and Bond Financing

the other hand, the Gov¬

on

premium he now voluntarily pays.
for private, National Service and

insurance

Life

reserve,

and

If,

ernment

disquieting element in the picture.

real

dividual

be true.

exacted

become

circumstances, its inequities
glaringly apparent, and
highly important to both the in¬

if

increased to the

funds to productive use is another

these

INC.

Security

for these methods,

Life

Service

National

and

ance;

the

do

purposes, or deficit financing
which would constitute a charge

grants to States for public assist¬

Hutzler, New York

increase

Security taxes. But

version of them to Social

benefits
and

to

and

reserves,

figure of $250 billion .previously
mentioned, the same thing would

were

compensation;

under

Clark

to

Security

reserves were

even

relief

A.

law—is

the

enough

compensation;

Forrester

the

Social

cial

it is doubtful that the taxes pro¬
vided in the present law will be

paying

ment

Rudolf Smutney

about

job. Another
method of ultimately making good
the present deficiency would be
a
Railroad Retirement plan and. through a Federal subsidy. This in
various special
programs for turn would require either an in¬
Veterans.
We
have
unemploy¬ crease in general taxes and a di¬

CANADA

ENGLAND

in

future

old-age
pensions
and income to survivors, but also
an
extensive Civil Service plan,
tem

figure

very

vided

Actually, we have not only
Federal
Social
Security sys¬

a

this

large requirement,
which is only slightly less than
the total Federal debt, can be
madje good in several different
ways.
One method—already pro¬

rity.

Wichita

1954

$200 billion to about $250 billion.

potentially
expensive
our
existing social welfare plans al¬
ready are. The average individ¬
ual thinks only of Social Secu¬

and

recent

from

people

many

numerous,

The

Security funds are not
put to work in private industry..
They do not create the means of"
future production. This applies tothe
present $20 billion of So¬

in

now

creased

This

that

how

than is

more

Trust Fund.

fully insured

a

Security in¬

living.

doubt

I

realize

have

yet

amendments to Social

payments, and the inevitable ef¬
fect
is to lower his family's
standard

not

$250 billion

the back of the young

on

worker?

from

for in future

Where

fall but

Reinholdt & Gardner.

Soundings"

with partial benefits to those who

the

!

\

;

Social

excessive
It is they who will really

with

inflationary Federal defi*-

the public, or by

on

cits.

MISSISSIPPI
VALLEY

taxes

business

1954, $4,437,560.71

Number 5386

Volume 180

burden

tax

necessary

..

.

too

The Commercial and Financial Chronicle

heavy

The

It would

to be time there¬

seem

effects

fore

to

needed

may

pay

the

re-appraise the price we
for Social Security and
other welfare plans.
Social welfare plans do not
come

as

gift from

a

a

much-

rate of

•

control

over

ernment

a

in¬

back-breaking tax burden
generations; discourage¬
of initiative and enterprise;

yond

the

proportion

his

of

own

ment

lower

government deficits with ul¬

payment

dollars.

Beyond

in

measurable
that, the pur¬

assistance

area

it, in

opinion.

Sudden
universal health

my
a

insurance

system would probably
existing medical facilities.

swamp

It

result" in

might

maldistribution

than

ices

of

exists

greater

even

medical
at

the

serv¬

present

time.

public

should

assistance

confine

ernment

approach

Federal Gov¬

any

plan to those people who,

for one reason or

dead issue for the future.

Meanwhile, official consideration
being given to a plan for gov¬

a

all phases of the entire prob¬
lem, including its overall impact

of

other elements of

on

the

In

times,
back.

If

pay

the

for

of

benefit

Or

others.

ready

to

The various

satisfied.

be

ables

insurance is al¬
central feature of the

welfare

plans

create

clearly marked, but which,
paid, may never be re¬
couped.
I find that the average worker,
if he thinks of the cost of Social

danger of the

succeeds

This

seems

is

relatively

a

insurance

able

need exists among

same

field of

new

has

been

made

to

me

government

operations, and remark¬

progress

such people for
aid; and that whole area

provided

by

they

private organizations in providing

nized

health coverages for the American

ance.

to $4,200, because that is the
only part of the cost that he pays
directly.
Many workers are not
even
aware of this cost,
because

people.

ing

been

$uch plans is

all,

at

up

the world.

up

we

"deficient."

now

are

could

bring

our

curity bill to something
of taxable
Some

have

This

total Social Se¬

like 28%

countries

State

The

suggest,
the

the

health
even

needs

com¬

The

plan

cost

would

costly

of

any

on a
to the

to

local

more

than

$10

is

new

and
social

ultimate

grams;
in the

for

and

the

billion.
en¬

payments to doctors

hospitals;

about

and

one-

quarter of that total amount
covered
Even

by
a

that

plan
volve

a

was

insurance.

government-sponsored
covered only hospital

doctors'

and

private

cost

charges,
of

nearly

would
$6

welfare

fact that we may

of

Social

Security

the

in¬

history

strongly

generosity,

have done

heap upon

will not mitigate the
generations will

Three Join FIF
(Special

to The

DENVER,

Financial

Colo.

Harris, Bradford

—

Chronicle)

Richard

sug¬

gest that the activities of Federal

Ray L. Horr, Jr., have joined the
staff

of

FIF

Management Corpo¬

Municipal Bonds and Corporate

the

philosophy
objectives of such

and

Securities

pro¬

over-lapping

con¬

or

would

be to

make

sure

we

nothing that would adversely
the productivity and eco¬
nomic
progress
of the country,

Local Industrial &

Utility Stocks

Trading Markets
Retail Distribution

STRADER, TAYLOR t CO., INC.
LYNCHBURG, VIRGINIA

LD 39 TWX LY 77

affect

upon

which

all

social

welfare

plans must depend for their vali¬
dation, in the final analysis.
I

realize

that

various

groups

made

studies, from time to
time, of separate segments of our
social welfare picture. What I am
suggesting is

a

SCOTT, HORNER & MASON
LYNCHBURG. VA.

coordinated study

CattJ^nMu/iy
VIRGINIA

NORTH and SOUTH CAROLINA

ikc

1954

1932

VIRGINIA—WEST VIRGINIA
N. CAR.

•

W. VA.

Telephone 8-2821

£felet(ji2£4.
Corporate LY €2 & 63

MUNICIPAL BONDS

Corporate Stocks and Bonds

F. W.

Municipal Bonds

CRAIGIE & CO.

Unlisted Securities

DEALERS

IN

Underwriters

STATE and MUNICIPAL BONDS
616

EAST

Telephone 3-9137




MAIN

STREET

RICHMOND

M.

Richardson and

ration, 444 Sherman Street.

us.

implications. We should

did

have
and

member

Committee.

generation, as our forebears

system

ness

billion

annually.
estimates

additional

an

J.

was

are

examine all present plans
light of those objectives;

examine

tire Social Security system is now

was

as

Chas.

further,

ones

suggest a
impartial study of

flicting plans; review the sound¬

esti¬

This is several times what the

of the

of

Waco,

com¬

pose

at

year

elected

Eubank

Company,

in¬

lion

mated

last

J.

Charles
Uubank

Federal

costing annually. Of the $10 bil¬
lion of illness cost, nearly $6 bil¬

States

&

of

and future cost of existing
plans; consider any new plans in
the
light of the ability of the
country to support them; and con¬
tinuously analyze the impact of
all such plans on other elements
in our economy. The overall pur¬

United

Nelson

Austin

the

one

would

whole

determine

gi¬

in

our

of

extended

are

I

and all its

undertaking.

illness

all

plans

our

ade¬

a

to

better than

thorough

serv¬

be

with

—

element

adopted,

government-sponsored health
and

Walker,

•

before

or

rapidly,

are

of

were:

Before this country's social wel¬
fare

insurance

more

be

munity life.

rates

insurance

would

another

however,

products,

levels

local

restricted

role

ject

pay.

private

kept at the

and

administration

This

at

to

State

be

members of the Dis¬

Austin.

did, mortgaged the future of our
children
and
grandchildren, to
assure our own ease and comfort.

war¬

as

Committee

providing financial assistance.

wholly acceptable
insuring public, so that true

Such

of the world
themselves
to

to

move

insurance

payrolls.

committed

to

gantic

It is estimated that
ultimately require about
to bring

not

and

A

nations of

of payrolls

passing
country

Jf

Sr

—through village, town, city and

quately met.

Its recommended pro¬

12%

of

richer

next

serious

traditional

rest upon our laurels.

in

health

undertaken to

to the minimum

is

to the

it euphemistically
standards of social

"standards"
specified by the ILO in those cate¬
gories of Social Security in which
us

cover

insurance

and to make their

embraces
nine different
categories of Social Security, some
of which we do not have at all in

anoher

to

afford

can

behooves

ices

gram

it would

such

people

we

field

Labor

this country.

instead
and

administration into

insurance
or

provide

panies

talking only
Federal Old
Age and Survivors system. But
an agency of the United
Nations,

security for the various

better

Federal

now

demonstrates

It

far, I have been

has

which,

blame that future

that

of Social

about the cost of the

what

against those dangers, we may go
history as the generation

down in

insur¬

public is will¬
bear the cost of

question that

a

guard

we

recog¬

as

the

to

unless

operations should

people

voluntary

This

being urged would
cost about another 5% of payrolls,
according to best available esti¬
mates, bringing the total cost to
as much as 16% of payrolls.

calls minimum

not

extravagantly pledge
disrupt the country's

to

now

Organization,

able

plans,

clearly

and

for

one

not

do

Crockett

Austin

Waggener,
Dallas,
to
succeed
Hugh
D.
Dunlap
of
BinfordDunlap, Inc., Dallas; and William
G. Hobbs, Jr., of Russ & Com¬
pany, San Antonio, to succeed Mr.

it, not from malice or selfishness
but from ignorance or misguided

prices

prices

establish

this

clearly the will¬
ingness of people to buy such cov¬
erages
for themselves,
and the
ability of the insurance business

paid by employers, but they are
really paid, in the final analysis,
by all workers, through higher

the International

in

It

employee may prove to "be
high as 10% or 11%, just to
finance present benefits, and as¬
suming no further liberalizations
in the law. These costs, of course,
will be met in part by the taxes

known as

that,

o

Co., Houston.
Elected

trict

Waggener

confident

am

H.

inherent sound¬

welfare system, as
the question of its social

as

that

Edward

any

desirability.
I

Crockett

con¬

hospital expense.
This is a growth that is probably
without precedent in the entire
history of the insurance business.

and

So

and

proper

are

such,

as

Whether

rants

than 100 mil¬
have some form

more

their medical

as

Security

be

T.

Claude

citi¬

study. But if there
is to be an expansion of expendi¬
tures by the Federal Government,

of

deceptively painless. Actually,
the taxes to be paid by employer
is

or lower wages.
Various liberalizations

10 years,

lion

payroll deduction

automatic

the

last

Although the business has
developed primarily in the

a

grant-in-aid

thinks of it as
amounting to 2% of his income,
Security

the

must

Austin,

Mr.

reason,

the

But

medical

the

and

economy.

or

cannot be extended. A real

sense,

sion

and

with

of

well

general

in

zenry

this

For

insurance

or

excessive and uncontrollable costs.

objectives

might

40 million

unwise.
life

the future

if

of

named

30

as

the

only morally wrong but econom¬

great country, we can all have
real security, if we are willing to
work for it and obtain it by stages

least

once

just

many

surance,

confu¬

same

have

as

of uninsur-

groups

The
corr*-

state of Texas.

population, to whom health in¬
in its real or meaningful

Federal health insurance would

dom.

o 1
Com¬

prises

people. They represent a large and
important segment of our total

other

of

I

total

such

a

on the public as¬
who are unable to
health insurance.

rolls,

purchase

countries.

regimentation and loss of free¬
This is the price that is

be

likely

all,

social

—

all—the price may

most costly of

not

are

Secretary

great,

tive, and because it saves. Failure
to observe these principles is not

ness

After

b y

Faga-n,

future, but because it is produc¬

cerned

become discouraged by the
load they are required to carry

was an¬

district

sistance

ple

it

nounced

cause

ple not already

insurance

ers,

Se^
Deal¬

mittee 6.

a

health

curities

District

their

compulsory

a

As¬

sociation

at

civilized nation that its
are
living well, not be¬
it is living on its fat or its

mate inflation.

of

who

those

This,

It should be the mark of

ically

price may be a lower stand¬
ard of living, if the energetic peo¬

Texas —Ed¬

ANTONIO,

ward H. Austin, of Austin, Hart &
Parvin, San Antonio, Texas, has
been elected a governor of the-

citizens

both

The

too

Paul

surviving dependents; and
people.
Such
a
plan
might also cover low-income peo¬

such

promised

SAN

ship, regardless of party.

disabled

not

Elects Austin Gov.

the

National

to

benefits.

aged;

or

I

clock

enjoy
least, we
can do; and
if integrity is not to
be forsaken as a national ideal,
it is a simple obligation of citizen¬

all

city

the

ernment reinsurance in the health

Whether

have

we

of

tensions in the light of our capa¬

field, which has the merit of of¬
fering assistance to private com¬
panies, rather than pre-empting
field.

temper

turn the

cannot

NASD District No. 6

economy.

much, only time will tell. But it is
not too late to weigh future ex¬

plans, the true cost is often hid¬
den, and may be paid in the fu¬
ture—even by
a
future genera¬
tion,
The true cost may be ulti¬

plan is adopted, the proponents

present

we

our

strong,

A

is

nothing.
Government-sponsored

in

public

be¬

another, are un¬
able
to
buy private insurance.
Such
groups
would include the

means

chaser surrenders
But

much

demands

introduction of

have contended. timate depreciation of currency
As for most other things in life, values to the point at which the
there is a price to be paid; and the benefits payable under the social
American
public should clearly welfare plans fail to accomplish
understand that price.
their intended purposes.
In our business of private life
One of the things called for in
insurance, accident and health in¬ the ILO program is compulsory
health insurance.
surance,
hospitalization and re¬
Although that
tirement annuities, the price is has not been strongly pressed in
clearly marked.
It comprises a this country of late, it is by no
present

rather,

would not raise the existing level
of medical care but might actually

some

as

but

not

financing of the individ¬

health

future

and

insurance,

ual's

large

beneficent

comprise

should

public assistance. To extend gov¬

loss of

capital formation;

individual's

reimbursement

cal

be

to

come; a
on

government.
Nor do they arise
from the sharing of accumulated

wealth,

destined

seem

slowdown in the

a

Government in the field of medi¬

costing about that much.

programs

to carry.

(2569) ' 117

15,

VIRGINIA
Teletype RH 83 & 84

& Distributors

Municipal LY 82

118

(2570)

The Commercial and Financial Chronicle

'

-

Continued

jrom

our

13

page

country

will

contribution

to

make

major

a

modern

•"

•'

••

•

Continued

civiliza¬

•

v

.

;

jrom

»

1

...

The

Flexible

a

program

complish

this

continuous

Monetary Policy
union groups seem strong

times

enough

keep their wages in
line with the depreciated buying
at

of the dollar.

power

The

impact of

period
the

to

running

acutely

the

from

until 1953

war

the

in

of

end

not felt

was

as

the depreciation in the

as

value of the dollar would indicate.

This

due to

high rate of em¬
ployment and to multiple bread¬
winners in the family and other
was

factors

such

as

overtime;

but,

with these advantages, there

even
was

a

great distress among millions

of workers

and

people who
pensions.

were

will

ac¬

the

maximum of cooperation between
all groups in our

No

law

resolution

or

passed

the

1946.

agement

agencies of the govern¬

ment, is expected to make its con¬
tribution
No

Act.

central

bank, no

sense

in which

some

inter¬

The idea that at all times
—every week, every month, and
every year—we could have full
employment of all the citizens in
this
country who might
under

and

The fact that monetary policy
standing alone would be unable to

with

cope

inflation

is

no

abandoning it. Courageous

of

monetary

is

measures

and

of

policy,

debt

say

can

we

time

same

the most effective policies in the
fight against inflation. Of course,

fiscal

do

of

Most

that

use

one

certainly without serious un¬

employment.

reason

for

wish

.conditions

any

his

this

us

believe

and

at

the

respect the individual

freedom

that while

that

so

we

its

make material
still a free society.

we

progress we are

redemption

on

March

15, 1955, of
outstanding 6%

company's

non-cumulative

convertible

debentures will be

new

deemable

at regular
ranging from

prices

the

for

and

par,

management,

Progress will not always be in

growth of production are all
factors which must be included in

straight line.
There must be
periods when the growth will be
above the line, and some what it
will drop below. If we reduce the

severity of these fluctuations and

branches situated

re¬

redemption
1031/2%

to

6,537

and

our attempts to conduct
ful, free society.

a

a success¬

Congress, reflecting the ambi¬
tion

of

our

country

for constant

still march

the

on

upward path,

100%,
each

plus

sinking fund at

accrued

interest

in

case.

Illinois Central RR. Co. operates
miles
of
main
line
and

linois,

Indiana,

in

14

states, Il¬
Missouri,
Ken¬

tucky,

Mississippi,
Tennessee,
Louisiana,
Alabama,
Arkansas,
Iowa, Wisconsin, Minnesota Ne¬
braska and South Dakota.
miles of road operated,

miles

JONES, KREEGER & HEWITT
MEMBERS

NEW

STOCK

EXCHANGE

AMERICAN

PHILADELPHIA.BALTIMORE STOCK

CAFRITZ

BUILDING,

1625

EYE

WASHINGTON
DISTRICT

7-5700

6,

STOCK

EXCHANGE

STREET,

D.

EXCHANGE

N.

W.

WA

be

determined

The

67

tems.

A

discoverable

trend

is

a

'

5,933 58

are

railway op¬
$308,373,591
and net income of
$26,369,081. For
the nine months ended
Sept. 30,
1.954, railway operating revenues
aggregated $205,535,004 and net
income was $13,171,107.
revenues

of

DIRECT

WIRE

STONE

994 shares of

TO

&

Associated

MEMBERS
NEW

YORK

STOCK

EXCHANGE

F.

&

Stroud
OFFICE

VIRGINIA

&

&

amateur

too

does

(3) Objectivity in lieu of sub¬
jective emotions prevade handling

Market Place

Manic
tions

Depressivism.
Oscilla¬
optimism to gxoom,

of one's

from

witn

leaning

on

capital.

(4)

others.

Diversification.

(5)

boom-or-bust oscillation.

Escapism.
To
system-playing.
To mutual funds.
Too excessive

In

in

of

case

closed-end

com¬

panies, the frequent discount is
hig. ly advantageous to t. ose in¬
vestors
properly
interested
in
maximum

Crowd Psychology. Fluctuations

yield

from

investment

income.

public interest correlated with

price

movements—ex

post

(6)

facto.

Reflected in traditionally illogical
behavior of the short interest.

Freedom

exercise

as

check

of

handling.,

from

mechanics,
rights, dividend
;i

...

DEFECTS:

Rationalizing.
Blue
Chip-itis. - The market's
proclivity to concentrate on tim¬
ing of movements of "Blue Chip"
issues
after
they have
become
popular or to speculate on how
others are likely toieel, outguess¬

Must meet this
acquiring now, by

ing the guessors.
proclivity
value

by

■•

criteria, the Blue Chips of

tomorrow.

Practical
tion

of

"New
valid

value of

(as

valuable

(1) Excessive "Blue Chip-iness,"
is, concentration on popular

criteria.
*

Stocks

that

issues

based

(2)

$

self-exculpating

Occasional

selling

encouraging

as

fund

■

ficult
folio

turn

to

around

changes.

abuses,
to

fund

-

(1)
pany

witn

port¬

.

CONCLUSIONS

#

Real es¬

-

(3) Too small or too big. If
small, applicable management ex¬
pense
burdensome; if large, dif¬

ABOUT

INVESTMENT

'

mo¬

switching, promoting use of Sav¬
ings Bonds and bank savings via
inflation-scaring,
obscuring
of
buying expense.

'SjV/v

ReaJf: Estate.

vs.

on

from

tives.

suspected opportunity

advantageous:; action

value

recogni¬

foibles

credo):—can serve as
I confirmation
of

Era"

previously
for

use

psychological

American

today has

THE

COMPANY:

investment

com¬

its grow-

overcome

State—County—City
Bonds

—

Local

Warrants

Corporate

Securities

STERNE, AGEE & LEACH

Salomon

Shields & Co.;
Inc.; Auchincloss,
Redpath; Ball, Burge &

MEMBER

MIDWEST STOCK

EXCHANGE

Co.

BIRMINGHAM

Kraus; H. Hentz & Co.; Hirsch &
Co.; F. S. Smithers & Co.; Greg¬
ory & Son Inc.; New York Han-

Telepyjie.BH
f)

3,

ALA.

97

Branch

Long Distance 9983
—

Montgomery 2, Alabama

seatic

Corp.; Wm. E. Pollock &
Co., Inc.; Shearson, Hammill &
Co.; Stern Brothers & Co.; Free¬
man

&

Co.; McMaster Hutchinson
■

&

Co.; Mullaney, Wells & Co. and

-i

.

Rodman & Renshaw.

Firm

Markets In

WASHINGTON

SECURITIES

our

If

•

Loeb, Rhoades & Co.,

New York

O

iff

Direct Private Wire to

Carl M.

U

H

|

ESTABLISHED 1920

R

N

MARKET

MUNICIPAL

•*■'£•.

Johnston, Lemon & Co.

E

AND

/-

,

T

IfGENERAL

Correspondent

'

*

BONDS

"

,

MEMBERS

PHILADELPHIA-BALTIMORE

UNDERWRITERS

Southern
Telephone:

Sterling

-

•.

STOCK EXCHANGE

DISTRIBUTORS

-

Building, Washington 5, D. C.




iff

ItSbb:5,

Bell

Office:

Teletype:

WA

95

&

Smith & Lombardo, Inc.
c

.

BIRMINGHAM

m'

3-3130
Branch

'

V

DEALERS

WA

not

(2) Full-time, rather than spas¬
modic, attention given to portfolio
problems. Expert management at

stock.

Co.;

it

(if

much).

low cost.

Psychological Foibles in the

Hutzler:

Parker &
ALEXANDRIA,

than

cost

with

Rothschild

Bros.

BRANCH

common

Investment

or

(1) Professional know-how bet¬
ter

Halsey, Stuart
in the offering are:
Bear, Stearns
& Co.; R. W. Pressprich &
Co.; L.

CO.

Fund

ADVANTAGES:

1955, outstanding capitalization of
the company will consist of
$209,131,000 of funded debt and 2,715,HAYDEN,

Mutual

Company:

from

past behavior.

Your

Investing Dollars?

Upon completion of the current
financing and the redemption of
the preferred stock on March
1,

C.

TELETYPE

Of the

owned by the company.
For the year 1953, Illinois Cen¬
tral RR. Co. had total

erating

YORK

Where Go With

analysis
of

logic and actual results.
fallacy common to "tech¬

can

usually higher on earning
despite liquidity premium

grounds

on

fiction.

pre-

stock.

The

market

Applies to all,
from Dow Theory to sun-spot sys¬

Stuart & Co. Inc. and
associates are offering $18 million
Illinois Central RR. Co.
25-year

can

is

stocks.

on

anticipate
by varie¬

movements

internal

stock

a

31/2% Debentures

fered

price

to

nical" methods is implied major
premise that the future course of

Halsey,

the

tate

■

on

is¬

Basic

Offers III. Central RR.

pret it.

efforts

insupportable

both

Halsey, Stuart Group

executed its responsibil¬
ities, could carry out this directive

between

basis,

of

are

included.

wisely

in the

ties

policies, as 1 well as a
stimulating environment, must be

long its experience nor how

how

stock

of this
matter

the objectives

to

Divergence

Persistent

Congress can hope to do it. Sound
fiscal, monetary and debt man¬

has expressed its view¬

the Employment Act of
The Federal Reserve, along

to be. em¬
31/2% sinking fund debentures due
We expect in this country an
ployed is a concept of Utopia. No
Jan. 1, 1980, at 100% and accrued
increasing group of older citizens' •free society could ever hope to
interest.
The group won award
enjoying their retirement through attain it and the Congress itself,
of the issue at
competitive sale
income arising partly out of gov¬ as the debate shows and as the
Act's statement of policy shows, yesterday (Dec. 15) on a bid of
ernment social insurance, partly
f)o 1 A ot
ii.Kn«nofl pf th»
did not expect it.
ossifi¬
out of private insurance, and part¬
This country
ly out of their own thrift. Their can have, within the framework cates is subject to the authoriza¬
standard of living will be jeopard¬ of a free, competiitve, capitalis¬ tion of the Interstate Commerce
ized if we accept either the idea tic society, a dynamic and ever¬ Commission.
Net proceeds from the financ¬
that inflation is not a bad thing growing standard of living to¬
jaf that we cannot control it.
gether with high employment— ing will be applied toward the
retired and

(2)
sues.

one

by

country.

-

,...

Observations...

require
and

point in

progress,

with other

inflation

to

necessary

goal

collaboration

>•.

.

5

page

"V'-

tion.

In Praise of

Thursday, December 16, 1954

...

28

Telephone

Alexandria, Va.

•*"'

£

;•

'

If".

:

:

-

*•

7-3175

Teletype: BH 287

'

Volume 180

Number 5386

.

.

The Commercial and Financial Chronicle

.

(2571)

frequent, anticipation ,• of
*n£. ^ns' .anc* is sui generis a Remuneration .receiyegl wholly il¬ ket 's
legitimate investing instrument. - "respective of carpital appteciatrcm news and absence of correlation
vs,
(2) Nevertheless do not expect or shrinkage,.income or activity^- with it.
miraculous operation results,
ticularlv

AJ

tion-hedge

concentrate

—

„

HOW NOT TO READ:

(1) Avoid rumors and rumor¬
Psychological—reduces sub¬
mongering.
jective emotional elements.
(2) Avoid rationalization of in¬
(2) Meets individual needs.
(3) Introduces design and con¬ terpretation; and habitual suiting
of explanation of news in accord¬
tinuing policy to portfolio han-

EASTERN
PENNSYLVANIA

'

come.

The Investor and His Adviser

:

where

I

can

The

to

must

predict

the market
concept),

Choice

Hobson's

adviser

pected

as

to

a

not

be

unwisely

ex¬

movements

of

Cost

between

losing his client.

or

V

['beating-the-rr arket,"

or for other
short cuts to get-rich-quick spec¬
ulation. Nor can he transform the

following

editorial-

in

on

action

government

war-peace,

spending, taxation, etc.
(4) Avoid watching market ac¬
tion of issue after your commit¬

V

ment therein.

*

is

general

"•

(5) Fallacy of concept of being

Your reaction to financial jour-

nalism

as

—

The Investor and the News

t

integrally proved

"right"

short-term.

"wrong"

or

over

^
with fundamental inBut
(6) Beware of over-dramatiza¬
affirmatively
vestment principles and practice,
tion and glamorization of the stock
"structively—iie can help all rate- Highlights differentiation between
L
gories of investors follow behavior investment and speculative atti- market.
and policies consistent witii sound tudes; between market-timing and
(7) Also of pictorialization and
"and logical investment
principle, value approaches;- and psycho- the pattefn-after-the-past c!raze.
to better your chances for return,- logical -processes of
the market All antithetical to value-technique

non-professiohal into

an

—

bound

expert.
ana
cori-

(1)

'«•

Check

vis pitfalls.

(2)
sound

(3)

■

him

for

v

PREVALENT FOIBLES IN
:'U< MARKET

toward

attitude

Unchanging\ through

one trouble with Wall

Clement A. Evans

Goodwyn & Olds

Clement A. Evans &

Philadelphia

Washington, D. C.

Atlanta

tailment in previous months. For
the
first
nine 'months,
sales

Retail Sales to Be

amounted

"the news."

succeeding

Close to Record

(2)

High

Chasing the market with
^investor,
periods of rising and falling spec- the news, up and down.
v
*
^ An adviser is also useful talker illative activity
"afTnal returns for' September
and excitement.
(3) Double-standard contradic¬ showed.that the value of retail
:r
most expert investorj;^ecaaBe*!0^ -^imit.to a morning-after or oncetory interpretation of - a single sales in the
.■> emotional factors—It's ba&Tc* be a-week scrutiny of price changes
United States was
item.
slightly* higher than in the same
onp's-own:doctor,-in; stock table; in lieu of afterTo explain the market's fall one month of last
"'r* '
year, amounting to
in.' "a '
^
•••^/, •
the-close stock table hot news,
Tne Services
day last week, a leading morning- $14,139^000,000 this year as against
Uj^e horse-racirg result.
Street

is

the

Company,

Incorporated,

.

(1) Rationalizing previous mar¬
action
via
interpretation of

phlegmatic
financial news.

Wilfred i. Goodwyn

Bioren 4t Co.,

John F. Burnt, Jr.

COMMENTARY:

ket

(1) Maintain stable

Permit him to act soundly,

,

philosophy.

•

.

SUGGESTIONS:

following

principles:

Remember:

and

HOW TO READ—AFFIRMATIVE
•INVESTCm^ATTITUDE ;;i"

vis-a-

--

Check

4

adviser

your

up

P*ace*

Proper Continuing Basic Attitude;
'■

SOUTHERN

price movement

fit prior market

factors to

acting

for

means

Avoid

(3)

handicap.

a

whole (a fictional

provide

prior

SOUTHEASTERN

post facto.

ex

capital gains, thus giving counsel using, and selective emphasis

get the right kind of

guidance?"
-

with

ance

The nettlesome quandary of the"*dting.
hon-professional and even semiDanger—The client will not let
professional persists: "How and counsel act properly. Nags after
;

...

IBA GROUP CHAIRMEN

(1)

in¬

on

,

Advantages:

capital gains.
Don't
primarily as an infla¬

re

fund

buy

par-

11$

v.-r

year

as

0.00,OOQ

to

$123,597,900,000 this <

compared with $125,392,-*

last

year,,

a

decrease

of

1.4%:
It does not now

seem

likely that
will

sales for the full year of 1954

reach the record high 1953 figure

-

"

THE

CUSTOMERS'

Good

on

ing—now

BROKER:

'

facts; bad in forecastrigid

passes

tests.

(a)

Advantage
of
objectivity
through absence of material in¬
terest

(b)

in

particular

(3)

remunera¬

INVESTMENT
The

COUNSEL—

Scientific

of

individual

execute
not

orders,

have

needs.

and

control

Does

usually

your

own

advan¬

not

does

can

be

most

(4.)

.

emphasis and

Editorial

se¬

reas¬

Dealers in

validating conclusions General Conflict of Commentary
arrived at through logical quanti¬
with Value Analysis.
suring

in

(4)

On all

news

phenomena

re-

U. S. Government Securities

Reference to "the market,"

overlooking

divergence.

great

and

lated to

securities, concentrate on
value phases.
Markettiming attempts hindered by mar-

(2) Tipping, now usually veiled.

relevant

Municipal Bonds

Farmers' Income
Underwriters

Distributors

Continues Cownward

Dealers

It is now

SOUTH CAROLINA MUNICIPALS

the

United

ments

md

by the farmers in

States

in

T954

tinuation of

show

will

A.

The

1892

Member Midwest Stock

income

farmers' cash

Exchange

during

declined

to

r

$20<633J000,OQO from

£21,425,000^000 in the same period

^

r

SPARTANBURG,

S.

C.

Long Distance 51

Bell

of
Teletype ZP 67

last

the

cates "that

to

500,000,000

record

Dealers

000

JACKSONVILLE, FLORIDA
Phone ELgin 6-5611
\*,v

0f^

Member Federal Deposit Insurance

Corporation

$30,-

compared with $31,-

as

and

1953

reached in

with the

occur

a

DISTRIBUTORS

UNDERWRITERS

wale;

Present in¬

1951.

that

are

decline will

Teletype JK 182

1954 will

high peak of $33,085,000,-

dications

CORPORATE BONDS & STOCKS

for

total

approximately

626,000,000 in

Distributors

JACKSONVILLE

This showing indi¬

year.

amount

Underwriters

OF

Institute.

.
,

*

[NATIONAL BANK

the first nine months ef this year

COMPANY
■

con¬

trend

which began in 4952, according to

Properties

Established

••

-

pay¬

a

the downward

the Alexander Hamilton
*

ATLANTIC

market¬

from

ings and government benefit

Southern Textile. Securities

Bond Department

apparent that cash in¬

received

come

GENERAL CORPORATE SECURITIES

-

record.

lection, to fit writer's forecast as
well as preceding market action.

(1)

securities,

over

to

These

foibles.

basis

on

Turn

tage the evidence of psychological

tative criteria.

Approach:

Basically gives advice

$170,742,000,000, but they may
to as much as $169,000,000,000. This means that they will
at least be the second highest on
amount

editorialization

issues.

Disadvantage of

tion geared to customers' activity.
THE

Distinguish between factual after commentator cited the Eisen¬ $14,082,000,000 in 1953, says the
hower
indication
of
continuing Alexander Hamilton Institute. This
budget deficits, usually regarded gain, however, failed to offset cur¬
are more important for value-apas
in-flationary, not de-fiationin va- ary.)
rious forms.
(2)

data and interpretation. The facts

of

slight further

in 1955.
t Y

FLORIDA MUNICIPALS

B.
Inquiries Invited
Florida Corporate
Local

on

Shapleigh Symonds

Southern & General Market

Joins Blair & Co. Inc.

Issues and

Municipal Securities

Securities
Blair

&

McCLEARY & CO.

monds

Co.

that

nounce

has

Incorporated

B.

been

Shapleigh
elected

an¬

Sy¬

Specializing in Florida Issues

Vice-

President, in charge of the firm's

INCORPORATED

Boston

DELISTED

office, 50 State Street, and

CORPORATE ISSUES

Members

New

York

Amer'can

Stock

Stock

Exchange

Philadelphia'Baltimore

556

ST.
TELEPHONE:

CENTRAL

PETERSBURG

7-5131

Private

Wire

LD-32

of all New

Exchange

A

(As oc.)

Stock Exchange

1,

ST

Kidder, Peabody & Co., New




revenue

bonds

PBG

formerly
82-089

York

LOCAL SECURITIES

since

1932, Mr. Symonds was

with

F.

S.

Co. where he served
as

to

and

January,

FLORIDA

TELETYPE:

ALL

specialist in tax exempt mu¬

nicipal

AVENUE

England operations.

manager

Moseley

&

for 10 years

of the municipal bond

department for the organization's
home office in Boston.

Barnett Nat. Bank

Bldg.

Jacksonville 1, Florida
L. D. 47 j

Bell

ELgin 3*8621

PIERCE.

CARRISOM

Teletype JK 181

VV l! I H E R \

.

IMC.

120

(2572)

The Commercial and Financial Chronicle

stitutes

iContinued from page 18

the

how it

public
best

can

interest

be

and

served.

minority

I would go farther and add that

Business Prospects

self-serving

for 1955

impact

enormous

the

on

It

isn't

just

a

situation

them to

big

of

getting bigger. It's also
a
matter of
becoming a bigger
part of each community—a bigger
part of the United States, a bigger

whose

how

more

we

do

it

The

New

country

Yorkers

know

it;

it;

off

the

see

think

I

benefits

to

most

I'm

so.

glad

so many

are

that

going

is

one

And

this—that

the

more

the

bigger

we

It's

by that—make

mean

keep

our

with

the

people

in

it

neighborhood;-make

are

in

not

outside, above

make

sure

carry

material benefits of

enjoy.

of each

and

on

that

sure

And if great enterprises such as

and I

aging

are

tion for

are

in

concerned

in fact

out

who

are

But

basic

in

every

one
thing
interest as

have

to

define

it

have

is

not

in

one

the

most

which
to

obligations of today and tomorrow

those

contribute

thinking only of themselves.

That

remains

ideas

I

way

think

go

know.

this

have

we

speak

have

I

need

far

to

is

to

of

tne
start

' decen¬

question

no

push

out

au¬

possible—all the

as

to our

and

men

women

really in and of the

But

the

does

interest

com¬

order

they

And how

getting

to

can

the

the load

carry

be

must

broad

assist them in

we

experience, the skill,

and the breadth of view to do this

differ

true

where

even

Until
it

better ways can be

worth while

seems

Bell System to take people off the

job

for

long enough periods so
that they will have time to listen,

think, read and discuss—get into
their minds

widely

what

on

con-

found
in the

to us

broader concept

a

of

of

broaden

help

in¬

him?
can't

help but think it does.

And

those

seem

to think

Maybe
would

who

taking

are

different approach

some

be

better, but
learn
that
through
Certainly
we
keep
ideas

new

with

into

this

And

radical departure. Will it

Bell

System

have

we

above. There

and
in

con¬

70,000

are

the first two levels.

distributors

Further it has seemd to
the

place

to

us

reading
materials
after perimental stones we^jare-.tqseing
they are back home, and are .con¬ in the pond hav&va 'long,^Uong.
sidering what to do about further way to send their ripples, tsrtiftfr'

..

alter

couple

a

of

think

To

years

and

to; :act Mn ^the^

community's behalf is not an at¬
titude that can be imposed. It is
Humanistic Studies for Executives not
brought
about
through
a
Another development, which is procedure. It can't be produced by
purely experimental, is a program direction.
conducted by
the University of
But if we can create a climate
Pennsylvania especially for the in management that nourishes this
or

so.

Bell companies. At the

suggestion
Telephone Company
Pennsylvania, the university a
year ago started The Institute of
of

The

of life, then it will grow
spontaneously and naturally and
way

Bell

of

This

is

10-month

a

and

program,

the

Perhaps

full-time

off the

away

at

not

expense

other obli¬

of

gations of management.

Humanistic Studies for Executives.

we

are

learning

about how to build such

That

con¬

is

the

most

I

the

top management group itself—
that

MUNICIPAL

CORPORATE

BONDS

I

BONDS

we

the

BOUGHT

.

first

make

STOCK

what

incorporated
Members

First

Midwest

National

ATLANTA
Bell Teletype AT
Augusta

.

Stock

Bank

3,

Tel.

is

Building

Columbus

private wire to

Main

&

start

if you

most

Tax-Exempt Bonds—Investment Grade Common Stocks

substantial

419 W. JEFFERSON

of

Masonic

8c

L.

D.

384

--Savannah

new

york

three

objectives:

to

This

present

effectiveness

and

—

to

stimulate interest in further self-

™

key executives in

BANKERS BOND E
INCORPORATED

our

business will have participated
by
June of next year. The men are

1894

generally

in

have been

UNDERWRITERS and DISTRIBUTORS

25

ness

A

their

in

the

late

40's

Member

and

1st

typical

plant

will

group

construction

include

for

offices

Manhattan

on

another

SIXTY YEARS

forces

who

in

main¬

KENTUCKY

Exchange

HOME LIFE

BLDG.

LOUISVILLE 2, KENTUCKY
'"

■

'

.

'

'

.

Bell

•

,

'

•

•

i

Teletype LS 186

an

Island

heads

the

-

'

•

_

Long Distance 238

i

'

"

and

traffic

Wyoming.

Along with
operating men
usually be engineers,
laboratory scientists, manufactur¬
ing superintendents, lawyers, a
these

and

there

^
41The Robinson-Humphrey Gompanyjnc.

►

GEORGIA

other

director and

few

a

Local Securities

other

staff people.

They live and eat and study
together.
Morning
sessions
are
largely

in

the

afternoon.

Many of the speakers
group

other

than

considers

are

THOMAS

from

business.
the

The

ideas

One

will

handle

politics

budget,

or

DEPARTMENT

of

the

the

perhaps

economics

Federal

farm

GRAHAM,

HECTOR

W.

WILLARD

Manager

BOHNERT

P.

McNAIR

WOOD

HANNAH

CHARLES

c.

POWHATAN

M.

KING

CONWAY

of

economists, sociologists, psycholo¬
gists, historians and others.
and

INVESTMENT

problems, with guest

case

speakers

fields

Long Distance 421

Kentucky Municipal Bonds

will

medical




Stock

accounting
manager
from
the
Deep South;
a
man
who
has
charge of all telephone business

INVESTMENT SECURITIES

Teletype—AT 288

and

tenance head from Canada and

1,

FLOOR

Midwest

telephone busi¬

years or more.

.

a

of

ATLANTA

Owensboro, Ky.

1

thinking and outlook—to increase

ago and 700

RHODES IIAVERTY BLDG.

ST., LOUISVILLE 2, KY.

Temple

broaden

We started this about 15 months

>

Exchanges

Associate Member American Stock Exchange

development.

ESTABLISHED

1872

Member Neiv York and Midwest Stock

anything and that's
trying to do.

four-week conference.

a

.

1921

co.,

ESTABLISHED

have to

meeting at Asbury Park, N. J.,

for

*

Macon-S

kidder, peabody

J. J. B. BILLIARD & SON

We're in

you

a

Investment Service

have

effort, in
people, is what we
call the
Bell
System Executive
Conference.,. Every month a new

has
596

I

group
of 40 department
heads
from all sections of the
country

Exchange

GEORGIA

Eighty Two Years of

do¬

are

adequate

an

But

kind of

are

numbers

Clement A. Evans 8c Company

we

learn

we

Our

a

humbly that

questions

grade.

some

want to

SOLD

the

to

putting

raising.
are just
groping.

We

COMMON

are

price

E.

C.

JAMES

john

K.

LEWIS

M.

FETTER

VOLKERDING

ROBERT

H.

ROBERT

JOHNSTON,
E.

WILLIAM

PURYEAR

P.

gragg

little

justified

so

first effort.

anything like

as

answer

COLA COMPANY

we

our

don't regard what

been

COCA

where

want to say very

ing

STOCKS

is

good bit of

a

climate.

a

feel

In Louisville Since 1872

that

within

is

start

ex¬

ferees

what
their
job really is — and
strengthen their talent to carry it

dealers

more

These

out.
UNDERWRITERS

a

group of about 10,000 people in
the
third
le/el
of
management

the

program.

the

the

In

charge isn't content

a four-week
continue to send

a

we
are
still just nibbling
edges of the whole matter.

the

at

introducing
one.

testing
the
humanities

us

But

can only
experience.

we

only

They

part

too.

so

con¬

toward better ways of
growing broad-gauge people?
I can only say—we have hopes.
And we are probing in
other
ways
too—using after-hour and
other programs offered by several
universities, taking part in the
Sloan
Fellowship
program
at
M.I.T., entering our
people
in
courses conducted
by the Ameri¬
can Management Association.
We
are
bringing guests in
to
our
regular management conferences.

view¬
new

is

program

This is

the

give and take of

to

Park

literature, art, history, music,
philosophy, the social
sciences.

no

sights—give a man a better "under¬
standing of the relation between
his
job and the world around

sessions

in

adequately
people.

what

good community to know

who

founda¬

we

job well?

don't
a

that

are

a

as

community's

man¬

kind of life, then our

our

the

committee in

as

against it;
people who

another.
You

I

we

the

way

we

company's

makes

one

that

when

thority

or

interest

And

about

town

But—

the

private

right where he lives and

Certainly
we

The

and

only

essential
with

city and town do not think of the

more

of
can

munity.

business

our

aegree

to

community,

the

operation

practically

we

intimacy

every

largest

tralizing."

sure

closeness and

and

you

in

act

Asbury

values of study in the

community."

I

full part

stay small in the community.
I

be

may

help each member of odr
respective organizations to do his

grow,

sure

the

the

how

There's

the

on

must make

we

beginning to understand that big
business
is
largely
responsible

widely Americans do
realize
this, the more
also, it
seems to me, they are coming to
hold big business to what they
believe are its total obligations.

com¬

about it?

large

to express

way

ization is essential to the country's
welfare and security.
They arc

many

tne

enterprise.

they must have a
in community well.
.
V *
, | .

concern

Perhaps

everywhere, in my opinion,
seeing more clearly the direct
relation
between
bigness in in¬
dustry and the rise in our stand¬
ard of living.
They know large-scale organ¬

the

in

satisfactions

in

through

awarg this is not an
thought.
And I'm glad

works.

Ameri¬

are

Ifor

intimate

and

and

munity, in

I'm

being.

cans

life they

only by staying small and

close

constituted.

deep

people

them.

is

sense;

the

—

preaching. There is no asking or
advising the conferees to "think

achieved

premise

know it down in Punkin Creek.

First

the

to

usual

Does it stimulate

organizations

they

and

Close

and

The

teacher-to-pupil in¬
the

help

original

knows

Small

no

in

points?

that is

path of business educa¬

tion. Last year there were 17 men
in the group, this year 20—most
of
them; a
little
younger
than

questions and free discussion.
There is

likely to continue.

minds

Now

important all the time.

do.

to

my estimation, that we
shall have the chance to show that

now

Others know this just as well as
we

mem¬

human

and

more

ventional

international prob¬

on

have scant place for us as we are

so

means

becomes

and

—

discussions

even

working for the good of the
community, from the community's
point of view, then that view will

of New York

and

It

affect

not successful

are

of its

any

Community

in

City, a bigger
Springfield and Junction
City and Punkin Creek. What we
do

vitally

so

pro¬

struction

Stay

the community

part of

much

bers and that is

conceived

ever

be.

services

than

power

In fact I'll say it this way: If we

business

part

have

we

even

discuss

self-interest,
for
in
this lems. In every instance the talks those in
country the community still keeps by guest speakers are preliminary ference.

well be broader—far broader

may

—than

community.

not

business. We

will

and
American
have talks and

groups

mote

more

such

will

Another

supports.

Thursday, December 16, 1954

...

Jr.

Number 5386

Volume 180

..

concluding at this moment. But faith that the job deserves our
very much that we and best efforts. The result, I am conothers in industry will TOntmue - .
d
.„ be
f ,
u
benefit
to
work at it, even though we
'
.
may fumble a bit in the process.
in our own affairs, to all busiAll we need to do is act on our ness, and to the country.

in
I

hope

vanced
from

sharply during the month

$14.77 to $16.44, or by 11%.

the increased mar¬
portfolio holdings

Reflecting

16

SCUDDER,
Common
total
of

plus new investment funds re¬
ceived, net assets of National In¬
vestors totaled $45,600,000 on Nov.
30 as compared with $31,800,000

share.

assets

Mutual Funds

Fund,

This

net assets

a

minutes, elec¬

that cook meals in

shares

and

1954, or a net
56% for the
period. The net asset value per
share
increased
from
$7.79 per

tronically

$748,813.38 Jan.

that

gain

monitored highways
permit you to sleep as you
drive, completely automatic fac¬
tories,
and
long-distance tele¬
phone dialing."

of

STOCK Fund

COMMON

THE

Securities,
Inc.
reports
assets of $14,213,452 for the fiscal
year ended Nov. 30,
1954. This
represents an increase of $7,119,021, or slightly over 100% com¬
pared to last year's figures.
Group

advanced
Shares out¬

Asset value per share
from

$8.45 to $10.84.

increased
from
839,658 at the end of 1953 to 1,312,019 in 1954, a gain of 56%.

standing

of

funds in

The Common

year

in

in

in

mining

building,

and

steels, railroads, agricul¬
tural
and
heavy .construction
machinery. Holdings in these in¬
dustries now comprise 53.27% ' of
meals,

The

Stock

Common

against 37%
SOVEREIGN

porting
record

assets,

as

Fund

as

,

reports

shares

reached

Francis F.

sold

INVESTORS,

figures

number

of

in

total

39,000

during

of

shares
month for

new

the

total

26,000 shares, adding
the

of

assets

1954

to

re¬

date,

$398,000

Fund.

to

During

sales of new
approximately

net

shares have added

$1,000,000 to the Fund's assets.
Mr. Randolph attributed the in¬
crease

tional

investment interest in Na¬
Investors'
to

shares

improved

rise

in

stock

during
business

sentiment

market

resultant

and

prices

the

in

general.
He

net

stockholders

the

of

reported that the asset value

National

Investors'

shares

ad-

as¬

John E. Kerrigan

Brown

of

net

total

1950,

assets

were

$664,758.

total

Continued

123

on page

Statistics—Month of November, 1954

Company

(In

,

000's

V;:.';;:"''.v, '
Total net assets

v
i

of

$5,338,517

of

Month of

11 Mos. Through

October

November, 1954

$100,230

$70,506

$762,959

31,836

shares

31,868

364;697

-

31,

October

November

At $5.8 Billion

$263,647

:

1954

31, 1954

285,893
301,Ud8

:

—

295,860

30, 1954
Month of

No.

of

new

>!*:"

SHORT-TERM BONDS

1953

30,

September

monthly report, net assets of 114

$4,146,061

Month of

December

According to the National Asso¬
ciation of Investment Companies'

12/31/53

10/31/54

$5,814,839

_

I

$)

11/30/54

November

Sales

November

October

7,300

11

Month of

Mos.

6,280

Through

November, 1954

plans

accumulation

opened in period (73 companies
with plans)
:
—1

60.580
(Estimated)

members on Nov. 30,
1954, totaled $5,814,839,000. This is
a gain of $476,322,000 over the $5,-

open-end

338,517,000 of assets at the end of
October and $1,668,778,000 higher
than the
1953 year-end total of

$4,146,061,000.
mutual

of

shares

fund

Specialists in

the

for

sales

municipals

louisiana

$100,230,000, compared with $70,506,000 in
the previous month, bringing total
during November

were

first

months

11

Dealers in

of

Municipal and Corporation Securities

1954 to

$762,959,000. Repurchases
(redemptions) in No¬
vember amounted
to $31,836,000
shares

of

and, for October, totaled $31,868,000.
For the first 11 months of
1954

Barrow, Leary & Co.

$364,-

totaled

redemptions

697,000. Mutual Fund sharehold¬
ers,
the Association notes, have
the option at anytime to convert
their holdings into cash equal to
the

current

of

value

asset

SHREVEPORT 80,

LOUISIANA
Bell Teletype SH 82 & 83

Telephone 3-2573

their

shares.

that 7,-

accumulation plans, pro¬

new

viding for the regular purchase of
Wm. Perry

•

,

share.

per

The Association reports

W.Newman

At
the

for

114 Open-End Funds

Fund Assets Now

300

Morris

share.

per

reopening

of

HOLDINGS OF CASH, U. S. GOVERNMENTS AND

Sales

sales totaled

time

public sale of shares in the Spring

-

per

of $40,529,160, equivalent

$29.04

the

of $5,153,164,

year ago

Redemptions

$599,000.

He stated that net

and

of Nov. 30, 1954 shows

high

President

and

growth stock mutual fund,

announced that

a

month since

Randolph, Chair¬

the Board

of

of this

Corpo¬

sales of new
the highest level

that

in November for any

man

to

1954

Accumulation Plans—

INVESTORS

ration

1946.

to

year ago

its invested

stocks.

common

November

June 30, 1953.

on

of

earn¬

being stimulated by the
business activity, no¬

are

increase

tably

whose

industries

basic

ings

89%

NATIONAL

were

During the

1,

on Jan. 1, 1954 to $10.67 on
Nov. 30, 1954, an increase of 36%.
The Fund continues to have ap¬

proximately

net

2, 1954 of $48,467,836.
$34.18 per share. This
with total net assets a

compares

equivalent to $14.85

.■■■■••

than

more

share

were

Stock Fund increased its holdings

Assets

outstanding.

$1,169,853.83 compared with

were

with

compares

Clark

sets on Dec.

equal
room-to-room vision, radar stoves

&

total

reports

Inc.

2,

$7,944,499, equal to $19.90

Open-End
STEVENS

SCUDDER,

Dec.

on

Clark

Inc. reports

121

the year.

the first of

at

&

STEVENS

Stock Fund,

net

ket value of its

„

.

.

Continued from page

(2573)

The Commercial and Financial Chronicle

.

fund

mutual

shares,

Erwin R. Schweickhardt

E. N. Anagnosti

Vincent B. D'Antoni

George J. Bourg

opened

This

in November.

investors

by

were

compared with 6,280 plans started

Underwriters

Distributors

—

Dealers

We

—

especially invite

in the previous

month and brings
the total of such plans opened in
the first 11 months of the year to

Dealers in

estimated 60,580.

an

Cash,

LOUISIANA, MISSISSIPPI, ALABAMA, GEORGIA

U.

and

rities

Louisiana 2nd

Government secu¬
short-term obligations

your

S.

held by the

114 Mutual Funds on
$295,860,000,

Belle

Mississippi Municipals

or

October, the figure was $201,058,000, or 5.6% of assets.

Co.

South

Shore

Southdown

Inc.

Common)

and

(Preferred

Oil

Sugars,

Inc.

Standard Fruit & Steamship

Boston Trust

Trading Service

Trust

New Orleans Public Service

New Orleans Bank

Stocks
Investment &

Oil

Mississippi Shipping

At the end

5.1% of total assets.

of

inquiries in:

Corp.

Bank

(Assets)

Nov. 30 amounted to

and OTHER SOUTHERN MUNICIPALS

Isle

Canal

(Preferred

and

Co.

Common)

Splits 3-for-l
Shareholders'

NEWMAN, BROWN & CO.
INC.

321

Hibernia

of

SCHWEICKHARDT & COMPANY

record will receive two additional

MEMBERS NEW

shares for each share held making

Bank

ORLEANS

NEW

U;

Boston

shareholders

that

announced

of

Trust

net asset value
of $33.92 the day before the split,
Shareholders'
was
among
the
a

Building

12,

LA.

Teletypes NO 189 & NO 190

Long Distance 345 & 389

With

3-1 split.

a

809

ORLEANS STOCK EXCHANGE

HIBERNIA BUILDING

NEW ORLEANS

highest priced open-end companies
currently offering shares through

12, LA.
Tulane 6461

Teletype NO 344

& Tulane 8812

This net asset value rep¬

dealers.
resented

a gain of 69.6%
as com¬
with the $20.00 which the
received
at
organization

pared
Trust

HOWARD, WEIL, LABOUISSE, FRIEDRICHS

May 14, 1948, and a gain of 33%
compared with $25.51 at Dec. 31,
the

On

AND COMPANY

Slock Exchange

Miduest

New Orleans Stock Exchange

the

FOR

MARKETS AND

DEEP

SOUTH

RETAIL OUTLETS

SECURITIES

INCLUDING

Canal Assets, Inc.

Mississippi Shipping Co.

Canal Trust

Motion Picture Advt. Serv.

Central Louisiana Electric

N. 0. Public Service

Higgins Inc.

Southdown Sugars Inc.

A dividend of 15c
all shares, including
additional shares now being

share

Louisiana and

222

TELETYPES:

456

to




White, Weld & Co., New

Dec.

27

if

to

17.

the
split, this
makes
42c per share
from this
source for the year 1954 compared
with the corresponding figure of
39c per share in 1953.
for

Trustees

also

MISSISSIPPI

BANK STOCKS AND

LOCAL CORPORATE ISSUES

announced

proximately 45c per share from
net capital gains on Jan. 11, 1955.
This distribution, which will be
also

be

York

shares

NO 365

NEW ORLEANS
Private Wire

Dec.

of record

Adjusting

NO 364

Tulane 2711

LD

in

LOUISIANA AND

that they expect to distribute ap¬

Mississippi Municipals
Carondelet St.

paid

be

shareholders

declared
TELEPHONES:

Trading Markets

um

on

will

issued,

The

New Orleans Bank Stocks

Active

f

and

income

capital gains.
per

TRADING

the Trustees
distributions

record

investment

net

from

day

same

announced
Members

JOHN J. ZOLLINGER, JR.

JAMES E. RODDY

IKE D. SCHARFF

1953.

per

on

or

paid

and

share

basis last year.
distribution

on

the

compares
on

Schorff I. Jones
INCORPORATED

about Dec. 24 will

the

additional
with 10%c

corresponding

TELETYPE
NO

180

&

219

will

be

optional
or

to

in cash.

SHREVEPORT, LA.

L.

ST.

D.

Tulane

Floor)

NEW ORLEANS

The capital gains

shareholders in stock

CARONDELET
(Ground

181

235
0161

12, LA.

JACKSON, MISS.

122

(2574)

\

Continued

from

alert

18

page

The Commercial and Financial Chronicle

to

totally

sort

any

would

Materials and Resources

good
15.

too

more

year

the state of
of

files and the state

our

minds and

our

report. We

our

sources

the

vastly

are

the

of

resource

via

extensible

im¬

human

agination.
To
remember
what
happened when we were cut off

I

for

plan

50

think
as

as

will

trast

with

longer

as

seem

might

ours

jcon-

we

—

no

between

it

discussed, the
public in the past has been only
too
apt to hear the statements
of the

Moreover, short of

the

about

the

of

for

need
facts

new

certain order,
of convictions

a

set

certain

a

facing

about

same

our

world.

Avoiding: Extreme

Statements

When the problem of
and

One

extremes.

our

are
virtually
nobody but a

and

bunch

Nervous

of

bother

is

extreme

resources

limitless,
to

bring
talk,

for

even

materials

is

resources

that

n#w
#

Nellies

would

the subject up
much
less
for

thought.
our

;

■>

.

The other view is that
practices have been so waste-

ful

and

there

in

sinful

is

the

practically

that
that

past

nothing

,4,can be done about it now, short
•
of the most heroic measures of au¬

sterity and self denial, and even
they may somehow not be enough.
I

do

for

not

believe

moment

a

in either of these extreme
and it

of

me

Commission

our

that

to

seems

neither

is

the

views,

that the work
demonstrated

whole

truth.

Certainly, the ingenuity of man
is not going to die out, and when
some

material

runs

reasonably count
will
else

we

natural

World

War

dustrial

world

that

will

we

ing to find

is

wake

newspapers

the

last

lead,

tin,

or

without.

headline

iron,
from

we

The

is

much

signs

much

subtle.

more

tHe
The

signs lie in the slowly rising rea*l
of

costs

materials

undermine

slowly that

—so

what
too

is

wrong

late

in

—

"Progress

through

Shall It Be

it that we
find something
its place.
To this
upon

slowly
living

do not know

we

until

it

which

is demanded of

can

that

standard of

our

is almost

case

moiie

Catastrophe"

to

take
our

extremely

finite

re¬

But

this

if

us.

of

thing
we

can

be
be

SECURITIES OF THE SOUTHWEST

;

your

Bank

this

squander

for

are

use

and

stupid,
at

—

efficient

the
1935

year

dollars.

same

economy

from

resources

balance

in

this

Fortunately,

equation

many

ways

to

hammer

hoard

or

to

let

down

soaring high
it

sify the search for
or

new

Nor

prices

throttle

Rather

portant for

but
lot

to

face

this

statistical
10%

our

our international
responsibilities enter. For the in-

terials than

we

produced

1900

than

we

raw

we
ma-

produce, whereas

consumed.

we

free

materials

world,

15%
In

more

recogni-

our

.wlieiwert, in the
could get The best

we

and this would be a very high
te
'
?nd
represent 'a
great
-change m our world outlook—we
would still need

vastly greater

a

?°rmerly supplied, at home,

even

fact:

more

in

yalue a* the least cost—whenever
this was consistent with the

se-

c^ity of the United States. Now
this was not suggesting that

we

^w^ti™c 5
Lrp
thjL "5?

if

nf

^

kI

fanf

hel'ed
ec0n0mic

ca?Ls
must

serious

as

dislocation

for

shoiAd be helDed

other

Buf

thinkofourselves

Deat

as

nati0n

a

and

set 0f districts, mining
,i .am,imt

mSe.

extreme

cause

I

not

or

as

world we get along as well as we
do. Along with the most progressive technology in the world —
k°ld> resourceful, forward looking
and magnificently inventive—we
cling to ideas in the realm
of Political economy for which
the kindest name is medieval,
Among these medieval ideas is
that idea that we should continue
for

the

"onlv

other

is extreme dependency on

answer

distant

hazardous

and

wilt

have

economic

to

keep

domestic

supplies;
some

un-

resources

and

facilities "in

being" for reasons of
alone. The line cannot

security
foe

drawn

in

neatly

anybody's

after-dinner speech, for the problem -is complex, and it changes

with

time

who

think

and
of

events.

But

imports

only

those
as

employment are, I am sure, failing
utterly to take into account the
potential of the Ameri-

enormous

future.

can

How

The

true

problemVis:

to keep up

with our
consumption—and strangling ourselves by denying ourselves cheap
and plentiful raw materials is
most certainly not the answer,
are

we

The leadership

of America,

Securities

able

develop.
or

to

more

gold in exchange

when

goods,

our

what

we

piness

has been made; it must be continued
with
all
our
national
vigor. Not only should we import
on

freer and freer terms—we must

import; a failure to recognize this
fact can wreck a large portion of
the free world economy, including
our

own.

If this fact is not faced,

against

a

is

will

good

mere

powerless

grim future; if it is not

ones.

im¬

exploration

been

Era

not

much

enough

imagination,

put
of

explore,

But

even

forth

to

the
ever

less

work,

has

start

a

yet
New

man's

TEXAS

exploration of his
planet—this time not in voyages
the

across

land

and

water,

but

downward, through the Basement
Rocks

place
is

of

the

for

this

Globe.
new

And

to

era

certainly right here at home.

A

I

FRIDLEY & HESS
FIRST NATIONAL BANK

HOUSTON 2,
Bell Teletype HO 42




BUILDING

Rise

think the fact

that
our

is

during

the

for

The

TEXAS

must
next

consumption
due

rise.

total

Tbeuwi, Wo/cf/se/?

years,

materials

Members:
National

years

for

a

output

SAN

of

doubling

long,

New
Bank

York
of

Stock

Exchange

Commerce

Building

American

\*ancoad/

San

Stock

Antonio,

Texas

Exchange
•

(Assoc.)

CA

6-7141

tremendous
ANTONIO

our

National

25

«??

be faced
25

of all

another

economy has been

Telephone ATwood 8221

SECURITIES

the

being

Materials Consumption Due for

every

long time,

regardless of shorter-lived booms

in

essential to future peace, hapand prosperity. The start

an

development of
what
we
know, or suspect, we have. Most
geologists agree that more min¬

been

a

threat to domestic investment and

materials,

erals
probably
lie
below
earth's surface than we have

a

other-

and

Corporate and Municipal

we
re¬

suggesting That be.
self-sufficiency is

economic ^foilv

we

regional

£°°ds.
slowly knocking down the bar1 sometimes wonder how in the riers to freer and freer trade, is

inten-

in

—

freer

trade, for the equal
friends and ourselves,

aii^. ^nemP*oyment for industries

still

to realize that

us

this

to

lies
to

needs

our

achieve

must

that

needs

Here is where

And it is im-

more.

now consume

to demand

is

world

calls

it
of

now we are a raw materials defi-

whole

new

Domestically, this
proving incentives

is

for

free

have

own

materials;

mere

a

cit nation—however much it may
pain-some members of Congress

the

of getting old

ways

is

consump-

resources

economy.

To

good of

We

our

amount of materials from our own
domestic resources than^we draw
today- There are those in this
.country who think that rising
lmPorts can1 only spell .dislocation

even

the

consumption is thought-

materials

DEALERS

to

to improve the balance
mind, the way to do this

tion

DISTRIBUTORS

re-

but

exist

not

it

UNDERWRITERS

the

of

place where demand is.

drawn

of

my

Teletype: IIO-566

To

re-

known to be adequate for a foreseeable future.
Many things are
out

Bldg., Houston 2, Texas

Telephone: PReston 0211

perhaps 60%

-

national

certainly evil,
them
is certainly

today.
National

in
the

than

more

output

as a nation do anything more
radical than what a good houseMoreover, high consumption goes w.^e does when she goes shophand
in
hand
with
prosperity, Ping—but even so, it roused the
and
low
consumption
is
only }re. °* a t'ew extremely nationalanother name for depression. We
lstlc
"self-sufficiency"
minded
do not want to leave our timber
Pe°P^e who somehow think, or
uncut
and
our
ores
unmined
say they think, that it is better,
when the only effect of this is
ai.ld more patriotic," to subsidize
industrial undernourishment and
high cost inefficiency at home
economic
stagnation, and when tkan ^ *s to exchange dollars for
it means
unemployment in mills &°.°ds a m 0 n g „o'ur dependable
and
factories
and
not
enough friends and allies — thus giving
wages to buy food for the family
0Ur own consumers the benefit
at home.
High, steady, but un- °f the savings, and our friends
wasteful
consumption would and allies the benefit of the dolseem
to
be the sign of a
truly lars
which they can buy our
—if

General Distributors

the

is

abundant

or

BRADSCHAMP & COMPANY
Union

to

even

should acquire

Responsibilities
to

as

sponsibilities:
sources

fully
IS

in

awful

an

raw

must

MUTUAL FUND INVESTING IN

be obtained from

States

-

National

TEXAS'^FUND
may

gross

technology,

for

or

time and

local investment dealer

I

now

reason

heretofore* resPonsjbilitiM;.^|{^, Hi$i.,of This jmd other^facts,prinour
been
emphasized the

First,

the

freer

happens to be

total

to

—

Resources

Prospectus

we

and

But

of

exchange to fill

and

where

more,

Fortunately

economy.'" We must take careful
pains to avoid forced planning by being willing to assume
in
our
private and corporate
decisions and in our support of
public policies-—national and in-

duck.

of

billion

suspect that the rise will be

measured

Planning Association which says,
"through effective private planning we can avoid a ,'planned

to

Voluntary

in

$566

enterprise
didn't
take
its
doubling of the total output does
responsibilities seriously enough,/ not call for a doubling of maor
soon
enough.
And this sort terials consumption, thanks again

hoard

A

is

the rest
of

That's

it.

put

there

value

aVG

know

sort
we

at

dollars.

Report

think

the

free

Forced Planning

averted

our

United

what¬ -of planning I am dead set
world, against.' I wholly agree with the
get along expressed belief of the National

trouble

1950's

the

or

must

put

total.output

our

—which

ning rigidly enforced by government, and encasing free enterprise in a strait jacket because

the

insidious than this, and

more

in

telling us that
something —

or

gone

and henceforth

morn¬

of

scrap

—is

one

up

banner

a

the

ever

to

war, the in¬
not so arranged

would

surpluses

escapable fact remains that, for all
our technology, we are going to
be forced to import more and
more of the materials of our ingreater rate of increase in pro- dustrial civilization in the future,
ductivity — we might reasonably
please consider this: as I have
have projected that the gross out- said already, today we import a
put reached in 1975 might not be net
of our materials needs,
$566 billion at all, but instead a But eYen if> 20 years from now,
whopping $700 billion. The mere we raised our proportion of imdifference between
this
higher P°rted materials to 25%, of the
and lower figure is $134 billion total we should then consume —-

rubber

is

II

eventually

extent,

,

short

from

That

chrome, and

more

manganese.

If we were writing our
today instead of in 1952,
in the light of revised assumptions — larger
population
and

me, is between
during ^voluntary planning and forced
appreciate planning.
What do I mean by
the miracles that can be wrought
forced
planning?
I mean planby modernday chemists and en¬ ning at the eleventh hour, with a
gineers, But this is a small ex¬ gun at your head;
planning that
ample of what a well-known revolves around the manipulation
economist
has
called
of
"Progress
scarcities
that
sets
neighbor
through Catastrophe," and I against neighbor. I mean planthink we would
all
agree
that ning
to
avert
the
Catastrophe
Progress ought to have other, that could have been foreseen.
and
b e t te r
motivating forces. By forced planning I mean plan-

with

emerged
and

quarter-century ending in 1975.

and

report

to

seems

many

really need is

greater.

planning and drifting. The choice
now,

tin

will not double again in the next

of

and

—

in

choice

a

say,

world

a

simple

tomorrow's

have

or

and depressions, and there seems
little reason to suspect that
it

taking such

you

complex

grown

that

years

short-sighted, but in

which

the passage of one
did a great deal for

and

master

long view is,

a

things,

early signs.
I am
trying to evolve

of

be

for

even

For the Nation's Growth

the ;

against

Thursday, December 16, 1954

...

Commerce

Bank

of

Building

Phone CA 6-7141

AUSTIN

Brown

Phone

CORPUS

CHRISTI

Building

Jones

Building

8-2509

Phone

2-1652

SAN

ANGELO

McBurnett

Phone

Building
6032

Number 5386

Volume 180

faced,

The role of Accident in

national

and

life

is

the

Jersey, Pennsylvania, Ohio, Dela¬

at all.

exercised

future cannot be

The Commercial and Financial Chronicle

.

about

judgment

good

.

.

personal

always going

to be

pretty big: to diminish it by
a few percentage points is to give
an
even
wider scope to freedom

and

taking

now

of the first order of urgency, and

lies

before every

Mr.

and

Congress

hope

we

the

of

that

we

rich and

world.

I

in this respect

have

can

free

sales

the

tion

October,

in

considerable
the

sales

degree

Robert S.

the North

American

organization

wholesale representative. North
Securities. Company

American

adviser

investment

is

distribu¬

and

tor for Commonwealth Investment

Company

Fund.

-

mutual

York

area

Munson

their,

Banks

and

Mr.

G.

elected

President

will

Chamorel

the

has

and

a

1,

is

the

resigning

as

of

as

and
of

been

the

also

ters

Banking

$10,000,000*

5,494,600

10

4

22

J.■.3

551,777
530,768

Milwaukee

__

11

'871^000

II

Detroit

4

2,12l',699

Louisville

4

.

♦Development just announced.

ana

com¬

are

in

income

Sanders

this

Newsom

&

INVESTMENT SECURITIES

as it may
municipality
stores, whether

1309

main

street

Dallas

form

to

obviously

is

division

a

shopping

areas

being built
that

cen¬

close to one
fierce competition

a

so

competition

a

...

in

resulting

is

that

'dog eat dog'

a

lIfalker-, S^astin

sur¬

vival of the fittest situation.

the end of

population is in¬
creasing at the rate of 2,500,000
per annum, the expansion of our
retail or commercial properties is
far in excess of our growth re¬
quirements."

Dealers

(Paaaenev

our

Rubloff, "ilim

Continued Mr.

believer

the

in

proper

commercial

of

a

jfiriveitniMit fyecuvUiei.

2, ^/eocai

-

de¬

shop¬

ping centers; or for that matter
strip developments providing:

-

"(1) There is an absolute proven
facility.

need for the

"(2) There is the proven spend¬
able income to support

These

"(3)
with

it.

of

types

not

do

ments

compete

develop-,v
ruinously

established

already

Underwriters

"Upon these conditions I have
continually advocated and encour¬

Co., N. Y.

Co., Waco

Rauscher, Pierce & Co.

busi¬

areas.

ness

to

Branch

2

without

planning

result

many

are

area

Riverside 3681

Houston

5

contends,

grouped

or

"While

Co., San Antonio, Robert E. Levy &
and

Stage

406,321

has developed between themselves
for the spendable income in the

DALLAS 1, TEXAS

&

Planning

Construction

given

end

another

Fidelity Union Life Bldg.

Sachs

Under

Completed

neither," continued Rubloff.

"In

Eppler, Guerin & Turner

Goldman,

Brokers

•

Dealers

•

Distributors

the proper development as;
redevelopment of all types
of commercial property.
In some
aged

Office

well

as

cities

to

of

effect

the

lieve

what

I

be¬

over-expansion of

be the

shopping centers has already com¬
pletely demoralized
some
third

Southwestern

rate

Securities

well

as

some

as

For

sections.

business

secondary

example,

the

transgression of shopping'cen¬

ters

retail

existing

on

in their respective
tion

just

ion

Investment

is

tOTIXINO

Midland

Branches:
Odessa

TEXAS

been

Phone

Riverside

built at

hundreds

Lufkin

Hardly

*

-

they

RETAIL

-

TRADING

CCRDCRATEJ, MDNICIDAD




Mercantile Bank Building

cost of many mil¬

a

more

either in

are

planning

or

day

a

passes

number of these

DCNDJ

small

all

reached
.

anyone

over
a

the

without

America.

a

It

has

where. almost

owns

a

Dallas

1, Texas

Telephone

Bell Teletypes

Riverside 9033

DL 186 and DL 197

stage.

developments be¬

point

who

Utility, Railroad and Industrial

Bonds—Preferred Stocks—Common Stocks

are

ing announced in cities large and

UNLIJTED

Public

strip devel¬

lions of dollars and hundreds upon

5471

construction

UNDERWRITING

whether

but

centers or

Stocks

Mutual Investment Funds

opments, approximately 1,800 have
T 11 I AS,

,»

"

.

is,

shopping

shopping center

a

Bank and Insurance Company

cities, to men¬

difference of opin¬

a

what

to

as

really

Bankers

MlktANTII t CC WHtTCE

Municipal Bonds

facilities

few.

a

"There

Securities Company

Texas

accompanying table indicates

the

SOUTHWESTERN

«r»

Rubloff.

that will ultimately sup¬

sales

port

Vice-

Trading Markets in Southwestern Securities

Muir Investment

he

More

velopment

Wires

HoViowWic

dertakinS than the building of
shopping centers," concludes Mr.

tap

firm

Direct

QTvq„™ic

more arduous or habardous un-

the spendable income
supporting these business sections,

year.

Teletype—DL 358

profitable dollar,

they realize there is no

Population

whole, or

a

any

locale.

Will

Corporate and Municipal Securities

415

do

mnt.a

have

(l!)50 Census)

Chicago _IIII
Indianapolis II

program

tablished business areas

Mr. Cha¬

1955.

Belgian-American

he

who

a

Little

shopping centers or strip develop¬
ments, competitive to already es¬

Corporation, from which position

be

that

loca-

anywhere from 300 to 1,-

Columbus

the creator

areas

many

individual

Mr.

company,

Distributors

Underwriters

or

morel is Assistant Vice-President

serving investment dealers in New

or

center

builders

City
(Metropoh Areas)

us

Com-

&

built

proper

spendable

country,
apply to

Mr. Mun-

effective Jan.

of

Rubloff

have

we

to

much

the

Mr.

of

any

that here lies

bad—

or

are

Metropolitan

pletely
over-stored. > Generally
speaking, we do not need more
stores—actually our need is foi
better stores.
There
is just so

Director and Secre¬

of

shopping

a

commer¬

redevelopment

judgment,

Pacific.

that date.

Director

a

the

000 homes augment their building

$400 million Fort Dearborn

regard

Joseph A. Straessle,

P.

erected

large Chicago realty

"Unfortunately,"

Ma¬

Mr.

through

Wilson

a

than

Mr. Rubloff is

"because

tary of The United Corporation.

and

capacities,

new

is

more

for

"Home

Chicago, and the $200 million
"Magnificent Mile" development
on upper North Michigan Avenue

Ad¬

the First

who is retiring on

Bank's firm, Banks & Co.
In

Business

1, 1955.

,

in

funds

succeeds

son

of

for

MUNSON, JR. has

effective Jan.

tion

estate

see,"

to

Arthur

Project

of the United States

S.

real

according to
Rubloff, Chairman of the

of

of the

European Securities Company,

can

represented both Com¬

monwealth

.

in

Corps in the

Mr.

Prior to pee. 1, Mr. Banks

New

fund

of

estate

care

pany.

been elected President of Ameri¬

Commonwealth

and

Mr. Wilson

Marine

CHARLES

Wilspn has also joined

real

firm

Bachelor of

a

with

rine Air Wing

Cole¬

President, announced.

(Stock

served

of

demoralization

as

Arthur

New York resident Vice-

curities Company, S. Waldo

as

he

dol.ars

foreclosure

cial

»During World War

been

president of North American Se¬

man,

the

graduate of Rider

College and 'fifolds

II

elected

mutual

conclusion

formed

they have the perfect site

buyers, but rather
of the opinion

they

in Chicago.

Mr. Betz is a

ministration.

has

the

of

At ^e time he directed

laboratory for the study of

PROGRESS

BANKS

M.

in

methods.

Science

MORTON

experience

good

has

the

Board of the

retailing and wholesal¬

phases

retail

PERSONAL

organiza¬

1953.

had

a

Mutual Funds

■

The newly-appointed officer has

as

121

page

Delaware

acreage—located

ccmd

of

home

because

shop-

of our established business
well as these hew centers,
and the result could bring about
areas

tential

stores.

more

it

value

view of offering .con¬
venience of shopping for their po¬

we

of

the

altruistic

econ¬

trend

destroy

of

better stores, not

many

since first

manager

joining

business.

from

Fund's

would

ing

Continued

the

of

both

future

a

the past.

as

through

City, Phila¬
delphia,
New
Jersey
and
New
England where he has been active
area

well

says

of shopping centers. Holds

excess

continues,

present

centers

very

in New York

shares

the

ping

millions

of

distribution

sale

in this country are not

going to be laggard
so

Parliament

will

Betz

"If

.

supervise whole¬

by

Chairman

Nelson,

need

W. Linton
the Board.

announced

was

Rubloff, head of large Chicago realty firm,

is threatened by

omy

Dela¬

of

Inc., sponsors
million Delaware Fund,

of the $25

private and pub¬

every

-

Distributors,

ware

as

'group and

lic

Vice

distribution

wholesale

it

has been
President
in

BETZ, JR.

appointed

toward

steps

T.

123

programs by including either strifc*
developments or shopping centers
—and
not
necessarily with the

Overdevelopment of Shopping Centers

Arthur
FRANK

prosperity than they have
enjoyed before. The idea of plan¬
ning toward Utopias in this coun¬
try is dead, and need not be
mourned. But the idea of looking
both Survival and Growth is

Sees

and

York.

New

and

ahead

Connecticut,

Southern

ware,

(2575)

piece

of

Houston
Waco

•

°

Private

Austin

Wire to New York,
Other

San Antonio

•

Harlingen

•

•

Lubbock

St. Louis and

Principal Markets

In

124

The Commercial and Financial Chronicle

(2576)

latest week

Business Activity

week

or

IRON

month ended

operations (perce^i ol Capacity)
Equivalent to—

fitcqi lugoLB and
AMERICAN

§1,944,000

(bbls.)

oil

fuel

*1,958,000

(bbls.)

output

_

.

—_____

Dec.

freight received from connections

'

(no. of cars) —Dec.

6,191,350

6,179,400

6,941.000

6,964,00€

3
3

24,410,000

24,130,000

23,069.000

24,319.000

2,554,000

2,513,000

2,395.000

2,547.000

Wholesale

3

11.187,000

10,888,000

10,330,000

9,589,000

Year

Month

Ago

7,555,000

7,661,000

7,839,000

151,378,000

149,138.000

36,244,000

38,178.000

34,217,000

3

131,432,000

134,916,000

137.198.000

129,764.000

3

54,355,000

55,513,000

56.469,000

51,073,000

of

$149,907,000

$147,699,000

$43,637

*$43,929

$47,037

COM¬

Septem¬

147,961,000

35,430,000

OF

8,628,000

3
3

$152,321,000

DEPT.

Retail

3

—

SERIES—Month
of

Manufacturing

,

149,191,000.

(millions

ber

dollars):

______

._

___

11,686

661.797

583,515

695,097

570,503

4
4

583,048

611,756

-

■

•

5

11,983

22,451

22,924

$77,733

*$78,163

$82,000

$594,200

$1,264,500

$553,300

$1,214,582

Total

*11,783

22.410

____________v

CASH DIVIDENDS—PUBLICLY REPORTED BY
S.

U.

CORPORATIONS^;.

COMMERCE

Month

—

S.

of

DEPT.

OF

(000's

October

662,026

573,538
"

CIVIL ENGINEERING CONSTRUCTION
GINEERING

V

ENGINEERING

-

Previous

OF

thousands)

(in

NEW

MERCE

6,270,100

v

CONSTRUCTION

ENGINEERING

CIVIL

GOVERNORS

omitted)

(number of cars)

freight loaded

Revenue

OR

INVENTORIES

6,974,000

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

October

of

1,900,00C

1,892,000

6,285,700

Dec.
Residual fuel oil output (bbls.)__
_Dec.
Stocks at refineries, bulk terminals, In transit, In pipe lines—
Finished and unfinished gasoline (bbls.) at
Dec.
Kerosene (bbls.) at—
—__________-Dec.
Distillate fuel oil (bbls.) at
Dec.
Residual fuel oil (bbls.)
at
Dec.

output

_—:

(bbls.)

Distillate

DEBITS—BOARD

BANK

of that date:

are as

Month

84.3

116,962,000

3
3

Kerosene

Ago

79.3

r

—Dec.
Dec.
...—— Dec.
Dec.

output

of quotations,

cases

Latest

BUSINESS

(bbls. of

average

(bbls.)

average

in

or,

either for the

are

THE FEDERAL RESERVE SYSTEM—Month

_

Crude runs to

Gasoline

Ago

•82.1

§oi.5

Dec. 19

output—dally

condensate

and

Week

that date,

on

Year

INSTITUTE:

gallons each)
stills—daily

42

Month

Dec. 19

Hastings (net tons)—

PETROLEUM

oil

Crude

Previous

Week

INSTITUTE;

STEEL

AND

steel

Dates shown in first column

month available.

or

Latest

Indicated

Thursday, December 16, 1954

The following statistical tabulations cover production and other figures for the

Indications of Current

AMERICAN

...

November

NEWS-RECORD

(000's

EN¬

—

Month

—

of

omitted):

NEWS-RECORD:

U.

Total

Public

156,326,000

196,088.000

161,329.000

528,209,000

Private

9

102,015,000

106,674,000

210,153.000

126,929.000

Public

—Dec.

9

83,627,000

34,517.000

152,232.000'

118,072,000

„_Dec.

and

municipal:

Federal

COAL OUTPUT
Bituminous

9

18,388,000

22,157.000

57,921,000

8,857,000

7,350,000

8.510.000

8,371,000

coal

and

500,000

521,000

574,000

8,500,000

4
4

610,000

INDEX—FEDERAL RESERVE

AVERAGE

SYSTEM—1947-49

Dec
Dec.

_

(tons)

SALES

$302,762,000

=

100

1

—Dec.

—

'

190

127

133

191

4

ELECTRIC INSTITUTE:

Electric

(in

output

(COMMERCIAL

FAILURES

Dec. 11

kwh.)

000

$9,346,000

INDUSTRIAL)

AND

—

DUN

9,197,000

9,612,000

8,661,000

INSURANCE—BENEFIT

POLICYHOLDERS—INSTITUTE
INSURANCE—Month
Death

endowments

223

9

IRON AGE COMPOSITE PRICES:
steel

—IIII"—

4.798c

$56.59

$56.59

$56.59

$32.17

$32.33

$34.00

$32.00

4.797c

Scrap steel (per gross ton)
METAL

PRICES

(E.

M. J.

&

refinery

Export

values

Straits
Lead

(New York)

Lead

(St.

Zinc

30.175c

31.600c

26. Too-

90.000c

90.250c

91.250c

15.000c

15.000c

15.000c

14.800c

14.800c

14.800c

13.300c

11.500c

11.500c

11.500c

at

Louis)

n

A..

Ja

Dec. 14

"""III" III

—
Group

Dec. 14

™eC'il

—

£ec- **

Group

Dec. 14

Group

_ec-

Aa

.

112.37

112.56

112.37

108.16

110.70

110.70

110.52

106.04

105.00

105.00

105.00

100.32

103.88

109.06

108.88

103.80

111.25

111.25

111.07

106.56

112.00

112.00

112.19

108.16

2.58

2.55

2.55

2.7f

3.13

3.13

3.13

Percentage

of

3.12

=

—

3.45

3.45

3.45

14

3.23

3.10
3.06

3.73

3.23

3.52

3.10

3.11

3.36

3.06

■

3.05

3.22

407.9

-

,

3.27

at end of period

-

4
4
4
4

297,807

199,444

317.710

307,305

246,190

244,798

259,692

239,567

87

83

95

88

392,807

343,160

447,385

433,182

PRICE INDEX—
Dec. 10

1(H)

106.73

106.56

107.45

106.17

Customers'

other

motor

Number

of

motor

(DEPARTMENT
of

1.370.675

950,206

559.576

$53,497,006

$65,204,683

$44,380,898

$24,192,630

1,183,537

1,536,591

964.419

589,933

7,271

10,684

6.934

1,176.266

1,525,907

957,485

582,931

$53,152,371

$69,204,683

$41,946,630

$22,176,603

371,070

526,220

353,790

371~070

526~220

353~790

200~590

Nov. 27

299,970

361,320

286,220

PRICES

All

434,770

=

16,859.580

15,992,880

10,370,020

6.788.740

17,580,900

16,741,940

10,804,790

Processed

All

of

S.

219

441

444

452

~~~\

235

292

280

218

248

204

191

170

191

275

276

251

242
263

245

276

263

253

275

153

162

230

:

Livestock
Meat

UNITED

.1

crops

and

•.

products

animals

i

__

,

eggs

STATES

EXPORTS

32,330
601,210
633,540

37.500

20,200

19.400

492,310

310,330

177,930

529,810

330,530

197,33t

277

299

IMPORTS

AND

680,649

472,130

222,860

92,520
717,234

98,170

67,050

578,581

417,937

676,751

484,987

276,040

3,366,380

3,157,929

1,981,230

1,123,390

543.950
2,889,054
3.433.004

of

October

$1,274,000

UNITED

764,000

;

STATES

GROSS

DIRECT

DEBT

$1,108,300
-

780,700

$1,253,100
'

813,568

AND

GUARANTEED—(000's omitted":
As

of

30

Nov.

$278,887,507

$278,785,667

7,303,761

6,662,775

5.922,862

$271,583,746

General fund balance

$272,122,892

$269,359,513

$275,282,380

28.65C

809,754

CENSUS—Month

Exports

Imports

715,300

OF

247,390

573,780

319,360

186,400

2.561,871

1,729,127

979.04C

3,135,651

2,048,487

1.165,440

Net

debt

Computed annual
U. S. GOVT.
—As
Total

of

face

2.300%

rate

STATUTORY
Nov.

30

amount

DEBT

2.298 %

2.424%

LIMITATION*

(000's omitted):
that

may

be outstanding

gt any time

$281,000,000

$281,000,000

$275,000,000

278,853,086

278,752,052

275,208.583

34,420

33,615

73,796

$278,887,507

$278,785,607

$275,282,380

530,173

531,100

575.452

$278,357,334

$278,254,566

$274,706,927

2,642,665

2,745,433

293,072

Outstanding—

OF

Total

public

gross

Guaranteed
7

109.3

109.5

109.7

110.1

7

90.7

91.8

92.2

7

103.4

103.5

104.3

E)ec.
Dec.

7

84.7

85.0

87.4

86.£

Dec.

7

114.5

114.5

114.5

114.f

debt

obligations

not

owned

by

the

Treasury

95.0

Dec.
.Dec.

-

foods

293

_

203,580

DEPT.

.

hay

—

343,680

.Dec.

foods




1

15:

207

585,120

.Dec.

figure.

257

INDEX

—

AGRICUL-

of Oct.

210

and

613,000

Dec.

^Includes 669,000 barrels of fore^n crude runs. §Based on new annual capacity of 124,330,410
Jan
1
1954
as against the Jan .1, 1953 basis of 117,547,470 tons.
tAll-time high record.
♦Number of orders not reported since introduction of Monthly Investment Plan.
•Revised

OF

100—As

204

grain

692,070

100):

commodities other than farm and

DEPT.

=

233

1.232,970

696,950

Nov. 20
Nov. 20
Nov- 20

products

Meats

13.T
271.9

247

1,929,090

1.165.420

Nov. 20
-Nov. 20

commodities—

Farm

15.5
*270.2

-y 246

Oil-bearing

7,087,020

Commodity Group—
All

23.4

(000's omitted):

e

(1947-49

24.3

235

BUREAU

sales

—

dividends

243

Truck crops

298.280

Nov. 20

U.

6.5.
48.8

*

Poultry

749,060

Nov. 20

—

4.0

6.6

48.2

49.3

Dairy products

721,320

account of members-

SERIES

S.

Cotton

Nov. 20

NEW

■

4.7

242

138,350

•

PRICES,

33.3

'

24.4

1

products

553.72C

Total sales

LABOR

farm

232,110

purchases

WHOLESALE

52.5-

24.9

*34.2

Food grain

Nov. 20
—Nov. 20
Nov. 20

sales

Other

88.8

*25.8

15.9
271.6

and

FARMERS

BY

U.

—

1,000,860

-

Short sales

income

1910-14

—

438,110

Total sales
Total

RECEIVED

NUMBER

1,490,980

purchases

Other
,

199.2

*52.8

6.6

income—

rental

interest

1,892,160

—

Total round-lot transactions for

$237.T

195 5

4.5

;___

Fruit

transactions initiated off the floor—

Short sales

in-

social

income

and

419,100
1,570,610
1,989,710

Total sales

Total

labor

Feed

the floor—

—

for

__

2,038,080

t

sales

;

contributions

Nov. 20

sales

Other

_

*82.7

25.8

total____

industries—

$285.4

82.8
52.9

receipts,

195.7

34.2

Nov. 20

Short sales

Other

518

COMMERCE)—Month

industries

•-—Nov. 20
—Nov.20
Nov. 20

•

_

purchases

91,955,

326

STATES

transfer
payments
non-?.gricultural income

Total

ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered-

Total

OF

salary,

employee

Personal

FOR

Other transactions initiated on

IN THE UNITED

Tobacco

Total sales

Total

528.314

68,618

397

—

621,288:

300,993

Crops

Nov. -0
N°v. 20

—

coaches

389,942

221,195
65,965

____

Unadjusted—

™ov* -0

sales

and

Proprietors

186,440

sales

Other

287,557

cars___

trucks

200,590

sales

Total purchases
Short sales

5.53.

FROM

income

Distributing

dealers—

TRANSACTIONS

4.57

5 26-

7,002

Total Round-lot sales—

ROUND-LOT

3 32:

(in billions):

personal

Wage

THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):

Other

September

Total

TOTAL ROUND-LOT STOCK SALES ON

Short

4.23

3.00

$287.4

of

Other

1,103.947

Nov. 27
•—-———Nov. 27
—Nov. 27

—

4.50

MANU¬

vehicles

of

passengers

Number

TURE

sales

Other

4.82

October:

of

Total

sales

Round-lot purchases by
Number of shares

number

SALES

S.—AUTOMOBILE

ASSN.—Month

surance

sales by dealers—

Number of shares—Total sales

FACTORY

U.

Number of

Less

—Nov. 27
Nev. 27
Nov. 27
Nov. 27

sales

value

Short sales

Total

IN

Service industries

dealers (customers' sales)—

Number of shares—Total sales

Dollar

VEHICLE

Government

Nov. 27
Nov. 27

Dollar value

Round-lot

MOTOR

Commodity producing

Number of shares

short

Average (200j

PERSONAL INCOME

ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)!—

Customers'

7.05.

6.02

409.7

413.9

403.5

Dec.
__7—Dec.
Dec.
Dec.

(24)__

4.60

4.33

Tel.)

(10)

PLANTS

STOCK TRANSACTIONS FOR

Odd-lot purchases by

5.53:

/

2.74

&

.1

FACTURERS'

ASSOCIATION:

——_

(tons)

AVERAGE

4.43

Nov.:

4.26

Tel.

Amer.

(15)

3.27

Dec u

OIL, PAINT AND DRUG REPORTER
1949

$30,275,000

5.43

3.39

-

of

(25)

3.14

14

Dec. 14

activity

Unfilled orders

$29,929,000

OF

3.38

Dec. 14

(tons)

(tons)

Banks

YIELD

STOCKS—Month

(not incl.

3.13

INDEX

PAPERBOARD

Railroads

Utilities

AVERAGE

(125)

3.13

Group

Production

COMMON

100

Industrials

omitted)—:.

(000's

30

WEIGHTED

2.89

Dec.

Orders received

Sept.

MOODY'S

3.04

Group—

COMMODITY

of

As

2.89

-

NATIONAL

25,379»

110.88

3.03

Group

MOODY'S

*23,482

4.29

Sales

95.8r

106.21

115.24

.

Dec. 14

Baa

Industrials

$47,037

$29,985,000

Total

3.04

A

Utilities

20,129-

*$43,929

SERIES—

of dollars):

Durables

2.90

Dec.

Public

$26,953.

*19,697

23,677

NEW

(millions

Nondurables

Dec- 14

""~r~
—
■

Railroad

*$24,232

$43,637

COMMERVE)

—Dec. 14

IIHIIIIII

——

—

99.34
110.70

115.24

:
Dec. 14

corporate

—

62,724.0005364,117,000

19,532

OF

Insurance

U, S. Government Bonds

Average

99.27
110.70

115.04

AVERAGES:

MOODY'S BOND YIELD DAILY

Aaa

_

JL/60• •'X**

—

■

Industrials

98.83
110.70

,

fr®*;*
—r!

corporate

Utilities

60,271,000 '

$330,859,000

MONEY IN CIRCULATION—TREASURY DEPT.

Aaa

Public

54,548.000

at-

U. S. Government Bonds

Railroad

33.477,000

69,738,000

$24,105

(DEPT.

10.000c

Dec.

34,907.000

MANUFACTURERS INVENTORIES AND SALES

13.500c

—_

.

8,633 000

35,608,000
74.131,000

85.750c

Dec.

at

MOODY'S BOND PRICES DAILY AVERAGES:

Average

29.700c

29.700c

29.700c

30.475c

at

Louis)

(East St.

29.700c

Dec.

York)

(New

tin

_

—

37,155 000

8,648.000

$394,119,000

_

of September
Inventories-

——

.

at—

39,247,000-

67,885,000

—_

—

Month

QUOTATIONS):

Electrolytic copper—
Domestic refinery at

$167,520,000.

39,154,000

8.602,000

:__u

4.632c

4.797c

$56.59

Dec.

lb.)

iper

Dec.

Dec.

(per gross ton)

__________

________

216

227

221

$168,048,000

LIFE

OF

benefits

Matured

74,855

September:

Disability payments
Annuity payments

Total
Finished

of

389,272'

314,417"

118,790

•

TO

Policy dividends

Dec.

BRADSTREET, INC

Pig iron

PAYMENTS

405.043

353,712

$168,679,000

Federal

$794,315.

523,279
472,502

408,091

municipal

$995,731

540.434

:____

674,143

132,343

and

Surrender

A

construction

construction

construction

State

LIFE

(tons)

lignite

STORE

$258,341,000

9

OF MINES):

S. BUREAU

(U.

Pennsylvania anthracite
DEPARTMENT

EDISON

S,

$655,138,000

9

Dec.

construction

construction

State

U.

Total

$371,482,000

Dec.

_Dec.

construction

S.

Private

104.0

Total

gross

teed

public

debt

and

guaran¬

obligations

Deduct—other

outstanding

public

debt

obli¬

gations not subject to debt limitation
tons

as

Grand

Balance
under

total

face

outstanding

amount

above

of

authority

obligations,

issuable

Volume 180

Number 5386

The Commercial and Financial Chronicle

•«

.

(2577)

it INDICATES

Securities Now in Registration
• Alaska

Proceeds—For uranium and oil activities. Office—Judge

Nov.

Bldg., Salt Lake City, Utah.

Telephone Corp. (1/3)
(letter of notification) $158,000 of 6%

9

10-year
convertible debentures, series D, due Dec. 1, 1964. Price
—At $70 per $100 debenture. Proceeds—For payment of
indebtedness, conversion to dial system, increased facil¬
ities, and working capital. Office—Alaska Trade Bldg.,
Seattle 1, Wash.
Underwriter—Tellier & Co., Jersey
City, N. J.
Allied-Manchester Corp.

(Mass.)

Nov. 17 (letter of notification) 2,999 shares of converti¬
ble class A common stock.
Price — At par ($106 per

share).

Proceeds—For loans and working capital. Un¬
derwriter—Allied Research & Service Corp., 50 Congress
St., Boston, Mass.

Amalgamated Uranium Corp., Salt Lake City, Utah
Sept. 1 (letter of notification) 2,500,000 shares of com¬
stock

(par three cents). Price—10 cents per share.
Proceeds—For exploration and development costs. Office
—218 Atlas Bldg., Salt Lake City, Utah. Underwriter—
mon

Ned J. Bowman Co.. the

city.

same

^Amcrete Corp., Briarcliff, N. Y.
Dec. 6 (letter of notification) 7,500 shares of 6%
ticipating preferred stock.
Price — At par
($10

par¬

per

share).

Proceeds—For working capital. Business—Dis¬
tributor of prefabricated concrete wall panels and butmade of steel reinforced

resses

dense

concrete, etc.

Un¬

derwriter—None.

•

Underwriter—None.

American Discount Co. of

Nov.

Georgia (12/20)
15,000 shares of 5% cumulative preferred
par ($50 per share).
Pro¬
Office — Charlotte, N. C.

29 filed

stock, series 1954. Price—At
ceeds
For working capital.
—

Underwriters—A. M. Law & Co., Spartanburg, S. C.;
Johnson, Lane, Space & Co., Inc., Savannah, Ga.; and
Interstate Securities Corp., Charlotte, N. C.

ic American Duchess Uranium & Oil Co.
9 (letter of notification)
1,500,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Dec.

NEW
December
New

curities, Inc., Seattle, Wash.

^ American Hoist & Derrick Co., St. Paul, Minn.
Dec.

8

(letter of notification) 6,455 shares of common
(par $1) to be issued upon exercise of options.
Price—r$16.15 per share. >Proceeds—=For general corpor¬
ate purposes.
Underwriter—None.
stock

^ American-Israel Paul Ehrlich Medical Institute,
Inc., New York '
t/.*
Dec. 9 filed 195,000 shares of common stock. Price—At
par ($10 per share).
Proceeds — For construction and
equipment of hospital and medical center at Ramat Gan,
Israel.
Underwriter—None.
Haim Margalith, of New
York City, is President.

16

ISSUE

Pump Corp., N. Y.
Nov. 24 filed $3,000,000 of 4% income bonds, series A,
due Dec. 1, 1994. Price—To be supplied by amendment.
Proceeds—To pay $55,000 of 6% collateral income notes
and $100,000 demand notes; to pay Federal income tax
liabilities and for working capital, etc.
Underwriter—
A. W. Benkert & Co., Inc., New York.
American

Uranium, Inc., Moab, Utah

Aug. 18 (letter of notification) 3,320,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
For

exploration and development

Underwriter

expenses.

Ampal-American Israel Corp., New York
Sept. 17 filed $5,000,000 of 10-year 5% sinking fund
debentures, series C, due 1964; $3,125,000 of 5-year dis¬
count debentures, series D; and $4,100,000 of 10-year dis¬
count debentures, series E. Price—Series C, at par; se¬
ries D $2,507,659.53, to yield return equal to compound
interest at rate of 4%% per annum, compounded; and
series

E $2,502,111.10, to yield 5%.
Proceeds—For de¬
velopment and expansion of agricultural, industrial and
commercial enterprises in Israel. Underwriter—None.

EST)

neon

$3,345,000

December 17

Big Dollar Food Stores,
(Baruch

Bros.

6% debentures at par and to provide additional working

CALENDAR

&

$2,625,000

(John R.

American
(A.

M.

Marine Midland

$297,950

'

'

(Thursday)
——Preferred

Corp.——

First Boston Corp.;

Union Securities Corp.; Schoellkopf,
and Granbery, Marache & Co.)

Button & Pomeroy, Inc.;

&

Co.;

Interstate

Bell &

Johnson,
Securities

Oil

&

Co.

Common
Incorporated)

300,000

240,000

(Bids

-Equip. Trust Ctfs.

noon

CST)

(Rauscher, Pierce & Co.)

(Blyth & Co.,

(Bids

Irving

&

Gas

(Wednesday)

Lundborg

& Co.)

Edgemont Mining & Uranium Corp
(Capper

United

Co.)

December 29

$1,500,000

250,000 shares

to

1 medium defiuers 2 marteft!
By advertising in only one medium, the Chicago Tribune, you
can sell the largest audience of interested prospects in both major

(Bids

(Friday)

...Common
by

Blyth

&

&

$6,600,000

Inc.)

Co )

Common

$300,000

(Monday)

Income

Co

Arcoa, Inc., Portland, Ore.
13 filed $5,000,000 of "U-Haul Fleet Owner Con¬
tracts," to be issued to increase the number of trailers
available for rent in the System.
Office—Portland, Ore.

Dec.

Arctic
Oct.

Uranium

Ltd.

Mines

28

(Regulation "D") 1,500,000 shares of common
stock (no par value). Price—20 cents per share. Proceeds
—For general corporate purposes. Office — 411 Childs
Bldg., Winnipeg, Manitoba, Canada.
Underwriter—De
Gaetano

Securities

Armour

&

Corp., New York.

Co.,

Chicago
shares of common stock (par $5) 1o
be issued upon the exercise of warrants to be issued in
connection with proposed plan to issue $120 principal
Nov. 8 filed 500,000

amount

of 5%

tures due Nov.

warrant

cumulative income subordinated deben¬

1, 1984, and one common stock purchdSKTt.

in

exchange for each share of no par value $5
cumulative convertible preferred share outstanding with
dividend arrearages of $18 per share. This will involve
$60,000,000 of new debentures. Warrants would be ex¬
ercisable at $12.50 per share during the first two years*
$15 during the next three years, $17.50 during the fol¬
lowing two years and $20 during the last three years..
Statement effective Dec. 7.

Automatic Remote Systems, Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par 66
cents), of which 540,000 shares are to be offered tfe
public and 80,000 shares to be issued to underwriter.
Price—$3.75 per share. Proceeds—For manufacture of
Telebet units and Teleac systems and additions to work¬
ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.
Bell & Gossett Co.

(12/20-21)

Nov. 23 filed 300,000 shares of common stock (par $2).
Price—To be supplied by amendment. Proceeds—To re¬

indebtedness to insurance companies .and
Business—Manufactures
heat transfer equipment. Un¬
derwriter—Blair & Co. Incorporated, New York.

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of common
stock. Price—At par (three cents per share). Proceed*
—For mining expenses. Office—510 Newhouse Building;,Salt

Lake City, Utah.
Underwriter
Phillips Building, same city.

—

Call-Smoot Co.*

^ Big Dollar Food Stores, Inc. (12/17)"(letter of notification) 100,000 shares of common
stock (par $1).
Price—$3 per share.
Proceeds—For
modernization
and
expansion program and working
Dec. 3

Office—42 East Post Road, White Plains, N. Y.
Co. Inc., New York.

^

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceed*
—For mining operations. Address—Box 77, Provo, Utah.
Underwriter—Weber Investment Co., 242 N. University
Ave., Provo, Utah.
Big Red Uranium Co., Oklahoma City, Okla.
6 (letter of notification) 2,940,000 shares of com¬
mon
stock (par- one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—917 First Na¬
tional Bank Bldg., Oklahoma City, Okla. Underwriter—
Honnold & Co., Inc., same city.
Deb.

Bikini Uranium Corp., Denver, Colo.
15 (letter of notification) 3,000,000 shares

Oct.

stock

of com¬

Price—10 cents per share.
Proceeds—For exploration and development costs. Of¬
fice
705 First National Bank Bldg., Denver, Golo.
Underwriter—I. J. Schenin Co., New York.

mon

(par

one

cent).

Fund

D.

of

...........Common

—

England

Blauner

&

Co.,

Inc.)

page

126

$298,800

.^.Common

Inc

Boston,

Power

(Bids

be

to

(Tuesday)
Bonds

Co
invited) $25,000,000

(Thursday)

January 20
(Bids

I

11

The World's Greatest Newspaper

January 25
Power

a.m.

11

(Tuesday)
Bonds

EST)

15

to

be

New York

$30,000,000

invited)

$16,000,000

Boston

Philadelphia

(Tuesday)

City Power & Light Co
(Bids

—Preferred

$8,000,000

Co.—

February
Kansas

—

EST)

a.m.

(Bids

TRIBUNE

the market tables of the leading stock

on

—Common

Ltd

January 18
New

Consumers

exchanges the largest circulation given them in America.

Continued

(Hayden, Stone & Co;) $8,000,000

advertising more effec¬

advertising representative.

*

(EST) 450,000 shares

noon

Duquesne Light Co._-___

tive, call your advertising counsel or the nearest Chicago Tribune




Common

_

Minerals,

markets—professional buyers

general investing public.

The Tribune gives to

(Wednesday)

stockholders—underwritten

Light

Duquesne

(Milton

CHICAGO

Office—Appell Bldg., Alice, Tex.

—

$158,000

For facts that show how to make your

shares

Green Mountain Uranium Corp..

Imperial

and the

Common
170,000

EST)

January 17
Debentures

Chicago and midwest investment

Debentures

$36,000,000

—

(Tellier

(TellierCo.)

invited)

Trust & Savings Bank

Co.,

(Monday)

Telephone Corp

invited)

be

a.m.

Angeles

(Offering

Alaska

Bonds

January 14
of Los

(Gearhart <fc Otis, Inc.; White & Co.; and McCoy & Willard)

selling stockholder.

Underwriter—R. V. Klein & Co., New York.

Underwriter—Baruch Bros. &

(Offering to stockholders—no underwriting) 218,737 shares

Common

(Wednesday)

To

capital.

—

Co.——

Power

Common

January 3

to

(January 12
Duke

$750,000

Corp.

be

to

11:30

Citizens National

Stylon

$40,000,000

(Tuesday)

Corp

(Bids

Debentures
and

invited)

York, Chicago & St. Louis RR

520,000 shares

—

Inc.

New

$3,700,000

—Common

December 22

__Bonds
be

to

January 11

(Tuesday)

Oroco Oil & Gas Co

Ampex Corp.

(Bids

shares

$1,100,000

Corp.)

Commonwealth Edison Co.

RR.—

(Bids

Securities

Co

Power

Duke

(Monday)

——Preferred & Common

Inc

(Aetna

Common
Co.)

December 21
Central

Bowl-Mor Co.,

shares

Corp
(Bache &

Illinois

and

10

January

Preferred

Space & Co.;
Corp.) $750,000
Lane,

Gossett Co
(Blair

Magna

(Monday)

Discount Co. of Georgia
Law

it Appell Oil & Gas Corp., Alice, Texas
Dec. 1
(letter of notification) 8,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—

Inc.—-Debens. & Common

Boland & Co., Inc.)

$20,350,000

December 2D

Uranium, Inc., San Francisco, Calif.
(letter of notification) 2,970,000 shares of class"A.
capital stock. Price—At par (10 cents per share). -Pro¬
ceeds—For exploration and development expenses. 'Of¬
fice—*995 Market St., San Francisco, Calif. Underwriter
—Coombs & Co., of Los Angeles, Inc., Los Angeles, Califs

and sells vorious types of

(Offering to common stockholders—underwritten by The

Common

Otis, Inc. and Crerie & Co.)

Anticline

Oct. 28

for general corporate purposes.

January 6

Stancan Uranium Corp

REVISED

tire long-term

$300,000

$2,000,000

ITEMS

(Wednesday)

T. M. T. Trailer Ferry,

Debentures

Noel & Co.)

100,000 shares

Sons)

&

January 5

Servomechanisms, Inc.
(Van Alstyne,

Brown

(Alex.

•

Common
Inc.)

Common

PREVIOUS

capital. Business—Produces magnetic recording equip¬
ment. Underwriters—Blyth & Co., Inc. and Irving Lund¬
borg & Co., both of San Francisco, Calif.

•

(Tuesday)

January 4

(Friday)

Co.,

(12/22)

Union Trust Co. of Maryland—

Inc

&

Calif.

filed $1,500,000 of convertible subordinated de¬
bentures due Nov. 1, 1969.
Price—To be supplied by
amendment.
Proceeds—To redeem $635,000 of 10-year
2

Equip. Trust Ctfs.
(Bids

Redwood City,

Corp.,

Ampex
Dec.

(Thursday)

York, New Haven & Hartford RR.

(Gearhart

,

,

American Steel &

—Ogden Uranium Brokerage Co., Ogden, Utah.

it American Bankers Life Insurance Co. of Florida
Dec. 6 (letter of notification) 5,000 shares of class A
common stock (par $10).
Price—$25 per share. Proceeds
—For working capital.
Office—Landon Bldg., Miami,
Fla.

Underwriter—Northern Se¬

ADDITIONS. :,
ISSUE

SINCE
•

125

Bonds

Pittsburgh

San Francisco

Private Wires to all

offices

Chicago

Cleveland

126

The Commercial and Financial0Chronicle

(2578)

^-Continued

from

page

125

Blue

Canyon Uranium, Inc.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining activities.
Offices — 1003 Con¬
tinental Bank Bldg., Salt Lake City, Utah, and 618 Rood
Ave., Grand Junction, Colo. Underwriter — James E.
Reed Co., Reno, Nev.
Nov. 29

stock

mon

Blue

Jay Uranium Corp., Elko, Nev.
Oct. 15 (letter of notification) 1,000,000 shares of com¬
mon stock. Pricer-25 cents per share. Proceeds—For ex¬
ploration and development costs. Office—402 Henderson
Bank Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
if Boiling Oil Corp., Fort Worth, Texas
(letter of notification) 300,000 shares of common
stoOk. Price—At par ($1 per share). Proceeds—For oil
and gas activities.
Office — 509-510 Insurance Bldg.,
Dec. 7

Fort Worth, Tex.

if Cloverleaf Kennel Club, Loveland, Ohio
7 (letter of notification) 250,000 shares of class A
common stock and 50,000 shares of class B common stock.
Price—At par ($1 per share).
Proceeds — To organize
dog race track. Underwriter—None.
Dec.

Colorado
Dec. 1

r

—$5.50
tures

?unit.

per

finance

Proceeds—To carry machine leases and
Business—Manufac-

manufacturing operations.*

and

distributes

^

setting
New

machine.

by lease and

sale,

Underwriter—Aetna

bowling-pin

a

Securities

if California Modular Homes, Inc.
Dec. 9 ^(letter of notification) 196,000 shares of common
Price—At par ($1 per share). Proceeds—For ad¬
ditions to 'plant and equipment and working capital.
Office
3808 22nd St., East Del Paso
Heights, Calif.
-^Underwriter—United Capital Co., Reno, Nev.
*-sStock.

—

California Tuna Fleet, Inc., San Diego, Calif.
Sept. 29 filed $4,000,000 of 6% sinking fund debentures
1966 and 160,000 shares of
cents) to be offered in units of

shares of stock.

Price—To

stock

(par five
$500 debenture and 20

common
a

be supplied

★ California Washington Petroleum Corp.
Dec. 10 (letter of notification)
190,835 shares of common
stock.
Price—At par ($1 per share).
Office—Los An¬
—

None,

sales

to

be

made

*

3

(letter of notification) 8,696 shares of common
(par $5) to be issued to Lincoln Park Industries,

stock

Inc.

in

exchange for 250 shares

common

stock- of Curtis

(total

outstanding)

Machine Corp.

of

Development Corp.
Oct. 26 (letter of notification) 16,000,000 shares of

-

mon

stock.

Price—At par (one cent per
share).

com¬

Proceeds

—For exploration and development
expenses.
Office—
317 Main St., Grand
Junction, Colo. Underwriter—West¬

Securities Corp., Salt Lake City, Utah.

ern

Carolina Resources Corp.
Aug. 19 (letter of notification) 299,000 shares of
stock.

common

Price—At par

($1 per share). Proceeds—To ac¬
quire claims and mining equipment, erect and
equip
processing plant, and for working capital. Office—Nantahala Bldg., Franklin, N. C. Underwriter
Allen E.
Beers Co., Western Savings Fund
Bldg., Phila. 7, Pa.
—

Cascade

Natural

Gas Corp.,
Seattle, Wash.
(letter of notification) 23,625 shares of common
(par $1) to be offered for subscription by stock¬

--Oct. 27

'stock

holders on a l-for-10 basis. Price
$6 per share. Pro¬
ceeds—To repay bank loans and
promissory notes. Office
—

—Securities Bldg., Seattle, Wash. Underwriters—Blanchett, Hinton & Jones, Seattle, Wash., and First Califor¬
nia

Co., Los Angeles, Calif.

Central

v

Inc., Fort Worth, Tex.
Oct. 26 (letter of
notification) 150,000 shares of common
stock (par 25 cents); to be offered for
subscription by

stockholders.
;

Price—$1

per

share.

Proceeds—To

chase1 "additional aircraft and
equipment, setting up
stations, etc. Office—Meacham Field, Fort

purnew

Worth, Tex.

Underwriter—None.

Oct.

Corp., Charlotte, N. C.
$100,000 of 20-year 6%
sihking fund notes and 100 ten-year war-*'
purchase 20 shares of common stock to be sold

25

(letter of notification)

subordinate
rants to

in units of

;a'$1,000 note and one warrant. Price—$1,000
unit (each warrant is exercisable at $10 per share.)

per

Proceeds

7

filed

750,000 shares of common stock (par five
Price—$1 per share. Proceeds—For exploration
and development
program.
Office
Washington, D C
Underwriter—Peter Morgan & Co., New York.
Offering
■—Expected some time in January.
—

'

Chesapeake Industries,
>

Oct.

15

filed

996,304

bank

&

St., Charlotte, N.
Co., Richmond, Va.

loan.

Office — 221% West
Underwriter—J. C. Wheat

C.

Inc.

shares

of common stock
(par $1)'
and 33,818 shares of
$4 cumulative preferred stock (par
$10) being offered in exchange for preferred and com¬

shares of Home & Foreign Securities
Corp. and Oils
Industries, Inc., common shares of common stock of
Intercontinental Holdings, Ltd. and Intercoast
Petroleum
mon

writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley
& Co.; TM-First Boston Corp.
Offering—Originally set
for

May IN but has been postponed because of market

conditions.

No

date

new

of

Colonial

the first

<

I

and

three

will expire
Circle
Nov. 29
mon

on

less

companies

than

80%

mentioned

of

the

above.

stock

The

offer

Dec. 24.

11

set.

Uranium Corp.,

Price—At

com¬

Pro¬

For exploration and
development expenses.
Office—206 Mercantile Bldg.,
Denver, Colo. Underwriter
—Petroleum Finance Corp., Oklahoma
—

City, Okla.

Consumers

Cooperative Association,
City, Mo.
s ;
Nov. 24 filed 80,000 shares of 5 V2%>
preferred stock, 20,Kansas

•

.

000

shares

of

4%

second

preferred stock and 40,000
shares of 2% third preferred stock (all three
being "cu¬
the

to

(par five cents).

machinery

and

Price—$1

per

equipment

of

com¬

Pro¬

and

working
capital. Name Change—Company was
formerly known
as
Paley Manufacturing Corp.
Qffice—244 Herkimer
Street, Brooklyn, N. Y. Underwriter—Allen E. Beers

Co., Philadelphia, Pa.




a

Price—$100

extent

earned

before

patronage

re¬

Proceeds—To redeem 1952 series

share.

per

preferred stock and to reduce bank loans.

Oct.

18

Uranium, Inc.

stock

Price—Five cents per share.
and development expenses.
Office—506 First Security Bank Bldg., Salt Lake City,
mon

(par

Proceeds—For

one

cent).

exploration

Underwriter—Utah

Utah.

of

For preferred

indebtedness,
—

At par

($25

5%%—20
per

share);

certificates, at principal amount.
Proceeds—To
finance inventories and accounts receivable and to
repay
bank loans and certificates ahead of

maturity.

Under¬

writer—None.

if Contact Uranium, Mines, Inc., N. Y.
Dec.

7

(letter

of

notification) 500,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New
York.

Oct.

Corp., Denver,

for

each

days; then to public.
Price—5% cents per share.
expenses incident to gas activities (and
possibly uranium). Office—527 Ernest & Cranmer Bldg.,
Denver,
Colo.
Underwriter — First Securities Corp.,
Philadelphia, Pa.
Proceeds—For

Farm

Home & Discount Co.,

&

Phoenix, Ariz.
shares of class A common stock
(par 25 cents), 214.285 shares of class B common stock
(par, 35 cents) and 300,000 shares of class C common

Nov.

filed

29

♦

320,000

Price—$140

shares

held;

on

rights

basis of

to

one

expire

share

new

on

Dec.

28.

share. Proceeds—For cons'rjction pro¬
gram.
Officer—1506 Commerce Street, Dallas, Texas.
Underwriter—None.

if Danmark Cunit, Inc., Atlanta, Ga.
Dec. 7 (letter of notification)
500 shares
par

plant activities, etc.
Ga.

of

common

($100 per share). Proceeds—For
Office—308 Ivy St., N.E., Atlanta,

of

preferred

and

per

unit.

equipment, to

stock

(each warrant
a

al¬

Proceeds—For additional machinery
liabilities and for work¬

pay current

City, Utah
2,000,000 shares of

(15 cents per share). Proceeds
development expenses. Office—
Bldg., Salt Lake City, Utah. Underwriter—
Van Blerkom & Co., same
city.
Atlas

K, dated June 1, 1954 and due June 1, 1974.
Pricb&At par. Proceeds — For capital improvements.
Offic&M712 S. Glendale Ave., Glendale 4, Calif. Under-

Corp., Moab, Utah
notification) 3,000,000 shares of

stock

(par

one

Price—10

cent).

writer— Melvin

cents

Colo.

common

12, 1955

on

stock

common

the basis of

one

(no par), to
stockholders of
new

share

for

each 20 shares held (with an

rights to expire Jan. 28.
—To

bank
derwriter—None.
repay

oversubscription privilege);
Price—$40 per share. Proceeds

loans and

for

general

corporate

purposes.

F^r

States Uranium Corp., Grand Junction, Colo.
(letter

of

notification)

Price—At

300.000

shares

par ($1 per share).

of

com-

Proceeds—For

exploratory and development expenses * Office — 618
r|o<$ Avenue, Grand Junction, Colo. Underwriter
—

J<M:p^Benthal, 1669 Broadway, Denver, Colo.
Directors

filed

—ipp^apital
general

Manufacturing & Supply Co.

199,907 shares of

tt(Vcdstomers.

stock to

common

Price—At par ($100

per

be sold

Proceeds

share).

expenditures and working capital and other

corporate

purposes.

Office

—

Louisville,

Ky.

Underwriter—None.
ineau Uranium Mines Ltd.

rapTC Regulation "D") 300,000

(Canada)

.

,

shares of common stock.
Proceeds—For explora—

Prifcep-At par ($1 per share).
timj|[hd development costs. Office
100 Adelaide St.
W)e'st|iToronto, Canada. Underwriter—^McCoy & Willard,
—

Mass.

★ G&p Uranium & Oil Co., Salt Lake City, Utah
Defc|§n(letter of notification) 11,000,000 shares of capital
st<^Ji^par one cent). Price—Two cents per share. Pro-

ce|dj^For

exploration and development of oil and ura— 414 Judge Bldg., Salt Lake

niiMproperties. Office

Underwriter—Utah Uranium Brokers, same

cim
General Gas Corp.

Septal? filed

143,500 shares of common stock (par $5)
beihpoffered in exchange for common stock of Consol-

idate^Gas

Co. of Atlanta, Ga.,

a^gj&re of General

on

the basis of 63/100ths

Gas for each Consolidated share.

Th$ &ner is subject to deposit of at least 175,000 shares

(1/12/55)
by

and

,

Busipess—Publishes "Guide for Sport Fisherman."; Offi<&;^65 Broadway, New York. Underwriter—None.

of

Dec. 3 filed 218,737 shares of
be offered for
subscription

Jan.

Fo^4%>rking capital

share.

Schroeder, 501 Kittredge Bldg., Den¬

Duke Power Co.

record

per

com¬

development costs. Of¬
Bldg., Maob, Utah. Under¬

F.

\ •

(N. Y.)
(letter of notification) 300,000 shares of common
ar
10 cents).
Price—$1 per share. Proceeds—

Ci«T®tah.

Devil Canyon Uranium
Nov. 8 (letter of

Proceeds—For exploration and
fice—21 Main St., Petersen

deben¬

ture/series

|v

com¬

stock Price—At par
—For exploration and
mon

mon

""

sinking

i^ Fjdfcest Lawn Co., Glendale,^ Calif.
(letter of notification) $300,000 of 3%

Bol&fig},

Desert Uranium Co., Salt Lake
Oct. 18 (letter of
notification)

y-—- >•'-

De(&^|0-

preferred share).

ing capital. Office—360 Merrimac St.,
Lawrence, Mass.
Underwriter—Jackson & Co., Boston, Mass.

524

-

cumulative

func£$referred stock. Price—At par ($2 per share). Proceedfe-For working capital. Underwriter—J. Foun¬
tain $rJCo.. Inc., New York

'Funeral

if Demars Engineering & Manufacturing Corp.
Dec. 9 (letter of notification) 40,000 shares of
6% noncumulative participating preferred stock
(par $1) and
40,000 warrants representing rights to purchase
4,000

Price—$1

filed 250,000 shares of 7%

mpb^Sock.

Underwriter—None.

shares

Proceeds —For

par.

"^ter Publications, Inc.

per

Price—At

Price—At

Underwriter—None.

Financial Credit Corp., New York

Janj|$

567 shares of common
par) being offered for subscription by minority
12

Colo.

20

of 40

Dallas Power & Light Co.
Nov. 17 (letter of notification)

stockholders of record Nov. 30

\

(letter of notification) 5,400,000 shares of com¬
mon stock (par five cents) to be offered for
subscription
by stockholders of Colo-Kan Fuel Corp. for a period

•

stock (no

city.

same

Exhibitors.

of

wrj^j^None.

<

Securities Co.,

if Exhibitors Film Financial Group, Inc., New York
Dec. 10 filed 100,000 shares of capital stock.
Price—At
par ($f00 per share).
Proceeds—For geneial corporate
purposes. Underwriter—None. Samuel Pinanski, of Bos¬
ton, Mass., President of American Theatres Corp., will be

working capital.

certificates
—

rY'v?

(letter of notification) 5,000,000 shares of com¬

stocky par 50 cents).

Price

Underwriter

"r

—White, Weld & Co., New York.

subordinated
years.

•

share.

with

funds"), together with $500,000 of subordinated certifi¬
indebtedness, 4%%—10 years, and $1,000,000 of

cates of

Of the

shares held.

common

stock, series of 1952, on a share-for-share basis
cash adjustment. Both offers expire on Dee. 1<7.

ferred

Fallon Gas

1,000,000 shares of
(one cent per share).

par

21

each

for

73,576 shares (64,383 shares) are being of¬
fered in exchange for outstanding $4.40 convertible pre¬
remaining

Denver, Colo.

(letter of notification)

stock.

mon

ver,

Industries, Inc.
(letter of notification) 299,000 shares

stock

of

Air

ceeds—For

'

not

,

shares of $4.40 convertible second

300,000

share

ferred

President

Constellation

&

Corp. and capital stock of Colonial Trust Co. The offer
is subject to
deposit of not less than 90% of the stock

filed

5

Eula Belle
Consol. Edison Co. of Now
York, Inc.
April 7 filed $50,000,000 of first and refunding mort-^
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester Lighting Co. general
mortgage bonds. Under¬

lows for the purchase of one-tenth of

cents).

*

To. prepay

—

Trade

additional

Chesapeake & Colorado Uranium Corp.

Dec.

equipment, etc.
Blvd., Los Angeles 4, Calif.

Larchmont

Underwriter—None.

stock.

Airlines,

*

El Paso Natural Gas Co.

preferred stock, series of 1954 (no par) of which 226,424
shares are being offered for subscription by common
stockholders of record Dec. 2 on the basis Of one pre¬

N.

and for

.

Carnotite

Capper & Co., New York.
Nov.

mulative

if Carborundum Co.
Dec.

cent).

ing capital, inventories, machinery and

ceeds

—

Edgemont Mining & Uranium Corp (12/22)
3,000,000 shares of common siock (.par one
Price—25 cents pei share. Proceeds—For equip¬

•

Office—109

to

geles, Calif.
Underwriter
through certain agents.

common

stock to be offered for subscription to present stockhold¬
ers.
Price—At par ($1 per share). Proceeds—For work¬

Oct.

liabilities; for construction of four tuna clip¬
and the balance for working capital and general
corporate purposes. Underwriter
Barrett Herrick &
Co., Inc., New York.

Co.; Stone & Webster Securities Corp.; The First Boston
Bids—Expected on or about Jan. 10.

ment, exploration on purchases of additional claims or
leases.
Office — Edgemont, S. Dak.
Underwriter —

Colorvision, Inc., Los Angeles, Calif.
(letter of notification) 300,000 shares of

Nov. 1

by amendment.

certain

Underwriter

determined by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &

be

Oct. 28 filed

2, Colo. Underwriter—John L. Donahue, 430 16th
St., Denver, Colo.

Proceeds—For purchase from National Marine
Terminal,
Inc. of its undivided interest in 17 tuna
clippers, subject
pers;

(1/10)

$40,000,000 of first and refunding mortgage
Proceeds — To redeem $35,000,000 of

Denver

Corp.,

York.

due

Co.

(letter of notification) 1,900,000 shares of common

1954

1975.

3%% bonds and for construction program.
—To

bidders:

Consolidated Credit

share of each class of stock. Price

due

bonds

Thursday, Decembei 16,

Corp.

Underwriter—None.

Bowl-Mor Co., Inc., Everett, Mass. (1/10)
Nov. 26 filed 200,000 shares of preferred stock (par
$1)
and 200,000 shares of common stock (par 10 cents) to be
one

Uranium

Duke Power Co.

Dec. 3 filed

stock (par one cent). Price—15 cents per share. Proceeds
—For mining activities.
Office — 824 Equitable Bldg.,

,

offered in units of

Plateau

•

...

new

construction.

Un¬

of

J$hsolidated

stock

out

of

210,000 shares

outstand¬

ing;;^—None.
0Ujieral

Services Life Insurance Co.

Sep^^A. filed

50,000 shares of class A

(parrfj).

Price—$10

corporate

purposes.

writtXnmNone.

per

share.

•

common stock
Proceeds—For general

Office—Washington, D. C.

Under-

^

Volume 180

Number 5386

General

Tire

Nov.

18 filed

ence

stock

&

..

The Commercial

.

Rubber

Co.

an$ Financial Chronicle

Investment Corp. of America
Magic Uranium Co., Inc., Salt Lake City, Utah
Oct. 15 (letter of notification) 3,000,000 shares of com*-'
Aug. 30 (letter of notification) 3,799 shares of cumula¬
tive preferred stock (no par) and 3,799 shares of com- Y mon stock (par one cent).
Price—10 cents per share.
mon stock (no par). Price—For preferred, $20 per share;
Proceeds—For development and exploration costs. Of¬

~

-

cumulative prefer¬
to be offered in exchange for

95,000 shares of 5^%

(par

$100)

stock of Motor Products Corp., the rate of
exchange to be filed by amendment. .Offer will be sub¬
ject to acceptance thereof by holders of not less than
common

315,000 shares of Motor Products
General

common

stock.

'

and for common, $2 per share.

Corp., Salt Lake City, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).. Pro¬
ceeds—For development and exploration expenses.
Of¬
fice—404 Boston Building, Salt Lake City, Utah. Under¬
writer—P. G. Christopulos & Co., same city.

stock.

—To

Price—At par ($1 per share).
debt and for other contingencies.

retire

101 N. Andrews

Ave., Fort Lauderdale, Fla.

Glasscock

Nov.

shares of common stock (par $1).
supplied by amendment.
Proceeds—For
investment principally in stocks of Canadian industries.
Organized—in November 1954 by Investors Diversified
Price—To

Underwriter

(par $1).
Expected to be $11 per share. Proceeds — To
repay bank loans, to purchase outstanding stock of C. G.
working capital. Office—Corpus Christi, Tex. Under¬
—

and balance

Globe Hill

Nov.
mon

Mining Co., Colorado Springs, Colo.

Office—336 independ¬
ence Bldg., Colorado
Springs, Colo. * Underwriter—Al. J.
Johnson, same city.
^
Great

Southwest

Land

.Green Mountain Uranium Corp. (1/14)
(letter of notification) 2,000,000 shares of com¬
mon
stock (par one cent). . Price—15 Gents per share.

Nov. 30

Proceeds—For

mining activities. Office—618 Rood Ave.,
Grand Junction, Colo. Underwriter—Tellier & Co., Jer¬
sey City, N. J.

—

stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of
$105. $105, and $105.75, respectively.
Underwriter—To

Probable bid¬
Corp.;
Lehman
Brothers and Equitable Securities Corp. (jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C. Langley &
Co. (jointly). Bids—Had tentatively been expected to be
received up to 11:30 a.m.
(EDT) on June 15 at The
Stone

by competitive bidding.
Webster

&

Hanover Bank, 70

Securities

Broadway, New York, Ni Y., but of¬

fering has been postponed.
Gulf States Utilities Co.

May

1984.

first mortgage

shares

479

of

common

»

Kemper Thomas Co., Cincinnati, Ohio
(letter of notification) 10,000 shares of common
(par $10) to be offered for subscription by stock¬
holders first, then to public.
Price—$16.50 per share.
Proceeds—For working capital.
Office—Norwood Park,
Cincinnati, O. Underwriter—None.

bonds due 1981 and $10,000,000 of 3%%

Gunsite

Butte Uranium Corp. ;
Y
(letter of notification) 25,000,000 shares of capi¬

Oct. 25

Price—At par (one cent per share).

tal stock.
—For

36

,

exploration and

West

—Melvin

development

Proceeds
Office—
Underwriter

expenses.

Broadway, Salt Lake City, Utah.
G. Flegal & Co., same address.

V

Headley (George L.) Associates, inc.
15 (letter of notification) 295,000 shares of com¬
stock (par 10 cents). Price—$1 per share. Proceeds
; —For working capital. Underwriter—F. M. Hall & Co.,
Oct.

St., New York, N. Y.

Imperial Minerals, Ltd. (Canada) (1/17)
Nov. 23
(Regulation "D") 830,000 shares of common
stock (par $1).
Price—36 cents per share. Proceeds—
For mining activities.
Underwriter—Milton D. Blauner
,

&
•

Co., Inc., New York.
Income Fund of

Dec.

Boston, Inc.

(1/17-18)

>-

filed

2

800,000 shares of common stock (par $1).
by amendment (expected at $10
per share).
Proceeds—For investment.
Underwriter—
Hayden, Stone & Co., New York.
Price—To

be supplied

International

Bankers

Life

Insurance

Co.

Sept. 29 (letter of notification) 12,500 shares of common
stock to be offered for subscription by stockholders of
record Sept. 20, 1954 at rate of one new share for each
share

held.

Price—At

par

For
ate

securities.

($10

per

share).

Proceeds—

addition to capital and

Worth,

Texas.

to be invested in appropri¬
Office—Continental Life Building, Fort

Underwriter—None.

-J*

International
Nov.

23

Spa, Inc., Reno, Nev.
12,000 shares of common stock
per share.- Proceeds—For
land,

filed

Price—$500

tion, working capital, etc.




(rt&c-par).

construc¬

Underwriter—None.

—*

investment

in

of

preferred

one

stock held. .Rights

-

($50 per share).
additional
capital stock
par

Co., Minneapolis, Minn.
(letter of notification) 13,000 shares of preferred
stock (par $10) and $170,000 of 8% subordinate notes
due five years from date of issue. Price—At par. Pro¬
ceeds—To reduce bank loans and for working capital.
Federal

Bldg.,

working capital and unforeseen contingencies.
Investing Corp., New York.
1

stock

(par c25 cents). Price—$2 per share. Proceeds^—
genera! corporate purposes. Office—2310 Main'St.,
Houston, Texas. Underwriter—Cobb & Cd., Inc., same
/, city.
T[■;'?'}
'J
' ■ .f
For

Minnesota Valley Natural Gas Co.

...

jof common
share. Pro-,,
exploration and development expenses. Of¬
fice—206 N.- Virginia
St; Reno, Nev. Underwriter—
McCoy & Willard, Boston, Mass.

Dec.
stock

1

(letter of notification) 19,671 shares oj qommon
(par $10), of which 17,760 shares are to be publicly

offered

Colo.

1,000,000 shares of common stock (par 10
cents). Price—$1.25 per share., Proceeds-r-For explora¬
tion and development costs, purchase of equipment, and
reserve for acquisition of additional properties.
Under¬
writer—Peter Morgan & Co., New York.
Lorain

and

1,911 shares to be offered to employees.
public, $15.25 per share; to employees, $14iK.
Procefeds—To retire short term notes and for working
'capital. Office—1750 Hennepin Ave., Minneapolis, Minn.
Underwriters
Woodafid^Elwood & Co., Minneapolis,
Minn., and Harold E. Wood. & Co., St. Paul, Minn.
Price—To

,

"

—

Mississippi Power & Light Co.
Sept. 3 filed 44,476 shares of 4.56% cumulative preferred
^

stock
18 filed

Investors Financial Corp.
(letter of notification) 150,000 shares of common

Military
Dec.

Corp., Reno, Nev.

Loma Uranium Corp., Denver,

Under¬

writer—General

city.

ceeds—For

Colo.
1,562,500 shares of common stock (par one
Price—40 cents per share.
Proceeds—For ex¬

ploratory operations, machinery and equipment, and for

—

Lincoln Uranium

Underwriter—Franklin, Mayer & Bar-

17, N. Y.

cent).

Minneapolis,

Nov. 5 (letter of notification) 5,500,000 shares
stock (par one cent). Price—Five cents per

■%

Mid-Continent Uranium Corp., Denver,

Liberty Oil & Uranium Co., Denver, Colo.
19 (letter of notification) 2,900,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For oil and mining activities.
Office — 250
Equitable Bldg., Denver, Colo.
Underwriter — Carroll,
same

*

J

Nov. 26 filed

Underwriter—Daniels & Smith.

Jaquith, Inc.,

*

Co., Hialeah, Fla.
notification) 200,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To pur¬
chase raw materials and new machinery, an& for work¬
ing capital. Underwriter — Frank D. Newman & Co.,
Miami, Fla.

Lee Finance

Northwestern

&

Mi-Ame Canned Beverages

(par $100)

being offered

in exchange for

number of outstanding shares of $6 cumulative

stock

a

like

preferred

on a share-for-share basis (with a cash
Offer will expire Dec. 20. Price—$105 per
dividends.
Underwriters — White,
Weld & Co. and Kidder, Peabody & Co.

(no par)

adjustment).
share

accrued

and

Monte

mon

70 Wall

common

Oct. 28 (letter of

Nov. 3

June

basis

the

Price—At

McCluskey Wire Co., Inc., New Haven, Conn.
June 21 (letter of notification) $95,000 of 5% debentures,
series A, due July 1, 1962, and $95,000 of 6% debentures,
series B, due July 1, 1970. Proceeds—To acquire assets,
and business of H. & T. McCluskey & Sons, Incv Office
—527 Grand Avenue, New Haven, Conn. Underwriter—
Barnes, Bodell & Goodwin, Inc., New Haven, Conn.

York

development and exploration expenses.
Underwriter—To be named by amendment.

.Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,900,000 shares of common
stock
(par one cent).
Price—Three cents per share.
Proceeds—For mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.

Halsey, Stuart &
Lynch, Pierce, FenCo. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Htgginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected .to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y.t but offering has been postponed.
bidders:

Probable

on

nett, New York City.

For

petitive

.

1955,

shares of

Mercast Corp., N. Y.
Sept. 30 (letter of notification) 5,000 shares of common
stock (par 10 cents).
Price—$4.75 net to sellers. Pro¬
ceeds—To Atlas Corp.
Office—295 Madison Ave., New

Toronto, Can.

Kirchner &

bidding.

V

filed 660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents per share, U. S. funds.

first mortgage bonds due 1983, and for general corpo¬
rate purposes.. Underwriter—To be determined by com¬

Co. Inc.; Lehman Brothers; Merrill
ner & Beane and White, Weld &

on

Houston, Tex.

Aug. 2

Office—305

Jan. 24.

expire

Marion River Uranium Co.

Nov. 5

Minn.

5,
18

June 14 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For development expenses. Underwriter—Crerif & Co.,;

./

Underwriter—None.

stock

—

7

Corp.; Union Securities Corp.; Schoellkopf, Hqtton
Pomeroy, Inc.; and Granbery, Marache & Co.

stock

Proceeds

Jan.

Nov.

$24,000,000 of first mortgage bonds due
Proceeds—To redeem $10,000,000 of 3%%

filed

14

June 1,

notification)

Lake Lauzon Mines, Ltd.,

Utilities Co.

May 14 filed 160,000 shares of preferred stock (par $100).
Proceeds
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred

determined

?

/

(1/6)

subsidiary bank, to repay bank' loans and for othef
corporate purposes.
Underwriters—The First Boston

—

Ariz. Underwriter—None.

record

Proceeds—For

-(letter of notification) 2,650,000 shares of com¬
(par Tive cents). Price—10 cents per share.
Proceeds
For oil and mining expenses.
Office—318
Phillips Petroleum Bldg., Salt Lake City, Utah. Under¬
writer—-Hunter Securities Corp., *New York.

Co., and to the public gener¬
ally. Price—At par ($1 per share. Proceeds—To lease
land for operation of cattle business. Office—Phoenix,

Buffalo, N. Y.

of

9

mon

effective

Statement

7'7-v-::Y

will

share. Proceeds—For

it Justheim Petroleum Co., Salt Lake City, Utah
Dec.

28.

Dec.

on

Y,: j'YW-'r

share for each

fice—c/o Donald R. Coffin, Secretary; 701 West Avenue,

Jenkintown, Pa.

Southwest Life Insurance

be

of

.

(letter of

■

expire

Marina Midland Corp.,

par
($100 per share). Proceeds—To
purchase parking lot and for improvements thereon. Of¬

filed 1,250,000 shares of class A common stock
to, be offered to present and future holders of special
participating life insurance contracts issued by Great

ders:

per

6.

subject to acceptance thereof by hold¬
(80,000 shares) of Genesee

than, 80%

will

Dec. 9 filed 407,000 shares of cumulative preferred stock
to be offered for subscription by cornmpn stockholders

stock.- Price—At

Oct. 28

States

Price—$100

less

not
and

Dec.

★ Jenkintown Parking Corp.
Dec..2

,

.

•Gulf

stock

request of the board of directors or at
after 15 days from date of grant of

lated purposes.
-

Co.,

& Cattle

or

Offer is

8.
of

ers

filed

18

Dec.

organization expenses, equipment, construction ancj re¬

18

Proceeds—For mining purposes.

on

on

television permit.

Co.; Los Angeles ,Calif.

(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—l3A cents per share.

time

any

writers—First California Co., San Francisco, Calif.; and

Marine Midland

Corp., Buffalo, N. Y.
/
426,000 shares of common stock (par $5)
being offered in exchange for outstanding stock of
Genesee Valley Trust Co., at rate of 4Y* shares of cQmmom
stock for each, Genesee shares held of record on

tively, have been subscribed for by 156 persons prior
Jo registration thinking registration was unnecessary.
, Each
subscription agreement provided for payment of J
2% of the total purchase price on signing agreement

(C. G.) -Tidelands Oil Co.

William R. Staats &

•

Nov.

Irwin Community Television Co., Irwin, Pa.
Aug. 31 filed 4,000 shares of 5% cumulative preferred
stock (par $100) and 2,250 shares of common stock (par
$100), of which 4,000 shares and 2,000 shares, respec¬

Office—

Un¬

vestments, working capital and other corporate purposes.
Underwriter—Bache & Co., New York.

be

Services, Inc., as a special type of mutual investment
company.
Underwriter—None.

filed 215,000 shares of common stock

12

Price

Salt Lake City, Utah.

Magna Oil Corp., Dallas, Texas (12/20)
29 filed 240,000 shares of common stock (par 50
cents). Price—$5 per share. Proceeds—For further in¬

Winnipeg,

Dec. 13 filed 3,000,000

—None.
•

Bldg.,

Nov.

Ltd.,

Canada

Fort Lauderdale, Fla.
300,000 shares of class B
Proceeds

(letter of notification)

common

Newhouse

derwriter—I. J. Schenin Co., New York.

it Investors Group Canadian Fund

•

Uranium

it Gibraltar Mortgage Co.,

fice—529

Proceeds—For working

Office—3603 Broadway, San Antonio, Tex. Un¬
derwriter—Interior Securities, Inc., San Antonio, Tex.
capital.

.

Oct. 27

Dec. 2

127

(2579)

Cristo

Telephone Co., Lorain, Ohio
Sept. 7 (letter of notification) 2,500 shares of common
stock (no par) to be first offered for subscription by
stockholders.
Price—$20 per share.
Proceeds—To re¬

Oct.

expenditures already made for
additions to property.
Office—203 West Ninth Street,
Lorain, Ohio.
Underwriter—None.

Uranium Corp., Moab,

Utah

St., Reno, Nev.

imburse

treasury

for

it Lucky-Custer Mining Corp.
Dec. 7 (letter of notification) 50,967 shares of common
stock.

Price—At

par
($1 per share).
Proceeds—For
incident to mining operations.
Office—329
Bldg., Boise, Ida.
Underwriter—Ernest Leroy

expenses

Yates

Bevis, 1414 Arthur St., Caldwell, Ida.
Mac Fos Uranium, Inc.,

Salt Lake City, Utah

Sept. 16 (letter of notification) 4,000,000 shares of com¬
mon

stock (par one cent).

Price—Three cents per share.

Proceeds—For

exploration and development costs. Office
—239 Ness Bldg., Salt Lake City, Utah.
UnderwriterUtah Securities Co., same city.

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For exploration and development expenses.
Office—65 East 4th South, Salt Lake City, Utah. Under¬
writer—Mid-Coninent Securities, Inc., the same city.

mon

(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—10 cents per share.

5

Proceeds—For

exploration

Underwriter—James

•

E.

and development expenses.
Co., 139 North Virginia

Reed

Nagler Helicopter Co., Inc.

(letter of notification) 99,667 shares of common
one cent).
To be issued upon exercise of
stock warrants.
Price — $1.25 per share. Proceeds —

Nov. 30
stock

(par

capital and to purchase machinery and
Office—Westchester County Airport, White
Plains, N. Y. Underwriter—John R. Boland, New York.
For

working

equipment.

it National Gyramatic Corp., Denver, Colo.
Dec. 6 (letter of notification) 120,000 shares of common
stock (par $1). Price—$2.50 per share. Proceeds—To pay
expenses incident to sale
of furniture and mattresses
employing a device known as ''Gyra Unit." Office—324
Denham Bldg., Denver, Colo. Underwriter—None.
it New England Power Co. (1/18)
13 filed $25,000,000 of first mortgage bonds, series

Dec.

F,

due Jan.

1,

1985.

Proceeds—To purchase properties

from Connecticut River Power

determined

by

Co.

Underwriter—To be

competitive bidding.

Probable bidders:

Continued

on

page

128

128

(2580)

The Commercial and Financial Chronicle

Cortttnued

jrom

it Phillips Screw Co.
(letter of notification)

127

page

Fifth

New

Jan.

on

Silver

capital stock (par 10 cents) to be offered for
subscription by stockholders (with an oversubscription
privilege). Price—To be supplied by amendment. Pro¬

18, 1955.

stock

(par two cents).

Price—10 cents

York

Dec. 6 filed

common

in

exchange

stock

common

for

374,624

(par $1) to
of common

shares

stock

of the Trailer

Proceeds—To

City, N. C.

loan.

repay

units

Office—Elizabeth

materials.

Office

Underwriter—None. Sales
Benjamin Robbins.

—

City, Calif.
through Raymond

be made

to

amendment.

shares

10%

in

the

price

writer

•

filed

520,000

officials; to

Nov-., 12

(letter

stock

mon

ceeds—For

Portland,

of

(par

30

on

capital

stock

(par

new

in

copper

stock

(par

$1).

make small

&

Mass.

Pay Day Uranium Co., Las Vegas, Nev.
(letter of notification) 2,500,000 shares of
capital
stocky (par two cents). Price—10 cents per share. Proceeds^-For exploration and development costs. Office—
230 Fremont
St., Las Vegas, Nev. Underwriter—Allied
Underwriter Co., the same
city.

®ec,r ?
858

of

4.40%

common

cumulative

stock

(no
stock

cents).
ment

V.

mon

each

Pennsylvania 4.40%

cor¬

—$10.01

for

share

stock; and

of

(c)

Scranton
one

share

4.40%

cumulative

preferred

of

Pennsylvania 3.35% series
preferred stock for each share of
Scranton 3.35% cumu-'
lative preferred
stock, or, at the election of the Scran¬
ton
shareowners, for each share of Scranton's
3.35%
cumulative preferred
stock, two shares of
Pennsylvania's

common
stock, or for each lot of four shares of
Scranton
3.35% cumulative preferred
stock, three shares of Penn¬

sylvania

s

4(4%

preferred

stock.

approximately 91%
the

common

Pennsylvania

of the preferred
stock of Scranton.




stock

and

owns

91%

of

For

—

one

cent) to be
share of each class of stock.
Price

per unit.

Proceeds—For purchase of land and to
construct and equip a
luxury hotel. Underwriter—None.
Stinnes

common

(Hugo)

Corp., New York

Nov. 22 filed $6,000,000 of notes
and an unspecified num¬
ber of shares of common stock
(par $5) to be offered
in units of
$1,000 of notes and an unspecified number
of common shares.
Price—To be supplied
by amend¬
ment.
Proceeds—For retirement of 7% debentures
of

Hugo Stinnes Industries, Inc., due 1946. Underwriters—
Halsey, Stuart & Co. Inc. and A. G. Becker & Co.

Inc.,

Chicago and New York.

and production expenses,

★ Stylon Corp.-(12/29-30)9 filed
250,000 shares of common stock (par $5).
Price—To be supplied
by amendment.
Proceeds—To
selling stockholders. Underwriters
Gearhart & Otis,
Inc.; White & Co.; and MeCoy & Willard.
Dec.

—

Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per
share). Proceeds
—For development and
exploration costs. Office—Medi¬
cal Arts
Bldg., Las Vegas, Nev. Underwriter—Uranium
Brokers, Inc., the same city.

(par 10
per
share.
Proceeds—For develop¬
exploration expenses, etc.
Underwriters—R.
Co. and McGrath Securities
Corp., both oi

-

Sytro Uranium Mining Co., Inc.,
Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of
com¬
stock (par five
cents). Price—10 cents per share.
Proceeds—For exploration and
development of proper¬
Office —1406 Life of America
Building, Dallas,
Texas.
Underwriter
Western Securities
mon

Juan

Uranium

ties.

Exploration, Inc.
(letter of notification) 2,840,000 shares of com¬
(par one cent). Price—10 cents per share.
Proceeds—For exploration and
development costs. Of¬

—

stock

fice—718 Kittredge
Bldg., Denver, Colo.
Rogers & Co., same address.

Underwriter—

-

•
'

Servomechanisms, Inc. (12/17)

Dec.

'

1

Dec.

.*■

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of

filed

$2,000,000 5% convertible debentures due
1966. Price—100% and accrued interest.
Pro¬
ceeds—For repayment of bank loans
and other general
corporate purposes. Underwriter—Van
Alstvne, Noel &
Co., New York.

Dec.

14

record

four
For

Jan.

shares

19,767 shares of capital stock (no par) to
subscription by common stockholders of
10, 1955 at rate of one new share for each

for

held.

expansion

Price—$32.50

program.

per

share.

Underwriter

Associates, Los Angeles, Calif.

—

Proceeds—

Quincy

Cass

cents

per

share.

and

com¬

Proceeds—Fbr

development expenses.
Railway Exchange Building, Denver, Colo.
Shelley Co., Denver, Colo.

Office

—

317

Underwrite!

it Talley Machine & Manufacturing Corp.
9 (letter of
notification) 2,650,000 shares of
stock. Price—At par ($1
per share). Proceeds—For
Dec.

corporate

Angeles

filed

offered

Price—10

—E. I.

eral

it Seven Up Bottling Co. of Los
Angeles,
Inc. (1/10)
;'be

stock.

exploration

1,

Corp., Salt

Lake City, Utah.

mon

following
stock

Dec. 7.

Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
stock (par one cent).
Price—Five cents per share.

offered in units of

Price—$2

and

Klein

mon

stock; (b) one
preferred stock for

series

Co., Houston, Texas. Statement effective

Proceeds

Nov. 2

par);
(par

common

share of

share.

exploration and development costs.
Underwriter—Ned J. Bowman Co., Salt Lake
City, Utah.
Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock
(par $10)
and 621,882 shares of common stock
(par one

New York.

S100); 5,378 shares of 3.35% cumulative
preferred stock
(par $100); and 4,032 shares of
4V2 % cumulative pre¬
ferred stock (par
$100) to be offered in exchange for
securities of The Scranton
Electric Co. on the
basis:«c(a) one share of Pennsylvania common
each two shares of
Scranton

for

Aug. 2

Samicol Uranium
Corp., Santa Fe, N. M.
14 filed 300,000 shares of common stock

San

preferred

per

Star Uranium

Corp., Denver, Colo.
(letter of notification) 60,000 shares of common
per share.
Proceeds—For increased in¬

Sept.

Light Co.

65,455 shares of

shares

1,750,000 shares of

—

Oct. 15

&

Corp., Toronto,

(12/17)

and

Crerie &

it Rushmore Uranium & Oil Corp.
notification) 2,000,000 shares of common
(par one cent). Price—15 cents per share. Pro¬
ceeds
For exploration and
development expenses of
uranium and oil properties.
Office—618 6th St., Box 8,
Rapid City, S. D. Underwriter—Philip Gordon &
Co.,
Inc., New York.

mining expenses. Office—325 Main St.,
Moab, Utah.
Underwriter—Van Blerkom & Co., Salt Lake
City, Utah.

Power

Uranium

common stock
(par 10).
Proceeds—To acquire uranium
exploration and development work.
Underwriters —Gearhart & Otis,
Inc., New York, and

stock

For

Pennsylvania

Stancan

Price—$1.50

Dec. 7 (letter of

Paramount Uranium
Corp., Moab, Utah
Oct. 7 (letter of
notification) 6,000,000 shares of capital
stock. Price—At
par (five cents per share).
Proceeds—

—

claims

Office—150 Tejon St.,
Denver, Colo. Underwriter—
Peters, Writer & Christensen, Inc., same city.

Congress St.,
Co., Boston,

and

Nov. 4 filed

Price—$1

etc.

Pro¬

Underwriter—E. R. Bell & Co., Kansas

Co.,

capital

Canada

Underwriter—Stroud & Co., Inc., Phil¬
Offering—Made yesterday (Dec. 15).

ventory^ working capital, sales

com¬

Corp., Inc.

•—None.

Roion Tire Chain
Oct. 27

Uranium & Oil

—

100,000 shares of class B
Price—$2.50 per share. Pro¬
general

St.,

(letter of notification) 2,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Offices — 506 Beason
Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,

Proceeds—To purchase addi¬

other

Office—Henry

stock

producer

for

kettle for manufac¬

chemicals.

★ Southern Michigan Cold Storage Co.
6 (letter of
notification) 2,500 shares of common
stock.
Price
At par ($100 per share).
Proceeds—To
help finance construction and equipment of plant. Office
—Pipestone Road, Benton Harbor, Mich.
Underwriter

shares for each 44 shares

loans and

vacuum

of

unit.

per

Dec.

(par $1). Price—At market.
Proceeds—To four
selling stockholders. Underwriter—Lester, Ryor.s & Co.,
Los Angeles, Calif.

$1).

stock.

Sheehan

two

stock

Proceeds—To pay

Office—415
—

shares

adelphia, Pa.

a

Inc.

capital.

each

Price—20 cents per share.

ceeds—To

Office—Albuquerque, N. M.
Pierce & Co., Dallas, Texas.

Underwriter

for

it Rohr Aircraft Corp., Chula Vista, Calif.
2
(letter of notification) 7,200 shares of

notification) 250,000 shares of
cents).
Price—$1 per share.

working

Me.

share

other

Price—$8

surplus.
Underwriters
Pierce,
Carrison, Wulbern, Inc., Jacksonville, Fla., and
Leedy,Wheeler & Alleman,
Inc., Orlando, Fla.

porate purposes.

genital corporate purposes.

Laboratories,

new

Dec.

Price—To be supplied by amendment.

Paraderm

one

the ratio of three

common

balance of

pay

outstanding debts and for drilling operations and other

Underwriter—Rauscher,

of

and

one

7

increase

it Ritter Finance Co., Inc.
Dec. 1 (letter of notification)

(12/21)
of

New

'

(Mufulira), which in
turn
will use the proceeds for capital
expenditures.
Underwriter—Selection Trust Ltd., Selection Trust
Bldg.,
Mason's Ave. and Coleman St.,
London, England.

of

shares

basis

$17s. 6d. ($2.38) per share.
tional

capital stock (par $1).
Proceeds—To repay bank loans

Oroco Oil & Gas Co.
18

resins

stock.

(par

amount

Portland, Me.

held.

Pa.

"best-efforts"'' basis.

Nov.

the

of

$8 principal

★ Southeastern Surety Co., Tallahassee, Fla.
Dec. 9 (letter of
notification) 7,897 shares of common
stock
(par $15).
Price—$25 per share.
Proceeds—To"

Rights to expire on Dec. 22, 1954. Shares not taken
down will not be reoffered in the United
States. Price—

—

Langley-Howard, Inc., Pittsburgh, Pa.,

—

Co.,

re¬

stock

shares,
5s. to be offered to stockholders of record Nov. 22,

1954 in

of New Mexico property; to
purchase
wells; and for working capital. Under¬

equipment and

offer.

par

Price—$5 per share.
Proceeds—
subsidiaries,
Office — Chamber
Fla.
Underwriters
R. S.
Dickson & Co.,
Charlotte, N. C.; Courts & Co., Atlanta,
Ga.; Clark, Landstreet & Kirkpatrick, Inc.,
Nashville,
Tenn.; and Willis, Kenny & Ayers, Inc., Richmond, Va.

per share.
and indebtedness to
company

•

&

shares

of

capital
Price—At par ($5 per share). Proceeds—For
ex-,
pansion and new equipment. Underwriters—E. H. Stan- '
ley & Co., Waterville, Me.; and Clifford J. Murphy

Rhodesia Selection Trust, Ltd. (No. Rhodesia)
Nov. 12 (letter of notification) 59,151 ordinary

new

Price—-$3.50

of

mon

★

Fla.

Commerce Bldg., Miami,

purchase

Peck

units

stock.

Proceeds—To re¬
payable and for working capital. Address
—Box
242, International Airport, Miami, Fla. Under¬
writer—None.

selling stockholders.

:

Walters,

a

in

Somerset Telephone Co.,
Norridgewock, Me.
June 11 (letter of
notification) 2,200 shares of

duce accounts

(letter of notification) 30,000 shares of common
stock (par $1), of which 9.450 shares
are to
be offered
by the company and 20,550 shares for the account of

shares

—

payment of

10

Kansas City, Mo.
City, Mo.

1954. Resort Airlines, Inc.
parent, has the right to purchase up to 84% of

(Del.),

Nov. 18

150.000

with

offered
and

Solomon

«

shares held of record Oct. 26,

—

Uniontown,

connection

Underwriter

on

/,,•
3%

Bethel, Conn.

Airlines, Inc., Miami,. Fla.
(letter of notification) 1,180,000 shares of com¬
stock (par 10 cents) being offered to minority stock¬

mon

mining operations. Office—114 Atlas Bldg.,
Salt Lake City, Utah. Underwriter
Rockji Mountain
Securities, the same city.

filed

ture

Resort

ceeds—For

8

be

Purpose—To purchase new

Oct. 21

Underwriter—White,

One-Hour Valet, Inc., Miami,

the

York, N. Y.

Price—To

holders

Dec.

to

903 shares of common
Price—At market (about $35 per share).

(par $1).

dividend.

01 Jajto Uranium Co., Salt Lake
City, Utah
Aug. 5 (letter of notification) 1,750,000 shares of common
I stock (par one cent). Price—15 cents per share. Pro¬

Onego Corp.,

only

ceived

Proceeds—For construction

expenditures and working capital.
Weld & Co., New York.

i

shares

Planning. 630 McLean Ave., Yonkers, N. Y.

<

; $1,000 of debentures and 20 shares of stock.

;

B

Proceeds—To reimburse holders of fractional

'

investment in

class

to

debentures

it Republic Aviation Corp.
7
(letter of notification)

stock

subordinate
\ debentures due Dec. 1?
1969, and 100,000 shares of com¬
mon
stock, class B (no par) to be offered in units of

of

four

cent)

per

Dec.

For

and

$500

Future Estate

Crescent

it Northern Chemical Industries, Inc.,
Searsport, Me.
Ded. ^0 filed $5,000,000 of
15-year 5M>%

♦

A

Rapid Film Technique, Inc., N. Y. City
July 30 (letter'of notification) 60,000 shares of com¬
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th
Street,
New York 36, N. Y.
Underwriter—Jerome Rosenberg,

stock (par $100).
Price—At par.
Proceeds—To
purchase properties of Paragon Plywood Corp. and pur¬

be supplied by

debentures and 62,500 shares of common stock

approved by the Nevada State Tax Commission.

—

per

it Snyder Chemical Corp., Bethel, Conn.
8
(letter of notification) $50,000 of 10-year

Hotel, Inc., Reno, Nev.

class

one

cents

Oct.

Plywood, Inc.

Sept. 13 filed 300 shares of common stock (par
$5,000)
5,000 shares of 5% cumulative participating pre¬

raw

;

unit.
Proceeds—To construct eightstory hotel at 237-241 No. Virginia St., Reno, Nevada.
Underwriter—None.

ferred

j

prior property owner to be amended.
share. Proceeds—For development
and exploration expenses. Office—Newhouse Hotel, Salt
Lake City, Utah.
Underwriter — Van Blerkom" & Co.,
'
same city.
Price—10

Price—$1.75 per
and equipments and

Price

and

of

of

Development Corp.

underwriter and

basis.

persons

Underwriter—None.

Northern California

■J

Slick Rock Uranium

Dec. 8 filed 2,330 shares of class A common stock and
9,260 shares of class B common stock to be offered in

company.

Telephone & Telegraph Co.
10 (letter of notification)
2,000 shares of common
(par $100) to be offered for subscription by stock¬

holders.

;

one-for-five

a

Of¬

costs.

development

Dec.

Prjmadonna

Norfolk & Carolina

chase

on

and

Oct. 8 (letter of notification) 2,900,000 shares of common
stock (par five cents), including shares for option to

40,030 shares of capital
be offered for subscription by

to

Proceeds—For machinery
working capital.
Business
Manufactures
and
sells
plastic screw-cap closures.
Office—405 Lexington Avenue, New York, N. Y. Underwriter—None.

(par five cents) of Highway Trailer Co. at rate of
share of Shipbuilding stock for each five shares of

Nov.

10 cents)

share.

stock

stock

(par

stockholders

Shipbuilding Corp.

74,925 shares of

offered

one

working capital of subsidiary. Office—580
Avenue, New York 36, N. Y. Underwriter—None.

stock

exploration and

exploration

fice—211-206 N. Virginia Street, Reno, Nev. Underwriter
—Western Securities Corp., Las Vegas, Nev.

—

New

be

Proeeds—For

it Poly-Seal Corp.
Dec. 8
(letter of notification)

per share.
Pro¬
development costs. Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co.,
both of Spokane, Wash.

ceeds—For

mon

Belle

Mining Co., Inc., Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common

Uranium, Inc., Reno, Nev.
(letter of notification) 2,994,000 shares of com¬
stock (par five cents).
Price—10 cents per share.

Nov. 22

ceeds—For

received

undetermined number

an

of shares of

Kuhn, Loeb & Co.; The First Boston Corp.; Merrill
Lynch, Pierce, Fenner & Beane; Kidder, Peabody & Co.
and White Weld & Co. (jointly).
Bids—Expected to be

Thursday, December 16, 1954

Silver Pick

Dec. 3

Halsey, Stuart & Co. Inc.; Equitable Securities Corp.;

...

23,

purposes.

Calif.

Office—3535

E.

16th

corn-

gen¬

St., Los

Underwriter—None.

Tarbell

Sept.
stock

Mines, Ltd. (Canada)
(Regulation "D") 599,760 shares of common
(par $1—Canadian). Price—50 cents per -share.

24

—U. S. funds.

Proceeds—For exploration and
develop¬

ment expenses and acquisition of
property.
—H. J. Cooney & Co., New York.

Underwriter

Volume 180

Number 5386

..

The Commercial and Financial Chronicle

.

(2581),
Temple Mountain Uranium Co.
(letter of notification) 3,500,600 shares ef

Urainbow, Inc., Salt Lake City, Utah
(letter of notification) 2,000,000 shares of

„

Oct. 7

stock

mon

(par 2Vz cents).

Price

3 cents

—

com¬

share

per

stock

(par two cents).

Proceeds—For

Proceeds

Office—39

Office—908 Kearns

exploration and development expenses
Exchange Place, Salt Lake City, Utah. Un¬
derwriter—Walter Sondrup, same city.

Western

Aug. 31
mon

Price—15 cents

com- ,*

share.

per

For exploration and

—

development expenses.
Bldg., Salt Lake City, Utah. Under¬

writer—Austin B. Smith Brokerage
Co., the
Uranium Corp. of Colorado

city.

same

Sept. 23 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For
exploration and development costs.
Office —129

York.

East

Underwriter—Philip

Gordon

&

Co.,

Inc.,

same

city.
June

21 filed 455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered foj
subscription by common stockholders at the rate of one
new
share for each 4% shares held; and 70,000 shares

for account of certain

selling stockholders. Price—Tc
by amendment. Proceeds—For exploration
drilling, and payment of bank loans and advances

be supplied

and

Underwriter—Vickers Brothers, New
forts " basis.

York,

on a

"best ef¬

it Texcrete Structural Product Co., Dallas, Texas
14 filed 350,779 shares of common stock (par 10
cents) to be offered for subscription by stockholders of
Dec.

Texas

Industries, Inc. of record Dec. 10, 1954 at rate of

share

one

Texcrete

for

each

share

of

Texas

Industries

then held.

Price—$3

to

Proceeds—For expansion and general

public.

per

share to stockholders and $3.50
corpo¬

rate purposes.
Underwriters—Rauscher, Pierce & Co.,
Inc., Dallas, Tex., and Russ & Co., San Antonio, Tex.

Thunderbird Uranium Co., Reno, Nev.
Aug. 3 (letter of notification) 1,800,000 shares of com¬
mon stock (par 10 cents).
Price — 15 cents per share.
Proceeds—For mining activities. Office—206 N. Virgin is
St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.

it Thunderbolt Oil Corp., Washington, D. C.
Dec. 8 (letter of notification) 2,500,000 shares of
mon
stock. Price—At par (one cent per share).
ceeds—For

oil

and

gas

N.W., Washington, D. C.

activities.

Office—1424

com¬

Pro¬

K

St.,

Underwriter—Coombs & Co.,

•

T. M. T. Trailer Ferry, Inc. (1/5)
Nov. 23 (letter of notification) $295,000 of 5'/2% convert¬
ible debentures due Dec. 1, 1960 and 29,500 shares of
stock

Common

(par 10 cents)

to

be offered

$100 of debentures and 10 shares

unit.

Proceeds—To

of stock.

purchase

Trans-Continental
1

mon

stock.

Uranium

(letter of notification)
Price—At

ceeds—For

par

to

retire
—

Corp.
cents

shares

per

of

com¬

share).

Pro¬
Office

exploration

and development costs.
East, Salt Lake City, Utah. Underwriter
—Western Securities Corp., same city.
1
—358 S. 3rd St.

Transport Indemnity Co., Los Angeles, Calif.
Nov. 9 (letter of notification) 14,230 shares of capital
stock (par $10) to be offered for subscription by stock¬
holders of record Nov. 20, 1954, on the basis of one new
share for each five shares held; rights to expire on Dec.
20, 1954. Price—$20 per share to stockholders; remain¬
ing shares, if any, may be sold to affiliate at $23.50, but
aggregate amount will not exceed $300,000.
Proceeds—
for capital and surplus.
Office—3670 Wilshire Blvd.,
Los Angeles 5, Calif. Underwriter—None.
Turf

Paradise, Inc., Phoenix, Ariz.
Nov. 12 filed 83,334 shares of common stock (par $10)
and 83,334 shares of preferred stock
(par $20) to be
offered

in

Price—$30
and

units

of

one

share

of

tal

stock.

Price—At

class

each

of

stock,

unit. Proceeds—To construct racing plant
obligations. Underwriter—Selected Securi¬

ties, Inc., Phoenix, Ariz.

derwriter—Western Securities Corp., the same city.
Uintah

Uranium, Ine., Salt Lake City, Utah.
(letter of notification) 15,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds
For
exploration and development costs
Office—424 Judge Bldg., Salt Lake City, Utah. Under¬
Oct. 5

—

Co.,

same

city.

Union Compress & Warehouse Co.
June 25

(letter of notification) 30,000 shares of common
(par $1). Price—$10 per share. Proceeds—To 35
selling stockholders. Office — Memphis, Tenn. Under¬
stock

writers—Leftwich & Ross and Mid-South Securities Co.,
both of Memphis, Tenn.

it United Gas Corp. (1/11)
15 filed 170,000 shares of

Proceeds—To Electric Bond
reduce

E.

&

B.

S.

common

stock

& Share Co.

(par $10).

This sale will

holdings to less than 10% of United

Gas Stock outstanding.

Underwriters—To be determined

by competitive bidding.

Inc.; Merrill
der, Peabody

Probable bidders: Blyth & Co.,
Lynch, Pierce, Fenner & Beane and Kid¬

&

Co.

(jointly); Goldman, Sachs & Co.;

The First Boston Corp.; Lehman Brothers.

tively expected to be received
on

or

up

to

Bids—Tenta¬

11:30

a.m.

(EST)

Universal Petroleum Exploration & Drilling Corp.
(letter of notification) 300,000 shares of common

Oct. 4

cost of

Price

—

At par

Driller Boy

($1 per share).

Proceeds

—

For

(drilling equipment which company
rents out), and working capital.
Office—c/o Edwin J.
Dotson, attorney-at-law, Simon Bldg., 230 Fremont St.,
Las Vegas,
Nev.
Underwriter—Robert B. Fisher In¬
vestments, 510 South Fifth St., Las Vegas, Nev.




/

,

.

and

for

and

royalties

21

in

the

other corporate pur¬

Underwriter—Irving J.

Co., St. Paul, Minn.

Western

y.'"'

Precipitation Corp., Los Angeles, Calif.

filed

Price—$8.75
etc.

leases

Canada

Office—Glendive, Mont.

&

Rice

interests,

and

60,000 shares
per

share.

Business—Designs,

of common stock (par $1).
Proceeds—For working capital,
manufactures and installs equip¬

ment used for

clearing industrial gases.
Underwriter—
Wagenseller & Durst, Inc., Los Angeles/Calif.
*
•

Whitaker Metals
Corp., North Kansas City, Mo.
filed 50,000 shares of common stock
(par $1) to
be offered for subscription
by common stockholders of

Uranium of Utah, Inc., Provo, Utah
Sept. 14 (letter of notification) 3,000,000 shares of com¬
mon
stock (par 1 cent).
Price —10 cents per share.

record Nov. 29 at the rate of

Proceeds—For exploration and development costs. Office
N.
University Ave., Provo, Utah.
Underwriter—

227

Uranium, Inc., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For exploration and development costs.
Of¬
fice—420 Felt Building, Salt Lake
City, Utah. Under¬
7

writer—Western

Securities

Corp.,

Las

Vegas,

Oct.

(letter of notification) 3,000,000 shares of capi¬
(par three cents). Price—Six cents per share.
Proceeds—For exploration and development expenses.
Office—430 Judge Bldg., Salt Lake City, Utah.
Under¬
writer—Mid-Continent Securities, Inc., same city.
Uranium

For

debenture notes

..■

penses.

•

Van

expenses

Underwriter

Butane Service, Fresno, Calif.
(letter of notification) 24,998 shares of common
stock (par $2.50) being offered for
subscription by stock¬

holders

the

on

basis

of

one

share

new

each

for

10

shares held; unsubscribed shares to be offered to em¬
ployees. Rights expire Dec. 21. Price—$6 per share; un¬
subscribed, to public at $6.60 per share. Proceeds—For

years

from

•

(letter of notification) 9,996,000 shares of

stock

mon

(par

cent).

one

Price

Three

—

com¬

cents

pel

Proceeds—For exploration and

development ex¬
bldg., Salt Lake City,
Underwriter—P. G. Christopulos & Co., same city.

Utah.

Office—323

Newhouse

Wyoming Uranium Corp., Salt Lake City, Utah
(letter of notification) 9,166,667 shares of com¬

Horn

Nov. 17

(subordinated) maturing 10

Price—At par. Proceeds—For working
Office—999 No. Second St., Philadelphia 2%" Pa.
Underwriter—None.
r
K
■
r.
■■ ■'
.'i ■"'-'•'N
World Uranium Mining Corp.

development

Office—1818 Beverly Way, Las Vegas, Nev.
—First Western Securities, same city.

t

Phi'aCslphia, Pa.
$150,000 5% registered

capital.

share.

and

Underwriter—Fenner-

date of issuance.

July 21

exploration

D.

Montgomery Co.,
(letter of notification)

9

Three cents per share.

Proceeds—For

/

—

Columbus St., Rapid City, S.
Streitman & Co., New York.

tal

—

Corp.

(par

Corp., Las Vegas, Nev.
Aug. 20 (letter of notification) 10,000,000 shares of capi¬
Price

Minerals

William

18

(par 1 cent).

&

(letter of notification) 300,000 shares of common
10 cents). Price—$1 per share.. Proceeds;—
expenses incident to oil activities.
Office
728

stock

Dec.

tal stock

stock

Oil

Nov. 2

Nev.

Utah Apex Uranium Co.

share for each.four

.

Wilco

Utaco

new

held; rights to expire on Dec. 30. Price—To, be
supplied by amendment. Proceeds—For expansion and
working capital. Underwriter—Barret, Fitch, North &
Co., Kansas City, Mo.
"
'

Bay Securities Corp., New York.
Oct.

one

shares

Aug. 23
mon

stock

cent). Price—Three cents per share.
exploration and development expenses.
Underwriter—James E. Reed Co., Salt Lake City, Utah.
(par 1

Proceeds—For

Zenith Uranium & Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,

of San

Boston, Mass.

Francisco, Calif.

Vulcan-Uranium Mines, Inc., Wallace, Idaho
Oct. 15 (letter of notification)
1,500,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For expenses incident to mining operations. Ad¬
dress—P. O. Box 239, Wallace, Idaho. Underwriter—AlJ. Teske, d/b/a Wallace
Hotel, Wallace, Idaho.

den

Brokerage

Co.,

it Zodomok Mines, Inc., Durango, Colo.
9 (letter of notification)
30,000 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
gold mining operations. Office—101 Folsom Place, Du¬

Dec.

Colo.

rango,

Underwriter—None.

Samuels

Washington Natural Gas Co., Clarksburg, Va.
Sept. 20 (letter of notification) 10,000 shares of common
stock.

Price—At

the market (estimated at $1.37% per
Proceeds—To Elizabeth D. Hardman, the sell¬

share).
ing

stockholder.

Underwriter—Barrett

Herrick

&

Co.,

Inc., New York.
18

(Regulation "D") 900,000 shares of common
stock (par five cents). Price—30 cents
per share.
Pro¬
ceeds—For general corporate purposes.
Underwriter—
Willis

E.

Burnside

&

Co., New York.

West Coast Pipe Line Co.,
Nov. 20, 1952 filed $29,000,000

Dallas, Tex.

and

one

amendment.

additional

share of stock.
Price—To be supplied by
Proceeds—From sale of units and 1,125,000

shares of

common

stock

and

private sales of

$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline. Underwriters — White,
Weld

&

Co. and Union Securities
Corp., both of New
Offering—Postponed indefinitely.

York.

stock to carry a dividend rate of not exceeding 5%, with
either a $50 or a $100 par value. Both stock issues are

subject to approval of the stockholders.
Wm.

•

15,

ture

directors approved proposals to increase the au¬
thorized common stock (par $3) from ,400,000 shares to

C.

merous

12-year 6% debentures
1964, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one $50 deben¬
Dec.

}lr

6

1,200,000 shares, and to authorize $5,000,000 of preferred

Wenga Copper Mines, Inc., N. Y.
Nov.

Air-Way Electric Appliance Corp.
Dec.

West Coast

Pipe Line Co., Dallas, Tex.
20, 1952 filed 1,125,000 shares of common stock (par
cents). Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union

Underwriters—

Roney & Co., Detroit, Mich., has handled
secondary offerings in the past.

Aluminium, Ltd.

Dec.

8

directors

nu¬

*

/

approved

proposal
to offer stock¬
holders rights to subscribe for additional shares at rate
of

one

new

■—Not

For

share

there

counts

to

for

each

shares

10

held.

(At last

ac¬

outstanding 9,029,193 shares.) Price
$46 (Canadian) per share. Proceeds—

were

exceed

expansion

program.
Dealer Managers — In April,
1953, The First Boston Corp., A. E. Ames & Co., Ltd.,
White, Weld & Co. managed a group of soliciting
dealers to procure subscriptions for the shares. Offering
—Probably early in January, 1955.

and

Continued

Nov.

on

page

130

50

Securities

Corp.,

both

of

New

York.

Offering—Post¬

poned indefinitely.

NIGHT &

it West Virginia Water Service Co.
Dec. 9 (letter of notification) 800 shares of $5 cumula¬
preferred stock (no par).
Price—$105 per share.

tive

new

construction.

St., Charleston, W. Va.
Co., Portland, Me.

Office—179

Underwriter—H. M.

Summers

Payson

&

district, Pandick Press, Inc. is "open for business" 24 hours

Western Central Petroleums, Inc., N. Y.

Sept. 16 (letter of notification) 133,333 shares of common
stock (par 10 cents).
Price—At market (estimated at
36V2

cents).

Office

—

Cantor

32

Conveniently located in the heart of New York's great financial

Proceeds—To certain

Broadway, New York.

selling stockholders.
Underwriter

—

S.

7

days

a

NIGHT & PinlY Service is
guarantees the

one

of the

reasons

"Printed by Pandick'

finest and most complete printing service available.

Western Empire Uranium Co.
16 (letter of notification) 2,750,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For

hndic/npress. Inc.

mining expenses. Office—Silver State Bldg.,
Denver, Colo.
Underwriter—L. A. Huey Co., same city.

Established 192 i

Oct.

18

Indemnity Co., Lubbock, Texas

filed

30,000 shares of common stock (par $10).
Price—$25 per share. Proceeds—To establish reserve to

qualify
Texas.

company

to

do

business

Underwriter—None.

in

States

other

day,

B.

Co., New York.

Western Fire &

a

week.

Nov.

about Jan. 11.

stock.

Pro¬

Co.

Nov. 29

Proceeds—For
Dec.

share).

core
drilling program upon two groups of
Address—Box 709, Wallace, Idaho.
Underwriter
—Wallace Brokerage Co., some city.

Gas

claims.

due

Ucolo Uranium Co., Salt Lake City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share
Proceeds—For exploration and development costs.
Of¬
fice—906 Walker Bank Bldg., Salt Lake City, Utah. Un¬

writer—James E. Reed

per

States

poses.

Oct

ceeds—For

per

to repay

(five cents

par

&

working capital. Address—Box 547, Fresno, Calif. Un¬
derwriters—J. Barth & Co. and Schwabacher &
Co., both

Underwriter

2,990,000

(10

units of

Price—$101

equipment

$50,000 of notes and for working capital.
John R. Boland & Co., Inc., New York.
Oct.

in

Nov.

Utah

address.

same

per

St., New York, N. Y. Underwriter—None.

Discovery & Development Co.,
Wallace, Idaho
16 (letter of notification) 1,000,000 shares of
capi¬

International Sulphur Co.

mineral

United

Uranium

Texas

are

60th

Oil

100,000 shares of common stock (par'$l).
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬
standing preferred shares ($125,000), to repay bank
loan, etc. ($2,500); for purchase or acquisition of addi¬
tional

it Texas Adams Oil Co., Inc., N. Y.
Dec. 6 (letter of notification) 66,000 shares of common
stock (par 10 cents). Price—75 cents per share. Proceeds
—To- selling stockholders.
Office—39 Broadway, New

Plains

May 24 filed

129

than

77 THAMES

ST., NEWTORX 6

WOrth 4-2900

NY 1-3167

71 ClINTON

ST., HEWARK, N. J.

MArlc«t 3-4994

\

\
130

The Commercial and Financial Chronicle

(2582)

Thursday, December 16, 1954

...

J

Continued

from

page

^Duquesne Light Co. (1/20)
10 Philip A. Fleger, Chairman of the Board,

129

that

•

nounced

Nov.

shares of preferred stock

Amalgamated Bank of New York
22, Jacob S. Potofsky, President and Chairman,
stated that the bank is offering to its stockholders 40,000 additional shares of capital stock (par $10) on a
basis of four shares for each 10 shares held; rights to
expire on Dec. 22. Price—$12.50 per share. Proceeds—
To increase capital and surplus. Underwriter—None.
Central

Sept. 2 it
between

&

Southwest Corp.

reported company plans issue and sale ol
500,000 to 600,000 additional shares of com¬
was

stock, probably first to stockholders.

mon

Underwriter

bidding. Probable
bidders; Blyth & Co., Inc. and Smith, Barney & Co.
(jointly); The First Boston Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Lazard Freres & Co. (jointly). Offering—Not expected
—May be determined by competitive

until early in 1955.

Sept. 29 it was reported company plans to issue and
sell $40,000,000 of new bonds. Proceeds—To refund its
outstanding $37,851,000 37/s% bonds and $2,441,000 4%
bonds. Underwriter—May be determined by competitive

bidding. Pfobable bidders r Halsey, Stuart &
Blyth &€o., Inc.

Co. Inc.;

for

new

issue

to

and sell 160,000
Proceeds—To repay

(par $50).

construction.

Citizens National Trust & Savings

Bank of

,*«

(1/14)

/
Dec. 6 it was announced bank' plans to issue to stock¬
holders of record Jan. 11 the right to subscribe for 200,shares

of

new

common

stock

(par

$10)

the basis of two. new shares for each five shares held
(^fter proposed stock split to be voted on Jan. 11.) Price
—$33 per share. Proceeds—To increase capital and sur¬
plus. Underwriter—Blyth & Co., Inc., Los Angeles, Calif.

on

Commonwealth

Products

Evans

6 it was

Co.,

Plymouth,

Edison Co.

(1/11)

vote Dec.

21

authorized issue of 100,000 shares of
preferred stock (par $50) and on increasing the author
ized common stock (par $5) from 300,000 shares to 1,an

000,000 shares. Business—Company manufactures freight
car loading equipment.
Financing—Not imminent.
First National Bank of Colorado Springs
Nov. 3 stockholders were given the right to subscribe

not

yet been determined). Proceeds—For construction
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
program.

Inc.; Glore, Forgan & Co.; The First Boston Corp.
—Expected to be received on Jan. 11.

Bids

ic Consolidated Diesel Electric Corp.
public offering is planned of
350,000 shares of common stock.
Proceeds—To selling
stockholders.
Underwriter—Van Alstyne, Noel & Co.,
New

reported

a

York.

Consolidated Uranium

Mines, Inc.

July 23 stockholders authorized

the issuance and sale
$6,000,000 convertible debenture bonda
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, N. J.
of not to exceed

C

&

Colorado Springs, Colo.; and Bosworth, Sullivan
& Co. and Boettcher"& Co., both of Denver, Colo.
a,

Nov.

17

it

Homes, Inc.* Huntington Station; N. Y.
announced

was

plans

company

sell 300,000 shares of common stock.

to issue

Price—$5

per

and

share.

Proceeds—For working capital. Business—Prefabricated
houses.
Underwriter—S. D. Fuller & Co., New York.

Offering—Expected in January.
Aug.

27

it

this

issue

and

value

of

sale

to

company,

a

sub¬

residents

of Georgia of $300,000 par
subject to the approval of
the Georgia P. S. Commission.

preferred

stock,

Gulf, Mobile & Ohio RR.
Aug. 23 it was reported company may consider the
issuance of about $25,000,000 bonds later this year. Pro¬
ceeds—To refund
1975

due
due

and

first

1969,

refunding mortgage 4s and 3%s
respectively; collateral trust 3^49

1968; and New Orleans Great

Underwriter—To

be

Northern 5s due 1983.

determined

by competitive bid¬
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Salomon Bros.
& Hutzler (jointly); The First Boston
Corp.; Shields

ding.

Probable

bidders:

financing by Holly Uranium Corp. has been arranged
followed by a public offering early in 1955 after
Corp. plans to distribute part of its hold¬
ings of Holly Uranium Corp. stock to its stockholders.
ary

which Holly

Household Finance Corp.
Oct.

7

preferred stockholders approved

increase the authorized

amount

a

proposal

of preferred

to

stock

(par
Under¬

$100) from 312,000 shares to 592,000 shares.
writers—Lee, Higginson Corp. and Kidder, Peabody &
Co., both of New York; and William Blair & Co., of
Chicago and associates.

by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Union Securi¬
ties Corp. and A. C. Allyn & Co. Inc. (jointly);
White,
Weld & Co. and Shields & Co.

(jointly); Morgan Stan¬
ley & Co.; Harriman Ripley & Co. Inc. and The First
Boston Corp. (jointly).
Bids—To be opened at 11 a.m.
(EST) on Jan. 25 at office of Commonwealth Services

Inc., 20 Pine St., New York, N.
pected on Dec. 28 with SEC.

+ Dallas Power & Light Co.

Y.

Registration—Ex¬

(12/21)
expected to be received by the company up to
noon (CST) on Dec. 21 for the purchase from it of
$8,700,000 equipment trust certificates due semi-annually,.
July 1, 1955 to Jan. 1, 1970, inclusive. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
are

Kansas City

Sept.

it

15

was

Power & Light Co.
that

announced

was

program.

competitive bidding.

Underwriter—To be determined by
Probable bidders: Halsey, Stuart

& Co.

Inc.; Salomon Bros. & Hutzler; The First Boston
Corp.; Lehman Brothers; Union Securities Corp. and
Wertheim & Co. (jointly); Kidder, Peabody &
Co., Blyth
& Co., Inc. and
Merrill, Lynch, Pierce, Fenner & Beane

(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.
Registration—Scheduled for Jan. 14.
Bids—Expected to
be received up to 11

a.m.

★ Duquesne Light Co.
Dec.

10

it

(EST)

on

Feb. 14.

(1/17)

announced company plans to issue and
sell 450,000 shares of common stock
(par $10). Proceeds
—To repay bank loans and for new
construction. Under¬
writer—To be determined by competitive
was

bidding. Prob¬
Kidder, Peabody & Co. and White, Weld
& Co.
(jointly); Blyth & Co., Inc. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Union Securities
Corp.; Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Stone & Webster Securities Corp.; The First
Boston Corp. and Lehman Brothers
(jointly); Carl M.
Loeb, Rhoades & Co. and Wertheim & Co. (jointly). Bids
—Expected to be received up to noon
(EST) on Jan. 17,
able bidders:

1955.




Probable
Brothers

(2/15)

company

due

plans to sell

1985.

Proceeds—

construction.

Under¬

competitive bidding.
Stuart & Co. Inc.; Lehman
Stearns & Co.
(jointly); Kuhn,

bidders:
and

Halsey,

Bear,
Loeb & Co., Salomon Bros. & Hutzler and Union Secur¬
ities Corp. (jointly); Glore, Forgan & Co.; Blyth &
Co.,
Inc.

The First Boston

and

Corp. (jointly); White, Weld
(jointly); Harriman Ripley &
Co., Inc.; Equitable Securities Corp. Bids—Expected to
be received on Feb. 15, 1955.
& Co.

and

Shields

&

Co.

Majestic Auto Club, Inc.
Aug. 25 it

(2/14)

reported company plans to issue and sell
$7,000,000 of debentures due 1980.
Proceeds—For con¬

struction

stockholders approved a proposal to authorize
additional preferred stock of $100 par value,
to be sold in series.
Proceeds—For new con¬

are

struction.

Offering—Not imminent.

Peninsular

Telephone Co.

l *

-

Oct.

19 stockholders approved proposal to increase
thorized preferred stock from 600,000 shares to

au¬

1,0OO#O0

shares and the authorized
to

2,000,000 shares.

stock from

common

Underwriters

—

&

Hicks.

Not

1,500-000

Last financing was

handed by Morgan Stanley & Co.

and

Coggeshall

&

imminent.

Pennsylvania Co. for Banking and Trusts, Phila.
0 stockholders were offered the right to subscribe
100,000 shares of common stock (par $10) on the

Dec.

of

one

new

share

for

each

14

shares

held

as

of

Nov.

26, 1954; rights to expire on Dec. 23. Price—$42
share. Proceeds — To increase surplus and capital

per

accounts.

Underwriters—Drexel

&

Co.,

Pa.; and Merrill Lynch, Pierce, Fenner
Smith* Barney & Co., of New York.

Philadelphia,
&

Beane

.

and
i-

.

^

Penn-Texas Corp.
Oct. 18 authorized capital stock

(par $10) was increased
1,000,000 shares, of which about 220,000 shares are
bg publicly offered. Price — From 15% to 25%
below the price on the New York Stock Exchange at
by

to

the time of

offering.

Proceeds— Of the approximately

$3,000,000 which would be obtained, about $1,000,000 Will

be

used

chases

for

drilling,

under

exploration and additional pur¬
corporation's uranium program; an¬
will be used to finance accounts re¬

the

other; $1,000,000

a subsidiary and the remainder would be
develop proven oil reserves, including an ex¬
panded drilling program. Offering—No definite decision
used

to

yet made.
Public Service Co. of Oklahoma

Sept, 2 it was reported company may sell between
$20,000,000 and $25,000,000 of first mortgage bonds in Janu¬
ary,! Proceeds—To repay bank loans and for new con¬
struction.

Underwriter—To be determined
by competi¬
tive: bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.-;"Equitable Securities Corp.; Salomon Bros. & Hutz¬
ler;; The First Boston Corp.; Blyth & Co., Inc., Kidder,
Peabody & Co. and Stone & Webster Securities
Corp.
(jointly); White, Weld & Co.; Shields & Co.

public Service Co. of Oklahoma

Illinois Central RR.

Bids

$16,000,000 first mortgage bonds

mined

t

to be

To repay bank loans and for new
writers— To
be
determined
by

1,
Price—Expected to be not less favorable to the
company than a 314% basis.
Proceeds—For expansion
and improvement program.
Underwriter—To be deter¬

which

Light Co.

ceivable of

Holly Corp., New York
Sept. 9 S. B. Harris, Jr., President, stated that prelimin¬

1990.

it

19

basis

that

announced

was

sidiary of United Cities Utilities Co., contemplates the

of first mortgage bonds to mature not earlier than Jan.

8

\ '

Pacific Power &
Oct.

to

Kidder, Peabody & Co.; Blair & Co. Incorporated.
k« Consumers Power Co. (1/25)
Dec. 6 company filed with Michigan P. S. Commission
an application for authority to issue and sell
$30,000,000

Dec.

(12/16)
expected to be received by the company' up
(EST) on Dec. 16 for the purchase from it of
$3,345,000 equipment trust certificates due semi-annu¬
ally July 1, 1955 to Jan. 1, 1970.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co.; Blair & Co."Incorporated.
noon

12,500 additional shares of capital stock on a l-for-4
basis.
Price—$38.50 per share. Underwriters—Newman

•

was

"

York, New Haven & Hartford RR.

are

for

& Co.

Gale, Chairman, disclosd that this com¬
plans to file a registration statement with the SEC
in December covering a proposed issue of long-term,
sinking fund debentures (the exact amount of which has

it

New

Bids

Mich.

announced stockholders will

approving

on

pany

9

Inc.; Blyth & Co., Inc. and Union Securities Corp.
(jointly); Smith, Barney & Co.; White, Weld & Co.;
Kuhn, Loeb & Co. Bids—Tentatively expected on Jan. 11.

to

Nov. 5, William

Dec.

Co.

1955.

Georgia Gas Co.

Chicago, Rock Island & Pacific RR.
'Oct. 28 it was reported that this company may possibly
announce a refunding operation soon which will elimin¬
ate its preferred stock.

additional

petitive

Inc.; Kuhn, Loeb & Co. and Smith, Barney & Co. (joint¬
ly); Kidder, Peabody & Co., Merrill Lynch, Pierce,
Fenner & Beane and White, Weld & Co. (jointly). Bids—
Expected to be received up to 11 a.m. (EST) on Jan. 20,

Nov.

outstanding 334,166 shares of 6% pre¬
Underwriters—To be determined by com¬
bidding.
Probable bidders: Halsey, Stuart &

ferred stock.

by competitive bidding. Probable bidders:
The First Boston Corp.; Lehman Brothers; Blyth & Co.,

$40).

Los Angeles

sell

York, Chicago & St. Louis RR. (1/11)
it was announced company plans to issue and
$36,000,000 of income debentures due 1990.
Pro16

ceeds--To redeem

Underwriter—To

be determined

General

Chicago & Eastern Illinois RR.
Sept. 21 company filed an application with the ICC foi
authority to issue $15,350,000 of 5% income debentures
due Jan. 1, 2054, to be offered in exchange, par for par,
for the outstanding 383,751 shares of class A stock (par

000

plans

company

loans and

bank

Nov.

an¬

200,000

Chesapeake & Ohio Ry.

-

New

Dec.

announced company plans to offer 500,(par five cents) to the motorist and general
public shortly after completion of the current offering
of 100,000 shares to service station owners and
operators.
000

was

shares

Office—Room 717, 141 Broadway, New York
6, N. Y.
Missouri Natural
Nov. 8 it

Gas

was

McDowell, Chicago, 111.
National Starch Products, Inc.
Sept. 28 stockholders approved an authorized issue of
40,000 shares of new prefererd stock (par $100), a part
of which may be issued privately to finance a new midwestern plant to produce vinyl resins. Underwriter—F.
Eberstadt & Co., Inc., New York, handled previous fi¬
nancing.
New

England Telephone &
was

Telegraph Co.

announced company proposes to offer to
of record March 1,
next, 511,205 addi¬

its stockholders

tional

basis.
owns

shares

of

capital

stock

American Telephone &
about 69% of presently

ceeds—To

—None.

repay

reported that company plans to issue and
of new preferred stock
(par $100).
Underwriter—To be determined by
competitive bidding.
sell

was

400,000

Probable
Central

shares

bidders:

Republic

Harriman

Co.

Inc.

Ripley

&

Co.

Inc.

Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co.
Expected in first half of 1955.
Public

Nov$; 17
sell

it

-v

announced

was

shares

of

$1Q0L Proceeds —To

in

company plans to issue and
cumulative preferred stock (par
reduce bank loans and for con¬

Underwriters

program.

Co.rTfrexel & Co.
Exp&ted

Offering-

Service Electric & Gas Co.

250,000

struction

and

(jointly); Smith, Barney &

Morgan
Glore, Forgan & Co.

and

—

Stanley

&
Offering—

January, 1955.

Savage Industries, Inc., Phoenix, Ariz.
Aug. 9 it was announced company plans later this
year
to

issue and

lative

sell

additional

an

convertible

preferred

block

of

75-cent

cumu¬

stock

(par $1), expected
Proceeds—For expansion and
acquisitions.
Underwriter—Probably Pacific Coast Se¬
curities Co., San Francisco, Calif.
to

gross

around $250,000.

Southern
Nov, 12 it
tional

Nevada

was

common

Power

Co.

announced company plans to issue addi¬
stock early next year.
Underwriters—

Hornblower & Weeks, William R. Staats & Co. and
First
California Co.

Co.

reported early registration of about 110,000 shares of common stock is expected.
Price—May be
around $8 per share.
Underwriter—Straus, Blosser &

Oct. 19 it

Novell it

temporary

(par $100) on a l-for-5
Telegraph Co., its parent,
outstanding shares.
Pro¬
borrowings.
Underwriter

Transcontinental Gas Line Corp.

Nov. 24, Tom P.

year's

Walker, President, announced that

construction

program

borrowings made this

and

replacement

of

next

bank

year will

require financing during
1955 of about
$85,000,000.
Underwriters—White, Weld
& Co. and Stone & Webster
Securities Corp., both of

New York.

Union Trust Co.

Nov. 11 it

holders

was

100,000

of

Maryand

(1/4)

announced bank plans to offer its stock¬

additional

shares

of capital stock
(par
$10), on a l-for-3 basis. Underwriter—Alex. Brown
&
Sons, Baltimore, Md. Meeting—Stockholders will vote
on
financing on Jan. 4.

United Dye & Chemical
Corp.
directors authorized an
offering to
stockholders of additional common stock
at

Sept'/ 8

common

the

one

new

share for each five shares held

rate

of

(with an over¬
subscription privilege). About 150,000 shares are
pres¬
ently outstanding. Price—$9 per share. Underwriter—
None*

Number 5386

Volume 180

U.

Bank

National

S.

stockholders

7

Dec.

of

.

.

The Commercial and Financial Chronicle

.

Portland

of

Dec.

record

000,000 to $25,000,000 of first mortgage bonds some time
next Spring.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co
Inc.; Union Securities Corp.; Stone & Webster Securities
Corp.; Kuhn, Loeb & Co.; Salomon Bros. & Hutzler;
White, Weld & Co.

(Ore.)

2

the

given

were

right to subscribe on or before Dec. 22 for 48,0,0 snares
oi capital stock (par $20)
on the basis of one new share
for each 17% shares held.
Price—$^0 per snare. Un¬
derwriter—Blyth & Co., Inc., New York, and Portland,

Utah

& Idaho

7

Lester

S.

gram.

huge issue wi
Tuesday unles
in plans, whil
I $88,000,000 Ci
Bridge« bondj
through a nej

away,

will,
take

will

of

ger & Co.; Smith, Hague, Noble &
Co.; and Green, Erb & Co., Inc.

Toll

offered

be

itiated deal.

of the year-end spread
through the investment world this
week as; the
rank
and file of
proach

institutional

"putting
speak.

started

investors

shutters",

the

up

to

so

'

From * this

point

these

through

month

the

of

for

pools
mak¬
adjustments
in

large

money

last-minute

their investment holdings,

such
activities
are
rounding out certain

Normally

v

limited

to

positions
odds

work

With

,

But, in the in¬
they have

year.

dealers

•

know

cut

the

the

away

accumulated

ends

through the
their

clearing

and

and

terval,

out

for

them.

buyers

major

virtu¬

ally out of the market, except for

situations,
underwriters
distributing organiza¬

special
and

their

the
likelihood of carrying the bulk of
any new ventures over the turn

tions recognize that they face

appears to have been
demonstratecf—again by the suc¬
cess
of a couple of recent offer¬

annual

probably

letdown

explain, , along
with the
softening in Treasury issues, the
slackening of investment demand,

corporate

only for

offerings,

| but for revenue bonds as well.
The

been

a

Orleans

New

Peter

Morgan
City, are

York

public

"as

*
latter market, which has
robust affair through most

at the moment
to be a bit glutted. And imme¬
diately ahead, tentatively, sched¬
uled for next week, is New York
offering

*

a

new

of

$125,000^)00

first

3M>%

mortgage pipe line bonds, was
able to report yesterday that the
issue had been oversubscribed.,It

It

is

who

Squeeze

(
!

:

England Telephone & Telegraph
Co.'s $30,000,000 of 34-year deben¬
tures to market yesterday experienced some evidence of the effect

Sells

Fester Wheeler Stock
made

an

New York, on Dec

J offering

of

shares of common stock

«'•
*

Wheeler

Foster

to selling

go

coupon

to reoffer on
In

some

1

differential

yield

quarters this meager
of one basis point in

looked upon as the dif¬

was

ference

and were planning
a 3.03% yield basis.

between

a

*

tion

11

and

But

on

not

*

JOHN
December

W.

•

Dividend No. 205
quarterly dividend of seventy-five
cents
per share on all the outstanding stock of
the Company has been declared payable Jan¬
uary 21,
1955 to stockholders of record at the
close of business December 28, 1954.
STRAUSS

OTTO W.

Vice

and Treasurer

President

.

McDowell;

Van

^

McFawn

& Co.;

At

of

Seventeen

share

able

(in

NO.

Bankers

face

a

sparse

record

7,

Funds)
31,
1955,

dend of 25$ per share and an extra
dividend of 25$ per share were de¬
clared on the common stock of the

at

the

close

of

President

stockholders of record

to

prospective new issue list
showing a total absence of anything in the way of corporate of¬
ferings slated, aside from $8,700,000 equipment trust certificates of

"

Illinois Central Railroad.
There

are

a.

few

offerings




at

the close

a

dividend

onj-r

N.

Y.

or

on

December

MICHEL,

and

Treasurer.

SHARES

NATIONAL
14
A

Philadelphia.

Box

1216,

& Financial Chronicle,

de¬

62\'2 cents
stock.
The

Common

and

M.

per

stock

KEMP,

Treasurer

Plywood

Secretary

Wall

idend of 350 per share

CORPORATION

at

special

Street, New York

the

dividend of

close

able January 12,

two

December

business

of

17,

It

1954.

a

cash div¬

the outstanding common

on

stock of this corporation has been declared

dollars and forty
one
cents ($2.41) per share has been declared
this day on th? Corporation's capital stock pay¬
able December 27, 1954 to stockholders of record
is

pay¬

1955, to stockholders of record at

the close of business December 31, 1954.

SIMON OTTINGER, Secretary.

New York,

N.Y., December 8, 1954

that approximately one dollar and
and two-tenths cents ($1,822) per
dividend will be designated
as
a
"capital gain dividend," pursuant to the
provisions of the Internal Revenue Code,
expected

eighty-two
share

The Electric Storage Battery

The

of this special

Directors

have

also

declared

a

dividend

of

twpnty cents (20c) per share payable January
1955 to stockholders of record at the close
of business December 31, 1954.

15,

Company

JOSEPH

December

10,

S.

STOUT,

Secretary

1954.

WAGNER BAKING
CORPORATION

The

declared

have

Directors

The Board of Directors

of the Company a

fifty
the

dividend of

quarterly

($.50) per share on
Common Stock, payable
cents

New

holders of record
of business

on

at

$1.75

\

and Electric Association

December 28, 1954, to stock.

England Gas

the close
COMMON

December 15,

1954. Checks will be mailed.

DIVIDEND NO. 31

|
J

Secretary

twenty-five

(25c)

cents

per

the common shares of the
Association,
payable January

g

1

g

December 20, 1954.

||

H. C.
H

7% Preferred Stock pay¬
able January 3, 1955, to
stockholders

of

December 21,

1954.

J.

V.

STEVENS,

TECHNICOLOR, Inc.

g
The Board of Directors has de¬

Moore, Jr., Treasurer

g
H

December 9, 1954

dividend of twenty-five

clared

a

cents

(25c)

per

Bryan, Ohio

Common

the

Dividend Notice
FINANCE CORPORATION

quarterly dividend of

NOTICE

of the

the

close

December 23,

of business

on

1954.,

regular quarterly divi¬
of

dend

$1.25

per

share on

Series Preferred
($100 par value) pay¬
February 1, 1955, to
stockholders of record Janu¬
the

5%

on

Par

($1 Par Value)

dividend

a

(20c)

per

share

(no Par

exchanged under
Company's Exchange Instruc¬
May 19, 1953. These
dividends are payable December

Value)

not yet

the

tions dated

14, 1955, was

declared

by the Board of Directors on
December 8. 1954.

Sec.-Treas.

Park Place, New York 7-, N. Y.

December 7,1954,

(no

the Common Stock

Stock

ary

L. L. HAWK

dividend
share on

Stock

Company, and

of twenty cents
A

the

not yet

Common Stock

DIVIDEND

on

exchanged under
the
Company's Exchange In¬
structions dated May 19, 1953.
The Company has also declared
a
special year end dividend of
ten cents (10c) per share on the

Value)

share in cash on com¬
mon stock,
plus a 2% stock
dividend, payable January 15,
1955 to shareholders of record

share

($1 Par Value)

of the Company, and a
of fifty cents (50c) per

The ARO EQUIPMENT CORP.

a

recprd

Secretary.

Common Stock

Board of Directors has

of
the

on

g
g

15, 1955 to shareholders of
record at the close of business

M

fT"

share

share g

on

1

Philadelphia, December 3, 19J4

regular

dividend

per

*f§ The Trustees have declared a g
regular quarterly dividend of g

#.§§
1

the

declared

has

1st. Will locate either in

Commercial
25

Available

of

capital

Preferred

For the quarter ended October 31, 1954,

W.

have

United States

17, 1954.

20c per

Contemplates* change.

Corporation

Corporation

1954

(H^c) perdeclared pay¬
shareholders of

business

this

Company, payable December 28, 1954,

Cents

CLIFFORD

of

WALLACE

was

to

Directors
a

Corporation

1954.

30,

declared

about Jan

fox, Treasurer.!.;*

1954.

able

calendar
perusal

a

of 15 cents per share
Shares
of
the
Corporation,
3,
1955
to stockholders
of
close of business December 20.

the

at

Common

both

149

One-Half

and

Canadian

January

on

at

in the week ahead with a

declared

dividend

Capital
January

share on
dividends on
are
payable
February 1, 1955, to stockholders of record at
the close of business January 3, 1955.
the

a

PACIFIC

TRADER

4,

SHARES

has

dividend of 37',4 cents per share on the
Preferred capital
stock.
They have also de-!

meeting of the Board of Directors, held this day, a quarterly divi¬

Mines

The

Week's Schedule

CAPITAL

Directors

United Shoe Machinery

clared

At

meeting of the Board of Directors of
Limited, held this day, a divid6nd

a

Dome

Shillinglaw, Bol-

PUBLIC UTILITY

the

payable

clared

COMMON DIVIDEND No. 314

Al-

styne, Noel & Co.; Blunt, Ellis &
Simmons;
Cruttenden
&
Co.;
Fairman,
Harris
&
Co.,
Inc.;
Gottron, Russell & Co., Inc.; McDonald-Moore &
Co.; Nauman,

quarter-annual
on

ON

of

SAMUEL M.

H. B. Pierce,

E. J. DWYER,

&

Board

December, 15,

LIMITED

MINES

scribed.

Blosser

NOTICES

1954.

of business December

publicly 180,000 shares of

stock (par
$1) at $12.75 per share.
This of¬
fering was heavily oversub¬

r;;v

CORPORATION
DIVIDEND

The

record

Secretary.

Packing Company

A

14

associates on Dec.

and

.

Next

HAMILTON,

1954.

10,

NOTICES

217th Consecutive

Jarecki Corp. common

of the

-

of

(75c)

Sold al $12.75 a Share

,

r

($.40) of $12.50 par value Capital Stock,
payable December 22, 1954 to stockholders of
record December 17, 1954.
Checks will be mailed by Irving Trust Com¬
pany, Dividend Disbursing Agent.

from the Accumulated Surplus

regarded the yield as too close to
'.the arbitrary 3% level that has
been a bugaboo of the corporate
Underwriting business for months.

-

use

COMBUSTION ENGINEERING,
INC.

Jarecki Common Clock

j

;

additional

Quarterly Dividend

aggressive demand.
the- other hand, some .of

see

894

NO.

of Directors has declared regular
forty cents a share ($.40) and ar.
year-end dividend of forty cents a

The

stockholders.

long in the business could
it that way. They just

'those

.

of

"Tucker

GENERAL REALTY & UTILITIES

Board

attracted more

1

.

selling operawould have

which

one

COMPANY

six

owns

-

DIVIDEND

December 8, 1954

the

same

DIVIDEND

The

mining
collectively

are

claims."

NOTICES

MINING

nine

owns

the Brown Derby Mine
located
in
Gunnison

as

are

share

at

Corp.

$36.62V2 per jjshare. This offering
was
quickly /oversubscribed.
None of th0 proceeds are to ac¬
crue to Foster Wheeler Corp., but
will

re¬

The Garlock
DIVIDEND

54,300

,

*

at

(par $10)

The
net proceeds will
go to
three selling stockholders.
year-end slow-down.
The group paid the company a
Participating in the sale were:
price of 101.70 for a 3 V8% interest •The First Cleveland Corp.; Macrate
and
repriced the issue at Naughton - Greenawalt
&
Co.;
102.22 for reoffering, for an in¬
Hudson White & Co.; J. C. Brad¬
dicated
y i e 1 d
of 3 02%...The ford & Co.: Fusz-Schmelzle & Co.;
C.
Roney
&- Co.;
Straus,
runners-up had bid 101.31 for the Wm.

of

to

part

pay

DIVIDEND

offered

brought out New

to

DOME

Allen & Company

of

of

the; net
the cost
of a chemical plant for making
lithium carbonate, costs of explo¬
ration and development of claims
now being acquired. Any remain-

Baker, Simonds & Co., Detroit,

Feeling the

Corp.
share).

December

9

To

—

County, Colo. It also
claims, known as the

purposes

DIVIDEND
HOMESTAKE

1,495,-

stock

and

It

which

known

of ac¬
exploitation, develop¬
operation of lithium

general

and

ment

of New
to the

Lithium
per

planned

proceeds

3.40%.

Coi

$7,000,000 of

Proceeds

properties.

Corp.

5, 1954 in Utah

formed Aug.

priced at 101.44 for a yield of

was

Mich.,
Bankers

offering

common

States

Meantime, the syndicate which
sponsored last week's large Ten¬
nessee
Gas Transmission Co.. is¬

j

bonds.

,<

$335,090,000- of

of

of

(10 cents

par

of the year, appears

j State Power Authority's projected

Co.,

&

speculation"

a

shares

Public Service Inc.,

price of 102.718
for a yield of 3.11%, was reported
to have found a ready market.

sue,

1955 of

1,
B.

claims

quisition,

Lithium Shs. at $10c.

of

bonds

mortgage

brought out at

Allen &

helps

*not

first

Jan.

series

dointlv)

Lithium

States

the

for

Morgan Offers

Co.

for working

utilized

be

$6,000,000 of 3,4%>

This week's

30-year

of the year.

This

Jfactor in attracting

buyers

the

portfolio

will be putting in their time

ing

real

a

ings.

balance
men

be

will

&

capital.

dividend

|barry Weight
prospective yield continues

That
to

der

was

Peter

000

Yields

of the ap-

about

bonds,

Stuart & Co. Inc.;,Union Securities Corp. and Glore,
Forgan & Co. (jointly); Kidder, Peabody & Co. and
Blyth & Co., Inc. (jointly); Lehman Brothers and Bear,

United

United

inevitable signs

The
*

announced that directors have approved
sale

by competitive bidding. Probable bidders: Hal- "

termined

par-

Chicago

of

;y

*

imburse company for capital expenditures already made
and for future improvements. Underwriters—May be de¬

Sterns

cleared

to

was

and

mortgage

40,000 additional shares of common stock (the latter to

big revenue isup for bids.
*
Power Authority's
be up for bids on
there is a change
the following day

State

Y.

N.

first

Inc., Lynchburg, Va.

iwo

which

sues

a

sey,

bankers
•orced

issue

the

Light & Telephone Co., Inc.
Nov. 24 it was announced company plans to issue and
Fp" *3 0nn n0Q first mortgage bonds due 1985 and about

^fll $20,be

on

program.

Sept. 8, it

Western

S|

"rights" due
but
past th;
necessity, be:,
ticipations iu|

& Mason,

ner

|

,

Virginia Electric & Power Co.
Nov. 1 it was reported company may issue and
'

l-for-10

basis). Proceeds—For conUnderwriters—May be Dean Witter
& Co. and The First Trust Co. of Lincoln, Neb.
Offer¬
ing—Expected in January.
Bonds may be sold pub¬
licly or privately, depending on market conditions.

struction

Virginia Telephone & Telegraph Co.
Nov. 2z it was reported company plans to offer to resi-*
dents of Virginia 35,000 additional shares of common
stock.
Price—About $15.25 per share.
Proceeds—Foi
additions and improvements.
Underwriter—Scott, Hor¬

Uranium, Inc., Kellogg, Ida.
Harrison, President, announced thai
the company contemplates obtaining funds to initiate
its uranium mining operations in Utah by the sale to the
public of its unissued treasury stock. This financing will
follow completion of the company's current drilljhg pro¬
•

stockholders

131

Western Pacific RR. Co.

Ore.

Sept.

(2583)

b. c.

Reynolds,

Secretary

of rec¬
business

30, 1954 to stockholders
ord

close of
December 17, 1954.
at

jhe

L. G. CLARK, Treasurer

December 9, 1954.

^

^

132

(2534)

The Commercial and Financial Chronicle

Thursday, December 16, 1954

...

mination

BUSINESS BUZZ

sidy

vessels;

Washington...

audit

Board

prior

Capital

insurance.

gage

actions

WASHINGTON, D. C.—Latin
businessmen are all

personal pitch for

Canadian investment

advisors

technical

and

observers

government

hand

on

The

from

a

liberal

surface, the
meeting is being stirred up by
private interests.
Department
.

State

U.

other

and

earlier

scare

this

As

of

Guate¬

the

of

some

countries

to

give-away

To
in

that it
lacks popular appeal—the vot¬
ers

don't think of

neighbors

The next out

to

vate

investment

some

big

Upshot
Feb.

28

offers—will

the

the

are

city

(which has

of

U.

€he sponsors

New

Orleans

National

the

the

United

American

the

Council.

technical

details

ness

of

care

dor,

the

meeting.
Some
16

South

firms

from

American

at

with

countries

ment proposals.
servers

from

and

the

specific

various

in¬

displayed by potential in¬

vestors

and

work

for

to

our

official

haven't lost

you

securities—Wouldn't

Wall

Street

money

from

coming

or

has
be¬
balky Congresses wouldn't
provide any funds. The mer¬
chant officials want Congress to
permit ship construction appro¬
priations and funds represented
by government equities in exist¬
ing ships to be used to activate
the
fund, and deposit in the
fund construction subsidy ap¬
propriations;
receipts
to
the
government from sale of ship
mortgages; interest and prin¬
cipal on government ship mort¬
gages,
and receipts from sale

They also note an im¬
plied club in one phrase of the
official announcement:

serv¬

in

Latin

type

of

service

private enterprise system is to

in

prevail
Western

for

ance

the
the

economic

placed

nations

development

potentials
the

upon

of

be

must

forces

initiative.

vate

the

of

hemisphere, main reli¬

of pri¬

These

forces

will respond in

both continents
properly encouraged

if they are
to do so."

sis

si«

treck

Shipbuilding Boosts

Salvador,

Guatemala,-

Mexico,

Nicaragua,

Paraguay,

into

Federal

Peru,

and

some

observers
note

that

in

Officials

1936

Merchant Marine Act,

been

inoperative for

Propose

charter

and

cials will take another swing at

updating
chant

this

country's mer¬
and
trying
to

marine

knock

the

ship building indus¬

Maritime

consideration
Board

point legislative

would

permit

is

six-

a

program

by

which

on

a

them for

new

though

of

placed

on

year,

ship

construction

The

see a

(1)

new

Colorado Oil & Gas

Olin Oil & Gas

so

and

program

on

valued at

the

funds

available
ment

Anheuser Busch

approved^
new

repairs.

35,000 units

put

and

up

units.

In

sold

the

industry

coming year, the

industry expects to

that

Albert

W.

close

come

Housing

Cole

agrees

prefabs will in the future

be used

as

prime argument in

a

reducing
and

75,000

some

to 90,000 units. Federal

Chief

at

year.

a

government

special support

the low-cost

subsidy

programs to

housing market.

(This column is intended to

re¬

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the

"Chronicle's"

views.)

own

government-

merchant
over

$300

could

to meet

obligations

new

(4)

non-subsidized
earn¬

construction.

Accelerated

amortization

vessels. Officials do

new

tax

neT"

some

not

law,

help,

al¬

permits

operators to write off expendi¬

stimulus to

made

govern¬

arising under

1954-1955

Finance

—

The

(5)

Additional

vessel

con¬

struction subsidies which would

provide
to

a

United

differential
States

constructed

in

*

Tax

Foundation, 30 Rockefeller
Plaza,
New York 20, N. Y„
(paper), $2.

-

,

construction.

vessel

-

flag

subsidy
vessels

American

ship¬

yards. The plan calls for deter-

ship construction contracts.

Facts and Figures on Government

How to Put "Life" in Your Stock

ships,

million,

be

reserves

tures fast enough to give much

calls for:

Sale of government held

mortgages
now

Colorado Oil & Gas Con v. $1.25 PfdL

Congress

$175 million for subsidizing

private

capital at the Rio conflab,

of

low

;running

a special reserve fund
tax deferred basis and use

the

governments, and remembering

rate

now

ings in

believe

between

of

operators to place

Last

conference

housing

construction. This plan

new

vessel

try out of its dog days.
under

for

lowing closely

of

industry
supplant

Non-Subsidized Operators

of

heels

years

(3) Authorization of

Congress by the Administration.

the

the
years

owned vessels.

Aid

New Orleans conference is fol¬
on

few

a

Maritime Administration offi¬

Now

the emphasis

costs,

relaxed

Last year, the prefab

Creation

struction

in all probability will be sent to

Rio

moderate

cause

convinced that if the

are

(2)

in

cost

involved.

representatives will

are

at

with

regulations,

the

the

the

,

by developers,,

use

government-constructed

you

today

of a ship con¬
revolving fund.
This
fund, actually established in the

Maritime

Washington who

•

office

..."

busi¬

El

the

providing reasonably livable

could

in¬

your

strong opportunity for investors
to
get broad promises of co¬
operation from the governments

the

experts

volved is to take due note of the
fears

tomorrow?

over

which

There

invest¬

countries

guidance

Venezuela.

Role of the ob¬

technical

over-the-counter

#

Panama,

least

will send representatives to the

meeting

will

perma¬

counselling

Honduras,
50

a

to the meeting so far include
Argentina, Bolivia, Brazil, Co¬
lombia, Costa Rica, Cuba, Ecua¬

Inter-

of

of

projects—a

Countries

Interna-

House is taking

hope,

sponsors

Canadian

widening

ing

hope

of

Investment

States

V

.

.

drop

ment.

Bankers Association of America

fJL^ tional

'/'A

at the moment not performed by
the
U.
S.
Commerce
Depart¬

the Chamber of

Association

Manufacturers,

Diplo¬

upshot of the

formation

investment

Commerce of the United States,

and

"Dollar
u

American

Cooperating with

are

the

and

Time-Life

and

to

ice to continue interesting U. S.

ships from

serve

America)

international.

the

S.

nent investment

large port busting

a

with berths to
South

be

in

to

"We

conference

the

na¬

"Yankee Imperialists" and

conference,
of

..

"Dear Mr. Twittle—We

far

a

attempting

The long-range

Sponsors

be

not-too-distant

were

macy."

Sponsored by Business

from

Veterans Administration financ¬

BI1S;-

businessmen sitting
and

from

decrying

through

withdrawal

agencies

housing field.

Coupled

produce some fetching in¬

tionalists

March 3.

gradual

a

housing

em

the panel discussions

purge

the
busi¬

Housing Administration and

past when Latin American

Confer¬

indus¬

with

construction

Federal

ever

is

like

cry

pumping

Investment

from

ence

pri¬

in

P

'

terest

on a

housing

along

Prefabrication,

'

'

President

vestment

put

inflow,"

privately
with
Latin
participants,
the
meeting—while it undoubtedly

south of the
is the Inter-

money

American

to

interest

was

full-scale drive

|

provide the impetus

may

low-cost

American

will

of

'

many

on

the

bring

of

talking

Southern

anything but real,
erratic, friends.

as

if somewhat

border.

was

our

its

encourage

to

economic policy.

mammoth

our

ness,

Was Once "Dollar Diplomacy"

American

program

appro¬

to advise on
certain aspects of U. S. foreign

with adding

South

to

by the

put pressure on for some type of
large-scale economic aid. The

•only thing wrong

urge

con¬

Johnston's group is a private
citizens organization appointed

result, they began to

a

Prefabricated

he noted.

the

by

year

communization

mala.

also

en¬

financing

Send

of

tions

S.

Government agencies got a real

near

May

rest

"We

addi¬

further

Government Out of Housing

priate action on the part of our
government to encourage the
outflow of private investment
and on the part of foreign na¬

the

simple.

Prefabs

official sanction to the

ference.

projects in Latin American

program.

•

ship construction.

new

booming

tal

not be¬

want

to

private

try,

gave

But it's not that

of

measures

courage

Eric Johnston,
the International

providing

are

officials

Development Advisory
Board
July, President Eisenhower

making investments of $500,<300 or more to underwrite capi¬
On

tional

in

XI

mort¬

amend¬

insurance for pri¬

construction

Maritime

last

in

countries.

the

and

fully meeting the needs

the

of

ship

ship mortgages

lieved

letter to

Chairman

business-men

and

revaluation

currency

In

plan is simply to interest

industrialists

vate

other countries.

things

sure

according to plan.

progress
■-

make

to

from

will be

both sides of the equator

For

them.

remove

guarantee program to provide
more
protection against expro¬
priation of U. S. investments
abroad and guard against losses

at a t'our-day conference
in New Orleans late this winter

money

d

to

instance, not long ago the For¬
eign Operations Administration
eased
its
foreign
investment

American

—a n

by

use,

New

Title

to

ments

and

their

Government

(6)

'

more

U. S.

of

construction

of

to

sub¬

types

subsidy rates approved

SsST And You

tbe Nation's
-

a

major

by

clarification of existing statutes.

Behind-the

.set to make

construction

of

rates

Portfolio

'

U.

Ira

Cobleigh — 1
Morgan & Co., 634 South Spring J
—

'

Street, Los Angeles 14, Calif.—
$1.
Killing in

Cobleigh

Uranium,
—

A.

Duval's

—

Ira

i

U.

consensus,,

j,

Inc., 41-43 Crescent Street, Long
Island City 1, N. Y. (paper), $2>

Miss. Valley Gas
Texas Eastern Transmission

Stock

Mallinckrodt Chemical

Market

Crash

Crane

James

of

Kellogg,

1929—»

III, and

William E. Downey—J. C. Kel-

Tenn. Production

;

logg

Pan American

Foundation, 42 Aberdeen
Road, Elizabeth, N. J. (paper).

Sulphur

Wagner Electric

Wanted:

Carl Marks

Bought — Sold — Quoted

can

&

Ho Inc.

More

Owners of Ameri¬

Business—Keith Funston—

Text of the

Dickinson Lecturea

delivered

SCHEUCK, RICHTER COMPANY
Member Midwest Stock

Bell

FOREIGN

50 BROAD STREET

Exchange
TEL:

Teletype
456




320
St.

N.

4th

Louis 2,

SECURITIES

St.

GArfield 1-0225

Mo.

HANOVER 2-0050

L. D. 123

•

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

by

Graduate

School

Administration,
versity,

—

Business

I

Mr.

vard

Funston
of

at
Business

Harvard

Graduate

Uni-

School

Administration,

of

Har¬

University, Boston, Mass.

cloth), $1.50.

?